Plantronics 2014 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2014 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 100

  • 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

33
FINANCIAL CONDITION
The following table summarizes our cash flows from operating, investing, and financing activities for each of the past three
fiscal years:
(in thousands) Fiscal Year Ended March 31, Change
Total cash provided by (used for): 2014 2013 2012
2014 vs.
2013
2013 vs.
2012
Operating activities $ 141,491 $ 125,501 $ 140,448 $ 15,990 $ (14,947)
Investing activities (57,971) (58,928) (9,415) 957 (49,513)
Financing activities (80,534) (46,463) (198,261) (34,071) 151,798
Effect of exchange rate changes on cash and cash equivalents 942 (669) (810) 1,611 141
Net increase (decrease) in cash and cash equivalents $ 3,928 $ 19,441 $ (68,038)
We use cash provided by operating activities as our primary source of liquidity. We expect that cash provided by operating activities
will fluctuate in future periods as a result of a number of factors, including fluctuations in our revenues, the timing of product
shipments during the quarter, accounts receivable collections, inventory and supply chain management, and the timing and amount
of tax and other payments.
Operating Activities
Net cash provided by operating activities during the year ended March 31, 2014 increased from the prior year due to the following:
• An increase in net income
• An increase in non-cash adjustments to net income, primarily stock-based compensation and reserve requirements for
excess and obsolete inventories
• A decrease in inventories resulting from higher shipments during the period as compared to the same period in the prior
year, which was driven by increased sales, coupled with the depletion of last time buy inventories.
These increases were partially offset by a decrease in accounts payable resulting primarily from the timing of payments in fiscal
year 2014 compared to fiscal year 2013.
Net cash provided by operating activities during the year ended March 31, 2013 decreased from the prior year due to the following:
• A decrease in net income
• An increase in current accounts receivable related to higher net revenues in the fourth quarter of fiscal year 2013 compared
with the same prior year quarter
• An increase in inventories related primarily to last-time buys from one of our primary chip suppliers
These decreases were partially offset by an increase in accrued liabilities resulting primarily from higher accruals for performance-
based compensation in fiscal year 2013 due to higher achievement against targets than in fiscal year 2012.
Investing Activities
Net cash used for investing activities during the year ended March 31, 2014 decreased from the year ended March 31, 2013 due
to a decrease in net cash used for purchases of investments, partially offset by an increase in capital expenditures related primarily
to the purchase of a new manufacturing facility in Tijuana, Mexico and costs incurred to commence implementation of a new
enterprise resource planning ("ERP") system.
Net cash used for investing activities during the year ended March 31, 2013 increased from the year ended March 31, 2012 due
to the following:
• An increase in purchases of short- and long-term investments
• An increase in capital expenditures related primarily to the purchase of a new manufacturing facility in Tijuana, Mexico
and costs incurred to commence implementation of a new ERP system
• The acquisition of all the equity interests in Tonalite B.V. ("Tonalite"), a product and design company specializing in
wireless wearable products and miniaturization technology