Citrix 2012 Annual Report Download - page 50

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46
Research and Development Expenses
Year Ended December 31, 2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
(In thousands)
Research and development $ 450,571 $ 380,674 $ 361,376 $ 69,897 $ 19,298
Research and development expenses consisted primarily of personnel related costs and facility and equipment costs
directly related to our research and development activities. We expensed substantially all development costs included in the
research and development of our products.
Research and development expenses increased during 2012 as compared to 2011 due to a $35.8 million increase in
compensation and other employee-related costs, primarily related to increased headcount due to strategic hiring and
acquisitions, and an increase in stock-based compensation expense of $22.0 million, primarily related to retention-focused
awards granted to new and existing employees and assumed in conjunction with our acquisitions. Also contributing to the
increase in Research and development expenses when comparing 2012 to 2011 is a $13.5 million increase in facilities costs and
related depreciation, consistent with the increase in headcount.
Research and development expenses increased during 2011 as compared to 2010 primarily due to a $36.4 million
increase in compensation and other employee related costs primarily related to increased headcount due to strategic hiring and
acquisitions. Partially offsetting the increases in research and development costs when comparing 2011 to 2010 is a $22.4
million decrease in stock-based compensation expense due to stock-based awards related to certain acquisitions that fully
vested. The increase primarily relates to the strategic hiring of employees in research and development as discussed above in
our Executive Summary.
Sales, Marketing and Services Expenses
Year Ended December 31, 2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
(In thousands)
Sales, marketing and services $ 1,060,829 $ 885,066 $ 771,660 $ 175,763 $ 113,406
Sales, marketing and services expenses consisted primarily of personnel related costs, including sales commissions, pre-
sales support, the costs of marketing programs aimed at increasing revenue, such as brand development, advertising, trade
shows, public relations and other market development programs and costs related to our facilities, equipment and information
systems that are directly related to our sales, marketing and services activities.
Sales, marketing and services expenses increased during 2012 compared to 2011 primarily due to a $132.9 million
increase in compensation, including variable and stock-based compensation and employee-related costs due to additional
headcount in our sales force and professional services group, as well as from our acquisitions. Also contributing to the increase
in Sales, marketing and services expense when comparing 2012 to 2011 is an $18.7 million increase in facilities costs and
related depreciation, consistent with the increase in headcount.
Sales, marketing and services expenses increased during 2011 compared to 2010 primarily due to an $81.1 million
increase in compensation, including variable compensation and employee-related costs due to additional headcount in our sales
force and professional services group, as well as from our acquisitions. Also contributing to the increase in sales, marketing and
services expense was a $10.6 million increase in facilities costs and related depreciation, consistent with the increase in
headcount and a $10.3 million increase in marketing program costs related to various marketing campaigns and events.
General and Administrative Expenses
Year Ended December 31, 2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
(In thousands)
General and administrative $ 245,259 $ 213,673 $ 173,394 $ 31,586 $ 40,279
General and administrative expenses consisted primarily of personnel related costs and expenses related to outside
consultants assisting with information systems, as well as accounting and legal fees.