Plantronics 2002 Annual Report Download - page 33

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Beginning in the first quarter of fiscal year 2002, we entered into foreign currency
forward-exchange contracts, which typically mature in one month, to hedge the exposure
to foreign currency fluctuations of expected foreign currency-denominated receivables,
payables and cash balances. We record on the balance sheet at each reporting period the
fair value of our forward-exchange contracts and record any fair value adjustments in
results of operations. Gains and losses associated with currency rate changes on the
contracts are recorded in results of operations, as other income (expense), off s e t t i n g
transaction gains and losses on the related assets and liabilities.
T he following table summarizes our contractual obligations that were reasonably likely to
occur as of March 31, 2002, and the effect such obligations are expected to have on our
liquidity and cash flow in future periods.
C O N T R A C T U A L O B L I G AT I O N S
Paymen t s Due by Per iod
M a rch 31, 200 2 Less t h an
(in th o u sands) To t a l 1 year 1- 3 years 4-5 ye ars A f t er 5 years
Operating leases $1 2 , 3 7 8 $ 2 , 5 3 9 $ 4 , 0 6 8 $ 1 , 7 3 0 $ 4 , 0 4 1
Unconditional purchase obligations 1 9 , 8 3 3 1 9 , 8 3 3
Forward exchange contracts 4 , 1 0 0 4 , 1 0 0
Total contractual cash obligations $3 6 , 3 1 1 $ 2 6 , 4 7 2 $ 4 , 0 6 8 $ 1 , 7 3 0 $ 4 , 0 4 1
We believe that our current cash balance and cash to be provided by operations, together
with available borrowing capacity under our revolving credit facility and letter of credit
s u b f a c i l i t y, will be sufficient to fund operations for at least the next twelve months.*
H o w e v e r, any projections of future financial needs and sources of working capital are
subject to uncertainty. See “Certain Forward-Looking Information” and “Risk Factors
A ffecting Future Operating Results” included in our 2002 Annual Report on Form 10-K
as filed with the Securities and Exchange Commission for factors that could affect our
estimates for future financial needs and sources of working capital.
31