EX-99.A 12 ex-99a.htm

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, 2003 and 2002, and for the years then ended, and have issued our report thereon dated December 1, 2003 (included elsewhere in this Form 10-K). Our audits also included the financial statement schedule for the years ended October 31, 2003 and 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 audits.

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 1, 2003


ADC Telecommunications, Inc.
Schedule II
For Year Ended October 31, 2003
(in millions)

Fiscal 2003
Balance at
Beginning of
Year

Charged to Costs
and Expenses

Deductions
(Reclassifications)(1)

Balance at
End of Year

Allowance for doubtful
accounts & notes receivable
  $      39 .7 $     3 .7 $      (8 .2) $    51 .6
Inventory reserve  93 .9 2 .9 51 .2 45 .6
Restructuring reserve  124 .2 41 .8 132 .6 33 .4
Warranty accrual  13 .1 6 .6 6 .3 13 .4


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 reserve  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 reserve  14 .4 483 .4 377 .0 120 .8
Warranty accrual  36 .4 48 .4 55 .4 29 .4

(1) Includes $15.5 million of allowance for notes receivable previously classified as current liabilities.