Audiovox 2010 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2010 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.

Page out of 131

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

Audiovox Specialized Applications, LLC And Subsidiary
(A Limited Liability Company)
Notes To Financial Statements
Shipping and delivery:
The Company recognizes shipping and delivery costs in selling, general and administrative expenses in the accompanying statements
of income. These costs for the years ended November 30, 2009, 2008 and 2007 were approximately $279,000, $464,000 and
$487,000 respectively.
Sales incentives:
The Company offers sales incentives to its customers primarily in the form of co-operative advertising allowances and rebates. All
significant sales incentives require the customer to purchase the Company’s products during a specified period of time. Claims are
settled either by the customer claiming a deduction against an outstanding account receivable or by the customer requesting a
check. Rebates and co-op advertising allowances offered to customers require that product be purchased during a specified period of
time. The amount offered is generally based upon a fixed percentage of sales revenue to the customer. Since the rebate percentage is
generally fixed, the Company records the related rebate at the time of sale.
Members' equity:
In accordance with the generally accepted method of presenting limited liability company financial statements, the accompanying
financial statements do not include other corporate assets and liabilities of the members, including their obligation for income taxes on
the net income of the limited liability company nor any provision for income tax expense.
It is the Company's intent to distribute funds to members to cover their income tax liabilities. No provision has been made for any
material distributions which may be made subsequent to the balance sheet date.
Subsequent to November 30, 2009, the Company paid approximately $461,000 of member distributions.
The LLC operating agreement does not provide for separate classes of ownership. Audiovox and ASA Electronics Corporation share
equally in all LLC events and the related member accounts are considered equal on a fair value basis.
Cash and cash equivalents:
For purposes of the statement of cash flows, the Company considers investments in various repurchase agreements with its bank,
money market accounts and treasury bills with a maturity of three months or less to be cash equivalents. Cash equivalents amounted
to approximately $884,000 and $4,813,000 for the years ended November 30, 2009 and 2008 respectively.
The Company maintains its cash accounts in amounts which, at times, may be in excess of insurance limits provided by the Federal
Deposit Insurance Corporation.
Available-for-sale securities:
Available-for-sale securities consist of investments in marketable debt securities. Debt securities consist primarily of obligations of
municipalities.
9
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠