Share-Based Compensation

12 Months Ended

Jun. 30, 2012

Share-Based Compensation [Abstract]

Share-Based Compensation

3. SHARE-BASED COMPENSATION:

     The Company has incentive and non-qualified stock options outstanding that were granted to directors, officers, and other employees pursuant to authorization by the Board of Directors. The exercise price per share of each option equals the market value of a share of the Company's common stock on the date of the grant. Substantially all of the options granted become exercisable in equal increments on the first three anniversaries of the date of grant. All outstanding options expire ten years from the date of grant. Since its inception in 1991, the Company has authorized approximately 38.8 million shares for issuance upon exercise of options. At June 30, 2012, approximately 10.2 million shares were available for issuance, of which approximately 6.8 million shares have been granted and remain outstanding and approximately 3.4 million shares remain available for grant.

     The non-cash share-based compensation expenses included in the consolidated statements of operations are as follows:

	Fiscal Year Ended June 30,
(in thousands, except per share data)	2012			2011			2010
Selling, general and administrative	$	15,067		$	11,747		$	11,717
Research and development		1,239			596			511
Cost of sales		195			105			137
Total non-cash share-based compensation expense		16,501			12,448			12,365
Income tax benefit		(5,163	)		(4,426	)		(4,283	)
Total non-cash share-based compensation expense, net of tax benefit	$	11,338		$	8,022		$	8,082
Impact on diluted net income per share attributable to MICROS Systems, Inc. common shareholders	$	0.14		$	0.10		$	0.10

No non-cash share-based compensation expense has been capitalized for fiscal years 2012, 2011 and 2010.

Estimates of fair values of options granted were made on the date of grant using the following assumptions:

	Fiscal Year Ended June 30,
	2012		2011		2010
Weighted-average expected volatility	40	%	41	%	42	%
Expected volatility	39% - 41	%	39% - 41	%	41% - 42	%
Expected term	4.8 – 5.7 years		4.9 – 5.5 years		5.0 – 5.2 years
Expected dividend yield	0	%	0	%	0	%
Risk-free interest rate	0.9% - 1.1%		1.4% - 1.9%		1.7% - 2.0%

The following is a summary of option activity during fiscal year 2012:

(in thousands, except per share data and number of years)	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at June 30, 2011	6,278		$	29.40	6.9	$	127,482
Granted	1,330		$	47.87
Exercised	(792	)	$	18.85
Forfeited or expired	(46	)	$	36.07
Outstanding at June 30, 2012	6,770		$	34.22	6.7	$	114,929
Exercisable at June 30, 2012	4,574		$	29.18	5.7	$	100,729

     The weighted-average grant-date estimated fair value per share of options granted during the fiscal years 2012, 2011 and 2010 was $17.67, $17.19 and $11.70, respectively. The total intrinsic value, which is the difference between the exercise price and the market price on the date of exercise, of options exercised during the fiscal years 2012, 2011 and 2010 was approximately $24.3 million, $34.9 million and $18.1 million, respectively.

     As of June 30, 2012, there was approximately $26.8 million (net of estimated forfeitures) in non-cash share-based compensation costs related to non-vested options that are expected to be recognized in the Company's consolidated statements of operations over a weighted-average period of 1.88 years.

     Cash received from options exercised during the fiscal years 2012, 2011 and 2010 was approximately $14.9 million, $28.1 million and $23.3 million, respectively.