Citrix 2013 Annual Report Download - page 97

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-33
(2) Networking and Cloud revenues are primarily comprised of sales from the Company’s cloud networking products, which
include NetScaler, CloudBridge and ByteMobile Smart Capacity, and the Company’s cloud platform products which
include XenServer, CloudPlatform and CloudPortal and related license updates and maintenance and support.
(3) Professional services revenues are primarily comprised of revenues from consulting services and product training and
certification services.
Revenues by Geographic Location
The following table presents revenues by segment and geographic location, for the years ended:
December 31,
2013 2012 2011
(In thousands)
Net revenues:
Enterprise and Service Provider division
Americas $ 1,263,673 $ 1,106,801 $ 993,062
EMEA 785,862 691,111 576,953
Asia-Pacific 286,027 276,888 208,631
Total Enterprise and Service Provider division revenues 2,335,562 2,074,800 1,778,646
SaaS division
Americas 488,307 433,263 367,260
EMEA 73,529 63,484 50,711
Asia-Pacific 21,036 14,576 9,775
Total SaaS division revenues 582,872 511,323 427,746
Total net revenues $ 2,918,434 $ 2,586,123 $ 2,206,392
Export revenue represents shipments of finished goods and services from the United States to international customers,
primarily in Latin America and Canada. Shipments from the United States to international customers for 2013, 2012 and 2011
were $215.3 million, $127.4 million and $106.0 million, respectively.
12. DERIVATIVE FINANCIAL INSTRUMENTS
Derivatives Designated as Hedging Instruments
As of December 31, 2013, the Company’s derivative assets and liabilities primarily resulted from cash flow hedges
related to its forecasted operating expenses transacted in local currencies. A substantial portion of the Company’s overseas
expenses are and will continue to be transacted in local currencies. To protect against fluctuations in operating expenses and the
volatility of future cash flows caused by changes in currency exchange rates, the Company has established a program that uses
foreign exchange forward contracts to hedge its exposure to these potential changes. The terms of these instruments, and the
hedged transactions to which they relate, generally do not exceed twelve months and the maximum term is eighteen months.
Generally, when the dollar is weak, foreign currency denominated expenses will be higher, and these higher expenses will
be partially offset by the gains realized from the Company’s hedging contracts. Conversely, if the dollar is strong, foreign
currency denominated expenses will be lower. These lower expenses will in turn be partially offset by the losses incurred from
the Company’s hedging contracts. The change in the derivative component in Accumulated other comprehensive income (loss)
includes unrealized gains or losses that arose from changes in market value of the effective portion of derivatives that were held
during the period, and gains or losses that were previously unrealized but have been recognized in the same line item as the
forecasted transaction in current period net income due to termination or maturities of derivative contracts. This reclassification
has no effect on total comprehensive income or equity.
The total cumulative unrealized gain on cash flow derivative instruments was $2.9 million and nil at December 31, 2013
and 2012, respectively, and is included in Accumulated other comprehensive income (loss) in the accompanying consolidated
balance sheets. The net unrealized gain as of December 31, 2013 is expected to be recognized in income over the next twelve
months at the same time the hedged items are recognized in income.