Plantronics 2011 Annual Report Download - page 47

Cash flows from operating activities in fiscal 2009 were $99.2 million and consisted of our net loss of $64.9 million offset by non-
cash charges of $147.6 million and working capital sources of cash of $16.4 million. Non-cash charges consisted primarily of
$117.5 million related to the AEG impairment of goodwill and long-lived assets recorded in discontinued operations, $25.8 million
of depreciation and amortization, $15.7 million of stock-based compensation, $11.4 million of provisions for excess and obsolete
inventory, and $2.7 million of provisions for sales allowances and doubtful accounts offset in part by a $26.9 million benefit from
deferred income taxes. Working capital sources of cash consisted primarily of a decrease in accounts receivable of $50.7 million
due to cash collections and lower revenues. DSO, which is calculated using Net revenues from continuing operations only and
consolidated accounts receivable balances, as of March 31, 2009 was 59 days compared to 64 as of March 31, 2008. Working
capital uses of cash consisted primarily of decreases in accounts payable and accrued liabilities as we reduced our spending during
the fiscal year, decreases in gross inventory as we improved management of our inventory levels, and increases in other
assets. Inventory turns, which is calculated using Cost of revenues from continuing operations only and consolidated inventory
balances, decreased slightly to 3.1 as of March 31, 2009 from 3.2 as of March 31, 2008 as a result of our higher inventory balances
and lower revenues.
We expect that cash provided by operating activities may fluctuate in future periods as a result of a number of factors including
fluctuations in our net revenues and operating results, collection of accounts receivable, changes to inventory levels and timing
of payments.
Cash Flows from Investing Activities
In fiscal 2011, net cash flows used for investing activities were $169.9 million, consisting primarily of $256.3 million and $48.9
million for the purchase of short-term and long-term investments, respectively, along with capital expenditures of $18.6 million.
These uses of cash were offset in part by net proceeds of $142.5 million from sales and maturities of short-term investments, $9.1
million from the sale of our Suzhou facility classified as Assets held for sale and $1.6 million in net proceeds from release of the
escrow from the sale of Altec Lansing, our AEG segment. Capital expenditures during fiscal 2011 related primarily to building
and leasehold improvements including the installation of an expanded solar energy system in our headquarters in Santa Cruz,
California, tooling and various IT projects and equipment.
In fiscal 2010, net cash flows provided from investing activities were $67.9 million, consisting primarily of net maturities and
sales of short-term investments of $64.0 million and $9.1 million in net proceeds from the sale of Altec Lansing offset in part by
capital expenditures of $6.3 million. Capital expenditures during fiscal 2010 primarily related to tooling and various IT projects.
In fiscal 2009, net cash flows used for investing activities were $83.2 million, consisting primarily of capital expenditures of $23.7
million and net purchases of short-term investments of $59.9 million. Significant capital expenditures during fiscal 2009 primarily
related to $4.3 million in costs to complete construction of the new corporate data center in our Santa Cruz, California headquarters,
$3.2 million for the construction of our engineering center in Santa Cruz, California and $2.3 million for various IT projects.
We anticipate our capital expenditures in fiscal 2012 to be in the range of $18.0 million to $20.0 million consisting primarily of
building and leasehold improvements both in our U.S. and Europe offices, IT related expenditures and tooling for new products.
We will continue to evaluate new business opportunities and new markets; as a result, future growth within the existing business
or new opportunities and markets may dictate the need for additional facilities and capital expenditures to support that growth.
Cash Flows from Financing Activities
Net cash flows used for financing activities in fiscal 2011 were $55.4 million and consisted of $105.7 million used for the repurchase
of common stock and $9.7 million in dividend payments, which were partially offset by $50.1 million in proceeds from the exercise
of employee stock options, $4.2 million in proceeds from the sale of treasury stock issued for purchases under our Employee Stock
Purchase Plan (“ESPP”) and $5.7 million of excess tax benefits from stock-based compensation.
Net cash flows used for financing activities in fiscal 2010 were $21.0 million and consisted of $49.7 million related to repurchases
of common stock and $9.8 million in dividend payments, which were partially offset by $32.6 million in proceeds from the exercise
of employee stock options, $3.6 million in proceeds from the sale of treasury stock issued for purchases under our ESPP and $2.2
million of excess tax benefits from stock-based compensation.
Net cash flows used for financing activities in fiscal 2009 were $14.9 million and consisted of $17.8 million related to repurchases
of common stock and $9.8 million in dividend payments, which were partially offset by $6.9 million in proceeds from the exercise
of employee stock options and $5.2 million in proceeds from the sale of treasury stock issued for purchases under our ESPP.
Table of Contents
38