Plantronics 2009 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2009 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 120

  • 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
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

75
As of March 31, 2009, Level 3 assets also include the Company’s holdings in the Reserve Primary Money Market Fund (the
“Reserve”) which experienced a decline in net asset value to $0.97 per share due to its exposure to investments held in Lehman
Brothers Holdings, Inc. which filed for Chapter 11 bankruptcy protection on September 15, 2008. As a result, Level 1 and Level 2
inputs are not available to value the investment and the Company determined the fair value based on Level 3 inputs which consisted of
reviewing the Reserve’s underlying securities portfolio comprised primarily of discounted notes, certificates of deposit and
commercial paper issued by highly-rated institutions. Based on this analysis, the Company concluded that the fair value of its
holdings in the Reserve was lower than the carrying value. As a result, the Company recorded a realized loss of $0.1 million included
in Interest and other income (expense), net in its consolidated statement of income for fiscal 2009. As of March 31, 2009, the Reserve
was classified as a receivable within Other current assets in the Consolidated balance sheet as, in September 2008, the Company
attempted to redeem in full all of its holdings in the Reserve and it reasonably expects that distributions from the Reserve will occur
within the next twelve months. During fiscal 2009, the Company received distributions totaling approximately $1.7 million on its
holdings.
The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets:
Changes in Fair Value of Level 3 Financial Assets:
Year ended
(in thousands) March 31, 2009
Balance at March 31, 2008 25,136$
Change in temporary valuation adjustment included in Accumulated other comprehensive income (loss) 2,863
Unrealized loss included in Interest and other income (expense), net (4,281)
Recognition of Rights agreement and unrealized gains in Interest and other income (expense), net 3,904
Unrealized gain included in Interest and other income (expense), net 276
Transfer of Reserve Primary Fund from Level 1 to Level 3 162
Balance at March 31, 2009 28,060$