Citrix 2000 Annual Report Download - page 51

49
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
Forward Bonds will equal the expected future coupon or principal payment amounts
received on six underlying corporate securities. The corporate securities, which
have an aggregate amortized cost of $158.2 million at December 31, 2000,
generally provide for semi−annual interest payments and mature at various dates
between December 2003 and March 2004. The Forward Bonds will mature on March 15,
2004 with an aggregate maturity value of approximately $195 million. The Bond
Purchase Agreement and the underlying corporate securities are classified as
held−to−maturity, therefore, the Company does not recognize changes in the fair
value of these investments unless a decline in the fair value of the investments
is other than temporary, in which case a loss would be recognized in earnings.
The underlying corporate securities have been pledged as security for the
Company's future obligations to purchase the Forward Bonds.
In December 2000, the Company invested $158.1 million in a trust ("Trust")
held by an investment advisor. The Trust primarily consists of assets which in
turn invest in AAA−rated zero−coupon corporate securities that mature on March
22, 2004 with an aggregate maturity value of approximately $195 million. The
investment advisor entered into a credit risk swap agreement with the Trust
which effectively increased the yield on the trust assets and for which value
the Trust assumed the credit risk of ten specific A−rated or better companies.
The Company records the investment as held−to−maturity zero−coupon corporate
securities. The Company does not recognize changes in the fair value of these
investments unless a decline in the fair value of the Trust assets is other than
temporary, in which case a loss would be recognized in earnings.
5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consist of the following:
DECEMBER 31
−−−−−−−−−−−−−−−−−−
2000 1999
−−−−−−− −−−−−−−
(IN THOUSANDS)
Accounts payable............................................ $ 7,123 $ 6,518
Accrued compensation and employee benefits.................. 11,857 6,686
Accrued royalties........................................... 2,638 5,423
Accrued cooperative advertising and marketing programs...... 21,034 16,521
Accrued taxes............................................... 19,627 24,434
Other....................................................... 16,460 9,608
−−−−−−− −−−−−−−
$78,739 $69,190
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6. EMPLOYEE STOCK COMPENSATION AND BENEFIT PLANS
Stock Compensation Plans
As of December 31, 2000, the Company has five stock−based compensation
plans, which are described below. The Company grants stock options for a fixed
number of shares to employees with an exercise price equal to the fair value of
the shares at the date of grant. As mentioned in Note 2, the Company applies APB
Opinion 25 and related interpretations in accounting for its plans. Accordingly,
no compensation cost has been recognized for its fixed stock plans and its stock
purchase plan. Had compensation cost for the Company's five stock−based
compensation plans been determined based on the fair value at the grant dates
for grants under
F−15