Broadcom Completes Accounting Review of Warrant-Related Transactions; Conference Call and Webcast Today at 8:45 a.m. Eastern Time; 5:45 a.m. Pacific Time.Business Editors IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--March 21, 2001 Broadcom Broadcom Corporation is an American supplier of integrated circuits (ICs) for broadband communications. Founded in 1991 by Henry Samueli (chairman and CTO) and Henry Nicholas, it became a public company in 1998 and now employs over 5,000 people worldwide. Corporation (Nasdaq:BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ) today announced that it has completed its previously announced review of the accounting treatment for certain product purchase and development agreements and related performance-based warrants that it assumed upon consummating five acquisitions. As noted in a press release issued on March 6, 2001, Broadcom and its outside audit firm, Ernst & Young, have been re-evaluating the appropriate accounting treatment for the performance-based warrants. There had been no clear precedent for how transactions of this type should be handled. After consulting with its auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together as well as the staff of the Securities and Exchange Commission, Broadcom has followed the revised advice of its outside auditors in accounting for the purchase and development agreements and the related warrants. As a result, its financial statements for the third quarter of 2000 will be revised. The full year financial statements, when formally reported on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , will also follow the new methodology. The essence of the new accounting methodology is to eliminate balance sheet entries for purchased intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and goodwill related to the assumed agreements and warrants as well as income statement charges for amortization of those assets. The value of Broadcom common stock issued or issuable upon exercise of the assumed warrants will now be recorded pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. as a reduction of revenue as the warrants are earned by customers. "The application of this accounting methodology has had a minor impact on our reported results," said Dr. Henry T. Nicholas III Henry T. Nicholas III is the former Chairman and co-founder of Broadcom. Recognized as one of Forbes Magazine's Richest People with an estimated net worth of 2.3bn in 2007,[1] Nicholas has given lavishly to charities in Orange County,[2] where he lives. , Broadcom's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Attached to this press release are revised copies of the unaudited preliminary financial statements that accompanied our earnings press release of January January: see month. 23, 2001, covering our results for the quarter and year ended December December: see month. 31, 2000. As revised, on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) basis, our reported loss per share for the year improved by $.02. The GAAP loss per share for the fourth quarter was unchanged. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma presentation basis, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the year improved by $.01. Pro forma diluted earnings per share for the fourth quarter were unchanged." Accounting Treatment of Assumed Performance-Based Warrants Under the revised guidance now recommended by Ernst & Young, Broadcom will retain fixed accounting treatment for the agreements and warrants assumed in its acquisitions of Altima Communications, Inc., Silicon Spice Inc., Allayer al·lay tr.v. al·layed, al·lay·ing, al·lays 1. To reduce the intensity of; relieve: allay back pains. See Synonyms at relieve. 2. Communications and SiByte, Inc., but the balance sheet and statement of operations See Income statement. (income statement) presentations for GAAP purposes will change. These acquisitions closed during the period September September: see month. through December 2000. Under the previous guidance that Broadcom had been given by its auditors, at the time each company was acquired the estimated value of the assumed purchase and development agreements was capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. as a purchased intangible asset based on values established for the agreements by a nationally recognized independent valuation firm. As the warrants were earned by customers, a pro rata portion of the purchased intangible asset was amortized by Broadcom as a reduction of revenue. As of the date of each acquisition, the market value of the Broadcom common stock issued or issuable upon exercise of the assumed warrants in excess of the value assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to the purchased intangible asset was recorded on Broadcom's balance sheet as goodwill and was to be amortized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over five years from the acquisition date. Under the fixed accounting method, the amounts to be charged are based on the value of Broadcom common stock at the date each acquisition occurred and do not change with fluctuations in Broadcom's stock price. Under Broadcom's revised accounting model, as now recommended by Ernst & Young, the fixed accounting method will remain in place. However, no balance sheet entries will be made for purchased intangible assets or goodwill. Instead, the fixed value of the Broadcom common stock issued or issuable upon exercise of the assumed warrants will be recorded as a reduction of revenue as the warrants are earned by customers; warrants that are never earned will never give rise to a reduction of revenue. The revised accounting model will be applied to the four acquisitions that were completed and accounted for in the fiscal year ended December 31, 2000. To conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" these changes, Broadcom has revised its financial statements for the quarter and nine months ended September 30, 2000. The Altima acquisition closed during that period, and as a consequence, goodwill and purchased intangible assets related to the assumed Altima agreements and warrants were recorded on the balance sheet and related goodwill amortization of $8.9 million was expensed on the income statement. These entries have been removed from the revised statements. There was no revenue during this period related to the agreements, and no warrants were earned by customers. Loss per share for the third quarter under GAAP improved by $.03, and results for the nine months improved by $.02 per share. Pro forma results were unchanged. During the quarter ended December 31, 2000, Broadcom closed the acquisitions of Allayer, Silicon Spice and SiByte. As in the case of the Altima acquisition, goodwill and purchased intangible assets related to the agreements and warrants assumed in these acquisitions were recorded on the balance sheet and amortization of those assets was expensed on the income statement included in the unaudited preliminary three and twelve month financial statements accompanying Broadcom's January 23, 2001 earnings release. The balance sheet entries have now been removed. In addition, goodwill and purchased intangible asset amortization of $39.1 million has been removed and a reduction of revenue of $38.6 million for the value of warrants earned has been recorded. Loss per share on a GAAP basis was unaffected for the quarter. For the full year, GAAP loss per share improved by $.02. On a pro forma presentation basis, diluted earnings per share for the year improved by $.01, as the reduction of revenue was a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. . Pro forma diluted earnings per share for the fourth quarter were unchanged. For the acquisition of Visiontech Ltd., which closed in January 2001, Broadcom, in consultation with Ernst & Young, has determined that the variable method of accounting should be used because, in light of current economic and market conditions, the penalties contained in the Visiontech agreements may not be sufficient to preclude pre·clude tr.v. pre·clud·ed, pre·clud·ing, pre·cludes 1. To make impossible, as by action taken in advance; prevent. See Synonyms at prevent. 2. nonperformance Non`per`form´ance n. 1. Neglect or failure to perform. Noun 1. nonperformance - failure to act with the prudence that a reasonable person would exercise under the same circumstances by the customers. Variable accounting is similar to fixed except that the amount to be charged as a reduction of revenue will be based on the market value of Broadcom common stock when the warrants are earned, instead of the market value on the date of the acquisition. "The product purchase and development agreements from these five acquisitions are with customers important to Broadcom," continued Dr. Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar . "The most important part of these agreements from our perspective is the relationships developed with customers, and the product design wins generated thereby. Those relationships should continue to develop and grow, although, under current economic and market conditions, some of the agreements themselves may no longer be desirable. In those cases we anticipate renegotiating or terminating the agreements, with the associated performance-based warrants being rescinded or terminated. We believe that in all cases the positive customer relationships that resulted from these agreements -- as well as the product design wins -- will continue on." Conference Call and Webcast Today Dr. Henry T. Nicholas III, Broadcom's President and CEO, and William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack J. Ruehle, Vice President and CFO See Chief Financial Officer. , will discuss the accounting review in an analyst conference call today at 8:45 a.m. Eastern Time (5:45 a.m. Pacific Time). The call will be simultaneously available to the public via live audio Webcast. The Webcast may be accessed from Broadcom's Web site at www.broadcom.com/investor or at www.streetfusion.com. The Webcast will be recorded and available for replay through 5:00 p.m. Pacific Time on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 23. About Broadcom Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). digital transmission of voice, video and data. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies system-on-a-chip System-on-a-chip or system on chip (SoC or SOC) refers to integrating all components of a computer or other electronic system into a single integrated circuit (chip). solutions for broadband communications markets. Broadcom products enable communications for applications in cable set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , cable modems cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. , high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. local, metropolitan and wide area and optical networks, home networking, Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (VoIP), carrier access, residential broadband gateways, direct broadcast satellite and terrestrial Dealing with the earth. See terrestrial link. digital broadcast, digital subscriber lines See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (xDSL Refers to DSL technologies in general, including ADSL, HDSL, SDSL and VDSL. See DSL. xDSL - Digital Subscriber Line ), wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , SystemI/O(TM) server solutions and network processing. Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release and our conference call contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , including any underlying assumptions, are forward-looking statements. These statements speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and are based upon information available to us now. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Broadcom include, but are not limited to, general economic conditions and specific conditions in the markets we address, including periodic downturns in the semiconductor industry; the timing, rescheduling or cancellation of significant customer orders; our ability to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. or terminate on acceptable terms the product purchase and development agreements and performance-based warrants assumed in certain acquisitions; results of changes in our accounting for the performance-based warrants; the loss of a key customer; the volume of our product sales and pricing concessions on volume sales; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. pricing; intellectual property disputes and customer indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from claims; the availability of foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. and assembly capacity and raw materials; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in our target markets; delays in the adoption and acceptance of industry standards in the foregoing markets; the risks inherent in our acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume production, integration issues, costs and unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues, accounting treatment and charges, and the risks that the acquisition cannot be completed successfully or that anticipated benefits are not realized; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; problems or delays that we may face in shifting our products to smaller geometry geometry [Gr.,=earth measuring], branch of mathematics concerned with the properties of and relationships between points, lines, planes, and figures and with generalizations of these concepts. process technologies and in achieving higher levels of design integration; the effectiveness of our product cost reduction efforts; the effects of new and emerging technologies; the risks and uncertainties associated with our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; changes in our product or customer mix; the quality of our products and any remediation costs; the effects of natural disasters and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors. Our forthcoming Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , recent Current Reports on Forms 8-K and 8-K/A, and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Broadcom, the pulse logo and SystemI/O are trademarks of Broadcom Corporation and/or its affiliates in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and certain other countries.
BROADCOM CORPORATION
Unaudited Pro Forma Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Gross revenue $ 378,840 $ 161,998 $1,134,763 $ 521,225
Cost of revenue 159,863 66,414 476,359 211,576
Gross profit 218,977 95,584 658,404 309,649
Operating expense:
Research and development 85,851 33,639 239,841 116,199
Selling, general and
administrative 30,699 17,647 98,244 59,822
Income from operations 102,427 44,298 320,319 133,628
Interest and other income,
net 8,622 2,779 21,606 8,648
Income before income taxes 111,049 47,077 341,925 142,276
Provision for income taxes 22,210 15,049 68,385 42,510
Pro forma net income $ 88,839 $ 32,028 $ 273,540 $ 99,766
Pro forma basic earnings
per share $ .38 $ .15 $ 1.24 $ .49
Pro forma diluted earnings
per share $ .32 $ .13 $ 1.05 $ .42
Weighted average shares
(basic) 234,073 207,688 220,101 201,667
Weighted average shares
(diluted) 274,103 245,199 261,359 235,651
Pro Forma Only
The above pro forma statements are based upon our unaudited
consolidated statements of operations for the periods shown, with
certain adjustments. The pro forma statement for the three months
ended December 31, 2000 has been adjusted to eliminate a non-cash
revenue deduction of $38.6 million constituting the fair value of
warrants earned by customers; $667.4 million of in-process research
and development expense; $2.1 million of payroll tax expense on
certain stock option exercises; $89.2 million of stock-based
compensation expense related to mergers and acquisitions ("M&A");
$124.5 million of amortization of goodwill and purchased intangibles
related to M&A; and reflects a pro forma effective tax rate of
approximately 20%.
The pro forma statement for the three months ended December 31, 1999
has been adjusted to eliminate $2.1 million of payroll tax expense on
certain stock option exercises and $.9 million of stock-based
compensation expense; and reflects a pro forma effective tax rate of
32.0%.
The pro forma statement for the twelve months ended December 31, 2000
has been adjusted to eliminate a non-cash revenue deduction of $38.6
million constituting the fair value of warrants earned by customers;
$713.1 million of in-process research and development expense; $16.9
million of payroll tax expense on certain stock option exercises;
$119.9 million of stock-based compensation expense related to M&A;
$140.5 million of amortization of goodwill and purchased intangibles
related to M&A; and $4.7 million of merger-related expense; and
reflects a pro forma effective tax rate of approximately 20%.
The pro forma statement for the twelve months ended December 31, 1999
has been adjusted to eliminate $5.0 million of payroll tax expense on
certain stock option exercises; $3.7 million of stock-based
compensation expense; $15.2 million of merger-related expense; and
$17.0 million of litigation settlement costs; and reflects a pro forma
effective tax rate of 29.9%.
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
BROADCOM CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Gross revenue $ 378,840 $ 161,998 $1,134,763 $ 521,225
Less: fair value of warrants
earned by customers(a) (38,603) -- (38,603) --
Net revenue 340,237 161,998 1,096,160 521,225
Cost of revenue(b)(c) 159,945 66,526 477,375 211,842
Gross profit 180,292 95,472 618,785 309,383
Operating expense:
Research and
development(b)(c) 87,326 35,005 250,676 119,300
Selling, general and
administrative(b)(c) 31,208 18,264 103,305 61,475
Stock-based compensation(d) 89,230 893 119,885 3,709
Amortization of goodwill(d) 121,585 -- 136,984 --
Amortization of purchased
intangible assets(d) 2,905 -- 3,521 --
In-process research and
development(d) 667,390 -- 713,050 --
Merger-related costs -- -- 4,745 15,210
Litigation settlement costs -- -- -- 17,036
Income (loss) from operations (819,352) 41,310 (713,381) 92,653
Interest and other income, net 8,622 2,779 21,606 8,648
Income (loss) before income
taxes (810,730) 44,089 (691,775) 101,301
Provision (benefit) for income
taxes (42,460) 11,100 (3,953) 28,830
Net income (loss) $(768,270)$ 32,989 $ (687,822)$ 72,471
Basic earnings (loss)
per share $ (3.28)$ .16 $ (3.13)$ .36
Diluted earnings (loss)
per share $ (3.28)$ .13 $ (3.13)$ .31
Weighted average shares
(basic) 234,073 207,688 220,101 201,667
Weighted average shares
(diluted) 234,073 245,199 220,101 235,651
Notes:
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
(a) In connection with certain acquisitions, the Company assumed a
number of purchase and development agreements whereby warrants were
granted to customers. In each period in which the warrants are earned,
a non-cash charge for the fair value of the warrants is recorded.
(b) Excludes stock-based compensation expense as follows:
Cost of revenue $ 3,888 $ 37 $ 4,578 $ 149
Research and development 62,513 554 85,302 2,433
Selling, general and
administrative 22,829 302 30,005 1,127
$ 89,230 $ 893 $119,885 $ 3,709
Excludes amortization of purchased intangible assets as follows:
Cost of revenue $ 1,851 $ -- $ 2,266 $ --
Research and development 951 -- 1,152 --
Selling, general and
administrative 103 -- 103 --
$ 2,905 $ -- $ 3,521 $ --
(c) Includes employer payroll tax expense on certain stock option
exercises as follows:
Cost of revenue $ 82 $ 112 $ 1,016 $ 266
Research and development 1,475 1,366 10,835 3,101
Selling, general and
administrative 509 617 5,061 1,653
$ 2,066 $ 2,095 $ 16,912 $ 5,020
(d) Represents non-cash acquisition-related expenses charged to
operations.
BROADCOM CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2000 (a) 1999
ASSETS
Current assets:
Cash and cash equivalents $ 523,904 $ 180,816
Short-term investments 77,682 90,059
Accounts receivable, net 172,314 92,124
Inventory 52,137 19,177
Deferred taxes 10,397 8,380
Other current assets 39,220 12,950
Total current assets 875,654 403,506
Property and equipment, net 132,870 51,151
Long-term investments 1,984 9,351
Deferred taxes 351,937 137,779
Goodwill and purchased intangible
assets, net 3,260,464 --
Other assets 54,913 7,966
Total assets $4,677,822 $ 609,753
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 78,163 $ 46,458
Wages and related benefits 34,720 15,430
Accrued liabilities 66,030 26,131
Note payable 21,051 --
Other current liabilities 2,598 4,862
Total current liabilities 202,562 92,881
Shareholders' equity 4,475,260 516,872
Total liabilities and
shareholders' equity $4,677,822 $ 609,753
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
(a) The Balance Sheet as of December 31, 2000 reflects the following
adjustments to the amounts originally disclosed in our earnings
release on January 23, 2001: 1) removal of $689.4 million and $343.8
million originally recorded at September 30, 2000 and December 31,
2000, respectively, for goodwill and purchased intangible assets
related to the agreements and warrants; 2) removal of $689.4 million
and $343.8 million originally recorded at September 30, 2000 and
December 31, 2000, respectively, to paid-in-capital for the fair value
of the warrants assumed; 3) removal of $8.9 million and $39.1 million
originally recorded in the three month periods ended September 30,
2000 and December 31, 2000, respectively, of amortization of goodwill
and purchased intangible assets related to the agreements and
warrants; 4) record paid-in-capital of $38.6 million for the fair
value of warrants earned by customers in the three months ended
December 31, 2000; and 5) record related tax adjustments of $3.6
million and $0.2 million for the three month periods ended September
30, 2000 and December 31, 2000, respectively.
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