Citrix Systems (CTXS) 10-K 24 Feb 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	Dec. 31, 2009		Dec. 31, 2008
Current assets:
Cash and cash equivalents	$261,443		$326,121
Short-term investments - available-for-sale	338,168		249,175
Accounts receivable, net of allowances of $4,836 and $8,702 at December 31, 2009 and 2008, respectively	304,912		231,296
Inventories, net	8,664		11,226
Prepaid expenses and other current assets	71,519		84,530
Current portion of deferred tax assets, net	54,589		37,792
Total current assets	1,039,295		940,140
Long-term investments - trading	38,689		37,919
Long-term investments - available-for-sale	568,957		237,666
Property and equipment, net	247,703		254,334
Goodwill	899,819		904,504
Other intangible assets, net	213,195		270,222
Long-term portion of deferred tax assets, net	37,944		12,936
Other assets	45,545		36,585
Total assets	3,091,147		2,694,306
Current liabilities:
Accounts payable	57,352		46,672
Accrued expenses and other current liabilities	221,498		195,550
Current portion of deferred revenues	555,514		488,695
Total current liabilities	834,364		730,917
Long-term portion of deferred revenues	63,336		44,780
Other liabilities	4,940		744
Stockholders' equity:
Preferred stock at $.01 par value: 5,000 shares authorized, none issued and outstanding	0		0
Common stock at $.001 par value: 1,000,000 shares authorized; 264,831 and 255,755 shares issued at December 31, 2009 and 2008, respectively	265		256
Additional paid-in capital	2,587,727		2,305,187
Retained earnings	1,578,084		1,387,067
Accumulated other comprehensive loss	(2,060)		(15,852)
Stockholders Equity Subtotal Before Treasury Stock, Total	4,164,016		3,676,658
Less - common stock in treasury, at cost (82,222 and 75,699 shares at December 31, 2009 and 2008, respectively)	(1,975,509)		(1,758,793)
Total stockholders' equity	2,188,507	[1]	1,917,865
Liabilities and Stockholders' Equity, Total	$3,091,147		$2,694,306
[1]Amounts do not sum due to rounding.

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Thousands, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowances	$4,836	$8,702
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	0.001	0.001
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	264,831	255,755
Common stock in treasury, shares	82,222	75,699

Statement Of Income

Statement Of Income (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Product licenses	$538,975	$620,215	$577,144
License updates	604,968	559,340	484,669
Online services	308,177	260,065	213,744
Technical services	161,968	143,734	116,385
Total net revenues	1,614,088	1,583,354	1,391,942
Cost of net revenues:
Cost of product license revenues	52,160	47,801	42,984
Cost of services revenues	87,233	79,303	65,027
Amortization of product related intangible assets	47,917	48,028	29,596
Total cost of net revenues	187,310	175,132	137,607
Gross margin	1,426,778	1,408,222	1,254,335
Operating expenses:
Research and development	281,980	288,109	205,103
Sales, marketing and services	679,053	669,569	590,409
General and administrative	239,623	256,679	229,229
Restructuring	26,473	0	0
Amortization of other intangible assets	20,972	22,724	17,387
In-process research and development	0	1,140	9,800
Total operating expenses	1,248,101	1,238,221	1,051,928
Income from operations	178,677	170,001	202,407
Interest income	14,683	31,506	49,704
Interest expense	(426)	(444)	(737)
Other income (expense), net	958	(4,140)	(466)
Income before income taxes	193,892	196,923	250,908
Income taxes	2,875	18,647	36,425
Net income	$191,017	$178,276	$214,483
Earnings per share:
Basic	1.05	0.97	1.18
Diluted	1.03	0.96	1.14
Weighted average shares outstanding:
Basic	181,805	183,023	181,501
Diluted	184,985	186,682	187,380

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands	Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Common Stock in Treasury		Total
Beginning Balance at Dec. 31, 2006	$238	$1,655,530	$1,006,706	$4,180	($1,202,365)		$1,464,289
Beginning Balance (in shares) at Dec. 31, 2006	238,156				(59,465)
Impact of adoption of FIN No. 48 on accumulated retained earnings on January 1, 2007			(12,398)				(12,398)
Shares issued under stock-based compensation plans (in shares)	6,788
Shares issued under stock-based compensation plans	7	113,002					113,009
Stock-based compensation expense		64,666					64,666
Common stock issued under employee stock purchase plan (in shares)	198
Common stock issued under employee stock purchase plan		5,386					5,386
Tax benefit from employer stock plans		15,529					15,529
Common stock issued related to acquisitions (in shares)	7,059
Common stock issued related to acquisitions	7	232,268					232,275
Stock repurchases (in shares)					(5,376)
Stock repurchases		40,000			(212,114)		(172,114)
Tender offer		(515)					(515)
Cash paid in advance for stock repurchase contracts		(87,856)					(87,856)
Unrealized gain (loss) on forward contracts net of reclassification adjustments and net of taxes				1,521			1,521
Unrealized gain (loss) on available-for-sale securities, net of tax				50			50
Net income			214,483				214,483
Ending Balance (in shares) at Dec. 31, 2007	252,201				(64,841)
Ending Balance at Dec. 31, 2007	252	2,038,010	1,208,791	5,751	(1,414,479)		1,838,325
Shares issued under stock-based compensation plans (in shares)	3,132
Shares issued under stock-based compensation plans	3	44,369					44,372
Stock-based compensation expense		122,293					122,293
Common stock issued under employee stock purchase plan (in shares)	422
Common stock issued under employee stock purchase plan	1	12,519					12,520
Tax benefit from employer stock plans		140					140
Stock repurchases (in shares)					(10,858)
Stock repurchases		87,856			(344,314)		(256,458)
Unrealized gain (loss) on forward contracts net of reclassification adjustments and net of taxes				(8,416)			(8,416)
Unrealized gain (loss) on available-for-sale securities, net of tax				(13,187)			(13,187)
Net income			178,276				178,276
Ending Balance (in shares) at Dec. 31, 2008	255,755				(75,699)
Ending Balance at Dec. 31, 2008	256	2,305,187	1,387,067	(15,852)	(1,758,793)		1,917,865
Shares issued under stock-based compensation plans (in shares)	8,491
Shares issued under stock-based compensation plans	8	165,990					165,998
Stock-based compensation expense		109,212					109,212
Common stock issued under employee stock purchase plan (in shares)	585
Common stock issued under employee stock purchase plan	1	15,251					15,252
Tax benefit from employer stock plans		(7,913)					(7,913)
Stock repurchases (in shares)					(6,476)
Stock repurchases					(214,944)		(214,944)
Restricted shares turned in for tax withholding (in shares)					(47)
Restricted shares turned in for tax withholding					(1,773)		(1,773)
Unrealized gain (loss) on forward contracts net of reclassification adjustments and net of taxes				7,295			7,295
Unrealized gain (loss) on available-for-sale securities, net of tax				8,955			8,955
Other comprehensive loss on pension liability, net of tax				(2,458)			(2,458)
Net income			191,017				191,017
Ending Balance (in shares) at Dec. 31, 2009	264,831				(82,222)
Ending Balance at Dec. 31, 2009	$265	$2,587,727	$1,578,084	($2,060)	($1,975,509)	[1]	$2,188,507	[1]
[1]Amounts do not sum due to rounding.

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities
Net income	$191,017	$178,276	$214,483
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	68,889	70,752	46,983
Depreciation and amortization of property and equipment	69,688	52,954	38,214
Stock-based compensation expense	111,419	124,615	65,491
In-process research and development	0	1,140	9,800
Loss (gain) on available-for-sale investments	(67)	1,265	0
Benefit related to adjustment of payroll taxes	0	(6,428)	0
Provision for doubtful accounts	1,734	1,613	2,578
Provision for product returns	3,292	2,103	3,517
Provision for inventory reserves	1,961	674	3,351
Deferred income tax benefit	(50,850)	(6,843)	(634)
Tax effect of stock-based compensation	(7,913)	140	15,529
Excess tax benefit from exercise of stock options	(5,182)	(5,559)	(17,753)
Goodwill adjustment	5,393	0	0
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies	2,019	1,041	(142)
Other non-cash items	4,988	2,940	2,231
Total adjustments to reconcile net income to net cash provided by operating activities	205,371	240,407	169,165
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(74,604)	(10,975)	(19,645)
Inventories	601	(2,271)	(6,316)
Prepaid expenses and other current assets	(3,055)	2,615	(24,157)
Other assets	(487)	(10,335)	(6,829)
Deferred tax assets, net	10,470	1,206	63,397
Accounts payable	4,613	(6,808)	5,382
Accrued expenses and other current liabilities	62,900	(15,337)	14,340
Income tax payable	0	0	(12,239)
Deferred revenues	85,373	90,789	86,815
Other liabilities	1,775	(5,460)	(62,121)
Total changes in operating assets and liabilities, net of effects of acquisitions	87,586	43,424	38,627
Net cash provided by operating activities	483,974	462,107	422,275
Investing activities
Purchases of available for-sale investments	(1,134,580)	(591,919)	(639,414)
Proceeds from sales of available-for-sale investments	436,223	333,945	153,759
Proceeds from maturities of available-for-sale investments	284,916	348,839	305,278
Proceeds from repayments of trading securities	700	0	0
Purchases of property and equipment	(76,246)	(181,046)	(85,919)
Purchases of other assets	(7,250)	0	0
Cash paid for acquisitions, net of cash acquired	(3,338)	(28,023)	(148,055)
Cash paid for licensing agreements and product related intangible assets	(3,290)	(40,418)	(3,250)
Net cash used in investing activities	(502,865)	(158,622)	(417,601)
Financing activities
Proceeds from issuance of common stock under stock-based compensation plans	165,998	44,372	118,395
Excess tax benefit from exercise of stock options	5,182	5,559	17,753
Stock repurchases, net	(214,944)	(256,458)	(259,970)
Other	(1,773)	0	0
Payments on debt	0	(407)	(8,000)
Net cash used in financing activities	(45,537)	(206,934)	(131,822)
Effect of exchange rate changes on cash and cash equivalents	(250)	5,821	1,843
Change in cash and cash equivalents	(64,678)	102,372	(125,305)
Cash and cash equivalents at beginning of year	326,121	223,749	349,054
Cash and cash equivalents at end of year	261,443	326,121	223,749
Supplemental Cash Flow Information
Non-cash financing activity-Fair value of stock issued in connection with acquisitions	0	0	232,275
Cash paid for income taxes	31,367	28,591	43,064
Cash paid for interest	$211	$196	$247

ORGANIZATION

ORGANIZATION
	12 Months Ended Dec. 31, 2009 USD / shares
ORGANIZATION	1. ORGANIZATION Citrix Systems, Inc. is a Delaware corporation founded on April 17, 1989. The Company designs, develops and markets technology solutions that enable IT services to be securely delivered on demand independent of location, device or network powered by the Companys virtual computing infrastructure. The Companys customers achieve lower IT operating costs, increased information security, and greater business agility using the Companys technologies that virtualize business meetings, user support, client hardware, desktop operating systems, applications, networks, server hardware and cloud services. The Company markets and licenses its products directly to enterprise customers, over the web, and through systems integrators, or SIs, in addition to indirectly through value-added resellers, or VARs, value-added distributors, or VADs, and original equipment manufacturers, or OEMs.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Consolidation Policy The consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries in the Americas, Europe, the Middle East and Africa (EMEA), Asia-Pacific and the Online Services division. All significant transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents at December31, 2009 and 2008 include marketable securities, which are primarily money market funds, commercial paper, agency and government securities, municipal securities and corporate securities with initial or remaining contractual maturities when purchased of three months or less. Investments Short-term and long-term investments at December31, 2009 and 2008 primarily consist of agency securities, corporate securities, municipal securities, government securities and commercial paper. Investments classified as available-for-sale are stated at fair value with unrealized gains and losses, net of taxes, reported in accumulated other comprehensive loss. Investments classified as trading securities are stated at fair value with unrealized gains and losses reported in earnings. The Company classifies its available-for-sale investments as current and non-current based on their actual remaining time to maturity. The Company does not recognize changes in the fair value of its available-for-sale investments in income unless a decline in value is considered other-than-temporary in accordance with the authoritative guidance. In April 2009, the Financial Accounting Standards Board (the FASB) amended the existing guidance on determining whether an impairment for investments in debt securities is other-than-temporary. The Company adopted the new guidance in the second quarter of 2009 and there was no material impact to the Companys results of operations upon adoption The Companys investment policy is designed to limit exposure to any one issuer depending on credit quality. The Company uses information provided by third parties to adjust the carrying value of certain of its investments to fair value at the end of each period. Fair values are based on valuation models that use market quotes and, for certain investments, assumptions as to the creditworthiness of the entities issuing those underlying instruments. Accounts Receivable The Companys accounts receivable are due primarily from value-added resellers, distributors and end customers. Collateral is not required. The Company also maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Companys customers to make payments. The Company periodically reviews these estimated allowances, including an analysis of the customers payment history and creditworthiness. The allowance for doubtful accounts was $3.2 million and $7.1 million as of December31, 2009 and 2008, respectively. If the financial condition of a significant distributor or customer were to deteriorate, the Companys operating results could be adversely affected. One distributor, Ingram Micro, accounted for 14% of gross accounts receivable at De

ACQUISITIONS

ACQUISITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITIONS	3. ACQUISITIONS 2008 Acquisition In October 2008, the Company acquired all of the issued and outstanding securities of Vapps, Inc. (Vapps), a privately held Delaware corporation headquartered in Hoboken, New Jersey. Vapps offers high quality audio conferencing solutions to small and medium sized businesses and enterprise and service provider markets that complement the Companys online services products. The total consideration for this transaction was approximately $27.8 million in cash, including $1.0 million in transaction costs. In addition, if certain financial and operational milestones are achieved by the Vapps business, contingent consideration of up to approximately $3.2 million may be earned. The sources of funds for this transaction consisted of available cash and investments. In addition, the Company assumed approximately 0.1million unvested stock options upon the closing of the transaction. Revenues from Vapps are included in the Companys Online Services revenue. In connection with the Vapps Acquisition, the Company allocated $19.9 million to goodwill, $8.2 million to product related technologies and $2.6 million to other intangible assets. The goodwill related to the Vapps acquisition was allocated to the Companys Online Services segment and is not deductible for tax purposes. 2007 Acquisitions During 2007, the Company acquired all of the issued and outstanding capital stock of two privately held companies, Ardence Delaware Inc., a leading provider of solutions that allow information technology administrators to set up and configure PCs, servers, and Web servers in real time from a centrally managed source, and XenSource, Inc., a privately held leader in enterprise-grade virtual infrastructure solutions (the 2007 Acquisitions). The total consideration for the 2007 Acquisitions was approximately $379.4 million, comprised of approximately 7.1million shares of the Companys common stock valued at $232.3 million, $142.8 million in cash and approximately $4.3 million in direct transaction costs. In addition, in connection with the 2007 Acquisitions, the Company issued approximately 1.3million unvested shares of its common stock and 0.1million non-vested stock units and assumed approximately 3.4million stock options each of which became exercisable for the right to receive one share of the Companys common stock upon vesting. Revenues from the products acquired in the 2007 Acquisitions are primarily included in the Companys Product License revenue. The 2007 Acquisitions results of operations have been included in the Companys consolidated results of operations beginning after the date of the respective acquisitions. The source of funds for the cash consideration paid in these transactions consisted of available cash and investments. In connection with the 2007 Acquisitions, the Company allocated $246.2 million to goodwill, $112.3 million to product related intangible assets and $56.3 million to other intangible assets. In-process Research and Development The fair values used in determining the purchase price allocation for certain intangible assets for the Companys acquisitions were based on estimated discounted future

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS	4. INVESTMENTS Available-for-sale Investments Investments in available-for-sale securities at fair value were as follows for the years ended December31, (in thousands): 2009 2008 Description of the Securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses FairValue Amortized Cost Gross Unrealized Gains Gross Unrealized Losses FairValue Agency securities $ 507,443 $ 1,412 $ (781 ) $ 508,074 $ 258,574 $ 2,291 $ (1,074 ) $ 259,791 Corporate securities 315,239 1,255 (5,295 ) 311,199 164,255 295 (14,775 ) 149,775 Municipal securities 31,177 25 (8 ) 31,194 39,646 132 (17 ) 39,761 Government securities 30,269 146 (70 ) 30,345 28,450 263 (52 ) 28,661 Commercial paper 26,314 (1 ) 26,313 4,274 9 4,283 Other 2,594 2,594 Money market funds 1,976 1,976 Total $ 910,442 $ 2,838 $ (6,155 ) $ 907,125 $ 499,769 $ 2,990 $ (15,918 ) $ 486,841 The change in net unrealized gains (losses) on available-for-sale securities recorded in other comprehensive income includes unrealized gains (losses) that arose from changes in market value of specifically identified securities that were held during the period and gains (losses) that were previously unrealized, but have been recognized in current period net income due to sales or maturities of available-for-sale securities. This reclassification has no effect on total comprehensive income or stockholders equity and was immaterial for all periods presented. The average remaining maturities of the Companys short-term and long-term available-for-sale investments at December31, 2009 were approximately six months and 10 years, respectively. Realized Losses on Available-for-sale Investments For the years ended December31, 2009 and 2008, the Company had realized gains on the sales of available-for-sale investments of $0.6 million and $0.4 million, respectively. For the years ended December31, 2009 and 2008, the Company had realized losses on the sales of available- for-sale investments of $0.1 million in both periods. In 2008, the Company also recognized an other-than-temporary loss on available-for-sale investments of approximately $1.1 million related to an investment in the Companys portfolio due to the bankruptcy of Lehman Brothers Holdings. All realized gains and losses related to the sales of available-for-sale investments are included in other income (expense), net, in the accompanying consolidated statements of income. The Company continues to monitor its overall investment portfolio and if the credit ratings of the issuers of its investments deteriorate or if the issuers experience financial difficulty, including bankruptcy, the Company may be required to make additional adjustments to the carrying value of the securi

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS On January1, 2008, the Company adopted the authoritative guidance for fair value measurements for financial assets and financial liabilities. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis AsofDecember31, 2009 Quoted PricesIn ActiveMarkets forIdentical Assets(Level1) Significant Other Observable Inputs(Level2) Significant Unobservable Inputs(Level3) (In thousands) Short-term investmentsavailable-for-sale $ 338,168 $ 338,168 $ $ Prepaid expenses and other current assets 8,981 8,981 Other assets 6,048 6,048 Long-term investmentstrading 38,689 38,689 Long-term investmentsavailable-for-sale 568,957 523,861 45,096 Accrued expenses and other current liabilities 4,141 4,141 The Company measures its cash flow hedges, which are classified as prepaid expenses and other current assets and accrued expenses and other current liabilities, at fair value based on indicative prices in active markets and generally measures its investments in available-for-sale securities at fair value based on quoted prices in active markets for identical securities. Due to the illiquidity in the municipal auction rate securities market caused by failed auctions, the Companys valuation technique for certain of its municipal auction rate securities was to measure such securities at fair value using a discounted cash flow model. In its discounted cash flow model, the Company used several assumptions to derive a fair value for its investments in municipal auction rate securities, including a discount rate based on the credit quality of the underlying investments and a factor to further discount the investments for the illiquidity currently present in the market for these securities. Accordingly, these trading investments are included in Level 3. Also included in Level 3 is

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses consist of the following: December31, 2009 2008 (In thousands) Accrued compensation and employee benefits $ 80,090 $ 58,081 Accrued taxes 70,047 51,624 Other accrued expenses 71,361 85,845 $ 221,498 $ 195,550

EMPLOYEE STOCK-BASED COMPENSATI

EMPLOYEE STOCK-BASED COMPENSATION AND BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
EMPLOYEE STOCK-BASED COMPENSATION AND BENEFIT PLANS	7. EMPLOYEE STOCK-BASED COMPENSATION AND BENEFIT PLANS Plans The Companys stock-based compensation program is a broad based, long-term retention program that is intended to attract and reward talented employees and align stockholder and employee interests. As of December31, 2009, the Company had two stock-based compensation plans under which it was granting stock options and non-vested stock units. The Company is currently granting stock-based awards from its 2005 Equity Incentive Plan (as amended, the 2005 Plan) and its 2005 Employee Stock Purchase Plan (the 2005 ESPP). In connection with certain of the Companys acquisitions, the Company has assumed several plans from the acquired companies. The Companys Board of Directors has provided that no new awards will be granted under the Companys acquired stock plans. The Companys superseded and expired stock plans include the Amended and Restated 1995 Stock Plan, Second Amended and Restated 2000 Director and Officer Stock Option and Incentive Plan, Second Amended and Restated 1995 Non-Employee Director Stock Option Plan and Third Amended and Restated 1995 Employee Stock Purchase Plan. Awards previously granted under these plans and still outstanding typically expire ten years from the date of grant and will continue to be subject to all the terms and conditions of such plans, as applicable. Under the terms of the 2005 Plan, the Company is authorized to grant incentive stock options (ISOs), non-qualified stock options (NSOs), non-vested stock, non-vested stock units, stock appreciation rights (SARs), and performance units and to make stock-based awards to full and part-time employees of the Company and its subsidiaries or affiliates, where legally eligible to participate, as well as consultants and non-employee directors of the Company. Currently, the 2005 Plan provides for the issuance of a maximum of 32,100,000 shares of common stock. Under the 2005 Plan, ISOs must be granted at exercise prices no less than fair market value on the date of grant, except for ISOs granted to employees who own more than 10% of the Companys combined voting power, for which the exercise prices must be no less than 110% of the fair market value at the date of grant. NSOs and SARs must be granted at no less than fair market value on the date of grant, or in the case of SARs in tandem with options, at the exercise price of the related option. Non-vested stock awards may be granted for such consideration in cash, other property or services, or a combination thereof, as determined by the Companys Compensation Committee of its Board of Directors. All stock-based awards, other than the long-term incentive awards discussed below, are exercisable or issuable upon vesting. The Companys policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. As of December31, 2009, there were 35,537,423 shares of common stock reserved for issuance pursuant to the Companys stock-based compensation plans and the Company had authorization under its 2005 Plan to grant 12,614,567 additional stock-based awar

CAPITAL STOCK

CAPITAL STOCK
	12 Months Ended Dec. 31, 2009 USD / shares
CAPITAL STOCK	8. CAPITAL STOCK Stock Repurchase Programs The Companys Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority granted to the Company of $2.1 billion. The Company may use the approved dollar authority to repurchase stock at any time until the approved amount is exhausted. The objective of the Companys stock repurchase program is to improve stockholders returns. At December31, 2009, approximately $160.3 million was available to repurchase common stock pursuant to the stock repurchase program. All shares repurchased are recorded as treasury stock. A portion of the funds used to repurchase stock over the course of the program was provided by proceeds from employee stock option exercises and the related tax benefit. The Company is authorized to make open market purchases of its common stock using general corporate funds. Additionally, from time to time, the Company has 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. During the year ended December31, 2009, the Company expended approximately $214.9 million on open market purchases, repurchasing 6,475,830 shares of outstanding common stock at an average price of $33.19. In addition, as of December31, 2009, the Company did not have any prepaid notional amounts remaining under its structured stock repurchase programs and during the year it did not make any up-front payments to financial institutions related to structured stock repurchase agreements. During the year ended December31, 2008, the Company took delivery of 4,406,757 shares at an average price of $33.30 per share from its structured repurchase agreements and it expended approximately $197.6 million on open market purchases, repurchasing 6,451,591 shares of outstanding common stock at an average price of $30.63. In addition, during the year the Company made up-front payments of $58.9 million to certain financial institutions related to structured stock repurchase agreements. During the year ended December31, 2007, the Company took delivery of 1,655,089 shares at an average price of $35.34 per share from its structured repurchase agreements and it expended approximately $150.0 million on open market purchases repurchasing 3,720,800 shares of outstanding common stock at an average price of $40.31. In addition, during the year the Company made up-front payments of $110.0 million to certain financial institutions related to structured stock repurchase agreements. Restricted Shares for Tax Withholding During the year ended December31, 2009, the Company repurchased 46,732 shares totaling $1.8 million to satisfy tax withholding obligations that arose on the vesting of shares of unvested stock units. These shares are reflected as treasury stock in the Co

LONG-TERM DEBT

LONG-TERM DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
LONG-TERM DEBT	9. LONG-TERM DEBT Credit Facility Effective on August9, 2005, the Company entered into a revolving credit facility (the Credit Facility) with a group of financial institutions (the Lenders). Effective September27, 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 September27, 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, as amended, 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 Companys 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 aggregate amount available under the Credit Facility, as amended, and the level of the Companys total debt and its adjusted EBITDA. Borrowings under the Credit Facility, as amended, are guaranteed by the Company and certain of the Companys U.S. and foreign subsidiaries, which guarantees are secured by a pledge of shares of certain foreign subsidiaries. As of December31, 2009, there were no amounts outstanding under the Credit Facility, as amended. The Credit Facility, as amended, contains customary default provisions, and the Company must comply with various financial and non-financial covenants. The financial covenants consist of a minimum interest coverage ratio and a maximum consolidated leverage ratio. The primary non-financial covenants contain certain limits on the Companys ability to pay dividends, conduct certain mergers or acquisitions, make certain investments and loans, incur future indebtedness or liens, alter the Companys capital structure or sell stock or assets. As of December31, 2009, the Company was in compliance with all covenants of the Credit Facility.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Leases The Company leases certain office space and equipment under various operating leases. In addition to rent, the leases require the Company to pay for taxes, insurance, maintenance and other operating expenses. Certain of these leases contain stated escalation clauses while others contain renewal options. The Company recognizes rent expense on a straight-line basis over the term of the lease, excluding renewal periods, unless renewal of the lease is reasonably assured. Rental expense for the years ended December31, 2009, 2008 and 2007 totaled approximately $48.7 million, $43.5 million and $33.5 million, respectively. Sublease income for the years ended December31, 2009, 2008 and 2007 was approximately $0.1 million, $0.8 million and $0.8 million, respectively. Lease commitments under non-cancelable operating leases with initial or remaining terms in excess of one year and sublease income associated with non-cancelable subleases, are as follows: Operating Leases Sublease Income (In thousands) Years ending December 31, 2010 $ 48,123 $ 369 2011 46,578 336 2012 40,318 241 2013 31,874 198 2014 29,553 Thereafter 54,846 $ 251,292 $ 1,144 In 2008, the Company entered into a lease to acquire additional office space in Santa Clara, CA. The rental commencement date will not begin until 2011 and the pricing for the lease will not be finalized until a future date. Accordingly, the future payment obligations related to this lease are not included in the table above. Office Leases The Company has an operating lease obligation related to a property that is not fully utilized that continues to 2018 with a total remaining obligation at December31, 2009 of approximately $4.9 million, of which $1.0 million was accrued as of December31, 2009, and is reflected in accrued expenses and other liabilities in the accompanying consolidated balance sheets. In calculating this accrual, the Company made estimates, based on market information, including the estimated vacancy periods and sublease rates and opportunities. The Company periodically re-evaluates its estimates related to this vacant facility. Legal Matters Due to the nature of the Companys business, it is subject to patent infringement claims, including current suits against it or one or more of its wholly-owned subsidiaries alleging infringement by various Citrix products and services. The Company believes that it has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, it is unable currently to determine the ultimate outcome of these or similar matters or the potential exposure to loss, if any. In addition, the Company is a defendant in various litigation matters generally arising out of the normal course of business. Although it is difficult to predict the ultimate outcomes of these cases, the Company believes that the ultimate outcomes will not materially affect its business, financial position, results of operations or cash flows.

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	11. INCOME TAXES The United States and foreign components of income before income taxes are as follows: 2009 2008 2007 (In thousands) United States $ 16,434 $ (13,997 ) $ 46,475 Foreign 177,458 210,920 204,433 Total $ 193,892 $ 196,923 $ 250,908 The components of the provision for income taxes are as follows: 2009 2008 2007 (In thousands) Current: Federal $ 25,065 $ 6,315 $ 7,692 Foreign 21,747 19,175 28,512 State 6,913 855 Total current 53,725 25,490 37,059 Deferred (50,850 ) (6,843 ) (634 ) Total provision $ 2,875 $ 18,647 $ 36,425 The significant components of the Companys deferred tax assets and liabilities consisted of the following: December31, 2009 2008 (In thousands) Deferred tax assets: Accruals and reserves $ 23,687 $ 15,847 Depreciation and amortization (3,316 ) 696 Deferred revenue 15,694 8,511 Tax credits 29,723 5,272 Net operating losses 42,871 54,381 Other 3,794 14,819 Stock option compensation 44,517 43,246 Valuation allowance (8,680 ) (14,217 ) Total deferred tax assets 148,290 128,555 Deferred tax liabilities: Acquired technology (42,579 ) (67,332 ) Prepaid expenses (13,178 ) (10,495 ) Total deferred tax liabilities (55,757 ) (77,827 ) Total net deferred tax assets $ 92,533 $ 50,728 The authoritative guidance requires a valuation allowance to reduce the deferred tax assets reported if it is not more likely than not that some portion or all of the deferred tax assets will be realized. At December31, 2009, the Company determined that a $8.7 million valuation allowance relating to deferred tax assets for net operating losses from acquired companies and unrealized losses from temporary impairments on available-for-sale investments was necessary. The Company does not expect to remit earnings from its foreign subsidiaries. Undistributed earnings of the Companys foreign subsidiaries amounted to approximately $866.6 million at December31, 2009. Those earnings are considered to be permanently reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company could be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. At December31, 2009, the Company had $111.0 million of remaining net operating loss carry forwards from acquisitions. The utilization of these net operating loss carry forwards are limited in any one year pursuant to Internal Revenue C

SEGMENT INFORMATION AND SIGNIFI

SEGMENT INFORMATION AND SIGNIFICANT CUSTOMERS
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT INFORMATION AND SIGNIFICANT CUSTOMERS	12. SEGMENT INFORMATION AND SIGNIFICANT CUSTOMERS The Company operates in a single industry segment consisting of the design, development marketing, sales and support of access virtualization, networking and software-as-a-service solutions. The Companys revenues are derived from sales of its Desktop Solutions and Datacenter and Cloud Solutions and related technical services in the Americas, EMEA and Asia-Pacific regions and from its online services sold by its Online Services division. These three geographic regions and the Online Services division constitute the Companys four reportable segments. In 2010, the Company will realign the way it evaluates its performance and, as a result, it will change its segment reporting to be consistent with the way it will be internally managing the business. The Company does not engage in intercompany revenue transfers between segments. The Companys chief operating decision maker (CODM) evaluates the Companys performance based primarily on profitability in the geographic locations in which the Company operates and separately evaluates the performance of its Online Services division. Segment profit for each segment includes certain sales, marketing, general and administrative expenses directly attributable to the segment, including research and development costs in the Online Services division and excludes certain expenses that are managed outside the reportable segments. Costs excluded from segment profit primarily consist of certain research and development costs associated with the Companys Desktop Solutions and Datacenter and Cloud Solutions, restructuring charges, stock-based compensation costs, amortization of product related technology, amortization of other intangible assets, interest, corporate expenses and income taxes, as well as charges for in-process research and development. Corporate expenses are comprised primarily of corporate marketing costs, stock-based compensation costs, operations and certain general and administrative expenses, which are separately managed. Accounting policies of the Companys segments are the same as its consolidated accounting policies. International revenues (sales outside of the United States) accounted for approximately 43.6%, 45.8% and 44.5% of the Companys net revenues for the year ended December31, 2009, 2008, and 2007, respectively. Net revenues and segment profit for 2009, 2008 and 2007 classified by the Companys reportable segments, are presented below. 2009 2008 2007 (In thousands) Net revenues: Americas $ 696,205 $ 670,523 $ 614,181 EMEA 480,720 524,465 447,201 Asia-Pacific 128,986 128,301 116,816 Online Services division 308,177 260,065 213,744 Consolidated $ 1,614,088 $ 1,583,354 $ 1,391,942 Segment profit (loss): Americas $ 382,330 $ 340,582 $ 295,213 EMEA 315,859 337,709 289,590 Asia-Pacific 22,526 23,366 30,543 Online Services division 93,748 76,628 65,

RESTRUCTURING

RESTRUCTURING
	12 Months Ended Dec. 31, 2009 USD / shares
RESTRUCTURING	13. RESTRUCTURING During the first quarter of 2009, the Company announced a restructuring program and reduced its headcount by approximately 450 full-time positions. The restructuring program was completed in 2009. Restructuring charges related to the reduction of the Companys headcount and non-cancelable lease costs related to the consolidation and exiting of excess facilities by segment consists of the following for the year ended (in thousands): 2009 Americas $ 16,385 EMEA 7,458 Asia-Pacific 1,617 Online Services division 1,013 Total restructuring charges $ 26,473 Restructuring accruals As of December31, 2009, the $3.5 million in outstanding restructuring liability primarily relates to non-cancelable lease costs related to the consolidation of excess facilities that the Company expects to pay over the lives of the related obligations through fiscal 2012. The activity in the Companys restructuring accruals for the year ended December31, 2009 is summarized as follows (in thousands): Total Balance at January1, 2009 $ Employee severance and related costs 21,634 Non-cancelable lease costs and other charges 3,977 Impairment of tenant improvement, furniture, and fixed assets 862 Payments (22,981 ) Reversal of previous charges Balance at December31, 2009 $ 3,492 As of December31, 2009, restructuring accruals by segment consisted of the following (in thousands): Total Americas $ 3,153 EMEA 135 Asia-Pacific Online services division 204 Total restructuring accruals $ 3,492

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
DERIVATIVE FINANCIAL INSTRUMENTS	14. DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges As of December31, 2009, the Companys derivative assets and liabilities resulted from cash flow hedges related to its forecasted operating expenses transacted in local currencies. A substantial portion of the Companys overseas expenses are and will continue to be transacted in local currencies. To protect against fluctuations in operating expenses and the volatility of future cash flows caused by changes in currency exchange rates, the Company has established a program that uses foreign exchange forward contracts to hedge its exposure to these potential changes. The terms of these instruments, and the hedged transactions to which they relate, generally do not exceed 12 months and the maximum term is 18 months. Generally, when the dollar is weak, foreign currency denominated expenses will be higher, and these higher expenses will be partially offset by the gains realized from the Companys hedging contracts. Conversely, if the dollar is strong, foreign currency denominated expenses will be lower. These lower expenses will in turn be partially offset by the losses incurred from the Companys hedging contracts. The change in the derivative component in accumulated other comprehensive income (loss) includes unrealized gains or losses that arose from changes in market value of the effective portion of derivatives that were held during the period, and gains or losses that were previously unrealized but have been recognized in the same line item as the forecasted transaction in current period net income due to termination or maturities of derivative contracts. This reclassification has no effect on total comprehensive income or stockholders equity. The total cumulative unrealized gain (loss) on cash flow derivative instruments was $4.3 million and $(3.0) million at December31, 2009 and 2008, respectively, and is included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. The net unrealized gain as of December31, 2009 is expected to be recognized in income over the next twelve months at the same time the hedged items are recognized in income. As of December31, 2009, the Company had the following net notional foreign currency forward contracts outstanding (in thousands): Foreign Currency Currency Denomination Australian dollars AUD 30,036 British pounds sterling GBP 24,803 Canadian dollars CAD 5,889 Danish krone DKK 6,216 Euro EUR 42,171 Hong Kong dollars HKD 81,416 Indian rupees INR 868,483 Japanese yen JPY 1,067,100 Singapore dollars SGD 11,925 Swiss francs CHF 14,513 Derivatives not Designated as Hedges The Company utilizes certain derivative instruments that either do not qualify or are not designated for hedge accounting treatment under the authoritative guidance. Accordingly, changes in the fair value of these contracts are recorded in other income (expense), net. A substantial portion of the Companys overseas assets and liabilities are and will continue to be denominated in local currencies. To protect against fluctuations in earnings caus

EARNINGS PER SHARE

EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009 USD / shares
EARNINGS PER SHARE	15. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Year Ended December31, 2009 2008 2007 (Inthousands,exceptper shareinformation) Numerator: Net income $ 191,017 $ 178,276 $ 214,483 Denominator: Denominator for basic earnings per shareweighted 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 shareadjusted 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

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
RECENT ACCOUNTING PRONOUNCEMENTS	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 January1, 2010 and is currently evaluating the impact of adopting this standard. In August 2009, the FASB issued Accounting Standards Update (ASU) No.200905, Measuring Liabilities at Fair Value, (ASU 200905). ASU 200905 amends Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. Specifically, ASU 200905 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 200905 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 Companys financial position or results of operations. In October 2009, the FASB issued ASU No.200913, MultipleDeliverable Revenue Arrangements, (ASU 200913). ASU 200913 amends existing revenue recognition accounting pronouncements that are currently within the scope of FASB ASC Subtopic 605-25. The consensus to Emerging Issues Task Force (EITF) Issue No.081, Revenue Arrangements with Multiple Deliverables, provides accounting principles and application guidance on whether multiple deliverables exist, how the arrangement should be separated, and the consideration allocated. This guidance eliminates the requirement to establish the fair value of undelivered products and services and also eliminates the residual method of allocating arrangement consideration. The new guidance provides for separate revenue recognition based upon managements estimate of the selling price for an undelivered item when there is no other means to determine the fair value of that undelive

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS The Company has evaluated subsequent events through February23, 2010, the date of the issuance of this Annual Report on Form 10-K.

SCHEDULE II VALUATION AND QUALI

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Beginning of Period Charged toCostsand Expenses Charged to Other Accounts Deductions Balance at End ofPeriod (In thousands) 2009 Deducted from asset accounts: Allowance for doubtful accounts $ 7,061 $ 1,734 $ (422 )(3) $ 5,154 (2,3) $ 3,219 Allowance for returns 1,641 3,332 (1) 3,356 (4) 1,617 Valuation allowance for deferred tax assets 14,217 (5,537 ) 8,680 2008 Deducted from asset accounts: Allowance for doubtful accounts $ 2, 891 $ 1,613 $ 3,366 (3) $ 809 (2) $ 7,061 Allowance for returns 1,670 2,103 (1) 2,132 (4) 1,641 Valuation allowance for deferred tax assets 8,364 5,853 (5) 14,217 2007 Deducted from asset accounts: Allowance for doubtful accounts $ 2,370 $ 2,578 $ 23 (3) $ 2,080 (2) $ 2,891 Allowance for returns 1,667 3,806 (1)(3) 3,803 (4) 1,670 Valuation allowance for deferred tax assets 1,332 8,364 (5) 1,332 8,364 (1) Netted against revenues. (2) Uncollectible accounts written off, net of recoveries. (3) Additions and adjustments from acquisitions. (4) Credits issued for stock-balancing rights. (5) Related to deferred tax assets on unrealized losses and acquisitions.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 18, 2010	Jun. 30, 2009
Trading Symbol	CTXS
Entity Registrant Name	CITRIX SYSTEMS INC
Entity Central Index Key	0000877890
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		183,826,978
Entity Public Float			$5,836,991,699