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
Citrix Systems, Inc.  Annual Report
financial institution and result in the receipt of stock during
and/or at the end of the agreement or depending on
market conditions, the receipt of either stock or cash at the
maturity of the agreement.
We made prepayments to financial institutions, net of
premiums received of approximately $114.4 million in 2006
and $52.2 million in 2005, under our structured stock
repurchase arrangements. We expended approximately
$159.8 million in 2006 and $122.2 million in 2005 for open
market purchases. Under our structured stock repurchase
agreements we took delivery of 4,307,112 shares at
an average price of $30.76 per share in 2006 and we
took delivery of 2,302,217 shares at an average price of
$22.02 per share in 2005. As of December 31, 2006, we
have prepaid notional amounts of approximately $36.3
million remaining under our structured stock repurchase
programs, which expire in January 2007. Due to the fact
that the total shares to be received under our structured
repurchase arrangements at December 31, 2006 is not
determinable until the contracts mature, the above price
per share amounts exclude the remaining shares to be
received subject to the agreements. We repurchased
5,193,410 shares of outstanding common stock with an
average price of $30.77 during 2006 and we repurchased
5,054,400 shares of outstanding common stock with an
average price of $24.18 during 2005 in our open market
purchase transactions. In addition, a significant portion
of the funds used to repurchase stock was funded by
proceeds from employee stock option exercises and the
related tax benefit.
We suspended our stock repurchase program for the
duration of our Audit Committee’s voluntary, independent
review of our historical stock option granting practices
and related accounting. For more information on our
independent review of historical stock option granting
practices and related accounting see Note 2 to our
consolidated financial statements included elsewhere in
this Annual Report.
Contractual Obligations and Off-Balance
Sheet Arrangement
Contractual Obligations
We have certain contractual obligations that are recorded
as liabilities in our consolidated financial statements.
Other items, such as operating lease obligations, are
not recognized as liabilities in our consolidated financial
statements, but are required to be disclosed in the notes to
our consolidated financial statements.
The following table summarizes our significant contractual
obligations at December 31, 2006 and the future periods
in which such obligations are expected to be settled
in cash. Additional details regarding these obligations
are provided in the notes to our consolidated financial
statements (in thousands):
Payments due by period
Total
Less than
1 Year 1-3 Years 4-5 Years
More than
5 Years
Operating lease obligations $ 122,588 $ 23,523 $ 35,680 $ 23,636 $ 39,749
Synthetic lease obligations 8,214 3,557 4,657 — —
Purchase obligations (1) 9,322 9,322 — — —
Total contractual obligations (2) $ 140,124 $ 36,402 $ 40,337 $ 23,636 $ 39,749
(1) Purchase obligations represent non-cancelable commitments to purchase inventory ordered before year-end.
(2) Total contractual obligations do not include agreements where our commitment is variable in nature or where cancellations without
payment provisions exist.