Table of Contents 

The following tables detail acquisition and related costs and other charges (in thousands):  

Year ended December 31, 

2001 

2000 

1999 

Acquisition and related costs: 

In process research and development 

$ 

600   

$ 

80,100 

$ 

9,200 

Merger related costs 

(4,104 ) 

43,898 

4,374 

$  (3,504 ) 

$ 

123,998 

$  13,574 

Year ended December 31, 

2001 

2000 

1999 

Other charges: 

Litigation settlement charges 

$ 

2,398   

$  1,732 

$  11,360 

Past overtime worked 

(2,371 ) 

3,000 

Notes receivable allowances 

10,630   

Impaired prepaid data license 

848   

$  11,505   

$  4,732 

$  11,360 

Restructuring Charges. 

    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.  

Venture Fund: 

  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 

40