Audiovox 2003 Annual Report Download - page 92

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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)
November 30, 2003
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
Gross
Carrying Accumulated Total Net
Value Amortization Book Value
Patents subject to
amortization $ 677 $ 677 −−
Trademarks subject to
amortization 34 34 −−
Trademarks not subject
to amortization
(Note 6) 8,043 −− $8,043
−−−−−− −−−−−− −−−−−−
Total $8,754 $ 711 $8,043
====== ====== ======
At November 30, 2003, all intangible assets subject to
amortization have been fully amortized. Accordingly, the
estimated aggregate amortization expense for each of the
succeeding years ending November 30, 2008 amounts to $0.
(m) Equity Investments
The Company has common stock investments which are accounted for
by the equity method as the Company owns between 20% and 50% of
the common stock.
The Company applies the equity method of accounting to its
investments in entities where the Company has non−controlling
ownership interests. The Company's share of its equity method
investees earnings or losses is included in the consolidated
statements of operations. The Company eliminates its pro rata
share of gross profit on sales to its equity method investees for
inventory on hand at the investees at the end of the year. A
description of the Company's equity investments and the related
transactions between the Company and these investees is discussed
in Note 10.
(n) Cellular Telephone Commissions
Under various agency agreements, the Company receives an initial
activation commission for obtaining subscribers for cellular
telephone services. The agreements may contain provisions for
additional commissions based upon usage and length of continued
subscription. The agreements also provide for the reduction or
(Continued)
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