Audiovox 2004 Annual Report Download - page 84

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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)
the year ended November 30, 2002, the Executive was paid $1,800 less
an amount outstanding under a promissory note of $651.
In May 2002, the Company granted seven stock appreciation units in ACC to
its Chief Executive Officer of ACC and seven stock appreciation units in
ACC to the Chief Executive Officer of the Company. Each unit had a value of
approximately $774, which was based upon the then fair value per share of
ACC based upon the value of shares sold to Toshiba.
The Company was released from these agreements on November 1, 2004 as a
result of the sale of the Cellular business to UTSI.
Minority interest income (expense) relating to Toshiba's minority share
ownership in ACC for the years ended November 30, 2002, 2003 and 2004 was
$4,741, ($1,066) and $(2,398), respectively. Such income (expense) has been
included in discontinued operations in the accompanying statements of
operations for all periods presented.
(4) Supplemental Cash Flow Information
The following is supplemental information relating to the consolidated
statements of cash flows:
Years Ended November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2002 2003 2004
−−−−−−− −−−−−−−−−− −−−−−−−−
Cash paid during the years for:
Interest, excluding bank charges $ 1,303 $ 1,857 $ 5,052
Income taxes $ 2,478 $10,556 $ 7,431
Non−cash Transactions:
During the years ended November 30, 2003 and 2004, the Company recorded a
non−cash stock compensation charge of $388 and $371, respectively, related
to the rights under the call/put options previously granted to certain
employees of Audiovox German Holdings GmbH ("Audiovox Germany") (see Note 5
of Notes to Consolidated Financial Statements).
During the year ended November 30, 2003, the Company issued warrants for
the purchase of 120,000 shares of common stock to non−employees and
recorded a charge to operations of $297,000 (Note 12 of Notes to
Consolidated Financial Statements).
As a result of stock option exercises, the Company recorded a tax benefit
of $216 and $227 during the years ended November 30, 2003 and 2004,
respectively, which is included in paid−in capital in the accompanying
consolidated financial statements.
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