Citrix 2005 Annual Report Download - page 58

Page฀56
In฀addition,฀the฀Company฀assumed฀stock-based฀employee฀compensation฀plans฀in฀its฀2005฀and฀2004฀Acquisitions,฀but฀no฀additional฀
awards฀will฀be฀granted฀under฀these฀assumed฀plans.
A฀summary฀of฀the฀status฀and฀activity฀of฀the฀Company’s฀fixed฀option฀awards฀is฀as฀follows:
Year฀Ended฀December฀31,
2005 2004 2003
Shares
Weighted-฀
Average฀
Exercise฀Price Shares
Weighted-฀
Average฀
Exercise฀Price Shares
Weighted-฀
Average฀฀
Exercise฀Price
Outstanding฀at฀beginning฀of฀year 36,928,162 $฀25.20 38,221,590 $฀24.56 41,220,517 $฀24.51
฀ Granted฀at฀market฀value 4,673,347 23.70 5,637,687 20.97 5,574,808 16.19
฀ Granted฀above฀market฀value 75,864 32.81 — — 348,500 12.00
฀ Granted฀below฀market฀value(1) 960,697 2.58 51,546 3.86 — —
฀ Exercised (6,230,836) 15.12 (4,491,795) 13.06 (4,722,911) 11.64
฀ Forfeited (2,101,397) 30.86 (2,490,866) 25.14 (4,199,324) 28.14
Outstanding฀at฀end฀of฀year 34,305,837 25.86 36,928,162 25.20 38,221,590 24.56
Options฀exercisable฀at฀end฀of฀year 24,397,758 28.67 25,525,048 28.62 25,044,225 28.76
Weighted-average฀fair฀value฀of฀options฀฀
฀ granted฀during฀the฀year฀at฀market฀value $฀ 6.80 $฀ 7.26 $฀ 8.68
Weighted-average฀fair฀value฀of฀options฀฀
฀ granted฀during฀the฀year฀above฀market฀value 3.61 — 6.71
Weighted-average฀fair฀value฀of฀options฀฀
฀ granted฀during฀the฀year฀below฀market฀value 21.30 21.55 —
(1)฀ Granted฀below฀market฀value฀represents฀option฀assumed฀in฀our฀2005฀Acquisitions.
Information฀about฀stock฀options฀outstanding฀as฀of฀December฀31,฀2005฀is฀as฀follows:
Options฀Outstanding
Range฀of฀฀
Exercise฀Prices
Options฀
Outstanding฀at฀
December฀31,฀2005
Weighted-Average฀
Remaining฀
Contractual฀Life
Weighted-
Average฀
Exercise฀Price
Options฀฀
Exercisable฀at฀
December฀31,฀2005
Weighted-฀
Average฀
Exercise฀Price
$฀ 0.24฀฀to฀฀$฀ ฀ 9.38 3,111,250 6.94 $฀฀ 5.32 1,783,858 $฀฀ 6.60
$10.26฀฀to฀฀$฀ 15.25 3,225,678 5.93 $฀13.34 2,272,196 $฀13.59
$15.34฀฀to฀฀$฀ 17.55 3,058,090 3.92 $฀16.42 2,462,009 $฀16.19
$17.66฀฀to฀฀$฀ 20.88 4,030,522 4.99 $฀19.24 2,711,699 $฀19.28
$20.94฀฀to฀฀$฀ 22.81 4,109,076 4.39 $฀22.28 1,949,316 $฀22.24
$22.94฀฀to฀฀$฀ 24.38 3,940,421 4.38 $฀23.84 1,474,738 $฀23.97
$24.39฀฀to฀฀$฀ 26.10 4,060,543 3.88 $฀25.36 3,440,208 $฀25.40
$26.13฀฀to฀฀$฀ 35.01 2,914,263 4.57 $฀30.05 2,448,500 $฀30.49
$35.49฀฀to฀฀$฀ 56.00 3,384,744 5.04 $฀39.47 3,383,984 $฀39.47
$64.06฀฀to฀฀$104.00 2,471,250 4.12 $฀77.03 2,471,250 $฀77.03
34,305,837 4.79 $฀25.86 24,397,758 $฀28.67
As฀part฀of฀the฀Company’s฀2005฀Acquisitions,฀the฀Company฀assumed฀25,179฀shares฀of฀non-vested฀stock฀held฀by฀certain฀NetScaler฀
employees.฀The฀non-vested฀stock฀assumed฀vests฀monthly฀based฀on฀service฀through฀October฀2007฀dependent฀upon฀the฀remaining฀
vesting฀period฀at฀the฀time฀of฀the฀acquisition.฀As฀part฀of฀an฀overall฀retention฀program,฀the฀Company฀also฀assumed฀$2.8฀million฀worth฀of฀
non-vested฀stock฀units฀and฀granted฀60,000฀shares฀of฀non-vested฀stock฀to฀certain฀employees฀retained฀from฀the฀2005฀Acquisitions.฀Of฀the฀
non-vested฀stock฀granted,฀45,000฀shares฀vest฀50%฀on฀the฀first฀anniversary฀of฀the฀grant฀date฀and฀50%฀on฀the฀second฀anniversary฀of฀the฀
grant฀date,฀the฀remaining฀15,000฀non-vested฀shares฀granted,฀vest฀50%฀on฀the฀first฀anniversary฀of฀the฀grant฀date฀and฀50%฀eighteen฀months฀
from฀the฀grant฀date.฀The฀unvested฀stock฀units฀vest฀33.33%฀six,฀twelve฀and฀eighteen฀months฀from฀the฀date฀of฀grant.฀The฀number฀of฀shares฀
that฀will฀be฀issued฀on฀each฀vest฀date฀is฀dependent฀upon฀the฀Company’s฀stock฀price฀over฀the฀five฀consecutive฀trading฀days฀prior฀to฀the฀
vesting฀date;฀provided,฀however฀that฀the฀number฀of฀shares฀issued฀pursuant฀to฀the฀non-vested฀stock฀units฀will฀not฀exceed฀280,000฀shares.
Citrix฀Systems,฀Inc.
Notes฀to฀Consolidated฀Financial฀Statements฀(Continued)