Adaptec 2005 Annual Report Download - page 89

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Table of Contents
To date, PMC has made cash payments of $12.7 million and $176.6 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 all of its surplus facilities. Efforts to exit these sites are ongoing, but
the payments related to these facilities could extend to 2011.
NOTE 6. Investments in Debt Securities
At December 30, 2007, we held $35.1 million (2006—$153.2 million) in U.S. Government Treasury and Agency notes, which were classified as
available-for-sale investments. These investments are included in cash and cash equivalents in the Consolidated Balance Sheet and have maturities of three
months or less.
NOTE 7. Investments and Other Assets
The components of other investments and assets are as follows:
(in thousands)
December 30,
2007
December 31,
2006
Investments in private entities $ 2,000 $ 2,000
Deferred debt issue costs (Note 9) 4,677 5,645
Other assets 4,070 7,008
$ 10,747 $ 14,653
During 2006, the Company recorded a $3.2 million impairment loss on its investment in a private company, which was its carrying value. This was offset by a
$0.1 million gain on sale of another investment. In addition, the Company sold its investment in Ikanos Communications Inc. (Ikanos) in 2006 for proceeds of
$5.1 million and recorded a gain of $3.1 million, included in Gain on investments on the Statement of Operations.
The Company monitors the value of its investments for impairment and records an impairment charge to reflect any decline in value below its cost basis, if that
decline is considered to be other than temporary. The assessment of impairment in carrying value is based on the market value trends of similar public
companies, the current business performance of the entities in which we have invested, and if available, the estimated future market potential of the companies
and venture funds.
As of December 30, 2007 the Company had deposits of $4 million related to long-term design tool contracts. These costs are recorded as other assets and are
being amortized according to usage over the contract term, which ends in 2010.
83
Source: PMC SIERRA INC, 10-K, February 22, 2008