Adaptec 2011 Annual Report Download - page 39

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Table of Contents
CONTRACTUAL OBLIGATIONS:
At December 31, 2011, we had the following contractual obligations:
Payments due in
(in thousands) Total
Less than
1 year 1-3 years 3-5 years
More
than 5
years
Operating Lease Obligations:
Minimum Rental Payments $ 51,887 $ 8,612 $ 16,330 $ 12,971 $ 13,974
Estimated Operating Cost Payments 15,028 2,918 5,057 4,055 2,998
Senior Convertible Notes(1):
Principal Repayment 68,340 — — — 68,340
Interest Payments 21,527 1,538 3,075 3,075 13,839
Purchase and other Obligations(2) 15,082 13,780 1,302 — —
Total $ 171,864 $ 26,848 $ 25,764 $ 20,101 $ 99,151
(1) See Item 8. Financial Statements and Supplementary Data, the Notes to the Consolidated Financial Statements, Note 10. Senior Convertible Notes for
further details.
(2) Included in the purchase commitments above is $15.1 million in design software tools, which will be paid between 2012 and 2014. This amount
includes $1.3 million classified as long-term obligations in our Consolidated Balance Sheet for the year ended December 31, 2011. 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 $38.9 million at January 9, 2012 for inventory and other expenses that will be received in the
coming 90 days and that will require settlement 30 days thereafter.
We expect to spend approximately $37 million in 2012 for capital expenditures including purchases of intellectual property. Based on our current
operating prospects, we believe that existing sources of liquidity will be sufficient to satisfy our projected operating, working capital, capital expenditure,
purchase obligations and debt obligations through the next twelve months.
In addition to the amounts shown in the table above, we have recorded a $63.7 million liability for unrecognized tax benefits as of December 31, 2011,
and we are uncertain as to if or when such amounts may be realized.
OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2011, we had no material off-balance sheet financing arrangements.
RECENT ACCOUNTING PRONOUNCEMENTS
In May 2011, the Financial Accounting Standards Board ("FASB") issued amendments to disclosure requirements for common fair value measurement.
These amendments, effective for the interim and annual periods beginning on or after December 15, 2011 (early adoption is prohibited), provide common
definitions of fair value and common fair value measurements and disclosure requirements between U.S. GAAP and International Financial Reporting
Standards ("IFRS"). Consequently, the amendments change some fair value measurement principles and disclosure requirements. We will adopt this
amendment effective the first quarter of fiscal 2012. The adoption of this amended accounting guidance is not expected to have a material impact on our
consolidated financial position and results of operations.
38