Share-Based Compensation

9 Months Ended

Sep. 30, 2013

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

Share-Based Compensation

Share-Based Compensation

Share-based compensation expense related to share options, RSUs and grants under our ESPP was as follows (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Selling, general and administrative	$	9,354		$	5,330	$	25,898		$	11,967
Research and development	1,931			681		4,453			1,718
Cost of product sales	591			344		1,788			999
Total share-based compensation expense, pre-tax	11,876			6,355		32,139			14,684
Tax benefit from share-based compensation expense	(3,502		)	—		(9,850		)	—
Total share-based compensation expense, net of tax	$	8,374		$	6,355	$	22,289		$	14,684

Share Options

The table below shows the number of shares underlying options granted to purchase our ordinary shares, the weighted-average assumptions used in the Black-Scholes option pricing model and the resulting weighted-average grant date fair value of share options granted:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Shares underlying options granted (in thousands)	105			1,157			1,277			2,077
Grant date fair value	$	37.17		$	23.13		$	28.49		$	25.23
Black-Scholes option pricing model assumption information:
Volatility	57		%	64		%	59		%	64		%
Expected term (years)	4.4			4.2			4.4			4.6
Range of risk-free rates	1.0-1.4%			0.5-0.6%			0.5-1.4%			0.5-1.1%
Expected dividend yield	—		%	—		%	—		%	—		%

Restricted Stock Units

The table below shows the number of RSUs granted covering an equal number of our ordinary shares and the weighted-average grant date fair value of RSUs granted:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
RSUs granted (in thousands)	46		550		568		1,002
Grant date fair value	$	80.35	$	46.83	$	60.73	$	48.98

The fair value of RSUs is determined on the date of grant based on the market price of our ordinary shares as of that date. The fair value of RSUs is recognized as expense ratably over the vesting period of four years.

As of September 30, 2013, compensation cost not yet recognized related to unvested share options and RSUs was $58.3 million and $46.3 million, respectively, which is expected to be recognized over a weighted-average period of 2.7 years and 3.0 years, respectively.