Plantronics 2011 Annual Report Download - page 69

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The Company had no Level 3 financial assets or liabilities as of March 31, 2011. Level 3 financial assets as of March 31, 2010
consisted of ARS, composed primarily of interest bearing state sponsored student loan revenue bonds guaranteed by the Department
of Education. The Company exercised its option under the UBS Rights Agreement and sold all of the remaining ARS to UBS at
par value in June 2010.
The following table provides a summary of changes in fair value of the Company's Level 3 financial assets for fiscal 2011 and
2010:
(in thousands)
Balance at beginning of period
Unrealized gain on ARS included in Interest and other income (expense), net
Proceeds from sales of ARS
Distributions received from Reserve Primary Fund
Balance at end of period
Year ended March 31,
2011
$ 23,216
34
(23,250)
—
$ —
2010
$ 28,060
68
(4,750)
(162)
$ 23,216
7. DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS
Accounts receivable, net:
(in thousands)
Accounts receivable
Provisions for returns
Provisions for promotions, rebates and other
Provisions for doubtful accounts and sales allowances
Accounts receivable, net
March 31,
2011
$ 125,137
(10,437)
(10,460)
(951)
$ 103,289
2010
$ 118,199
(13,812)
(13,780)
(2,279)
$ 88,328
Inventory, net:
(in thousands)
Purchased parts
Work in process
Finished goods
Inventory, net
March 31,
2011
$ 15,315
2,558
38,600
$ 56,473
2010
$ 13,287
2,791
54,440
$ 70,518
If forecasted revenue and gross margin rates are not achieved, it is possible that the Company may have increased requirements
for inventory provisions.
Assets held for sale:
(in thousands)
Land rights
Buildings and improvements
Machinery and equipment
Assets held for sale
March 31,
2011
$ —
—
—
$ —
2010
$ 514
8,227
120
$ 8,861
In the fourth quarter of fiscal 2009, the Company decided to close its Suzhou, China manufacturing operations and outsource the
manufacturing of its Bluetooth products to an existing supplier in China. In July 2009, the Company stopped all manufacturing
processes in the Suzhou location. As a result, the building and related fixed assets were transferred, at the lower of their carrying
value or fair value less the costs to sell, to Assets held for sale in the Consolidated balance sheet. The fair value of the building
was based on a current appraisal value adjusted for expected selling costs. The assets held for sale were measured at fair value
using unobservable inputs and, therefore, were a Level 3 fair value measure.
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