Citrix 2009 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2009 Citrix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
control of the Company, the payout of any award is limited to a prorated portion of such award based upon a
performance assessment prior to the change in control date.
The market condition requirements are reflected in the grant date fair value of the award, and the
compensation expense for the award will be recognized assuming that the requisite service is rendered regardless
of whether the market conditions are achieved. The grant date fair value of the restricted stock unit awards was
determined through the use of a Monte Carlo simulation model, which utilizes multiple input variables that
determine the probability of satisfying the market condition requirements applicable to each award as follows:
Expected volatility factor ............................................................ 0.30 - 0.46
Risk free interest rate ............................................................... 1.23%
Expected term (in years) ............................................................ 2.67
Expected dividend yield ............................................................. 0%
The range of expected volatilities utilized was based on the historical volatilities of the Company’s Stock,
the S&P 500 and the IGM. The Company chose to use historical volatility to value these awards because
historical stock prices were used to develop the correlation coefficients between the Company and each of the
S&P 500 and the IGM in order to model stock price movements. The volatilities used were calculated over the
most recent 2.67 year period, which was the remaining term of the performance period at the date of grant. The
risk free interest rate was based on the implied yield available on U.S. Treasury zero-coupon issues with
remaining terms equivalent to the remaining performance period. The Company does not intend to pay dividends
on its common stock in the foreseeable future. Accordingly, the Company used a dividend yield of zero in its
model.
The following table summarizes the Company’s restricted stock unit awards for the year ended
December 31, 2009:
Number of
Shares
Weighted-
Average
Fair Value
at Grant Date
Restricted stock unit awards at December 31, 2008 ............................. — $ —
Granted ............................................................... 175,667 24.16
Restricted stock unit awards at December 31, 2009 ............................. 175,667 24.16
As of December 31, 2009, there was $3.4 million of total unrecognized compensation cost related to
restricted stock units. The unrecognized cost is expected to be recognized over 2.08 years.
Benefit Plan
The Company maintains a 401(k) benefit 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 for each dollar of employee
contribution. The Company’s total matching contribution to an employee is typically made at 3% of the
employee’s annual compensation. The Company’s matching contributions were $7.2 million, $7.3 million and
$5.9 million in 2009, 2008 and 2007, respectively. The Company’s contributions vest over a four-year period at
25% per year.
F-29