Audiovox 2008 Annual Report Download - page 76

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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)
Summarized information about stock options outstanding as of February 29, 2008 is as follows:
Outstanding and Exercisable
Weighted- Weighted-
Average Average
Exercise Exercise Life
Price Number Price Remaining
Range of Shares of Shares in Years
$ 4.63 - 8.00 10,000 $ 4.63 0.67
$ 8.01 - 13.01 283,334 $ 10.95 3.09
$ 13.01 - 15.00 1,273,702 $ 14.70 1.59
The aggregate pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of
fiscal 2008 and the exercise price, multiplied by the number of in-the-money options) that would have been received by
the option holders had all option holders exercised their options on February 29, 2008 was $3,043,800 This amount
changes based on the fair market value of the company’s stock. The total intrinsic value of options exercised for the
years ended February 29, 2008, February 28, 2007 and November 30, 2005 were $3,149, $2,519 and $3,570,
respectively.
t) Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) includes accumulated foreign currency translation gains of $4,470 and
$241, and unrealized gains (losses) on investment securities classified as available-for-sale of $377and $(1,561) at
February 29, 2008 and February 28, 2007, respectively.
During the years ended February 29, 2008 and February 28, 2007, $1,876 and $(117) of unrealized gains (losses) on
available-for-sale investment securities were transferred into earnings as a result of the disposition of the investment.
During the year ended November 30, 2005, $1,758 of unrealized losses on available-for-sale investment securities were
transferred into earnings as a result of an other than temporary impairment charge. The currency translation adjustments
are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries and equity investments.
u) New Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”). SFAS No. 157
defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value
measurement. SFAS No. 157 does not require any new fair value measurements, but rather eliminates inconsistencies in
guidance found in other accounting pronouncements. SFAS No. 157 is effective for fiscal years beginning after
November 15, 2008, as it was amended by FASB Staff Position No. 157-b, Effective Date of FASB Statement No.
157. The transition adjustment of the difference between the carrying amounts and the fair values of those financial
instruments should be recognized as a cumulative effect adjustment to retained earnings as of the beginning of the year
of adoption. The Company is currently evaluating the impact of SFAS No. 157, but does not expect the adoption of this
pronouncement to have a material impact on the Company’s financial position or results of operations.
In February 2007, the FASB released SFAS No. 159, “The Fair Value Option for Financial Assets and Financial
Liabilities” (“SFAS No. 159”) to provide companies with an option to report selected financial assets and liabilities at
fair value. The objective of SFAS No. 159 is to reduce both the complexity in accounting for financial instruments and
the volatility in earnings caused by measuring related assets and liabilities differently. SFAS No. 159 is effective for
fiscal years beginning after November 15, 2007 with early adoption permitted. The Company is currently evaluating the
impact of SFAS No. 159, but does not expect the adoption of this pronouncement to have a material impact on the
Company’s financial position or results of operations.
F-22
Source: AUDIOVOX CORP, 10-K, May 14, 2008