Table of Contents
The following tables detail acquisition and related costs and other charges (in thousands):
Year ended December 31,
Acquisition and related costs:
In process research and development
Merger related costs
$ (3,504 )
Year ended December 31,
Litigation settlement charges
Past overtime worked
Notes receivable allowances
Impaired prepaid data license
The restructuring charges of $17.4 million in the year ended December 31, 2001 includes leasehold
improvements, furniture and office equipment and future operating lease costs, net of estimated sublease income, from the closure of our
Seattle and Mountain View facilities and a portion of our Montreal facility. In negotiations with potential sublessees, we determined that due to
current economic conditions and vacancy rates the properties would not be subleased at a rate that would provide for full recovery of future
lease payments. Accordingly, a charge for the difference between the future lease costs and the probable sublease income was recorded at the
time we made the decision to abandon the property. Also included in the restructuring charges for the year ended December 31, 2001 are
severance costs for the reduction in workforce from the closure of the Mountain View facility and from the February and October 2001
company wide formal workforce reductions. We recorded a restructuring charge of $2.3 million in the year ended December 31, 2000 for the
closures of the Dallas, Texas and Ottawa, Canada facilities.
Loss on Investments, net.
Loss on investments consists of recognized gains and losses on investments in accordance with Statement of
Financial Accounting Standards (SFAS) No. 133
Accounting for Derivative Instruments and Hedging Activities
, recognized gains and losses
on investments marked to fair value in the Venture Fund, which was active from January 1, 2000 through March 31, 2001, realized gains and
losses on investments and impairment on investments.
Gains and losses in accordance with SFAS No. 133:
Effective January 1, 2001, we adopted SFAS No. 133 which requires us to adjust
our derivative instruments to fair value and recognize the change in the fair value in earnings. We hold warrants to purchase stock in other
companies, which qualify as derivatives. For the year ended December 31, 2001, we recognized a $5.4 million loss on these warrants.
On January 26, 2001, our Board of Directors approved the liquidation of the Venture Fund. In the first quarter of 2001,
we disbursed $16.4 million to the accredited investors, representing 100% of the accredited investor ownership. The Board of Directors also
approved the acceleration of vesting of the contribution we made on behalf of our employees. The contribution was paid out in conjunction
with the dissolution of the fund, resulting in compensation expense of $1.0 million in the first quarter of 2001. We recorded $517,000 of
compensation expense in the year ended December 31, 2000 related to the contribution.
Investments held by the Venture Fund were held at fair value, with changes in fair value reflected as gains and losses in the Statement of
Operations, as required by investment company accounting, which was carried forward in consolidation pursuant to EITF Issue No. 85 12
Retention of Specialized Accounting for Investments