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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-34
Derivatives not Designated as Hedges
A substantial portion of the Company’s overseas assets and liabilities are and will continue to be denominated in local
currencies. To protect against fluctuations in earnings caused by changes in currency exchange rates when remeasuring the
Company’s balance sheet, it utilizes foreign exchange forward contracts to hedge its exposure to this potential volatility.
These contracts are not designated for hedge accounting treatment under the authoritative guidance. Accordingly, changes
in the fair value of these contracts are recorded in Other (expense) income, net.
Fair Values of Derivative Instruments
Asset Derivatives Liability Derivatives
(In thousands)
December 31, 2013 December 31, 2012 December 31, 2013 December 31, 2012
Derivatives
Designated as
Hedging Instruments
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Foreign currency
forward contracts
Prepaid
expenses
and other
current
assets $4,559
Prepaid
expenses
and other
current
assets $4,157
Accrued
expenses
and other
current
liabilities $1,578
Accrued
expenses
and other
current
liabilities $4,162
Asset Derivatives Liability Derivatives
(In thousands)
December 31, 2013 December 31, 2012 December 31, 2013 December 31, 2012
Derivatives Not
Designated as
Hedging Instruments
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Balance Sheet
Location
Fair
Value
Foreign currency
forward contracts
Prepaid
expenses
and other
current
assets $393
Prepaid
expenses
and other
current
assets $448
Accrued
expenses
and other
current
liabilities $165
Accrued
expenses
and other
current
liabilities $52
The Effect of Derivative Instruments on Financial Performance
For the Year ended December 31,
(In thousands)
Derivatives in Cash Flow
Hedging Relationships
Amount of Gain
Recognized in Other
Comprehensive Income (Loss)
(Effective Portion)
Location of Loss Reclassified
from Accumulated Other
Comprehensive Income
(Loss) into Income
(Effective Portion)
Amount of Loss Reclassified from
Accumulated Other
Comprehensive Income (Loss)
(Effective Portion)
2013 2012 2013 2012
Foreign currency forward contracts $ 2,862 $ 5,164 Operating expenses $ (2,929) $ (5,817)
There was no material ineffectiveness in the Company’s foreign currency hedging program in the periods presented.
For the Year ended December 31,
(In thousands)
Derivatives Not Designated as Hedging
Instruments
Location of Gain
(Loss) Recognized in Income on
Derivative
Amount of Gain (Loss)
Recognized in Income on Derivative
2013 2012
Foreign currency forward contracts Other (expense) income, net $ 3,138 $ (1,341)