a balance of $31 million remains in accrued restructuring costs of which $10 million remains for severance payments to employees who have already been terminated as of September 25, 1998, or who will be terminated in the first quarter of fiscal 1999, and $21 million for payments over the next three years on leases and contracts that have already been terminated. 

TERMINATION OF LICENSE AGREEMENT 

In August 1997, the Company agreed to acquire certain assets of Power Computing Corporation (PCC), a licensed distributor of the Mac OS operating system, including PCC's customer database and its license to distribute the Mac OS. The agreement with PCC also included a release of claims between the parties. On January 28, 1998, the Company completed its acquisition of those certain assets from PCC. The total purchase price was approximately $110 million, of which $75 million was expensed in the fourth quarter of 1997 as "termination of license agreement" and $35 million was recorded as goodwill in the second quarter of 1998. The goodwill will be amortized over three years. 

INTEREST AND OTHER INCOME (EXPENSE), NET 

Total interest and other income (expense), net, increased $43 million or 172% to a total of $68 million in 1998 compared to $25 million in 1997. The primary cause of this increase was gains recognized on the sale of an equity investment. As of September 26, 1997, the Company owned 42.3% of the outstanding stock of ARM Holdings plc (ARM), a then privately held company in the United Kingdom involved in the design of high performance microprocessors and related technology. The Company has accounted for this investment using the equity method through September 25, 1998. On April 17, 1998, ARM completed an initial public offering of its stock on the London Stock Exchange and the NASDAQ National Market. The Company sold 18.9% of its shares in the offering for a gain before foreign taxes of approximately $24 million, which was recognized as other income. Foreign tax recognized on this gain was approximately $7 million. At the time an equity method investee sells existing or newly issued common stock to unrelated parties in excess of its book value, the equity method requires that the net book value of the investment be adjusted to reflect the investor's share of the change in the investee's shareholders' equity resulting from the sale. Consequently, the Company also recognized in the third quarter of 1998 other income of approximately $16 million to reflect its remaining 25.9% ownership interest in the increased net book value of ARM following its initial public offering. As of September 25, 1998, the carrying value of the Company's investment in ARM was approximately $22 million. The fair value of this investment as of September 25, 1998, based on listed market quotes was approximately $186 million. 

On October 14, 1998, the Company sold an additional 2.9 million shares of ARM stock for net proceeds of approximately $37.5 million and a gain before foreign taxes of approximately $32 million, which will be recognized as other income by the Company in the first quarter of fiscal 1999. As a result of this sale, the Company's ownership interest