Citrix 2006 Annual Report Download - page 88

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5. Cash and Investments
Cash and cash equivalents and investments consist of
the following:
December 31,
(In thousands) 2006 2005
Cash and cash equivalents:
Money market funds $ 166,097 $ 74,097
Commercial paper 145,238 385,873
Cash 28,761 38,333
Agency securities 19,586 18,317
Municipal securities 2,854 2,976
Corporate securities 2,769 20,211
Total $ 365,305 $ 539,807
Reported as:
Cash and cash equivalents $ 349,054 $ 484,035
Restricted cash equivalents
and investments $ 16,251 $ 55,772
Short-term investments:
Corporate securities $ 100,197 $ —
Agency securities 55,709 7,956
Commercial paper 28,785 —
Municipal securities 11,150 18,900
Total $ 195,841 $ 26,856
Reported as:
Short-term investments $ 152,652 $ 18,900
Restricted cash equivalents
and investments $ 43,189 $ 7,956
Long-term investments:
Corporate securities $ 159,879 $ 50,000
Agency securities 76,774 —
Government securities (1) 6,191 —
Other 1,831 1,286
Municipal securities 1,375 —
Total $ 246,050 $ 51,286
Reported as:
Long-term investments $ 241,675 $ 51,286
Restricted cash equivalents
and investments $ 4,375 $ —
(1) Includes investments in United States securities.
The Company’s investments are classified as available-
for-sale and are recorded at fair value. During 2005,
the Company sold $193.9 million of fixed rate available-
for-sale investments. Simultaneous with the sale of the
investments, the Company also terminated the related
interest rate swaps. The realized net gain related to the sale
of the investments and the termination of the interest rate
swaps was not material. Gross realized gains and losses
on sales of securities during 2006, 2005 and 2004 were
not material. At December 31, 2006, the average original
contractual maturity of the Company’s short-term available-
for-sale investments was approximately 12 months. The
Company’s long-term available-for-sale investments at
December 31, 2006 included $241.7 million of investments
with original contractual maturities ranging from one to 37
years. The average remaining maturities of the Company’s
short-term and long-term available-for-sale investments,
including restricted investments, at December 31, 2006
were approximately five months and ten years, respectively.
In addition, included in short-term available-for-sale
investments are auction rate securities of $13.2 million
that generally reset every seven to 35 days. The Company
also owns $1.8 million in equity investments not due at a
single maturity date classified as long-term investments at
December 31, 2006.
The Company has investments in two instruments with an
aggregate face value of $50.0 million that include structured
credit risk features related to certain referenced entities.
Under the terms of these debt instruments, the Company
assumes the default risk, above a certain threshold, of a
portfolio of specific referenced issuers in exchange for a
fixed yield that is added to the London Interbank Offered
Rate (“LIBOR”)-based yield on the debt instrument. In
the event of default by any of the underlying referenced
issuers above specified amounts, the Company will pay
the counterparty an amount equivalent to its loss, not to
exceed the face value of the instrument. The primary risk
associated with these instruments is the default risk of the
underlying issuers. The credit ratings of these instruments
are equivalent to the likelihood of an event of default under
“AAA” or “AA” rated individual securities. The purpose of
these instruments is to provide additional yield on certain
of the Company’s available-for-sale investments. These
instruments mature in November 2007 and February 2008.
To date there have been no credit events for the underlying
referenced entities resulting in losses to the Company. The
Company separately accounts for changes in the fair value
of the investments and as of December 31, 2006 and 2005
there was no material change in fair value.