| Component: (Network and Table) | |
|---|---|
| Network | 020 - Disclosure - Accounting Policies, by Policy (Policies) (http://addvantagetech.com/role/AccountingPoliciesByPolicy) |
| Table | Statement [Table] |
| Reporting Entity [Axis] | 0000874292 (http://www.sec.gov/CIK) |
| Scenario [Axis] | Scenario, Unspecified [Domain] |
| Statement [Line Items] | Period [Axis] |
|---|---|
2011-10-01 - 2012-09-30 | |
Consolidation, Policy [Policy Text Block] | Principles
of consolidation and segment reporting
The
consolidated financial statements include the accounts of
ADDvantage Technologies Group, Inc. and its
subsidiaries: Tulsat Corporation, Tulsat-Atlanta
LLC, ADDvantage Technologies Group of Nebraska, Inc. (dba
Tulsat-Nebraska), ADDvantage Technologies Group of Texas,
Inc. (dba Tulsat-Texas), NCS Industries,
Inc., ADDvantage Technologies Group of Missouri, Inc.
(dba ComTech Services) and Adams Global Communications,
LLC. All significant inter-company balances
and transactions have been eliminated in
consolidation. In addition, each subsidiary
represents a separate operating segment of the Company and is
aggregated for segment reporting purposes. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash
and cash equivalents
Cash
and cash equivalents includes demand and time deposits, money
market funds and other marketable securities with maturities
of three months or less when acquired. |
Receivables, Policy [Policy Text Block] | Accounts
receivable
Trade
receivables are carried at original invoice amount less an
estimate made for doubtful accounts. Management
determines the allowance for doubtful accounts by regularly
evaluating individual customer receivables and considering a
customer’s financial condition, credit history and
current economic conditions. Trade receivables are
written off against the allowance when deemed
uncollectible. Recoveries of trade receivables
previously written off are recorded when
received. The Company generally does not charge
interest on past due accounts. |
Inventory, Policy [Policy Text Block] | Inventory
valuation
Inventory
consists of new and used electronic components for the cable
television industry. Inventory is stated at the
lower of cost or market with market defined principally as
net realizable value. Cost is determined using the
weighted-average method. The Company records
inventory reserve provisions to reflect inventory at its
estimated realizable value based on a review of inventory
quantities on hand, historical sales volumes and technology
changes. These reserves are to provide for items that are
potentially slow-moving, excess or obsolete. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property
and equipment
Property
and equipment consists of software, office equipment,
warehouse and service equipment and buildings with estimated
useful lives generally of 3 years, 5 years, 10 years and 40
years, respectively. Depreciation is provided
using the straight-line method over the estimated
useful lives of the related assets. Leasehold
improvements are amortized over the remainder of the lease
agreement. Gains or losses from the ordinary sale
or retirement of property and equipment are recorded in other
income (expense). Repairs and maintenance costs
are generally expensed as incurred, whereas major
improvements are capitalized. Depreciation and
amortization expense was $0.4 million for each of the years
ended September 30, 2012, 2011 and 2010, respectively. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill
Goodwill
represents the excess of cost over fair value of the assets
of businesses acquired. Goodwill is evaluated at least
annually for impairment by first comparing our estimate of
the fair value of the reporting unit, or operating segment,
with the reporting unit’s carrying value, including
goodwill. If the carrying value of the reporting unit exceeds
its fair value, a computation of the implied fair value of
goodwill would then be compared to its related carrying
value. If the carrying value of the reporting unit’s
goodwill exceeds the implied fair value of goodwill, an
impairment loss would be recognized in the amount of the
excess. Judgments and assumptions are inherent in our
estimate of future cash flows used to determine the estimate
of the reporting unit’s fair value. The use of
alternate judgments and/or assumptions could result in the
recognition of different levels of impairment charges in the
financial statements. At September 30, 2012 and
2011, the fair value of our reporting unit exceeded its
carrying value, so goodwill was not impaired. |
Income Tax, Policy [Policy Text Block] | Income
taxes
The
Company provides for income taxes in accordance with the
liability method of accounting pursuant to ASC Topic 740,
Income
Taxes. Under this method, deferred tax
assets and liabilities are recognized for the future tax
consequences attributable to differences between the
financial statement carrying amounts of existing assets and
liabilities and their respective tax bases and tax
carryforward amounts. Management provides a
valuation allowance against deferred tax assets for amounts
which are not considered “more likely than not”
to be realized. |
Revenue Recognition, Policy [Policy Text Block] | Revenue
recognition and product line reporting
The
Company’s principal sources of revenues are from sales
of new, refurbished or used equipment and repair
services. As a distributor for several cable
television equipment manufacturers, the Company offers a
broad selection of inventoried and non-inventoried
products. The Company’s sales of different
products fluctuate from year to year as its customers’
needs change. Because the Company’s product
line sales change from year to year, the Company does not
report sales by product line for management reporting
purposes and does not disclose sales by product line in these
financial statements.
The
Company recognizes revenue for product sales when title
transfers, the risks and rewards of ownership have been
transferred to the customer, the fee is fixed and
determinable and the collection of the related receivable is
probable, which is generally at the time of
shipment. The stated shipping terms are FOB
shipping point per the Company's sales agreements with its
customers. Accruals are established for expected
returns based on historical activity. Revenue for
services is recognized when the repair is completed and the
product is shipped back to the customer. |
Derivatives, Policy [Policy Text Block] | Derivatives
FASB
ASC 815, Derivatives and
Hedging, requires that all derivatives, whether
designated in hedging relationships or not, be recorded on
the balance sheet at fair value. If the derivative
is designated as a fair value hedge, the changes in the fair
value of the derivative and of the hedged item attributable
to the hedged risk are recognized in earnings. If
the derivative is designated as a cash flow hedge, the
effective portions of the changes in the fair value of the
derivative are recorded in Other Comprehensive Income and are
recognized in the income statement when the hedged item
affects earnings. Ineffective portions of changes
in the fair value of cash flow hedges are recognized in other
income (expense). The Company's objective of
holding derivatives was to minimize the risk of interest rate
fluctuation. |
Shipping and Handling Cost, Policy [Policy Text Block] | Freight
Amounts
billed to customers for shipping and handling represent
revenues earned and are included in Net New Sales Income, Net
Refurbished Sales Income and Net Service Income in the
accompanying Consolidated Statements of Income and
Comprehensive Income. Actual costs for shipping
and handling of these sales are included in Cost of
Sales. |
Advertising Costs, Policy [Policy Text Block] | Advertising
costs
Advertising
costs are expensed as incurred. Advertising
expense was $0.2 million for each of the years ended
September 30, 2012, 2011 and 2010, respectively. |
Use of Estimates, Policy [Policy Text Block] | Management
estimates
The
preparation of financial statements in conformity with United
States generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual
results could differ from those estimates.
Any
significant, unanticipated changes in product demand,
technological developments or continued economic trends
affecting the cable industry could have a significant impact
on the value of the Company's inventory and operating
results. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations
of credit risk
The
Company holds cash with one major financial institution,
which at times exceeds FDIC insured
limits. Historically, the Company has not
experienced any losses due to such concentration of credit
risk.
Other
financial instruments that potentially subject the Company to
concentration of credit risk consist principally of trade
receivables. Concentrations of credit risk with
respect to trade receivables are limited because a large
number of geographically diverse customers make up the
Company’s customer base, thus spreading the trade
credit risk. The Company controls credit risk
through credit approvals, credit limits and monitoring
procedures. The Company performs in-depth credit
evaluations for all new customers but does not require
collateral to support customer receivables. The
Company had no customer in 2012, 2011 or 2010 that
contributed in excess of 10% of the total net
sales. The Company’s sales to foreign
(non-U.S. based customers) were approximately $5.7 million,
$4.5 million and $6.8 million for the years ended
September 30, 2012, 2011 and 2010,
respectively. In 2012, the Company purchased
approximately 24% of its inventory either directly from Cisco
or indirectly through their primary stocking distributor and
approximately 18% of its inventory from
Motorola. The concentration of suppliers of the
Company’s inventory subjects the Company to
risk. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Employee
stock-based awards
FASB
ASC 718, Stock
Compensation, requires all share-based payments to
employees, including grants of employee stock options, be
recognized in financial statements based on their grant date
fair value over the requisite service period. The
Company determines the fair value of the options issued,
using the Black-Scholes valuation model, and amortizes the
calculated value over the vesting term of the stock
options. Compensation expense for stock-based
awards is included in the operating, selling, general and
administrative expense section of the consolidated statements
of income and comprehensive income. |
Earnings Per Share, Policy [Policy Text Block] | Earnings
per share
Basic
earnings per share are based on the sum of the average number
of common shares outstanding and issuable restricted and
deferred shares. Diluted earnings per share
include any dilutive effect of stock options, restricted
stock and convertible preferred stock. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair
value of financial instruments
The
carrying amounts of accounts receivable and accounts payable
approximate fair value due to their short
maturities. The carrying value of the
Company’s line of credit and term debt approximates
fair value since their interest rates fluctuate periodically
based on a floating interest rate. |
New Accounting Pronouncements, Policy [Policy Text Block] | Impact
of recently issued accounting standards
In
June 2011, the FASB issued Accounting Standards Update
2011-05, Presentation of
Comprehensive Income. This Update amended
the provisions of FASB ASC 220-10 by eliminating the option
of reporting other comprehensive income in the statement of
changes in stockholders’ equity. Companies
will have the option of presenting net income and other
comprehensive income in a single, continuous statement of
comprehensive income or presenting two separate but
consecutive statements of net income and comprehensive
income. We have adopted the new disclosure
requirements in our consolidated financial statements.
In
September 2011, the FASB issued Accounting Standards Update
2011-08, Testing Goodwill
for Impairment. This Update amended the
provisions of FASB ASC 350-20-35 by allowing an entity the
option to make a qualitative evaluation about the likelihood
of goodwill impairment to determine whether it should
calculate the fair value of a reporting unit. The
amendments are effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after
December 15, 2011. Early adoption is permitted,
including for annual and interim goodwill impairment tests
performed as of a date before September 15, 2011, if an
entity’s financial statements for the most recent
annual or interim period have not yet been
issued. The adoption of this update to FASB ASC
350-20-35 did not have a material impact on our financial
statements. |