Citrix 2006 Annual Report Download - page 26

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

measurement dates. For example, in 1999 (the year in our
restatement period with the largest sensitivity range based
on option grant date), our stock price closed at a low of
$14.65 per share and a high of $77.50 per share during the
range of potential alternative measurement dates. In 2000
(the year in our restatement period with the second largest
sensitivity range based on option grant date), our stock
price closed at a low of $14.31 per share and a high of
$105.44 per share during the range of potential alternative
measurement dates. Since we do not have evidence that
the grant dates and exercise prices were selected on the
date when our stock price was at its highest or lowest
during each period, we concluded that selecting a revised
measurement date on the “highest” or “lowest” closing
price when measuring compensation expense would not
have been consistent with the requirements of APB No. 25,
which looks to the “first date” on which the terms of the
grants were fixed with finality.
The following tables set forth the effect on earnings
before income taxes (net of estimated forfeitures) that
would result from using different alternate measurement
date determinations as compared to the measurement
date selected in our evaluation and used for accounting
purposes. The first table, titled “Sensitivity Analysis by
Option Grant Year” illustrates actual pre-tax stock-based
compensation expense and the hypothetical stock-
based compensation expense based on the year each
option in the restatement was granted. The second
table, titled “Sensitivity Analysis by Option Vest Year”
illustrates the actual amortization of the pre-tax stock-
based compensation recognized in our consolidated
financial statements and the hypothetical stock-based
compensation expense in the period that the options are
earned. The difference in the total compensation set forth
in each table is due to stock-based compensation that will
be expensed in future periods when earned.
Sensitivity Analysis by Option Grant Year
(In thousands)
Year
Pre-Tax Expense
Based on Selected
Revised Measurement
Dates
Hypothetical
Compensation
Expense Based on
Lowest Closing Price
Within Range of
Potential Alternative
Measurement Dates
Hypothetical
Compensation
Expense Based on
Highest Closing
Price Within Range
of Potential
Alternative
Measurement Dates
1995 $ 239 $ — $ 274
1996 19,408 3,462 23,938
1997 14,959 — 19,486
1998 40,061 9,173 55,473
1999 63,867 14,708 136,265
2000 7,451 293 69,064
2001 11,630 1,428 14,522
2002 1,999 828 10,373
2003 5,829 1,897 19,009
2004 224 — 674
2005 — — 133
Total $ 165,667 $ 31,789 $ 349,211