Citrix 2006 Annual Report Download - page 71

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
Citrix Systems, Inc.  Annual Report
Impact of the Errors on the Company’s Financial
Statements
The Company determined that after accounting for
forfeitures, the errors described above, resulted in an
understatement of stock-based compensation expense,
after tax, over the respective awards vesting terms. As
indicated above, most of the adjusted measurement
dates were prior to December 31, 2004. Accordingly,
additional compensation expense related to grant date
changes subsequent to December 2003 was nominal.
The additional compensation expense in 2004 and 2005
reflected below primarily relates to the impact of vesting on
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, the Company had previously
recognized $4.3 million in stock-based compensation
expense related to stock-based awards. Accordingly, total
pre-tax stock-based compensation expense 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.