Financial and Product Information About Foreign and Domestic Operations

Segment

The Company operates in three distinct segments based upon our products and our internal organizational structure. The three operating segments, which are also the Company's reportable segments, are Automotive, Premium Audio and Consumer Accessories.

Our Automotive segment designs, manufactures, distributes and markets rear-seat entertainment devices, satellite radio products, automotive security, vehicle access systems, remote start systems, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics application, driver distraction products, collision avoidance systems and location-based services.

Our Premium Audio segment designs, manufactures, distributes and markets home theater systems, high-end loudspeakers, outdoor speakers, business music systems, cinema speakers, flat panel speakers, Bluetooth speakers, soundbars, headphones and DLNA (Digital Living Network Alliance) compatible devices.

Our Consumer Accessories segment designs, markets and distributes remote controls; wireless and Bluetooth speakers; wired and wireless headphones and ear buds; and karaoke products; action cameras; iris identification and biometric security related products; public safety solutions; infant/nursery products; activity tracking bands; healthcare wearables; smart-home products; security and monitoring products, infant and nursery products; personal sound amplifiers; and A/V connectivity, portable/home charging, reception and digital consumer 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 from continuing operations for each of the Company's segments are presented below:



	Automotive		Premium Audio		Consumer Accessories			Corporate/ Eliminations			Total
Fiscal Year Ended February 28, 2019
Net sales	$	161,647	$	158,436	$	125,806		$	927		$	446,816
Equity in income of equity investees	6,618		—		—			—			6,618
Interest expense and bank charges	868		7,263		7,602			(11,284		)	4,449
Depreciation and amortization expense	1,002		3,318		4,259			3,765			12,344
Income (loss) before income taxes (a)	13,842		6,759		(55,035		)	(24,529		)	(58,963		)

Fiscal Year Ended February 28, 2018
Net sales	$	155,480	$	172,406	$	178,756		$	450		$	507,092
Equity in income of equity investees	7,178		—		—			—			7,178
Interest expense and bank charges	967		7,979		7,113			(10,050		)	6,009
Depreciation and amortization expense	1,027		3,492		4,663			2,992			12,174
Income (loss) before income taxes	13,922		1,137		(23,841		)	(15,322		)	(24,104		)

Fiscal Year Ended February 28, 2017
Net sales	$	170,729	$	166,789	$	176,216		$	796		$	514,530
Equity in income of equity investees	6,797		—		—			—			6,797
Interest expense and bank charges	3,109		5,295		4,716			(6,015		)	7,105
Depreciation and amortization expense	1,322		3,688		4,702			2,674			12,386
Income (loss) before income taxes	13,871		8,316		(20,300		)	(10,817		)	(8,930		)

(a)

Included in income (loss) before income taxes for the year ended February 28, 2019 are intangible asset impairment charges totaling $25,789 (25,629 within the Consumer Accessories segment and $160 within the Automotive segment) (see Note 1(k)), an impairment charge of $3,473 related to investment properties in Venezuela within the Automotive segment (see Note 1(p)), as well as charges of $16,509 related to the write-off of uncollectible notes receivable (see Note 1(f)).

No customer accounted for more than 10% of consolidated net sales from continuing operations during the years ended February 28, 2019, February 28, 2018 or February 28, 2017.

Geographic net sales information from continuing operations 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		Germany		Other		Total
Fiscal Year Ended February 28, 2019
Net sales	$	393,834	$	49,970	$	3,012	$	446,816
Long-lived assets	48,870		11,553		70		60,493

Fiscal Year Ended February 28, 2018
Net sales	$	446,262	$	57,447	$	3,383	$	507,092
Long-lived assets	48,571		12,979		3,709		65,259

Fiscal Year Ended February 28, 2017
Net sales	$	449,865	$	59,856	$	4,809	$	514,530
Long-lived assets	49,937		11,688		3,964		65,589