Audiovox 2003 Annual Report Download - page 103

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2001, 2002 and 2003
(Dollars in thousands, except share and per share data)
accompanying statements of operations for the year ended November 30, 2002.
The Executive was required to utilize all or a portion of the bonus
allocated to him to repay the remaining outstanding principal and accrued
interest owed by the Executive to the Company pursuant to the unsecured
promissory note in favor of the Company (Note 20). During the year ended
November 30, 2002, the Executive was paid $1,800 less an amount outstanding
under a promissory note of $651.
As a result of the issuance of ACC's shares, the Company recognized a gain,
net of expenses of $1,735, of $14,269 ($8,847 after provision for deferred
taxes) during the quarter ended May 31, 2002. The gain represents the
excess of the sale price per share over the carrying amount per share
multiplied by the number of shares issued to Toshiba. The gain on the
issuance of the subsidiary's shares has been recognized in the accompanying
consolidated statements of operations for the year ended November 30, 2002
in accordance with the Company's policy on the recognition of such
transactions, which is an allowable method under Staff Accounting Bulleting
Topic 5.H.
Minority interest income (expense) relating to Toshiba's minority share
ownership in ACC for the years ended November 30, 2001, 2002 and 2003 was
$501, $4,741 and $(1,066), respectively.
(4) Supplemental Cash Flow Information
The following is supplemental information relating to the consolidated
statements of cash flows:
Years Ended November 30,
2001 2002 2003
−−−−−−− −−−−−−− −−−−−−−
Cash paid during the years for:
Interest, excluding bank charges $ 3,883 $ 1,303 $ 1,857
Income taxes $ 3,550 $ 2,478 $10,556
Non−cash Transactions:
During the years ended November 30, 2001, 2002 and 2003, the Company
recorded an unrealized holding gain (loss) relating to
available−for−sale marketable equity securities, net of deferred income
taxes, of $(831), $422 and $1,734, respectively, as a separate
component of accumulated other comprehensive income (loss) (Note 8).
During fiscal 2003, the Company issued warrants for the purchase of 120,000
(Continued)
102