Plantronics (POLY) 8-K Regulation FD Disclosure

PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP NET REVENUE TO NON-GAAP NET REVENUE
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended								Twelve Months Ended
	December 31,		March 31,		June 30,		September 30,		September 30,
	2018		2019		2019		2019		2019
GAAP Net revenues	$	501,669	$	468,488	$	447,767	$	461,709	$	1,879,633
Deferred revenue purchase accounting	28,923		19,316		12,159		8,524		68,922
Non-GAAP Net revenues	$	530,592	$	487,804	$	459,926	$	470,233	$	1,948,555

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP COGS TO NON-GAAP COGS
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended												Twelve Months Ended
	December 31,			March 31,			June 30,			September 30,			September 30,
	2018			2019			2019			2019			2019
GAAP Cost of goods sold	$	286,532		$	251,957		$	235,121		$	255,638		$	1,029,248
Purchase accounting amortization	(27,575		)	(31,118		)	(30,000		)	(30,716		)	(119,409		)
Acquisition and integration fees	(404		)	(435		)	(922		)	(88		)	(1,849		)
Stock-based compensation	(1,067		)	(1,073		)	(978		)	(997		)	(4,115		)
Rebranding costs	—			—			(36		)	(23		)	(59		)
Non-GAAP Cost of goods sold	$	257,486		$	219,331		$	203,185		$	223,814		$	903,816

2

PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP GROSS PROFIT % TO NON-GAAP GROSS PROFIT %
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended								Twelve Months Ended
	December 31,		March 31,		June 30,		September 30,		September 30,
	2018		2019		2019		2019		2019
GAAP Gross profit %	42.9	%	46.2	%	47.5	%	44.6	%	45.2	%
Deferred Revenue Purchase Accounting	3.1	%	2.1	%	1.4	%	1.1	%	1.9	%
Purchase accounting amortization	5.2	%	6.4	%	6.5	%	6.5	%	6.1	%
Acquisition and integration fees	0.1	%	0.1	%	0.2	%	—	%	0.1	%
Stock-based compensation	0.2	%	0.2	%	0.2	%	0.2	%	0.2	%
Non-GAAP Gross profit %	51.5	%	55.0	%	55.8	%	52.4	%	53.5	%

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP OPERATING EXPENSE TO NON-GAAP OPERATING EXPENSE
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended															Twelve Months Ended
	December 31,			March 31,				June 30,				September 30,				September 30,
	2018			2019				2019				2019				2019
GAAP Operating expense	$	239,844		$	235,790			$	241,495			$	211,681			$	928,810
Acquisition and integration fees	(21,870		)	(13,888		)		(19,513		)		(10,569		)		(65,840		)
Purchase accounting amortization	(15,278		)	(15,281		)		(15,278		)		(15,278		)		(61,115		)
Stock-based compensation	(10,652		)	(10,152		)		(11,926		)		(13,696		)		(46,426		)
Restructuring and other related charges	(12,130		)	(11,983		)		(19,525		)		(5,847		)		(49,485		)
Rebranding costs	—			(5,192		)		(5,419		)		(649		)		(11,260		)
Other adjustments	—			(1,005		)	1	1,162			1	(542		)	2	(383		)	1, 2
Non-GAAP Operating expense	$	179,914		$	178,289			$	170,996			$	165,100			$	694,299

1	Excluded amounts represent immaterial gains (losses) from litigation.
2	Includes Executive transition costs and losses due to litigation settlements.

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended															Twelve Months Ended
	December 31,			March 31,				June 30,				September 30,				September 30,
	2018			2019				2019				2019				2019
GAAP Operating income	$	(24,707	)	$	(19,259	)		$	(28,849	)		$	(5,610	)		$	(78,425	)
Purchase accounting amortization	42,853			46,399				45,278				45,994				180,524
Deferred revenue purchase accounting	28,923			19,316				12,159				8,524				68,922
Acquisition and integration fees	22,274			14,323				20,435				10,657				67,689
Stock-based compensation	11,719			11,225				12,904				14,693				50,541
Restructuring and other related charges	12,130			11,983				19,525				5,847				49,485
Rebranding costs	—			5,192				5,455				672				11,319
Other adjustments	—			1,005			1	(1,162		)	1	542			2	387			1, 2
Non-GAAP Operating income	$	93,192		$	90,184			$	85,745			$	81,319			$	350,440

1	Excluded amounts represent immaterial (gains) losses from litigation.
2	Includes Executive transition costs and losses due to litigation settlements.

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP OPERATING INCOME TO ADJUSTED EBITDA
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended															Twelve Months Ended
	December 31,			March 31,				June 30,				September 30,				September 30,
	2018			2019				2019				2019				2019
GAAP operating income	$	(24,707	)	$	(19,259	)		$	(28,849	)		$	(5,610	)		$	(78,425	)
Deferred revenue purchase accounting	28,923			19,316				12,159				8,524				68,922
Acquisition and integration fees	22,274			14,323				20,435				10,657				67,689
Stock-based compensation	11,719			11,225				12,904				14,693				50,541
Restructuring and other related charges	12,130			11,983				19,525				5,847				49,485
Rebranding costs	—			5,192				5,455				672				11,319
Other adjustments	—			1,005			1	(1,162		)	1	542			2	1,386			1, 2
Depreciation and amortization	55,117			58,606				57,698				57,376				228,797
Adjusted EBITDA	$	105,456		$	102,391			$	98,165			$	92,701			$	398,713

1	Excluded amounts represent immaterial (gains) losses from litigation.
2	Includes Executive transition costs and losses due to litigation settlements.

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP OTHER INCOME & EXPENSE TO NON-GAAP OTHER INCOME & EXPENSE
($ in thousands)
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended												Twelve Months Ended
	December 31,			March 31,			June 30,			September 30,			September 30,
	2018			2019			2019			2019			2019
GAAP Other income and expense	$	(24,907	)	$	(23,878	)	$	(23,599	)	$	(24,422	)	$	(96,806	)
Gain from non-recurring sales of investments	—			(2,583		)	—			—			(2,583		)
Non-GAAP Other income and expense	$	(24,907	)	$	(26,461	)	$	(23,599	)	$	(24,422	)	$	(99,389	)

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PLANTRONICS, INC.
UNAUDITED RECONCILIATIONS OF GAAP DILUTED EPS TO NON-GAAP DILUTED EPS
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
	Three Months Ended															Twelve Months Ended
	December 31,			March 31,				June 30,				September 30,				September 30,
	2018			2019				2019				2019				2019
GAAP Diluted earnings per common share	$	(1.06	)	$	(0.55	)		$	(1.14	)		$	(0.65	)		$	(3.40	)
Purchase accounting amortization	1.08			1.17				1.15				1.16				4.56
Deferred revenue purchase accounting	0.73			0.49				0.31				0.21				1.74
Stock-based compensation	0.30			0.28				0.33				0.37				1.28
Acquisition and integration fees	0.56			0.36				0.52				0.27				1.71
Restructuring and other related charges	0.31			0.30				0.49				0.15				1.25
Rebranding costs	—			0.13				0.14				0.02				0.29
Other adjustments	—			(0.04		)	1	(0.03		)	2	0.01			3	(0.06		)	1,2, 3
Income tax effect	(0.57		)	(0.73		)		(0.46		)		(0.32		)		(2.08		)
Effect of anti-dilutive securities	0.01			0.03				0.01				0.02				0.07
Non-GAAP Diluted earnings per common share	$	1.36		$	1.44			$	1.32			$	1.24			$	5.36

1	Excluded amounts represent immaterial losses from litigation and gains from non-recurring sales of investments.
2	Excluded amounts represent immaterial gains from litigation.
3	Includes Executive transition costs and losses due to litigation settlements.

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