Plantronics 2008 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2008 Plantronics annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

67
(in thousands)
Audio
Communications
Group
Audio
Entertainment
Group Consolidated
Balance at March 31, 2006
$
11,214
$
63,863
$
75,077
Carrying value adjustments - (2,252) (2,252)
Balance at March 31, 2007
$
11,214
$
61,611
$
72,825
Re-allocation of goodwill 2,902 (2,902) -
Carrying value adjustments - (3,654) (3,654)
Balance at March 31, 2008
$
14,116
$
55,055
$
69,171
During fiscal 2007, the Company adjusted the fair value of the property, plant and equipment and inventory acquired, and wrote-off an
accrual for direct acquisition costs relating to the purchase of Altec Lansing. In addition, as a result of the merger of Altec Lansing
into Plantronics in the third quarter of fiscal 2007, Altec Lansing’s effective tax rate decreased, resulting in a reduction of deferred tax
liabilities that were originally recorded for differences in book and tax bases of acquired intangible assets. These adjustments resulted
in a reduction of goodwill of $2.3 million.
In the second quarter of fiscal 2008, the Company transitioned the responsibility and management of the Altec branded headsets from
the AEG segment to the ACG segment; as a result, the related goodwill of $2.9 million was transferred from AEG to ACG. During
fiscal 2008, the Company adjusted deferred tax account balances and long-term tax payable accounts related to the purchase of Altec
Lansing. The adjustments to the deferred tax assets and long term payable account of $1.0 million and $2.6 million respectively,
resulted in a reduction of goodwill of $3.6 million.
In the fourth quarter of fiscal 2008, the Company completed the annual impairment test, which indicated that there was no
impairment. There were also no events or changes in circumstances during the fiscal year ended March 31, 2008, which triggered an
impairment review. However, if forecasted revenue and margin growth rates of the AEG segment are not achieved, it is reasonably
possible that an impairment review may be triggered prior to the next annual review in the fourth quarter of fiscal 2009. If a triggering
event causes an impairment review to be required before the next annual review, it is not possible to determine if an impairment
charge would result or if such charge would be material.
8. INTANGIBLES
The following tables present changes in the carrying value of acquired intangible assets: