Avid 1996 Annual Report Download - page 38

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37
M. Geographic Information
A summary of the Company's operations by geographical area for the years ended December 31, 1996, 1995, and 1994
follows (in thousands):
1996 1995 1994
Net revenues:
North America $283,959 $283,474 $182,230
Asia Pacific and Latin America 36,424 23,365 5,667
Europe 153,311 131,014 64,180
Eliminations of transfers from North America to other areas. (44,685) (31,203) (18,444)
Total net revenues $429,009 $406,650 $233,633
Operating income:
North America $(63,451) (1) $11,111 $14,610
Asia Pacific and Latin America (191) (1) 1,480 283
Europe 4,991 (1) 16,732 8,316
Eliminations (712) (6,676) (2) 203
Total operating income (loss) $(59,363) $22,647 $23,412
Identifiable assets:
North America $158,846 $196,143 $112,122
Asia Pacific and Latin America 15,965 20,408 4,294
Europe 49,385 61,412 48,897
Eliminations (17,257) (26,851) (35,030)
Total identifiable assets $206,939 $251,112 $130,283
Corporate assets 94,040 80,492 51,891
Total assets at December 31, $300,979 $331,604 $182,174
(1) Includes nonrecurring costs, as described in Note N, of $24,248,000, $632,000, and $4,070,000 recorded in North
America, Asia Pacific, Latin America, and Europe, respectively in 1996.
(2) Includes expenses of $5,456,000 related to merger costs.
Sales outside North America included in North American operations were approximately $22,477,000, $35,680,000, and
$31,317,000 in 1996, 1995, and 1994, respectively.
Transfers between geographic areas are accounted for at prices which, in general, provide a profit after coverage of all
manufacturing costs.
Identifiable assets are those assets of the Company that are identified with the operations in each geographic area. Corporate
assets are principally cash and marketable securities.
N. Nonrecurring Costs
In the first quarter of 1996, the Company recorded a nonrecurring charge of $20,150,000. Included in this charge was
$7,000,000 associated with restructuring, consisting of approximately $5,000,000 of costs related to staff reductions of
approximately 70 employees, primarily in the U.S., and associated write-offs of fixed assets, and $2,000,000 related to the
decision to discontinue development of certain products and projects. Included in this $7,000,000 were approximately
$4,976,000 of cash payments consisting of $3,617,000 of salaries and related severance costs and $1,359,000 of other staff
reduction and discontinued development costs. The non-cash charges of $2,024,000 recorded during 1996 consists primarily
of $1,459,000 for the write-off of fixed assets. Also included in this $20,150,000 nonrecurring charge is $13,150,000
related to product transition costs associated with the transition from NuBus to PCI bus technology in some of the
Company’s product lines. As of December 31, 1996, the Company had completed the related restructuring and product
transition actions.