Citrix 2000 Annual Report Download - page 58

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56
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
11. INCOME TAXES
The United States and foreign components of income from continuing
operations before income taxes are as follows:
2000 1999 1998
−−−−−−−− −−−−−−−− −−−−−−−
(IN THOUSANDS)
United States....................................... $ 80,465 $122,131 $93,219
Foreign............................................. 54,552 60,594 2,253
−−−−−−−− −−−−−−−− −−−−−−−
Total.......................................... $135,017 $182,725 $95,472
======== ======== =======
The components of the provision for (benefit from) income taxes are as
follows:
2000 1999 1998
−−−−−−− −−−−−−−− −−−−−−−−
(IN THOUSANDS)
Current:
Federal........................................... $29,252 $ 53,060 $ 39,026
Foreign........................................... 3,428 16,782 1,907
State............................................. 1,585 9,256 7,339
−−−−−−− −−−−−−−− −−−−−−−−
Total current.................................. 34,265 79,098 48,272
Deferred............................................ 6,240 (13,317) (13,902)
−−−−−−− −−−−−−−− −−−−−−−−
Total income tax expense....................... $40,505 $ 65,781 $ 34,370
======= ======== ========
The significant components of the Company's deferred tax assets and
liabilities consisted of the following:
DECEMBER 31
−−−−−−−−−−−−−−−−−−
2000 1999
−−−−−−− −−−−−−−
(IN THOUSANDS)
Deferred tax assets:
Acquired technology....................................... $18,362 $ 8,827
Deferred revenue.......................................... 21,549 36,752
Accounts receivable allowances............................ 1,915 2,658
Depreciation and amortization............................. 4,458 7,646
Tax credits............................................... 12,047 8,355
Other..................................................... 9,364 1,256
−−−−−−− −−−−−−−
Total deferred tax assets.............................. 67,695 65,494
Deferred tax liabilities:
Foreign earnings.......................................... (8,753) (8,753)
−−−−−−− −−−−−−−
Total deferred tax liabilities......................... (8,753) (8,753)
−−−−−−− −−−−−−−
Total net deferred tax assets.......................... $58,942 $56,741
======= =======
During the years ended December 31, 2000, 1999, and 1998, the Company
recognized tax benefits related to the exercise of employee stock options in the
amount of $63,923,000, $50,843,000, and $24,174,000, respectively. This benefit
was recorded to additional paid−in capital. In 2000, the tax benefit relating to
the exercise of employee stock options resulted in the Company generating a U.S.
net operating loss for the year. The Company is able to carry back the net
operating loss generated in 2000 and receive a refund of U.S. taxes paid in 1999
and 1998.
F−22