Plantronics 2009 Annual Report Download - page 51

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43
In fiscal 2008, compared to fiscal 2007, consolidated selling, general and administrative expenses increased due to increased
compensation as a result of merit increases and higher bonus and commission costs associated with higher net revenues and profits in
ACG, partially offset by a decrease in expenses in AEG.
Fluctuations in the selling, general and administrative expenses of ACG and AEG in fiscal 2008 compared to fiscal 2007 were as
follows:
ACG
Selling, general and administrative expenses increased primarily due to the following:
· increased compensation expense of $11.8 million as a result of merit increases and higher bonus and commission costs
associated with higher net revenues and profits; and
· increased professional service fees of $3.4 million primarily related to increased retail representation fees resulting from
higher net revenues and increased fees for accounting and tax services.
These increases were offset in part by a decrease of $3.8 million in marketing and sales promotions.
AEG
Selling, general and administrative expenses decreased primarily due to the following:
· decreased spending on integration and retention of employees of $2.7 million as we have completed significant portions of
our planned systems integration; and
· increased allocation of support services to cost of revenues and research and development resulting in a decrease of $1.1
million.
We anticipate that our consolidated selling, general and administrative expenses in fiscal 2010 will be lower in comparison to fiscal
2009.
Restructuring and Other Related Charges
Consolidated
(in thousands)
Restructuring and other related charges $ - $ 3,584 $ 3,584 - $ 3,584 $ 12,074 $ 8,490 236.9%
% of total consolidated net revenues 0.0% 0.4% 0.4 ppt. 0.4% 1.6% 1.2 ppt.
Increase
2007 2008 (Decrease) 2008 2009 (Decrease)
Fiscal Year Ended Fiscal Year Ended
March 31, March 31, Increase March 31, March 31,
Audio Communications Group
Restructuring and other related charges $ - $ - $ - - $ - $ 10,952 $ 10,952 -
% of total segment net revenues 0.0% 0.0% - ppt. 0.0% 1.6% 1.6 ppt.
Audio Entertainment Group
Restructuring and other related charges $ - $ 3,584 $ 3,584 - $ 3,584 $ 1,122 $ (2,462) (68.7)%
% of total segment net revenues 0.0% 3.3% 3.3 ppt. 3.3% 1.2% (2.1) ppt.