Plantronics 2013 Annual Report Download - page 75

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65
2002 ESPP
On June 10, 2002, the Board adopted the 2002 Employee Stock Purchase Plan ("ESPP"), which was approved by the stockholders
on July 17, 2002, to provide eligible employees with an opportunity to purchase the Company's common stock through payroll
deductions. The ESPP qualifies under Section 423 of the Internal Revenue Code. Under the ESPP, which is effective until
terminated by the Board, the purchase price of the Company's common stock is equal to 85% of the lesser of the closing price of
the common stock on (i) the first day of the offering period or (ii) the last day of the offering period. Each offering period is six
months long. There were 158,596, 182,209, and 170,376 shares issued under the ESPP in fiscal years 2013, 2012, and 2011,
respectively. At March 31, 2013, there were 459,214 shares reserved for future issuance under the ESPP. The total cash received
from employees as a result of stock issuances under the ESPP during fiscal year 2013 was $4.8 million, net of taxes.
Stock-based Compensation
The following table summarizes the amount of stock-based compensation expense included in the consolidated statements of
operations for the periods presented:
Fiscal Year Ended March 31,
(in thousands) 2013 2012 2011
Cost of revenues $ 2,020 $ 2,212 $ 2,202
Research, development and engineering 4,842 3,917 3,765
Selling, general and administrative 11,488 11,352 9,906
Stock-based compensation expense included in operating expenses 16,330 15,269 13,671
Total stock-based compensation 18,350 17,481 15,873
Income tax benefit (5,479)(5,463)(4,892)
Total stock-based compensation expense, net of tax $ 12,871 $ 12,018 $ 10,981
Stock Plan Activity
Stock Options
The following is a summary of the Company’s stock option activity during fiscal year 2013:
Options Outstanding
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life Aggregate
Intrinsic Value
(in thousands) (in years) (in thousands)
Outstanding at March 31, 2012 3,304 $ 26.47
Options granted 428 $ 33.23
Options exercised (1,110) $ 24.37
Options forfeited or expired (207) $ 34.45
Outstanding at March 31, 2013 2,415 $ 27.96 3.6 $ 39,206
Vested and expected to vest at March 31, 2013 2,388 $ 27.89 3.6 $ 38,919
Exercisable at March 31, 2013 1,713 $ 25.56 2.7 $ 31,918
The total intrinsic values of options exercised during fiscal years 2013, 2012, and 2011 were $15.6 million, $27.6 million, and
$26.2 million, respectively. Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the
exercise price at the time of option exercise. The total cash received from employees as a result of employee stock option exercises
during fiscal year 2013 was $27.0 million, net of taxes. The total net tax benefit attributable to stock options exercised during the
year ended March 31, 2013 was $5.2 million.
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