Plantronics 2006 Annual Report Download - page 110

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The Audio Communications Group has a 401(k) plan that matches 50% of the first 6% of compensation
and provides a non-elective company contribution equal to 3% of base salary. Total Audio Communica-
tion Group 401(k) contributions were $2.4 million, $2.5 million and $2.9 million in fiscal 2004, 2005 and
2006, respectively. The Audio Entertainment Group has a 401(k) plan that matches 50% of the first 4%
of compensation. Total Audio Entertainment Group 401(k) contributions were $0.2 million from the
acquisition date of August 18, 2006 through the March 31, 2006.
21. Commitments and Contingencies
MINIMUM FUTURE RENTAL PAYMENTS. Plantronics leases certain equipment and facilities under
operating leases expiring in various years through 2016. Minimum future rental payments under non-
cancelable operating leases having remaining terms in excess of one year as of March 31, 2006 are as
follows (in thousands):
Fiscal Year Ending March 31,
2007 $ 4,027
2008 3,453
2009 2,884
2010 1,582
2011 571
Thereafter 1,835
Total minimum future rental payments $14,352
Total rent expense for operating leases was approximately $3.0 million, $3.4 million, and $4.6 million in
fiscal 2004, 2005, and 2006, respectively.
EXISTENCE OF RENEWAL OPTIONS. Certain operating leases provide for renewal options for
periods from one to three years. In the normal course of business, operating leases are generally renewed
or replaced by other leases.
CLAIMS AND LITIGATION. Plantronics is presently engaged in various legal actions arising in the
normal course of business. Management believes that it is unlikely that any of these actions will have a
material adverse impact on the Company’s financial condition, results of operations or cash flows.
However, because of the inherent uncertainties of litigation, the outcome of any of these actions could be
unfavorable and could have a material adverse effect on the Company’s financial condition, results of
operations or cash flows.
22. Segments and Enterprise-Wide Disclosures
SFAS No. 131, ‘‘Disclosures about Segments of an Enterprise and Related Information,’’ requires the
Company to report financial and descriptive information about its reportable operating segments,
including segment profit or loss, certain specific revenue and expense items and segment assets, the
countries in which it earns revenues and holds assets, and major customers. The method for determining
what information to report is based on the way that management has organized operating segments
within the Company for making operating decisions and assessing financial performance.
Plantronics’ President and Chief Executive Officer (‘‘the CEO’’) is considered the Company’s chief
operating decision maker. The CEO reviews financial information presented on a consolidated basis
accompanied by information about revenues by product line and revenues by geographic region for
104 ⯗Plantronics