Citrix 2006 Annual Report Download - page 46

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reinvestment, from sales and maturities of our available-
for-sale investments of $323.7 million. These cash outflows
also consisted of cash paid for the 2006 Acquisitions, net
of cash acquired, of $61.5 million and the expenditure of
$52.1 million for the purchase of property and equipment.
Our financing activities used cash of $26.4 million primarily
related to $274.2 million of cash paid under our stock
repurchase programs and $34.9 million paid on our debt.
These cash outflows are partially offset by $230.7 million
in proceeds received from employee stock compensation
plans and $51.9 million related to excess tax benefits from
the exercise of stock-based awards.
During 2005, we generated positive operating cash flows
of $293.1 million. These cash flows related primarily to net
income of $165.6 million, adjusted for, among other things,
tax effect of stock-based compensation of $35.0 million,
depreciation and amortization of $50.4 million, stock-based
compensation expense of $7.4 million, the write-off of
in-process research and development associated with the
2005 Acquisitions of $7.0 million and provision for product
returns of $6.0 million. Also attributed to these cash inflows
is an aggregate increase in cash flow from our operating
assets and liabilities of $35.9 million partially offset by a
deferred income tax benefit of $14.8 million. Our investing
activities provided $160.3 million of cash consisting
primarily of the net proceeds, after reinvestment, from
sales and maturities of our available-for-sale investments
of $355.0 million. These cash inflows are partially offset by
cash paid for the 2005 Acquisitions, net of cash acquired,
of $168.3 million and the expenditure of $26.4 million for
the purchase of property and equipment. Our financing
activities used cash of $42.9 million related to $174.4
million of cash paid under our stock repurchase programs
partially offset by $101.6 million in proceeds received from
employee stock compensation plans and $29.9 million in
net proceeds from our Credit Facility and Term Loan, net of
financing fees.
Historically, significant portions of our cash inflows were
generated by our operations. We currently expect this trend
to continue throughout 2007. We believe that our existing
cash and investments together with cash flows expected
from operations will be sufficient to meet expected
operating and capital expenditure requirements for the next
12 months. We continue to search for suitable acquisition
candidates and could acquire or make investments
in companies we believe are related to our strategic
objectives. We could from time to time seek to raise
additional funds through the issuance of debt or equity
securities for larger acquisitions.
Cash and Investments
Year Ended December 31, 2006
Compared to
2005(In thousands) 2006 2005
Cash and investments $ 743,381 $ 554,221 $ 189,160
The increase in cash and investments at December 31,
2006 as compared to December 31, 2005, is primarily
due to increased proceeds received from employee
stock-based compensation plans, a decrease in cash
spent for acquisitions and an increase in cash provided by
operations, partially offset by increased spending on stock
repurchases, an increase in net payments made on our
debt and an increase in capital expenditures. We generally
invest our cash and cash equivalents in investment grade,
highly liquid securities to allow for flexibility in the event
of immediate cash needs. Our short-term and long-term
investments primarily consist of interest-bearing securities.
See “Management’s Discussion and Analysis of Financial
Condition and Results of Operations — Liquidity and
Capital Resources” and Note 5 to our consolidated financial
statements included elsewhere in this Annual Report for
further information.