3Ware 2001 Annual Report Download - page 40

3 8
N O T E S T O C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S
At March 31, 2001, the Company has federal and state research and development tax credit carryforwards of approx-
imately $22.0 million and $10.0 million, respectively, which will begin to expire in 2019 unless previously utilized.
The Company also has federal and state net operating loss carryforwards of approximately $352.0 million and
$95.0 million, respectively, which will begin to expire in 2012 and 2004, respectively.
7.C O M M I T M E N T S
The Company leases certain of its facilities under long-term operating leases, which expire at various dates through
2010. The lease agreements frequently include renewal provisions, which require the Company to pay taxes, insur-
ance and maintenance costs and contain escalation clauses based upon increases in the Consumer Price Index
or defined rent increases. The Company also leases certain engineering design software tools under noncancellable
operating leases expiring through 2003.
Annual future minimum lease payments, including machinery and equipment under capital leases as of Ma rch 31, 2001
a r e as follows (in thousands):
Year Ending March 31, Operating Leases Capital Leases
2002 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,285 $ 691
2003 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,144 449
2004 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,159 679
2005 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,880 —
2006 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,943 —
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,979 —
Total minimum lease payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $65,390 1,819
Less amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Present value of remaining minimum capital lease payments
(including current portion of $596) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,646
Rent expense (including short-term leases and net of sublease income) for the years ended March 31, 1999, 2000
and 2001 was $1.4 million, $1.6 million and $3.7 million, respectively.
8.E M P L O Y E E R E T I R E M E N T P L A N
Ef f e c t i ve Ja n u a ry 1, 1986, the Company established a 401(k) defined contribution re t i r ement plan (the “Re t i rement Pl a n” )
c overing all full-time employees with greater than three months of service. The Re t i r ement Plan provides for vo l u n t a r y
e m p l o yee contributions from 1% to 20% of annual compensation, subject to a maximum limit allowed by Internal
Re venue Se rvice guidelines. The Company may contribute such amounts as determined by the Board of Di re c t o r s .
Em p l o yer contributions 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 Company has an additional plan that it sponsors. T h i s
plan was assumed through the acquisition of MMC. The total contributions under both plans charged to operations totaled
$573,000, $677,000 and $1.2 million for the years ended Ma r ch 31, 1999, 2000 and 2001, re s p e c t i ve l y.