Share-based Payments

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-based Compensation Expense

The following table summarizes share-based compensation expense included in our condensed consolidated statements of income:



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Research and development	$	28.1		$	17.6		$	49.8		$	39.5
Selling, general and administrative	54.8			25.2			82.6			53.7
Subtotal	82.9			42.8			132.4			93.2
Capitalized share-based compensation costs	(2.8		)	(2.8		)	(6.1		)	(6.2		)
Share-based compensation expense included in total cost and expenses	80.1			40.0			126.3			87.0
Income tax effect	(13.6		)	(6.5		)	(21.0		)	(14.1		)
Share-based compensation expense included in net income attributable to Biogen Inc.	$	66.5		$	33.5		$	105.3		$	72.9

The following table summarizes share-based compensation expense associated with each of our share-based compensation programs:



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In millions)	2019			2018			2019			2018
Market stock units	$	7.8		$	7.1		$	15.5		$	13.2
Time-vested restricted stock units	31.8			30.6			66.5			66.7
Cash settled performance units	0.4			(0.7		)	(0.6		)	3.6
Performance units	0.3			2.0			0.8			1.2
Performance stock units settled in stock	12.1			1.4			14.1			2.1
Performance stock units settled in cash	0.9			0.3			1.9			0.4
Employee stock purchase plan	3.4			2.1			8.0			6.0
NST stock options	26.2			—			26.2			—
Subtotal	82.9			42.8			132.4			93.2
Capitalized share-based compensation costs	(2.8		)	(2.8		)	(6.1		)	(6.2		)
Share-based compensation expense included in total cost and expenses	$	80.1		$	40.0		$	126.3		$	87.0

We estimate the fair value of our obligations associated with our performance units, cash settled performance units and performance stock units settled in cash at the end of each reporting period through expected settlement. Cumulative adjustments to these obligations are recognized each quarter to reflect changes in the stock price and estimated outcome of the performance-related conditions.

Stock option expense reflects the accelerated vesting of stock options previously granted to NST employees as a result of our acquisition of NST. For additional information on our acquisition of NST, please read Note 2, Acquisitions, to these condensed consolidated financial statements.