Citrix 2000 Annual Report Download - page 57

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55
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
9. FAIR VALUES OF FINANCIAL INSTRUMENTS
The fair value of the Company's investments in commercial paper, government
securities, and corporate securities, by contractual maturity, is as follows:
DECEMBER 31
−−−−−−−−−−−−−−−−−−−−
2000 1999
−−−−−−−− −−−−−−−−
(IN THOUSANDS)
Due in less than 1 year..................................... $307,910 $368,906
Due in 1 to 3 years......................................... 61,253 320,505
Due in greater than 3 years................................. 321,423 −−
−−−−−−−− −−−−−−−−
$690,586 $689,411
======== ========
The carrying value of cash and cash equivalents, accounts receivable,
accounts payable and accrued expenses approximate their fair value due to the
short maturity of these items. The Company's investments classified as
available−for−sale securities are carried at fair value on the accompanying
Consolidated Balance Sheets, based primarily on quoted market prices for such
financial instruments. The Company's investments associated with the Bond
Purchased Agreement and the Trust are classified as held−to−maturity and are
carried at amortized cost on the accompanying Consolidated Balance Sheets. The
carrying amount of the Company's Debentures at December 31, 2000 and 1999 were
approximately $330.5 and $313.9 million, respectively. The fair value of the
Debentures, based on the quoted market price as of December 31, 2000 and 1999
were approximately $352.7 and $751.8 million, respectively. The fair value of
the underlying securities associated with the Bond Purchase Agreement was
approximately $163.0 million at December 31, 2000. The investments held in the
Trust have an aggregate fair value of $158.4 million at December 31, 2000. The
fair value of the outstanding put warrants was approximately $6.2 million at
December 31, 2000.
10. COMMITMENTS
The Company leases certain office space, equipment and software under
various operating leases. Certain of these leases contain stated escalation
clauses while others contain renewal options.
Rental expense for the years ended December 31, 2000, 1999 and 1998 totaled
approximately $8,707,000, $4,954,000 and $2,787,000 respectively. Lease
commitments under non−cancelable operating leases with remaining terms in excess
of one year are as follows:
(IN THOUSANDS)
Years ending December 31,
2001...................................................... $ 12,510
2002...................................................... 12,368
2003...................................................... 10,755
2004...................................................... 7,513
2005...................................................... 6,274
Thereafter................................................ 57,224
−−−−−−−−
$106,644
========
To consolidate certain of the Company's corporate offices and to
accommodate the Company's projected growth, the Company entered into a lease
agreement for office space at its Corporate headquarters beginning in the second
quarter of 2001. Lease commitments under this lease agreement are included in
the table above. Upon occupancy of this new facility, the Company plans to
sublease the space in certain existing buildings for the remainder of their
respective lease terms.
F−21