EMC 2004 Annual Report Download - page 70

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
to pay the remaining balance for involuntary termination benefits through 2006. The liability for leases will be paid over the remaining lease terms through
2008. The following summarizes the obligations recognized in connection with the Documentum acquisition and activity to date (tables in thousands):
Year Ended December 31, 2004 Beginning
Category Balance Adjustments Utilization Ending Balance
Involuntary termination benefits $ 718 $ 7,552 $ (1,034) $ 7,236
Lease terminations 4,970 5,770 (2,344) 8,396
Total $ 5,688 $ 13,322 $ (3,378) $ 15,632
Year Ended December 31, 2003 Beginning Ending
Category Balance Adjustments Utilization Balance
Involuntary termination benefits $ 718 $ – $ – $ 718
Lease terminations 4,970 – – 4,970
Total $ 5,688 $ – $ – $ 5,688
In accordance with EITF 95-3, "Recognition of Liabilities in Connection with a Purchase Business Combination," upon consummation of the acquisition
of Documentum, management began to assess and formulate a plan to exit certain activities of Documentum. The finalization of the plan occurred within one
year after the acquisition date. The adjustments for involuntary termination benefits and lease terminations resulted from management's finalization of its
purchase price allocation and integration plans.
Pro forma Effect of the Acquisitions
The following pro forma information gives effect to the acquisitions of LEGATO and Documentum as if the acquisitions occurred on January 1, 2002 and
gives effect to the acquisition of VMware as if the acquisition occurred on January 1, 2003. The pro forma results are not necessarily indicative of what
actually would have occurred had the acquisitions been in effect for the period presented (table in thousands, except per share data):
(unaudited)
Year Ended December 31,
2003 2002
Revenue $ 6,811,300 $ 5,975,523
Net income (loss) 356,935 (433,458)
Net income (loss) per weighted average share, basic $ 0.15 $ (0.18)
Net income (loss) per weighted average share, diluted $ 0.15 $ (0.18)
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