Adaptec 2003 Annual Report Download - page 61

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A reconciliation of previously reported net loss and net loss per share to the amounts adjusted for the exclusion of goodwill
amortization is as follows:
Year Ended December 31,
(in thousands, except per share amounts) 2003 2002 2001
Net loss, as reported $ (7,991) $ (65,007) $ (639,054)
Adjustments:
Amortization of goodwill — — 44,010
Amortization of other intangibles — — 564
Net loss $ (7,991) $ (65,007) $ (594,480)
Basic and diluted net loss per share, as reported $ (0.05) $ (0.38) $ (3.80)
Basic and diluted net loss per share, adjusted $ (0.05) $ (0.38) $ (3.54)
The components of goodwill and other intangible assets, net of write−downs for impairment, are as follows:
December 31, 2003 (in thousands) Gross Accumulated
Amortization Net
Goodwill $ 93,119 $ (86,058) $ 7,061
Developed Technology 9,536 (8,470) 1,066
Other 1,294 (1,294) —
Total $ 103,949 $ (95,822) $ 8,127
December 31, 2002 Gross Accumulated
Amortization Net
Goodwill $ 93,119 $ (86,058) $ 7,061
Developed Technology 9,311 (7,991) 1,320
Other 1,294 (1,294) —
Total $ 103,724 $ (95,343) $ 8,381
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. These write−downs for impairment are net against the gross cost of the related
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.
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