Adaptec 2010 Annual Report Download - page 72

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2006
In 2006, the Company closed its Ottawa development site and reduced operations at its Portland development site to reduce
operating expenses resulting in the elimination of approximately 45 positions and a reduction in office space occupied. The charges
relating to these actions were $3.0 million in one-time termination benefit and relocation costs, $2.3 million for excess facilities, and
$0.3 million for other related costs.
Changes in the accrual in the table above have been as expected and immaterial.
2005
In 2005, the Company initiated various restructuring activities aimed at streamlining production and reducing operating
expenses. During the year, we terminated 113 employees across all business functions, and reduced facilities occupied. As a result,
we recorded charges of $9.3 million for termination benefits, $5.3 million for excess facilities and $0.9 million for the write-down of
equipment and software assets whose value was impaired as a result of these plans.
The increase in the accruals in the years presented above was due to not realizing the originally expected amounts of sublease
income.
2001
In 2001, the Company implemented restructuring plans aimed at focusing development efforts on key projects and reducing
operating costs in response to the severe and prolonged economic downturn in the semiconductor industry. These plans included the
termination of 564 employees, the consolidation of excess facilities and curtailment of certain research and development activities.
The Company initially recorded restructuring charges totaling $195.2 million, $16.2 million related to asset write-downs. The
majority of the restructuring charge related to lease commitments on its office space in Santa Clara, CA, which was the Company’s
headquarters until January, 2011. At December 26, 2010, the Company has paid all but $0.2 million for the remaining excess facilities
commitments under this Plan. This commitment will end in 2011.
NOTE 7. INVESTMENT SECURITIES
At December 26, 2010, the Company had investments of $531.4 million (December 27, 2009—$423.6 million) comprised of
money market funds, United States Treasury and Government Agency notes, Federal Deposit Insurance Corporation (“FDIC”)-
insured corporate notes, United States State and Municipal Securities, foreign government and agency notes, and corporate bonds and
notes.
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