Audiovox 2008 Annual Report Download - page 96

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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)
The Company's employee stock purchase plan is a non-compensatory plan, and the related expense is recorded in general
and administrative expenses in the consolidated statements of operations.
c) Profit Sharing Plans/ 401(k) Plan
The Company has established two non-contributory employee profit sharing plans for the benefit of its eligible
employees in the United States and Canada. The plans are administered by trustees appointed by the Company. No
contributions were made during the years ended February 29, 2008, February 28, 2007, the three months ended February
28, 2006 and the year ended November 30, 2005. Contributions required by law to be made for eligible employees in
Canada were not material for all periods presented.
The Company also has a 401(k) plan for eligible employees. The Company matches a portion of the participant's
contributions after three months of service under a predetermined formula based on the participant's contribution level.
The Company's contributions were $749, $486, $92 and $139 for the years ended February 29, 2008, February 28, 2007,
the three months ended February 28, 2006 and the year ended November 30, 2005, respectively. Shares of the
Company's Common Stock are not an investment option in the Savings Plan and the Company does not use such shares
to match participants' contributions.
d) Cash Bonus Profit Sharing Plan
During fiscal 2008, the Board of Directors authorized a Cash Bonus Profit Sharing Plan that allows the Company to
make profit sharing contributions for the benefit of eligible employees, for any fiscal year based on a pre-determined
formula on the Company's pre-tax profits. The size of the contribution is dependent upon the performance of the
Company. A participant’s share of the contribution is determined pursuant to the participant’s eligible wages for the
fiscal year as a percentage of total eligible wages for all participants. During the year ended February 29, 2008, the
Company made a cash bonus profit sharing contribution in the amount of $480 as a result of the Company achieving
pre-tax profits in excess of the Cash Bonus Profit Sharing Plan limits.
e) Deferred Compensation Plan
Effective December 1, 1999, the Company adopted a Deferred Compensation Plan (the Plan) for a select group of
management. The Plan is intended to provide certain executives with supplemental retirement benefits as well as to
permit the deferral of more of their compensation than they are permitted to defer under the Profit Sharing and 401(k)
Plan. The Plan provides for a matching contribution equal to 25% of the employee deferrals up to $20. The Plan is not
intended to be a qualified plan under the provisions of the Internal Revenue Code. All compensation deferred under the
Plan is held by the Company in an investment trust which is considered an asset of the Company. The Company has the
option of amending or terminating the Plan at any time.
The investments, which amounted to $4,406 and $7,573 at February 29, 2008 and February 28, 2007, respectively, have
been classified as trading securities (long-term) and are included in investment securities on the accompanying
consolidated balance sheets as of February 29, 2008 and February 28, 2007. The corresponding deferred compensation
liability is reflected as a long-term liability on the accompanying consolidated balance sheets as of February 29, 2008
and February 28, 2007.
F-37
Source: AUDIOVOX CORP, 10-K, May 14, 2008