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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-18
4. INVESTMENTS
Available-for-sale Investments
Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands):
December 31, 2014 December 31, 2013
Description of the Securities
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Agency securities $ 637,474 $ 1,296 $ (457) $ 638,313 $ 453,922 $ 1,177 $ (349) $ 454,750
Corporate securities 795,255 232 (1,372) 794,115 643,360 947 (216) 644,091
Municipal securities 48,744 17 (31) 48,730 53,698 81 (23) 53,756
Government securities 121,431 37 (256) 121,212 156,930 196 (47) 157,079
Total $1,602,904 $ 1,582 $ (2,116) $1,602,370 $1,307,910 $ 2,401 $ (635) $ 1,309,676
The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive (loss)
income includes unrealized gains (losses) that arose from changes in market value of specifically identified securities that were
held during the period, gains (losses) that were previously unrealized, but have been recognized in current period net income
due to sales, as well as prepayments of available-for-sale investments purchased at a premium. This reclassification has no
effect on total comprehensive income or equity and was not material for all periods presented. See Note 16 for more
information related to comprehensive income.
The average remaining maturities of the Company’s short-term and long-term available-for-sale investments at
December 31, 2014 were approximately six months and three years, respectively.
Realized Gains and Losses on Available-for-sale Investments
For the years ended December 31, 2014 and 2013, the Company had realized gains on the sales of available-for-sale
investments of $1.9 million and $3.0 million, respectively. For the years ended December 31, 2014 and 2013, the Company had
realized losses on available-for-sale investments of $0.5 million and $2.7 million, respectively, primarily related to
prepayments at par of securities purchased at a premium. All realized gains and losses related to the sales of available-for-sale
investments are included in Other (expense) income, net, in the accompanying consolidated statements of income.
The Company continues to monitor its overall investment portfolio and if the credit ratings of the issuers of its
investments deteriorate or if the issuers experience financial difficulty, including bankruptcy, the Company may be required to
make adjustments to the carrying value of the securities in its investment portfolio and recognize impairment charges for
declines in fair value that are determined to be other-than-temporary.
Unrealized Losses on Available-for-Sale Investments
The gross unrealized losses on the Company’s available-for-sale investments that are not deemed to be other-than-
temporarily impaired were $2.1 million and $0.6 million as of December 31, 2014 and 2013, respectively. Because the
Company does not intend to sell any of its investments in an unrealized loss position and it is more likely than not that it will
not be required to sell the securities before the recovery of its amortized cost basis, which may not occur until maturity, it does
not consider the securities to be other-than-temporarily impaired.
Cost Method Investments
The Company held direct investments in privately-held companies of approximately $16.6 million and $24.3 million as
of December 31, 2014 and 2013, respectively, which are accounted for based on the cost method and are included in Other
assets in the accompanying consolidated balance sheets. The Company periodically reviews these investments for impairment.
If the Company determines that an other-than-temporary impairment has occurred, it will write-down the investment to its fair
value. During 2014 and 2013, certain companies in which the Company held direct investments were acquired by third parties
and as a result of these sales transactions the Company recorded gains of $2.9 million and $6.0 million, respectively, which was
included in Other (expense) income, net in the accompanying consolidated statements of income. The Company determined
that certain cost method investments were impaired during 2014, 2013 and 2012 and recorded a total charge of $8.3 million,
$3.7 million, and $3.5 million, respectively, which is included in Other (expense) income, net in the accompanying
consolidated statements of income. See Note 5 for more information.