Creative 2007 Annual Report Download - page 5

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5
CONSOLIDATED BALANCE SHEET DATA (US$’000):
As of June 30
2007 2006 2005 2004 2003
Cash and cash equivalents $ 250,480 $ 213,995 $ 187,246 $ 211,077 $ 232,053
Working capital 351,260 405,907 506,527 297,502 209,389
Total assets 723,033 830,613 1,077,474 940,848 646,843
Long-term debt, net of
current maturities 129,131 206,593 209,455 35,614 39,027
Shareholders’ equity 408,570 393,153 581,132 691,497 428,837
Notes:
(1) Other charges of $5.9 million in the results of operations in fiscal year 2006 comprised a $4.9 million restructuring charge
relating to 3Dlabs Inc., Ltd (“3Dlabs”) and $1.0 million in employee separation costs under a worldwide workforce reduction
exercise.
(2) Other income of $114.6 million in fiscal year 2007 included a $100.0 million paid-up license by Apple Inc. for use of the
Creative ZEN Patent in its products.
(3) As described in Note 10 of “Notes to Consolidated Financial Statements,” Creative was granted a Pioneer Certificate under
the International Headquarters Award that will expire in March 2010. Under the Pioneer Certificate, profits arising from
qualifying activities will be exempted from income tax in Singapore, subject to certain conditions. As a result of obtaining
this Pioneer Certificate, income taxes in fiscal year 2006 and 2004 includes a $10.0 million and $12.3 million reversal of
income taxes. The reversal was related to corporate taxes provided for in full for profits arising from qualifying activities from
the commencement date of the Pioneer Certificate until the second quarter of fiscal year 2004, based on the standard tax
rates of 24.5% for fiscal year 2001 and 22% for fiscal years 2002 and 2003 and 20% for fiscal year 2004. These standard
corporate income tax rates continue to be applicable to profits arising from activities excluded from the Pioneer Certificate. See
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) for further discussion.