Plantronics 2010 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 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

73
The following table summarizes the Company’s restructuring activities during fiscal years 2009 and 2010 and the restructuring accrual
as of the end of each fiscal year:
Severance Facilities
and
Benefits
and
Equipment Other Total
s 10,269 581 102 10,952
arges - discontinued operations 1,077 (36) 81 1,122
(in thousands)
Restructuring accrual at March 31, 2008 $ 292 $ - $ 514 $ 806
Restructuring and other related charges - continuing operation
Restructuring and other related ch
Cash payments
(
6,170
)
107
(
712
)
(
6,775
)
Non-cash - (535) - (535)
(15) 1,867
Restructuring accrual at March 31, 2009 5,468 117 (15) 5,570
Restructuring and other related charges - continuing operations 832 1,050
Restructuring and other related charges - discontinued operations 19 - - 19
Cash payments
(
6,229
)
-
(
67
)
(
6,296
)
Non-cash 75 (1,167) 97 (995)
Restructuring accrual at March 31, 2010 $ 165 $ -
$ - $ 165
The restructuring accrual is included in accrued liabilities in the Company’s consolidated balance sheet.
. COMMITMENTS AND C11
ONTINGENCIES
MINIMUM FUTURE RENTAL PAYMENTS. The Company leases certain equipment and facilities under operating leases expiring
in various years through fiscal 2017. Minimum future rental payments under non-cancelable operating leases having remaining terms
in excess of one year as of March 31, 2010 are as follows:
Fiscal Year Ending March 31, (in thousands)
2011 $ 4,598
2012 2,349
2013 2,147
2014 1,682
2015 1,112
Thereafter 687
Total minimum future rental payments $ 12,575
Total consolidated rent expense for operating leases included in both continuing and discontinued operations was approximately $6.4
million, $6.9 million, and $6.0 million in fiscal 2008, 2009 and 2010, 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.
INDEMNIFICATIONS. Under the terms of the Asset Purchase Agreement, dated October 2, 2009, a First Amendment to the Asset
Purchase Agreement, dated November 30, 2009, a Side Letter to the Asset Purchase Agreement, dated January 8, 2010, and a second
Side Letter to the Asset Purchase Agreement, dated February 15, 2010 (collectively, the “Purchase Agreement”) to sell Altec Lansing,
the Company’s AEG segment, the Company agreed to indemnify the purchaser following the closing of the transaction up to its one
year anniversary against specified losses in connection with the AEG business and generally retain responsibility for various legal
liabilities that may accrue. The Company also made representations and warranties to the purchaser about the condition of AEG,
including matters relating to intellectual property, employee matters and environmental laws. No indemnification costs have been
recorded as of March 31, 2010.