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37
36
Fiscal 1998 Restructuring Program The 1998 restructuring program was implemented to
refocus our product development efforts and to eliminate management redundancies in
our organization. This program consisted of severance and related charges for 364 posi-
tions, four of which were executive positions. In addition, we divested two business units,
canceled certain contracts, and vacated leased facilities. These restructuring actions in fis-
cal 1998 resulted in total charges of $38.2 million, of which approximately $9.1 million
were noncash charges. During fiscal 2000, we paid our remaining obligation related to
this restructuring program, and as of December 1, 2000, no restructuring liability existed.
ACCRUED ACCRUED
BALANCE AT BALANCE AT
DECEMBER 3 CASH DECEMBER 1
1999 PAYMENTS ADJUSTMENTS 2000
Severance and related charges $ 259 $ (87) $ (172) $ —
Lease termination costs 78 (7) (71) —
Other charges 435 (435) — —
$ 772 $ (529) $ (243) $ —
Other Charges During the second quarter of fiscal 2000, we recorded other charges of
approximately $6.3 million that were unusual in nature. These charges related to the dis-
posal of certain equipment and one-time litigation-related expenses.
During the third and fourth quarters of fiscal 1999, we recorded other charges of approxi-
mately $8.4 million that were unusual in nature. These charges included $2.0 million
associated with the cancelation of a contract and $2.2 million for accelerated depreciation
related to the adjustment of the useful life of certain assets as a result of decisions made by
our management as part of the restructuring program. We also incurred a nonrecurring
compensation charge of $2.6 million for a terminated employee and consulting fees of
$1.6 million to assist in the restructuring of our operations.
NOTE 8. INCOME TAXES
Income before income taxes includes net income from foreign operations of approxi-
mately $39.0 million, $23.1 million, and $18.8 million for the years ended December 1,
2000; December 3, 1999; and November 27, 1998, respectively.
The provision for income taxes consisted of the following:
DECEMBER 1 DECEMBER 3 NOVEMBER 27
YEARS ENDED 2000 1999 1998
Current:
United States federal $ 13,096 $ 54,097 $ 34,466
Foreign 11,452 11,346 15,394
State and local 5,063 12,061 6,869
Total current 29,611 77,504 56,729
Deferred:
United States federal (1,569) (569) (4,312)
Foreign 3,568 1,810 (1,500)
State and local (601) (547) (962)
Total deferred 1,398 694 (6,774)
Charge in lieu of taxes
attributable to
employee stock plans 124,922 58,478 12,595
$ 155,931 $ 136,676 $ 62,550