Plantronics 2011 Annual Report Download - page 43

Gain from Litigation Settlement
(in thousands)
Gain from Litigation
Settlement
% of total consolidated
net revenues
Fiscal Year Ended
March 31,
2011
$ (5,100)
(0.7)%
March 31,
2010
$ —
—
Increase
(Decrease)
$(5,100)
(0.7)
100.0%
ppt.
Fiscal Year Ended
March 31,
2010
$ —
—
March 31,
2009
$ —
—
Increase
(Decrease)
$ —
—
—
ppt.
During the fourth quarter of fiscal 2011, we entered into a binding settlement agreement to dismiss litigation involving the alleged
theft of our trade secrets by a competitor in mobile headsets, and in the same quarter, pursuant to the settlement agreement, we
received a payment of $5.1 million in exchange for a full release and settlement of the claims.
Restructuring and Other Related Charges
(in thousands)
Restructuring and other
related charges
% of total consolidated
net revenues
Fiscal Year Ended
March 31,
2011
$ (428)
(0.1)%
March 31,
2010
$ 1,867
0.3%
Increase (Decrease)
$(2,295)
(0.4)
(122.9)%
ppt.
Fiscal Year Ended
March 31,
2010
$ 1,867
0.3%
March 31,
2009
$ 10,952
1.6%
Increase
(Decrease)
$(9,085)
(1.3)
(83.0)%
ppt.
We announced various restructuring activities in fiscal 2009 in an effort to reduce our cost structure in light of the expected impact
of the global economic recession on our business and revenues. These actions consisted of reductions in force throughout all of
our geographies along with a plan to close our manufacturing operations in our Suzhou, China facility due to the decision to
outsource the manufacturing of our Bluetooth products to a third party supplier in China. We exited the manufacturing portion of
the facility in July 2009 at which time the remaining assets were classified as Assets held for sale on the Consolidated balance
sheet. Approximately 1,500 employees from functions across the Company were notified of their termination under these actions
and substantially all of these employees have been terminated as of March 31, 2011.
As a result of these restructuring actions, we recorded approximately $1.9 million and $11.0 million of Restructuring and other
related charges during the years ended March 31, 2010 and 2009, respectively, consisting of severance and benefits along with
facilities and equipment charges. In addition, during the year ended March 31, 2010, we recorded non-cash charges of $5.2 million
for accelerated depreciation related to the building and equipment associated with manufacturing operations which is included in
Cost of revenues. There were no charges during the year ended March 31, 2011; however, in the third quarter of fiscal 2011, we
completed the sale of our Suzhou facility, which was classified as Assets held for sale, resulting in an immaterial net gain which
was recorded in Restructuring and other related charges.
As of March 31, 2011, we have recorded a total of $17.7 million of costs related to these actions, which includes $11.2 million of
severance and benefits and $6.9 million in non-cash charges related to accelerated depreciation charges, the write-off of facilities
and equipment and impairment loss on Assets held for sale, offset in part by a $0.4 million gain on the final sale of our Suzhou
facility. All of these costs and the gain on sale were recorded in Restructuring and other related charges, with the exception of
$5.2 million of accelerated depreciation which was recorded in Cost of revenues. All the costs related to these actions have been
paid as of March 31, 2011.
Operating Income
(in thousands)
Operating income
% of total consolidated
net revenues
Fiscal Year Ended
March 31,
2011
$140,712
20.6%
March 31,
2010
$ 97,635
15.9%
Increase
(Decrease)
$ 43,077
4.7
44.1%
ppt.
Fiscal Year Ended
March 31,
2010
$ 97,635
15.9%
March 31,
2009
$ 61,461
9.1%
Increase
(Decrease)
$ 36,174
6.8
58.9%
ppt.
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