XML 20 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
OTHER ASSETS
9 Months Ended
Nov. 30, 2017
Other Assets, Noncurrent Disclosure [Abstract]  
OTHER ASSETS

NOTE 5 – OTHER ASSETS

Other assets consist of the following (in thousands):

November 30, February 28,
2017 2017
Deferred compensation plan assets       $      5,830       $      5,801
Investment in international licensees 2,360 2,282
Equity investment in and loan to ThinxNet GmbH 2,674 -
Loans to UK affiliate 2,982 2,402
Other 3,357 2,080
$ 17,203 $ 12,565

Our investment in international licensees at November 30, 2017 consists principally of a 12.5% equity interest in a Mexican licensee of $1.7 million as well as other smaller interests in Benelux and French licensees. The investment in these licensees are accounted for using the cost method of accounting and carried at cost as we do not exercise significant influence over these investees. The dividend income from our equity investment in our Mexican licensee amounted $0.2 million for both the three and nine months ended November 2017. No dividend was declared in prior fiscal year.

In September 2015, we invested £1,400,000 for a 49% minority ownership interest in Smart Driver Club Limited (“Smart Driver Club”), a technology and insurance startup company located in the United Kingdom. This investment is accounted for under the equity method since we have significant influence over the investee. To date we have made loans aggregating £3,000,000, of which £1,000,000 was made in the current fiscal year, to Smart Driver Club bearing interest at an annual interest rate of 8%, with all principal and all unpaid interest due in 2021. The foreign currency translation adjustment for this equity investment and loans amounted to $0.3 million as of November 30, 2017 and is included as a component of Accumulated Other Comprehensive Loss in the consolidated balance sheet as of that date. Our equity in the net loss of Smart Driver Club amounted to $1.1 million and $1.0 million in the nine months ended November 30, 2017 and 2016, respectively. To date, our equity in the net loss of Smart Driver Club amounted $3.2 million.

Effective August 24, 2017, we acquired an ownership interest valued at $1.4 million in ThinxNet GmbH, a company headquartered in Munich, Germany (“ThinxNet”). ThinxNet is an early stage company focused on commercializing cloud-based mobile device and applications in the automotive sector throughout Europe. This represents a cost basis investment as we cannot exercise significant influence over the investee. Contemporaneously, we executed an unsecured convertible note receivable for $1.27 million with an interest rate of 6% which has a fixed term of 12 months, after which the loan can be converted to equity in ThinxNet or a loan payable on demand at our option. The equity investment and note receivable were consideration we received in exchange for our outstanding accounts receivable from ThinxNet. No gain or loss was recorded on this exchange. The assets received in this exchange are included in Other Assets in the consolidated balance sheet as of November 30, 2017.

Our cost method and equity method investments are included in other assets on our condensed consolidated balance sheet and adjusted only for other-than-temporary declines in fair value. We have concluded that there are no indicators of impairment to the fair value of these investments for all periods presented.