Audiovox 2003 Annual Report Download - page 79

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
November 30, 2001, 2002 and 2003
(Dollars in thousands, except share and per share data)
(1) Description of Business and Summary of Significant Accounting Policies
(a) Description of Business
Audiovox Corporation and its subsidiaries (the Company) design and
market a diverse line of products and provide related services, such
as warranty and activations, throughout the world.
The Company operates in two primary markets (which are also the
Company's reportable segments for accounting purposes):
(1) Wireless communications (Wireless). The Wireless Group markets
wireless handsets and accessories through domestic and
international wireless carriers and their agents, independent
distributors and retailers.
(2) Mobile and consumer electronics (Electronics). The Electronics
Group sells autosound, mobile electronics and consumer
electronics primarily to mass merchants, power retailers,
specialty retailers, new car dealers, original equipment
manufacturers (OEMs), independent installers of automotive
accessories and the U.S. military.
(b) Principles of Consolidation
The consolidated financial statements include the financial statements
of Audiovox Corporation and its wholly−owned and majority−owned
subsidiaries. Minority interest of majority−owned subsidiaries are
calculated based upon the respective minority ownership percentage and
included on the consolidated balance sheet. All significant
intercompany balances and transactions have been eliminated in
consolidation.
(c) Cash and Cash Equivalents
Investments with original maturities of three months or less are
considered cash equivalents. There were no cash equivalents at
November 30, 2002 and 2003.
(d) Revenue Recognition
The Company recognizes revenue from product sales at the time of
passage of title and risk of loss to the customer either at FOB
Shipping Point or FOB Destination, based upon terms established with
(Continued)
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