XML 51 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Quarterly Data (Unaudited)
 12 Months Ended
Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]
Quarterly Data (Unaudited)
As discussed in greater detail in Note 23, Restatement of Previously Issued Financial Statements, we determined we needed to restate our previously issued consolidated financial information for the quarterly periods ended March 31, 2011, June 30, 2011, September 30, 2011 and each of the quarterly periods in the year ended December 31, 2010. The restatements resulted from a correction to timing of the recognition of revenue and certain other miscellaneous adjustments.






The following tables summarize the effects of the restatement and presentation reclassifications on our previously issued unaudited condensed consolidated financial statements:
 
 
2011
 
2010
 
 
Fourth
Quarter


 
Third
Quarter

(As Restated)
 
Second
Quarter

(As Restated)
 
First
Quarter

(As Restated)
 
Fourth
Quarter

(As Restated)
 
Third
Quarter

(As Restated)
 
Second
Quarter

(As Restated)
 
First
Quarter

(As Restated)
 
 
(In thousands, except per share amounts)
Total revenue
 
$
185,104

 
$
173,099

 
$
165,522

 
$
167,518

 
$
162,909

 
$
155,984

 
$
148,567

 
$
126,282

Gross profit
 
$
119,739

 
$
106,172

 
$
94,051

 
$
99,728

 
$
94,948

 
$
88,054

 
$
83,920

 
$
72,074

Operating (loss) income
 
$
7,477

 
$
35,524

 
$
23,050

 
$
58,277

 
$
5,830

 
$
18,385

 
$
5,678

 
$
(8,534
)
Income (loss) applicable to common shareholders
 
$
3,575

 
$
18,287

 
$
12,713

 
$
48,113

 
$
3,999

 
$
8,863

 
$
(431
)
 
$
(10,290
)
Basic net income (loss) per common share
 
$
0.08

 
$
0.43

 
$
0.30

 
$
1.14

 
$
0.10

 
$
0.21

 
$
(0.01
)
 
$
(0.26
)
Diluted net income (loss) per common share
 
$
0.08

 
$
0.43

 
$
0.30

 
$
1.13

 
$
0.09

 
$
0.21

 
$
(0.01
)
 
$
(0.26
)

 
 
2011
 
 
Third
Quarter
 
 
As Reported
 
Adjustments
 
As Restated
 
 
Total revenue
 
$
171,563

 
$
1,536

 
$
173,099

Gross profit
 
$
104,270

 
$
1,902

 
$
106,172

Operating income
 
$
32,832

 
$
2,692

 
$
35,524

Income applicable to common shareholders
 
$
16,803

 
$
1,484

 
$
18,287

Basic net income per common share
 
$
0.40

 
$
0.03

 
$
0.43

Diluted net income per common share
 
$
0.39

 
$
0.04

 
$
0.43


The third quarter adjustments reflected in the table above include the following:
•
Adjustments to total revenue relate to the lack of vendor specific objective evidence of fair value for Cloud Services and certain Consulting Services currencies and offerings, identification of linked contracts that should have been accounted for as a single arrangement, and the consideration of platform transfer rights on revenue recognition.
•
Adjustments to cost of revenue and operating expenses relate to recognition of compensation expense and the correction to certain employee travel and salary expenses.
•
Provision for (benefit from) income taxes includes adjustments to deferred tax assets and income tax effects of other restatement adjustments.



 
 
2011
 
 
Second
Quarter
 
First
Quarter
 
 
As Reported
 
Adjustments
 
As Restated
 
As Reported
 
Adjustments
 
As Restated
 
 
(In thousands, except per share amounts)
Total revenue
 
$
162,410

 
$
3,112

 
$
165,522

 
$
163,606

 
$
3,912

 
$
167,518

Gross profit
 
$
90,637

 
$
3,414

 
$
94,051

 
$
95,515

 
$
4,213

 
$
99,728

Operating income
 
$
19,121

 
$
3,929

 
$
23,050

 
$
54,291

 
$
3,986

 
$
58,277

Income applicable to common shareholders
 
$
10,119

 
$
2,594

 
$
12,713

 
$
45,528

 
$
2,585

 
$
48,113

Basic net income per common share
 
$
0.24

 
$
0.06

 
$
0.30

 
$
1.08

 
$
0.06

 
1.14

Diluted net income per common share
 
$
0.24

 
$
0.06

 
$
0.30

 
$
1.07

 
$
0.06

 
1.13


The first and second quarter adjustments reflected in the table above include the following:
•
Adjustments to total revenue relate to the lack of vendor specific objective evidence of fair value for Cloud Services and certain Consulting Services currencies and offerings, identification of linked contracts that should have been accounted for as a single arrangement, and the consideration of platform transfer rights on revenue recognition.
•
Adjustments to cost of revenue and operating expenses related to amortization of leasehold improvements, certain employee expenses and certain accrued liabilities.
•
Adjustments to interest income and other include the correction of a marked-to-market forward contract and minority interest income.
•
Provision for (benefit from) income taxes includes adjustments to deferred tax assets and income tax effects of other restatement adjustments.

 
 
2010
 
 
Fourth
Quarter
 
Third
Quarter
 
 
As Reported
 
Adjustments
 
As Restated
 
As Reported
 
Adjustments
 
As Restated
 
 
(In thousands, except per share amounts)
Total revenue
 
$
168,762

 
$
(5,853
)
 
$
162,909

 
$
158,443

 
$
(2,459
)
 
$
155,984

Gross profit
 
$
101,326

 
$
(6,378
)
 
$
94,948

 
$
87,323

 
$
731

 
$
88,054

Operating income
 
$
12,090

 
$
(6,260
)
 
$
5,830

 
$
17,535

 
$
850

 
$
18,385

Income applicable to common shareholders
 
$
5,847

 
$
(1,848
)
 
$
3,999

 
$
8,273

 
$
590

 
$
8,863

Basic net income per common share
 
$
0.14

 
$
(0.04
)
 
$
0.10

 
$
0.20

 
$
0.01

 
$
0.21

Diluted net income per common share
 
$
0.14

 
$
(0.05
)
 
$
0.09

 
$
0.20

 
$
0.01

 
$
0.21


The third and fourth quarter adjustments reflected in the table above include the following:
•
Adjustments to total revenue relate to the lack of vendor specific objective evidence of fair value for Cloud Services and certain Consulting Services currencies and offerings, identification of linked contracts that should have been accounted for as a single arrangement, and the consideration of platform transfer rights on revenue recognition.
•
Adjustments to cost of revenue and operating expenses related to the reclassification of certain loss contracts, recognition of compensation expense, certain employee expenses and certain accrued liabilities.
•
Adjustments to interest income and other include the correction of a marked-to-market forward contract and minority interest income.
•
Provision for (benefit from) income taxes includes adjustments to deferred tax assets and income tax effects of other restatement adjustments.


 
 
2010
 
 
Second
Quarter
 
First
Quarter
 
 
As Reported
 
Adjustments
 
As Restated
 
As Reported
 
Adjustments
 
As Restated
 
 
(In thousands, except per share amounts)
Total revenue
 
$
158,373

 
$
(9,806
)
 
$
148,567

 
$
131,631

 
$
(5,349
)
 
126,282

Gross profit
 
$
96,126

 
$
(12,206
)
 
$
83,920

 
$
78,900

 
$
(6,826
)
 
72,074

Operating income (loss)
 
$
17,056

 
$
(11,378
)
 
$
5,678

 
$
(253
)
 
$
(8,281
)
 
(8,534
)
Income (loss) applicable to common shareholders
 
$
7,866

 
$
(8,297
)
 
$
(431
)
 
$
(4,268
)
 
$
(6,022
)
 
(10,290
)
Basic net income (loss) per common share
 
$
0.19

 
$
(0.20
)
 
$
(0.01
)
 
$
(0.11
)
 
$
(0.15
)
 
(0.26
)
Diluted net income (loss) per common share
 
$
0.19

 
$
(0.20
)
 
$
(0.01
)
 
$
(0.11
)
 
$
(0.15
)
 
(0.26
)


The first and second quarter adjustments reflected in the table above include:
•
Adjustments to total revenue relate to the lack of vendor specific objective evidence of fair value for Cloud Services and certain Consulting Services currencies and offerings, identification of linked contracts that should have been accounted for as a single arrangement, and the consideration of platform transfer rights on revenue recognition.
•
Adjustments to cost of revenue and operating expenses relate to employee bonuses, acquisition costs associated with the i2 transaction, the amortization of leasehold improvements and certain accrued liabilities.
•
Provision for (benefit from) income taxes includes adjustments to deferred tax assets and income tax effects of other restatement adjustments.