Adaptec 2002 Annual Report Download - page 55

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Year Ended December 31,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
(in thousands, except per share amounts) 2002 2001 2000
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Net income (loss), as reported $ (65,007) $ (639,054) $ 75,298
Adjustments:
Amortization of goodwill − 44,010 36,397
Amortization of other intangibles − 564 741
−−−−−−−−−−−−− −−−−−−−−−−−−− −−−−−−−−−−−−−
Net income (loss) $ (65,007) $ (594,480) $ 112,436
============= ============= =============
Basic net income (loss) per share, as reported $ (0.38) $ (3.80) $ 0.46
============= ============= =============
Basic net income (loss) per share, adjusted $ (0.38) $ (3.54) $ 0.69
============= ============= =============
Diluted net income (loss) per share, as reported $ (0.38) $ (3.80) $ 0.41
============= ============= =============
Diluted net income (loss) per share, adjusted $ (0.38) $ (3.54) $ 0.62
============= ============= =============
The components of goodwill and other intangible assets, net of write−downs for
impairment, at December 31, 2002 and 2001 are as follows:
December 31,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
(in thousands) 2002 2001
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Goodwill $ 93,119 $ 93,119
Developed technology 9,311 9,311
Other 1,294 1,294
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
103,724 103,724
Accumulated amortization (95,343) (94,204)
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
$ 8,381 $ 9,520
================================
In 2001, the Company recorded a total impairment charge of $269.8 million
related to goodwill (see Note 3) and $925,000 related to developed technology
and other intangible assets.
Impairment of long−lived assets. The Company reviews its long−lived assets,
other than goodwill, for impairment whenever events or changes in circumstances
indicate that the carrying value of such assets may not be recoverable. To
determine recoverability, the Company compares the carrying value of the assets
to the estimated future undiscounted cash flows. Measurement of an impairment
loss for long−lived assets held for use is based on the fair value of the asset.
Long−lived assets classified as held for sale are reported at the lower of
carrying value and fair value less estimated selling costs. For assets to be
disposed of other than by sale, an impairment loss is recognized when the
carrying value is not recoverable and exceeds the fair value of the asset.
For goodwill, an impairment loss will be recorded to the extent that the
carrying amount of the goodwill exceeds its implied fair value.
Accrued liabilities. The components of accrued liabilities are as follows:
December 31,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
(in thousands) 2002 2001
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Accrued compensation and benefits $ 18,962 $ 21,193
Other accrued liabilities 34,568 28,155
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−