Citrix 2006 Annual Report Download - page 42

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General and administrative expenses consisted primarily
of personnel-related related costs and expenses related to
outside consultants assisting with regulatory compliance
and information systems, as well as, auditing and legal
fees. General and administrative expenses increased
during 2006 compared to 2005 primarily due to increases
in auditing, consulting and legal fees primarily related to
the investigation of our historical stock option granting
practices and the associated restatements of our prior
consolidated financial statements, as well as additional
compensation costs related to the adoption of SFAS
No. 123R, an increase in headcount and the associated
salaries and employee related expenses, and the full year
impact of our 2005 Acquisitions and, to a lesser extent,
the impact of our 2006 Acquisitions. Excluding the effects
of any pending acquisitions, we expect general and
administrative expenses to increase in 2007 due to costs
related to the investigation of our historical stock option
granting practices and the associated restatements of our
prior consolidated financial statements, the acquisition of
Ardence in January 2007 and continued investments to
support our future growth. For more information regarding
our acquisitions see, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations
— Overview” and Notes 4 and 18 to our consolidated
financial statements included elsewhere in this Annual
Report and for more information regarding the investigation
of our historical stock option granting practices and the
associated restatements of our prior financial statements,
see Note 2 to our consolidated financial statements
included elsewhere in this Annual Report on Form 10-K for
the year ended December 31, 2006.
General and administrative expenses increased for the
year ended December 31, 2005 compared to the year
ended December 31, 2004, primarily due to an increase
in headcount, associated salaries and employee related
expenses, an increase in staffing and employee related
expenses due to the 2005 Acquisitions and, to a lesser
extent, the full year impact of our 2004 Acquisitions.
Amortization of Other Intangible Assets
Year Ended December31, 2006
Compared to
2005
2005
Compared to
2004(In thousands) 2006 2005 2004
Amortization of the other intangible assets $ 16,934 $ 11,622 $ 6,204 $ 5,312 $ 5,418
Amortization of other intangible assets increased during
2006 as compared to 2005 due to an increase in
amortization expense related to certain finite intangible
assets acquired in our acquisitions. Amortization of other
intangible assets increased during 2005 as compared
to 2004 primarily due to an increase in certain acquired
finite-lived intangible assets. As of December 31, 2006,
we had unamortized other identified intangible assets with
estimable useful lives in the net amount of $40.0 million.
We currently expect amortization expense to increase
during 2007 as a result of our acquisitions. For more
information regarding our acquisitions see, “Management’s
Discussion and Analysis of Financial Condition and Results
of Operations — Overview” and Notes 4 and 18 to our
consolidated financial statements included elsewhere in
this Annual Report.
In-Process Research and Development
Year Ended December31, 2006
Compared to
2005
2005
Compared to
2004
(In thousands) 2006 2005 2004
In-process research and development $ 1,000 $ 7,000 $ 19,100 $ (6,000) $ (12,100)