Creative 2000 Annual Report Download - page 26

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26
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 – LEASES AND COMMITMENTS
Creative leases the use of land and certain of its facilities and equipment under non-cancelable operating lease arrangements.
The land and facility leases expire at various dates through 2024 and provide for fixed rental rates during the terms of
the leases.
Minimum future lease payments for non-cancelable leases as of June 30, 2000, were as follows (in US$’000):
Operating
Leases
Fiscal years ended June 30,
2001 $ 15,331
2002 10,351
2003 7,516
2004 6,366
2005 4,995
Thereafter 29,780
Total minimum lease payments $ 74,339
Rental expense under all operating leases was $8.4 million, $7.4 million and $10.5 million for fiscal 2000, 1999 and 1998,
respectively.
In fiscal 2000, one of Creative’s subsidiaries had firm commitments for capital expenditure amounting to approximately $17.9
million, which primarily relates to the set up of new manufacturing facilities in Malaysia.
During the year, guarantees of $5.0 million were given to third parties in respect of trade balances of an investee company
and $0.4 million given to foreign revenue authorities in relation to payment of customs duty.