Stock-Based Compensation

9 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

3. STOCK-BASED COMPENSATION

     During the nine-month period ended December 31, 2011, the Company granted equity compensation awards under the 2010 Equity Incentive Plan (the "2010 Plan"). For further discussion of the 2010 Plan, refer to Note 2, "Summary of Accounting Policies," of the Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2011.

The following table summarizes the Company's stock-based compensation expense:

		Three-Month Periods Ended				Nine-Month Periods Ended
		December 31, 2011	December 31, 2010			December 31, 2011	December 31, 2010
		(In thousands)				(In thousands)
Cost of sales	$	2,021	$	2,553	$	6,328	$	7,924
Selling, general and administrative expenses		9,961		11,265		32,179		34,314
Total stock-based compensation expense	$	11,982	$	13,818	$	38,507	$	42,238

     For the nine-month period ended December 31, 2011, the Company granted 599,800 stock options, at a weighted average fair value per option of $2.57. Total unrecognized compensation expense related to stock options is $12.0 million, net of estimated forfeitures, and will be recognized over a weighted average remaining vesting period of 1.1 years.

     As of December 31, 2011, the number of options outstanding and exercisable was 48.4 million and 39.8 million, respectively, at weighted average exercise prices of $7.55 and $8.15 per share, respectively.

     The following table summarizes restricted share unit award activity for the Company's equity compensation plans during the nine-month period ended December 31, 2011:

				Weighted Average
				Grant-Date Fair
	Number of Shares			Value
Unvested restricted share unit awards as of March 31, 2011	13,801,942		$	8.04
Granted	8,597,305			6.64
Vested	(2,254,398	)		9.95
Forfeited	(3,368,125	)		9.06
Unvested restricted share unit awards as of December 31, 2011	16,776,724		$	6.86

     Of the 8.6 million restricted share unit awards granted during the nine-month period ended December 31, 2011, approximately 1.5 million represents the target amount of grants made to certain key employees whereby vesting is contingent on meeting a certain market condition. The number of shares that ultimately will vest are based on a measurement of Flextronics's total shareholder return against the Standard and Poor's ("S&P") 500 Composite Index and will vest over a period of four years. The actual number of shares issued can range from zero to 2.2 million. The average grant-date fair value of these awards was estimated to be $7.78 per share and was calculated using a Monte Carlo simulation.

     As of December 31, 2011, total unrecognized compensation expense related to unvested restricted share unit awards is $70.0 million, net of estimated forfeitures, and will be recognized over a weighted average remaining vesting period of 2.9 years. Approximately $12.6 million of the total unrecognized compensation cost, net of estimated forfeitures, is related to awards whereby vesting is contingent on meeting a certain market condition.