Adaptec 2010 Annual Report Download - page 28

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27
to foreign exchange translation of a foreign subsidiary, $6.7 million tax recovery based on completed tax filings and
assessments, $3.8 million recovery of future income taxes, and $2.0 million deferred tax recovery related to non-deductible
intan
g
ible asset amortization,
(5) Results for the year ended December 31, 2006 include $8.2 million purchase accounting adjustments to inventory, $1.8 million
stock-based compensation expense, and $0.8 million in additional contractor costs included in Cost of revenues; $16.2 million
stock-based compensation expense included in Research and development expenses; $2.4 million for employee-related taxes;
$19.9 million stock-based compensation expense and $0.2 million acquisition-related relocation expenses included in Selling,
general and administrative expenses; $7.8 million of non-cash interest expense for the accretion of the debt discount related to
the senior convertible notes; $0.5 million foreign exchange gain on our income tax liability; $49.2 million net income tax
provision including $29.9 million increase in our estimated tax provision for previous years as a result of a written
communication received in 2007 from a tax authority, $16.5 million income tax provision relating to income from operating
results, and $7.0 million withholding and other taxes on repatriation of funds included in the provision for income taxes and $4.2
million income tax recovery relating to deferred tax recovery related to non-deductible intangible asset amortization and other
tax ad
j
ustments.