Citrix 2006 Annual Report Download - page 103

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Citrix Systems, Inc.  Annual Report
(1) The Americas segment is comprised of the United States,
Canada and Latin America.
(2) Defined as Europe, the Middle East and Africa.
(3) Represents expenses presented to management only on
a consolidated basis and not allocated to the geographic
operating segments.
Identifiable assets classified by the Company’s reportable
segments are shown below. Long-lived assets consist of
property and equipment, net, and are shown below.
December 31,
(In thousands) 2006 2005
(Restated)
Identifiable assets:
Americas $ 1,549,050 $ 1,292,392
EMEA 207,012 153,238
Asia-Pacific 55,015 41,967
Online Services division 213,396 211,385
Total identifiable assets $ 2,024,473 $ 1,698,982
December 31,
2006 2005
Long-lived assets, net:
United States $ 58,303 $ 36,596
United Kingdom 28,126 29,200
Other foreign countries 6,151 7,931
Total long-lived assets, net $ 92,580 $ 73,727
The increase in identifiable assets in the Americas segment
is primarily due to an increase in short-term and long-
term investments and, to a lesser extent, the goodwill and
assets associated with the Company’s 2006 Acquisitions.
The increase in identifiable assets in the EMEA segment
is primarily due to an increase in short-term and long-
term investments. See Note 4 for additional information
regarding the Company’s acquisitions.
Export revenue represents shipments of finished goods
and services from the United States to international
customers, primarily in Latin America and Canada.
Shipments from the United States to international
customers for 2006, 2005 and 2004 were $50.9 million,
$42.4 million and $32.9 million, respectively.
There were no individual end-users that represented
greater than 10% of net sales for any of the years
presented. The Company had net revenue attributed to
an individual distributor in excess of 10% of net sales as
follows. The revenue contributed by the distributor below is
primarily recorded in the Americas segment.
Year Ended December 31,
2006 2005 2004
Distributor A 10% 10 % 11 %
In addition to evaluating the Company’s profitability by
geography, including the Company’s Citrix Online Division,
its CODMs also evaluate revenues by product groupings.
Accordingly, the following table presents revenues for
Product licenses, License updates and product related
Technical services by product grouping for the Company’s
Application Virtualization products, Application Networking
products and other products and Online services revenues
for the Citrix Online Division’s products, for the years ended:
December 31,
(In thousands) 2006 2005 2004
Net revenues:
Application
Virtualization
revenues $ 871,656 $ 776,793 $ 696,827
Citrix Online
Division
revenues 148,795 99,097 44,101
Application
Networking
revenues 109,209 30,680 —
Other 4,659 2,152 229
Total net
revenue $ 1,134,319 $ 908,722 $ 741,157
14. Derivative Financial Instruments
As of December 31, 2006 and 2005, the Company
had $7.4 million and $3.2 million of derivative assets,
respectively, and $2.8 million and $8.3 million of derivative
liabilities, respectively, representing the fair values of the
Company’s outstanding derivative instruments, which are
recorded in other current assets, other assets, accrued
expenses and other liabilities in the accompanying
consolidated balance sheets. As of December 31, 2006,
the Company’s derivative assets and liabilities primarily
resulted from cash flow hedges related to its operating
expenses transacted in local currencies. The change in the
derivative component of accumulated other comprehensive
income (loss) includes unrealized gains or losses that arose
from changes in market value of derivatives that were held