Citrix 2012 Annual Report Download - page 95

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-29
Service Based Stock Units
The Company also awards senior level and certain other employees non-vested stock units granted under the 2005 Plan
that vest based on service. The majority of these non-vested stock unit awards vest 33.33% on each anniversary subsequent to
the date of the award. The remaining awards vest 100% on the third anniversary of the grant date. Each non-vested stock unit,
upon vesting, represents the right to receive one share of the Company’s common stock. In addition, the Company awards non-
vested stock units to all of its non-employee directors. These awards vest monthly in 12 equal installments 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 of non-vested stock units underlying each award was determined following completion of
the one-year performance period applicable to the award and was based on achievement of a specific corporate financial
performance goal determined at the time of the award. If the performance goal was less than 90% attained, then no non-vested
stock units would have been issued pursuant to the authorized award. For performance at and above 90%, the number of non-
vested stock units issued was based on a graduated slope, with the maximum number of non-vested stock units issuable
pursuant to the award capped at 125% of the base number of non-vested stock units set forth in the award agreement. The
Company was required to estimate the attainment expected to be achieved related to the defined performance goals and the
number of non-vested stock units that were ultimately to be awarded in order to recognize compensation expense over the
vesting period. Upon attainment of the performance goal, the non-vested stock units vest 33.33% on each anniversary
subsequent to the date of the award. Each non-vested stock unit, upon vesting, represents the right to receive one share of the
Company’s common stock. If the performance goals were not met, no compensation cost would have been recognized in that
period and any previously recognized compensation cost would have been reversed. The Company did not grant any non-
vested performance stock units during 2012, and no performance periods are currently open for non-vested performance stock
units.
The following table summarizes the Company's non-vested stock unit activity for the year ended December 31, 2012:
Number of
Shares
Weighted-
Average
Fair Value
at Grant Date
Non-vested stock units at December 31, 2011 2,139,828 $ 64.05
Granted 2,465,988 78.72
Vested (838,978) 59.95
Forfeited (159,277) 72.20
Non-vested stock units at December 31, 2012 3,607,561 74.70
For the years ended December 31, 2012, 2011 and 2010, the Company recognized stock-based compensation expense of
$89.5 million, $40.0 million and $19.3 million, respectively, related to non-vested stock units. The fair value of the non-vested
stock units released in 2012, 2011, and 2010 was $50.3 million, $21.3 million and $11.6 million, respectively. As of
December 31, 2012, there was $195.5 million of total unrecognized compensation cost related to non-vested stock units. The
unrecognized cost is expected to be recognized over a weighted-average period of 2.12 years.
Benefit Plan
The Company maintains a 401(k) benefit plan allowing eligible U.S.-based employees to contribute up to 60% of their
annual compensation, limited to an annual maximum amount as set periodically by the IRS. The Company, at its discretion,
may contribute up to $0.50 for each dollar of employee contribution. The Company’s total matching contribution to an
employee is typically made at 3% of the employee’s annual compensation. The Company’s matching contributions were $10.5
million, $9.1 million and $8.0 million in 2012, 2011 and 2010, respectively. The Company’s contributions vest over a four-year
period at 25% per year.