Citrix 2009 Annual Report Download - page 105

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Under the 2005 ESPP, all full-time and certain part-time employees of the Company are eligible 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 in the
2005 ESPP, would own shares representing 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, 2009, 1,544,040 shares had been issued under the 2005
ESPP. The Company recorded stock-based compensation costs related to the 2005 ESPP of $2.2 million, $2.3
million and $0.8 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Expense Information under FASB’s Authoritative Guidance
As required by the authoritative guidance, the Company estimates forfeitures of employee stock options and
recognizes compensation costs only for those awards expected to vest. Forfeiture rates are determined based on
historical experience. The Company also considers whether there have been any significant changes in facts and
circumstances that would affect its forfeiture rate quarterly. Estimated forfeitures are adjusted to actual forfeiture
experience as needed. The Company recorded stock-based compensation costs, related deferred tax assets and tax
benefits of $111.4 million, $32.8 million and $36.2 million, respectively, in 2009, $124.6 million, $34.9 million
and $16.5 million, respectively, in 2008 and $65.5 million, $15.6 million and $26.6 million, respectively, in
2007.
The detail of the total stock-based compensation recognized by income statement classification is as follows
(in thousands):
Income Statement Classifications 2009 2008 2007
Cost of services revenues ........................................... $ 1,868 $ 1,852 $ 1,479
Research and development .......................................... 55,012 63,737 21,719
Sales, marketing and services ....................................... 32,244 32,787 24,365
General and administrative ......................................... 22,295 26,239 17,928
Total ....................................................... $111,419 $124,615 $65,491
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