This excerpt taken from the WBMD 8-K filed Nov 21, 2006.
Note 2 Pro Forma Adjustments
The following pro forma adjustments result from the allocation of the purchase price for the acquisition of Medsite based on the fair value of the assets, liabilities and commitments acquired.
The pro forma adjustments for Medsite related to the Unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2005 and for the six months ended June 30, 2006 assume the acquisition took place on January 1, 2005 and are as follows:
(a) To reflect revenues in accordance with the Companys accounting policies to commence revenue recognition upon program launch.
(b) To reflect expenses in accordance with the Companys accounting policies to expense program expenses as incurred.
(c) To eliminate professional services expenses incurred by Medsite that were directly attributable to the acquisition.
(d) Represents the amortization of intangible assets recorded at their fair value on the acquisition date assuming the transaction occurred on January 1, 2005.
(e) To eliminate the impairment of an investment not acquired by the Company.
(f) To reflect the estimated loss of interest income resulting from the $41,000,000 of funds utilized in the acquisition of Medsite for the six months ended June 30, 2006 and for the fourth quarter during the year ended December 31, 2005, after the completion of the Companys IPO.