Citrix 2007 Annual Report Download - page 103

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
were achieved, and the shares were awarded. 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
vested 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 vested 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 vested 50% on the first
anniversary of the grant date and 50% eighteen months from the grant date. All remaining shares of non-vest
stock granted in conjunction with the 2005 Acquisitions either vested or expired in 2007 and are reflected in the
table below. The following table summarizes the Company’s non-vested stock activity as of December 31, 2007:
Number of
Shares
Weighted-
Average
Fair Value
at Grant Date
Non-vested at December 31, 2006 ................ 39,924 $ 30.03
Granted ..................................... 1,284,139 39.65
Vested ...................................... (36,326) 29.85
Forfeited .................................... (3,598) 26.17
Non-vested at December 31, 2007 ................ 1,284,139 39.65
For the years ended December 31, 2007 and 2006, the Company recognized stock-based compensation
expense of $3.9 million and $1.4 million, respectively, related to non-vested stock. As of December 31, 2007,
there was $39.3 million of total unrecognized compensation cost related to non-vested stock. That cost is
expected to be recognized over a weighted-average period of 2.80 years.
Non-vested Stock Units
The Company assumed 159,342 non-vested stock units in conjunction with its 2007 Acquisitions the
majority of which vest over three years based on service at a rate of 33.3% on each anniversary date. In addition,
as part of its 2007 Acquisitions, the Company also granted 26,183 non-vested stock units from its 2005 Plan, 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. 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. The Company assumed $2.8 million of
non-vested stock units in conjunction with its 2005 Acquisitions. The non-vested stock units vested 33.33% at
nine, twelve and eighteen months from the date of grant. The number of shares that were issued on each vesting
date was 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 did not exceed
280,000 shares. All remaining non-vested stock units granted in conjunction with the 2005 Acquisitions vested in
2007 and are reflected in the table below.
During 2007 and 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 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 stock
units set forth in the executive’s award agreement. If the performance goal is met, the non-vested stock units will
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