SCHEDULE II

VOXX INTERNATIONAL CORPORATION AND SUBSIDIARIES

Valuation and Qualifying Accounts

Years ended February 28, 2019, February 28, 2018 and February 28, 2017

(In thousands)



Column A	Column B		Column C		Column D (b)					Column E
Description	Balance at Beginning of Year		Gross Amount Charged to Costs and Expenses		Reversals of Previously Established Accruals			Deductions (a)		Balance at End of Year
Year ended February 28, 2019
Allowance for doubtful accounts	$	2,196	$	858	$	—		$	506	$	2,548
Cash discount allowances	1,205		6,112		—			6,192		1,125
Sales return reserve (c)	3,779		10,391		—			9,755		4,415
Accrued sales incentives	14,020		37,272		(202		)	37,516		13,574
Reserve for warranties and product repair costs	6,233		6,091		—			7,855		4,469

Year ended February 28, 2018
Allowance for doubtful accounts	$	4,495	$	667	$	—		$	2,966	$	2,196
Cash discount allowances	1,233		6,407		—			6,435		1,205
Sales return reserve	1,516		5,450		—			5,306		1,660
Accrued sales incentives	13,154		42,722		(45		)	41,811		14,020
Reserve for warranties and product repair costs	5,608		7,428		—			6,803		6,233

Year ended February 28, 2017
Allowance for doubtful accounts	$	3,917	$	1,299	$	—		$	721	$	4,495
Cash discount allowances	1,077		6,457		—			6,301		1,233
Sales return reserve	2,256		5,294		—			6,034		1,516
Accrued sales incentives	12,439		36,413		(108		)	35,590		13,154
Reserve for warranties and product repair costs	7,608		5,843		—			7,843		5,608

(a)

For the allowance for doubtful accounts, cash discount allowances, and accrued sales incentives, deductions represent currency effects, chargebacks and payments made or credits issued to customers. For the reserve for warranties and product repair costs, deductions represent currency effects and payments for labor and parts made to service centers and vendors for the repair of units returned under warranty.


(b)	Within the reserve for warranties and product repair costs, Column D includes $500 of liabilities acquired during our Rosen acquisition in Fiscal 2018 and $832 that was reclassified to the return asset established in conjunction with the implementation of ASC Topic 606 in Fiscal 2019.

(c)

As a result of the implementation of ASC 606 on March 1, 2018, the accounting treatment for the reserve for sales returns was changed from a net to a gross basis. Under the previous revenue guidance, we recorded a net return reserve. Under the new guidance, we record estimated sales returns at the gross sales price with a corresponding adjustment to inventory for the estimated cost of the product. The difference between the balance at the end of the fiscal year ended February 28, 2018 and the beginning of the year ended February 28, 2019 reflects this change in accounting policy.