Plantronics 2002 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2002 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 60

  • 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

E arning Per Share. Basic Earnings Per Share (“EPS”) is computed by dividing net
income available to common stockholders (numerator) by the weighted average number
of common shares outstanding (denominator) during the period. Basic EPS excludes the
dilutive effect of stock options. Diluted EPS gives effect to all dilutive potential common
shares outstanding during a period. In computing diluted EPS, the average stock price for
the period is used in determining the number of shares assumed to be purchased using
the proceeds from the exercise of stock options.
Following is a reconciliation of the numerators and denominators of the basic and
d i l u ted EPS:
Fiscal Year Ended M arch 31 ,
(in th o u sands, excep t earn in gs per shar e ) 2000 2001 2002
Net income $6 4 , 5 1 7 $ 7 3 , 5 5 0 $ 36,248
Weighted average shares-basic 4 9 , 5 1 5 4 9 , 2 1 3 47,304
E ffect of dilutive securities-employee
stock options 3 , 5 0 4 4 , 0 5 0 1,934
Weighted average shares-diluted 5 3 , 0 1 9 5 3 , 2 6 3 49,238
Net earnings per common share-basic $1 . 3 0 $ 1 . 4 9 $ 0.77
Net earnings per common share-diluted $1 . 2 2 $ 1 . 3 8 $ 0.74
Comprehensive Income. Comprehensive income includes charges or credits to equity
that are not the result of transactions with owners. Cumulative other comprehensive
loss, as presented in the accompanying consolidated balance sheets, consists of foreign
currency translation adjustments.
Stock-based Compensation. Statement of Financial Accounting Standards No. 123,
“Accounting for Stock-Based Compensation” (“SFAS 123”), encourages, but does not
require, companies to record compensation cost for stock-based employee compensation
plans based on the fair value of options granted. We have elected to continue to account
for stock-based compensation using the intrinsic value method prescribed in Accounting
Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” and related
interpretations, and to provide additional disclosures with respect to the pro forma eff e c t s
of adoption had we recorded compensation expense as provided in SFAS 123 (see note 10).
Recent Accounting Pronouncements. In July 2001, the Financial Accounting Standards
Board (“FASB”) issued Statement of Financial Accounting Standards No. 141 (“SFAS 141”),
“Business Combinations.” SFAS 141 requires the purchase method of accounting for
business combinations initiated after June 30, 2001, eliminates the pooling-of-interests
method, and changes the criteria to recognize intangible assets apart from goodwill.
T he adoption of SFAS 141 in fiscal year 2002 did not have a significant impact on our
financial position and results of operations.
38