Audiovox 2003 Annual Report Download - page 108

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2001, 2002 and 2003
(Dollars in thousands, except share and per share data)
values at the date of acquisition.
The following summarizes the allocation of the purchase price to the fair
value of the assets acquired and liabilities assumed at the date of
acquisition:
Assets acquired:
Accounts receivable $ 12,291
Inventory 21,979
Other current assets 4,014
Property, plant and equipment 2,201
Trademarks 10,303
−−−−−−−−
Total assets acquired 50,788
−−−−−−−−
Liabilities assumed:
Accounts payable and other current liabilities 6,966
Long−term debt 3,776
−−−−−−−−
Total liabilities assumed 10,742
−−−−−−−−
Cash paid, net of cash acquired $ 40,046
========
The excess of the estimated purchase price over the fair value of assets
and liabilities acquired of $10,303 was allocated to trademarks, with an
indefinite useful life. The allocation of purchase price to assets and
liabilities acquired was based upon an independent valuation study, and the
purchase price is final.
Subsequent to July 8, 2003, the Company sold accounts receivable, inventory
and trademarks ($524, $816 and $2,260, respectively) attributable to the
marine products division of the Electronics Group based upon their
estimated fair values which resulted in no gain or loss to the Company. The
sale of the marine division assets was required since the Company is
precluded from selling marine products as a result of its joint venture
agreement with Audiovox Specialized Applications, Inc. (ASA), an equity
investee of the Company.
(Continued)
107