Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Jun. 11, 2020 | Aug. 31, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | VOXX International Corporation | ||
Entity Trading Symbol | VOXX | ||
Entity Central Index Key | 0000807707 | ||
Current Fiscal Year End Date | --02-29 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 29, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Class A Common Stock $.01 par value | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 0-28839 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 13-1964841 | ||
Entity Address City Or Town | Orlando | ||
Entity Address State Or Province | FL | ||
Entity Address Postal Zip Code | 32824 | ||
City Area Code | 800 | ||
Local Phone Number | 645-7750 | ||
Entity Address Address Line1 | 2351 J. Lawson Boulevard | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Amendment Flag | false | ||
Entity Public Float | $ 85,504,049 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Part III - (Items 10, 11, 12, 13 and 14) Proxy Statement for Annual Meeting of Stockholders to be filed on or before June 29, 2020. | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 21,656,976 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,260,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 37,425 | $ 58,236 |
Accounts receivable, net | 69,714 | 73,391 |
Inventory, net | 99,110 | 102,379 |
Receivables from vendors | 230 | 1,009 |
Prepaid expenses and other current assets | 10,885 | 10,449 |
Income tax receivable | 456 | 921 |
Total current assets | 217,820 | 246,385 |
Investment securities | 2,282 | 2,858 |
Equity investments | 21,924 | 21,885 |
Property, plant and equipment, net | 51,424 | 60,493 |
Operating lease, right of use asset | 3,143 | 0 |
Goodwill | 55,000 | 54,785 |
Intangible assets, net | 88,288 | 119,449 |
Deferred income tax assets | 52 | 79 |
Other assets | 1,638 | 2,877 |
Total assets | 441,571 | 508,811 |
Current liabilities: | ||
Accounts payable | 22,096 | 31,143 |
Accrued expenses and other current liabilities | 34,046 | 39,129 |
Income taxes payable | 1,523 | 1,349 |
Accrued sales incentives | 12,250 | 13,574 |
Current portion of long-term debt | 1,107 | 10,021 |
Total current liabilities | 71,022 | 95,216 |
Long-term debt, net of debt issuance costs | 6,099 | 5,776 |
Finance lease liabilities, less current portion | 720 | 516 |
Operating lease liabilities, less current portion | 2,391 | 0 |
Deferred compensation | 2,282 | 2,605 |
Deferred income tax liabilities | 3,828 | 5,284 |
Other tax liabilities | 1,225 | 1,332 |
Other long-term liabilities | 3,294 | 2,981 |
Total liabilities | 90,861 | 113,710 |
Commitments and contingencies (Note 15) | 0 | 0 |
Redeemable equity (Note 1(u)) | 2,481 | 0 |
Stockholders' equity: | ||
Preferred stock: | 0 | 0 |
Paid-in capital | 299,228 | 296,946 |
Retained earnings | 122,139 | 148,582 |
Accumulated other comprehensive loss | (19,055) | (16,944) |
Less: Treasury stock, at cost, 2,749,218 and 2,168,094 shares of Class A Common Stock at February 29, 2020 and February 28, 2019, respectively | (23,918) | (21,176) |
Less: Redeemable equity | (2,481) | 0 |
Total VOXX International Corporation stockholders' equity | 376,179 | 407,672 |
Non-controlling interest | (27,950) | (12,571) |
Total stockholders' equity | 348,229 | 395,101 |
Total liabilities and stockholders' equity | 441,571 | 508,811 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | 22 | 22 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | $ 244 | $ 242 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 29, 2020 | Feb. 28, 2019 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,749,218 | 2,168,094 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 24,306,194 | 24,106,194 |
Common stock, shares outstanding | 21,556,976 | 21,938,100 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,260,954 | 2,260,954 |
Common stock, shares outstanding | 2,260,954 | 2,260,954 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 394,889 | $ 446,816 | $ 507,092 |
Cost of sales | 285,113 | 325,399 | 374,795 |
Gross profit | 109,776 | 121,417 | 132,297 |
Operating expenses: | |||
Selling | 38,471 | 40,915 | 45,999 |
General and administrative | 68,928 | 66,935 | 78,957 |
Engineering and technical support | 21,602 | 24,387 | 26,440 |
Intangible asset impairment charges | 30,230 | 25,789 | 0 |
Restructuring expense | 0 | 4,588 | |
Total operating expenses | 159,231 | 162,614 | 151,396 |
Operating loss | (49,455) | (41,197) | (19,099) |
Other (expense) income: | |||
Interest and bank charges | (3,569) | (4,449) | (6,009) |
Equity in income of equity investee | 5,174 | 6,618 | 7,178 |
Gain on sale of real property (Note 11) | 4,057 | ||
Impairment of Venezuela investment properties | 0 | (3,473) | 0 |
Impairment of notes receivable | 0 | (16,509) | 0 |
Investment gain (loss) (Note 1(f)) | 775 | (530) | 1,416 |
Other, net | 2,078 | 577 | (7,590) |
Total other income (expense), net | 8,515 | (17,766) | (5,005) |
Loss from continuing operations before income taxes | (40,940) | (58,963) | (24,104) |
Income tax expense (benefit) from continuing operations | 882 | (6,131) | (17,445) |
Net loss from continuing operations | (41,822) | (52,832) | (6,659) |
Net income from discontinued operations, net of tax | 0 | 0 | 34,618 |
Net (loss) income | (41,822) | (52,832) | 27,959 |
Less: net loss attributable to non-controlling interest | (15,379) | (6,741) | (7,345) |
Net (loss) income attributable to VOXX International Corporation | (26,443) | (46,091) | 35,304 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (1,517) | (3,195) | 28,804 |
Derivatives designated for hedging, net of tax | (505) | 461 | (698) |
Pension plan adjustments, net of tax | (89) | (12) | 1,496 |
Unrealized holding gain on available-for-sale investment securities arising during the period, net of tax | 24 | 74 | |
Other comprehensive (loss) income, net of tax | (2,111) | (2,722) | 29,676 |
Comprehensive (loss) income attributable to VOXX International Corporation | $ (28,554) | $ (48,813) | $ 64,980 |
(Loss) earnings per share - basic: | |||
Continuing operations attributable to VOXX International Corporation | $ (1.08) | $ (1.89) | $ 0.03 |
Discontinued operations attributable to VOXX International Corporation | 1.43 | ||
Attributable to VOXX International Corporation | (1.08) | (1.89) | 1.45 |
(Loss) earnings per share - diluted: | |||
Continuing operations attributable to VOXX International Corporation | (1.08) | (1.89) | 0.03 |
Discontinued operations attributable to VOXX International Corporation | 1.41 | ||
Attributable to VOXX International Corporation | $ (1.08) | $ (1.89) | $ 1.44 |
Weighted-average common shares outstanding (basic) | 24,394,663 | 24,355,791 | 24,290,563 |
Weighted-average common shares outstanding (diluted) | 24,394,663 | 24,355,791 | 24,547,246 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest [Member] | Treasury Stock [Member] | Redeemable Equity [Member] |
Stockholders equity, beginning of period at Feb. 28, 2017 | $ 391,315 | $ 278 | $ 295,432 | $ 159,369 | $ (43,898) | $ 1,310 | $ (21,176) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 27,959 | 0 | 0 | 35,304 | 0 | (7,345) | 0 | 0 |
Other comprehensive income (loss), net of tax | 29,676 | 0 | 0 | 0 | 29,676 | 0 | 0 | 0 |
Exercise of stock options into shares of common stock | 300 | 0 | 300 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 868 | 0 | 663 | 0 | 0 | 205 | 0 | 0 |
Reclassification of stockholders' equity to redeemable equity (Note 1(u)) | 0 | |||||||
Stockholders equity, end of period at Feb. 28, 2018 | 450,118 | 278 | 296,395 | 194,673 | (14,222) | (5,830) | (21,176) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (52,832) | 0 | 0 | (46,091) | 0 | (6,741) | 0 | 0 |
Other comprehensive income (loss), net of tax | $ (2,722) | $ 0 | $ 0 | $ 0 | $ (2,722) | $ 0 | $ 0 | $ 0 |
Adjustment to common stock | (14) | (14) | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | $ 551 | $ 0 | $ 551 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Reclassification of stockholders' equity to redeemable equity (Note 1(u)) | 0 | |||||||
Stockholders equity, end of period at Feb. 28, 2019 | 395,101 | 264 | 296,946 | 148,582 | (16,944) | (12,571) | (21,176) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (41,822) | 0 | 0 | (26,443) | 0 | (15,379) | 0 | 0 |
Other comprehensive income (loss), net of tax | (2,111) | 0 | 0 | 0 | (2,111) | 0 | 0 | 0 |
Stock-based compensation expense | 548 | 2 | 2,282 | 0 | 0 | 0 | 0 | (1,736) |
Reclassification of stockholders' equity to redeemable equity (Note 1(u)) | (745) | 0 | 0 | 0 | 0 | 0 | 0 | (745) |
Repurchase of 581,124 shares of common stock | (2,742) | 0 | 0 | 0 | 0 | 0 | (2,742) | 0 |
Stockholders equity, end of period at Feb. 29, 2020 | $ 348,229 | $ 266 | $ 299,228 | $ 122,139 | $ (19,055) | $ (27,950) | $ (23,918) | $ (2,481) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2018 | |
Exercise of stock options into common stock | 38,750 | |
Repurchase of shares of common stock | 581,124 | 0 |
Common Stock [Member] | ||
Repurchase of shares of common stock | 581,124 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Cash flows from operating activities: | |||
Net loss from continuing operations | $ (41,822) | $ (52,832) | $ (6,659) |
Net income from discontinued operations | 0 | 0 | 34,618 |
Adjustments to reconcile net loss to net (used in) cash provided by operating activities: | |||
Depreciation and amortization | 13,278 | 12,344 | 15,112 |
Amortization of deferred financing costs | 822 | 822 | 822 |
Intangible asset impairment charges | 30,230 | 25,789 | 0 |
Bad debt expense | 720 | 507 | 929 |
Impairment of notes receivable | 0 | 16,509 | 0 |
(Gain) Loss on forward contracts | (491) | 7 | 6,975 |
Equity in income of equity investee | (5,174) | (6,618) | (7,178) |
Distribution of income from equity investees | 5,136 | 6,594 | 7,247 |
Deferred income tax benefit, net | (1,337) | (7,110) | (15,350) |
(Loss) gain on disposal of property, plant and equipment | (3,791) | 106 | (11) |
Non-cash compensation adjustment | (320) | (896) | 204 |
Non-cash stock-based compensation expense | 2,282 | 551 | 552 |
(Gain) loss on investment | (775) | 530 | (1,416) |
Gain on sale of Hirschmann | 0 | 0 | (36,118) |
Impairment of Venezuela investment properties | 0 | 3,473 | 0 |
Changes in operating assets and liabilities (net of assets and liabilities) acquired): | |||
Accounts receivable | 5,692 | 5,600 | 1,501 |
Inventory | 9,571 | 13,912 | 7,150 |
Receivables from vendors | 777 | (521) | 474 |
Prepaid expenses and other | 423 | 4,917 | (11,830) |
Investment securities-equity | 576 | 762 | 474 |
Accounts payable, accrued expenses, accrued sales incentives and other current liabilities | (17,378) | 480 | (22,139) |
Income taxes receivable/payable | 572 | (2,364) | (896) |
Net cash (used in) provided by operating activities | (1,009) | 22,562 | (25,539) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (2,914) | (4,761) | (6,238) |
Proceeds from sale of property, plant and equipment | 11,930 | 78 | 14 |
Proceeds from sale of long-term investment | 775 | 0 | 2,678 |
Issuance of notes receivable | 0 | (6,354) | (3,300) |
Purchase of acquired businesses, less cash acquired (Note 2) | (16,500) | 0 | (1,814) |
Proceeds from sale of Hirschmann, net of settlement of forward contracts | 0 | 0 | 170,020 |
Net cash (used in) provided by investing activities | (6,709) | (11,037) | 161,360 |
Cash flows from financing activities: | |||
Borrowings from bank obligations | 0 | 1,958 | 37,603 |
Repayments on bank obligations | (9,205) | (2,480) | (129,585) |
Principal payments on finance lease obligations | (646) | (402) | (565) |
Purchase of treasury stock | (2,742) | 0 | 0 |
Proceeds from exercise of stock options and warrants | 0 | 0 | 300 |
Net cash used in financing activities | (12,593) | (924) | (92,247) |
Effect of exchange rate changes on cash | (500) | (4,105) | 366 |
Net (decrease) increase in cash and cash equivalents | (20,811) | 6,496 | 43,940 |
Cash and cash equivalents at beginning of year | 58,236 | 51,740 | 7,800 |
Cash and cash equivalents at end of year | 37,425 | 58,236 | 51,740 |
Non-cash investing activities: | |||
Capital expenditures funded by long-term obligations | 0 | 360 | 0 |
Issuance of redeemable equity | 1,736 | 0 | 0 |
Reclassification of stockholders' equity to redeemable equity | 745 | 0 | 0 |
Acquisition of patents | 0 | 2,600 | 0 |
Investment in equity security exchanged for note receivable | 0 | 0 | 4,453 |
Acquisition of long-term investment | 0 | 0 | 547 |
Interest, excluding bank charges | 1,034 | 1,728 | 3,752 |
Income taxes (net of refunds) | $ 1,551 | $ 3,212 | $ 2,908 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1) Description of Business and Summary of Significant Accounting Policies a) Description of Business VOXX International Corporation ("Voxx," "We," "Our," "Us" or "the Company") is a leading international manufacturer and distributor in the Automotive Electronics, Consumer Electronics, and Biometrics industries. The Company has widely diversified interests, with more than 30 global brands that it has acquired and grown throughout the years, achieving a powerful international corporate image and creating a vehicle for each of these respective brands to emerge with its own identity. We conduct our business through seventeen wholly-owned subsidiaries: Audiovox Atlanta Corp., VOXX Electronics Corporation, VOXX Accessories Corp., VOXX German Holdings GmbH ("Voxx Germany"), Audiovox Canada Limited, Voxx Hong Kong Ltd., Audiovox International Corp., Audiovox Mexico, S. de R.L. de C.V. ("Voxx Mexico"), Code Systems, Inc., Oehlbach Kabel GmbH ("Oehlbach"), Schwaiger GmbH ("Schwaiger"), Invision Automotive Systems, Inc. ("Invision"), Klipsch Holding LLC ("Klipsch"), Omega Research and Development, LLC ("Omega"), Voxx Automotive Corp., Audiovox Websales LLC, and VSM-Rostra LLC, as well as one majority-owned subsidiary, EyeLock LLC ("EyeLock"). We market our products under the Audiovox® brand name, other brand names and licensed brands, such as 808®, Acoustic Research®, Advent®, Car Link®, Chapman®, Code-Alarm®, Discwasher®, Energy®, Heco®, Invision®, Jamo®, Klipsch®, Mac Audio ™ On August 31, 2017, the Company completed its sale of Hirschmann Car Communication GmbH and its subsidiaries. See Note 2 for more details of this transaction. The Company's fiscal year ends on the last day of February. b) Principles of Consolidation, Reclassifications and Accounting Principles The consolidated financial statements and accompanying notes include the financial statements of VOXX International Corporation and its wholly and majority-owned subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as defined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company follows FASB Accounting Standards Codification ("ASC") 810-10-45-21 to report a non-controlling interest in the consolidated balance sheets within the equity section, separately from the Company’s retained earnings. Non-controlling interest represents the non-controlling interest holder’s proportionate share of the equity of the Company’s majority-owned subsidiary, EyeLock. Non-controlling interest is adjusted for the non-controlling interest holder’s proportionate share of the earnings or losses and other comprehensive income (loss), if any, and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance. Equity investments in which the Company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method. The Company's share of its equity method investee's earnings or losses is included in Other (expense) income in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company eliminates its pro rata share of gross profit on sales to its equity method investee for inventory on hand at the investee at the end of the year. Investments in which the Company does not exercise significant influence over the investee, and which do not have readily determinable fair values, are accounted for under the cost method. Earnings per share amounts for continuing and discontinued operations are computed independently. As a result, the sum of the per share amounts may not equal the total. Effective March 1, 2019, the Company revised its reporting segments to better reflect the way the Company now manages its business. Prior year segment amounts have been reclassified to conform to the current presentation (see Note 13). c) Use of Estimates The preparation of these consolidated financial statements requires the Company to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses. Such estimates include revenue recognition; accrued sales incentives; the allowance for doubtful accounts; inventory valuation; valuation of long-lived assets; valuation and impairment assessment of goodwill, trademarks and other intangible assets; warranty reserves; stock-based compensation; recoverability of deferred tax assets; and the reserve for uncertain tax positions at the date of the consolidated financial statements. Actual results could differ from those estimates. d) Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds with original maturities of three months or less when purchased. Cash and cash equivalents amounted to $37,425 and $58,236 at February 29, 2020 and February 28, 2019, respectively. The Company places its cash and cash equivalents in institutions and funds of high credit quality. Many of its balances are in excess of government insurance. We perform periodic evaluations of these institutions and funds. Cash amounts held in foreign bank accounts amounted to $3,396 and $325 at February 29, 2020 and February 28, 2019, respectively, none of which would be subject to United States federal income taxes if made available for use in the United States. The Tax Cuts and Jobs Act provides a 100% participation exemption on dividends received from foreign corporations after January 1, 2018 as the United States has moved away from a worldwide tax system and closer to a territorial system for earnings of foreign corporations. e) Fair Value Measurements and Derivatives The Company applies the authoritative guidance on "Fair Value Measurements," which among other things, requires enhanced disclosures about investments that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. At February 29, 2020 and February 28, 2019, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The following table presents assets and liabilities measured at fair value on a recurring basis at February 29, 2020: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 37,425 $ 37,425 $ — Derivatives Designated for hedging $ (476 ) $ — $ (476 ) Investment securities: Mutual funds $ 2,282 $ 2,282 $ — Total investment securities $ 2,282 $ 2,282 $ — The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2019: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 58,236 $ 58,236 $ — Derivatives Designated for hedging $ 88 $ — $ 88 Investment securities: Mutual funds $ 2,858 $ 2,858 $ — Total investment securities $ 2,858 $ 2,858 $ — The carrying value of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations and long-term debt approximates fair value because of either (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates, or (iii) the stated or implicit interest rate approximates the current market rates or are not materially different than market rates. Non-financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired in a business combination or property and equipment that are determined to be impaired. As of February 29, 2020, certain non-financial assets were measured at fair value subsequent to their initial recognition. See Note 1(k) for the discussion of the impairment of certain intangible assets. Derivative Instruments The Company's derivative instruments include forward foreign currency contracts utilized to hedge a portion of its foreign currency inventory purchases. The Company also has an interest rate swap agreement as of February 29, 2020 that hedges interest rate exposure related to the forecasted outstanding balance of its Florida Mortgage with monthly payments due through March 2026. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). Open foreign currency contracts are classified in the balance sheet according to their terms. There are currently no open forward foreign currency contracts at February 29, 2020. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of our interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. The interest rate swap is classified in the balance sheet as either a non-current asset or non-current liability based on the fair value of the instrument at the end of the period. The swap agreement related to the Company's Florida Mortgage locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the mortgage. Financial Statement Classification The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 29, 2020 and February 28, 2019 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 29, 2020 February 28, 2019 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 172 Interest rate swap Other long-term liabilities (476 ) (84 ) Total derivatives $ (476 ) $ 88 Cash flow hedges It is the Company's policy to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company's derivative instruments are expected to be highly effective. On March 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities During Fiscal 2020, the Company did not enter into any new forward foreign currency contracts. All forward foreign currency contracts entered into during Fiscal 2019 have been settled as of February 29, 2020 and were designated as cash flow hedges. The current outstanding notional value of the Company's interest rate swap at February 29, 2020 was $7,614. For cash flow hedges, the effective portion of the gain or loss is reported as a component of Other comprehensive (loss) income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The net gain recognized in Other comprehensive (loss) income for foreign currency contracts is expected to be recognized in cost of sales within the next three months, as the last open contracts were settled on February 29, 2020. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. During the years ended February 29, 2020 and February 28, 2019, no contracts originally designated for hedge accounting were de-designated. The gain or loss on the Company’s interest rate swap is recorded in Other comprehensive (loss) income and subsequently reclassified into Interest and bank charges in the period in which the hedged transaction affects earnings. As of February 29, 2020, no contracts originally designated for hedge accounting were terminated. See Note 1(v) for information regarding activity related to cash flow hedges pertaining to discontinued operations. Activity related to cash flow hedges from continuing operations recorded during the twelve months ended February 29, 2020 and February 28, 2019 was as follows: February 29, 2020 February 28, 2019 Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified into Cost of Sales Gain (Loss) for Ineffectiveness in Other Income Gain (Loss) Recognized in Other Comprehensive Income Loss Reclassified into Cost of Sales Gain for Ineffectiveness in Other Income (a) Cash flow hedges Foreign currency contracts $ 331 $ 428 $ — $ 708 $ (13 ) $ 46 Interest rate swaps $ (392 ) $ — $ — $ (49 ) $ — $ — (a) Amount represents the ineffectiveness recorded in the prior fiscal year. Prior to the adoption of ASU 2017-12, hedge ineffectiveness (as defined under ASC 815) was recorded in Other income (loss). a) Investment Securities As of February 29, 2020 and February 28, 2019, the Company had the following investments: February 29, 2020 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,282 Total Marketable Equity Securities 2,282 Total Investment Securities $ 2,282 February 28, 2019 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,858 Total Marketable Equity Securities 2,858 Total Investment Securities $ 2,858 Long-Term Investments Equity Securities Marketable equity securities are measured and recorded at fair value with changes in fair value recorded in the Consolidated Statements of Operations and Comprehensive (Loss) Income. Mutual Funds The Company’s mutual funds are held in connection with its deferred compensation plan. Changes in the carrying value of these securities are offset by changes in the corresponding deferred compensation liability. Changes in fair value of equity securities are recorded within the Consolidated Statements of Operations and Comprehensive (Loss) Income. Prior to the adoption of ASU 2016-01 in Fiscal 2019, in determining whether equity securities were other than temporarily impaired, the Company considered its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost, along with factors including the length of time each security had been in an unrealized loss position, the extent of the decline and the near-term prospect for recovery. Additionally, on a quarterly basis, the Company was required to make a qualitative assessment of whether the investment was impaired. No other-than-temporary losses were incurred for the year ended February 28, 2018. Investments Held at Cost, Less Impairment During Fiscal 2018, RxNetworks, a Canadian company in which Voxx held a cost method investment consisting of shares of the investee's preferred stock, was sold to a third party. In consideration for its holdings in RxNetworks, Voxx received cash, as well as a proportionate share of the value (consisting of common stock) in a newly formed subsidiary of RxNetworks, called Fathom Systems Inc. ("Fathom"), a start-up company. As a result of this transaction, Voxx recognized a gain of $1,416 for the year ended February 28, 2018. The cash proceeds were subject to a hold-back provision, which was not included in the calculation of the gain recognized in Fiscal 2018. During the fourth quarter of Fiscal 2019, Fathom repurchased all of the outstanding common stock of its shareholders for a price per share significantly below the value when issued. This resulted in a loss on Voxx's investment in Fathom of $530 for the year ended February 28, 2019. Voxx had no remaining investment or ownership in Fathom Systems Inc. subsequent to February 28, 2019. In August 2019, the Company received the proceeds that were held back in the Fiscal 2018 transaction to sell the RxNetworks investment, as the hold-back provision expired and the cash proceeds were released to Voxx. The Company recorded an investment gain of $775 for the year ended February 29, 2020 for these proceeds received. The Company held various notes receivable from 360fly, Inc. ("360fly"), designers and creators of 360° cameras and technology, aggregating $17,242 principal amount at February 28, 2019. Of the $17,242 notes receivable, $14,107 were convertible into preferred stock of 360fly, Inc. These notes receivable were senior secured notes and were collateralized by the intangible and tangible assets of 360fly, Inc. The notes bore interest at 8% per annum and were due on January 19, 2019. As all of the notes receivable were due from the same debtor, all the notes were deemed to have the same credit quality. The notes receivable were on a non-accrual status during the years ended February 28, 2019 and February 28, 2018, as payment of interest was not reasonably assured. The credit quality of the notes receivable was previously deemed to not present a significant risk of loss or default of the principal payments based upon on-going business developments. During the fourth quarter of Fiscal 2019, the credit quality of the debtor deteriorated. On January 23, 2019, the Company, as Collateral Agent for the senior secured lenders, and for itself, provided a Notice of Maturity, Default and Acceleration to 360fly, Inc., indicating that: (i) all the unpaid principal and accrued interest owed under all the outstanding notes with the Company became due as a result of uncured defaults in payment under the notes; and (ii) the Company, as Collateral Agent, would proceed with foreclosure of collateral, securing the notes, with a scheduled auction date of March 5, 2019. Notice of the auction was provided through public advertisement and online posting during the month of February 2019. Prior to February 28, 2019, the Company was in negotiations with other senior secured lenders of 360fly, seeking to establish a new company with the senior secured lenders ("Newco") for the purposes of acquiring 360fly's assets through a credit bid at the foreclosure sale. If the credit bid was successful, the Company planned to provide funding to Newco to maintain sufficient staff and related expenses to continue to develop products and associated technology for anticipated sales to prospective customers. 360fly was not able to secure any additional funding, meet its projections for January or February 2019, provide any assurances that the missed projections would be achieved or of further development with prospective customers, and ultimately ceased normal business operations. In addition, negotiations with other potential investors to purchase a portion of the Company's notes ceased. Based on the above events and conditions present at February 28, 2019, the Company determined that the notes receivable were uncollectible. As a result, the Company recorded an impairment charge for the year ended February 28, 2019 of $16,509 (net of reserves) as it was probable that the Company would not be, and was not, paid in accordance with the contractual terms of the notes, as all amounts were due on January 19, 2019. As the notes were collateral dependent notes, the estimated fair value of the collateral was compared to the carrying value of the notes. The fair value of the collateral, less cost to sell, was deemed to be zero at February 28, 2019, after consideration of the absence of potential bidders in the auction process, costs to sell the collateral at a future date, prospects for future revenue streams related to the collateral barring additional development expenditures, and the speculative nature of proceeds from a future sale. On March 5, 2019, the Company, as Collateral Agent, was the only bidder at the auction with a credit bid of $1,000 and was awarded the collateral. In late March 2019, the Company and the other secured lenders determined they would not attempt to continue the development of 360fly with the intangible assets acquired at auction. b) Revenue Recognition On March 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, and all the related amendments (“ASC Topic 606”), using the modified retrospective method. In addition, we elected to apply certain of the permitted practical expedients within the revenue recognition guidance and make certain accounting policy elections, including those related to significant financing components, sales taxes and shipping and handling activities. Most of the changes resulting from the adoption of ASC Topic 606 on March 1, 2018 were changes in presentation within the Consolidated Balance Sheet, and we made no adjustment to opening Retained Earnings. The adoption of ASC Topic 606 has not been material to our net income; however, adoption did increase the level of disclosures concerning our net sales. Results for reporting periods beginning March 1, 2018 are presented under the new guidance, while prior period amounts continue to be reported in accordance with previous guidance without revision. Revenue from Contracts with Customers The core principle of ASC Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We apply the FASB’s guidance on revenue recognition, which requires us to recognize the amount of revenue and consideration that we expect to receive in exchange for goods and services transferred to our customers. To do this, the Company applies the five-step model prescribed by the FASB, which requires us to: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy a performance obligation. We account for a contract or purchase order when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the product passes to the customer, which is upon shipment, unless otherwise specified within the customer contract or on the purchase order as delivery, and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations related to timing of product shipment that will be satisfied in different accounting periods. When that is the case, revenue is deferred until each performance obligation is met. Within our Automotive Electronics segment, while the majority of the contracts we enter into with Original Equipment Manufacturers (“OEM”) are long-term supply arrangements, the performance obligations are established by the enforceable contract, which is generally considered to be the purchase order. The purchase orders are of durations less than one year. As such, the Company applies the practical expedient in ASC paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. The Company has also elected the practical expedient in ASC 340-40-25-4, whereby the Company recognizes incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets the Company otherwise would have recognized is one year or less. Certain taxes assessed by governmental authorities on revenue producing transactions, such as value added taxes, are excluded from revenue and recorded on a net basis. Performance Obligations The Company’s primary source of revenue is derived from the manufacture and distribution of automotive electronic, consumer electronic, and biometric products. Our consumer electronic products primarily consist of finished goods sold to retail and commercial customers, consisting of premium audio and other consumer electronic products. Our automotive products are sold both to OEM and aftermarket customers. Our biometric products are primarily sold to retail and commercial customers. We recognize revenue for sales to our customers when transfer of control of the related good or service has occurred. All of our revenue was recognized under the point in time approach for the years ended February 29, 2020 and February 28, 2019. Contract terms with certain of our OEM customers could result in products and services being transferred over time as a result of the customized nature of some of our products, together with contractual provisions in the customer contracts that provide us with an enforceable right to payment for performance completed to date; however, under typical terms, we do not have the right to consideration until the time of shipment from our manufacturing facilities or distribution centers, or until the time of delivery to our customers. If certain contracts in the future provide the Company with this enforceable right of payment, the timing of revenue recognition from products transferred to customers over time may be slightly accelerated compared to our right to consideration at the time of shipment or delivery. Our typical payment terms vary based on the Our customers take delivery of goods, and they are recognized as revenue at the time of transfer of control to the customer, which is usually at the time of shipment, unless otherwise specified in the customer contract or purchase order. This determination is based on applicable shipping terms, as well as the consideration of other indicators, including timing of when the Company has a present right to payment, when physical possession of products is transferred to customers, when the customer has the significant risks and rewards of ownership of the asset, and any provisions in contracts regarding customer acceptance. While unit prices are generally fixed, we provide variable consideration for certain of our customers, typically in the form of promotional incentives at the time of sale. Depending on the different facts and circumstances, we utilize either the most likely amount or the expected value methods to estimate the effect of uncertainty on the amount of variable consideration to which we would be entitled. The most likely amount method considers the single most likely amount from a range of possible consideration amounts, while the expected value method is the sum of the probability-weighted amounts in a range of possible consideration amounts. Both methods are based upon the contractual terms of the incentives and historical experience with each customer. We record estimates for cash discounts, promotional rebates, and other promotional allowances in the period the related revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales and reserves for Customer Credits are presented within Accrued sales incentives on the Consolidated Balance Sheet. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales and costs associated with shipping and handling are included in cost of sales. We have concluded that our estimates of variable consideration are not constrained according to the definition within the standard. Additionally, the Company applies the practical expedient in ASC paragraph 606-10-25-18B and accounts for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment activity, rather than a separate performance obligation. With the adoption of ASC Topic 606, we reclassified certain amounts related to variable consideration. Under ASC Topic 606, we are required to present a refund liability and a return asset within the Consolidated Balance Sheet, whereas in periods prior to adoption, we presented the estimated margin impact of expected returns as a contra-asset within accounts receivable. The changes in the refund liability are reported in net sales, and the changes in the return asset are reported in cost of sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. See Note 14 for return asset and refund liability balances as of February 29, 2020 and February 28, 2019. We warrant our products against certain defects in material and workmanship when used as designed, which primarily range from 30 days to 3 years. We offer limited lifetime warranties on certain products, which limit the customer’s remedy to the repair or replacement of the defective product or part for the designated lifetime of the product, or for the life of the vehicle for the original owner, if it is an automotive product. We do not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. c) Accounts Receivable The majority of the Company's accounts receivable are due from companies in the retail, mass merchant and OEM industries. Credit is extended based on an evaluation of a customer's financial condition. Accounts receivable are generally due within 30 days - 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts outstanding longer than the contracted payment terms are considered past due. Accounts receivable is comprised of the following: February 29, 2020 February 28, 2019 Trade accounts receivable $ 72,419 $ 77,064 Less: Allowance for doubtful accounts 1,954 2,548 Allowance for cash discounts 751 1,125 $ 69,714 $ 73,391 The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customers' current credit worthiness, as determined by a review of their current credit information. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within management's expectations and the provisions established, the Company cannot guarantee it will continue to experience the same credit loss rates that have been experienced in the past. The Company writes off accounts receivable balances when collection efforts have been exhausted and deemed uncollectible. Our five largest customer balances comprise 24% of our accounts receivable balance as of February 29, 2020. A significant change in the liquidity or financial position of any one of these customers could have a material adverse impact on the collectability of accounts receivable and our results of operations. The Company has f |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Feb. 29, 2020 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions | 2) Acquisitions and Dispositions Acquisitions: Vehicle Safety Holdings Corp. On January 31, 2020, Voxx acquired certain assets and assumed certain liabilities of Vehicle Safety Holdings Corp. (“VSHC”) via an asset purchase agreement for a preliminary purchase price of $16,610, which includes $16,500 in cash and contingent consideration with a fair value of $110. Contingent consideration of up to a maximum of $750 is payable based upon the achievement of specified operating results, or the occurrence of certain events over the twelve-month period following the completion of the acquisition. VSHC’s results of operations have been included in the consolidated financial statements of Voxx, in our Automotive Electronics segment, from the date of acquisition. Net sales and income before taxes from VSHC included in our consolidated results for the fiscal year ended February 29, 2020 represented less than 1% of our consolidated results. The purpose of this acquisition was to expand the Company’s product offerings and market share, as VSHC is a leading developer, manufacturer, and distributor of safety electronics. The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: January 31, 2020 Assets acquired: Inventory $ 6,982 Accounts receivable 3,415 Right of use assets 483 Other current assets 145 Property and equipment 714 Customer relationships 5,460 Trademarks 560 Patented technology 280 Goodwill 215 Other non-current assets 3 Total assets acquired $ 18,257 Liabilities assumed: Accounts payable 757 Accrued expenses 219 Lease liabilities 483 Warranty accrual 188 Total $ 1,647 Total purchase price $ 16,610 The purchase allocation presented above is preliminary. We are in the process of refining the valuation of acquired assets and liabilities, including goodwill, and expect to finalize the purchase price allocation in the third quarter of Fiscal 2021. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets). Rosen Electronics LLC On April 18, 2017, Voxx acquired certain assets and assumed certain liabilities of Rosen Electronics LLC for cash consideration of $1,814. In addition, the Company agreed to pay a 2% fee related to future net sales of Rosen products for three years, which resulted in a contingent consideration of $530. Rosen's results of operations have been included in the consolidated financial statements of Voxx from the date of acquisition. The purpose of this acquisition was to increase the Company's market share and strengthen its intellectual property related to the rear seat entertainment market. The following summarizes the allocation of the purchase price for the fair value of the assets acquired and liabilities assumed at the date of acquisition: April 18, 2017 (as originally reported) Measurement Period Adjustments April 18, 2017 (as adjusted) Assets acquired: Inventory $ 2,314 (870 ) 1,444 Goodwill 10 870 880 Intangible assets including trademarks and customer relationships 520 - 520 Total assets acquired $ 2,844 $ - $ 2,844 Liabilities assumed: Warranty accrual 500 - 500 Total $ 500 $ - $ 500 Total purchase price $ 2,344 $ - $ 2,344 Dispositions: Hirschmann Car Communication GmbH On August 31, 2017 (the "Closing Date"), the Company completed its sale of Hirschmann Car Communication GmbH and its subsidiaries (collectively, “Hirschmann”) to a subsidiary of TE Connectivity Ltd ("TE"). The consideration received by the Company was €148,500. The purchase price, at the exchange rate as of the close of business on the Closing Date approximated $177,000. VOXX International (Germany) GmbH, the Company's German wholly-owned subsidiary, was the selling entity in this transaction. The Hirschmann subsidiary group, which was included within the Automotive segment, qualified to be presented as a discontinued operation in accordance with ASC 205-20 beginning in the Company's second quarter ending August 31, 2017. Voxx has not had any continuing involvement in the Hirschmann business subsequent to the Closing Date. Hirschmann and TE are not related parties of the Company subsequent to the deconsolidation of Hirschmann. In order to hedge the fluctuation in the exchange rate before closing, the Company entered into forward contracts totaling €148,500, which could be settled on dates ranging from August 31, 2017 through September 6, 2017. As the sale of Hirschmann closed on August 31, 2017, the Company settled all of the forward contracts on this date. The forward contracts were not designated for hedging and a total foreign currency loss of $(6,618) was recorded when the contracts were settled, within continuing operations for the year ended February 28, 2018. The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Consolidated Statements of Operations and Comprehensive (Loss) Income: Year ended February 28, 2018 Net sales $ 91,824 Cost of sales 63,610 Gross profit 28,214 Operating expenses: Selling 2,778 General and administrative 14,699 Engineering and technical support 7,920 Total operating expenses 25,397 Operating income from discontinued operations 2,817 Other (expense) income: Interest and bank charges (a) (279 ) Other, net 145 Total other expense of discontinued operations, net (134 ) Gain on sale of discontinued operations before taxes 36,118 Total income from discontinued operations before taxes 38,801 Income tax expense on discontinued operations (b) 4,183 Income from discontinued operations, net of taxes $ 34,618 Income per share - basic $ 1.43 Income per share - diluted $ 1.41 (a) Includes an allocation of consolidated interest expense and interest expense directly related to debt assumed by the buyer. The allocation of consolidated interest expense was based upon the ratio of net assets of the discontinued operations to that of the Consolidated Company. (b) The income tax expense on discontinued operations for the year ended February 28, 2018 was positively impacted by an income tax benefit related to the partial reversal of the Company’s valuation allowance as the Company utilized a significant portion of its tax attributes to offset the U.S. tax gain related to the sale of Hirschmann. The following table presents supplemental cash flow information of the discontinued operations: Year ended February 28, 2018 Operating activities: Depreciation and amortization expense $ 2,939 Stock-based compensation expense 50 Investing activities: Capital expenditures 2,652 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations 1,916 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Feb. 29, 2020 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | 3) Variable Interest Entities A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. Under ASC 810 “Consolidation,” an entity that holds a variable interest in a VIE and meets certain requirements would be considered to be the primary beneficiary of the VIE and required to consolidate the VIE in its consolidated financial statements. In order to be considered the primary beneficiary of a VIE, an entity must hold a variable interest in the VIE and have both: • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of, the VIE that could be potentially significant to the VIE. Effective September 1, 2015, Voxx acquired a majority voting interest in substantially all of the assets and certain specified liabilities of Eyelock, Inc. and Eyelock Corporation, a market leader of iris-based identity authentication solutions, through a newly formed entity, Eyelock LLC. The Company has issued EyeLock LLC a promissory note for the purposes of repaying protective advances and funding working capital requirements of the company. On June 2, 2020, this promissory note was amended and restated to allow EyeLock LLC to borrow up to maximum of $57,500. Through March 1, 2019, interest on the outstanding principal of the loan accrued at 10%. From March 1, 2019 forward, interest accrues at 2.5%. The amended and restated promissory note is due on August 31, 2020. The outstanding principal balance of this promissory note is convertible at the sole option of Voxx into units of EyeLock LLC. If Voxx chooses not to convert into equity, the outstanding loan principal of the amended and restated promissory note will be repaid at a multiple of 1.50 based on the repayment date. The agreement includes customary events of default and is collateralized by all of the property of EyeLock LLC. We have determined that we hold a variable interest in EyeLock LLC as a result of: • our majority voting interest and ownership of substantially all of the assets and certain liabilities of the entity; and • the loan agreement with EyeLock LLC, which has a total outstanding principal balance of $54,074 as of February 29, 2020. We concluded that we became the primary beneficiary of EyeLock LLC on September 1, 2015 in conjunction with the acquisition. This was the first date that we had the power to direct the activities of EyeLock LLC that most significantly impact the economic performance of the entity because we acquired a majority interest in substantially all of the assets and certain liabilities of EyeLock Inc. and EyeLock Corporation on this date, as well as obtained a majority voting interest as a result of this transaction. Although we are considered to have control over EyeLock LLC under ASC 810, as a result of our majority ownership interest, the assets of EyeLock LLC can only be used to satisfy the obligations of EyeLock LLC. As a result of our majority ownership interest in the entity and our primary beneficiary conclusion, we consolidated EyeLock LLC in our consolidated financial statements beginning on September 1, 2015. Prior to September 1, 2015, EyeLock Inc. and EyeLock Corporation were not required to be consolidated in our consolidated financial statements, as we concluded that we were not the primary beneficiary of these entities prior to that time. Assets and Liabilities of EyeLock LLC The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheet as of February 29, 2020 and February 28, 2019: February 29, 2020 February 28, 2019 Assets Current assets: Cash and cash equivalents $ - $ 3 Accounts receivable, net 147 363 Inventory, net 2,052 (27 ) Prepaid expenses and other current assets 313 322 Total current assets 2,512 661 Property, plant and equipment, net 69 120 Intangible assets, net 2,600 33,064 Other assets 76 253 Total assets $ 5,257 $ 34,098 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,086 $ 1,122 Interest payable to VOXX 9,994 8,729 Accrued expenses and other current liabilities 252 1,030 Due to VOXX 54,074 44,937 Total current liabilities 66,406 55,818 Other long-term liabilities 1,200 1,200 Total liabilities 67,606 57,018 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (103,765 ) (64,336 ) Total partners' deficit (62,349 ) (22,920 ) Total liabilities and partners' deficit $ 5,257 $ 34,098 The assets of EyeLock LLC can only be used to satisfy the obligations of EyeLock LLC. Revenue and Expenses of EyeLock LLC The following table sets forth the revenue and expenses of EyeLock LLC that were included in our Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended February 29, 2020, February 28, 2019, and February 28, 2018: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Net sales $ 476 $ 668 $ 335 Cost of sales 826 309 455 Gross profit (350 ) 359 (120 ) Operating expenses: Selling 710 1,160 1,893 General and administrative 4,625 4,986 6,792 Engineering and technical support 5,144 7,487 7,159 Intangible asset impairment charges (Note 1(k)) 27,402 - - Total operating expenses 37,881 13,633 15,844 Operating loss (38,231 ) (13,274 ) (15,964 ) Other (expense) income: Interest and bank charges (1,279 ) (4,013 ) (2,869 ) Other, net 81 — — Total other expense, net (1,198 ) (4,013 ) (2,869 ) Loss before income taxes (39,429 ) (17,287 ) (18,833 ) Income tax expense — — — Net loss $ (39,429 ) $ (17,287 ) $ (18,833 ) |
Receivables from Vendors
Receivables from Vendors | 12 Months Ended |
Feb. 29, 2020 | |
Receivables From Vendors [Abstract] | |
Receivables from Vendors | 4) Receivables from Vendors The Company has recorded receivables from vendors in the amount of $230 and $1,009 as of February 29, 2020 and February 28, 2019, respectively. Receivables from vendors primarily represent prepayments on product shipments and product reimbursements. |
Equity Investment
Equity Investment | 12 Months Ended |
Feb. 29, 2020 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Investment | 5) Equity Investment The Company has a 50% non-controlling ownership interest in ASA Electronics, LLC and Subsidiary ("ASA"), which acts as a distributor of mobile electronics specifically designed for niche markets within the Automotive industry, including RV’s; buses; and commercial, heavy duty, agricultural, construction, powersport, and marine vehicles. ASC 810 requires the Company to evaluate non-consolidated entities periodically, and as circumstances change, to determine if an implied controlling interest exists. During Fiscal 2020, the Company evaluated this equity investment and concluded that ASA is not a variable interest entity. ASA’s fiscal year end is November 30, 2019; however, the results of ASA as of and through February 29, 2020 have been recorded in the consolidated financial statements. The Company's share of income from ASA for the years ended February 29, 2020, February 28, 2019 and February 28, 2018 was $5,174, $6,618 and $7,178, respectively. In addition, the Company received cash distributions from ASA totaling $5,136, $6,594 and $7,247 during the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. Undistributed earnings from equity investments amounted to $16,598 and $16,559 at February 29, 2020 and February 28, 2019, respectively. Net sales transactions between the Company and ASA were $501, $390 and $315 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. Accounts receivable balances from ASA were $96 and $71 as of February 29, 2020 and February 28, 2019, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 29, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: February 29, 2020 February 28, 2019 Commissions $ 601 $ 640 Employee compensation 10,060 14,552 Professional fees and accrued settlements 1,703 2,172 Future warranty 3,241 3,090 Refund liability 3,779 4,415 Freight and duty 5,140 2,427 Royalties, advertising and other 9,522 11,833 Total accrued expenses and other current liabilities $ 34,046 $ 39,129 During the year ended February 28, 2019, the Company realigned certain businesses within its Consumer Accessories and Premium Audio segments to lower and contain overhead costs, as well as conducted an aggressive SKU rationalization program to streamline its consumer accessory product offerings, which resulted in total restructuring expenses of $4,588 for the year ended February 28, 2019. As of February 28, 2019, $3,833 of the Company's restructuring charges incurred had not yet been settled and were included within Accrued expenses and other current liabilities within employee compensation. The restructuring accrual consisted primarily of employee severance. During the year ended February 29, 2020, $3,196 of the accrual was settled and no additional restructuring charges were incurred. At February 29, 2020, the restructuring accrual within Accrued expenses and other current liabilities is $637. Included in royalties, advertising, and other in the table above as of February 29, 2020 and February 28, 2019 were accrued environmental charges of $405 and $454, respectively, related to soil contamination at one of the Company's operating facilities in Germany that remains in the process of being remediated at February 29, 2020. Charges incurred during year ended February 28, 2019 were estimated based on assessments asserted by a local government authority and preliminary estimates provided by a third-party engineering firm. This remediation is expected to be completed during Fiscal 2021. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 7) Financing Arrangements The Company has the following financing arrangements: February 29, 2020 February 28, 2019 Domestic credit facility (a) $ — $ — Florida mortgage (b) 7,614 8,112 Euro asset-based lending obligation - VOXX Germany (c) — 5,972 Euro asset-based lending obligation - Magnat (d) 607 727 Schwaiger mortgage (e) — 235 VOXX Germany mortgage (f) — 2,588 Total debt 8,221 17,634 Less: current portion of long-term debt 1,107 10,021 Long-term debt before debt issuance costs 7,114 7,613 Less: debt issuance costs 1,015 1,837 Total long-term debt $ 6,099 $ 5,776 a) Domestic Bank Obligations The Company has a senior secured credit facility ("the Credit Facility") with Wells Fargo Bank, N.A. (“Wells Fargo”) that provides for a revolving credit facility with committed availability of up to $140,000, which may be increased, at the option of the Company, up to a maximum of $175,000, and a term loan in the amount of $15,000. The Credit Facility also includes a $15,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 7(b)). In conjunction with the sale of Hirschmann on August 31, 2017 (see Note 2), the Company repaid the outstanding balance of the term loan, which is not renewable. As of February 29, 2020, there was no balance outstanding under the revolving credit facility. The remaining availability under the revolving credit line of the Credit Facility was $84,436 as of February 29, 2020. All amounts outstanding under the Credit Facility will mature and become due on April 26, 2021; however, it is subject to acceleration upon the occurrence of an Event of Default (as defined in the Credit Agreement). 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 Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans under the Credit Facility designated as LIBOR Rate Loans shall bear interest at a rate equal to the then-applicable LIBOR Rate plus a range of 1.75% - 2.25%. Loans under the Credit Facility designated as Base Rate Loans shall bear interest at a rate equal to the applicable margin for Base Rate Loans of 0.75% - 1.25%, as defined in the agreement. As of February 29, 2020, the weighted average interest rate on the Credit Facility was 5.50%. Provided the Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 12.5% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 12.5% for any consecutive 30 day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of February 29, 2020, the Company was not in a Compliance Period. The obligations under the loan documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles and inventory. The Company has guaranteed the obligations of the borrowers under the Credit Facility. On June 11, 2020, the Company amended the Credit Facility. Under the amendment, the committed availability of the revolving credit facility was revised to $127,500 and the maturity date of the facility was extended to April 26, 2022 (see Note 17). The Company has deferred financing costs related to the Credit Facility and a previous amendment and modification of the Credit Facility. These deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income over the five-year term of the Credit Facility. The Company amortized $791 during each of the years ended February 29, 2020, February 28, 2019 and February 28, 2018. Charges incurred on the unused portion of the Credit Facility and its predecessor revolving credit facility during the years ended February 29, 2020, February 28, 2019 and February 28, 2018 totaled $503, $519 and $404, respectively, and are included within Interest and Bank Charges on the Consolidated Statements of Operations and Comprehensive (Loss) Income. b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida (the “Construction Loan”). Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (3.18% at February 29, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The Company is in compliance with the financial covenants of the Florida Mortgage, which are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year term of the Florida Mortgage. The Company amortized $31 of these costs during each of the years ended February 29, 2020, February 28, 2019, and February 28, 2018. On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (see Note 1(e)). c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000, for the Company's subsidiary, VOXX Germany, which expires on July 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 29, 2020). As of February 29, 2020, there is no balance outstanding under this facility, as it was repaid using the proceeds from the sale of the Company’s real property in Pulheim, Germany (see Note 11). d ) Euro Asset-Based Lending Obligation - Magnat Foreign bank obligations also include an ABL credit facility for the Company’s subsidiary Magnat, which expires on December 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.10% (2.10% at February 29, 2020). e ) Schwaiger Mortgage In January 2012, the Company's Schwaiger subsidiary purchased a building, entering into a mortgage note payable. The mortgage note bore interest at 3.75% and was fully paid in December 2019. f ) VOXX Germany Mortgage This balance represented a mortgage on the land and building housing VOXX Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bore interest at 2.85%, payable in twenty-six quarterly installments with a final payment due in September 2019. The note was fully paid on September 30, 2019 in conjunction with the sale of the building (see Note 11). The following is a maturity table for debt and bank obligations outstanding at February 29, 2020 for each of the following fiscal years: 2021 $ 1,107 2022 500 2023 500 2024 500 2025 500 Thereafter 5,114 Total $ 8,221 The weighted-average interest rate on short-term debt was 2.72% for Fiscal 2020 and 2.31% for Fiscal 2019. Interest expense related to the Company's financing arrangements for the years ended February 29, 2020, February 28, 2019 and February 28, 2018 was $799, $951 and $2,700, respectively, of which $1,708 was related to the Credit Facility for the year ended February 28, 2018. For the years ended February 29, 2020 and February 28, 2019, none of the Company’s interest expense was related to the Credit Facility, as there was no outstanding balance during these years. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 ) Income Taxes The components of income (loss) before the provision (benefit) for income taxes are as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Domestic Operations $ (47,249 ) $ (49,984 ) $ (27,214 ) Foreign Operations 6,309 (8,979 ) 3,110 $ (40,940 ) $ (58,963 ) $ (24,104 ) The provision (benefit) for income taxes is comprised of the following: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Current (benefit) provision Federal $ (26 ) $ (54 ) $ (1,451 ) State 395 (401 ) 150 Foreign 1,824 1,392 1,814 Total current provision $ 2,193 $ 937 $ 513 Deferred (benefit) provision Federal $ (1,850 ) $ (4,772 ) $ (17,198 ) State (564 ) (392 ) (827 ) Foreign 1,103 (1,904 ) 67 Total deferred benefit $ (1,311 ) $ (7,068 ) $ (17,958 ) Total (benefit) provision Federal $ (1,876 ) $ (4,826 ) $ (18,649 ) State (169 ) (793 ) (677 ) Foreign 2,927 (512 ) 1,881 Total provision (benefit) $ 882 $ (6,131 ) $ (17,445 ) The effective tax rate before income taxes varies from the current statutory U.S. federal income tax rate as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Tax benefit at Federal statutory rates $ (8,598 ) 21.0 % $ (12,383 ) 21.0 % $ (7,891 ) 32.7 % State income taxes, net of Federal benefit (611 ) 1.5 (809 ) 1.4 (249 ) 1.0 Change in valuation allowance 4,218 (10.3 ) 6,164 (10.5 ) (2,546 ) 10.6 Change in tax reserves (52 ) - (697 ) 1.2 (2,443 ) 10.1 Non-controlling interest 3,229 (7.9 ) 1,416 (2.4 ) 2,404 (10.0 ) US effects of foreign operations 1,403 (3.4 ) 53 (0.1 ) 614 (2.5 ) Permanent differences and other 1,170 (2.9 ) 636 (1.1 ) 1,190 (4.9 ) U.S. GILTI inclusion 710 (1.7 ) - — — — Foreign exchange loss — — — — (3,376 ) 14.0 Change in tax rate (151 ) 0.4 55 (0.1 ) (2,462 ) 10.2 Research & development credits (436 ) 1.1 (566 ) 1.0 (524 ) 2.2 Tax credits — — — — (2,162 ) 9.0 Effective tax rate $ 882 (2.2 )% $ (6,131 ) 10.4 % $ (17,445 ) 72.4 % The U.S. effects of foreign operations include differences in the statutory tax rate of the foreign countries as compared to the statutory tax rate in the U.S. On December 22, 2017, the U.S. government enacted comprehensive tax reform commonly referred to as the Tax Cuts and Jobs Act (“TCJA”). Under ASC 740, the effects of changes in tax rates and laws are recognized in the period which the new legislation is enacted. The TCJA made broad and complex changes to the U.S. tax code, including, but not limited to: (1) a reduction in the U.S. federal corporate tax rate from 35% to 21%; (2) changed the rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (3) permits acceleration of expensing on certain qualified property; (4) created a new limitation on deductible interest expense to 30% of tax adjusted EBITDA through 2021 and then 30% of tax adjusted EBIT thereafter; (5) eliminated the corporate alternative minimum tax; (6) provided further limitations on the deductibility of executive compensation under IRC §162(m) for tax years beginning after December 31, 2017 ; (7) required a one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system; and (8) made additional changes to the U.S. international tax rules including imposing a minimum tax on global intangible low taxed income (“GILTI”) and other base erosion anti-abuse provisions. In connection with the Company’s initial analysis of the impact of the TCJA during the fiscal year ended February 28, 2018, the Company recorded a decrease in its deferred tax assets and liabilities of $4,706 related to the remeasurement of the deferred tax assets and liabilities at the reduced U.S. federal tax rate of 21%. The Company was subject to a one-time transition tax based on the total post-1986 earnings and profits which was principally offset by the Company's tax attributes. The Company made a policy election to treat the income tax due on U.S. inclusion of the new GILTI provisions as a period expense when incurred. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act made various tax law changes including among other things (i) increased the limitation under IRC Section 163(j) for 2019 and 2020 to permit additional expensing of interest; (ii) enacted technical corrections so that qualified improvement property can be immediately expensed under IRC Section 168(k) and net operating losses arising in tax years beginning in 2017 and ending in 2018 can be carried back two years and carried forward twenty years without a taxable income limitation, as opposed to carried forward indefinitely; and (iii) made modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding tax years. The Company is currently evaluating the impact of the CARES Act. The Company may record a discrete tax provision with respect to the technical correction to net operating losses in the quarter ending May 31, 2020, the period in which the new legislation was enacted. Deferred income taxes reflect the net tax effects of temporary differences between the carrying values of assets and liabilities for financial reporting and tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: February 29, 2020 February 28, 2019 Deferred tax assets: Accounts receivable $ 266 $ 357 Inventory 1,764 2,374 Property, plant and equipment 1,554 1,900 Operating lease 773 - Accruals and reserves 2,641 4,008 Deferred compensation 556 632 Warranty reserves 698 699 Unrealized gains and losses 4,103 4,179 Partnership investments 5,142 496 Net operating losses 15,011 12,267 Foreign tax credits 3,805 3,805 Other tax credits 5,098 4,752 Deferred tax assets before valuation allowance 41,411 35,469 Less: valuation allowance (26,210 ) (22,026 ) Total deferred tax assets 15,201 13,443 Deferred tax liabilities: Intangible assets (16,795 ) (17,145 ) Prepaid expenses (1,304 ) (1,286 ) Operating lease (765 ) — Deferred financing fees (113 ) (217 ) Total deferred tax liabilities (18,977 ) (18,648 ) Net deferred tax liability $ (3,776 ) $ (5,205 ) In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating loss carryforwards can be utilized. We consider the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. Significant weight is given to positive and negative evidence that is objectively verifiable. The Company evaluates the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, we establish a valuation allowance. During Fiscal 2020, the Company limited the tax benefit on current year losses by increasing its U.S. valuation allowance recorded against U.S. deferred tax attributes with limited carryforward periods. In addition, the Company established a valuation allowance against deferred tax assets in certain foreign jurisdictions. The Company's valuation allowance increased by $4,184 during the year ended February 29, 2020. Any further increase or decrease in the valuation allowance could have a favorable or unfavorable impact on our income tax provision and net income in the period in which such determination is made. Notwithstanding the U.S. taxation of the deemed repatriated foreign earnings as a result of the one-time transition tax, the Company intends to continue to invest these earnings indefinitely outside the U.S. If these future earnings are repatriated to the U.S., or if the Company determines that such earnings will be remitted in the foreseeable future, the Company may be required to accrue U.S. deferred taxes (if any) and applicable withholding taxes. It is not practicable to estimate the tax impact of the reversal of the outside basis difference, or the repatriation of cash due to the complexity of its hypothetical calculation. As of February 29, 2020, the Company has U.S. federal net operating losses of $45,486, of which (i) $17,703 expire in Fiscal 2035 through 2037 if not utilized, (ii) $20,356 have an indefinite carryforward period available to offset 100% of future taxable income, and (iii) $7,427 have an indefinite carryforward period, but are only available to offset 80% of future taxable income. Based on the technical corrections of the CARES Act, federal net operating losses of $20,356 will expire in Fiscal 2038 if not utilized. The Company has capital loss carryforwards of approximately $14,112 which expire in 2024 and are only available to offset capital gain income. The Company has foreign tax credits of $3,231 which expire in tax years 2025 through 2028. The Company has research and development tax credits of $3,125, which expire in tax years 2035 through 2040. The Company has various foreign net operating loss carryforwards, state net operating loss carryforwards, and state tax credits that expire in various years and amounts through tax year 2040. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Balance at February 28, 2017 $ 10,844 Additions based on tax positions taken in the current and prior years 630 Settlements — Decreases based on tax positions taken in the prior years (2,945 ) Other 578 Balance at February 28, 2018 $ 9,107 Additions based on tax positions taken in the current and prior years 2,125 Settlements — Decreases based on tax positions taken in the prior years (1,923 ) Other (227 ) Balance at February 28, 2019 $ 9,082 Additions based on tax positions taken in the current and prior years 399 Settlements — Decreases based on tax positions taken in prior years (2,107 ) Other (139 ) Balance at February 29, 2020 $ 7,235 Of the amounts reflected in the table above at February 29, 2020, $7,235, if recognized, would reduce our effective tax rate. If recognized, $6,232 of the unrecognized tax benefits are likely to attract a full valuation allowance, thereby offsetting the favorable impact to the effective tax rate. Our unrecognized tax benefit non-current consolidated balance sheet liability, including interest and penalties, is $1,225. The Company records accrued interest and penalties related to income tax matters in the provision for income taxes in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. For the years ended February 29, 2020, February 28, 2019 and February 28, 2018, interest and penalties on unrecognized tax benefits were $15, $(389) and $(145), respectively. The balance as of February 29, 2020 and February 28, 2019 was $223 and $210, respectively. It is reasonably possible that unrecognized tax benefits will decrease by approximately $200 to $300 within the next 12 months. The Company, or one of its subsidiaries, files its tax returns in the U.S. and certain state and foreign income tax jurisdictions with varying statutes of limitations. The earliest years' tax returns filed by the Company that are still subject to examination by the tax authorities in the major jurisdictions are as follows: Jurisdiction Tax Year U.S. 2016 Netherlands 2015 Germany 2014 |
Capital Structure
Capital Structure | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Capital Structure | 9) Capital Structure The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,556,976 21,938,100 one Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 ten Ratably with Class A The holders of Class A and Class B common stock are entitled to receive cash or property dividends declared by the Board of Directors. The Board of Directors can declare cash dividends for Class A common stock in amounts equal to or greater than the cash dividends for Class B common stock. Dividends other than cash must be declared equally for both classes. Each share of Class B common stock may, at any time, be converted into one share of Class A common stock. Stock held in treasury by the Company is accounted for using the cost method which treats stock held in treasury as a reduction to total stockholders' equity and amounted to 2,749,218 and 2,168,094 shares at February 29, 2020 and February 28, 2019, respectively. The cost basis for subsequent sales of treasury shares is determined using an average cost method. In April 2019, the Company was authorized by the Board of Directors to increase the number of Class A Common Stock available for repurchase in the open market to 3,000,000. During the year ended February 29, 2020, the Company repurchased 581,124 shares of common stock for an aggregate cost of $2,742. During the years ended February 28, 2019 and February 28, 2018, the Company repurchased no shares. As of February 29, 2020, 2,418,876 shares of the Company's Class A common stock are authorized to be repurchased in the open market. |
Other Stock and Retirement Plan
Other Stock and Retirement Plans | 12 Months Ended |
Feb. 29, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Other Stock and Retirement Plans | 10) Other Stock and Retirement Plans a) Supplemental Executive Retirement Plan The Company has established a Supplemental Executive Retirement Plan ("SERP") to provide additional retirement income to its Chairman and select executive officers. Subject to certain performance criteria, service requirements and age restrictions, employees who participate in the SERP will receive restricted stock awards. The restricted stock awards vest on the later of three years from the date of grant, or the grantee reaching the age of 65 years (see Note 1(u)). As of February 29, 2020, approximately 542,000 shares of the Company's Class A common stock are reserved for issuance under the Company's Restricted and Stock Option Plans. b) Profit Sharing Plans The Company has established two non-contributory employee profit sharing plans for the benefit of its eligible employees in the United States and Canada. The plans are administered by trustees appointed by the Company. No discretionary contributions were made during the years ended February 29, 2020, February 28, 2019 and February 28, 2018. Contributions required by law to be made for eligible employees in Canada were not material for all periods presented. c) 401(k) Plans The VOXX International Corporation 401(k) plan is for all eligible domestic employees. The Company matches a portion of the participant's contributions after three months of service under a predetermined formula based on the participant's contribution level. Shares of the Company's Common Stock are not an investment option in the 401(k) plan and the Company does not use such shares to match participants' contributions. During the years ended February 29, 2020, February 28, 2019 and February 28, 2018, the Company contributed, net of forfeitures, $359, $378 and $388 to the 401(k) Plan. d) Cash Bonus Profit Sharing Plan The Company has a Cash Bonus Profit Sharing Plan that allows it to make profit sharing contributions for the benefit of eligible employees for any fiscal year based on a pre-determined formula on the Company's pre-tax profits. The size of the contribution is dependent upon the performance of the Company. A participant’s share of the contribution is determined pursuant to the participant’s eligible wages for the fiscal year as a percentage of total eligible wages for all participants. There were no contributions made to the plan for the years ended February 29, 2020, February 28, 2019 and February 28, 2018. e) Deferred Compensation Plan A Deferred Compensation Plan (the Plan) was adopted by the Company in 1999 for Vice Presidents and above. The Plan is intended to provide certain executives with supplemental retirement benefits as well as to permit the deferral of more of their compensation than they are permitted to defer under the Profit Sharing and 401(k) Plans. The Plan provides for a matching contribution equal to 25% of the employee deferrals up to $20. In Fiscal 2008, the Company suspended all matching contributions to reduce operating expenses. The matching contributions have remained suspended for the years ended February 29, 2020, February 28, 2019 and February 28, 2018. The Plan is not intended to be a qualified plan under the provisions of the Internal Revenue Code. All compensation deferred under the Plan is held by the Company in an investment trust which is considered an asset of the Company. The Company has the option of amending or terminating the Plan at any time. The investments, which amounted to $2,282 and $2,858 at February 29, 2020 and February 28, 2019, respectively, are classified as long-term marketable equity securities and are included in Investment securities on the accompanying Consolidated Balance Sheets and a corresponding liability is recorded in deferred compensation, which is classified as a long-term liability. Unrealized gains and losses on the marketable securities and corresponding deferred compensation liability net to zero in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Lease Obligations | 11) Lease Obligations On March 1, 2019, ASU No. 2016-02, "Leases (Topic 842)," was adopted by the Company using the modified retrospective approach. The Company adopted the package of practical expedients that allows companies to not reassess historical conclusions related to contracts that contain leases, existing lease classification, and initial direct costs. It did not adopt the hindsight practical expedient. Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities, which totaled $2,227 and $2,243, respectively, on March 1, 2019. and did not have an impact on the Company's debt-covenant compliance We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of, and to obtain substantially all of the economic benefit from, the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component, as we have elected the practical expedient in ASU 842-10-15-37. Some of our operating lease agreements include variable lease costs, including taxes, common area maintenance or increases in rental costs related to inflation. Such variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred. Lease expense is recorded in operating expenses in the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are considered short term leases and are not recorded on the balance sheet. The Company had no short term leases during the year ended February 29, 2020. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present value of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, our incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term. We have operating leases for office equipment, as well as offices, warehouses, and other facilities used for our operations. We also have finance leases comprised primarily of computer hardware and machinery and equipment. Our leases have remaining lease terms of less than 1 year to 7 years, some of which include renewal options. We consider these renewal options in determining the lease term used to establish our right-of-use assets and lease liabilities when it is determined that it is reasonably certain that the renewal option will be exercised. On September 30, 2019, the Company, through its subsidiary Voxx German Holdings GmbH, executed a sale leaseback transaction, selling its real property in Pulheim, Germany to CLM S.A. RL (“the Purchaser”) for €10,920. Net proceeds received from the transaction were approximately $9,500 after transactional costs of $270 and repayment of the outstanding mortgage, which was $2,104 on September 30, 2019. The transaction qualified for sale leaseback accounting in accordance with ASC 842, “Leases.” Concurrently with the sale, the Company entered into an operating lease arrangement (“lease”) with the Purchaser for a small portion of the real property to continue to operate the combined Magnat/Klipsch sales office in Germany, with an initial lease term of five years. The Company recognized a gain related to the execution of the sale transaction of $4,057 for the year ended February 29, 2020, which is recorded in Other income (expense) on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The components of lease cost for the year ended February 29, 2020 were as follows: Year Ended February 29, 2020 Operating lease cost (a) (c) $ 880 Finance lease cost: Amortization of right of use assets (a) 684 Interest on lease liabilities (b) 47 Total finance lease cost $ 731 (a) Recorded within Selling, general and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statements of Operations and Comprehensive (Loss) Income. (b) Recorded within Interest and bank charges on the Consolidated Statements of Operations and Comprehensive (Loss) Income. (c) Includes immaterial amounts related to variable rent expense. Supplemental cash flow information related to leases is as follows: Year Ended February 29, 2020 Non-cash investing and financing activities: Right of use assets obtained in exchange for operating lease obligations $ 1,312 Property, plant, and equipment obtained in exchange for finance lease obligations 1,024 Upon the adoption of ASC 842: Right of use assets recorded in exchange for operating lease obligations $ 2,227 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 841 Operating cash flows from finance leases 47 Finance cash flows from finance leases 646 Supplemental balance sheet information related to leases is as follows: February 29, 2020 Operating Leases Operating lease, right of use assets $ 3,143 Total operating lease right of use assets $ 3,143 Accrued expenses and other current liabilities $ 784 Operating lease liabilities, less current portion 2,391 Total operating lease liabilities $ 3,175 Finance Leases Property, plant and equipment, gross $ 2,503 Accumulated depreciation (1,209 ) Total finance lease right of use assets $ 1,294 Accrued expenses and other current liabilities $ 613 Finance lease liabilities, less current portion 720 Total finance lease liabilities $ 1,333 Weighted Average Remaining Lease Term Operating leases 4.4 years Finance leases 3.9 years Weighted Average Discount Rate Operating leases 5.98 % Finance leases 3.87 % At February 29, 2020, maturities of lease liabilities for each of the succeeding years were as follows: Operating Leases Finance Leases 2021 $ 948 $ 640 2022 907 428 2023 641 228 2024 480 80 2025 359 — Thereafter 268 — Total lease payments 3,603 1,376 Less imputed interest 428 43 Total $ 3,175 $ 1,333 As of February 29, 2020, the Company has not entered into any lease agreements that have not yet commenced. At February 28, 2019, the Company was obligated under non-cancellable operating leases for equipment and warehouse facilities related to continuing operations for minimum annual rental payments for each of the succeeding fiscal years: Operating Leases 2020 $ 946 2021 604 2022 391 2023 154 2024 10 Thereafter — Total minimum lease payments $ 2,105 Rental expense for the above-mentioned operating lease agreements and other rental agreements on a month-to-month basis was $883 and $1,163 for the years ended February 28, 2019 and February 28, 2018, respectively. The Company owns and occupies buildings as part of its operations. Certain space within these buildings may, from time to time, be leased to third parties from which the Company earns rental income as lessor. This leased space is recorded within property, plant and equipment and was not material to the Company's Consolidated Balance Sheet at February 29, 2020. Rental income earned by the Company for the years ended February 29, 2020, February 28, 2019, and February 28, 2018 was $663, $517, and $553, respectively, which is recorded within Other income (expense). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Feb. 29, 2020 | |
Financial Instruments [Abstract] | |
Financial Instruments | 12) Financial Instruments a) Off-Balance Sheet Risk Commercial letters of credit are issued by the Company during the ordinary course of business through major domestic banks as requested by certain suppliers. The Company also issues standby letters of credit principally to secure certain bank obligations and insurance policies. The Company had no open commercial letters of credit at February 29, 2020 and February 28, 2019. Standby letters of credit amounted to $68 and $892 at February 29, 2020 and February 28, 2019, respectively. The terms of these letters of credit are all less than one year. No material loss is anticipated due to nonperformance by the counter parties to these agreements. The fair value of the standby letters of credit is estimated to be the same as the contract values based on the short-term nature of the fee arrangements with the issuing banks. At February 29, 2020, the Company had unconditional purchase obligations for inventory commitments of $54,255. These obligations are not recorded in the consolidated financial statements until commitments are fulfilled and such obligations are subject to change based on negotiations with manufacturers. b) Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade receivables. The Company's customers are located principally in the United States, Canada, Europe and Asia Pacific and consist of, among others, distributors, mass merchandisers, warehouse clubs, major automobile manufacturers, and independent retailers. The Company generally grants credit based upon analyses of customers' financial conditions and previously established buying and payment patterns. For certain customers, the Company establishes collateral rights in accounts receivable and inventory and obtains personal guarantees from certain customers based upon management's credit evaluation. Certain customers in Europe and Latin America have credit insurance equaling their credit limits. At both February 29, 2020 and February 28, 2019, the Company's five largest customer balances accounted for approximately 24% of accounts receivable. No customer accounted for more than 10% of net sales from continuing operations during the years ended February 29, 2020, February 28, 2019 or February 28, 2018. The Company's five largest customers represented 24%, 25%, and 26% of net sales from continuing operations during the years ended February 29, 2020, February 28, 2019, and February 28, 2018, respectively. A portion of the Company's customer base may be susceptible to downturns in the retail economy, particularly in the consumer electronics industry. Additionally, customers specializing in certain automotive sound, security and accessory products may be impacted by fluctuations in automotive sales. |
Financial and Product Informati
Financial and Product Information About Foreign and Domestic Operations | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Financial and Product Information About Foreign and Domestic Operations | 13) Financial and Product Information About Foreign and Domestic Operations Segments Effective March 1, 2019, the Company revised its reportable segments to better reflect the way the Company now manages its business. To reflect management’s revised perspective, the Company now classifies its operations in the following three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. Prior year amounts have been reclassified to conform to the current presentation. Our Automotive Electronics segment designs, manufactures, distributes Our Consumer Electronics segment designs, manufactures, distributes Our Biometrics segment designs, markets and distributes iris identification and biometric security related products. Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker (CODM), who allocates resources and assesses performance of each segment individually. The Company's Chief Executive Officer has been identified as the CODM. The CODM evaluates performance and allocates resources based upon a number of factors, the primary profit measure being income before income taxes The segments share many common resources, infrastructures, and assets in the normal course of business. Thus, the Company does not report assets or capital expenditures by segment to the CODM. The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and there are no material intersegment sales. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations. Segment data from continuing operations for each of the Company's segments are presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Fiscal Year Ended February 29, 2020 Net sales $ 114,154 $ 279,675 $ 461 $ 599 $ 394,889 Equity in income of equity investees 5,174 — — — 5,174 Interest expense and bank charges 436 10,076 1,279 (8,222 ) 3,569 Depreciation and amortization expense 878 4,390 3,136 4,874 13,278 (Loss) income before income taxes (a) (724 ) 9,385 (39,241 ) (10,360 ) (40,940 ) Fiscal Year Ended February 28, 2019 Net sales $ 161,647 $ 283,144 $ 1,098 $ 927 $ 446,816 Equity in income of equity investees 6,618 — — — 6,618 Interest expense and bank charges 868 10,852 4,013 (11,284 ) 4,449 Depreciation and amortization expense 1,002 4,419 3,158 3,765 12,344 Income (loss) before income taxes (b) 13,842 (29,348 ) (18,928 ) (24,529 ) (58,963 ) Fiscal Year Ended February 28, 2018 Net sales $ 155,480 $ 350,526 $ 636 $ 450 $ 507,092 Equity in income of equity investees 7,178 — — — 7,178 Interest expense and bank charges 967 12,223 2,869 (10,050 ) 6,009 Depreciation and amortization expense 1,027 4,989 3,166 2,992 12,174 Income (loss) before income taxes 13,922 (3,872 ) (18,832 ) (15,322 ) (24,104 ) (a) Included within Income (loss) before taxes for the year ended February 29, 2020 are intangible asset impairment charges totaling $30,230 ($2,828 within the Consumer Electronics segment and $27,402 within the Biometrics segment) (see Note 1(k)). Also included within Income (loss) before taxes for the year ended February 29, 2020 is the gain on the sale of real property in Pulheim, Germany of $4,057 within the Consumer Electronics segment (see Note 11). (b) Included in income (loss) before income taxes for the year ended February 28, 2019 are intangible asset impairment charges totaling $25,789 ($25,629 within the Consumer Electronics segment and $160 within the Automotive Electronics segment) (see Note 1(k)), an impairment charge of $3,473 related to investment properties in Venezuela within the Automotive Electronics segment (see Note 1(p)), as well as charges of $16,509 within Corporate related to the write-off of uncollectible notes receivable (see Note 1(f)). No customer accounted for more than 10% of consolidated net sales from continuing operations during the years ended February 29, 2020, February 28, 2019 or February 28, 2018. Geographic net sales information from continuing operations in the table below is based on the location of the selling entity. Long-lived assets, consisting of fixed assets, are reported below based on the location of the asset. United States Europe Other Total Fiscal Year Ended February 29, 2020 Net sales $ 322,612 $ 69,755 $ 2,522 $ 394,889 Long-lived assets 48,111 3,099 214 51,424 Fiscal Year Ended February 28, 2019 Net sales $ 393,834 $ 49,970 $ 3,012 $ 446,816 Long-lived assets 48,870 11,553 70 60,493 Fiscal Year Ended February 28, 2018 Net sales $ 446,262 $ 57,447 $ 3,383 $ 507,092 Long-lived assets 48,571 12,979 3,709 65,259 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Feb. 29, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 14) Revenue from Contracts with Customers The Company operates in three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. ASC Topic 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales are disaggregated by segments and product type for the years ended February 29, 2020, February 28, 2019 and February 28, 2018. On March 1, 2019, the Company revised its reportable segments to better reflect the way the Company now manages its business (see Note 13). Prior year segment amounts have been reclassified to conform to the current presentation. Year ended February 29, 2020 Year ended February 28, 2019 Year ended February 28, 2018 Automotive Electronics Segment OEM Products $ 49,673 $ 90,844 $ 77,902 Aftermarket Products 64,481 70,803 77,578 Total Automotive Electronics Segment 114,154 161,647 155,480 Consumer Electronics Segment Premium Audio Products 170,762 158,436 172,406 Other Consumer Electronic Products 108,913 124,708 178,120 Total Consumer Electronics Segment 279,675 283,144 350,526 Biometrics Segment Biometric Products 461 1,098 636 Total Biometrics Segment 461 1,098 636 Corporate/Eliminations 599 927 450 Total Net Sales $ 394,889 $ 446,816 $ 507,092 As of February 29, 2020 and February 28, 2019, the balance of the Company's return asset was $1,544 and $1,962, respectively, and the balance of the refund liability was $3,779 and $4,415, respectively, which are presented within Prepaid expenses and other current assets and accrued expenses and other current liabilities, respectively, on the Consolidated Balance Sheets. The Company had no contract asset or contract liability balances at February 29, 2020 or February 28, 2019. No performance obligation related amounts were deferred as of February 29, 2020. |
Contingencies
Contingencies | 12 Months Ended |
Feb. 29, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 15) Contingencies The Company is currently, and has in the past, been a party to various routine legal proceedings incident to the ordinary course of business. If management determines, based on the underlying facts and circumstances of each matter, that it is probable a loss will result from a litigation contingency and the amount of the loss can be reasonably estimated, the estimated loss is accrued for. The Company does not believe that any current outstanding litigation will have a material adverse effect on the Company's financial statements, individually or in the aggregate. The products the Company sells are continually changing as a result of improved technology. As a result, although the Company and its suppliers attempt to avoid infringing known proprietary rights, the Company may be subject to legal proceedings and claims for alleged infringement by patent, trademark or other intellectual property owners. Any claims relating to the infringement of third-party proprietary rights, even if not meritorious, could result in costly litigation, divert management’s attention and resources, or require the Company to either enter into royalty or license agreements which are not advantageous to the Company or pay material amounts of damages. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Feb. 29, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | 16) Unaudited Quarterly Financial Data Selected unaudited, quarterly financial data of the Company for the years ended February 29, 2020 and February 28, 2019 appear below: Quarters Ended February 29, 2020 November 30, 2019 August 31, 2019 May 31, 2019 2020 (a) (b) (c) Net sales $ 101,077 $ 110,112 $ 90,246 $ 93,454 Gross profit 28,534 31,464 23,769 26,009 Net (loss) income attributable to Voxx International Corporation $ (21,795 ) $ 2,464 $ (5,964 ) $ (1,148 ) (Loss) income per share - basic: Attributable to VOXX International Corporation $ (0.90 ) $ 0.10 $ (0.24 ) $ (0.05 ) (Loss) income per share - diluted: Attributable to VOXX International Corporation $ (0.90 ) $ 0.10 $ (0.24 ) $ (0.05 ) Quarters Ended February 28, 2019 November 30, 2018 August 31, 2018 May 31, 2018 2019 (d) (e) Net sales $ 107,457 $ 129,637 $ 108,867 $ 100,855 Gross profit 23,754 38,923 31,063 27,677 Net (loss) income attributable to Voxx International Corporation $ (36,560 ) $ 12,211 $ (20,803 ) $ (939 ) (Loss) income per share - basic: Attributable to VOXX International Corporation $ (1.50 ) $ 0.50 $ (0.85 ) $ (0.04 ) (Loss) income per share - diluted: Attributable to VOXX International Corporation $ (1.50 ) $ 0.50 $ (0.85 ) $ (0.04 ) Net income per common share is computed separately for each quarter. Therefore, the sum of such quarterly per share amounts may differ from the total for the years. (a) Included in the Net loss attributable to VOXX International Corporation for the quarter ended February 29, 2020 are impairment charges of $30,230 related to definite and indefinite lived intangible assets. (b) Included in Net income attributable to VOXX International Corporation for the quarter ended November 30, 2019 is the gain of $4,057 resulting from the sale of real property in Pulheim, Germany. (c) Included in the Net loss attributable to VOXX International Corporation for the quarter ended August 31, 2019 is the gain of $775 due to the hold-back release related to the Company’s investment in RxNetworks (see Note 1(f)). (d) Included in the Net loss attributable to VOXX International Corporation for the quarter ended February 28, 2019 are impairment charges totaling $15,975 related to indefinite lived intangible assets (see Note 1(k)) and an impairment charge of $16,509 related to uncollectible notes receivable (see Note 1(f)). (e) Included in the Net loss attributable to VOXX International Corporation for the quarter ended August 31, 2018 are impairment charges totaling $9,814 related to indefinite lived intangible assets (see Note 1(k)) and an impairment charge of $3,473 related to investment properties in Venezuela (see Note 1(p)). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17) Subsequent Events Wells Fargo Credit Facility On April 8, 2020, the Company borrowed $20,000 from the available funds under its Credit Facility. On June 11, 2020, the Company entered into Amendment No. 7 to the Credit Facility. Pursuant to the terms thereof, the Credit Facility was amended primarily to: (i) provide for a Maximum Credit under the Credit Facility of $127,500; (ii) extend the Maturity Date to April 26, 2022; (iii) allow for LIBOR replacement under certain conditions and amend the LIBOR and Base Rate margins; (iv) raise the Excess Availability related to a Compliance Period to 20%; and (v) increase the Real Property Availability by including the Company’s Michigan real estate in the Borrowing Base. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 29, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | VOXX INTERNATIONAL CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Years ended February 29, 2020, February 28, 2019 and February 28, 2018 (In thousands) Column A Column B Column C Column D (b) Column E Description Balance at Beginning of Year Gross Amount Charged to Costs and Expenses Reversals of Previously Established Accruals Deductions (a) Balance at End of Year Year ended February 29, 2020 Allowance for doubtful accounts $ 2,548 $ 253 $ — $ 847 $ 1,954 Cash discount allowances 1,125 5,243 — 5,617 751 Sales return reserve 4,415 13,243 — 13,879 3,779 Accrued sales incentives 13,574 35,345 (114 ) 36,555 12,250 Reserve for warranties and product repair costs 4,469 4,935 — 4,656 4,748 Year ended February 28, 2019 Allowance for doubtful accounts $ 2,196 $ 858 $ — $ 506 $ 2,548 Cash discount allowances 1,205 6,112 — 6,192 1,125 Sales return reserve (c) 3,779 10,391 — 9,755 4,415 Accrued sales incentives 14,020 37,272 (202 ) 37,516 13,574 Reserve for warranties and product repair costs 6,233 6,091 — 7,855 4,469 Year ended February 28, 2018 Allowance for doubtful accounts $ 4,495 $ 667 $ — $ 2,966 $ 2,196 Cash discount allowances 1,233 6,407 — 6,435 1,205 Sales return reserve 1,516 5,450 — 5,306 1,660 Accrued sales incentives 13,154 42,722 (45 ) 41,811 14,020 Reserve for warranties and product repair costs 5,608 7,428 — 6,803 6,233 (a) For the allowance for doubtful accounts, cash discount allowances, and accrued sales incentives, deductions represent currency effects, chargebacks and payments made or credits issued to customers. For the reserve for warranties and product repair costs, deductions represent currency effects and payments for labor and parts made to service centers and vendors for the repair of units returned under warranty. (b) Within the reserve for warranties and product repair costs, Column D includes $188 and $500 of liabilities acquired during our VSHC and Rosen acquisitions in Fiscal 2020 and Fiscal 2018, respectively, and $832 that was reclassified to the return asset established in conjunction with the implementation of ASC Topic 606 in Fiscal 2019. Within the accrued sales incentives, Column D incudes $28 of liabilities acquired during our VSHC acquisition in Fiscal 2020. (c) As a result of the implementation of ASC 606 on March 1, 2018, the accounting treatment for the reserve for sales returns was changed from a net to a gross basis. Under the previous revenue guidance, we recorded a net return reserve. Under the new guidance, we record estimated sales returns at the gross sales price with a corresponding adjustment to inventory for the estimated cost of the product. The difference between the balance at the end of the fiscal year ended February 28, 2018 and the beginning of the year ended February 28, 2019 reflects this change in accounting policy. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | a) Description of Business VOXX International Corporation ("Voxx," "We," "Our," "Us" or "the Company") is a leading international manufacturer and distributor in the Automotive Electronics, Consumer Electronics, and Biometrics industries. The Company has widely diversified interests, with more than 30 global brands that it has acquired and grown throughout the years, achieving a powerful international corporate image and creating a vehicle for each of these respective brands to emerge with its own identity. We conduct our business through seventeen wholly-owned subsidiaries: Audiovox Atlanta Corp., VOXX Electronics Corporation, VOXX Accessories Corp., VOXX German Holdings GmbH ("Voxx Germany"), Audiovox Canada Limited, Voxx Hong Kong Ltd., Audiovox International Corp., Audiovox Mexico, S. de R.L. de C.V. ("Voxx Mexico"), Code Systems, Inc., Oehlbach Kabel GmbH ("Oehlbach"), Schwaiger GmbH ("Schwaiger"), Invision Automotive Systems, Inc. ("Invision"), Klipsch Holding LLC ("Klipsch"), Omega Research and Development, LLC ("Omega"), Voxx Automotive Corp., Audiovox Websales LLC, and VSM-Rostra LLC, as well as one majority-owned subsidiary, EyeLock LLC ("EyeLock"). We market our products under the Audiovox® brand name, other brand names and licensed brands, such as 808®, Acoustic Research®, Advent®, Car Link®, Chapman®, Code-Alarm®, Discwasher®, Energy®, Heco®, Invision®, Jamo®, Klipsch®, Mac Audio ™ On August 31, 2017, the Company completed its sale of Hirschmann Car Communication GmbH and its subsidiaries. See Note 2 for more details of this transaction. The Company's fiscal year ends on the last day of February. |
Principles of Consolidation, Reclassifications and Accounting Principles | b) Principles of Consolidation, Reclassifications and Accounting Principles The consolidated financial statements and accompanying notes include the financial statements of VOXX International Corporation and its wholly and majority-owned subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as defined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company follows FASB Accounting Standards Codification ("ASC") 810-10-45-21 to report a non-controlling interest in the consolidated balance sheets within the equity section, separately from the Company’s retained earnings. Non-controlling interest represents the non-controlling interest holder’s proportionate share of the equity of the Company’s majority-owned subsidiary, EyeLock. Non-controlling interest is adjusted for the non-controlling interest holder’s proportionate share of the earnings or losses and other comprehensive income (loss), if any, and the non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit non-controlling interest balance. Equity investments in which the Company exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method. The Company's share of its equity method investee's earnings or losses is included in Other (expense) income in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company eliminates its pro rata share of gross profit on sales to its equity method investee for inventory on hand at the investee at the end of the year. Investments in which the Company does not exercise significant influence over the investee, and which do not have readily determinable fair values, are accounted for under the cost method. Earnings per share amounts for continuing and discontinued operations are computed independently. As a result, the sum of the per share amounts may not equal the total. Effective March 1, 2019, the Company revised its reporting segments to better reflect the way the Company now manages its business. Prior year segment amounts have been reclassified to conform to the current presentation (see Note 13). |
Use of Estimates | c) Use of Estimates The preparation of these consolidated financial statements requires the Company to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses. Such estimates include revenue recognition; accrued sales incentives; the allowance for doubtful accounts; inventory valuation; valuation of long-lived assets; valuation and impairment assessment of goodwill, trademarks and other intangible assets; warranty reserves; stock-based compensation; recoverability of deferred tax assets; and the reserve for uncertain tax positions at the date of the consolidated financial statements. Actual results could differ from those estimates. |
Cash and Cash Equivalents | d) Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits with banks and highly liquid money market funds with original maturities of three months or less when purchased. Cash and cash equivalents amounted to $37,425 and $58,236 at February 29, 2020 and February 28, 2019, respectively. The Company places its cash and cash equivalents in institutions and funds of high credit quality. Many of its balances are in excess of government insurance. We perform periodic evaluations of these institutions and funds. Cash amounts held in foreign bank accounts amounted to $3,396 and $325 at February 29, 2020 and February 28, 2019, respectively, none of which would be subject to United States federal income taxes if made available for use in the United States. The Tax Cuts and Jobs Act provides a 100% participation exemption on dividends received from foreign corporations after January 1, 2018 as the United States has moved away from a worldwide tax system and closer to a territorial system for earnings of foreign corporations. |
Fair Value Measurements and Derivatives | e) Fair Value Measurements and Derivatives The Company applies the authoritative guidance on "Fair Value Measurements," which among other things, requires enhanced disclosures about investments that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. At February 29, 2020 and February 28, 2019, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The following table presents assets and liabilities measured at fair value on a recurring basis at February 29, 2020: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 37,425 $ 37,425 $ — Derivatives Designated for hedging $ (476 ) $ — $ (476 ) Investment securities: Mutual funds $ 2,282 $ 2,282 $ — Total investment securities $ 2,282 $ 2,282 $ — The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2019: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 58,236 $ 58,236 $ — Derivatives Designated for hedging $ 88 $ — $ 88 Investment securities: Mutual funds $ 2,858 $ 2,858 $ — Total investment securities $ 2,858 $ 2,858 $ — The carrying value of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations and long-term debt approximates fair value because of either (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates, or (iii) the stated or implicit interest rate approximates the current market rates or are not materially different than market rates. Non-financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired in a business combination or property and equipment that are determined to be impaired. As of February 29, 2020, certain non-financial assets were measured at fair value subsequent to their initial recognition. See Note 1(k) for the discussion of the impairment of certain intangible assets. Derivative Instruments The Company's derivative instruments include forward foreign currency contracts utilized to hedge a portion of its foreign currency inventory purchases. The Company also has an interest rate swap agreement as of February 29, 2020 that hedges interest rate exposure related to the forecasted outstanding balance of its Florida Mortgage with monthly payments due through March 2026. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). Open foreign currency contracts are classified in the balance sheet according to their terms. There are currently no open forward foreign currency contracts at February 29, 2020. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of our interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. The interest rate swap is classified in the balance sheet as either a non-current asset or non-current liability based on the fair value of the instrument at the end of the period. The swap agreement related to the Company's Florida Mortgage locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the mortgage. Financial Statement Classification The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 29, 2020 and February 28, 2019 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 29, 2020 February 28, 2019 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 172 Interest rate swap Other long-term liabilities (476 ) (84 ) Total derivatives $ (476 ) $ 88 Cash flow hedges It is the Company's policy to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company's derivative instruments are expected to be highly effective. On March 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities During Fiscal 2020, the Company did not enter into any new forward foreign currency contracts. All forward foreign currency contracts entered into during Fiscal 2019 have been settled as of February 29, 2020 and were designated as cash flow hedges. The current outstanding notional value of the Company's interest rate swap at February 29, 2020 was $7,614. For cash flow hedges, the effective portion of the gain or loss is reported as a component of Other comprehensive (loss) income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The net gain recognized in Other comprehensive (loss) income for foreign currency contracts is expected to be recognized in cost of sales within the next three months, as the last open contracts were settled on February 29, 2020. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. During the years ended February 29, 2020 and February 28, 2019, no contracts originally designated for hedge accounting were de-designated. The gain or loss on the Company’s interest rate swap is recorded in Other comprehensive (loss) income and subsequently reclassified into Interest and bank charges in the period in which the hedged transaction affects earnings. As of February 29, 2020, no contracts originally designated for hedge accounting were terminated. See Note 1(v) for information regarding activity related to cash flow hedges pertaining to discontinued operations. Activity related to cash flow hedges from continuing operations recorded during the twelve months ended February 29, 2020 and February 28, 2019 was as follows: February 29, 2020 February 28, 2019 Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified into Cost of Sales Gain (Loss) for Ineffectiveness in Other Income Gain (Loss) Recognized in Other Comprehensive Income Loss Reclassified into Cost of Sales Gain for Ineffectiveness in Other Income (a) Cash flow hedges Foreign currency contracts $ 331 $ 428 $ — $ 708 $ (13 ) $ 46 Interest rate swaps $ (392 ) $ — $ — $ (49 ) $ — $ — (a) Amount represents the ineffectiveness recorded in the prior fiscal year. Prior to the adoption of ASU 2017-12, hedge ineffectiveness (as defined under ASC 815) was recorded in Other income (loss). |
Investment Securities | a) Investment Securities As of February 29, 2020 and February 28, 2019, the Company had the following investments: February 29, 2020 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,282 Total Marketable Equity Securities 2,282 Total Investment Securities $ 2,282 February 28, 2019 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,858 Total Marketable Equity Securities 2,858 Total Investment Securities $ 2,858 Long-Term Investments Equity Securities Marketable equity securities are measured and recorded at fair value with changes in fair value recorded in the Consolidated Statements of Operations and Comprehensive (Loss) Income. Mutual Funds The Company’s mutual funds are held in connection with its deferred compensation plan. Changes in the carrying value of these securities are offset by changes in the corresponding deferred compensation liability. Changes in fair value of equity securities are recorded within the Consolidated Statements of Operations and Comprehensive (Loss) Income. Prior to the adoption of ASU 2016-01 in Fiscal 2019, in determining whether equity securities were other than temporarily impaired, the Company considered its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost, along with factors including the length of time each security had been in an unrealized loss position, the extent of the decline and the near-term prospect for recovery. Additionally, on a quarterly basis, the Company was required to make a qualitative assessment of whether the investment was impaired. No other-than-temporary losses were incurred for the year ended February 28, 2018. Investments Held at Cost, Less Impairment During Fiscal 2018, RxNetworks, a Canadian company in which Voxx held a cost method investment consisting of shares of the investee's preferred stock, was sold to a third party. In consideration for its holdings in RxNetworks, Voxx received cash, as well as a proportionate share of the value (consisting of common stock) in a newly formed subsidiary of RxNetworks, called Fathom Systems Inc. ("Fathom"), a start-up company. As a result of this transaction, Voxx recognized a gain of $1,416 for the year ended February 28, 2018. The cash proceeds were subject to a hold-back provision, which was not included in the calculation of the gain recognized in Fiscal 2018. During the fourth quarter of Fiscal 2019, Fathom repurchased all of the outstanding common stock of its shareholders for a price per share significantly below the value when issued. This resulted in a loss on Voxx's investment in Fathom of $530 for the year ended February 28, 2019. Voxx had no remaining investment or ownership in Fathom Systems Inc. subsequent to February 28, 2019. In August 2019, the Company received the proceeds that were held back in the Fiscal 2018 transaction to sell the RxNetworks investment, as the hold-back provision expired and the cash proceeds were released to Voxx. The Company recorded an investment gain of $775 for the year ended February 29, 2020 for these proceeds received. The Company held various notes receivable from 360fly, Inc. ("360fly"), designers and creators of 360° cameras and technology, aggregating $17,242 principal amount at February 28, 2019. Of the $17,242 notes receivable, $14,107 were convertible into preferred stock of 360fly, Inc. These notes receivable were senior secured notes and were collateralized by the intangible and tangible assets of 360fly, Inc. The notes bore interest at 8% per annum and were due on January 19, 2019. As all of the notes receivable were due from the same debtor, all the notes were deemed to have the same credit quality. The notes receivable were on a non-accrual status during the years ended February 28, 2019 and February 28, 2018, as payment of interest was not reasonably assured. The credit quality of the notes receivable was previously deemed to not present a significant risk of loss or default of the principal payments based upon on-going business developments. During the fourth quarter of Fiscal 2019, the credit quality of the debtor deteriorated. On January 23, 2019, the Company, as Collateral Agent for the senior secured lenders, and for itself, provided a Notice of Maturity, Default and Acceleration to 360fly, Inc., indicating that: (i) all the unpaid principal and accrued interest owed under all the outstanding notes with the Company became due as a result of uncured defaults in payment under the notes; and (ii) the Company, as Collateral Agent, would proceed with foreclosure of collateral, securing the notes, with a scheduled auction date of March 5, 2019. Notice of the auction was provided through public advertisement and online posting during the month of February 2019. Prior to February 28, 2019, the Company was in negotiations with other senior secured lenders of 360fly, seeking to establish a new company with the senior secured lenders ("Newco") for the purposes of acquiring 360fly's assets through a credit bid at the foreclosure sale. If the credit bid was successful, the Company planned to provide funding to Newco to maintain sufficient staff and related expenses to continue to develop products and associated technology for anticipated sales to prospective customers. 360fly was not able to secure any additional funding, meet its projections for January or February 2019, provide any assurances that the missed projections would be achieved or of further development with prospective customers, and ultimately ceased normal business operations. In addition, negotiations with other potential investors to purchase a portion of the Company's notes ceased. Based on the above events and conditions present at February 28, 2019, the Company determined that the notes receivable were uncollectible. As a result, the Company recorded an impairment charge for the year ended February 28, 2019 of $16,509 (net of reserves) as it was probable that the Company would not be, and was not, paid in accordance with the contractual terms of the notes, as all amounts were due on January 19, 2019. As the notes were collateral dependent notes, the estimated fair value of the collateral was compared to the carrying value of the notes. The fair value of the collateral, less cost to sell, was deemed to be zero at February 28, 2019, after consideration of the absence of potential bidders in the auction process, costs to sell the collateral at a future date, prospects for future revenue streams related to the collateral barring additional development expenditures, and the speculative nature of proceeds from a future sale. On March 5, 2019, the Company, as Collateral Agent, was the only bidder at the auction with a credit bid of $1,000 and was awarded the collateral. In late March 2019, the Company and the other secured lenders determined they would not attempt to continue the development of 360fly with the intangible assets acquired at auction. |
Revenue Recognition | b) Revenue Recognition On March 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, and all the related amendments (“ASC Topic 606”), using the modified retrospective method. In addition, we elected to apply certain of the permitted practical expedients within the revenue recognition guidance and make certain accounting policy elections, including those related to significant financing components, sales taxes and shipping and handling activities. Most of the changes resulting from the adoption of ASC Topic 606 on March 1, 2018 were changes in presentation within the Consolidated Balance Sheet, and we made no adjustment to opening Retained Earnings. The adoption of ASC Topic 606 has not been material to our net income; however, adoption did increase the level of disclosures concerning our net sales. Results for reporting periods beginning March 1, 2018 are presented under the new guidance, while prior period amounts continue to be reported in accordance with previous guidance without revision. Revenue from Contracts with Customers The core principle of ASC Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. We apply the FASB’s guidance on revenue recognition, which requires us to recognize the amount of revenue and consideration that we expect to receive in exchange for goods and services transferred to our customers. To do this, the Company applies the five-step model prescribed by the FASB, which requires us to: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy a performance obligation. We account for a contract or purchase order when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the product passes to the customer, which is upon shipment, unless otherwise specified within the customer contract or on the purchase order as delivery, and is recognized at the amount that reflects the consideration the Company expects to receive for the products sold, including various forms of discounts. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Contracts with customers are evaluated to determine if there are separate performance obligations related to timing of product shipment that will be satisfied in different accounting periods. When that is the case, revenue is deferred until each performance obligation is met. Within our Automotive Electronics segment, while the majority of the contracts we enter into with Original Equipment Manufacturers (“OEM”) are long-term supply arrangements, the performance obligations are established by the enforceable contract, which is generally considered to be the purchase order. The purchase orders are of durations less than one year. As such, the Company applies the practical expedient in ASC paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. The Company has also elected the practical expedient in ASC 340-40-25-4, whereby the Company recognizes incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets the Company otherwise would have recognized is one year or less. Certain taxes assessed by governmental authorities on revenue producing transactions, such as value added taxes, are excluded from revenue and recorded on a net basis. Performance Obligations The Company’s primary source of revenue is derived from the manufacture and distribution of automotive electronic, consumer electronic, and biometric products. Our consumer electronic products primarily consist of finished goods sold to retail and commercial customers, consisting of premium audio and other consumer electronic products. Our automotive products are sold both to OEM and aftermarket customers. Our biometric products are primarily sold to retail and commercial customers. We recognize revenue for sales to our customers when transfer of control of the related good or service has occurred. All of our revenue was recognized under the point in time approach for the years ended February 29, 2020 and February 28, 2019. Contract terms with certain of our OEM customers could result in products and services being transferred over time as a result of the customized nature of some of our products, together with contractual provisions in the customer contracts that provide us with an enforceable right to payment for performance completed to date; however, under typical terms, we do not have the right to consideration until the time of shipment from our manufacturing facilities or distribution centers, or until the time of delivery to our customers. If certain contracts in the future provide the Company with this enforceable right of payment, the timing of revenue recognition from products transferred to customers over time may be slightly accelerated compared to our right to consideration at the time of shipment or delivery. Our typical payment terms vary based on the Our customers take delivery of goods, and they are recognized as revenue at the time of transfer of control to the customer, which is usually at the time of shipment, unless otherwise specified in the customer contract or purchase order. This determination is based on applicable shipping terms, as well as the consideration of other indicators, including timing of when the Company has a present right to payment, when physical possession of products is transferred to customers, when the customer has the significant risks and rewards of ownership of the asset, and any provisions in contracts regarding customer acceptance. While unit prices are generally fixed, we provide variable consideration for certain of our customers, typically in the form of promotional incentives at the time of sale. Depending on the different facts and circumstances, we utilize either the most likely amount or the expected value methods to estimate the effect of uncertainty on the amount of variable consideration to which we would be entitled. The most likely amount method considers the single most likely amount from a range of possible consideration amounts, while the expected value method is the sum of the probability-weighted amounts in a range of possible consideration amounts. Both methods are based upon the contractual terms of the incentives and historical experience with each customer. We record estimates for cash discounts, promotional rebates, and other promotional allowances in the period the related revenue is recognized (“Customer Credits”). The provision for Customer Credits is recorded as a reduction from gross sales and reserves for Customer Credits are presented within Accrued sales incentives on the Consolidated Balance Sheet. Actual Customer Credits have not differed materially from estimated amounts for each period presented. Amounts billed to customers for shipping and handling are included in net sales and costs associated with shipping and handling are included in cost of sales. We have concluded that our estimates of variable consideration are not constrained according to the definition within the standard. Additionally, the Company applies the practical expedient in ASC paragraph 606-10-25-18B and accounts for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment activity, rather than a separate performance obligation. With the adoption of ASC Topic 606, we reclassified certain amounts related to variable consideration. Under ASC Topic 606, we are required to present a refund liability and a return asset within the Consolidated Balance Sheet, whereas in periods prior to adoption, we presented the estimated margin impact of expected returns as a contra-asset within accounts receivable. The changes in the refund liability are reported in net sales, and the changes in the return asset are reported in cost of sales in the Consolidated Statements of Operations and Comprehensive (Loss) Income. See Note 14 for return asset and refund liability balances as of February 29, 2020 and February 28, 2019. We warrant our products against certain defects in material and workmanship when used as designed, which primarily range from 30 days to 3 years. We offer limited lifetime warranties on certain products, which limit the customer’s remedy to the repair or replacement of the defective product or part for the designated lifetime of the product, or for the life of the vehicle for the original owner, if it is an automotive product. We do not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. |
Accounts Receivable | c) Accounts Receivable The majority of the Company's accounts receivable are due from companies in the retail, mass merchant and OEM industries. Credit is extended based on an evaluation of a customer's financial condition. Accounts receivable are generally due within 30 days - 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Accounts outstanding longer than the contracted payment terms are considered past due. Accounts receivable is comprised of the following: February 29, 2020 February 28, 2019 Trade accounts receivable $ 72,419 $ 77,064 Less: Allowance for doubtful accounts 1,954 2,548 Allowance for cash discounts 751 1,125 $ 69,714 $ 73,391 The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customers' current credit worthiness, as determined by a review of their current credit information. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within management's expectations and the provisions established, the Company cannot guarantee it will continue to experience the same credit loss rates that have been experienced in the past. The Company writes off accounts receivable balances when collection efforts have been exhausted and deemed uncollectible. Our five largest customer balances comprise 24% of our accounts receivable balance as of February 29, 2020. A significant change in the liquidity or financial position of any one of these customers could have a material adverse impact on the collectability of accounts receivable and our results of operations. The Company has four supply chain financing agreements and factoring agreements with certain financial institutions to accelerate receivable collection and better manage cash flow. Under the agreements, the Company has agreed to sell these institutions certain of its accounts receivable balances. For those accounts receivables tendered to the banks and that the banks choose to purchase, the banks have agreed to advance an amount equal to the net accounts receivable balances due, less a discount or fee as set forth in the respective agreements. The balances under these agreements are sold without recourse and are accounted for as sales of accounts receivable. Cash proceeds from these agreements are reflected as operating activities included in the change in accounts receivable in the Company's Consolidated Statements of Cash Flows. Total balances from continuing operations sold under the agreements, net of discounts, for the years ended February 29, 2020, February 28, 2019, and February 28, 2018 were approximately $79,000, $105,000 and $142,000, respectively. Fees incurred in connection with the agreements totaled approximately $400, $900 and $1,000 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively, and are recorded within Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income. During the second quarter of Fiscal 2020, the Company suspended two of its supply chain finance arrangements, representing its domestic agreements, as the Company had sufficient cash on hand for operations, as well as due to rising fees charged on factored balances. During the fourth quarter, the Company resumed its factoring activities under one of these agreements in response to general economic concerns related to the COVID-19 pandemic. The Company has the option to suspend and resume its activity under the existing arrangements at any time. |
Inventory | d) Inventory The Company values its inventory at the lower of cost or net realizable value ("NRV"). NRV is defined as estimated selling prices less costs of completion, disposal, and transportation. The cost of the inventory is determined primarily on an average basis with a portion valued at standard cost, which approximates actual costs on the first-in, first-out basis. The Company regularly reviews inventory quantities on-hand and records a provision for excess and obsolete inventory based primarily on selling prices, indications from customers based upon current price negotiations and purchase orders. The Company's industry is characterized by rapid technological change and frequent new product introductions that could result in an increase in the amount of obsolete inventory quantities on-hand. In addition, and as necessary, specific reserves for future known or anticipated events may be established. The Company recorded inventory write-downs from continuing operations of $3,050, $4,580 and $2,733 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. Inventories by major category are as follows: February 29, 2020 February 28, 2019 Raw materials $ 29,115 $ 27,518 Work in process 2,366 2,622 Finished goods 67,629 72,239 Inventory, net $ 99,110 $ 102,379 |
Property, Plant and Equipment | e) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Property under a finance lease is stated at the present value of minimum lease payments. Major improvements and replacements that extend service lives of the assets are capitalized. Minor replacements, and routine maintenance and repairs are charged to expense as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the Consolidated Balance Sheets. A summary of property, plant and equipment, net, is as follows: February 29, 2020 February 28, 2019 Land $ 6,978 $ 10,110 Buildings 43,801 49,301 Property under finance lease 2,503 1,907 Furniture and fixtures 4,152 3,878 Machinery and equipment 8,245 8,618 Construction-in-progress 483 155 Computer hardware and software 38,808 37,591 Automobiles 735 808 Leasehold improvements 1,858 2,682 107,563 115,050 Less accumulated depreciation and amortization 56,139 54,557 $ 51,424 $ 60,493 Depreciation is calculated on the straight-line method over the estimated useful lives of the assets as follows: Buildings and improvements 20 - 40 years Furniture and fixtures 5 - 15 years Machinery and equipment 5 - 15 years Computer hardware and software 3 - 5 years Automobiles 3 years Leasehold improvements are depreciated over the shorter of the lease term or estimated useful life of the asset. Assets acquired under finance leases are amortized over the term of the respective lease. Accumulated amortization of assets under finance lease totaled $1,209 and $979 at February 29, 2020 and February 28, 2019, respectively. Depreciation and amortization of property, plant and equipment from continuing operations amounted to $5,343, $5,360 and $5,658 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. Included in depreciation and amortization expense is amortization of computer software costs of $1,474, $1,537 and $1,611 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. Also included in depreciation and amortization expense is $684, $491 and $372 of amortization expense related to property under finance leases for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. See Note 11 for discussion of the sale of the Company’s real property in Pulheim Germany during the year ended February 29, 2020 and the gain recognized of $4,057. See Note 1(p) for discussion of long-lived asset impairment charges recorded for the year ended February 28, 2019 related to real estate properties held by the Company's Venezuela subsidiary. |
Goodwill and Intangible Assets | f) Goodwill and Intangible Assets Goodwill and other intangible assets consist of the excess over the fair value of assets acquired (goodwill), and other intangible assets (patents, contracts, trademarks/tradenames, developed technology and customer relationships). Values assigned to the respective assets are determined in accordance with ASC 805 "Business Combinations" ("ASC 805") and ASC 350 "Intangibles – Goodwill and Other" ("ASC 350"). Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets acquired. We use various valuation techniques to determine the fair value of the assets acquired, with the primary techniques being the discounted future cash flow method, relief from royalty, and the multi-period excess earnings methods, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Inputs to these valuation approaches that require significant judgment include: (i) forecasted sales, growth rates and customer attrition rates, (ii) forecasted operating margins, (iii) royalty rates and discount rates used to present value future cash flows, (iv) the amount of synergies expected from the acquisition, (v) the economic useful life of assets and, (vi) the evaluation of historical tax positions. In certain instances, historical data is limited so we base our estimates and assumptions on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. The guidance in ASC 350, including management’s business intent for its use; ongoing market demand for products relevant to the category and their ability to generate future cash flows; legal, regulatory or contractual provisions on its use or subsequent renewal, as applicable; and the cost to maintain or renew the rights to the assets, are considered in determining the useful life of all intangible assets. If the Company determines that there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life of the asset, an indefinite life will be assigned and evaluated for impairment as indicated below. Goodwill and other intangible assets that have an indefinite useful life are not amortized. Intangible assets that have a definite useful life are amortized on either an accelerated or a straight-line basis over their estimated useful life. ASC 350 requires that goodwill and intangible assets with indefinite useful lives be tested for impairment at least annually or more frequently if an event occurs or circumstances change that could more likely than not reduce the fair value of a reporting unit below its carrying value. Intangible assets with estimable useful lives are required to be amortized over their respective estimated useful lives and reviewed for impairment if indicators of impairment exist . Goodwill is tested using a two-step process. The first step is to identify a potential impairment, and the second step measures the value of the impairment loss, if any. Goodwill is considered impaired if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. For intangible assets with indefinite lives, primarily trademarks, the Company compared the fair value of each intangible asset with its carrying value. Intangible assets with indefinite lives are considered impaired if the carrying value exceeds the estimated fair value. Voxx's reporting units that carry goodwill are Invision, Rosen, VSHC, and Klipsch. The Company has three operating segments based upon its products and internal organizational structure (see Note 13). These operating segments are the Automotive Electronics, Consumer Electronics, and Biometrics segments. The Invision, Rosen, and VSHC reporting units are located within the Automotive Electronics segment and the Klipsch reporting unit is located within the Consumer Electronics segment. The Company performed its annual impairment test for goodwill as of February 29, 2020. The discount rates (developed using a weighted average cost of capital analysis) used in the goodwill test ranged from 13.2% to 13.3%. Based on the Company's goodwill impairment assessment, all reporting units with goodwill had estimated fair values as of February 29, 2020 that exceeded their carrying values. No goodwill impairment charges were recorded during the years ended February 29, 2020, February 28, 2019 and February 28, 2018. The goodwill balances of Invision, Klipsch, Rosen, and VSHC at February 29, 2020 are $7,372, $46,533, $880, and $215, respectively. The Company also tested its indefinite-lived intangible assets as of February 29, 2020 as part of its annual impairment testing. To perform these impairment analyses, the respective fair values were estimated using a relief-from-royalty method, applying royalty rates of 1.0% to 7.0% for the trademarks after reviewing comparable market rates, the profitability of the products associated with relative intangible assets, and other qualitative factors. We determined that risk-adjusted discount rates ranging from 13.2% to 25.0% were appropriately developed using a weighted average cost of capital analysis. The long-term growth rates ranged from 0% to 3.0%. As a result of this analysis, it was determined that there was impairment of several of the Company’s indefinite-lived intangible assets at February 29, 2020. Specifically, the Company determined that several of its indefinite-lived trademarks in the Consumer Electronics segment were impaired. The impairments were the result of the Company being unable to secure product placement into customer stores, anticipated shortfalls in sales due to economic uncertainty as a result of the COVID-19 pandemic, reduced demand from a large traditional brick-and-mortar customer, along with continued declines in the German economy. As a result, several indefinite-lived tradenames in the Consumer Electronics segment were impaired resulting in impairment charges of $2,828 recorded for the year ended February 29, 2020. Related long-lived assets were tested for recoverability and determined to be recoverable and therefore no additional impairments related to long-lived assets were recorded in the Consumer Electronics segment. Additionally, in the Biometrics segment, the Company determined that its indefinite-lived trademark was impaired. The impairment of the trademark was the result of lack of customer acceptance of the related technology, lower than anticipated results, adjusted expectations for demand and anticipated delays of product deployment with target customers due to economic uncertainty given the COVID-19 pandemic. Related long-lived assets in the Biometrics segment were tested for recoverability and determined not to be recoverable. The fair value of the long-lived assets that were not recoverable were estimated, and when compared to their carrying value, were determined to also be impaired. As a result, total impairments in the Biometric segment of $27,402 for indefinite-lived and definite-lived intangible assets were recorded for the year ended February 29, 2020. The combined impairment charges for both the Consumer Electronics segment and the Biometrics segment aggregated $30,230 for the year ended February 29, 2020. During the second quarter of Fiscal 2019, the Company re-evaluated its projections for several brands in its former Consumer Accessory and Automotive segments based on lower than anticipated results. Specifically, during the second quarter of Fiscal 2019, the lower than anticipated results were due to reduced product load-ins, increased competition for certain product lines, a streamlining of SKU’s, and a change in market strategy for one of its brands. Accordingly, these were considered indicators of impairment requiring the Company to test the related indefinite-lived trademarks for impairment as of August 31, 2018. As a result of this analysis, it was determined that several of the Company’s former Consumer Accessory trademarks and one Automotive trademark were impaired. During the fourth quarter, the Company further streamlined its SKU’s in conjunction with its corporate realignment and transformation initiatives, and adjusted expectations for select customer demand, and the anticipated results from alternative sales channels for one of its brands. As a result of this analysis, it was determined that two of the Company’s Consumer Accessory trademarks were impaired. As a result of the second and fourth quarter tests, the Company recorded total impairment charges of $25,629 and $160 during the year ended February 28, 2019 for the former Consumer Accessory and Automotive segments, respectively. No impairment charges were recorded related to indefinite-lived intangible assets for the year ended February 28, 2018 As a result of the Fiscal 2020 and 2019 indefinite-lived intangible asset impairments, the Company evaluated the related long-lived assets at the lowest level for which there are separately identifiable cash flows. For Fiscal 2020, impairments of $19,667 related to long-lived assets associated with the Biometrics segment were recorded. For Fiscal 2019, no additional impairments of the related long-lived assets were recorded as a result of these analyses. Additionally, no impairment charges were recorded related to definite-lived intangible assets for the year ended February 28, 2018. Management determined that the current lives of its long-lived assets are appropriate. Approximately 39% ($25,279) of the carrying value of the Company's indefinite lived trademarks are at risk of impairment and sensitive to changes and assumptions as of February 29, 2020. There can be no assurance that our estimates and assumptions made for purposes of impairment testing as of February 29, 2020 will prove to be accurate predictions of the future. Reduced demand for our existing product offerings, reductions of product placement at our customers, less than anticipated results, lack of acceptance of our new products, elimination of additional SKU's, the inability to successfully develop our brands, or unfavorable changes in assumptions used in the discounted cash flow model such as discount rates, royalty rates or projected long-term growth rates could result in additional impairment charges in the future. Goodwill The change in the carrying value of goodwill is as follows: February 29, 2020 February 28, 2019 February 28, 2018 Beginning of period $ 54,785 $ 54,785 $ 53,905 Goodwill acquired (see Note 2) 215 — 880 End of period $ 55,000 $ 54,785 $ 54,785 Gross carrying value $ 87,163 $ 86,948 $ 86,948 Accumulated impairment charges (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 55,000 $ 54,785 $ 54,785 February 29, 2020 February 28, 2019 February 28, 2018 Automotive Electronics Beginning of period $ 8,252 $ 8,252 $ 7,372 Goodwill acquired (see Note 2) 215 — 880 End of period $ 8,467 $ 8,252 $ 8,252 Gross carrying value $ 8,467 $ 8,252 $ 8,252 Accumulated impairment charge — — — Net carrying value $ 8,467 $ 8,252 $ 8,252 Consumer Electronics Beginning of period $ 46,533 $ 46,533 $ 46,533 Impairment charge — — — End of period $ 46,533 $ 46,533 $ 46,533 Gross carrying value $ 78,696 $ 78,696 $ 78,696 Accumulated impairment charge (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 46,533 $ 46,533 $ 46,533 Total goodwill, net $ 55,000 $ 54,785 $ 54,785 Note: The Company's Biometrics segment did not carry a balance for goodwill at February 29, 2020, February 28, 2019, or February 28, 2018. Intangible Assets February 29, 2020 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 51,491 $ 31,880 $ 19,611 Trademarks/Tradenames (3-10 years) 1,045 437 608 Developed technology (11.5 years) 14,144 12,244 1,900 Patents (4-13 years) 5,651 3,691 1,960 License 1,400 1,400 - Contracts (5 years) 1,556 1,556 - Total finite-lived intangible assets $ 75,287 $ 51,208 24,079 Indefinite-lived intangible assets Trademarks 64,209 Total intangible assets, net $ 88,288 February 28, 2019 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 49,743 $ 29,746 $ 19,997 Trademarks/Tradenames (3-10 years) 485 413 72 Developed technology (11.5 years) 31,290 9,523 21,767 Patents (4-13 years) 5,390 2,907 2,483 License 1,400 1,400 - Contracts (5 years) 2,141 1,966 175 Total finite-lived intangible assets $ 90,449 $ 45,955 44,494 Indefinite-lived intangible assets Trademarks 74,955 Total intangible assets, net $ 119,449 The weighted-average remaining amortization period for amortizing intangibles acquired during the year ended February 29, 2020 is approximately 10 years. The Company expenses the renewal costs of patents as incurred. The weighted-average period before the renewal of our patents is approximately 2 years. Amortization expense for intangible assets amounted to $7,010, $6,984 and $6,516 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. At February 29, 2020, the estimated aggregate amortization expense for all amortizable intangibles for each of the succeeding five fiscal years is as follows: Fiscal Year Amount 2021 $ 4,884 2022 4,685 2023 3,684 2024 3,381 2025 3,197 |
Sales Incentives | g) Sales Incentives The Company offers sales incentives to its customers in the form of (1) co-operative advertising allowances; (2) market development funds; (3) volume incentive rebates; and (4) other trade allowances. The Company accounts for sales incentives in accordance with ASC 606 "Revenue from Contracts with Customers" ("ASC 606"). These sales incentives represent variable consideration provided to customers. Depending on the specific facts and circumstances, we utilize either the most likely amount or expected value methods to estimate the effect of uncertainty on the amount of variable consideration to which we would be entitled. The most likely amount method considers the single most likely amount from a range of possible consideration amounts, while the expected value method is the sum of the probability-weighted amounts in a range of possible consideration amounts. Both methods are based upon the contractual terms of the incentives and historical experience with each customer. Except for other trade allowances, all sales incentives require the customer to purchase the Company's products during a specified period of time. All sales incentives require customers to claim the sales incentive within a certain time period (referred to as the "claim period") and claims are settled either by the customer claiming a deduction against an outstanding account receivable or by the customer requesting a cash payout. All costs associated with sales incentives are classified as a reduction of net sales. The following is a summary of the various sales incentive programs: Co-operative advertising allowances are offered to customers as reimbursement towards their costs for print or media advertising in which the Company’s product is featured on its own or in conjunction with other companies' products. The amount offered is either a fixed amount or is based upon a fixed percentage of sales revenue or a fixed amount per unit sold to the customer during a specified time period. Market development funds are offered to customers in connection with new product launches or entrance into new markets. The amount offered for new product launches is based upon a fixed amount, or percentage of sales revenue to the customer or a fixed amount per unit sold to the customer during a specified time period. Volume incentive rebates offered to customers require minimum quantities of product to be purchased during a specified period of time. The amount offered is either based upon a fixed percentage of sales revenue to the customer or a fixed amount per unit sold to the customer. The Company makes an estimate of the ultimate amount of the rebate their customers will earn based upon past history with the customers and other facts and circumstances. The Company has the ability to estimate these volume incentive rebates, as the period of time for a particular rebate to be claimed is relatively short. Any changes in the estimated amount of volume incentive rebates are recognized immediately using a cumulative catch-up adjustment. The Company accrues the cost of co-operative advertising allowances, volume incentive rebates and market development funds at the latter of when the customer purchases our products or when the sales incentive is offered to the customer. Unearned sales incentives are volume incentive rebates where the customer did not purchase the required minimum quantities of product during the specified time. Volume incentive rebates are reversed into income in the period when the customer did not reach the required minimum purchases of product during the specified time. Unclaimed sales incentives are sales incentives earned by the customer, but the customer has not claimed payment within the claim period (period after program has ended). Unclaimed sales incentives are investigated in a timely manner after the end of the program and reversed if deemed appropriate. The Company believes the reversal of earned but unclaimed sales incentives upon the expiration of the claim period is a systematic, rational, consistent and conservative method of reversing unclaimed sales incentives. Other trade allowances are additional sales incentives the Company provides to customers subsequent to the related revenue being recognized. The Company records the provision for these additional sales incentives at the latter of when the sales incentive is offered or when the related revenue is recognized. Such additional sales incentives are based upon a fixed percentage of the selling price to the customer, a fixed amount per unit, or a lump-sum amount. The accrual balance for sales incentives at February 29, 2020 and February 28, 2019 was $12,250 and $13,574, respectively. Although the Company makes its best estimate of its sales incentive liability, many factors, including significant unanticipated changes in the purchasing volume of its customers and the lack of claims made by customers, could have a significant impact on the sales incentives liability and reported operating results. A summary of the activity with respect to accrued sales incentives is provided below: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Opening balance $ 13,574 $ 14,020 $ 13,154 Liabilities acquired during acquisition 28 - - Accruals 35,345 37,272 42,722 Payments and credits (36,583 ) (37,516 ) (41,811 ) Reversals for unearned sales incentives (114 ) (202 ) (45 ) Ending balance $ 12,250 $ 13,574 $ 14,020 The majority of the reversals of previously established sales incentive liabilities pertain to sales recorded in prior periods. |
Advertising | h) Advertising Excluding co-operative advertising, the Company expensed the cost of advertising, as incurred, of $4,905, $5,417 and $11,753 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively. |
Research and Development | i) Research and Development Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $7,748, $9,169 and $10,954 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively, net of customer reimbursement, of $266, $375 and $106, respectively, and are included within Engineering and Technical Support expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income. Reimbursements from OEM customers for development services are reflected as a reduction of research and development expense because the performance of contract development services is not central to the Company's operations. |
Product Warranties and Product Repair Costs | j) Product Warranties and Product Repair Costs The Company generally warranties its products against certain manufacturing and other defects. This warranty does not provide a service beyond assuring that the products comply with agreed-upon specifications and is not sold separately. The Company provides warranties for all of its products ranging primarily from 30 days to 3 years. The Company also provides limited lifetime warranties for certain products, which limit the end user's remedy to the repair or replacement of the defective product during its lifetime, as well as for certain vehicle security products for the life of the vehicle for the original owner. Warranty expenses are accrued at the time the related revenue is recognized, based on the Company's estimated cost to repair expected product returns for warranty matters. This liability is based primarily on historical experiences of actual warranty claims as well as current information on repair costs and contract terms with certain manufacturers. The warranty liability of $3,241 and $3,090 is recorded in Accrued Expenses in the accompanying Consolidated Balance Sheets as of February 29, 2020 and February 28, 2019, respectively. In addition, the Company records a reserve for product repair costs which is based upon the quantities of defective inventory on hand and an estimate of the cost to repair such defective inventory. The reserve for product repair costs of $1,507 and $1,379 is recorded as a reduction to inventory in the accompanying Consolidated Balance Sheets as of February 29, 2020 and February 28, 2019, respectively. Warranty claims and product repair costs expense relating to continuing operations for the years ended February 29, 2020, February 28, 2019 and February 28, 2018 were $4,935, $6,091 and $7,428, respectively. Changes in the Company's accrued product warranties and product repair costs are as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Beginning balance $ 4,469 $ 6,233 $ 5,608 Liabilities acquired during acquisitions 188 - 500 Accrual for warranties issued during the year and repair cost 4,935 6,091 7,428 Balances transferred (a) - (832 ) — Warranty claims settled during the year (4,844 ) (7,023 ) (7,303 ) Ending balance $ 4,748 $ 4,469 $ 6,233 (a) In conjunction with the implementation of ASC Topic 606, "Revenue from Contracts with Customers" (see Note 1(g)), the Company recorded a refund liability, representing the amount of consideration received for products sold that the Company expects to refund to customers, as well as a corresponding return asset that reflects the Company's right to receive goods back from customers. The return asset is calculated as the carrying value of goods at the time of sale, less any expected costs to recover the goods and any expected reduction in value and is included in Prepaid expenses and other current assets on the Consolidated Balance Sheets at February 29, 2020 and February 28, 2019. The balance above represents the amount that reduced the value of inventory returned to the Company and was reclassified to the return asset in order to properly reflect the value of the inventory the Company expects to receive back from customers. |
Foreign Currency | k) Foreign Currency Assets and liabilities of subsidiaries located outside the United States whose cash flows are primarily in local currencies have been translated at rates of exchange at the end of the period or historical exchange rates, as appropriate in accordance with ASC 830, "Foreign Currency Matters" ("ASC 830"). Revenues and expenses have been translated at the weighted-average rates of exchange in effect during the period. Gains and losses resulting from translation are recorded in the cumulative foreign currency translation account in Accumulated other comprehensive (loss) income. For the years ended February 29, 2020, February 28, 2019 and February 28, 2018, the Company recorded total net foreign currency transaction gains (losses) in the amount of $405, $220 and $(8,769), respectively. Included within the losses recorded for the year ended February 28, 2018 is the loss on forward contracts totaling $(6,618) incurred in conjunction with the sale of Hirschmann (see Note 2). The Company has a subsidiary in Venezuela. Venezuela is currently experiencing significant political and civil unrest and economic instability and has been troubled with various foreign currency and price controls. The President of Venezuela has the authority to legislate certain areas by decree, which allows the government to nationalize certain industries or expropriate certain companies and property. The Company applies hyper-inflationary accounting to Venezuela in accordance with the guidelines in ASC 830, "Foreign Currency." A hyper-inflationary economy designation occurs when a country has experienced cumulative inflation of approximately 100 percent or more over a 3-year period. The hyper-inflationary designation requires the local subsidiary in Venezuela to record all transactions as if they were denominated in U.S. dollars. In Fiscal 2019, the Venezuelan government devalued the Bolivar Fuerte in an attempt to address continuing hyperinflation, also renaming it the Sovereign Bolivar. As of February 29, 2020 and February 28, 2019, the Bolivars to U.S. dollar exchange rate was approximately 73,470 and 3,290, respectively. For the years ended February 29, 2020, February 28, 2019 and February 28, 2018, total net currency exchange losses of $2, $6 and $148 were recorded, respectively, related to Venezuela. All currency exchange gains and losses are included in Other (expense) income on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company holds certain long-lived assets in Venezuela, which includes an office location the subsidiary uses for its local personnel, as its automotive operations are currently suspended, as well as other rental properties. All of these properties are held for investment purposes as of February 29, 2020. During the second quarter of Fiscal 2019, the Company assessed of the recoverability of these properties as a result of the country's continued economic deterioration, which included a significant currency devaluation in August of 2018. The Company estimated the future undiscounted cash flows expected to be received from these properties. The estimate of the future undiscounted cash flows considered the Company’s financial condition and its intent and ability to retain its investments for a period of time sufficient to allow for the recovery of the carrying value. The future undiscounted cash flows did not exceed the net carrying value for the long-lived assets. The estimated fair value of the properties, which also considered the current conditions of the economy in Venezuela, the volatility of the real estate market, and the significant political unrest, resulted in a full non-cash impairment charge of $3,473 for the year ended February 28, 2019, which wrote off the remaining balance of the Company's property, plant, and equipment in Venezuela. The non-cash impairment charge is included in Other (expense) income on the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Income Taxes | l) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all positive and negative evidence including the results of recent operations, scheduled reversal of deferred tax liabilities, future taxable income and tax planning strategies. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled (see Note 8). The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Uncertain Tax Positions The Company adopted guidance included in ASC 740 as it relates to uncertain tax positions. The guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements. Tax interest and penalties The Company classifies interest and penalties associated with income taxes as a component of Income tax expense (benefit) on the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Uncertain Tax Positions | Uncertain Tax Positions The Company adopted guidance included in ASC 740 as it relates to uncertain tax positions. The guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements. |
Net Income (Loss) Per Common Share | m) Net Income (Loss) Per Common Share Basic net (loss) income per common share from continuing operations, net of non-controlling interest, is based upon the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per common share from continuing operations reflects the potential dilution that would occur if common stock equivalent securities or other contracts to issue common stock were exercised or converted into common stock. There are no reconciling items which impact the numerator of basic and diluted net (loss) income per common share. A reconciliation between the denominator of basic and diluted net (loss) income per common share is as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Weighted-average common shares outstanding (basic) 24,394,663 24,355,791 24,290,563 Effect of dilutive securities: Stock options, warrants and restricted stock - - 256,683 Weighted-average common and potential common shares outstanding (diluted) 24,394,663 24,355,791 24,547,246 Restricted stock totaling 701,024, 618,155 and 534,327 for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, respectively, were not included in the net (loss) income per common share calculation because the exercise price of the restricted stock and stock grants was greater than the average market price of the Company's common stock during these periods, or the inclusion of these components would have been anti-dilutive. |
Other (Expense) Income | n) Other (Expense) Income Other (expense) income is comprised of the following: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Foreign currency gain (loss) $ 405 $ 220 $ (8,769 ) Interest income 918 994 210 Rental income 692 517 553 Miscellaneous 63 (1,154 ) 416 Total other, net $ 2,078 $ 577 $ (7,590 ) On August 31, 2017, the Company completed its sale of Hirschmann Car Communication GmbH to a subsidiary of TE Connectivity Ltd. which was subject to an adjustment based on the final working capital (see Note 2). Included within Miscellaneous for the year ended February 29, 2020 is a payment of $804 made on November 11, 2019 in settlement of the final working capital calculation. Also included within Miscellaneous for the year ended February 29, 2020 are proceeds from a key man life insurance policy in the amount of $1,000 related to a former employee of Klipsch Group, Inc. that Voxx became the beneficiary of in conjunction with the acquisition of Klipsch in Fiscal 2012. At the time of acquisition, the individual was no longer employed by Klipsch and was never an employee of Voxx; however, Voxx remained the beneficiary of the policy until the individual’s death. Interest income for the years ended February 29, 2020 and February 28, 2019 includes increases in interest income earned from money market investments, which the Company increased following the sale of Hirschmann in the second quarter of Fiscal 2018. Included within the foreign currency loss for the year ended February 28, 2018 is a loss on forward contracts totaling $6,618 incurred in conjunction with the sale of Hirschmann (see Note 2). |
Accounting for the Impairment of Long-Lived Assets | o) Accounting for the Impairment of Long-Lived Assets Long-lived assets and certain identifiable intangible assets are reviewed for impairment in accordance with ASC 360 whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of an asset to future undiscounted net cash flows expected to be generated by the asset. Recoverability of long-lived assets is measured by comparing the carrying value of the assets to their estimated fair market value. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds the fair value of the assets. See Note 1(p) for the discussion of the impairment of long-lived assets held in Venezuela for the year ended February 28, 2019. There were no impairments of long-lived assets recorded during the years ended February 29, 2020 and February 28, 2018. |
Accounting for Stock-Based Compensation | p) Accounting for Stock-Based Compensation The Company has a stock-based compensation plan under which employees and non-employee directors may be granted incentive stock options ("ISO's") and non-qualified stock options ("NQSO's") to purchase shares of Class A common stock. Under the plan, the exercise price of the ISO's granted to a ten percent stockholder must equal 110% of the fair market value of the Company's Class A common stock on the date of grant. The exercise price of all other Options and Stock Appreciation Right ("SAR") awards may not be less than 100% of the fair market value of the Company's Class A common stock on the date of grant. If an option or SAR is granted pursuant to an assumption of, or substitution for, another option or SAR pursuant to a Corporate Transaction, and in a manner consistent with Section 409A of the Internal Revenue Code (“the Code”), the exercise or strike price may be less than 100% of the fair market value on the date of grant. The plan permits for options to be exercised at various intervals as determined by the Board of Directors. However, the maximum expiration period is ten years from date of grant. The vesting requirements are determined by the Board of Directors at the time of grant. Exercised options are issued from authorized Class A common stock. As of February 29, 2020, approximately 542,000 shares were available for future grants under the terms of these plans. Options are measured at the fair value of the award at the date of grant and are recognized as an expense over the requisite service period. Compensation expense related to stock-based awards with vesting terms are amortized using the straight-line attribution method. There were no stock options granted during the years ended February 29, 2020, February 28, 2019, or February 28, 2018. During the years ended February 29, 2020, February 28, 2019 and February 28, 2018 there were no stock-based compensation costs or professional fees recorded by the Company and the Company had no unrecognized compensation costs at February 29, 2020 related to stock options and warrants. A restricted stock award is an award of common stock that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are subject to forfeiture if employment terminates for a reason other than death, disability or retirement, prior to the release of the restrictions. Shares under restricted stock grants are not issued to the grantees before they vest. In Fiscal 2014, the Company established the Supplemental Executive Retirement Plan ("SERP") (see Note 10(a)). During the years ended February 29, 2020, February 28, 2019 and February 28, 2018, an additional 71,352, 188,245, and 74,156 shares of restricted stock were granted under the SERP, respectively. These shares were granted based on certain performance criteria and vest on the later of three years from the date of grant, or the grantee reaching the age of 65 years. The shares will also vest upon termination of the grantee's employment by the Company without cause, provided that the grantee, at the time of termination, has been employed by the Company for at least 10 years, or as a result of the sale of all of the issued and outstanding stock, or all, or substantially all, of the assets of the subsidiary of which the grantee serves as CEO and/or President. When vested shares are issued to the grantee, the awards will be settled in shares or in cash, at the Company's sole option. The grantees cannot transfer the rights to receive shares before the restricted shares vest. There are no market conditions inherent in the award, only an employee performance requirement, and the service requirement that the respective employee continues employment with the Company through the vesting date. The Company expenses the cost of the restricted stock awards on a straight-line basis over the requisite service period of each employee. For these purposes, the fair market value of the restricted stock awards, $4.65, $5.50, and $6.52 for Fiscal 2020, Fiscal 2019, and Fiscal 2018, respectively, were determined based on the mean of the high and low price of the Company's common stock on the grant dates. In conjunction with the sale of Hirschmann on August 31, 2017 (see Note 2), all restricted shares granted to the CEO and President of Hirschmann, totaling 72,300 shares immediately vested in accordance with the SERP and were settled in cash in the amount of $582. The remaining unrecognized stock-based compensation expense related to this individual's restricted stock awards was recognized as a reduction of the gain on sale of discontinued operations in the amount of $373. Grant of Shares to Chief Executive Officer On July 8, 2019, the Board of Directors approved a five-year Employment Agreement (the “Employment Agreement”), effective March 1, 2019, by and between the Company and Patrick M. Lavelle, the Company’s President and Chief Executive Officer. Under the terms of the Employment Agreement, in addition to a $1,000 salary and cash bonus based on the Company’s Adjusted EBITDA, Mr. Lavelle received certain stock-based compensation as discussed below: - An initial stock grant of 200,000 fully vested shares of Class A Common Stock issued under the 2012 Equity Incentive Plan. Compensation expense of $830 was recognized during the year ended February 29, 2020 based upon the grant fair value of $4.15 per share. - Additional stock grants of 100,000 shares of Class A Common Stock to be issued on each of March 1, 2020, March 1, 2021, and March 1, 2022. Compensation expense of $679 was recognized during the year ended February 29, 2020 based upon the grant fair value of $4.15 per share using the graded vesting attribution method. - Grant of market stock units (“MSU’s”) up to a maximum value of $5,000, based upon the achievement of a 90-calendar day average stock price of no less than $5.49 over the performance period ending on the third and fifth anniversary of the effective date of the Employment Agreement. The value of the MSU award increases based upon predetermined targeted 90-calendar day average stock prices with a maximum of $5,000 if the 90-calendar day average high stock price equals or exceeds $15.00. The award is weighted toward achievement of a significant increase in our stock price as half of the award will be granted to Mr. Lavelle only if the 90-calendar day high stock price equals or exceeds $13.00. The average stock price is calculated based on the highest average closing price of one share of our Class A common stock, as reported on the NASDAQ Stock Market during any 90-calendar day period prior to each measurement date. The number of shares to be issued related to the MSUs based upon achievement of the maximum award value of $5,000 and if issued at $15.00 per share is estimated at 333,333 shares. Actual results may differ based upon when the high average stock price is achieved and settled. The Company used a Monte Carlo simulation to calculate the fair value of the award on the grant date. A Monte Carlo simulation requires the use of various assumptions, including the stock price volatility and risk-free interest rate as of the valuation date. We recognized stock-based compensation expense of $157 for the year ended February 29, 2020 related to these MSU’s using the graded vesting attribution method over the performance period. As of February 29, 2020, all of the MSU’s remain outstanding. All the stock grants under the Employment Agreement are subject to a hold requirement as specified in the Employment Agreement. The Employment Agreement gave Mr. Lavelle, in certain limited change of control situations, the right to require the Company to purchase the shares in connection with the Employment Agreement, shares personally acquired by Mr. Lavelle, and shares issued to him under other incentive compensation arrangements. Accordingly, the stock awards issued in connection with the Employment Agreement are presented as redeemable equity on the consolidated balance sheet at grant-date fair value. Shares previously held by Mr. Lavelle under the SERP and those personally purchased by Mr. Lavelle have been reclassified from permanent equity to redeemable equity. As the contingent events that would allow Mr. Lavelle to redeem the shares are not probable at this time, remeasurement of the amounts in redeemable equity have not been recorded. The Employment Agreement contains certain restrictive and non-solicitation covenants. The following table presents a summary of the activity related to the SERP and the initial stock grant and additional stock grants under the Employment Agreement for the year ended February 29, 2020: Number of shares Weighted Average Grant Date Fair Value Unvested share balance at February 28, 2017 381,262 $ 6.01 Granted 74,156 6.52 Vested (60,868 ) 7.77 Vested and settled (72,300 ) 5.98 Forfeited — — Unvested share balance at February 28, 2018 322,250 $ 5.80 Granted 188,245 5.50 Vested (39,688 ) 8.13 Forfeited — — Unvested share balance at February 28, 2019 470,807 $ 5.49 Granted 571,352 4.21 Vested (127,007 ) 4.18 Vested and Settled (200,000 ) 4.15 Forfeited — — Unvested share balance at February 29, 2020 715,152 $ 5.07 At February 29, 2020, there were 283,744 shares of vested and unissued shares under the Company’s SERP with a weighted average fair value of $7.37. During the years ended February 29, 2020, February 28, 2019 and February 28, 2018 the Company recorded $2,282, $551 and $502, respectively, in stock-based compensation related to the SERP, and to the initial stock grant, additional stock grants, and MSU’s under the Employment Agreement. As of February 29, 2020, unrecognized stock-based compensation expense related to unvested restricted stock awards was approximately $2,471 and will be recognized over the requisite service period of each employee. |
Accumulated Other Comprehensive Loss | q) Accumulated Other Comprehensive Loss Foreign Currency Translation Losses Unrealized losses on investments, net of tax (a) Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2017 $ (41,831 ) $ (98 ) $ (2,282 ) $ 313 $ (43,898 ) Other comprehensive income (loss) before reclassifications 18,065 (15 ) (459 ) (1,358 ) 16,233 Reclassified from accumulated other comprehensive income (loss) 10,739 89 1,955 660 13,443 Net current-period other comprehensive income (loss) 28,804 74 1,496 (698 ) 29,676 Balance at February 28, 2018 $ (13,027 ) $ (24 ) $ (786 ) $ (385 ) $ (14,222 ) Other comprehensive (loss) income before reclassifications (3,195 ) - (12 ) 452 (2,755 ) Reclassified from accumulated other comprehensive (loss) income - 24 - 9 33 Net current-period other comprehensive (loss) income (3,195 ) 24 (12 ) 461 (2,722 ) Balance at February 28, 2019 $ (16,222 ) $ - $ (798 ) $ 76 $ (16,944 ) Other comprehensive loss before reclassifications (1,517 ) - (89 ) (157 ) (1,763 ) Reclassified from accumulated other comprehensive loss - - - (348 ) (348 ) Net current-period other comprehensive loss (1,517 ) - (89 ) (505 ) (2,111 ) Balance at February 29, 2020 $ (17,739 ) $ - $ (887 ) $ (429 ) $ (19,055 ) (a) Pursuant to ASU 2016-01, adopted by the Company beginning on March 1, 2018 (see Note 1(f)), changes in fair value of the Company's investments in equity securities are now recorded in earnings. In the above table, all reclassifications of other comprehensive income for the year ended February 28, 2018 for foreign currency translation, investments and pension plan adjustments are related to the sale of Hirschmann on August 31, 2017 (see Note 2). Within reclassifications for derivatives designated in a hedging relationship, gains totaling $71 are related to cash flow hedge activity of discontinued operations for the year ended February 28, 2018, and $384 is related to the sale of Hirschmann on August 31, 2017. Within other comprehensive income (loss) before reclassifications for derivatives designated in a hedging relationship, $(501) is related to cash flow hedge activity of discontinued operations for the year ended February 28, 2018. During the years ended February 29, 2020, February 28, 2019 and February 28, 2018, the Company recorded tax related to unrealized losses on investments of $0, pension plan adjustments of $38, $21 and $0, respectively and derivatives designated in a hedging relationship of $35, $(152) and $(645), respectively. The other comprehensive (loss) income before reclassification for foreign currency translation of $(1,517), $(3,195), and $18,065, respectively, includes the remeasurement of intercompany transactions of a long term investment nature of $(56), $(1,064) and $12,488, respectively, with certain subsidiaries whose functional currency is not the U.S. dollar, and $(1,461), $(2,131) and $5,577, respectively, from translating the financial statements of the Company's non-U.S. dollar functional currency subsidiaries into our reporting currency, which is the U.S. dollar. Intercompany loans and transactions that are of a long-term investment nature are remeasured and resulting gains and losses shall be reported in the same manner as translation adjustments. Foreign currency translation losses reclassified from accumulated other comprehensive income (loss) of $10,739 for the year ended February 28, 2018 included $9,911 due to the settlement of a Euro-based loan and the recognition of the cumulative translation adjustment of $828 due to the sale of Hirschmann. Within foreign currency translation gains (losses) in Other comprehensive (loss) income for the years ended February 29, 2020, February 28, 2019 and February 28, 2018, the Company recorded total gains (losses) of $(1,435), $(2,876), and $17,559, respectively, related to the Euro; $(22), $(240), and $250, respectively, related to the Canadian Dollar; $(17), $(18) and $71, respectively, for the Mexican Peso, as well as $(24), $(61) and $185, respectively, for various other currencies. These adjustments were caused by the strengthening/(weakening) of the U.S. Dollar against the Euro, Canadian Dollar and the Mexican Peso between 2% and 4% in Fiscal 2020, 2% and 7% in Fiscal 2019, and (13%) and (3%) in Fiscal 2018. |
New Accounting Pronouncements | r) New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the guidance, ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, ASU 2019-05 in May 2019, ASU 2019-10 and ASU 2019-11 in November 2019, and ASU 2020-02 in February 2020. The update changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The update will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying value, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2018-19 clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. ASU 2019-04 clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. ASU 2019-05 In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." Under the new guidance, if a reporting unit's carrying value amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates today's requirement to calculate goodwill impairment using Step 2, which calculates an impairment charge by comparing the implied fair value of goodwill with its carrying value. The standard does not change the guidance on completing Step 1 of the goodwill impairment test. The amendments in this ASU are effective for annual or any interim goodwill impairments tests in fiscal years beginning after December 15, 2019 and should be applied prospectively. The Company does not expect the new standard to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement ('Topic 820'): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently assessing the effect, if any, that ASU 2018-13 will have on the disclosures to its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2020. The amendments in ASU 2018-14 must be applied on a retrospective basis. The Company is currently assessing the effect, if any, that ASU 2018-14 will have on the disclosures to its consolidated financial statements. In October 2018, the FASB issued ASU No. 2018-17: "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities." This ASU requires entities to consider indirect interests held through related parties under common control on a proportional basis, rather than as the equivalent of a direct interest in its entirety when determining whether a decision-making fee is a variable interest. The ASU is effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. The Company does not expect the adoption of ASU 2018-17 to have a material impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606." The ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company does not expect the adoption of ASU 2018-18 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” This guidance removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740 . In January 2020, the FASB issued ASU No. 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements . |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Assets and Liabilities Measured on Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis at February 29, 2020: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 37,425 $ 37,425 $ — Derivatives Designated for hedging $ (476 ) $ — $ (476 ) Investment securities: Mutual funds $ 2,282 $ 2,282 $ — Total investment securities $ 2,282 $ 2,282 $ — The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2019: Fair Value Measurements at Reporting Date Using Carrying Value Level 1 Level 2 Cash and cash equivalents: Cash and money market funds $ 58,236 $ 58,236 $ — Derivatives Designated for hedging $ 88 $ — $ 88 Investment securities: Mutual funds $ 2,858 $ 2,858 $ — Total investment securities $ 2,858 $ 2,858 $ — |
Fair Value for Derivative Instruments | The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 29, 2020 and February 28, 2019 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 29, 2020 February 28, 2019 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 172 Interest rate swap Other long-term liabilities (476 ) (84 ) Total derivatives $ (476 ) $ 88 |
Activity Related to Cash Flow Hedges from Continuing Operations | Activity related to cash flow hedges from continuing operations recorded during the twelve months ended February 29, 2020 and February 28, 2019 was as follows: February 29, 2020 February 28, 2019 Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Reclassified into Cost of Sales Gain (Loss) for Ineffectiveness in Other Income Gain (Loss) Recognized in Other Comprehensive Income Loss Reclassified into Cost of Sales Gain for Ineffectiveness in Other Income (a) Cash flow hedges Foreign currency contracts $ 331 $ 428 $ — $ 708 $ (13 ) $ 46 Interest rate swaps $ (392 ) $ — $ — $ (49 ) $ — $ — (a) Amount represents the ineffectiveness recorded in the prior fiscal year. Prior to the adoption of ASU 2017-12, hedge ineffectiveness (as defined under ASC 815) was recorded in Other income (loss). |
Summary of Investment Securities | As of February 29, 2020 and February 28, 2019, the Company had the following investments: February 29, 2020 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,282 Total Marketable Equity Securities 2,282 Total Investment Securities $ 2,282 February 28, 2019 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 2,858 Total Marketable Equity Securities 2,858 Total Investment Securities $ 2,858 |
Schedule of Accounts Receivable | Accounts receivable is comprised of the following: February 29, 2020 February 28, 2019 Trade accounts receivable $ 72,419 $ 77,064 Less: Allowance for doubtful accounts 1,954 2,548 Allowance for cash discounts 751 1,125 $ 69,714 $ 73,391 |
Inventories by Major Category | Inventories by major category are as follows: February 29, 2020 February 28, 2019 Raw materials $ 29,115 $ 27,518 Work in process 2,366 2,622 Finished goods 67,629 72,239 Inventory, net $ 99,110 $ 102,379 |
Summary of Property, Plant and Equipment, Net | A summary of property, plant and equipment, net, is as follows: February 29, 2020 February 28, 2019 Land $ 6,978 $ 10,110 Buildings 43,801 49,301 Property under finance lease 2,503 1,907 Furniture and fixtures 4,152 3,878 Machinery and equipment 8,245 8,618 Construction-in-progress 483 155 Computer hardware and software 38,808 37,591 Automobiles 735 808 Leasehold improvements 1,858 2,682 107,563 115,050 Less accumulated depreciation and amortization 56,139 54,557 $ 51,424 $ 60,493 |
Summary of Estimated Useful Lives of Assets | Depreciation is calculated on the straight-line method over the estimated useful lives of the assets as follows: Buildings and improvements 20 - 40 years Furniture and fixtures 5 - 15 years Machinery and equipment 5 - 15 years Computer hardware and software 3 - 5 years Automobiles 3 years |
Change in Carrying Value of Goodwill | The change in the carrying value of goodwill is as follows: February 29, 2020 February 28, 2019 February 28, 2018 Beginning of period $ 54,785 $ 54,785 $ 53,905 Goodwill acquired (see Note 2) 215 — 880 End of period $ 55,000 $ 54,785 $ 54,785 Gross carrying value $ 87,163 $ 86,948 $ 86,948 Accumulated impairment charges (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 55,000 $ 54,785 $ 54,785 February 29, 2020 February 28, 2019 February 28, 2018 Automotive Electronics Beginning of period $ 8,252 $ 8,252 $ 7,372 Goodwill acquired (see Note 2) 215 — 880 End of period $ 8,467 $ 8,252 $ 8,252 Gross carrying value $ 8,467 $ 8,252 $ 8,252 Accumulated impairment charge — — — Net carrying value $ 8,467 $ 8,252 $ 8,252 Consumer Electronics Beginning of period $ 46,533 $ 46,533 $ 46,533 Impairment charge — — — End of period $ 46,533 $ 46,533 $ 46,533 Gross carrying value $ 78,696 $ 78,696 $ 78,696 Accumulated impairment charge (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 46,533 $ 46,533 $ 46,533 Total goodwill, net $ 55,000 $ 54,785 $ 54,785 |
Schedule of Intangible Assets, Excluding Goodwill | February 29, 2020 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 51,491 $ 31,880 $ 19,611 Trademarks/Tradenames (3-10 years) 1,045 437 608 Developed technology (11.5 years) 14,144 12,244 1,900 Patents (4-13 years) 5,651 3,691 1,960 License 1,400 1,400 - Contracts (5 years) 1,556 1,556 - Total finite-lived intangible assets $ 75,287 $ 51,208 24,079 Indefinite-lived intangible assets Trademarks 64,209 Total intangible assets, net $ 88,288 February 28, 2019 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 49,743 $ 29,746 $ 19,997 Trademarks/Tradenames (3-10 years) 485 413 72 Developed technology (11.5 years) 31,290 9,523 21,767 Patents (4-13 years) 5,390 2,907 2,483 License 1,400 1,400 - Contracts (5 years) 2,141 1,966 175 Total finite-lived intangible assets $ 90,449 $ 45,955 44,494 Indefinite-lived intangible assets Trademarks 74,955 Total intangible assets, net $ 119,449 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At February 29, 2020, the estimated aggregate amortization expense for all amortizable intangibles for each of the succeeding five fiscal years is as follows: Fiscal Year Amount 2021 $ 4,884 2022 4,685 2023 3,684 2024 3,381 2025 3,197 |
Summary of Activity with Respect to Accrued Sales Incentives | A summary of the activity with respect to accrued sales incentives is provided below: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Opening balance $ 13,574 $ 14,020 $ 13,154 Liabilities acquired during acquisition 28 - - Accruals 35,345 37,272 42,722 Payments and credits (36,583 ) (37,516 ) (41,811 ) Reversals for unearned sales incentives (114 ) (202 ) (45 ) Ending balance $ 12,250 $ 13,574 $ 14,020 |
Changes in Accrued Product Warranties and Product Repair Costs | Changes in the Company's accrued product warranties and product repair costs are as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Beginning balance $ 4,469 $ 6,233 $ 5,608 Liabilities acquired during acquisitions 188 - 500 Accrual for warranties issued during the year and repair cost 4,935 6,091 7,428 Balances transferred (a) - (832 ) — Warranty claims settled during the year (4,844 ) (7,023 ) (7,303 ) Ending balance $ 4,748 $ 4,469 $ 6,233 |
Reconciliation Between Denominator of Basic and Diluted Net (Loss) Income Per Common Share | There are no reconciling items which impact the numerator of basic and diluted net (loss) income per common share. A reconciliation between the denominator of basic and diluted net (loss) income per common share is as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Weighted-average common shares outstanding (basic) 24,394,663 24,355,791 24,290,563 Effect of dilutive securities: Stock options, warrants and restricted stock - - 256,683 Weighted-average common and potential common shares outstanding (diluted) 24,394,663 24,355,791 24,547,246 |
Schedule of Other Nonoperating Income (Expense) | Other (expense) income is comprised of the following: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Foreign currency gain (loss) $ 405 $ 220 $ (8,769 ) Interest income 918 994 210 Rental income 692 517 553 Miscellaneous 63 (1,154 ) 416 Total other, net $ 2,078 $ 577 $ (7,590 ) |
Summary of Activity Related to SERP and Initial Stock Grant and Additional Stock Grants under Employment Agreement | The following table presents a summary of the activity related to the SERP and the initial stock grant and additional stock grants under the Employment Agreement for the year ended February 29, 2020: Number of shares Weighted Average Grant Date Fair Value Unvested share balance at February 28, 2017 381,262 $ 6.01 Granted 74,156 6.52 Vested (60,868 ) 7.77 Vested and settled (72,300 ) 5.98 Forfeited — — Unvested share balance at February 28, 2018 322,250 $ 5.80 Granted 188,245 5.50 Vested (39,688 ) 8.13 Forfeited — — Unvested share balance at February 28, 2019 470,807 $ 5.49 Granted 571,352 4.21 Vested (127,007 ) 4.18 Vested and Settled (200,000 ) 4.15 Forfeited — — Unvested share balance at February 29, 2020 715,152 $ 5.07 |
Schedule of Accumulated Other Comprehensive Loss | q) Accumulated Other Comprehensive Loss Foreign Currency Translation Losses Unrealized losses on investments, net of tax (a) Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total Balance at February 28, 2017 $ (41,831 ) $ (98 ) $ (2,282 ) $ 313 $ (43,898 ) Other comprehensive income (loss) before reclassifications 18,065 (15 ) (459 ) (1,358 ) 16,233 Reclassified from accumulated other comprehensive income (loss) 10,739 89 1,955 660 13,443 Net current-period other comprehensive income (loss) 28,804 74 1,496 (698 ) 29,676 Balance at February 28, 2018 $ (13,027 ) $ (24 ) $ (786 ) $ (385 ) $ (14,222 ) Other comprehensive (loss) income before reclassifications (3,195 ) - (12 ) 452 (2,755 ) Reclassified from accumulated other comprehensive (loss) income - 24 - 9 33 Net current-period other comprehensive (loss) income (3,195 ) 24 (12 ) 461 (2,722 ) Balance at February 28, 2019 $ (16,222 ) $ - $ (798 ) $ 76 $ (16,944 ) Other comprehensive loss before reclassifications (1,517 ) - (89 ) (157 ) (1,763 ) Reclassified from accumulated other comprehensive loss - - - (348 ) (348 ) Net current-period other comprehensive loss (1,517 ) - (89 ) (505 ) (2,111 ) Balance at February 29, 2020 $ (17,739 ) $ - $ (887 ) $ (429 ) $ (19,055 ) (a) Pursuant to ASU 2016-01, adopted by the Company beginning on March 1, 2018 (see Note 1(f)), changes in fair value of the Company's investments in equity securities are now recorded in earnings. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Acquisitions And Dispositions [Abstract] | |
Summary of Allocation of Purchase Price for Fair Value of Asset Acquired and Liabilities Assumed | The following summarizes the allocation of the purchase price based upon the fair value of the assets acquired and liabilities assumed at the date of acquisition: January 31, 2020 Assets acquired: Inventory $ 6,982 Accounts receivable 3,415 Right of use assets 483 Other current assets 145 Property and equipment 714 Customer relationships 5,460 Trademarks 560 Patented technology 280 Goodwill 215 Other non-current assets 3 Total assets acquired $ 18,257 Liabilities assumed: Accounts payable 757 Accrued expenses 219 Lease liabilities 483 Warranty accrual 188 Total $ 1,647 Total purchase price $ 16,610 The following summarizes the allocation of the purchase price for the fair value of the assets acquired and liabilities assumed at the date of acquisition: April 18, 2017 (as originally reported) Measurement Period Adjustments April 18, 2017 (as adjusted) Assets acquired: Inventory $ 2,314 (870 ) 1,444 Goodwill 10 870 880 Intangible assets including trademarks and customer relationships 520 - 520 Total assets acquired $ 2,844 $ - $ 2,844 Liabilities assumed: Warranty accrual 500 - 500 Total $ 500 $ - $ 500 Total purchase price $ 2,344 $ - $ 2,344 |
Schedule of Reconciliation of Results of Operations for Discontinued Operations to Net Income from Discontinued Operations, Net of Tax | The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Consolidated Statements of Operations and Comprehensive (Loss) Income: Year ended February 28, 2018 Net sales $ 91,824 Cost of sales 63,610 Gross profit 28,214 Operating expenses: Selling 2,778 General and administrative 14,699 Engineering and technical support 7,920 Total operating expenses 25,397 Operating income from discontinued operations 2,817 Other (expense) income: Interest and bank charges (a) (279 ) Other, net 145 Total other expense of discontinued operations, net (134 ) Gain on sale of discontinued operations before taxes 36,118 Total income from discontinued operations before taxes 38,801 Income tax expense on discontinued operations (b) 4,183 Income from discontinued operations, net of taxes $ 34,618 Income per share - basic $ 1.43 Income per share - diluted $ 1.41 (a) Includes an allocation of consolidated interest expense and interest expense directly related to debt assumed by the buyer. The allocation of consolidated interest expense was based upon the ratio of net assets of the discontinued operations to that of the Consolidated Company. (b) The income tax expense on discontinued operations for the year ended February 28, 2018 was positively impacted by an income tax benefit related to the partial reversal of the Company’s valuation allowance as the Company utilized a significant portion of its tax attributes to offset the U.S. tax gain related to the sale of Hirschmann. |
Schedule of Supplemental Cash Flow Information of Discontinued Operations | The following table presents supplemental cash flow information of the discontinued operations: Year ended February 28, 2018 Operating activities: Depreciation and amortization expense $ 2,939 Stock-based compensation expense 50 Investing activities: Capital expenditures 2,652 Non-cash investing and financing activities: Capital expenditures funded by long-term obligations 1,916 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended |
Feb. 29, 2020 | |
Variable Interest Entity [Line Items] | |
Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets | The following table sets forth the carrying values of assets and liabilities of EyeLock LLC that were included on our Consolidated Balance Sheet as of February 29, 2020 and February 28, 2019: February 29, 2020 February 28, 2019 Assets Current assets: Cash and cash equivalents $ - $ 3 Accounts receivable, net 147 363 Inventory, net 2,052 (27 ) Prepaid expenses and other current assets 313 322 Total current assets 2,512 661 Property, plant and equipment, net 69 120 Intangible assets, net 2,600 33,064 Other assets 76 253 Total assets $ 5,257 $ 34,098 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,086 $ 1,122 Interest payable to VOXX 9,994 8,729 Accrued expenses and other current liabilities 252 1,030 Due to VOXX 54,074 44,937 Total current liabilities 66,406 55,818 Other long-term liabilities 1,200 1,200 Total liabilities 67,606 57,018 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (103,765 ) (64,336 ) Total partners' deficit (62,349 ) (22,920 ) Total liabilities and partners' deficit $ 5,257 $ 34,098 |
Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive (Loss) Income | The following table sets forth the revenue and expenses of EyeLock LLC that were included in our Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended February 29, 2020, February 28, 2019, and February 28, 2018: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Net sales $ 476 $ 668 $ 335 Cost of sales 826 309 455 Gross profit (350 ) 359 (120 ) Operating expenses: Selling 710 1,160 1,893 General and administrative 4,625 4,986 6,792 Engineering and technical support 5,144 7,487 7,159 Intangible asset impairment charges (Note 1(k)) 27,402 - - Total operating expenses 37,881 13,633 15,844 Operating loss (38,231 ) (13,274 ) (15,964 ) Other (expense) income: Interest and bank charges (1,279 ) (4,013 ) (2,869 ) Other, net 81 — — Total other expense, net (1,198 ) (4,013 ) (2,869 ) Loss before income taxes (39,429 ) (17,287 ) (18,833 ) Income tax expense — — — Net loss $ (39,429 ) $ (17,287 ) $ (18,833 ) |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: February 29, 2020 February 28, 2019 Commissions $ 601 $ 640 Employee compensation 10,060 14,552 Professional fees and accrued settlements 1,703 2,172 Future warranty 3,241 3,090 Refund liability 3,779 4,415 Freight and duty 5,140 2,427 Royalties, advertising and other 9,522 11,833 Total accrued expenses and other current liabilities $ 34,046 $ 39,129 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company has the following financing arrangements: February 29, 2020 February 28, 2019 Domestic credit facility (a) $ — $ — Florida mortgage (b) 7,614 8,112 Euro asset-based lending obligation - VOXX Germany (c) — 5,972 Euro asset-based lending obligation - Magnat (d) 607 727 Schwaiger mortgage (e) — 235 VOXX Germany mortgage (f) — 2,588 Total debt 8,221 17,634 Less: current portion of long-term debt 1,107 10,021 Long-term debt before debt issuance costs 7,114 7,613 Less: debt issuance costs 1,015 1,837 Total long-term debt $ 6,099 $ 5,776 a) Domestic Bank Obligations The Company has a senior secured credit facility ("the Credit Facility") with Wells Fargo Bank, N.A. (“Wells Fargo”) that provides for a revolving credit facility with committed availability of up to $140,000, which may be increased, at the option of the Company, up to a maximum of $175,000, and a term loan in the amount of $15,000. The Credit Facility also includes a $15,000 sublimit for letters of credit and a $15,000 sublimit for swingline loans. The availability under the revolving credit line within the Credit Facility is subject to a borrowing base, which is based on eligible accounts receivable, eligible inventory and certain real estate, subject to reserves as determined by the lender, and is also limited by amounts outstanding under the Florida Mortgage (see Note 7(b)). In conjunction with the sale of Hirschmann on August 31, 2017 (see Note 2), the Company repaid the outstanding balance of the term loan, which is not renewable. As of February 29, 2020, there was no balance outstanding under the revolving credit facility. The remaining availability under the revolving credit line of the Credit Facility was $84,436 as of February 29, 2020. All amounts outstanding under the Credit Facility will mature and become due on April 26, 2021; however, it is subject to acceleration upon the occurrence of an Event of Default (as defined in the Credit Agreement). 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 Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the agreement. Generally, the Company may designate specific borrowings under the Credit Facility as either Base Rate Loans or LIBOR Rate Loans, except that swingline loans may only be designated as Base Rate Loans. Loans under the Credit Facility designated as LIBOR Rate Loans shall bear interest at a rate equal to the then-applicable LIBOR Rate plus a range of 1.75% - 2.25%. Loans under the Credit Facility designated as Base Rate Loans shall bear interest at a rate equal to the applicable margin for Base Rate Loans of 0.75% - 1.25%, as defined in the agreement. As of February 29, 2020, the weighted average interest rate on the Credit Facility was 5.50%. Provided the Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 12.5% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 12.5% for any consecutive 30 day period thereafter), the Credit Facility requires compliance with a financial covenant calculated as of the last day of each month consisting of a Fixed Charge Coverage Ratio. The Credit Facility also contains covenants, subject to defined carveouts, that limit the ability of the loan parties and certain of their subsidiaries which are not loan parties to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) merge, consolidate or dispose of a substantial portion of their business; (iv) transfer or dispose of assets; (v) change their name, organizational identification number, state or province of organization or organizational identity; (vi) make any material change in their nature of business; (vii) prepay or otherwise acquire indebtedness; (viii) cause any change of control; (ix) make any restricted junior payment; (x) change their fiscal year or method of accounting; (xi) make advances, loans or investments; (xii) enter into or permit any transaction with an affiliate of any borrower or any of their subsidiaries; (xiii) use proceeds for certain items; (xiv) issue or sell any of their stock; (xv) consign or sell any of their inventory on certain terms. In addition, if excess availability under the Credit Facility were to fall below certain specified levels, as defined in the agreement, the lenders would have the right to assume dominion and control over the Company's cash. As of February 29, 2020, the Company was not in a Compliance Period. The obligations under the loan documents are secured by a general lien on, and security interest in, substantially all of the assets of the borrowers and certain of the guarantors, including accounts receivable, equipment, real estate, general intangibles and inventory. The Company has guaranteed the obligations of the borrowers under the Credit Facility. On June 11, 2020, the Company amended the Credit Facility. Under the amendment, the committed availability of the revolving credit facility was revised to $127,500 and the maturity date of the facility was extended to April 26, 2022 (see Note 17). The Company has deferred financing costs related to the Credit Facility and a previous amendment and modification of the Credit Facility. These deferred financing costs are included in Long-term debt on the accompanying Consolidated Balance Sheets as a contra-liability balance and are amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income over the five-year term of the Credit Facility. The Company amortized $791 during each of the years ended February 29, 2020, February 28, 2019 and February 28, 2018. Charges incurred on the unused portion of the Credit Facility and its predecessor revolving credit facility during the years ended February 29, 2020, February 28, 2019 and February 28, 2018 totaled $503, $519 and $404, respectively, and are included within Interest and Bank Charges on the Consolidated Statements of Operations and Comprehensive (Loss) Income. b) Florida Mortgage On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida (the “Construction Loan”). Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (3.18% at February 29, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The Company is in compliance with the financial covenants of the Florida Mortgage, which are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year term of the Florida Mortgage. The Company amortized $31 of these costs during each of the years ended February 29, 2020, February 28, 2019, and February 28, 2018. On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (see Note 1(e)). c) Euro Asset-Based Lending Obligation – VOXX Germany Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000, for the Company's subsidiary, VOXX Germany, which expires on July 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 29, 2020). As of February 29, 2020, there is no balance outstanding under this facility, as it was repaid using the proceeds from the sale of the Company’s real property in Pulheim, Germany (see Note 11). d ) Euro Asset-Based Lending Obligation - Magnat Foreign bank obligations also include an ABL credit facility for the Company’s subsidiary Magnat, which expires on December 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.10% (2.10% at February 29, 2020). e ) Schwaiger Mortgage In January 2012, the Company's Schwaiger subsidiary purchased a building, entering into a mortgage note payable. The mortgage note bore interest at 3.75% and was fully paid in December 2019. f ) VOXX Germany Mortgage This balance represented a mortgage on the land and building housing VOXX Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bore interest at 2.85%, payable in twenty-six quarterly installments with a final payment due in September 2019. The note was fully paid on September 30, 2019 in conjunction with the sale of the building (see Note 11). |
Schedule of Maturities of Long-term Debt | The following is a maturity table for debt and bank obligations outstanding at February 29, 2020 for each of the following fiscal years: 2021 $ 1,107 2022 500 2023 500 2024 500 2025 500 Thereafter 5,114 Total $ 8,221 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Provision (Benefit) for Income Taxes | The components of income (loss) before the provision (benefit) for income taxes are as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Domestic Operations $ (47,249 ) $ (49,984 ) $ (27,214 ) Foreign Operations 6,309 (8,979 ) 3,110 $ (40,940 ) $ (58,963 ) $ (24,104 ) |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes is comprised of the following: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Current (benefit) provision Federal $ (26 ) $ (54 ) $ (1,451 ) State 395 (401 ) 150 Foreign 1,824 1,392 1,814 Total current provision $ 2,193 $ 937 $ 513 Deferred (benefit) provision Federal $ (1,850 ) $ (4,772 ) $ (17,198 ) State (564 ) (392 ) (827 ) Foreign 1,103 (1,904 ) 67 Total deferred benefit $ (1,311 ) $ (7,068 ) $ (17,958 ) Total (benefit) provision Federal $ (1,876 ) $ (4,826 ) $ (18,649 ) State (169 ) (793 ) (677 ) Foreign 2,927 (512 ) 1,881 Total provision (benefit) $ 882 $ (6,131 ) $ (17,445 ) |
Schedule of Effective Tax Rate Before Income Taxes | The effective tax rate before income taxes varies from the current statutory U.S. federal income tax rate as follows: Year Ended Year Ended Year Ended February 29, 2020 February 28, 2019 February 28, 2018 Tax benefit at Federal statutory rates $ (8,598 ) 21.0 % $ (12,383 ) 21.0 % $ (7,891 ) 32.7 % State income taxes, net of Federal benefit (611 ) 1.5 (809 ) 1.4 (249 ) 1.0 Change in valuation allowance 4,218 (10.3 ) 6,164 (10.5 ) (2,546 ) 10.6 Change in tax reserves (52 ) - (697 ) 1.2 (2,443 ) 10.1 Non-controlling interest 3,229 (7.9 ) 1,416 (2.4 ) 2,404 (10.0 ) US effects of foreign operations 1,403 (3.4 ) 53 (0.1 ) 614 (2.5 ) Permanent differences and other 1,170 (2.9 ) 636 (1.1 ) 1,190 (4.9 ) U.S. GILTI inclusion 710 (1.7 ) - — — — Foreign exchange loss — — — — (3,376 ) 14.0 Change in tax rate (151 ) 0.4 55 (0.1 ) (2,462 ) 10.2 Research & development credits (436 ) 1.1 (566 ) 1.0 (524 ) 2.2 Tax credits — — — — (2,162 ) 9.0 Effective tax rate $ 882 (2.2 )% $ (6,131 ) 10.4 % $ (17,445 ) 72.4 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying values of assets and liabilities for financial reporting and tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: February 29, 2020 February 28, 2019 Deferred tax assets: Accounts receivable $ 266 $ 357 Inventory 1,764 2,374 Property, plant and equipment 1,554 1,900 Operating lease 773 - Accruals and reserves 2,641 4,008 Deferred compensation 556 632 Warranty reserves 698 699 Unrealized gains and losses 4,103 4,179 Partnership investments 5,142 496 Net operating losses 15,011 12,267 Foreign tax credits 3,805 3,805 Other tax credits 5,098 4,752 Deferred tax assets before valuation allowance 41,411 35,469 Less: valuation allowance (26,210 ) (22,026 ) Total deferred tax assets 15,201 13,443 Deferred tax liabilities: Intangible assets (16,795 ) (17,145 ) Prepaid expenses (1,304 ) (1,286 ) Operating lease (765 ) — Deferred financing fees (113 ) (217 ) Total deferred tax liabilities (18,977 ) (18,648 ) Net deferred tax liability $ (3,776 ) $ (5,205 ) |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Balance at February 28, 2017 $ 10,844 Additions based on tax positions taken in the current and prior years 630 Settlements — Decreases based on tax positions taken in the prior years (2,945 ) Other 578 Balance at February 28, 2018 $ 9,107 Additions based on tax positions taken in the current and prior years 2,125 Settlements — Decreases based on tax positions taken in the prior years (1,923 ) Other (227 ) Balance at February 28, 2019 $ 9,082 Additions based on tax positions taken in the current and prior years 399 Settlements — Decreases based on tax positions taken in prior years (2,107 ) Other (139 ) Balance at February 29, 2020 $ 7,235 |
Schedule of Tax Returns Subject to Examination by Tax Authorities in Major Jurisdictions | The Company, or one of its subsidiaries, files its tax returns in the U.S. and certain state and foreign income tax jurisdictions with varying statutes of limitations. The earliest years' tax returns filed by the Company that are still subject to examination by the tax authorities in the major jurisdictions are as follows: Jurisdiction Tax Year U.S. 2016 Netherlands 2015 Germany 2014 |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Schedule of Capital Units | The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Voting Rights per Share Liquidation Rights Preferred Stock $ 50.00 50,000 50,000 — — — $50 per share Series Preferred Stock $ 0.01 1,500,000 1,500,000 — — — Class A Common Stock $ 0.01 60,000,000 60,000,000 21,556,976 21,938,100 one Ratably with Class B Class B Common Stock $ 0.01 10,000,000 10,000,000 2,260,954 2,260,954 ten Ratably with Class A |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost for the year ended February 29, 2020 were as follows: Year Ended February 29, 2020 Operating lease cost (a) (c) $ 880 Finance lease cost: Amortization of right of use assets (a) 684 Interest on lease liabilities (b) 47 Total finance lease cost $ 731 (a) Recorded within Selling, general and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statements of Operations and Comprehensive (Loss) Income. (b) Recorded within Interest and bank charges on the Consolidated Statements of Operations and Comprehensive (Loss) Income. (c) Includes immaterial amounts related to variable rent expense. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Year Ended February 29, 2020 Non-cash investing and financing activities: Right of use assets obtained in exchange for operating lease obligations $ 1,312 Property, plant, and equipment obtained in exchange for finance lease obligations 1,024 Upon the adoption of ASC 842: Right of use assets recorded in exchange for operating lease obligations $ 2,227 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 841 Operating cash flows from finance leases 47 Finance cash flows from finance leases 646 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: February 29, 2020 Operating Leases Operating lease, right of use assets $ 3,143 Total operating lease right of use assets $ 3,143 Accrued expenses and other current liabilities $ 784 Operating lease liabilities, less current portion 2,391 Total operating lease liabilities $ 3,175 Finance Leases Property, plant and equipment, gross $ 2,503 Accumulated depreciation (1,209 ) Total finance lease right of use assets $ 1,294 Accrued expenses and other current liabilities $ 613 Finance lease liabilities, less current portion 720 Total finance lease liabilities $ 1,333 Weighted Average Remaining Lease Term Operating leases 4.4 years Finance leases 3.9 years Weighted Average Discount Rate Operating leases 5.98 % Finance leases 3.87 % |
Schedule of Maturities of Leases Liabilities | At February 29, 2020, maturities of lease liabilities for each of the succeeding years were as follows: Operating Leases Finance Leases 2021 $ 948 $ 640 2022 907 428 2023 641 228 2024 480 80 2025 359 — Thereafter 268 — Total lease payments 3,603 1,376 Less imputed interest 428 43 Total $ 3,175 $ 1,333 |
Schedule of Minimum Future Payment of Capital and Operating Lease | At February 28, 2019, the Company was obligated under non-cancellable operating leases for equipment and warehouse facilities related to continuing operations for minimum annual rental payments for each of the succeeding fiscal years: Operating Leases 2020 $ 946 2021 604 2022 391 2023 154 2024 10 Thereafter — Total minimum lease payments $ 2,105 |
Financial and Product Informa_2
Financial and Product Information About Foreign and Domestic Operations (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data from Continuing Operations | Segment data from continuing operations for each of the Company's segments are presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Fiscal Year Ended February 29, 2020 Net sales $ 114,154 $ 279,675 $ 461 $ 599 $ 394,889 Equity in income of equity investees 5,174 — — — 5,174 Interest expense and bank charges 436 10,076 1,279 (8,222 ) 3,569 Depreciation and amortization expense 878 4,390 3,136 4,874 13,278 (Loss) income before income taxes (a) (724 ) 9,385 (39,241 ) (10,360 ) (40,940 ) Fiscal Year Ended February 28, 2019 Net sales $ 161,647 $ 283,144 $ 1,098 $ 927 $ 446,816 Equity in income of equity investees 6,618 — — — 6,618 Interest expense and bank charges 868 10,852 4,013 (11,284 ) 4,449 Depreciation and amortization expense 1,002 4,419 3,158 3,765 12,344 Income (loss) before income taxes (b) 13,842 (29,348 ) (18,928 ) (24,529 ) (58,963 ) Fiscal Year Ended February 28, 2018 Net sales $ 155,480 $ 350,526 $ 636 $ 450 $ 507,092 Equity in income of equity investees 7,178 — — — 7,178 Interest expense and bank charges 967 12,223 2,869 (10,050 ) 6,009 Depreciation and amortization expense 1,027 4,989 3,166 2,992 12,174 Income (loss) before income taxes 13,922 (3,872 ) (18,832 ) (15,322 ) (24,104 ) (a) Included within Income (loss) before taxes for the year ended February 29, 2020 are intangible asset impairment charges totaling $30,230 ($2,828 within the Consumer Electronics segment and $27,402 within the Biometrics segment) (see Note 1(k)). Also included within Income (loss) before taxes for the year ended February 29, 2020 is the gain on the sale of real property in Pulheim, Germany of $4,057 within the Consumer Electronics segment (see Note 11). (b) Included in income (loss) before income taxes for the year ended February 28, 2019 are intangible asset impairment charges totaling $25,789 ($25,629 within the Consumer Electronics segment and $160 within the Automotive Electronics segment) (see Note 1(k)), an impairment charge of $3,473 related to investment properties in Venezuela within the Automotive Electronics segment (see Note 1(p)), as well as charges of $16,509 within Corporate related to the write-off of uncollectible notes receivable (see Note 1(f)). |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Geographic net sales information from continuing operations in the table below is based on the location of the selling entity. Long-lived assets, consisting of fixed assets, are reported below based on the location of the asset. United States Europe Other Total Fiscal Year Ended February 29, 2020 Net sales $ 322,612 $ 69,755 $ 2,522 $ 394,889 Long-lived assets 48,111 3,099 214 51,424 Fiscal Year Ended February 28, 2019 Net sales $ 393,834 $ 49,970 $ 3,012 $ 446,816 Long-lived assets 48,870 11,553 70 60,493 Fiscal Year Ended February 28, 2018 Net sales $ 446,262 $ 57,447 $ 3,383 $ 507,092 Long-lived assets 48,571 12,979 3,709 65,259 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | In the following table, the Company's net sales are disaggregated by segments and product type for the years ended February 29, 2020, February 28, 2019 and February 28, 2018. On March 1, 2019, the Company revised its reportable segments to better reflect the way the Company now manages its business (see Note 13). Prior year segment amounts have been reclassified to conform to the current presentation. Year ended February 29, 2020 Year ended February 28, 2019 Year ended February 28, 2018 Automotive Electronics Segment OEM Products $ 49,673 $ 90,844 $ 77,902 Aftermarket Products 64,481 70,803 77,578 Total Automotive Electronics Segment 114,154 161,647 155,480 Consumer Electronics Segment Premium Audio Products 170,762 158,436 172,406 Other Consumer Electronic Products 108,913 124,708 178,120 Total Consumer Electronics Segment 279,675 283,144 350,526 Biometrics Segment Biometric Products 461 1,098 636 Total Biometrics Segment 461 1,098 636 Corporate/Eliminations 599 927 450 Total Net Sales $ 394,889 $ 446,816 $ 507,092 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Selected unaudited, quarterly financial data of the Company for the years ended February 29, 2020 and February 28, 2019 appear below: Quarters Ended February 29, 2020 November 30, 2019 August 31, 2019 May 31, 2019 2020 (a) (b) (c) Net sales $ 101,077 $ 110,112 $ 90,246 $ 93,454 Gross profit 28,534 31,464 23,769 26,009 Net (loss) income attributable to Voxx International Corporation $ (21,795 ) $ 2,464 $ (5,964 ) $ (1,148 ) (Loss) income per share - basic: Attributable to VOXX International Corporation $ (0.90 ) $ 0.10 $ (0.24 ) $ (0.05 ) (Loss) income per share - diluted: Attributable to VOXX International Corporation $ (0.90 ) $ 0.10 $ (0.24 ) $ (0.05 ) Quarters Ended February 28, 2019 November 30, 2018 August 31, 2018 May 31, 2018 2019 (d) (e) Net sales $ 107,457 $ 129,637 $ 108,867 $ 100,855 Gross profit 23,754 38,923 31,063 27,677 Net (loss) income attributable to Voxx International Corporation $ (36,560 ) $ 12,211 $ (20,803 ) $ (939 ) (Loss) income per share - basic: Attributable to VOXX International Corporation $ (1.50 ) $ 0.50 $ (0.85 ) $ (0.04 ) (Loss) income per share - diluted: Attributable to VOXX International Corporation $ (1.50 ) $ 0.50 $ (0.85 ) $ (0.04 ) Net income per common share is computed separately for each quarter. Therefore, the sum of such quarterly per share amounts may differ from the total for the years. (a) Included in the Net loss attributable to VOXX International Corporation for the quarter ended February 29, 2020 are impairment charges of $30,230 related to definite and indefinite lived intangible assets. (b) Included in Net income attributable to VOXX International Corporation for the quarter ended November 30, 2019 is the gain of $4,057 resulting from the sale of real property in Pulheim, Germany. (c) Included in the Net loss attributable to VOXX International Corporation for the quarter ended August 31, 2019 is the gain of $775 due to the hold-back release related to the Company’s investment in RxNetworks (see Note 1(f)). (d) Included in the Net loss attributable to VOXX International Corporation for the quarter ended February 28, 2019 are impairment charges totaling $15,975 related to indefinite lived intangible assets (see Note 1(k)) and an impairment charge of $16,509 related to uncollectible notes receivable (see Note 1(f)). (e) Included in the Net loss attributable to VOXX International Corporation for the quarter ended August 31, 2018 are impairment charges totaling $9,814 related to indefinite lived intangible assets (see Note 1(k)) and an impairment charge of $3,473 related to investment properties in Venezuela (see Note 1(p)). |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Feb. 29, 2020 | Feb. 28, 2019 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 37,425 | $ 58,236 | |
Percentage of participation exemption on dividends received from foreign corporation | 100.00% | ||
Domestic Tax Authority [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Non-US [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 3,396 | $ 325 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Fair Value Measurements and Derivatives - Additional Information (Details) | 12 Months Ended | |||
Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Jul. 20, 2015 | Jul. 20, 2015Rate | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Open forward foreign currency contracts | $ 0 | |||
Derivative, Fixed Interest Rate | 3.48% | 3.48% | ||
Maximum length of time - recognition of settled forward contracts into earnings | 3 months | |||
Amount excluded from assessment of hedge effectiveness | $ 0 | |||
Foreign currency contracts terminated | 0 | |||
Foreign currency contracts de-designated | 0 | |||
Interest Rate Swap [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Current outstanding notional value | $ 7,614,000 | |||
Level 3 [Member] | Fair Value Measurements Recurring [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Asset measured at fair value | 0 | $ 0 | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 37,425 | $ 58,236 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (476) | 88 |
Investments, Fair Value Disclosure | 2,282 | 2,858 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 37,425 | 58,236 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | 2,282 | 2,858 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | (476) | 88 |
Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2,282 | 2,858 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2,282 | 2,858 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Fair Value for Derivative Instruments (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | $ 10,885 | $ 10,449 |
Derivative Assets and Liabilities | (476) | 88 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | 0 | 172 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other long-term liabilities | $ (476) | $ (84) |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Activity Related to Cash Flow Hedges from Continuing Operations (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Foreign Exchange Forward [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 331 | $ 708 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 428 | (13) |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 0 | 46 |
Interest Rate Swap [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (392) | (49) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 0 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Summary of Investment Securities (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 2,282 | $ 2,858 |
Investments, Fair Value Disclosure | 2,282 | 2,858 |
Mutual Funds [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 2,282 | $ 2,858 |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies - Investment Securities - Additional Information (Details) - USD ($) | Mar. 05, 2019 | Jan. 19, 2019 | Feb. 28, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 27, 2019 |
Gain (Loss) on Securities [Line Items] | |||||||
Other than temporary losses incurred | $ 0 | ||||||
Cost-method investments, realized gain (loss) | $ 530,000 | ||||||
Note receivable interest, due date | Jan. 19, 2019 | ||||||
Recorded an impairment charge | $ (16,509,000) | $ 0 | 16,509,000 | 0 | |||
360 Fly Inc [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Amount of notes receivable | $ 17,242,000 | ||||||
Notes receivable, interest rate | 8.00% | ||||||
Recorded an impairment charge | 16,509,000 | ||||||
Fair value of collateral less cost to sell | 0 | 0 | |||||
Payments to acquire investments | $ 1,000,000 | ||||||
Notes Receivable [Member] | 360 Fly Inc [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Amount of notes receivable | $ 14,107,000 | $ 14,107,000 | |||||
RxNetworks [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Cost-method investments, realized gain (loss) | 775,000 | $ 1,416,000 | |||||
Fathom [Member] | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Remaining investment or ownership | $ 0 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies - Revenue Recognition - Additional Information (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Minimum [Member] | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Warrant period | 30 days |
Maximum [Member] | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Warrant period | 3 years |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020USD ($)CustomerRate | Feb. 28, 2019USD ($)Rate | Feb. 28, 2018USD ($) | |
Proceeds from sale of continuing operations | $ 79,000 | $ 105,000 | $ 142,000 |
Interest and Bank Charges [Member] | |||
Fees incurred in connection with the agreements | $ 400 | $ 900 | $ 1,000 |
Accounts Receivable [Member] | |||
Concentration risk, percentage | Rate | 24.00% | 24.00% | |
Customer [Member] | Accounts Receivable [Member] | |||
Number of largest customer | Customer | 5 | ||
Concentration risk, percentage | 24.00% | ||
Minimum [Member] | |||
Due date of AR, number of days | 30 days | ||
Maximum [Member] | |||
Due date of AR, number of days | 60 days |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Accounting Policies [Abstract] | ||||
Trade accounts receivable | $ 72,419 | $ 77,064 | ||
Allowance for doubtful accounts | 1,954 | 2,548 | ||
Allowance for cash discounts | 751 | 1,125 | $ 1,205 | $ 1,233 |
Accounts receivable | $ 69,714 | $ 73,391 |
Description of Business and _14
Description of Business and Summary of Significant Accounting Policies - Inventory - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Inventory Write-down | $ 3,050 | $ 4,580 | $ 2,733 |
Description of Business and _15
Description of Business and Summary of Significant Accounting Policies - Inventories by Major Category (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Accounting Policies [Abstract] | ||
Raw materials | $ 29,115 | $ 27,518 |
Work in process | 2,366 | 2,622 |
Finished goods | 67,629 | 72,239 |
Inventory, net | $ 99,110 | $ 102,379 |
Description of Business and _16
Description of Business and Summary of Significant Accounting Policies - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Accounting Policies [Abstract] | ||
Land | $ 6,978 | $ 10,110 |
Buildings | 43,801 | 49,301 |
Property under finance lease | 2,503 | 1,907 |
Furniture and fixtures | 4,152 | 3,878 |
Machinery and equipment | 8,245 | 8,618 |
Construction-in-progress | 483 | 155 |
Computer hardware and software | 38,808 | 37,591 |
Automobiles | 735 | 808 |
Leasehold improvements | 1,858 | 2,682 |
Property, Plant and Equipment, Gross | 107,563 | 115,050 |
Less accumulated depreciation and amortization | 56,139 | 54,557 |
Property, Plant and Equipment, Net | $ 51,424 | $ 60,493 |
Description of Business and _17
Description of Business and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Computer Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Description of Business and _18
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Property Plant And Equipment [Line Items] | ||||
Finance Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 1,209 | $ 979 | ||
Depreciation | 5,343 | 5,360 | $ 5,658 | |
Capitalized Computer Software, Amortization | 1,474 | 1,537 | 1,611 | |
Finance Leases, Income Statement, Amortization Expense | 684 | $ 491 | $ 372 | |
Gain related to execution of sale transaction | 4,057 | |||
Selling Real Property in Pulheim, Germany to CLM S.A. RL [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Gain related to execution of sale transaction | $ 4,057 | $ 4,057 |
Description of Business and _19
Description of Business and Summary of Significant Accounting Policies - Goodwill and Intangible Assets - Additional Information (Details) | Mar. 01, 2019Segment | Feb. 29, 2020USD ($)Rate | Feb. 28, 2019USD ($) | Aug. 31, 2018USD ($) | Feb. 29, 2020USD ($)SegmentRate | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Jan. 31, 2020USD ($) | Apr. 18, 2017USD ($) | Feb. 28, 2017USD ($) |
Goodwill and Intangible Assets [Line Items] | ||||||||||
Number of operating segments | Segment | 3 | 3 | ||||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |||||||
Goodwill | $ 55,000,000 | $ 54,785,000 | 55,000,000 | 54,785,000 | 54,785,000 | $ 215,000 | $ 880,000 | $ 53,905,000 | ||
Intangible asset impairment charges | 15,975,000 | $ 9,814,000 | 30,230,000 | 25,789,000 | 0 | |||||
Indefinite-lived and definite-lived intangible asset impairment charges | $ 30,230,000 | $ 30,230,000 | ||||||||
Impairment of definite-lived intangible assets | 0 | |||||||||
Indefinite lived trademarks, percentage of total | Rate | 39.00% | 39.00% | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 25,279,000 | $ 25,279,000 | ||||||||
Finite-lived intangible assets, remaining amortization period | 10 years | |||||||||
Finite-lived intangible asset, weighted average period before next renewal or extension | 2 years | |||||||||
Amortization of intangible assets | $ 7,010,000 | 6,984,000 | 6,516,000 | |||||||
Consumer Electronics [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||||||
Goodwill | 46,533,000 | $ 46,533,000 | 46,533,000 | 46,533,000 | $ 46,533,000 | $ 46,533,000 | ||||
Intangible asset impairment charges | 2,828,000 | 25,629,000 | ||||||||
Biometrics [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Indefinite-lived and definite-lived intangible asset impairment charges | 27,402,000 | |||||||||
Impairment of definite-lived intangible assets | 19,667,000 | |||||||||
Consumer Accessories [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Intangible asset impairment charges | 25,629,000 | |||||||||
Automotive [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Intangible asset impairment charges | $ 160,000 | |||||||||
Klipsch [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Goodwill | 46,533,000 | 46,533,000 | ||||||||
Invision [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Goodwill | 7,372,000 | 7,372,000 | ||||||||
Rosen [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Goodwill | 880,000 | 880,000 | ||||||||
VSHC [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 215,000 | $ 215,000 | ||||||||
Minimum [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 1.00% | 1.00% | ||||||||
Minimum [Member] | Measurement Input, Cap Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 13.20% | 13.20% | ||||||||
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 13.20% | 13.20% | ||||||||
Minimum [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 0.00% | 0.00% | ||||||||
Maximum [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 7.00% | 7.00% | ||||||||
Maximum [Member] | Measurement Input, Cap Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 13.30% | 13.30% | ||||||||
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 25.00% | 25.00% | ||||||||
Maximum [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | ||||||||||
Goodwill and Intangible Assets [Line Items] | ||||||||||
Impaired long-lived assets held and used, method for determining fair value | 3.00% | 3.00% |
Description of Business and _20
Description of Business and Summary of Significant Accounting Policies - Change in Carrying Value of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 54,785,000 | $ 54,785,000 | $ 53,905,000 |
Goodwill, Acquired During Period | 215,000 | 0 | 880,000 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Goodwill | 55,000,000 | 54,785,000 | 54,785,000 |
Goodwill, Gross | 87,163,000 | 86,948,000 | 86,948,000 |
Goodwill, Impaired, Accumulated Impairment Loss | (32,163,000) | (32,163,000) | (32,163,000) |
Automotive Electronics [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 8,252,000 | 8,252,000 | 7,372,000 |
Goodwill, Acquired During Period | 215,000 | 0 | 880,000 |
Goodwill | 8,467,000 | 8,252,000 | 8,252,000 |
Goodwill, Gross | 8,467,000 | 8,252,000 | 8,252,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | 0 |
Consumer Electronics [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 46,533,000 | 46,533,000 | 46,533,000 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Goodwill | 46,533,000 | 46,533,000 | 46,533,000 |
Goodwill, Gross | 78,696,000 | 78,696,000 | 78,696,000 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (32,163,000) | $ (32,163,000) | $ (32,163,000) |
Description of Business and _21
Description of Business and Summary of Significant Accounting Policies - Schedule of Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 75,287 | $ 90,449 |
Finite-Lived Intangible Assets, Accumulated Amortization | 51,208 | 45,955 |
Finite-Lived Intangible Assets, Net | 24,079 | 44,494 |
Intangible assets, net | 88,288 | 119,449 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 25,279 | |
Trademarks [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 64,209 | 74,955 |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 51,491 | 49,743 |
Finite-Lived Intangible Assets, Accumulated Amortization | 31,880 | 29,746 |
Finite-Lived Intangible Assets, Net | 19,611 | 19,997 |
Trademarks and Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,045 | 485 |
Finite-Lived Intangible Assets, Accumulated Amortization | 437 | 413 |
Finite-Lived Intangible Assets, Net | 608 | 72 |
Patented Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 14,144 | 31,290 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,244 | 9,523 |
Finite-Lived Intangible Assets, Net | 1,900 | 21,767 |
Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5,651 | 5,390 |
Finite-Lived Intangible Assets, Accumulated Amortization | 3,691 | 2,907 |
Finite-Lived Intangible Assets, Net | 1,960 | 2,483 |
Licensing Agreements [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,400 | 1,400 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,400 | 1,400 |
Contractual Rights [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,556 | 2,141 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 1,556 | 1,966 |
Finite-Lived Intangible Assets, Net | $ 175 |
Description of Business and _22
Description of Business and Summary of Significant Accounting Policies - Schedule of Intangible Assets, Excluding Goodwill (Parenthetical) (Details) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Patented Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 11 years 6 months | 11 years 6 months |
Contractual Rights [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | 5 years |
Minimum [Member] | Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | 4 years |
Minimum [Member] | Trademarks and Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | 3 years |
Minimum [Member] | Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | 4 years |
Maximum [Member] | Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years 6 months | 15 years 6 months |
Maximum [Member] | Trademarks and Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | 10 years |
Maximum [Member] | Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 13 years | 13 years |
Description of Business and _23
Description of Business and Summary of Significant Accounting Policies - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Accounting Policies [Abstract] | |
2021 | $ 4,884 |
2022 | 4,685 |
2023 | 3,684 |
2024 | 3,381 |
2025 | $ 3,197 |
Description of Business and _24
Description of Business and Summary of Significant Accounting Policies - Sales Incentives - Additional Information (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Accounting Policies [Abstract] | ||||
Accrued Marketing Costs, Current | $ 12,250 | $ 13,574 | $ 14,020 | $ 13,154 |
Description of Business and _25
Description of Business and Summary of Significant Accounting Policies - Summary of Activity with Respect to Accrued Sales Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Opening balance | $ 13,574 | $ 14,020 | $ 13,154 |
Liabilities acquired during acquisition | 28 | ||
Accruals | 35,345 | 37,272 | 42,722 |
Payments and credits | (36,583) | (37,516) | (41,811) |
Reversals for unearned sales incentives | (114) | (202) | (45) |
Ending balance | $ 12,250 | $ 13,574 | $ 14,020 |
Description of Business and _26
Description of Business and Summary of Significant Accounting Policies - Advertising - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 4,905 | $ 5,417 | $ 11,753 |
Description of Business and _27
Description of Business and Summary of Significant Accounting Policies - Research and Development - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Research and Development [Abstract] | |||
Research and development expense | $ 7,748 | $ 9,169 | $ 10,954 |
Engineering and Technical Support [Member] | |||
Research and Development [Abstract] | |||
Customer reimbursement expenses | $ 266 | $ 375 | $ 106 |
Description of Business and _28
Description of Business and Summary of Significant Accounting Policies - Product Warranties and Product Repair Costs - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Standard product warranty accrual | $ 3,241 | $ 3,090 | |
Inventory valuation reserves | 1,507 | 1,379 | |
Product warranty expense | $ 4,935 | $ 6,091 | $ 7,428 |
Description of Business and _29
Description of Business and Summary of Significant Accounting Policies - Changes in Accrued Product Warranties and Product Repair Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 4,469 | $ 6,233 | $ 5,608 |
Liabilities acquired during acquisitions | 188 | 500 | |
Accrual for warranties issued during the year and repair cost | 4,935 | 6,091 | 7,428 |
Balances transferred | (832) | ||
Warranty claims settled during the year | (4,844) | (7,023) | (7,303) |
Ending balance | $ 4,748 | $ 4,469 | $ 6,233 |
Description of Business and _30
Description of Business and Summary of Significant Accounting Policies - Foreign Currency - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction gain (loss), before tax | $ 405 | $ 220 | $ (8,769) | |
Loss on forward contracts incurred in conjunction with sale of Hirschmann | (6,618) | |||
Cumulative inflation period | 3 years | |||
Impairment of long-lived assets held-for-use | $ 3,473 | $ 0 | 3,473 | 0 |
VENEZUELA | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Foreign currency transaction gain (loss), before tax | 2 | $ 6 | 148 | |
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | ||
Venezuelan Bolívar Fuerte | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Foreign currency exchange rate, translation | 73,470 | 3,290 | ||
Minimum [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative inflation rate | 100.00% |
Description of Business and _31
Description of Business and Summary of Significant Accounting Policies - Net Income Per Share - Additional Information (Details) | 12 Months Ended | ||
Feb. 29, 2020shares | Feb. 28, 2019shares | Feb. 28, 2018shares | |
Accounting Policies [Abstract] | |||
Reconciling items to basic and diluted EPS | 0 | ||
Antidilutive securities excluded from computation of earnings per share, amount | 701,024 | 618,155 | 534,327 |
Description of Business and _32
Description of Business and Summary of Significant Accounting Policies - Reconciliation Between Denominator of Basic and Diluted Net (Loss) Income Per Common Share (Details) - shares | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Weighted-average common shares outstanding (basic) | 24,394,663 | 24,355,791 | 24,290,563 |
Stock options, warrants and restricted stock | 0 | 0 | 256,683 |
Weighted-average common and potential common shares outstanding (diluted) | 24,394,663 | 24,355,791 | 24,547,246 |
Description of Business and _33
Description of Business and Summary of Significant Accounting Policies - Schedule of Other (Expense) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Accounting Policies [Abstract] | |||
Foreign currency gain (loss) | $ 405 | $ 220 | $ (8,769) |
Interest income | 918 | 994 | 210 |
Rental income | 692 | 517 | 553 |
Miscellaneous | 63 | (1,154) | 416 |
Total other, net | $ 2,078 | $ 577 | $ (7,590) |
Description of Business and _34
Description of Business and Summary of Significant Accounting Policies - Other Income (Expense) - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2018 | |
Payment in settlement of final working capital calculation | $ 804 | |
Derivative instruments not designated as hedging instruments, loss | $ 6,618 | |
Klipsch Group Inc [Member] | ||
Proceeds from key man life insurance policy | $ 1,000 |
Description of Business and _35
Description of Business and Summary of Significant Accounting Policies - Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of long-lived assets held-for-use | $ 3,473 | $ 0 | $ 3,473 | $ 0 |
Venezuela [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 |
Description of Business and _36
Description of Business and Summary of Significant Accounting Policies - Accounting for Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 08, 2019 | Aug. 31, 2017 | Nov. 30, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2015 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 542,000 | |||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 0 | |||||||
Stock based compensation expense | $ 2,282 | $ 551 | $ 552 | |||||
2012 Equity Incentive Plan [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based Compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 4.21 | $ 5.50 | $ 6.52 | |||||
Vested and unissued shares | 127,007 | 39,688 | 60,868 | |||||
Weighted Average Grant Date Fair Value, Vested | $ 4.18 | $ 8.13 | $ 7.77 | |||||
Supplemental Executive Retirement Plan [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Vested and unissued shares | 283,744 | |||||||
Weighted Average Grant Date Fair Value, Vested | $ 7.37 | |||||||
Patrick M. Lavelle [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Annual salary and cash bonus | $ 1,000 | |||||||
Stock based compensation expense | $ 157 | |||||||
Grant of market stock units maximum amount | $ 5,000 | |||||||
Maximum average stock price of grant market stock units | $ 5.49 | |||||||
Maximum increase amount of market stock units award | $ 5,000 | |||||||
Maximum threshold share price increases in value of award | $ 15 | |||||||
Maximum threshold share price half of the award can be granted | $ 13 | |||||||
Estimated Maximum threshold share increases in value of award | 333,333 | |||||||
Common Class A [Member] | Patrick M. Lavelle [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based Compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 4.15 | |||||||
Award vesting period | 5 years | |||||||
Stock based compensation expense | $ 679 | |||||||
Common Class A [Member] | Patrick M. Lavelle [Member] | March 1, 2021 [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Additional grant of shares under employment agreement | 100,000 | |||||||
Common Class A [Member] | Patrick M. Lavelle [Member] | March 1, 2020 [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Additional grant of shares under employment agreement | 100,000 | |||||||
Common Class A [Member] | Patrick M. Lavelle [Member] | March 1, 2022 [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Additional grant of shares under employment agreement | 100,000 | |||||||
Common Class A [Member] | Patrick M. Lavelle [Member] | 2012 Equity Incentive Plan [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based Compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 4.15 | |||||||
Grant of initial shares under employment agreement | 200,000 | |||||||
Stock based compensation expense | $ 830 | |||||||
Incentive Stock Options [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of stockholders granted exercise price | 10.00% | |||||||
Incentive Stock Options [Member] | Common Class A [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of fair market value of stock allowed for exercise price of options to be granted | 110.00% | |||||||
Employee Stock Option [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 0 | 0 | 0 | |||||
Allocated share-based compensation expense | $ 0 | $ 0 | $ 0 | |||||
Restricted Stock [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 3 years | |||||||
Allocated share-based compensation expense | $ 373 | 2,282 | $ 551 | $ 502 | ||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 2,471 | |||||||
Stock issued during period, shares, restricted stock award, gross | 71,352 | 188,245 | 74,156 | |||||
Share-based Compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 4.65 | $ 5.50 | $ 6.52 | |||||
Share-based payment award vesting age of employee | 65 years | |||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, other | 72,300 | |||||||
Share-based payment arrangement, cash used to settle award | $ 582 | |||||||
Minimum [Member] | All Other Options and Stock Appreciation Rights [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of fair market value of stock allowed for exercise price of options to be granted | 100.00% | |||||||
Minimum [Member] | All Other Options and Stock Appreciation Rights [Member] | Common Class A [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Percentage of fair market value of stock allowed for exercise price of options to be granted | 100.00% | |||||||
Maximum [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||||
Maximum [Member] | Restricted Stock [Member] | ||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based payment award vesting required service period | 10 years |
Description of Business and _37
Description of Business and Summary of Significant Accounting Policies - Summary of Activity Related to SERP and Initial Stock Grant and Additional Stock Grants under Employment Agreement (Details) - $ / shares | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Vested and settled | (38,750) | ||
2012 Equity Incentive Plan [Member] | |||
Unvested Number of share, Beginning balance | 470,807 | 322,250 | 381,262 |
Granted | 571,352 | 188,245 | 74,156 |
Vested | (127,007) | (39,688) | (60,868) |
Vested and settled | (200,000) | (72,300) | |
Forfeited | 0 | 0 | 0 |
Unvested Number of share, Ending balance | 715,152 | 470,807 | 322,250 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 5.49 | $ 5.80 | $ 6.01 |
Weighted Average Grant Date Fair Value, Granted | 4.21 | 5.50 | 6.52 |
Weighted Average Grant Date Fair Value, Vested | 4.18 | 8.13 | 7.77 |
Weighted Average Grant Date Fair Value, Vested and settled | 4.15 | 5.98 | |
Weighted Average Grant Date Fair Value, Forfeited | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value, Ending balance | $ 5.07 | $ 5.49 | $ 5.80 |
Description of Business and _38
Description of Business and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Stockholders equity, beginning of period | $ 395,101 | $ 450,118 | $ 391,315 |
Other comprehensive income (loss) before reclassifications | (1,763) | (2,755) | 16,233 |
Reclassified from accumulated other comprehensive income (loss) | (348) | 33 | 13,443 |
Other comprehensive (loss) income, net of tax | (2,111) | (2,722) | 29,676 |
Stockholders equity, end of period | 348,229 | 395,101 | 450,118 |
Foreign Currency Translation Losses [Member] | |||
Stockholders equity, beginning of period | (16,222) | (13,027) | (41,831) |
Other comprehensive income (loss) before reclassifications | (1,517) | (3,195) | 18,065 |
Reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 10,739 |
Other comprehensive (loss) income, net of tax | (1,517) | (3,195) | 28,804 |
Stockholders equity, end of period | (17,739) | (16,222) | (13,027) |
Unrealized Losses on Investments, Net of Tax [Member] | |||
Stockholders equity, beginning of period | 0 | (24) | (98) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (15) |
Reclassified from accumulated other comprehensive income (loss) | 0 | 24 | 89 |
Other comprehensive (loss) income, net of tax | 0 | 24 | 74 |
Stockholders equity, end of period | 0 | 0 | (24) |
Pension Plan Adjustments, Net of Tax [Member] | |||
Stockholders equity, beginning of period | (798) | (786) | (2,282) |
Other comprehensive income (loss) before reclassifications | (89) | (12) | (459) |
Reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 1,955 |
Other comprehensive (loss) income, net of tax | (89) | (12) | 1,496 |
Stockholders equity, end of period | (887) | (798) | (786) |
Derivatives Designated in a Hedging Relationship, Net of Tax [Member] | |||
Stockholders equity, beginning of period | 76 | (385) | 313 |
Other comprehensive income (loss) before reclassifications | (157) | 452 | (1,358) |
Reclassified from accumulated other comprehensive income (loss) | (348) | 9 | 660 |
Other comprehensive (loss) income, net of tax | (505) | 461 | (698) |
Stockholders equity, end of period | (429) | 76 | (385) |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Stockholders equity, beginning of period | (16,944) | (14,222) | (43,898) |
Other comprehensive (loss) income, net of tax | (2,111) | (2,722) | 29,676 |
Stockholders equity, end of period | $ (19,055) | $ (16,944) | $ (14,222) |
Description of Business and _39
Description of Business and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax | $ 38 | $ 21 | $ 0 |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | 35 | (152) | (645) |
Other comprehensive (loss) income before reclassifications | $ (1,763) | $ (2,755) | 16,233 |
Other comprehensive income (loss), foreign currency transaction and translation reclassification adjustment from AOCI, realized upon sale or liquidation, net of tax | $ 10,739 | ||
Minimum [Member] | |||
Foreign currency variance | 2.00% | 2.00% | (13.00%) |
Maximum [Member] | |||
Foreign currency variance | 4.00% | 7.00% | (3.00%) |
Euro Member Countries, Euro | |||
Other comprehensive (loss) income before reclassifications | $ (1,435) | $ (2,876) | $ 17,559 |
Canada, Dollars | |||
Other comprehensive (loss) income before reclassifications | (22) | (240) | 250 |
Mexico, Pesos | |||
Other comprehensive (loss) income before reclassifications | (17) | (18) | 71 |
Other Currency [Member] | |||
Other comprehensive (loss) income before reclassifications | (24) | (61) | 185 |
Hirschmann [Member] | |||
Other comprehensive income (loss), foreign currency transaction and translation reclassification adjustment from AOCI, realized upon sale or liquidation, net of tax | 9,911 | ||
Hirschmann [Member] | Foreign Currency Translation Gains (Losses) [Member] | |||
Other comprehensive income (loss), foreign currency transaction and translation reclassification adjustment from AOCI, realized upon sale or liquidation, net of tax | 828 | ||
Foreign Currency Translation Losses [Member] | |||
Other comprehensive (loss) income before reclassifications | (1,517) | (3,195) | 18,065 |
Foreign Currency Translation Losses [Member] | Intercompany Transactions Of Long Term Investment Nature [Member] | |||
Other comprehensive (loss) income before reclassifications | (56) | (1,064) | 12,488 |
Foreign Currency Translation Losses [Member] | Translating Financial Statements [Member] | |||
Other comprehensive (loss) income before reclassifications | $ (1,461) | $ (2,131) | 5,577 |
Discontinued Operations [Member] | |||
Other comprehensive income (loss), reclassification adjustment from AOCI on derivatives, net of tax | 71 | ||
Other comprehensive income (loss), Reclassification adjustment from AOCI on derivatives, net of tax | (501) | ||
Other comprehensive income (loss), Reclassification adjustment from AOCI on derivatives, net of tax | 501 | ||
Discontinued Operations, Disposed of by Sale [Member] | |||
Other comprehensive income (loss), Reclassification adjustment from AOCI on derivatives, net of tax | 384 | ||
Other comprehensive income (loss), Reclassification adjustment from AOCI on derivatives, net of tax | $ (384) |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Details) € in Thousands, $ in Thousands | Jan. 31, 2020USD ($) | Apr. 18, 2017USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2017EUR (€) |
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | $ 16,500 | $ 1,814 | ||||
Business combination, preliminary purchase price | 16,610 | $ 2,344 | ||||
Business combination, contingent consideration, liability | $ 110 | $ 530 | ||||
Business combination, acquisition completion period | 12 months | |||||
Percentage of net sales and income before taxes | 1.00% | |||||
Fee payable for future net sales | 2.00% | |||||
Period for future net sales | 3 years | |||||
Disposal group, including discontinued operation, consideration | $ 177,000 | € 148,500 | ||||
Investment foreign currency, contract, foreign currency amount | € | € 148,500 | |||||
Derivative instruments not designated as hedging instruments, loss | $ 6,618 | |||||
Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration, liability payable | $ 750 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Allocation of Purchase Price for Fair Value of Asset Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 18, 2017 | Feb. 29, 2020 | Jan. 31, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Business Acquisition [Line Items] | ||||||
Inventory | $ 1,444 | $ 6,982 | ||||
Accounts receivable | 3,415 | |||||
Right of use assets | 483 | |||||
Other current assets | 145 | |||||
Property and equipment | 714 | |||||
Goodwill | 880 | $ 55,000 | 215 | $ 54,785 | $ 54,785 | $ 53,905 |
Intangible assets including trademarks and customer relationships | 520 | |||||
Other non-current assets | 3 | |||||
Total assets acquired | 2,844 | 18,257 | ||||
Accounts payable | 757 | |||||
Accrued expenses | 219 | |||||
Lease liabilities | 483 | |||||
Warranty accrual | 500 | 188 | ||||
Total | 500 | 1,647 | ||||
Total purchase price | 2,344 | 16,610 | ||||
Inventory | 2,314 | |||||
Goodwill | 10 | |||||
Intangible assets including trademarks and customer relationships | 520 | |||||
Total assets acquired | 2,844 | |||||
Warranty accrual | 500 | |||||
Total | 500 | |||||
Total purchase price | 2,344 | |||||
Inventory, measurement period adjustments | (870) | |||||
Goodwill, measurement period adjustments | 870 | |||||
Intangible assets including trademarks and customer relationships, measurement period adjustments | 0 | |||||
Total assets acquired, measurement period adjustments | 0 | |||||
Liabilities assumed, measurement period adjustments | 0 | |||||
Total purchase price, measurement period adjustments | 0 | |||||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Liabilities assumed, measurement period adjustments | $ 0 | |||||
Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 560 | |||||
Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 5,460 | |||||
Patented Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | $ 280 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Reconciliation of Results of Operations for Discontinued Operations to Net Income from Discontinued Operations, Net of Tax (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | $ 91,824 | |||
Cost of sales | 63,610 | |||
Gross profit | 28,214 | |||
Total operating expenses | 25,397 | |||
General and administrative | 14,699 | |||
Operating income from discontinued operations | 2,817 | |||
Interest and bank charges | [1] | (279) | ||
Other, net | 145 | |||
Total other expense of discontinued operations, net | (134) | |||
Gain on sale of discontinued operations before taxes | 36,118 | |||
Total income from discontinued operations before taxes | 38,801 | |||
Income tax expense on discontinued operations | [2] | 4,183 | ||
Income from discontinued operations, net of taxes | $ 0 | $ 0 | $ 34,618 | |
Income per share - basic | $ 1.43 | |||
Income per share - diluted | $ 1.41 | |||
Selling and Marketing Expense [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Total operating expenses | $ 2,778 | |||
Other Operating Income (Expense) [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Total operating expenses | $ 7,920 | |||
[1] | Includes an allocation of consolidated interest expense and interest expense directly related to debt assumed by the buyer. The allocation of consolidated interest expense was based upon the ratio of net assets of the discontinued operations to that of the Consolidated Company. | |||
[2] | The income tax expense on discontinued operations for the year ended February 28, 2018 was positively impacted by an income tax benefit related to the partial reversal of the Company’s valuation allowance as the Company utilized a significant portion of its tax attributes to offset the U.S. tax gain related to the sale of Hirschmann. |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Schedule of Supplemental Cash Flow Information of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Supplemental Cash Flow Information Of Discontinued Operations [Line Items] | |||
Depreciation and amortization expense | $ 2,939 | ||
Stock-based compensation expense | $ 2,282 | $ 551 | 552 |
Capital expenditures | 2,652 | ||
Capital expenditures funded by long-term obligations | $ 0 | $ 360 | 0 |
Discontinued Operations [Member] | |||
Supplemental Cash Flow Information Of Discontinued Operations [Line Items] | |||
Stock-based compensation expense | 50 | ||
Discontinued Operations, Disposed of by Sale [Member] | |||
Supplemental Cash Flow Information Of Discontinued Operations [Line Items] | |||
Capital expenditures funded by long-term obligations | $ 1,916 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Variable Interest Entity [Line Items] | ||
Notes, loans and financing receivable, net, noncurrent | 1.50 | |
Long-term debt, net of debt issuance costs | $ 6,099,000 | $ 5,776,000 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt instrument, interest rate during period | 2.50% | 10.00% |
Line of credit facility, maximum borrowing capacity | $ 57,500,000 | |
Long-term debt, net of debt issuance costs | $ 54,074,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Carrying Values of Assets and Liabilities Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 37,425 | $ 58,236 |
Accounts receivable, net | 69,714 | 73,391 |
Prepaid expenses and other current assets | 10,885 | 10,449 |
Total current assets | 217,820 | 246,385 |
Property, plant and equipment, net | 51,424 | 60,493 |
Intangible assets, net | 88,288 | 119,449 |
Other assets | 1,638 | 2,877 |
Total assets | 441,571 | 508,811 |
Current portion of long-term debt | 1,107 | 10,021 |
Total current liabilities | 71,022 | 95,216 |
Other long-term liabilities | 3,294 | 2,981 |
Total liabilities | 90,861 | 113,710 |
Commitments and contingencies | 0 | 0 |
Retained earnings | 122,139 | 148,582 |
Total liabilities and stockholders' equity | 441,571 | 508,811 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 3 | |
Accounts receivable, net | 147 | 363 |
Inventory, net | 2,052 | (27) |
Prepaid expenses and other current assets | 313 | 322 |
Total current assets | 2,512 | 661 |
Property, plant and equipment, net | 69 | 120 |
Intangible assets, net | 2,600 | 33,064 |
Other assets | 76 | 253 |
Total assets | 5,257 | 34,098 |
Accounts payable | 2,086 | 1,122 |
Interest payable to VOXX | 9,994 | 8,729 |
Accrued expenses and other current liabilities | 252 | 1,030 |
Current portion of long-term debt | 54,074 | 44,937 |
Total current liabilities | 66,406 | 55,818 |
Other long-term liabilities | 1,200 | 1,200 |
Total liabilities | 67,606 | 57,018 |
Commitments and contingencies | ||
Capital | 41,416 | 41,416 |
Retained earnings | (103,765) | (64,336) |
Total partners' deficit | (62,349) | (22,920) |
Total liabilities and stockholders' equity | $ 5,257 | $ 34,098 |
Variable Interest Entities - _2
Variable Interest Entities - Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Variable Interest Entity [Line Items] | |||||||||||
Net sales | $ 101,077 | $ 110,112 | $ 90,246 | $ 93,454 | $ 107,457 | $ 129,637 | $ 108,867 | $ 100,855 | $ 394,889 | $ 446,816 | $ 507,092 |
Cost of sales | 285,113 | 325,399 | 374,795 | ||||||||
Gross profit | $ 28,534 | $ 31,464 | $ 23,769 | $ 26,009 | 23,754 | $ 38,923 | 31,063 | $ 27,677 | 109,776 | 121,417 | 132,297 |
Selling | 38,471 | 40,915 | 45,999 | ||||||||
General and administrative | 68,928 | 66,935 | 78,957 | ||||||||
Engineering and technical support | 21,602 | 24,387 | 26,440 | ||||||||
Intangible asset impairment charges | $ 15,975 | $ 9,814 | 30,230 | 25,789 | 0 | ||||||
Total operating expenses | 159,231 | 162,614 | 151,396 | ||||||||
Operating loss | (49,455) | (41,197) | (19,099) | ||||||||
Interest and bank charges | (3,569) | (4,449) | (6,009) | ||||||||
Other, net | 2,078 | 577 | (7,590) | ||||||||
Total other income (expense), net | 8,515 | (17,766) | (5,005) | ||||||||
Loss from continuing operations before income taxes | (40,940) | (58,963) | (24,104) | ||||||||
Income tax expense | 882 | (6,131) | (17,445) | ||||||||
Net (loss) income | (41,822) | (52,832) | 27,959 | ||||||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||||||
Variable Interest Entity [Line Items] | |||||||||||
Net sales | 476 | 668 | 335 | ||||||||
Cost of sales | 826 | 309 | 455 | ||||||||
Gross profit | (350) | 359 | (120) | ||||||||
Selling | 710 | 1,160 | 1,893 | ||||||||
General and administrative | 4,625 | 4,986 | 6,792 | ||||||||
Engineering and technical support | 5,144 | 7,487 | 7,159 | ||||||||
Intangible asset impairment charges | 27,402 | ||||||||||
Total operating expenses | 37,881 | 13,633 | 15,844 | ||||||||
Operating loss | (38,231) | (13,274) | (15,964) | ||||||||
Interest and bank charges | (1,279) | (4,013) | (2,869) | ||||||||
Other, net | 81 | ||||||||||
Total other income (expense), net | (1,198) | (4,013) | (2,869) | ||||||||
Loss from continuing operations before income taxes | (39,429) | (17,287) | (18,833) | ||||||||
Net (loss) income | $ (39,429) | $ (17,287) | $ (18,833) |
Receivables from Vendors - Addi
Receivables from Vendors - Additional Information (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Receivables From Vendors [Abstract] | ||
Nontrade receivables, current | $ 230 | $ 1,009 |
Equity Investment - Additional
Equity Investment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity method investments | $ 5,174 | $ 6,618 | $ 7,178 |
Proceeds from equity method investment, distribution | 5,136 | 6,594 | 7,247 |
Retained earnings, undistributed earnings from equity method investees | 16,598 | 16,559 | |
Related party transaction, other revenues from transactions with related party | 501 | 390 | $ 315 |
Due from affiliate, current | $ 96 | $ 71 | |
ASA Electronics, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Accrued Liabilities Current [Abstract] | ||
Accrued Sales Commission, Current | $ 601 | |
Accrued Liabilities for Commissions, Expense and Taxes | $ 640 | |
Employee compensation | 10,060 | 14,552 |
Employee-related Liabilities, Current | 0 | |
Professional fees and accrued settlements | 1,703 | 2,172 |
Future warranty | 3,241 | 3,090 |
Refund liability | 3,779 | 4,415 |
Freight and duty | 5,140 | 2,427 |
Royalties, advertising and other | 9,522 | 11,833 |
Total accrued expenses and other current liabilities | $ 34,046 | $ 39,129 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Restructuring expense | $ 0 | $ 4,588 |
Other employee-related liabilities, current | 3,833 | |
Additional accruals settled | 3,196 | |
Restructuring liability, included accrued expenses and other current liabilities | 637 | |
Environmental exit costs, costs accrued to date | $ 405 | $ 454 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 | |
Debt, Long-term and Short-term, Combined Amount | $ 8,221 | $ 17,634 | |
Less: current portion of long-term debt | 1,107 | 10,021 | |
Long-term Debt, Excluding Current Maturities | 7,114 | 7,613 | |
Less: debt issuance costs | 1,015 | 1,837 | |
Long-term debt, net of debt issuance costs | 6,099 | 5,776 | |
Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | 7,614 | 8,112 |
Schwaiger [Member] | Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [2] | 235 | |
Audiovox Germany [Member] | Foreign Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [3] | 5,972 | |
Audiovox Germany [Member] | Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [4] | 2,588 | |
Magnat [Member] | Foreign Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [5] | $ 607 | $ 727 |
[1] | On July 6, 2015, VOXX HQ LLC, the Company’s wholly owned subsidiary, closed on a $9,995 industrial development revenue tax exempt bond under a loan agreement in favor of the Orange County Industrial Development Authority (the “Authority”) to finance the construction of the Company's manufacturing facility and executive offices in Lake Nona, Florida (the “Construction Loan”). Wells Fargo Bank, N.A. ("Wells Fargo") was the purchaser of the bond and U.S. Bank National Association is the trustee under an Indenture of Trust with the Authority. Voxx borrowed the proceeds of the bond purchase from the Authority during construction as a revolving loan, which converted to a permanent mortgage upon completion of the facility in January 2016 (the "Florida Mortgage"). The Company makes principal and interest payments to Wells Fargo, which began March 1, 2016 and will continue through March of 2026. The Florida Mortgage bears interest at 70% of 1-month LIBOR plus 1.54% (3.18% at February 29, 2020) and is secured by a first mortgage on the property, a collateral assignment of leases and rents and a guaranty by the Company. The Company is in compliance with the financial covenants of the Florida Mortgage, which are as defined in the Company’s Credit Facility with Wells Fargo dated April 26, 2016. The Company incurred debt financing costs totaling approximately $332 as a result of obtaining the Florida Mortgage, which are recorded as deferred financing costs and included in Long-term debt as a contra-liability balance on the accompanying Consolidated Balance Sheets and are being amortized through Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income over the ten-year term of the Florida Mortgage. The Company amortized $31 of these costs during each of the years ended February 29, 2020, February 28, 2019, and February 28, 2018. On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (see Note 1(e)). | ||
[2] | In January 2012, the Company's Schwaiger subsidiary purchased a building, entering into a mortgage note payable. The mortgage note bore interest at 3.75% and was fully paid in December 2019 | ||
[3] | Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000, for the Company's subsidiary, VOXX Germany, which expires on July 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 29, 2020). As of February 29, 2020, there is no balance outstanding under this facility, as it was repaid using the proceeds from the sale of the Company’s real property in Pulheim, Germany (see Note 11). | ||
[4] | This balance represented a mortgage on the land and building housing VOXX Germany's headquarters in Pulheim, Germany, which was entered into in January 2013. The mortgage bore interest at 2.85%, payable in twenty-six quarterly installments with a final payment due in September 2019. The note was fully paid on September 30, 2019 in conjunction with the sale of the building (see Note 11). | ||
[5] | Foreign bank obligations also include an ABL credit facility for the Company’s subsidiary Magnat, which expires on December 31, 2020. The rate of interest for the ABL is the three-month Euribor plus 2.10% (2.10% at February 29, 2020). |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Debt (Parenthethical) (Details) € in Thousands | Jun. 11, 2020USD ($) | Feb. 29, 2020USD ($)Rate | Feb. 29, 2020USD ($)Rate | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Feb. 29, 2020EUR (€)Rate | Apr. 26, 2016USD ($) | Jul. 20, 2015 | Jul. 20, 2015Rate | Jul. 06, 2015USD ($) | Jan. 03, 2013Rate | Jan. 09, 2012Rate | Oct. 23, 2000EUR (€) |
Debt Instrument, Interest Rate at Period End | 5.50% | 5.50% | 5.50% | ||||||||||
Percentage of maximum revolver amount | 12.50% | ||||||||||||
Debt instrument compliance description | Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 12.5% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 12.5% for any consecutive 30 day period thereafter) | ||||||||||||
Amortization of Debt Issuance Costs | $ 822,000 | $ 822,000 | $ 822,000 | ||||||||||
Line of Credit Facility, Commitment Fee Amount | $ 503,000 | $ 519,000 | 404,000 | ||||||||||
Debt Issuance Costs, Gross | 332,000 | ||||||||||||
Industrial Revenue Bond | $ 9,995,000 | ||||||||||||
Derivative, Fixed Interest Rate | 3.48% | 3.48% | |||||||||||
Mortgage bears interest rate | 0.70% | ||||||||||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.72% | 2.72% | 2.31% | 2.72% | |||||||||
Interest Expense | $ 799,000 | $ 951,000 | 2,700,000 | ||||||||||
Interest Expense, Debt | $ 0 | 0 | 1,708,000 | ||||||||||
Mortgages [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.54% | ||||||||||||
Debt Instrument, Interest Rate at Period End | Rate | 3.18% | 3.18% | 3.18% | ||||||||||
Amortization of Debt Issuance Costs | $ 31,000 | 31,000 | 31,000 | ||||||||||
Mortgages [Member] | Schwaiger [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.75% | ||||||||||||
Mortgages [Member] | Audiovox Germany [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 2.85% | ||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||||||
Base Rate [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||||
Base Rate [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||||||
Wells Fargo [Member] | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 84,436,000 | $ 84,436,000 | |||||||||||
Wells Fargo [Member] | Loans [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||||||||
Wells Fargo [Member] | Long-term Debt [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | 15,000,000 | ||||||||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 127,500,000 | ||||||||||||
Line of credit facility, maturity date | Apr. 26, 2022 | ||||||||||||
Revolving Credit Facility [Member] | Wells Fargo [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | 175,000,000 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 140,000,000 | ||||||||||||
Line of Credit Facility, Outstanding Balance | $ 0 | 0 | |||||||||||
Letter of Credit [Member] | Wells Fargo [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||||||||
Line of Credit [Member] | |||||||||||||
Amortization of Debt Issuance Costs | $ 791,000 | $ 791,000 | $ 791,000 | ||||||||||
Foreign Line of Credit [Member] | Audiovox Germany [Member] | |||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 8,000 | ||||||||||||
Line of Credit Facility, Outstanding Balance | € | € 0 | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.30% | ||||||||||||
Debt Instrument, Interest Rate at Period End | Rate | 2.30% | 2.30% | 2.30% | ||||||||||
Foreign Line of Credit [Member] | Magnat [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.10% | ||||||||||||
Debt Instrument, Interest Rate at Period End | Rate | 2.10% | 2.10% | 2.10% |
Financing Arrangements - Sche_3
Financing Arrangements - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Current Maturities | $ 1,107 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 500 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 5,114 | |
Debt, Long-term and Short-term, Combined Amount | $ 8,221 | $ 17,634 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss) Before Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Income Before Taxes [Abstract] | |||
Domestic Operations | $ (47,249) | $ (49,984) | $ (27,214) |
Foreign Operations | 6,309 | (8,979) | 3,110 |
Income before provision (benefit) for income taxes | $ (40,940) | $ (58,963) | $ (24,104) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Taxes Disclosure [Line Items] | |||
Current (benefit) provision | $ 2,193 | $ 937 | $ 513 |
Deferred (benefit) provision | (1,311) | (7,068) | (17,958) |
Total provision (benefit) | 882 | (6,131) | (17,445) |
Federal [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current (benefit) provision | (26) | (54) | (1,451) |
Deferred (benefit) provision | (1,850) | (4,772) | (17,198) |
Total provision (benefit) | (1,876) | (4,826) | (18,649) |
State [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current (benefit) provision | 395 | (401) | 150 |
Deferred (benefit) provision | (564) | (392) | (827) |
Total provision (benefit) | (169) | (793) | (677) |
Foreign [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current (benefit) provision | 1,824 | 1,392 | 1,814 |
Deferred (benefit) provision | 1,103 | (1,904) | 67 |
Total provision (benefit) | $ 2,927 | $ (512) | $ 1,881 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Before Income Taxes (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 21, 2017 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Effective Tax Rate Before Income Taxes [Abstract] | ||||
Tax benefit at Federal statutory rates, amount | $ (8,598) | $ (12,383) | $ (7,891) | |
State income taxes, net of Federal benefit, amount | (611) | (809) | (249) | |
Change in valuation allowance, amount | 4,218 | 6,164 | (2,546) | |
Change in tax reserves, amount | (52) | (697) | (2,443) | |
Non-controlling interest, amount | 3,229 | 1,416 | 2,404 | |
US effects of foreign operations, amount | 1,403 | 53 | 614 | |
Permanent differences and other, amount | 1,170 | 636 | 1,190 | |
U.S. GILTI inclusion, amount | 710 | |||
Foreign exchange loss, amount | 0 | (3,376) | ||
Change in tax rate, amount | (151) | 55 | (2,462) | |
Research & development credits, amount | (436) | (566) | (524) | |
Tax credits, amount | 0 | (2,162) | ||
Effective tax rate, amount | $ 882 | $ (6,131) | $ (17,445) | |
Tax benefit at Federal statutory rates, percent | 35.00% | 21.00% | 21.00% | 32.70% |
State income taxes, net of Federal benefit, percent | 1.50% | 1.40% | 1.00% | |
Change in valuation allowance, percent | (10.30%) | (10.50%) | 10.60% | |
Change in tax reserves, percent | 1.20% | 10.10% | ||
Non-controlling interest, percent | (7.90%) | (2.40%) | (10.00%) | |
US effects of foreign operations, percent | (3.40%) | (0.10%) | (2.50%) | |
Permanent differences and other, percent | (2.90%) | (1.10%) | (4.90%) | |
U.S. GILTI inclusion, percent | (1.70%) | |||
Foreign exchange loss, percent | 0.00% | 14.00% | ||
Change in tax rate, percent | 0.40% | (0.10%) | 10.20% | |
Research & development credits, percent | 1.10% | 1.00% | 2.20% | |
Tax credits, percent | (0.00%) | 9.00% | ||
Effective tax rate, percent | (2.20%) | 10.40% | 72.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 21, 2017 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Taxes Disclosure [Line Items] | ||||
Tax benefit at Federal statutory rates, percent | 35.00% | 21.00% | 21.00% | 32.70% |
Decrease in deferred tax assets and liabilities | $ 4,706 | |||
Valuation allowance increase (decrease) in defferred tax asset | $ 4,184 | |||
Operating loss carryforwards, net | 45,486 | |||
Operating loss carried forward available for offsetting against future taxable income | $ 20,356 | |||
Net operating loss carried forward available for offsetting against future taxable income percentage | 100.00% | |||
Net operating loss carried remaining forward available for offsetting against future taxable income percentage | 80.00% | |||
Deferred tax assets, Capital loss carryforwards | $ 14,112 | |||
Research and Development, Tax credits | $ 3,125 | |||
Tax credit carryforward, Description | The Company has various foreign net operating loss carryforwards, state net operating loss carryforwards, and state tax credits that expire in various years and amounts through tax year 2040. | |||
Unrecognized tax benefits that would impact effective tax rate | $ 6,232 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 1,225 | $ 210 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 15 | (389) | (145) | |
Unrecognized tax benefits, period increase (decrease) | 139 | $ 227 | $ (578) | |
Settlement with Taxing Authority [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | 7,235 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 223 | |||
Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits, period increase (decrease) | 200 | |||
Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits, period increase (decrease) | $ 300 | |||
Capital Loss Carryforward [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2024 | |||
Research and Development [Member] | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2035 | |||
Research and Development [Member] | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2040 | |||
Domestic Tax Authority [Member] | CARES Act [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss expiration period | 2038 | |||
Domestic Tax Authority [Member] | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss expiration period | 2035 | |||
Domestic Tax Authority [Member] | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Net operating loss expiration period | 2037 | |||
Foreign [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit carryforward, amount | $ 3,231 | |||
Foreign [Member] | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2025 | |||
Foreign [Member] | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2028 | |||
Earliest Tax Year [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Operating loss carryforwards, net | $ 17,703 | |||
Earliest Tax Year [Member] | CARES Act [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Operating loss carryforwards, net | 20,356 | |||
Latest Tax Year [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Operating loss carryforwards, net | $ 7,427 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Accounts receivable | $ 266 | $ 357 |
Inventory | 1,764 | 2,374 |
Property, plant and equipment | 1,554 | 1,900 |
Operating lease | 773 | |
Accruals and reserves | 2,641 | 4,008 |
Deferred compensation | 556 | 632 |
Warranty reserves | 698 | 699 |
Unrealized gains and losses | 4,103 | 4,179 |
Partnership investments | 5,142 | 496 |
Net operating losses | 15,011 | 12,267 |
Foreign tax credits | 3,805 | 3,805 |
Other tax credits | 5,098 | 4,752 |
Deferred tax assets before valuation allowance | 41,411 | 35,469 |
Less: valuation allowance | (26,210) | (22,026) |
Total deferred tax assets | 15,201 | 13,443 |
Intangible assets | (16,795) | (17,145) |
Prepaid expenses | (1,304) | (1,286) |
Operating lease | (765) | |
Deferred financing fees | (113) | (217) |
Total deferred tax liabilities | (18,977) | (18,648) |
Net deferred tax liability | $ (3,776) | $ (5,205) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance, unrecognized tax benefits | $ 9,082 | $ 9,107 | $ 10,844 |
Additions based on tax positions taken in the current and prior years | 399 | 2,125 | 630 |
Settlements | 0 | 0 | 0 |
Decreases based on tax positions taken in the prior years | (2,107) | (1,923) | (2,945) |
Other | (139) | (227) | 578 |
Ending balance, unrecognized tax benefits | $ 7,235 | $ 9,082 | $ 9,107 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Returns Subject to Examination by Tax Authorities in Major Jurisdictions (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Tax Year 2016 [Member] | US [Member] | Domestic Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2016 |
Tax Year 2015 [Member] | Netherlands [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2015 |
Tax Year 2014 [Member] | Germany [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2014 |
Capital Structure - Schedule of
Capital Structure - Schedule of Capital Units (Details) - $ / shares | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Capital Unit [Line Items] | ||
Preferred stock, shares outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Common Class A [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares, Outstanding | 21,556,976 | 21,938,100 |
Common Stock, Voting Rights | 0 | |
Common Class B [Member] | ||
Capital Unit [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Outstanding | 2,260,954 | 2,260,954 |
Common Stock, Voting Rights | 0 | |
Preferred Stock [Member] | ||
Capital Unit [Line Items] | ||
Preferred Stock, Par or Stated Value Per Share | $ 50 | |
Preferred Stock, Shares Authorized | 50,000 | 50,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Voting Rights | 0 | |
Preferred Stock, Liquidation Preference Per Share | $ 50 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Feb. 29, 2020USD ($)shares | Feb. 28, 2019shares | Feb. 28, 2018shares | Apr. 01, 2019shares | |
Equity [Abstract] | ||||
Conversion of shares, common stock | 1 | |||
Treasury stock, shares | 2,749,218 | 2,168,094 | ||
Stock repurchase program, number of shares authorized to be repurchased | 2,418,876 | 3,000,000 | ||
Stock repurchased during period, shares | 581,124 | 0 | 0 | |
Stock repurchased during period, value | $ | $ 2,742 |
Other Stock and Retirement Pl_2
Other Stock and Retirement Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 542,000 | ||
Defined contribution plan, employer discretionary contribution amount | $ 0 | $ 0 | $ 0 |
Deferred compensation arrangement with individual, cash awards granted, percentage of deferred salary | 25.00% | ||
Deferred compensation arrangement with individual, maximum employer contribution | $ 20 | ||
Deferred compensation plan assets | 2,282 | 2,858 | |
Deferred Profit Sharing [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, employer discretionary contribution amount | 359 | 378 | 388 |
Deferred Bonus [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, employer discretionary contribution amount | $ 0 | $ 0 | $ 0 |
Lease Obligations - Additional
Lease Obligations - Additional Information (Details) € in Thousands | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Nov. 30, 2019USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 01, 2019USD ($) |
Leases [Line Items] | |||||||
Operating lease, right of use asset | $ 3,143,000 | $ 0 | |||||
Lease liabilities | 3,175,000 | ||||||
Short term leases | 0 | ||||||
Gain related to execution of sale transaction | 4,057,000 | ||||||
Operating leases, rent expense | 883,000 | $ 1,163,000 | |||||
Rental income | $ 663,000 | $ 517,000 | $ 553,000 | ||||
Selling Real Property in Pulheim, Germany to CLM S.A. RL [Member] | |||||||
Leases [Line Items] | |||||||
Sale leaseback transaction, selling price | € | € 10,920 | ||||||
Net proceeds from sale leaseback transaction after transactional costs and repayment of outstanding mortgage | $ 9,500,000 | ||||||
Sale leaseback transaction transaction costs | 270,000 | ||||||
Repayment of outstanding mortgage on the property | $ 2,104,000 | ||||||
Sale leaseback transaction initial lease term | 5 years | ||||||
Gain related to execution of sale transaction | $ 4,057,000 | $ 4,057,000 | |||||
Minimum [Member] | |||||||
Leases [Line Items] | |||||||
Operating and finance leases remaining lease terms | 1 year | ||||||
Maximum [Member] | |||||||
Leases [Line Items] | |||||||
Operating and finance leases remaining lease terms | 7 years | ||||||
ASU 2016-02 [Member] | |||||||
Leases [Line Items] | |||||||
Operating lease, right of use asset | $ 2,227,000 | ||||||
Lease liabilities | $ 2,243,000 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Components of Lease Cost (Details) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 880 | [1],[2] |
Finance lease cost: | ||
Amortization of right of use assets | 684 | [2] |
Interest on lease liabilities | 47 | [3] |
Total finance lease cost | $ 731 | |
[1] | Includes immaterial amounts related to variable rent expense. | |
[2] | Recorded within Selling, general and administrative, Engineering and technical support, and Cost of sales on the Consolidated Statements of Operations and Comprehensive (Loss) Income. | |
[3] | Recorded within Interest and bank charges on the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Non-cash investing and financing activities: | |||
Right of use assets obtained in exchange for operating lease obligations | $ 1,312 | ||
Property, plant, and equipment obtained in exchange for finance lease obligations | 1,024 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 841 | ||
Operating cash flows from finance leases | 47 | ||
Finance cash flows from finance leases | 646 | $ 402 | $ 565 |
Adoption of ASC 842 [Member] | |||
Non-cash investing and financing activities: | |||
Right of use assets obtained in exchange for operating lease obligations | $ 2,227 |
Lease Obligations - Schedule _3
Lease Obligations - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Operating Leases | ||
Operating lease, right of use assets | $ 3,143 | $ 0 |
Total operating lease right of use assets | 3,143 | |
Accrued expenses and other current liabilities | 784 | |
Operating lease liabilities, less current portion | 2,391 | 0 |
Total operating lease liabilities | 3,175 | |
Finance Leases | ||
Property, plant and equipment, gross | 2,503 | |
Accumulated depreciation | (1,209) | |
Total finance lease right of use assets | 1,294 | |
Accrued expenses and other current liabilities | 613 | |
Finance lease liabilities, less current portion | 720 | $ 516 |
Total finance lease liabilities | $ 1,333 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 4 years 4 months 24 days | |
Finance leases | 3 years 10 months 24 days | |
Weighted Average Discount Rate | ||
Operating leases | 5.98% | |
Finance leases | 3.87% |
Lease Obligations - Schedule _4
Lease Obligations - Schedule of Maturities of Leases Liabilities (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Operating Leases | |
2021 | $ 948 |
2022 | 907 |
2023 | 641 |
2024 | 480 |
2025 | 359 |
Thereafter | 268 |
Total lease payments | 3,603 |
Less imputed interest | 428 |
Total | 3,175 |
Finance Leases | |
2021 | 640 |
2022 | 428 |
2023 | 228 |
2024 | 80 |
Total lease payments | 1,376 |
Less imputed interest | 43 |
Total | $ 1,333 |
Lease Obligations - Schedule _5
Lease Obligations - Schedule of Minimum Future Payment of Capital and Operating Lease (Details) $ in Thousands | Feb. 28, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 946 |
Operating Leases, Future Minimum Payments, Due in Two Years | 604 |
Operating Leases, Future Minimum Payments, Due in Three Years | 391 |
Operating Leases, Future Minimum Payments, Due in Four Years | 154 |
Operating Leases, Future Minimum Payments, Due in Five Years | 10 |
Operating Leases, Future Minimum Payments, Due Thereafter | 0 |
Operating Leases, Future Minimum Payments Due | $ 2,105 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020USD ($)Rate | Feb. 28, 2019USD ($)Rate | Feb. 28, 2018Rate | |
Financial Instruments [Line Items] | |||
Letters of credit outstanding, amount | $ 0 | $ 0 | |
Unrecorded unconditional purchase obligation | $ 54,255 | ||
Number of customers | 0 | 0 | 0 |
Concentration risk, benchmark description | 0.1 | 0.1 | 0.1 |
Net Sales [Member] | |||
Financial Instruments [Line Items] | |||
Entity-wide revenue, major customer, percentage | Rate | 24.00% | 25.00% | 26.00% |
Number of major customer | 5 | 5 | 5 |
Accounts Receivable [Member] | |||
Financial Instruments [Line Items] | |||
Entity-wide revenue, major customer, percentage | Rate | 24.00% | 24.00% | |
Number of major customer | 5 | 5 | |
Letter of Credit [Member] | |||
Financial Instruments [Line Items] | |||
Letters of credit outstanding, amount | $ 68 | $ 892 |
Financial and Product Informa_3
Financial and Product Information About Foreign and Domestic Operations - Additional Information (Details) | Mar. 01, 2019Segment | Feb. 29, 2020Segment | Feb. 28, 2019 | Feb. 28, 2018 |
Segment Reporting [Abstract] | ||||
Number of operating segments | 3 | 3 | ||
Number of customers | 0 | 0 | 0 | |
Concentration risk, benchmark description | 0.1 | 0.1 | 0.1 |
Financial and Product Informa_4
Financial and Product Information About Foreign and Domestic Operations - Schedule of Segment Data from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 101,077 | $ 110,112 | $ 90,246 | $ 93,454 | $ 107,457 | $ 129,637 | $ 108,867 | $ 100,855 | $ 394,889 | $ 446,816 | $ 507,092 |
Equity in income of equity investee | 5,174 | 6,618 | 7,178 | ||||||||
Interest expense and bank charges | 3,569 | 4,449 | 6,009 | ||||||||
Depreciation and amortization | 13,278 | 12,344 | 12,174 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (40,940) | (58,963) | (24,104) | ||||||||
Operating Segments [Member] | Automotive Electronics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 114,154 | 161,647 | 155,480 | ||||||||
Equity in income of equity investee | 5,174 | 6,618 | 7,178 | ||||||||
Interest expense and bank charges | 436 | 868 | 967 | ||||||||
Depreciation and amortization | 878 | 1,002 | 1,027 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (724) | 13,842 | 13,922 | ||||||||
Operating Segments [Member] | Consumer Electronics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 279,675 | 283,144 | 350,526 | ||||||||
Equity in income of equity investee | 0 | 0 | 0 | ||||||||
Interest expense and bank charges | 10,076 | 10,852 | 12,223 | ||||||||
Depreciation and amortization | 4,390 | 4,419 | 4,989 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 9,385 | (29,348) | (3,872) | ||||||||
Operating Segments [Member] | Biometrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 461 | 1,098 | 636 | ||||||||
Equity in income of equity investee | 0 | 0 | 0 | ||||||||
Interest expense and bank charges | 1,279 | 4,013 | 2,869 | ||||||||
Depreciation and amortization | 3,136 | 3,158 | 3,166 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (39,241) | (18,928) | (18,832) | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 599 | 927 | 450 | ||||||||
Equity in income of equity investee | 0 | 0 | 0 | ||||||||
Interest expense and bank charges | (8,222) | (11,284) | (10,050) | ||||||||
Depreciation and amortization | 4,874 | 3,765 | 2,992 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (10,360) | $ (24,529) | $ (15,322) |
Financial and Product Informa_5
Financial and Product Information About Foreign and Domestic Operations - Schedule of Segment Data from Continuing Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 29, 2020 | Feb. 28, 2019 | Aug. 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Gain related to execution of sale transaction | $ 4,057 | |||||
Intangible asset impairment charges | $ 15,975 | $ 9,814 | 30,230 | $ 25,789 | $ 0 | |
Indefinite-lived and definite-lived intangible asset impairment charges | $ 30,230 | 30,230 | ||||
Impairment of Venezuela investment properties | $ 3,473 | 0 | 3,473 | 0 | ||
Impairment of notes receivable | $ (16,509) | 0 | 16,509 | $ 0 | ||
Consumer Electronics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Intangible asset impairment charges | 2,828 | 25,629 | ||||
Biometrics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Indefinite-lived and definite-lived intangible asset impairment charges | $ 27,402 | |||||
Automotive [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Intangible asset impairment charges | $ 160 |
Financial and Product Informa_6
Financial and Product Information About Foreign and Domestic Operations - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | $ 101,077 | $ 110,112 | $ 90,246 | $ 93,454 | $ 107,457 | $ 129,637 | $ 108,867 | $ 100,855 | $ 394,889 | $ 446,816 | $ 507,092 |
Long-lived assets | 51,424 | 60,493 | 51,424 | 60,493 | 65,259 | ||||||
UNITED STATES | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 322,612 | 393,834 | 446,262 | ||||||||
Long-lived assets | 48,111 | 48,870 | 48,111 | 48,870 | 48,571 | ||||||
Europe [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 69,755 | 49,970 | 57,447 | ||||||||
Long-lived assets | 3,099 | 11,553 | 3,099 | 11,553 | 12,979 | ||||||
Non-US [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Net sales | 2,522 | 3,012 | 3,383 | ||||||||
Long-lived assets | $ 214 | $ 70 | $ 214 | $ 70 | $ 3,709 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | |
Feb. 29, 2020USD ($)Segment | Feb. 28, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Contract with customer, right to recover product | $ 1,544,000 | $ 1,962,000 |
Contract with customer, refund liability | 3,779,000 | 4,415,000 |
Contract with customer, asset, net | 0 | 0 |
Contract with customer, liability | 0 | 0 |
Revenue, remaining performance obligation, amount | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 101,077 | $ 110,112 | $ 90,246 | $ 93,454 | $ 107,457 | $ 129,637 | $ 108,867 | $ 100,855 | $ 394,889 | $ 446,816 | $ 507,092 |
Corporate, Non-Segment [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 599 | 927 | 450 | ||||||||
Automotive [Member] | Operating Segments [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 114,154 | 161,647 | 155,480 | ||||||||
Automotive [Member] | Operating Segments [Member] | OEM Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 49,673 | 90,844 | 77,902 | ||||||||
Automotive [Member] | Operating Segments [Member] | Aftermarket Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 64,481 | 70,803 | 77,578 | ||||||||
Consumer Electronics [Member] | Operating Segments [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 279,675 | 283,144 | 350,526 | ||||||||
Consumer Electronics [Member] | Operating Segments [Member] | Premium Audio Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 170,762 | 158,436 | 172,406 | ||||||||
Consumer Electronics [Member] | Operating Segments [Member] | Other Consumer Electronic Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 108,913 | 124,708 | 178,120 | ||||||||
Biometrics [Member] | Operating Segments [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 461 | 1,098 | 636 | ||||||||
Biometrics [Member] | Operating Segments [Member] | Biometric Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 461 | $ 1,098 | $ 636 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data - Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 101,077 | $ 110,112 | $ 90,246 | $ 93,454 | $ 107,457 | $ 129,637 | $ 108,867 | $ 100,855 | $ 394,889 | $ 446,816 | $ 507,092 |
Gross profit | 28,534 | 31,464 | 23,769 | 26,009 | 23,754 | 38,923 | 31,063 | 27,677 | 109,776 | 121,417 | 132,297 |
Net (loss) income attributable to Voxx International Corporation | $ (21,795) | $ 2,464 | $ (5,964) | $ (1,148) | $ (36,560) | $ 12,211 | $ (20,803) | $ (939) | $ (26,443) | $ (46,091) | $ 35,304 |
(Loss) income per share - basic: Attributable to VOXX International Corporation | $ (0.90) | $ 0.10 | $ (0.24) | $ (0.05) | $ (1.50) | $ 0.50 | $ (0.85) | $ (0.04) | $ (1.08) | $ (1.89) | $ 1.45 |
(Loss) income per share - diluted: Attributable to VOXX International Corporation | $ (0.90) | $ 0.10 | $ (0.24) | $ (0.05) | $ (1.50) | $ 0.50 | $ (0.85) | $ (0.04) | $ (1.08) | $ (1.89) | $ 1.44 |
Unaudited Quarterly Financial_4
Unaudited Quarterly Financial Data - Unaudited Quarterly Financial Data (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Impairment of intangible assets definite and indefinite-lived (excluding goodwill) | $ 30,230 | $ 30,230 | ||||||
Impairment of notes receivable | $ 16,509 | 0 | $ (16,509) | $ 0 | ||||
Impairment of Venezuela investment properties | $ 3,473 | 0 | 3,473 | 0 | ||||
Gain related to execution of sale transaction | 4,057 | |||||||
Intangible asset impairment charges | $ 15,975 | $ 9,814 | 30,230 | $ 25,789 | $ 0 | |||
RxNetworks [Member] | ||||||||
Cost-method investments, realized gain (loss) | $ 775 | |||||||
Selling Real Property in Pulheim, Germany to CLM S.A. RL [Member] | ||||||||
Gain related to execution of sale transaction | $ 4,057 | $ 4,057 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Jun. 11, 2020 | Apr. 08, 2020 | Feb. 29, 2020 |
Subsequent Event [Line Items] | |||
Percentage of maximum revolver amount | 12.50% | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 127,500 | ||
Line of credit facility, maturity date | Apr. 26, 2022 | ||
Subsequent Event [Member] | Wells Fargo Credit Facility [Member] | |||
Subsequent Event [Line Items] | |||
Amount borrowed from Credit Facility | $ 20,000 | ||
Subsequent Event [Member] | Wells Fargo Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 127,500 | ||
Line of credit facility, maturity date | Apr. 26, 2022 | ||
Percentage of maximum revolver amount | 20.00% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | $ 1,125 | $ 1,205 | $ 1,233 | |||
Gross Amount Charged to Costs and Expenses | 5,243 | 6,112 | 6,407 | |||
Reversals of Previously Established Accruals | [1] | 0 | 0 | 0 | ||
Deductions | [1],[2] | 5,617 | 6,192 | 6,435 | ||
Balance at End of Year | 751 | 1,125 | 1,205 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 2,548 | 2,196 | 4,495 | |||
Gross Amount Charged to Costs and Expenses | 253 | 858 | 667 | |||
Reversals of Previously Established Accruals | [1] | 0 | 0 | 0 | ||
Deductions | [1],[2] | 847 | 506 | 2,966 | ||
Balance at End of Year | 1,954 | 2,548 | 2,196 | |||
Reserve for Warranties and Product Repair Costs [Member] | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 4,469 | 6,233 | 5,608 | |||
Gross Amount Charged to Costs and Expenses | 4,935 | 6,091 | 7,428 | |||
Reversals of Previously Established Accruals | [1] | 0 | 0 | 0 | ||
Deductions | [1],[2] | 4,656 | 7,855 | 6,803 | ||
Balance at End of Year | 4,748 | 4,469 | 6,233 | |||
Sales Return Reserve [Member] | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 4,415 | [3] | 1,660 | 1,516 | ||
Gross Amount Charged to Costs and Expenses | 13,243 | 10,391 | [3] | 5,450 | ||
Reversals of Previously Established Accruals | [1] | 0 | 0 | [3] | 0 | |
Deductions | [1],[2] | 13,879 | 9,755 | [3] | 5,306 | |
Balance at End of Year | 3,779 | 4,415 | [3] | 1,660 | ||
Sales Return Reserve [Member] | ASC 6060 [Member] | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | [3] | 3,779 | ||||
Balance at End of Year | [3] | 3,779 | ||||
Accrued Sales Incentives [Member] | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 13,574 | 14,020 | 13,154 | |||
Gross Amount Charged to Costs and Expenses | 35,345 | 37,272 | 42,722 | |||
Reversals of Previously Established Accruals | [1] | (114) | (202) | (45) | ||
Deductions | [1],[2] | 36,555 | 37,516 | 41,811 | ||
Balance at End of Year | $ 12,250 | $ 13,574 | $ 14,020 | |||
[1] | Within the reserve for warranties and product repair costs, Column D includes $188 and $500 of liabilities acquired during our VSHC and Rosen acquisitions in Fiscal 2020 and Fiscal 2018, respectively, and $832 that was reclassified to the return asset established in conjunction with the implementation of ASC Topic 606 in Fiscal 2019. Within the accrued sales incentives, Column D incudes $28 of liabilities acquired during our VSHC acquisition in Fiscal 2020. | |||||
[2] | For the allowance for doubtful accounts, cash discount allowances, and accrued sales incentives, deductions represent currency effects, chargebacks and payments made or credits issued to customers. For the reserve for warranties and product repair costs, deductions represent currency effects and payments for labor and parts made to service centers and vendors for the repair of units returned under warranty. | |||||
[3] | As a result of the implementation of ASC 606 on March 1, 2018, the accounting treatment for the reserve for sales returns was changed from a net to a gross basis. Under the previous revenue guidance, we recorded a net return reserve. Under the new guidance, we record estimated sales returns at the gross sales price with a corresponding adjustment to inventory for the estimated cost of the product. The difference between the balance at the end of the fiscal year ended February 28, 2018 and the beginning of the year ended February 28, 2019 reflects this change in accounting policy. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2018 | |
Valuation And Qualifying Accounts [Abstract] | ||
Standard and extended product warranty accrual | $ 188 | $ 500 |
Standard product warranty accrual, period increase (decrease) | (832) | |
Accrued sales incentives, liabilities acquired during acquisition | $ 28 |