Audiovox 2003 Annual Report Download - page 112

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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)
(10) Equity Investments
As of November 30, 2003, the Company's 72% owned subsidiary, Audiovox
Communications Sdn. Bhd., had a 29% ownership interest in Avx Posse
(Malaysia) Sdn. Bhd. (Posse) which monitors car security commands through a
satellite based system in Malaysia. In addition, the Company had a 20%
ownership interest in Bliss−tel which distributes cellular telephones and
accessories in Thailand, and the Company had 50% non−controlling ownership
interests in three other entities: Protector Corporation (Protector) which
acts as a distributor of chemical protection treatments; ASA which acts as
a distributor to specialized markets for RV's and van conversions, of
televisions and other automotive sound, security and accessory products;
and G.L.M. Wireless Communications, Inc. (G.L.M.) which is in the cellular
telephone, pager and communications business in the New York metropolitan
area.
The Company's net sales to the equity investees amounted to $2,656, $3,504
and $4,277 for the years ended November 30, 2001, 2002 and 2003,
respectively. The Company's purchases from the equity investees amounted to
$5,592, $1,883 and $1,978 for the years ended November 30, 2001, 2002 and
2003, respectively. The Company recorded $746, $644 and $296 of outside
representative commission expenses for activations and residuals generated
by G.L.M. on the Company's behalf during fiscal 2001, 2002 and 2003,
respectively.
Included in accounts receivable at November 30, 2002 and 2003 are trade
receivables due from its equity investments aggregating $817 and $934,
respectively. At November 30, 2002 and 2003, included in accounts payable
and other accrued expenses were obligations to equity investments
aggregating $6 and $6, respectively.
For the years ended November 30, 2001, 2002 and 2003, interest income
earned on equity investment notes and other receivables approximated $157,
$2 and $0, respectively.
As discussed in Note 6, the Company sold $3,600 of marine division assets
to ASA in connection with the Recoton acquisition.
The following presents summary financial information for ASA. Such summary
financial information has been provided herein based upon the individual
significance of this unconsolidated equity investment to the consolidated
financial information of the Company. Furthermore, based upon the lack of
significance to the consolidated financial information of the Company, no
summary financial information for the Company's other equity investments
(Continued)
111