Citrix 2009 Annual Report Download - page 58

The restructuring program was substantially completed by the end of 2009. For more information see, “—
Overview” and Note 13 to our consolidated financial statements included in this Annual Report on Form 10-K
for the year ended December 31, 2009.
Amortization of Other Intangible Assets
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Amortization of the other intangible assets ...... $ 20,972 $ 22,724 $ 17,387 $ (1,752) $ 5,337
The decrease in amortization of other intangible assets during 2009 as compared to 2008 was not
significant. The increase in amortization of other intangible assets during 2008 as compared to 2007 was
primarily due to the full year impact of amortization related to other intangible assets acquired in our
XenSource Acquisition. As of December 31, 2009, we had unamortized other identified intangible assets with
estimable useful lives in the net amount of $68.9 million. For more information regarding our acquisitions see,
“— Overview” and Note 3 to our consolidated financial statements included in this Annual Report on
Form 10-K for the year ended December 31, 2009.
In-Process Research and Development
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
In-process research and development .......... $ — $ 1,140 $ 9,800 $ (1,140) $ (8,660)
In 2008, $1.1 million of the purchase price paid for our acquisition of Vapps was allocated to IPR&D, and
in 2007, $9.8 million of the purchase price paid for our 2007 Acquisitions was allocated to IPR&D. The amounts
allocated to IPR&D in our acquisitions had not yet reached technological feasibility, had no alternative future use
and were written-off at the date of the acquisitions in accordance with the authoritative guidance. For more
information regarding the acquisitions, see “— Overview” and Note 3 to our consolidated financial statements in
this Annual Report on Form 10-K for the year ended December 31, 2009.
Our efforts with respect to the acquired technologies currently consist of design and development that may
be required to support the release of the technologies into updated versions of existing service offerings and
potentially new product and service offerings related to the products acquired in our XenSource and Ardence
Acquisitions. We currently expect that we will successfully develop new products or services utilizing the
acquired in-process technology, but there can be no assurance that commercial viability of future product or
service offerings will be achieved. Furthermore, future developments in the software industry, changes in
technology, changes in other products and offerings or other developments may cause us to alter or abandon
product plans. Failure to complete the development of projects in their entirety, or in a timely manner, could have
a material adverse impact on our financial condition and results of operations.
The fair value assigned to IPR&D was based on valuations prepared using methodologies and valuation
techniques consistent with those used by independent appraisers. All fair values were determined using the
income approach, which includes estimating the revenue and expenses associated with a project’s sales cycle and
by estimating the amount of after-tax cash flows attributable to the projects. The future cash flows were
discounted to present value utilizing an appropriate risk-adjusted rate of return, which ranged from 20% to 36%.
The rate of return included a factor that takes into account the uncertainty surrounding the successful
development of the IPR&D.
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