Plantronics 1999 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 1999 Plantronics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 36

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36

page 18 PLANTRONICS ANNUAL REPORT 1999
Notes to consolidated financial statements
note 7. EMPLOYEE BENEFIT PLANS:
Subject to eligibility requirements, substantially all domestic employees participate in quarterly cash, annual
cash and annual deferred profit sharing plans. All other employees, with the exception of direct labor in
Mexico, participate in quarterly cash profit sharing plans. Domestic employees also have the option of
participating in a salary deferral plan qualified under Section 401(k) of the Internal Revenue Code.The
Quarterly Profit Sharing Plan benefits are paid on the basis of profitability and the relationship of each
participating employee’s base salary as a percent of the total base salaries of all participants.The percent
of profit distributed to employees varies by location.The Annual Profit Sharing Plan benefits are based on
10% of the Company’s results of operations before interest and taxes, adjusted for other items, minus
quarterly profit sharing cash distributions and administrative expenses, and are allocated to employees based
on the relationship of each participating employee’s base salary as a percent of all participants’base salaries.
The Annual Profit Sharing Plan distributions include a cash distribution and a tax deferred distribution made
to individual accounts of participants held in trust. The deferred portion is subject to a two year vesting
schedule based on an employee’s date of hire. Total annual and quarterly profit sharing contributions were
$5.5 million, $6.9 million and $9.4 million for fiscal 1997, 1998 and 1999, respectively.
note 8. COMMITMENTS AND CONTINGENCIES:
MINIMUM FUTURE RENTAL PAYMENTS
The Company leases certain equipment and facilities under operating leases expiring in various years through
and after 2004. Minimum future rental payments under non-cancelable operating leases having remaining
terms in excess of one year as of March 31, 1999:
FISCAL YEAR ENDING MARCH 3 1,
(IN THOUSANDS) AMOUNT
2000 $1,234
2001 947
2002 427
2003 412
2004 410
Thereafter 4,510
Total minimum future rental payments $7,940
Rent expense for operating leases was approximately $1.1 million in fiscal 1997, $1.3 million in fiscal 1998
and $1.1 million in fiscal 1999.
EXISTENCE OF RENEWAL OPTIONS
Certain operating leases provide for renewal options for periods from one to three years. In the normal
course of business, operating leases are generally renewed or replaced by other leases.
CLAIMS AND LITIGATION
In the opinion of management, litigation, contingent liabilities and claims against the Company arising in
the ordinary course of business are not expected to involve any judgments or settlements which would be
material to the Company’s consolidated financial condition or results of operations.