Plantronics 2015 Annual Report Download - page 44

We anticipate our capital expenditures in fiscal year 2016 to be approximately $30.0 million to $35.0 million, related to costs
associated with the purchase and related construction of a new smarter working office for our European headquarters in the
Netherlands as well as costs associated with building and leasehold improvements at our U.S. headquarters, the implementation
of a manufacturing execution system at our facility in Mexico, and other IT-related expenditures. The remainder of the anticipated
capital expenditures for fiscal year 2016 consist primarily of capital investment in our manufacturing capabilities, including tooling
for new products. We will continue to evaluate new business opportunities and new markets; as a result, our future growth within
the existing business or new opportunities and markets may dictate the need for additional facilities and capital expenditures to
support that growth.
Financing Activities
Net cash used for financing activities during the year ended March 31, 2015 increased from the year ended March 31, 2014 due
to an increase in the level of common stock repurchases and an increase in our quarterly dividend beginning in the first quarter
of our fiscal year 2015. These items were partially offset by an increase in proceeds from our revolving line of credit.
Net cash used for financing activities during the year ended March 31, 2014 increased from the year ended March 31, 2013 due
to an increase in the level of common stock repurchases and a net decrease in proceeds from issuances of stock under equity plans.
This increase was partially offset by a decrease in repayments on our revolving line of credit, which we paid off in full in the
fourth quarter of fiscal year 2013.
On April 27, 2015, we announced that our Audit Committee of the Board of Directors ("the Audit Committee") had declared a
cash dividend of $0.15 per share of our common stock, payable on June 10, 2015 to stockholders of record at the close of business
on May 20, 2015. We expect to continue paying a quarterly dividend of $0.15 per share of our common stock; however, the actual
declaration of dividends and the establishment of record and payment dates are subject to final determination by the Audit Committee
each quarter after its review of our financial performance and financial position.
Liquidity and Capital Resources
Our primary discretionary cash uses have historically been for repurchases of our common stock and dividend payments. At
March 31, 2015, we had working capital of $507.8 million, including $374.7 million of cash, cash equivalents, and short-term
investments, compared to working capital of $458.7 million, including $335.4 million of cash, cash equivalents, and short-term
investments at March 31, 2014. The increase in working capital at March 31, 2015 compared to March 31, 2014 results from the
decrease in accounts receivable and increase in accounts payable both due primarily to improved working capital management.
Our cash and cash equivalents as of March 31, 2015 consist of bank deposits with third party financial institutions and Commercial
Paper. We monitor bank balances in our operating accounts and adjust the balances as appropriate. Cash balances are held
throughout the world, including substantial amounts held outside of the U.S. As of March 31, 2015, of our $374.7 million of cash,
cash equivalents, and short-term investments, $16.3 million is held domestically while $358.4 million is held by foreign subsidiaries,
approximately 90% of which were based in U.S. dollar-denominated holdings. The costs to repatriate our foreign earnings to the
U.S. would likely be material; however, our intent is to indefinitely reinvest our earnings from foreign operations, and our current
plans do not require us to repatriate them to fund our U.S. operations as we generate sufficient domestic operating cash flow and
have access to external funding under our current revolving line of credit. Our investments are intended to establish a high-quality
portfolio that preserves principal and meets liquidity needs. As of March 31, 2015, our investments are composed of Mutual
Funds, Government Agency Securities, Commercial Paper, and Corporate Bonds.
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