Citrix 2014 Annual Report Download - page 36

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30
compensation program. The complaint seeks the recovery of monetary damages and other relief for damages allegedly caused
to Citrix. We believe that our directors and Citrix have meritorious defenses to these allegations and that it is not reasonably
possible that the ultimate outcome of this suit will materially and adversely affect our business, financial condition, results of
operations or cash flows.
In April 2008, SSL Services, LLC, or SSL Services, filed a suit for patent infringement against us in the United States
District Court for the Eastern District of Texas, or the SSL Matter. SSL Services alleged that we infringed U.S. Patent Nos.
6,061,796, or the '796 patent, and 6,158,011, or the '011 patent. We denied infringement and asserted that the patents-in-suit
were invalid. A jury trial was held on SSL Services' claims, and in June 2012, the jury found that we did not infringe the '796
patent and found that we willfully infringe the '011 patent through the sale and use of certain products. The jury awarded SSL
Services $10.0 million. In September 2012, the court issued a final judgment confirming the jury award of $10.0 million in
damages and added $5.0 million in enhanced damages and approximately $5.0 million in prejudgment interest on the damages
award. In October 2014, the Federal Circuit Court of Appeals affirmed the district court’s judgment in all material respects.
Accordingly, for the year ended December 31, 2014, we recorded an accrual for estimated damages and related interest of
approximately $20.7 million, which is included in Accrued expenses and other current liabilities in the accompanying
consolidated balance sheets and General and administrative expense in the accompanying consolidated statements of income.
In addition to the SSL Matter and due to the nature of our business, we are subject to patent infringement claims,
including current suits against us or one or more of our wholly-owned subsidiaries alleging infringement by various Citrix
products and services, or the Other Matters. We believe that we have meritorious defenses to the allegations made in our
pending cases and intend to vigorously defend these lawsuits; however, we are unable currently to determine the ultimate
outcome of these or similar matters or the potential exposure to loss, if any. In addition, we are a defendant in various litigation
matters generally arising out of the normal course of business. Although it is difficult to predict the ultimate outcomes of these
cases, we believe that it is not reasonably possible that the ultimate outcomes will materially and adversely affect our business,
financial position, results of operations or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.