Plantronics 2010 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2010 Plantronics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

39
The results from discontinued operations, including the loss on sale of Altec Lansing, for the fiscal years 2008, 2009 and 2010 are as
follows:
(in thousands)
2008 2009 2010
et revenues 108,351$ 91,029$ 64,916$
(86,932) (53,127)
perating expenses (37,232) (28,144) (16,433)
ved assets - (117,464) (25,194)
estructuring and other related charges (3,584) (1,122) (19)
- - (611)
ss from operations of discontinued AEG segment (including loss on sale of AEG) (35,783) (142,633) (30,468)
Year Ended March 31,
N
Cost of revenues (103,318)
O
Impairment of goodwill and long-li
R
Loss on sale of AEG
Lo
Tax benefit from discontinued operations (12,166) (32,392) (11,393)
Loss on discontinued operations, net of tax (23,617)$ (110,241)$ (19,075)$
FINANCIAL CONDITION
The table below provides selected consolidated cash flow information for the periods indicated:
March 31, March 31, March 31,
(in thousands) 2008 2009 2010
Cash provided by operating activities $ 102,900 $ 99,150 $ 143,729
Cash used for capital expenditures and other assets $ (23,298) $ (23,682) $ (6,262)
Cash provided by (used for) maturities/sales of investments, net (18,850) (59,896) 64,760
Cash provided from sale of AEG segment - - 9,121
Cash provided by other investing activities - 406 277
Cash provided by (used for) investing activities $ (42,148) $ (83,172) $ 67,896
Cash provided by (used for) financing activities $ 5,618 $ (14,915) $ (20,982)
Cash Flows from Operating Activities
Cash flows from operating activities in fiscal 2010 were $143.7 million and consisted of our net income of $57.4 million, non-cash
charges of $54.3 million and working capital sources of cash of $32.0 million. Non-cash charges consisted primarily of $25.2 million
related to the AEG impairment charge on long-lived assets recorded in discontinued operations, $18.1 million of depreciation and
amortization, $14.6 million of stock-based compensation, and non-cash restructuring charges of $6.3 million offset in part by a $12.5
million benefit from deferred income taxes. Working capital sources of cash consisted primarily of a decrease in inventory of $27.6
million as we continued to improve the management of our inventory levels, income tax refunds received along with decreases in
other assets. Working capital uses of cash consisted primarily of decreases in accounts payable and accrued liabilities from reduced
spending during the fiscal year as a result of the sale of Altec Lansing in December 2009. Inventory turns, which is calculated using
Cost of revenues from continuing operations only and consolidated inventory balances, increased to 4.2 as of March 31, 2010 from 3.1
as of March 31, 2009 as a result of our lower inventory balances on higher revenues in the fourth quarter of fiscal 2010 compared to
the same period in fiscal 2009. Accounts receivable remained relatively flat from fiscal 2009 to fiscal 2010; however, Days Sales
Outstanding, which is calculated using Net revenues from continuing operations only and consolidated accounts receivable balances,
decreased from 59 days as of March 31, 2009 to 49 days as of March 31, 2010 as a result of collections of the accounts receivable
related to our AEG business which were retained by us upon the sale of Altec Lansing on December 1, 2009. We believe most of the
outstanding accounts receivables at the time of sale have been collected as of March 31, 2010.