Plantronics 2015 Annual Report Download - page 69

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2002 ESPP
On June 10, 2002, the Board adopted the 2002 Employee Stock Purchase Plan ("ESPP"), which was approved by the stockholders
on July 17, 2002, to provide eligible employees with an opportunity to purchase the Company's common stock through payroll
deductions. The ESPP qualifies under Section 423 of the Internal Revenue Code. Under the ESPP, which is effective until
terminated by the Board, the purchase price of the Company's common stock is equal to 85% of the lesser of the closing price of
the common stock on (i) the first day of the offering period or (ii) the last day of the offering period. Each offering period is six
months long. There were 156,333, 151,607, and 158,596 shares issued under the ESPP in fiscal years 2015, 2014, and 2013,
respectively. At March 31, 2015, there were 451,274 shares reserved for future issuance under the ESPP. The total cash received
from employees as a result of stock issuances under the ESPP during fiscal year 2015 was $5.9 million, net of taxes.
Stock-based Compensation
The following table summarizes the amount of stock-based compensation expense included in the consolidated statements of
operations for the periods presented:
Fiscal Year Ended March 31,
(in thousands) 2015 2014 2013
Cost of revenues $ 2,583 $ 2,554 $ 2,020
Research, development and engineering 8,053 6,404 4,842
Selling, general and administrative 17,958 14,222 11,488
Stock-based compensation expense included in operating expenses 26,011 20,626 16,330
Total stock-based compensation 28,594 23,180 18,350
Income tax benefit (8,451)(6,790)(5,479)
Total stock-based compensation expense, net of tax $ 20,143 $ 16,390 $ 12,871
Stock Plan Activity
Stock Options
The following is a summary of the Company’s stock option activity during fiscal year 2015:
Options Outstanding
Number of
Shares
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Life
Aggregate
Intrinsic
Value
(in thousands) (in years) (in thousands)
Outstanding at March 31, 2014 1,934 $ 31.91
Options granted 298 $ 47.11
Options exercised (633) $ 27.02
Options forfeited or expired (41) $ 39.74
Outstanding at March 31, 2015 1,558 $ 36.59 4.1 $ 27,046
Vested or expected to vest at March 31, 2015 1,529 $ 36.40 4.0 $ 26,841
Exercisable at March 31, 2015 1,083 $ 32.93 3.3 $ 22,774
The total intrinsic values of options exercised during fiscal years 2015, 2014, and 2013 were $14.0 million, $16.3 million, and
$15.6 million, respectively. Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the
exercise price at the time of option exercise. The total cash received from employees as a result of employee stock option exercises
during fiscal year 2015 was $17.1 million, net of taxes. The total net tax benefit attributable to stock options exercised during the
year ended March 31, 2015 was $4.7 million.
As of March 31, 2015, the total unrecognized compensation cost related to unvested stock options was $3.9 million and is expected
to be recognized over a weighted average period of 1.9 years.
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