available-for-sale investment to determine whether declines in market value below cost are other-than-temporary. The Company makes such a determination based upon criteria that include the extent to which cost exceeds market value, the duration of the market decline, and the financial condition of and specific prospects of the issuer. In addition, the Company evaluates its intent to retain the investment over a period of time which would be sufficient to allow for any recovery in market value. As of March 31, 2003 and 2002, the market value of Pioneer- Standard’s investment in Eurodis was $2.4 million and $12.6 million, respectively, as compared with a cost basis of approximately $17.0 million. In 2002, the Company determined that the market value decline was temporary following the Company’s policy as set forth above and in Note 1 to the Consolidated Financial Statements, and as such, changes in market value were included in ‘‘Accumulated other comprehensive loss’’ in the Shareholders’ Equity section of the accompanying March 31, 2002 Consolidated Balance Sheet. In 2003, as a result of the Company’s sale of IED and subsequent change in business focus, Pioneer-Standard’s intent concerning this investment changed. The investment no longer holds strategic value and it is not the Company’s intent to retain the investment for a long period of time. Therefore, the decline in market value was deemed to be other than temporary, and the Company recognized a $14.6 million impairment charge to reduce the carrying value to market value. This non-cash charge is included as ‘‘Investment impairment’’ in ‘‘Other (Income) Expense’’ in the accompanying Consolidated State- ment of Operations for the year ended March 31, 2003. In May 2000, the Company acquired an equity interest in Magirus, a privately-owned European enterprise computer systems distributor headquartered in Stuttgart, Germany. The purchase price was $9.6 million and the investment is accounted for under the equity method. In January 2002, the Company invested an additional $1.0 million in Magirus to maintain its 20% equity interest. 6 The Company leases certain office and warehouse facilities and equipment under non-cancelable operating leases which expire at various dates through 2016. Certain facilities and equipment leases contain renewal options for periods up to 10 years. Future minimum lease payments at March 31, 2003 under all non-cancelable operating leases, exclusive of real estate taxes, insurance and leases related to facilities closed as a result of the divestiture and restructuring of the Company are: $4.9 million in 2004; $4.3 million in 2005; $3.7 million in 2006; $2.5 million in 2007; $2.1 million in 2008; and $14.0 million thereafter. Minimum rental commitments for leases related to facilities closed as a result of the divestiture and restructuring are $3.6 million in 2004; $2.8 million in 2005; $1.6 million in 2006; $1.1 million in 2007; $0.4 million in 2008; and $9.0 million thereafter. Rental expense for all non-cancelable operating leases amounted to $11.8 million, $11.5 million and $10.8 million for Fiscal 2003, 2002 and 2001, respectively. LEASE COMMITMENTS 41