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Annual Report 2012
The cloud company that enables mobile workstyles

Table of contents

  • Page 1
    Annual Report 2012 The cloud company that enables mobile workstyles

  • Page 2
    ... 2012 2,586,123 2011 2,206,392 2010 1,874,662 Net revenues Cost of net revenues: Cost of product license revenues Cost of services and maintenance revenues Amortization of product related intangible assets Total cost of net revenues Gross margin Operating expenses: Research and development Sales...

  • Page 3
    ...total addressable opportunity estimated to top $19 billion by 2015. No one is better positioned to take advantage of these trends than Citrix. We're driving at the intersection of mobile workstyles and cloud services where the rules governing IT are changing in our favor. Annual Report 2012 Citrix...

  • Page 4
    ... mix of devices and locations throughout the day, collaborating with others, and sharing information as they go. And companies want the ï¬,exibility to move at the speed of business. At Citrix, we're committed to helping customers make this transition - with cloud computing products that enable...

  • Page 5
    ... Creek Road Fort Lauderdale, Florida 33309 (Address of principal executive offices, including zip code) Registrant's Telephone Number, Including Area Code: (954) 267-3000 Securities registered pursuant to Section 12(b) of the Act: Common Stock, $.001 Par Value (Title of each class) The NASDAQ...

  • Page 6
    ... Schedules 59 Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions and Director Independence Principal Accounting Fees and Services...

  • Page 7
    ...-class desktop and application delivery services that can meet the needs of everything from basic call center environments to high-powered graphics workstations. In XenDesktop Enterprise and Platinum editions, customers also receive the industryleading Citrix XenApp to manage and mobilize Windows...

  • Page 8
    ...Networking products allow organizations to deliver these cloud services to any device with high performance, security and reliability. In July 2012, Citrix completed the acquisition of privately held Bytemobile, a leading provider of data and video optimization solutions for mobile network operators...

  • Page 9
    .... GoToMeeting users can easily host, attend or participate in online meetings from a Mac, PC, iPad, iPhone or Android device. GoToMeeting comes equipped with toll-based conference dial-in numbers, Voice over Internet Protocol (VoIP) and HDFaces® high-definition video conferencing. It features an...

  • Page 10
    ... and updates to the feature set of a product. Citrix software products eligible for participating in the Subscription Advantage program come with the first year of Subscription Advantage embedded into the cost of the product. Technical Support Services are specifically designed to address the...

  • Page 11
    ... meeting or remote access session). Citrix PSTN/VoIP Bridge is core technology that allows the seamless integration of Public Switched Telephone Network/Voice over Internet Protocol, or PSTN/VoIP, in our products that use our audio conferencing. HDFaces in GoToMeeting delivers high-definition video...

  • Page 12
    ...licenses for our products, along with annual subscriptions for software updates, technical support and SaaS. Perpetual licenses allow our customers to use the version of software initially purchased into perpetuity, while term-based licenses are limited to a specified period of time. Software update...

  • Page 13
    ... the full-range of Citrix products, solutions and services through our Citrix Partner Network. In addition, our Online Services division provides Enterprise SaaS offerings through direct corporate sales, Solution Advisors, and direct over-the-Web through our websites. In 2012, we continued to focus...

  • Page 14
    ...year ended December 31, 2012. Segment Revenue Our revenues are derived from our Enterprise division products, which primarily include Mobile and Desktop products, Networking and Cloud products and related license updates and maintenance, support and professional services and from our Online Services...

  • Page 15
    ... these processes and alternative approaches, including VMWare's View product and Oracle Corporation, or Oracle's, broad virtualization stack which is a feature of its operating system and management software. We believe XenDesktop gives Citrix a competitive advantage by providing customers multiple...

  • Page 16
    ... the largest market share for Web-based clientless remote support. This product includes a version purpose-built for individual users, consultants and small businesses, positioning Citrix as the only provider of remote support solutions for all segments of the market. In remote support, we compete...

  • Page 17
    ... 31, 2012. Available Information Our Internet address is http://www.citrix.com. We make available, free of charge, on or through our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and any amendments to those reports filed or...

  • Page 18
    ... sales channels, our partners and other strategic or technology relationships, financial information and results of operations for future periods, product and price competition, strategy and growth initiatives, seasonal factors, natural disasters, stock-based compensation, licensing and subscription...

  • Page 19
    ... experienced. Our Desktop Virtualization products are based on an alternative technology platform, the success of which will depend on organizations and customers perceiving technological and operational benefits and cost savings associated with adopting desktop virtualization solutions. Although we...

  • Page 20
    ... technical, sales and marketing and other resources than we do. For example, our ability to market our Mobile and Desktop products and other future product offerings and upgrades, could be affected by a competitor's packaging, licensing and pricing scheme for client devices, servers and applications...

  • Page 21
    ... In 2012, in an effort to increase the user audio quality experience of our Collaboration products, we registered Citrix Communications which allows us to control the audio function of our Collaboration products and competes with established local telephone companies by providing its own network and...

  • Page 22
    ... may fail to meet our customers' business requirements or be canceled before delivery, which likewise could adversely affect our revenue and operating results for any particular period. Similarly, our Bytemobile Smart Capacity products have a long and unpredictable sales cycle, and the timing of the...

  • Page 23
    ... and subscription renewal programs, including the timing of the release of enhancements, upgrades, maintenance releases, the term of the contract, discounts, promotions and other factors, could impact the timing of the recognition of revenue for our products, related enhancements and services and...

  • Page 24
    ... our operating expenses. Through our Citrix Partner Network and other programs, we are currently investing, and intend to continue to invest, significant resources to develop these channels, which could reduce our profits. For certain of our products we rely on third-party suppliers and contract...

  • Page 25
    ... components, or our inability to obtain products or components from alternate sources at acceptable prices in a timely manner, could impair our ability to meet the demand of our customers and adversely affect our business, financial condition or results of operations. We are exposed to fluctuations...

  • Page 26
    ... and policies; difficulties managing or integrating an acquired company's technologies or lines of business; potential difficulties in completing projects associated with purchased in-process research and development; entry into markets in which we have no or limited direct prior experience...

  • Page 27
    ... our Mobile and Desktop and Networking and Cloud products, and related technical services and expansion of our Online Services division's Collaboration and Data products, through product development and acquisitions; an increase in patent infringement litigation commenced by non-practicing entities...

  • Page 28
    ... products or meet customer requirements for innovation, quality and price of cloud products. We rely to a significant degree on an informal community of independent open source software programmers to develop and enhance the Xen hypervisor, which is the heart of the XenServer virtualization product...

  • Page 29
    ... systems and website. Significant portions of our computer equipment, intellectual property resources and personnel, including critical resources dedicated to research and development and administrative support functions are presently located at our corporate headquarters in Fort Lauderdale, Florida...

  • Page 30
    ... affect the market price of our stock include actual or anticipated variations in operating and financial results; analyst reports or recommendations; rumors, announcements, or press articles regarding our or our competitors' operations, management, organization, financial condition, or financial...

  • Page 31
    ... segment as of December 31, 2012: Enterprise division Online Services division (square footage) Americas EMEA Asia-Pacific Total 829,271 369,666 484,678 1,683,615 407,367 84,969 2,724 495,060 In addition, we own land and buildings in Fort Lauderdale, Florida with approximately 313,385 square...

  • Page 32
    ... normal course of business. Although it is difficult to predict the ultimate outcomes of these cases, we believe that the ultimate outcomes will not materially affect our business, financial position, results of operations or cash flows. On April 11, 2008, SSL Services, LLC, or SSL Services, filed...

  • Page 33
    ...'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Price Range of Common Stock and Dividend Policy Our common stock is currently traded on The NASDAQ Global Select Market under the symbol CTXS. The following table sets forth the high and low sales prices for our...

  • Page 34
    ... in this Annual Report on Form 10-K for the year ended December 31, 2012, we revised our methodology for allocating certain information technology, or IT, support costs to more closely align these costs to the employees directly utilizing the related assets and services and to reflect how management...

  • Page 35
    ...a high quality user experience. We plan to sustain the long-term growth of our businesses around the world by expanding our go-to-market reach and direct customer touch through hiring additional enterprise account managers and expanding consulting and technical support capacity; investing in product...

  • Page 36
    ..., ShareFile, makes it easy for businesses of all sizes to securely store, sync and share business documents and files, both inside and outside the company. ShareFile's centralized cloud storage capability also allows users to share files across multiple devices and access them from any location...

  • Page 37
    .... Our Software as a service revenue increased due to increased sales of our Collaboration products, led by GoToMeeting and our Data Sharing product, ShareFile. The increase in License updates and maintenance revenue was primarily due to an increase in renewals and sales of our Subscription Advantage...

  • Page 38
    ...Enterprise division. Transaction costs associated with the acquisitions were approximately $0.4 million, all of which we expensed during the year ended December 31, 2012 and are included in General and administrative expense in the accompanying consolidated statements of income in this Annual Report...

  • Page 39
    ... products for mobile device management, with our Citrix CloudGatewayâ„¢ products for managing mobile apps and data. The total preliminary consideration for this transaction was approximately $324.2 million, net of $2.9 million of cash acquired, and was paid in cash. Transaction costs associated...

  • Page 40
    ... revenue upon shipment for our appliance sales. For maintenance, technical support, product training and consulting services, we require a purchase order and an executed agreement. For SaaS, we generally require the customer or the reseller to electronically accept the terms of an online services...

  • Page 41
    ... authoritative guidance, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service or performance period, which is the vesting period. We currently use the Black-Scholes option pricing model to determine...

  • Page 42
    ... in order to model the stock price movements. The volatilities used were calculated over the most recent 2.75 year period, which was the remaining term of the performance period at the date of grant. The risk free interest rate was based on the implied yield available on U.S. Treasury zero-coupon...

  • Page 43
    ...be until maturity. We also consider specific adverse conditions related to the financial health of and business outlook for the issuer, including industry and sector performance, rating agency actions and changes in credit default swap levels. For our cost method investments, our quarterly review of...

  • Page 44
    ... Our revenues are derived from sales of our Enterprise division products, which include our Mobile and Desktop products, Networking and Cloud products and related license updates and maintenance and from sales of our Online Services division's Collaboration and Data products. The Enterprise division...

  • Page 45
    ... in which we operate as part of the process of preparing our consolidated financial statements. At December 31, 2012, we had approximately $59.3 million in net deferred tax assets. The authoritative guidance requires a valuation allowance to reduce the deferred tax assets reported if, based on the...

  • Page 46
    ...Segment Net revenues of our Enterprise division include Product and licenses, License updates and maintenance, and Professional services. Product and licenses primarily represent fees related to the licensing of the following major products: • • Mobile and Desktop (formerly Desktop Solutions) is...

  • Page 47
    ... of: • Our Subscription Advantage program, an annual renewable program that provides subscribers with automatic delivery of unspecified software upgrades, enhancements and maintenance releases when and if they become available during the term of the subscription, for which fees are recognized...

  • Page 48
    ... year ended December 31, 2012. Segment Revenues Our revenues are derived from sales of Enterprise division products which primarily include Mobility and Desktop products, Networking and Cloud products and related License updates and maintenance and Professional services and from our Online Services...

  • Page 49
    ... other software products. We currently are targeting cost of product and license revenues will increase when comparing the first quarter of 2013 to the first quarter of 2012 consistent with the targeted increase in sales of our hardware products. Cost of services and maintenance revenues increased...

  • Page 50
    ...stock-based compensation expense due to stock-based awards related to certain acquisitions that fully vested. The increase primarily relates to the strategic hiring of employees in research and development as discussed above in our Executive Summary. Sales, Marketing and Services Expenses Year Ended...

  • Page 51
    ... technologies and in Sales, marketing and services as we continue to focus on hiring to expand our go-to-market capacity and customer direct touch, as well as increasing consulting and technical support capacity. Amortization of Other Intangible Assets Year Ended December 31, 2012 2011 2010 (In...

  • Page 52
    ... our products and services through our foreign headquarters in Switzerland are currently taxed at lower income tax rates than earnings from our U.S. operations. The federal research and development credit expired on December 31, 2011. On January 2, 2013, the American Taxpayer Relief Act of 2012 was...

  • Page 53
    ... compensation plans of $108.4 million, partially offset by cash paid for acquisitions, net of cash acquired, of $487.2 million, expenditures made on stock repurchases of $251.0 million, purchases of property and equipment of $123.0 million and purchases of cost method investments and product-related...

  • Page 54
    ... the reporting entity to develop its own assumptions. Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent pricing service, or the Service, which uses quoted market prices for identical or comparable instruments rather than direct observations...

  • Page 55
    ... open market purchases or pursuant to a Rule 10b5-1 plan. Additionally, from time to time, we may enter 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...

  • Page 56
    ... and the pricing for the lease will not be finalized until a future date. Accordingly, the future payment obligations related to this lease are not included in the table above. Purchase obligations represent non-cancelable commitments to purchase inventory ordered before year-end of approximately...

  • Page 57
    Off-Balance Sheet Arrangements We do not have any special purpose entities or off-balance sheet financing arrangements. 53

  • Page 58
    ... STATEMENTS AND SUPPLEMENTARY DATA 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-38 of this Annual Report on Form 10-K for the year ended December 31, 2012. 54

  • Page 59
    ... registered public accountants on accounting or financial disclosure matters during our two most recent fiscal years. ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures As of December 31, 2012, our management, with the participation of our President and Chief Executive...

  • Page 60
    ... income, equity, and cash flows for each of the three years in the period ended December 31, 2012 of Citrix Systems, Inc. and our report dated February 21, 2013 expressed an unqualified opinion thereon. /s/ Ernst & Young LLP Certified Public Accountants Boca Raton, Florida February 21, 2013 56

  • Page 61
    ..., Customer Experience, each entered into a new trading plan in the fourth quarter of 2012 in accordance with Rule 10b5-1 and our policy governing transactions in our securities to exercise soon to expire stock options. We have also been advised that, in the fourth quarter of 2012, Murray Demo...

  • Page 62
    ... to the Company's definitive proxy statement pursuant to Regulation 14A, which proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company's fiscal year ended December 31, 2012. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The...

  • Page 63
    ... the Company's Registration Statement on Form S-1 (File No. 33-98542), as amended) Second Amended and Restated 1995 Non-Employee Director Stock Option Plan (incorporated by reference herein to Exhibit 10.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2007) Amended and...

  • Page 64
    ...eXtensible Business Reporting Language). The following materials from Citrix Systems, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2012... 32.1††101 Indicates a management contract or a compensatory plan, contract or arrangement. Filed herewith. Furnished herewith. As ...

  • Page 65
    ..., Chicago, IL 60604 and 3 World Financial Center, Suite 400, New York, NY 10281-1022. (c) Financial Statement Schedule. The Company hereby files as part of this Annual Report on Form 10-K for the year ended December 31, 2012 the consolidated financial statement schedule listed in Item 15(a)(2) above...

  • Page 66
    ... duly authorized, in Fort Lauderdale, Florida on the 21st day of February, 2013. CITRIX SYSTEMS, INC. By: /s/ MARK B. TEMPLETON Mark B. Templeton President and Chief Executive Officer POWER OF ATTORNEY AND SIGNATURES We, the undersigned officers and directors of Citrix Systems, Inc., hereby...

  • Page 67
    CITRIX SYSTEMS, INC. List of Financial Statements and Financial Statement Schedule The following consolidated financial statements of Citrix Systems, Inc. are included in Item 8: Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets - December 31, 2012 and 2011 ...

  • Page 68
    Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders of Citrix Systems, Inc. We have audited the accompanying consolidated balance sheets of Citrix Systems, Inc. as of December 31, 2012 and 2011, and the related consolidated statements of income, ...

  • Page 69
    CITRIX SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS December 31, 2012 December 31, 2011 (In thousands, except par value) Assets Current assets: Cash and cash equivalents Short-term investments - available-for-sale Accounts receivable, net of allowances of $6,448 and $3,925 at December 31, 2012 and ...

  • Page 70
    CITRIX SYSTEMS, INC. CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2012 2011 2010 (In thousands, except per share information) Revenues: Product and licenses Software as a service License updates and maintenance Professional services Total net revenues Cost of net revenues: Cost of ...

  • Page 71
    CITRIX SYSTEMS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2012 2011 (In thousands) 2010 Consolidated net income Other comprehensive income (loss): Change in foreign currency translation adjustment Available for sale securities: Change in net unrealized gains Less:...

  • Page 72
    ...-based compensation plans Stock-based compensation expense Common stock issued under employee stock purchase plan Tax benefit from employer stock plans Stock repurchases, net Restricted shares turned in for tax withholding Purchase of non-controlling interest Unrealized gain on forward contracts...

  • Page 73
    ... (Loss) Income $ (2,060 1,743 4,390 (702) (1,348) - 2,023 11,259) 1,636 (4,595) 634 - (11,561 5,164 160 2,457 (3,925) - (7,705) Common Stock in Treasury Shares Amount (82,222) $ (1,975,509 8,157) (434,839) (123) (6,298 90,502) - - - - (6,276) (182 96,960) - - - - (3,551) (270 100,781 2,416...

  • Page 74
    ... Purchases of cost method investments Cash paid for acquisitions, net of cash acquired Cash paid for licensing agreements and product related intangible assets Other Net cash used in investing activities Financing Activities Proceeds from issuance of common stock under stock-based compensation plans...

  • Page 75
    ...both private and public clouds, leveraging virtualization and networking technologies to deliver high-performance, elastic and cost-effective services for mobile workstyles. Citrix markets and licenses its products directly to enterprise customers, over the Web, and through systems integrators ("SIs...

  • Page 76
    ... 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 2012 and 2011, the...

  • Page 77
    ... product related technologies and patents and is reported as a Cost of net revenues in the accompanying consolidated statements of income. Amortization of other intangible assets includes amortization of customer relationships, trade names and covenants not to compete and is reported as an Operating...

  • Page 78
    ... appliances. Dedicated account management is available as an add-on to the program for a higher level of service. Software maintenance includes unlimited support with product version upgrades. Professional services revenues are comprised of fees from consulting services related to the implementation...

  • Page 79
    ... sales. For maintenance, technical support, product training and consulting services, the Company requires a purchase order and an executed agreement. For SaaS, the Company generally requires the customer or the reseller to electronically accept the terms of an online services agreement or execute...

  • Page 80
    ... majority of the selling prices fall within a reasonable range based on historical discounting trends for specific products and services. TPE of selling price is established by evaluating competitor products or services in stand-alone sales to similarly situated customers. However, as the Company...

  • Page 81
    ... at the time of product sales as a reduction of net revenue in the accompanying consolidated statements of income. The total costs the Company recognized related to advertising were approximately $137.5 million, $130.8 million and $123.0 million, during the years ended December 31, 2012, 2011 and...

  • Page 82
    ... product and service offerings. As a result, technical support, hardware maintenance and software updates revenues, which were previously presented in Technical services and License updates are classified together as License updates and maintenance. A corresponding change was made to rename Cost...

  • Page 83
    ...(1) Technical services revenue was comprised of hardware maintenance, consulting services, product training and certification and technical support. (2) License updates and maintenance is comprised of license updates, hardware and software maintenance and technical support. (3) Professional services...

  • Page 84
    .... ("Bytemobile"), a privately-held provider of data and video optimization solutions for mobile network operators. Bytemobile became part of the Company's Enterprise division and extends the Company's industry reach into the mobile and cloud markets. The total consideration for this transaction was...

  • Page 85
    ...Bytemobile Purchase Price Allocation 2012 Other Acquisitions Purchase Price Allocation Asset Life Asset Life Asset Life Current assets Other assets Property and equipment Deferred tax assets, non-current Intangible assets Goodwill Assets acquired Current liabilities assumed Long-term liabilities...

  • Page 86
    ... Company's Enterprise division, and in the first quarter of 2012 it was transferred to the Company's Online Services division. The total consideration for this transaction was approximately $54.0 million, net of $1.7 million of cash acquired, and was paid in cash. Transaction costs associated with...

  • Page 87
    ...device management, with its Citrix CloudGatewayâ„¢ for managing mobile apps and data. The total preliminary consideration for this transaction was approximately $324.2 million, net of $2.9 million of cash acquired, and was paid in cash. Transaction costs associated with the acquisition are currently...

  • Page 88
    CITRIX SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. INVESTMENTS Available-for-sale Investments Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands): December 31, 2012 Amortized Cost Gross Unrealized Gains Gross Unrealized ...

  • Page 89
    ... the reporting entity to develop its own assumptions. Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent pricing service (the "Service") which uses quoted market prices for identical or comparable instruments rather than direct observations...

  • Page 90
    ...Aa3. The Company values these securities based on pricing from the Service, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value, and...

  • Page 91
    ... Balance at December 31, 2012 $ 3,696 7,605 (5,460) (2,500) $ 3,341 Transfers out of Level 3 relate to certain of the Company's investments in convertible debt securities of early-stage entities that were classified as available-for-sale investments to cost method investments upon conversion to...

  • Page 92
    ... case of SARs in tandem with options, at the exercise price of the related option. Non-vested stock awards may be granted for such consideration in cash, other property or services, or a combination thereof, as determined by the Company's Compensation Committee of its Board of Directors. Stock-based...

  • Page 93
    ...the total stock-based compensation recognized by income statement classification is as follows (in thousands): Income Statement Classifications 2012 2011 2010 Cost of services revenues Research and development Sales, marketing and services General and administrative Total Stock Options $ $ 2,111...

  • Page 94
    ... in order to model the stock price movements. The volatilities used were calculated over the most recent 2.75 year period, which was the remaining term of the performance period at the date of grant. The risk free interest rate was based on the implied yield available on U.S. Treasury zero-coupon...

  • Page 95
    ... based on service and, upon vesting, each stock unit represents the right to receive one share of the Company's common stock. Performance Stock Units The Company may award senior level employees non-vested performance stock units granted under the 2005 Plan. For 2011, as in prior years, the number...

  • Page 96
    ... market purchases or pursuant to a Rule 10b5-1 plan. Additionally, from time to time, the Company may enter 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...

  • Page 97
    ... Income Years ending December 31, 2013 2014 2015 2016 2017 Thereafter Total $ $ 66,554 58,549 47,065 37,859 19,063 32,305 261,395 $ $ 193 - - - - - 193 The Company has an operating lease obligation through 2017 related to one property that is not utilized. At December 31, 2012, the total...

  • Page 98
    ... has not recorded a liability related to these indemnification provisions. Purchase Obligations The Company has agreements with suppliers to purchase inventory and estimates its non-cancelable obligations under these agreements for the fiscal year ended December 31, 2013 to be approximately $17...

  • Page 99
    CITRIX SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table presents the breakdown between current and non-current net deferred tax assets: December 31, 2012 (In thousands) 2011 Deferred tax assets - current Deferred tax liabilities - current Deferred tax assets- non current...

  • Page 100
    ... in June 2012 (the "Final Approval"). Under the terms of the settlement, the Company agreed to an assessment of income tax deficiencies in full settlement of all open claims under the RAR and resolved with finality for future years all of the transfer pricing issues raised in the RAR. Based on this...

  • Page 101
    ... Mobile and Desktop products, Networking and Cloud products and related license updates and maintenance and professional services and from its Online Services division's Collaboration and Data products. The Enterprise division and the Online Services division constitute the Company's two reportable...

  • Page 102
    ... (3) Mobile and Desktop revenues (formerly Desktop Solutions) are primarily comprised of sales from the Company's desktop virtualization products, XenDesktop and XenApp, and related license updates and maintenance and support. Networking and Cloud revenues (formerly Datacenter and Cloud Solutions...

  • Page 103
    ... revenues by segment and geographic location, for the years ended: December 31, 2012 2011 (In thousands) 2010 Net revenues: Enterprise division Americas EMEA Asia-Pacific Total Enterprise division revenues Online Services division Americas EMEA Asia-Pacific Total Online Services division revenues...

  • Page 104
    ... contracts $ 5,164 $ (11,259) Operating expenses $ (5,817) $ 8,475 There was no material ineffectiveness in the Company's foreign currency hedging program in the periods presented. For the Year ended December 31, (In thousands) Derivatives Not Designated as Hedging Instruments Location...

  • Page 105
    ... information): Year Ended December 31, 2012 2011 2010 Numerator: Net income attributable to Citrix Systems, Inc. stockholders $ Denominator: Denominator for basic earnings per share - weighted-average shares outstanding Effect of dilutive employee stock awards: Employee stock awards Denominator for...

  • Page 106
    ... thousands, except per share amounts) 2012 Net revenues Gross margin Income from operations Net income attributable to Citrix Systems, Inc. Net income per share attributable to Citrix Systems, Inc. stockholders - basic Net income per share attributable to Citrix Systems, Inc. stockholders - diluted...

  • Page 107
    CITRIX SYSTEMS, INC. SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Charged to Costs and Expenses Charged to Other Accounts (In thousands) Balance at End of Period Beginning of Period Deductions 2012 Deducted from asset accounts: Allowance for doubtful accounts $ 2,564 Allowance for returns 1,361 ...

  • Page 108
    ... the Company's Registration Statement on Form S-1 (File No. 33-98542), as amended) Second Amended and Restated 1995 Non-Employee Director Stock Option Plan (incorporated by reference herein to Exhibit 10.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2007) Amended and...

  • Page 109
    ...eXtensible Business Reporting Language). The following materials from Citrix Systems, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2012... 101†††Indicates a management contract or a compensatory plan, contract or arrangement. Filed herewith. Furnished herewith. ...

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  • Page 113
    ...GAAP financial measures used in this Annual Report reconciled to the most directly comparable GAAP financial measures. Twelve Months Ended December 31, 2012 GAAP earnings per share - diluted Add: stock-based compensation Add: amortization of product related intangible assets Add: amortization of...

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    ... acquire businesses on a predictable cycle. The Company, therefore, believes that the presentation of non-GAAP measures that adjust for the impact of amortization and certain stock-based compensation expenses and the related tax effects that are primarily related to acquisitions, provide investors...

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    ... Desktop Virtualization and Bytemobile Smart Capacity products; our ability to attract and retain, and further access, large enterprise customers; changes to our licensing or subscription renewal programs or bundling of our products; sales and renewals of our license updates and maintenance products...

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    ... INDEXED RETURNS Years Ending Company Name/Index Citrix Systems, Inc. S&P 500 Index Nasdaq Index Peer Group Base Period Dec 07 100...code of 7372. $200 $150 $100 $50 $0 2007 2008 2009 2010 2011 2012 Citrix Systems, Inc. Nasdaq Index S&P 500 Index Peer Group Annual Report 2012 Citrix Systems...

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    .... Mark B. Templeton President and Chief Executive Officer, Citrix Systems, Inc. Investor Relations Citrix's stock trades on the NASDAQ Global Select Market under the ticker symbol CTXS. The Citrix Annual Report and Form 10-K are available electronically at www.citrix.com/annualreport. For further...

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