Citrix 2006 Annual Report Download - page 47

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Citrix Systems, Inc.  Annual Report
Restricted Cash Equivalents and Investments
Year Ended December 31, 2006
Compared to
2005
(In thousands) 2006 2005
Restricted cash equivalents and investments $ 63,815 $ 63,728 $ 87
Restricted cash equivalents and investments as of
December 31, 2006 and 2005 are primarily comprised
of approximately $62.8 million in investment securities
and cash equivalents pledged as collateral for specified
obligations under our synthetic lease arrangement. We
maintain the ability to manage the composition of the
restricted cash equivalents and investments within certain
limits and to withdraw and use excess investment earnings
from the pledged collateral for operating purposes. For
further information regarding our synthetic lease, see
Note 11 to our consolidated financial statements included
elsewhere in this Annual Report.
Accounts Receivable, Net
Year Ended December 31, 2006
Compared to
2005
(In thousands) 2006 2005
Accounts receivable $ 209,011 $ 146,397 $ 62,614
Allowance for returns (1,667) (2,332) 665
Allowance for doubtful accounts (2,370) (2,050) (320)
Accounts receivable, net $ 204,974 $ 142,015 $ 62,959
The increase in accounts receivable at December 31,
2006 compared to December 31, 2005 was primarily due
to an increase in sales, particularly in the last month of
2006 compared to the last month of 2005. Our allowance
for returns decreased during 2006 as compared to 2005.
The activity in our allowance for returns was comprised
of $5.3 million in credits issued for stock balancing rights
during 2006 partially offset by $4.6 million of provisions for
returns recorded during 2006. Our allowance for doubtful
accounts remained relatively flat when comparing 2006 to
2005. The activity in our allowance for doubtful accounts
was comprised of an additional $2.0 million of provisions
for doubtful accounts recorded during the year and $0.1
million of provisions for doubtful accounts associated with
accounts receivable acquired in our 2006 Acquisitions
partially offset by $1.7 million of uncollectible accounts
written off, net of recoveries. From time to time, we could
maintain individually significant accounts receivable
balances from our distributors or customers, which are
comprised of large business enterprises, governments
and small and medium-sized businesses. If the financial
condition of our distributors or customers deteriorates,
our operating results could be adversely affected. At
December 31, 2006 and 2005, no distributor or customer
accounted for more than 10% of our accounts receivable.
For more information regarding significant customers see
Note 13 to our consolidated financial statements included
elsewhere in this Annual Report.
Credit Facility and Term Loan
Effective on August 9, 2005, we entered into the Credit
Facility with a group of financial institutions, or the
Lenders. Effective September 27, 2006, we entered into
an amendment and restatement of the Credit Facility, or
the Amendment. The Amendment decreased the overall
range of interest we will pay on amounts outstanding on