Audiovox 2010 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 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 Corporation and Subsidiaries
Notes to Consolidated Financial Statements, continued
February 28, 2010
(Dollars in thousands, except share and per share data)
The results of operations of this acquisition have been included in the consolidated financial statements from the date of
acquisition. The purpose of this acquisition was to control the RCA trademark for the audio/video field of use and to expand
our core product offerings into certain developing markets.
The following summarizes the final allocation of the purchase price to the fair value of the assets acquired and liabilities
assumed at the date of acquisition:
Assets acquired:
Inventory $ 14,383
Computers 49
Perpetual license and other intangible assets (less multimedia license fee) 19,887
Total assets acquired $ 34,319
Liabilities assumed:
Warranty accrual $ 12,848
Other liabilities acquired 5,900
Total liabilities assumed $ 18,748
Total purchase price $ 15,571
The allocation of the purchase price to assets and liabilities acquired was based upon an independent valuation study and is
final.
Technuity
On November 1, 2007, Audiovox Accessories Corporation completed the acquisition of all of the outstanding stock of
Technuity, Inc. (“Technuity”), an emerging leader in the battery and power products industry and the exclusive licensee of
the Energizer® brand in North and Latin Americas for rechargeable batteries and battery packs for camcorders, cordless
phones, digital cameras, DVD players and other power supply devices. As consideration for Technuity, the Company paid
the following:
Purchase Price (net of cash acquired) $ 20,373
Final working capital credit (317)
Acquisition related costs 1,131
Total Purchase Price $ 21,187
In addition, a minimum working capital payment, as defined in the agreement, and a maximum contingent payment of $1,000
may be due by the Company if certain sales and gross margin targets are met for a period of twelve months after the
acquisition date. The sales and gross margin targets require that net sales exceeds $26.5 million and gross margin exceeds
$7.65 million, as defined in the purchase agreement. As of February 28, 2009, no amount was accrued or paid for the
contingency payment as the sales and gross margin targets were not met. The contingency period has now expired.
The results of operations of this acquisition have been included in the consolidated financial statements from the date of
acquisition. The purpose of this acquisition was to further strengthen our accessory product lines and core offerings, to be the
exclusive licensee of the Energizer® brand in North and Latin Americas for rechargeable batteries and power supply systems
and to increase the Company’s market share in the consumer electronics accessory business.
The following summarizes the final allocation of the purchase price to the fair value of the assets acquired and liabilities
assumed at the date of acquisition:
54
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠