Plantronics 2015 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2015 Plantronics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

PLANTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. THE COMPANY
Plantronics, Inc. (“Plantronics” or “the Company”) is a leading worldwide designer, manufacturer, and marketer of lightweight
communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics
brand. In addition, the Company manufactures and markets specialty products under its Clarity brand, such as telephones for the
hearing impaired, and other related products for people with special communication needs. The Company operates its business
as one segment.
Founded in 1961, Plantronics is incorporated in the state of Delaware and trades on the New York Stock Exchange under the ticker
symbol “PLT”.
2. SIGNIFICANT ACCOUNTING POLICIES
Management's Use of Estimates and Assumptions
The Company's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the
United States of America ("U.S. GAAP"). In connection with the preparation of our financial statements, the Company is required
to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities,
net revenues, expenses, and the related disclosures. The Company bases its assumptions, estimates, and judgments on historical
experience, current trends, future expectations, and other factors that management believes to be relevant at the time the consolidated
financial statements are prepared. On an ongoing basis, the Company reviews its accounting policies, assumptions, estimates,
and judgments, including those related to revenue and related reserves and allowances, inventory valuation, product warranty
obligations, the useful lives of long-lived assets including property, plant and equipment and intangible assets, investment fair
values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges, to ensure that the consolidated
financial statements are presented fairly and in accordance with U.S. GAAP. Because future events and their effects cannot be
determined with certainty, actual results could differ from the Company's assumptions and estimates.
Principles of Consolidation
The consolidated financial statements include the accounts of Plantronics and its wholly owned subsidiaries. The Company has
included the results of operations of acquired companies from the date of acquisition. All intercompany balances and transactions
have been eliminated.
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal years 2015, 2014, and 2013 each consisted
of 52 weeks and ended on March 28, 2015, March 29, 2014, and March 30, 2013, respectively. For purposes of presentation, the
Company has indicated its accounting fiscal year as ending on March 31.
Financial Instruments
Cash, Cash Equivalents and Investments
All highly liquid investments with initial stated maturities of three months or less at the date of purchase are classified as cash
equivalents. The Company classifies its investments as either short-term or long-term based on each instrument's underlying
effective maturity date and reasonable expectations with regard to sales and redemptions of the instruments. All short-term
investments have effective maturities less than 12 months, while all long-term investments have effective maturities greater than
12 months. The Company may sell its investments prior to their stated maturities for strategic purposes, in anticipation of credit
deterioration, or for duration management.
As of March 31, 2015, with the exception of assets related to the Company's deferred compensation plan, all investments were
classified as available-for-sale, with unrealized gains and losses recorded as a separate component of accumulated other
comprehensive income ("AOCI") in stockholders’ equity. The specific identification method is used to determine the cost of
disposed securities, with realized gains and losses reflected in interest and other income, net.
46