GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

May 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS

Other intangible assets consist of the following (in thousands):

		Gross (2)							Accumulated Amortization (2)						Net
	Useful Life	Feb. 28, 2022		Additions & Adjustments, net (1)			May 31, 2022		Feb. 28, 2022		Expense		May 31, 2022		Feb. 28, 2022		May 31, 2022
Developed technology	4-6 years	$	26,958		(49	)	$	26,909	$	25,470	$	316	$	25,786	$	1,488	$	1,123
Tradenames	10 years		30,192		(92	)		30,100		20,571		533		21,104		9,621		8,996
Customer relationships	10-15 years		35,404		71			35,475		14,883		490		15,373		20,521		20,102
Patents	5 years		589		—			589		254		3		257		335		332
		$	93,143	$	(70	)	$	93,073	$	61,178	$	1,342	$	62,520	$	31,965	$	30,553

(1)	Amounts also include any net changes in intangible asset balances for the periods presented that resulted from foreign currency translations.

(2)	This table excludes the gross value of fully amortized intangible assets totaling $23.0 million at May 31, 2022 and February 28, 2022.

Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows. We monitor and assess these assets for impairment on a periodic basis. Our assessment includes various new product lines and services, which leverage the existing intangible assets as well as consideration of historical and projected revenues and cash flows. Amortization expense of intangible assets from continuing operations was $1.3 million and $1.3 million for the three months ended May 31, 2022 and 2021, respectively.

Estimated future amortization expense as of May 31, 2022 is as follows (in thousands):

2023 (remainder)	$	4,203
2024		4,529
2025		4,414
2026		4,122
2027		2,501
Thereafter		10,784
	$	30,553

Changes in goodwill are as follows (in thousands):

	Software & Subscription Services			Telematics Products		Total
Balance as of February 28, 2022	$	55,256		$	39,180	$	94,436
Effect of exchange rate change on goodwill		(243	)		—		(243	)
Balance as of May 31, 2022	$	55,013		$	39,180	$	94,193

As further described in Note 1 under the caption Transition of MRM Telematics Customers to Subscription Arrangements, we have begun entering into subscription arrangements with customers who have historically purchased MRM telematics products from us, which is expected to result in growth in Software & Subscription Services revenues and a corresponding decline in Telematics Products revenues as we transition the MRM telematics business to long-term subscription contracts. This transition is expected to be completed throughout Fiscal 2023. As a result of this strategic shift, we anticipate that the goodwill presently associated with our Telematics Products reporting unit will be re-allocated to our other reporting units in Fiscal 2023 at such time that this customer transition is substantially complete.