Citrix 2009 Annual Report Download - page 40

loans that are substantially backed by the federal government under the Federal Family Education Loan Program
through investment accounts managed by UBS Financial Services, Inc., or UBS. The market for municipal
auction rate securities in our portfolio began experiencing auction failures in 2008 and there have been no
successful auctions for the securities held in our portfolio since the failures began. In November 2008, we
formally accepted the terms of a settlement from UBS, or the Settlement. Upon accepting the terms of the
Settlement, we received an enforceable, non-transferable right, or the Put Option, that enables us to sell our
auction rate securities back to UBS during the period between June 30, 2010 and July 2, 2012 at par value. We
cannot provide any assurance, however, that UBS will have adequate financial resources to fulfill its obligation
to us upon our exercise of the Put Option. Based on our available cash and other investments, however, we do not
currently anticipate that the lack of liquidity caused by failed auctions related to these securities will have a
material adverse effect on our operating cash flows or will affect our ability to operate our business as usual.
ITEM 1B. UNRESOLVED STAFF COMMENTS
We have received no written comments regarding our periodic or current reports from the staff of the
Securities and Exchange Commission that were issued 180 days or more preceding the end of our 2009 fiscal
year that remain unresolved.
ITEM 2. PROPERTIES
We lease and sublease a total of 967,123 square feet of office space in the United States, Canada and Latin
America, which is comprised of 754,390 square feet related to our Americas segment and 212,733 square feet
related to our Online Services division. Included in this total square footage is 234,913 square feet relating to
properties surrounding our corporate headquarters located in Fort Lauderdale, Florida.
We lease and sublease a total of 449,732 square feet of office space in various other facilities outside of
North America and Latin America, 212,949 of which relates to our Europe, the Middle East and Africa, or
EMEA, segment, 3,773 square feet related to our Online Services division and 233,010 of which relates to our
Asia-Pacific segment. In addition, we own land and buildings in the United Kingdom with approximately 42,000
square feet of office space.
We believe that our existing facilities are adequate for our current needs. As additional space is needed in
the future, we believe that suitable space will be available in the required locations on commercially reasonable
terms.
ITEM 3. LEGAL PROCEEDINGS
Due to the nature of our business, we are subject to patent infringement claims, including current suits
against us or one or more of our wholly-owned subsidiaries alleging infringement by various Citrix products and
services. We believe that we have meritorious defenses to the allegations made in these pending suits and intend
to vigorously defend these lawsuits; however, we are unable currently to determine the ultimate outcome of these
or similar matters or the potential exposure to loss, if any.
Information with respect to this Item may be found in Notes 10 and 11 to our consolidated financial
statements, which information is incorporated into this Part II, Item 3 by reference.
In addition, we are 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, we believe that the ultimate
outcomes will not materially affect our business, financial position, results of operations or cash flows.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
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