Plantronics 2009 Annual Report Download - page 102

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94
For the year ended March 31, 2009, the Company incurred a net loss and the inclusion of stock options in the shares used for
computing diluted earnings per share would have been anti-dilutive and would have reduced the net loss per share. Accordingly, all
potentially dilutive common shares attributable to employee equity incentive plans have been excluded from the shares used to
calculate diluted earnings per share for the fiscal year.
16. SEGMENTS AND ENTERPRISE-WIDE DISCLOSURES
The Company evaluates its operating segments in accordance with SFAS No. 131, “Disclosures about Segments of an Enterprise and
Related Information,” (“SFAS No. 131”). Plantronics’ President and Chief Executive Officer is considered the Company’s chief
operating decision maker (“CODM”) pursuant to SFAS No. 131. The CODM allocates resources to and assesses the performance of
each operating segment using several metrics including information about segment revenues, gross profit, operating income (loss)
before interest and other income (expense), net and income tax expense (benefit), and certain product line information. Plantronics
has two reportable operating segments, ACG and AEG. ACG represents the original Plantronics business as operated prior to the
acquisition of Altec Lansing in the second quarter of fiscal 2006, except as described below. AEG represents the Altec Lansing
business since the date of acquisition on August 18, 2005, and certain research, development, and engineering initiatives, which
commenced at the beginning of the first quarter of fiscal 2006.
The results of the reportable segments are derived directly from our internal management reporting system. The accounting policies
of each operating segment results are substantially the same as those used by the consolidated Company.
Financial data for each reportable segment for the fiscal years ended March 31, 2007, 2008 and 2009 is as follows:
(in thousands) 2007 2008 2009
Net revenues
Audio Communications Group $ 676,514 $ 747,935 $ 674,590
Audio Entertainment Group 123,640 108,351 91,029
Consolidated net revenues $ 800,154 $856,286 $765,619
Gross profit
Audio Communications Group $ 295,480 $ 344,072 $ 291,931
Audio Entertainment Group 13,335 5,033 4,097
Consolidated gross profi
t
$ 308,815 $349,105 $296,028
Operating income (loss)
Audio Communications Group $ 84,677 $ 115,166 $ 61,461
Audio Entertainment Group (27,228) (35,783) (142,633)
Consolidated operating income (loss) $ 57,449 $79,383 $(81,172)
Fiscal Year Ended March 31,