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SYMANTEC CORPORATION
Notes to Consolidated Financial Statements Ì (Continued)
reduce the carrying value of deferred revenue and the write-off of acquired IPR&D of $284 million for all
periods presented. The unaudited pro forma information is as follows:
Year Ended March 31,
2006(a) 2005(b)
(In thousands, except
per share data)
Net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,702,650 $4,624,723
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 464,172 $ 563,151
Basic net income per shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.42 $ 0.49
Diluted net income per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.40 $ 0.46
(a) The results of operations include our results for the year ended March 31, 2006, including Veritas
beginning from July 2, 2005, and Veritas' historical results for the three months ended March 31, 2005,
including amortization related to fair value adjustments based on the fair values of assets acquired and
liabilities assumed as of the acquisition date of July 2, 2005.
(b) The results of operations include our results for the year ended March 31, 2005 and Veritas' historical
results for the year ended December 31, 2004, including amortization related to fair value adjustments
based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005.
Other fiscal 2006 acquisitions
During fiscal 2006, in addition to Veritas, we completed acquisitions of five privately-held companies and
one public company for an aggregate of $627 million in cash, including acquisition-related expenses resulting
from financial advisory, legal and accounting services, duplicate sites, and severance costs of approximately
$18 million, of which approximately $7 million remains as an accrual as of March 31, 2006. We recorded
goodwill in connection with each of these acquisitions. In each acquisition, goodwill resulted primarily from
our expectation of synergies from the integration of the acquired company's technology with our technology
and the acquired company's access to our global distribution network. In addition, each acquired company
provided a knowledgeable and experienced workforce. The results of operations for the acquired companies
have been included in our results of operations since their respective acquisition dates. XtreamLok Pty. Ltd
and substantially all of WholeSecurity, Inc. are included in our Consumer Products segment, Sygate
Technologies, Inc., the remainder of WholeSecurity, BindView Development Corporation, and IMlogic, Inc.
are included in our Enterprise Security segment, and Relicore, Inc. is included in our Storage Management
segment. Details of the purchase price allocations related to these other fiscal 2006 acquisitions are included in
the table below. The financial results of these other fiscal 2006 acquisitions were considered insignificant for
pro forma financial disclosure, both individually and in the aggregate.
Sygate
XtreamLok WholeSecurity Technologies BindView IMlogic Relicore Total
(In thousands)
Acquisition date ÏÏÏÏÏÏ May 16, Oct 4, Oct 7, Jan 6, Feb 13, Feb 17,
2005 2005 2005 2006 2006 2006
Net tangible assets
(liabilities) ÏÏÏÏÏÏÏÏ $ (59) $ 632 $ 10,764 $ 37,691 $ 8,019 $ (987) $ 56,060
Acquired product rights 4,000 11,600 23,712 38,100 10,300 9,600 97,312
Other intangible assets Ì 200 2,496 27,200 10,100 2,800 42,796
IPR&D ÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì 1,100 Ì Ì 1,100
Goodwill ÏÏÏÏÏÏÏÏÏÏÏÏ 15,132 50,111 130,184 93,078 61,512 31,748 381,765
Deferred tax asset
(liability), net ÏÏÏÏÏÏ (1,200) 5,727 9,815 23,547 769 8,910 47,568
Total purchase priceÏÏÏ $ 17,873 $68,270 $176,971 $220,716 $ 90,700 $ 52,071 $626,601
88