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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-10
quantitative impairment test was deemed necessary. See Note 3 for acquisition information and Note 11 for segment
information.
The following table presents the change in goodwill allocated to the Company’s reportable segments during 2014 and
2013 (in thousands):
Balance at
January 1,
2014 Additions Other
Balance at
December
31, 2014
Balance at
January 1,
2013 Additions Other
Balance at
December 31,
2013
Enterprise and
Service Provider
division $ 1,402,156 $ 30,317 $ 1,896 (2) $ 1,434,369 $ 1,158,580 $ 248,800 $ (5,224) (4) $ 1,402,156
Mobility Apps
division 366,793 10,694 (15,005) (3) 362,482 359,639 2,668 4,486 (3) 366,793
Consolidated $ 1,768,949 $ 41,011 (1) $(13,109) $ 1,796,851 $ 1,518,219 $ 251,468 (1) $ (738) $ 1,768,949
(1) Amount primarily relates to 2014 acquisitions. See Note 3 for more information regarding the Company’s acquisitions.
(2) Amount primarily relates to adjustments to purchase price allocations for certain 2013 Acquisitions.
(3) Amount primarily relates to foreign currency translation.
(4) Amount primarily relates to adjustments to purchase price allocations for certain 2012 Acquisitions.
Intangible Assets
The Company has intangible assets which were primarily acquired in conjunction with business combinations and
technology purchases. Intangible assets with finite lives are recorded at cost, less accumulated amortization. Amortization is
recognized on a straight-line basis over the estimated useful lives of the respective assets, generally three to seven years, except
for patents, which are amortized over the lesser of their remaining life or ten years. In accordance with the authoritative
guidance, the Company records acquired product related intangible assets at net realizable value and reviews this technology
for impairment on a periodic basis by comparing the estimated net realizable value to the unamortized cost of the technology.
In-process R&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment
thereafter. When in-process R&D projects are completed, the corresponding amount is reclassified as an amortizable intangible
asset and is amortized over the asset's estimated useful life.
Intangible assets consist of the following (in thousands):
December 31, 2014
Gross Carrying
Amount
Accumulated
Amortization
Weighted-
Average Life
(Years)
Product related intangible assets $ 618,336 $ 454,830 5.58
Other 492,960 265,749 7.58
Total $ 1,111,296 $ 720,579 6.47
December 31, 2013
Gross Carrying
Amount
Accumulated
Amortization
Weighted-
Average Life
(Years)
Product related intangible assets $ 677,509 $ 428,418 5.60
Other 482,918 222,414 7.52
Total $ 1,160,427 $ 650,832 6.38
Other intangible assets consist primarily of customer relationships, trade names, covenants not to compete and patents.
Amortization of product related intangible assets includes amortization of product related technologies and patents and is
reported as a Cost of net revenues in the accompanying consolidated statements of income. Amortization of other intangible
assets includes amortization of customer relationships, trade names and covenants not to compete and is reported as an
Operating expense in the accompanying consolidated statements of income.