Share-Based Compensation (Notes)

3 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

The following table presents the details of the Company's share-based compensation expense (amounts in thousands):



	Three Months Ended
	June 30,
	2016			2015
Cost of sales	$	7,897	⁽¹⁾	$	1,657	⁽¹⁾
Research and development	17,517			7,098
Selling, general and administrative	34,165			5,357
Pre-tax effect of share-based compensation	59,579			14,112
Income tax benefit	20,888			3,532
Net income effect of share-based compensation	$	38,691		$	10,580

⁽¹⁾ During the three months ended June 30, 2016, $2.8 million of share-based compensation expense was capitalized to inventory. The amount of share-based compensation included in cost of sales during the three months ended June 30, 2016, included $3.7 million of previously capitalized share-based compensation expense in inventory that was sold and $4.2 million of share-based compensation expense related to the Company's acquisition of Atmel that was not previously capitalized to inventory. During the three months ended June 30, 2015, $1.8 million of share-based compensation expense was capitalized to inventory and $1.7 million of previously capitalized share-based compensation expense in inventory was sold.

Atmel Acquisition-related Equity Awards

In connection with the acquisition of Atmel, the Company assumed certain restricted stock units (RSUs) granted by Atmel. The assumed awards were measured at the acquisition date based on the estimated fair value, which was a total of $95.9 million. A portion of that fair value, $7.5 million, which represented the pre-acquisition vested service provided by employees to Atmel, was included in the total consideration transferred as part of the acquisition. As of the acquisition date, the remaining portion of the fair value of those awards was $88.4 million, representing post-acquisition share-based compensation expense that will be recognized as these employees provide service over the remaining vesting periods. During the three months ended June 30, 2016, the Company recognized $43.2 million of share-based compensation expense in connection with the acquisition of Atmel, of which $37.1 million was due to the accelerated vesting of outstanding equity awards upon termination of certain Atmel employees.