Netgear 2012 Annual Report Download - page 48

Table of Contents
operating expense related marketing, and freight expenses of $1.8 million. Payroll-related expenses, excluding stock-
based compensation, were
relatively flat year-over-year, as an increase of $3.8 million in personnel-
related costs due to increased annual headcount were offset by a decrease of
$3.8 million in variable compensation. Sales and marketing headcount decreased by 5 employees to 352 employees at December 31, 2012
compared
to 357 employees at December 31, 2011 .
2011 vs 2010
Sales and marketing expenses increased $23.0 million, or 17.5%, to $154.6 million for the year ended December 31, 2011, from $131.6 million for
the year ended December 31, 2010. Of this increase, $13.8 million was related to an increase in payroll and other employee expenses primarily
attributable to increased overall sales and marketing headcount. Sales and marketing headcount increased by 54 employees to 357 employees at
December 31, 2011 compared to 303 employees at December 31, 2010. Further, $7.2 million of the increase was due to marketing costs resulting
from increased marketing campaigns, and call center and freight costs, resulting from greater sales volume.
General and Administrative
General and administrative expenses consist of salaries and related expenses for executives, finance and accounting, human resources,
information technology, professional fees, allowance for doubtful accounts and other general corporate expenses. The following table presents
general and administrative expense, for the periods indicated:
2012 vs 2011
General and administrative expenses increased $5.6 million , or 14.2% , to $45.0 million for the year ended December 31, 2012 , from
$39.4
million for the year ended December 31, 2011
. The increase was primarily due to an increase in outside professional services of $6.2 million largely
attributable to acquisition and litigation related activities and an increase of $1.9 million in facility-
related expenses. These increases were partially
offset by a decrease in personnel-
related expenses of $3.3 million, primarily related to the decrease in variable compensation. General and
administrative headcount increased by 14 employees to 128 employees at December 31, 2012 compared to 114 employees at December 31, 2011 .
2011 vs 2010
General and administrative expenses increased $3.2 million, or 8.8%, to $39.4 million for the year ended December 31, 2011, from $36.2
million for the year ended December 31, 2010. The increase was primarily due to an increase in payroll and other employee expenses primarily
attributable to increased headcount. General and administrative headcount increased by 16 employees to 114 employees at December 31, 2011
compared to 98 employees at December 31, 2010.
Restructuring and Other Charges
2012 vs 2011
Restructuring and other charges decreased $0.9 million , or 43.2% to an expense of $1.2 million during the year ended December 31, 2012
,
from $2.1 million for year ended December 31, 2011
. The expense of $1.2 million was primarily due to employee severance attributable to the
consolidation of product groups and the consolidation of the EMEA sales team within our commercial business unit.
2011 vs 2010
Restructuring and other charges increased $2.2 million, to an expense of $2.1 million during the year ended December 31, 2011, from a benefit
of $88,000 for year ended December 31, 2010. Of the $2.2 million increase, we incurred $1.6 million in restructuring costs for employee severance
related to the reorganization into three specific business units during the year ended
44
Year Ended December 31,
2012
% Change 2011 % Change 2010
(In thousands, except percentage data)
General and administrative expense
$
45,027
14.2
%
$
39,423
8.8
%
$
36,220
Percentage of net revenue
3.5
%
3.3
%
4.0
%