Table:
|  | Change between Fiscal increase (decrease) |  |
| --- | --- | --- |
| (In thousands) | 2019 and 2018 | 2018 and 2017 |
| Payroll and payroll-related benefits | $12,629 | $39,119 |
| Contract labour and consulting | (6,791) | (3,899) |
| Share-based compensation | (385) | (1,490) |
| Travel and communication | (588) | (343) |
| Facilities | (4,775) | 7,834 |
| Other miscellaneous | (1,163) | 473 |
| Total change in research and development expenses | $(1,073) | $41,694 |
Paragraphs:
Research and development expenses consist primarily of payroll and payroll-related benefits expenses, contracted research and development expenses, and facility costs. Research and development assists with organic growth and improves product stability and functionality, and accordingly, we dedicate extensive efforts to update and upgrade our product offerings. The primary driver is typically budgeted software upgrades and software development.
Research and development expenses decreased by $1.1 million during the year ended June 30, 2019 as compared to the prior fiscal year. This was primarily due to a reduction in contract labour and consulting of $6.8 million and a reduction in the use of facility and related expenses of $4.8 million, partially offset by an increase in payroll and payroll-related benefits of $12.6 million. The increase in payroll and payroll-related benefits was driven primarily by increased headcount from recent acquisitions. Overall, our research and development expenses, as a percentage of total revenues, remained stable at approximately 11% compared to prior fiscal year.
Our research and development labour resources increased by 336 employees, from 3,331 employees at June 30, 2018 to 3,667 employees at June 30, 2019.
Question:
What do Research and development expenses consist primarily of?