
	Fiscal Year Ended March 31,
	2021		2020		2019
Cost of sales (1)	$	26.6	$	20.9	$	14.9
Research and development	96.8		82.9		72.0
Selling, general and administrative	74.9		66.4		62.3
Special charges and other, net	—		—		17.2
Pre-tax effect of share-based compensation	198.3		170.2		166.4
Income tax benefit	42.3		36.9		35.5
Net income effect of share-based compensation	$	156.0	$	133.3	$	130.9

(1) During the fiscal year ended March 31, 2021, $16.7 million of share-based compensation expense was capitalized to inventory and $26.6 million of previously capitalized share-based compensation expense in inventory was sold. During the fiscal year ended March 31, 2020, $19.8 million of share-based compensation expense was capitalized to inventory and $20.9 million of previously capitalized share-based compensation expense in inventory was sold. During the fiscal year ended March 31, 2019, $17.2 million of share-based compensation expense was capitalized to inventory and $14.9 million of previously capitalized share-based compensation expense in inventory was sold.

In connection with its acquisition of Microsemi on May 29, 2018, the Company assumed certain RSUs, SARs, and stock options granted by Microsemi. The assumed awards were measured at the acquisition date based on the estimated fair value, which was a total of $175.4 million. A portion of that fair value, $53.9 million, which represented the pre-acquisition vested service provided by employees to Microsemi, 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 $121.5 million, representing post-acquisition share-based compensation expense that will be recognized as these employees provide service over the remaining vesting periods.

The Company has granted RSUs and stock options to employees and non-employee members of the Board of Directors under the Company’s 2004 Equity Incentive Plan (the 2004 plan). The Company uses RSUs as its primary equity incentive compensation instrument for employees. Under the 2004 plan, 32,194,859 shares of common stock have been authorized for issuance and 6,554,463 shares of common stock remain available for future grants as of March 31, 2021.


	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested shares at March 31, 2018	5,672,440	$	50.79
Granted	1,951,408	$	77.83
Assumed upon acquisition	1,805,680	$	91.70
Forfeited	(408,242)	$	73.36
Vested	(2,729,324)	$	61.51
Nonvested shares at March 31, 2019	6,291,962	$	64.81
Granted	2,182,044	$	88.17
Forfeited	(340,659)	$	75.50
Vested	(2,391,294)	$	57.47
Nonvested shares at March 31, 2020	5,742,053	$	76.11
Granted	2,339,247	$	101.37

Forfeited	(257,055)	$	83.37
Vested	(1,882,336)	$	64.13
Nonvested shares at March 31, 2021	5,941,909	$	89.54

The total intrinsic value of RSUs which vested during the fiscal years ended March 31, 2021, 2020 and 2019 was $218.5 million, $223.9 million and $229.3 million, respectively. The aggregate intrinsic value of RSUs outstanding at March 31, 2021 was $922.3 million, calculated based on the closing price of the Company's common stock of $155.22 per share on March 31, 2021. The amount of unearned share-based compensation currently estimated to be expensed in the remainder of fiscal 2022 through fiscal 2026 related to unvested share-based payment awards at March 31, 2021 is $300.1 million. The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 1.84 years.


	Number of Shares	Weighted Average Exercise Price per Share
Outstanding at March 31, 2018	284,340	$	31.21

Assumed upon acquisition	141,751	$	25.86
Exercised	(140,118)	$	27.67
Forfeited or expired	(4,091)	$	39.62
Outstanding at March 31, 2019	281,882	$	30.16


Exercised	(130,419)	$	28.71
Forfeited or expired	(2,453)	$	20.02
Outstanding at March 31, 2020	149,010	$	31.59


Exercised	(77,884)	$	31.48
Forfeited or expired	(629)	$	19.47
Outstanding at March 31, 2021	70,497	$	31.81

The total intrinsic value of options and SARs exercised during the fiscal years ended March 31, 2021, 2020 and 2019 was $6.5 million, $8.4 million and $8.3 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 and exercisable at March 31, 2021 was $10.9 million. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $155.22 per share on March 31, 2021. As of March 31, 2021, the weighted average remaining contractual term for options and SARs outstanding and exercisable was 2.06 years.

As of March 31, 2021 and March 31, 2020, the number of option and SAR shares exercisable was 70,497 and 149,010, respectively, and the weighted average exercise price per share was $31.81 and $31.59, respectively.

The Company’s 2001 Employee Stock Purchase Plan and the 1994 International Employee Stock Purchase Plan (collectively referred to as the employee stock purchase plans) allows eligible employees to purchase shares of the Company's common stock at 85% of the value of its common stock on specific dates. Since the inception of the employee stock purchase plans, 17,222,291 shares of common stock have been authorized for issuance and 5,929,687 shares remain available for future purchases as of March 31, 2021.

Employees purchased 712,220 shares of common stock in the fiscal year ended March 31, 2021 for a purchase price of $57.7 million under the employee stock purchase plans compared to 787,284 shares of common stock for a purchase price of $55.6 million in the fiscal year ended March 31, 2020 and 549,796 shares of common stock for a purchase price of $39.6 million in the fiscal year ended March 31, 2019. As of March 31, 2021, unrecognized share-based compensation costs related to the employee stock plans totaled $6.3 million, which will be recognized over a period of approximately five months.