Plantronics 2008 Annual Report Download - page 70

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64
(in thousands)
Warranty obligation at March 31, 2006 $ 6,276
Warranty provision relating to products shipped during the year 15,946
Deductions for warranty claims processed (14,982)
Warranty obligation at March 31, 2007 7,240
Warranty provision relating to products shipped during the year 22,095
Deductions for warranty claims processed (18,894)
Warranty obligation at March 31, 2008 $10,441
6. ACQUISITIONS
Octiv, Inc.
On April 4, 2005, Plantronics completed the acquisition of Octiv, Inc. (“Octiv”), a privately held company, for $7.8 million in cash
including $0.4 million of direct acquisition costs pursuant to the terms of an Agreement and Plan of Merger dated March 28,
2005. Octiv was merged into the Company subsequent to the acquisition and its name was changed to Volume Logic™, Inc.
(“Volume Logic”). The results of operations of Volume Logic have been included in the Company’s consolidated results of operations
beginning on April 4, 2005.
As a result of the acquisition, the Company recorded goodwill of $2.2 million which was allocated to the ACG segment and is not
deductible for tax purposes. In addition, the Company recorded $4.5 million of intangible assets related to the purchase of existing
technologies which was estimated to have a useful life of ten years and is being amortized on a straight-line basis to cost of revenues.
Altec Lansing Technologies, Inc.
On August 18, 2005, the Company completed the acquisition of Altec Lansing Technologies, Inc., a privately-held Pennsylvania
corporation (“Altec Lansing”) for a cash purchase price including acquisition costs of approximately $165 million. The Company
paid for the acquisition by drawing down $45.0 million on its credit facility and the remainder was paid using its cash and cash
equivalents and short-term investments. The results of operations of Altec Lansing have been included in the Company’s consolidated
results of operations beginning on August 18, 2005.
The accompanying consolidated financial statements reflect the purchase price of approximately $165 million, consisting of cash and
other costs directly related to the acquisition as follows:
(in thousands)
Paid to Altec Lansing $ 154,273
Payment of Altec Lansing pre-existing debt 9,906
Direct acquisition costs 977
Total cash consideratio
n
$ 165,156
The purchase price has been allocated to the tangible and identifiable intangible assets and liabilities acquired on the basis of their
respective fair values on the acquisition date.
The following table presents an allocation of the purchase price: