Citrix 2006 Annual Report Download - page 24

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
incentive based. As a result, we have reduced our available
tax net operating loss carry-forwards arising from certain
previously exercised stock options. We restated our tax
provisions in the periods in which the benefits
were recorded.
Category of Adjustments: 2005 2004
Cumulative Effect from
January 1, 1996 through
December 31, 2003
Pre-tax stock-based compensation expense related to stock
option measurement date changes $ 3,142 $ 6,226 $ 156,299
Other tax charges (2,127) (6,031) 14,438
Income tax impact on other tax charges 727 1,963 (3,848)
Income tax adjustments related to IRC Section 162(m) (288) — 494
Income tax impact related to stock option compensation expense
date changes (862) (1,802) (47,456)
Total income tax adjustments (423) 161 (50,810)
Total charge to net income $ 592 $ 356 $ 119,927
The additional compensation expense in 2004 and 2005
reflected below primarily relates to the impact of vesting of
awards granted prior to 2004. A summary of total charges,
including estimated employment related tax charges, which
are comprised of withholding taxes, penalties and interest,
by fiscal period, in thousands, is as follows:
Year Ended December 31,
Pre-Tax
Expense
Employment
Related
Tax Charges
Income
Taxes
Net
Charge
to Net
Income
1996 $1,826 $ — $(689) $1,137
1997 6,509 128 (2,526) 4,111
1998 14,598 1,221 (4,442) 11,377
1999 24,557 4,819 (8,411) 20,965
2000 40,627 8,069 (14,019) 34,677
2001 34,926 4,073 (11,844) 27,155
2002 20,271 (830) (5,837) 13,604
2003 12,985 (3,042) (3,042) 6,901
Cumulative effect at December 31, 2003 156,299 14,438 (50,810) 119,927
2004 6,226 (6,031) 161 356
2005 3,142 (2,127) (423) 592
Total $165,667 $6,280 $(51,072) $120,875
In addition, to the amounts reflected above, for the year
ended December 31, 2005, we had previously recognized
$4.3 million in stock-based compensation expense
related to stock-based awards. Accordingly, the total
pre-tax stock-based compensation expense for 2005 was
approximately $7.4 million. Previously recorded stock-
based compensation expense, if any, for each of the
years ended December 31, 1996 through December 31,
2004 was not material. The total pre-tax stock-based
compensation expense for the period from January 1, 1996
through December 31, 2005 was approximately
$170.0 million.
The following table reflects the impacts of the restatement
adjustments on our consolidated statements of income for
the periods presented below (in thousands):