3Ware 2004 Annual Report Download - page 43

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Restructuring Charges. Restructuring charges for the fiscal year ended March 31, 2003 were $7.3 million,
representing a decrease of 37% from the restructuring charges for the year ended March 31, 2002 of $11.6
million.
Interest and Other Income and Expenses. The following table presents interest and other income and
expenses for the fiscal year ended March 31, 2003 and March 31, 2002 (in thousands):
Fiscal Years Ended March 31,
Increase
(Decrease) Change
2003 2002
Amount
%ofNet
Revenue Amount
%ofNet
Revenue
Interest income, net ........................ $47,719 47.0% $ 47,477 31.1% $ 242 0.5%
Other income (expense), net ................. (11,952) -11.8% (14,592) -9.5% 2,640 -18.1%
Net Interest Income. Net interest income for the year ended March 31, 2003 was consistent with the year
ended March 31, 2002, due to the realization of gains on sales of short-term investments offset by lower interest
income due to lower yields and cash balances in fiscal 2003.
Other Income (Expense). Other income (expense) for the year ended March 31, 2003 primarily consists of
arecognized impairment charge of $13.3 million for certain strategic equity investments and losses of $2.3
million for certain fixed asset disposals, offset by a $3.7 million gain from the sale of real estate. Other income
(expense) for the year ended March 31, 2002 primarily reflects a gain on strategic equity investments of $1.2
million, offset by an impairment charge for strategic equity investments of $15.0 million and certain losses on
fixed asset disposals.
Income Taxes. The difference between our effective tax rate and the federal statutory rate for the year
ended March 31, 2003 resulted from the fact that we established valuation allowances for our deferred tax assets
generated during the fiscal year, as it is more likely than not that our net operating loss and other credit
carryforwards will expire unused. The difference between our effective tax rate and the federal statutory rate for
the year ended March 31, 2002 resulted primarily from the nondeductibility of certain acquisition-related
expenses from our purchase transactions completed during fiscal 2001.
Cumulative Effect of Accounting Change. As a result of our initial goodwill impairment review performed
as of April 1, 2002 as required by the adoption of SFAS 142, we recorded a non-cash charge of $102.2 million.
See “Impact of Adoption of Accounting Standard.”
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