Share-Based Compensation (Notes)

9 Months Ended

Dec. 31, 2017

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

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



	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2017		2016		2017		2016
Cost of sales ⁽¹⁾	$	3,494	$	3,468	$	10,587	$	15,465
Research and development	10,921		9,881		31,797		37,569
Selling, general and administrative	9,588		8,771		27,637		53,055
Pre-tax effect of share-based compensation	24,003		22,120		70,021		106,089
Income tax benefit ⁽²⁾	6,604		7,376		21,878		36,622
Net income effect of share-based compensation	$	17,399	$	14,744	$	48,143	$	69,467

⁽¹⁾ During the three and nine months ended December 31, 2017, $3.1 million and $8.9 million, respectively, of share-based compensation expense was capitalized to inventory and $3.5 million and $10.6 million, respectively, of previously capitalized share-based compensation expense in inventory was sold. During the three and nine months ended December 31, 2016, $2.8 million and $8.3 million, respectively, 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 December 31, 2016 included $3.5 million of previously capitalized share-based compensation expense in inventory that was sold. The amount of share-based compensation included in cost of sales during the nine months ended December 31, 2016 included $11.3 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.

⁽²⁾ Amounts exclude excess tax benefits related to share-based compensation of $5.7 million and $19.8 million, respectively, for the three and nine months ended December 31, 2017 and $6.1 million and $18.6 million, respectively, for the three and nine months ended December 31, 2016.

Atmel Acquisition-related Equity Awards

During the three months ended December 31, 2016, the Company recognized $3.9 million of share-based compensation expense in connection with the acquisition of Atmel. During the nine months ended December 31, 2016, the Company recognized $53.3 million of share-based compensation expense in connection with awards assumed in the acquisition of Atmel, of which $38.8 million was due to the accelerated vesting of outstanding equity awards upon termination of certain Atmel employees.