Citrix 2009 Annual Report Download - page 89

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION
Citrix Systems, Inc. is a Delaware corporation founded on April 17, 1989. The Company designs, develops
and markets technology solutions that enable IT services to be securely delivered on demand – independent of
location, device or network – powered by the Company’s virtual computing infrastructure. The Company’s
customers achieve lower IT operating costs, increased information security, and greater business agility using the
Company’s technologies that virtualize business meetings, user support, client hardware, desktop operating
systems, applications, networks, server hardware and cloud services. The Company markets and licenses its
products directly to enterprise customers, over the web, and through systems integrators, or SIs, in addition to
indirectly through value-added resellers, or VARs, value-added distributors, or VADs, and original equipment
manufacturers, or OEMs.
2. SIGNIFICANT ACCOUNTING POLICIES
Consolidation Policy
The consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries
in the Americas, Europe, the Middle East and Africa (“EMEA”), Asia-Pacific and the Online Services division.
All significant transactions and balances between the Company and its subsidiaries have been eliminated in
consolidation.
Cash and Cash Equivalents
Cash and cash equivalents at December 31, 2009 and 2008 include marketable securities, which are
primarily money market funds, commercial paper, agency and government securities, municipal securities and
corporate securities with initial or remaining contractual maturities when purchased of three months or less.
Investments
Short-term and long-term investments at December 31, 2009 and 2008 primarily consist of agency
securities, corporate securities, municipal securities, government securities and commercial paper. Investments
classified as available-for-sale are stated at fair value with unrealized gains and losses, net of taxes, reported in
accumulated other comprehensive loss. Investments classified as trading securities are stated at fair value with
unrealized gains and losses reported in earnings. The Company classifies its available-for-sale investments as
current and non-current based on their actual remaining time to maturity. The Company does not recognize
changes in the fair value of its available-for-sale investments in income unless a decline in value is considered
other-than-temporary in accordance with the authoritative guidance. In April 2009, the Financial Accounting
Standards Board (the “FASB”) amended the existing guidance on determining whether an impairment for
investments in debt securities is other-than-temporary. The Company adopted the new guidance in the second
quarter of 2009 and there was no material impact to the Company’s results of operations upon adoption
The Company’s investment policy is designed to limit exposure to any one issuer depending on credit
quality. The Company uses information provided by third parties to adjust the carrying value of certain of its
investments to fair value at the end of each period. Fair values are based on valuation models that use market
quotes and, for certain investments, assumptions as to the creditworthiness of the entities issuing those
underlying instruments.
F-9