Citrix 2012 Annual Report Download - page 99

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-33
The following table presents the breakdown between current and non-current net deferred tax assets:
December 31,
2012 2011
(In thousands)
Deferred tax assets - current $ 36,846 $ 44,916
Deferred tax liabilities - current (876)(119)
Deferred tax assets- non current 43,097 67,479
Deferred tax liabilities - non current (19,756)(18,948)
Total net deferred tax assets $ 59,311 $ 93,328
The significant components of the Company’s deferred tax assets and liabilities consisted of the following:
December 31,
2012 2011
(In thousands)
Deferred tax assets:
Accruals and reserves $ 36,128 $ 31,191
Deferred revenue 41,820 25,365
Tax credits 43,657 60,331
Net operating losses 89,856 61,205
Other 8,452 8,580
Stock option compensation 54,852 38,834
Valuation allowance (18,185)(9,235)
Total deferred tax assets 256,580 216,271
Deferred tax liabilities:
Depreciation and amortization (40,159)(27,648)
Acquired technology (140,017)(78,456)
Prepaid expenses (17,093)(16,839)
Total deferred tax liabilities (197,269)(122,943)
Total net deferred tax assets $ 59,311 $ 93,328
The authoritative guidance requires a valuation allowance to reduce the deferred tax assets reported if it is not more likely
than not that some portion or all of the deferred tax assets will be realized. At December 31, 2012, the Company determined
that an $18.2 million valuation allowance relating to deferred tax assets for net operating losses and tax credits was necessary.
The Company does not expect to remit earnings from its foreign subsidiaries. Undistributed earnings of the Company’s
foreign subsidiaries amounted to approximately $1,525.0 million at December 31, 2012. Those earnings are considered to be
permanently reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution
of those earnings in the form of dividends or otherwise, the Company could be subject to both U.S. income taxes (subject to an
adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. The Company maintains certain
strategic management and operational activities in overseas subsidiaries and its foreign earnings are taxed at rates that are
generally lower than in the United States. The Company does not expect to remit earnings from its foreign subsidiaries.
At December 31, 2012, the Company had $216.0 million of remaining net operating loss carry forwards in the United
States from acquisitions. The utilization of these net operating loss carry forwards are limited in any one year pursuant to
Internal Revenue Code Section 382 and begin to expire in 2019. At December 31, 2012, the Company had $28.0 million of
remaining net operating loss carry forwards in foreign jurisdictions that do not expire.
At December 31, 2012, the Company had research and development tax credit carry forwards of approximately $47.9
million that begin to expire in 2024.