Citrix 2007 Annual Report Download - page 104

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
vest 33.33% on each anniversary subsequent to the date of the award. Each non-vested stock unit, upon vesting,
will represent the right to receive one share of the Company’s common stock. If the performance goals are not
met, no compensation cost will be recognized and any previously recognized compensation cost will be reversed.
During 2007 and 2006, the goal was achieved within in the range of the graduated slope and there was no
material adjustment to compensation costs related to non-vested stock units granted to executives. In addition,
during 2007, the Company awarded 25,000 non-vested stock units to a certain senior member of management
with performance goals related to building the executive management team. The performance goals were met
during 2007 and the award will vest based on service at a rate of 33.33% on each anniversary date. The Company
also awards non-vested stock units to its non-employee directors annually. These units vest monthly in equal
installments based on service and, upon vesting, each stock unit will represent the right to receive one share of
the Company’s common stock.
The following table summarizes the Company’s non-vested stock unit activity as of December 31, 2007:
Number of
Shares
Weighted-
Average
Fair Value
at Grant Date
Non-vested at December 31, 2006 ................ 240,295 $ 34.54
Granted ..................................... 640,920 36.77
Vested ...................................... (147,861) 35.20
Forfeited .................................... (48,962) 32.79
Non-vested at December 31, 2007 ................ 684,392 37.00
For the years ended December 31, 2007 and 2006, the Company recognized stock-based compensation
expense of $7.0 million and $4.1 million, respectively, related to non-vested stock units. As of December 31,
2007, there was $17.8 million of total unrecognized compensation cost related to non-vested stock units. That
cost is expected to be recognized over a weighted-average period of 2.15 years.
Benefit Plan
The Company maintains a 401(k) benefit plan (the “Plan”) allowing eligible U.S.-based employees to
contribute up to 60% of their annual compensation, limited to an annual maximum amount as set periodically by
the Internal Revenue Service. The Company, at its discretion, may contribute up to $0.50 of each dollar of
employee contribution. The Company’s total matching contribution to an employee is typically made at 3% of
the employee’s annual compensation. The Company’s matching contributions were $5.9 million, $3.7 million
and $2.8 million in 2007, 2006 and 2005, respectively. The Company’s contributions vest over a four-year period
at 25% per year.
7. CAPITAL STOCK
Stock Repurchase Programs
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase
authority granted to the Company of $1.8 billion, of which $300 million was authorized in January 2008. The
Company may use the approved dollar authority to repurchase stock at any time until the approved amounts are
exhausted. The objective of the Company’s stock repurchase program is to improve stockholders’ returns. At
December 31, 2007, approximately $33.5 million was available to repurchase common stock pursuant to the stock
repurchase program. All shares repurchased are recorded as treasury stock. A significant portion of the funds used
to repurchase stock was provided by proceeds from employee stock option exercises and the related tax benefit.
F-30