EX-99.C 18 a2097401zex-99_c.htm EX-99.C
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Exhibit 99-c


REPORT OF INDEPENDENT AUDITORS

Board of Directors and Shareowners
ADC Telecommunications, Inc.

        We have audited the consolidated financial statements of ADC Telecommunications, Inc. and subsidiaries as of October 31, 2002, and for the year then ended, and have issued our report thereon dated December 2, 2002 (included elsewhere in this Form 10-K). Our audit also included the financial statement schedule for the year ended October 31, 2002 listed in Item 15(a) of this Form 10-K. This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audit.

        In our opinion, the financial statement schedule referred to above, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ ERNST & YOUNG LLP
Minneapolis, Minnesota
December 2, 2002
   


ADC Telecommunications, Inc.
Schedule II
For Year Ended October 31, 2002
(in millions)

Fiscal 2002

  Balance at
Beginning of Year

  Charged to Costs and
Expenses

  Deductions
  Balance at End of Year
Allowance for doubtful accounts & notes receivable   $ 87.1   $ 26.4   $ 73.8   $ 39.7
Inventory reserve     89.5     49.7     45.3     93.9
Restructuring accrual     120.8     220.1     216.7     124.2
Warranty accrual     29.4     (2.9 )   13.4     13.1
Fiscal 2001

  Balance at Beginning of Year
  Charged to Costs and Expenses
  Deductions
  Balance at End of Year
Allowance for doubtful accounts & notes receivable   $ 18.9   $ 111.0   $ 42.8   $ 87.1
Inventory reserve     47.3     165.3     123.1     89.5
Restructuring accrual     14.4     483.4     377.0     120.8
Warranty accrual     36.4     48.4     55.4     29.4
Fiscal 2000

  Balance at Beginning of Year
  Charged to Costs and Expenses
  Deductions
  Balance at End of Year
Allowance for doubtful accounts & notes receivable   $ 9.2   $ 15.0   $ 5.3   $ 18.9
Inventory reserve     27.6     31.2     11.5     47.3
Restructuring accrual     9.0     13.3     7.9     14.4
Warranty accrual     9.7     34.5     7.8     36.4

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REPORT OF INDEPENDENT AUDITORS
ADC Telecommunications, Inc. Schedule II For Year Ended October 31, 2002 (in millions)