Adaptec 2003 Annual Report Download - page 65

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awards to employees have characteristics significantly different from those of traded options, and because changes in the subjective
input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily
provide a reliable single measure of the fair value of its stock−based awards to employees. The fair value of the Company’s
stock−based awards to employees was estimated using the multiple option approach, recognizing forfeitures as they occur, assuming
no expected dividends and using the following weighted average assumptions:
Options ESPP
2003 2002 2001 2003 2002 2001
Expected life (years) 2.8 2.1 3.0 1.0 0.6 0.9
Expected volatility 101% 101% 90% 107% 122% 110%
Risk−free interest rate 1.9% 2.6% 4.0% 1.5% 2.4% 4.5%
The weighted−average estimated fair values of employee stock options granted during fiscal 2003, 2002, and 2001 were $4.82, $4.07
and $10.98 per share, respectively.
If the computed fair values of 2003, 2002, and 2001 awards had been amortized to expense over the vesting period of the awards as
prescribed by SFAS 123, net loss and net loss per share would have been:
Year Ended December 31
(in thousands, except per share amounts) 2003 2002 2001
Net loss, as reported (7,991) (65,007) (639,054)
Adjustments:
Additional stock−based employee compensation expense under fair
value based method for all awards, net of related tax effects (59,852) (101,124) (108,696)
Net loss, adjusted $ (67,843) $ (166,131) $ (747,750)
Basic net loss per share, as reported $ (0.05) $ (0.38) $ (3.80)
Basic net loss per share, adjusted $ (0.39) $ (0.98) $ (4.45)
Diluted net loss per share, as reported $ (0.05) $ (0.38) $ (3.80)
Diluted net loss per share, adjusted $ (0.39) $ (0.98) $ (4.45)
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