Share-Based Compensation

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



	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2018		2017		2018		2017
Cost of sales ⁽¹⁾	$	3.4	$	3.5	$	10.9	$	10.6
Research and development	19.4		10.9		53.2		31.8
Selling, general and administrative	16.6		9.6		46.1		27.6
Special (income) charges and other, net	0.2		—		17.3		—
Pre-tax effect of share-based compensation	39.6		24.0		127.5		70.0
Income tax benefit ⁽²⁾	8.2		6.6		27.3		21.9
Net income effect of share-based compensation	$	31.4	$	17.4	$	100.2	$	48.1

⁽¹⁾ During the three and nine months ended December 31, 2018, $4.7 million and $12.6 million, respectively, of share-based compensation expense was capitalized to inventory and $3.4 million and $10.9 million, respectively, of previously capitalized share-based compensation expense in inventory was sold. 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.

⁽²⁾ Amounts exclude excess tax benefits related to share-based compensation of $4.1 million and $13.1 million, respectively, for the three and nine months ended December 31, 2018 and $5.7 million and $19.8 million, respectively, for the three and nine months ended December 31, 2017.

Microsemi Acquisition-related Equity Awards

In connection with its acquisition of Microsemi, the Company assumed certain restricted stock units (RSUs), stock appreciation rights (SARs), and stock options granted by Microsemi. The assumed awards were measured at the acquisition date based on the estimated fair value, which was a total of $175.4 million. A portion of that fair value, $53.9 million, which represented the pre-acquisition vested service provided by employees to Microsemi, 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 $121.5 million, representing post-acquisition share-based compensation expense that will be recognized as these employees provide service over the remaining vesting periods. During the nine months ended December 31, 2018, the Company recognized $53.5 million of share-based compensation expense in connection with the acquisition of Microsemi, of which $2.6 million was capitalized into inventory and $17.3 million was due to the accelerated vesting of outstanding equity awards upon termination of certain Microsemi employees.