SHARE-BASED COMPENSATION

9 Months Ended

Dec. 31, 2014

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

3.  SHARE-BASED COMPENSATION

The following table summarizes the Company’s share-based compensation expense:

	Three-Month Periods Ended				Nine-Month Periods Ended
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
	(In thousands)
Cost of sales	$	2,083	$	1,800	$	5,562	$	5,018
Selling, general and administrative expenses	12,136		11,311		31,259		25,399
Total share-based compensation expense	$	14,219	$	13,111	$	36,821	$	30,417

Total unrecognized compensation expense related to share options is $0.2 million, net of estimated forfeitures, and will be recognized over a weighted-average remaining vesting period of 1.5 years. As of December 31, 2014, the number of options outstanding and exercisable was 17.3 million, respectively, both at a weighted-average exercise price of $7.87 per share.

During the nine-month period ended December 31, 2014, the Company granted 6.4 million unvested share bonus awards at an average grant date price of $11.71 per share, under its 2010 Equity Incentive Plan.  Of this amount, approximately 1.0 million represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions.  The number of shares that ultimately will vest range from zero up to a maximum of 2.0 million based on a measurement of the percentile rank of the Company’s total shareholder return over a certain specified period against the Standard and Poor’s (“S&P”) 500 Composite Index and will cliff vest after a period of three years, if such market conditions have been met.  The average grant-date fair value of these awards was estimated to be $15.81 per share and was calculated using a Monte Carlo simulation.

As of December 31, 2014, approximately 19.1 million unvested share bonus awards were outstanding, of which vesting for a targeted amount of 5.0 million is contingent primarily on meeting certain market conditions.  The number of shares that will ultimately be issued can range from zero to 9.7 million based on the achievement levels of the respective conditions.  During the nine-month period ended December 31, 2014, 0.3 million shares vested in connection with the remaining number of share bonus awards with market conditions granted in fiscal 2011, and 0.4 million shares vested in connection with half of the share bonus awards with market conditions granted in fiscal 2012.

As of December 31, 2014, total unrecognized compensation expense related to unvested share bonus awards is $98.0 million, net of estimated forfeitures, and will be recognized over a weighted-average remaining vesting period of 2.6 years. Approximately $18.2 million of the total unrecognized compensation cost, net of estimated forfeitures, is related to awards whereby vesting is contingent on meeting certain market conditions.