Plantronics 2015 Annual Report Download - page 49

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To the extent we prevail in matters for which a liability has been established, or are required to pay amounts in excess of our
established liability, our effective income tax rate in a given financial statement period could be materially affected. An unfavorable
tax settlement would generally require use of our cash and may result in an increase in our effective income tax rate in the period
of resolution. A favorable tax settlement would be recognized as a reduction in our effective income tax rate in the period of
resolution.
RECENT ACCOUNTING PRONOUNCEMENTS
Recently Issued Pronouncements
In April 2015, the Financial Accounting Standards Board ("FASB") issued additional guidance regarding cloud computing
arrangements. The guidance requires registrants to account for a cloud computing arrangement that includes a software license
element consistent with the acquisition of other software licenses. Cloud computing arrangement without software licenses are to
be accounted for as a service contract. This guidance is effective for fiscal years and interim periods beginning after December
15, 2015. We have elected to adopt the new standard beginning in the first quarter of our fiscal year 2016. The adoption is not
expected to have a material impact on our results of operations, financial position, or cash flows.
In April 2015, the FASB issued additional guidance regarding the presentation of debt issuance costs. The guidance requires debt
issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. This guidance is effective
for fiscal years and interim periods beginning after December 15, 2015. We have elected to adopt the new standard beginning in
the first quarter of our fiscal year 2016. The adoption is not expected to have a material impact on our results of operations,
financial position, or cash flows.
In May 2014, the FASB issued additional guidance regarding revenue from contracts with customers. While the standard supersedes
existing revenue recognition guidance, it closely aligns with current GAAP. Under the new standard, revenue will be recognized
at the time a good or service is transferred to a customer for the amount of consideration received for that specific good or service.
Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. On April 1, 2015, the
FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that
date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December
15, 2016. Presently, we are not yet in a position to assess the application date. We are currently evaluating what impact, if any,
the adoption of this standard will have on our results of operations, financial position, or cash flows.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The following discusses our exposure to market risk related to changes in interest rates and foreign currency exchange rates. This
discussion contains forward-looking statements that are subject to risks and uncertainties. Actual results could vary materially as
a result of a number of factors, including those set forth in Item 1A, Risk Factors.
INTEREST RATE AND MARKET RISK
As of March 31, 2015 and 2014, we reported the following balances in cash and cash equivalents, short-term investments, and
long-term investments:
March 31,
(in millions) 2015 2014
Cash and cash equivalents $ 276.9 $ 232.7
Short-term investments $ 97.9 $ 102.7
Long-term investments $ 107.6 $ 100.3
As of March 31, 2015, our investments were composed of Mutual Funds, Government Agency Securities, Commercial Paper, and
Corporate Bonds.
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