Audiovox 2009 Annual Report Download - page 79

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r) Other Income (Loss)
Other income (loss) is comprised of the following:
Year Year Year
Ended Ended Ended
February 28, February 29, February 28,
2009 2008 2007
Bliss-tel (see Note 13) $ - $ 1,533 $ (178)
Interest Income 1,260 3,078 6,218
Rental income 538 552 552
Other (3,467) (454) (339)
Total other, net $ (1,669) $ 4,709 $ 6,253
Other income (loss) includes a one-time charge of $1,901 associated with a vendor bankruptcy for the year ended
February 28, 2009.
s) Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be disposed of
Long-lived assets and certain identifiable intangibles are reviewed for impairment in accordance with SFAS No. 144
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future
undiscounted net cash flows expected to be generated by the asset. Recoverability of assets held for sale is measured by
comparing the carrying amount of the assets to their estimated fair market value. If such assets are considered to be
impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed
the fair value of the assets.
t) Accounting for Stock-Based Compensation
The Company has stock option plans under which employees and non-employee directors may be granted incentive
stock options (“ISO's”) and non-qualified stock options (“NQSO's”) to purchase shares of Class A common stock. Under
the stock option plans, the exercise price of the ISO's will not be less than the market value of the Company's Class A
common stock or greater than 110% of the market value of the Company's Class A common stock on the date of grant.
The exercise price of the NQSO's may not be less than 50% of the market value of the Company's Class A common
stock on the date of grant. The options must be exercised no later than ten years after the date of grant. The vesting
requirements are determined by the Board of Directors at the time of grant. Exercised options are issued from authorized
Class A Common Stock. As of February 28, 2009, 1,392,678 shares were available for future grants under the terms of
these plans.
Effective December 1, 2005, the Company adopted Statement of Financial Accounting Standards No. 123(R),
“Share-Based Payment” (“SFAS No. 123(R)”). SFAS No. 123(R) replaces SFAS No. 123 and supersedes APB No. 25.
SFAS 123(R) requires that all stock-based compensation be recognized as an expense in the financial statements and that
such costs be measured at the fair value of the award at the date of grant and be recognized as an expense over the
requisite service period. Compensation expense related to stock-based awards with vesting terms are amortized using the
straight-line attribution method.
56
Source: AUDIOVOX CORP, 10-K, May 14, 2009 Powered by Morningstar® Document Research℠