SHARE INCENTIVE PLANS:

3 Months Ended

Mar. 31, 2015

SHARE INCENTIVE PLANS:

SHARE INCENTIVE PLANS:

NOTE 8 — SHARE INCENTIVE PLANS:

Share option and restricted share units activity

The following table summarizes the share option activity under the Company’s equity incentive plans during the three months ended March 31, 2015:

	Options Outstanding
	Number  of  Shares		Weighted  Average  Exercise  Price
Outstanding at December 31, 2014	2,467,523		$	29.55
Options granted	—		—
Options exercised	(71,214	)	17.60
Options cancelled	(16,105	)	75.38
Outstanding at March 31, 2015	2,380,204		$	29.59

The total pretax intrinsic value of options exercised in the three months ended March 31, 2015 and 2014 was $2.0 million and $1.4 million, respectively. This intrinsic value represents the difference between the fair market value of the Company’s ordinary shares on the date of exercise and the exercise price of each option. Based on the closing price of the Company’s ordinary shares of $45.34 on March 31, 2015, the total pretax intrinsic value of all outstanding options was $54.5 million. The total pretax intrinsic value of exercisable options at March 31, 2015 was $53.3 million. The total pretax intrinsic value of exercisable options at December 31, 2014 was $50.1 million.

Restricted share units (“RSUs”) activity under the Company’s equity incentive plans in the three months ended March 31, 2015 is set forth below:

	Restricted Share Units Outstanding
	Number  of  Shares		Weighted Average  Grant Date  Fair Value
Non vested restricted share units at December 31, 2014	1,911,166		$	41.61
Restricted share units granted	870,003		45.89
Restricted share units vested	(175,613	)	39.75
Restricted share units canceled	(28,101	)	42.76
Non vested restricted share units at March 31, 2015	2,577,455		$	43.17

The weighted average fair value of RSUs granted in the three months ended March 31, 2015 and 2014 was $45.89 and $36.82, respectively. The total intrinsic value of all outstanding restricted share units was $116.9 million as of March 31, 2015 and $81.7 million as of December 31, 2014.

The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of March 31, 2015:

	Number  of  Shares
Share options outstanding	2,380,204
Restricted share units outstanding	2,577,455
Shares authorized for future issuance	1,652,472
ESPP shares available for future issuance	686,486
Total shares reserved for future issuance as of March 31, 2015	7,296,617

Share-based compensation

The following weighted average assumptions are used to value share options and ESPP shares issued pursuant to the Company’s equity incentive plans for the three months ended March 31, 2015 and 2014:

	Employee Share  Options		Employee Share  Purchase Plan
	Three Months Ended March 31,		Three Months Ended March 31,
	2015 (*)	2014 (*)	2015	2014
Dividend yield, %	—	—	—	—
Expected volatility, %	—	—	33.72	45.1
Risk free interest rate, %	—	—	0.12	0.08
Expected life, years	—	—	0.50	0.50
Estimated forfeiture rate, %	—	—	—	—

(*)There were no share options granted during the three months ended March 31, 2015 and 2014.

The following table summarizes the distribution of total share-based compensation expense in the unaudited condensed consolidated statements of operations:

	Three Months Ended  March 31,
	2015		2014
	(in thousands)
Cost of goods sold	$	547	$	522
Research and development	6,768		6,678
Sales and marketing	2,394		2,433
General and administrative	2,009		2,005
Total share-based compensation expense	$	11,718	$	11,638

At March 31, 2015, there was $98.5 million of total unrecognized share-based compensation costs related to non-vested share-based compensation arrangements. The costs are expected to be recognized over a weighted average period of 2.13 years.

At December 31, 2014, there was $74.5 million of total unrecognized share-based compensation costs related to non-vested share-based compensation arrangements. The costs are expected to be recognized over a weighted average period of approximately 1.97 years.