Equity Incentive Plans (Notes)

6 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity incentive plans

Equity Incentive Plans

Share-Based Compensation Expense

The following table presents the details of the Company's share-based compensation expense (amounts in thousands):

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Cost of sales	$	2,614	(1)	$	1,608	(1)	$	3,924	(1)	$	3,007	(1)
Research and development	6,358			3,556			10,390			6,969
Selling, general and administrative	11,581			4,320			16,225			8,532
Pre-tax effect of share-based compensation	20,553			9,484			30,539			18,508
Income tax benefit	3,419			1,226			4,741			2,394
Net income effect of share-based compensation	$	17,134		$	8,258		$	25,798		$	16,114

(1) During the three and six months ended September 30, 2012, $1.8 million and $3.5 million, respectively, of share-based compensation expense was capitalized to inventory and $2.6 million and $3.9 million, respectively, of previously capitalized share-based compensation expenses in inventory was sold.  During the three and six months ended September 30, 2011, $1.7 million and $3.3 million, respectively, of share-based compensation expense was capitalized to inventory and $1.6 million and $3.0 million, respectively, of previously capitalized share-based compensation expense in inventory was sold.

The amount of unearned share-based compensation currently estimated to be expensed in the remainder of fiscal 2013 through fiscal 2017 related to unvested share-based payment awards at September 30, 2012 is $86.8 million.  The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 1.88 years.

SMSC Acquisition-related Equity Awards

In connection with the acquisition of SMSC, the Company recognized $7.8 million in share-based compensation expense due to the accelerated vesting of outstanding equity awards upon termination of certain SMSC executive officers. Also, in connection with the acquisition of SMSC, the Company assumed certain unvested stock options, stock appreciation rights and restricted stock units granted by SMSC. The assumed awards were measured at the acquisition date based on the estimated fair value, which was a total of $28.2 million. A portion of that fair value, $6.9 million, which represented the pre-acquisition vested service provided by employees to SMSC, was included in the total consideration transferred as part of the acquisition. As of the acquisition date, the remaining portion of the fair value of those awards was $21.3 million, representing post-acquisition stock-based compensation expense that would be recognized as these employees provide service over the remaining vesting periods.

Combined Incentive Plan Information

Restricted Stock Unit Awards

The total intrinsic value of restricted stock units (RSUs) which vested during the three and six months ended September 30, 2012 was $12.5 million and $22.3 million, respectively.  The aggregate intrinsic value of RSUs outstanding at September 30, 2012 was $195.1 million, calculated based on the closing price of the Company's common stock of $32.74 per share on September 30, 2012.  At September 30, 2012, the weighted average remaining expense recognition period was 1.97 years.

The weighted average fair value per share of the RSUs awarded is calculated based on the fair market value of the Company's common stock on the respective grant dates discounted for the Company's expected dividend yield.  The weighted average fair value per share of RSUs awarded in the three and six-month periods ended September 30, 2012 was $30.30 and $30.61, respectively.  The weighted average fair value per share of RSUs awarded in the three and six-month periods ended September 30, 2011 was $31.61 and $32.27, respectively.

Stock Option Awards

The total intrinsic value of options exercised during the three and six months ended September 30, 2012 was $4.4 million and $6.9 million, respectively.  This intrinsic value represents the difference between the fair market value of the Company's common stock on the date of exercise and the exercise price of each equity award.

The aggregate intrinsic value of options outstanding at September 30, 2012 was $23.8 million.  The aggregate intrinsic value of options exercisable at September 30, 2012 was $21.7 million. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $32.74 per share on September 30, 2012.

As of September 30, 2012 and September 30, 2011, the number of option shares exercisable was 2,849,127 and 4,566,785, respectively, and the weighted average exercise price per share was $25.23 and $25.17, respectively.

The weighted average fair value per share of stock options granted in the three months ended September 30, 2012 was $13.10. These stock options were issued in connection with the assumption of outstanding equity awards of SMSC. There were no such stock options granted in the three months ended June 30, 2012 or the three and six months ended September 30, 2011.

Stock Appreciation Rights

The aggregate intrinsic value of stock appreciation rights (SARs) outstanding at September 30, 2012 was $4.9 million.  The SARs exercisable at September 30, 2012 had no aggregate intrinsic value. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $32.74 per share on September 30, 2012.

As of September 30, 2012, the number of SAR shares exercisable was 1,592 and the weighted average exercise price per share was $26.91.

The weighted average fair value per share of SARs issued in the three and six months ended September 30, 2012 was $14.68. These SARs were issued in connection with the assumption of outstanding equity awards of SMSC. There were no such SARs issued in the three and six months ended September 30, 2011.