Adaptec 2009 Annual Report Download - page 47

Annual Report
The following tables are reconciliations between amounts reported in the previous filing of the Form 10-K
as of the year ended December 28, 2008, which was filed with the Securities and Exchange Commission (“SEC”)
on February 26, 2009, to the amounts reported in the current filing for these same periods to reflect retroactive
adjustments:
Year Ended
December 28, 2008 December 30, 2007
(in thousands, except for per share amounts) As adjusted As reported*** As adjusted As reported***
Deferred debt issue costs* ....................... $ 774 $ 1,127 $ 3,214 $ 4,677
2.25% senior convertible notes due October 15,
2025 ...................................... 55,357 68,340 173,130 225,000
Additional paid in capital ....................... 1,471,476 1,436,306 1,462,267 1,394,946
Deficit ...................................... (689,241) (666,701) (817,538) (800,624)
Interest expense ** ............................ (8,682) (3,065) (13,481) (5,064)
Gain on repurchase of senior convertible notes, net of
amortization of debt issue costs ................ 14,568 14,577 (680) (968)
Net income (loss) ............................. $ 128,297 $ 133,923 $ (57,233) $ (49,104)
Net (loss) income per common share—basic ........ $ 0.58 $ 0.60 $ (0.26) $ (0.23)
Net (loss) income per common share—diluted ....... $ 0.57 $ 0.60 $ (0.26) $ (0.23)
Shares used in per share calculation—basic ......... 221,659 221,659 216,330 216,330
Shares used in per share calculation—diluted ....... 223,687 223,687 216,330 216,330
Year Ended
December 28, 2008 December 30, 2007
(in thousands) As adjusted As reported*** As adjusted As reported***
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Cash flows from operating activities:
Net income (loss) ......................... $ 128,297 $ 133,923 $ (57,233) $ (49,104)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization ............... 59,796 54,422 71,356 63,227
Gain on repurchase of senior convertible notes,
net ................................... $ (14,980) $ (15,172) $ — $ —
* Deferred debt issue costs are included in the consolidated balance sheets as Investments and other assets.
** Interest expense is included in the consolidated statements of operations as Interest (expense) income, net.
*** Balances are as reported in the Company’s Form 10-K for the year ended December 28, 2008.
Fair Value Accounting
Effective April 26, 2009, we adopted ASC Topic 320-10-65, which amends other-than-temporary
impairment guidance relating to debt securities. If the fair value of a debt security is less than its amortized cost,
we assess whether the impairment is other than temporary. An impairment is considered other than temporary if
(i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security
before recovery of the entire amortized cost basis or (iii) we do not expect to recover the entire amortized cost
basis of the security. If an impairment is considered other than temporary based on condition (i) or (ii) described
above, the entire difference between the amortized cost and the fair value of the debt security is recognized in
earnings. If an impairment is considered other than temporary based on condition (iii), the amount representing
credit losses (defined as the difference between the present value of the cash flows expected to be collected and
the amortized cost basis of the debt security) will be recognized in earnings and the amount relating to all other
factors will be recognized in Other Comprehensive Income. There was no financial reporting impact due to the
adoption of this standard.
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