Plantronics 2005 Annual Report Download - page 81

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part ii
PLANTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The Company
Plantronics, Inc. (‘‘Plantronics’’), was founded and incorporated in the state of California in 1961. We are
a leading worldwide designer, manufacturer and marketer of lightweight communications headsets,
telephone headset systems and accessories for the business and consumer markets. In addition, we
manufacture and market specialty telecommunication products for the hearing-impaired and other related
products for people with special communications needs.
2. Significant Accounting Policies
RECLASSIFICATIONS. Certain reclassifications have been made to prior period reported amounts to
conform to the current year presentation, including the reclassification of investments in auction rate
securities from cash and cash equivalents to marketable securities. Previously, investments in auction rate
securities were classified as cash and cash equivalents. Accordingly, we have revised our presentation to
exclude from cash and cash equivalents $124.7 million of auction rate securities at March 31, 2004 and to
include such amounts as marketable securities. In addition, we have made corresponding adjustments to
the accompanying statements of cash flows to reflect the gross purchases and sales of these securities as
investing activities. This adjustment resulted in a net increase of $108.6 million in cash used for investing
activities and a net increase of $13.1 million in cash provided by investing activities in fiscal 2004 and
2003, respectively. This reclassification had no impact on our previously reported results of operations,
operating cash flows or working capital. The following table summarizes the balance sheet amounts as
previously reported and as reclassified (dollars in thousands):
As Reported As Reclassified
Cash Cash
Year Ended
and Cash Marketable and Cash Marketable
March 31,
Equivalents Securities Total Equivalents Securities Total
2004 $180,616 $ — $180,616 $55,952 $124,664 $180,616
2003 54,704 5,021 59,725 38,641 21,084 59,725
MANAGEMENT’S USE OF ESTIMATES AND ASSUMPTIONS. The preparation of financial
statements in accordance with generally accepted accounting principles in the United States of America
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 the financial statements, and
the reported amounts of sales and expenses during the reporting period. These estimates are based on
information available as of the date of these financial statements. 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.
FISCAL YEAR. Each of our fiscal years ends on the Saturday closest to the last day of March. Our
fiscal year 2005 ended on April 2, 2005. Our fiscal year 2004 ended on April 3, 2004 and our fiscal year
2003 ended on March 29, 2003. For purposes of presentation, we have indicated our accounting year
ended on March 31. Results of operations for the fiscal years 2003 and 2005 included 52 weeks while our
fiscal year 2004 included 53 weeks.
AR 2005 ⯗53