ORGANIZATION, PENDING MERGER AND BASES OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2012

Impact To Previously Reported Consolidated Statement Of Cash Flows

The following represents the details of the impact to our previously reported consolidated statement of cash flows to conform to the current year presentation (in thousands):


	Six Months Ended June 30, 2011
	As Previously Reported			As Adjusted			Impact
Unrealized foreign currency gains, net	$	—		$	(3,229	)	$	(3,229	)
Changes in operating assets and liabilities, net of effects of acquisitions		66,332			69,445			3,113

Net cash provided by operating activities		113,966			113,850			(116	)
Effect of exchange rate changes in cash and cash equivalents		(943	)		(827	)		116

Net impact								—

Impact Of The Tax Correction To The Previously Reported Consolidated Financial Statements

The following represents the impact of the tax correction to our previously reported consolidated financial statements (in thousands, except per share data):

Corrected Consolidated Balance Sheet:


	December 31, 2011
	As Previously Reported		As Corrected		Increase/ (Decrease)
Deferred income taxes, net - current	$	19,780	$	21,647	$	1,867
Total current assets		496,201		498,068		1,867
Total assets		1,697,651		1,699,518		1,867
Income taxes payable - current		—		14,482		14,482
Total current liabilities		591,101		605,583		14,482
Total liabilities		795,502		809,984		14,482
Retained earnings		345,672		333,057		(12,615	)
Total Quest Software Inc. stockholders’ equity		867,200		854,585		(12,615	)
Total equity		880,149		867,534		(12,615	)
Total liabilities and equity		1,697,651		1,699,518		1,867

Corrected Consolidated Statements of Operations:


	Three Months Ended June 30, 2011
	As Previously Reported		As Corrected		Increase/ (Decrease)
Other income, net	$	573	$	122	$	(451	)
Income before income tax provision		10,734		10,283		(451	)
Income tax provision		4,404		4,565		161
Net income		6,330		5,718		(612	)
Net income attributable to Quest Software, Inc.		6,330		5,718		(612	)
Net income per share:
Basic	$	0.07	$	0.06	$	(0.01	)
Diluted	$	0.07	$	0.06	$	(0.01	)


	Six Months Ended June 30, 2011
	As Previously Reported		As Corrected		Increase/ (Decrease)
Other income, net	$	1,843	$	1,279	$	(564	)
Income before income tax provision		17,368		16,804		(564	)
Income tax provision		7,410		7,716		306
Net income		9,958		9,088		(870	)
Net income attributable to Quest Software, Inc.		9,958		9,088		(870	)
Net income per share:
Basic	$	0.11	$	0.10	$	(0.01	)
Diluted	$	0.11	$	0.10	$	(0.01	)

Corrected Consolidated Statement of Cash Flows:


	Six Months Ended June 30, 2011
	As Adjusted⁽¹⁾			As Corrected			Increase/ (Decrease)
Net income	$	9,958		$	9,088		$	(870	)
Unrealized foreign currency gains, net		(3,230	)		(2,666	)		564
Changes in operating assets and liabilities:
Deferred income taxes		(82	)		(296	)		(214	)
Income taxes payable		19,668			20,188			520

Net cash provided by operating activities		113,850			113,850		$	—

(1)	Refer to the above section “Impact of Change in Consolidated Statement of Cash Flows Presentation to Prior Periods”.