Plantronics 2006 Annual Report Download - page 102

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Balance Sheet Statement of Operations
Accumulated Other Other Income
March 31, 2006 (in thousands) Comprehensive Income (loss) Net Revenues and Expenses
Realized gain on closed
transactions $ — $2,182 $ —
Recognized but unrealized
gain on open transactions 1,567 — —
$1,567 $2,182 $ —
12. 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.
13. Share Repurchase Program
During the year ended March 31, 2006, the Board of Directors authorized the repurchase of
2,000,000 shares of common stock under our 16th and 17th repurchase programs. Plantronics purchased
2,197,500 shares of the Company’s common stock in the open market at a total cost of $70.4 million and
an average price of $32.03 per share. Through employee benefit plans, Plantronics reissued
146,059 shares for proceeds of $4.3 million. As of March 31, 2006, there were 175,000 remaining shares
authorized for repurchase.
During the year ended March 31, 2005, the Board of Directors authorized the repurchase of
1,000,000 shares of common stock under our 15th repurchased programs. Plantronics purchased
770,100 shares of the Company’s common stock in the open market at a total cost of $28.5 million and
an average price of $36.96 per share. Through the Company’s employee benefit plans, Plantronics
reissued 118,752 shares for proceeds of $3.9 million. As of March 31, 2005, there were 372,500
remaining shares authorized for repurchase.
14. Cash Dividends
In the second quarter of fiscal 2005, the Company’s Board of Directors initiated a quarterly cash dividend
of $0.05 per share resulting in $7.3 million of total dividend payments in fiscal 2005. In fiscal 2006, we
paid $9.5 million in dividend payments.
The actual declaration of future dividends and the establishment of record and payment dates is subject to
final determination by the Audit Committee of the Board of Directors of Plantronics each quarter after
its review of the Company’s financial performance.
Under Plantronics’ current credit facility agreement, the Company has the ability to declare dividends so
long as the aggregate amount of all such dividends declared or paid and common stock repurchased or
redeemed in any four consecutive fiscal quarter periods shall not exceed 75% of the amount of cumulative
consolidated net income in the eight consecutive fiscal quarter periods ending with the fiscal quarter
immediately preceding the date as of which the applicable distributions occurred. Plantronics is currently
in compliance with the covenants and the dividend provision under this agreement.
96 ⯗Plantronics