Citrix 2007 Annual Report Download - page 56

increase in headcount and the associated salaries and employee related expenses due to our continued investment
in our business and systems to support our growth, the full year impact of our 2006 Acquisitions and the impact
of our 2007 Acquisitions, an increase in expenses related to outside consultants assisting us with information
systems and regulatory compliance, 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 and, to a lesser extent, an increase in depreciation primarily related to
information systems. We expect general and administrative expenses to increase in 2008 primarily due to the full
year impact of our XenSource Acquisition 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 Note 3 to our consolidated financial statements included in this Annual
Report on Form 10-K for the year ended December 31, 2007.
General and administrative expenses increased during 2006 compared to 2005 primarily due to increases in
auditing, consulting and legal fees which included costs 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.
Amortization of Other Intangible Assets
Year Ended December 31, 2007
Compared to
2006
2006
Compared to
20052007 2006 2005
(In thousands)
Amortization of the other intangible assets ......... $17,387 $16,934 $11,622 $ 453 $ 5,312
The increase in amortization of other intangible assets during 2007 as compared to 2006 was not
significant. 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. As of
December 31, 2007, we had unamortized other identified intangible assets with estimable useful lives in the net
amount of $99.0 million. We currently expect amortization expense to increase during 2008 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 Note 3 to our consolidated financial statements
included in this Annual Report on Form 10-K for the year ended December 31, 2007.
In-Process Research and Development
Year Ended December 31, 2007
Compared to
2006
2006
Compared to
20052007 2006 2005
(In thousands)
In-process research and development ............. $ 9,800 $ 1,000 $ 7,000 $8,800 $(6,000)
In 2007, $9.8 million of the purchase price paid for our 2007 Acquisitions was allocated to IPR&D, in 2006,
$1.0 million of the purchase price paid for our 2006 Acquisitions was allocated to IPR&D, and in 2005, $7.0
million of the purchase price paid for our 2005 Acquisitions was allocated to IPR&D. The amounts allocated to
IPR&D in our acquisitions had not yet reached technological feasibility, had no alternative future use and were
written-off at the date of the acquisitions in accordance with FASB Interpretation No. 4, Applicability of FASB
Statement No. 2 to Business Combinations Accounted for by the Purchase Method. For more information
regarding the acquisitions, see “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Overview” and Note 3 to our consolidated financial statements in this Annual Report on Form 10-K
for the year ended December 31, 2007.
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