Citrix 2012 Annual Report Download - page 51

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47
General and administrative expenses increased during 2012 compared to 2011 primarily due to an increase in
compensation and employee related costs of $20.2 million due to additional headcount, primarily in operations, as well as from
our acquisitions. Also contributing to the increase in General and administrative expense when comparing 2012 to 2011 is an
increase in stock-based compensation expense of $13.6 million related to retention-focused stock-based awards granted to new
and existing employees and assumed in connection with acquisitions.
General and administrative expenses increased during 2011 compared to 2010 primarily due to an increase in
compensation and employee related costs of $30.4 million due to additional headcount, primarily in IT, facilities and
operations, to support our growth and a related increase in stock-based compensation of $8.6 million. Also contributing to the
increase in general and administrative expense is a $9.9 million increase in professional fees primarily related to acquisitions
and strategic investment activity.
2013 Operating Expense Outlook
When comparing the first quarter of 2013 to the fourth quarter of 2012, we are targeting operating expenses to increase in
Research and development; Sales, marketing and services and General and administrative primarily due to the acquisition of
Zenprise completed in the first quarter of 2013. In addition, we are targeting an increase in Research and development as we
continue to bring to market new technologies and improve integration of existing technologies and in Sales, marketing and
services as we continue to focus on hiring to expand our go-to-market capacity and customer direct touch, as well as increasing
consulting and technical support capacity.
Amortization of Other Intangible Assets
Year Ended December 31, 2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
(In thousands)
Amortization of other intangible assets $ 34,549 $ 16,390 $ 14,279 $ 18,159 $ 2,111
Amortization of other intangible assets consists of amortization of customer relationships, trade names and covenants not
to compete primarily related to our acquisitions. The increase in Amortization of other intangible assets when comparing 2012
to 2011 was primarily due to amortization of other intangible assets acquired in conjunction with our acquisitions, primarily
Bytemobile. Also contributing to the increase is a $5.2 million impairment related to our decision to contribute our CloudStack
tradename acquired in conjunction with our acquisition of Cloud.com to the Apache Software Foundation in 2012.
The increase in amortization of other intangible assets during 2011 as compared to 2010 was primarily due to acquired
intangible assets related to 2011 acquisitions of $5.9 million offset by other acquired customer related intangible assets
becoming fully amortized during 2011 of $4.0 million.
As of December 31, 2012, we had unamortized other identified intangible assets with estimable useful lives in the net
amount of $275.8 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, 2012.
Other Income (Expense), Net
Year Ended December 31, 2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
(In thousands)
Other income (expense), net $ 9,299 $ (288) $ (1,473) $ 9,587 $ 1,185
Other income (expense), net is primarily comprised of remeasurement of foreign currency transaction gains (losses),
realized gains (losses) related to changes in the fair value of our investments that have a decline in fair value that is considered
other-than-temporary, recognized gains (losses) related to investments and interest expense which was not material for all
periods presented.
Other income (expense), net increased when comparing 2012 to 2011 primarily due to $16.5 million increase in gain on
our strategic investments due to the sale of companies that we invested in, partially offset by a loss on remeasurement of our
foreign currency transactions of $7.9 million.
Other income (expense), net increased when comparing 2011 to 2010 primarily due to a gain on remeasurement of our
foreign currency transactions of $3.5 million and a decrease in losses recognized on prepayments at par of securities purchased
at a premium within our available-for-sale investment portfolio of $0.6 million partially offset by an impairment recognized on