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OTHER ASSETS
12 Months Ended
Feb. 28, 2017
Other Assets, Noncurrent Disclosure [Abstract]  
OTHER ASSETS

NOTE 7 – OTHER ASSETS

Other assets consist of the following (in thousands):

      February 28,
2017       2016
Deferred compensation plan assets $      5,801 $      3,370
Investment in international licensees 2,282 -
Equity investment in and loans to UK affiliate 2,402 1,167
Other 2,080 637
Investment in LoJack common stock - 5,466
$ 12,565 $ 10,640

The Company established a non-qualified deferred compensation plan in 2013 in which certain members of management and all non-employee directors are eligible to participate. Participants may defer a portion of their compensation until retirement or a date specified by the participant in accordance with the plan. The Company is informally funding the deferred compensation plan obligations by making cash deposits to a Rabbi Trust that are invested in various equity, bond and money market mutual funds in generally the same proportion as investment elections made by the participants for their compensation deferrals. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets.

Investment in international licensees of $2,282,000 consists of a 12.5% equity interest in LoJack’s Mexican licensee of $1,700,000, a 17.5% equity interest in LoJack’s Benelux licensee of $340,000, and a 5.5% interest in LoJack’s French licensee of $242,000. The investments in Mexican and Benelux licensees, over which we do not exercise significant influence, are accounted for using the cost method of accounting and are carried at cost, which represents their fair value as measured on the date of the acquisition of LoJack. The investment in LoJack’s French licensee, in the form of a marketable equity security, is accounted for as an available-for-sale security and is valued at the quoted closing price on its market exchange as of the reporting date.

In September 2015, the Company invested £1,400,000 or approximately $2,156,000 for a 49% minority ownership interest in Smart Driver Club Limited, a technology and insurance startup company located in the United Kingdom. This investment is accounted for under the equity method since the Company has significant influence over the investee. The Company’s equity in the net loss of this affiliate amounted to $1,284,000 and $829,000 in fiscal 2017 and 2016, respectively. The Company made loans aggregating $2,636,000 denominated in British pounds to Smart Driver Club Limited bearing interest at an annual interest rate of 8%, with principal of £2,000,000 and all unpaid interest due in 2020. The foreign currency translation adjustment for this equity investment amounted to $220,000 as of February 28, 2017 and is included as a component of other comprehensive income (loss).

LoJack became a wholly-owned subsidiary of the Company in March 2016, at which time the investment in LoJack common stock of $5,466,000 as of February 29, 2016 became part of the purchase price of the LoJack acquisition, as described in Note 2.