Citrix 2014 Annual Report Download - page 51

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45
currency of our wholly-owned foreign subsidiaries of our Mobility Apps division became the U.S. dollar as a result of a
reorganization in the foreign subsidiaries' operations.
Research and Development Expenses
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Research and development $ 553,817 $ 516,338 $ 450,571 $ 37,479 $ 65,767
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 2014 as compared to 2013 and during 2013 as compared to 2012
primarily due to an increase in compensation, including stock-based compensation and employee-related costs, primarily
related to increased headcount from strategic hiring and acquisitions.
Sales, Marketing and Services Expenses
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Sales, marketing and services $ 1,280,265 $ 1,216,680 $ 1,060,829 $ 63,585 $ 155,851
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 2014 compared to 2013 primarily due to a $33.3 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 when comparing 2014 to 2013 is a $12.0 million increase in professional fees related to strategic
initiatives and a $10.9 million increase in marketing program costs related to various marketing campaigns and events.
Sales, marketing and services expenses increased during 2013 compared to 2012 primarily due to a $91.5 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 2013 to 2012 is a $30.9 million increase in facilities costs and
related depreciation, consistent with the increase in headcount and a $21.0 million increase in marketing program costs related
to various marketing campaigns and events.
General and Administrative Expenses
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
General and administrative $ 319,922 $ 260,236 $ 245,259 $ 59,686 $ 14,977
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.
General and administrative expenses increased during 2014 compared to 2013 primarily due to a charge related to a
previously disclosed patent lawsuit of $20.7 million, an increase in compensation and employee related costs of $20.2 million
due to additional headcount primarily in information technology and facilities, as well as from our acquisitions and an increase
in professional fees of $19.0 million primarily related to projects to support business growth.
General and administrative expenses increased during 2013 compared to 2012 primarily due to an increase in
compensation and employee related costs of $11.8 million due to additional headcount, primarily in information technology