PDF - Somero Enterprises

Section 4Financial Statements: Somero Enterprises Group7 Capital Lease Obligations continuedFuture Payments The future payments by year under the Somero Business capital lease obligation were as follows at 10 August 2005:2005 532006 822007 6572008 –2009 –Thereafter –Net minimum lease payments 792Less: Amount representing interest (135)Present value of net minimum lease payments 657US$ 000Interest Interest paid during the years ended 31 December 2003 and 2004, the six months ended 30 June 2005 (unaudited), and the periodfrom 1 January 2005 through 10 August 2005, was approximately US$78,000, US$80,000, US$40,000 (unaudited), and US$53,000,respectively, related to the capital lease obligation.8 Retirement ProgrammeThe Somero Business participates in a savings and retirement plan for its employees, which is sponsored by Dover and is intended toqualify under Section 401(k) of the Internal Revenue Code (“IRC”). This plan provides for voluntary contributions by participating employees,not to exceed maximum limits set forth by the IRC. The Somero Business matches 50% of the employee’s contribution, up to the first 4%of the employee’s salary. The Somero Business match vests after one year of service with the business. The Somero Business contributedapproximately US$70,000, US$68,000, US$51,000 (unaudited), and US$59,000 to the retirement plan during the years ended 31 December2003 and 2004, the six months ended 30 June 2005 and the period from 1 January 2005 through 10 August 2005, respectively.9 Operating LeasesThe Somero Business leases property, vehicles, and office equipment under leases accounted for as operating leases. Future minimumpayments by year under non-cancellable operating leases with initial terms in excess of one year were as follows at 10 August 2005 :2005 382006 1062007 982008 672009 59Thereafter 14Total 382US$ 000Total rent expense was approximately US$74,000, US$80,000, US$56,000 and US$75,000 during the years ended 31 December 2003 and2004, the six months ended 30 June 2005 and the period from 1 January 2005 through 10 August 2005, respectively.55Somero Enterprises, Inc.Annual Report and Accounts 2006