3Ware 2005 Annual Report Download - page 90

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
9. Commitments
The Company leases certain of its facilities under long-term operating leases, which expire at various dates
through fiscal 2013. The lease agreements frequently include renewal or other provisions, which require the
Company to pay taxes, insurance, maintenance costs or defined rent increases. The Company also leases certain
engineering design software tools under non-cancelable operating leases expiring through fiscal 2005.
Annual future minimum payments as of March 31, 2005, are as follows (in thousands):
Fiscal Years Ending March 31,
Operating
Leases
Capital
Leases
2006 ................................................................... $11,941 $ 34
2007 ................................................................... 4,425 —
2008 ................................................................... 2,899 —
2009 ................................................................... 1,972 —
2010 ................................................................... 1,895 —
Thereafter .............................................................. 1,553 —
Total minimum lease payments ............................................. $24,685 34
Less amount representing interest ............................................ —
Present value of remaining minimum capital lease payments – current portion ........ $ 34
Rent expense (including short-term leases and net of sublease income) for the years ended March 31, 2005,
2004, and 2003 was $5.7 million, $5.7 million, and $7.8 million, respectively.
10. Employee Retirement Plan
Effective January 1, 1986, the Company established a 401(k) defined contribution retirement plan
(“Retirement Plan”) covering all full-time employees. 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 contributions vest to participants at a rate of 33% per year of service. The total contributions under the
plan charged to operations totaled $1.2 million, $1.0 million, and $1.4 million for the years ended March 31,
2005, 2004 and 2003, respectively.
11. Significant Customer and Geographic Information
Based on direct shipments, net revenues to customers that exceeded 10% of total net revenues in any of the
three years ended March 31, 2005 were as follows:
2005 2004 2003
Harris Corporation .................................................... * * 18%
Sanmina—SCI ....................................................... * 11% *
Insight Electronics .................................................... 14% 14% *
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