Citrix 2000 Annual Report Download - page 62

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60
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
14. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share:
YEAR ENDED DECEMBER 31
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2000 1999 1998
−−−−−−−− −−−−−−−−−−−− −−−−−−−−
(IN THOUSANDS, EXCEPT PER
SHARE INFORMATION)
Numerator:
Net income.......................................... $ 94,512 $116,944 $ 61,102
======== ======== ========
Denominator:
Denominator for basic earnings per share −− weighted
average shares................................... 184,804 176,260 168,473
Effect of dilutive securities:
Put warrants..................................... 41 −− −−
Employee stock options........................... 14,886 16,306 14,121
−−−−−−−− −−−−−−−− −−−−−−−−
Denominator for diluted earnings per
share −− adjusted weighted−average shares........ 199,731 192,566 182,594
======== ======== ========
Basic earnings per share.............................. $ 0.51 $ 0.66 $ 0.36
======== ======== ========
Diluted earnings per share............................ $ 0.47 $ 0.61 $ 0.33
======== ======== ========
15. RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 133, "Accounting for Derivative Instruments and Hedging Activities." In June
1999, the FASB issued SFAS 137, "Accounting for Derivative Instruments and
Hedging Activities −− Deferral of the Effective Date of FASB Statement 133,"
which amended SFAS 133 to change the effective date to fiscal quarters of fiscal
years beginning after June 15, 2000. In June 2000, the FASB also issued SFAS
138, "Accounting for Certain Derivative Instruments and Certain Hedging
Activities −− An Amendment to FASB Statement No. 133." SFAS 138 amends the
accounting and reporting standards of SFAS 133 for certain derivative
instruments and certain hedging activities. SFAS 133 establishes accounting and
reporting standards for derivative instruments and for hedging activities. SFAS
133 requires the Company to record all derivatives as either assets or
liabilities in the Consolidated Balance Sheet and measure those instruments at
fair value. It further provides criteria for derivative instruments to be
designated as fair value, cash flow, or foreign currency hedges, and establishes
accounting standards for reporting changes in the fair value of the derivative
instrument. The method of accounting for changes in the fair value depends on
the intended use of the derivative and the resulting designation.
The Company adopted SFAS No. 133 in the first quarter of fiscal 2001 and,
given the Company's current use of derivatives and hedging activities, the
impact to transition to this statement was not material on its consolidated
financial statements. The impact of SFAS 133 on the Company's future financial
statements will depend on a variety of factors, including the future level of
forecasted and actual foreign currency transactions, the extent of the Company's
hedging activities, the types of hedging instruments used and the effectiveness
of such instruments.
16. LEGAL MATTERS
In June 2000, the Company and certain of its officers and directors were
named as defendants in several securities class action lawsuits filed in the
United States District Court for the Southern District of Florida on behalf of
purchasers of the Company's Common Stock during the period October 20, 1999 to
June 9, 2000
F−26