Audiovox 2005 Annual Report Download - page 97

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During the year ended November 30, 2005, no customer accounted
for greater than 10% of net sales. During the year ended
November 30, 2004, one customer accounted for 11% of net
sales. During the year ended November 30, 2003, two customers
each accounted for 10% of the Company's net sales.
A portion of the Company's customer base may be susceptible to
downturns in the retail economy, particularly in the consumer
electronics industry. Additionally, customers specializing in
certain automotive sound, security and accessory products may
be impacted by fluctuations in automotive sales.
(c) Fair Value
The carrying value of all financial instruments is deemed to
approximate fair value because of the short−term nature of
these instruments. The estimated fair value of the Company's
financial instruments is as follows:
NOVEMBER 30, 2004 NOVEMBER 30, 2005
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
$124,237 $124,237 $108,766 $108,766
Short−term investments
Investment securities
(long−term) 5,988 5,988 11,998 11,998
Bank obligations 5,485 5,485 4,757 4,757
The following methods and assumptions were used to estimate
the fair value of each class of financial instruments for
which it is practicable to estimate that value:
Investment Securities/Short−Term Investments
The carrying amount represents fair value, which is based upon
quoted market prices at the reporting date (Note 1).
Bank Obligations
The carrying amount of the Company's foreign debt approximates
fair value because the interest rate on the debt is reset
every quarter to reflect current market rates.
Limitations
Fair value estimates are made at a specific point in time,
based on relevant market information and information about the
financial instrument. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment
and, therefore, cannot be determined with precision. Changes
in assumptions could significantly affect the estimates.
F−43