Adaptec 2005 Annual Report Download - page 60

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Table of Contents
Other Investments
Our other investments include strategic investments in privately held companies that are carried on our balance sheet at cost, net of write-downs for
non-temporary declines in market value. We expect to make additional investments like these in the future. These investments are inherently risky, as they
typically are comprised of investments in companies and partnerships that are still in the start-up or development stages. The market for the technologies or
products that they have under development is typically in the early stages, and may never materialize. We could lose our entire investment in these companies
and partnerships or may incur an additional expense if we determine that the value of these assets has been impaired. For example, in the second quarter of 2006
we recorded a charge of $3.2 million for impairment of an investment in a private company. We may record additional impairment charges should we determine
that our investments have incurred a non-temporary decline in value.
54
Source: PMC SIERRA INC, 10-K, February 22, 2008