Citrix 2009 Annual Report Download - page 110

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. CAPITAL STOCK
Stock Repurchase Programs
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase
authority granted to the Company of $2.1 billion. The Company may use the approved dollar authority to
repurchase stock at any time until the approved amount is exhausted. The objective of the Company’s stock
repurchase program is to improve stockholders’ returns. At December 31, 2009, approximately $160.3 million
was available to repurchase common stock pursuant to the stock repurchase program. All shares repurchased are
recorded as treasury stock. A portion of the funds used to repurchase stock over the course of the program was
provided by proceeds from employee stock option exercises and the related tax benefit.
The Company is authorized to make open market purchases of its common stock using general corporate
funds. Additionally, from time to time, the Company has entered into structured stock repurchase arrangements
with large financial institutions using general corporate funds in order to lower the average cost to acquire shares.
These programs include terms that require the Company to make up-front payments to the counterparty financial
institution and result in the receipt of stock during or at the end of the term of the agreement or the receipt of
either stock or cash at the maturity of the agreement, depending on market conditions.
During the year ended December 31, 2009, the Company expended approximately $214.9 million on open
market purchases, repurchasing 6,475,830 shares of outstanding common stock at an average price of $33.19. In
addition, as of December 31, 2009, the Company did not have any prepaid notional amounts remaining under its
structured stock repurchase programs and during the year it did not make any up-front payments to financial
institutions related to structured stock repurchase agreements.
During the year ended December 31, 2008, the Company took delivery of 4,406,757 shares at an average
price of $33.30 per share from its structured repurchase agreements and it expended approximately $197.6
million on open market purchases, repurchasing 6,451,591 shares of outstanding common stock at an average
price of $30.63. In addition, during the year the Company made up-front payments of $58.9 million to certain
financial institutions related to structured stock repurchase agreements.
During the year ended December 31, 2007, the Company took delivery of 1,655,089 shares at an average
price of $35.34 per share from its structured repurchase agreements and it expended approximately $150.0
million on open market purchases repurchasing 3,720,800 shares of outstanding common stock at an average
price of $40.31. In addition, during the year the Company made up-front payments of $110.0 million to certain
financial institutions related to structured stock repurchase agreements.
Restricted Shares for Tax Withholding
During the year ended December 31, 2009, the Company repurchased 46,732 shares totaling $1.8 million to
satisfy tax withholding obligations that arose on the vesting of shares of unvested stock units. These shares are
reflected as treasury stock in the Company’s consolidated balance sheet.
Preferred Stock
The Company is authorized to issue 5,000,000 shares of preferred stock, $0.01 par value per share. No
shares of such preferred stock were issued and outstanding at December 31, 2009 or 2008.
F-30