Plantronics 2007 Annual Report Download - page 53

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part ii
49A R 2 0 0 7
Audio Communications Group
Fiscal Year Ended Fiscal Year Ended
($ in thousands)
March 31,
2005 March 31,
2006 Increase
(Decrease) March 31,
2006 March 31,
2007 Increase
(Decrease)
Selling, general and administrative $116,621 $132,867 $16,246 13.9% $132,867 $151,857 $18,990 14.3%
% of total segment net revenues 20.8% 21.1% 0.3 ppt. 21.1% 22.4% 1.3 ppt.
In comparison to fiscal 2006, fiscal 2007 selling, general and administrative expenses increased due to
the following:
• stock-based compensation charges of $9.5 million;
• higher headcount and related compensation expense of $7.1 million in sales, marketing and
general administrative functions;
• an increase in depreciation expense;
• an increase in costs associated with outside providers for legal, accounting and auditing services;
and
• an increase in marketing and advertising spending.
In comparison to fiscal 2005, our fiscal 2006, selling, general and administrative expenses increased due
to the following:
• costs of $10.6 million spent on the national branding campaign in fiscal 2006 compared to $1.3
million in 2005, and higher headcount in the marketing function;
• a favorable court ruling and legal settlement which provided a one-time benefit of approximately
$2.8 million in fiscal 2005;
• an increase in sales expenses attributable to a larger global sales presence and an increase in sales-
related compensation; and
• additional expenditures relating to Volume Logic, which was acquired at the beginning of fiscal
2006.
Audio Entertainment Group
Fiscal Year Ended Fiscal Year Ended
($ in thousands)
March 31,
2005 March 31,
2006 Increase
(Decrease) March 31,
2006 March 31,
2007 Increase
(Decrease)
Selling, general and administrative $ — $20,227 $20,227 $20,227 $30,251 $10,024 49.6%
% of total segment net revenues 16.8% 16.8 ppt. 16.8% 24.5% 7.7 ppt.