Audiovox 2009 Annual Report Download - page 63

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Audiovox Corporation and Subsidiaries
Notes to Consolidated Financial Statements
February 28, 2009
(Dollars in thousands, except share and per share data)
d) Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds with original
maturities of three months or less when purchased. Cash equivalents amounted to $69,504 and $35,400 at February 28,
2009 and February 29, 2008, respectively. Cash amounts held in foreign bank accounts amounted to $8,922 and $5,383
at February 28, 2009 and February 29, 2008, respectively. The majority of these amounts are in excess of government
insurance. The Company places its cash and cash equivalents in institutions and funds of high credit quality. We perform
periodic evaluations of these institutions and funds.
e) Investment Securities
The Company classifies its investment securities in one of two categories: trading or available-for-sale. Trading
securities are bought and held principally for the purpose of selling them in the near term. All other securities not
included in trading are classified as available-for-sale.
Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading
securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale
securities are excluded from earnings and are reported as a component of accumulated other comprehensive income
(loss) until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific
identification basis. Dividend and interest income are recognized when earned.
The cost, gross unrealized gains (losses) and aggregate fair value of investment securities as of February 28, 2009 and
February 29, 2008 are as follows:
February 28, 2009
Unrealized Aggregate
Holding Fair
Cost Gain/(Loss) Value
Long-term Investment Securities* $ 4,550 $ (1,135) $ 3,415
CellStar Common Stock* - 63 63
Bliss-tel Stock and Warrants* (see Note 13) 3,825 (3,575) 250
Other Investment 1,474 - 1,474
Deferred Compensation Plan Assets - Trading Securities (see Note 10) 2,542 - 2,542
Investment securities $ 12,391 $ (4,647) $ 7,744
February 29, 2008
Unrealized Aggregate
Holding Fair
Cost Gain Value
Long-term Investment Securities* $ 4,550 $ - $ 4,550
CellStar Common Stock* 1 110 111
Bliss-tel Stock and Warrants* (see Note 13) 3,825 1,141 4,966
Other Investment 1,000 - 1,000
Deferred Compensation Plan Assets - Trading Securities (see Note 10) 4,406 - 4,406
Long-term investments $ 13,782 $ 1,251 $ 15,033
* Represents investments that are classified as available-for-sale securities.
Other investment includes an investment in a non-controlled corporation accounted for by the cost method.
Long-term investment securities consist of taxable auction rate notes which have long-term maturity dates (October
2038) at February 28, 2009. In accordance with the Company's investment policy, all long and short-term investment
securities are invested in "investment grade" rated securities and all investments have an Aaa or better rating at February
28, 2009. Trading securities consist of mutual funds, which are held in connection with the Company’s deferred
compensation plan.
Source: AUDIOVOX CORP, 10-K, May 14, 2009 Powered by Morningstar® Document Research℠