Plantronics 2005 Annual Report Download - page 92

5. Capital Stock
In March 2002, Plantronics established a stock purchase rights plan under which stockholders may be
entitled to purchase Plantronics stock or stock of an acquirer of Plantronics at a discounted price in the
event of certain efforts to acquire control of Plantronics. The rights expire on the earliest of (a) April 12,
2012, or (b) the exchange or redemption of the rights pursuant to the rights plan.
During fiscal 2003, the Board of Directors authorized Plantronics to repurchase an additional 3,000,000
shares of Common Stock. During fiscal 2003, we repurchased 2,874,800 shares of our Common Stock in
the open market at a total cost of $44.8 million, and an average price of $15.56 per share. Through our
employee benefit plans, we reissued 152,700 shares for proceeds of $2.2 million. As of March 31, 2003,
there were 265,400 remaining shares authorized for repurchase under all repurchase authorizations.
During fiscal 2004, we repurchased 122,800 shares of our Common Stock in the open market at a total
cost of $1.8 million, and an average price of $14.93 per share. Through our employee benefit plans, we
reissued 183,174 shares for proceeds of $3.3 million. As of March 31, 2004, there were 142,600
remaining shares authorized for repurchase under all repurchase authorizations.
During fiscal 2005, the Board of Directors authorized Plantronics to repurchase an additional 1,000,000
shares of Common Stock. During fiscal 2005, we purchased 770,100 shares of our Common Stock in the
open market at a total cost of $28.5 million, and an average price of $36.96 per share. Through our
employee benefit plans, we reissued 118,752 shares for proceeds of $3.9 million. As of March 31, 2005,
there were 372,500 remaining shares authorized for repurchase under all repurchase authorizations.
6. Income Taxes
Income tax expense for fiscal 2003, 2004 and 2005 consisted of the following (in thousands):
Fiscal Year Ended March 31, 2003 2004 2005
Current:
Federal $ 8,056 $ 8,255 $24,511
State 154 833 2,095
Foreign 5,863 6,374 5,580
Total current provision for income taxes $14,073 $15,462 $32,186
Deferred:
Federal $ 1,216 $ 7,851 $ 584
State (5) 20 62
Foreign — 887 8
Total deferred provision for income taxes $ 1,211 $ 8,758 $ 654
Provision for income taxes $15,284 $24,220 $32,840
On October 22, 2004, the President of the United States of America signed the American Jobs Creation Act
of 2004 (the ‘‘Act’’). The Act creates a temporary incentive for U.S. corporations to repatriate accumulated
income earned abroad by providing an 85 percent dividends received deduction for certain dividends from
controlled foreign corporations. The deduction is subject to a number of limitations, and, as of today,
uncertainty remains as how to interpret numerous provisions of the Act. As of March 31, 2005, management
had not decided whether to, or to what extent, we might repatriate foreign earnings under the Act, and,
accordingly, the financial statements do not reflect any provision for taxes on unremitted foreign earnings.
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