Avid 2014 Annual Report Download - page 50

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our September 30, 2012 and prior financial statements related activities. The increase in personnel-related expenses was
primarily the result of higher accruals for incentive-based compensation, as well as costs related to our management transition,
partially offset by lower stock-based compensation expense. The decrease in facilities and information technology infrastructure
costs was primarily due to employee headcount reductions and facilities closures resulting from our 2012 restructuring actions.
Amortization of Intangible Assets
Intangible assets result from acquisitions and include developed technology, customer-related intangibles, trade names and other
identifiable intangible assets with finite lives. These intangible assets are amortized using the straight-line method over the
estimated useful lives of such assets, which are generally two years to twelve years. Amortization of developed technology is
recorded within cost of revenues. Amortization of customer-related intangibles, trade names and other identifiable intangible
assets is recorded within operating expenses.
Year-Over-Year Change in Amortization of Intangible Assets for the Years Ended December 31, 2014 and 2013
(dollars in thousands)
2014 Decrease
From 2013 2013 Decrease From 2012
$%$%
Amortization of intangible assets recorded in cost of revenues $ (1,418) (96.6)% $ (1,106) (43.0)%
Amortization of intangible assets recorded in operating expenses (1,022) (38.6)% (1,606) (37.8)%
Total amortization of intangible assets $ (2,440) (59.3)% $ (2,712) (39.7)%
2014 Compared to 2013
The decrease in amortization of intangible assets recorded in cost of revenues and operating expenses during 2014, compared to
2013, was primarily the result of certain acquired intangible assets becoming fully amortized. The unamortized balance of our
identifiable intangible assets related to all acquisitions was $2.4 million at December 31, 2014. We expect amortization of these
intangible assets to be approximately $1.5 million in 2015 and $0.9 million in 2016. See Note I, Intangible Assets, to our
Consolidated Financial Statements in Item 8 for further information regarding our identifiable intangible assets.
2013 Compared to 2012
The decrease in amortization of intangible assets recorded in cost of revenues during 2013, compared to 2012, was primarily the
result of certain acquired technology-related intangible assets becoming fully amortized. The decrease in amortization recorded
in operating expenses for the same period was primarily the result of certain acquired intangible assets becoming fully amortized.
Restructuring Costs, Net
2013 Restructuring Actions
In June 2013, our leadership evaluated the marketing and selling teams and, in an effort to better align sales resources with our
strategic goals and enhance its global account team approach, eliminated 31 positions. As a result, we recognized related
restructuring costs of $1.7 million in 2013.
During November and December 2013, our executive management team identified opportunities to lower costs in the supply and
hardware technology group by eliminating 29 positions in hardware shared services and 15 positions in the supply and technology
group. Additionally, an engineering reorganization at the same time resulted in the elimination of four engineering positions. As
a result, we recognized $1.7 million of related restructuring costs in 2013.
2012 Restructuring Plan
In June 2012, we committed to a series of strategic actions (the “2012 Plan”) to focus on our Broadcast and Media market and
Video and Audio Post and Professional market and to drive improved operating performance. These actions included the