Plantronics 2001 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2001 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 36

  • 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

Notes to Consolidated Financial Statements
1. The Company
Plantronics, Inc. (“Plantronics,” “we” or “our”), introduced the first lightweight commu-
nications headset in 1962. Since that time, we have become the world’s leading designer,
manufacturer and marketer of lightweight communications headset products.
2. Summary of Significant Accounting Policies
Management’s Use of Estimates and Assumptions. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of financial statements and the
reported amounts of sales and expenses during the reporting period. Actual results could
differ from those estimates.
Principles of Consolidation. The consolidated financial statements include the accounts of
Plantronics and its subsidiary companies. Intercompany transactions and balances have been
eliminated upon consolidation.
Fiscal Year. Our fiscal year end is the Saturday closest to March 31. For purposes of presenta-
tion, we have indicated our accounting year ending on March 31. Results of operations for
the fiscal year 1999 included 52 weeks, while fiscal year 2000 included 53 weeks. Results of
operations for the fiscal year 2001 included 52 weeks.
Cash and Cash Equivalents and M arketable Securities. We consider all highly liquid investments with
an original maturity of ninety days or less at the date of purchase to be cash equivalents.
Investments maturing between three and twelve months from the date of purchase are
classified as marketable securities.
Management determines the appropriate classification of debt securities at the time of pur-
chase and re-evaluates that designation as of each balance sheet date. As of March 31, 2001,
debt securities were classified as held-to-maturity, as we both intended to, and had the abil-
ity to, hold these securities to maturity. Held-to-maturity securities are stated at amortized
cost, which approximates fair market value. The estimated fair values of cash equivalents
Plantronics 2001 Annual Report 10