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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Feb. 28, 2021
Summary of Impact of Immaterial Adjustments Related to the Presentation of Revenues and Cost of Revenues between Products and Services Subsequent to the issuance of the consolidated financial statements for the year ended February 29, 2020, we concluded that the presentation of revenuesand cost of revenues should be adjusted to present product and service revenues and the related cost of revenues for each separately in accordance with SEC Regulation S-X, Rule 5-03(b). Additionally, certain historical information in the notes to the consolidated financial statements have been revised to reflect the impact of these and other classification corrections. We have determined that the correction of these classification errors is not material to the previously issued consolidated financial statements. The following table summarizes the impact of the immaterial adjustments.

 

Year ended February 29, 2020

 

 

As Reported

 

 

Reclassification for Discontinued Operations

 

 

Adjustment

 

 

As Corrected and Reclassified

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

241,212

 

 

$

(37,112

)

 

$

10,274

 

 

$

214,374

 

Application subscriptions and other services

 

124,895

 

 

 

(7,222

)

 

 

(10,274

)

 

 

107,399

 

Total revenues

$

366,107

 

 

$

(44,334

)

 

$

-

 

 

$

321,773

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

154,654

 

 

$

(23,125

)

 

$

4,458

 

 

$

135,987

 

Application subscriptions and other services

 

68,150

 

 

 

(3,399

)

 

 

(4,458

)

 

 

60,293

 

Total cost of revenues

$

222,804

 

 

$

(26,524

)

 

$

-

 

 

$

196,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended February 28, 2019

 

 

As Reported

 

 

Reclassification for Discontinued Operations

 

 

Adjustment

 

 

As Corrected and Reclassified

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

285,883

 

 

$

(42,277

)

 

$

2,846

 

 

$

246,452

 

Application subscriptions and other services

 

77,917

 

 

 

(9,985

)

 

 

(2,846

)

 

 

65,086

 

Total revenues

$

363,800

 

 

$

(52,262

)

 

$

-

 

 

$

311,538

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products

$

175,009

 

 

$

(26,337

)

 

$

2,059

 

 

$

150,731

 

Application subscriptions and other services

 

41,027

 

 

 

(4,039

)

 

 

(2,059

)

 

 

34,929

 

Total cost of revenues

$

216,036

 

 

$

(30,376

)

 

$

-

 

 

$

185,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Long-lived Assets Impaired

In the fourth quarter of fiscal 2020 and throughout fiscal 2021, we determined that the prolonged secular decline in revenues from our legacy LoJack U.S. SVR products coupled with the slower than anticipated market penetration of our telematics solutions in the U.S. automotive dealership channel represented determinate indications of impairment. These factors were further exacerbated by the continuing unfavorable impact that the COVID-19 pandemic has had on the automotive end markets over the past ten months. As a result, we initiated an assessment of the carrying amount of the related goodwill, intangible and long-lived assets supporting these products including the LoJack tradename and dealer and customer relationships in both fiscal years. Based upon our assessment of economic conditions, our expectations of future business conditions and trends, our projected revenues, earnings, and cash flows,

we determined that goodwill and certain of our long-lived assets were impaired in fiscal year 2021 and 2020 as follows (in thousands):

 

 

Year Ended

February 28/29,

 

 

2021

 

 

2020

 

LoJack U.S. SVR Products goodwill

$

12,023

 

 

$

-

 

Other intangible assets:

 

 

 

 

 

 

 

Developed technology

 

478

 

 

 

-

 

Tradenames

 

-

 

 

 

11,540

 

Dealer and customer relationships

 

1,005

 

 

 

6,194

 

Property and equipment and other assets

 

10,483

 

 

 

514

 

Operating lease right-of-use assets and related liabilities

 

658

 

 

 

895

 

Total

$

24,647

 

 

$

19,143

 
ASU 2014-09 [Member]  
Summary of Disaggregation of Revenue by Type of Goods and Services and by Timing of Revenue Recognition

We disaggregate revenue from contracts with customers into reportable segments, geography, type of goods and services and timing of revenue recognition. See Note 21 for our revenue by segment and geography. The disaggregation of revenue by type of goods and services and by timing of revenue recognition is as follows (in thousands):

 

 

Year Ended February 28/29,

 

 

2021

 

 

2020

 

 

2019

 

Revenue by type of goods and services:

 

 

 

 

 

 

 

 

 

 

 

Telematics devices and accessories

$

193,486

 

 

$

214,374

 

 

$

246,452

 

Rental income and other services

 

17,844

 

 

 

21,587

 

 

 

13,591

 

Recurring application subscriptions

 

97,257

 

 

 

85,812

 

 

 

51,495

 

Total

$

308,587

 

 

$

321,773

 

 

$

311,538

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

Revenue recognized at a point in time

$

209,902

 

 

$

232,971

 

 

$

254,054

 

Revenue recognized over time

 

98,685

 

 

 

88,802

 

 

 

57,484

 

Total

$

308,587

 

 

$

321,773

 

 

$

311,538