Citrix 2014 Annual Report Download - page 93

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-25
The assumptions used to value options granted and/or assumed are as follows:
Stock options granted or assumed during
2013 2012
Expected volatility factor 0.39 0.38 - 0.43
Approximate risk free interest rate 0.4% 0.5% - 0.7%
Expected term (in years) 3.35 3.91
Expected dividend yield 0% 0%
Benefit Plan
The Company maintains a 401(k) benefit plan allowing eligible U.S.-based employees to contribute up to 60% of their
annual compensation, limited to an annual maximum amount as set periodically by the IRS. The Company, at its discretion,
may contribute up to $0.50 for each dollar of employee contribution. The Company’s total matching contribution to an
employee is typically made at 3% of the employee’s annual compensation. The Company’s matching contributions were $14.4
million, $12.7 million and $10.5 million in 2014, 2013 and 2012, respectively. The Company’s contributions vest over a four-
year period at 25% per year.
8. CAPITAL STOCK
Stock Repurchase Programs
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority
granted to the Company of $5.4 billion, of which $1.5 billion was approved in April 2014. The Company may use the approved
dollar authority to repurchase stock at any time until the approved amount is exhausted. The objective of the Company’s stock
repurchase program is to improve stockholders’ returns. At December 31, 2014, approximately $288.4 million was available to
repurchase common stock pursuant to the stock repurchase program. All shares repurchased are recorded as treasury stock. A
portion of the funds used to repurchase stock over the course of the program was provided by net proceeds from the
Convertible Notes offering, as well as proceeds from employee stock option exercises and the related tax benefit. The Company
is authorized to make open market purchases of its common stock using general corporate funds through open market
purchases, pursuant to a Rule 10b5-1 plan or in privately negotiated transactions.
During the second quarter of 2014, the Company used a portion of the net proceeds from the Convertible Notes offering
and existing cash and investments to repurchase an aggregate of approximately $1.5 billion of its common stock as authorized
under the stock repurchase program. Of this $1.5 billion, the Company used approximately $101.0 million to purchase 1.7
million shares from certain purchasers of the Convertible Notes in privately negotiated transactions concurrently with the
closing of the offering, and the remaining $1.4 billion to purchase additional shares of common stock under an Accelerated
Share Repurchase ("ASR") which the Company entered into with Citibank, N.A. ("Citibank") on April 25, 2014 (the "ASR
Agreement"). Under the ASR agreement, the Company paid $1.4 billion to Citibank upon consummation of the ASR and
received, in the aggregate, approximately 21.8 million shares of its common stock from Citibank, including approximately 2.6
million shares delivered in October 2014 in final settlement in connection with Citibank's election to accelerate the ASR. The
total number of shares of common stock that the Company repurchased under the ASR Agreement was based on the average of
the daily volume-weighted average prices of the common stock during the term of the ASR Agreement, less a discount.
In addition to the repurchases described above, during the year ended December 31, 2014, the Company expended
approximately $139.9 million on open market purchases under the stock repurchase program, repurchasing 2,046,400 shares of
outstanding common stock at an average price of $68.36.
During the year ended December 31, 2013, the Company expended approximately $406.3 million on open market
purchases, repurchasing 6,563,986 shares of outstanding common stock at an average price of $61.90.
During the year ended December 31, 2012, the Company expended approximately $251.0 million on open market
purchases, repurchasing 3,550,817 shares of outstanding common stock at an average price of $70.69.
Shares for Tax Withholding
During the years ended December 31, 2014, 2013 and 2012, the Company withheld 560,239 shares, 444,657 shares and
269,745 shares, respectively, from stock units that vested. Amounts withheld to satisfy minimum tax withholding obligations