Adobe 2014 Annual Report Download - page 49

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49
Sales and marketing expenses increased due to the following:
% Change
2014-2013 % Change
2013-2012
Compensation and related benefits associated with headcount.............................................. 1% 4%
Compensation associated with cash and stock-based incentives............................................ — 4
Various individually insignificant items................................................................................. 1 (1)
Total change......................................................................................................................... 2% 7%
General and Administrative
General and administrative expenses consist primarily of compensation and benefit expenses, travel expenses and related
facilities costs for our finance, facilities, human resources, legal, information services and executive personnel. General and
administrative expenses also include outside legal and accounting fees, provision for bad debts, expenses associated with computer
equipment and software used in the administration of the business, charitable contributions and various forms of insurance.
General and administrative expenses increased due to the following:
% Change
2014-2013 % Change
2013-2012
Compensation associated with cash and stock-based incentives............................................ 3% 4%
Compensation and related benefits associated with headcount growth.................................. — 4
Loss contingency .................................................................................................................... 2 —
Professional and consulting fees............................................................................................. (2) 7
Charitable contributions.......................................................................................................... — 2
Various individually insignificant items................................................................................. 1 3
Total change......................................................................................................................... 4% 20%
See Note 15 of our Notes to the Consolidated Financial Statements for further information regarding the loss contingency.
Professional and consulting fees increased during fiscal 2013 as compared to fiscal 2012 primarily due to increased
professional and legal fees including those associated with the attacks on our network discovered in September 2013.
Restructuring and Other Charges
During the past several years, we have initiated various restructuring plans. During fiscal 2014, in connection with our
recent Fiscal 2014 Restructuring Plan, we recorded $19.4 million associated with termination benefits and closing redundant
facilities. In connection with our Other Restructuring Plans, we recorded insignificant charges associated with closing redundant
facilities. We also recorded minor adjustments for changes in previous estimates during the fiscal year.
During fiscal 2013, management approved a plan to sell land, building and other assets located in Waltham, Massachusetts
(the "Waltham property assets") with a total carrying amount of $47.4 million. As of May 31, 2013, we classified the Waltham
property assets as held for sale at $23.6 million representing their fair value, net of estimated costs to sell which was the lesser
of the fair value less cost to sell or carrying amount of the assets. As a result, we recorded a write-down of $23.8 million during
fiscal 2013. In September 2013, we finalized the sale of the Waltham property assets for net proceeds of $24.3 million which
approximated the carrying value of the assets at the time of sale.
Also during fiscal 2013, in connection with our Fiscal 2011 Restructuring Plan and Other Restructuring Plans, we recorded
$6.3 million associated with termination benefits and closing redundant facilities. We also recorded $3.0 million in net favorable
employee termination and facility related adjustments for changes in previous estimates during the fiscal year.
During fiscal 2012, in connection with our Fiscal 2011 Restructuring Plan and Other Restructuring Plans, we recorded
$17.4 million associated with termination benefits and closing redundant facilities. We also recorded $20.3 million in net favorable
employee termination and facility related adjustments for changes in previous estimates during the fiscal year.
See Note 10 of our Notes to Consolidated Financial Statements for further information regarding our restructuring plans.