Adaptec 2006 Annual Report Download - page 91

Download and view the complete annual report

Please find page 91 of the 2006 Adaptec annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Table of Contents
projects, resulting in a restructuring charge of $175.3 million, including $12.2 million of asset write-downs. Due to the continued downturn in real estate markets,
the Company recorded additional provisions for abandoned office facilities of $1.3 million in the fourth quarter of 2004.
In the first quarter of 2001, the Company recorded a charge of $19.9 million for a restructuring plan that included the termination of 223 employees across all
business functions, the consolidation of a number of facilities and the curtailment of certain research and development projects. Due to the continued downturn in
real estate markets, the Company recorded additional provisions for abandoned office facilities of $2.2 million in the fourth quarter of 2004, and $0.8 million in
the third quarter of 2006.
To date, the Company has made cash payments of $12.7 million and $174.5 million related to the 2003 and 2001 plans, respectively. The Company has
completed the activities contemplated in these restructuring plans, but has not yet terminated the leases on its surplus facilities. Efforts to exit these sites are
ongoing, but the payments related to these facilities could extend to 2011.
NOTE 7. Investments in Debt Securities
The following tables summarize the Company’s investments in debt securities:
December 31,
(in thousands) 2006 2005
Available-for-sale:
US Government Treasury and Agency notes $ — $ 129,920
Corporate bonds and notes 153,249 441,167
$ 153,249 $ 571,087
Reported as:
Cash equivalents $ 153,249 $ 349,177
Short-term investments — 221,910
$ 153,249 $ 571,087
The total fair value of available-for-sale investments at December 31, 2006 was $153.2 million (2005 - $571.1 million) with all investments maturing within 1
month. There was no unrealized gain or loss on these investments at December 31, 2006 (2005 - $1.7 million).
NOTE 8. Investments and Other Assets
The components of other investments and assets are as follows:
89
Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠