Autodesk 2007 Annual Report Download - page 186

126
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 15. Business Combinations (Continued)
acquisition date by $12.0 million to $5.1 million. Autodesk estimates that the support obligations assumed
from Alias will be fulfilled by the middle of fiscal 2008.
Autodesk management approved a restructuring plan directly resulting from the Alias acquisition and
involving the elimination of employee positions, facilities and fixed assets of Alias (“Alias Restructuring
Plan”). The total restructuring reserve established for this plan was reflected as an allocation item in
the total purchase price consideration of the Alias acquisition. The Alias Restructuring Plan was
established in accordance with EITF 95-3, “Recognition of Liabilities in Connection with a Purchase Business
Combination.” Total estimated cost of the Alias Restructuring Plan was originally $11.1 million. This plan
involved termination of approximately 130 positions worldwide at an estimated cost for severance and
outplacement of approximately $8.8 million. In addition, this plan also involves costs associated with
exiting leased facilities and abandonment of certain assets of approximately $2.3 million. Autodesk
completed the integration of Alias during the second quarter of fiscal 2007.
Autodesk currently has not identified any material pre-acquisition contingencies where a liability is
probable and the amount of the liability can be reasonably estimated. If information becomes available
prior to the end of the purchase price allocation period, which would indicate that it is probable that such
events had occurred and the amounts can be reasonably estimated, such items would be included in the
purchase price allocation. Furthermore, the purchase price allocation is also dependent upon the final
determination of costs under the Alias Restructuring Plan.
The following unaudited pro forma financial information summarizes the combined results of
operations of Autodesk and Alias, on a pro forma basis, as though the companies had been combined
as of the beginning of each of the periods presented. The pro forma financial information is presented
for informational purposes only and is not indicative of the results of operations that would have been
achieved if the acquisition had taken place at the beginning of each of the periods presented. The unaudited
pro forma financial information in fiscal 2006 combines the historical financial results of Autodesk for the
year ended January 31, 2006 and the historical financial results of Alias for the period from February 1,
2005 to January 9, 2006. Autodesk’s Consolidated Statements of Income for fiscal year 2006 include
Alias’ financial results for the period from the acquisition date, January 10, 2006, through January 31, 2006.
The unaudited pro forma financial information in fiscal 2005 combines the historical financial results
for Autodesk, with the historical financial results of Alias for the twelve months ended January 31, 2005.
The pro forma financial information presented includes the business combination accounting effects of
amortization charges from acquired intangible assets, stock-based compensation charges for unvested
options assumed, an adjustment to reduce the carrying value of Alias’ deferred balance, adjustments to
depreciation on acquired property and related tax effects.
Year Ended January 31,
2006 2005
As Restated (1) As Restated (1)
(unaudited)
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,632.2 $1,304.6
Net income ...................................... 329.4 206.4
Basic net income per share . . . . . . . . . . . . . . . . . . . . . . . . 1.44 0.91
Diluted net income per share . . . . . . . . . . . . . . . . . . . . . . 1.33 0.84
(1) See Note 2, “Restatement of Consolidated Financial Statements,” in Notes to Consolidated Financial
Statements.
.