Research and Development ("R&D")
R&D expenses consist primarily of labor costs less capitalized software development costs. The following table provides information regarding our R&D expenses in fiscal years 2012 and 2011:
Fiscal Year Ended June 30, (in thousands) 2012 2011 R&D labor and other costs
$ 59,228 $ 51,424
Capitalized software development costs (7,197 ) (5,580
) Total R&D expenses
$ 52,031 $ 45,844% of Revenue 4.7 % 4.5 % The increases in capitalized software development costs and total R&D expenses are primarily related to continued development of our next generation retail and property management related software. The increase in total R&D expenses is also due to the ongoing research and development programs conducted by certain of our recent acquisitions.
Depreciation and Amortization Expenses
Depreciation and amortization expenses for fiscal year 2012 decreased approximately
$0.6 millioncompared to fiscal year 2011 to approximately $16.2 million. This decrease is primarily due to an increase in fully depreciated assets, partially offset by additional depreciation and amortization expenses related to recent acquisitions and increased depreciation expenses related
to our hosting centers.
Share-Based Compensation Expenses
The following table provides information regarding our recognition of non-cash share-based compensation expense, which was included in the SG&A expenses, R&D expenses and cost of sales for fiscal years 2012 and 2011, as indicated below: Fiscal Year Ended
(in thousands, except per share data) 2012
$ 15,067 $ 11,747R&D 1,239 596 Cost of sales 195 105
Total non-cash share-based compensation expense 16,501 12,448 Income tax benefit (5,163 ) (4,426 ) Total non-cash share-based compensation expense, net of tax benefit
$ 11,338 $ 0.14 $ 0.10As of June 30, 2012, there was approximately $26.8 millionin non-cash share-based compensation cost related to non-vested awards that were not yet recognized in our consolidated statements of operations. This cost is expected to be recognized over a weighted-average period of 1.88 years. 40 Income from Operations Income from operations for fiscal year 2012 increased approximately $24.1 million, or 11.4%, to approximately $234.5 million, compared to fiscal year 2011. The increase reflects an increase in total revenue and our continued cost cutting efforts.Foreign currency exchange rate fluctuations decreased our income from operations for fiscal year 2012 by approximately $3.9 millioncompared
to fiscal year 2011.