Plantronics 2006 Annual Report Download - page 99

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part ii
The following table presents the Company’s short-term investments at March 31, 2005 and 2006.
Short-Term Investments
Cost Unrealized Unrealized Accrued Fair
(in thousands) Basis Gain Loss Interest Value
Balances at March 31, 2005
Auction rate certificates $146,650 $ — $ — $720 $147,370
Auction rate preferred 5,000 — — 1 5,001
Municipal bonds 7,995 — (15) 64 8,044
Government agency bonds 4,000 — (9) 10 4,001
Total Short-Term Investments $163,645 $ — $ (24) $795 $164,416
Short-Term Investments
Cost Unrealized Unrealized Accrued Fair
(in thousands) Basis Gain Loss Interest Value
Balances at March 31, 2006
Auction rate certificates $ 8,000 $ — $ — $ 29 $ 8,029
Auction rate preferred — — — — —
Municipal bonds — — — — —
Government agency bonds — — — — —
Total Short-term investments $ 8,000 $ — $ — $ 29 $ 8,029
Plantronics considers investments maturing between three and twelve months from the date of purchase
as short-term investments. Also included in short-term investments are auction rate securities whose
reset dates may be less than three months, however the underlying security’s contractual maturity is
greater than three months. As the Company views all securities as representing the investment of funds
available for current operations, the short-term investments are classified as current assets. All of the
investments are held in Plantronics’ name at a limited number of major financial institutions.
Unrealized gains and losses are recorded as a separate component of accumulated other comprehensive
income (loss) in stockholder’s equity. If these investments are sold at a loss or are considered to have a
decline in value other than temporary, a charge to operations is recorded. The specific identification
method is used to determine the cost of securities disposed of, with realized gains and losses reflected in
interest income, net. Plantronics did not incur any realized gains or losses in the years ended March 31,
2004, 2005, and 2006 as all securities were held to maturity in the respective years.
Because the Company has the ability and intent to hold these securities until a recovery of fair value,
which may be at maturity, management does not consider these debt securities to be other-than-
temporarily impaired at March 31, 2006.
9. Bank Line of Credit
Plantronics has a $100 million revolving line of credit and a letter of credit sub-facility. Borrowings under
the line of credit are unsecured and bear interest at the London inter-bank offered rate (‘‘LIBOR’’) plus
0.75%. The line of credit expires on August 1, 2010. At March 31, 2006, $22.0 million was outstanding
on this line of credit and $2.1 million committed under the letter of credit sub-facility. At March 31,
2005, Plantronics had not drawn against the line of credit and had $2.1 million committed under the
letter of credit sub-facility.
AR 2006 ⯗93