Audiovox 2005 Annual Report Download - page 80

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As a result of the sale of the Cellular business, the Company
recorded a gain of $67,000 for the year ended November 30, 2004,
which was calculated as follows:
Purchase Price $165,170
Working capital adjustment 8,472
Less: payment to former Cellular employees 25,019
Less: professional fees incurred in conjunction with divestiture 4,603
Less: net assets sold 49,598
Less: non−cash charge for stock options 98
Non−cash cumulative translation gains 914
Gain on purchase of Toshiba minority interest 8,073
Less: estimated taxes 36,311
−−−−−−
Gain on sale of Cellular business, included in discontinued operations $67,000
=======
(c) Financial Presentation of Discontinued Operations
The Company reclassified all associated assets and liabilities
and results of operations as discontinued operations and
recorded the results of AVM and Cellular as a discontinued
operation for all periods presented. The following sets forth
the carrying amounts of the major classes of assets and
liabilities, which are classified as assets and liabilities of
discontinued operations in the accompanying consolidated balance
sheets.
NOVEMBER 30,
2004
−−−−−−−−−−−−−−−−−−−−−
ASSETS
Accounts receivable, net $ 18,534
Inventory 1,432
Prepaid expenses and other current assets 616
−−−
Current assets of discontinued operations $ 20,582
========
Property, plant and equipment, net $ 711
Other assets 214
−−−
Non−current assets of discontinued operations $ 925
======
LIABILITIES
Accounts payable $ 172
Accrued expenses and other current liabilities 572
Bank obligations 2,209
−−−−−
Current liabilities of discontinued operations $ 2,953
=======
F−26