Audiovox 2004 Annual Report Download - page 70

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2002, 2003 and 2004
(Dollars in thousands, except share and per share data)
(j) Debt Issuance Costs
Costs incurred in connection with the restructuring of bank
obligations were capitalized. These charges were amortized over the
lives of the respective agreements resulting in amortization expense
of $379, $528 and $1,024 for the years ended November 30, 2002, 2003
and 2004, respectively. There are no such capitalized costs at
November 30, 2004 as the Company's domestic bank obligations expired
on November 1, 2004 (see Note 9 of Notes to Consolidated Financial
Statements).
(k) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated
depreciation. Property under a capital lease is stated at the present
value of minimum lease payments. Major improvements are capitalized
and minor replacements, maintenance and repairs are charged to expense
as incurred. Upon retirement or disposal of assets, the cost and
related accumulated depreciation are removed from the consolidated
balance sheets.
A summary of property, plant and equipment, net, is as follows:
November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004
−−−−−−−− −−−−−−−−
Land $ 648 $ 648
Buildings 4,244 6,384
Property under capital lease 7,142 7,142
Furniture, fixtures and displays 1,682 2,203
Machinery and equipment 4,360 4,592
Construction in progress 195 185
Computer hardware and software 10,747 12,220
Automobiles 848 976
Leasehold improvements 4,167 4,402
−−−−−−−− −−−−−−−−
34,033 38,752
Less accumulated depreciation and amortization (15,435) (18,334)
−−−−−−−− −−−−−−−−
$ 18,598 $ 20,418
======== ========
Accumulated depreciation and amortization includes $1,358 and $1,598
related to property under capital lease at November 30, 2003 and 2004,
respectively. Computer software includes approximately $794 and $573
of unamortized costs as of November 30, 2003 and 2004, respectively,
related to the acquisition and installation of management information
systems for internal use.
67