Adaptec 2006 Annual Report Download - page 57

Table of Contents
Cash flows from our investment activities included:
• cash used to purchase the Storage Semiconductor Business for approximately $419.4 million, net of $17.5 million acquired from the Passave
acquisition;
• cash proceeds of $222.4 million from the sale or maturity of short-term debt investments;
• proceeds of $5.4 million from the sale of strategic investments and other assets; and
• investments of $13.2 million for the purchases of property, equipment and intangible assets.
Cash flows from our financing activities included:
• cash proceeds of $26.0 million from the issuance of common stock under our equity-based compensation plans.
As of December 31, 2006 we have the following commitments:
(in thousands) Total 2007 2008 2009 2010 2011 After 2011
Contractual Obligations
Operating Lease Obligations:
Minimum Rental Payments $ 44,136 $ 11,454 $ 12,760 $ 7,869 $ 7,431 $ 4,622 $ —
Estimated Operating Cost Payments 14,676 4,141 3,727 2,810 2,799 1,199 —
Long Term Debt:
Principal Repayment 225,000 — — — — — 225,000
Interest Payments 96,190 5,063 5,063 5,063 5,063 5,063 70,875
Purchase and other Obligations 15,830 4,580 4,276 5,579 1,395 — —
$ 395,832 $ 25,238 $ 25,826 $ 21,321 $ 16,688 $ 10,884 $ 295,875
On October 26, 2005, we issued $225 million aggregate principal amount of 2.25% senior convertible notes due 2025 and have recorded these Notes as
long-term debt. Issuance costs of $6.8 million have been deferred and are being amortized over seven years.
The notes rank equal in right of payment with our other unsecured senior indebtedness and mature on October 15, 2025 unless earlier redeemed by us at our
option, or converted or put to us at the option of the holders. Interest is payable semi-annually in arrears on April 15 and October 15 of each year, commencing
on April 15, 2006. We may redeem all or a portion of the notes at par on and after October 20, 2012. The holders may require that we repurchase notes on
October 15, 2012, 2015 and 2020 respectively.
Holders may convert the notes into the right to receive the conversion value (i) when our stock price exceeds 120% of the approximately $8.80 per share initial
conversion price for a specified period, (ii) in certain change in control transactions, and (iii) when the trading price of the notes does not exceed a minimum
price level. For each $1,000 principal amount of notes, the conversion value represents the amount equal to 113.6687 shares multiplied by the per share price of
our common stock at the time of conversion. If the conversion value exceeds $1,000 per $1,000 in principal of notes, we will pay $1,000 in cash and may pay the
amount exceeding $1,000 in cash, stock or a combination of cash and stock, at our election.
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Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠