Audiovox 2003 Annual Report Download - page 90

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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)
The cost of other intangible assets with definite lives are amortized
on a straight−line basis over their respective lives. In addition, the
Company was not required under SFAS No. 142 to assess the useful life
and residual value of its goodwill as the Company's goodwill, at the
time of adoption, was equity method goodwill and, as such, this equity
method goodwill will continue to be evaluated for impairment under
Accounting Principles Board No. 18, "The Equity Method of Accounting
for Investments in Common Stock", as amended. For intangible assets
with indefinite lives, including goodwill, recorded subsequent to the
adoption of SFAS No. 142, the Company performed its annual impairment
test which indicated no reduction is required.
The following table presents adjusted net income (loss) and income
(loss) per share data restated to include the retroactive impact of
the adoption of SFAS No. 142:
Years Ended November 30,
2001 2002 2003
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Note (2)
Reported net income (loss) before cumulative effect of a
change in accounting for negative goodwill $ (7,198) $ (14,280) $ 11,239
Cumulative effect of a change in accounting principle for
negative goodwill, net of tax −− 240 −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Reported net income (loss) (7,198) (14,040) 11,239
Add back:
Goodwill amortization, net of tax 224 −− −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Adjusted net income (loss) $ (6,974) $ (14,040) $ 11,239
============== ============== ==============
Basic net income (loss) per common share:
Reported net income (loss) before accounting change $ (0.33) $ (0.65) $ 0.51
Cumulative effect of a change in accounting principle for
negative goodwill, net of tax −− 0.01 −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Net income (loss) (0.33) (0.64) 0.51
Goodwill amortization, net of tax 0.01 −− −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Adjusted net income (loss) $ (0.32) $ (0.64) $ 0.51
============== ============== ==============
Diluted net income (loss) per common share:
Reported net income (loss) before accounting change $ (0.33) $ (0.65) $ 0.51
Cumulative effect of a change in accounting principle for
negative goodwill, net of tax −− 0.01 −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Net income (loss) (0.33) (0.64) 0.51
Goodwill amortization, net of tax 0.01 −− −−
−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−−
Adjusted net income (loss) $ (0.32) $ (0.64) $ 0.51
============== ============== ==============
Weighted average common shares outstanding:
Basic 21,877,100 21,850,035 21,854,610
============== ============== ==============
Diluted 21,877,100 21,850,035 22,054,320
============== ============== ==============
(Continued)
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