STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2015

Share-Based Compensation

The following table summarizes share-based compensation, net of the amount capitalized in inventory, included in operating results:



	Three Months Ended
	March 31, 2015			March 31, 2014
	(in thousands)
Cost of revenue	$	1,115		$	1,316
Research and development	3,578			4,729
Selling, general and administrative	8,994			9,572
Total share-based compensation expense, before income taxes	13,687			15,617
Tax benefit	(2,867		)	(2,924		)
Total share-based compensation expense, net of income taxes	$	10,820		$	12,693

Activity under Atmel’s 2005 Stock Plan is set forth below:



			Outstanding Options				Weighted-
					Exercise		Average
	Available for Grant		Number of Options		Price per Share		Exercise Price per Share
	(in thousands, except for per share data)
Balances, December 31, 2014	13,611		3,059		$2.13-$10.01		$	4.57
Restricted stock units issued	(479	)	—		—		—
Plan adjustment for restricted stock units issued	(273	)	—		—		—
Restricted stock units cancelled	363		—		—		—
Plan adjustment for restricted stock units cancelled	210		—		—		—
Performance-based restricted stock units cancelled	253		—		—		—
Plan adjustment for performance-based restricted stock units cancelled	144		—		—		—
Options cancelled/expired/forfeited	2		(2	)	$	3.26	$	3.26
Options exercised			(198	)	$2.66-$6.28		$	3.51
Balances, March 31, 2015	13,831		2,859
Options vested and expected to vest at March 31, 2015			2,859

Activity related to restricted stock units is set forth below:



	Number of Units		Weighted-Average Grant Date Fair Value
	(in thousands, except for per share data)
Balances, December 31, 2014	18,163		$	8.40
Restricted stock units issued	479		8.45
Restricted stock units vested	(1,898	)	8.43
Restricted stock units cancelled	(363	)	7.71
Performance-based restricted stock units cancelled	(253	)	7.35
Balances, March 31, 2015	16,128		$	8.43

The following assumptions were utilized to determine the fair value of the 2010 ESPP shares: