Creative 2000 Annual Report Download - page 27

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27
NOTE 5 – COMPREHENSIVE INCOME
Effective July 1, 1998, Creative adopted Statement of Financial Accounting Standards No. 130 (SFAS 130), “Reporting
Comprehensive Income.” SFAS 130 establishes standards for the reporting of comprehensive income and its components
which, as defined, includes all changes in equity (net assets) during a period from non-owner sources. The components of
total comprehensive income are as follows (in US$’000):
Years ended June 30
2000 1999 1998
Net Income $ 161,012 $ 115,082 $ 134,774
Unrealized holding gains/(losses) on available-for-sale
securities during the period 158,543 1,686 (56,624)
Total comprehensive income $ 319,555 $ 116,768 $ 78,150
NOTE 6 – SHARE REPURCHASES
In November 1998, Creative obtained shareholders’ approval to repurchase up to 9.3 million of its ordinary shares for
retirement. On December 30, 1998, at the Annual General Meeting (“AGM”), the shareholders voted to extend the
repurchase mandate by allowing Creative to purchase up to 10% of the Company’s issued share capital as of the date of the
AGM. On June 11, 1999, at an Extraordinary General Meeting (“EGM”), the shareholders approved a new share repurchase
mandate to overcome a prior limitation that was found to exist under Singapore law on the number of shares Creative could
repurchase. The June 11, 1999 mandate allows Creative to repurchase the full amount of shares that were authorized for
repurchase under the December 30, 1998 share repurchase mandate approved at the AGM and that were outstanding as of
June 10, 1999. At the 1999 Annual General Meeting held on November 9, 1999, the shareholders approved the extension
of the share repurchase mandate allowing Creative to buy up to 10% of the issued share capital of Creative as at the date
of the AGM. This authority to repurchase shares shall continue in force unless revoked or revised by the shareholders in
a general meeting, or until the date that the next AGM of Creative is held or is required to be held, whichever is the earlier.
Details of Share repurchases by Creative during the fiscal years since the commencement of the program on November 6,
1998 are set out below:
Years ended June 30, Number of Shares Repurchased Average Price
(in millions)
1999 10.0 $ 14
2000 5.9 $ 17
Total 15.9 $ 15
In accordance with Singapore statutes, such repurchases are recorded as a reduction in retained earnings.