Creative 2002 Annual Report Download - page 19

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17
Financing Activities:
During fiscal 2002, $40.7 million was used for financing activities compared with $125.4 million in fiscal 2001. Cash used
for financing included $18.0 million to purchase and retire 2.7 million Creative ordinary shares (See Note 6 of “Notes
to Consolidated Financial Statements”), $18.0 million for dividends paid (See Note 7 of “Notes to Consolidated Financial
Statements”), $10.0 million to buyout a subsidiary’s preference shares issued to minority interests (See Note 11 of “Notes
to Consolidated Financial Statements”), and $3.1 million to repay long-term obligations. The cash used in financing
activities was offset partially by cash generated from exercises of stock options to purchase Creative ordinary shares
amounting to $8.2 million.
During fiscal 2001, $125.4 million was used for financing activities compared with $89.1 million in fiscal 2000. Cash used
for financing included $91.0 million to purchase and retire 7.7 million Creative ordinary shares (See Note 6 of “Notes
to Consolidated Financial Statements”), $39.4 million for dividends paid (See Note 7 of “Notes to Consolidated Financial
Statements”), and $4.5 million to repay long-term obligations. The cash used in financing activities was offset partially
by cash generated from exercises of stock options to purchase Creative ordinary shares amounting to $9.3 million.
As of June 30, 2002, in addition to cash reserves and excluding long term loan, Creative had unutilized credit facilities
totaling approximately $108.8 million for overdrafts, guarantees and letters of credit. Creative continually reviews and
evaluates investment opportunities, including potential acquisitions of, and investments in, companies that can provide
Creative with technologies, subsystems or complementary products that can be integrated into or offered with its existing
product range. Creative generally satisfies its working capital needs from internally generated cash flows. Management
believes that Creative has adequate resources to meet its projected working capital and other cash needs for at least the
next twelve months. To date, inflation has not had a significant impact on Creative’s operating results.