Citrix 2007 Annual Report Download - page 105

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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company is authorized to make open market purchases of its common stock using general corporate
funds. Additionally, the Company entered into structured stock repurchase arrangements with large financial
institutions using general corporate funds in order to lower the average cost to acquire shares. These programs
include terms that require the Company to make up-front payments to the counterparty financial institution and
result in the receipt of stock during or at the end of the term of the agreement or the receipt of either stock or cash
at the maturity of the agreement, depending on market conditions.
The Company made up-front payments of $110.0 million, $114.4 million and $52.2 million to certain
financial institutions, net of cash and premiums received, related to its structured repurchase agreements during
2007, 2006 and 2005, respectively. In addition, during 2007, 2006 and 2005, the Company received cash and
premiums of approximately $40.0 million $41.8 million and $31.1 million, respectively from expired prepaid
programs based upon the terms of the respective agreements. The Company took delivery of 1,655,089 shares at
an average price of $35.34, 4,307,112 shares at an average price of $30.76 and 2,302,217 shares at an average
price of $22.02 from its structured repurchase agreements during 2007, 2006 and 2005, respectively. As of
December 31, 2007, the Company had prepaid notional amounts of approximately $87.9 million remaining under
its structured stock repurchase programs, which expire on various dates through September 2008. Due to the fact
that the total shares to be received under structured repurchase arrangements is not determinable until the
contracts mature, the above price per share amounts exclude the remaining shares to be received subject to these
agreements.
During 2007, the Company expended approximately $150.0 million on open market purchases and
repurchased 3,720,800 shares of outstanding common stock at an average price of $40.31; during 2006, it
expended approximately $159.8 million and repurchased 5,193,410 shares of outstanding common stock at an
average price of $30.77; and during 2005, it expended approximately $122.2 million and repurchased 5,054,400
shares of outstanding common stock at an average price of $24.18.
Preferred Stock
The Company is authorized to issue 5,000,000 shares of preferred stock, $0.01 par value per share. The
Company has no present plans to issue such shares.
8. LONG-TERM DEBT
Credit Facility
Effective on August 9, 2005, the Company entered into a revolving credit facility (the “Credit Facility”)
with a group of financial institutions (the “Lenders”). Effective September 27, 2006, the Company entered into
an amendment and restatement of its Credit Facility (the “Amendment”). The Amendment decreased the overall
range of interest rates the Company must pay on amounts outstanding on the Credit Facility and lowered the
facility fee. In addition, the Amendment extended the term of the Credit Facility. The Credit Facility, as
amended, allows the Company to increase the revolving credit commitment up to a maximum aggregate
revolving credit commitment of $175.0 million. The Credit Facility, as amended, currently provides for a
revolving line of credit that will expire on September 27, 2011 in the aggregate amount of $100.0 million, subject
to continued covenant compliance. A portion of the revolving line of credit (i) in the aggregate amount of $25.0
million may be available for issuances of letters of credit and (ii) in the aggregate amount of $15.0 million may
be available for swing line loans. The Credit Facility currently bears interest at LIBOR plus 0.32% and adjusts in
the range of 0.32% to 0.80% above LIBOR based on the level of the Company’s total debt and its adjusted
earnings before interest, taxes, depreciation and amortization (“EBITDA”) as defined in the agreement. In
addition, the Company is required to pay a quarterly facility fee ranging from 0.08% to 0.20% based on the
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