Adaptec 2010 Annual Report Download - page 27

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There were no cash dividends issued during the years ended December 26, 2010, December 27, 2009, December 28,
2008, December 30, 2007, and December 31, 2006.
26
(1) Results for the year ended December 26, 2010 include $0.8 million stoc
k
-based compensation expense and $1.0 million
acquisition-related costs included in Cost of revenues; $9 million stock-based compensation and $4.9 million asset impairment
included in Research and development expenses; $12.1 million stock-based compensation and $6.9 million acquisition related
costs included in Selling, general and administrative expense; $1.8 million foreign exchange loss on foreign tax liabilities; $3.2
million of non-cash interest expense for the accretion of the debt discount related to the senior convertible notes; $1.1 million
interest expense related to short-term loan; and $30.2 million net income tax provision, including $13.4 million sheltered by the
benefit of stock option related loss carry-forwards recognized in equity, $7.8 million income tax provision relating to income
from operating results, $4.8 million income tax provision relating to inter-company transactions, $5.5 million income tax
provision for adjustments relating to prior periods, $4.1 million net tax recovery relating to foreign exchange translation of a
foreign subsidiary, $3.7 million arrears interest relating to unrecognized tax benefits, $0.6 million deferred tax recovery related
to non-deductible intan
g
ible asset amortization, and $0.3 million tax recover
y
related to stoc
k
-based com
p
ensation.
(2) Results for the year ended December 27, 2009 include $0.8 million stoc
k
-based compensation expense included in Cost of
revenues; $8.7 million stock-based compensation expense and $1.0 million termination costs included in Research and
development expenses; $12.0 million stock-based compensation expense and $0.6 million termination costs included in Selling,
general and administrative expenses; $3.0 million of non-cash interest expense for the accretion of the debt discount related to
the senior convertible notes; $2.7 million foreign exchange loss on foreign tax liabilities; $0.5 million loss on subleased
facilities; and $4.2 million income tax recovery which includes $6.5 million net tax recovery relating to foreign exchange
translation of a foreign subsidiary, $5.0 million tax provision relating to intercompany transactions, $4.8 million income tax
provision relating to income from operating results, $1.5 million tax provision based on completed filings and assessments
received from tax authorities, $1.5 million arrears interest relating to unrecognized tax benefits and $2.1 million deferred tax
recover
y
related to non-deductible intan
g
ible asset amortization.
(3) Results for the year ended December 28, 2008 include $1.1 million stoc
k
-based compensation expense included in Cost of
revenues; $11.2 million stock-based compensation expense included in Research and development expenses; $12.5 million stock
based compensation expense included in Selling, general and administrative expenses; $5.6 million of non-cash interest expense
for the accretion of the debt discount related to the senior convertible notes; $8.2 million foreign exchange gain on foreign tax
liabilities; $15.0 million gain on repurchase of senior convertible notes, net; and $70.0 million net income tax recovery including
$98.0 million net adjustment to the accrual for unrecognized tax benefits, $22.1 million income tax provision relating to income
from operating results, $8.2 million tax expense relating to foreign exchange translation of a foreign subsidiary, $3.0 million tax
recovery based on completed tax filings and assessments, $3.1 million arrears interest relating to unrecognized tax benefits, $2.3
million tax provision relating to the tax effect on an intercompany dividend, $1.4 million deferred tax recovery related to the
asset impairment related to the termination of a supplier contract, $2.0 million deferred tax recovery related to non-deductible
intan
g
ible asset amortization, and $1.3 million deferred tax recover
y
related to the im
p
airment of investment securities.
(4) Results for the year ended December 30, 2007 include $1.7 million stock-based compensation expense included in Cost of
revenues; $16.6 million stock-based compensation expense included in Research and development expenses; $17.1 million
stock-based compensation expense and $2.2 million reversal of an accrual for payroll-related taxes, included in Selling, general
and administrative expenses; $8.4 million of non-cash interest expense for the accretion of the debt discount related to the senior
convertible notes; $18.2 million foreign exchange loss on our income tax liability; and $16.8 million net income tax provision,
including $22.4 million income tax provision relating to income from operating results, $13.1 million of interest relating to the
liabilit
y
for unreco
g
nized tax benefit of
p
rior
y
ears, $6.2 million tax recover
y
related