Citrix 2006 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2006 Citrix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124


Citrix Systems, Inc.  Annual Report
certain previously exercised stock options. The Company
restated its tax provisions in the periods in which the
benefits were recorded.
As a result of the review, the Company also determined that
it failed to properly withhold employment (the employee
and Company portions of FICA and supplemental federal
withholding) taxes associated with certain stock option
exercises. The Company recorded such amounts in
the consolidated statements of income in the period in
which the Company was originally obligated to make the
withholding. Additionally, for tax years where the statute
of limitations has lapsed, the Company has recorded the
reduction in previously recorded liabilities in the period the
statute of limitations expires. The Company has recorded
approximately $8.0 million, net of income tax, through
December 31, 2006 for employment taxes and
related charges.
The Company restated its prior year income tax amounts
in Note 12 to reflect the impacts of the adjustments
described above.
Additionally, the Company has restated the pro forma
amortization of deferred stock compensation included
in net income, net of tax, and total stock-based
compensation expenses determined under the fair value
based method, under SFAS No. 123 to reflect the impact of
the stock-based compensation expense resulting from the
correction of option grants in the investigation.
The following table presents the effect of the related
adjustments on the pro forma calculation of the net
income per share under SFAS No. 123 for the years ended
December 31, 2005 and 2004 (in thousands, except per
share amounts):
Year Ended December 31, 2005 Year Ended December 31, 2004
As
Reported Adjustments
As
Restated
As
Reported Adjustments
As
Restated
Net income: $ 166,340 $(731) $ 165,609 $ 131,546 $(259) $ 131,287
Add: Total stock-based compensation
expense included in reported net
income, net of tax 2,744 3,023 5,767 — 5,159 5,159
Deduct: Total stock-based
compensation expense determined
using fair value method, net of tax (37,881)(594)(38,475)(48,043)1,041 (47,002)
Pro forma net income $ 131,203 $ 1,698 $132,901 $83,503 $ 5,941 $89,444
Basic net income per share:
As reported $ 0.97 $ (0.01) $ 0.96 $ 0.78 $ — $ 0.78
Pro forma $ 0.76 $ 0.01 $ 0.77 $ 0.49 $ 0.04 $ 0.53
Diluted net income per share
As reported $ 0.93 $ — $ 0.93 $ 0.75 $ — $ 0.75
Pro forma $ 0.74 $ 0.01 $ 0.75 $ 0.48 $ 0.03 $ 0.51