Adaptec 2003 Annual Report Download - page 60

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The components of property and equipment are as follows:
December 31, 2003 (in thousands) Gross Accumulated
Amortization Net
Machinery and equipment $ 181,565 $ (165,375) $ 16,190
Leasehold improvements 11,070 (8,373) 2,697
Furniture and fixtures 13,352 (11,489) 1,863
Total $ 205,987 $ (185,237) $ 20,750
December 31, 2002 Gross Accumulated
Amortization Net
Machinery and equipment $ 172,227 $ (145,070) $ 27,157
Land 13,448 — 13,448
Leasehold improvements 11,765 (6,876) 4,889
Furniture and fixtures 15,305 (10,637) 4,668
Construction−in−progress 1,027 — 1,027
$ 213,772 $ (162,583) $ 51,189
In 2003, the Company sold a property it held in Burnaby, Canada for proceeds of $15.3 million. This asset was classified as Land and
Construction−in−progress at the end of 2002. The Company recorded a nominal gain on this transaction, which it classified in Interest
and Other Income, net, in the Statement of Operations.
In 2002, the Company recorded an impairment charge of $1.8 million for machinery and equipment that was removed from service.
Goodwill and other intangible assets. Goodwill, purchased developed technology and other intangible assets are carried at cost less
accumulated amortization to December 31, 2001 and impairment charges. Accumulated amortization was computed on a straight−line
basis over the economic lives, ranging from three to seven years, of the respective assets.
Effective the beginning of the first quarter of fiscal 2002, the Company completed the adoption Statement of Financial Accounting
Standard No. 142 (SFAS 142), “Goodwill and Other Intangible Assets”.
As required by SFAS 142, the Company stopped amortizing the remaining unamortized portion of goodwill at the beginning of fiscal
2002 but instead will subject remaining goodwill to impairment tests at least annually. In conjunction with the implementation of
SFAS 142, the Company completed the transitional impairment test as of the beginning of 2002 and determined that a transitional
impairment charge would not be required. The Company completed its annual impairment test in December 2003 and 2002 and
determined that there was no impairment of goodwill.
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