Note 7 - Long-term Investments

6 Months Ended

Sep. 27, 2015

Investments Schedule [Abstract]

Investment [Text Block]

NOTE 7. LONG-TERM INVESTMENTS

In July 2001, Exar became a Limited Partner in the Skypoint Fund, a venture capital fund focused on investments in communications infrastructure companies. We accounted for this non-marketable equity investment under the cost method in the other non-current assets line item on the consolidated balance sheet. During the term of the fund, we made $4.8 million in capital contributions to Skypoint Fund since we became a limited partner in July 2001. The partnership was dissolved and the fund distributed stock of investee companies to Exar during first quarter of fiscal year 2015.

We regularly review and determine whether each investment asset is other-than-temporarily impaired, in which case the investment is written down to its impaired value.

As of the date indicated below, our long-term investments balance, which is included in the Other non-current assets line item on the condensed consolidated balance sheets, consisted of the following (in thousands):

	September 27, 2015
Beginning balance as of March 29, 2015	$	394
Net distributions		—
Impairment charges		(5	)
Ending balance	$	389

Impairment

We evaluate each of our long-term investments for impairment on an annual basis or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. If the carrying amount exceeds its fair value, the long term-investment is considered impaired and a second step is performed to measure the amount of impairment loss.

During the first quarter of fiscal year 2015, we received approximately 93,000 common shares of CounterPath through the dissolution of Skypoint Fund in which we were a limited partner since 2001. CounterPath was one of the investee companies of Skypoint Fund. We estimated the fair value using the market value of CounterPath’s common shares on the Nasdaq Capital Market. We also received common shares from the other two private investee companies of Skypoint Fund through the dissolution. We regularly assess the fair value of the common shares received from these three companies and recorded $5,000 of impairment charges during the three and six months ended September 27, 2015, respectively. We recorded $7,000 of impairment charges during the three and six months ended September 28, 2014, respectively.