Citrix 2012 Annual Report Download - page 101

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-35
Also, in June 2012, the Company closed its IRS examination for the 2006 through 2008 tax years. The Company
recognized a net tax benefit of $30.0 million in 2012 related to the closing of tax audits with the IRS for the 2006 through 2008
tax years, the impact of the closure on subsequent years and the reduction of the Company's uncertain tax positions for the
closed tax years.
The federal research and development credit expired on December 31, 2011. On January 2, 2013, the American Taxpayer
Relief Act of 2012 was signed into law. Under this act, the federal research and development credit was retroactively extended
for amounts paid or incurred after December 31, 2011 and before January 1, 2014. The effects of these changes in the tax law
will result in net tax benefits of approximately $9.4 million, which will be recognized in the first quarter of 2013, which is the
quarter in which the law was enacted.
11. SEGMENT INFORMATION
The Company’s revenues are derived from its Enterprise division products, which primarily include its 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 segments.
The Company does not engage in intercompany revenue transfers between segments. The Company’s chief operating
decision maker (“CODM”) evaluates the Company’s performance based primarily on profitability from its Enterprise division
products and Online Services division products. Segment profit for each segment includes certain research and development,
sales, marketing, general and administrative expenses directly attributable to the segment as well as other corporate costs
allocated to the segment and excludes certain expenses that are managed outside of the reportable segments. Costs excluded
from segment profit primarily consist of certain restructuring charges, stock-based compensation costs, amortization of product
related intangible assets, amortization of other intangible assets, net interest and other income (expense), net. Accounting
policies of the Company’s segments are the same as its consolidated accounting policies. In the first quarter of 2012, the
Company transferred the business acquired in its acquisition of ShareFile from its Enterprise division to its Online Services
division.
International revenues (sales outside of the United States) accounted for approximately 45.3%, 43.2% and 42.7% of the
Company’s net revenues for the year ended December 31, 2012, 2011, and 2010, respectively. Net revenues and segment profit
for 2012, 2011 and 2010 classified by the Company’s reportable segments, are presented below:
2012 2011 2010
(In thousands)
Net revenues:
Enterprise division $ 2,074,800 $ 1,778,646 $ 1,514,045
Online Services division 511,323 427,746 360,617
Consolidated $ 2,586,123 $ 2,206,392 $ 1,874,662
Segment profit:
Enterprise division $ 562,794 $ 504,883 $ 403,722
Online Services division 92,498 76,147 86,506
Unallocated expenses (1):
Amortization of intangible assets (114,574)(71,131)(64,783)
Restructuring —(24)(971)
Net interest and other income 19,451 13,531 13,104
Stock-based compensation (149,940)(92,909)(103,758)
Consolidated income before income taxes $ 410,229 $ 430,497 $ 333,820
(1) Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments.
Identifiable assets classified by the Company’s reportable segments are shown below. Long-lived assets consist of
property and equipment, net, and are shown below.