The decrease in capitalized software development costs is primarily related to the completion of the development of C3G, our supply chain and life cycle management tool software, during the three months ended
September 30, 2012, and XBR Ingenium, our next generation loss prevention reporting and business analytics solution, during the three months ended March 31, 2013. The increase in total R&D expenses is primarily associated with Torex R&D expenses.
Depreciation and Amortization Expenses
Depreciation and amortization expenses for fiscal year 2013 increased approximately
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 2013 and 2012, as indicated below: Fiscal Year Ended
(in thousands, except per share data) 2013
$ 19,124 $ 15,067R&D 1,640 1,239 Cost of sales 338 195
Total non-cash share-based compensation expense 21,102
Income tax benefit (6,721 )
(5,163 ) Total non-cash share-based compensation expense, net of tax benefit
$ 14,381 $ 0.18 $ 0.14As of June 30, 2013, approximately $30.1 millionin non-cash share-based compensation cost related to non-vested awards was not yet recognized in our consolidated statements of operations. This cost is expected to be recognized over a weighted-average period of 1.89 years. Income from Operations Income from operations for fiscal year 2013 decreased approximately $7.5 million, or 3.2%, to approximately $227.0 million, compared to fiscal year 2012. The decrease reflects lower margins (as a percent of revenue) generated by Torex, which generally has higher sales of non-proprietary hardware compared to our other business, and realizes lower margins from its products and services, and an increase in costs associated with our research and development efforts, primarily related to Torex R&D expenses. Foreign currency exchange rate fluctuations also contributed to the decrease in our income from operations for fiscal year 2013 by approximately $2.4 millioncompared to fiscal year 2012. These decreases were partially offset by our continued cost cutting efforts. 36
Non-operating Income (Expense)
Net non-operating income for fiscal year 2013 was approximately
$6.8 millioncompared to net non-operating income of approximately $2.7 millionfor fiscal year 2012. This increase is primarily due to realized gains of approximately $4.1 millionon sale of our investments in auction rate securities during fiscal year 2013. Fiscal years 2013 and 2012 also include credit based impairment losses related to our investments in auction rates securities of approximately $0.6 millionand $4.0 million, respectively. The net favorable fiscal year 2013 changes were partially offset by a decrease in interest income of approximately $2.8 million, primarily due to lower funds available during fiscal year 2013 as a result of our use of available cash to acquire Torex in May 2012.