2010 Annual Report to the Most Directly Comparable GAAP fi Nancial Measure
Annual Report 2010 Better ways for people, IT and business to work. Financial Highlights Year ended December 31, (In thousands, except per share data) 2010 2009 2008 2007 Net revenues $ 1,874,662 $1,614,088 $ 1,583,354 $ 1,391,942 Cost of revenues: Cost of product license revenues 66,682 52,160 47,801 42,984 Cost of services revenues 106,234 87,233 79,303 65,027 Amortization of product related intangible assets 50,504 47,917 48,028 29,596 Total cost of revenues 223,420 187,310 175,132 137,607 Gross margin 1,651,242 1,426,778 1,408,222 1,254,335 Operating expenses Research and development 326,647 281,980 288,109 205,103 Sales, marketing and services 729,754 679,053 669,569 590,409 General and administrative 258,875 239,623 256,679 229,229 Amortization of other intangible assets 14,279 20,972 22,724 17,387 Restructuring 971 26,473 - - In-process research and development - - 1,140 9,800 Total operating expenses 1,330,526 1,248,101 1,238,221 1,051,928 Income from operations 320,716 178,677 170,001 202,407 Other income, net 13,104 15,215 26,922 48,501 Income before income taxes 333,820 193,892 196,923 250,908 Income taxes 57,379 2,875 18,647 36,425 Consolidated net income 276,441 $ 191,017 $ 178,276 $ 214,483 Less: Net loss attributable to non-controlling interest 624 - - - Total net income $ 277,065 $ 191,017 $ 178,276 $ 214,483 Earnings per share - diluted $ 1.46 $ 1.03 $ 0.96 $ 1.14 Weighted average shares outstanding - diluted 190,335 184,985 186,682 187,380 Revenue Earnings Per Share Operating Cash Flow (millions) (millions) $1,875 $1.46 $616 $1.03 $0.96 $462 $484 $1,614 $1,583 2008 2009 2010 2008 2009 2010 2008 2009 2010 Mark Templeton Fellow shareholders, President and CEO Long-standing boundaries separating economies, businesses and people are being removed, redrawn, and reinvented.
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