GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Feb. 29, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in goodwill are as follows (in thousands):

	Telematics Systems		Software & Subscription Services			Total
Balance as of February 28, 2019	$	51,203	$	29,602		$	80,805
Acquisition of Tracker, Synovia and LoJack Mexico		-		25,810			25,810
Effect of exchange rate change on goodwill		-		(280	)		(280	)
Balance as of February 29, 2020	$	51,203	$	55,132		$	106,335

Other intangible assets are comprised as follows (in thousands, except years):

		Gross									Accumulated Amortization						Effect of Foreign Currency Translation			Net
	Useful	Feb. 28,		Addi-		Impair-			Feb. 29,		Feb. 28,				Feb. 29,		Feb. 29,			Feb. 28,		Feb. 29,
	Life	2019		tions		ment			2020		2019		Expense		2020		2020			2019		2020
Developed technology	2-7 years	$	23,603		3,800		-		$	27,403	$	18,253		3,184	$	21,437	$	(40	)	$	5,350	$	5,926
Tradenames	10 years		40,091		1,600		(11,540	)		30,151		12,644		3,659		16,303		(58	)		27,447		13,790
Customer lists	4-7 years		25,304		-		-			25,304		21,307		1,596		22,903		-			3,997		2,401
Dealer and customer relationships	7-12 years		16,850		23,700		(6,194	)		34,356		6,908		3,845		10,753		(217	)		9,942		23,386
Patents	5 years		589		-		-			589		160		37		197		-			429		392
		$	106,437	$	29,100	$	(17,734	)	$	117,803	$	59,272	$	12,321	$	71,593	$	(315	)	$	47,165	$	45,895

Intangible assets with finite lives are amortized on a straight-line basis over the expected period to be benefited by future cash flows. We monitor and assess these assets for impairment on a periodic basis. Our assessment includes various new product lines and services, which leverage the existing intangible assets as well as consideration of historical and projected revenues and cash flows. In the fourth quarter of fiscal 2020, we determined that the prolonged secular decline in legacy LoJack US SVR products revenue coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. As a result, we performed an assessment of the carrying amount of the related intangible assets supporting these products including the LoJack tradename and dealer and customer relationships. Our assessment of the future cash flows generates by these assets concluded that an impairment loss was present. For the fiscal year ended February 29, 2020, we recorded an impairment loss aggregating $17.7 million, which was attributable to $11.5 million of the LoJack Tradename and $6.2 million of US Dealer relationships. This impairment loss is included within the total Impairment loss shown separately in operating expenses in our consolidated statement of comprehensive income (loss).

Amortization expense of intangible assets was $12.3 million, $11.4 million and $15.0 million in fiscal years ended February 29, 2020, February 28, 2019 and 2018, respectively.

Estimated future amortization expense as of February 29, 2020 is as follows (in thousands):

2021	$	7,625
2022		5,990
2023		5,771
2024		4,539
2025		4,410
Thereafter		17,560
	$	45,895