OTHER FINANCIAL INFORMATION

12 Months Ended

Feb. 28, 2017

OTHER FINANCIAL INFORMATION [Abstract]

OTHER FINANCIAL INFORMATION

NOTE 14 – OTHER FINANCIAL INFORMATION

Supplemental Balance Sheet Information

Other current liabilities consist of the following (in thousands):

	February 28,
	2017		2016
Warranty reserves	$	6,518	$	1,892
Litigation reserve		10,144		2,900
Other		8,296		3,583
	$	24,958	$	8,375

Other non-current liabilities consist of the following (in thousands):

	February 28,
	2017		2016
Deferred compensation plan liability	$	5,825	$	3,392
Deferred revenue		12,257		1,070
Deferred rent		378		559
Acquisition-related contingent consideration		636		530
Other		1,133		-
	$	20,229	$	5,551

See Note 7 for information related to the Company’s non-qualified deferred compensation plan.

The acquisition-related contingent consideration is the estimated earn-out payable to the sellers in conjunction with the April 2015 acquisition of CrashBoxx. See Note 2 for additional information related to this acquisition.

Supplemental Income Statement Information

Investment income consists of the following (in thousands):

	Year Ended February 28,
	2017		2016			2015
Investment income on cash equivalents and marketable securities	$	636	$	814		$	58
Investment income (loss) on deferred compensation plan Rabbi Trust assets		864		(359	)		166
Other investment income		191		-			-
Gain on investment in LoJack common stock		-		1,416			-
Total investment income	$	1,691	$	1,871		$	224

Interest expense consists of the following (in thousands):

	Year Ended February 28,
	2017		2016		2015
Interest expense on convertible senior unsecured notes:
Stated interest at 1.625% per annum	$	2,803	$	2,268	$	-
Amortization of note discount		6,232		4,613		-
Amortization of debt issue costs		795		588		-
Total interest expense on convertible notes		9,830		7,469		-
Other interest expense		66		126		296
Total interest expense	$	9,896	$	7,595	$	296

Supplemental Cash Flow Information

“Net cash provided by operating activities” in the consolidated statements of cash flows includes cash payments for interest and income taxes as follows (in thousands):

	Year Ended February 28,
	2017		2016		2015
Interest expense paid	$	2,852	$	1,512	$	12
Income tax paid	$	2,259	$	451	$	347

Following is the supplemental schedule of non-cash investing and financing activities (in thousands):

	Year Ended February 28,
	2017		2016		2015
Acquisition of CrashBoxx in April 2015:
Accrued liability for earn-out consideration	$	-	$	455	$	-

Valuation and Qualifying Accounts

Following is the Company's schedule of valuation and qualifying accounts for the last three years (in thousands):

			Charged
	Balance at		(credited)
	beginning		to costs and							Balance at
	of year		expenses		Deductions			Other (1)		end of year
Allowance for doubtful accounts:
Fiscal 2015	$	761	$	188	$	(276	)	$	-	$	673
Fiscal 2016		673		170		(221	)		-		622
Fiscal 2017		622		541		(201	)		-		962
Warranty reserve:
Fiscal 2015	$	1,516	$	1,333	$	(1,030	)	$	-	$	1,819
Fiscal 2016		1,819		1,015		(942	)		-		1,892
Fiscal 2017		1,892		1,305		(2,562	)		5,883		6,518
Deferred tax assets valuation allowance:
Fiscal 2015	$	4,849	$	150	$	(840	)	$	-	$	4,159
Fiscal 2016		4,159		-		(2,541	)		-		1,618
Fiscal 2017		1,618		1,391		-			3,578		6,587

(1) Represents amount of reserves and valuation allowance assumed in acquisition of LoJack.

The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets.