Plantronics 2001 Annual Report Download - page 28

Had compensation expense for our stock-based compensation plans been determined based
on the methods prescribed by SFAS 123, our net income and net income per share would
have been as follows:
Fiscal Year Ended March 31,
(in thousands, except per share amounts) 1999 2000 2001
Net income:
As reported $54,204 $64,517 $73,550
Pro forma $51,771 $56,879 $61,427
Net income per share:
As reported $ 0.99 $ 1.22 $ 1.38
Pro forma $ 0.94 $ 1.07 $ 1.15
Employee Stock Purchase Plan. On April 23, 1996, the Board of Directors of Plantronics approved
the 1996 Employee Stock Purchase Plan (the “ESPP”), which was approved by the stock-
holders on August 6, 1996, to provide certain employees with an opportunity to purchase
Common Stock through payroll deductions. The plan is a qualified plan under applicable
IRS guidelines and certain highly compensated employees are excluded from participation.
Under the ESPP plan effective through August 1999, the purchase price of the Common
Stock was equal to 95% of the market price of the Common Stock immediately before the
beginning of the applicable participation period and there was a six month holding period
requirement for stock purchased. Under the ESPP plan effective beginning September 1999,
the purchase price of the Common Stock is equal to 85% of the market price of the Common
Stock immediately before the beginning of the applicable participation period and there is
no required holding period. Each participation period is six months long.
During fiscal 1999, 7,593 shares were issued under the plan. The fair value of the employee’s
purchase rights was estimated using the Black-Scholes model with the following assump-
tions: dividend yield of 0%, an expected life of six months, expected volatility of 39%, and
risk free interest rates of 4.6%. The weighted-average fair value of these purchase rights
granted in fiscal 1999 was $1.97.
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