Citrix 2009 Annual Report Download - page 100

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
project’s sales cycle and by estimating the amount of after-tax cash flows attributable to the projects. The future
cash flows were discounted to present value utilizing an appropriate risk-adjusted rate of return, which ranged
from 20% to 36%. The rate of return included a factor that takes into account the uncertainty surrounding the
successful development of the IPR&D.
In 2009, the Company adopted new accounting rules for acquisitions and future IPR&D will be capitalized.
4. INVESTMENTS
Available-for-sale Investments
Investments in available-for-sale securities at fair value were as follows for the years ended December 31,
(in thousands):
2009 2008
Description of the Securities
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Agency securities ......... $507,443 $1,412 $ (781) $508,074 $258,574 $2,291 $ (1,074) $259,791
Corporate securities ....... 315,239 1,255 (5,295) 311,199 164,255 295 (14,775) 149,775
Municipal securities ....... 31,177 25 (8) 31,194 39,646 132 (17) 39,761
Government securities ..... 30,269 146 (70) 30,345 28,450 263 (52) 28,661
Commercial paper ........ 26,314 — (1) 26,313 4,274 9 — 4,283
Other .................. — — — — 2,594 — — 2,594
Money market funds ...... — — — — 1,976 — — 1,976
Total ................... $910,442 $2,838 $(6,155) $907,125 $499,769 $2,990 $(15,918) $486,841
The change in net unrealized gains (losses) on available-for-sale securities recorded in other comprehensive
income includes unrealized gains (losses) that arose from changes in market value of specifically identified
securities that were held during the period and gains (losses) that were previously unrealized, but have been
recognized in current period net income due to sales or maturities of available-for-sale securities. This
reclassification has no effect on total comprehensive income or stockholders’ equity and was immaterial for all
periods presented.
The average remaining maturities of the Company’s short-term and long-term available-for-sale investments
at December 31, 2009 were approximately six months and 10 years, respectively.
Realized Losses on Available-for-sale Investments
For the years ended December 31, 2009 and 2008, the Company had realized gains on the sales of
available-for-sale investments of $0.6 million and $0.4 million, respectively. For the years ended December 31,
2009 and 2008, the Company had realized losses on the sales of available-for-sale investments of $0.1 million in
both periods. In 2008, the Company also recognized an other-than-temporary loss on available-for-sale
investments of approximately $1.1 million related to an investment in the Company’s portfolio due to the
bankruptcy of Lehman Brothers Holdings. All realized gains and losses related to the sales of available-for-sale
investments are included in other income (expense), net, in the accompanying consolidated statements of income.
The Company continues to monitor its overall investment portfolio and if the credit ratings of the issuers of
its investments deteriorate or if the issuers experience financial difficulty, including bankruptcy, the Company
F-20