Business Acquisitions

12 Months Ended

Feb. 28, 2015

Business Acquisitions [Abstract]

Business Combination Disclosure [Text Block]

Business Acquisitions

Hirschmann

On March 14, 2012 (the "Closing Date"), Voxx, through its wholly-owned subsidiary VOXX International (Germany) GmbH ("Voxx Germany"), purchased the stock of Car Communication Holding GmbH, a recognized tier-1 supplier of communications and infotainment solutions, primarily to the automotive industry, pursuant to the Sale and Purchase Agreement for €87,571 ($114,397 based upon the rate of exchange as of the close of business on the Closing Date) subject to an adjustment for working capital plus related transaction fees and expenses. The acquisition of Hirschmann further diversifies Voxx's offerings and creates strategic opportunities for the Company to leverage Hirschmann's advanced technologies. The Company believes this will lead to more advanced and creative mobile electronic products and continued growth with car manufacturers worldwide.

On the Closing Date, the Company, certain of its directly and indirectly wholly-owned domestic subsidiaries, and Voxx Germany (collectively, the "Borrowers") entered into an Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as Agent, and the other lenders party thereto. The Company borrowed approximately $148,000 under the Credit Agreement on the Closing Date and used a portion of the proceeds from such borrowing to fund Voxx Germany's acquisition of Hirschmann. On the Closing Date, the Company also repaid and terminated its existing asset-based loan facility with Wells Fargo Capital Finance, LLC.

In order to hedge the fluctuation in the exchange rate before closing, the Company entered into two forward contracts totaling $63,750, both due in Fiscal 2013. The forward contracts were not designated for hedging, and as such, were marked to market at February 29, 2012 and when they were settled in the first quarter of Fiscal 2013. A foreign currency loss of $2,670 was recorded in Fiscal 2013 when the contracts were settled, reflecting the loss on settlement.

Net sales attributable to Hirschmann in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended February 28, 2015, February 28, 2014 and February 28, 2013 were approximately $174,256, $173,612 and $153,310, respectively.

During the measurement period, the Company recorded $10,701 of net deferred tax liabilities related to the basis difference between the financial reporting value and the tax value, and the adjustments to the intangible assets value in connection with our preliminary purchase price valuation.

The amounts assigned to goodwill and intangible assets for the acquisition are as follows:

	March 14, 2012 (as initially reported)		Measurement Period Adjustments			March 14, 2012 (as adjusted)		Amortization Period (Years)
Goodwill (non-deductible)	$	70,864	$	(10,253	)	$	60,611	N/A
Tradenames (non-deductible)	6,761		3,639			10,400		Indefinite
Customer relationships	9,376		10,016			19,392		15
Patents	6,296		759			7,055		10
	$	93,297	$	4,161		$	97,458

Acquisition related costs relating to this acquisition of $1,526 were expensed as incurred during the year ended February 28, 2013 and are included in acquisition-related costs for these respective periods in the Consolidated Statements of Operations and Comprehensive Income (Loss).

Pro-forma Financial Information

The following unaudited pro-forma financial information for the year ended February 28, 2013 represents the results of the Company's operations as if Hirschmann was included for the full year of Fiscal 2013. The unaudited pro-forma financial information does not necessarily reflect the results of operations that would have occurred had the Company constituted a single entity during such periods.

	Year Ended
	February 28, 2013
Net Sales	$	843,091
Net income	26,624
Net income per share-diluted	$	1.13

The above pro-forma results include certain adjustments for the periods presented to adjust the financial results and give consideration to the assumption that the acquisition of Hirschmann occurred on the first day of Fiscal 2012. These adjustments include costs such as an estimate for amortization and depreciation associated with intangible and fixed assets acquired, additional financing costs as a result of the acquisitions, and the movement of expenses specific to the acquisitions from Fiscal 2013 to Fiscal 2012, respectively. These pro-forma results of operations have been estimated for comparative purposes only and may not reflect the actual results of operations that would have been achieved had the transactions occurred on the dates presented or be indicative of results to be achieved in the future.