Plantronics 2011 Annual Report Download - page 46

FINANCIAL CONDITION
The table below provides selected consolidated cash flow information for the periods indicated:
(in thousands)
Cash provided by operating activities
Capital expenditures and other assets
Cash (used for purchases) provided by maturities and sales of
investments, net
Proceeds received from sale of AEG segment
Cash provided by other investing activities
Cash provided by (used for) investing activities
Repurchase of common stock including taxes paid related to net
share settlement on equity awards
Proceeds from issuance of common stock
Payment of cash dividends
Cash provided by other financing activities
Cash used for financing activities
March 31,
2011
$ 158,232
$(18,567)
(161,935)
1,625
8,966
$(169,911)
$(105,716)
50,109
(9,703)
9,939
$(55,371)
March 31,
2010
$ 143,729
$(6,262)
64,760
9,121
277
$ 67,896
$(49,652)
32,581
(9,781)
5,870
$(20,982)
March 31,
2009
$ 99,150
$(23,682)
(59,896)
—
406
$(83,172)
$(17,817)
6,899
(9,787)
5,790
$(14,915)
Cash Flows from Operating Activities
Cash flows from operating activities in fiscal 2011 were $158.2 million and consisted of our net income of $109.2 million, non-
cash charges of $29.1 million and working capital sources of cash of $19.9 million. Non-cash charges consisted primarily of $16.3
million of depreciation and amortization, $15.9 million of stock-based compensation and a $6.2 million income tax benefit
associated with stock option exercises, offset in part by $5.7 million in excess tax benefits from stock-based compensation expense
and a $5.2 million benefit from deferred income taxes. Working capital sources of cash consisted primarily of a decrease in
inventory of $13.0 million as we continued to improve the management of our inventory levels, increases in accounts payable and
accrued liabilities of $10.2 million and $9.9 million, respectively, due to timing of payments along with a benefit from income
taxes of $4.2 million. Working capital uses of cash consisted primarily of an increase in accounts receivable of $15.1 million due
to higher revenues in the fourth quarter of fiscal 2011 than in the prior year quarter. Inventory turns increased to 5.8 as of March 31,
2011 from 4.2 as of March 31, 2010 as a result of our lower inventory balances on higher cost of revenues in the fourth quarter
of fiscal 2011 compared to the same period in fiscal 2010. Days Sales Outstanding ("DSO") increased to 54 days as of March 31,
2011 from 49 days as of March 31, 2010 as a result of a higher accounts receivable balance due to timing of revenues earned
during the fourth quarter of fiscal 2011 as compared to the fourth quarter of fiscal 2010. While our accounts receivable balance
has increased since March 31, 2010, we have improved the quality of our aging of the balance as of March 31, 2011.
Cash flows from operating activities in fiscal 2010 were $143.7 million and consisted of our net income of $57.4 million, non-
cash charges of $54.3 million and working capital sources of cash of $32.0 million. Non-cash charges consisted primarily of $25.2
million related to the AEG impairment charge on long-lived assets recorded in discontinued operations, $18.1 million of depreciation
and amortization, $14.6 million of stock-based compensation, and non-cash restructuring charges of $6.3 million offset in part by
a $12.5 million benefit from deferred income taxes. Working capital sources of cash consisted primarily of a decrease in inventory
of $27.6 million as we continued to improve the management of our inventory levels, income tax refunds received along with
decreases in other assets. Working capital uses of cash consisted primarily of decreases in accounts payable and accrued liabilities
from reduced spending during the fiscal year as a result of the sale of Altec Lansing in December 2009. Inventory turns, which
is calculated using Cost of revenues from continuing operations only and consolidated inventory balances, increased to 4.2 as of
March 31, 2010 from 3.1 as of March 31, 2009 as a result of our lower inventory balances on higher revenues in the fourth quarter
of fiscal 2010 compared to the same period in fiscal 2009. Accounts receivable remained relatively flat from fiscal 2009 to fiscal
2010; however, DSO, which is calculated using Net revenues from continuing operations only and consolidated accounts receivable
balances, decreased to 49 days as of March 31, 2010 from 59 days as of March 31, 2009 as a result of collections of the accounts
receivable related to our AEG business which were retained by us upon the sale of Altec Lansing on December 1, 2009.
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