EQUITY INCENTIVE PLANS

Share-Based Compensation Expense

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



	Year Ended March 31,
	2015			2014			2013
Cost of sales	$	9,010	⁽¹⁾	$	7,340	⁽¹⁾	$	8,234	⁽¹⁾
Research and development	28,164			24,554			22,178
Selling, general and administrative	21,422			21,893			27,603
Pre-tax effect of share-based compensation	58,596			53,787			58,015
Income tax benefit	10,640			5,722			9,038
Net income effect of share-based compensation	$	47,956		$	48,065		$	48,977

⁽¹⁾ During the year ended March 31, 2015, $6.8 million of share-based compensation expense was capitalized to inventory, and $9.0 million of previously capitalized share-based compensation expense in inventory was sold. During the year ended March 31, 2014, $7.4 million of share-based compensation expense was capitalized to inventory, and $7.3 million of previously capitalized share-based compensation expense in inventory was sold. During the year ended March 31, 2013, $5.9 million of share-based compensation expense was capitalized to inventory, and $8.2 million 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 2016 through fiscal 2020 related to unvested share-based payment awards at March 31, 2015 is $94.2 million. The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 2.00 years.

Combined Incentive Plan Information

RSU share activity under the 2004 Plan is set forth below:



	Number of Shares
Nonvested shares at April 1, 2012	5,492,220
Granted	1,976,583
Assumed upon acquisition	523,043
Forfeited/expired	(370,196	)
Vested	(1,611,819	)
Nonvested shares at March 31, 2013	6,009,831
Granted	1,616,632
Forfeited/expired	(282,964	)
Vested	(1,813,465	)
Nonvested shares at March 31, 2014	5,530,034
Granted	1,446,968
Forfeited/expired	(266,415	)
Vested	(1,441,671	)
Nonvested shares at March 31, 2015	5,268,916

The total intrinsic value of RSUs which vested during the years ended March 31, 2015, 2014 and 2013 was $67.6 million, $74.6 million and $54.4 million, respectively. The aggregate intrinsic value of RSUs outstanding at March 31, 2015 was $257.6 million, calculated based on the closing price of the Company's common stock of $48.90 per share on March 31, 2015. At March 31, 2015, the weighted average remaining expense recognition period was 2.03 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 fiscal 2015, 2014 and 2013 was $42.02, $34.24 and $29.92, respectively.

Stock option and SAR activity under the Company's stock incentive plans in the three years ended March 31, 2015 is set forth below:



	Number of Shares		Weighted Average Exercise Price per Share
Outstanding at April 1, 2012	3,360,997		$	25.00
Granted	—		—
Assumed upon acquisition	827,707		19.32
Exercised	(1,638,548	)	22.19
Canceled	(280,353	)	19.90
Outstanding at March 31, 2013	2,269,803		25.58
Granted	—		—
Exercised	(1,675,663	)	25.91
Canceled	(20,529	)	22.78
Outstanding at March 31, 2014	573,611		24.75
Granted	27,654		46.66
Assumed upon acquisition	666,586		29.33
Exercised	(477,618	)	26.42
Canceled	(105,934	)	28.17
Outstanding at March 31, 2015	684,299		$	28.41

The total intrinsic value of options and SARs exercised during the years ended March 31, 2015, 2014 and 2013 was $9.6 million, $25.5 million and $19.0 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 and SARs outstanding at March 31, 2015 was $14.1 million. The aggregate intrinsic value of options and SARS exercisable at March 31, 2015 was $6.2 million. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $48.90 per share on March 31, 2015.

As of March 31, 2015 and 2014, the number of option and SARs shares exercisable was 283,133 and 543,435, respectively, and the weighted average exercise price per share was $26.90 and $25.03, respectively.

The weighted average fair values per share of stock options granted in the year ended March 31, 2015 was $9.00. The fair values per share of stock options granted in the year ended March 31, 2015 were estimated utilizing the following assumptions:



	Year Ended March 31,
	2015
Expected term (in years)	6.5
Volatility	26.65	%
Risk-free interest rate	1.59	%
Dividend yield	3.00	%

There were no stock options granted in either of the years ended March 31, 2014 and 2013.