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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
pronouncements that are currently within the scope of FASB ASC Subtopic 605-25. The consensus to Emerging
Issues Task Force (“EITF”) Issue No. 08–1, Revenue Arrangements with Multiple Deliverables, provides
accounting principles and application guidance on whether multiple deliverables exist, how the arrangement
should be separated, and the consideration allocated. This guidance eliminates the requirement to establish the
fair value of undelivered products and services and also eliminates the residual method of allocating arrangement
consideration. The new guidance provides for separate revenue recognition based upon management’s estimate
of the selling price for an undelivered item when there is no other means to determine the fair value of that
undelivered item. Under the previous guidance, if the fair value of all of the elements in the arrangement was not
determinable, then revenue was deferred until all of the items were delivered or fair value was determined. This
new approach is effective prospectively for revenue arrangements entered into or materially modified in fiscal
years beginning on or after June 15, 2010. The Company is currently evaluating the potential impact on its
financial position and results of operations.
In October 2009, the FASB issued ASU No. 2009–14, Certain Revenue Arrangements That Include
Software Elements, (“ASU 2009–14”). ASU 2009–14 amends existing revenue recognition accounting
pronouncements that are currently within the scope of FASB ASC Subtopic 985-605. The consensus to EITF
Issue No. 09–3, Certain Revenue Arrangements That Include Software Elements, modifies the authoritative
guidance for certain tangible products that include software and non-software components that function together
to deliver the essential functionality of the product to defer revenue recognition until the last deliverable meets
the VSOE threshold of ASC Subtopic 985, among other requirements, even though components of the
arrangement have been delivered or services have been provided. The new guidance allows that certain tangible
products that contain software and non-software deliverables that work together to deliver the product’s essential
functionality should be considered non-software deliverables for revenue recognition. This new approach is
effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on
or after June 15, 2010. The Company is currently evaluating this standard and the potential impact on its
financial position and results of operations.
17. SUBSEQUENT EVENTS
The Company has evaluated subsequent events through February 23, 2010, the date of the issuance of this
Annual Report on Form 10-K.
F-43