Audiovox 2006 Annual Report Download - page 75
Download and view the complete annual report
Please find page 75 of the 2006 Audiovox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
 |
 |
Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2007
(Dollars in thousands, except share and per-share data)
Deferred income taxes reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting and tax purposes. Significant components
of the Company’s deferred tax assets and liabilities are as follows:
February 28,
2007 2006
Deferred tax assets:
Accounts receivable ................................................. $ 380 $ 228
Inventory........................................................... 1,075 1,068
Property, plant and equipment ........................................ 829 740
Accruals and reserves ................................................ 1,825 1,585
Net operating losses ................................................. 2,062 2,611
Tax credits.......................................................... 3,092 3,092
Deferred tax assets before valuation allowance .......................... 9,263 9,324
Less: valuation allowance............................................. (1,095) (1,089)
Total deferred tax assets.............................................. 8,168 8,235
Deferred tax liabilities:
Intangible assets..................................................... (1,697) (1,150)
Prepaid expenses .................................................. (1,079) (941)
Unrealized gain on investment securities ............................... (1,042) (2,397)
Total deferred tax liabilities........................................... (3,818) (4,488)
Net deferred tax asset................................................ $ 4,350 $ 3,747
In assessing the realizability of deferred tax assets, Management considers whether it is
more-likely-than-not that some portion or all of the deferred tax assets will be realized. The
ultimate realization of deferred tax assets is dependent upon the generation of future taxable
income. Based upon the Company’s ability to carry back current year operating losses to prior
years, and the projection of future taxable income, the Company has only provided a valuation
allowance against certain state net operating loss carryforwards and foreign net operating losses
with relatively short carryforward periods.
At February 28, 2007, the Company incurred a net operating loss for federal income tax purposes
of approximately $8,500. A Federal claim for refund will be filed and this net operating loss will
be carried back to prior years and fully utilized. The Company has recorded a current income tax
receivable attributable to the anticipated carryback claim.
The Company has not provided for U.S. federal and foreign withholding taxes on its foreign
subsidiaries undistributed earnings as of February 28, 2007, because such earnings are intended to
be indefinitely reinvested overseas. The amount of unrecognized deferred tax liabilities for
temporary differences related to investments in undistributed earnings is not practicable to
determine at this time.
F-35