Share-based awards (Tables)

	Year ended March 31,
	2015		2016		2017
	(in millions of RMB)
Cost of revenue		4,176		4,003		3,893
Product development expenses		3,876		5,703		5,712
Sales and marketing expenses		1,235		1,963		1,772
General and administrative expenses		3,741		4,413		4,618

Total		13,028		16,082		15,995

A summary of changes in the share options relating to ordinary shares granted by the Company during the year ended March 31, 2017 is as follows:

	Number of share options			Weighted average exercise price		Weighted average remaining contractual life
				US$		(in years)
Outstanding at April 1, 2016		17,707,328			54.37		5.6
Granted		275,000			78.71
Exercised		(5,262,533	)		41.04
Cancelled/forfeited/expired		(1,006,792	)		42.68

Outstanding at March 31, 2017 (i)		11,713,003			61.94		5.0


Vested and exercisable at March 31, 2017		2,144,259			59.15		4.9
Vested and expected to vest at March 31, 2017 (ii)		11,347,974			61.42		5.0


(i)	Outstanding options as of March 31, 2017 include 1,141,875 unvested options early exercised.
(ii)	Share options expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding share options, including early exercised options.


(i)	Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant.
(ii)	Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying a dividend on its ordinary shares.
(iii)	Expected life of share options is based on the average between the vesting period and the contractual term for each grant.
(iv)	Expected volatility is assumed based on the historical volatility of the Company's comparable companies in the period equal to the expected life of each grant.

A summary of changes in the RSUs related to ordinary shares granted by the Company during the year ended March 31, 2017 is as follows:

	Number of RSUs			Weighted- average grant date fair value
				US$
Awarded and unvested at April 1, 2016		71,836,365			59.75
Granted		25,796,789			82.41
Vested		(21,945,063	)		54.74
Cancelled/forfeited		(6,092,372	)		66.06

Awarded and unvested at March 31, 2017		69,595,719			69.18


Expected to vest at March 31, 2017 (i)		60,534,893			67.98


(i)	RSUs expected to vest are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding RSUs.

	Year ended March 31,
	2015			2016		2017
Risk-free interest rate (i)		1.50	%		—		1.86	%
Expected dividend yield (ii)		0	%		—		0	%
Expected life (years) (iii)		4.00			—		8.25
Expected volatility (iv)		38.1	%		—		39.0	%
Discount for post-vesting sale restrictions (v)		35.0	%		—		—


(i)	Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share-based awards in effect at the time of grant.
(ii)	Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying a dividend on its ordinary shares.
(iii)	Expected life of the rights is based on management's estimate on timing of redemption for ordinary shares by the participants.
(iv)	Expected volatility is assumed based on the historical volatility of the Company's comparable companies in the period equal to expected life of each right.
(v)	Discount for post-vesting sale restrictions applied on the underlying ordinary shares takes into consideration the restriction on sales of eight years.