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SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Mar. 31, 2018
Share-based compensation  
Schedule of share-based compensation expense
The following table summarizes the Company's share-based compensation expense for all Equity Incentive Plans:
 
Fiscal Year Ended March 31,
 
2018
 
2017
 
2016
 
(In thousands)
Cost of sales
$
19,102

 
$
10,023

 
$
8,986

Selling, general and administrative expenses
66,142

 
72,243

 
68,594

Total share-based compensation expense
$
85,244

 
$
82,266

 
$
77,580
2010 Equity Incentive Plan  
Share-based compensation  
Summary of option activity
The following is a summary of option activity for the Company's 2017 and 2010 Plans ("Price" reflects the weighted-average exercise price):
 
Fiscal Year Ended March 31,
 
2018
2017
2016
 
Options
 
Price
 
Options
 
Price
 
Options
 
Price
Outstanding, beginning of fiscal year
142,327

 
$
8.97

 
2,369,636

 
$
8.31

 
15,992,894

 
$
7.81

Granted
—

 
—

 
—

 
—

 
—

 
—

Exercised
(125,949
)
 
8.63

 
(1,573,356
)
 
6.89

 
(10,006,774
)
 
6.10

Forfeited
(9,500
)
 
11.55

 
(653,953
)
 
12.39

 
(3,616,484
)
 
12.23

Outstanding, end of fiscal year
6,878

 
$
9.78

 
142,327

 
$
8.97

 
2,369,636

 
$
8.31

Options exercisable, end of fiscal year
5,751

 
$
9.52

 
138,950

 
$
8.93

 
2,359,527

 
$
8.30
Schedule of share bonus award activity
The following table summarizes the Company's share bonus award activity under the 2017 and 2010 Plans ("Price" reflects the weighted-average grant-date fair value):
 
Fiscal Year Ended March 31,
 
2018
2017
2016
 
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
Unvested share bonus awards outstanding, beginning of fiscal year
15,698,582


$
12.44


17,000,076


$
10.77


18,993,252

 
$
9.01

Granted (1)
6,155,761


16.99


8,261,666


13.46


7,619,722

 
12.23

Vested (1)
(6,473,562
)

12.17


(8,606,246
)

9.44


(8,529,378
)
 
7.93

Forfeited
(1,488,739
)

13.38


(956,914
)

11.20


(1,083,520
)
 
9.67

Unvested share bonus awards outstanding, end of fiscal year
13,892,042


$
14.52


15,698,582


$
12.44


17,000,076

 
$
10.77



(1) Included in the fiscal years 2018 and 2017 amounts are 0.7 million and 1.7 million of share bonus awards, respectively, representing the number of awards achieved above target levels based on the achievement of certain market conditions, as further described in the table below. These awards were issued and immediately vested in accordance with the terms and conditions of the underlying awards.
Schedule of share bonus awards with market conditions
Of the 13.9 million unvested share bonus awards outstanding under the 2017 and 2010 Plans as of the fiscal year ended 2018, approximately 2.0 million of unvested share bonus awards represents the target amount of grants made to certain key employees whereby vesting is contingent on meeting certain market conditions summarized as follows:

 
 
Targeted
number of
awards as of
March 31, 2018
(in shares)
 
 
 
Range of shares
that may be issued (1)
 
 
 
 
Average
grant date
fair value
(per share)
 
 
 
 
 
Assessment dates
Year of grant
 
 
Minimum
 
Maximum
 
Fiscal 2018
 
623,620

 
$
20.25

 
—

 
1,247,240

 
June 2020
Fiscal 2017
 
677,523

 
$
17.57

 
—

 
1,355,046

 
June 2019
Fiscal 2016
 
648,929

 
$
14.96

 
—

 
1,297,858

 
June 2018
Totals
 
1,950,072

 
 

 
—

 
3,900,144

 
 


(1) Vesting ranges from zero to 200% based on measurement of Flex's total shareholder return against the Standard and Poor's ("S&P") 500 Composite Index.
2010 Equity Incentive Plan | Options  
Share-based compensation  
Schedule of weighted-average assumptions
The fair value of the Company's share-bonus awards under the 2017 and 2010 Plans, whereby vesting is contingent on meeting certain market conditions, for fiscal years 2018, 2017 and 2016 was estimated using the following weighted-average assumptions:

 
Fiscal Year Ended March 31,
 
2018
 
2017
 
2016
Expected volatility
25.1
%
 
25.8
%
 
26.0
%
Average peer volatility
28.7
%
 
25.1
%
 
23.0
%
Average peer correlation
0.6

 
0.6

 
0.6

Expected dividends
0.0
%
 
0.0
%
 
0.0
%
Risk-free interest rate
1.5
%
 
0.9
%
 
1.2
%
2014 NEXTracker Equity Incentive Plan  
Share-based compensation  
Schedule of weighted-average assumptions
The fair value of share options granted under the NEXTracker Plan for fiscal years 2018 and 2016 was estimated using the following weighted-average assumptions:
 
Fiscal Year Ended
March 31, 2018
Fiscal Year Ended
March 31, 2016
Expected term
6.5 years
2.9 years
Expected volatility
28.8%
28.8%
Expected dividends
0.0%
0.0%
Risk-free interest rate
2.1%
0.9%
Weighted-average fair value
$16.29
$7.76
Summary of option activity
The following is a summary of option activity for the NEXTracker Plan ("Price" reflects the weighted-average exercise price):
 
Fiscal Year Ended March 31,
 
2018
 
2017
 
2016
 
Options

Price
 
Options

Price
 
Options
 
Price
Outstanding, beginning of fiscal year
1,636,016


$
3.61

 
2,741,854


$
3.44

 
—

 
$
—

Granted
288,386


0.54

 
—


—

 
3,205,806

 
3.28

Exercised
(510,322
)

3.27

 
(709,845
)

2.24

 
(237,380
)
 
0.99

Forfeited
(352,820
)

5.69

 
(395,993
)

4.64

 
(226,572
)
 
3.75

Outstanding, end of fiscal year
1,061,260


$
3.55

 
1,636,016


$
3.61

 
2,741,854

 
$
3.44

Options exercisable, end of fiscal year
352,829


$
5.11

 
369,015


$
5.00

 
223,869

 
$
4.95
2014 NEXTracker Equity Incentive Plan | Share bonus awards  
Share-based compensation  
Schedule of share bonus award activity
The following table summarizes the Company's share bonus award activity under the NEXTracker Plan ("Price" reflects the weighted-average grant-date fair value):

Fiscal Year Ended March 31,

2018
 
2017
 
2016

Shares

Price
 
Shares

Price
 
Shares
 
Price
Unvested share bonus awards outstanding, beginning of fiscal year
1,543,437


$
10.23

 
2,309,096


$
10.27

 
—

 
$
—

Granted
524,978


16.73

 
—


—

 
2,393,195

 
10.27

Vested
(471,831
)

7.63

 
(705,738
)

10.19

 
(31,925
)
 
10.27

Forfeited
(868,934
)

10.18

 
(59,921
)

10.27

 
(52,174
)
 
10.27

Unvested share bonus awards outstanding, end of fiscal year
727,650


$
11.85

 
1,543,437


$
10.23

 
2,309,096

 
$
10.27