Citrix 2009 Annual Report Download - page 108

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
service. These units vest annually over a three year vest period in equal installments and, upon vesting, each
stock unit will represent the right to receive one share of the Company’s common stock.
In addition, during 2007, the Company awarded 25,000 non-vested stock units to a certain senior member of
management with performance goals related to building the executive management team. The performance goals
were met during 2007 and the award vests based on service at a rate of 33.33% on each anniversary date. The
Company also awards non-vested stock units to its non-employee directors annually. These units vest monthly in
equal installments based on service and, upon vesting, each stock unit represents the right to receive one share of
the Company’s common stock.
The Company assumed 159,342 non-vested stock units in conjunction with its 2007 Acquisitions, the
majority of which upon assumption were reset to vest over three years based on service at a rate of 33.3% on
each anniversary date. In addition, as part of its 2007 Acquisitions, the Company also granted 26,183 non-vested
stock units from its 2005 Plan, of which the majority vest based on service at a rate of 50% on the first
anniversary of the grant date and 50% on the second anniversary of the grant date.
The following table summarizes the Company’s non-vested stock unit activity for the year ended
December 31, 2009:
Number of
Shares
Weighted-
Average
Fair Value
at Grant Date
Non-vested stock units at December 31, 2008 ................................. 785,481 $34.67
Granted ............................................................... 423,152 20.72
Vested ................................................................ (338,747) 35.67
Forfeited .............................................................. (100,792) 32.11
Non-vested stock units at December 31, 2009 ................................. 769,094 26.84
For the years ended December 31, 2009, 2008 and 2007, the Company recognized stock-based
compensation expense of $13.1 million, $13.6 million and $7.0 million, respectively, related to non-vested stock
units. The fair value of the non-vested stock units released in 2009, 2008, 2007 was $12.1 million, $7.5 million
and $5.3 million, respectively. As of December 31, 2009, there was $11.2 million of total unrecognized
compensation cost related to non-vested stock units. That cost is expected to be recognized over a weighted-
average period of 1.61 years.
Long-term Incentive Awards
In May 2009, the Company granted certain senior level executives restricted stock units that vest based on
market and service conditions as part of a long-term incentive plan. The number of restricted stock units
underlying each award is determined at the end of a three-year performance period. In order to vest, the
Company’s stock price must appreciate by at least ten percent by the end of the performance period. If the
Company’s stock appreciation is at least ten percent, then the percentage of the restricted stock units that will
vest will be determined by comparing the Company’s stock price appreciation to the appreciation of the weighted
average of two stock market indices comprised of the Standard & Poor’s 500 Index (the “S&P 500”), which has
been assigned a two-thirds weighting, and the iShares Standard & Poor’s North America Technology Index (the
“IGM”), which has been assigned a one-third weighting. Based on the level of performance, up to 200% of the
award may vest. After vesting, the shares underlying the award will be issued at the earlier of six months and one
day after the participant’s separation from the Company or the participant’s death. In the event of a change in
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