Adaptec 2002 Annual Report Download - page 59

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Options ESPP
−−−−−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−−−−−
2002 2001 2000 2002 2001 2000
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Expected life (years) 2.1 3.0 3.1 0.6 0.9 1.4 Expected volatility 101% 90% 70% 122% 110% 90% Risk−free
interest rate 2.6% 4.0% 6.1% 2.4% 4.5% 5.9%
The weighted−average estimated fair values of employee stock options granted during fiscal 2002, 2001, and
2000 were $4.07, $10.98 and $74.32 per share, respectively.
If the computed fair values of 2002, 2001, and 2000 awards had been amortized to expense over the vesting
period of the awards as prescribed by SFAS 123, net income (loss) and net income (loss) per share would have
been:
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:
Additional stock−based employee compensation expense under fair
value based method for all awards, net of related tax effects (101,124) (108,696) (56,616)
−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Net income (loss), adjusted $ (166,131) $ (747,750) $ 18,682
============= ============== ==============
Basic net income (loss) per share, as reported $ (0.38) $ (3.80) $ 0.46
============= ============== ==============
Basic net income (loss) per share, adjusted $ (0.98) $ (4.45) $ 0.12
============= ============== ==============
Diluted net income (loss) per share, as reported $ (0.38) $ (3.80) $ 0.41
============= ============== ==============
Diluted net income (loss) per share, adjusted $ (0.98) $ (4.45) $ 0.10
============= ============== ==============
Interest and other income, net. The components of interest and other income, net
are as follows:
Year Ended December 31,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
(in thousands) 2002 2001 2000
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Interest income $ 17,152 $ 18,998 $ 19,243
Interest expense on long−term debt
and capital leases (10,540) (4,335) (808)
Amortization of debt issue costs (1,564) (652) −
Other (95) (117) 491
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
$ 4,953 $ 13,894 $ 18,926
============================================
Income taxes. Income taxes are reported under Statement of Financial Accounting
Standards No. 109 and, accordingly, deferred income taxes are recognized using
the asset and liability method, whereby deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases, and operating loss and tax credit carry forwards.
Valuation allowances are provided if, after considering available evidence, it
is more likely than not that some or all of the deferred tax assets will not be
realized.
57