Citrix 2005 Annual Report Download - page 59

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Page฀57
The฀following฀table฀summarizes฀the฀Company’s฀non-vested฀stock฀activity฀for฀the฀year฀ended฀December฀31,฀2005:
Year฀Ended฀December฀31,฀2005
Number฀of฀Shares
Weighted-Average฀
Grant-Date฀Fair฀Value
Outstanding฀at฀the฀beginning฀of฀the฀year — $฀ —
฀ Granted 85,179 26.52
฀ Exercised — —
฀ Forfeited — —
Outstanding฀at฀the฀end฀of฀year 85,179 $฀26.52
Exercisable฀at฀end฀of฀year 5,194 $฀23.46
Stock฀Purchase฀Plan
The฀2005฀ESPP฀was฀originally฀adopted฀by฀the฀Board฀on฀March฀24,฀2005฀and฀approved฀by฀the฀Company’s฀stockholders฀in฀May฀
2005.฀The฀2005฀ESPP฀replaced฀the฀Company’s฀Third฀Amended฀and฀Restated฀1995฀Employee฀Stock฀Purchase฀Plan฀under฀which฀
no฀more฀shares฀may฀be฀granted.฀Under฀the฀2005฀ESPP,฀all฀full-time฀and฀certain฀part-time฀employees฀of฀the฀Company฀are฀eligible฀
to฀ receive฀ options฀ to฀ purchase฀ common฀ stock฀ of฀ the฀ Company฀ twice฀ per฀ year฀ at฀ the฀ end฀ of฀ a฀ six฀ month฀ payment฀ period฀ (a฀
“Payment฀Period”).฀During฀each฀Payment฀Period,฀eligible฀employees฀who฀so฀elect฀may฀authorize฀payroll฀deductions฀in฀an฀amount฀
no฀less฀than฀1%฀nor฀greater฀than฀10%฀of฀his฀or฀her฀base฀pay฀for฀each฀payroll฀period฀in฀the฀Payment฀Period.฀At฀the฀end฀of฀each฀
Payment฀Period,฀the฀accumulated฀deductions฀are฀used฀to฀purchase฀shares฀of฀common฀stock฀from฀the฀Company฀up฀to฀a฀maximum฀
of฀12,000฀shares฀for฀any฀one฀employee฀during฀a฀Payment฀Period.฀Shares฀are฀purchased฀at฀a฀price฀equal฀to฀85%฀of฀the฀fair฀market฀
value฀of฀the฀Company’s฀common฀stock฀on฀the฀last฀business฀day฀of฀a฀Payment฀Period.฀Employees฀who,฀after฀exercising฀their฀rights฀
to฀purchase฀shares฀of฀common฀stock฀under฀the฀ESPP,฀would฀own฀shares฀of฀5%฀or฀more฀of฀the฀voting฀power฀of฀the฀Company’s฀
common฀ stock,฀are฀ ineligible฀ to฀participate฀under฀ the฀2005฀ ESPP.฀ The฀ 2005฀ESPP฀provides฀ for฀the฀issuance฀ of฀ a฀ maximum฀ of฀
10,000,000฀shares฀of฀common฀stock.฀As฀of฀December฀31,฀2005,฀no฀shares฀have฀been฀issued฀under฀this฀plan.
Benefit฀Plan
The฀Company฀maintains฀a฀401(k)฀benefit฀plan฀(the฀“Plan”)฀allowing฀eligible฀U.S.-based฀employees฀to฀contribute฀up฀to฀60%฀of฀their฀
annual฀compensation,฀limited฀to฀an฀annual฀maximum฀amount฀as฀set฀periodically฀by฀the฀Internal฀Revenue฀Service.฀The฀Company,฀at฀
its฀discretion,฀may฀contribute฀up฀to฀$0.50฀of฀each฀dollar฀of฀employee฀contribution,฀limited฀to฀a฀maximum฀of฀6%฀of฀the฀employee’s฀
annual฀compensation.฀The฀Company’s฀matching฀contributions฀were฀$2.8฀million,฀$2.3฀million฀and฀$2.0฀million฀in฀2005,฀2004฀and฀
2003,฀respectively.฀The฀Company’s฀contributions฀vest฀over฀a฀four-year฀period฀at฀25%฀per฀year.
7.฀CAPITAL฀STOCK
Common฀Stock
The฀Company฀has฀reserved฀for฀future฀issuance฀41,758,088฀shares฀of฀common฀stock฀for฀the฀exercise฀of฀stock฀awards฀outstanding฀
or฀available฀for฀grant฀pursuant฀to฀its฀stock-based฀compensation฀plans.
Stock฀Repurchase฀Programs
The฀Company’s฀Board฀of฀Directors฀has฀authorized฀an฀ongoing฀stock฀repurchase฀program฀with฀a฀total฀repurchase฀authority฀granted฀to฀
the฀Company฀of฀$1.2฀billion,฀of฀which฀$200.0฀million฀was฀authorized฀in฀February฀2006฀and฀$200.0฀million฀was฀authorized฀in฀February฀
2005,฀the฀objective฀of฀which฀is฀to฀improve฀shareholders’฀return.฀At฀December฀31,฀2005,฀approximately฀$67.6฀million฀was฀available฀
to฀repurchase฀common฀stock฀pursuant฀to฀the฀stock฀repurchase฀program.฀All฀shares฀repurchased฀are฀recorded฀as฀treasury฀stock.
The฀Company฀is฀authorized฀to฀make฀open฀market฀purchases฀of฀its฀common฀stock฀using฀general฀corporate฀funds.฀Additionally,฀from฀
time฀to฀time,฀the฀Company฀has฀entered฀into฀structured฀stock฀repurchase฀arrangements฀with฀large฀financial฀institutions฀using฀general฀
corporate฀funds฀in฀order฀to฀lower฀the฀average฀cost฀to฀acquire฀shares.฀These฀programs฀include฀terms฀that฀require฀the฀Company฀to฀
make฀upfront฀payments฀to฀the฀counterparty฀financial฀institution฀and฀result฀in฀the฀receipt฀of฀stock฀during฀or฀at฀the฀end฀of฀the฀period฀
of฀the฀agreement฀or฀the฀receipt฀of฀either฀stock฀or฀cash฀at฀the฀maturity฀of฀the฀agreement,฀depending฀on฀market฀conditions.
The฀Company฀expended฀an฀aggregate฀of฀$174.3฀million,฀$121.9฀million฀and฀$123.9฀million฀during฀2005,฀2004฀and฀2003,฀respectively,฀
net฀of฀premiums฀received,฀under฀all฀stock฀repurchase฀transactions.฀During฀2005,฀the฀Company฀took฀delivery฀of฀a฀total฀of฀7,356,617฀
shares฀of฀outstanding฀common฀stock฀with฀an฀average฀per฀share฀price฀of฀$23.51;฀and฀during฀2004,฀the฀Company฀took฀delivery฀of฀a฀