Citrix 2007 Annual Report Download - page 62

average price of $35.34 per share in 2007 and we took delivery of 4,307,112 shares at an average price of $30.76
per share in 2006 from our structured repurchase agreements. As of December 31, 2007, we had prepaid notional
amounts of approximately $87.9 million remaining under our structured stock repurchase programs, which expire
on various dates through September 2008. Due to the fact that the total shares to be received under our structured
repurchase arrangements at December 31, 2007 is not determinable until the contracts mature, the above price
per share amounts exclude the remaining shares to be received subject to the agreements.
During 2007, we 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 and, during 2006, we expended
approximately $159.8 million on open market purchases and repurchased 5,193,410 shares of outstanding
common stock at an average price of $30.77.
Contractual Obligations and Off-Balance Sheet Arrangement
Contractual Obligations
We have certain contractual obligations that are recorded as liabilities in our consolidated financial
statements. Other items, such as operating lease obligations, are not recognized as liabilities in our consolidated
financial statements, but are required to be disclosed in the notes to our consolidated financial statements.
The following table summarizes our significant contractual obligations at December 31, 2007 and the future
periods in which such obligations are expected to be settled in cash. Additional details regarding these
obligations are provided in the notes to our consolidated financial statements (in thousands):
Payments due by period
Total Less than 1 Year 1-3 Years 4-5 Years More than 5 Years
Operating lease obligations ..... $ 204,231 $ 39,968 $ 65,167 $ 45,725 $ 53,371
Synthetic lease obligations ..... 3,005 2,301 704 — —
Purchase obligations(1) ......... 11,100 11,100 — — —
Total contractual obligations(2) . . $ 218,336 $ 53,369 $ 65,871 $ 45,725 $ 53,371
(1) Purchase obligations represent non-cancelable commitments to purchase inventory ordered before year-end.
(2) Total contractual obligations do not include agreements where our commitment is variable in nature or
where cancellations without payment provisions exist and excludes $27.3 million of liabilities related to
uncertain tax positions recorded in accordance with FIN No. 48, because we could not make reasonably
reliable estimates of the period or amount of cash settlement with the respective taxing authorities. See Note
11 to our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2007 for further information.
As of December 31, 2007, we did not have any individually material capital lease obligations or other
material long-term commitments reflected on our consolidated balance sheets.
Off-Balance Sheet Arrangement
During 2002, we became a party to a synthetic lease arrangement totaling approximately $61.0 million for
our corporate headquarters office space in Fort Lauderdale, Florida. The synthetic lease represents a form of
off-balance sheet financing under which an unrelated third party lessor funded 100% of the costs of acquiring the
property and leases the asset to us. The synthetic lease qualifies as an operating lease for accounting purposes
and as a financing lease for tax purposes. We do not include the property as an asset or the lease debt as a
liability on our accompanying consolidated balance sheets. Consequently, payments made pursuant to the lease
are recorded as operating expenses in our consolidated statements of income. We entered into the synthetic lease
in order to lease our headquarters properties under more favorable terms than under our previous lease
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