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Share-Based Compensation | 12 Months Ended
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Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation Share-Based Compensation Expense The following table presents the details of the Company's share-based compensation expense (amounts in millions):
| Year Ended March 31,
| 2018 |  | 2017 |  | 2016 |
Cost of sales | $ | 13.8 |  | (1) | $ | 18.7 |  | (1) | $ | 8.3 |  | (1)
Research and development | 42.5 |  |  | 46.8 |  |  | 32.0 |  |
Selling, general and administrative | 36.9 |  |  | 62.6 |  |  | 31.1 |  |
Pre-tax effect of share-based compensation | 93.2 |  |  | 128.1 |  |  | 71.4 |  |
Income tax benefit | 28.3 |  | (2) | 44.2 |  | (2) | 23.0 |  |
Net income effect of share-based compensation | $ | 64.9 |  |  | $ | 83.9 |  |  | $ | 48.4 |  |
(1) During the year ended March 31, 2018, $11.9 million of share-based compensation expense was capitalized to inventory, and $13.8 million of previously capitalized share-based compensation expense in inventory was sold. During the year ended March 31, 2017, $11.3 million of share-based compensation expense was capitalized to inventory. The amount of share-based compensation included in cost of sales during fiscal 2017 included $14.5 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 year ended March 31, 2016, $7.9 million of share-based compensation expense was capitalized to inventory, and $8.3 million of previously capitalized share-based compensation expense in inventory was sold. (2) Amounts exclude excess tax benefits related to share-based compensation of $28.1 million and $25.0 million for the years ended March 31, 2018 and March 31, 2017, respectively. The Company elected to early adopt ASU 2016-09 effective April 1, 2016. Prior to the adoption of ASU 2016-09, the Company recognized excess tax benefits related to share-based compensation in additional paid-in capital. Refer to Note 1 for additional information on the adoption of this standard. The amount of unearned share-based compensation currently estimated to be expensed in the remainder of fiscal 2019 through fiscal 2023 related to unvested share-based payment awards at March 31, 2018 is $169.6 million. The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 1.91 years. Atmel Acquisition-related Equity Awards In connection with the acquisition of Atmel, the Company assumed certain 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. Combined Incentive Plan Information RSU share activity under the 2004 Plan is set forth below:
| Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested shares at March 31, 2015 | 5,268,916 |  |  | $ | 34.15 |
Granted | 2,479,729 |  |  | 38.91 |
Assumed upon acquisition | 525,442 |  |  | 40.58 |
Forfeited | (360,072 | ) |  | 38.20 |
Vested | (1,606,273 | ) |  | 32.47 |
Nonvested shares at March 31, 2016 | 6,307,742 |  |  | 36.76 |
Granted | 1,635,655 |  |  | 51.46 |
Assumed upon acquisition | 2,059,524 |  |  | 46.57 |
Forfeited | (722,212 | ) |  | 43.58 |
Vested | (2,861,253 | ) |  | 38.60 |
Nonvested shares at March 31, 2017 | 6,419,456 |  |  | 42.06 |
Granted | 1,267,536 |  |  | 77.26 |
Forfeited | (279,051 | ) |  | 49.65 |
Vested | (1,735,501 | ) |  | 38.00 |
Nonvested shares at March 31, 2018 | 5,672,440 |  |  | $ | 50.79 |
The total intrinsic value of RSUs which vested during the years ended March 31, 2018, 2017 and 2016 was $146.0 million, $166.1 million and $72.1 million, respectively. The aggregate intrinsic value of RSUs outstanding at March 31, 2018 was $518.2 million, calculated based on the closing price of the Company's common stock of $91.36 per share on March 31, 2018. At March 31, 2018, the weighted average remaining expense recognition period was 1.96 years. Stock option and stock appreciation right (SAR) activity under the Company's stock incentive plans in the three years ended March 31, 2018 is set forth below:
| Number of Shares |  | Weighted Average Exercise Price per Share
Outstanding at March 31, 2015 | 684,299 |  |  | $ | 28.41 |
Granted | 244 |  |  | 41.09 |
Assumed upon acquisition | 604,900 |  |  | 35.03 |
Exercised | (221,987 | ) |  | 25.30 |
Forfeited or expired | (153,948 | ) |  | 31.52 |
Outstanding at March 31, 2016 | 913,508 |  |  | 33.00 |
Exercised | (437,906 | ) |  | 34.34 |
Forfeited or expired | (42,485 | ) |  | 34.26 |
Outstanding at March 31, 2017 | 433,117 |  |  | 31.51 |
Exercised | (131,666 | ) |  | 31.75 |
Forfeited or expired | (17,111 | ) |  | 34.73 |
Outstanding at March 31, 2018 | 284,340 |  |  | $ | 31.21 |
The total intrinsic value of options and SARs exercised during the years ended March 31, 2018, 2017 and 2016 was $7.4 million, $9.6 million and $4.7 million, respectively. This intrinsic value represents the difference between the fair market value of the Company's common stock on the date of exercise and the exercise price of each equity award. The aggregate intrinsic value of options and SARs outstanding at March 31, 2018 was $17.1 million. The aggregate intrinsic value of options and SARS exercisable at March 31, 2018 was $13.8 million. The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $91.36 per share on March 29, 2018. As of March 31, 2018 and March 31, 2017, the number of option and SAR shares exercisable was 224,022 and 264,061, respectively, and the weighted average exercise price per share was $29.96 and $29.59, respectively. The weighted average fair values per share of stock options granted in the year ended March 31, 2016 was $8.85. The fair values per share of stock options granted in the year ended March 31, 2016 were estimated utilizing the following assumptions:
| Year Ended March 31,
| 2016
Expected term (in years) | 6.5 |
Volatility | 29.50 | %
Risk-free interest rate | 1.54 | %
Dividend yield | 3.00 | %
There were no stock options granted in the years ended March 31, 2018 and March 31, 2017.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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