Creative 2005 Annual Report Download - page 18

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18
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
The following table presents the contractual obligations and commercial commitments of Creative as of June 30, 2005:
Payments Due by Period (US$’000)
Less than 1 to 3 4 to 5 After 5
Contractual Obligations Total 1 year years years years
Long Term Debt $ 198,111 $ 3,556 $ 7,111 $ 182,111 $ 5,333
Capital Lease Obligations 4,715 3,827 888 – –
Operating Leases 27,824 8,648 5,385 1,909 11,882
Unconditional Purchase Obligations 44,939 44,939 – – –
Other Obligations 5,481 5,003 478 – –
Total Contractual Cash Obligations
$ 281,070 $ 65,973 $ 13,862 $ 184,020 $ 17,215
Unconditional purchase obligations are defined as contractual obligations for purchase of goods or services, which are
enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities
to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. The expected
timing of payment of the obligations set forth above is estimated based on current information. Timing of payments and
actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon
amounts for some obligations.
As of June 30, 2005, Creative has utilized approximately $2.0 million under guarantees and letters of credit.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Please refer to Note 1 of “Notes to Consolidated Financial Statements” for the discussion of recently issued accounting
pronouncements.
Current and Expected Liquidity (Cont’d)
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.