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June 30 Sept. 30
(5)
Dec. 31
(6)
Mar. 31
(7)
Total
(restated) (restated) (restated) (restated)
(in millions, except per share amounts)
2005 Quarterly Results
Revenue ................................... $868 $ 875 $930 $930 $3,603
Percent of annual revenue ...................... 24% 24% 26% 26% 100%
Income (loss) from continuing operations .......... $ 56 $ (91) $ 37 $ 24 $ 26
Basic income (loss) from continuing operations per
share.................................... $0.10 $(0.16) $0.06 $0.04 $ 0.04
Diluted income (loss) from continuing operations per
share.................................... $0.09 $(0.16) $0.06 $0.04 $ 0.04
(1) Includes a tax benefit of approximately $36 million reflecting the Department of Treasury and Internal Revenue Service Notice 2005-38,
which permitted the utilization of additional foreign tax credits to reduce the estimated taxes associated with cash repatriation (Refer to
“Income Taxes” within Results of Operations). Also includes a charge of approximately $4 million related to the write-off of in-process
research and development costs in relation to the acquisition of Concord (refer to Note 2, Acquisitions, Divestitures and Restructuring, in
the Notes to the Consolidated Financial Statements) and an after-tax credit of approximately $2 million related to a reduction in the
allowance for doubtful accounts (refer to Note 5, “Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial
Statements).
(2) Includes an after-tax charge of approximately $14 million related to the write-off of in-process research and development costs in relation
to the acquisition of Niku (refer to Note 2, Acquisitions, Divestitures and Restructuring, in the Notes to the Consolidated Financial
Statements), an after-tax charge of approximately $6 million in connection with certain DPA related costs and the termination of a non-
core application development professional services project, an after-tax charge of approximately $23 million for severance and other
expenses in connection with a restructuring plan (refer to “Shareholder Litigation and Government Investigation Settlement” and
“Restructuring Charge” within Results of Operations), and an after-tax credit of approximately $6 million related to a reduction in the
allowance for doubtful accounts (refer to Note 5, “Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial
Statements).
(3) Includes the after-tax impact of approximately $19 million for the quarterly restatement of commission expense. Also includes an after-tax
charge of approximately $2 million in connection with certain DPA related costs, an after-tax charge of approximately $9 million for
severance and other expenses in connection with a restructuring plan (refer to “Shareholder Litigation and Government Investigation
Settlement” and “Restructuring Charge” within Results of Operations), a tax charge of $2 million relating to the loss on a sale/leaseback
transaction, an after-tax credit of approximately $2 million related to a reduction in the allowance for doubtful accounts (refer to Note 5,
“Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial Statements), and an after-tax credit of
approximately $5 million relating to the gain on the sale of assets that were contributed during the formation of Ingres Corp. (refer to
Note 2, “Acquisitions, Divestitures and Restructuring”, in the Notes to the Consolidated Financial Statements).
(4) Includes a tax charge of $36 million required due to the company’s finalization of its 2006 tax estimates, including its repatriation of
$584 million of cash in the fourth quarter of fiscal year 2006. (Refer to “Income Taxes” within Results of Operations). Also includes an
after-tax charge of approximately $3 million in connection with certain DPA related costs, an after-tax charge of approximately $9 million
for severance and other expenses in connection with a restructuring plan (refer to “Shareholder Litigation and Government Investigation
Settlement” and “Restructuring Charge” within Results of Operations), a tax charge of approximately $2 million relating to the loss on a
sale-leaseback transaction, and after-tax credits of approximately $1 million related to a reduction in the allowance for doubtful accounts
(refer to Note 5, “Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial Statements), $6 million due to
full year reductions in variable compensation programs, and $7 million due to the Company’s decision in the fourth quarter of fiscal year
2006 to forego its discretionary contribution to the company-sponsored 401(k) plan.
(5) Includes an after-tax charge of approximately $130 million related to the shareholder litigation and government investigation settlements,
an after-tax charge of approximately $17 million for severance and other expenses in connection with a restructuring plan (refer to
“Shareholder Litigation and Government Investigation Settlement” and “Restructuring Charge” within Results of Operations), and an
after-tax credit of approximately $3 million related to a reduction in the allowance for doubtful accounts (refer to Note 5, “Trade and
Installment Accounts Receivable”, in the Notes to the Consolidated Financial Statements).
(6) Includes an after-tax charge of approximately $6 million of cash and stock-based compensation expense associated with the appointment
of our new President and CEO in November 2004 and an after-tax credit of approximately $4 million related to a reduction in the allowance
for doubtful accounts (refer to Note 5, “Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial
Statements).
(7) Includes a tax expense charge of $55 million related to the repatriation of $500 million in cash under the American Jobs Creation Act of
2004 (Refer to “Income Taxes” within Results of Operations), an after-tax gain of approximately $10 million related to the settlement with
Quest Software Inc., and an after-tax credit of approximately $8 million related to a reduction in the allowance for doubtful accounts (refer
to Note 5, “Trade and Installment Accounts Receivable”, in the Notes to the Consolidated Financial Statements).
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