Citrix 2009 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2009 Citrix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accounts Receivable
The Company’s accounts receivable are due primarily from value-added resellers, distributors and end
customers. Collateral is not required. The Company also maintains allowances for doubtful accounts for
estimated losses resulting from the inability of the Company’s customers to make payments. The Company
periodically reviews these estimated allowances, including an analysis of the customers’ payment history and
creditworthiness. The allowance for doubtful accounts was $3.2 million and $7.1 million as of December 31,
2009 and 2008, respectively. If the financial condition of a significant distributor or customer were to deteriorate,
the Company’s operating results could be adversely affected. One distributor, Ingram Micro, accounted for 14%
of gross accounts receivable at December 31, 2009. No end-customer accounted for more than 10% of gross
accounts receivable at December 31, 2008.
Inventory
Inventories are stated at the lower of cost or market on an average cost method and primarily consist of
finished goods as of December 31, 2009 and 2008.
Property and Equipment
Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the
estimated useful lives of the assets, which is generally three years for computer equipment, software, office
equipment and furniture, the lesser of the lease term or five years for leasehold improvements, which is the
estimated useful life, seven years for the Company’s enterprise resource planning system and 40 years for
buildings.
During 2009 and 2008, the Company retired $42.4 million and $12.5 million, respectively, in property and
equipment that were no longer in use. At the time of retirement, the remaining net book value of these assets was
immaterial and no material asset retirement obligations were associated with them.
Property and equipment consist of the following:
December 31,
2009 2008
(In thousands)
Buildings ............................................................... $ 72,100 $ 72,100
Computer equipment ..................................................... 147,074 153,180
Software ............................................................... 155,350 129,114
Equipment and furniture ................................................... 30,208 30,474
Leasehold improvements .................................................. 90,625 86,593
Land .................................................................. 15,884 15,884
511,241 487,345
Less accumulated depreciation and amortization ................................ (263,538) (233,011)
$ 247,703 $ 254,334
Long-Lived Assets
The Company reviews for impairment of long-lived assets and certain identifiable intangible assets to be
held and used whenever events or changes in circumstances indicate that the carrying amount of such assets may
not be fully recoverable. Determination of recoverability is based on an estimate of undiscounted future cash
F-10