Citrix 2006 Annual Report Download - page 93

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Citrix Systems, Inc.  Annual Report
The total intrinsic value of stock options exercised during
2006 was $180.0 million.
Non-vested Stock
As part of the Company’s 2005 Acquisitions, it assumed
25,179 shares of non-vested stock held by certain
employees of the acquired companies. The non-vested
stock assumed vests monthly based on service through
October 2007 dependent upon the remaining vesting
period of such non-vested stock at the time of the
acquisition. As part of an overall retention program, the
Company also granted 60,000 shares of non-vested stock
to certain employees retained from the 2005 Acquisitions.
Of the non-vested stock granted, 45,000 shares vest 50%
on the first anniversary of the grant date and 50% on the
second anniversary of the grant date, and the remaining
15,000 non-vested shares granted vest 50% on the first
anniversary of the grant date and 50% eighteen months
from the grant date. In addition to the non-vested stock the
Company issued in conjunction with its 2005 Acquisitions,
in 2006, the Company awarded shares of non-vested stock
pursuant to the 2005 Plan to a certain senior member of
management that vests upon achieving certain employee
retention goals. If the retention goals are not achieved, no
shares will be awarded and no compensation cost will
be recognized and any previously recognized
compensation cost will be reversed. The following
table summarizes the Company’s non-vested stock
activity as of December 31, 2006:
Number
of Shares
Weighted-
Average
Fair Value
at Grant
Date
Non-vested at December 31, 2005 85,179 $ 26.52
Granted 25,940 35.00
Vested (63,195) 27.61
Forfeited or expired (8,000) 27.82
Non-vested at December 31, 2006 39,924 30.03
Non-vested Stock Units
The Company assumed $2.8 million of non-vested
stock units in conjunction with its 2005 Acquisitions.
The non-vested stock units vest 33.33% at nine, twelve
and eighteen months from the date of grant; however, if
certain performance criteria are met, 33.33% of the non-
vested stock units will vest in fourteen months instead of
eighteen months. In accordance with the provisions of
SFAS No. 123R, the Company will accelerate the expense
recognition of these non-vested stock units when and if it is
determined that it is probable the performance criteria will
be achieved at the earlier date. The number of shares that
will be issued on each vesting date is dependent upon the
Company’s stock price over the five consecutive trading
days prior to the vesting date; provided, however that the
number of shares issued pursuant to the non-vested stock
units will not exceed 280,000 shares. The Company’s
policy is to recognize compensation cost for awards with
only service conditions and a graded vesting schedule
on a straight line basis over the requisite service period
for the entire award. As part of the 2006 Acquisitions, the
Company assumed 175,717 non-vested stock units, of
which the majority vest based on service at a rate of 50%
on the first anniversary of the grant date and 50% on the
second anniversary of the grant date.
In addition, during 2006, the Company awarded certain
senior members of management non-vested stock units
from the 2005 Plan. The number of non-vested stock units
underlying each award is determined one year after the date
of the award based on achievement of a specific corporate
operating income goal. If the performance goal is less than
90% attained, then no non-vested stock units will be issued
pursuant to the authorized award. For performance at and
above 90%, the number of non-vested stock units issued
will be based on a graduated slope, with the maximum
number of non-vested stock units issuable pursuant to the
award capped at 125% of the base number of non-vested