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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-32
Guarantees
The authoritative guidance requires certain guarantees to be recorded at fair value and requires a guarantor to make
disclosures, even when the likelihood of making any payments under the guarantee is remote. For those guarantees and
indemnifications that do not fall within the initial recognition and measurement requirements of the authoritative guidance, the
Company must continue to monitor the conditions that are subject to the guarantees and indemnifications, as required under
existing generally accepted accounting principles, to identify if a loss has been incurred. If the Company determines that it is
probable that a loss has been incurred, any such estimable loss would be recognized. The initial recognition and measurement
requirements do not apply to the provisions contained in the majority of the Company’s software license agreements that
indemnify licensees of the Company’s software from damages and costs resulting from claims alleging that the Company’s
software infringes the intellectual property rights of a third party. The Company has not made material payments pursuant to
these provisions as of December 31, 2012. The Company has not identified any losses that are probable under these provisions
and, accordingly, the Company 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 $17.4 million. The Company also has
contingent obligations to purchase inventory for the fiscal year ended December 31, 2013, which are based on amount of usage,
of approximately $7.9 million. The Company does not have any purchase obligations beyond December 31, 2013.
10. INCOME TAXES
The United States and foreign components of income before income taxes are as follows:
2012 2011 2010
(In thousands)
United States $ 200,802 $ 176,824 $ 124,337
Foreign 209,427 253,673 209,483
Total $ 410,229 $ 430,497 $ 333,820
The components of the provision for income taxes are as follows:
2012 2011 2010
(In thousands)
Current:
Federal $ 81,019 $ 50,022 $ 69,540
Foreign 30,059 29,169 25,467
State 17,395 11,905 9,048
Total current 128,473 91,096 104,055
Deferred:
Federal (64,960)(8,631)(20,476)
Foreign 1,409 (4,792)(5,349)
State (7,240)(2,806)(20,851)
Total deferred (70,791)(16,229)(46,676)
Total provision $ 57,682 $ 74,867 $ 57,379