Citrix 2006 Annual Report Download - page 76

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Shares used for purposes of computing the diluted
earnings per share are different in this Annual Report as
unearned stock compensation, significant amounts of
which were recorded as part of the restatement have been
presented in stockholders’ equity, is considered proceeds
for purposes of applying the treasury stock method to
determine incremental common shares to be included
in diluted shares in periods in which the Company has
reported net income.
The restatement did not impact net cash flows from
operating, investing or financing activities. However, certain
items within net cash provided by operating activities
were impacted by the adjustments. The following table
presents the effects of the stock-based compensation
and related tax adjustments made to the Company’s
previously reported consolidated cash flows from operating
activities (in thousands):
December 31,
2005 2004
As
Reported Adjustments
As
Restated
As
Reported Adjustments
As
Restated

Net income $ 166,340 $ (731) $ 165,609 $ 131,546 $ (259) $ 131,287
Adjustments to reconcile net income
to net cash provided by operating
activities:
Amortization of intangible assets 28,388 — 28,388 12,331 — 12,331
Depreciation and amortization of
property and equipment 21,970 — 21,970 21,247 — 21,247
Stock-based compensation expense 4,261 3,142 7,403 26 6,226 6,252
Accretion of original issue discount and
amortization of financing cost 483 — 483 4,318 — 4,318
Write-off of deferred debt issuance costs —— — 7,219 — 7,219
In-process research and development 7,000 — 7,000 19,100 — 19,100
Provision for doubtful accounts 146 — 146 1,108 — 1,108
Provision for product returns 5,954 — 5,954 6,663 — 6,663
Provision for inventory reserves 383 — 383 428 — 428
Deferred income tax benefit (14,348) (423) (14,771) (2,360) 161 (2,199)
Tax effect of stock-based compensation 38,336 (3,291) 35,045 20,875 (4,433) 16,442
Other non-cash items (325) — (325) 323 — 323
Total adjustments to reconcile net
income to net cash provided by
operating activities 92,248 (572) 91,676 91,278 1,954 93,232
Changes in operating assets and
liabilities, net of effects of acquisitions:
Accounts receivable (28,424) — (28,424) (25,312) — (25,312)
Inventories (1,707) — (1,707) (80) — (80)
Prepaid expenses and other current
assets 2,482 — 2,482 9,252 — 9,252
Other assets 234 — 234 (456) — (456)
Deferred tax assets, net 2,111 3,430 5,541 12,249 4,336 16,585
Accounts payable 12,052 — 12,052 (1,467) (1,467)
Accrued expenses (3,206) (2,127) (5,333) 6,533 (6,031) 502
Income tax payable (868) — (868) (3,303) — (3,303)
Deferred revenues 54,864 — 54,864 54,118 — 54,118
Other liabilities (2,983) — (2,983) (9,077) — (9,077)
Total changes in operating assets
and liabilities, net of effects of
acquisitions 34,555 1,303 35,858 42,457 (1,695) 40,762
Net cash provided by operating activities $ 293,143 $ — $ 293,143 $ 265,281 $ — $ 265,281