Plantronics 2005 Annual Report Download - page 91

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part ii
3. Details of Certain Balance Sheet Accounts
March 31, in thousands 2004 2005
Accounts receivable, net:
Accounts receivable $ 81,907 $110,324
Less: provisions for returns, promotions and rebates (14,027) (18,946)
Less: allowance for doubtful accounts (3,536) (3,820)
$ 64,344 $ 87,558
Inventory, net:
Finished goods $ 23,543 $ 34,998
Work in process 1,349 1,590
Purchased parts 15,870 23,613
$ 40,762 $ 60,201
Property, plant and equipment, net:
Land $ 6,126 $ 6,161
Buildings and improvements (useful life 7-30 years) 21,629 29,752
Machinery and equipment (useful life 2-10 years) 67,669 72,773
Capital in progress 2,778 10,009
98,202 118,695
Less: accumulated depreciation (56,078) (58,950)
$ 42,124 $ 59,745
Accrued liabilities:
Employee benefits $ 16,373 $ 17,477
Accrued advertising and sales and marketing 3,101 2,705
Warranty accrual 6,795 5,970
Accrued losses on hedging instruments 1,937 2,523
Accrued other 8,263 11,100
$ 36,469 $ 39,775
4. Debt
The $2.9 million long-term liability represents the long-term portion of a $6 million international tax
liability, payable in fiscal 2007.
We have an unsecured revolving credit facility with a major bank for $75 million, including a letter of
credit subfacility. The facility and subfacility both expire on July 31, 2006. As of April 30, 2005, we had
no cash borrowings under the revolving credit facility and $1.9 million outstanding under the letter of
credit subfacility. The amounts outstanding under the letter-of-credit subfacility were principally
associated with purchases of inventory. The terms of the credit facility contain covenants that materially
limit our ability to incur debt and pay dividends, among other matters. These covenants may adversely
affect us to the extent we cannot comply with them. We are currently in compliance with the covenants
under this agreement.
AR 2005 ⯗63