Citrix 2013 Annual Report Download - page 49

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45
and facilities, as well as from our acquisitions. Also contributing to the increase in General and administrative expense when
comparing 2013 to 2012 is an increase in stock-based compensation expense of $10.7 million related to retention-focused
stock-based awards granted to new and existing employees and assumed in connection with acquisitions. These increases were
partially offset by a decrease in certain facility and depreciation costs of $7.7 million due to a lower allocation of these costs as
employees are being added at a slower rate in general and administrative functions compared to research and development and
sales, marketing and services.
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.
2014 Operating Expense Outlook
When comparing the first quarter of 2014 to the fourth quarter of 2013, we are targeting operating expenses to 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, 2013
Compared to
2012
2012
Compared to
2011
2013 2012 2011
(In thousands)
Amortization of other intangible assets $ 41,668 $ 34,549 $ 16,390 $ 7,119 $ 18,159
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 2013
to 2012 was primarily due to amortization of other intangible assets acquired in conjunction with our acquisitions, primarily
Zenprise.
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.
As of December 31, 2013, we had unamortized other identified intangible assets with estimable useful lives in the net
amount of $260.5 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, 2013.
Other (expense) income, net
Year Ended December 31, 2013
Compared to
2012
2012
Compared to
2011
2013 2012 2011
(In thousands)
Other (expense) income, net $(1,021) $ 9,299 $ (288) $ (10,320) $ 9,587
Other (expense) income, net is primarily comprised of remeasurement of foreign currency transaction gains (losses),
realized losses related to changes in the fair value of our investments that have a decline in fair value considered other-than-
temporary and recognized gains (losses) related to our investments and interest expense, which was not material for all periods
presented.
The change in Other (expense) income, net when comparing 2013 to 2012 is primarily driven by strategic investment
activity. 2013 included a gain of $6.0 million and 2012 included a gain of $16.5 million from the sales of companies we invest
in.
The change in Other (expense) income, net when comparing 2012 to 2011 is primarily due to a $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. For more information see “— Liquidity and Capital Resources” and Note 4
to our consolidated financial statements included in this Annual Report on Form 10-K for the year ended December 31, 2013.