SHARE-BASED COMPENSATION

3 Months Ended

Jun. 26, 2015

Share-based Compensation, Allocation and Classification in Financial Statements [Abstract]

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



	Three-Month Periods Ended
	June 26, 2015		June 27, 2014
	(In thousands)
Cost of sales	$	2,018	$	1,611
Selling, general and administrative expenses	14,108		10,071
Total share-based compensation expense	$	16,126	$	11,682

Total unrecognized compensation expense related to share options is not significant. As of June 26, 2015, the number of options outstanding and exercisable was 7.9 million and 7.8 million, respectively, at a weighted-average exercise price of $4.66 and $4.65 per share, respectively.

During the three-month period ended June 26, 2015, the Company granted 5.7 million unvested share bonus awards. Of this amount, approximately 4.8 million unvested share bonus awards have an average grant date price of $12.10 per share, under the Company's 2010 Equity Incentive Plan. Further, approximately 0.7 million of these unvested shares represents the target amount of grants made to certain key employees whereby vesting is contingent on certain market conditions, and 0.2 million represents the target amount of grants made to certain executive officers whereby vesting is contingent on meeting certain free cash flow targets. The number of shares contingent on market conditions that ultimately will vest range from zero up to a maximum of 1.4 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 number of shares contingent on free cash flow targets that ultimately will vest range from zero up to a maximum of 0.4 million of the target payment based on a measurement of cumulative three-year increase of free cash flow from operations of the Company, and will cliff vest after a period of three years.

As of June 26, 2015, approximately 17.7 million unvested share bonus awards were outstanding, of which vesting for a targeted amount of 3.8 million is contingent primarily on meeting certain market conditions. The number of shares that will ultimately be issued can range from zero to 7.6 million based on the achievement levels of the respective conditions. During the three-month period ended June 26, 2015, 2.2 million shares vested in connection with the share bonus awards with market conditions granted in fiscal year 2013, and 0.5 million shares vested in connection with the share bonus awards with market conditions granted in fiscal year 2012.

As of June 26, 2015, total unrecognized compensation expense related to unvested share bonus awards is $146.5 million, net of estimated forfeitures, and will be recognized over a weighted-average remaining vesting period of 3.03 years. Approximately $22.5 million of the total unrecognized compensation cost, net of estimated forfeitures, is related to awards whereby vesting is contingent on meeting certain market conditions.