Citrix 2009 Annual Report Download - page 122

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share:
Year Ended December 31,
2009 2008 2007
(In thousands, except per
share information)
Numerator:
Net income ................................................. $191,017 $178,276 $214,483
Denominator:
Denominator for basic earnings per share—weighted average shares .... 181,805 183,023 181,501
Effect of dilutive securities: ....................................
Employee stock awards ................................... 3,180 3,659 5,879
Denominator for diluted earnings per share—adjusted weighted-average
shares ................................................... 184,985 186,682 187,380
Basic earnings per share ........................................... $ 1.05 $ 0.97 $ 1.18
Diluted earnings per share ......................................... $ 1.03 $ 0.96 $ 1.14
Antidilutive weighted average shares ................................ 16,039 23,979 17,096
16. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R). SFAS
No. 167, which amends FASB Interpretation No. 46 (revised December 2003), Consolidation of Variable
Interest Entities, (“FIN No. 46(R)”), prescribes a qualitative model for identifying whether a company has a
controlling financial interest in a variable interest entity (“VIE”) and eliminates the quantitative model prescribed
by FIN No. 46(R). The new model identifies two primary characteristics of a controlling financial interest: (1) it
provides a company with the power to direct significant activities of the VIE, and (2) obligates a company to
absorb losses of and/or provides rights to receive benefits from the VIE. SFAS No. 167 requires a company to
reassess on an ongoing basis whether it holds a controlling financial interest in a VIE. A company that holds a
controlling financial interest is deemed to be the primary beneficiary of the VIE and is required to consolidate the
VIE. The Company will adopt SFAS No. 167 effective January 1, 2010 and is currently evaluating the impact of
adopting this standard.
In August 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009–05, Measuring
Liabilities at Fair Value, (“ASU 2009–05”). ASU 2009–05 amends Accounting Standards Codification (“ASC”)
Topic 820, Fair Value Measurements. Specifically, ASU 2009–05 provides clarification that in circumstances in
which a quoted price in an active market for the identical liability is not available, a reporting entity is required to
measure fair value using one or more of the following methods: (1) a valuation technique that uses a) the quoted
price of the identical liability when traded as an asset or b) quoted prices for similar liabilities or similar
liabilities when traded as assets and/or (2) a valuation technique that is consistent with the principles of Topic
820 of the ASC (e.g. an income approach or market approach). ASU 2009–05 also clarifies that when estimating
the fair value of a liability, a reporting entity is not required to include inputs relating to the existence of transfer
restrictions on that liability. The adoption of this standard did not have any impact on the Company’s financial
position or results of operations. In October 2009, the FASB issued ASU No. 2009–13, Multiple–Deliverable
Revenue Arrangements, (“ASU 2009–13”). ASU 2009–13 amends existing revenue recognition accounting
F-42