Financing Arrangements (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 57 Months Ended | | | | | 9 Months Ended | | | | | | 3 Months Ended | 57 Months Ended | | 3 Months Ended | | 3 Months Ended | | | | 3 Months Ended | | | | | | | | | | | 3 Months Ended |
Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2012 | 31-May-12 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Mar. 13, 2017 | Feb. 28, 2013 | Mar. 14, 2012 | Nov. 30, 2013 | Feb. 28, 2013 | Nov. 30, 2013 | Feb. 28, 2013 | Oct. 23, 2000 | Nov. 30, 2013 | Feb. 28, 2013 | Mar. 30, 2008 | 31-May-12 | 31-May-12 | Mar. 13, 2017 | Mar. 14, 2012 | Mar. 14, 2012 | Mar. 14, 2012 | Mar. 14, 2012 | Mar. 14, 2012 | Mar. 14, 2012 | Mar. 14, 2012 | 31-May-12 | Apr. 30, 2013 | Apr. 30, 2013 | 31-May-12 | 31-May-12 | 31-May-12 | 31-May-12 | Nov. 30, 2013 | Feb. 28, 2013 | Jan. 09, 2012 | 31-May-13 | Nov. 30, 2013 | Jul. 15, 2012 | Nov. 30, 2013 | Feb. 28, 2013 | Nov. 30, 2013 | Feb. 28, 2013 | Nov. 30, 2013 | Feb. 28, 2013 | Jan. 03, 2013 | Nov. 30, 2013 | 31-May-12 |
USD ($) | USD ($) | USD ($) | USD ($) | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Domestic [Member] | Domestic [Member] | Foreign [Member] | Foreign [Member] | Foreign [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Cash Paid [Member] | Mortgage Assumed [Member] | Commercial Loan [Member] | Commercial Loan [Member] | Letter of Credit [Member] | Loans [Member] | Revolving Credit Facility [Member] | United States of America, Dollars | Multicurrency [Member] | VOXX International (Germany) GmbH [Member] | LIBOR Rate Loan [Member] | LIBOR Rate Loan [Member] | LIBOR Rate Loan [Member] | LIBOR Rate Loan [Member] | LIBOR Rate Loan [Member] | Alternate Base Rate Loan [Member] | Alternate Base Rate Loan [Member] | Schwaiger [Member] | Schwaiger [Member] | Schwaiger [Member] | Hirschmann [Member] | Hirschmann [Member] | Hirschmann [Member] | Hirschmann [Member] | Hirschmann [Member] | Klipsch [Member] | Klipsch [Member] | Klipsch [Member] | Audiovox Germany [Member] | Audiovox Germany [Member] | Audiovox Germany [Member] | Interest Rate Contract [Member] |
| | | Rate | | Rate | | | | | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Bank Loan Obligations [Member] | Bank Loan Obligations [Member] | Bank Loan Obligations [Member] | Commercial Loan [Member] | Commercial Loan [Member] | Commercial Loan [Member] | USD ($) | USD ($) | | USD ($) | USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | United States of America, Dollars | Mortgages [Member] | Commercial Loan [Member] | United States of America, Dollars | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Rate | Rate | EUR (€) | Line of Credit [Member] | Line of Credit [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Notes Payable to Banks [Member] | Mortgages [Member] | Mortgages [Member] | Loans [Member] | Rate |
| | | | | | | | | | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | | | | | | | | USD ($) | USD ($) | Revolving Credit Facility [Member] | Rate | Rate | Revolving Credit Facility [Member] | Rate | Rate | Rate | Rate | USD ($) | USD ($) | Rate | | | | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Rate | USD ($) | |
| | | | | | | | | | | | Rate | | Rate | | | Rate | | | | | | | | | | USD ($) | | | Rate | | | | | | | | | | | | | | | | | | | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Long-term Debt | $135,010,000 | ' | ' | ' | ' | $135,010,000 | ' | ' | $175,016,000 | ' | $115,250,000 | [1] | $154,335,000 | [1] | $1,869,000 | [2] | $1,341,000 | [2] | € 20,000,000 | [2] | $0 | [3] | $695,000 | [3] | € 5,000,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,749,000 | [4] | $1,888,000 | [4] | ' | ' | ' | ' | $0 | [5] | $0 | [5] | $8,124,000 | [6] | $8,388,000 | [6] | $649,000 | $8,369,000 | [7] | ' | $8,018,000 | [7] | ' |
Current portion of long-term debt | 19,047,000 | ' | ' | ' | ' | 19,047,000 | ' | ' | 26,020,000 | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Long-term Debt, Excluding Current Maturities | 115,963,000 | ' | ' | ' | ' | 115,963,000 | ' | ' | 148,996,000 | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility Sublimit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | 25,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,000,000 | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | 75,000,000 | ' | ' | 130,000,000 | 80,000,000 | 50,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | 6,000,000 | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Portion of Accounts Receivable Eligible for Factoring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | 60.00% | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Guaranteed Purchase Price of Factored Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | 85.00% | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Contingent Purchase Price of Factored Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | 15.00% | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Amortization of Financing Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Amount Outstanding | 115,000,000 | ' | ' | ' | ' | 115,000,000 | ' | ' | ' | 148,000,000 | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Frequency of Payment and Payment Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | '20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Periodic Payment, Principal | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Limited Availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Seasonal Availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 2.28% | ' | ' | ' | ' | ' | | ' | | 2.10% | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | 1.25% | 2.25% | 0.25% | 1.25% | ' | | ' | | ' | 2.00% | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Line of Credit Facility, Portion Attributable to Interest Rate Swap Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | 60,000,000 | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Accounts Receivable Factoring Arrangement, Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | 0.20% | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Accumulated Amortization, Deferred Finance Costs | 344,000 | ' | 302,000 | ' | ' | 1,033,000 | 907,000 | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | 0.00% | [2] | ' | | ' | | 4.82% | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.52% | 0.52% | ' | ' | ' | ' | ' | | ' | | 3.75% | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | 2.85% | ' | | ' |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | ' | ' | ' | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | 9,585,000 | 15,793,000 | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Mortgage Loans on Real Estate, New Mortgage Loans | ' | 7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | 7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Mortgage Loans on Real Estate, Interest Rate | ' | ' | ' | 5.85% | 3.92% | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | 3.92% |
Mortgage Loans on Real Estate | $7,475,000 | ' | ' | ' | ' | $7,475,000 | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | | ' | | ' | ' | 2.20% | ' | ' | | ' | | ' | | ' | | ' | ' | | ' | ' | | ' |
|
[1] | , the Company has a Credit Facility (the "Facility") with Wells Fargo. The Facility provides for senior secured credit facilities in an aggregate principal amount of $205 million, consisting of a revolving credit facility of $130 million (comprised of a U.S. revolving credit facility of $80 million and a $50 million multicurrency revolving facility, of which up to the equivalent of $50 million is available only to VOXX International (Germany) GmbH in euros); and a five year term loan facility in the aggregate principal amount of $75 million. $110 million of the U. S. and Euro revolving credit facility is available on a revolving basis for five years from the closing date. An additional $20 million was available during the periods from September 1, 2012 through January 31, 2013 and from September 1, 2013 through November 30, 2013. The Amended Facility includes a $25 million sublimit for issuers of letters of credit for domestic borrowings and a $10 million sublimit for Swing Loans.Generally, the Company may designate specific borrowings under the Facility as either Alternate Base Rate Loans or LIBOR Rate Loans, except that Swing Loans may only be designated as Alternate Base Rate Loans. VOXX International (Germany) GmbH may only borrow euros, and only as LIBOR rate loans. Loans designated as LIBOR Rate Loans shall bear interest at a rate equal to the then applicable LIBOR rate plus a range of 1.25 - 2.25% based upon leverage, as defined in the agreement. Loans designated as Alternate Base Rate loans shall bear interest at a rate equal to the base rate plus an applicable margin ranging from 0.25 - 1.25% based on excess availability in the borrowing base. As of NovemberB 30, 2013, the interest rate on the Facility was 2.28%.The $75 million five year term loan facility is payable in twenty quarterly installments of principal commencing May 31, 2012, each in the amount of $3,750. All other amounts outstanding under the Facility will mature and become due on March 13, 2017. The Company may prepay any amounts outstanding at any time, subject to payment of certain breakage and redeployment costs relating to LIBOR Rate Loans. The commitments under the Facility may be irrevocably reduced at any time without premium or penalty. On April 30, 2013, the Company entered into two interest rate swap agreements to hedge LIBOR interest rate exposure related to a portion of the Facility borrowings. The first interest rate swap agreement applies to interest payments related to the first $60 million of the term loan portion of the Facility and the second swap agreement applies to interest payments related to the first $25 million of the U.S. revolving credit facility balance. The interest rate swap agreements fix the LIBOR rates for these two portions of the Facility at 0.515% and 0.518%, respectively, and mature on February 28, 2017 and April 29, 2016, respectively. For the quarter ended NovemberB 30, 2013, these cash flow hedges were deemed to be highly effective. Refer to Note 3 for the unrecognized gain recorded for the quarter ended NovemberB 30, 2013 and the interest rate swap asset balance at NovemberB 30, 2013.The Facility requires compliance with financial covenants calculated as of the last day of each fiscal quarter, consisting of a Total Leverage Ratio, a Consolidated EBIT to Consolidated Interest Expense Ratio and Capital Expenditures.The Facility contains covenants that limit the ability of certain entities of the Company to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or exit a substantial portion of their respective businesses; (iv) make any material change in the nature of their business; (v) prepay or otherwise acquire indebtedness; (vi) cause any Change of Control; (vii) make any Restricted Payments; (viii) change their fiscal year or method of accounting; (ix) make advances, loans or investments; (x) enter into or permit any transaction with an Affiliate of certain entities of the Company; or (xi) use proceeds for certain items (including capital expenditures). As of NovemberB 30, 2013, the Company was in compliance with all debt covenants.The Facility contains customary events of default, including, without limitation: failure to pay principal thereunder when due; failure to pay any interest or other amounts thereunder for a period of three (3) business days after becoming due; failure to comply with certain agreements or covenants contained in the Facility; failure to satisfy certain judgments against a Loan Party or any of its Subsidiaries (other than Immaterial Subsidiaries); certain insolvency and bankruptcy events; and failure to pay when due certain other indebtedness in an amount in excess of $5 million.The Obligations under the Facility are secured by a general lien on and security interest in the assets of certain entities of the Company, including accounts receivable, equipment, substantially all of the real estate, general intangibles and inventory provided that the assets of Hirschmann Car Communication GmbH and the foreign guarantors will only secure the Foreign Obligations. All Guarantors other than subsidiaries of Hirschmann Car Communication GmbH have jointly and severally guaranteed (or will jointly and severally guarantee) the obligations of any and all Credit Party Obligations, and each Foreign Guarantor will jointly and severally guarantee the obligations of Hirschmann Car Communications GmbH under the Credit Agreement (i.e., the Foreign Obligations).On March 14, 2012, the Company borrowed approximately $148 million under this credit facility as a result of its stock purchase agreement related to Hirschmann. As of NovemberB 30, 2013, approximately $115 million was outstanding under the line.The Company incurred debt financing costs related to this Facility and a previous facility, which was amended and restated, totaling approximately $6,400. These deferred financing costs have been included in other assets on the accompanying consolidated balance sheet and are being amortized through interest and bank charges over the five year term of the Facility. During the three and nine months ended NovemberB 30, 2013, the Company amortized $344 and $1,033 of these costs, respectively, compared to $302 and $907 during the three and nine months ended NovemberB 30, 2012, respectively, which are recorded in interest expense. |
[2] | Foreign bank obligations include a financing arrangement entered into in October 2000, totaling €20,000 and consisting of a Euro accounts receivable factoring arrangement and a Euro Asset-Based Lending ("ABL") (up to 60% of eligible non-factored accounts receivable) credit facility for the Company's subsidiary, Audiovox Germany, which expires on NovemberB 1, 2014. Selected accounts receivable are purchased from the Company on a non-recourse basis at 85% of face value and payment of the remaining 15% upon receipt from the customer of the balance of the receivable purchased. The activity under the factoring agreement is accounted for as a sale of accounts receivable. The rate of interest is the three month Euribor plus 1.9% (2.1% at NovemberB 30, 2013), and the Company pays 0.2% of its gross sales as a fee for the accounts receivable factoring arrangement. As of NovemberB 30, 2013, the amount of non-factored accounts receivable exceeded the amounts outstanding under this obligation. |
[3] | On March 30, 2008, Audiovox Germany entered into a new €5,000 term loan agreement. This agreement was for a five year term with a financial institution and was used to repay the Audiovox Germany intercompany debt to VOXX International Corporation. Interest accrued at a fixed rate of 4.82% and payments under the term loan were made in two semi-annual installments. The loan ended on March 31, 2013 and has been fully paid. |
[4] | Schwaiger MortgageB In January 2012, the Company's Schwaiger subsidiary purchased a building, entering into a mortgage note payable. The mortgage note bears interest at 3.75% and will be fully paid by December 2019. |
[5] | Hirschmann Line of CreditOn July 15, 2012, Hirschmann entered into an agreement for a €6,000 working capital line of credit with a financial institution. The agreement is payable on demand and is mutually cancelable. The rate of interest is the three month Euribor plus 2% (2.2% at NovemberB 30, 2013) and the line of credit is guaranteed by VOXX International Corporation. There was no outstanding balance on the line of credit as of NovemberB 30, 2013 and FebruaryB 28, 2013. |
[6] | Klipsch MortgagesIncluded in this balance is a mortgage on a facility included in the assets acquired in connection with the Klipsch transaction on March 1, 2011 and assumed by Voxx. The balance at NovemberB 30, 2013 is $649 and will be fully paid by the end of Fiscal 2018.On April 20, 2012, the Company purchased the building housing Klipsch's headquarters in Indianapolis, IN for approximately $10,900. The Company paid $3,100 cash at closing and assumed the mortgage held by the seller, Woodview LLC, in the amount of $7,800. Woodview LLC was a related party, as certain members are executives of Klipsch.B The mortgage was due in June 2013 bearing interest at 5.85%. On June 3, 2013, the Company refinanced this mortgage with Wells Fargo for an amount totaling $7,800. The new mortgage is due in May 2023 and the interest rate is equal to the 1-month LIBOR plus 2.25%. Simultaneously on June 3, 2013, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure and will pay a fixed rate of 3.92% under the swap agreement. The balance of the mortgage at NovemberB 30, 2013 was $7,475. |
[7] | Audiovox Germany LoansIncluded in this balance is a mortgage on the land and building housing Audiovox Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bears interest at 2.85%, payable in twenty-six quarterly installments through June 2019. |