Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | May 12, 2022 | Aug. 31, 2021 | |
Document Information [Line Items] | |||
Entity Registrant Name | VOXX INTERNATIONAL CORPORATION | ||
Entity Trading Symbol | VOXX | ||
Entity Central Index Key | 0000807707 | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 28, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
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 or 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 Line One | 2351 J. Lawson Boulevard | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Amendment Flag | false | ||
Entity Public Float | $ 148,099,490 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 248 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Melville, New York | ||
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 7, 2022 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 21,675,966 | ||
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. 28, 2022 | Feb. 28, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 27,788 | $ 59,404 |
Accounts receivable, net | 105,625 | 106,165 |
Inventory, net | 174,922 | 130,793 |
Receivables from vendors | 363 | 277 |
Prepaid expenses and other current assets | 21,340 | 22,266 |
Income tax receivable | 734 | 434 |
Total current assets | 330,772 | 319,339 |
Investment securities | 1,231 | 1,777 |
Equity investments | 21,348 | 23,267 |
Property, plant and equipment, net | 49,794 | 52,026 |
Operating lease, right of use asset | 4,464 | 4,572 |
Goodwill | 74,320 | 58,311 |
Intangible assets, net | 101,450 | 90,104 |
Deferred income tax assets | 40 | 99 |
Other assets | 3,245 | 1,323 |
Total assets | 586,664 | 550,818 |
Current liabilities: | ||
Accounts payable | 76,665 | 61,826 |
Accrued expenses and other current liabilities | 54,659 | 53,392 |
Income taxes payable | 2,714 | 1,587 |
Accrued sales incentives | 23,755 | 25,313 |
Interim arbitration award payable (Note 15) | 39,444 | |
Contract liabilities, current | 4,373 | 4,178 |
Current portion of long-term debt | 2,406 | 500 |
Total current liabilities | 204,016 | 146,796 |
Long-term debt, net of debt issuance costs | 9,786 | 5,962 |
Finance lease liabilities, less current portion | 78 | 302 |
Operating lease liabilities, less current portion | 3,298 | 3,582 |
Deferred compensation | 1,231 | 1,777 |
Contingent consideration, less current portion (Note 2) | 5,750 | |
Deferred income tax liabilities | 5,300 | 6,645 |
Other tax liabilities | 1,083 | 1,170 |
Other long-term liabilities | 5,959 | 5,255 |
Total liabilities | 236,501 | 171,489 |
Commitments and contingencies (Note 15) | ||
Redeemable equity (Note 1(u)) | 3,550 | 3,260 |
Redeemable non-controlling interest (Note 2) | 511 | |
Stockholders' equity: | ||
Preferred stock: | ||
Paid-in capital | 300,453 | 300,402 |
Retained earnings | 126,573 | 148,906 |
Accumulated other comprehensive loss | (17,503) | (14,977) |
Less: Treasury stock, at cost, 2,862,218 and 2,749,218 shares of Class A Common Stock at February 28, 2022 and February 28, 2021, respectively | (25,138) | (23,918) |
Less: Redeemable equity | (3,550) | (3,260) |
Total VOXX International Corporation stockholders' equity | 381,102 | 407,420 |
Non-controlling interest | (35,000) | (31,351) |
Total stockholders' equity | 346,102 | 376,069 |
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity | 586,664 | 550,818 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | 22 | 22 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | $ 245 | $ 245 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 28, 2022 | Feb. 28, 2021 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 2,862,218 | 2,749,218 |
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 | 24,476,847 | 24,416,194 |
Common stock, shares outstanding | 21,614,629 | 21,666,976 |
Treasury stock, shares | 2,862,218 | 2,749,218 |
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 Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | ||||
Income Statement [Abstract] | ||||||
Net sales | $ 635,920 | $ 563,605 | $ 394,889 | |||
Cost of sales | 466,442 | 405,058 | 285,113 | |||
Gross profit | 169,478 | 158,547 | 109,776 | |||
Operating expenses: | ||||||
Selling | 50,507 | 43,786 | 39,319 | |||
General and administrative | 75,955 | 69,798 | 68,873 | |||
Engineering and technical support | 31,540 | 20,897 | 21,602 | |||
Acquisition costs | 3,552 | 287 | 55 | |||
Intangible asset impairment charges | 1,300 | 30,230 | ||||
Total operating expenses | 161,554 | 136,068 | 160,079 | |||
Operating income (loss) | 7,924 | 22,479 | (50,303) | |||
Other (expense) income: | ||||||
Interest and bank charges | (2,532) | (2,979) | (2,975) | |||
Equity in income of equity investee | 7,890 | 7,350 | 5,174 | |||
Interim arbitration award (Note 15) | (39,444) | |||||
Gain on sale of real property (Note 11) | 4,057 | |||||
Investment gain (Note 1(f)) | 42 | 775 | ||||
Other, net | 323 | 746 | 2,332 | |||
Total other (expense) income, net | (33,763) | 5,159 | 9,363 | |||
(Loss) income before income taxes | (25,839) | [1] | 27,638 | [2] | (40,940) | [3] |
Income tax expense | 1,626 | 4,272 | 882 | |||
Net (loss) income | (27,465) | 23,366 | (41,822) | |||
Less: net loss attributable to non-controlling interest | (5,132) | (3,401) | (15,379) | |||
Net (loss) income attributable to VOXX International Corporation | (22,333) | 26,767 | (26,443) | |||
Other comprehensive (loss) income: | ||||||
Foreign currency translation adjustments | (3,317) | 4,365 | (1,517) | |||
Derivatives designated for hedging, net of tax | 633 | (305) | (505) | |||
Pension plan adjustments, net of tax | 158 | 18 | (89) | |||
Other comprehensive (loss) income, net of tax | (2,526) | 4,078 | (2,111) | |||
Comprehensive (loss) income attributable to VOXX International Corporation | $ (24,859) | $ 30,845 | $ (28,554) | |||
Net (loss) income per common share attributable to VOXX International Corporation - basic | $ (0.92) | $ 1.11 | $ (1.08) | |||
Net (loss) income per common share attributable to VOXX International Corporation - diluted | $ (0.92) | $ 1.09 | $ (1.08) | |||
Weighted-average common shares outstanding (basic) | 24,287,179 | 24,201,221 | 24,394,663 | |||
Weighted-average common shares outstanding (diluted) | 24,287,179 | 24,650,106 | 24,394,663 | |||
[1] | Included within Income (loss) before income taxes within Corporate/Eliminations for the year ended February 28, 2022 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 15). | |||||
[2] | Included within Income (loss) before income taxes for the year ended February 28, 2021 is an intangible asset impairment charge of $1,300 within the Consumer Electronics segment (see Note 1(k)). | |||||
[3] | Included within (Loss) income before income 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 $4,057 within the Consumer Electronics segment (see Note 11). |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-controlling Interests [Member] | Treasury Stock [Member] | Redeemable Equity [Member]Preferred Stock [Member] |
Stockholders equity, beginning of period at Feb. 28, 2019 | $ 395,101 | $ 264 | $ 296,946 | $ 148,582 | $ (16,944) | $ (12,571) | $ (21,176) | $ 0 |
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 |
Reclassification of stockholders' equity to redeemable equity (Note 1(u)) | (745) | 0 | 0 | 0 | 0 | 0 | 0 | (745) |
Repurchase of shares of Class A Common Stock | (2,742) | 0 | 0 | 0 | 0 | 0 | (2,742) | 0 |
Stock-based compensation expense | 548 | 2 | 2,282 | 0 | 0 | 0 | 0 | (1,736) |
Stockholders equity, end of period at Feb. 29, 2020 | 348,229 | 266 | 299,228 | 122,139 | (19,055) | (27,950) | (23,918) | (2,481) |
Net income (loss) | 23,366 | 0 | 0 | 26,767 | 0 | (3,401) | 0 | 0 |
Other comprehensive income (loss), net of tax | 4,078 | 0 | 0 | 0 | 4,078 | 0 | 0 | 0 |
Settlement of SERP restricted stock units | (575) | 0 | (575) | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 971 | 1 | 1,749 | 0 | 0 | 0 | 0 | (779) |
Stockholders equity, end of period at Feb. 28, 2021 | 376,069 | 267 | 300,402 | 148,906 | (14,977) | (31,351) | (23,918) | (3,260) |
Net income (loss) | (25,982) | 0 | 0 | (22,333) | 0 | (3,649) | 0 | 0 |
Other comprehensive income (loss), net of tax | (2,526) | 0 | 0 | 0 | (2,526) | 0 | 0 | 0 |
Settlement of 60,693 shares of Class A Common Stock upon vesting of stock awards, net of withholding taxes | (856) | 0 | (856) | 0 | 0 | 0 | 0 | 0 |
Repurchase of shares of Class A Common Stock | (1,220) | 0 | 0 | 0 | 0 | 0 | (1,220) | 0 |
Stock-based compensation expense | 617 | 0 | 907 | 0 | 0 | 0 | 0 | (290) |
Stockholders equity, end of period at Feb. 28, 2022 | $ 346,102 | $ 267 | $ 300,453 | $ 126,573 | $ (17,503) | $ (35,000) | $ (25,138) | $ (3,550) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Feb. 28, 2022 | Feb. 29, 2020 | |
Repurchase of shares of common stock | 113,000 | 581,124 |
Common Class A [Member] | ||
Repurchase of shares of common stock | 113,000 | 581,124 |
Shares issued upon vesting of stock awards | 60,693 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (27,465) | $ 23,366 | $ (41,822) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 12,398 | 11,033 | 12,398 |
Amortization of deferred financing costs | 272 | 623 | 822 |
Intangible asset impairment charges | 1,300 | 30,230 | |
Bad debt expense (recovery) | 222 | (316) | 720 |
Reduction in the carrying amount of the right of use asset | 1,383 | 1,169 | 880 |
Loss (gain) on forward contracts | 209 | 224 | (491) |
Equity in income of equity investee | (7,890) | (7,350) | (5,174) |
Distribution of income from equity investees | 9,809 | 6,009 | 5,136 |
Deferred income tax (benefit) expense, net | (1,339) | 2,653 | (1,337) |
Gain (loss) on disposal of property, plant and equipment | 1 | (3,791) | |
Non-cash compensation adjustment | (546) | (505) | (320) |
Non-cash stock-based compensation expense | 907 | 1,749 | 2,282 |
Gain on investment | (42) | (775) | |
Changes in operating assets and liabilities (net of assets and liabilities) acquired): | |||
Accounts receivable | (1,244) | (29,602) | 5,692 |
Inventory | (45,115) | (22,735) | 9,571 |
Receivables from vendors | (89) | (44) | 777 |
Prepaid expenses and other | (1,610) | (10,753) | 423 |
Investment securities-equity | 546 | 505 | 576 |
Accounts payable, accrued expenses, accrued sales incentives and other current liabilities | 55,719 | 59,414 | (17,378) |
Income taxes receivable/payable | 872 | (87) | 572 |
Net cash (used in) provided by operating activities | (2,960) | 36,611 | (1,009) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (3,902) | (2,907) | (2,914) |
Proceeds from sale of property, plant and equipment | 11,930 | ||
Proceeds from sale of long-term investment | 42 | 775 | |
Purchase of acquired businesses (Note 2) | (30,406) | (11,000) | (16,500) |
Net cash used in investing activities | (34,308) | (13,865) | (6,709) |
Cash flows from financing activities: | |||
Borrowings from bank obligations | 3,687 | 20,000 | 0 |
Repayments on bank obligations | (2,197) | (20,500) | (9,205) |
Principal payments on finance lease obligations | (407) | (605) | (646) |
Deferred financing costs | (667) | (260) | |
Withholding taxes paid on net issuance of stock award | (857) | ||
Settlement of restricted stock units | (575) | ||
Proceeds of the issuance of subsidiary shares to non-controlling interest | 2,069 | ||
Proceeds of the issuance of long-term debt to non-controlling interest | 4,877 | ||
Purchase of treasury stock | (1,220) | (2,742) | |
Net cash provided by (used in) financing activities | 5,285 | (1,940) | (12,593) |
Effect of exchange rate changes on cash | 367 | 1,173 | (500) |
Net (decrease) increase in cash and cash equivalents | (31,616) | 21,979 | (20,811) |
Cash and cash equivalents at beginning of year | 59,404 | 37,425 | 58,236 |
Cash and cash equivalents at end of year | 27,788 | 59,404 | 37,425 |
Non-cash investing and financing activities: | |||
Adjustments to goodwill due to measurement period adjustments, net | (1,353) | 21 | 0 |
Contingent purchase price consideration in connection with business acquisition | 6,778 | ||
Settlement of debt with receivables | 607 | 0 | |
Change in redeemable equity | 290 | 779 | 1,736 |
Reclassification of stockholders' equity to redeemable equity | 745 | ||
Right of use assets obtained in exchange for operating lease obligations | 1,238 | 772 | 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 | 1,383 | 1,169 | 880 |
Operating cash flows from finance leases | 11 | 28 | 47 |
Financing cash flows from finance leases | 407 | 605 | 646 |
Interest, excluding bank charges | 760 | 1,101 | 1,034 |
Income taxes (net of refunds) | $ 1,983 | $ 1,807 | 1,551 |
Adoption of ASC 842 [Member] | |||
Non-cash investing and financing activities: | |||
Right of use assets obtained in exchange for operating lease obligations | $ 2,227 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2022 | |
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 nineteen 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"), Premium Audio Company LLC ("PAC," which includes Klipsch Group, Inc. and 11 Trading Company LLC), Omega Research and Development, LLC ("Omega"), Voxx Automotive Corp., Audiovox Websales LLC, VSM-Rostra LLC (“VSM”), VOXX DEI LLC, and VOXX DEI Canada LLC (collectively, with VOXX DEI LLC, “DEI”), as well as majority-owned subsidiaries, EyeLock LLC ("EyeLock") and Onkyo Technology KK (“Onkyo”). We market our products under the Audiovox® brand name, other brand names and licensed brands, such as 808®, Acoustic Research®, Advent®, Avital®, Car Link®, Chapman®, Clifford®, Code-Alarm®, Crimestopper ™ ™ 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. Certain amounts in the prior years have been reclassified to conform to the current year presentation. Non-controlling interests represent the equity interests in our consolidated entities that we do not wholly own. Our financial statements reflect 100% of the revenues, expenses, assets, and liabilities (after elimination of intercompany transactions), although we do not own 100% of the equity interests of these consolidated entities. The Company follows FASB ASC 810-10-45-21 to report a non-controlling interest (other than non-controlling interests subject to a put option) in the consolidated balance sheets within the equity section, separately from the Company’s retained earnings. Non-controlling interest represents the non-controlling interest holders’ proportionate shares of the equity of the Company’s majority-owned subsidiary, EyeLock. Non-controlling interest is adjusted for the non-controlling interest holders’ proportionate shares of the earnings or losses and other comprehensive (loss) income, if any, and the non-controlling interest continues to be attributed their share of losses even if that attribution results in a deficit non-controlling interest balance. We classify securities with redemption features that are not solely within our control, such as our non-controlling interest that is subject to a put option, outside of permanent equity, specifically the non-controlling shareholder interest in Onkyo. This redeemable non-controlling interest, subject to put option, is recorded at the greater of the non-controlling interest balance determined pursuant to ASC 810-10, “Consolidation,” or the redemption value (which is based upon the greater of a specified formula). Changes in the non-controlling interest due to changes in the redemption amount are immediately recorded as equity transactions and our earnings per share calculation would be adjusted accordingly to treat any redemption adjustment similar to a dividend. 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. 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 $27,788 and $59,404 at February 28, 2022 and February 28, 2021, respectively. The Company places its cash and cash equivalents in institutions and funds of high credit quality. As many of our 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 $762 and $2,213 at February 28, 2022 and February 28, 2021, 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 28, 2021, 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 28, 2022: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 27,788 $ 27,788 $ — $ — Mutual funds 1,231 1,231 - - Liabilities: Derivatives designated for hedging $ 188 $ — $ 188 $ — Contingent consideration 6,435 - - 6,435 The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 59,404 $ 59,404 $ — $ — Mutual funds 1,777 1,777 - - Derivatives designated for hedging 412 - 412 - Liabilities: Derivatives designated for hedging $ 1,177 $ — $ 1,177 $ — 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. Contingent consideration is related to the Company’s Onkyo acquisition (see Note 2). The estimated fair value of the contingent consideration is classified within Level 3 and was determined using an income approach. Under this method, potential future purchases applicable to the contingent consideration were determined using internal estimates for growth. The potential future purchases applicable to the contingent consideration were multiplied by the appropriate percentage of payments due to OHEC, and the resulting contingent consideration amounts were adjusted for risk at the appropriate discount rate. The value of the contingent consideration was further discounted to reflect the credit risk of the Company. Changes in either the revenue growth rate assumptions or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income . 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 28, 2022 and February 28, 2021, 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 and an interest rate swap agreement. The forward foreign currency contracts are utilized to hedge a portion of its foreign currency inventory purchases. 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 28, 2022. The Company’s interest rate swap agreement hedges interest rate exposure related to the forecasted outstanding balance of its Florida Mortgage with monthly payments due through March 2026. The swap agreement locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the mortgage. 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 an asset or a liability based on the fair value of the instrument at the end of the period. Financial Statement Classification The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 28, 2022 and February 28, 2021 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 28, 2022 February 28, 2021 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 412 Accrued expenses and other current liabilities - (731 ) Interest rate swap Other long-term liabilities (188 ) (446 ) Total derivatives $ (188 ) $ (765 ) 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. For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in fair value of the hedging instrument included in the assessment of the hedge ineffectiveness is recorded to other comprehensive income (“OCI”). When the amounts recorded in OCI are reclassified to earnings, they are presented in the same income statement line item as the effect of the hedged item. During Fiscal 2022, the Company did not enter into any new forward foreign currency contracts. All forward foreign currency contracts entered into during Fiscal 2021 have been settled as of February 28, 2022 and were designated as cash flow hedges. The current outstanding notional value of the Company's interest rate swap at February 28, 2022 is $6,614. 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. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. During the years ended February 28, 2022 and February 28, 2021, 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 28, 2022, no contracts originally designated for hedge accounting were terminated. Activity related to cash flow hedges recorded during the twelve months ended February 28, 2022 and February 28, 2021 was as follows: February 28, 2022 February 28, 2021 Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income (Loss) Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 233 $ (307 ) $ (720 ) $ (238 ) Interest rate swaps $ 258 $ — $ 30 $ — f) Investment Securities As of February 28, 2022 and February 28, 2021, the Company had the following investments: February 28, 2022 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,231 Total Marketable Equity Securities 1,231 Total Investment Securities $ 1,231 February 28, 2021 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,777 Total Marketable Equity Securities 1,777 Total Investment Securities $ 1,777 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. 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. The cash proceeds received by Voxx was subject to a hold-back provision, which was not included in the calculation of the gain recorded on the sale of this investment in Fiscal 2018. In Fiscal 2020, the Company received a portion of the proceeds that were held back in the Fiscal 2018 transaction to sell the RxNetworks investment, as the hold-back provision expired, and certain 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. During the third quarter of Fiscal 2021, a final disbursement of all remaining proceeds related to the sale of the RxNetworks investment was received in the amount of $42, which was recorded as an investment gain for the year ended February 28, 2021. g) Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. 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 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. The majority of our revenue was recognized under the point in time approach for the years ended February 28, 2022, February 28, 2021, and February 29, 2020. 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 A ccrued 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. Under ASC Topic 606, we present a refund liability and a return asset within the Consolidated Balance Sheet. 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 28, 2022 and February 28, 2021. We warrant our products against certain defects in material and workmanship, when used as designed, for periods of time 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 original owner for the designated lifetime of the product, or for the life of the vehicle, 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. See Note 14 for contract asset and liability balances as of February 28, 2022 and February 28, 2021. h) 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 to 60 days and are stated at amounts due from customers, net of an allowance for credit losses. Accounts outstanding longer than the contracted payment terms are considered past due. Accounts receivable are comprised of the following: February 28, 2022 February 28, 2021 Trade accounts receivable $ 108,915 $ 108,862 Less: Allowance for credit losses 2,182 1,593 Allowance for cash discounts 1,108 1,104 $ 105,625 $ 106,165 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 28, 2022 . 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. On March 1, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which did not have a material impact on our financial statements. Our financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. We extend credit to customers based on pre-defined criteria and trade receivables are generally due within 30 to 60 days. The Company has three 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 from time to time. For those accounts receivables tendered to the banks 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 sold under the agreements, net of discounts, for the years ended February 28, 2022, February 28, 2021, and February 29, 2020 were approximately $89,400, $100,800 and $79,100, respectively. Fees incurred in connection with these agreements totaled approximately $260, $330 and $370 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively, and are recorded within Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income. During Fiscal 2020, the Company temporarily suspended two of its domestic supply chain finance arrangements, as the Company had sufficient cash on hand for operations, as well as due to rising fees charged on factored balances. During Fiscal 2021, the Company resumed its factoring activities under all of its 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. i) 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 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 of $2,912, $2,032 and $3,050 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. Inventories by major category are as follows: February 28, 2022 February 28, 2021 Raw materials $ 23,904 $ 21,228 Work in process 1,519 1,732 Finished goods 149,499 107,833 Inventory, net $ 174,922 $ 130,793 j) 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 28, 2022 February 28, 2021 Land $ 7,046 $ 7,068 Buildings 44,177 43,987 Property under finance lease 2,503 2,503 Furniture and fixtures 4,489 4,424 Machi |
Acquisitions
Acquisitions | 12 Months Ended |
Feb. 28, 2022 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions | 2) Acquisitions Onkyo On April 29, 2021, the Company’s subsidiary, PAC signed a Letter of Intent to acquire the home audio/video business of Onkyo Home Entertainment Corporation (“OHEC”), along with Sharp Corporation (“Sharp”) as PAC’s partner. On May 26, 2021, PAC and Sharp signed an asset purchase agreement (“APA”) to jointly acquire the home audio/video business of OHEC through a joint venture entity. The APA was approved by OHEC’s shareholders at its ordinary general meeting of shareholders on June 25, 2021 and on June 28, 2021, the Company announced that PAC had entered into a joint venture with Sharp in order to execute the transaction. PAC owns 77.2% of the joint venture and has 85.1% voting interest and Sharp owns 22.8% of the joint venture and has 14.9% voting interest. On September 8, 2021, the newly formed joint venture, Onkyo Technology KK (“Onkyo”), completed the transaction to acquire the home audio/video business of OHEC. The acquired assets consisted of intangible assets. The joint venture agreement between PAC and Sharp also contains a put/call arrangement, whereby Sharp has the right to put its interest in the joint venture back to Voxx and Voxx has the right to the call Sharp’s ownership interest in the joint venture at any time after the approval of Onkyo’s annual financial statements for the year ending February 28, 2025 at a purchase price based on a formula as defined in the joint venture agreement. The following summarizes the preliminary allocation of the purchase price based upon the fair value of the assets acquired at the date of acquisition: September 8, 2021 Measurement Period Adjustments September 8, 2021 (as adjusted) Purchase price: Cash paid $ 21,989 $ - $ 21,989 Assignment of notes and interest receivable 8,417 - 8,417 Fair value of contingent consideration 6,710 68 6,778 Total transaction consideration $ 37,116 $ 68 $ 37,184 Allocation: Intangible assets $ 26,929 $ (7,905 ) $ 19,024 Goodwill 10,187 7,973 18,160 Total assets acquired $ 37,116 $ 68 37,184 During the fourth quarter of Fiscal 2022, the Company recorded a net measurement period adjustment that increased goodwill by $ September 8, 2021 (as adjusted) Amortization Period (Years) Goodwill $ 18,160 N/A Tradenames 12,468 10 Technology 6,556 5 $ 37,184 Contingent consideration is payable to OHEC based upon the calculation of 2% of the total price of certain future product purchases, as defined in the APA, by PAC. Such payments will be made to OHEC in perpetuity. The fair value of the contingent consideration was determined using an income approach, by estimating potential payments based on projections of future inventory purchases multiplied by the 2% payment and discounting them back to their present values using a weighted average cost of capital. A second discount rate was applied to account for the Company’s credit risk to arrive at the present value of the payments. As there is no set term and the payments will be made in perpetuity, a one-stage Gordon Growth Model was used to account for expected payments made beyond the last year of projections. The preliminary fair value of the intangible assets and contingent consideration were estimated with the assistance of a third-party valuation expert. The purchase price allocation above is preliminary. We are in the process of refining the valuation of acquired assets, including goodwill, and expect to finalize the purchase price allocation no later than one year after the acquisition date, which is September 8, 2022. Finalization of the valuation during the measurement period could result in significant changes in the amounts recorded for the acquisition date fair value. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired, including identifiable intangible assets, all of which is deductible for tax purposes. Goodwill represents workforce and expected cash flow generation for the Onkyo business that does not qualify for separate recognition as intangible assets. The Company consolidates the financial results of Onkyo since the acquisition date for financial reporting purposes. The non-controlling interest has been classified as redeemable non-controlling interest outside of equity on the accompanying Consolidated Balance Sheet as the exercise of the put option is not within the Company’s control. The carrying value of the redeemable non-controlling interest of Onkyo cannot be less than the redemption amount, which is the amount the put option would be settled for if exercised. Adjustments to reconcile the carrying value to the redemption amount are recorded immediately to retained earnings. No adjustment was made to the carrying amount of the redeemable non-controlling interest at February 28, 2022 as the carrying amount was in excess of the redemption amount. The following table provides the rollforward of the redeemable non-controlling interest for the year ended February 28, 2022: Redeemable Non-controlling Interest Balance at February 28, 2021 $ - Initial investment by Sharp 2,069 Net loss attributable to non-controlling interest (1,483 ) Foreign currency translation (75 ) Balance at February 28, 2022 $ 511 The purpose of this acquisition was to expand the Company’s market share and product offerings within the premium audio industry. The joint venture owns the Onkyo and Integra brands and has the licensing rights to the Pioneer brands, and will market and sell a variety of products under the Onkyo, Integra, and Pioneer brands. Onkyo’s results of operations are included in the consolidated financial statements of Voxx in our Consumer Electronics segment from September 8, 2021, and represent approximately 0.8% of the Company’s net sales for the year ended February 28, 2022. Prior to the acquisition, PAC operated under a distribution agreement with OHEC through its 11 Trading Company subsidiary, selling Onkyo and Pioneer products to Voxx customers. No additional customer contracts were acquired in conjunction with the acquisition and 11TC continues to sell these products to the same pre-acquisition customer base. Historical financial statements for Onkyo prior to the acquisition were not available and it is impracticable for the Company to determine the impact the acquisition would have had on the Company’s revenue or net (loss) income had it been included in the consolidated results of the Company for the full year ended February 28, 2022, or the year ended February 28, 2021. Directed LLC and Directed Electronics Canada, Inc. On July 1, 2020, the Company completed the acquisition of certain assets and liabilities, which comprise the aftermarket vehicle remote start and security systems and connected car solutions (telematics) businesses of Directed LLC and Directed Electronics Canada Inc. (collectively, with Directed LLC, “Directed”) via an asset purchase agreement. The acquired assets included inventory, accounts receivable, certain fixed assets, IT systems, and intellectual property. The cash purchase price was $11,000. Net sales from the Company’s newly formed subsidiaries, VOXX DEI LLC and VOXX DEI Canada, Ltd. (collectively, with VOXX DEI LLC, “DEI”), included in our consolidated results for the years ended February 28, 2022 and February 28, 2021 represented approximately 10.4% and 8.4% of our consolidated net sales, respectively. DEI’s results of operations are included in the consolidated financial statements of Voxx in our Automotive Electronics segment. The purpose of this acquisition was to expand the Company’s market share within the automotive electronics industry. 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: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 956 8,010 Accounts receivable 5,173 357 5,530 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 (1,690 ) 1,600 Total assets acquired $ 28,393 $ (477 ) $ 27,916 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 (136 ) 1,270 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 (352 ) 848 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ (477 ) $ 16,916 Total purchase price $ 11,000 $ - $ 11,000 During Fiscal 2022 and Fiscal 2021, the Company recorded cumulative net measurement period adjustments that decreased goodwill by $1,690, as presented in the table above. The measurement period adjustment would have resulted in an insignificant decrease in amortization expense related to the customer relationships in the second quarter of Fiscal 2021. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets) and represents synergies expected. 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 cash purchase price of $16,500. Results of operations from the Company’s newly formed subsidiary, VSM-Rostra LLC (“VSM”), have been included in the consolidated financial statements of Voxx, in our Automotive Electronics segment, from the date of acquisition. Net sales from VSM included in our consolidated results represented 4.2% of our consolidated net sales for both of the years ended February 28, 2022 and February 28, 2021 and less than 1% for the year ended February 29, 2020. The purpose of this acquisition was to expand the Company’s product offerings and market share, as VSM is a leading developer, manufacturer, and distributor of automotive 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 Measurement Period Adjustments January 31, 2020 (as adjusted) Assets acquired: Inventory $ 6,982 (76 ) 6,906 Accounts receivable 3,415 (187 ) 3,228 Right of use assets 483 - 483 Other current assets 145 - 145 Property and equipment 714 - 714 Customer relationships 5,460 - 5,460 Trademarks 560 - 560 Patented technology 280 - 280 Goodwill 215 357 572 Other non-current assets 3 - 3 Total assets acquired $ 18,257 $ 94 $ 18,351 Liabilities assumed: Accounts payable 757 - 757 Accrued expenses 329 94 423 Lease liabilities 483 - 483 Warranty accrual 188 - 188 Total $ 1,757 $ 94 $ 1,851 Total purchase price $ 16,500 $ - $ 16,500 During Fiscal 2021, the Company recorded a cumulative net measurement period adjustment that increased goodwill by $357, as presented in the table above. The measurement period adjustment had no impact on the results of the previous periods. The Company made these measurement period adjustments to reflect facts and circumstances that existed as of the acquisition date and did not result from intervening events subsequent to such date. Goodwill was determined as the excess of the purchase price over the fair value of the assets acquired (including the identifiable intangible assets) and represents synergies expected . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Feb. 28, 2022 | |
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 August 29 , 202 1 , this promissory note was amended and restated to allow EyeLock LLC to borrow up to maximum of $ . Through March 1, 2019, interest on the outstanding principal of the loan accrued at 10 %. From March 1, 2019 forward, interest accrue s at 2.5 %. The amended and restated promissory note is due on December 31 , 202 2 . 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 $66,390 as of February 28, 2022. 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. On April 29, 2021, EyeLock LLC entered into a three-year two-year two-year 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 Sheets as of February 28, 2022 and February 28, 2021: February 28, 2022 February 28, 2021 Assets Current assets: Cash and cash equivalents $ 25 $ - Accounts receivable, net 47 167 Inventory, net 2,028 2,245 Prepaid expenses and other current assets 245 30 Total current assets 2,345 2,442 Property, plant and equipment, net 39 39 Intangible assets, net 2,057 2,329 Other assets 59 60 Total assets $ 4,500 $ 4,870 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,023 $ 1,396 Interest payable to VOXX 13,099 11,453 Accrued expenses and other current liabilities 766 824 Due to VOXX 66,390 61,072 Total current liabilities 81,278 74,745 Other long-term liabilities 3,651 1,200 Total liabilities 84,929 75,945 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (121,845 ) (112,491 ) Total partners' deficit (80,429 ) (71,075 ) Total liabilities and partners' deficit $ 4,500 $ 4,870 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 28, 2022, February 28, 2021, and February 29, 2020: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Net sales $ 882 $ 836 $ 476 Cost of sales 694 1,025 826 Gross profit 188 (189 ) (350 ) Operating expenses: Selling 653 603 710 General and administrative 1,410 1,785 4,625 Engineering and technical support 5,817 4,674 5,144 Intangible asset impairment charges (Note 1(k)) - - 27,402 Total operating expenses 7,880 7,062 37,881 Operating loss (7,692 ) (7,251 ) (38,231 ) Other (expense) income: Interest and bank charges (1,662 ) (1,475 ) (1,279 ) Other, net — — 81 Total other expense, net (1,662 ) (1,475 ) (1,198 ) Loss before income taxes (9,354 ) (8,726 ) (39,429 ) Income tax expense — — — Net loss $ (9,354 ) $ (8,726 ) $ (39,429 ) |
Receivables from Vendors
Receivables from Vendors | 12 Months Ended |
Feb. 28, 2022 | |
Receivables From Vendors [Abstract] | |
Receivables from Vendors | 4) Receivables from Vendors The Company has recorded receivables from vendors in the amount of $363 and $277 as of February 28, 2022 and February 28, 2021, respectively. Receivables from vendors primarily represent prepayments on product shipments and product reimbursements. |
Equity Investment
Equity Investment | 12 Months Ended |
Feb. 28, 2022 | |
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 2022, the Company evaluated this equity investment and concluded that ASA is not a variable interest entity. ASA’s fiscal year end is November 30, 2021; however, the results of ASA as of and through February 28, 2022 have been recorded in the consolidated financial statements. The following presents summary financial information of ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. February 28, 2022 February 28, 2021 Current assets $ 46,202 $ 49,956 Non-current assets 7,382 4,757 Liabilities 10,888 8,179 Members' equity 42,696 46,534 Twelve Months Ended Twelve Months Ended Twelve Months Ended February 28, 2022 February 28, 2021 February 29, 2020 Net sales $ 114,825 $ 95,866 $ 98,632 Gross profit 27,517 24,124 21,342 Operating income 15,695 12,938 10,014 Net income 15,780 14,700 10,348 The Company's share of income from ASA for the years ended February 28, 2022, February 28, 2021 and February 29, 2020 was $7,890, $7,350 and $5,174, respectively. In addition, the Company received cash distributions from ASA totaling $9,809, $6,009 and $5,136 during the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. Undistributed earnings from equity investments amounted to $16,022 and $17,941 at February 28, 2022 and February 28, 2021, respectively. Net sales transactions between the Company and ASA were $315, $260 and $501 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. Accounts receivable balances from ASA were $68 and $37 as of February 28, 2022 and February 28, 2021, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022 February 28, 2021 Commissions $ 934 $ 971 Employee compensation 17,082 18,283 Professional fees and accrued settlements 1,620 922 Future warranty 4,470 4,403 Refund liability 5,469 5,145 Freight and duty 10,342 11,134 Royalties, advertising and other 14,742 12,534 Total accrued expenses and other current liabilities $ 54,659 $ 53,392 Included in royalties, advertising, and other in the table above as of February 28, 2022 and February 28, 2021 are accrued environmental charges of $337 and $394, respectively, related to soil contamination at one of the Company's operating facilities in Germany that is in the process of being remediated at February 28, 2022. Charges initially accrued during the year ended February 28, 2019 were estimated based on assessments asserted by a local government authority and estimates provided by a third-party engineering firm. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 7) Financing Arrangements The Company has the following financing arrangements: February 28, 2022 February 28, 2021 Domestic credit facility (a) $ — $ — Florida mortgage (b) 6,614 7,114 Euro asset-based lending obligation - VOXX Germany (c) 1,906 — Shareholder loan payable to Sharp (d) 4,718 — Total debt 13,238 7,114 Less: current portion of long-term debt 2,406 500 Long-term debt before debt issuance costs 10,832 6,614 Less: debt issuance costs 1,046 652 Total long-term debt $ 9,786 $ 5,962 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. The Credit Facility also includes a $30,000 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)). As of February 28, 2022, there was no balance outstanding under the revolving credit facility. The remaining availability under the revolving credit line of the Credit Facility was $127,486 as of February 28, 2022. Any amounts outstanding under the Credit Facility will mature and become immediately due on April 19, 2026; however, the Credit Facility 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. Commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the Credit Facility. 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% (2.00% at February 28, 2022). 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 and shall not be lower than 1.75% (4.00% at February 28, 2022). The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for all revolver usage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event. Provided the Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% 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 Credit Facility, the lenders would have the right to assume dominion and control over the Company's cash. As of February 28, 2022, the Company was not in a Compliance Period. The obligations under the Credit Facility 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. The Company has deferred financing costs related to the Credit Facility and previous amendments and modifications of the Credit Facility. In conjunction with the amendment to its Credit Facility on April 19, 2021, the Company incurred additional financing fees of $667 that will be amortized over the remaining term of the facility. The Company accounted for the April 2021 amendment to the Credit Facility as a modification of debt. 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 remaining term of the Credit Facility. The Company amortized $241 during the year ended February 28, 2022 and $539 during both of the years ended February 28, 2021 and February 29, 2020. The net unamortized balance of these deferred financing costs at February 28, 2022 is $922. Charges incurred on the unused portion of the Credit Facility and its predecessor revolving credit facility during the years ended February 28, 2022, February 28, 2021 and February 29, 2020 totaled $739, $504 and $503, 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% (1.71% at February 28, 2022) 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 and amended in April 2021. The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for the Florida Mortgage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event 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 28, 2022, February 28, 2021, and February 29, 2020. The net unamortized balance of these deferred financing costs at February 28, 2022 is $124. 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, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 28, 2022). d ) Shareholder Loan Payable to Sharp Asset In conjunction with the capitalization and funding of the Company’s Onkyo joint venture with its partner Sharp, which was created in order to execute the acquisition of the home audio/video business of OHEC on September 8, 2021 (see Note 2), Onkyo entered into a loan agreement with the shareholders of the joint venture, PAC and Sharp. The loan balance outstanding at February 28, 2022 represents the portion of the loan payable to Sharp. The loan balance due to PAC eliminates in consolidation. All amounts outstanding under the loan will mature and become payable ten years from the execution date of the acquisition, which is September 8, 2031. The loan may be prepaid subject the approval of the board of directors of the joint venture and must be repaid if either the put or call option is exercised in accordance with the joint venture agreement. The rate of interest for the shareholder loan is 2.5% and the loan is secured by a second priority lien on and secured interest in all assets of Onkyo. The following is a maturity table for debt and bank obligations outstanding at February 28, 2022 for each of the following fiscal years: 2023 $ 2,406 2024 500 2025 500 2026 500 2027 500 Thereafter 8,832 Total $ 13,238 The weighted-average interest rate on short-term debt was 2.66% for Fiscal 2022 and 3.48% for Fiscal 2021. Interest expense related to the Company's financing arrangements for the years ended February 28, 2022, February 28, 2021 and February 29, 2020 was $550, $825 and $799, respectively, of which $326 was related to the Credit Facility for the year ended February 28, 2021. For the years ended February 28, 2022 and February 29, 2020, 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. 28, 2022 | |
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 28, 2022 February 28, 2021 February 29, 2020 Domestic Operations $ (26,665 ) $ 24,485 $ (47,249 ) Foreign Operations 826 3,153 6,309 $ (25,839 ) $ 27,638 $ (40,940 ) The provision (benefit) for income taxes is comprised of the following: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Current provision (benefit) Federal $ 20 $ (10 ) $ (26 ) State 804 1,172 395 Foreign 2,148 496 1,824 Total current provision $ 2,972 $ 1,658 $ 2,193 Deferred (benefit) provision Federal $ (2,300 ) $ 3,362 $ (1,850 ) State 1,010 (84 ) (564 ) Foreign (56 ) (664 ) 1,103 Total deferred (benefit) provision $ (1,346 ) $ 2,614 $ (1,311 ) Total (benefit) provision Federal $ (2,280 ) $ 3,352 $ (1,876 ) State 1,814 1,088 (169 ) Foreign 2,092 (168 ) 2,927 Total provision $ 1,626 $ 4,272 $ 882 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 28, 2022 February 28, 2021 February 29, 2020 Tax benefit at Federal statutory rates $ (5,426 ) 21.0 % $ 5,804 21.0 % $ (8,598 ) 21.0 % State income taxes, net of Federal benefit (282 ) 1.1 983 3.5 (611 ) 1.5 Change in valuation allowance 7,214 (28.0 ) (3,365 ) (12.2 ) 4,218 (10.3 ) Change in tax reserves (227 ) 0.9 (311 ) (1.1 ) (52 ) - Non-controlling interest 766 (3.0 ) 714 2.6 3,229 (7.9 ) U.S. effects of foreign operations 787 (3.1 ) 412 1.5 1,403 (3.4 ) Permanent differences and other 581 (2.2 ) (192 ) (0.7 ) 1,170 (2.9 ) U.S. GILTI inclusion 232 (0.9 ) 521 1.9 710 (1.7 ) Change in tax rate 105 (0.4 ) 102 0.4 (151 ) 0.4 Research & development credits 243 (0.9 ) - - - - Foreign derived intangible income deduction (975 ) 3.8 - - - - Foreign tax credits (1,392 ) 5.4 (396 ) (1.4 ) (436 ) 1.1 Effective tax rate $ 1,626 (6.3 )% $ 4,272 15.5 % $ 882 (2.2 )% The U.S. effects of foreign operations include differences in the statutory tax rates of the foreign countries as compared to the statutory tax rate in the U.S. Permanent differences and other include nondeductible expenses, Section 162(m) limitation on executive compensation, and other adjustments. 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 28, 2022 February 28, 2021 Deferred tax assets: Accounts receivable $ 301 $ 271 Inventory 4,356 3,270 Property, plant and equipment 1,903 1,480 Interim arbitration award 9,515 — Operating lease 999 1,184 Accruals and reserves 5,946 5,303 Deferred compensation 297 433 Warranty reserves 692 752 Unrealized gains and losses 4,219 4,373 Partnership investments 3,399 3,661 Net operating losses 6,278 6,104 Foreign tax credits 2,254 3,805 Other tax credits 5,220 5,433 Deferred tax assets before valuation allowance 45,379 36,069 Less: valuation allowance (30,059 ) (22,845 ) Total deferred tax assets 15,320 13,224 Deferred tax liabilities: Intangible assets (17,464 ) (16,948 ) Prepaid expenses (2,079 ) (1,588 ) Operating lease (977 ) (1,152 ) Deferred financing fees (60 ) (82 ) Total deferred tax liabilities (20,580 ) (19,770 ) Net deferred tax liability $ (5,260 ) $ (6,546 ) 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. In addition, the Company maintains a valuation allowance against deferred tax assets in certain foreign jurisdictions. The Company's valuation allowance increased by $7,214 during the year ended February 28, 2022. 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 during Fiscal 2018, 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 28, 2022, the Company has capital loss carryforwards of approximately $14,056 which expire in 2024 which are only available to offset capital gain income. The Company has foreign tax credits of $1,366 which expire in tax years 2025 through 2026. The Company has federal research and development tax credits of $3,537 which expire in tax years 2035 through 2041. 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 2041. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: 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 the prior years (2,107 ) Other (139 ) Balance at February 29, 2020 $ 7,235 Additions based on tax positions taken in the current and prior years 3 Settlements — Decreases based on tax positions taken in the prior years (490 ) Other 112 Balance at February 28, 2021 $ 6,860 Additions based on tax positions taken in the current and prior years 140 Settlements — Decreases based on tax positions taken in prior years (563 ) Other (172 ) Balance at February 28, 2022 $ 6,265 Of the amounts reflected in the table above at February 28, 2022, $6,265, if recognized, would reduce our effective tax rate. If recognized, $5,380 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 $1,083. 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 28, 2022, February 28, 2021 and February 29, 2020, interest and penalties on unrecognized tax benefits were $(28), $4 and $15, respectively. The balance as of February 28, 2022 and February 28, 2021 was $198 and $226, respectively. It is reasonably possible that unrecognized tax benefits will decrease by approximately $200 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. 2017 Netherlands 2016 Germany 2013 |
Capital Structure
Capital Structure | 12 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Capital Structure | 9) Capital Structure The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 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 21,614,629 21,666,976 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 2,862,218 and 2,749,218 shares at February 28, 2022 and February 28, 2021, respectively. The cost basis for subsequent sales of treasury shares is determined using an average cost method. In Fiscal 2020, 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 28, 2022, the Company repurchased 113,000 shares of Class A Common Stock for an aggregate cost of $1,220. During the year ended February 29, 2020, the Company repurchased 581,124 shares of Class A Common Stock for an aggregate cost of $2,742. During the year ended February 28, 2021, the Company repurchased no shares. As of February 28, 2022, 2,305,876 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. 28, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Other Stock and Retirement Plans | 10) Other Stock and Retirement Plans a) Supplemental Executive Retirement Plan Subject to certain performance criteria, service requirements and age restrictions, employees who participate in the SERP will receive restricted stock awards pursuant to the 2014 Plan. 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 28, 2022, approximately 1,147,000 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 28, 2022, February 28, 2021 and February 29, 2020. 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 28, 2022 , February 28, 2021 and February 29, 2020 , the Company contributed, net of forfeitures, $689 , $555 and $586 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 28, 2022, February 28, 2021 and February 29, 2020. 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 to be made at the Company’s discretion. No matching contributions were made for the years ended February 28, 2022, February 28, 2021 and February 29, 2020. 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 $1,231 and $1,777 at February 28, 2022 and February 28, 2021, 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 non-current 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. 28, 2022 | |
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 28, 2022. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the prese n t 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 9 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. Refer to the Consolidated Statements of Cash Flows for supplemental cash flow information related to leases. 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 28, 2022 were as follows: February 28, 2022 February 28, 2021 February 29, 2020 Operating lease cost (a) (c) $ 1,383 $ 1,169 $ 880 Finance lease cost: Amortization of right of use assets (a) 403 596 684 Interest on lease liabilities (b) 11 28 47 Total finance lease cost $ 414 $ 624 $ 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 balance sheet information related to leases is as follows: February 28, 2022 February 28, 2021 Operating Leases Operating lease, right of use assets $ 4,464 $ 4,572 Total operating lease right of use assets $ 4,464 $ 4,572 Accrued expenses and other current liabilities $ 1,255 $ 1,119 Operating lease liabilities, less current portion 3,298 3,582 Total operating lease liabilities $ 4,553 $ 4,701 Finance Leases Property, plant and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (2,208 ) (1,805 ) Total finance lease right of use assets $ 295 $ 698 Accrued expenses and other current liabilities $ 224 $ 418 Finance lease liabilities, less current portion 78 302 Total finance lease liabilities $ 302 $ 720 Weighted Average Remaining Lease Term Operating leases 5.5 years 6.0 years Finance leases 1.3 years 1.8 years Weighted Average Discount Rate Operating leases 4.01 % 4.49 % Finance leases 3.87 % 3.87 % At February 28, 2022, maturities of lease liabilities for each of the succeeding years were as follows: Operating Leases Finance Leases 2022 $ 1,390 $ 228 2023 1,108 79 2024 638 — 2025 457 — 2026 326 — Thereafter 1,086 — Total lease payments 5,005 307 Less imputed interest 452 5 Total $ 4,553 $ 302 As of February 28, 2022, the Company has not entered into any lease agreements that have not yet commenced. 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 28, 2022. Rental income earned by the Company for the years ended February 28, 2022, February 28, 2021, and February 29, 2020 was $678, $739, and $692, respectively, which is recorded within Other income (expense). |
Financial Instruments
Financial Instruments | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022 . Standby letters of credit amounted to $ 50 at February 28, 2022 . 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 28, 2022, the Company had unconditional purchase obligations for inventory commitments of $174,274. 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 February 28, 2022 and February 28, 2021, the Company's five largest customer balances accounted for approximately 24% and 25% of accounts receivable, respectively. No single customer accounted for more than 10% of net sales during the years ended February 28, 2022 or February 29, 2020. One customer in the Company’s Consumer Electronics segment accounted for 12% of the Company’s total consolidated net sales during the year ended February 28, 2021. The Company's five largest customers represented 21%, 30%, and 24% of net sales during the years ended February 28, 2022, February 28, 2021, and February 29, 2020, 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. 28, 2022 | |
Segment Reporting [Abstract] | |
Financial and Product Information About Foreign and Domestic Operations | 13) Financial and Product Information About Foreign and Domestic Operations Segments The Company classifies its operations in the following three reportable segments: Automotive Electronics, Consumer Electronics, and Biometrics. 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 of each segment. Certain costs and royalty income are not allocated to the segments and are reported as Corporate/Eliminations. Costs not allocated to the segments include professional fees, public relations costs, acquisition costs and costs associated with executive and corporate management departments , including salaries, benefits, depreciation, rent and insurance. 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 for each of the Company's segments are presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Fiscal Year Ended February 28, 2022 Net sales $ 200,594 $ 433,925 $ 882 $ 519 $ 635,920 Equity in income of equity investees 7,890 — — — 7,890 Interest expense and bank charges 1,510 7,827 1,662 (8,467 ) 2,532 Depreciation and amortization expense 3,049 4,957 297 4,095 12,398 Income (loss) before income taxes (a) 8,471 28,645 (9,354 ) (53,601 ) (25,839 ) Fiscal Year Ended February 28, 2021 Net sales $ 163,903 $ 398,263 $ 836 $ 603 $ 563,605 Equity in income of equity investees 7,350 — — — 7,350 Interest expense and bank charges 1,540 8,537 1,475 (8,573 ) 2,979 Depreciation and amortization expense 2,881 3,856 322 3,974 11,033 Income (loss) before income taxes (b) 9,608 38,939 (8,726 ) (12,183 ) 27,638 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 9,482 1,279 (8,222 ) 2,975 Depreciation and amortization expense 878 4,390 3,136 3,994 12,398 (Loss) income before income taxes (c) (724 ) 9,385 (39,241 ) (10,360 ) (40,940 ) (a) Included within Income (loss) before income taxes within Corporate/Eliminations for the year ended February 28, 2022 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 15). (b) Included within Income (loss) before income taxes for the year ended February 28, 2021 is an intangible asset impairment charge of $1,300 within the Consumer Electronics segment (see Note 1(k)). (c) Included within (Loss) income before income 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). Geographic net sales information 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 28, 2022 Net sales $ 506,226 $ 97,396 $ 32,298 $ 635,920 Long-lived assets 44,751 3,422 1,621 49,794 Fiscal Year Ended February 29, 2021 Net sales $ 477,608 $ 82,134 $ 3,863 $ 563,605 Long-lived assets 46,614 3,569 1,843 52,026 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 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022, February 28, 2021 and February 29, 2020. Year Ended February 28, Year Ended February 28, Year Ended February 29, 2022 2021 2020 Automotive Electronics Segment OEM Products $ 65,017 $ 46,170 $ 49,673 Aftermarket Products 135,577 117,733 64,481 Total Automotive Electronics Segment 200,594 163,903 114,154 Consumer Electronics Segment Premium Audio Products 343,991 299,908 170,762 Other Consumer Electronic Products 89,934 98,355 108,913 Total Consumer Electronics Segment 433,925 398,263 279,675 Biometrics Segment Biometric Products 882 836 461 Total Biometrics Segment 882 836 461 Corporate/Eliminations 519 603 599 Total Net Sales $ 635,920 $ 563,605 $ 394,889 As of February 28, 2022 and February 28, 2021, the balance of the Company's return asset was $2,619 and $2,404, respectively, and the balance of the refund liability was $5,469 and $5,145, 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 current and non-current contract liability balances totaling $5,412 at February 28, 2022 related to telematic subscription services for the Company’s DEI subsidiary established in conjunction with the Company’s acquisition in July 2020 (see Note 2). The following table provides a reconciliation of the Company’s contract liabilities as of February 28, 2022: Balance at February 28, 2021 $ 5,265 Subscription payments received 7,615 Revenue recognized (7,468 ) Balance at February 28, 2022 $ 5,412 The Company had no contract asset balances at February 28, 2022 or February 28, 2021. |
Contingencies
Contingencies | 12 Months Ended |
Feb. 28, 2022 | |
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 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. In March 2007, the Company entered into a contract with Seaguard Electronics, LLC (“Seaguard”) relating to the Company’s purchase from Seaguard of a stolen vehicle recovery product and back-end services. In August 2018, Seaguard filed a demand for arbitration against the Company with the American Arbitration Association (“AAA”) alleging claims for breach of contract and patent infringement. Seaguard originally sought damages of approximately $10,000 and on the seventh day of an eight-day fact witness portion of the arbitration in June 2021, amended its damages demand to $40,000, which was effected by the service of Claimant’s notice dated July 14, 2021. On November 29, 2021, the Arbitrator issued an interim award (the “Interim Award”) with Seaguard prevailing on its breach of contract claim. The Company’s affirmative defenses relating to those claims, however, were denied in their entirety. Seaguard was awarded damages in the amount of $39,444 against the Company. On March 3, 2022, the Arbitrator issued a Partial Final Award on Bifurcated Issue in the amount of $39,444, plus $798 for its attorneys’ fees and costs. On March 11, 2022, the Arbitrator fixed the schedule of the patent portion of the bifurcated arbitration, with a trial date set for October 16, 2023. The Company has put its suppliers on notice of its indemnification rights with respect to the alleged infringing products. On March 14, 2022, Seaguard filed a Petition in the United States District Court, Central District of California, Western Division, to confirm the Partial Final Award. On April 25, 2022, the Company filed its opposition to Seaguard’s Petition to Confirm and a Counter-Petition to Vacate the Partial Final Award. A hearing on the Petition and Counter-Petition is presently scheduled for June 3, 2022. At February 28, 2022, the Company has recorded a charge of $39,444 within Other (expense) income in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. No accrual or reserve was included in the Company’s issued financial statements prior to the quarter ended November 30, 2021, based on an assessment that an award of damages in the arbitration proceeding would not be material and that the amount as determined by the Arbitrator’s award was not probable. The Company made its accrual determination in accordance with reports and evaluations from its damages expert, as well as from the guidance and opinion letters received from the Company’s trial attorneys. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 28, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16) Subsequent Events |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 28, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VOXX INTERNATIONAL CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Years ended February 28, 2022, February 28, 2021 and February 29, 2020 (In thousands) Column A Column B Column C Column D 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 28, 2022 Allowance for credit losses $ 1,593 $ 863 $ — $ 274 $ 2,182 Cash discount allowances 1,104 6,320 — 6,316 1,108 Sales return reserve 5,145 9,571 — 9,247 5,469 Year ended February 28, 2021 Allowance for credit losses $ 1,954 $ (271 ) $ — $ 90 $ 1,593 Cash discount allowances 751 6,565 — 6,212 1,104 Sales return reserve 3,779 16,550 — 15,184 5,145 Year ended February 29, 2020 Allowance for credit losses $ 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 (a) For the allowance for credit losses and cash discount allowances, deductions represent currency effects, chargebacks and payments made or credits issued to customers. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2022 | |
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 nineteen 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"), Premium Audio Company LLC ("PAC," which includes Klipsch Group, Inc. and 11 Trading Company LLC), Omega Research and Development, LLC ("Omega"), Voxx Automotive Corp., Audiovox Websales LLC, VSM-Rostra LLC (“VSM”), VOXX DEI LLC, and VOXX DEI Canada LLC (collectively, with VOXX DEI LLC, “DEI”), as well as majority-owned subsidiaries, EyeLock LLC ("EyeLock") and Onkyo Technology KK (“Onkyo”). We market our products under the Audiovox® brand name, other brand names and licensed brands, such as 808®, Acoustic Research®, Advent®, Avital®, Car Link®, Chapman®, Clifford®, Code-Alarm®, Crimestopper ™ ™ 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. Certain amounts in the prior years have been reclassified to conform to the current year presentation. Non-controlling interests represent the equity interests in our consolidated entities that we do not wholly own. Our financial statements reflect 100% of the revenues, expenses, assets, and liabilities (after elimination of intercompany transactions), although we do not own 100% of the equity interests of these consolidated entities. The Company follows FASB ASC 810-10-45-21 to report a non-controlling interest (other than non-controlling interests subject to a put option) in the consolidated balance sheets within the equity section, separately from the Company’s retained earnings. Non-controlling interest represents the non-controlling interest holders’ proportionate shares of the equity of the Company’s majority-owned subsidiary, EyeLock. Non-controlling interest is adjusted for the non-controlling interest holders’ proportionate shares of the earnings or losses and other comprehensive (loss) income, if any, and the non-controlling interest continues to be attributed their share of losses even if that attribution results in a deficit non-controlling interest balance. We classify securities with redemption features that are not solely within our control, such as our non-controlling interest that is subject to a put option, outside of permanent equity, specifically the non-controlling shareholder interest in Onkyo. This redeemable non-controlling interest, subject to put option, is recorded at the greater of the non-controlling interest balance determined pursuant to ASC 810-10, “Consolidation,” or the redemption value (which is based upon the greater of a specified formula). Changes in the non-controlling interest due to changes in the redemption amount are immediately recorded as equity transactions and our earnings per share calculation would be adjusted accordingly to treat any redemption adjustment similar to a dividend. 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. |
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 $27,788 and $59,404 at February 28, 2022 and February 28, 2021, respectively. The Company places its cash and cash equivalents in institutions and funds of high credit quality. As many of our 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 $762 and $2,213 at February 28, 2022 and February 28, 2021, 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 28, 2021, 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 28, 2022: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 27,788 $ 27,788 $ — $ — Mutual funds 1,231 1,231 - - Liabilities: Derivatives designated for hedging $ 188 $ — $ 188 $ — Contingent consideration 6,435 - - 6,435 The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 59,404 $ 59,404 $ — $ — Mutual funds 1,777 1,777 - - Derivatives designated for hedging 412 - 412 - Liabilities: Derivatives designated for hedging $ 1,177 $ — $ 1,177 $ — 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. Contingent consideration is related to the Company’s Onkyo acquisition (see Note 2). The estimated fair value of the contingent consideration is classified within Level 3 and was determined using an income approach. Under this method, potential future purchases applicable to the contingent consideration were determined using internal estimates for growth. The potential future purchases applicable to the contingent consideration were multiplied by the appropriate percentage of payments due to OHEC, and the resulting contingent consideration amounts were adjusted for risk at the appropriate discount rate. The value of the contingent consideration was further discounted to reflect the credit risk of the Company. Changes in either the revenue growth rate assumptions or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income . 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 28, 2022 and February 28, 2021, 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 and an interest rate swap agreement. The forward foreign currency contracts are utilized to hedge a portion of its foreign currency inventory purchases. 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 28, 2022. The Company’s interest rate swap agreement hedges interest rate exposure related to the forecasted outstanding balance of its Florida Mortgage with monthly payments due through March 2026. The swap agreement locks the interest rate on the debt at 3.48% (inclusive of credit spread) through the maturity date of the mortgage. 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 an asset or a liability based on the fair value of the instrument at the end of the period. Financial Statement Classification The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 28, 2022 and February 28, 2021 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 28, 2022 February 28, 2021 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 412 Accrued expenses and other current liabilities - (731 ) Interest rate swap Other long-term liabilities (188 ) (446 ) Total derivatives $ (188 ) $ (765 ) 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. For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in fair value of the hedging instrument included in the assessment of the hedge ineffectiveness is recorded to other comprehensive income (“OCI”). When the amounts recorded in OCI are reclassified to earnings, they are presented in the same income statement line item as the effect of the hedged item. During Fiscal 2022, the Company did not enter into any new forward foreign currency contracts. All forward foreign currency contracts entered into during Fiscal 2021 have been settled as of February 28, 2022 and were designated as cash flow hedges. The current outstanding notional value of the Company's interest rate swap at February 28, 2022 is $6,614. 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. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. During the years ended February 28, 2022 and February 28, 2021, 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 28, 2022, no contracts originally designated for hedge accounting were terminated. Activity related to cash flow hedges recorded during the twelve months ended February 28, 2022 and February 28, 2021 was as follows: February 28, 2022 February 28, 2021 Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income (Loss) Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 233 $ (307 ) $ (720 ) $ (238 ) Interest rate swaps $ 258 $ — $ 30 $ — |
Investment Securities | f) Investment Securities As of February 28, 2022 and February 28, 2021, the Company had the following investments: February 28, 2022 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,231 Total Marketable Equity Securities 1,231 Total Investment Securities $ 1,231 February 28, 2021 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,777 Total Marketable Equity Securities 1,777 Total Investment Securities $ 1,777 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. 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. The cash proceeds received by Voxx was subject to a hold-back provision, which was not included in the calculation of the gain recorded on the sale of this investment in Fiscal 2018. In Fiscal 2020, the Company received a portion of the proceeds that were held back in the Fiscal 2018 transaction to sell the RxNetworks investment, as the hold-back provision expired, and certain 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. During the third quarter of Fiscal 2021, a final disbursement of all remaining proceeds related to the sale of the RxNetworks investment was received in the amount of $42, which was recorded as an investment gain for the year ended February 28, 2021. |
Revenue Recognition | g) Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. 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 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. The majority of our revenue was recognized under the point in time approach for the years ended February 28, 2022, February 28, 2021, and February 29, 2020. 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 A ccrued 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. Under ASC Topic 606, we present a refund liability and a return asset within the Consolidated Balance Sheet. 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 28, 2022 and February 28, 2021. We warrant our products against certain defects in material and workmanship, when used as designed, for periods of time 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 original owner for the designated lifetime of the product, or for the life of the vehicle, 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. See Note 14 for contract asset and liability balances as of February 28, 2022 and February 28, 2021. |
Accounts Receivable | h) 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 to 60 days and are stated at amounts due from customers, net of an allowance for credit losses. Accounts outstanding longer than the contracted payment terms are considered past due. Accounts receivable are comprised of the following: February 28, 2022 February 28, 2021 Trade accounts receivable $ 108,915 $ 108,862 Less: Allowance for credit losses 2,182 1,593 Allowance for cash discounts 1,108 1,104 $ 105,625 $ 106,165 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 28, 2022 . 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. On March 1, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which did not have a material impact on our financial statements. Our financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. We extend credit to customers based on pre-defined criteria and trade receivables are generally due within 30 to 60 days. The Company has three 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 from time to time. For those accounts receivables tendered to the banks 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 sold under the agreements, net of discounts, for the years ended February 28, 2022, February 28, 2021, and February 29, 2020 were approximately $89,400, $100,800 and $79,100, respectively. Fees incurred in connection with these agreements totaled approximately $260, $330 and $370 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively, and are recorded within Interest and bank charges in the Consolidated Statements of Operations and Comprehensive (Loss) Income. During Fiscal 2020, the Company temporarily suspended two of its domestic supply chain finance arrangements, as the Company had sufficient cash on hand for operations, as well as due to rising fees charged on factored balances. During Fiscal 2021, the Company resumed its factoring activities under all of its 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 | i) 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 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 of $2,912, $2,032 and $3,050 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. Inventories by major category are as follows: February 28, 2022 February 28, 2021 Raw materials $ 23,904 $ 21,228 Work in process 1,519 1,732 Finished goods 149,499 107,833 Inventory, net $ 174,922 $ 130,793 |
Property, Plant and Equipment | j) 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 28, 2022 February 28, 2021 Land $ 7,046 $ 7,068 Buildings 44,177 43,987 Property under finance lease 2,503 2,503 Furniture and fixtures 4,489 4,424 Machinery and equipment 10,287 9,785 Construction-in-progress 3,341 1,587 Computer hardware and software 41,962 41,178 Automobiles 710 729 Leasehold improvements 2,718 2,688 117,233 113,949 Less accumulated depreciation and amortization 67,439 61,923 $ 49,794 $ 52,026 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. Depreciation and amortization of property, plant and equipment amounted to $5,890, $5,607 and $5,343 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. Included in depreciation and amortization expense is amortization of computer software costs of $1,547, $1,252 and $1,474 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, 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. |
Goodwill and Intangible Assets | k) Goodwill and Intangible Assets Goodwill and other intangible assets consist of the excess over the fair value of net 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 the underlying net assets acquired . We use various valuation techniques to determine the fair value of the assets acquired , with the primary techniques being the d iscounted f uture c ash f low m ethod , relief from royalty method , and the multi-period excess earnings methods, which use significant unobservable inputs, or Level 3 inputs, as defined by the f air 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 lives. 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 and indefinite-lived intangible assets are tested annually for impairment on the last day of the Company’s fiscal year, and at any time upon occurrence of certain events or changes in circumstances Voxx's reporting units that carry goodwill are Invision, Rosen, VSM, DEI, Klipsch, and Onkyo. 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, VSM, and DEI reporting units are located within the Automotive Electronic s segment and the Klipsch and Onkyo reporting unit s are located within the Consumer Electronic s segment. The Company performed its annual impairment test for goodwill as of February 28, 2022. The Company performed its annual impairment test for one of its reporting units qualitatively and assessed whether it was more likely than not that the respective fair value of this reporting unit was less than its carrying amount. The Company determined that impairment of goodwill was not likely in this reporting unit and thus was not required to perform a quantitative analysis for this reporting unit. For the remaining reporting units, the Company performed a quantitative analysis and concluded that the fair values of the reporting units were in excess of their carrying value, with no impairment indicated as of February 28, 2022. The discount rates (developed using a weighted average cost of capital analysis) used in the goodwill quantitative test ranged from 14.6% to 30.0%. No goodwill impairment charges were recorded during the years ended February 28, 2022, February 28, 2021 and February 29, 2020. The goodwill balances of Invision, Klipsch, Rosen, VSM, DEI, and Onkyo at February 28, 2022 are $7,372, $46,533, $880, $572, $1,600, and $17,363, respectively. The Company also tested its indefinite-lived intangible assets as of February 28, 2022 as part of its annual impairment testing. The Company performed its annual impairment test for one of its indefinite-lived intangibles qualitatively and assessed whether it was more likely than not that the respective fair value of this indefinite-lived intangible asset was less than its carrying amount. The Company determined that impairment of this indefinite-lived intangible was not likely, and thus was not required to perform a quantitative analysis for this indefinite-lived intangible asset. For the remaining indefinite-lived assets, the Company performed a quantitative analysis and concluded that none of these indefinite-lived assets were impaired for the year ended February 28, 2022. To perform these quantitative impairment analyses, the respective fair values were estimated using a relief-from-royalty method, applying royalty rates ranging from 1.5% to 6.5% 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 13.0% to 15.3% were appropriately developed using a weighted average cost of capital analysis. The long-term growth rates ranged from 1.0% to 3.0%. At February 28, 2021, one of the indefinite-lived assets in the Consumer Electronics segment was impaired in the amount of $1,300. The impairment was the result of shortfalls in sales due to reduced demand of the product category. The assessments on the remaining indefinite-lived intangibles concluded that there was no additional impairment as of February 28, 2021. 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 At February 29, 2020, several of the Company’s indefinite-lived intangible assets were determined to be impaired as a result of the annual impairment analysis. 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. As a result of the Fiscal 2021 and Fiscal 2020 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. No impairments of related long-lived assets were noted for Fiscal 2021. For Fiscal 2020, impairments of $19,667 related to long-lived assets associated with the Biometrics segment were recorded. Additionally, no impairment charges were recorded related to definite-lived intangible assets for the years ended February 28, 2022, February 28, 2021, and February 29, 2020. Management determined that the current lives of its long-lived assets are appropriate. Approximately 38.2% ($24,079) 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 28, 2022. There can be no assurance that our estimates and assumptions made for purposes of impairment testing as of February 28, 2022 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 SKUs, 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 28, 2022 February 28, 2021 February 29, 2020 Beginning of period $ 58,311 $ 55,000 $ 54,785 Goodwill acquired (see Note 2) 18,160 3,290 215 Adjustments to goodwill acquired, net (see Note 2) (1,353 ) 21 — Foreign currency translation (798 ) — — End of period $ 74,320 $ 58,311 $ 55,000 Gross carrying value $ 106,483 $ 90,474 $ 87,163 Accumulated impairment charges (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 74,320 $ 58,311 $ 55,000 February 28, 2022 February 28, 2021 February 29, 2020 Automotive Electronics Beginning of period $ 11,778 $ 8,467 $ 8,252 Goodwill acquired (see Note 2) — 3,290 215 Adjustments to goodwill acquired, net (see Note 2) (1,353 ) 21 — End of period $ 10,425 $ 11,778 $ 8,467 Gross carrying value $ 10,425 $ 11,778 $ 8,467 Accumulated impairment charge — — — Net carrying value $ 10,425 $ 11,778 $ 8,467 Consumer Electronics Beginning of period $ 46,533 $ 46,533 $ 46,533 Goodwill acquired (see Note 2) 18,160 - - Adjustments to goodwill acquired (see Note 2) - - - Foreign currency translation (798 ) — — End of period $ 63,895 $ 46,533 $ 46,533 Gross carrying value $ 96,058 $ 78,696 $ 78,696 Accumulated impairment charge (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 63,895 $ 46,533 $ 46,533 Total goodwill, net $ 74,320 $ 58,311 $ 55,000 Note: The Company's Biometrics segment did not carry a balance for goodwill at February 28, 2022, February 28, 2021, or February 29, 2020. Intangible Assets At February 28, 2022 and February 28, 2021, intangible assets consisted of the following: February 28, 2022 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (10-15.5 years) $ 54,138 $ 39,669 $ 14,469 Trademarks/Tradenames (5.5-10 years) 17,466 1,927 15,539 Developed technology (7-10 years) 20,413 13,179 7,234 Patents (7-13 years) 6,736 5,562 1,174 License 1,400 1,400 - Contracts 1,556 1,556 - Total finite-lived intangible assets $ 101,709 $ 63,293 38,416 Indefinite-lived intangible assets Trademarks 63,034 Total intangible assets, net $ 101,450 February 28, 2021 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 54,688 $ 36,412 $ 18,276 Trademarks/Tradenames (5.5-10 years) 5,545 811 4,734 Developed technology (7 years) 14,144 12,516 1,628 Patents (4-13 years) 6,736 4,629 2,107 License 1,400 1,400 - Contracts 1,556 1,556 - Total finite-lived intangible assets $ 84,069 $ 57,324 26,745 Indefinite-lived intangible assets Trademarks 63,359 Total intangible assets, net $ 90,104 The weighted-average remaining amortization period for amortizing intangibles acquired during the year ended February 28, 2022 is approximately 9 years. The Company expenses the renewal costs of patents as incurred. The weighted-average period before the renewal of our patents is approximately 6 years. Amortization expense for intangible assets amounted to $6,508, $5,426 and $7,010 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. At February 28, 2022, the estimated aggregate amortization expense for all amortizable intangibles for each of the succeeding five fiscal years is as follows: Fiscal Year Amount 2023 $ 6,501 2024 6,148 2025 5,886 2026 5,783 2027 3,551 |
Sales Incentives | l) 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 based upon a percentage of sales revenue 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 later 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 later 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. 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 28, 2022 February 28, 2021 February 29, 2020 Accrued sales incentives, opening balance $ 25,313 $ 12,250 $ 13,574 Liabilities acquired during acquisition — - 28 Accruals 58,490 67,337 35,345 Payments and credits (59,644 ) (54,102 ) (36,583 ) Reversals for unearned sales incentives (404 ) (172 ) (114 ) Accrued sales incentives, ending balance $ 23,755 $ 25,313 $ 12,250 The majority of the reversals of previously established sales incentive liabilities pertain to sales recorded in prior periods. |
Advertising | m) Advertising Excluding co-operative advertising as discussed in Note 1(l) above, the Company expensed the cost of advertising, as incurred, of $5,376, $4,605 and $4,905 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively. |
Research and Development | n) Research and Development Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $12,115, $7,940 and $7,748 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively, net of customer reimbursement, of $58, $120 and $266, 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 | o) 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 or replace 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 $4,470 and $4,403 is recorded in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets as of February 28, 2022 and February 28, 2021, respectively. In addition, the Company records a reserve for product repair or replace 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 $1,152 and $887 is recorded as a reduction to inventory in the accompanying Consolidated Balance Sheets as of February 28, 2022 and February 28, 2021, respectively. Warranty claims and product repair costs expense for the years ended February 28, 2022, February 28, 2021 and February 29, 2020 were $4,583, $3,065 and $4,935, respectively. Changes in the Company's accrued product warranties and product repair costs are as follows: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Beginning balance $ 5,290 $ 4,748 $ 4,469 Liabilities (adjusted) acquired during acquisitions (352 ) 1,200 188 Accrual for warranties issued during the year and repair cost 4,583 3,065 4,935 Warranty claims settled during the year (3,899 ) (3,723 ) (4,844 ) Ending balance $ 5,622 $ 5,290 $ 4,748 |
Foreign Currency | p) 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. For the years ended February 28, 2022, February 28, 2021 and February 29, 2020, the Company recorded total net foreign currency transaction (losses) gains in the amount of $(635), $(862) and $405, respectively. The Company has a subsidiary in Venezuela. Venezuela continues to experience 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. T he Venezuelan government has devalued the Bolivar Fuerte several times in an attempt to address continuing hyperinflation . For the years ended February 28, 2022 , February 28, 2021 and February 29, 2020 , total net currency exchange gains ( losses ) recorded related to Venezuela were not significant . 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 for local personnel, as well as other rental properties. The subsidiary’s automotive operations are currently suspended, and all of these properties are held for investment purposes as of February 28, 2022 and had no value. |
Income Taxes | q) 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. The Company made a policy election to treat the income tax with respect to GILTI as a period expense when incurred. 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 (Loss) Income Per Common Share | r) Net (Loss) Income Per Common Share Basic net (loss) income per common share, 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 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 impacting 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 28, 2022 February 28, 2021 February 29, 2020 Weighted-average common shares outstanding (basic) 24,287,179 24,201,221 24,394,663 Effect of dilutive securities: Stock grants, restricted stock units, and market stock units - 448,885 — Weighted-average common and potential common shares outstanding (diluted) 24,287,179 24,650,106 24,394,663 Stock grants, restricted stock units, and market stock units totaling 737,513, 12,757 and 701,024 for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, respectively, were not included in the net (loss) income per common share calculation because the settlement price of the stock grants, restricted stock units and market stock units was greater than the average market price of the Company's common stock during these periods, or because the inclusion of these components would have been anti-dilutive. |
Other (Expense) Income | s) Other (Expense) Income Other (expense) income is comprised of the following: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Foreign currency (loss) gain $ (635 ) $ (862 ) $ 405 Interest income 72 83 918 Rental income 678 739 692 Miscellaneous 208 786 317 Total other, net $ 323 $ 746 $ 2,332 Interest income for the years ended February 28, 2022 and February 28, 2021 decreased as compared to the year ended February 29, 2020 as a result of lower interest rates earned on the Company’s money market investments and a lower balance of funds available to invest. |
Accounting for the Impairment of Long-Lived Assets | t) 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(k) for discussion of the impairment of long-lived assets in connection with the Company’s annual intangible impairment testing for the years ended February 28, 2021 and February 29, 2020. There were no impairments of long-lived assets recorded during the year ended February 28, 2022. |
Accounting for Stock-Based Compensation | u) 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 28, 2022, approximately 1,147,000 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 28, 2022, February 28, 2021, or February 29, 2020. During the years ended February 28, 2022, February 28, 2021 and February 29, 2020 there were no stock-based compensation costs or professional fees recorded by the Company and the Company had no unrecognized compensation costs at February 28, 2022 related to stock options and warrants. Restricted stock awards are granted pursuant to the Company’s 2012 Equity Incentive Plan (the “2012 Plan”). 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. The Company’s Omnibus Equity Incentive Plan was established in 2014 (the “2014 Plan”). Pursuant to the 2014 Plan, Restricted Stock Units (“RSU’s”) may be awarded by the Company to any individual who is employed by, provides services to, or serves as a director of, the Company or its affiliates. RSU’s are 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 RSU’s on a straight-line basis over the requisite service period of each employee. During the years ended February 28, 2022, February 28, 2021 and February 29, 2020, an additional 48,527, 48,269, and 71,352 RSU’s were granted under the 2014 Plan, respectively. The fair market value of the RSU’s, $13.59, $5.76, and $4.65 for Fiscal 2022, Fiscal 2021, and Fiscal 2020, respectively, were determined based on the mean of the high and low price of the Company's common stock on the grant dates. Grant of Shares to Chief Executive Officer On July 8, 2019, the Board of Directors approved a five-year - An initial stock grant of 200,000 fully vested shares of Class A Common Stock issued under the 2012 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 under the 2012 Plan. Compensation expense of $157, $409, and $679 was recognized during the years ended February 28, 2022, February 28, 2021, and February 29, 2020, respectively, 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 under the 2012 Plan 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 $241, $241, and $157 for the years ended February 28, 2022, February 28, 2021, and February 29, 2020, respectively, related to these MSU’s using the graded vesting attribution method over the performance period. As of February 28, 2022, all of the MSU’s remain outstanding. All 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 2014 Plan 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 2014 Plan and the initial stock grant and additional stock grants under the Employment Agreement for the year ended February 28, 2022: Number of shares Weighted Average Grant Date Fair Value 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 Granted 88,269 7.18 Vested (99,697 ) 7.21 Vested and settled (100,000 ) 4.15 Forfeited — — Unvested share balance at February 28, 2021 603,724 $ 5.18 Granted 48,527 13.59 Vested (197,891 ) 5.76 Vested and settled (100,000 ) 4.15 Forfeited — — Unvested share balance at February 28, 2022 354,360 $ 6.30 At February 28, 2022, there were 476,209 shares of vested and unissued shares under the 2014 Plan with a weighted average fair value of $6.90. During the year ended February 28, 2021, vested RSU awards for two of the Company’s former employees, totaling 105,123 award units, were settled in cash in an amount totaling $575. During the years ended February 28, 2022, February 28, 2021 and February 29, 2020 the Company recorded $907, $1,749 and $2,282, respectively, in stock-based compensation related to the 2014 Plan, and the initial stock grant, additional stock grants, and MSU’s under the Employment Agreement. As of February 28, 2022, unrecognized stock-based compensation expense related to unvested RSU’s was approximately $1,220 and will be recognized over the requisite service period of each employee. |
Accumulated Other Comprehensive Loss | v) Accumulated Other Comprehensive Loss Foreign Currency Translation (Losses) Gains Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total 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) income — — (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 ) Other comprehensive income (loss) before reclassifications 4,365 18 (470 ) 3,913 Reclassified from accumulated other comprehensive loss - - 165 165 Net current-period other comprehensive income (loss) 4,365 18 (305 ) 4,078 Balance at February 28, 2021 $ (13,374 ) $ (869 ) $ (734 ) $ (14,977 ) Other comprehensive (loss) income before reclassifications (3,317 ) 158 485 (2,674 ) Reclassified from accumulated other comprehensive loss - - 148 148 Net current-period other comprehensive (loss) income (3,317 ) 158 633 (2,526 ) Balance at February 28, 2022 $ (16,691 ) $ (711 ) $ (101 ) $ (17,503 ) During the years ended February 28, 2022, February 28, 2021 and February 29, 2020, the Company recorded other comprehensive income (loss), net of associated tax impact of $(40), (74) and $38, respectively, related to pension plan adjustments, and $(101), $106 and $35, respectively, related to derivatives designated in a hedging relationship. The other comprehensive (loss) income before reclassification for foreign currency translation of $(3,317), $4,365, and $(1,517), respectively, includes the remeasurement of intercompany transactions of a long term investment nature of $320, (1,244) and $(56), respectively, with certain subsidiaries whose functional currency is not the U.S. dollar, and $(3,637), $5,608 and $(1,461), 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. Within foreign currency translation (losses) gains in Other comprehensive (loss) income for the years ended February 28, 2022, February 28, 2021 and February 29, 2020, the Company recorded total gains (losses) of $(2,728), $4,136, and $(1,435), respectively, related to the Euro; $(245), $261, and $(22), respectively, related to the Canadian Dollar; $25, (53) and $(17), respectively, for the Mexican Peso, as well as $(120), $21 and $(24), respectively, for various other currencies. For the year ended February 28, 2022, Other comprehensive (loss) income also included foreign currency gains of $(249) from the Japanese Yen, generated by the Company’s Onkyo subsidiary, which was established in September 2021 and was not present in previous fiscal years. 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 8% in Fiscal 2022, -10% and 6% in Fiscal 2021, and 2% and 4% in Fiscal 2020. |
New Accounting Pronouncements | w) New Accounting Pronouncements In March 2020 and January 2021, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU No. 2021-01, “Reference Rate Reform: Scope,” respectively. Together, these ASU’s provide optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 provides, among other things, guidance that modifications of contracts within the scope of Topic 470, Debt, should be accounted for by prospectively adjusting the effective interest rate; modifications of contracts within the scope of Topic 840, Leases, should be accounted for as a continuation of the existing contract; and, changes in the critical terms of hedging relationships caused by reference rate reform should not result in the de-designation of the instrument, provided certain criteria are met. ASU 2021-01 clarifies the scope and application of ASU 2020-04 and among other things, permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows. The Company’s exposure to LIBOR rates includes its Credit Facility, as well as its Florida Mortgage and related interest swap agreement. The se optional expedients and exceptions are effective as of March 12, 2020 through December 31, 2022. Adoption is permitted at any time. The Company is currently evaluating the impact this update may have on its consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts With Customers,” which amends the accounting for contract assets acquired and contract liabilities assumed from contracts with customers in business combinations (“acquired contract balances”). The update requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, acquired contract assets and liabilities were measured at fair value. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 27,788 $ 27,788 $ — $ — Mutual funds 1,231 1,231 - - Liabilities: Derivatives designated for hedging $ 188 $ — $ 188 $ — Contingent consideration 6,435 - - 6,435 The following table presents assets and liabilities measured at fair value on a recurring basis at February 28, 2021: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $ 59,404 $ 59,404 $ — $ — Mutual funds 1,777 1,777 - - Derivatives designated for hedging 412 - 412 - Liabilities: Derivatives designated for hedging $ 1,177 $ — $ 1,177 $ — |
Fair Value, by Balance Sheet Grouping | The Company holds derivative instruments that are designated as hedging instruments. The following table discloses the fair value as of February 28, 2022 and February 28, 2021 for derivative instruments: Derivative Assets and Liabilities Fair Value Account February 28, 2022 February 28, 2021 Designated derivative instruments Foreign currency contracts Prepaid expenses and other current assets $ — $ 412 Accrued expenses and other current liabilities - (731 ) Interest rate swap Other long-term liabilities (188 ) (446 ) Total derivatives $ (188 ) $ (765 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Activity related to cash flow hedges recorded during the twelve months ended February 28, 2022 and February 28, 2021 was as follows: February 28, 2022 February 28, 2021 Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income (Loss) Gain Recognized in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Income Cash flow hedges Foreign currency contracts $ 233 $ (307 ) $ (720 ) $ (238 ) Interest rate swaps $ 258 $ — $ 30 $ — |
Summary of Investment Securities | As of February 28, 2022 and February 28, 2021, the Company had the following investments: February 28, 2022 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,231 Total Marketable Equity Securities 1,231 Total Investment Securities $ 1,231 February 28, 2021 Carrying Value Investment Securities Marketable Equity Securities Mutual funds $ 1,777 Total Marketable Equity Securities 1,777 Total Investment Securities $ 1,777 |
Schedule of Accounts Receivable | Accounts receivable are comprised of the following: February 28, 2022 February 28, 2021 Trade accounts receivable $ 108,915 $ 108,862 Less: Allowance for credit losses 2,182 1,593 Allowance for cash discounts 1,108 1,104 $ 105,625 $ 106,165 |
Schedule of Inventory, Current | Inventories by major category are as follows: February 28, 2022 February 28, 2021 Raw materials $ 23,904 $ 21,228 Work in process 1,519 1,732 Finished goods 149,499 107,833 Inventory, net $ 174,922 $ 130,793 |
Summary of Property, Plant and Equipment, Net | A summary of property, plant and equipment, net, is as follows: February 28, 2022 February 28, 2021 Land $ 7,046 $ 7,068 Buildings 44,177 43,987 Property under finance lease 2,503 2,503 Furniture and fixtures 4,489 4,424 Machinery and equipment 10,287 9,785 Construction-in-progress 3,341 1,587 Computer hardware and software 41,962 41,178 Automobiles 710 729 Leasehold improvements 2,718 2,688 117,233 113,949 Less accumulated depreciation and amortization 67,439 61,923 $ 49,794 $ 52,026 |
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 28, 2022 February 28, 2021 February 29, 2020 Beginning of period $ 58,311 $ 55,000 $ 54,785 Goodwill acquired (see Note 2) 18,160 3,290 215 Adjustments to goodwill acquired, net (see Note 2) (1,353 ) 21 — Foreign currency translation (798 ) — — End of period $ 74,320 $ 58,311 $ 55,000 Gross carrying value $ 106,483 $ 90,474 $ 87,163 Accumulated impairment charges (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 74,320 $ 58,311 $ 55,000 February 28, 2022 February 28, 2021 February 29, 2020 Automotive Electronics Beginning of period $ 11,778 $ 8,467 $ 8,252 Goodwill acquired (see Note 2) — 3,290 215 Adjustments to goodwill acquired, net (see Note 2) (1,353 ) 21 — End of period $ 10,425 $ 11,778 $ 8,467 Gross carrying value $ 10,425 $ 11,778 $ 8,467 Accumulated impairment charge — — — Net carrying value $ 10,425 $ 11,778 $ 8,467 Consumer Electronics Beginning of period $ 46,533 $ 46,533 $ 46,533 Goodwill acquired (see Note 2) 18,160 - - Adjustments to goodwill acquired (see Note 2) - - - Foreign currency translation (798 ) — — End of period $ 63,895 $ 46,533 $ 46,533 Gross carrying value $ 96,058 $ 78,696 $ 78,696 Accumulated impairment charge (32,163 ) (32,163 ) (32,163 ) Net carrying value $ 63,895 $ 46,533 $ 46,533 Total goodwill, net $ 74,320 $ 58,311 $ 55,000 Note: The Company's Biometrics segment did not carry a balance for goodwill at February 28, 2022, February 28, 2021, or February 29, 2020. |
Schedule of Intangible Assets, Excluding Goodwill | At February 28, 2022 and February 28, 2021, intangible assets consisted of the following: February 28, 2022 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (10-15.5 years) $ 54,138 $ 39,669 $ 14,469 Trademarks/Tradenames (5.5-10 years) 17,466 1,927 15,539 Developed technology (7-10 years) 20,413 13,179 7,234 Patents (7-13 years) 6,736 5,562 1,174 License 1,400 1,400 - Contracts 1,556 1,556 - Total finite-lived intangible assets $ 101,709 $ 63,293 38,416 Indefinite-lived intangible assets Trademarks 63,034 Total intangible assets, net $ 101,450 February 28, 2021 Gross Carrying Value Accumulated Amortization Total Net Book Value Finite-lived intangible assets: Customer relationships (4-15.5 years) $ 54,688 $ 36,412 $ 18,276 Trademarks/Tradenames (5.5-10 years) 5,545 811 4,734 Developed technology (7 years) 14,144 12,516 1,628 Patents (4-13 years) 6,736 4,629 2,107 License 1,400 1,400 - Contracts 1,556 1,556 - Total finite-lived intangible assets $ 84,069 $ 57,324 26,745 Indefinite-lived intangible assets Trademarks 63,359 Total intangible assets, net $ 90,104 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At February 28, 2022, the estimated aggregate amortization expense for all amortizable intangibles for each of the succeeding five fiscal years is as follows: Fiscal Year Amount 2023 $ 6,501 2024 6,148 2025 5,886 2026 5,783 2027 3,551 |
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 28, 2022 February 28, 2021 February 29, 2020 Accrued sales incentives, opening balance $ 25,313 $ 12,250 $ 13,574 Liabilities acquired during acquisition — - 28 Accruals 58,490 67,337 35,345 Payments and credits (59,644 ) (54,102 ) (36,583 ) Reversals for unearned sales incentives (404 ) (172 ) (114 ) Accrued sales incentives, ending balance $ 23,755 $ 25,313 $ 12,250 |
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 28, 2022 February 28, 2021 February 29, 2020 Beginning balance $ 5,290 $ 4,748 $ 4,469 Liabilities (adjusted) acquired during acquisitions (352 ) 1,200 188 Accrual for warranties issued during the year and repair cost 4,583 3,065 4,935 Warranty claims settled during the year (3,899 ) (3,723 ) (4,844 ) Ending balance $ 5,622 $ 5,290 $ 4,748 |
Reconciliation Between Denominator of Basic and Diluted Net Income (Loss) Per Common Share | There are no reconciling items impacting 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 28, 2022 February 28, 2021 February 29, 2020 Weighted-average common shares outstanding (basic) 24,287,179 24,201,221 24,394,663 Effect of dilutive securities: Stock grants, restricted stock units, and market stock units - 448,885 — Weighted-average common and potential common shares outstanding (diluted) 24,287,179 24,650,106 24,394,663 |
Schedule of Other Nonoperating (Expense) Income | Other (expense) income is comprised of the following: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Foreign currency (loss) gain $ (635 ) $ (862 ) $ 405 Interest income 72 83 918 Rental income 678 739 692 Miscellaneous 208 786 317 Total other, net $ 323 $ 746 $ 2,332 |
Summary of Activity Related to 2014 Plan and Initial Stock Grant and Additional Stock Grants under Employment Agreement | The following table presents a summary of the activity related to the 2014 Plan and the initial stock grant and additional stock grants under the Employment Agreement for the year ended February 28, 2022: Number of shares Weighted Average Grant Date Fair Value 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 Granted 88,269 7.18 Vested (99,697 ) 7.21 Vested and settled (100,000 ) 4.15 Forfeited — — Unvested share balance at February 28, 2021 603,724 $ 5.18 Granted 48,527 13.59 Vested (197,891 ) 5.76 Vested and settled (100,000 ) 4.15 Forfeited — — Unvested share balance at February 28, 2022 354,360 $ 6.30 |
Schedule of Accumulated Other Comprehensive Loss | v) Accumulated Other Comprehensive Loss Foreign Currency Translation (Losses) Gains Pension plan adjustments, net of tax Derivatives designated in a hedging relationship, net of tax Total 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) income — — (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 ) Other comprehensive income (loss) before reclassifications 4,365 18 (470 ) 3,913 Reclassified from accumulated other comprehensive loss - - 165 165 Net current-period other comprehensive income (loss) 4,365 18 (305 ) 4,078 Balance at February 28, 2021 $ (13,374 ) $ (869 ) $ (734 ) $ (14,977 ) Other comprehensive (loss) income before reclassifications (3,317 ) 158 485 (2,674 ) Reclassified from accumulated other comprehensive loss - - 148 148 Net current-period other comprehensive (loss) income (3,317 ) 158 633 (2,526 ) Balance at February 28, 2022 $ (16,691 ) $ (711 ) $ (101 ) $ (17,503 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Onkyo Home Entertainment Corporation [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed | September 8, 2021 Measurement Period Adjustments September 8, 2021 (as adjusted) Purchase price: Cash paid $ 21,989 $ - $ 21,989 Assignment of notes and interest receivable 8,417 - 8,417 Fair value of contingent consideration 6,710 68 6,778 Total transaction consideration $ 37,116 $ 68 $ 37,184 Allocation: Intangible assets $ 26,929 $ (7,905 ) $ 19,024 Goodwill 10,187 7,973 18,160 Total assets acquired $ 37,116 $ 68 37,184 |
Summary of Amounts Assigned to Goodwill and Intangible Assets | The amounts assigned to goodwill and intangible assets for the acquisition are as follows: September 8, 2021 (as adjusted) Amortization Period (Years) Goodwill $ 18,160 N/A Tradenames 12,468 10 Technology 6,556 5 $ 37,184 |
Rollforward of the Redeemable Non-controlling Interest | Redeemable Non-controlling Interest Balance at February 28, 2021 $ - Initial investment by Sharp 2,069 Net loss attributable to non-controlling interest (1,483 ) Foreign currency translation (75 ) Balance at February 28, 2022 $ 511 |
Directed LLC and Directed Electronics Canada Inc [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets 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: July 1, 2020 Measurement Period Adjustments July 1, 2020 (as adjusted) Assets acquired: Inventory $ 7,054 956 8,010 Accounts receivable 5,173 357 5,530 Other current assets 160 - 160 Property and equipment 2,815 - 2,815 Operating lease, right of use asset 1,771 - 1,771 Customer relationships 2,600 (100 ) 2,500 Trademarks 4,500 - 4,500 Patented technology 1,030 - 1,030 Goodwill 3,290 (1,690 ) 1,600 Total assets acquired $ 28,393 $ (477 ) $ 27,916 Liabilities assumed: Accounts payable 8,144 - 8,144 Accrued expenses 1,406 (136 ) 1,270 Contract liabilities 4,872 11 4,883 Warranty accrual 1,200 (352 ) 848 Operating lease liability 1,771 - 1,771 Total $ 17,393 $ (477 ) $ 16,916 Total purchase price $ 11,000 $ - $ 11,000 |
VSHC [Member] | |
Summary of Allocation of Purchase Price for Fair Value of Assets 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 Measurement Period Adjustments January 31, 2020 (as adjusted) Assets acquired: Inventory $ 6,982 (76 ) 6,906 Accounts receivable 3,415 (187 ) 3,228 Right of use assets 483 - 483 Other current assets 145 - 145 Property and equipment 714 - 714 Customer relationships 5,460 - 5,460 Trademarks 560 - 560 Patented technology 280 - 280 Goodwill 215 357 572 Other non-current assets 3 - 3 Total assets acquired $ 18,257 $ 94 $ 18,351 Liabilities assumed: Accounts payable 757 - 757 Accrued expenses 329 94 423 Lease liabilities 483 - 483 Warranty accrual 188 - 188 Total $ 1,757 $ 94 $ 1,851 Total purchase price $ 16,500 $ - $ 16,500 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Variable Interest Entity, Primary Beneficiary [Member] | 12 Months Ended |
Feb. 28, 2022 | |
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 Sheets as of February 28, 2022 and February 28, 2021: February 28, 2022 February 28, 2021 Assets Current assets: Cash and cash equivalents $ 25 $ - Accounts receivable, net 47 167 Inventory, net 2,028 2,245 Prepaid expenses and other current assets 245 30 Total current assets 2,345 2,442 Property, plant and equipment, net 39 39 Intangible assets, net 2,057 2,329 Other assets 59 60 Total assets $ 4,500 $ 4,870 Liabilities and Partners' Deficit Current liabilities: Accounts payable $ 1,023 $ 1,396 Interest payable to VOXX 13,099 11,453 Accrued expenses and other current liabilities 766 824 Due to VOXX 66,390 61,072 Total current liabilities 81,278 74,745 Other long-term liabilities 3,651 1,200 Total liabilities 84,929 75,945 Commitments and contingencies Partners' deficit: Capital 41,416 41,416 Retained losses (121,845 ) (112,491 ) Total partners' deficit (80,429 ) (71,075 ) Total liabilities and partners' deficit $ 4,500 $ 4,870 |
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 28, 2022, February 28, 2021, and February 29, 2020: Year Ended Year Ended Year Ended February 28, 2022 February 28, 2021 February 29, 2020 Net sales $ 882 $ 836 $ 476 Cost of sales 694 1,025 826 Gross profit 188 (189 ) (350 ) Operating expenses: Selling 653 603 710 General and administrative 1,410 1,785 4,625 Engineering and technical support 5,817 4,674 5,144 Intangible asset impairment charges (Note 1(k)) - - 27,402 Total operating expenses 7,880 7,062 37,881 Operating loss (7,692 ) (7,251 ) (38,231 ) Other (expense) income: Interest and bank charges (1,662 ) (1,475 ) (1,279 ) Other, net — — 81 Total other expense, net (1,662 ) (1,475 ) (1,198 ) Loss before income taxes (9,354 ) (8,726 ) (39,429 ) Income tax expense — — — Net loss $ (9,354 ) $ (8,726 ) $ (39,429 ) |
Equity Investment (Tables)
Equity Investment (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Equity Method Investment Summarized Financial Information [Abstract] | |
Equity Method Investment, Summarized Financial Information | The following presents summary financial information of ASA. Such summary financial information has been provided herein based upon the individual significance of ASA to the consolidated financial information of the Company. February 28, 2022 February 28, 2021 Current assets $ 46,202 $ 49,956 Non-current assets 7,382 4,757 Liabilities 10,888 8,179 Members' equity 42,696 46,534 Twelve Months Ended Twelve Months Ended Twelve Months Ended February 28, 2022 February 28, 2021 February 29, 2020 Net sales $ 114,825 $ 95,866 $ 98,632 Gross profit 27,517 24,124 21,342 Operating income 15,695 12,938 10,014 Net income 15,780 14,700 10,348 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: February 28, 2022 February 28, 2021 Commissions $ 934 $ 971 Employee compensation 17,082 18,283 Professional fees and accrued settlements 1,620 922 Future warranty 4,470 4,403 Refund liability 5,469 5,145 Freight and duty 10,342 11,134 Royalties, advertising and other 14,742 12,534 Total accrued expenses and other current liabilities $ 54,659 $ 53,392 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company has the following financing arrangements: February 28, 2022 February 28, 2021 Domestic credit facility (a) $ — $ — Florida mortgage (b) 6,614 7,114 Euro asset-based lending obligation - VOXX Germany (c) 1,906 — Shareholder loan payable to Sharp (d) 4,718 — Total debt 13,238 7,114 Less: current portion of long-term debt 2,406 500 Long-term debt before debt issuance costs 10,832 6,614 Less: debt issuance costs 1,046 652 Total long-term debt $ 9,786 $ 5,962 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. The Credit Facility also includes a $30,000 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)). As of February 28, 2022, there was no balance outstanding under the revolving credit facility. The remaining availability under the revolving credit line of the Credit Facility was $127,486 as of February 28, 2022. Any amounts outstanding under the Credit Facility will mature and become immediately due on April 19, 2026; however, the Credit Facility 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. Commitments under the Credit Facility may be irrevocably reduced at any time, without premium or penalty as set forth in the Credit Facility. 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% (2.00% at February 28, 2022). 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 and shall not be lower than 1.75% (4.00% at February 28, 2022). The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for all revolver usage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event. Provided the Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% 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 Credit Facility, the lenders would have the right to assume dominion and control over the Company's cash. As of February 28, 2022, the Company was not in a Compliance Period. The obligations under the Credit Facility 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. The Company has deferred financing costs related to the Credit Facility and previous amendments and modifications of the Credit Facility. In conjunction with the amendment to its Credit Facility on April 19, 2021, the Company incurred additional financing fees of $667 that will be amortized over the remaining term of the facility. The Company accounted for the April 2021 amendment to the Credit Facility as a modification of debt. 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 remaining term of the Credit Facility. The Company amortized $241 during the year ended February 28, 2022 and $539 during both of the years ended February 28, 2021 and February 29, 2020. The net unamortized balance of these deferred financing costs at February 28, 2022 is $922. Charges incurred on the unused portion of the Credit Facility and its predecessor revolving credit facility during the years ended February 28, 2022, February 28, 2021 and February 29, 2020 totaled $739, $504 and $503, 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% (1.71% at February 28, 2022) 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 and amended in April 2021. The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for the Florida Mortgage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event 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 28, 2022, February 28, 2021, and February 29, 2020. The net unamortized balance of these deferred financing costs at February 28, 2022 is $124. 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, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 28, 2022). d ) Shareholder Loan Payable to Sharp Asset In conjunction with the capitalization and funding of the Company’s Onkyo joint venture with its partner Sharp, which was created in order to execute the acquisition of the home audio/video business of OHEC on September 8, 2021 (see Note 2), Onkyo entered into a loan agreement with the shareholders of the joint venture, PAC and Sharp. The loan balance outstanding at February 28, 2022 represents the portion of the loan payable to Sharp. The loan balance due to PAC eliminates in consolidation. All amounts outstanding under the loan will mature and become payable ten years from the execution date of the acquisition, which is September 8, 2031. The loan may be prepaid subject the approval of the board of directors of the joint venture and must be repaid if either the put or call option is exercised in accordance with the joint venture agreement. The rate of interest for the shareholder loan is 2.5% and the loan is secured by a second priority lien on and secured interest in all assets of Onkyo. |
Schedule of Maturities of Long-term Debt | The following is a maturity table for debt and bank obligations outstanding at February 28, 2022 for each of the following fiscal years: 2023 $ 2,406 2024 500 2025 500 2026 500 2027 500 Thereafter 8,832 Total $ 13,238 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022 February 28, 2021 February 29, 2020 Domestic Operations $ (26,665 ) $ 24,485 $ (47,249 ) Foreign Operations 826 3,153 6,309 $ (25,839 ) $ 27,638 $ (40,940 ) |
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 28, 2022 February 28, 2021 February 29, 2020 Current provision (benefit) Federal $ 20 $ (10 ) $ (26 ) State 804 1,172 395 Foreign 2,148 496 1,824 Total current provision $ 2,972 $ 1,658 $ 2,193 Deferred (benefit) provision Federal $ (2,300 ) $ 3,362 $ (1,850 ) State 1,010 (84 ) (564 ) Foreign (56 ) (664 ) 1,103 Total deferred (benefit) provision $ (1,346 ) $ 2,614 $ (1,311 ) Total (benefit) provision Federal $ (2,280 ) $ 3,352 $ (1,876 ) State 1,814 1,088 (169 ) Foreign 2,092 (168 ) 2,927 Total provision $ 1,626 $ 4,272 $ 882 |
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 28, 2022 February 28, 2021 February 29, 2020 Tax benefit at Federal statutory rates $ (5,426 ) 21.0 % $ 5,804 21.0 % $ (8,598 ) 21.0 % State income taxes, net of Federal benefit (282 ) 1.1 983 3.5 (611 ) 1.5 Change in valuation allowance 7,214 (28.0 ) (3,365 ) (12.2 ) 4,218 (10.3 ) Change in tax reserves (227 ) 0.9 (311 ) (1.1 ) (52 ) - Non-controlling interest 766 (3.0 ) 714 2.6 3,229 (7.9 ) U.S. effects of foreign operations 787 (3.1 ) 412 1.5 1,403 (3.4 ) Permanent differences and other 581 (2.2 ) (192 ) (0.7 ) 1,170 (2.9 ) U.S. GILTI inclusion 232 (0.9 ) 521 1.9 710 (1.7 ) Change in tax rate 105 (0.4 ) 102 0.4 (151 ) 0.4 Research & development credits 243 (0.9 ) - - - - Foreign derived intangible income deduction (975 ) 3.8 - - - - Foreign tax credits (1,392 ) 5.4 (396 ) (1.4 ) (436 ) 1.1 Effective tax rate $ 1,626 (6.3 )% $ 4,272 15.5 % $ 882 (2.2 )% |
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 28, 2022 February 28, 2021 Deferred tax assets: Accounts receivable $ 301 $ 271 Inventory 4,356 3,270 Property, plant and equipment 1,903 1,480 Interim arbitration award 9,515 — Operating lease 999 1,184 Accruals and reserves 5,946 5,303 Deferred compensation 297 433 Warranty reserves 692 752 Unrealized gains and losses 4,219 4,373 Partnership investments 3,399 3,661 Net operating losses 6,278 6,104 Foreign tax credits 2,254 3,805 Other tax credits 5,220 5,433 Deferred tax assets before valuation allowance 45,379 36,069 Less: valuation allowance (30,059 ) (22,845 ) Total deferred tax assets 15,320 13,224 Deferred tax liabilities: Intangible assets (17,464 ) (16,948 ) Prepaid expenses (2,079 ) (1,588 ) Operating lease (977 ) (1,152 ) Deferred financing fees (60 ) (82 ) Total deferred tax liabilities (20,580 ) (19,770 ) Net deferred tax liability $ (5,260 ) $ (6,546 ) |
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, 2019 $ 9,082 Additions based on tax positions taken in the current and prior years 399 Settlements — Decreases based on tax positions taken in the prior years (2,107 ) Other (139 ) Balance at February 29, 2020 $ 7,235 Additions based on tax positions taken in the current and prior years 3 Settlements — Decreases based on tax positions taken in the prior years (490 ) Other 112 Balance at February 28, 2021 $ 6,860 Additions based on tax positions taken in the current and prior years 140 Settlements — Decreases based on tax positions taken in prior years (563 ) Other (172 ) Balance at February 28, 2022 $ 6,265 |
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. 2017 Netherlands 2016 Germany 2013 |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Schedule of Capital Units | The Company's capital structure is as follows: Shares Authorized Shares Outstanding Security Par Value February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 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 21,614,629 21,666,976 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. 28, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost for the year ended February 28, 2022 were as follows: February 28, 2022 February 28, 2021 February 29, 2020 Operating lease cost (a) (c) $ 1,383 $ 1,169 $ 880 Finance lease cost: Amortization of right of use assets (a) 403 596 684 Interest on lease liabilities (b) 11 28 47 Total finance lease cost $ 414 $ 624 $ 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 Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: February 28, 2022 February 28, 2021 Operating Leases Operating lease, right of use assets $ 4,464 $ 4,572 Total operating lease right of use assets $ 4,464 $ 4,572 Accrued expenses and other current liabilities $ 1,255 $ 1,119 Operating lease liabilities, less current portion 3,298 3,582 Total operating lease liabilities $ 4,553 $ 4,701 Finance Leases Property, plant and equipment, gross $ 2,503 $ 2,503 Accumulated depreciation (2,208 ) (1,805 ) Total finance lease right of use assets $ 295 $ 698 Accrued expenses and other current liabilities $ 224 $ 418 Finance lease liabilities, less current portion 78 302 Total finance lease liabilities $ 302 $ 720 Weighted Average Remaining Lease Term Operating leases 5.5 years 6.0 years Finance leases 1.3 years 1.8 years Weighted Average Discount Rate Operating leases 4.01 % 4.49 % Finance leases 3.87 % 3.87 % |
Schedule of Maturities of Leases Liabilities | At February 28, 2022, maturities of lease liabilities for each of the succeeding years were as follows: Operating Leases Finance Leases 2022 $ 1,390 $ 228 2023 1,108 79 2024 638 — 2025 457 — 2026 326 — Thereafter 1,086 — Total lease payments 5,005 307 Less imputed interest 452 5 Total $ 4,553 $ 302 |
Financial and Product Informa_2
Financial and Product Information About Foreign and Domestic Operations (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data from Continuing Operations | Segment data for each of the Company's segments are presented below: Automotive Electronics Consumer Electronics Biometrics Corporate/ Eliminations Total Fiscal Year Ended February 28, 2022 Net sales $ 200,594 $ 433,925 $ 882 $ 519 $ 635,920 Equity in income of equity investees 7,890 — — — 7,890 Interest expense and bank charges 1,510 7,827 1,662 (8,467 ) 2,532 Depreciation and amortization expense 3,049 4,957 297 4,095 12,398 Income (loss) before income taxes (a) 8,471 28,645 (9,354 ) (53,601 ) (25,839 ) Fiscal Year Ended February 28, 2021 Net sales $ 163,903 $ 398,263 $ 836 $ 603 $ 563,605 Equity in income of equity investees 7,350 — — — 7,350 Interest expense and bank charges 1,540 8,537 1,475 (8,573 ) 2,979 Depreciation and amortization expense 2,881 3,856 322 3,974 11,033 Income (loss) before income taxes (b) 9,608 38,939 (8,726 ) (12,183 ) 27,638 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 9,482 1,279 (8,222 ) 2,975 Depreciation and amortization expense 878 4,390 3,136 3,994 12,398 (Loss) income before income taxes (c) (724 ) 9,385 (39,241 ) (10,360 ) (40,940 ) (a) Included within Income (loss) before income taxes within Corporate/Eliminations for the year ended February 28, 2022 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 15). (b) Included within Income (loss) before income taxes for the year ended February 28, 2021 is an intangible asset impairment charge of $1,300 within the Consumer Electronics segment (see Note 1(k)). (c) Included within (Loss) income before income 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). |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Geographic net sales information 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 28, 2022 Net sales $ 506,226 $ 97,396 $ 32,298 $ 635,920 Long-lived assets 44,751 3,422 1,621 49,794 Fiscal Year Ended February 29, 2021 Net sales $ 477,608 $ 82,134 $ 3,863 $ 563,605 Long-lived assets 46,614 3,569 1,843 52,026 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 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
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 28, 2022, February 28, 2021 and February 29, 2020. Year Ended February 28, Year Ended February 28, Year Ended February 29, 2022 2021 2020 Automotive Electronics Segment OEM Products $ 65,017 $ 46,170 $ 49,673 Aftermarket Products 135,577 117,733 64,481 Total Automotive Electronics Segment 200,594 163,903 114,154 Consumer Electronics Segment Premium Audio Products 343,991 299,908 170,762 Other Consumer Electronic Products 89,934 98,355 108,913 Total Consumer Electronics Segment 433,925 398,263 279,675 Biometrics Segment Biometric Products 882 836 461 Total Biometrics Segment 882 836 461 Corporate/Eliminations 519 603 599 Total Net Sales $ 635,920 $ 563,605 $ 394,889 |
Reconciliation of Contract Liabilities | The following table provides a reconciliation of the Company’s contract liabilities as of February 28, 2022: Balance at February 28, 2021 $ 5,265 Subscription payments received 7,615 Revenue recognized (7,468 ) Balance at February 28, 2022 $ 5,412 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Principles of Consolidation, Reclassifications and Accounting Principles - Additional Information (Details) | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Percentage of revenue, expenses, assets and liabilities reflect in financial statement | 100.00% |
Equity method investment ownership percentage not owned | 100.00% |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Feb. 28, 2022 | Feb. 28, 2021 |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 27,788 | $ 59,404 | |
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 | $ 762 | $ 2,213 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Fair Value Measurements and Derivatives - Additional Information (Details) | 12 Months Ended | |||
Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Jul. 20, 2015 | Jul. 20, 2015Rate | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Derivative, Fixed Interest Rate | 3.48% | 3.48% | ||
Foreign currency contracts settled date | Feb. 28, 2022 | |||
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 | 0 | ||
Interest Rate Swap [Member] | ||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Current outstanding notional value | $ 6,614,000 | |||
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 | |||
Liabilities measured at fair value | $ 0 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Assets: | ||
Cash and money market funds | $ 27,788 | $ 59,404 |
Mutual funds | 1,231 | 1,777 |
Derivatives designated for hedging | 412 | |
Liabilities: | ||
Derivatives designated for hedging | 188 | 1,177 |
Contingent consideration | 6,435 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and money market funds | 27,788 | 59,404 |
Derivatives designated for hedging | 0 | |
Liabilities: | ||
Derivatives designated for hedging | 0 | 0 |
Contingent consideration | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash and money market funds | 0 | 0 |
Derivatives designated for hedging | 412 | |
Liabilities: | ||
Derivatives designated for hedging | 188 | 1,177 |
Contingent consideration | 0 | |
Level 3 [Member] | ||
Assets: | ||
Cash and money market funds | 0 | 0 |
Derivatives designated for hedging | 0 | |
Liabilities: | ||
Derivatives designated for hedging | 0 | 0 |
Contingent consideration | 6,435 | |
Mutual Funds [Member] | ||
Assets: | ||
Mutual funds | 1,231 | 1,777 |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Mutual funds | 1,231 | 1,777 |
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Mutual funds | 0 | 0 |
Mutual Funds [Member] | Level 3 [Member] | ||
Assets: | ||
Mutual funds | $ 0 | $ 0 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Prepaid expenses and other current assets | $ 21,340 | $ 22,266 |
Accrued Expenses And Other Current Liabilities | (54,659) | (53,392) |
Derivative Assets and Liabilities | (188) | (765) |
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 | 412 |
Accrued Expenses And Other Current Liabilities | 0 | (731) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other long-term liabilities | $ (188) | $ (446) |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Foreign Exchange Forward [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 233 | $ (720) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (307) | (238) |
Interest Rate Swap [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 258 | $ 30 |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies - Summary of Investment Securities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | $ 1,231 | $ 1,777 |
Mutual funds | 1,231 | 1,777 |
Mutual Funds [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Marketable Equity Securities | 1,231 | 1,777 |
Mutual funds | $ 1,231 | $ 1,777 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies - Investment Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Gain (Loss) on Securities [Line Items] | ||
Cost-method investments, realized gain (loss) | $ 42 | $ 775 |
RxNetworks [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Cost-method investments, realized gain (loss) | $ 42 | $ 775 |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies - Revenue Recognition - Additional Information (Details) | 12 Months Ended |
Feb. 28, 2022 | |
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 _13
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable - Additional Information (Details) $ in Thousands | Mar. 01, 2020 | Feb. 28, 2022 | Feb. 28, 2022USD ($) | Feb. 28, 2022 | Feb. 28, 2022Rate | Feb. 28, 2022Customer | Feb. 28, 2021USD ($)Rate | Feb. 29, 2020USD ($) |
Proceeds from sale of continuing operations | $ 89,400 | $ 100,800 | $ 79,100 | |||||
Interest and Bank Charges [Member] | ||||||||
Fees incurred in connection with the agreements | $ 260 | $ 330 | $ 370 | |||||
ASU 2016-13 [Member] | ||||||||
Change in accounting principle accounting standards update adoption date | Mar. 1, 2020 | |||||||
Change in accounting principle, accounting standards update, adopted | true | |||||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||||
Customer [Member] | Accounts Receivable [Member] | ||||||||
Number of largest customer | Customer | 5 | |||||||
Largest Customer [Member] | Customer [Member] | Accounts Receivable [Member] | ||||||||
Concentration risk, percentage | 24.00% | 24.00% | 25.00% | |||||
Minimum [Member] | ||||||||
Due date of AR, number of days | 30 days | |||||||
Due date of trade receivables number of days | 30 days | |||||||
Maximum [Member] | ||||||||
Due date of AR, number of days | 60 days | |||||||
Due date of trade receivables number of days | 60 days |
Description of Business and _14
Description of Business and Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
Accounting Policies [Abstract] | ||||
Trade accounts receivable | $ 108,915 | $ 108,862 | ||
Allowance for credit losses | 2,182 | 1,593 | ||
Allowance for cash discounts | 1,108 | 1,104 | $ 751 | $ 1,125 |
Accounts receivable | $ 105,625 | $ 106,165 |
Description of Business and _15
Description of Business and Summary of Significant Accounting Policies - Inventory - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Inventory Write-down | $ 2,912 | $ 2,032 | $ 3,050 |
Description of Business and _16
Description of Business and Summary of Significant Accounting Policies - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 23,904 | $ 21,228 |
Work in process | 1,519 | 1,732 |
Finished goods | 149,499 | 107,833 |
Inventory, net | $ 174,922 | $ 130,793 |
Description of Business and _17
Description of Business and Summary of Significant Accounting Policies - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Accounting Policies [Abstract] | ||
Land | $ 7,046 | $ 7,068 |
Buildings | 44,177 | 43,987 |
Property under finance lease | 2,503 | 2,503 |
Furniture and fixtures | 4,489 | 4,424 |
Machinery and equipment | 10,287 | 9,785 |
Construction-in-progress | 3,341 | 1,587 |
Computer hardware and software | 41,962 | 41,178 |
Automobiles | 710 | 729 |
Leasehold improvements | 2,718 | 2,688 |
Property, Plant and Equipment, Gross | 117,233 | 113,949 |
Less accumulated depreciation and amortization | 67,439 | 61,923 |
Property, Plant and Equipment, Net | $ 49,794 | $ 52,026 |
Description of Business and _18
Description of Business and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Feb. 28, 2022 | |
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 _19
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 5,890 | $ 5,607 | $ 5,343 |
Capitalized Computer Software, Amortization | $ 1,547 | $ 1,252 | 1,474 |
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 |
Description of Business and _20
Description of Business and Summary of Significant Accounting Policies - Goodwill and Intangible Assets - Additional Information (Details) | 12 Months Ended | |||
Feb. 28, 2022USD ($)SegmentRate | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | |
Goodwill and Intangible Assets [Line Items] | ||||
Number of operating segments | Segment | 3 | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |
Goodwill | 74,320,000 | 58,311,000 | 55,000,000 | $ 54,785,000 |
Intangible asset impairment charges | 1,300,000 | 30,230,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
Impairment of definite-lived intangible assets | $ 0 | 0 | 0 | |
Indefinite lived trademarks, percentage of total | Rate | 38.20% | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 24,079,000 | |||
Finite-lived intangible assets, remaining amortization period | 9 years | |||
Finite-lived intangible asset, weighted average period before next renewal or extension | 6 years | |||
Amortization of intangible assets | $ 6,508,000 | 5,426,000 | 7,010,000 | |
Consumer Electronics [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 63,895,000 | 46,533,000 | 46,533,000 | $ 46,533,000 |
Intangible asset impairment charges | 1,300,000 | 2,828,000 | ||
Additional Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | |||
Biometrics [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Intangible asset impairment charges | 27,402,000 | |||
Impairment of definite-lived intangible assets | $ 19,667,000 | |||
Klipsch [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 46,533,000 | |||
Invision [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 7,372,000 | |||
Rosen [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 880,000 | |||
VSHC [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 572,000 | |||
DEI [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | 1,600,000 | |||
Onkyo [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill | $ 17,363,000 | |||
Minimum [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Impaired long-lived assets held and used, method for determining fair value | 1.50% | |||
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 | 14.60% | |||
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 | 13.00% | |||
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 | 1.00% | |||
Maximum [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Impaired long-lived assets held and used, method for determining fair value | 6.50% | |||
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 | 30.00% | |||
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 | 15.30% | |||
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% |
Description of Business and _21
Description of Business and Summary of Significant Accounting Policies - Change in Carrying Value of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 58,311,000 | $ 55,000,000 | $ 54,785,000 |
Goodwill, Acquired During Period | 18,160,000 | 3,290,000 | 215,000 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Adjustments to goodwill acquired, net | (1,353,000) | 21,000 | 0 |
Foreign currency translation | (798,000) | 0 | 0 |
Goodwill | 74,320,000 | 58,311,000 | 55,000,000 |
Goodwill, Gross | 106,483,000 | 90,474,000 | 87,163,000 |
Goodwill, Impaired, Accumulated Impairment Loss | (32,163,000) | (32,163,000) | (32,163,000) |
Automotive Electronics [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 11,778,000 | 8,467,000 | 8,252,000 |
Goodwill, Acquired During Period | 0 | 3,290,000 | 215,000 |
Adjustments to goodwill acquired, net | (1,353,000) | 21,000 | 0 |
Goodwill | 10,425,000 | 11,778,000 | 8,467,000 |
Goodwill, Gross | 10,425,000 | 11,778,000 | 8,467,000 |
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, Acquired During Period | 18,160,000 | 0 | 0 |
Adjustments to goodwill acquired, net | 0 | 0 | 0 |
Foreign currency translation | (798,000) | 0 | 0 |
Goodwill | 63,895,000 | 46,533,000 | 46,533,000 |
Goodwill, Gross | 96,058,000 | 78,696,000 | 78,696,000 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (32,163,000) | $ (32,163,000) | $ (32,163,000) |
Description of Business and _22
Description of Business and Summary of Significant Accounting Policies - Schedule of Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 101,709 | $ 84,069 |
Finite-Lived Intangible Assets, Accumulated Amortization | 63,293 | 57,324 |
Finite-Lived Intangible Assets, Net | 38,416 | 26,745 |
Intangible assets, net | 101,450 | 90,104 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 24,079 | |
Trademarks [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 63,034 | 63,359 |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 54,138 | 54,688 |
Finite-Lived Intangible Assets, Accumulated Amortization | 39,669 | 36,412 |
Finite-Lived Intangible Assets, Net | 14,469 | 18,276 |
Trademarks/Tradenames [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 17,466 | 5,545 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,927 | 811 |
Finite-Lived Intangible Assets, Net | 15,539 | 4,734 |
Developed Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 20,413 | 14,144 |
Finite-Lived Intangible Assets, Accumulated Amortization | 13,179 | 12,516 |
Finite-Lived Intangible Assets, Net | 7,234 | 1,628 |
Patents [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 6,736 | 6,736 |
Finite-Lived Intangible Assets, Accumulated Amortization | 5,562 | 4,629 |
Finite-Lived Intangible Assets, Net | 1,174 | 2,107 |
License [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 |
Finite-Lived Intangible Assets, Net | 0 | |
Contracts [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,556 | 1,556 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,556 | $ 1,556 |
Finite-Lived Intangible Assets, Net | $ 0 |
Description of Business and _23
Description of Business and Summary of Significant Accounting Policies - Schedule of Intangible Assets, Excluding Goodwill (Parenthetical) (Details) | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Customer Relationships [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | 4 years |
Customer Relationships [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years 6 months | 15 years 6 months |
Trademarks/Tradenames [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years 6 months | 5 years 6 months |
Trademarks/Tradenames [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | 10 years |
Developed Technology [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 7 years | |
Developed Technology [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 7 years | |
Developed Technology [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | |
Patents [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 7 years | 4 years |
Patents [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 13 years | 13 years |
Description of Business and _24
Description of Business and Summary of Significant Accounting Policies - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Accounting Policies [Abstract] | |
2023 | $ 6,501 |
2024 | 6,148 |
2025 | 5,886 |
2026 | 5,783 |
2027 | $ 3,551 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Accrued sales incentives, opening balance | $ 25,313 | $ 12,250 | $ 13,574 |
Liabilities acquired during acquisition | 28 | ||
Accruals | 58,490 | 67,337 | 35,345 |
Payments and credits | (59,644) | (54,102) | (36,583) |
Reversals for unearned sales incentives | (404) | (172) | (114) |
Accrued sales incentives, ending balance | $ 23,755 | $ 25,313 | $ 12,250 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 5,376 | $ 4,605 | $ 4,905 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Research and Development [Abstract] | |||
Research and development expense | $ 12,115 | $ 7,940 | $ 7,748 |
Engineering and Technical Support [Member] | |||
Research and Development [Abstract] | |||
Customer reimbursement expenses | $ 58 | $ 120 | $ 266 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Standard product warranty accrual | $ 4,470 | $ 4,403 | |
Inventory valuation reserves | 1,152 | 887 | |
Product warranty expense | $ 4,583 | $ 3,065 | $ 4,935 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 5,290 | $ 4,748 | $ 4,469 |
Liabilities (adjusted) acquired during acquisitions | (352) | 1,200 | 188 |
Accrual for warranties issued during the year and repair cost | 4,583 | 3,065 | 4,935 |
Warranty claims settled during the year | (3,899) | (3,723) | (4,844) |
Ending balance | $ 5,622 | $ 5,290 | $ 4,748 |
Description of Business and _30
Description of Business and Summary of Significant Accounting Policies - Foreign Currency - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Foreign currency transaction (loss) gains, before tax | $ (635) | $ (862) | $ 405 |
Cumulative inflation period | 3 years | ||
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 (Loss) Income Per Common Share - Additional Information (Details) | 12 Months Ended | ||
Feb. 28, 2022shares | Feb. 28, 2021shares | Feb. 29, 2020shares | |
Accounting Policies [Abstract] | |||
Reconciling items to basic and diluted EPS | 0 | ||
Antidilutive securities excluded from computation of earnings per share, amount | 737,513 | 12,757 | 701,024 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Weighted-average common shares outstanding (basic) | 24,287,179 | 24,201,221 | 24,394,663 |
Stock grants, restricted stock units, and market stock units | 0 | 448,885 | 0 |
Weighted-average common and potential common shares outstanding (diluted) | 24,287,179 | 24,650,106 | 24,394,663 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Accounting Policies [Abstract] | |||
Foreign currency (loss) gain | $ (635) | $ (862) | $ 405 |
Interest income | 72 | 83 | 918 |
Rental income | 678 | 739 | 692 |
Miscellaneous | 208 | 786 | 317 |
Total other, net | $ 323 | $ 746 | $ 2,332 |
Description of Business and _34
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) $ in Thousands | 12 Months Ended |
Feb. 28, 2022USD ($) | |
Venezuela [Member] | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Impairment of long-lived assets | $ 0 |
Description of Business and _35
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 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | 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 | 1,147,000 | ||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 0 | ||||
Non-cash stock-based compensation expense | $ 907 | $ 1,749 | $ 2,282 | ||
2014 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 | $ 13.59 | $ 7.18 | $ 4.21 | ||
Vested and unissued shares | 197,891 | 99,697 | 127,007 | ||
Weighted Average Grant Date Fair Value, Vested | $ 5.76 | $ 7.21 | $ 4.18 | ||
Patrick M. Lavelle [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Annual salary and cash bonus | $ 1,000 | ||||
Non-cash stock-based compensation expense | $ 241 | $ 241 | $ 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] | |||||
Award vesting period | 5 years | ||||
Common Class A [Member] | Patrick M. Lavelle [Member] | 2012 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 | $ 4.15 | |||
Grant of initial shares under employment agreement | 200,000 | ||||
Non-cash stock-based compensation expense | $ 830 | ||||
Share based compensation related to additional stock grants | $ 157 | $ 409 | $ 679 | ||
Common Class A [Member] | Patrick M. Lavelle [Member] | 2012 Plan [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] | 2012 Plan [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] | 2012 Plan [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 | ||||
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 Units [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 | 907 | $ 1,749 | $ 2,282 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized | $ 1,220 | ||||
Stock issued during period, shares, restricted stock award, gross | 48,527 | 48,269 | 71,352 | ||
Share-based Compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 13.59 | $ 5.76 | $ 4.65 | ||
Share-based payment award vesting age of employee | 65 years | ||||
Restricted Stock Units [Member] | 2014 Plan [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Vested and unissued shares | 105,123 | ||||
Amount of vested and settled awards in cash | $ 575 | ||||
Unissued Restricted Stock Unit Awards [Member] | 2014 Plan [Member] | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Vested and unissued shares | 476,209 | ||||
Weighted Average Grant Date Fair Value, Vested | $ 6.90 | ||||
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 Units [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 _36
Description of Business and Summary of Significant Accounting Policies - Summary of Activity Related to 2014 Plan and Initial Stock Grant and Additional Stock Grants under Employment Agreement (Details) - 2014 Plan [Member] - $ / shares | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Unvested Number of share, Beginning balance | 603,724 | 715,152 | 470,807 |
Granted | 48,527 | 88,269 | 571,352 |
Vested | (197,891) | (99,697) | (127,007) |
Vested and settled | (100,000) | (100,000) | (200,000) |
Forfeited | 0 | 0 | 0 |
Unvested Number of share, Ending balance | 354,360 | 603,724 | 715,152 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 5.18 | $ 5.07 | $ 5.49 |
Weighted Average Grant Date Fair Value, Granted | 13.59 | 7.18 | 4.21 |
Weighted Average Grant Date Fair Value, Vested | 5.76 | 7.21 | 4.18 |
Weighted Average Grant Date Fair Value, Vested and settled | 4.15 | 4.15 | 4.15 |
Weighted Average Grant Date Fair Value, Forfeited | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value, Ending balance | $ 6.30 | $ 5.18 | $ 5.07 |
Description of Business and _37
Description of Business and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Stockholders equity, beginning of period | $ 376,069 | $ 348,229 | $ 395,101 |
Other comprehensive income (loss) before reclassifications | (2,674) | 3,913 | (1,763) |
Reclassified from accumulated other comprehensive (loss) income | 148 | 165 | (348) |
Other comprehensive (loss) income, net of tax | (2,526) | 4,078 | (2,111) |
Stockholders equity, end of period | 346,102 | 376,069 | 348,229 |
Foreign Currency Translation (Losses) Gains [Member] | |||
Stockholders equity, beginning of period | (13,374) | (17,739) | (16,222) |
Other comprehensive income (loss) before reclassifications | (3,317) | 4,365 | (1,517) |
Reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | (3,317) | 4,365 | (1,517) |
Stockholders equity, end of period | (16,691) | (13,374) | (17,739) |
Pension Plan Adjustments, Net of Tax [Member] | |||
Stockholders equity, beginning of period | (869) | (887) | (798) |
Other comprehensive income (loss) before reclassifications | 158 | 18 | (89) |
Reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 |
Other comprehensive (loss) income, net of tax | 158 | 18 | (89) |
Stockholders equity, end of period | (711) | (869) | (887) |
Derivatives Designated in a Hedging Relationship, Net of Tax [Member] | |||
Stockholders equity, beginning of period | (734) | (429) | 76 |
Other comprehensive income (loss) before reclassifications | 485 | (470) | (157) |
Reclassified from accumulated other comprehensive (loss) income | 148 | 165 | (348) |
Other comprehensive (loss) income, net of tax | 633 | (305) | (505) |
Stockholders equity, end of period | (101) | (734) | (429) |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Stockholders equity, beginning of period | (14,977) | (19,055) | (16,944) |
Other comprehensive (loss) income, net of tax | (2,526) | 4,078 | (2,111) |
Stockholders equity, end of period | $ (17,503) | $ (14,977) | $ (19,055) |
Description of Business and _38
Description of Business and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax | $ (40) | $ (74) | $ 38 |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | (101) | 106 | 35 |
Other comprehensive (loss) income before reclassifications | $ (2,674) | $ 3,913 | $ (1,763) |
Minimum [Member] | |||
Foreign currency variance | (2.00%) | (10.00%) | 2.00% |
Maximum [Member] | |||
Foreign currency variance | 8.00% | 6.00% | 4.00% |
Euro Member Countries, Euro | |||
Other comprehensive (loss) income before reclassifications | $ (2,728) | $ 4,136 | $ (1,435) |
Canada, Dollars | |||
Other comprehensive (loss) income before reclassifications | (245) | 261 | (22) |
Mexico, Pesos | |||
Other comprehensive (loss) income before reclassifications | 25 | (53) | (17) |
Other Currency [Member] | |||
Other comprehensive (loss) income before reclassifications | (120) | 21 | (24) |
Foreign Currency Translation (Losses) Gains [Member] | |||
Other comprehensive (loss) income before reclassifications | (3,317) | 4,365 | (1,517) |
Foreign Currency Translation (Losses) Gains [Member] | Japan, Yen | |||
Other comprehensive (loss) income before reclassifications | (249) | ||
Foreign Currency Translation (Losses) Gains [Member] | Intercompany Transactions Of Long Term Investment Nature [Member] | |||
Other comprehensive (loss) income before reclassifications | 320 | (1,244) | (56) |
Foreign Currency Translation (Losses) Gains [Member] | Translating Financial Statements [Member] | |||
Other comprehensive (loss) income before reclassifications | $ (3,637) | $ 5,608 | $ (1,461) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Sep. 08, 2021 | Jul. 01, 2020 | Jan. 31, 2020 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | May 26, 2021 |
Business Acquisition [Line Items] | ||||||||
Adjustments to goodwill due to measurement period adjustments, net | $ (1,353) | $ 21 | $ 0 | |||||
Increase (decrease) in goodwill by cumulative net measurement period adjustment | $ (1,353) | $ 21 | $ 0 | |||||
Percentage of net sales and income before taxes | 4.20% | 4.20% | ||||||
Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of net sales and income before taxes | 1.00% | |||||||
Onkyo Home Entertainment Corporation [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Adjustments to goodwill due to measurement period adjustments, net | $ 7,973 | $ 7,973 | ||||||
Contingent consideration payable, percentage of total price of certain future products purchases | 2.00% | |||||||
Percentage of net sales from consolidated net sales | 0.80% | |||||||
Cash purchase price | $ 21,989 | |||||||
Increase (decrease) in goodwill by cumulative net measurement period adjustment | 7,973 | $ 7,973 | ||||||
Business combination, consideration transferred | $ 37,184 | |||||||
Directed LLC and Directed Electronics Canada Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Adjustments to goodwill due to measurement period adjustments, net | $ (1,690) | $ (1,690) | $ (1,690) | |||||
Cash purchase price | 11,000 | |||||||
Increase (decrease) in goodwill by cumulative net measurement period adjustment | $ (1,690) | $ (1,690) | $ (1,690) | |||||
Directed LLC and Directed Electronics Canada Inc [Member] | VOXX DEI LLC and VOXX DEI Canada, Ltd. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of net sales from consolidated net sales | 10.40% | 8.40% | ||||||
VSHC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Adjustments to goodwill due to measurement period adjustments, net | $ 357 | $ 357 | ||||||
Increase (decrease) in goodwill by cumulative net measurement period adjustment | 357 | $ 357 | ||||||
Business combination, consideration transferred | $ 16,500 | |||||||
PAC [Member] | Onkyo Home Entertainment Corporation [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of interests acquired | 77.20% | |||||||
Voting interest in joint venture | 85.10% | |||||||
Sharp Corporation [Member] | Onkyo Home Entertainment Corporation [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of interests acquired | 22.80% | |||||||
Voting interest in joint venture | 14.90% |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price Based Upon Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 08, 2021 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
Business Acquisition [Line Items] | ||||||
Adjustments to goodwill due to measurement period adjustments, net | $ (1,353) | $ 21 | $ 0 | |||
Allocation: | ||||||
Goodwill | $ 74,320 | $ 58,311 | $ 55,000 | $ 54,785 | ||
Onkyo Home Entertainment Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid | $ 21,989 | |||||
Assignment of notes and interest receivable | 8,417 | |||||
Fair value of contingent consideration | 6,710 | |||||
Total transaction consideration | 37,116 | |||||
Intangible assets | 26,929 | |||||
Goodwill | 10,187 | |||||
Total assets acquired | 37,116 | |||||
Fair value of contingent consideration, measurement period adjustments | 68 | |||||
Total transaction consideration, measurement period adjustments | 68 | |||||
Intangible assets, measurement period adjustments | (7,905) | |||||
Adjustments to goodwill due to measurement period adjustments, net | 7,973 | $ 7,973 | ||||
Total assets acquired, measurement period adjustments | 68 | |||||
Purchase price: | ||||||
Cash paid | 21,989 | |||||
Assignment of notes and interest receivable | 8,417 | |||||
Fair value of contingent consideration | 6,778 | |||||
Total transaction consideration | 37,184 | |||||
Allocation: | ||||||
Intangible assets | 19,024 | |||||
Goodwill | 18,160 | |||||
Total assets acquired | $ 37,184 |
Acquisitions - Summary of Amoun
Acquisitions - Summary of Amounts Assigned to Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 08, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 74,320 | $ 58,311 | $ 55,000 | $ 54,785 | |
Onkyo Home Entertainment Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 18,160 | ||||
Intangible assets | 37,184 | ||||
Onkyo Home Entertainment Corporation [Member] | Goodwill [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 18,160 | ||||
Onkyo Home Entertainment Corporation [Member] | Trademarks [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets amortization period | 10 years | ||||
Intangible assets | $ 12,468 | ||||
Onkyo Home Entertainment Corporation [Member] | Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets amortization period | 5 years | ||||
Intangible assets | $ 6,556 |
Acquisitions - Rollforward of t
Acquisitions - Rollforward of the Redeemable Non-controlling Interest (Details) $ in Thousands | 12 Months Ended |
Feb. 28, 2022USD ($) | |
Business Acquisition [Line Items] | |
Balance at February 28, 2022 | $ 511 |
Onkyo Home Entertainment Corporation [Member] | |
Business Acquisition [Line Items] | |
Balance at February 28, 2021 | 0 |
Initial investment by Sharp | 2,069 |
Net loss attributable to non-controlling interest | (1,483) |
Foreign currency translation | (75) |
Balance at February 28, 2022 | $ 511 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Jan. 31, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 |
Business Acquisition [Line Items] | ||||||
Goodwill, measurement period adjustments | $ (1,353) | $ 21 | $ 0 | |||
Goodwill | 74,320 | 58,311 | $ 55,000 | $ 54,785 | ||
Directed LLC and Directed Electronics Canada Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Inventory | $ 7,054 | |||||
Accounts receivable | 5,173 | |||||
Other current assets | 160 | |||||
Property and equipment | 2,815 | |||||
Operating lease, right of use asset | 1,771 | |||||
Goodwill | 3,290 | |||||
Total assets acquired | 28,393 | |||||
Accounts payable | 8,144 | |||||
Accrued expenses | 1,406 | |||||
Contract liabilities | 4,872 | |||||
Warranty accrual | 1,200 | |||||
Operating lease liability | 1,771 | |||||
Total | 17,393 | |||||
Total transaction consideration | 11,000 | |||||
Inventory, measurement period adjustments | 956 | |||||
Accounts receivable, measurement period adjustments | 357 | |||||
Goodwill, measurement period adjustments | (1,690) | $ (1,690) | (1,690) | |||
Total assets acquired, measurement period adjustments | (477) | |||||
Accrued expenses, right of use asset, measurement period adjustments | (136) | |||||
Contract liabilities, measurement period adjustments | 11 | |||||
Warranty accrual, measurement period adjustments | (352) | |||||
Liabilities assumed, measurement period adjustments | (477) | |||||
Inventory | 8,010 | |||||
Accounts receivable | 5,530 | |||||
Other current assets | 160 | |||||
Property and equipment | 2,815 | |||||
Operating lease, right of use asset | 1,771 | |||||
Goodwill | 1,600 | |||||
Total assets acquired | 27,916 | |||||
Accounts payable | 8,144 | |||||
Accrued expenses | 1,270 | |||||
Contract liabilities | 4,883 | |||||
Warranty accrual | 848 | |||||
Operating lease liability | 1,771 | |||||
Total | 16,916 | |||||
Total purchase price | 11,000 | |||||
Directed LLC and Directed Electronics Canada Inc [Member] | Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 4,500 | |||||
Intangible assets other than goodwill | 4,500 | |||||
Directed LLC and Directed Electronics Canada Inc [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 2,600 | |||||
Intangible assets, measurement period adjustments | (100) | |||||
Intangible assets other than goodwill | 2,500 | |||||
Directed LLC and Directed Electronics Canada Inc [Member] | Patented Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 1,030 | |||||
Intangible assets other than goodwill | $ 1,030 | |||||
VSHC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Inventory | $ 6,982 | |||||
Accounts receivable | 3,415 | |||||
Other current assets | 145 | |||||
Property and equipment | 714 | |||||
Operating lease, right of use asset | 483 | |||||
Goodwill | 215 | |||||
Other non-current assets | 3 | |||||
Total assets acquired | 18,257 | |||||
Accounts payable | 757 | |||||
Accrued expenses | 329 | |||||
Lease liabilities | 483 | |||||
Warranty accrual | 188 | |||||
Total | 1,757 | |||||
Total transaction consideration | 16,500 | |||||
Inventory, measurement period adjustments | (76) | |||||
Accounts receivable, measurement period adjustments | (187) | |||||
Goodwill, measurement period adjustments | 357 | $ 357 | ||||
Total assets acquired, measurement period adjustments | 94 | |||||
Accrued expenses, right of use asset, measurement period adjustments | 94 | |||||
Liabilities assumed, measurement period adjustments | 94 | |||||
Inventory | 6,906 | |||||
Accounts receivable | 3,228 | |||||
Other current assets | 145 | |||||
Property and equipment | 714 | |||||
Operating lease, right of use asset | 483 | |||||
Goodwill | 572 | |||||
Other non-current assets | 3 | |||||
Total assets acquired | 18,351 | |||||
Accounts payable | 757 | |||||
Accrued expenses | 423 | |||||
Lease liabilities | 483 | |||||
Warranty accrual | 188 | |||||
Total | 1,851 | |||||
Total purchase price | 16,500 | |||||
VSHC [Member] | Trademarks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 560 | |||||
Intangible assets other than goodwill | 560 | |||||
VSHC [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 5,460 | |||||
Intangible assets other than goodwill | 5,460 | |||||
VSHC [Member] | Patented Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets other than goodwill | 280 | |||||
Intangible assets other than goodwill | $ 280 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | Apr. 29, 2021 | Feb. 28, 2022 | Feb. 28, 2021 |
Variable Interest Entity [Line Items] | |||
Notes, loans and financing receivable, net, noncurrent | 1.50 | ||
Long-term debt, net of debt issuance costs | $ 9,786,000 | $ 5,962,000 | |
Distribution agreement liability amount | 2,451,000 | ||
GalvanEyes [Member] | |||
Variable Interest Entity [Line Items] | |||
Quarterly installment payment due amount receivable under distribution agreement. | $ 1,250,000 | ||
GalvanEyes [Member] | Put Arrangement [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity interest percentage based on occurrence of certain events | 20.00% | 20.00% | |
Arrangement after initial period Term | 2 years | ||
EyeLock [Member] | Exclusive Distribution Agreement [Member] | |||
Variable Interest Entity [Line Items] | |||
Distribution agreement term | 3 years | ||
EyeLock [Member] | Call Arrangement [Member] | |||
Variable Interest Entity [Line Items] | |||
Equity interest percentage based on occurrence of certain events | 20.00% | ||
EyeLock [Member] | GalvanEyes [Member] | Exclusive Distribution Agreement [Member] | |||
Variable Interest Entity [Line Items] | |||
Annual fee receivable under distribution agreement subject to certain closing conditions | $ 10,000,000 | ||
Annual fee receivable under distribution agreement term | 2 years | ||
EyeLock [Member] | GalvanEyes [Member] | Maximum [Member] | Exclusive Distribution Agreement [Member] | |||
Variable Interest Entity [Line Items] | |||
Quarterly fee receivable under distribution agreement subject to certain closing conditions | $ 5,000,000 | ||
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 | $ 68,200,000 | ||
Long-term debt, net of debt issuance costs | $ 66,390,000 |
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. 28, 2022 | Feb. 28, 2021 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 27,788 | $ 59,404 |
Accounts receivable, net | 105,625 | 106,165 |
Prepaid expenses and other current assets | 21,340 | 22,266 |
Total current assets | 330,772 | 319,339 |
Property, plant and equipment, net | 49,794 | 52,026 |
Intangible assets, net | 101,450 | 90,104 |
Other assets | 3,245 | 1,323 |
Total assets | 586,664 | 550,818 |
Current portion of long-term debt | 2,406 | 500 |
Total current liabilities | 204,016 | 146,796 |
Other long-term liabilities | 5,959 | 5,255 |
Total liabilities | 236,501 | 171,489 |
Commitments and contingencies | ||
Retained earnings | 126,573 | 148,906 |
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity | 586,664 | 550,818 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 25 | |
Accounts receivable, net | 47 | 167 |
Inventory, net | 2,028 | 2,245 |
Prepaid expenses and other current assets | 245 | 30 |
Total current assets | 2,345 | 2,442 |
Property, plant and equipment, net | 39 | 39 |
Intangible assets, net | 2,057 | 2,329 |
Other assets | 59 | 60 |
Total assets | 4,500 | 4,870 |
Accounts payable | 1,023 | 1,396 |
Interest payable to VOXX | 13,099 | 11,453 |
Accrued expenses and other current liabilities | 766 | 824 |
Current portion of long-term debt | 66,390 | 61,072 |
Total current liabilities | 81,278 | 74,745 |
Other long-term liabilities | 3,651 | 1,200 |
Total liabilities | 84,929 | 75,945 |
Commitments and contingencies | ||
Capital | 41,416 | 41,416 |
Retained earnings | (121,845) | (112,491) |
Total partners' deficit | (80,429) | (71,075) |
Total liabilities, redeemable equity, redeemable non-controlling interest, and stockholders' equity | $ 4,500 | $ 4,870 |
Variable Interest Entities - _2
Variable Interest Entities - Summary of Revenues and Expenses Included in Consolidated Statements of Operations and Comprehensive (Loss) Income (Details) - USD ($) | 12 Months Ended | |||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | ||||
Variable Interest Entity [Line Items] | ||||||
Net sales | $ 635,920,000 | $ 563,605,000 | $ 394,889,000 | |||
Cost of sales | 466,442,000 | 405,058,000 | 285,113,000 | |||
Gross profit | 169,478,000 | 158,547,000 | 109,776,000 | |||
Selling | 50,507,000 | 43,786,000 | 39,319,000 | |||
General and administrative | 75,955,000 | 69,798,000 | 68,873,000 | |||
Engineering and technical support | 31,540,000 | 20,897,000 | 21,602,000 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||||
Total operating expenses | 161,554,000 | 136,068,000 | 160,079,000 | |||
Operating income (loss) | 7,924,000 | 22,479,000 | (50,303,000) | |||
Interest and bank charges | (2,532,000) | (2,979,000) | (2,975,000) | |||
Other, net | 323,000 | 746,000 | 2,332,000 | |||
Total other (expense) income, net | (33,763,000) | 5,159,000 | 9,363,000 | |||
(Loss) income before income taxes | (25,839,000) | [1] | 27,638,000 | [2] | (40,940,000) | [3] |
Income tax expense | 1,626,000 | 4,272,000 | 882,000 | |||
Net (loss) income | (27,465,000) | 23,366,000 | (41,822,000) | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Net sales | 882,000 | 836,000 | 476,000 | |||
Cost of sales | 694,000 | 1,025,000 | 826,000 | |||
Gross profit | 188,000 | (189,000) | (350,000) | |||
Selling | 653,000 | 603,000 | 710,000 | |||
General and administrative | 1,410,000 | 1,785,000 | 4,625,000 | |||
Engineering and technical support | 5,817,000 | 4,674,000 | 5,144,000 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 27,402,000 | |||||
Total operating expenses | 7,880,000 | 7,062,000 | 37,881,000 | |||
Operating income (loss) | (7,692,000) | (7,251,000) | (38,231,000) | |||
Interest and bank charges | (1,662,000) | (1,475,000) | (1,279,000) | |||
Other, net | 81,000 | |||||
Total other (expense) income, net | (1,662,000) | (1,475,000) | (1,198,000) | |||
(Loss) income before income taxes | (9,354,000) | (8,726,000) | (39,429,000) | |||
Net (loss) income | $ (9,354,000) | $ (8,726,000) | $ (39,429,000) | |||
[1] | Included within Income (loss) before income taxes within Corporate/Eliminations for the year ended February 28, 2022 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 15). | |||||
[2] | Included within Income (loss) before income taxes for the year ended February 28, 2021 is an intangible asset impairment charge of $1,300 within the Consumer Electronics segment (see Note 1(k)). | |||||
[3] | Included within (Loss) income before income 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 $4,057 within the Consumer Electronics segment (see Note 11). |
Receivables from Vendors - Addi
Receivables from Vendors - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Receivables From Vendors [Abstract] | ||
Nontrade receivables, current | $ 363 | $ 277 |
Equity Investment - Additional
Equity Investment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity method investments | $ 7,890 | $ 7,350 | $ 5,174 |
Proceeds from equity method investment, distribution | 9,809 | 6,009 | 5,136 |
Retained earnings, undistributed earnings from equity method investees | 16,022 | 17,941 | |
Related party transaction, other revenues from transactions with related party | 315 | 260 | $ 501 |
Due from affiliate, current | $ 68 | $ 37 | |
ASA Electronics, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% |
Equity Investment - Equity Meth
Equity Investment - Equity Method Investment, Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Summarized Financial Information, Current Assets | $ 330,772 | $ 319,339 | ||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 204,016 | 146,796 | ||
Equity Method Investment Summarized Financial Information, Equity | 346,102 | 376,069 | $ 348,229 | $ 395,101 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 169,478 | 158,547 | 109,776 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | (27,465) | 23,366 | (41,822) | |
ASA Electronics, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Summarized Financial Information, Current Assets | 46,202 | 49,956 | ||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 7,382 | 4,757 | ||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 10,888 | 8,179 | ||
Equity Method Investment Summarized Financial Information, Equity | 42,696 | 46,534 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 114,825 | 95,866 | 98,632 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 27,517 | 24,124 | 21,342 | |
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations | 15,695 | 12,938 | 10,014 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 15,780 | $ 14,700 | $ 10,348 |
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. 28, 2022 | Feb. 28, 2021 |
Accrued Liabilities Current [Abstract] | ||
Accrued Sales Commission, Current | $ 934 | $ 971 |
Employee compensation | 17,082 | 18,283 |
Professional fees and accrued settlements | 1,620 | 922 |
Future warranty | 4,470 | 4,403 |
Refund liability | 5,469 | 5,145 |
Freight and duty | 10,342 | 11,134 |
Royalties, advertising and other | 14,742 | 12,534 |
Total accrued expenses and other current liabilities | $ 54,659 | $ 53,392 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Environmental exit costs, costs accrued to date | $ 337 | $ 394 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | |
Debt, Long-term and Short-term, Combined Amount | $ 13,238 | $ 7,114 | |
Less: current portion of long-term debt | 2,406 | 500 | |
Long-term debt before debt issuance costs | 10,832 | 6,614 | |
Less: debt issuance costs | 1,046 | 652 | |
Total long-term debt | 9,786 | 5,962 | |
Mortgages [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [1] | 6,614 | $ 7,114 |
Audiovox Germany [Member] | Foreign Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [2] | 1,906 | |
Sharp Corporation [Member] | Shareholder Loan Payable [Member] | |||
Debt, Long-term and Short-term, Combined Amount | [3] | $ 4,718 | |
[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% (1.71% at February 28, 2022) 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 and amended in April 2021. The amendment to the Credit Facility in April 2021 provided for a Benchmark Replacement that will replace the LIBOR rate for the Florida Mortgage. The Benchmark Replacement is subject to the occurrence of a Benchmark Transition Event, as defined in the Second Amended and Restated Credit Agreement and becomes effective after a five-day transition period following the event 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 28, 2022, February 28, 2021, and February 29, 2020. The net unamortized balance of these deferred financing costs at February 28, 2022 is $124. On July 20, 2015, the Company entered into an interest rate swap agreement in order to hedge interest rate exposure related to the Florida Mortgage and pays a fixed rate of 3.48% under the swap agreement (see Note 1(e)). | ||
[2] | Foreign bank obligations include a Euro Asset-Based Lending ("ABL") credit facility, which has a credit limit of €8,000, for the Company's subsidiary, VOXX Germany, which expires on July 31, 2023. The rate of interest for the ABL is the three-month Euribor plus 2.30% (2.30% at February 28, 2022). | ||
[3] | In conjunction with the capitalization and funding of the Company’s Onkyo joint venture with its partner Sharp, which was created in order to execute the acquisition of the home audio/video business of OHEC on September 8, 2021 (see Note 2), Onkyo entered into a loan agreement with the shareholders of the joint venture, PAC and Sharp. The loan balance outstanding at February 28, 2022 represents the portion of the loan payable to Sharp. The loan balance due to PAC eliminates in consolidation. All amounts outstanding under the loan will mature and become payable ten years from the execution date of the acquisition, which is September 8, 2031. The loan may be prepaid subject the approval of the board of directors of the joint venture and must be repaid if either the put or call option is exercised in accordance with the joint venture agreement. The rate of interest for the shareholder loan is 2.5% and the loan is secured by a second priority lien on and secured interest in all assets of Onkyo. |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Debt (Parenthethical) (Details) € in Thousands | Sep. 08, 2021 | Feb. 28, 2022USD ($)Rate | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | Apr. 30, 2021USD ($) | Apr. 26, 2016USD ($) | Jul. 20, 2015 | Jul. 20, 2015Rate | Jul. 06, 2015USD ($) | Oct. 23, 2000EUR (€) |
Percentage of maximum revolver amount | 20.00% | |||||||||
Debt instrument compliance description | Company is in a Compliance Period (the period commencing on the day in which Excess Availability is less than 20% of the Maximum Revolver Amount and ending on a day in which Excess Availability is equal to or greater than 20% for any consecutive 30-day period thereafter) | |||||||||
Line of credit facility, additional financing fees | $ 667,000 | |||||||||
Debt issuance costs, net | $ 1,046,000 | $ 652,000 | ||||||||
Amortization of deferred financing costs | 272,000 | 623,000 | $ 822,000 | |||||||
Line of Credit Facility, Commitment Fee Amount | 739,000 | $ 504,000 | 503,000 | |||||||
Debt Issuance Costs, Gross | $ 332,000 | |||||||||
Industrial revenue bond | $ 9,995,000 | |||||||||
Derivative, Fixed Interest Rate | 3.48% | 3.48% | ||||||||
Mortgage bears interest rate | 70.00% | |||||||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.66% | 3.48% | ||||||||
Interest Expense | $ 550,000 | $ 825,000 | 799,000 | |||||||
Interest Expense, Debt | $ 0 | 326,000 | 0 | |||||||
Sharp Corporation [Member] | Shareholder Loan Payable [Member] | Onkyo Home Entertainment Corporation [Member] | ||||||||||
Debt instrument, payable term | 10 years | |||||||||
Debt instrument, interest rate | 2.50% | |||||||||
Mortgages [Member] | ||||||||||
Debt instrument, basis spread on variable rate | Rate | 1.54% | |||||||||
Debt instrument, interest rate at period end | Rate | 1.71% | |||||||||
Amortization of deferred financing costs | $ 31,000 | 31,000 | 31,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt instrument, interest rate at period end | 2.00% | |||||||||
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] | ||||||||||
Debt instrument, interest rate at period end | 4.00% | |||||||||
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% | |||||||||
Debt instrument, interest rate during period | 1.75% | |||||||||
Wells Fargo [Member] | ||||||||||
Line of credit facility, remaining borrowing capacity | $ 127,486,000 | |||||||||
Wells Fargo [Member] | Loans [Member] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Line of credit facility, maturity date | Apr. 19, 2026 | |||||||||
Revolving Credit Facility [Member] | Wells Fargo [Member] | ||||||||||
Line of credit facility, current borrowing capacity | 140,000,000 | |||||||||
Line of credit facility, outstanding balance | $ 0 | |||||||||
Letter of Credit [Member] | Wells Fargo [Member] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||||||||
Line of Credit [Member] | ||||||||||
Debt issuance costs, net | 922,000 | |||||||||
Amortization of deferred financing costs | $ 241,000 | $ 539,000 | $ 539,000 | |||||||
Foreign Line of Credit [Member] | Audiovox Germany [Member] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | € 8,000 | |||||||||
Debt instrument, basis spread on variable rate | Rate | 2.30% | |||||||||
Debt instrument, interest rate at period end | Rate | 2.30% |
Financing Arrangements - Sche_3
Financing Arrangements - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Current Maturities | $ 2,406 | |
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 | 8,832 | |
Long-term Debt | $ 13,238 | $ 7,114 |
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. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of Income Before Taxes [Abstract] | |||
Domestic Operations | $ (26,665) | $ 24,485 | $ (47,249) |
Foreign Operations | 826 | 3,153 | 6,309 |
Income before provision (benefit) for income taxes | $ (25,839) | $ 27,638 | $ (40,940) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Taxes Disclosure [Line Items] | |||
Current provision (benefit) | $ 2,972 | $ 1,658 | $ 2,193 |
Deferred (benefit) provision | (1,346) | 2,614 | (1,311) |
Total (benefit) provision | 1,626 | 4,272 | 882 |
Federal [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current provision (benefit) | 20 | (10) | (26) |
Deferred (benefit) provision | (2,300) | 3,362 | (1,850) |
Total (benefit) provision | (2,280) | 3,352 | (1,876) |
State [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current provision (benefit) | 804 | 1,172 | 395 |
Deferred (benefit) provision | 1,010 | (84) | (564) |
Total (benefit) provision | 1,814 | 1,088 | (169) |
Foreign [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Current provision (benefit) | 2,148 | 496 | 1,824 |
Deferred (benefit) provision | (56) | (664) | 1,103 |
Total (benefit) provision | $ 2,092 | $ (168) | $ 2,927 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of Effective Tax Rate Before Income Taxes [Abstract] | |||
Tax benefit at Federal statutory rates, amount | $ (5,426) | $ 5,804 | $ (8,598) |
State income taxes, net of Federal benefit, amount | (282) | 983 | (611) |
Change in valuation allowance, amount | 7,214 | (3,365) | 4,218 |
Change in tax reserves, amount | (227) | (311) | (52) |
Non-controlling interest, amount | 766 | 714 | 3,229 |
US effects of foreign operations, amount | 787 | 412 | 1,403 |
Permanent differences and other, amount | 581 | (192) | 1,170 |
U.S. GILTI inclusion, amount | 232 | 521 | 710 |
Change in tax rate, amount | 105 | 102 | (151) |
Research & development credits, amount | 243 | ||
Foreign derived intangible income deduction, amount | (975) | ||
Foreign tax credits, amount | (1,392) | (396) | (436) |
Effective tax rate, amount | $ 1,626 | $ 4,272 | $ 882 |
Tax benefit at Federal statutory rates, percent | 21.00% | 21.00% | 21.00% |
State income taxes, net of Federal benefit, percent | 1.10% | 3.50% | 1.50% |
Change in valuation allowance, percent | (28.00%) | (12.20%) | (10.30%) |
Change in tax reserves, percent | 0.90% | (1.10%) | |
Non-controlling interest, percent | (3.00%) | 2.60% | (7.90%) |
US effects of foreign operations, percent | (3.10%) | 1.50% | (3.40%) |
Permanent differences and other, percent | (2.20%) | (0.70%) | (2.90%) |
U.S. GILTI inclusion, percent | (0.90%) | 1.90% | (1.70%) |
Change in tax rate, percent | (0.40%) | 0.40% | 0.40% |
Research & development credits, percent | (0.90%) | ||
Foreign derived intangible income deduction, percent | 3.80% | ||
Foreign tax credits, percent | 5.40% | (1.40%) | 1.10% |
Effective tax rate, percent | (6.30%) | 15.50% | (2.20%) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Accounts receivable | $ 301 | $ 271 |
Inventory | 4,356 | 3,270 |
Property, plant and equipment | 1,903 | 1,480 |
Interim arbitration award | 9,515 | |
Operating lease | 999 | 1,184 |
Accruals and reserves | 5,946 | 5,303 |
Deferred compensation | 297 | 433 |
Warranty reserves | 692 | 752 |
Unrealized gains and losses | 4,219 | 4,373 |
Partnership investments | 3,399 | 3,661 |
Net operating losses | 6,278 | 6,104 |
Foreign tax credits | 2,254 | 3,805 |
Other tax credits | 5,220 | 5,433 |
Deferred tax assets before valuation allowance | 45,379 | 36,069 |
Less: valuation allowance | (30,059) | (22,845) |
Total deferred tax assets | 15,320 | 13,224 |
Intangible assets | (17,464) | (16,948) |
Prepaid expenses | (2,079) | (1,588) |
Operating lease | (977) | (1,152) |
Deferred financing fees | (60) | (82) |
Total deferred tax liabilities | (20,580) | (19,770) |
Net deferred tax liability | $ (5,260) | $ (6,546) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Taxes Disclosure [Line Items] | ||||
Valuation allowance increase (decrease) in deferred tax asset | $ (7,214) | |||
Deferred tax assets, Capital loss carryforwards | $ 14,056 | |||
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 2041. | |||
Unrecognized tax benefits that would impact effective tax rate | $ 5,380 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 1,083 | $ 226 | ||
Unrecognized tax benefits, income tax penalties and interest expense | (28) | 4 | $ 15 | |
Unrecognized tax benefits, period increase (decrease) | 172 | $ (112) | $ 139 | |
Scenario Forecast [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits, period increase (decrease) | $ 200 | |||
Settlement with Taxing Authority [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | 6,265 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 198 | |||
Capital Loss Carryforward [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2024 | |||
Foreign [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit carryforward, amount | $ 1,366 | |||
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 | 2026 | |||
Federal [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Research and Development, Tax credits | $ 3,537 | |||
Federal [Member] | Research and Development [Member] | Minimum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2035 | |||
Federal [Member] | Research and Development [Member] | Maximum [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Tax credit expiration period | 2041 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance, unrecognized tax benefits | $ 6,860 | $ 7,235 | $ 9,082 |
Additions based on tax positions taken in the current and prior years | 140 | 3 | 399 |
Settlements | 0 | 0 | 0 |
Decreases based on tax positions taken in the prior years | (563) | (490) | (2,107) |
Other | (172) | 112 | (139) |
Ending balance, unrecognized tax benefits | $ 6,265 | $ 6,860 | $ 7,235 |
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. 28, 2022 | |
Tax Year 2016 [Member] | US [Member] | Domestic Tax Authority [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2017 |
Tax Year 2015 [Member] | Netherlands [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2016 |
Tax Year 2014 [Member] | Germany [Member] | Foreign [Member] | |
Income Tax Examination [Line Items] | |
Tax Year under examination | 2013 |
Capital Structure - Schedule of
Capital Structure - Schedule of Capital Units (Details) - $ / shares | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Capital Unit [Line Items] | ||
Preferred stock, shares outstanding | 0 | 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, Liquidation Preference Per Share | $ 50 | |
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 |
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 | 21,614,629 | 21,666,976 |
Common Stock, Voting Rights | one | |
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 | ten |
Capital Structure - Additional
Capital Structure - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022USD ($)shares | Feb. 28, 2021shares | Feb. 29, 2020USD ($)shares | |
Equity [Abstract] | |||
Conversion of shares, common stock | 1 | ||
Treasury stock, shares | 2,862,218 | 2,749,218 | |
Stock repurchase program, number of shares authorized to be repurchased | 2,305,876 | 3,000,000 | |
Stock repurchased during period, shares | 113,000 | 0 | 581,124 |
Stock repurchased during period, value | $ | $ 1,220 | $ 2,742 |
Other Stock and Retirement Pl_2
Other Stock and Retirement Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,147,000 | ||
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 | ||
Matching contributions | 0 | 0 | 0 |
Deferred compensation plan assets | 1,231 | 1,777 | |
Deferred Profit Sharing [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, employer discretionary contribution amount | 689 | 555 | 586 |
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 ($) | Sep. 30, 2019EUR (€) | Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | Mar. 01, 2019USD ($) |
Leases [Line Items] | ||||||
Operating lease, right of use asset | $ 4,464,000 | $ 4,572,000 | ||||
Lease liabilities | 4,553,000 | 4,701,000 | ||||
Short term leases | 0 | |||||
Gain related to execution of sale transaction | $ 4,057,000 | |||||
Other Income (Expense) [Member] | ||||||
Leases [Line Items] | ||||||
Rental income | $ 678,000 | $ 739,000 | 692,000 | |||
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 | 9 years | |||||
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 | |||||
Adoption of ASC 842 [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) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | ||
Leases [Abstract] | ||||
Operating lease cost | [1],[2] | $ 1,383 | $ 1,169 | $ 880 |
Finance lease cost: | ||||
Amortization of right of use assets | [2] | 403 | 596 | 684 |
Interest on lease liabilities | [3] | 11 | 28 | 47 |
Total finance lease cost | $ 414 | $ 624 | $ 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 Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Operating Leases | ||
Operating lease, right of use assets | $ 4,464 | $ 4,572 |
Total operating lease right of use assets | 4,464 | 4,572 |
Accrued expenses and other current liabilities | 1,255 | 1,119 |
Operating lease liabilities, less current portion | 3,298 | 3,582 |
Total operating lease liabilities | 4,553 | 4,701 |
Finance Leases | ||
Property, plant and equipment, gross | 2,503 | 2,503 |
Accumulated depreciation | (2,208) | (1,805) |
Total finance lease right of use assets | $ 295 | $ 698 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Accrued expenses and other current liabilities | $ 224 | $ 418 |
Finance lease liabilities, less current portion | 78 | 302 |
Total finance lease liabilities | $ 302 | $ 720 |
Weighted Average Remaining Lease Term | ||
Operating leases | 5 years 6 months | 6 years |
Finance leases | 1 year 3 months 18 days | 1 year 9 months 18 days |
Weighted Average Discount Rate | ||
Operating leases | 4.01% | 4.49% |
Finance leases | 3.87% | 3.87% |
Lease Obligations - Schedule _3
Lease Obligations - Schedule of Maturities of Leases Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Operating Leases | ||
2022 | $ 1,390 | |
2023 | 1,108 | |
2024 | 638 | |
2025 | 457 | |
2026 | 326 | |
Thereafter | 1,086 | |
Total lease payments | 5,005 | |
Less imputed interest | 452 | |
Total | 4,553 | $ 4,701 |
Finance Leases | ||
2022 | 228 | |
2023 | 79 | |
Total lease payments | 307 | |
Less imputed interest | 5 | |
Total | $ 302 | $ 720 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Feb. 28, 2022USD ($) | Feb. 28, 2022USD ($) | Feb. 28, 2022USD ($)Rate | Feb. 28, 2021Rate | Feb. 29, 2020Rate | |
Financial Instruments [Line Items] | |||||
Letters of credit outstanding, amount | $ 0 | $ 0 | $ 0 | ||
Unrecorded unconditional purchase obligation | $ 174,274 | $ 174,274 | $ 174,274 | ||
Number of customers | 0 | 0 | |||
Concentration risk, benchmark description | 10% | 10% | |||
Net Sales [Member] | |||||
Financial Instruments [Line Items] | |||||
Number of major customer | 5 | 5 | 5 | ||
Accounts Receivable [Member] | |||||
Financial Instruments [Line Items] | |||||
Number of major customer | 5 | 5 | |||
Consumer Electronics [Member] | Net Sales [Member] | |||||
Financial Instruments [Line Items] | |||||
Number of major customer | 1 | ||||
Customer [Member] | Consumer Electronics [Member] | Net Sales [Member] | |||||
Financial Instruments [Line Items] | |||||
Entity-wide revenue, major customer, percentage | Rate | 12.00% | ||||
Customer [Member] | Largest Customer [Member] | Net Sales [Member] | |||||
Financial Instruments [Line Items] | |||||
Entity-wide revenue, major customer, percentage | Rate | 21.00% | 30.00% | 24.00% | ||
Customer [Member] | Largest Customer [Member] | Accounts Receivable [Member] | |||||
Financial Instruments [Line Items] | |||||
Entity-wide revenue, major customer, percentage | 24.00% | 24.00% | 25.00% | ||
Letter of Credit [Member] | |||||
Financial Instruments [Line Items] | |||||
Letters of credit outstanding, amount | $ 50 | $ 50 | $ 50 |
Financial and Product Informa_3
Financial and Product Information About Foreign and Domestic Operations - Additional Information (Details) | 12 Months Ended |
Feb. 28, 2022Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
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 | 12 Months Ended | |||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | ||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 635,920 | $ 563,605 | $ 394,889 | |||
Equity in income of equity investee | 7,890 | 7,350 | 5,174 | |||
Interest expense and bank charges | 2,532 | 2,979 | 2,975 | |||
Depreciation and amortization expense | 12,398 | 11,033 | 12,398 | |||
Income (loss) before income taxes | (25,839) | [1] | 27,638 | [2] | (40,940) | [3] |
Operating Segments [Member] | Automotive Electronics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 200,594 | 163,903 | 114,154 | |||
Equity in income of equity investee | 7,890 | 7,350 | 5,174 | |||
Interest expense and bank charges | 1,510 | 1,540 | 436 | |||
Depreciation and amortization expense | 3,049 | 2,881 | 878 | |||
Income (loss) before income taxes | 8,471 | [1] | 9,608 | [2] | (724) | [3] |
Operating Segments [Member] | Consumer Electronics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 433,925 | 398,263 | 279,675 | |||
Equity in income of equity investee | 0 | 0 | 0 | |||
Interest expense and bank charges | 7,827 | 8,537 | 9,482 | |||
Depreciation and amortization expense | 4,957 | 3,856 | 4,390 | |||
Income (loss) before income taxes | 28,645 | [1] | 38,939 | [2] | 9,385 | [3] |
Operating Segments [Member] | Biometrics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 882 | 836 | 461 | |||
Equity in income of equity investee | 0 | 0 | 0 | |||
Interest expense and bank charges | 1,662 | 1,475 | 1,279 | |||
Depreciation and amortization expense | 297 | 322 | 3,136 | |||
Income (loss) before income taxes | (9,354) | [1] | (8,726) | [2] | (39,241) | [3] |
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 519 | 603 | 599 | |||
Equity in income of equity investee | 0 | 0 | 0 | |||
Interest expense and bank charges | (8,467) | (8,573) | (8,222) | |||
Depreciation and amortization expense | 4,095 | 3,974 | 3,994 | |||
Income (loss) before income taxes | $ (53,601) | [1] | $ (12,183) | [2] | $ (10,360) | [3] |
[1] | Included within Income (loss) before income taxes within Corporate/Eliminations for the year ended February 28, 2022 is a charge of $39,444 recorded for an interim arbitration award unfavorable to the Company (see Note 15). | |||||
[2] | Included within Income (loss) before income taxes for the year ended February 28, 2021 is an intangible asset impairment charge of $1,300 within the Consumer Electronics segment (see Note 1(k)). | |||||
[3] | Included within (Loss) income before income 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 $4,057 within the Consumer Electronics segment (see Note 11). |
Financial and Product Informa_5
Financial and Product Information About Foreign and Domestic Operations - Schedule of Segment Data from Continuing Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting Information [Line Items] | |||
Intangible asset impairment charges | $ 1,300 | $ 30,230 | |
Gain on sale of real property (Note 11) | 4,057 | ||
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Charge for interim arbitration award unfavorable | $ 39,444 | ||
Consumer Electronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Intangible asset impairment charges | $ 1,300 | 2,828 | |
Gain on sale of real property (Note 11) | 4,057 | ||
Biometrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Intangible asset impairment charges | $ 27,402 |
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 | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | $ 635,920 | $ 563,605 | $ 394,889 |
Long-lived assets | 49,794 | 52,026 | 51,424 |
UNITED STATES | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 506,226 | 477,608 | 322,612 |
Long-lived assets | 44,751 | 46,614 | 48,111 |
Europe [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 97,396 | 82,134 | 69,755 |
Long-lived assets | 3,422 | 3,569 | 3,099 |
Non-US [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Net sales | 32,298 | 3,863 | 2,522 |
Long-lived assets | $ 1,621 | $ 1,843 | $ 214 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022USD ($)Segment | Feb. 28, 2021USD ($) | |
Disaggregation Of Revenue [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Contract with customer, right to recover product | $ 2,619 | $ 2,404 |
Contract with customer, refund liability | 5,469 | 5,145 |
Contract with customer, liability | 5,412 | $ 5,265 |
Telematic Subscription Services [Member] | Directed LLC and Directed Electronics Canada Inc [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract with customer, liability | $ 5,412 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 635,920 | $ 563,605 | $ 394,889 |
Corporate, Non-Segment [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 519 | 603 | 599 |
Automotive [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 200,594 | 163,903 | 114,154 |
Automotive [Member] | Operating Segments [Member] | OEM Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 65,017 | 46,170 | 49,673 |
Automotive [Member] | Operating Segments [Member] | Aftermarket Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 135,577 | 117,733 | 64,481 |
Consumer Electronics [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 433,925 | 398,263 | 279,675 |
Consumer Electronics [Member] | Operating Segments [Member] | Premium Audio Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 343,991 | 299,908 | 170,762 |
Consumer Electronics [Member] | Operating Segments [Member] | Other Consumer Electronic Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 89,934 | 98,355 | 108,913 |
Biometrics [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 882 | 836 | 461 |
Biometrics [Member] | Operating Segments [Member] | Biometric Products [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 882 | $ 836 | $ 461 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Reconciliation of Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Feb. 28, 2022USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at February 28, 2021 | $ 5,265 |
Subscription payments received | 7,615 |
Revenue recognized | (7,468) |
Balance at February 28, 2022 | $ 5,412 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 03, 2022 | Nov. 29, 2021 | Jul. 14, 2021 | Jun. 30, 2021 | Feb. 28, 2022 |
Loss Contingencies [Line Items] | |||||
Arbitration settlement | $ 39,444 | ||||
Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded, value | $ 39,444 | ||||
Loss contingency, fees and costs | $ 798 | ||||
Breach of Contract Claim | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought, value | $ 40,000 | $ 10,000 | |||
Loss contingency, damages awarded, value | $ 39,444 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 1,104 | $ 751 | $ 1,125 | |
Gross Amount Charged to Costs and Expenses | 6,320 | 6,565 | 5,243 | |
Reversals of Previously Established Accruals | 0 | 0 | 0 | |
Deductions | [1] | 6,316 | 6,212 | 5,617 |
Balance at End of Year | 1,108 | 1,104 | 751 | |
Allowance for Credit Losses [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 1,593 | 1,954 | 2,548 | |
Gross Amount Charged to Costs and Expenses | 863 | (271) | 253 | |
Reversals of Previously Established Accruals | 0 | 0 | 0 | |
Deductions | [1] | 274 | 90 | 847 |
Balance at End of Year | 2,182 | 1,593 | 1,954 | |
Sales Return Reserve [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 5,145 | 3,779 | 4,415 | |
Gross Amount Charged to Costs and Expenses | 9,571 | 16,550 | 13,243 | |
Reversals of Previously Established Accruals | 0 | 0 | 0 | |
Deductions | [1] | 9,247 | 15,184 | 13,879 |
Balance at End of Year | $ 5,469 | $ 5,145 | $ 3,779 | |
[1] | For the allowance for credit losses and cash discount allowances, deductions represent currency effects, chargebacks and payments made or credits issued to customers. |