Adaptec 2001 Annual Report Download - page 83

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83
The pretax income (loss) from foreign operations was ($154.1 million), $254.5 million, and
$119.3 million in 2001, 2000, and 1999, respectively. Undistributed earnings of the Company’s
foreign subsidiaries are considered to be indefinitely reinvested and accordingly, no provision
for federal and state income taxes has been provided thereon. Upon distribution of those
earnings in the form of a dividend or otherwise, the Company would be subject to both US
income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to
the various foreign countries. It is not practical to estimate the income tax liability that might
be incurred on the remittance of such earnings.
NOTE 13. Segment Informati on
The Company has two operating segments: networking and non-networking products. The
netw orking segment consists of internetworking semiconductor devices and related technical
service and support to equipment manufacturers for use in their communications and
netw orking equipment. The non-networking segment includes custom user interface products.
The Company is supporting a non-networking product for an existing customer, but has
decided not to develop any further products of this type.
The accounting policies of the segments are the same as those described in the summary of
significant accounting policies. The Company evaluates performance based on gross profits
from operations of the tw o segments.
Summarized financial information by segment is as follows:
Enterprise-w ide information is provided in accordance with SFA S 131. Geographic revenue
information is based on the location of the customer invoiced. Long-lived assets include
investment in bonds and notes, other investments and assets, deposits for wafer fabrication
capacity, property and equipment, and goodwill and other intangible assets. Geographic
information about long-lived assets is based on the physical location of the assets.
Year Ended December 31,
(in thousands) 2001 2000 1999
Net revenues
Networking 300,173$ 665,700$ 278,477$
Non-networking 22,565 28,984 17,291
Total 322,738$ 694,684$ 295,768$
Gross profit
Networking 176,068$ 515,712$ 214,401$
Non-networking 9,408 12,811 7,928
Total 185,476$ 528,523$ 222,329$