Plantronics 2007 Annual Report Download - page 91

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part ii
87A R 2 0 0 7
During the fourth quarter of fiscal 2007, we reorganized the Volume Logic business and discontinued
development work on a key product. We also determined during our annual planning process in the
fourth quarter that our revenue estimates for Volume Logic products would be lower in the near term than
anticipated at the acquisition date in fiscal 2006.
As a result of these combined triggering events, the Company began a review of the recoverability of its
Volume Logic-related intangible assets. Recoverability was measured by a comparison of the assets’
carrying amount to their expected future undiscounted net cash flows. The Company determined that
the Volume Logic acquired technology intangible assets representing anticipated license revenue had no
remaining value and wrote off the remaining carrying value of $0.8 million in cost of revenues.
The estimated future amortization expense for each fiscal year subsequent to fiscal 2007 is as follows:
Estimated amortization expense
Fiscal Year Ending March 31,
2008 $ 8,159
2009 8,005
2010 7,545
2011 7,502
2012 4,837
Thereafter 4,972
Total estimated amortization expense $41,020
9. Short-Term Investments
The following table presents the Company’s short-term investments at March 31, 2006 and 2007:
Short-Term Investments
(in thousands)
Cost
Basis Unrealized
Gain Unrealized
Loss Accrued
Interest Fair
Value
Balances at March 31, 2006
Auction rate certificates $8,000 $ — $ — $29 $8,029
Total short-term investments $8,000 $ — $ — $29 $8,029
Short-Term Investments
(in thousands)
Cost
Basis Unrealized
Gain Unrealized
Loss Accrued
Interest Fair
Value
Balances at March 31, 2007
Auction rate certificates $9,150 $ — $ — $84 $9,234
Total short-term investments $9,150 $ — $ — $84 $9,234
At March 31, 2006 and 2007, all of the Company’s short-term investments were classified as available-
for-sale and had contractual maturities of greater than one year; however, management has the ability and
intent, if necessary, to liquidate any of these investments in order to meet the Company’s liquidity needs
within the next 12 months. Accordingly, all investments are classified as current assets on the
accompanying consolidated balance sheets. All of the investments are held in the Company’s name at a
limited number of major financial institutions.