Citrix 2009 Annual Report Download - page 57

offset by a $34.5 million decrease in compensation and other employee related costs resulting from the
implementation of the Strategic Restructuring Program. For more information see, “— Overview” included in
this Annual Report on Form 10-K for the year ended December 31, 2009.
Sales, marketing and services expenses increased during 2008 compared to 2007 primarily due to a $54.6
million increase in headcount and the associated increase in salaries and employee related expenses due to our
continued investment partially offset by decreases in commissions of $8.4 million. Also contributing to the
increase in sales, marketing and services expenses were increases in marketing program costs related to our
worldwide advertising campaigns of $16.7 million, an increase of $8.3 million in stock-based compensation
expense primarily related to options and awards assumed in conjunction with our XenSource Acquisition and an
increase in commissions paid to our resellers of $6.4 million. During 2008, we also increased our utilization of
personnel for revenue generating activities, which is reflected as cost of service revenues rather than sales,
marketing and services expense.
General and Administrative Expenses
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
General and administrative .................. $239,623 $256,679 $229,229 $(17,056) $27,450
General and administrative expenses consisted primarily of personnel-related related costs and expenses
related to outside consultants assisting with regulatory compliance and information systems, as well as
accounting and legal fees. General and administrative expenses decreased during 2009 compared to 2008
primarily due to a $26.7 million decrease resulting from the revised methodology of allocating depreciation and
other facility related costs as described above (net of current period additions). These decreases were partially
offset by an increase in legal fees of $8.7 million. 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.
General and administrative expenses increased during 2008 compared to 2007 primarily due to a
$12.1 million increase in headcount and the associated salaries and employee related expenses, a $8.7 million
increase in depreciation primarily related to information systems and a $8.6 million increase in IT support and
data services all of which were to support our growth in 2008. Also contributing to the increase in general and
administrative expenses is an increase of $8.3 million in stock-based compensation expense primarily related to
options and awards assumed in conjunction with our XenSource Acquisition. These increases were partially
offset by a decrease of $9.7 million in consulting and legal fees primarily related to the investigation of our
historical stock option granting practices and the associated restatements of our prior consolidated financial
statements, which concluded in 2007.
Restructuring
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Restructuring ............................ $ 26,473 $ — $ — $ 26,473 $ —
On January 28, 2009, we announced the implementation of the Strategic Restructuring Program, which
primarily included the reduction of our headcount by approximately 450 full-time positions. During 2009 we
incurred a pre-tax charge of $26.5 million of which $21.7 million related to severance and other costs directly
related to the reduction of our workforce and $4.8 million related to the consolidation of certain of our facilities.
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