Citrix 2013 Annual Report Download - page 38

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certain stock options which are exercisable for 12,017 shares of our common stock, for which the vesting period reset fully
upon the closing of the transaction.
During the second quarter of 2012, we acquired all of the issued and outstanding securities of two privately-held
companies for a total cash consideration of approximately $15.4 million, net of $0.2 million of cash acquired. The businesses
became part of our Enterprise and Service Provider division. Transaction costs associated with the acquisitions were
approximately $0.4 million, all of which we expensed during the year ended December 31, 2012 and are included in General
and administrative expense in the accompanying consolidated statements of income. In addition, in connection with the
acquisitions, we assumed non-vested stock units which were converted into the right to receive, in the aggregate, up to 66,459
shares of our common stock, for which the vesting period reset fully upon the closing of each respective transaction.
During the third quarter of 2012, we acquired all of the issued and outstanding securities of two privately-held companies
for a total cash consideration of approximately $5.3 million. One of the businesses became part of our Enterprise and Service
Provider division and the other became part of our SaaS division. Transaction costs associated with the acquisitions were
approximately $0.2 million, all of which we expensed during the year ended December 31, 2012 and are included in General
and administrative expense in the accompanying consolidated statements of income. In addition, in connection with the
acquisitions, we assumed non-vested stock units which were converted into the right to receive, in the aggregate, up to 13,487
shares of our common stock, for which the vesting period reset fully upon the closing of each respective transaction.
Subsequent Events
On January 8, 2014, we acquired all of the issued and outstanding securities of Framehawk. The Framehawk solution,
which optimizes the delivery of virtual desktops and applications to mobile devices, will be combined with Citrix HDX
technologies in the Citrix XenApp and XenDesktop products to deliver an unparalleled user experience over highly latent and
erratic mobile network conditions. The total preliminary consideration for this transaction was approximately $27.9 million, net
of $0.3 million of cash acquired, and was paid in cash. Transaction costs associated with the acquisition are currently estimated
at $0.1 million, all of which we expensed during the year ended December 31, 2013 and are included in General and
administrative expense in the accompanying consolidated statements of income.
Critical Accounting Policies and Estimates
Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial
statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The
preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent liabilities. We base these estimates on our historical
experience and on various other assumptions that we believe to be reasonable under the circumstances, and these estimates
form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other
sources. We periodically evaluate these estimates and judgments based on available information and experience. Actual results
could differ from our estimates under different assumptions and conditions. If actual results significantly differ from our
estimates, our financial condition and results of operations could be materially impacted.
We believe that the accounting policies described below are critical to understanding our business, results of operations
and financial condition because they involve more significant judgments and estimates used in the preparation of our
consolidated financial statements. An accounting policy is deemed to be critical if it requires an accounting estimate to be made
based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that
could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially
impact our consolidated financial statements. We have discussed the development, selection and application of our critical
accounting policies with the Audit Committee of our Board of Directors and our independent auditors, and our Audit
Committee has reviewed our disclosure relating to our critical accounting policies and estimates in this “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2013 describes the significant accounting policies and methods used in the preparation of our Consolidated
Financial Statements.