Plantronics 2012 Annual Report Download - page 36

6160
Fair Values as of March 31, 2011:
(in thousands) Level 1 Level 2 Total
Cash and cash equivalents:
Cash $ 136,804 $ — $ 136,804
U.S. Treasury Bills 74,991 — 74,991
Commercial Paper — 22,495 22,495
Corporate Bonds — 3,082 3,082
CDs — 2,001 2,001
Money Market Accounts 38,000 — 38,000
Short-term investments:
U.S. Treasury Bills and Government Agency Securities 71,756 34,107 105,863
Commercial Paper — 30,075 30,075
Corporate Bonds — 11,216 11,216
CDs — 5,429 5,429
Long-term investments:
U.S. Treasury Bills and Government Agency Securities 7,955 9,436 17,391
Corporate Bonds — 19,059 19,059
CDs — 2,882 2,882
Other current assets:
Derivative assets — 360 360
Total assets measured at fair value $ 329,506 $ 140,142 $ 469,648
Accrued liabilities:
Derivative liabilities $ 27 $ 4,174 $ 4,201
Refer to Note 16, Foreign Currency Derivatives, which discloses the nature of the Company's derivative assets and liabilities as
of March 31, 2012 and 2011.
7. DETAILS OF CERTAIN BALANCE SHEET ACCOUNTS
Accounts receivable, net:
March 31,
(in thousands) 2012 2011
Accounts receivable $ 133,233 $ 125,137
Provisions for returns (7,613)(10,437)
Provisions for promotions, rebates and other (12,756)(10,460)
Provisions for doubtful accounts and sales allowances (1,093)(951)
Accounts receivable, net $ 111,771 $ 103,289
Inventory, net:
March 31,
(in thousands) 2012 2011
Raw materials $ 14,062 $ 15,315
Work in process 2,740 2,558
Finished goods 36,911 38,600
Inventory, net $ 53,713 $ 56,473
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Property, plant and equipment, net:
March 31,
(in thousands) 2012 2011
Land $ 6,531 $ 5,867
Buildings and improvements (useful life: 7-30 years) 67,417 55,256
Machinery and equipment (useful life: 2-10 years) 90,643 87,001
Software (useful life: 5-6 years) 28,951 27,096
Construction in progress 2,323 8,556
195,865 183,776
Accumulated depreciation and amortization (119,706)(113,154)
Property, plant and equipment, net $ 76,159 $ 70,622
Depreciation and amortization expense for fiscal years 2012, 2011 and 2010 was $13.3 million, $13.7 million and $16.4 million,
respectively. In addition, the Company incurred $5.2 million of accelerated depreciation in fiscal year 2010 related to discontinued
operations at its former Suzhou China facilities, which was included in Restructuring and other related charges on the Consolidated
statements of operations.
Unamortized capitalized software costs were $6.7 million and $7.4 million at March 31, 2012 and 2011, respectively. Amortization
expense related to capitalized software costs in fiscal years 2012, 2011 and 2010 was $3.1 million, $3.1 million, and $3.0 million,
respectively.
Accrued liabilities:
March 31,
(in thousands) 2012 2011
Employee compensation and benefits $ 24,458 $ 27,478
Warranty obligation 13,346 11,016
Accrued advertising and sales and marketing 1,317 2,873
Accrued other 12,946 18,240
Accrued liabilities $ 52,067 $ 59,607
Changes in the warranty obligation, which are included as a component of Accrued liabilities in the Consolidated balance
sheets, are as follows:
Year ended March 31,
(in thousands) 2012 2011
Warranty obligation at beginning of period $ 11,016 $ 11,006
Warranty provision relating to products shipped during the year 17,061 14,769
Deductions for warranty claims processed (14,731)(14,759)
Warranty obligation at end of period $ 13,346 $ 11,016
8. GOODWILL AND PURCHASED INTANGIBLE ASSETS
Goodwill
The Company has goodwill of $14.0 million as of March 31, 2012 and 2011 and there were no changes in the carrying value
during the fiscal years then ended.
In fiscal years 2012 and 2011, for purposes of the annual goodwill impairment test, the Company determined there to be no
reporting units below its operating segment; therefore, the annual goodwill impairment analysis was performed at the segment
level in both of these years.
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