Citrix 2007 Annual Report Download - page 59

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outflow of $17.8 million related to the excess tax benefit due to the exercise of stock-based awards. Also
attributing to these cash inflows is an aggregate increase in cash flow from our operating assets and liabilities of
$40.3 million, net of the effects of acquisitions. Our investing activities used $417.6 million of cash consisting
primarily of the net purchases after reinvestment, from sales and maturities of our available-for-sale investments
of $180.4 million. These cash outflows also consisted of cash paid for our 2007 Acquisitions, net of cash
acquired, of $148.1 million and the expenditure of $85.9 million for the purchase of property and equipment. Our
financing activities used cash of $131.8 million primarily related to $260.0 million of cash paid under our stock
repurchase programs and $8.0 million paid on our debt. These cash outflows are partially offset by $118.4
million in proceeds received from employee stock compensation plans and $17.8 million related to excess tax
benefits from the exercise of stock-based awards.
During 2006, we generated positive operating cash flows of $328.7 million. These cash flows related
primarily to net income of $183.0 million, adjusted for, among other things, non-cash charges including
depreciation and amortization of $63.6 million, stock-based compensation expense of $61.6 million and the tax
effect of stock-based compensation of $40.6 million. These cash inflows are partially offset by an operating cash
outflow of $51.9 million related to the excess tax benefit due to the exercise of stock-based awards and a deferred
income tax benefit of $4.4 million. Also attributed to these cash inflows is an aggregate increase in cash flow
from our operating assets and liabilities of $24.6 million, net of the effects of acquisitions. Our investing
activities used $437.3 million of cash consisting primarily of the net purchases after reinvestment, from sales and
maturities of our available-for-sale investments of $323.7 million. These cash outflows also consisted of cash
paid for the 2006 Acquisitions, net of cash acquired, of $61.5 million and the expenditure of $52.1 million for the
purchase of property and equipment. Our financing activities used cash of $26.4 million primarily related to
$274.2 million of cash paid under our stock repurchase programs and $34.9 million paid on our debt. These cash
outflows are partially offset by $230.7 million in proceeds received from employee stock compensation plans and
$51.9 million related to excess tax benefits from the exercise of stock-based awards.
Historically, significant portions of our cash inflows were generated by our operations. We currently expect
this trend to continue throughout 2008. We believe that our existing cash and investments together with cash
flows expected from operations will be sufficient to meet expected operating and capital expenditure
requirements for the next 12 months. We continue to search for suitable acquisition candidates and could acquire
or make investments in companies we believe are related to our strategic objectives. We could from time to time
seek to raise additional funds through the issuance of debt or equity securities for larger acquisitions.
Cash and Investments
Year Ended December 31, 2007
Compared to
20062007 2006
(In thousands)
Cash and investments .................... $ 798,510 $ 743,381 $ 55,129
The increase in cash and investments at December 31, 2007 as compared to December 31, 2006, is primarily
due to an increase in cash from operations and proceeds received from employee stock-based compensation
plans, partially offset by an increase in cash paid for acquisitions and capital expenditures. We generally invest
our cash and cash equivalents in investment grade, highly liquid securities to allow for flexibility in the event of
immediate cash needs. Our short-term and long-term investments primarily consist of interest-bearing securities.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and
Capital Resources” and Note 4 to our consolidated financial statements included in this Annual Report on Form
10-K for the year ended December 31, 2007 for further information.
In February 2008, we held approximately $45.5 million in triple-A rated municipal auction rate securities
whose underlying assets are generally student loans which are substantially backed by the federal government.
The market for municipal auction rate securities in our portfolio began experiencing auction failures on
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