Adaptec 2009 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2009 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 100

  • 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

Financial assets and liabilities measured on a recurring basis as of December 27, 2009 are summarized
below:
(in thousands)
Fair value, December 27, 2009
Level 1 Level 2 Level 3
Assets:
Money market funds (1) .............................................. $163,084 $ — $23,242
Corporate bonds and notes (1) ......................................... 124,647 — —
US Treasury and Government Agency notes (1) ........................... 74,109 — —
Foreign Government and Agency notes (1) ............................... 30,220 — —
US States and Municipal securities (1) .................................. 8,346 — —
Forward currency contracts (2) ........................................ — 783 —
Total Assets ...................................................... $400,406 $ 783 $23,242
Liabilities:
2.25% senior convertible notes due October 15, 2025 (3) .................... $ — $58,356 $ —
Total Liabilities ................................................... $ — $58,356 $ —
(1) Included in cash and cash equivalents, short-term investments and long-term investment securities
(see Note 6. Investment Securities).
(2) Included in Prepaid expenses and other current assets.
(3) See Note 9. Long-Term Debt.
The following table is a reconciliation of financial assets and liabilities measured at fair value on a recurring
basis classified as Level 3, from the year ended December 30, 2007 to the year ended December 27, 2009:
(in thousands) Level 3
Balance at December 30, 2007 ........................................................ $ —
Total balance of Reserve Funds reclassified to Level 3 ................................. 271,866
Partial distribution from the Reserve Funds .......................................... (50,391)
Loss recognized in the consolidated statement of operations (see Note 6. Investment
Securities) .................................................................. (11,790)
Balance at December 28, 2008 ........................................................ 209,685
Partial distribution from the Reserve Funds .......................................... (186,443)
Balance at December 27, 2009 ........................................................ $ 23,242
See Note 6. Investment Securities for discussion of the Reserve Funds.
NOTE 4. STOCK-BASED COMPENSATION
At December 27, 2009, the Company has two stock-based compensation programs, which are described
below. None of the Company’s stock-based awards are classified as liabilities. The Company did not capitalize
any stock-based compensation cost, and recorded compensation expense as follows:
(in thousands)
Year Ended
December 27,
2009
December 28,
2008
December 30,
2007
Cost of revenues ........................................... $ 779 $ 1,123 $ 1,691
Research and development ................................... 8,665 11,176 16,563
Selling, general and administrative ............................. 11,952 12,539 17,078
Total .................................................... $21,396 $24,838 $35,332
68