Plantronics 2015 Annual Report Download - page 7

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Plantronics Annual Report 2015
We believe that over the longer term our highly differentiated and superior product line will uniquely position us for extraordinary
leadership in the markets we serve.
We also enhanced our capital allocation policy to return more cash to our shareholders through stock repurchases and dividends.
Our board of directors recently approved a new return of capital policy that will return more cash to shareholders, balance cash return
between regular dividends and increased stock buybacks, and utilize a prudent amount of leverage to enhance shareholder returns.
Our new policy targets a return of 60% of total free cash flow, defined as total operating cash flow less capital expenditures. We also
intend to retain our cash distribution targets of 2/3rds in the form of common stock repurchases and 1/3rd in the form of quarterly
dividends although the actual percent returned in a given year may be significantly more or less than the long-term goal.
Plantronics intends to regularly reevaluate its return of capital policy and update it when appropriate based on business performance,
and domestic and foreign tax policies. In particular, if there is a material change in the geographic distribution or amount of Plantronics’
cash flows, or a change in relative tax rates between jurisdictions, Plantronics may increase or decrease its return of capital targets.
As part of our return of capital program, we’ve recently issued $500 million of 8-year notes with the primary intent for the use of
proceeds being to repurchase shares and pay down short-term debt.
We remain as confident as ever in our leadership position in the enterprise headset market and in the growing UC category. Our
innovation and breakthroughs in technology allowed us to maintain a premium position in our enterprise and consumer markets in
FY15, and we believe that our innovation waves will enhance our prospects in both markets in FY16.
We remain committed to innovation and increasing long-term stockholder value and cash flow generation.
Sincerely,
Ken Kannappan
President and CEO