Note 9 - Long-Term Investment

12 Months Ended

Mar. 30, 2014

Investments Schedule [Abstract]

Investment [Text Block]

NOTE 9.    LONG-TERM INVESTMENT

In July 2001, Exar became a Limited Partner in the Skypoint Telecom Fund II (US), LP. (“Skypoint Fund”), a venture capital fund focused on investments in communications infrastructure companies. We account for this non-marketable equity investment under the cost method in the other non-current assets in the consolidated balance sheet. The partnership was in the dissolution phase and the fund distributed stock of investee companies to Exar during first fiscal quarter of 2015. We periodically review and determine whether the investment is other-than-temporarily impaired, in which case the investment is written down to its impaired value.

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

	March 30, 2014			March 31, 2013
Beginning balance	$	1,288		$	1,273
Contributions		—			15
Net distributions		(19	)		—
Impairment charges		(323	)		—
Ending balance	$	946		$	1,288

The carrying amount of $0.9 million as of March 30, 2014 reflects the net of the capital contributions, capital distributions and cumulative impairment charges. We have made $4.8 million in capital contributions to Skypoint Fund since we became a limited partner in July 2001. During the first quarter of fiscal year 2013, we contributed $15,000 to the fund. In the third quarter of fiscal year 2014, we received a $19,000 net distribution from one of our portfolio companies. In accordance with the standard related to accounting for cost method investments, we recorded the distribution on the cost basis and reduced the carrying value of our investment in the Skypoint Fund.

Impairment

We evaluate our long-term investment for impairment on an annual basis or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. We conduct our annual impairment analysis in the fourth quarter of each fiscal year by comparing the carrying amount to the fair value of the underlying investments. 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. We analyzed the fair value of the underlying investments of Skypoint Fund and as a result, $0.3 million, $0 and $0 of impairment charges were recorded for fiscal year 2014, 2013 and 2012, respectively.