Citrix 2000 Annual Report Download - page 56

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
approximately $34.0 million associated with the outstanding put warrants, of
which $15.7 million is classified as a put warrant obligation on the face of the
balance sheet. The remaining $18.3 million of outstanding put warrants permit a
net−share settlement at the Company's option and do not result in a put warrant
obligation on the balance sheet. The outstanding put warrants classified as a
put warrants obligation on the balance sheet will be reclassified to equity when
the warrant is exercised or expires. Under the terms of the put warrant
agreements, the Company must maintain certain levels of cash and investments
balances. As of December 31, 2000, the Company has approximately $349.2 million
of cash and investments in excess of required levels.
Stock Splits
On May 17, 1996, the Board of Directors declared a two−for−one stock split
in the form of a stock dividend paid on June 4, 1996, to stockholders of record
of the Company's Common Stock on May 28, 1996.
On January 25, 1998, the Board of Directors declared a three−for−two stock
split in the form of a stock dividend paid on February 20, 1998 to stockholders
of record of the Company's Common Stock on February 12, 1998.
On March 1, 1999, the Company announced a two−for−one stock split in the
form of a stock dividend paid on March 25, 1999, to stockholders of record as of
March 17, 1999.
On January 19, 2000, the Company announced a two−for−one stock split in the
form of a stock dividend paid on February 16, 2000, to stockholders of record as
of January 31, 2000.
The number of options issuable and previously granted and their respective
exercise prices under the Company's stock option plans have been proportionately
adjusted to reflect these stock splits. The accompanying consolidated financial
statements have been retroactively restated to reflect these stock splits.
Preferred Stock
The Company is authorized to issue 5,000,000 shares of preferred stock,
$0.01 par value per share. The Company has no present plans to issue such
shares.
8. CONVERTIBLE SUBORDINATED DEBENTURES
In March 1999, the Company sold $850 million principal amount at maturity
of its zero coupon convertible subordinated debentures (the "Debentures") due
March 22, 2019 in a private placement. The Debentures were priced with a yield
to maturity of 5.25% and resulted in net proceeds to the Company of
approximately $291.9 million, net of original issue discount and net of debt
issuance costs of $9.6 million. Except under limited circumstances, no interest
will be paid on the Debentures prior to maturity. The Debentures are convertible
at the option of the security holder at any time on or before the maturity date
at a conversion rate of 14.0612 shares of the Company's Common Stock for each
$1,000 principal amount at maturity of Debentures, subject to adjustment in
certain events. The Company may redeem the Debentures on or after March 22,
2004. Holders may require the Company to repurchase the Debentures, at set
redemption prices (equal to the issue price plus accrued original issue
discount) beginning on March 22, 2004. In October 2000, the Board of Directors
approved a program authorizing the Company to repurchase up to $25 million of
the Debentures in open market purchases. As of December 31, 2000, none of the
Company's Debentures had been repurchased under this program. Interest expense
related to the Debentures was $17.0 and $12.6 million in 2000 and 1999,
respectively.
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