Audiovox 2003 Annual Report Download - page 139

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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)
(24) Accrued Sales Incentives
During the quarter ended May 31, 2002, the Company adopted the provisions
of EITF 01−9. As a result of adopting EITF 01−9 in 2002, the Company has
reclassified co−operative advertising, market development funds and volume
incentive rebate costs (collectively sales incentives), which were
previously included in selling expenses, to net sales as the Company does
not receive an identifiable benefit in connection with these costs. As a
result of this reclassification, net sales and selling expenses, after
restatement, were reduced by $11,100 for the year ended November 30, 2001.
There was no further impact on the Company's consolidated financial
statements as a result of the adoption of EITF 01−9 as the Company's
historical accounting policy with respect to the recognition and measure of
sales incentives is consistent with EITF 01−9.
A summary of the activity with respect to sales incentives for the last
three years on a segment and consolidated basis is provided below:
Wireless
Fiscal Fiscal Fiscal
2001 2002 2003
−−−−−−−− −−−−−−−− −−−−−−−−
Note (2)
Opening balance $ 11,700 $ 5,209 $ 7,525
Accruals 19,680 31,186 21,327
Payments (13,616) (25,654) (20,426)
Reversals for unearned incentives (7,535) (570) (393)
Reversals for unclaimed incentives (5,020) (2,646) (744)
−−−−−−−− −−−−−−−− −−−−−−−−
Ending balance $ 5,209 $ 7,525 $ 7,289
======== ======== ========
Electronics
Fiscal Fiscal Fiscal
2001 2002 2003
−−−−−−−− −−−−−−−− −−−−−−−−
Note (2)
Opening balance $ 2,894 $ 3,265 $ 4,626
Accruals** 5,789 7,665 19,994
Payments (3,604) (4,804) (8,212)
Reversals for unearned incentives (1,516) (784) (917)
Reversals for unclaimed incentives (298) (716) (886)
−−−−−−−− −−−−−−−− −−−−−−−−
Ending balance $ 3,265 $ 4,626 $ 14,605
======== ======== ========
(Continued)
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