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Share-based Payments
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Share-based Payments
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 September 30,For the Nine Months Ended September 30,
(In millions)2023202220232022
Research and development
$217.1 $24.5 $276.3 $72.6 
Selling, general and administrative234.9 46.5 333.4 129.3 
Subtotal452.0 71.0 609.7 201.9 
Capitalized share-based compensation costs (2.6)(2.0)(8.5)(7.1)
Share-based compensation expense included in total cost and expense449.4 69.0 601.2 194.8 
Income tax effect(98.5)(13.0)(126.5)(36.0)
Share-based compensation expense included in net income (loss) attributable to Biogen Inc.$350.9 $56.0 $474.7 $158.8 
In connection with our acquisition of Reata in September 2023 we recognized Reata equity-based compensation expense, inclusive of employer taxes, of approximately $393.4 million attributable to the post-acquisition service period, of which $196.4 million was recognized as a charge to selling, general and administrative expense with the remaining $197.0 million as a charge to research and development expense within our condensed consolidated statements of income for the three and nine months ended September 30, 2023. These amounts were associated with the accelerated vesting of stock options and RSUs previously granted to Reata employees and required no future services to vest. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.
The following table summarizes share-based compensation expense associated with each of our share-based compensation programs:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
(In millions)2023202220232022
Market stock units$0.7 $4.0 $4.2 $11.4 
Time-vested restricted stock units53.4 48.7 175.0 150.4 
Performance stock units settled in stock7.8 10.5 27.1 22.1 
Performance stock units settled in cash0.1 5.4 4.8 7.9 
Employee stock purchase plan2.0 2.4 8.8 10.1 
Stock options(1)
1.0 — 2.8 — 
Reata equity awards(2)
387.0 — 387.0 — 
Subtotal452.0 71.0 609.7 201.9 
Capitalized share-based compensation costs(2.6)(2.0)(8.5)(7.1)
Share-based compensation expense included in total cost and expense$449.4 $69.0 $601.2 $194.8 
(1) During the fourth quarter of 2022 we granted stock options. For additional information, please read Note 16, Share-Based Payments, to our consolidated financial statements included in our 2022 Form 10-K.
(2) Relates to the Reata equity-based compensation expense attributable to the post-acquisition service period, associated with the accelerated vesting of stock options and RSUs previously granted to Reata employees and required no future services to vest. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.
We estimate the fair value of our obligations associated with our 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.