Plantronics 2015 Annual Report Download - page 43

We and our subsidiaries are subject to taxation in various foreign and state jurisdictions, including the U.S. We are currently under
examination by the Internal Revenue Service for our 2010 tax year. The California Franchise Tax Board completed its examination
of our 2007 and 2008 tax years. We received a Notice of Proposed Assessment and responded by filing a protest letter. The amount
of the proposed assessment is not material. Foreign income tax matters for material tax jurisdictions have been concluded for tax
years prior to fiscal year 2011, except the United Kingdom for which tax matters have been concluded for tax years prior to fiscal
year 2014.
FINANCIAL CONDITION
The following table summarizes our cash flows from operating, investing, and financing activities for each of the past three
fiscal years:
(in thousands) Fiscal Year Ended March 31, Change
Total cash provided by (used for): 2015 2014 2013
2015 vs.
2014
2014 vs.
2013
Operating activities $ 154,438 $ 141,491 $ 125,501 $ 12,947 $ 15,990
Investing activities (21,566) (57,971) (58,928) 36,405 957
Financing activities (85,218) (80,534) (46,463) (4,684) (34,071)
Effect of exchange rate changes on cash and cash equivalents (3,508) 942 (669) (4,450) 1,611
Net increase in cash and cash equivalents $ 44,146 $ 3,928 $ 19,441
We use cash provided by operating activities as our primary source of liquidity. We expect that cash provided by operating activities
will fluctuate in future periods as a result of a number of factors, including fluctuations in our revenues, the timing of product
shipments during the quarter, accounts receivable collections, inventory and supply chain management, and the timing and amount
of tax and other payments.
Operating Activities
Net cash provided by operating activities during the year ended March 31, 2015 increased from the prior year due primarily to
higher net income after adjusting for non-cash items, predominantly stock-based compensation and depreciation, a decrease in
accounts receivable, and an increase in accounts payable both due to improved working capital management. These items were
partially offset by increase in current assets related to participant deferrals as part of our deferred compensation plan. Please refer
to Note 5, Deferred Compensation of our Notes to Consolidated Financial Statements in this Form 10-K for more information
regarding our deferred compensation plan.
Net cash provided by operating activities during the year ended March 31, 2014 increased from the prior year due to higher net
income after adjusting for non-cash items, primarily stock-based compensation and reserve requirements for excess and obsolete
inventories, and a decrease in inventories resulting from higher shipments during the period as compared to the same period in
the prior year, which was driven by increased sales, coupled with the depletion of last time buy inventories. These increases were
partially offset by a decrease in accounts payable resulting primarily from the timing of payments in fiscal year 2014 compared
to fiscal year 2013.
Investing Activities
Net cash used for investing activities during the year ended March 31, 2015 decreased from the year ended March 31, 2014 due
to a decrease in capital expenditures and an increase in the net cash received from sales of investments. Cash used for investing
activities for the year ended March 31, 2015 does not include approximately $2.1 million of capital expenditures as the
corresponding accruals were included within accounts payable at March 31, 2015 and therefore did not have an impact on cash
flows for the period.
Net cash used for investing activities during the year ended March 31, 2014 decreased from the year ended March 31, 2013 due
to a decrease in net cash used for purchases of investments, partially offset by an increase in capital expenditures related primarily
to the purchase of a new manufacturing facility in Tijuana, Mexico and costs incurred to commence implementation of a new ERP
system.
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