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Form 10-K
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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75-2275152
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer
Identification No.)
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851 West Cypress Creek Road
Fort Lauderdale, Florida 33309
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(Address of principal executive offices, including zip code)
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Common Stock, $.001 Par Value
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The Nasdaq Stock Market LLC
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(Title of each class)
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(Name of each exchange on which registered)
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x
Large accelerated filer
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o
Accelerated filer
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o
Non-accelerated filer (Do not check if a smaller
reporting company)
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o
Smaller reporting company
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o
Emerging growth company
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Part I:
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Item 1
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Item 1A.
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Item 1B.
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Item 2
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Item 3
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Item 4
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Part II:
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Item 5
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Item 6
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Item 7
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Item 7A.
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Item 8
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Item 9
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Item 9A.
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Item 9B.
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Part III:
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Item 10
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Item 11
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Item 12
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Item 13
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Item 14
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Part IV:
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Item 15
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Item 16
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•
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XenDesktop
is a fully-integrated, cloud-enabled desktop virtualization solution that gives customers the flexibility to deliver desktops and applications as a service - from any cloud, on-premises datacenters or both. XenDesktop includes HDX technologies to give users a high-definition experience - even when using multimedia, real-time voice and video collaboration, USB devices and 3D graphics content - while consuming less bandwidth than competing solutions. XenDesktop is available in multiple editions designed for different requirements, from simple VDI-only deployments to sophisticated, enterprise-class desktop and application delivery services that can meet the needs of everything from basic call center environments to high-powered graphics workstations. In XenDesktop Enterprise and Platinum editions, customers also receive XenApp to manage and mobilize Windows applications.
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•
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XenApp
is a widely deployed solution that allows Windows applications to be delivered as services to Android and iOS mobile devices, Macs, PCs and thin clients from any cloud, on-premises datacenter or both. XenApp enables people to work better by running applications in the security of the data center, or cloud, and using HDX technologies to deliver a superior user experience to any device, anywhere. XenApp optimizes the application experience for smartphones, tablets and touchscreen laptops, providing intuitive touch capabilities for the latest generation of devices. Keeping applications under the centralized control of IT administrators enhances data security and reduces the costs of managing applications on every PC. XenApp runs on all current versions of Microsoft Windows Server
and tightly integrates with Microsoft Azure, the Microsoft Desktop Optimization Pack, Microsoft App-V, and Microsoft System Center. Our joint solution with Microsoft lowers the cost of delivering and maintaining Windows applications for all users in the enterprise.
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•
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XenMobile
provides unified endpoint management for a secure digital workspace allowing IT to meet mobile device
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•
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Citrix Workspace
delivers a unified user experience for any app or desktop on any device, including tablets, smartphones, PCs, Macs or thin clients. IT can securely deliver content over low-bandwidth high-latency WANs, highly variable 3G/4G mobile networks or a reliable corporate LAN to improve end-user experience while offering enterprise-grade security to data and applications. Citrix Workspace provides a unified, flexible solution that can streamline device, application and desktop deployment and lifecycle management to reduce IT costs. Citrix Workspace offers choice of device, cloud and network and can be deployed on-premises, via the cloud or as a hosted service.
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•
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NetScaler ADC
is a software-defined application delivery controller, or ADC, and load balancer designed to improve application performance and reliability for mobile, remote and branch users; allow customers to transition their infrastructure to an app-driven, software-defined network; eliminate multiple remote access solutions for improved security; and consolidate data centers for greater efficiency. Additionally, we extend the platform with best-of-breed web application firewall, or WAF, capabilities that protects web applications and sites from both known and unknown attacks, including application-layer and zero-day threats.
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•
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NetScaler SD-WAN
increases the security, performance and reliability of traditional enterprise applications, SaaS applications and virtual desktops for remote users. It is an integrated platform that can help customers effectively and economically increase WAN throughput while accelerating enterprise applications and ensuring the performance and availability of mission critical applications through a hybrid WAN architecture.
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•
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ShareFile
is a secure, cloud-based file sharing and storage solution built for mobile business, giving users enterprise-class data services across all corporate and personal mobile devices, while maintaining total IT control. ShareFile protects data throughout the storage and transfer process, using up to 256-bit encryption and SSL or Transport Layer Security, or TLS encryption protocols for transfer and 256-bit encryption for files at rest on ShareFile servers. Password protection and granular access to folders and files stored with ShareFile ensure that data remains in control of the company. With ShareFile Enterprise, organizations can manage their data on-premises in customer managed StorageZones, select Citrix managed secure cloud options or create a mix of both to meet the needs for data sovereignty, compliance, performance and costs. Additionally, ShareFile supports e-signature, feedback and approval workflows that help businesses adopt the mobile, digital office.
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•
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Customer Success Services
for our software solutions, which gives customers a choice of tiered support offerings that combine the elements of product version upgrades, guidance, enablement, support and proactive monitoring to help our customers and our partners fully realize their business goals and get the most out of their Citrix investments. Additionally, customers may upgrade to receive personalized support from a dedicated team led by an assigned account manager. Fees associated with this offering are recognized ratably over the term of the contract.
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•
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Hardware Maintenance
for our Networking products, which gives customers a choice of tiered support offerings that includes technical support, latest software upgrades, and replacement of malfunctioning appliances to minimize organizational downtime. Additionally, dedicated account management is available as an add-on to the program for an even higher level of service. Fees associated with this offering are recognized ratably over the term of the contract.
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•
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Citrix Consulting
helps guide the successful implementation of Citrix technologies and solutions through the use of proven methodologies, tools and leading practices. Citrix Consulting focuses on strategic engagements with enterprise customers who have complex, mission-critical, or large-scale Citrix deployments. These engagements are typically fee-based engagements for the most challenging projects in scope and complexity, requiring consultants who are qualified with project methodology and Citrix expertise. Citrix Consulting is also responsible for the development of best practice knowledge that is disseminated to businesses with which we have a business relationship and end-users through training and written documentation. Leveraging these best practices enables our integration resellers to provide more complex systems, reach new buyers within existing customer organizations and provide more sophisticated system proposals to prospective customers.
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•
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Product Training & Certification
helps enable our customers and partners to be successful with Citrix and achieve their business objectives faster. Authorized Citrix training is available when and how it is needed. Traditional or virtual instructor-led training offerings feature Citrix Certified Instructors delivering training in a classroom or remote setting at one of our Citrix Authorized Learning Centers, or CALCs, worldwide. CALCs are staffed with instructors that have been certified by us and teach their students using Citrix-developed courseware. Self-Paced Online offerings, available to students 24 hours a day, seven days a week, provide technically robust course content without an instructor and include hands-on practice via virtual labs. Certifications validate key skills and are available for administrators, engineers, architects and sales professionals.
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•
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Citrix HDX Technologies
is a family of innovations that optimize the end-to-end user experience in virtual desktop and virtual application environments. These technologies incorporate our ICA protocol, which consists of server- and client-side technology that allows graphical user interfaces to be transmitted securely over any network, and includes optimizations for multimedia, unified communications, high-end graphics and mobile networks which work together to provide a high-definition user experience across a wide array of applications, devices and networks.
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•
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NetScaler nCore
Technology
is an architecture that enables execution of multiple packet engines in parallel. nCore technology allows the distribution of packet flows across multiple central processing unit cores to achieve efficient, high-performance parallel processing across multiple packet engines. The architecture incorporates innovations in flow distribution and state sharing and provides for efficient execution across packet engines.
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•
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XenMobile
is our foundational technology that delivers a holistic mobile computing platform for enterprises. Its main components include MDM, MAM,
MCM, UEM, end-to-end security and a set of mobile productivity apps including secure email, corporate app store, Web browsing, data sharing, secure note taking and document editing on a host of mobile platforms including iOS, Android and Windows mobile.
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Strategic IT Executives including chief information officers, chief technology officers, chief information security officers and vice presidents of infrastructure, who have responsibility for ensuring that IT services are enablers to business initiatives and are delivered with the best performance, availability, security and cost.
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•
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Desktop Operations Managers who are responsible for managing Windows Desktop environments including corporate help desks.
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IT Infrastructure Managers who are responsible for managing and delivering Windows-based applications.
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Directors of Messaging and Mobility, who are, respectively, responsible for messaging technologies and defining mobile strategies and solutions for securing and managing mobile devices including their content and applications.
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Network Architects who are responsible for delivering Web-based applications who have primary responsibility for the WAN infrastructure for all applications.
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Server Operations Managers who are responsible for specifying datacenter systems and managing daily operations.
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Individuals and prosumers, who are responsible for choosing personal solutions and helping small businesses select simple-to-use computing solutions.
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Small business owners who are responsible for choosing the systems needed to support their business goals, such as SaaS.
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•
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Chief technology officer and engineering department (managers and architects, among others) for telecommunications service providers.
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Line of business and functional executives that determine the need for our cloud and subscription-based offerings at certain enterprises.
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•
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Chief information officer and engineering departments within service providers, using our solutions to deliver desktops and applications as hosted cloud services.
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•
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we may not be able to implement effective go-to-market strategies and train or properly incentivize our sales team and channel partners in order to effectively market our subscription offerings;
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•
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we may be unsuccessful in maintaining our target pricing, adoption and renewal rates;
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•
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we may select solution prices that are not optimal and could negatively affect our sales or earnings;
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•
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risks related to the timing of revenue recognition and potential reductions in cash flows in the near term;
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•
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we may incur costs at a higher than forecasted rate as we expand our cloud-delivered services thereby decreasing our gross margins;
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we may not be able to meet customer demand or solution requirements for cloud-delivered services;
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•
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customer concerns regarding changes to pricing, service availability, and security; and
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our cloud-delivered services are primarily operated through third party data centers, which we do not control and which may be vulnerable to damage, interruption and cyber-related risks.
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•
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rapid technological change;
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•
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evolving industry standards;
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•
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fluctuations in customer demand;
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•
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changing customer business models and increasingly sophisticated customer needs; and
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•
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frequent new product and service introductions and enhancements.
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•
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new competitive product releases and updates to existing products delivered as on premises solutions, especially cloud-based products;
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•
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industry trend to focus on the secure delivery of applications on mobile devices;
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•
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introduction of new or alternative technologies, products or service offerings by third parties;
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•
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termination or reduction of our product offerings and enhancements;
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•
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potential market saturation;
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•
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failure to enter new markets;
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•
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price and product competition resulting from rapid and frequent technological changes and customer needs;
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•
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general economic conditions;
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•
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complexities and cost in implementation;
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•
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failure to deliver satisfactory technical support;
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dissatisfied customers; or
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lack of commercial success of our technology relationships.
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•
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interruption in the delivery of our cloud services;
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•
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negative publicity and harm to our reputation or brand, which could lead some customers to seek to cancel subscriptions, stop using certain of our solutions or services, reduce or delay future purchases of our solutions or services, or use competing solutions or services;
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•
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individual and/or class action lawsuits, which could result in financial judgments against us or the payment of settlement amounts, which would cause us to incur legal fees and costs;
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•
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regulatory enforcement action under the General Data Protection Regulation or other legal authority, which could result in significant fines and/or penalties or other sanctions and which would cause us to incur legal fees and costs; and/or
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•
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in the event that we or one of our customers were the victim of a cyberattack or other security breach, additional costs associated with responding to such breach, such as investigative and remediation costs, and the costs of providing data
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•
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our sales force generally needs to explain and demonstrate the benefits of a large-scale deployment of our product to potential and existing customers prior to sale;
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•
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our service personnel typically spend a significant amount of time assisting potential customers in their testing and evaluation of our solutions and services;
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•
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our customers are typically large and medium size organizations that carefully research their technology needs and the many potential projects prior to making capital expenditures for software infrastructure; and
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before making a purchase, our potential customers usually must get approvals from various levels of decision makers within their organizations, and this process can be lengthy.
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•
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compliance with foreign regulatory and market requirements;
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•
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variability of foreign economic, political, labor conditions and global policy uncertainty (including the impact of the proposed exit of the United Kingdom from the European Union, commonly referred to as “Brexit”);
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•
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changing restrictions imposed by regulatory requirements, tariffs or other trade barriers or by U.S. export laws;
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•
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regional data privacy laws that apply to the transmission of our customers’ data across international borders;
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•
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health or similar issues such as pandemic or epidemic;
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•
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difficulties in staffing and managing international operations;
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•
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longer accounts receivable payment cycles;
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•
|
potentially adverse tax consequences;
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•
|
difficulties in enforcing and protecting intellectual property rights;
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•
|
compliance with the Foreign Corrupt Practices Act, including potential violations by acts of agents or other intermediaries;
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•
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burdens of complying with a wide variety of foreign laws; and
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•
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as we generate cash flow in non-U.S. jurisdictions, if required, we may experience difficulty transferring such funds to the U.S. in a tax efficient manner.
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an uncertain revenue and earnings stream from the acquired company, which could dilute our earnings;
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•
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difficulties and delays integrating the personnel, operations, technologies, solutions and systems of the acquired companies;
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•
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undetected errors or unauthorized use of a third-party’s code in solutions of the acquired companies;
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•
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our ongoing business may be disrupted and our management’s attention may be diverted by acquisition, transition or integration activities;
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•
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challenges with implementing adequate and appropriate controls, procedures and policies in the acquired business;
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•
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difficulties managing or integrating an acquired company’s technologies or lines of business;
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•
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potential difficulties in completing projects associated with purchased in-process research and development;
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•
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entry into markets in which we have no or limited direct prior experience and where competitors have stronger market positions and which are highly competitive;
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•
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the potential loss of key employees of the acquired company;
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•
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potential difficulties integrating the acquired solutions and services into our sales channel;
|
•
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assuming pre-existing contractual relationships of an acquired company that we would not have otherwise entered into, the termination or modification of which may be costly or disruptive to our business;
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•
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being subject to unfavorable revenue recognition or other accounting treatment as a result of an acquired company’s practices; and
|
•
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intellectual property claims or disputes.
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•
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the expansion of our product lines through product development and acquisitions;
|
•
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the volume of patent infringement litigation commenced by non-practicing entities;
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•
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an increase in the number of competitors in our industry segments and the resulting increase in the number of related solutions and services and the overlap in the functionality of those solutions and services;
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•
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an increase in the number of our competitors and third parties that use their own intellectual property rights to limit our freedom to operate and exploit our solutions, or to otherwise block us from taking full advantage of our markets;
|
•
|
our solutions and services may rely on the technology of others and, therefore, require us to obtain intellectual property licenses from third parties in order for us to commercialize our solutions or services and we may not be able to obtain or continue to obtain licenses from these third parties on reasonable terms; and
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•
|
the unauthorized or improperly licensed use of third-party code in our solutions.
|
•
|
pay damages (including the potential for treble damages), license fees or royalties (including royalties for past periods) to the party claiming infringement;
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•
|
cease selling solutions or services that use the challenged intellectual property;
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•
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obtain a license from the owner of the asserted intellectual property to sell or use the relevant technology, which license may not be available on reasonable terms, or at all; or
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•
|
redesign the challenged technology, which could be time consuming and costly, or not be accomplished.
|
•
|
undetected errors or unauthorized use of another person’s code in the third party’s software;
|
•
|
disagreement over the scope of the license and other key terms, such as royalties payable and indemnification protection;
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•
|
infringement actions brought by third-parties;
|
•
|
that third parties will create solutions that directly compete with our solutions; and
|
•
|
termination or expiration of the license.
|
•
|
make us more vulnerable to adverse changes in general U.S. and worldwide economic, industry and competitive conditions and adverse changes in government regulation;
|
•
|
limit our flexibility in planning for, or reacting to, changes in our business and our industry;
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•
|
place us at a disadvantage compared to our competitors who have less debt; and
|
•
|
limit our ability to borrow additional amounts to fund acquisitions, for working capital and for other general corporate purposes.
|
•
|
actual or anticipated variations in operating and financial results; analyst reports or recommendations;
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•
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rumors, announcements, or press articles regarding our or our competitors’ operations, management, organization, financial condition, or financial statements; and
|
•
|
other events or factors, many of which are beyond our control.
|
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High
|
|
Low
|
||||
Year Ended December 31, 2017:
|
|
|
|
|
||||
Fourth quarter
|
|
$
|
88.98
|
|
|
$
|
77.50
|
|
Third quarter
|
|
$
|
83.00
|
|
|
$
|
73.33
|
|
Second quarter
|
|
$
|
87.95
|
|
|
$
|
77.22
|
|
First quarter
|
|
$
|
87.99
|
|
|
$
|
70.24
|
|
Year Ended December 31, 2016:
|
|
|
|
|
||||
Fourth quarter
|
|
$
|
75.26
|
|
|
$
|
66.26
|
|
Third quarter
|
|
$
|
72.89
|
|
|
$
|
63.99
|
|
Second quarter
|
|
$
|
73.30
|
|
|
$
|
62.10
|
|
First quarter
|
|
$
|
64.47
|
|
|
$
|
49.61
|
|
|
|
Total Number
of Shares
Purchased
(1)
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased as Part
of Publicly
Announced Plans
or Programs
|
|
Approximate dollar value of Shares that may yet be
Purchased under the
Plans or Programs
(in thousands)
(2)
|
||||||
October 1, 2017 through October 31, 2017
|
|
19,097
|
|
|
$
|
79.43
|
|
|
—
|
|
|
$
|
329,049
|
|
November 1, 2017 through November 30, 2017
|
|
7,160,577
|
|
|
$
|
84.12
|
|
|
7,132,668
|
|
|
$
|
1,429,049
|
|
December 1, 2017 through December 31, 2017
|
|
56,839
|
|
|
$
|
88.28
|
|
|
—
|
|
|
$
|
1,429,049
|
|
Total
|
|
7,236,513
|
|
|
$
|
84.14
|
|
|
7,132,668
|
|
|
$
|
1,429,049
|
|
(1)
|
Represents approximately 7.1 million shares from the ASR agreement described below and 103,845 shares withheld from restricted stock units that vested in the fourth quarter of 2017 to satisfy minimum tax withholding obligations that arose on the vesting of restricted stock units.
|
(2)
|
Shares withheld from restricted stock units and stock awards that vested to satisfy minimum tax withholding obligations that arose on the vesting of awards do not deplete the dollar amount available for purchases under the repurchase program.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016(a)
|
|
2015(a)
|
|
2014(a)
|
|
2013(a)
|
||||||||||
|
|
(In thousands, except per share data)
|
||||||||||||||||||
Consolidated Statements of Income Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
|
$
|
2,824,686
|
|
|
$
|
2,736,080
|
|
|
$
|
2,646,154
|
|
|
$
|
2,563,064
|
|
|
$
|
2,918,434
|
|
Cost of net revenues
(b)
|
|
439,646
|
|
|
404,889
|
|
|
474,040
|
|
|
493,706
|
|
|
502,795
|
|
|||||
Gross margin
|
|
2,385,040
|
|
|
2,331,191
|
|
|
2,172,114
|
|
|
2,069,358
|
|
|
2,415,639
|
|
|||||
Operating expenses
(c)
|
|
1,814,043
|
|
|
1,771,027
|
|
|
1,969,322
|
|
|
1,894,438
|
|
|
2,034,922
|
|
|||||
Income from operations
|
|
570,997
|
|
|
560,164
|
|
|
202,792
|
|
|
174,920
|
|
|
380,717
|
|
|||||
Interest income
|
|
27,808
|
|
|
16,686
|
|
|
11,675
|
|
|
9,421
|
|
|
8,194
|
|
|||||
Interest expense
|
|
(51,609
|
)
|
|
(44,949
|
)
|
|
(44,153
|
)
|
|
(28,332
|
)
|
|
(128
|
)
|
|||||
Other income (expense), net
|
|
3,150
|
|
|
(4,131
|
)
|
|
(5,730
|
)
|
|
(7,694
|
)
|
|
(893
|
)
|
|||||
Income from continuing operations before income taxes
|
|
550,346
|
|
|
527,770
|
|
|
164,584
|
|
|
148,315
|
|
|
387,890
|
|
|||||
Income tax expense (benefit)
|
|
528,361
|
|
|
57,915
|
|
|
(50,549
|
)
|
|
(18,904
|
)
|
|
48,367
|
|
|||||
Income from continuing operations
|
|
21,985
|
|
|
469,855
|
|
|
215,133
|
|
|
167,219
|
|
|
339,523
|
|
|||||
(Loss) income from discontinued operations, net of income tax expense
|
|
(42,704
|
)
|
|
66,257
|
|
|
104,228
|
|
|
84,504
|
|
|
—
|
|
|||||
Net (loss) income
|
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
|
$
|
251,723
|
|
|
$
|
339,523
|
|
Diluted (loss) earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
0.14
|
|
|
2.99
|
|
|
1.34
|
|
|
0.98
|
|
|
1.80
|
|
|||||
(Loss) income from discontinued operations
|
|
(0.27
|
)
|
|
0.42
|
|
|
0.65
|
|
|
0.49
|
|
|
—
|
|
|||||
Diluted net (loss) earnings per share
|
|
$
|
(0.13
|
)
|
|
$
|
3.41
|
|
|
$
|
1.99
|
|
|
$
|
1.47
|
|
|
$
|
1.80
|
|
Weighted average shares outstanding - diluted
|
|
155,503
|
|
|
157,084
|
|
|
160,362
|
|
|
171,270
|
|
|
188,245
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013(a)
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Consolidated Balance Sheet Data
(d)
:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
5,820,176
|
|
|
$
|
6,390,227
|
|
|
$
|
5,467,517
|
|
|
$
|
5,512,007
|
|
|
$
|
5,212,249
|
|
Total equity
|
|
992,461
|
|
|
2,608,727
|
|
|
1,973,446
|
|
|
2,173,645
|
|
|
3,319,807
|
|
(a)
|
The selected financial data for fiscal years ending December 31,
2016
,
2015
and
2014
has been adjusted to be presented on a continuing operations basis. The selected financial data for fiscal year 2013 has not been so adjusted. Refer to Note 3 Discontinued Operations in our Consolidated Financial Statements for additional information.
|
(b)
|
Cost of net revenues includes amortization and impairment of product related intangible assets of
$65.7 million
,
$55.4 million
,
$127.3 million
,
$142.2 million
, and
$97.9 million
in
2017
,
2016
,
2015
,
2014
and 2013, respectively.
|
(c)
|
Operating expenses includes amortization and impairment of other intangible assets of
$17.2 million
,
$15.1 million
,
$97.5 million
,
$41.9 million
, and
$41.7 million
in
2017
,
2016
,
2015
,
2014
and
2013
, respectively. Operating expenses also include restructuring charges of
$72.4 million
,
$67.4 million
,
$98.7 million
and
$14.1 million
in
2017
,
2016
,
2015
and
2014
, respectively. No restructuring charges were incurred in
2013
.
|
(d)
|
Balance Sheet amounts at
December 31, 2017
exclude GoTo Business balances as a result of the separation of the GoTo Business in January 2017. Balance Sheet amounts prior to 2017 include amounts for the GoTo Business. Refer to Note 3 Discontinued Operations in our Consolidated Financial Statements for additional information.
|
•
|
Product and license revenue decreased
2.9%
to $
857.3 million
;
|
•
|
Software as a service revenue increased
30.5%
to $
175.8 million
;
|
•
|
License updates and maintenance revenue increased
4.6%
to $
1.7 billion
;
|
•
|
Professional services revenue increased
0.4%
to $
131.7 million
;
|
•
|
Gross margin as a percentage of revenue decreased
0.8%
to
84.4%
;
|
•
|
Operating income increased
1.9%
to $
571.0 million
; and
|
•
|
Diluted earnings per share from continuing operations decreased
95.3%
to
$0.14
.
|
•
|
Persuasive evidence of the arrangement exists.
Evidence of an arrangement generally consists of a purchase order issued pursuant to the terms and conditions of a distributor, reseller or end user agreement. For SaaS, we generally require the customer or the reseller to electronically accept the terms of an online services agreement or execute a contract.
|
•
|
Delivery has occurred and we have no remaining obligations.
We consider delivery of licenses under electronic licensing agreements to have occurred when the related products are shipped and the end-user has been electronically provided the software activation keys that allow the end-user to take immediate possession of the product. For hardware appliance sales, our standard delivery method is free-on-board shipping point. Consequently, we consider delivery of appliances to have occurred when the products are shipped pursuant to an agreement and purchase order. For SaaS, delivery occurs upon providing the users with their login id and password. For product training and consulting services, we fulfill our obligation when the services are performed. For license updates and maintenance, we assume that our obligation is satisfied ratably over the respective terms of the agreements, which are typically 12 to 24 months. For SaaS, we assume that our obligation is satisfied ratably over the respective terms of the agreements, which are typically 12 months.
|
•
|
The fee is fixed or determinable.
In the normal course of business, we do not provide customers with the right to a refund of any portion of their license fees or extended payment terms. The fees are considered fixed or determinable upon establishment of an arrangement that contains the final terms of the sale including description, quantity and price of each product or service purchased. For SaaS, the fee is considered fixed or determinable if it is not subject to refund or adjustment.
|
•
|
Collectability is probable.
We assess collectability based primarily on the creditworthiness of the customer. Management’s judgment is required in assessing the probability of collection, which is generally based on an evaluation of customer specific information, historical experience and economic market conditions. If we determine from the outset of an arrangement that collectability is not probable, revenue recognition is deferred until customer payment is received and the other parameters of revenue recognition described above have been achieved.
|
|
Year Ended December 31,
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Product and licenses
|
$
|
857,253
|
|
|
$
|
882,898
|
|
|
$
|
873,808
|
|
|
(2.9
|
)%
|
|
1.0
|
%
|
Software as a service
|
175,762
|
|
|
134,682
|
|
|
103,851
|
|
|
30.5
|
|
|
29.7
|
|
|||
License updates and maintenance
|
1,659,936
|
|
|
1,587,271
|
|
|
1,521,007
|
|
|
4.6
|
|
|
4.4
|
|
|||
Professional services
|
131,735
|
|
|
131,229
|
|
|
147,488
|
|
|
0.4
|
|
|
(11.0
|
)
|
|||
Total net revenues
|
2,824,686
|
|
|
2,736,080
|
|
|
2,646,154
|
|
|
3.2
|
|
|
3.4
|
|
|||
Cost of net revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of product and license revenues
|
123,356
|
|
|
121,391
|
|
|
118,265
|
|
|
1.6
|
|
|
2.6
|
|
|||
Cost of services and maintenance revenues
|
250,602
|
|
|
228,080
|
|
|
228,503
|
|
|
9.9
|
|
|
(0.2
|
)
|
|||
Amortization of product related intangible assets
|
50,183
|
|
|
54,290
|
|
|
71,001
|
|
|
(7.6
|
)
|
|
(23.5
|
)
|
|||
Impairment of product related intangible assets
|
15,505
|
|
|
1,128
|
|
|
56,271
|
|
|
1,274.6
|
|
|
(98.0
|
)
|
|||
Total cost of net revenues
|
439,646
|
|
|
404,889
|
|
|
474,040
|
|
|
8.6
|
|
|
(14.6
|
)
|
|||
Gross margin
|
2,385,040
|
|
|
2,331,191
|
|
|
2,172,114
|
|
|
2.3
|
|
|
7.3
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Research and development
|
415,801
|
|
|
395,373
|
|
|
480,957
|
|
|
5.2
|
|
|
(17.8
|
)
|
|||
Sales, marketing and services
|
1,006,112
|
|
|
976,339
|
|
|
1,005,802
|
|
|
3.0
|
|
|
(2.9
|
)
|
|||
General and administrative
|
302,565
|
|
|
316,838
|
|
|
286,424
|
|
|
(4.5
|
)
|
|
10.6
|
|
|||
Amortization of other intangible assets
|
14,652
|
|
|
15,076
|
|
|
30,341
|
|
|
(2.8
|
)
|
|
(50.3
|
)
|
|||
Impairment of other intangible assets
|
2,538
|
|
|
—
|
|
|
67,137
|
|
|
100.0
|
|
|
(100.0
|
)
|
|||
Restructuring
|
72,375
|
|
|
67,401
|
|
|
98,661
|
|
|
7.4
|
|
|
(31.7
|
)
|
|||
Total operating expenses
|
1,814,043
|
|
|
1,771,027
|
|
|
1,969,322
|
|
|
2.4
|
|
|
(10.1
|
)
|
|||
Income from operations
|
570,997
|
|
|
560,164
|
|
|
202,792
|
|
|
1.9
|
|
|
176.2
|
|
|||
Interest income
|
27,808
|
|
|
16,686
|
|
|
11,675
|
|
|
66.7
|
|
|
42.9
|
|
|||
Interest expense
|
(51,609
|
)
|
|
(44,949
|
)
|
|
(44,153
|
)
|
|
14.8
|
|
|
1.8
|
|
|||
Other income (expense), net
|
3,150
|
|
|
(4,131
|
)
|
|
(5,730
|
)
|
|
(176.3
|
)
|
|
(27.9
|
)
|
|||
Income from continuing operations before income taxes
|
550,346
|
|
|
527,770
|
|
|
164,584
|
|
|
4.3
|
|
|
220.7
|
|
|||
Income tax expense (benefit)
|
528,361
|
|
|
57,915
|
|
|
(50,549
|
)
|
|
812.3
|
|
|
(214.6
|
)
|
|||
Income from continuing operations
|
$
|
21,985
|
|
|
$
|
469,855
|
|
|
$
|
215,133
|
|
|
(95.3
|
)
|
|
118.4
|
|
(Loss) income from discontinued operations
|
(42,704
|
)
|
|
66,257
|
|
|
104,228
|
|
|
(164.5
|
)
|
|
(36.4
|
)
|
|||
Net (loss) income
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
|
(103.9
|
)%
|
|
67.9
|
%
|
•
|
Workspace Services is primarily comprised of our Application Virtualization solutions which include XenDesktop and XenApp, our Enterprise Mobility Management solutions which include XenMobile solutions and Citrix Workspace; and
|
•
|
Networking primarily includes NetScaler ADC and NetScaler SD-WAN.
|
•
|
Customer Success Services, which gives customers a choice of tiered support offerings that combine the elements of product version upgrades, guidance, enablement, support and proactive monitoring to help our customers and our partners fully realize their business goals. Fees associated with this offering are recognized ratably over the term of the contract;
|
•
|
Maintenance for our Networking products, which include technical support and hardware and software maintenance, are recognized ratably over the contract term; and
|
•
|
Subscription Advantage program which has been retired and reached end of sale and end of renewal for existing customers. Fees associated with these offerings are being recognized ratably over the remaining term of existing contracts, which was typically 12 to 24 months.
|
•
|
Fees from consulting services related to the implementation of our solutions, which are recognized as the services are provided; and
|
•
|
Fees from product training and certification, which are recognized as the services are provided.
|
|
Year Ended December 31,
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Product and licenses
|
$
|
857,253
|
|
|
$
|
882,898
|
|
|
$
|
873,808
|
|
|
$
|
(25,645
|
)
|
|
$
|
9,090
|
|
Software as a Service
|
175,762
|
|
|
134,682
|
|
|
103,851
|
|
|
41,080
|
|
|
30,831
|
|
|||||
License updates and maintenance
|
1,659,936
|
|
|
1,587,271
|
|
|
1,521,007
|
|
|
72,665
|
|
|
66,264
|
|
|||||
Professional Services
|
131,735
|
|
|
131,229
|
|
|
147,488
|
|
|
506
|
|
|
(16,259
|
)
|
|||||
Total net revenues
|
$
|
2,824,686
|
|
|
$
|
2,736,080
|
|
|
$
|
2,646,154
|
|
|
$
|
88,606
|
|
|
$
|
89,926
|
|
|
Year Ended December 31,
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
|||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
Cost of product and license revenues
|
$
|
123,356
|
|
|
$
|
121,391
|
|
|
$
|
118,265
|
|
|
$
|
1,965
|
|
|
$
|
3,126
|
|
Cost of services and maintenance revenues
|
250,602
|
|
|
228,080
|
|
|
228,503
|
|
|
22,522
|
|
|
(423
|
)
|
|||||
Amortization of product related intangible assets
|
50,183
|
|
|
54,290
|
|
|
71,001
|
|
|
(4,107
|
)
|
|
(16,711
|
)
|
|||||
Impairment of product related intangible assets
|
15,505
|
|
|
1,128
|
|
|
56,271
|
|
|
14,377
|
|
|
(55,143
|
)
|
|||||
Total cost of net revenues
|
$
|
439,646
|
|
|
$
|
404,889
|
|
|
$
|
474,040
|
|
|
$
|
34,757
|
|
|
$
|
(69,151
|
)
|
|
Year Ended December 31,
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
Research and development
|
$
|
415,801
|
|
|
$
|
395,373
|
|
|
$
|
480,957
|
|
|
$
|
20,428
|
|
|
$
|
(85,584
|
)
|
|
Year Ended December 31,
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
Amortization of other intangible assets
|
$
|
14,652
|
|
|
$
|
15,076
|
|
|
$
|
30,341
|
|
|
$
|
(424
|
)
|
|
$
|
(15,265
|
)
|
|
Year Ended December 31,
|
|
2017 Compared to 2016
|
|
2016 Compared to 2015
|
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
Impairment of other intangible assets
|
$
|
2,538
|
|
|
$
|
—
|
|
|
$
|
67,137
|
|
|
$
|
2,538
|
|
|
$
|
(67,137
|
)
|
|
December 31,
|
|
2017 Compared to 2016
|
||||||||
|
2017
|
|
2016
|
|
|||||||
|
(In thousands)
|
||||||||||
Cash, cash equivalents and investments
|
$
|
2,731,974
|
|
|
$
|
2,543,160
|
|
|
$
|
188,814
|
|
|
December 31,
|
|
2017 Compared to 2016
|
||||||||
|
2017
|
|
2016
|
|
|||||||
|
(In thousands)
|
||||||||||
Accounts receivable
|
$
|
717,180
|
|
|
$
|
687,089
|
|
|
$
|
30,091
|
|
Allowance for returns
|
(1,225
|
)
|
|
(1,994
|
)
|
|
769
|
|
|||
Allowance for doubtful accounts
|
(3,420
|
)
|
|
(3,889
|
)
|
|
469
|
|
|||
Accounts receivable, net
|
$
|
712,535
|
|
|
$
|
681,206
|
|
|
$
|
31,329
|
|
|
|
Payments due by period
|
||||||||||||||||||
|
|
Total
|
|
Less than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
Operating lease obligations
(1)
|
|
$
|
340,034
|
|
|
$
|
56,736
|
|
|
$
|
98,077
|
|
|
$
|
70,888
|
|
|
$
|
114,333
|
|
Convertible senior notes
(2)
|
|
1,437,483
|
|
|
—
|
|
|
1,437,483
|
|
|
—
|
|
|
—
|
|
|||||
Senior Notes due 2027
(3)
|
|
750,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
750,000
|
|
|||||
Purchase obligations
(4)
|
|
25,700
|
|
|
25,700
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
(5)
|
|
$
|
2,553,217
|
|
|
$
|
82,436
|
|
|
$
|
1,535,560
|
|
|
$
|
70,888
|
|
|
$
|
864,333
|
|
|
|
(1)
|
The amounts in the table above include $76.5 million in exited facility costs related to restructuring activities.
|
(2)
|
During the second quarter of 2014, we completed a private placement of
$1.44 billion
principal amount of
0.500%
Convertible Senior Notes due 2019. The amount above represents the principal balance to be repaid. See Note 13 to our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2017
for detailed information on the Convertible Notes offering and the transactions related thereto.
|
(3)
|
During the fourth quarter of 2017, we completed the issuance of
$750.0 million
principal amount of
4.500%
Senior Notes due 2027. The amount above represents the balance to be repaid. See Note 13 to our consolidated financial statements included in this Annual Report on Form 10-K for the year ended
December 31, 2017
for detailed information on the 2027 Notes offering and the transactions related thereto.
|
(4)
|
Purchase obligations represent non-cancelable commitments to purchase inventory ordered before year-end 2018 of approximately
$6.3 million
and a contingent obligation to purchase inventory of approximately
$19.4 million
.
|
(5)
|
Total contractual obligations do not include agreements where our commitment is variable in nature or where cancellations without payment provisions exist and excludes
$77.8 million
of liabilities related to uncertain tax positions recorded in accordance with authoritative guidance, 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, 2017
for further information.
|
(a)
|
1. Consolidated Financial Statements.
|
Exhibit No.
|
|
Description
|
2.1
|
|
|
2.2
|
|
|
2.3
|
|
|
2.4
|
|
|
2.5
|
|
|
2.6
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
Specimen certificate representing Common Stock (incorporated herein by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-1 (File No. 33-98542), as amended)
(P)
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
10.1*
|
|
|
10.2*
|
|
|
10.3*
|
|
10.4*
|
|
|
10.5*
|
|
|
10.6*
|
|
|
10.7*
|
|
|
10.8*
|
|
|
10.9*
|
|
|
10.10*
|
|
|
10.11*
|
|
|
10.12*
|
|
|
10.13*
|
|
|
10.14*
|
|
|
10.15*
|
|
|
10.16*
|
|
|
10.17*
|
|
|
10.18*
|
|
|
10.19*
|
|
|
10.20*
|
|
|
10.21*
|
|
|
10.22*
|
|
|
10.23*
|
|
|
10.24*
|
|
10.25*
|
|
|
10.26*
|
|
|
10.27*
|
|
|
10.28*
|
|
|
10.29*
|
|
|
10.30*
|
|
|
10.31*
|
|
|
10.32*†
|
|
|
10.33*
|
|
|
10.34*
|
|
|
10.35*
|
|
|
10.36*
|
|
|
10.37*
|
|
|
10.38*
|
|
|
10.39*†
|
|
|
10.40*
|
|
|
10.41*
|
|
|
10.42*
|
|
|
10.43*
|
|
|
10.44
|
|
10.45
|
|
|
10.46
|
|
|
10.47
|
|
|
10.48
|
|
|
10.49
|
|
|
10.50
|
|
|
10.51
|
|
|
10.52
|
|
|
10.53
|
|
|
12.1†
|
|
|
21.1†
|
|
|
23.1†
|
|
|
24.1
|
|
|
31.1†
|
|
|
31.2†
|
|
|
32.1††
|
|
|
101.INS†
|
|
XBRL Instance Document
|
101.SCH†
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL†
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF†
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB†
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE†
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Indicates a management contract or a compensatory plan, contract or arrangement.
|
**
|
Schedules (or similar attachments) have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby undertakes to furnish supplementally copies of any of the omitted schedules (or similar attachments) upon request by the SEC.
|
†
|
Filed herewith.
|
††
|
Furnished herewith.
|
(P)
|
This exhibit has been paper filed and is not subject to the hyperlinking requirements of Item 601 of Regulation S-K.
|
|
|
CITRIX SYSTEMS, INC.
|
|
|
|
|
By:
|
/s/ DAVID J. HENSHALL
|
|
|
David J. Henshall
|
|
|
President and Chief Executive Officer
|
Signature
|
|
Title(s)
|
|
|
|
|
|
||
/S/ DAVID J. HENSHALL
|
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
|
|
David J. Henshall
|
|
|
||
|
|
|
||
/S/ MARK M. COYLE
|
|
Senior Vice President, Finance and Interim Chief Financial Officer (Principal Financial Officer)
|
|
|
Mark M. Coyle
|
|
|
|
|
|
|
|
|
|
/S/ JESSICA SOISSON
|
|
Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer)
|
|
|
Jessica Soisson
|
|
|
|
|
|
|
|
|
|
/S/ ROBERT M. CALDERONI
|
|
Executive Chairman of the Board of Directors
|
|
|
Robert M. Calderoni
|
|
|
|
|
|
|
|
||
/S/ NANCI E. CALDWELL
|
|
Director
|
|
|
Nanci E. Caldwell
|
|
|
|
|
|
|
|
|
|
/S/ JESSE A. COHN
|
|
Director
|
|
|
Jesse A. Cohn
|
|
|
|
|
|
|
|
|
|
/S/ ROBERT D. DALEO
|
|
Director
|
|
|
Robert D. Daleo
|
|
|
|
|
|
|
|
||
/S/ MURRAY J. DEMO
|
|
Director
|
|
|
Murray J. Demo
|
|
|
|
|
|
|
|
||
/S/ AJEI S. GOPAL
|
|
Director
|
|
|
Ajei S. Gopal
|
|
|
|
|
|
|
|
|
|
/S/ PETER J. SACRIPANTI
|
|
Director
|
|
|
Peter J. Sacripanti
|
|
|
|
|
|
|
|
|
|
/S/ GRAHAM V. SMITH
|
|
Director
|
|
|
Graham V. Smith
|
|
|
|
|
|
|
|
|
|
/S/ GODFREY R. SULLIVAN
|
|
Director
|
|
|
Godfrey R. Sullivan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017 |
|
December 31,
2016 |
||||
Assets
|
(In thousands, except par value)
|
||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,115,130
|
|
|
$
|
836,095
|
|
Short-term investments, available-for-sale
|
632,516
|
|
|
726,923
|
|
||
Accounts receivable, net of allowances of $4,645 and $5,883 at December 31, 2017 and 2016, respectively
|
712,535
|
|
|
681,206
|
|
||
Inventories, net
|
13,912
|
|
|
12,522
|
|
||
Prepaid expenses and other current assets
|
147,330
|
|
|
124,842
|
|
||
Current assets of discontinued operations
|
—
|
|
|
179,689
|
|
||
Total current assets
|
2,621,423
|
|
|
2,561,277
|
|
||
Long-term investments, available-for-sale
|
984,328
|
|
|
980,142
|
|
||
Property and equipment, net
|
252,932
|
|
|
261,954
|
|
||
Goodwill
|
1,614,494
|
|
|
1,585,893
|
|
||
Other intangible assets, net
|
141,952
|
|
|
173,681
|
|
||
Deferred tax assets, net
|
152,362
|
|
|
233,900
|
|
||
Other assets
|
52,685
|
|
|
54,449
|
|
||
Long-term assets of discontinued operations
|
—
|
|
|
538,931
|
|
||
Total assets
|
$
|
5,820,176
|
|
|
$
|
6,390,227
|
|
Liabilities, Temporary Equity and Stockholders' Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
66,893
|
|
|
$
|
72,724
|
|
Accrued expenses and other current liabilities
|
277,679
|
|
|
256,799
|
|
||
Income taxes payable
|
34,033
|
|
|
39,771
|
|
||
Current portion of deferred revenues
|
1,308,474
|
|
|
1,208,229
|
|
||
Convertible notes, short-term
|
—
|
|
|
1,348,156
|
|
||
Current liabilities of discontinued operations
|
—
|
|
|
172,670
|
|
||
Total current liabilities
|
1,687,079
|
|
|
3,098,349
|
|
||
Long-term portion of deferred revenues
|
555,769
|
|
|
476,135
|
|
||
Long-term debt
|
2,127,474
|
|
|
—
|
|
||
Long-term income taxes payable
|
335,457
|
|
|
—
|
|
||
Other liabilities
|
121,936
|
|
|
119,813
|
|
||
Long-term liabilities of discontinued operations
|
—
|
|
|
7,708
|
|
||
Commitments and contingencies
|
|
|
|
|
|||
Temporary equity from Convertible notes
|
—
|
|
|
79,495
|
|
||
Stockholders' equity:
|
|
|
|
||||
Preferred stock at $.01 par value: 5,000 shares authorized, none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock at $.001 par value: 1,000,000 shares authorized; 305,751 and 302,851 shares issued and outstanding at December 31, 2017 and 2016, respectively
|
306
|
|
|
303
|
|
||
Additional paid-in capital
|
4,883,670
|
|
|
4,761,588
|
|
||
Retained earnings
|
3,509,484
|
|
|
4,010,737
|
|
||
Accumulated other comprehensive loss
|
(10,806
|
)
|
|
(28,704
|
)
|
||
|
8,382,654
|
|
|
8,743,924
|
|
||
Less - common stock in treasury, at cost (162,044 and 146,552 shares at December 31, 2017 and 2016, respectively)
|
(7,390,193
|
)
|
|
(6,135,197
|
)
|
||
Total stockholders' equity
|
992,461
|
|
|
2,608,727
|
|
||
Total liabilities, temporary equity and stockholders' equity
|
$
|
5,820,176
|
|
|
$
|
6,390,227
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands, except per share information)
|
||||||||||
Revenues:
|
|
|
|
|
|
||||||
Product and licenses
|
$
|
857,253
|
|
|
$
|
882,898
|
|
|
$
|
873,808
|
|
Software as a service
|
175,762
|
|
|
134,682
|
|
|
103,851
|
|
|||
License updates and maintenance
|
1,659,936
|
|
|
1,587,271
|
|
|
1,521,007
|
|
|||
Professional services
|
131,735
|
|
|
131,229
|
|
|
147,488
|
|
|||
Total net revenues
|
2,824,686
|
|
|
2,736,080
|
|
|
2,646,154
|
|
|||
Cost of net revenues:
|
|
|
|
|
|
||||||
Cost of product and license revenues
|
123,356
|
|
|
121,391
|
|
|
118,265
|
|
|||
Cost of services and maintenance revenues
|
250,602
|
|
|
228,080
|
|
|
228,503
|
|
|||
Amortization of product related intangible assets
|
50,183
|
|
|
54,290
|
|
|
71,001
|
|
|||
Impairment of product related intangible assets
|
15,505
|
|
|
1,128
|
|
|
56,271
|
|
|||
Total cost of net revenues
|
439,646
|
|
|
404,889
|
|
|
474,040
|
|
|||
Gross margin
|
2,385,040
|
|
|
2,331,191
|
|
|
2,172,114
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
415,801
|
|
|
395,373
|
|
|
480,957
|
|
|||
Sales, marketing and services
|
1,006,112
|
|
|
976,339
|
|
|
1,005,802
|
|
|||
General and administrative
|
302,565
|
|
|
316,838
|
|
|
286,424
|
|
|||
Amortization of other intangible assets
|
14,652
|
|
|
15,076
|
|
|
30,341
|
|
|||
Impairment of other intangible assets
|
2,538
|
|
|
—
|
|
|
67,137
|
|
|||
Restructuring
|
72,375
|
|
|
67,401
|
|
|
98,661
|
|
|||
Total operating expenses
|
1,814,043
|
|
|
1,771,027
|
|
|
1,969,322
|
|
|||
Income from continuing operations
|
570,997
|
|
|
560,164
|
|
|
202,792
|
|
|||
Interest income
|
27,808
|
|
|
16,686
|
|
|
11,675
|
|
|||
Interest expense
|
(51,609
|
)
|
|
(44,949
|
)
|
|
(44,153
|
)
|
|||
Other income (expense), net
|
3,150
|
|
|
(4,131
|
)
|
|
(5,730
|
)
|
|||
Income from continuing operations before income taxes
|
550,346
|
|
|
527,770
|
|
|
164,584
|
|
|||
Income tax expense (benefit)
|
528,361
|
|
|
57,915
|
|
|
(50,549
|
)
|
|||
Income from continuing operations
|
21,985
|
|
|
469,855
|
|
|
215,133
|
|
|||
(Loss) income from discontinued operations, net of income tax expense of $2,900, $22,737, and $43,065, respectively
|
(42,704
|
)
|
|
66,257
|
|
|
104,228
|
|
|||
Net (loss) income
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
Basic (loss) earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
0.15
|
|
|
$
|
3.03
|
|
|
$
|
1.35
|
|
(Loss) income from discontinued operations
|
(0.28
|
)
|
|
0.43
|
|
|
0.66
|
|
|||
Basic net (loss) earnings per share
|
$
|
(0.13
|
)
|
|
$
|
3.46
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
||||||
Diluted (loss) earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
0.14
|
|
|
$
|
2.99
|
|
|
$
|
1.34
|
|
(Loss) income from discontinued operations
|
(0.27
|
)
|
|
0.42
|
|
|
0.65
|
|
|||
Diluted net (loss) earnings per share
|
$
|
(0.13
|
)
|
|
$
|
3.41
|
|
|
$
|
1.99
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
150,779
|
|
|
155,134
|
|
|
158,874
|
|
|||
Diluted
|
155,503
|
|
|
157,084
|
|
|
160,362
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Available for sale securities:
|
|
|
|
|
|
||||||
Change in net unrealized (losses) gains
|
(3,285
|
)
|
|
996
|
|
|
(2,080
|
)
|
|||
Less: reclassification adjustment for net (gains) losses included in net income
|
(273
|
)
|
|
(1,204
|
)
|
|
170
|
|
|||
Net change (net of tax effect)
|
(3,558
|
)
|
|
(208
|
)
|
|
(1,910
|
)
|
|||
|
|
|
|
|
|
||||||
Gain on pension liability
|
2,768
|
|
|
906
|
|
|
4,083
|
|
|||
|
|
|
|
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
||||||
Change in unrealized gains (losses)
|
6,046
|
|
|
(2,638
|
)
|
|
(6,937
|
)
|
|||
Less: reclassification adjustment for net (gains) losses included in net income
|
(758
|
)
|
|
1,763
|
|
|
13,027
|
|
|||
Net change (net of tax effect)
|
5,288
|
|
|
(875
|
)
|
|
6,090
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income (loss)
|
4,498
|
|
|
(177
|
)
|
|
8,263
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive (loss) income
|
$
|
(16,221
|
)
|
|
$
|
535,935
|
|
|
$
|
327,624
|
|
|
Common Stock
|
|
Additional
Paid In Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive
(loss) income
|
|
Common Stock
in Treasury
|
|
|
Total
Equity
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|||||||||||||||||||||
Balance at December 31, 2014
|
294,674
|
|
|
$
|
295
|
|
|
$
|
4,292,706
|
|
|
$
|
3,155,264
|
|
|
$
|
(36,790
|
)
|
|
(133,898
|
)
|
|
$
|
(5,237,830
|
)
|
|
|
$
|
2,173,645
|
|
Shares issued under stock-based compensation plans
|
3,878
|
|
|
3
|
|
|
112,282
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
112,285
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
139,816
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
139,816
|
|
||||||
Common stock issued under employee stock purchase plan
|
561
|
|
|
1
|
|
|
37,228
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
37,229
|
|
||||||
Tax deficiency from employer stock plans, net
|
—
|
|
|
—
|
|
|
(15,013
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(15,013
|
)
|
||||||
Stock repurchases, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,717
|
)
|
|
(755,704
|
)
|
|
|
(755,704
|
)
|
||||||
Restricted shares turned in for tax withholding
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(681
|
)
|
|
(46,336
|
)
|
|
|
(46,336
|
)
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,263
|
|
|
—
|
|
|
—
|
|
|
|
8,263
|
|
||||||
Other
|
|
|
|
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
(100
|
)
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
319,361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
319,361
|
|
||||||
Balance at December 31, 2015
|
299,113
|
|
|
$
|
299
|
|
|
$
|
4,566,919
|
|
|
$
|
3,474,625
|
|
|
$
|
(28,527
|
)
|
|
(145,296
|
)
|
|
$
|
(6,039,870
|
)
|
|
|
$
|
1,973,446
|
|
Shares issued under stock-based compensation plans
|
3,009
|
|
|
3
|
|
|
41,244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
41,247
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
175,980
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
175,980
|
|
||||||
Common stock issued under employee stock purchase plan
|
729
|
|
|
1
|
|
|
57,514
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
57,515
|
|
||||||
Tax deficiency from employer stock plans, net
|
—
|
|
|
—
|
|
|
(574
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(574
|
)
|
||||||
Stock repurchases, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(426
|
)
|
|
(28,689
|
)
|
|
|
(28,689
|
)
|
||||||
Restricted shares turned in for tax withholding
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
(66,638
|
)
|
|
|
(66,638
|
)
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
|
—
|
|
|
|
(177
|
)
|
||||||
Temporary equity reclassification
|
—
|
|
|
—
|
|
|
(79,495
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(79,495
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
536,112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
536,112
|
|
||||||
Balance at December 31, 2016
|
302,851
|
|
|
303
|
|
|
4,761,588
|
|
|
4,010,737
|
|
|
(28,704
|
)
|
|
(146,552
|
)
|
|
(6,135,197
|
)
|
|
|
2,608,727
|
|
||||||
Shares issued under stock-based compensation plans
|
2,614
|
|
|
3
|
|
|
2,110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
2,113
|
|
||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
166,308
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
166,308
|
|
||||||
Temporary equity reclassification
|
—
|
|
|
—
|
|
|
79,495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
79,495
|
|
||||||
Common stock issued under employee stock purchase plan
|
286
|
|
|
—
|
|
|
19,326
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
19,326
|
|
||||||
Stock repurchases, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,384
|
)
|
|
(574,956
|
)
|
|
|
(574,956
|
)
|
||||||
Restricted shares turned in for tax withholding
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(975
|
)
|
|
(80,040
|
)
|
|
|
(80,040
|
)
|
||||||
Accelerated stock repurchase program
|
—
|
|
|
—
|
|
|
(150,000
|
)
|
|
—
|
|
|
—
|
|
|
(7,133
|
)
|
|
(600,000
|
)
|
|
|
(750,000
|
)
|
||||||
Cumulative-effect adjustment from adoption of accounting standard on stock-based compensation
|
—
|
|
|
—
|
|
|
5,691
|
|
|
(5,303
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
388
|
|
||||||
Distribution of the net assets of the GoTo Business
|
—
|
|
|
—
|
|
|
—
|
|
|
(475,231
|
)
|
|
13,400
|
|
|
—
|
|
|
—
|
|
|
|
(461,831
|
)
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,498
|
|
|
|
|
|
|
|
4,498
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
(848
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(848
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,719
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
(20,719
|
)
|
||||||
Balance at December 31, 2017
|
305,751
|
|
|
$
|
306
|
|
|
$
|
4,883,670
|
|
|
$
|
3,509,484
|
|
|
$
|
(10,806
|
)
|
|
(162,044
|
)
|
|
$
|
(7,390,193
|
)
|
|
|
$
|
992,461
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities
|
(In thousands)
|
||||||||||
Net (loss) income
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
Loss (income) from discontinued operations
|
42,704
|
|
|
(66,257
|
)
|
|
(104,228
|
)
|
|||
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Amortization and impairment of intangible assets
|
82,878
|
|
|
70,494
|
|
|
224,750
|
|
|||
Depreciation and amortization of property and equipment
|
87,137
|
|
|
107,954
|
|
|
102,207
|
|
|||
Amortization of debt discount and transaction costs
|
38,298
|
|
|
37,085
|
|
|
36,013
|
|
|||
Stock-based compensation expense
|
165,120
|
|
|
152,739
|
|
|
128,262
|
|
|||
Deferred income tax expense (benefit)
|
94,158
|
|
|
(21,654
|
)
|
|
(85,235
|
)
|
|||
Excess tax benefit from stock-based compensation
|
—
|
|
|
(16,049
|
)
|
|
(5,873
|
)
|
|||
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies
|
(7,645
|
)
|
|
5,189
|
|
|
13,815
|
|
|||
Other non-cash items
|
11,924
|
|
|
8,618
|
|
|
6,767
|
|
|||
Total adjustments to reconcile net (loss) income to net cash provided by operating activities
|
471,870
|
|
|
344,376
|
|
|
420,706
|
|
|||
Changes in operating assets and liabilities, net of the effects of acquisitions:
|
|
|
|
|
|
||||||
Accounts receivable
|
(33,904
|
)
|
|
(61,662
|
)
|
|
(8,866
|
)
|
|||
Inventories
|
(2,545
|
)
|
|
(4,133
|
)
|
|
703
|
|
|||
Prepaid expenses and other current assets
|
(18,327
|
)
|
|
(12,077
|
)
|
|
(10,257
|
)
|
|||
Other assets
|
2,116
|
|
|
(2,747
|
)
|
|
(1,487
|
)
|
|||
Income taxes, net
|
318,795
|
|
|
42,431
|
|
|
48,675
|
|
|||
Accounts payable
|
(7,238
|
)
|
|
(16,365
|
)
|
|
6,408
|
|
|||
Accrued expenses and other current liabilities
|
34,886
|
|
|
22,650
|
|
|
49,662
|
|
|||
Deferred revenues
|
174,426
|
|
|
142,381
|
|
|
102,330
|
|
|||
Other liabilities
|
2,282
|
|
|
22,459
|
|
|
8,900
|
|
|||
Total changes in operating assets and liabilities, net of the effects of acquisitions
|
470,491
|
|
|
132,937
|
|
|
196,068
|
|
|||
Net cash provided by operating activities of continuing operations
|
964,346
|
|
|
947,168
|
|
|
831,907
|
|
|||
Net cash (used in) provided by operating activities of discontinued operations
|
(56,070
|
)
|
|
168,662
|
|
|
202,641
|
|
|||
Net cash provided by operating activities
|
908,276
|
|
|
1,115,830
|
|
|
1,034,548
|
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Purchases of available-for-sale investments
|
(1,155,659
|
)
|
|
(2,238,784
|
)
|
|
(2,182,681
|
)
|
|||
Proceeds from sales of available-for-sale investments
|
775,135
|
|
|
1,294,636
|
|
|
1,745,290
|
|
|||
Proceeds from maturities of available-for-sale investments
|
466,900
|
|
|
632,517
|
|
|
637,052
|
|
|||
Purchases of property and equipment
|
(80,901
|
)
|
|
(85,035
|
)
|
|
(97,566
|
)
|
|||
Cash paid for acquisitions, net of cash acquired
|
(60,449
|
)
|
|
(13,242
|
)
|
|
(95,331
|
)
|
|||
Cash paid for licensing agreements and product related intangible assets
|
(7,379
|
)
|
|
(25,940
|
)
|
|
(10,795
|
)
|
|||
Other
|
2,323
|
|
|
1,181
|
|
|
5,209
|
|
|||
Net cash (used in) provided by investing activities of continuing operations
|
(60,030
|
)
|
|
(434,667
|
)
|
|
1,178
|
|
|||
Net cash used in investing activities of discontinued operations
|
(3,891
|
)
|
|
(49,537
|
)
|
|
(225,593
|
)
|
|||
Net cash used in investing activities
|
(63,921
|
)
|
|
(484,204
|
)
|
|
(224,415
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Proceeds from issuance of common stock under stock-based compensation plans
|
2,114
|
|
|
41,247
|
|
|
112,285
|
|
|||
Proceeds from revolving credit facility
|
165,000
|
|
|
—
|
|
|
95,000
|
|
|||
Repayments on credit facility
|
(165,000
|
)
|
|
—
|
|
|
(95,000
|
)
|
|||
Proceeds from 2027 notes, net of issuance costs
|
741,039
|
|
|
—
|
|
|
—
|
|
|||
Repayment of acquired debt
|
(4,000
|
)
|
|
—
|
|
|
(3,175
|
)
|
|||
Excess tax benefit from stock-based compensation
|
—
|
|
|
16,049
|
|
|
5,873
|
|
|||
Stock repurchases, net
|
(1,174,957
|
)
|
|
(28,689
|
)
|
|
(755,704
|
)
|
|||
Accelerated stock repurchase program
|
(150,000
|
)
|
|
—
|
|
|
—
|
|
|||
Cash paid for tax withholding on vested stock awards
|
(80,040
|
)
|
|
(66,638
|
)
|
|
(46,336
|
)
|
|||
Transfer of cash to GoTo Business resulting from the separation
|
(28,523
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used in financing activities of continuing operations
|
(694,367
|
)
|
|
(38,031
|
)
|
|
(687,057
|
)
|
|||
Net cash used in financing activities of discontinued operations
|
—
|
|
|
—
|
|
|
(4,394
|
)
|
|||
Net cash used in financing activities
|
(694,367
|
)
|
|
(38,031
|
)
|
|
(691,451
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
8,186
|
|
|
(5,157
|
)
|
|
(10,313
|
)
|
|||
Change in cash and cash equivalents
|
158,174
|
|
|
588,438
|
|
|
108,369
|
|
|||
Cash and cash equivalents at beginning of period, including cash of discontinued operations of $120,861, $57,762 and $34,651, respectively
|
956,956
|
|
|
368,518
|
|
|
260,149
|
|
|||
Cash and cash equivalents at end of period
|
1,115,130
|
|
|
956,956
|
|
|
368,518
|
|
|||
Less cash of discontinued operations
|
—
|
|
|
(120,861
|
)
|
|
(57,762
|
)
|
|||
Cash and cash equivalents at end of period
|
1,115,130
|
|
|
$
|
836,095
|
|
|
$
|
310,756
|
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
||||||
Cash paid for income taxes
|
$
|
61,126
|
|
|
$
|
64,361
|
|
|
$
|
45,827
|
|
Cash paid for interest
|
$
|
8,764
|
|
|
$
|
7,847
|
|
|
$
|
8,215
|
|
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In thousands)
|
||||||
Buildings
|
|
$
|
76,152
|
|
|
$
|
76,152
|
|
Computer equipment
|
|
176,140
|
|
|
170,252
|
|
||
Software
|
|
388,583
|
|
|
350,195
|
|
||
Equipment and furniture
|
|
73,700
|
|
|
71,182
|
|
||
Leasehold improvements
|
|
168,656
|
|
|
164,090
|
|
||
|
|
883,231
|
|
|
831,871
|
|
||
Less: accumulated depreciation and amortization
|
|
(675,892
|
)
|
|
(602,433
|
)
|
||
Assets under construction
|
|
28,824
|
|
|
15,747
|
|
||
Land
|
|
16,769
|
|
|
16,769
|
|
||
Total
|
|
$
|
252,932
|
|
|
$
|
261,954
|
|
|
Balance at January 1, 2017
|
|
Additions
|
|
Other
|
|
Balance at December 31, 2017
|
|
Balance at January 1, 2016
|
|
Additions
|
|
Other
|
|
Balance at December 31, 2016
|
||||||||||||||||
Goodwill
|
$
|
1,585,893
|
|
|
$
|
28,601
|
|
(1)
|
$
|
—
|
|
|
$
|
1,614,494
|
|
|
$
|
1,585,621
|
|
|
$
|
897
|
|
(2)
|
$
|
(625
|
)
|
(3)
|
$
|
1,585,893
|
|
|
|
(1)
|
Amount relates to purchase price allocation of goodwill associated with the 2017 business combination. See Note 4 for more information regarding the Company's acquisitions.
|
(2)
|
Amount relates to purchase price allocation of goodwill associated with the 2016 business combination. See Note 4 for more information regarding the Company’s acquisitions.
|
(3)
|
Amount relates to goodwill associated with the sale of the Company’s CloudPlatform and CloudPortal Business Manager solutions and to adjustments to the preliminary purchase price allocation associated with 2015 acquisitions. See Note 4 for more information regarding the Company's acquisitions and divestitures.
|
|
December 31, 2017
|
||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Weighted-Average Life (Years)
|
||||
Product related intangible assets
|
$
|
663,004
|
|
|
$
|
554,934
|
|
|
6.10
|
Other
|
222,923
|
|
|
189,041
|
|
|
6.49
|
||
Total
|
$
|
885,927
|
|
|
$
|
743,975
|
|
|
6.20
|
|
December 31, 2016
|
||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Weighted-Average Life (Years)
|
||||
Product related intangible assets
|
$
|
647,594
|
|
|
$
|
520,746
|
|
|
6.12
|
Other
|
223,692
|
|
|
176,859
|
|
|
6.54
|
||
Total
|
$
|
871,286
|
|
|
$
|
697,605
|
|
|
6.23
|
Year ending December 31,
|
|
||
2018
|
$
|
54,486
|
|
2019
|
35,213
|
|
|
2020
|
23,050
|
|
|
2021
|
9,061
|
|
|
2022
|
7,210
|
|
|
Thereafter
|
12,932
|
|
|
Total
|
$
|
141,952
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in thousands)
|
||||||||||
Net revenues
|
$
|
58,215
|
|
|
$
|
682,185
|
|
|
$
|
629,440
|
|
Cost of net revenues
|
15,456
|
|
|
154,652
|
|
|
140,324
|
|
|||
Gross margin
|
42,759
|
|
|
527,533
|
|
|
489,116
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||
Research and development
|
9,108
|
|
|
93,892
|
|
|
83,018
|
|
|||
Sales, marketing and services
|
20,881
|
|
|
209,475
|
|
|
189,560
|
|
|||
General and administrative
|
7,636
|
|
|
63,270
|
|
|
50,068
|
|
|||
Amortization of other intangible assets
|
1,176
|
|
|
14,097
|
|
|
11,254
|
|
|||
Restructuring
|
3,189
|
|
|
3,721
|
|
|
1,750
|
|
|||
Separation
|
40,573
|
|
|
54,084
|
|
|
6,173
|
|
|||
Total operating expenses
|
82,563
|
|
|
438,539
|
|
|
341,823
|
|
|||
(Loss) income from discontinued operations before income taxes
|
(39,804
|
)
|
|
88,994
|
|
|
147,293
|
|
|||
Income tax expense
|
2,900
|
|
|
22,737
|
|
|
43,065
|
|
|||
(Loss) income from discontinued operations, net of income tax
|
$
|
(42,704
|
)
|
|
$
|
66,257
|
|
|
$
|
104,228
|
|
|
December 31, 2016
|
||
|
(in thousands)
|
||
Assets
|
|
||
Current assets:
|
|
||
Cash
|
$
|
120,861
|
|
Accounts receivable, net
|
44,734
|
|
|
Prepaid expenses and other current assets
|
14,094
|
|
|
Total current assets of discontinued operations
|
179,689
|
|
|
Property and equipment, net
|
81,866
|
|
|
Goodwill
|
380,917
|
|
|
Other intangible assets, net
|
54,312
|
|
|
Deferred tax assets, net
|
18,496
|
|
|
Other assets
|
3,340
|
|
|
Long-term assets of discontinued operations
|
$
|
538,931
|
|
Total major classes of assets of discontinued operations
|
$
|
718,620
|
|
|
|
||
Liabilities
|
|
||
Current liabilities:
|
|
||
Accounts payable
|
$
|
11,333
|
|
Accrued expenses and other current liabilities
|
46,088
|
|
|
Current portion of deferred revenues
|
115,249
|
|
|
Total current liabilities of discontinued operations
|
172,670
|
|
|
Long-term portion of deferred revenues
|
4,224
|
|
|
Other liabilities
|
3,484
|
|
|
Long-term liabilities of discontinued operations
|
$
|
7,708
|
|
Total major classes of liabilities of discontinued operations
|
$
|
180,378
|
|
|
Unidesk
|
||||
|
Purchase Price Allocation
|
|
Asset Life
|
||
Current assets
|
$
|
5,321
|
|
|
|
Property and equipment
|
131
|
|
|
|
|
Intangible assets
|
39,470
|
|
|
4 years
|
|
Goodwill
|
28,601
|
|
|
Indefinite
|
|
Deferred taxes
|
1,364
|
|
|
|
|
Other assets
|
90
|
|
|
|
|
Assets acquired
|
74,977
|
|
|
|
|
Other current liabilities assumed
|
2,290
|
|
|
|
|
Current portion of deferred revenues
|
3,042
|
|
|
|
|
Long term portion of deferred revenues
|
2,412
|
|
|
|
|
Long-term liabilities assumed
|
4,086
|
|
|
|
|
Net assets acquired
|
$
|
63,147
|
|
|
|
|
Unidesk
|
|
Asset Life
|
||
Developed technology
|
$
|
35,230
|
|
|
4 years
|
Customer contracts
|
4,240
|
|
|
4 years
|
|
Total
|
$
|
39,470
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
Description of the Securities
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||||||||||
Agency securities
|
$
|
441,315
|
|
|
$
|
509
|
|
|
$
|
(2,760
|
)
|
|
$
|
439,064
|
|
|
$
|
411,963
|
|
|
$
|
699
|
|
|
$
|
(1,169
|
)
|
|
$
|
411,493
|
|
Corporate securities
|
810,444
|
|
|
268
|
|
|
(3,020
|
)
|
|
807,692
|
|
|
842,887
|
|
|
193
|
|
|
(2,114
|
)
|
|
840,966
|
|
||||||||
Municipal securities
|
3,965
|
|
|
2
|
|
|
(2
|
)
|
|
3,965
|
|
|
9,989
|
|
|
3
|
|
|
(4
|
)
|
|
9,988
|
|
||||||||
Government securities
|
367,595
|
|
|
44
|
|
|
(1,516
|
)
|
|
366,123
|
|
|
445,083
|
|
|
135
|
|
|
(600
|
)
|
|
444,618
|
|
||||||||
Total
|
$
|
1,623,319
|
|
|
$
|
823
|
|
|
$
|
(7,298
|
)
|
|
$
|
1,616,844
|
|
|
$
|
1,709,922
|
|
|
$
|
1,030
|
|
|
$
|
(3,887
|
)
|
|
$
|
1,707,065
|
|
•
|
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.
|
|
As of December 31, 2017
|
|
Quoted
Prices In
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
556,520
|
|
|
$
|
556,520
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
555,826
|
|
|
555,826
|
|
|
—
|
|
|
—
|
|
||||
Corporate securities
|
2,784
|
|
|
—
|
|
|
2,784
|
|
|
—
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
439,064
|
|
|
—
|
|
|
439,064
|
|
|
—
|
|
||||
Corporate securities
|
807,692
|
|
|
—
|
|
|
807,299
|
|
|
393
|
|
||||
Municipal securities
|
3,965
|
|
|
—
|
|
|
3,965
|
|
|
—
|
|
||||
Government securities
|
366,123
|
|
|
—
|
|
|
366,123
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
2,498
|
|
|
—
|
|
|
2,498
|
|
|
—
|
|
||||
Total assets
|
$
|
2,734,472
|
|
|
$
|
1,112,346
|
|
|
$
|
1,621,733
|
|
|
$
|
393
|
|
Accrued expenses and other current liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
814
|
|
|
—
|
|
|
814
|
|
|
—
|
|
||||
Total liabilities
|
$
|
814
|
|
|
$
|
—
|
|
|
$
|
814
|
|
|
$
|
—
|
|
|
As of December 31, 2016
|
|
Quoted
Prices In
Active Markets
for Identical
Assets (Level 1)
|
|
Significant
Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
528,637
|
|
|
$
|
528,637
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market funds
|
224,765
|
|
|
224,765
|
|
|
—
|
|
|
—
|
|
||||
Corporate securities
|
82,693
|
|
|
—
|
|
|
82,693
|
|
|
—
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Agency securities
|
411,493
|
|
|
—
|
|
|
411,493
|
|
|
—
|
|
||||
Corporate securities
|
840,966
|
|
|
—
|
|
|
839,968
|
|
|
998
|
|
||||
Municipal securities
|
9,988
|
|
|
—
|
|
|
9,988
|
|
|
—
|
|
||||
Government securities
|
444,618
|
|
|
—
|
|
|
444,618
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
2,506
|
|
|
—
|
|
|
2,506
|
|
|
—
|
|
||||
Total assets
|
$
|
2,545,666
|
|
|
$
|
753,402
|
|
|
$
|
1,791,266
|
|
|
$
|
998
|
|
Accrued expenses and other current liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
4,435
|
|
|
—
|
|
|
4,435
|
|
|
—
|
|
||||
Total liabilities
|
$
|
4,435
|
|
|
$
|
—
|
|
|
$
|
4,435
|
|
|
$
|
—
|
|
|
Fair Value
|
|
Carrying Value
|
||||
2027 Notes
|
$
|
764,325
|
|
|
$
|
741,150
|
|
Convertible Senior Notes
|
$
|
1,868,944
|
|
|
$
|
1,386,324
|
|
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In thousands)
|
||||||
Accrued compensation and employee benefits
|
|
$
|
161,049
|
|
|
$
|
143,666
|
|
Other accrued expenses
|
|
116,630
|
|
|
113,133
|
|
||
Total
|
|
$
|
277,679
|
|
|
$
|
256,799
|
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|||
Expected volatility factor
|
0.27 - 0.29
|
|
|
0.27 - 0.41
|
|
|
0.35
|
|
Risk free interest rate
|
0.60% - 1.12%
|
|
|
0.25% - 0.42%
|
|
|
0.25
|
%
|
Expected dividend yield
|
0
|
%
|
|
0
|
%
|
|
0
|
%
|
Expected life (in years)
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
•
|
The number of shares of common stock subject to each outstanding stock option was increased and the corresponding exercise price was decreased to maintain the intrinsic value of each outstanding stock option immediately before and after the Spin-off. There was no incremental expense related to this adjustment.
|
•
|
The number of shares of common stock underlying each outstanding non-vested stock unit and performance unit was increased to preserve the intrinsic value of such award immediately prior to the Spin-off.
|
•
|
The opening prices of the performance units granted in 2015 and 2016 were adjusted to reflect the value of the shares of LogMeIn stock distributed to the Company's stockholders as a result of the Spin-off. These adjustments resulted in
$6.5 million
in incremental compensation expense to be recognized over the remaining vesting life of the underlying awards.
|
Income Statement Classifications
|
2017
|
|
2016
|
|
2015
|
||||||
Cost of services and maintenance revenues
|
$
|
4,281
|
|
|
$
|
2,179
|
|
|
$
|
1,924
|
|
Research and development
|
47,291
|
|
|
38,578
|
|
|
38,910
|
|
|||
Sales, marketing and services
|
55,173
|
|
|
48,514
|
|
|
45,041
|
|
|||
General and administrative
|
58,375
|
|
|
63,468
|
|
|
42,387
|
|
|||
Total
|
$
|
165,120
|
|
|
$
|
152,739
|
|
|
$
|
128,262
|
|
|
March 2017 Grant
|
March 2016 Grant
|
January 2016 Grant
|
March 2015 Grant
|
||||
Expected volatility factor
|
0.27 - 0.32
|
|
0.29 - 0.39
|
|
0.29 - 0.37
|
|
0.14 - 0.29
|
|
Risk free interest rate
|
1.48
|
%
|
0.91
|
%
|
1.10
|
%
|
0.85
|
%
|
Expected dividend yield
|
0
|
%
|
0
|
%
|
0
|
%
|
0
|
%
|
|
|
Number of
Shares
|
|
Weighted-
Average
Fair Value
at Grant Date
|
|||
Non-vested stock units at December 31, 2016
|
|
4,391,836
|
|
|
$
|
70.67
|
|
Granted
|
|
3,155,701
|
|
|
86.41
|
|
|
Vested
|
|
(2,259,454
|
)
|
|
66.39
|
|
|
Forfeited
|
|
(1,592,566
|
)
|
|
55.42
|
|
|
Adjustment due to the Spin-Off of the GoTo Business
|
|
927,029
|
|
|
5.57
|
|
|
Non-vested stock units at December 31, 2017
|
|
4,622,546
|
|
|
82.83
|
|
|
|
Operating
Leases
|
|
Sublease
Income
|
||||
|
|
(In thousands)
|
||||||
Years ending December 31,
|
|
|
|
|
||||
2018
|
|
$
|
56,736
|
|
|
$
|
204
|
|
2019
|
|
53,288
|
|
|
—
|
|
||
2020
|
|
44,789
|
|
|
—
|
|
||
2021
|
|
37,341
|
|
|
—
|
|
||
2022
|
|
33,547
|
|
|
—
|
|
||
Thereafter
|
|
114,333
|
|
|
—
|
|
||
Total
|
|
$
|
340,034
|
|
|
$
|
204
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
||||||||||
United States
|
|
$
|
78,897
|
|
|
$
|
59,344
|
|
|
$
|
(135,978
|
)
|
Foreign
|
|
471,449
|
|
|
468,426
|
|
|
300,562
|
|
|||
Total
|
|
$
|
550,346
|
|
|
$
|
527,770
|
|
|
$
|
164,584
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
(In thousands)
|
||||||||||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
374,602
|
|
|
$
|
18,832
|
|
|
$
|
(12,450
|
)
|
Foreign
|
|
56,526
|
|
|
52,978
|
|
|
40,613
|
|
|||
State
|
|
3,075
|
|
|
7,759
|
|
|
6,523
|
|
|||
Total current
|
|
434,203
|
|
|
79,569
|
|
|
34,686
|
|
|||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
52,842
|
|
|
(7,688
|
)
|
|
(69,104
|
)
|
|||
Foreign
|
|
(5,468
|
)
|
|
(3,139
|
)
|
|
(2,991
|
)
|
|||
State
|
|
46,784
|
|
|
(10,827
|
)
|
|
(13,140
|
)
|
|||
Total deferred
|
|
94,158
|
|
|
(21,654
|
)
|
|
(85,235
|
)
|
|||
Total provision
|
|
$
|
528,361
|
|
|
$
|
57,915
|
|
|
$
|
(50,549
|
)
|
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In thousands)
|
||||||
Deferred tax assets
|
|
$
|
152,362
|
|
|
$
|
233,900
|
|
Deferred tax liabilities
|
|
(237
|
)
|
|
(1,472
|
)
|
||
Total net deferred tax assets
|
|
$
|
152,125
|
|
|
$
|
232,428
|
|
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
|
||||
Accruals and reserves
|
|
$
|
30,317
|
|
|
$
|
41,094
|
|
Deferred revenue
|
|
65,016
|
|
|
95,969
|
|
||
Tax credits
|
|
80,772
|
|
|
50,072
|
|
||
Net operating losses
|
|
36,674
|
|
|
41,986
|
|
||
Stock based compensation
|
|
21,714
|
|
|
34,349
|
|
||
Transaction costs
|
|
—
|
|
|
557
|
|
||
Depreciation and amortization
|
|
4,939
|
|
|
1,933
|
|
||
Other
|
|
—
|
|
|
267
|
|
||
Valuation allowance
|
|
(76,789
|
)
|
|
(14,156
|
)
|
||
Total deferred tax assets
|
|
162,643
|
|
|
252,071
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Acquired technology
|
|
(2,882
|
)
|
|
(8,524
|
)
|
||
Prepaid expenses
|
|
(7,414
|
)
|
|
(11,119
|
)
|
||
Other
|
|
(222
|
)
|
|
—
|
|
||
Total deferred tax liabilities
|
|
(10,518
|
)
|
|
(19,643
|
)
|
||
Total net deferred tax assets
|
|
$
|
152,125
|
|
|
$
|
232,428
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|
2015
|
|||
Federal statutory taxes
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
|
2.1
|
|
|
0.8
|
|
|
(1.0
|
)
|
Foreign operations
|
|
(20.0
|
)
|
|
(21.6
|
)
|
|
(41.1
|
)
|
Permanent differences
|
|
2.6
|
|
|
3.2
|
|
|
13.9
|
|
The 2017 Tax Act - tax rate impact on deferred taxes
|
|
11.8
|
|
|
—
|
|
|
—
|
|
The 2017 Tax Act - transition tax
|
|
66.3
|
|
|
—
|
|
|
—
|
|
Change in valuation allowance reserve
|
|
8.8
|
|
|
—
|
|
|
—
|
|
Change in deferred tax liability related to acquired intangibles
|
|
0.3
|
|
|
(0.8
|
)
|
|
(12.6
|
)
|
Tax credits
|
|
(7.6
|
)
|
|
(7.9
|
)
|
|
(20.7
|
)
|
Stock-based compensation
|
|
(3.6
|
)
|
|
0.3
|
|
|
0.8
|
|
Change in accruals for uncertain tax positions
|
|
0.3
|
|
|
2.2
|
|
|
(5.9
|
)
|
Other
|
|
—
|
|
|
(0.2
|
)
|
|
0.9
|
|
|
|
96.0
|
%
|
|
11.0
|
%
|
|
(30.7
|
)%
|
Balance at January 1, 2016
|
$
|
54,621
|
|
Additions based on tax positions related to the current year
|
11,588
|
|
|
Additions for tax positions of prior years
|
4,759
|
|
|
Reductions related to the expiration of statutes of limitations
|
(1,167
|
)
|
|
Balance at December 31, 2016
|
69,801
|
|
|
Additions based on tax positions related to the current year
|
$
|
9,293
|
|
Additions for tax positions of prior years
|
7,656
|
|
|
Reductions related to audit settlements
|
(137
|
)
|
|
Reductions related to the expiration of statutes of limitations
|
(8,764
|
)
|
|
Balance at December 31, 2017
|
$
|
77,849
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In thousands)
|
||||||
Property and equipment, net:
|
|
|
|
||||
United States
|
$
|
189,465
|
|
|
$
|
197,077
|
|
United Kingdom
|
24,171
|
|
|
25,321
|
|
||
Other countries
|
39,296
|
|
|
39,556
|
|
||
Total property and equipment, net
|
$
|
252,932
|
|
|
$
|
261,954
|
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Net revenues:
|
|
|
|
|
|
||||||
Workspace Services revenues
(1)
|
$
|
1,734,837
|
|
|
$
|
1,684,897
|
|
|
$
|
1,633,820
|
|
Networking revenues
(2)
|
790,434
|
|
|
782,875
|
|
|
749,910
|
|
|||
Content Collaboration revenues
(3)
|
167,115
|
|
|
136,842
|
|
|
106,655
|
|
|||
Professional services
(4)
|
132,300
|
|
|
131,466
|
|
|
155,769
|
|
|||
Total net revenues
|
$
|
2,824,686
|
|
|
$
|
2,736,080
|
|
|
$
|
2,646,154
|
|
|
|
(1)
|
Workspace Services revenues are primarily comprised of sales from the Company’s application virtualization solutions, which include XenDesktop and XenApp, the Company's enterprise mobility management solutions, which include XenMobile, related license updates and maintenance and support and cloud offerings.
|
(2)
|
Networking revenues primarily include NetScaler ADC and NetScaler SD-WAN, related license updates and maintenance and support and cloud offerings.
|
(3)
|
Content Collaboration revenues primarily include ShareFile, Podio and related cloud offerings.
|
(4)
|
Professional services revenues are primarily comprised of revenues from consulting services and product training and certification services.
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Net revenues:
|
|
|
|
|
|
||||||
Americas
|
$
|
1,644,008
|
|
|
$
|
1,598,896
|
|
|
$
|
1,487,364
|
|
EMEA
|
888,072
|
|
|
863,517
|
|
|
873,620
|
|
|||
APJ
|
292,606
|
|
|
273,667
|
|
|
285,170
|
|
|||
Total net revenues
|
$
|
2,824,686
|
|
|
$
|
2,736,080
|
|
|
$
|
2,646,154
|
|
|
December 31, 2017
|
December 31, 2016
|
||||
Liability component
|
|
|
||||
Principal
|
$
|
1,437,483
|
|
$
|
1,437,500
|
|
Less: note discount and issuance costs
|
(51,159
|
)
|
(89,344
|
)
|
||
Net carrying amount
|
$
|
1,386,324
|
|
$
|
1,348,156
|
|
|
|
|
||||
Equity component
|
|
|
||||
Temporary Equity
|
$
|
—
|
|
$
|
79,495
|
|
Additional paid-in-capital
|
162,869
|
|
83,374
|
|
||
Total equity (including temporary equity)
|
$
|
162,869
|
|
$
|
162,869
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Contractual interest expense
|
$
|
7,187
|
|
|
$
|
7,187
|
|
|
$
|
7,188
|
|
Amortization of debt issuance costs
|
3,959
|
|
|
3,863
|
|
|
3,974
|
|
|||
Amortization of debt discount
|
34,018
|
|
|
33,014
|
|
|
32,039
|
|
|||
|
$
|
45,164
|
|
|
$
|
44,064
|
|
|
$
|
43,201
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
(In thousands)
|
||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||
Derivatives Designated as
Hedging Instruments
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
Foreign currency forward contracts
|
Prepaid
expenses
and other
current
assets
|
|
$2,481
|
|
Prepaid
expenses
and other
current
assets
|
|
$460
|
|
Accrued
expenses
and other
current
liabilities
|
|
$110
|
|
Accrued
expenses
and other
current
liabilities
|
|
$3,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
(In thousands)
|
||||||||||||||
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||
Derivatives Not Designated as
Hedging Instruments
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
|
Balance Sheet
Location
|
|
Fair
Value
|
Foreign currency forward contracts
|
Prepaid
expenses
and other
current
assets
|
|
$17
|
|
Prepaid
expenses
and other
current
assets
|
|
$2,046
|
|
Accrued
expenses
and other
current
liabilities
|
|
$704
|
|
Accrued
expenses
and other
current
liabilities
|
|
$619
|
|
For the Year ended December 31,
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||
Derivatives in Cash Flow
Hedging Relationships
|
Amount of Gain (Loss) Recognized in Other
Comprehensive Income (Loss) (Effective Portion) |
|
Location of Gain (Loss) Reclassified from Accumulated Other
Comprehensive Loss
into Income
(Effective Portion)
|
|
Amount of Gain (Loss) Reclassified from
Accumulated Other Comprehensive Loss (Effective Portion) |
||||||||||||
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
||||||||
Foreign currency forward contracts
|
$
|
5,288
|
|
|
$
|
(875
|
)
|
|
Operating expenses
|
|
$
|
758
|
|
|
$
|
(1,763
|
)
|
|
For the Year ended December 31,
|
||||||||
|
(In thousands)
|
||||||||
Derivatives Not Designated as Hedging Instruments
|
Location of Loss Recognized in Income on
Derivative
|
|
Amount of Loss Recognized in Income on Derivative
|
||||||
|
|
|
2017
|
|
2016
|
||||
Foreign currency forward contracts
|
Other income (expense), net
|
|
$
|
(6,804
|
)
|
|
$
|
(1,030
|
)
|
Foreign Currency
|
Currency
Denomination
|
Australian dollars
|
AUD 14,400
|
Brazilian Real
|
BRL 5,700
|
British pounds sterling
|
GBP 8,800
|
Canadian dollars
|
CAD 2,850
|
Chinese renminbi
|
CNY 69,200
|
Danish krone
|
DKK 5,347
|
Euro
|
EUR 13,500
|
Hong Kong dollars
|
HKD 8,100
|
Indian rupees
|
INR 38,900
|
Japanese yen
|
JPY 1,508,800
|
Singapore dollars
|
SGD 13,900
|
Swiss francs
|
CHF 15,650
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
21,985
|
|
|
$
|
469,855
|
|
|
$
|
215,133
|
|
(Loss) income from discontinued operations, net of income taxes
|
(42,704
|
)
|
|
66,257
|
|
|
104,228
|
|
|||
Net (loss) income
|
$
|
(20,719
|
)
|
|
$
|
536,112
|
|
|
$
|
319,361
|
|
Denominator:
|
|
|
|
|
|
||||||
Denominator for basic earnings per share - weighted-average shares outstanding
|
150,779
|
|
|
155,134
|
|
|
158,874
|
|
|||
Effect of dilutive employee stock awards
|
2,493
|
|
|
1,950
|
|
|
1,488
|
|
|||
Effect of dilutive Convertible Notes
|
2,231
|
|
|
—
|
|
|
—
|
|
|||
Denominator for diluted earnings per share - weighted-average shares outstanding
|
155,503
|
|
|
157,084
|
|
|
160,362
|
|
|||
|
|
|
|
|
|
||||||
Basic (loss) earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
0.15
|
|
|
$
|
3.03
|
|
|
$
|
1.35
|
|
(Loss) income from discontinued operations, net of income taxes
|
(0.28
|
)
|
|
0.43
|
|
|
0.66
|
|
|||
Basic net (loss) earnings per share
|
$
|
(0.13
|
)
|
|
$
|
3.46
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
||||||
Diluted (loss) earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
0.14
|
|
|
$
|
2.99
|
|
|
$
|
1.34
|
|
(Loss) income from discontinued operations, net of income taxes
|
(0.27
|
)
|
|
0.42
|
|
|
0.65
|
|
|||
Diluted net (loss) earnings per share:
|
$
|
(0.13
|
)
|
|
$
|
3.41
|
|
|
$
|
1.99
|
|
Anti-dilutive weighted-average shares from stock awards
|
215
|
|
|
322
|
|
|
2,151
|
|
|
Foreign currency
|
|
Unrealized loss on available-for-sale securities
|
|
Unrealized (loss) gain on derivative instruments
|
|
Other comprehensive loss on pension liability
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Balance at December 31, 2016
|
$
|
(16,346
|
)
|
|
$
|
(3,108
|
)
|
|
$
|
(3,130
|
)
|
|
$
|
(6,120
|
)
|
|
$
|
(28,704
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(3,285
|
)
|
|
6,046
|
|
|
2,768
|
|
|
5,529
|
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
(273
|
)
|
|
(758
|
)
|
|
—
|
|
|
(1,031
|
)
|
|||||
Net current period other comprehensive (loss) income
|
—
|
|
|
(3,558
|
)
|
|
5,288
|
|
|
2,768
|
|
|
4,498
|
|
|||||
Distribution of the GoTo Business
|
13,400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,400
|
|
|||||
Balance at December 31, 2017
|
$
|
(2,946
|
)
|
|
$
|
(6,666
|
)
|
|
$
|
2,158
|
|
|
$
|
(3,352
|
)
|
|
$
|
(10,806
|
)
|
|
|
For the Twelve Months Ended December 31, 2017
|
||||
|
|
(In thousands)
|
||||
Details about accumulated other comprehensive loss components
|
|
Amount reclassified from Accumulated other comprehensive loss, net of tax
|
|
Affected line item in the Consolidated Statements of Income
|
||
Unrealized net losses on available-for-sale securities
|
|
$
|
(273
|
)
|
|
Other income (expense), net
|
Unrealized net gains on cash flow hedges
|
|
(758
|
)
|
|
Operating expenses *
|
|
|
|
$
|
(1,031
|
)
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Employee severance and related costs
|
$
|
62,844
|
|
|
$
|
41,054
|
|
|
$
|
74,879
|
|
Consolidation of leased facilities
|
9,718
|
|
|
28,857
|
|
|
22,100
|
|
|||
Reversal of previous charges
|
(187
|
)
|
|
(2,510
|
)
|
|
(286
|
)
|
|||
Other
|
—
|
|
|
—
|
|
|
1,968
|
|
|||
Total Restructuring charges
|
$
|
72,375
|
|
|
$
|
67,401
|
|
|
$
|
98,661
|
|
|
Total
|
||
Balance at January 1, 2017
|
$
|
38,059
|
|
Restructuring charges
|
72,375
|
|
|
Payments
|
(55,151
|
)
|
|
Balance at December 31, 2017
|
$
|
55,283
|
|
•
|
Income tax accounting -
The Company adopted the guidance related to the recognition of excess tax
|
•
|
Forfeitures -
The Company elected to account for forfeitures as they occur on a modified retrospective
|
•
|
Cash flow presentation -
The Company elected to adopt the guidance related to the presentation of
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total Year
|
||||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
|
$
|
662,677
|
|
|
$
|
693,227
|
|
|
$
|
690,925
|
|
|
$
|
777,857
|
|
|
$
|
2,824,686
|
|
Gross margin
|
|
560,219
|
|
|
583,915
|
|
|
584,988
|
|
|
655,918
|
|
|
2,385,040
|
|
|||||
Income (loss) from continuing operations
|
|
70,325
|
|
|
108,829
|
|
|
126,720
|
|
|
(283,889
|
)
|
|
21,985
|
|
|||||
Loss from discontinued operations, net of tax
|
|
(42,704
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,704
|
)
|
|||||
Net income (loss)
|
|
27,621
|
|
|
108,829
|
|
|
126,720
|
|
|
(283,889
|
)
|
|
(20,719
|
)
|
|||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
0.46
|
|
|
0.72
|
|
|
0.84
|
|
|
(1.93
|
)
|
|
0.15
|
|
|||||
Loss from discontinued operations
|
|
(0.28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.28
|
)
|
|||||
Basic net earnings (loss) per share
|
|
0.18
|
|
|
0.72
|
|
|
0.84
|
|
|
(1.93
|
)
|
|
(0.13
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
0.44
|
|
|
0.70
|
|
|
0.82
|
|
|
(1.93
|
)
|
|
0.14
|
|
|||||
Loss from discontinued operations
|
|
(0.27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.27
|
)
|
|||||
Diluted net earnings (loss) per share
|
|
0.17
|
|
|
0.70
|
|
|
0.82
|
|
|
(1.93
|
)
|
|
(0.13
|
)
|
|||||
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total Year
|
||||||||||
|
|
(In thousands, except per share amounts)
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenues
|
|
$
|
658,773
|
|
|
$
|
673,987
|
|
|
$
|
668,736
|
|
|
$
|
734,584
|
|
|
$
|
2,736,080
|
|
Gross margin
|
|
558,962
|
|
|
566,796
|
|
|
570,565
|
|
|
634,868
|
|
|
2,331,191
|
|
|||||
Income from continuing operations
|
|
73,254
|
|
|
106,289
|
|
|
111,737
|
|
|
178,575
|
|
|
469,855
|
|
|||||
Income from discontinued operations, net of tax
|
|
10,209
|
|
|
14,609
|
|
|
20,164
|
|
|
21,275
|
|
|
66,257
|
|
|||||
Net income
|
|
83,463
|
|
|
120,898
|
|
|
131,901
|
|
|
199,850
|
|
|
536,112
|
|
|||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
0.47
|
|
|
0.69
|
|
|
0.72
|
|
|
1.15
|
|
|
3.03
|
|
|||||
Income from discontinued operations
|
|
0.07
|
|
|
0.09
|
|
|
0.13
|
|
|
0.13
|
|
|
0.43
|
|
|||||
Basic earnings per share
|
|
0.54
|
|
|
0.78
|
|
|
0.85
|
|
|
1.28
|
|
|
3.46
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
|
0.47
|
|
|
0.68
|
|
|
0.71
|
|
|
1.13
|
|
|
2.99
|
|
|||||
Income from discontinued operations
|
|
0.07
|
|
|
0.09
|
|
|
0.13
|
|
|
0.13
|
|
|
0.42
|
|
|||||
Diluted earnings per share
|
|
0.54
|
|
|
0.77
|
|
|
0.84
|
|
|
1.26
|
|
|
3.41
|
|
|
|
Beginning
of Period
|
|
Charged to
Expense
|
|
Charged
to Other
Accounts
|
|
|
|
Deductions
|
|
|
|
Balance
at End
of Period
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
3,889
|
|
|
$
|
3,917
|
|
|
$
|
9
|
|
|
(3)
|
|
$
|
4,395
|
|
|
(2)
|
|
$
|
3,420
|
|
Allowance for returns
|
|
1,994
|
|
|
—
|
|
|
4,890
|
|
|
(1)
|
|
5,659
|
|
|
(4)
|
|
1,225
|
|
|||||
Valuation allowance for deferred tax assets
|
|
14,156
|
|
|
—
|
|
|
62,633
|
|
|
(5)
|
|
—
|
|
|
|
|
76,789
|
|
|||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
6,241
|
|
|
$
|
954
|
|
|
$
|
—
|
|
|
|
|
$
|
3,306
|
|
|
(2)
|
|
$
|
3,889
|
|
Allowance for returns
|
|
1,438
|
|
|
—
|
|
|
2,088
|
|
|
(1)
|
|
1,532
|
|
|
(4)
|
|
1,994
|
|
|||||
Valuation allowance for deferred tax assets
|
|
16,673
|
|
|
—
|
|
|
(2,517
|
)
|
|
(5)
|
|
—
|
|
|
|
|
14,156
|
|
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$
|
3,750
|
|
|
$
|
5,578
|
|
|
$
|
—
|
|
|
|
|
$
|
3,087
|
|
|
(2)
|
|
$
|
6,241
|
|
Allowance for returns
|
|
2,185
|
|
|
—
|
|
|
3,276
|
|
|
(1)
|
|
4,023
|
|
|
(4)
|
|
1,438
|
|
|||||
Valuation allowance for deferred tax assets
|
|
15,167
|
|
|
—
|
|
|
1,506
|
|
|
(5)
|
|
—
|
|
|
|
|
16,673
|
|
|
|
(1)
|
Charged against revenues.
|
(2)
|
Uncollectible accounts written off, net of recoveries.
|
(3)
|
Adjustments from acquisitions.
|
(4)
|
Credits issued for returns.
|
(5)
|
Related to deferred tax assets on foreign tax credits, net operating loss carryforwards, and depreciation.
|
i.
|
your continued support of the leadership transition of the WW Sales & Services function as a full-time employee of the Company or its successor through December 31, 2017,
|
ii.
|
your continued employment with the Company from January 1, 2018 through March 31, 2018, during which time you would be available to assist the Company or its successor with an orderly transition of leadership of the WW Sales & Services function to your successor on an as-needed basis, and
|
iii.
|
you signing a separation and release agreement in substantially the form attached hereto as
Appendix A
(the “
Separation Agreement and Release
”), and the Separation Agreement and Release becoming irrevocable all within 60 days after March 31, 2018,
|
iv.
|
Section 3(b) of your Executive Agreement, by and between the Company and you, dated January 19, 2017 (the “
Executive Agreement
”) if a Change in Control (as defined in the Executive Agreement) has occurred by your last day of employment with the Company (
i.e.
, as if you were terminated by the Company without Cause (as defined in the Executive Agreement) upon or within 12 months after a Change in Control), or
|
v.
|
Section 2 of your Executive Agreement if a Change of Control in fact has not occurred by your last day of employment with the Company (
i.e.
, as if you were terminated by the Company without Cause prior to a Change in Control) (the severance benefits under clause iv or v herein referred to as a “
Severance Payment
”).
|
•
|
relating to my employment by the Company and my separation from employment;
|
•
|
of wrongful discharge;
|
•
|
of breach of contract;
|
•
|
of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of age discrimination or retaliation under the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation under the Americans with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964 and Claims of any form of discrimination or retaliation that is prohibited by the Florida Civil Rights Act or the law of any other state);
|
•
|
under any other federal or state statute;
|
•
|
of defamation or other torts;
|
•
|
of violation of public policy;
|
•
|
for wages, bonuses, incentive compensation, vacation pay or any other compensation or benefits; and
|
•
|
for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees;
|
|
Years Ended December 31,
|
||||
Ratio of Earnings to Fixed Charges
|
2017
|
2016
|
2015
|
2014
|
2013
|
8.6x
|
8.2x
|
3.2x
|
3.9x
|
17.4x*
|
|
|
|
|
|
|
|
Subsidiary
|
|
Jurisdiction of Incorporation
|
1
|
|
Apere Enterprise Storage Solutions India Pvt. Ltd.
|
|
India
|
2
|
|
Byte Squared Limited
|
|
United Kingdom
|
3
|
|
Bytemobile International Corp.
|
|
Delaware
|
4
|
|
Bytemobile, Inc.
|
|
Delaware
|
5
|
|
Carbon Software Technologies Holdings Limited
|
|
Ireland
|
6
|
|
Citrix Application Networking LLC
|
|
Delaware
|
7
|
|
Citrix Finance Cayman LP
|
|
Cayman Islands
|
8
|
|
Citrix Global Holdings B.V.
|
|
Netherlands
|
9
|
|
Citrix Global Holdings UK Limited
|
|
United Kingdom
|
10
|
|
Citrix Greece MEPE
|
|
Greece
|
11
|
|
Citrix Holanda B.V.
|
|
Netherlands
|
12
|
|
Citrix Offshore Investments, Ltd.
|
|
Cayman Islands
|
13
|
|
Citrix Online Audio, LLC
|
|
Delaware
|
14
|
|
Citrix Online AUS Pty Ltd.
|
|
Australia
|
15
|
|
Citrix Online Service Provider Group, Inc.
|
|
Delaware
|
16
|
|
Citrix Overseas Holdings, B.V.
|
|
Netherlands
|
17
|
|
Citrix R&D India Private Limited
|
|
India
|
18
|
|
Citrix R&D Limited
|
|
United Kingdom
|
19
|
|
Citrix Sistemas de Argentina, S.R.L.
|
|
Argentina
|
20
|
|
Citrix Sistemas de Chile Ltda.
|
|
Chile
|
21
|
|
Citrix Sistemas de Colombia SAS
|
|
Colombia
|
22
|
|
Citrix Sistemas de Mexico, S. de RL de CV
|
|
Mexico
|
23
|
|
Citrix Sistemas do Brasil Ltda.
|
|
Brazil
|
24
|
|
Citrix Systems Asia Pacific Pty Ltd.
|
|
Australia
|
25
|
|
Citrix Systems Belgium S.A.R.L.
|
|
Belgium
|
26
|
|
Citrix Systems Canada, Inc.
|
|
Canada
|
27
|
|
Citrix Systems Czech Republic SRO
|
|
Czech Republic
|
28
|
|
Citrix Systems Denmark ApS
|
|
Denmark
|
29
|
|
Citrix Systems Finland Oy
|
|
Finland
|
30
|
|
Citrix Systems France SARL
|
|
France
|
31
|
|
Citrix Systems GmbH
|
|
Austria
|
32
|
|
Citrix Systems GmbH
|
|
Germany
|
33
|
|
Citrix Systems Hong Kong Limited
|
|
Hong Kong
|
34
|
|
Citrix Systems India Private Limited
|
|
India
|
35
|
|
Citrix Systems Information Technology (Beijing) Ltd
|
|
China
|
36
|
|
Citrix Systems International GmbH
|
|
Switzerland
|
37
|
|
Citrix Systems Ireland Ltd
|
|
Ireland
|
38
|
|
Citrix Systems Italy S.r.L.
|
|
Italy
|
39
|
|
Citrix Systems Japan Kabushiki Kaisha
|
|
Japan
|
40
|
|
Citrix Systems Korea Limited
|
|
Korea
|
41
|
|
Citrix Systems Malaysia Sdn Bhd
|
|
Malaysia
|
42
|
|
Citrix Systems Netherlands, B.V.
|
|
Netherlands
|
43
|
|
Citrix Systems New Zealand Ltd.
|
|
New Zealand
|
44
|
|
Citrix Systems Norway AS
|
|
Norway
|
45
|
|
Citrix Systems Overseas Holding GmbH
|
|
Switzerland
|
46
|
|
Citrix Systems Poland Sp. Zo.o
|
|
Poland
|
47
|
|
Citrix Systems Puerto Rico Corp.
|
|
Puerto Rico
|
48
|
|
Citrix Systems Saudi Arabia LLC
|
|
Saudi Arabia
|
49
|
|
Citrix Systems Singapore Pte Ltd.
|
|
Singapore
|
50
|
|
Citrix Systems Slovakia SRO
|
|
Slovakia
|
51
|
|
Citrix Systems South Africa (Pty) Ltd.
|
|
South Africa
|
52
|
|
Citrix Systems Spain, SL
|
|
Spain
|
53
|
|
Citrix Systems Sweden AB
|
|
Sweden
|
54
|
|
Citrix Systems Taiwan Ltd
|
|
Taiwan
|
55
|
|
Citrix Systems Turkey YVH Ltd S
|
|
Turkey
|
56
|
|
Citrix Systems UK Limited
|
|
United Kingdom
|
57
|
|
Citrix Technologies GmbH
|
|
Switzerland
|
58
|
|
Citrix-Systems Technologies Costs Rica SRL
|
|
Costa Rica
|
59
|
|
Octoblu, Inc.
|
|
Delaware
|
60
|
|
Peninsula Finance LLC
|
|
Delaware
|
61
|
|
Peninsula Investment Corp.
|
|
Delaware
|
62
|
|
Podio ApS
|
|
Denmark
|
63
|
|
Podio, Inc.
|
|
Delaware
|
64
|
|
Sanbolic, LLC
|
|
Delaware
|
65
|
|
ShareFile LLC
|
|
Delaware
|
66
|
|
Unidesk Corporation
|
|
Delaware
|
67
|
|
Virtuall Solutions Ltd.
|
|
United Kingdom
|
68
|
|
Virtuall Solutions Sas
|
|
France
|
|
(1)
|
|
Registration Statement No. 333-61520 on Form S-8, dated May 23, 2001
|
|
|
|
|
|
|
|
(2)
|
|
Registration Statement No. 333-121420 on Form S-8, dated December 17, 2004
|
|
|
|
|
|
|
|
(3)
|
|
Registration Statement No. 333-125297 on Form S-8, dated May 27, 2005
|
|
|
|
|
|
|
|
(4)
|
|
Registration Statement No. 333-127991 on Form S-8, dated August 31, 2005
|
|
|
|
|
|
|
|
(5)
|
|
Registration Statement No. 333-132820 on Form S-8, dated March 29, 2006
|
|
|
|
|
|
|
|
(6)
|
|
Registration Statement No. 333-135519 on Form S-8, dated June 30, 2006
|
|
|
|
|
|
|
|
(7)
|
|
Registration Statement No. 333-135521 on Form S-8, dated June 30, 2006
|
|
|
|
|
|
|
|
(8)
|
|
Registration Statement No. 333-136731 on Form S-8, dated August 18, 2006
|
|
|
|
|
|
|
|
(9)
|
|
Registration Statement No. 333-147419 on Form S-8, dated November 15, 2007
|
|
|
|
|
|
|
|
(10)
|
|
Registration Statement No. 333-147421 on Form S-8, dated November 15, 2007
|
|
|
|
|
|
|
|
(11)
|
|
Registration Statement No. 333-149967 on Form S-8, dated March 28, 2008
|
|
|
|
|
|
|
|
(12)
|
|
Registration Statement No. 333-156266 on Form S-8, dated December 18, 2008
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(13)
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Registration Statement No. 333-156267 on Form S-8, dated December 18, 2008
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(14)
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Registration Statement No. 333-161164 on Form S-8, dated August 7, 2009
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(15)
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Registration Statement No. 333-165460 on Form S-8, dated March 12, 2010
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(16)
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Registration Statement No. 333-168688 on Form S-8, dated August 9, 2010
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(17)
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Registration Statement No. 333-172430 on Form S-8, dated February 25, 2011
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(18)
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Registration Statement No. 333-176148 on Form S-8, dated August 8, 2011
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(19)
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Registration Statement No. 333-179653 on Form S-8, dated February 23, 2012
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(20)
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Registration Statement No. 333-183120 on Form S-8, dated August 7, 2012;
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(21)
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Registration Statement No. 333-186784 on Form S-8, dated February 21, 2013
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(22)
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Registration Statement No. 333-196332 on Form S-8, dated May 28, 2014
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(23)
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Registration Statement No. 333-201399 on Form S-8, dated January 8, 2015
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(24)
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Registration Statement No. 333-202181 on Form S-8, dated February 19, 2015
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(25)
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Registration Statement No. 333-209583 on Form S-8, dated February 18, 2016
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(26)
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Registration Statement No. 333-221309 on Form S-3, dated November 3, 2017
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1.
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I have reviewed this annual report on Form 10-K of Citrix Systems, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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By:
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/s/ DAVID J. HENSHALL
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David J. Henshall
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President and Chief Executive Officer
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(Principal Executive Officer)
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1.
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I have reviewed this annual report on Form 10-K of Citrix Systems, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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By:
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/s/ MARK M. COYLE
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Mark M. Coyle
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Senior Vice President, Finance and Interim Chief Financial Officer
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(Principal Financial Officer)
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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By:
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/s/ DAVID J. HENSHALL
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David J. Henshall
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President and Chief Executive Officer
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(Principal Executive Officer)
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By:
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/s/ MARK M. COYLE
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Mark M. Coyle
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Senior Vice President, Finance and Interim Chief Financial Officer
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(Principal Financial Officer)
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