Citrix 2009 Annual Report Download - page 56

approximately $6.4 million related to an adjustment of payroll taxes initially recorded in conjunction with our
voluntary, independent investigation of our historical stock option granting practices which were reduced upon
agreement with the Internal Revenue Service.
We currently expect that when comparing operating expenses for the year ended December 31, 2010
compared to the year ended December 31, 2009 operating expenses will increase.
Research and Development Expenses
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Research and development ................... $281,980 $288,109 $205,103 $(6,129) $83,006
Research and development expenses consisted primarily of personnel-related costs. We expensed
substantially all development costs included in the research and development of our products and new
functionality added to our existing products as incurred, except for certain core technologies which were
technologically feasible. Research and development expenses decreased during 2009 as compared to 2008
primarily due to a $17.3 million decrease in compensation and other employee related costs due to the
implementation of the Strategic Restructuring Program. Also contributing to the decrease in research and
development expenses was a $8.7 million decrease in stock-based compensation expense primarily related to
vesting of awards assumed in conjunction with our acquisition of XenSource, Inc., or the XenSource Acquisition.
These decreases were partially offset by a $16.3 million increase in depreciation and facility- related costs due
primarily to the revised allocation methodology described above and by a $5.2 million increase in compensation
expense due to the adjustment of goodwill related to our XenSource Acquisition. For more information regarding
our acquisitions see, “— Overview” and Note 3 to our consolidated financial statements included in this Annual
Report on Form 10-K for the year ended December 31, 2009.
Research and development expenses increased during 2008 as compared to 2007 primarily due to a
$42.0 million increase in stock-based compensation expense primarily related to options and awards assumed
in conjunction with the XenSource Acquisition. Also contributing to the increases in research and development
expenses were an increase of $33.5 million in staffing and related personnel costs due to continued investment in
our business and the full year impact of our XenSource Acquisition, as well as a $4.4 million increase in office
and facility related costs associated with increased headcount.
Sales, Marketing and Services Expenses
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Sales, marketing and services ................ $679,053 $669,569 $590,409 $ 9,484 $79,160
Sales, marketing and services expenses consisted primarily of personnel-related costs, including sales
commissions, and the costs of marketing programs aimed at increasing revenue, such as advertising, trade shows,
public relations and other market development programs. Sales, marketing and services expenses increased
during 2009 compared to 2008 primarily due to a $26.2 million increase in depreciation and other facility-related
costs due primarily to the revised allocation methodology described above. Also contributing to the increase in
sales, marketing and services expenses was a $7.4 million increase in marketing program costs related to our
worldwide advertising campaigns, a $3.5 million increase due to an increase in commissions paid to our resellers
and a $3.0 million increase due to the settlement of foreign currency contracts during the period which was offset
by lower foreign currency denominated expenses due to a stronger U.S. dollar. These increases were partially
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