Plantronics 2005 Annual Report Download - page 100

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Fiscal Year Ending March 31,
Estimated amortization expense
2006 $ 757
2007 $ 747
2008 $ 717
2009 $ 563
2010 $ 103
Thereafter $ 61
Total estimated amortization expense $2,948
The following table summarizes the changes in the carrying amount of goodwill during fiscal 2004 and
2005 (in thousands):
2004 2005
Balance, April 1 $9,386 $9,386
Carrying value adjustments — —
Balance, March 31 $9,386 $9,386
12. Cash Dividends
In the second quarter of fiscal 2005, the Company’s Board of Directors initiated a quarterly cash dividend
of $0.05 per share. The Company declared a $0.05 per share cash dividend on July 20, 2004, October 19,
2004 and January 18, 2005 which were paid in September 2004, December 2004 and March 2005,
respectively, in the aggregate amount of $7.3 million. On April 26, 2005, we announced that our Board
of Directors had declared a cash dividend of $0.05 per share of our common stock, payable on June 10,
2005 to shareholders of record on May 10, 2005. The actual declaration of future dividends, and the
establishment of record and payment dates, is subject to final determination by the Audit Committee of
the Board of Directors of Plantronics each quarter after its review of our financial performance.
Under our current credit facility agreement, we have the ability to declare dividends so long as the
aggregate amount of all such dividends declared or paid and common stock repurchased or redeemed in
any four consecutive fiscal quarter periods shall not exceed 50% of the amount of cumulative consolidated
net income in the eight consecutive fiscal quarter periods ending with the fiscal quarter immediately
preceding the date as of which the applicable distributions occurred. We are currently in compliance with
the covenants and the dividend provision under this agreement.
13. Foreign Currency Hedging
During the first quarter of fiscal year 2003, we adopted SFAS No. 133, ‘‘Accounting for Derivative
Instruments and Hedging Activities,’’ as amended by SFAS No. 138, ‘‘Accounting for Certain Derivative
Instruments and Certain Hedging Activities,’’ which did not have a material impact on our financial
position.
Beginning in the first quarter of fiscal year 2003, and during fiscal 2004 and 2005, we entered into foreign
currency forward-exchange contracts, which typically mature in one month, to hedge the exposure to
foreign currency fluctuations of expected foreign currency-denominated receivables, payables and cash
balances. We record on the balance sheet at each reporting period the fair value of our forward-exchange
72 ⯗Plantronics