SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2015

12. SHARE-BASED COMPENSATION

Share-based compensation expense consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2015		2014		2015		2014
Cost of goods manufactured and sold	$	4,311	$	1,557	$	6,806	$	5,636
Research and development		9,028		3,403		18,951		10,886
Selling, general and administrative		21,928		8,521		48,716		29,718
Total share-based compensation expense	$	35,267	$	13,481	$	74,473	$	46,240

At September 30, 2015 and December 31, 2014, $0.9 million and $0.8 million, respectively, of share-based compensation cost was capitalized and recorded as “Inventory” in the accompanying condensed consolidated balance sheets.

On March 3, 2014, the Company granted performance-vesting restricted stock unit awards, 50% of which would vest upon either the approval of ARISTADA by the U.S. Food and Drug Administration (“FDA”) or the continued successful development of ALKS 5461, and the remaining 50% would vest on the one-year anniversary of the initial performance-vesting event. In September 2015, the Company determined that it was probable that these awards would vest and began to recognize expense from these awards. In the three and nine months ended September 30, 2015, the Company recognized $2.5 million, $3.1 million and $8.3 million in cost of goods manufactured and sold; research and development; and selling, general and administrative expense, respectively.