Balance Sheet Information | 6 Months Ended |
Aug. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Balance Sheet Information | ' |
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2. Balance Sheet Information |
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Cash and Cash Equivalents |
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The following table summarizes our cash and cash equivalents (in thousands): |
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| | August 31, | | | February 28, | | | | | | | | | |
2014 | 2014 | | | | | | | | |
Cash | | $ | 61,904 | | | $ | 41,331 | | | | | | | | | |
Money market funds | | | 94,655 | | | | 94,548 | | | | | | | | | |
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| | $ | 156,559 | | | $ | 135,879 | | | | | | | | | |
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Fair Value Measurements |
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We determine fair value based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: |
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Level 1: | | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | | | | | | | | | | | | | | |
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Level 2: | | Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | | | | | | | | | | | | | | |
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Level 3: | | Inputs are unobservable inputs based on our assumptions. | | | | | | | | | | | | | | |
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Cash equivalents are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. We have no financial assets or liabilities measured, on a recurring basis, utilizing Level 2 inputs. We estimated the fair value of our Level 3 contingent consideration liability based a weighted probability assessment of achieving the earnout related to the acquisition of C2C Systems Limited (“C2C”). Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions. Refer to Note 3 to Condensed Consolidated Financial Statements for further information. |
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The following table summarizes, for assets or liabilities measured at fair value, the respective classification by level of input within the fair value hierarchy (in thousands): |
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| | August 31, 2014 | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Cash equivalents: Money market funds | | $ | 94,655 | | | $ | — | | | $ | — | | | $ | 94,655 | |
Other accrued liabilities (current): | | | | | | | | | | | | | | | | |
Contingent consideration liability | | $ | — | | | $ | — | | | $ | 1,035 | | | $ | 1,035 | |
Other long-term liabilities: | | | | | | | | | | | | | | | | |
Contingent consideration liability | | $ | — | | | $ | — | | | $ | 1,889 | | | $ | 1,889 | |
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| | 28-Feb-14 | |
| | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Cash equivalents: | | | | | | | | | | | | | | | | |
Money market funds | | $ | 94,548 | | | $ | — | | | $ | — | | | $ | 94,548 | |
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Inventories, Net |
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Inventories, net, consisted of the following (in thousands): |
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| | August 31, | | | February 28, | | | | | | | | | |
2014 | 2014 | | | | | | | | |
Raw materials | | $ | 2,677 | | | $ | 3,038 | | | | | | | | | |
Finished goods | | | 3,500 | | | | 3,759 | | | | | | | | | |
Reserves | | | (994 | ) | | | (1,149 | ) | | | | | | | | |
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| | $ | 5,183 | | | $ | 5,648 | | | | | | | | | |
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Deferred Costs |
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Deferred costs consisted of the following (in thousands): |
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| | August 31, | | | February 28, | | | | | | | | | |
2014 | 2014 | | | | | | | | |
Appliance | | $ | 38,491 | | | $ | 35,000 | | | | | | | | | |
Commissions | | | 16,091 | | | | 15,279 | | | | | | | | | |
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| | $ | 54,582 | | | $ | 50,279 | | | | | | | | | |
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Property and Equipment, Net |
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Property and equipment, net, consisted of the following (in thousands): |
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| | August 31, | | | February 28, | | | | | | | | | |
2014 | 2014 | | | | | | | | |
Land | | $ | 5,100 | | | $ | 5,100 | | | | | | | | | |
Building | | | 6,549 | | | | 6,549 | | | | | | | | | |
Computer hardware and software | | | 14,796 | | | | 11,711 | | | | | | | | | |
Vehicles, machinery and equipment | | | 2,685 | | | | 2,462 | | | | | | | | | |
Leasehold improvements | | | 2,989 | | | | 2,560 | | | | | | | | | |
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| | | 32,119 | | | | 28,382 | | | | | | | | | |
Accumulated depreciation and amortization | | | (9,889 | ) | | | (7,824 | ) | | | | | | | | |
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| | $ | 22,230 | | | $ | 20,558 | | | | | | | | | |
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Depreciation and amortization expense related to property and equipment was $1.2 million and $2.3 million for the three and six months ended August 31, 2014, respectively, and $0.8 million and $1.6 million for the three and six months ended August 31, 2013, respectively. |
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Accumulated Other Comprehensive Loss |
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The components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): |
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| | Foreign | | | Unrealized Gains | | | Total | | | | | |
Currency | (Losses) on | | | | |
Translation | Available-for- | | | | |
Adjustments | Sale Investments | | | | |
Balance as of February 28, 2014 | | $ | (817 | ) | | $ | — | | | $ | (817 | ) | | | | |
Other comprehensive income (loss) before reclassifications | | | (575 | ) | | | — | | | | (575 | ) | | | | |
Amounts reclassified from accumulated other comprehensive income (loss) | | | — | | | | — | | | | — | | | | | |
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Other comprehensive income (loss) | | | (575 | ) | | | — | | | | (575 | ) | | | | |
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Balance as of August 31, 2014 | | $ | (1,392 | ) | | $ | — | | | $ | (1,392 | ) | | | | |
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