Audiovox 2008 Annual Report Download - page 61

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 29, 2008
(Dollars in thousands, except share and per share data)
d) Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds with original
maturities of three months or less when purchased. Cash equivalents amounted to $35,400 and $14,017 at February 29,
2008 and February 28, 2007, respectively. Cash amounts held in foreign bank accounts amounted to $5,383 and $2,882
at February 29, 2008 and February 28, 2007, respectively.
e) Investment Securities
The Company classifies its investment securities in one of two categories: trading or available-for-sale. Trading
securities are bought and held principally for the purpose of selling them in the near term. All other securities not
included in trading are classified as available-for-sale.
Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading
securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale
securities are excluded from earnings and are reported as a component of accumulated other comprehensive income
(loss) until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific
identification basis. Dividend and interest income are recognized when earned.
The cost, gross unrealized gains (losses) and aggregate fair value of investment securities as of February 29, 2008 and
February 28, 2007 are as follows:
February 29, 2008
Unrealized Aggregate
Holding Fair
Cost Gain/(Loss) Value
Long-term investment securities* $ 4,550 - $ 4,550
CellStar Common Stock* 1 110 111
Bliss-tel Stock and Warrants* (see Note 13) 3,825 1,141 4,966
Other Investment* 1,000 1,000
Trading Securities (see Note 10) 4,406 4,406
Long-term investments $ 13,782 $ 1,251 $ 15,033
February 28, 2007
Unrealized Aggregate
Holding Fair
Cost Gain/(Loss) Value
Short-term investment securities* $ 140,872 - $ 140,872
CellStar Common Stock* $ 643 $ 168 $ 811
Bliss-tel Stock and Warrants* (see Note 13) 6,510 (2,755) 3,755
Other Investment* 1,040 - 1,040
Trading Securities 7,573 - 7,573
Long-term investments $ 15,766 $ (2,587) $ 13,179
* Represents investments that are classified as available-for-sale securities.
F-9
Source: AUDIOVOX CORP, 10-K, May 14, 2008