Citrix 2014 Annual Report Download - page 52

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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.
Restructuring Expenses
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Restructuring $ 20,424 $ — $ — $ 20,424 $ —
In March 2014, we implemented the 2014 Restructuring Program, which included the reduction of our headcount by
approximately 320 full-time positions. The pre-tax charges we incurred were primarily related to severance and other costs
directly related to the reduction of our workforce. The restructuring program is expected to be completed by the end of the first
quarter of 2015. Additionally, in January 2015, we implemented the 2015 Restructuring Program and anticipate incurring pre-
tax charges related to employee severance arrangements and the consolidation of leased facilities. For more information, see
“—Executive Summary— Overview” and Note 17 to our consolidated financial statements included in this Annual Report on
Form 10-K for the year ended December 31, 2014.
2015 Operating Expense Outlook
When comparing the first quarter of 2015 to the fourth quarter of 2014, we are targeting operating expenses to increase in
Sales, marketing and services as we refocus our investments on our highest growth opportunities, while remaining at consistent
levels across all other functional areas. We also expect to incur charges in the first quarter of 2015 related to the 2015
Restructuring Program.
Interest Expense
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Interest expense $ 28,332 $ 128 $ 312 $ 28,204 $ (184)
Interest expense in 2014 consists primarily of interest on our convertible senior notes. The increase was primarily due
to interest expense associated with the issuance of our convertible senior notes. We currently are targeting interest expense will
increase when comparing the first quarter of 2015 to the first quarter of 2014 as we entered into our convertible senior note in
April 2014.
Amortization of Other Intangible Assets
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Amortization of other intangible assets $ 45,898 $ 41,668 $ 34,549 $ 4,230 $ 7,119
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 2014 to 2013 was primarily due to impairments
of certain intangible assets within the Enterprise and Service Provider division during the fourth quarter of 2014 and
amortization of other intangible assets acquired in conjunction with our 2014 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.