Creative 2000 Annual Report Download - page 7

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7
CONSOLIDATED BALANCE SHEET DATA (US$’000):
As of June 30
2000 1999 1998(1) 1997 1996
Cash and cash equivalents $ 285,757 $ 318,990 $ 417,262 $ 417,943 $ 196,181
Working capital 331,414 400,998 484,792 371,921 182,910
Total assets 1,176,459 805,689 865,113 814,818 582,043
Long-term debt, net of
current maturities 27,051 28,642 32,277 33,711 6,690
Shareholders’ equity 778,638 560,261 622,314 522,605 267,848
Notes:
(1) Financial data for fiscal 1998 includes the results of Cambridge SoundWorks, Inc. (“Cambridge”), ENSONIQ Corporation
(“Ensoniq”), Silicon Engineering, Inc. (“SEI”), and the NetMedia Division of OPTi Inc. acquired during fiscal 1998,
from the date each acquisition was completed. See Note 15 of “Notes to Consolidated Financial Statements.”
(2) Included in the results of operations are other charges of: $20.0 million in fiscal 2000 relating to the settlement of all
outstanding litigation claims between Aureal Semiconductor, Inc. (“Aureal”) and Creative; $68.6 million in fiscal
1998 relating to a $60.3 million write-off of acquired in-process technology and a charge of $8.3 million for cessation
of certain activities; $18.8 million in fiscal 1996 relating to a $12.0 million charge for closure costs associated with the
termination of CD-ROM drive manufacturing operations, $4.6 million for the settlement of certain litigation and $2.2
million for write-off of intangibles. See Notes 13, 14 and 15 of “Notes to Consolidated Financial Statements.”
(3) As described in Note 9 of “Notes to Consolidated Financial Statements”, Creative was granted a Pioneer Certificate
in 1990 under which income classified as pioneer status income is exempt from tax in Singapore, subject to certain
conditions. Such status had the effect of reducing Creative’s provision for income taxes by approximately $18.3
million, $26.4 million, $43.3 million, $36.4 million, and $13.5 million, or $0.21, $0.29, $0.46, $0.40 and $0.15 per
share, for fiscal 2000, 1999, 1998, 1997, and 1996, respectively. The corporate income tax rate in Singapore, which
would otherwise be applicable for fiscal year 2000 is 25.5% and for 1996 to 1999 would be 26%. Creative’s Pioneer
Certificate expired in March 2000. Creative has applied for a separate and new Pioneer Certificate covering a new
range of products. If Creative is awarded this new Pioneer Certificate, profits from qualified products under the new
Pioneer Certificate will be exempted from tax in Singapore. The Singapore corporate income tax rate of 25.5% will
be applicable to the profits of products excluded from the new Pioneer Certificate. If Creative is unable to obtain this
Pioneer Certificate, the effective tax rate in Singapore would be 25.5%. See MD&A for further discussion.