Plantronics 1999 Annual Report Download - page 21

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PLANTRONICS ANNUAL REPORT 1999 page 19
Notes to consolidated financial statements
note 9. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION:
The Company adopted SFAS No. 131 in fiscal 1999 which changes the way the Company reports infor-
mation about its operating segments.
OPERATING SEGMENT
The Company organizes the reporting segments based on geographic areas.The nature of products,
(telecommunications equipment), development, manufacturing, marketing and servicing are similar in each
geographic area.The Company evaluates segment performance based on profit or loss from operations
before interest expense, foreign exchange gains and losses and income taxes. No one customer accounted
for 10% or more of total revenue from consolidated sales for fiscal year 1997, 1998 or 1999.
GEOGRAPHIC SEGMENTS
In geographical reporting, revenues are attributed to the geographical location of the sales and service
organizations. Costs directly and indirectly incurred in generating revenues are similarly assigned.
FISCAL YEAR ENDED MARCH 31,
(IN THOUSANDS) 199 7 199 8 1999
NET REVENUES FROM UNAFFILIATED CUSTOMERS:
United States $135,664 $164,074 $198,910
International 59,643 72,038 87,351
$195,307 $236,112 $286,261
Intersegment revenues $ 47,952 $ 80,421 $ 92,141
OPERATING PROFIT:
United States $ 36,718 $ 45,051 $ 63,169
International 13,621 17,322 20,345
$ 50,339 $ 62,373 $ 83,514
LONG LIVED ASSETS:
United States $ 97,138 $121,627 $ 76,339
International 30,103 43,848 66,529
$127,241 $165,475 $142,868
The geographical reporting classification reflects the international restructuring completed in fiscal 1997.
The establishment of Plantronics B.V. changed the ownership of inventory and the methodology of inter-
segment revenues. Intersegment revenues are from Plantronics B.V. to the US and are at arms length prices
sufficient to recover a reasonable profit.