Citrix 2009 Annual Report Download - page 68

liability value of $4.3 million. Based on a hypothetical 10% appreciation of the U.S. dollar from December 31,
2009 market rates, the fair value of our foreign currency forward contracts would decrease by $19.7 million.
Conversely, a hypothetical 10% depreciation of the U.S. dollar from December 31, 2009 market rates would
increase the fair value of our foreign currency forward contracts by $19.7 million, resulting in a net asset
position. In these hypothetical movements, foreign operating costs would move in the opposite direction. This
calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar. In
addition to the direct effects of changes in exchange rates quantified above, changes in exchange rates could also
change the dollar value of sales and affect the volume of sales as the prices of our competitors’ products become
more or less attractive. We do not anticipate any material adverse impact to our consolidated financial position,
results of operations, or cash flows as a result of these foreign exchange forward contracts.
Exposure to Interest Rates
We have interest rate exposures resulting from our interest-based available-for-sale and trading securities.
We maintain available-for-sale and trading investments in debt securities and we limit the amount of credit
exposure to any one issuer or type of instrument. The securities in our investment portfolio are not leveraged.
The securities classified as available-for-sale and trading are subject to interest rate risk. The modeling technique
used measures the change in fair values arising from an immediate hypothetical shift in market interest rates and
assumes that ending fair values include principal plus accrued interest and reinvestment income. If market
interest rates were to increase by 100 basis points from December 31, 2009 and 2008 levels, the fair value of the
available-for-sale portfolio would decline by approximately $8.6 million and $3.2 million, respectively. If market
interest rates were to decrease by 100 basis points from December 31, 2009 and 2008 levels, the fair value of the
available-for-sale portfolio would increase by approximately $3.8 million and $3.2 million, respectively. These
amounts are determined by considering the impact of the hypothetical interest rate movements on our
available-for-sale and trading investment portfolios. This analysis does not consider the effect of credit risk as a
result of the changes in overall economic activity that could exist in such an environment.
During 2005, we entered into the Credit Facility, as amended in 2006, or the Amended Credit Facility.
Accordingly, we could be exposed to market risk from changes in interest rates on our long-term debt. This
exposure relates to our $100.0 million Amended Credit Facility. Borrowings under the Amended Credit Facility
currently bear interest at variable rates based on LIBOR plus 0.32% and adjusts in the future in the range of
0.32% to 0.80% above LIBOR based on our level of total debt and our adjusted earnings before interest, taxes,
depreciation and amortization, or EBITDA. A hypothetical 1% interest rate change would not have any current
impact on our results of operations as we had no amounts outstanding under the Amended Credit Facility as of
December 31, 2009.
ITEM 8. FINANCIAL STATEMENTS AND SCHEDULES
Our consolidated financial statements and related financial statement schedule, together with the report of
independent registered public accounting firm, appear at pages F-1 through F-45 of this Annual Report on Form
10-K for the year ended December 31, 2009.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There have been no changes in or disagreements with our independent registered public accountants on
accounting or financial disclosure matters during our two most recent fiscal years.
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