3Ware 1999 Annual Report Download - page 40

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Annual future minimum lease payments, including machinery and equipment under capital leases as of March 31, 1999
are as follows:
Year Ending March 31, Operating Leases Capital Leases
2000 $ 3,473 $1,332
2001 3,713 907
2002 4,581 765
2003 4,052 478
2004 1,998 835
Thereafter 6,155 —
Total minimum lease payments $23,972 4,317
Less amount representing interest 679
Present value of remaining minimum capital lease
payments (including current portion of $ 1,075) $3,638
Rent expense (including short-term leases and net of sublease income) for the years ended March 31, 1997, 1998 and 1999
was $1.2 million, $1.2 million and $1.4 million, respectively. Sublease income was $208,000, $119,000 and $0 for the years
ended March 31, 1997, 1998 and 1999, respectively.
8. RELATED PARTY TRANSACTIONS
At March 31, 1998 and 1999, the Company had outstanding notes receivables from officer(s) of $1,065,000, and $915,000,
respectively. These notes bear interest at the rates of 4.62% to 5.76% and are due at the earlier of one to three years from the
date of the note or termination of employment with the Company.
9. EMPLOYEE RETIREMENT PLAN
Effective January 1, 1986, the Company established a 401(k) defined contribution retirement plan (the “Retirement
Plan”) covering all full-time employees with greater than three months of service. The Retirement Plan provides for voluntary
employee contributions from 1% to 20% of annual compensation, subject to a maximum limit allowed by Internal Revenue
Service guidelines. The Company may contribute such amounts as determined by the Board of Directors. Employer contri-
butions vest to participants at a rate of 20% per year of service, provided that after five years of service all past and subsequent
employer contributions are 100% vested. The contributions charged to operations totaled $318,000, $412,000 and $573,000
for the years ended March 31, 1997, 1998 and 1999, respectively.
10. SIGNIFICANT CUSTOMER AND GEOGRAPHIC INFORMATION
During the years ended March 31, 1997, 1998 and 1999, 20%, 21% and 20%, respectively, of net revenues were from Nortel.
In 1998 and 1999, Insight Electronics, the Company’s domestic distributor, accounted for 11% and 13% of net revenues.
Additionally, in 1999, Raytheon Systems Co. accounted for 16% of net revenues. No other customer accounted for more than
10% of revenues in any period.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
38
1999
AMCC