Plantronics 2010 Annual Report Download - page 83

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75
On January 25, 2008, the Board of Directors authorized the repurchase of 1,000,000 shares of common stock under a new share
repurchase program. During fiscal 2008 and 2009, the Company repurchased 1,000,000 shares of its common stock under this
repurchase plan in the open market at a total cost of $18.3 million and an average price of $18.30 per share. On November 10, 2008,
the Board of Directors authorized a new plan to repurchase 1,000,000 shares of common stock. During fiscal 2009 and 2010, we
repurchased 1,000,000 shares of our common stock under this plan in the open market at a total cost of $23.7 million and an average
price of $23.66 per share. On November 27, 2009, the Board of Directors authorized a new plan to repurchase 1,000,000 shares of
common stock. During fiscal 2010, we repurchased 1,000,000 shares of our common stock under this plan in the open market at a
total cost of $26.3 million and an average price of $26.26 per share. On March 1, 2010, the Board of Directors authorized a new plan
to repurchase 1,000,000 shares of common stock. During fiscal 2010, we repurchased 24,100 shares of our common stock under this
plan in the open market at a total cost of $0.8 million and an average price of $31.31 per share. As of March 31, 2010, there were
975,900 remaining shares authorized for repurchase.
Primarily through employee benefit plans, we reissued 429,743 treasury shares for proceeds of $5.2 million during the year ended
March 31, 2009 and 284,090 treasury shares for proceeds of $3.6 million during the year ended March 31, 2010.
In fiscal 2009 and 2010, the Company paid quarterly cash dividends of $0.05 per share resulting in total dividends of $9.8 million in
each year. On May 4, 2010, the Company announced that the Board of Directors had declared the Company’s twentieth quarterly
cash dividend of $0.05 per share of the Company’s common stock, payable on June 10, 2010 to stockholders of record on May 20,
2010.
Stock Option Plans
Stock options granted subsequent to September 2007 generally vest over a three-year period. Options granted prior to June 1999 and
after September 2004 but before October 2007 generally vested over a four-year period and those options granted subsequent to May
1999 but before October 2004 generally vested over a five-year period. In July 1999, the Stock Option Plan Committee was
authorized to make option grants to employees who are not senior executives pursuant to guidelines approved by the Compensation
Committee and subject to quarterly reporting to the Compensation Committee.
2003 Stock Plan
In June 2003, the Board of Directors and stockholders approved the Plantronics Inc. Parent Corporation 2003 Stock Plan (the "2003
Stock Plan"). As of March 31, 2010, there have been 9,000,000 shares of common stock (which number is subject to adjustment in
the event of stock splits, reverse stock splits, recapitalization or certain corporate reorganizations) cumulatively reserved since
inception under the 2003 Stock Plan for issuance to employees, directors and consultants of Plantronics. The Company may not grant
more than 20% of the 1,000,000 shares initially reserved for issuance as Restricted Stock Awards and Restricted Stock Units. The
Company amended the Plan to provide that awards of restricted stock and restricted stock units with a per share or per unit purchase
price lower than 100% of fair market value on the grant date will be counted against the total number of shares issuable under the Plan
as 2.5 shares for every 1 share subject thereto. Non-employee members of the Board of Directors receive annual grants of 2,000
restricted shares on the date of the annual stockholder’s meeting.
Under the 2003 Stock Plan, incentive stock options may not be granted at less than 100% of the estimated fair market value of the
Company’s common stock at the date of grant, as determined by the Board of Directors, and the option term may not exceed 7 years.
Incentive stock options granted to a 10% stockholder may not be granted at less than 110% of the estimated fair market value of the
common stock at the date of grant and the option term may not exceed five years. All stock options granted on or after May 16, 2001,
may not be granted at less than 100% of the estimated fair market value of the Company’s common stock at the date of grant.
The 2003 Stock Plan which has a term of 10 years (unless amended or terminated earlier by the Board of Directors) and is due to
expire in September 2013, provides for incentive stock options as well as nonqualified stock options to purchase shares of common
stock,. At March 31, 2010, options to purchase 4,926,611 shares of common stock were outstanding and 1,809,622 shares were
available for future grant under the 2003 Stock Plan.