To: graphicsguru who wrote (238282 ) 8/7/2007 11:08:01 AM From: dougSF30 Read Replies (1) | Respond to It is on the books at $12/sh, apparently.In late July 2007 the Company sold 12,506,694 shares of Spansion’s Class A common stock and received approximately $144 million in net proceeds from the sales. As a result of these sales, the Company’s ownership interest in Spansion was further reduced to 14,037,910 shares, or approximately 10.4%, of Spansion’s outstanding common stock. The Company expects to recognize a loss related to these sales. As of June 30, 2007, the carrying net book value of the Company’s net equity investment in Spansion, which includes the Company’s proportionate share of Spansion’s accumulated other comprehensive income (loss), was approximately $319 million. The fair value of this investment was approximately $295 million based on the closing market price of Spansion’s common stock on June 29, 2007, the last trading day of the quarter. The fact that the fair value is lower than the carrying net book value may indicate a loss in the value of the investment that is other than temporary. The Company reviewed Spansion’s latest financial performance, its market environment, its future product roadmaps, and research analysts’ opinions and target price of its stock. Based on the review performed by management, the Company believes that the decline in the fair value of its Spansion investment is not other than temporary, and therefore, the Company does not believe that an impairment charge for this investment is necessary as of June 30, 2007.To the extent that the Company concludes the decline in the fair value of Spansion’s investment is other than temporary in the future and an impairment charge is required, such charge could have a material effect on the Company’s results of operations in the period in which this conclusion is made.
