Plantronics 2007 Annual Report Download - page 78

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74 P l a n t r o n i c s
The following table shows the amount of stock-based compensation expense recorded under SFAS No.
123(R) included in the consolidated statement of operations:
Fiscal Year Ended March 31,
($ in thousands, except per share data) 2007
Cost of revenues $ 2,908
Research, development and engineering 3,835
Selling, general and administrative 10,176
Stock-based compensation expense included in operating expenses 14,011
Total stock-based compensation (1) 16,919
Income tax benefit (5,599)
Total stock-based compensation expense, net of tax $ 11,320
Decrease in basic and diluted earnings per share $ 0.24
(1) The year ended March 31, 2007 includes stock-based compensation expense associated with restricted
stock awards of $2.1 million.
Prior to the adoption of SFAS No. 123(R), benefits of tax deductions in excess of recognized compensation
costs were reported as operating cash flows in the consolidated statements of cash flows. SFAS No.
123(R) requires that they be reported as a financing cash inflow rather than as an operating cash inflow.
As a result of adopting SFAS No. 123(R), excess tax benefits for the year ended March 31, 2007 of $1.2
million have been classified as financing cash inflows.
The Company has elected to adopt the alternative transition method provided in FASB Staff Position No.
123(R)-3, “Transition Election Related to Accounting for Tax Effects of Share-Based Payment Awards”
for calculating the tax effects of stock-based compensation pursuant to SFAS No. 123(R). The alternative
transition method includes simplified methods to establish the beginning balance of the additional paid-
in capital pool (“APIC pool”) related to the tax effects of employee stock-based compensation, and to
determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the
tax effects of employee stock-based compensation awards that are outstanding upon adoption of SFAS
No. 123(R).
Prior to the Adoption of SFAS 123(R)
Prior to the adoption of SFAS 123(R), the Company used the intrinsic value method as prescribed in
APB 25, to account for all stock-based employee compensation plans and had adopted the disclosure-only
alternative of SFAS No. 123, as amended by SFAS No. 148, “Accounting for Stock-Based Compensation—
Transition and Disclosure” (“SFAS No. 148”). Consistent with the disclosure provisions of SFAS No. 148,
the pro forma information was as follows: