Lease Obligations

12 Months Ended

Feb. 28, 2015

Leases of Lessee Disclosure [Text Block]


	Lease Obligations

During 1996, the Company entered into a 30-year capital lease for a building with its principal shareholder and current chairman, which was the headquarters of the discontinued Cellular operation. Payments on the capital lease were based upon the construction costs of the building and the then-current interest rates. The effective interest rate on the capital lease obligation was 8% and the lease expiration date was November 30, 2026. The Company has most recently been subleasing the building to Reliance Communications LLC for monthly payments of $60 for a term of three years. In December 2014, Myra Properties LLC, an affiliate of Reliance Communications LLC, purchased the building from Voxx's principal shareholder, causing the lease between Voxx and the shareholder to be terminated. As a result of the transaction, the Company realized a gain of $846, net of tax and net of a termination penalty of $573 paid to the shareholder at the termination date. The gain is recorded in Paid in Capital on the accompanying Consolidated Balance Sheet as of February 28, 2015. Total rental income earned from the sublease of this building for the years ended February 28, 2015, February 28, 2014 and February 28, 2013 was $462, $634 and $573, respectively. We also lease another facility from our principal shareholder which expires on November 30, 2016.

The Company leases a facility from its principal shareholder. At February 28, 2015, minimum annual rental payments on this related party operating lease are as follows:



2016	$	828
2017	635
Total	$	1,463

Total lease payments required under all related party leases for the five-year period ending February 28, 2019 are $1,463.

At February 28, 2015, the Company was obligated under non-cancellable capital and operating leases for equipment and warehouse facilities for minimum annual rental payments as follows:



	Operating Leases
2016	$	7,593
2017	2,892
2018	879
2019	636
2020	193
Thereafter	375
Total minimum lease payments	$	12,568

Rental expense for the above-mentioned operating lease agreements and other leases on a month-to-month basis was $5,648, $5,474 and $5,531 for the years ended February 28, 2015, February 28, 2014 and February 28, 2013, respectively.

The Company has three capital leases with a total lease liability of $777 at February 28, 2015. These leases have maturities through Fiscal 2018.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details