Plantronics 2013 Annual Report Download - page 83

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73
A reconciliation of the change in the amount of gross unrecognized income tax benefits for the periods is as follows:
March 31,
(in thousands) 2013 2012 2011
Balance at beginning of period $ 11,141 $ 10,458 $ 11,201
Increase (decrease) of unrecognized tax benefits related to prior years (117) 116 (960)
Increase of unrecognized tax benefits related to the current year 2,430 2,074 2,185
Reductions to unrecognized tax benefits related to lapse of applicable statute of
limitations (2,382)(1,507)(1,968)
Balance at end of period $ 11,072 $ 11,141 $ 10,458
The Company's continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
The interest related to unrecognized tax benefits was $2.0 million and $1.7 million as of March 31, 2013 and 2012, respectively.
No penalties have been accrued.
The Company and its subsidiaries are subject to taxation in various foreign and state jurisdictions, including the U.S. The Company
is under examination by the Internal Revenue Service for its 2010 tax year and the California Franchise Tax Board for its 2007
and 2008 tax years. Foreign income tax matters for material tax jurisdictions have been concluded for tax years prior to fiscal
2006, except for the United Kingdom, which has been concluded for tax years prior to fiscal year 2012.
The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations;
however, the outcome of such examinations cannot be predicted with certainty. If any issues addressed in the tax examinations
are resolved in a manner inconsistent with the Company's expectations, the Company could be required to adjust its provision for
income tax in the period such resolution occurs. Although timing of any resolution and/or closure of tax examinations is not
certain, the Company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the
next twelve months.
17. COMPUTATION OF EARNINGS PER COMMON SHARE
The Company has a share-based compensation plan under which employees may be granted share-based awards, including shares
of restricted stock on which non-forfeitable dividends are paid on unvested shares. As such, shares of restricted stock are considered
participating securities under the two-class method of calculating earnings per share as described in the Earnings per Share Topic
of the FASB ASC. The two-class method of calculating earnings per share did not have a material impact on the Company's
earnings per share calculation as of March 31, 2013, 2012, and 2011.
The following table sets forth the computation of basic and diluted earnings per share:
(in thousands, except earnings per share data) Fiscal Year Ended March 31,
2013 2012 2011
Numerator:
Net income $ 106,402 $ 109,036 $ 109,243
Denominator:
Weighted average common shares-basic 41,748 44,023 47,713
Dilutive effect of employee equity incentive plans 990 1,242 1,631
Weighted average shares-diluted 42,738 45,265 49,344
Basic earnings per common share $ 2.55 $ 2.48 $ 2.29
Diluted earnings per common share $ 2.49 $ 2.41 $ 2.21
Potentially dilutive securities excluded from earnings per diluted share because
their effect is anti-dilutive 1,038 1,199 1,606
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