Share-Based Compensation

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



	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cost of sales ⁽¹⁾	$	3,699	$	4,100	$	7,093	$	11,997
Research and development	10,587		10,171		20,876		27,688
Selling, general and administrative	9,324		10,119		18,049		44,284
Pre-tax effect of share-based compensation	23,610		24,390		46,018		83,969
Income tax benefit ⁽²⁾	7,846		8,358		15,274		29,246
Net income effect of share-based compensation	$	15,764	$	16,032	$	30,744	$	54,723

⁽¹⁾ During the three and six months ended September 30, 2017, $3.1 million and $5.8 million, respectively, of share-based compensation expense was capitalized to inventory and $3.7 million and $7.1 million, respectively, of previously capitalized share-based compensation expense in inventory was sold. During the three and six months ended September 30, 2016, $2.7 million and $5.5 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 September 30, 2016 included $4.1 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 six months ended September 30, 2016 included $7.8 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 $8.2 million and $14.1 million, respectively, for the three and six months ended September 30, 2017 and $5.8 million and $12.5 million, respectively, for the three and six months ended September 30, 2016.

Atmel Acquisition-related Equity Awards

During the three months ended September 30, 2016, the Company recognized $6.2 million of share-based compensation expense in connection with the acquisition of Atmel. During the six months ended September 30, 2016, the Company recognized $49.4 million of share-based compensation expense in connection with awards assumed in the acquisition of Atmel, of which $37.2 million was due to the accelerated vesting of outstanding equity awards upon termination of certain Atmel employees.