Audiovox 2005 Annual Report Download - page 78

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Accounts receivable, net $ 1,628
Inventory 116,341
Prepaid expenses and other assets 985
Receivables from vendors 3,101
Property, plant and equipment, net 1,759
−−−−−
Total assets sold 123,814
Accounts payable 56,750
Accrued expenses and other liabilities 12,827
Accrued sales incentives 4,639
−−−−−
Total liabilities sold 74,216
−−−−−−
Net assets sold $49,598
=======
As consideration for the sale, the Company received $165,170
("Purchase Price") and an additional $8,472 pursuant to a net
working capital adjustment ("the adjustment") based on
the working capital of ACC at the time of closing. The
adjustment was collected during the year ended November 30,
2005.
A portion of the Purchase Price proceeds were utilized for the
following payments:
o ACC repaid Toshiba Corporation ("Toshiba"), a former
minority interest shareholder of ACC, $8,162 as
payment in full of the outstanding principal and interest
of a subordinated note. In addition, Audiovox repurchased
from Toshiba, its remaining minority interest in ACC for
$5,483. As a result of this purchase ACC released Toshiba
from its obligation to continue to supply wireless
handsets to ACC and released Toshiba from all claims that
ACC or Audiovox have or may have against Toshiba (Note 3).
o Upon the closing, ACC's Chief Executive Officer's
employment agreement with ACC was terminated and pursuant
to his employment agreement and his long−term incentive
compensation award he received $4,000. ACC also purchased
certain of his personally
o held intangibles for $16,000 in order for ACC to have the
ability to convey all of the assets used in connection
with the conduct of the Cellular business to UTSI.
o Upon the closing, ACC paid $5,019 to certain employees of
ACC and its subsidiaries as a severance payment and in
exchange for which Audiovox received a release from such
employees.
o Pursuant to the terms of the Agreement, 5% (or $8,255) of
the Purchase Price was placed in escrow by UTSI for 120
days after Closing. The Company collected the full escrow
amount during the year ended November 30, 2005.
o The Company's Chairman received $1,916 upon the closing of
the asset sale pursuant to an amendment of a long−term
incentive compensation award, which clarified that such
payment would be paid pursuant to a sale of the Cellular
business pursuant to an asset sale. This payment was
recorded in general and administrative expenses on the
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