Adaptec 2001 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2001 Adaptec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 93

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93

82
Significant components of the Company’s deferred tax assets and liabilities are as follows:
At December 31, 2001, the Company has approximately $491.7 million of federal net operating
losses, w hich will expire through 2021. Approximately $10.3 million of the federal net
operating losses is subject to ownership change limitations provided by the Internal Revenue
Code of 1986. The Company also has approximately $182.1 million of state tax loss
carryforwards, which expire through 2021. The utilization of a portion of these state losses is
also subject to ownership change limitations provided by the various states' income tax
legislation.
Included in the credit carryfowards are $14.5 million of federal research and development
credits which expire through 2021, $549,000 of foreign tax credits which expire in 2003, $410,000
of federal AMT credits which carryforward indefinitely, $8.4 million of state research and
development credits which do not expire, $1.2 million of state research and development
credits which expire through 2006, and $1.1 million of state manufacturer’s investment credits
which expire through 2010.
Included in the above net operating loss carryforwards are $23.8 million and $8.6 million of
federal and state net operating losses related to acquisitions accounted for under the purchase
method of accounting. The benefit of such losses, if and when realized, w ill be credited first to
reduce to zero any goodwill related to the respective acquisition, second to reduce to zero other
non-current intangible assets related to the respective acquisition, and third to reduce income
tax expense.
Included in the deferred tax assets before valuation allowance are approximately $144.8 million
of cumulative tax benefits related to equity transactions, which will be credited to stockholder’s
equity if and when realized.
December 31,
(in thousands) 2001 2000
Deferred tax assets:
Net operating loss carryforwards 176,838$ 117,416$
State tax loss carryforwards 10,926 8,126
Credit carryforwards 26,180 14,407
Reserves and accrued expenses 19,058 12,186
Restructuring and other charges 67,207 -
Depreciation and amortization 10,553 -
Deferred income 4,800 13,525
Deferred stock compensation 221 221
Total deferred tax assets 315,783 165,881
Valuation allowance (305,929) (154,409)
Total net deferred tax assets 9,854 11,472
Deferred tax liabilities:
Depreciation - (8,995)
Capitalized technology (369) (1,600)
Unrealized gain on investments (17,715) (22,629)
Other - (2,125)
Total deferred tax liabilities (18,084) (35,349)
Total net deferred taxes (8,230)$ (23,877)$