Audiovox 2000 Annual Report Download - page 31

(6) Accounts Receivable
Accounts receivable is comprised of the following:
November 30,
1999 2000
Trade accounts receivable $254,477 $303,003
Receivables from equity investments (Note 10) 1,057 861
255,534 303,864
Less:
Allowance for doubtful accounts 5,645 6,921
Allowance for cellular deactivations 1,261 1,254
Allowance for co-operative advertising, cash
discounts and market development funds 11,356 16,287
$237,272 $279,402
(7) Receivable from Vendors
The Company recorded receivable from vendors in the amount of $9,327
and $5,566 as of November 30, 1999 and 2000, respectively. Receivable
from vendor represents prepayments on product shipments, defective
product reimbursements and interest receivable at a rate of 6.5% and
7.87% at November 30, 1999 and 2000, respectively, on amounts due
from TALK (Note 10).
AUDIOVOX CORPORATION AND SUBSIDIARIES
AUDIOVOX 29
A related deferred tax liability of $6,053 and deferred tax asset of $116
was recorded at November 30, 1999 and 2000, respectively, as a reduc-
tion to the unrealized holding gain (loss) included in accumulated other
comprehensive income.
During 1998, the Company purchased 400,000 Japanese yen (approxi-
mately $3,132) of Shintom debentures and exercised its option to convert
the Shintom debentures into shares of Shintom common stock. These
shares are included in the Company’s available-for-sale marketable secu-
rities at November 30, 1998. During the fourth quarter of 1999, the
Company recorded an other-than-temporary decline in market value of its
Shintom common stock in the amount of $1,953 and a related deferred
tax benefit of $761. The write-down has been recorded as a component of
other expense in the consolidated statement of income.
During 1998, the Company purchased an additional 1,400,000 Japanese
yen (approximately $9,586) of Shintom debentures and exercised its
option to convert 737,212 Japanese yen of Shintom debentures into
shares of Shintom common stock. The Company sold the Shintom com-
mon stock yielding net proceeds of $5,830 and a gain of $787.
During 1999, the Company purchased an additional 3,100,000 Japanese
yen (approximately $27,467) of Shintom debentures and exercised its
option to convert 2,882,788 Japanese yen of Shintom debentures into
shares of Shintom common stock. The Company sold the Shintom com-
mon stock yielding net proceeds of $27,916 and a gain of $3,501.
During 2000, the Company exercised its option to convert 800,000
Japanese yen of Shintom debentures into shares of Shintom common
stock. The Company sold the Shintom common stock, yielding net pro-
ceeds of $12,376 and a gain of $1,850.
During 2000, the Company sold 200,000 shares of its CellStar common
stock yielding net proceeds of $851 and a gain of $537.
During 2000, the net unrealized holding loss on trading securities that has
been included in earnings is $370.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
(8) Investment Securities
As of November 30, 2000, the Company’s investment securities consists of $3,273 of available-for-sale marketable securities which consist primarily of
1,530,000 shares of CellStar Common Stock and 1,904,000 shares of Shintom common stock and trading securities of $2,211 which consists of mutual funds
that are held in connection with the Deferred Compensation Plan (Note 17(f)). As of November 30, 1999, the Company’s investment securities consist prima-
rily of 1,730,000 shares of CellStar Common Stock, 1,904,000 shares of Shintom common stock and 1,125,024 Japanese yen of Shintom debentures, which
were classified as available-for-sale marketable securities. The cost, gross unrealized gains and losses and aggregate fair value of the investment securities
available-for-sale as of November 30, 1999 and 2000 were as follows:
1999 2000
_________________________ _________________________
Gross Gross
Unrealized Aggregate Unrealized Aggregate
Holding Fair Holding Fair
Cost Gain Value Cost Gain Value
CellStar Common Stock $ 2,715 $13,936 $16,651 $2,401 $ 133 $2,534
Shintom Common Stock 1,179 — 1,179 1,179 (440) 739
Shintom Debentures 10,526 2,045 12,571 —— —
$14,420 $15,981 $30,401 $3,580 $(307) $3,273