Citrix 2007 Annual Report Download - page 60

February 13, 2008. For the securities that experienced a failure the issuer will pay interest at a failure rate on the
regular auction date, which is every 28 days for the securities in our portfolio. The securities will not be liquid
until the auctions are successful or the issuers are able to refinance, call and /or restructure their obligations to a
different interest rate mode. In the event we need to access the funds related to the affected securities, we may
not be able to do so without a potential loss of principal unless future auctions on these securities are successful.
If the issuers are unable to successfully close future auctions or refinance their obligations and their credit ratings
deteriorate, we may be required to adjust the carrying value of these securities and recognize an impairment
charge for an other-than-temporary decline in the fair values. Based on our available cash and other investments,
we do not currently anticipate that the lack of liquidity caused by the failed auctions of these securities will have
a material adverse effect on our operating cash flows or financial position.
Restricted Cash Equivalents and Investments
Year Ended December 31, 2007
Compared to
20062007 2006
(In thousands)
Restricted cash equivalents and investments . . $ 63,735 $ 63,815 $ (80)
Restricted cash equivalents and investments as of December 31, 2007 and 2006 are primarily comprised of
approximately $62.8 million in investment securities and cash equivalents pledged as collateral for specified
obligations under our synthetic lease arrangement. We maintain the ability to manage the composition of the
restricted cash equivalents and investments within certain limits and to withdraw and use excess investment
earnings from the pledged collateral for operating purposes. For further information regarding our synthetic
lease, see Note 10 to our consolidated financial statements included in this Annual Report on Form 10-K for the
year ended December 31, 2007.
Accounts Receivable, Net
Year Ended December 31, 2007
Compared to
20062007 2006
(In thousands)
Accounts receivable ..................... $ 230,422 $ 209,011 $ 21,411
Allowance for returns .................... (1,670) (1,667) (3)
Allowance for doubtful accounts ........... (2,891) (2,370) (521)
Accounts receivable, net .................. $ 225,861 $ 204,974 $ 20,887
The increase in accounts receivable at December 31, 2007 compared to December 31, 2006 was primarily
due to an increase in sales, particularly in the last month of 2007 compared to the last month of 2006. Our
allowance for returns remained relatively constant during 2007 as compared to 2006. The activity in our
allowance for returns was comprised of $3.8 million in credits issued for stock balancing rights during 2007
offset by $3.5 million of provisions for returns recorded during 2007 and $0.3 million charged to other accounts.
Our allowance for doubtful accounts increased by $0.5 million when comparing 2007 to 2006. The activity in our
allowance for doubtful accounts was comprised primarily of an additional $2.6 million of provisions for doubtful
accounts recorded during the year partially offset by $2.1 million of uncollectible accounts written off, net of
recoveries. From time to time, we could maintain individually significant accounts receivable balances from our
distributors or customers, which are comprised of large business enterprises, governments and small and
medium-sized businesses. If the financial condition of our distributors or customers deteriorates, our operating
results could be adversely affected. At December 31, 2007 and 2006, no distributor or customer accounted for
more than 10% of our accounts receivable. For more information regarding significant customers see Note 12 to
our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2007.
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