eFax 2011 Annual Report Download - page 37

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Our general and administrative costs consist primarily of personnel-related expenses, depreciation and amortization, share-
based
compensation expense, bad debt expense, professional fees, severance and insurance costs. The increase in general and administrative expense
from 2010 to 2011 was primarily due to an increase in bad debt expense, amortization of intangible assets relating to acquisitions closed during
2010 and 2011, and an increase in personnel costs associated with businesses acquired in and subsequent to 2010 offset by a decrease in
professional fees.
The increase in general and administrative expense from 2009 to 2010 was primarily due to increased personnel and
severance costs associated with businesses acquired in fiscal 2010 and increased professional fees, compensation costs and office rent, offset by
decreased customer refunds and credits and bad debt expense.
Loss on disposal of long-lived asset
. During the fourth quarter of 2009, we determined based upon our current and future business
needs that the rights to certain external administrative software would not provide any future benefit. Accordingly, we recorded a disposal in the
amount of $2.4 million to the consolidated statement of operations representing the capitalized cost as of December 31, 2009. Total disposals of
long-
lived assets for the year ended December 31, 2011, 2010 and 2009 were approximately $0.3 million, $0.2 million and $2.5 million,
respectively.
Share
-Based Compensation
The following table represents the share-
based compensation expense included in cost of revenues and operating expenses in the
accompanying consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009 (in thousands):
As a percent of revenue
18%
19%
18%
Year Ended December 31,
2011
2010
2009
Cost of revenues
$
982
$
1,217
$
1,263
Operating expenses:
Sales and marketing
1,431
1,826
1,818
Research, development and engineering
477
815
853
General and administrative
6,103
7,079
7,084
$
8,993
$
10,937
$
11,018
-
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