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Item 10. Additional Information (cont.)

   
 

Information Reporting and Back up Withholding

    Dividend payments and proceeds from the sale or disposal of ordinary shares may be subject to information reporting to the Internal Revenue Service and possible U.S. federal backup withholding at the rate of 30%. Backup withholding will not apply, however, to a holder who furnishes a correct taxpayer identification number or certificate of foreign status and makes any other required certification or who is otherwise exempt from backup withholding (for example, a corporation). Any U.S. Shareholder who is required to establish exempt status generally must file IRS Form W-9 ("Request for Taxpayer Identification Number and Certification"). Finalized Treasury Regulations, which are applicable to payments made after December 31, 2000, have generally expanded the circumstances under which information reporting and backup withholding may apply. Amounts withheld as backup withholding may be credited against a U.S. Shareholder's federal income tax liability. A U.S. Shareholder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the Internal Revenue Service and furnishing any required information.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    Market risks relating to the Company's operations result primarily from weak economic conditions in the markets in which the Company sells its products and from changes in exchange rates or in interest rates. Other than forward exchange currency contracts and forward rate agreements described below which are used for hedging cash flow in transactions not denominated in U.S. dollars, the Company does not use derivative financial instruments in its investment portfolio.

    The table below presents principal amounts and related weighted average rates by date of maturity for the Company's investments in cash and cash equivalents, deposits and marketable securities held as of December 31, 2001

(In thousands, except percentages)

    Maturity Total
Book
Value
Fair Value
at Dec. 31,
2001
    2002 2003 2004 2005 2006    
Government and corporate securities -
Floating interest rate**
Book
Value
$40,794 $18,993 $5,699 $3,393 $41,699 $110,578 $112,855
WAIR* 2.19% 3.15% 2.85% 3.66% 5.54% 3.70%  
Government and securities - Fixed interest rate Book
Value
$114,842 $82,441 $90,852 $158,959 $127,689 $574,783 $583,581
WAIR* 4.81% 5.94% 5.98% 6.89% 5.36% 5.49%  
Money market fund Book Value $219,068 - - - - $219,068 $219,068
WAIR* 1.97% - - - - 1.97%  
Deposits Book
Value
$112,253 $8,635 - $3,000 - $123,888 $123,306
WAIR* 3.74% 3.40% - 7.00% - 3.80%  
Total Book
Value
$486,957 $110,069 $96,551 $165,352 $169,388 $1,028,317 $1,038,810
WAIR* 3.06% 5.25% 5.79% 6.82% 5.41% 4.55%  

* Weighted Average Interest Rate

** Based upon LIBOR as of December 31, 2001