Audiovox 2001 Annual Report Download - page 49

Net sales and long-lived assets by location for the years ended November 30, 1999, 2000 and 2001 were as follows.
Net Sales Long-Lived Assets
1999 2000 2001 1999 2000 2001
United States $1,061,532 $1,458,245 $1,053,008 $68,126 $50,928 $41,365
Canada 23,146 68,004 85,796 ———
Argentina 22,831 17,888 2,684 ———
Peru 9,913 — 4,148 ———
Portugal — 7,679 ————
Malaysia 7,780 15,294 12,570 1,275 849 1,220
Venezuela 22,853 15,264 22,422 1,387 644 8,339
Mexico, Central America and Caribbean 10,568 100,599 77,134 ———
Chile — 15,794 1,077 ———
Other foreign countries 2,910 5,692 8,907 ———
Total $1,161,533 $1,704,459 $1,267,746 $70,788 $52,421 $50,924
47 Audiovox Corporation and Subsidiaries
(22) Related Party Transactions
During 2000, the Company advanced $620 to an officer/director of the
Company which has been included in prepaid expenses and other cur-
rent assets on the accompanying consolidated balance sheet. On
December 1, 2000, the Company obtained an unsecured note in the
amount of $620 for the advance. The note, which bears interest at the
LIBOR rate, to be adjusted quarterly, plus 1.25% per annum, is due,
principle and interest, on November 30, 2001. In addition, the Company
has outstanding notes due from various officers of the Company aggre-
gating $235 as of November 30, 2001, which have been included in
other assets on the accompanying consolidated balance sheet. The
notes bear interest at the LIBOR rate plus 0.5% per annum. Principle
and interest are payable in equal annual installments beginning July 1,
1999 through July 1, 2003.
The Company also leases certain facilities and equipment from its
principle stockholder and several officers (Note 19).
In April 2000, the Company entered into a sale/leaseback transaction
with Shintom (Note 4(a)).
Toshiba is a 5% stockholder in ACC (Note 2). During the years ended
November 30, 1999, 2000 and 2001, 39%, 48% and 34% of the
Company’s purchases, respectively, were from Toshiba (Note, 4(c)).
During the quarter ended November 30, 2001, the Company recorded
a receivable in the amount of $4,550 from Toshiba for upgrades that
were performed by the Company in 2001 on certain models which
Toshiba manufactured. Subsequent to November 30, 2001, the amount
was received in full.
The Company engages in transactions with Shintom and TALK
(Note 4(b)).
(23) Contingencies
The Company is a defendant in litigation arising from the normal con-
duct of its affairs. The impact of the final resolution of these matters on
the Company’s results of operations or liquidity in a particular reporting
period is not known. Management is of the opinion, however, that the
litigation in which the Company is a defendant is either subject to prod-
uct liability insurance coverage or, to the extent not covered by such
insurance, will not have a material adverse effect on the Company’s
consolidated financial position.
During 2001, the Company, along with other suppliers, manufacturers
and distributors of hand-held wireless telephones, was named as a
defendant in five class action lawsuits alleging damages relating to
exposure to radio frequency radiation from hand-held wireless tele-
phones. These class actions have been consolidated and transferred
to a Multi-District Litigation Panel before the United States District
Court of the District of Maryland.There are various procedural motions
pending and no discovery has been conducted to date. The Company
has asserted indemnification claims against the manufacturers of the
hand-held wireless telephones. The Company is vigorously defending
these class action lawsuits. The Company does not expect the out-
come of any pending litigation to have a material adverse effect on its
consolidated financial position.
The Company has guaranteed a $300 line of credit with a financial
institution on behalf of one of its equity investments and has estab-
lished standby letters of credit to guarantee the bank obligations
of Audiovox Communications Sdn. Bhd. and Audiovox Venezuela
(Note 11(a)).