Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Steve Smigie with Raymond James. Sir, you have the floor.
Steve Smigie – Raymond James
Great, thank you very much. I was hoping you could go through the cash balance a little bit more. I think you took a $10 million impairment there, but I know I think the last quarter you indicated maybe there were up to $100 million at risk. So does that mean the other $90 million is safe? And I know you did buybacks. It seems like there's a lot of cash transactions. So if you could sort of walk through that a little bit.
Ilan Daskal
Yes. Hi, Steve. We still have risky investments like MBSs and ABS in our portfolio. We did sell some of those. I can tell you that we have approximately $75 million remaining on the balance sheet of the MBSs, ABSs, and corporate bonds, of which about $61 million are categorized as level 3.
Steve Smigie – Raymond James
Okay. So that's – so basically it's sort of like you had $75 million, you wrote off $10 million, so it would've been $85 million/$15 million. You're sort of in the clear. Then you've got the $61 million there still at risk. Is that sort of –?
Ilan Daskal
No. We did not liquidate $106 million overall. $10 million is an impairment for the remaining – it's already an impairment that we took for the remaining balance.
Steve Smigie – Raymond James
So – and then there's still about $61 million at risk?
Ilan Daskal
There is $61 million in level 3, and there is I would say approximately $75 million overall risk there.
Steve Smigie – Raymond James
Thank you. With regards to the $33 million in savings, is that sort of a conservative estimate? It seems like you guys are being pretty aggressive and trying to do the right thing in a tough time. Is it – are you being a little bit conservative there? It seems like you could potentially get some more savings out of that.
Oleg Khaykin
Well, the $33 million in annualized savings is related to the 850 headcount. Okay? And that's about 18% of our worldwide workforce. Remember, a lot of these positions are in the manufacturing in countries like Mexico. So in some cases, not all of them are high value salary individuals.
- To read the full transcript on Seeking Alpha, click here »
