Segment Reporting

6 Months Ended

Aug. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

(21) 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, remote start systems, automotive security, vehicle access systems, mobile interface modules, mobile multimedia devices, aftermarket/OE-styled radios, car link-smartphone telematics applications, driver distraction products, collision avoidance systems, automotive power accessories, power lift gates, location-based services, turn signal switches, automotive lighting products, automotive sensing and camera systems, USB ports, cruise control systems, heated seats, and satellite radio products.

Our Consumer Electronics segment designs, manufactures, markets and distributes home theater systems, A/V receivers; premium loudspeakers; outdoor speakers; business music systems; streaming music systems; cinema speakers; architectural speakers; wireless and Bluetooth speakers; soundbars; on-ear and in-ear headphones; wired, wireless, and Bluetooth headphones and ear buds; DLNA (Digital Living Network Alliance) compatible devices; T.V. remote controls; karaoke products; personal sound amplifiers; infant/nursery 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, 2022
Net sales	$	37,218		$	88,015		$	332		$	140		$	125,705
Equity in income of equity investees		1,763			—			—			—			1,763
Interest expense and bank charges		445			2,018			435			(1,987	)		911
Depreciation and amortization expense		897			1,729			72			911			3,609
Loss before income taxes (a)		(126	)		(4,555	)		(1,494	)		(5,452	)		(11,627	)
Three Months Ended August 31, 2021
Net sales	$	45,761		$	96,959		$	253		$	136		$	143,109
Equity in income of equity investees		2,035			—			—			—			2,035
Interest expense and bank charges		309			1,911			415			(2,053	)		582
Depreciation and amortization expense		755			1,003			75			932			2,765
Income (loss) before income taxes		926			2,439			(2,575	)		(1,699	)		(909	)
Six Months Ended August 31, 2022
Net sales	$	76,803		$	176,952		$	435		$	247		$	254,437
Equity in income of equity investees		3,351			—			—			—			3,351
Interest expense and bank charges		850			3,985			868			(4,062	)		1,641
Depreciation and amortization expense		1,658			3,533			145			1,390			6,726
Loss before income taxes (a)		(617	)		(4,028	)		(3,309	)		(12,612	)		(20,566	)
Six Months Ended August 31, 2021
Net sales	$	88,418		$	191,072		$	458		$	221		$	280,169
Equity in income of equity investees		4,758			—			—			—			4,758
Interest expense and bank charges		682			3,886			816			(4,274	)		1,110
Depreciation and amortization expense		1,538			2,004			151			1,879			5,572
Income (loss) before income taxes		4,156			7,907			(4,928	)		(5,763	)		1,372

(a) Included within (Loss) income before taxes on Corporate/Eliminations for the three and six months ended August 31, 2022 are foreign currency losses of $1,362 and $3,441, respectively, attributable to the Company's Onkyo subsidiary related to intercompany transactions and financial statement translation adjustments.