Citrix 2009 Annual Report Download - page 104

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses consist of the following:
December 31,
2009 2008
(In thousands)
Accrued compensation and employee benefits ................................... $ 80,090 $ 58,081
Accrued taxes ............................................................ 70,047 51,624
Other accrued expenses ..................................................... 71,361 85,845
$221,498 $195,550
7. EMPLOYEE STOCK-BASED COMPENSATION AND BENEFIT PLANS
Plans
The Company’s stock-based compensation program is a broad based, long-term retention program that is
intended to attract and reward talented employees and align stockholder and employee interests. As of
December 31, 2009, the Company had two stock-based compensation plans under which it was granting stock
options and non-vested stock units. The Company is currently granting stock-based awards from its 2005 Equity
Incentive Plan (as amended, the “2005 Plan”) and its 2005 Employee Stock Purchase Plan (the “2005 ESPP”). In
connection with certain of the Company’s acquisitions, the Company has assumed several plans from the
acquired companies. The Company’s Board of Directors has provided that no new awards will be granted under
the Company’s acquired stock plans. The Company’s superseded and expired stock plans include the Amended
and Restated 1995 Stock Plan, Second Amended and Restated 2000 Director and Officer Stock Option and
Incentive Plan, Second Amended and Restated 1995 Non-Employee Director Stock Option Plan and Third
Amended and Restated 1995 Employee Stock Purchase Plan. Awards previously granted under these plans and
still outstanding typically expire ten years from the date of grant and will continue to be subject to all the terms
and conditions of such plans, as applicable.
Under the terms of the 2005 Plan, the Company is authorized to grant incentive stock options (“ISOs”),
non-qualified stock options (“NSOs”), non-vested stock, non-vested stock units, stock appreciation rights
(“SARs”), and performance units and to make stock-based awards to full and part-time employees of the
Company and its subsidiaries or affiliates, where legally eligible to participate, as well as consultants and
non-employee directors of the Company. Currently, the 2005 Plan provides for the issuance of a maximum of
32,100,000 shares of common stock. Under the 2005 Plan, ISOs must be granted at exercise prices no less than
fair market value on the date of grant, except for ISOs granted to employees who own more than 10% of the
Company’s combined voting power, for which the exercise prices must be no less than 110% of the fair market
value at the date of grant. NSOs and SARs must be granted at no less than fair market value on the date of grant,
or in the case of SARs in tandem with options, at the exercise price of the related option. Non-vested stock
awards may be granted for such consideration in cash, other property or services, or a combination thereof, as
determined by the Company’s Compensation Committee of its Board of Directors. All stock-based awards, other
than the long-term incentive awards discussed below, are exercisable or issuable upon vesting. The Company’s
policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule
on a straight-line basis over the requisite service period for the entire award. As of December 31, 2009, there
were 35,537,423 shares of common stock reserved for issuance pursuant to the Company’s stock-based
compensation plans and the Company had authorization under its 2005 Plan to grant 12,614,567 additional stock-
based awards.
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