Netgear 2013 Annual Report Download - page 49

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Table of Contents
2013 vs 2012
Sales and marketing expenses increased $4.0 million , or 2.7% , to $153.8 million for the year ended December 31, 2013 , from $149.8 million
for the
year ended December 31, 2012 . Sales and marketing expense as a percentage of net revenue was relatively flat for the year ended December 31, 2013
as
compared to the year ended December 31, 2012
. The change in sales and marketing expense was due to increases of $6.4 million in amortization of
intangible assets, largely related to intangible assets acquired from AirCard, and $1.1 million in personnel and facility related expenses. These increases
were partially offset by decreases of $1.7 million in variable compensation expenses, $0.7 million in projects and outside professional services, $0.6
million in marketing expenses and $0.5 million in freight costs. Sales and marketing headcount increased by 35 employees to 387
employees at
December 31, 2013 compared to 352 employees at December 31, 2012 .
2012 vs 2011
Sales and marketing expenses decreased $4.8 million, or 3.1%, to $149.8 million for the year ended December 31, 2012, from $154.6 million for the
year ended December 31, 2011. The decrease was primarily due to a decrease in marketing costs of $3.1 million, as we shifted our marketing efforts
towards activities that were deemed to be a reduction in net revenue and away from 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.
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:
2013 vs 2012
General and administrative expenses increased $3.9 million , or 8.6% , to $48.9 million for the year ended December 31, 2013 , from
$45.0 million
for the year ended December 31, 2012
. General and administrative expenses as a percentage of net revenue were relatively flat for the year ended
December 31, 2013 as compared to the year ended December 31, 2012
. The increase in general and administration expenses was primarily attributable
to a $3.9 million increase in outside legal services due to additional litigation and merger and acquisition activity, and a $1.4 million increase in
personnel and facility-
related expenses. These increases were partially offset by a $1.2 million decrease in variable compensation. General and
administrative headcount increased by 16 employees to 144 employees at December 31, 2013 compared to 128 employees at December 31, 2012 .
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.
Restructuring and Other Charges
2013 vs 2012
46
Year Ended December 31,
2013
% Change
2012
% Change
2011
(In thousands, except percentage data)
General and administrative expense
$
48,915
8.6
%
$
45,027
14.2
%
$
39,423
Percentage of net revenue
3.6
%
3.5
%
3.3
%