Citrix 2009 Annual Report Download - page 65

condition of our distributors or customers deteriorates, our operating results could be adversely affected.
At December 31, 2009, one distributor, Ingram Micro, accounted for 14% of our accounts receivable. At
December 31, 2008, no distributor or customer accounted for more than 10% of our accounts receivable. For
more information regarding significant customers see Note 12 to our consolidated financial statements included
in this Annual Report on Form 10-K for the year ended December 31, 2009.
Credit Facility
Effective on August 9, 2005, we entered into the Credit Facility with a group of financial institutions, or the
Lenders. Effective September 27, 2006, we entered into an amendment and restatement of the Credit Facility, or the
Amendment. The Amendment decreased the overall range of interest we will pay on amounts outstanding on the
Credit Facility and lowered the facility fee. In addition, the Amendment extended the term of the Credit Facility.
The Credit Facility, as amended, allows us to increase the revolving credit commitment up to a maximum aggregate
revolving credit commitment of $175.0 million. The Credit Facility, as amended, currently provides for a revolving
line of credit that will expire on September 27, 2011 in the aggregate amount of $100.0 million, subject to continued
covenant compliance. A portion of the revolving line of credit (1) in the aggregate amount of $25.0 million may be
available for issuances of letters of credit and (2) in the aggregate amount of $15.0 million may be available for
swing line loans. The Credit Facility, as amended, currently bears interest at the London Interbank Offered Rate, or
LIBOR, plus 0.32% and adjusts in the future in the range of 0.32% to 0.80% above LIBOR based on the level of our
total debt and our adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA. In addition,
we are required to pay an annual facility fee ranging from 0.08% to 0.20% based on the aggregate amount available
under the Credit Facility, as amended, and the level of our total debt and adjusted EBITDA. During the year ended
December 31, 2009, no funds were borrowed under the Credit Facility, as amended, and as of December 31, 2009
there were no amounts outstanding under the Credit Facility, as amended.
The Credit Facility, as amended, contains customary default provisions, and we must comply with various
financial and non-financial covenants. The financial covenants consist of a minimum interest coverage ratio and
a maximum consolidated leverage ratio. The primary non-financial covenants contain certain limits on our ability
to pay dividends, conduct certain mergers or acquisitions, make certain investments and loans, incur future
indebtedness or liens, alter our capital structure or sell stock or assets. As of December 31, 2009, we were in
compliance with all covenants of the Credit Facility.
Stock Repurchase Program
Our Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority
granted to us of $2.1 billion. We may use the approved dollar authority to repurchase stock at any time until the
approved amounts are exhausted. The objective of our 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.
We are authorized to make open market purchases of our common stock using general corporate funds.
Additionally, we 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 us 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, we 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
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