Adaptec 2004 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2004 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 103

  • 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

• an investment of $9.9 million for the purchases of property and equipment; and
• cash proceeds of $20.1 million from the sale of our venture fund investments and other assets which was partially offset by $6.1
million investments in such entities during the year.
In 2004 cash flows from our financing activities included:
•$106.9 million of cash was used to repurchase a portion of our convertible subordinated notes; and
•cash proceeds of $14.6 million from the issuance of common stock under our equity−based compensation plans.
As of December 31, 2004 we have the following commitments:
(in thousands)
Contractual Obligations Total 2005 2006 2007 2008 2009 After
2009
Operating Lease Obligations:
Minimum Rental Payments $ 58,256 $ 10,100 $ 9,563 $ 9,537 $ 11,347 $ 6,644 $ 11,065
Estimated Operating Cost Payments 21,781 3,846 3,634 3,614 3,421 2,825 4,441
Long Term Debt:
Principal Repayment 68,071 68,071 — — — — —
Interest Payments and Call Premium 6,127 6,127 — — — — —
Purchase and other Obligations 7,374 4,842 2,532 — — — —
$161,609 $ 92,986 $ 15,729 $ 13,151 $ 14,768 $ 9,469 $ 15,506
Subsequent to December 31, 2004 we repurchased the remaining $68.1 million of our convertible subordinated notes, eliminating the
principal commitment and reducing the interest and call premium payment commitment by $4.0 million in the above table.
Purchase obligations are comprised of commitments to purchase design tools and software for use in product development. We have
not included open purchase orders for inventory or other expenses issued in the normal course of business in the purchase obligations
shown above. We estimate these other commitments to be approximately $7.5 million at December 26, 2004 for inventory and other
expenses that will be received in the coming 90 days and that will require settlement 30 days thereafter.
We have a line of credit with a bank that allows us to borrow up to $1.5 million provided we maintain eligible investments with the
bank equal to the amount drawn on the line of credit. At December 31, 2004 we had committed $1.3 million under letters of credit as
security for office leases.
We expect to use approximately $18 million of cash in 2005 for capital expenditures. Based on our current operating prospects, we
believe that existing sources of liquidity will satisfy our projected operating, working capital, capital expenditure, wafer deposit and
remaining
33