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P.8
ANNUAL REPORT . 199 8
PLANTRONICS
Notes TO CONSOLIDATED
FINANCIAL STATEMENTS
Effective December 27, 1997 the Company adopted Statement of Financial Accounting Standards No. 128 “Earnings
per Share”, (“SFAS 128”). The new standard requires presentation of both basic EPS and diluted EPS on the face of
the income statement. Basic EPS, which replaces primary EPS, is computed by dividing net income available to common
stockholders (numerator) by the weighted average number of common shares outstanding (denominator) during the
period. Unlike the computation of primary EPS, basic EPS excludes the dilutive effect of stock options. Diluted EPS
replaces fully diluted EPS and gives effect to all dilutive potential common shares outstanding during a period.
The following is a reconciliation of the numerators and denominators of the Basic and Diluted EPS computations for
the periods presented below:
YEAR ENDED MARCH ,
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)199 6 1997 1998
Numerator for earnings per common share— income $25,470 $29,671 $39,189
Denominator for basic earnings per common share 16,593 17,003 16,481
Effect of dilutive securities 1,371 789 1,742
Denominator for diluted earnings per common share 17,964 17,792 18,223
Net income per common share:
Basic $ 1.53 $ 1.75 $ 2.38
Diluted $ 1.42 $ 1.67 $ 2.15
RECENT ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130,
“Reporting Comprehensive Income” (“SFAS 130”). This statement is effective for the Company’s fiscal year ending
March 27, 1999. The statement establishes presentation and disclosure requirements for reporting comprehensive income.
Comprehensive income includes charges or credits to equity that are not the result of transactions with owners. The
Company plans to adopt the disclosure requirements and report comprehensive income as part of the Consolidated
Statements of Shareholders’ Equity as required under SFAS 130, and expects there to be no material impact on the
Company’s financial position and results of operations as a result of the adoption of this new accounting standard.
In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131,
“Disclosures About Segments of an Enterprise and Related Information”(“SFAS 131”). The statement requires the
Company to report certain information about operating segments in annual financial statements. It also establishes
standards for related disclosures about products and services, geographic areas and major customers. The Company
will adopt SFAS 131 beginning in fiscal 1999 and does not expect such adoption to have a material effect on
the consolidated financial statement disclosures.