Segment Reporting

6 Months Ended

Aug. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

(23) Segment Reporting

The Company operates in three distinct segments based on our products and our internal organizational structure. The three operating segments, which are also the Company’s reportable segments, are Automotive Electronics, Consumer Electronics, and Biometrics.

Our Automotive Electronics segment designs, manufactures, markets and distributes rear-seat entertainment devices, satellite radio products, automotive security, vehicle access systems, remote start systems, mobile interface modules, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, driver distraction products, collision avoidance systems, location-based services, turn signal switches, automotive lighting products, automotive sensing and camera systems, USB ports, cruise control systems, and heated seats.

Our Consumer Electronics segment designs, manufactures, markets and distributes home theater systems, high-end loudspeakers, outdoor speakers, business music systems, cinema speakers, flat panel speakers, wireless and Bluetooth speakers, soundbars, wired and wireless headphones and ear buds, DLNA (Digital Living Network Alliance) compatible devices, remote controls, karaoke products, personal sound amplifiers, infant/nursery products, activity tracking bands, healthcare wearables, smart-home security and safety products, as well as A/V connectivity, portable/home charging, reception, and digital consumer products.

Our Biometrics segment designs, manufactures, markets, and distributes iris identification and biometric security related products.

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 for each of the Company's segments is presented below:

	Automotive Electronics			Consumer Electronics			Biometrics			Corporate/ Eliminations			Total
Three Months Ended August 31, 2020
Net sales	$	32,633		$	94,992		$	263		$	144		$	128,032
Equity in income of equity investees		1,883			—			—			—			1,883
Interest expense and bank charges		353			2,106			367			(1,816	)		1,010
Depreciation and amortization expense		708			954			86			999			2,747
Income (loss) before income taxes		239			12,789			(2,014	)		(1,850	)		9,164
Three Months Ended August 31, 2019
Net sales	$	26,845		$	63,034		$	254		$	113		$	90,246
Equity in income of equity investees		1,265			—			—			—			1,265
Interest expense and bank charges		118			2,469			313			(2,013	)		887
Depreciation and amortization expense		193			1,122			784			963			3,062
Income (loss) before income taxes		316			(1,067	)		(3,042	)		(2,256	)		(6,049	)
Six Months Ended August 31, 2020
Net sales	$	49,909		$	149,506		$	360		$	244		$	200,019
Equity in income of equity investees		2,745			—			—			—			2,745
Interest expense and bank charges		521			4,294			722			(3,674	)		1,863
Depreciation and amortization expense		1,174			1,919			172			2,025			5,290
(Loss) income before income taxes		(2,871	)		12,736			(4,151	)		(3,874	)		1,840
Six Months Ended August 31, 2019
Net sales	$	56,487		$	126,687		$	260		$	266		$	183,700
Equity in income of equity investees		2,705			—			—			—			2,705
Interest expense and bank charges		217			4,867			615			(3,815	)		1,884
Depreciation and amortization expense		380			2,263			1,569			1,916			6,128
Income (loss) before income taxes		777			(607	)		(6,022	)		(5,214	)		(11,066	)