Citrix 2012 Annual Report Download - page 96

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-30
8. CAPITAL STOCK
Stock Repurchase Programs
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority
granted to the Company of $3.4 billion. The Company may use the approved dollar authority to repurchase stock at any time
until the approved amount is exhausted. The objective of the Company’s stock repurchase program is to improve stockholders’
returns. At December 31, 2012, approximately $335.6 million was available to repurchase common stock pursuant to the stock
repurchase program. All shares repurchased are recorded as treasury stock in the Company's consolidated balance sheets. A
portion of the funds used to repurchase stock over the course of the program was provided by proceeds from employee stock
option exercises and the related tax benefit.
The Company is authorized to make open market purchases of its common stock using general corporate funds through
open 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 that require the Company to make up-front payments to the
counterparty financial institution and result in the receipt of stock during or at the end of the term of the agreement or the
receipt of either stock or cash at the maturity of the agreement, depending on market conditions. The Company did not enter
into any structured stock repurchase agreements in 2012 or 2011.
During the year ended December 31, 2012, the Company expended approximately $251.0 million on open market
purchases, repurchasing 3,550,817 shares of outstanding common stock at an average price of $70.69.
During the year ended December 31, 2011, the Company expended approximately $424.8 million on open market
purchases, repurchasing 6,275,470 shares of outstanding common stock at an average price of $67.70.
During the year ended December 31, 2010, the Company expended approximately $434.8 million on open market
purchases, repurchasing 8,157,400 shares of outstanding common stock at an average price of $53.31. In addition, during the
third quarter of 2010, the Company made an up-front payment of $15.0 million to a financial institution related to a structured
stock repurchase agreement. At the maturity of the agreement in the fourth quarter of 2010, the Company received $16.1
million in cash, including premiums, and did not take delivery of any shares related to the agreement due to market conditions.
Shares for Tax Withholding
During the years ended December 31, 2012, 2011 and 2010, the Company withheld 269,745 shares, 182,203 shares and
123,489 shares, respectively, from stock units that vested. Amounts withheld to satisfy minimum tax withholding obligations
that arose on the vesting of stock units was $20.2 million, $13.3 million and $6.3 million, for 2012, 2011 and 2010,
respectively. These shares are reflected as treasury stock in the Company's consolidated balance sheets and statements of equity
and the related cash outlays reduce the Company's total stock repurchase authority.
Preferred Stock
The Company is authorized to issue 5,000,000 shares of preferred stock, $0.01 par value per share. No shares of such
preferred stock were issued and outstanding at December 31, 2012 or 2011.
9. COMMITMENTS AND CONTINGENCIES
Leases
The Company leases certain office space and equipment under various operating leases. In addition to rent, the leases
require the Company to pay for taxes, insurance, maintenance and other operating expenses. Certain of these leases contain
stated escalation clauses while others contain renewal options. The Company recognizes rent expense on a straight-line basis
over the term of the lease, excluding renewal periods, unless renewal of the lease is reasonably assured.
Rental expense for the years ended December 31, 2012, 2011 and 2010 totaled approximately $65.1 million, $56.5
million and $54.6 million, respectively. Sublease income for the years ended December 31, 2012, 2011 and 2010 was
approximately $0.2 million, $0.2 million and $0.2 million, respectively. Lease commitments under non-cancelable operating
leases with initial or remaining terms in excess of one year and sublease income associated with non-cancelable subleases, are
as follows: