Citrix 2006 Annual Report Download - page 89

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
Citrix Systems, Inc.  Annual Report
The change in net unrealized securities gains (losses)
recognized in other comprehensive income includes
unrealized gains (losses) that arose from changes in market
value of specifically identified securities that were held
during the period and gains (losses) that were previously
unrealized, but have been recognized in current period
net income due to sales or maturities of available-for-
sale securities. This reclassification has no effect on total
comprehensive income or stockholders’ equity and was
immaterial for all periods presented. The unrealized gain
(loss) associated with each individual category of cash
and investments was not significant for either of the
periods presented.
6. Accrued Expenses
Accrued expenses consist of the following:
December 31,
(In thousands) 2006 2005
(restated)
Accrued compensation and
employee benefits $ 47,425 $ 39,473
Accrued cooperative advertising
and marketing programs 17,017 14,539
Accrued taxes 44,102 42,765
Other 37,120 34,530
$ 145,664 $ 131,307
7. Employee Stock-Based Compensation
and Benefit Plans
Plans
The Company’s stock-based compensation program is a
broad based, long-term retention program that is intended
to attract and reward talented employees and align
stockholder and employee interests. As of December 31,
2006, the Company had two stock-based compensation
plans under which it was granting stock options, shares
of non-vested stock and non-vested stock units. The
Company is currently granting stock-based awards from
its 2005 Equity Incentive Plan (as amended, the “2005
Plan”) and 2005 Employee Stock Purchase Plan (the “2005
ESPP”). Upon certain of the Company’s acquisitions, it
assumed several plans from the acquired companies. The
Company’s Board of Directors has provided that no new
awards will be granted under the Company’s acquired
stock plans or its superseded and expired stock plans
(including the Amended and Restated 1995 Stock Plan,
Second Amended and Restated 2000 Director and Officer
Stock Option and Incentive Plan, Second Amended and
Restated 1995 Non-Employee Director Stock Option Plan
and Third Amended and Restated 1995 Employee Stock
Purchase Plan (the “1995 ESPP”)). Awards previously
granted under the Company’s superseded and expired
stock plans that are still outstanding, however, typically
expire ten years from the date of grant and will continue to
be subject to all the terms and conditions of such plans,
as applicable. During the second quarter of 2006, the
Company began awarding non-vested stock units and non-
vested stock awards with performance measures to certain
senior members of management as part of its overall
compensation program. In addition, during the second
quarter of 2006, the Company also began awarding its
non-employee directors non-vested stock units with
service based vesting.
Under the terms of the 2005 Plan, the Company is
authorized to grant incentive stock options (“ISOs”),
non-qualified stock options (“NSOs”), non-vested stock,
non-vested stock units, stock appreciation rights (“SARs”),
performance units and to make stock-based awards
to full and part-time employees of the Company and its
subsidiaries or affiliates, where legally eligible to participate,
as well as consultants and non-employee directors of
the Company. Currently, the 2005 Plan provides for
the issuance of a maximum of 15,500,000 shares of
common stock of which 5,400,000 was authorized by
the Company’s Board of Directors in February 2006
and its stockholders in May 2006. On February 7, 2007,
subject to stockholder approval, the Board of Directors
approved a second amendment to the 2005 Plan (the
“Plan Amendment”) to (i) increase the aggregate number
of shares of Common Stock authorized for issuance under
the 2005 Plan by an additional 5,400,000 shares and
(ii) increase the aggregate number of shares of Common
Stock issuable pursuant to restricted stock, restricted stock
units, performance units or stock grants by an additional
1,000,000 shares of Common Stock. The Company is
requesting that the stockholders vote to approve the Plan
Amendment to increase the number of shares reserved