Plantronics 2010 Annual Report Download - page 96

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88
4 In the third quarter of fiscal 2009, the Company announced a reduction in force in AEG’s operation in Luxemburg and Shenzhen,
China and ACG’s operations in China, Mexico and various other worldwide locations. As a result of these activities, $0.7 million
and $0.1 million in restructuring and other related charges in discontinued operations was recorded in the third and fourth quarters
of fiscal 2009, and $0.3 million and $7.7 million in restructuring and other related charges in continuing operations was recorded
in the third and fourth quarters of fiscal 2009, respectively.
5 In March 2009, the Company announced a restructuring plan to close its ACG Suzhou, China manufacturing operations in fiscal
2010 in order to outsource manufacturing of its Bluetooth products to an existing supplier in China. The manufacturing facility
was closed in July 2009. As a result of these activities, $3.0 million in restructuring and other related charges was recorded as
part of continuing operations in the fourth quarter of fiscal 2009. In the first, second, third and fourth quarters of fiscal 2010,
additional restructuring and other related charges of $0.6 million, $0.9 million, $0.3 million and $0.1 million, respectively, were
recorded as part of this action. In addition, the Company recorded non-cash charges of $3.5 million and $1.7 million,
respectively, in the first and second quarters of fiscal 2010 related to accelerated depreciation related to the building and
equipment associated with manufacturing operations and is included in Cost of revenues.
6 The first quarter of fiscal 2010 includes a correcting adjustment of approximately $1.3 million in Cost of revenues related to an
overstatement of duty expense in prior periods, beginning in the third quarter of fiscal 2005 through the fourth quarter of fiscal
2009. The Company assessed the materiality of the error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” and SEC
Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements”, and determined
that the impact of the correcting adjustment was not material to its projected full year results for fiscal 2010 nor did it have a
material impact on amounts reported in prior periods.
7 In the second quarter of fiscal 2010, the Company recorded non-cash impairment charges in the amount of $18.6 million on the
Altec Lansing trademark and trade name, $2.8 million related to intangible assets related to customer relationships, technology
and the inMotion trade name, and $3.8 million related to property, plant and equipment related to the AEG segment. These
charges are included in discontinued operations.
8 As originally reported in fiscal 2009, potentially dilutive common shares attributable to employee stock plans diluted shares were
excluded from the diluted share calculation as they would have been anti-dilutive and would have reduced the net loss per share;
however, as a result of reporting our AEG segment as discontinued operations, the anti-dilution of these potentially dilutive
common shares is now based on income from continuing operations as compared to net income (loss) and are now included in the
shares used in diluted per share calculation.
9 On May 4, 2010, the Company issued a press release announcing our preliminary results for the fourth quarter of fiscal 2010. In
the press release, the Company reported Income from discontinued operations, net of tax, of $0.2 million and Net income of $24.6
million. Subsequent to the issuance of the press release, management recorded an adjustment related to its discontinued
operations resulting in a Loss on discontinued operations, net of tax, of $0.2 million and Net income of $24.2 million for the
fourth quarter of fiscal 2010.
10 The Company sold Altec Lansing, its AEG segment, effective December 1, 2009 and has classified the AEG operating results,
including the loss on sale, as discontinued operations for all periods presented.
11 Net income (loss) includes the operating results from both continuing and discontinued operations.
12 Basic and diluted earnings per share is presented on net income (loss) including both continuing and discontinued operations and
are computed independently for each of the quarters presented; therefore, the sum of the quarterly basic and diluted per share
information may not equal annual basic and diluted earnings per share.