Plantronics 2008 Annual Report Download - page 61

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55
PLANTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. THE COMPANY
Plantronics, Inc. (“Plantronics” or “the Company”) is a leading worldwide designer, manufacturer, and marketer of lightweight
communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics
brand. The Company is also a leading manufacturer and marketer of high quality docking audio products, computer and home
entertainment sound systems, and a line of headphones for personal digital media under the Altec Lansing brand.
Founded in 1961, Plantronics is incorporated in the state of Delaware and trades on the New York Stock Exchange under the ticker
symbol “PLT”.
2. SIGNIFICANT ACCOUNTING POLICIES
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, the disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the
reporting period. These estimates are based on information available as of the date of the financial statements. Actual results could
differ materially from those estimates.
Principles of Consolidation
The consolidated financial statements include the accounts of Plantronics and its wholly owned subsidiaries. All intercompany
balances and transactions have been eliminated.
Segment Information
The Company has two reportable segments, Audio Communications Group (“ACG”) and Audio Entertainment Group (“AEG”). (See
Note 17)
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to the last day of March. Fiscal year 2008 ended on March 29, 2008, fiscal
year 2007 ended on March 31, 2007, and fiscal year 2006 ended on April 1, 2006. Each fiscal year consisted of 52 weeks. For
purposes of presentation, the Company has indicated its accounting year as ending on March 31.
Financial Instruments
The carrying values of certain of the Company’s financial instruments, including cash, cash equivalents, accounts receivable, accounts
payable and accrued liabilities approximate fair value due to their short maturities.
Cash and Cash Equivalents
All highly liquid investments with original or remaining maturities of three months or less at the date of purchase are classified as cash
equivalents.
Investments
The goals of the Company’s investment policy, in order of priority, are preservation of capital, maintenance of liquidity,
diversification and maximization of after-tax investment income. Investments are limited to investment grade securities with
limitations by policy on the percent of the total portfolio invested in any one issue. All of the Company’s investments are held in the