Citrix 2009 Annual Report Download - page 112

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rental expense for the years ended December 31, 2009, 2008 and 2007 totaled approximately $48.7 million,
$43.5 million and $33.5 million, respectively. Sublease income for the years ended December 31, 2009, 2008 and
2007 was approximately $0.1 million, $0.8 million and $0.8 million, respectively. Lease commitments under
non-cancelable operating leases with initial or remaining terms in excess of one year and sublease income
associated with non-cancelable subleases, are as follows:
Operating
Leases
Sublease
Income
(In thousands)
Years ending December 31,
2010 ................................................................. $ 48,123 $ 369
2011 ................................................................. 46,578 336
2012 ................................................................. 40,318 241
2013 ................................................................. 31,874 198
2014 ................................................................. 29,553 —
Thereafter ............................................................. 54,846 —
$251,292 $1,144
In 2008, the Company entered into a lease to acquire additional office space in Santa Clara, CA. The rental
commencement date will not begin until 2011 and the pricing for the lease will not be finalized until a future
date. Accordingly, the future payment obligations related to this lease are not included in the table above.
Office Leases
The Company has an operating lease obligation related to a property that is not fully utilized that continues
to 2018 with a total remaining obligation at December 31, 2009 of approximately $4.9 million, of which $1.0
million was accrued as of December 31, 2009, and is reflected in accrued expenses and other liabilities in the
accompanying consolidated balance sheets. In calculating this accrual, the Company made estimates, based on
market information, including the estimated vacancy periods and sublease rates and opportunities. The Company
periodically re-evaluates its estimates related to this vacant facility.
Legal Matters
Due to the nature of the Company’s business, it is subject to patent infringement claims, including current
suits against it or one or more of its wholly-owned subsidiaries alleging infringement by various Citrix products
and services. The Company believes that it has meritorious defenses to the allegations made in its pending cases
and intends to vigorously defend these lawsuits; however, it is unable currently to determine the ultimate
outcome of these or similar matters or the potential exposure to loss, if any.
In addition, the Company is a defendant in various litigation matters generally arising out of the normal
course of business. Although it is difficult to predict the ultimate outcomes of these cases, the Company believes
that the ultimate outcomes will not materially affect its business, financial position, results of operations or cash
flows.
Guarantees
The authoritative guidance requires certain guarantees to be recorded at fair value and requires a guarantor
to make disclosures, even when the likelihood of making any payments under the guarantee is remote. For those
guarantees and indemnifications that do not fall within the initial recognition and measurement requirements of
F-32