Balance Sheet Information
 3 Months Ended
May 31, 2016
Balance Sheet Information [Abstract]  
Balance Sheet Information
Balance Sheet Information
Cash, Cash Equivalents and Marketable Securities
The following table summarizes our cash and cash equivalents by category (in thousands):
 
As of May 31, 2016
 
As of February 29, 2016
Cash
$
70,678

 
$
60,252

Money market funds
56,304

 
58,402

 
$
126,982

 
$
118,654


The following tables summarize our marketable securities by category (in thousands):
 
As of May 31, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Asset-backed securities
$
4,849

 
$
19

 
$
—

 
$
4,868

Corporate debt securities
20,910

 
26

 
(20
)
 
20,916

Equity securities
1,596

 
709

 
—

 
2,305

Foreign government bonds
201

 
—

 
—

 
201

Mortgage-backed securities
1,812

 
1

 
(5
)
 
1,808

U.S. government agency securities
6,189

 
6

 
(29
)
 
6,166

U.S. government notes
3,453

 
12

 
(2
)
 
3,463

 
$
39,010

 
$
773

 
$
(56
)
 
$
39,727

 
 
 
 
 
 
 
 
 
As of February 29, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Asset-backed securities
$
4,717

 
$
9

 
$
(3
)
 
$
4,723

Corporate debt securities
19,135

 
11

 
(22
)
 
19,124

Equity securities
3,095

 
380

 
—

 
3,475

Foreign government bonds
205

 
—

 
—

 
205

Mortgage-backed securities
2,341

 
—

 
(13
)
 
2,328

U.S. government agency securities
2,242

 
6

 
(14
)
 
2,234

U.S. government notes
4,279

 
26

 
—

 
4,305

 
$
36,014

 
$
432

 
$
(52
)
 
$
36,394


We use the specific-identification method to determine any realized gains or losses from the sale of our marketable securities classified as available-for-sale. For the three months ended May 31, 2016, we realized gross gains of $0.4 million and an insignificant amount of gross losses. For the three months ended May 31, 2015, realized gains and losses were insignificant. We reflect these gains and losses as a component of other income (expense), net in the condensed consolidated statements of operations.
The following tables present gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
 
As of May 31, 2016
 
Less Than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Corporate debt securities
$
10,924

 
$
(20
)
 
$
—

 
$
—

 
$
10,924

 
$
(20
)
Mortgage-backed securities
1,345

 
(3
)
 
234

 
(2
)
 
1,579

 
(5
)
U.S. government agency securities
5,332

 
(27
)
 
249

 
(2
)
 
5,581

 
(29
)
U.S. government notes
570

 
(2
)
 
—

 
—

 
570

 
(2
)
 
$
18,171

 
$
(52
)
 
$
483

 
$
(4
)
 
$
18,654

 
$
(56
)
 
As of February 29, 2016
 
Less Than 12 Months
 
12 Months or Greater
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
Asset-backed securities
$
1,788

 
$
(3
)
 
$
—

 
$
—

 
$
1,788

 
$
(3
)
Corporate debt securities
12,088

 
(22
)
 
—

 
—

 
12,088

 
(22
)
Mortgage-backed securities
1,746

 
(8
)
 
385

 
(5
)
 
2,131

 
(13
)
U.S. government agency securities
887

 
(10
)
 
622

 
(4
)
 
1,509

 
(14
)
 
$
16,509

 
$
(43
)
 
$
1,007

 
$
(9
)
 
$
17,516

 
$
(52
)

We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and whether we intend to sell. For marketable debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis and (ii) the amortized cost basis cannot be recovered as a result of credit losses. Unrealized losses related to these investments are due to interest rate fluctuations as opposed to changes in credit quality. We do not intend to sell and it is not more likely than not that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As of May 31, 2016, we have recognized no other-than-temporary impairment loss.
The following table summarizes the estimated fair value of our investments in marketable debt securities by contractual maturities (in thousands):
 
As of May 31, 2016
Due in 1 year
$
10,432

Due in 1 year through 5 years
22,147

Due in 5 years through 10 years
1,372

Due after 10 years
3,471

 
$
37,422


Fair Value Measurements
We determine fair value based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Level 1:
Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2:
Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3:
Inputs are unobservable inputs based on our assumptions.
Cash equivalents and marketable equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Marketable debt securities and derivative assets are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Our marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
We estimated the fair value of our Level 3 contingent consideration liabilities based on a weighted probability assessment of achieving the milestones related to certain of our acquisitions. Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions.
Financial assets measured at fair value on a recurring basis are summarized below (in thousands):
 
As of May 31, 2016
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
56,304

 
$
—

 
$
—

 
$
56,304

Marketable securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
4,868

 
$
—

 
$
4,868

Corporate debt securities
$
—

 
$
20,916

 
$
—

 
$
20,916

Equity securities
$
2,305

 
$
—

 
$
—

 
$
2,305

Foreign government bonds
$
—

 
$
201

 
$
—

 
$
201

Mortgage-backed securities
$
—

 
$
1,808

 
$
—

 
$
1,808

U.S. government agency securities
$
—

 
$
6,166

 
$
—

 
$
6,166

U.S. government notes
$
—

 
$
3,463

 
$
—

 
$
3,463

Other accrued liabilities (current):
 
 
 
 
 
 
 
Contingent consideration
$
—

 
$
—

 
$
1,160

 
$
1,160

Other long-term liabilities:
 
 
 
 
 
 
 
Contingent consideration
$
—

 
$
—

 
$
161

 
$
161

 
 
 
 
 
 
 
 
 
As of February 29, 2016
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
58,402

 
$
—

 
$
—

 
$
58,402

Marketable securities:
 
 
 
 
 
 
 
Asset-backed securities
$
—

 
$
4,723

 
$
—

 
$
4,723

Corporate debt securities
$
—

 
$
19,124

 
$
—

 
$
19,124

Equity securities
$
3,475

 
$
—

 
$
—

 
$
3,475

Foreign government bonds
$
—

 
$
205

 
$
—

 
$
205

Mortgage-backed securities
$
—

 
$
2,328

 
$
—

 
$
2,328

U.S. government agency securities
$
—

 
$
2,234

 
$
—

 
$
2,234

U.S. government notes
$
—

 
$
4,305

 
$
—

 
$
4,305

Other accrued liabilities (current):
 
 
 
 
 
 
 
Contingent consideration
$
—

 
$
—

 
$
1,160

 
$
1,160

Other long-term liabilities:
 
 
 
 
 
 
 
Contingent consideration
$
—

 
$
—

 
$
161

 
$
161


Inventories, Net
Inventories, net consisted of the following (in thousands):
 
As of May 31, 2016
 
As of February 29, 2016
Raw materials
$
3,098

 
$
2,459

Finished goods
3,313

 
3,659

Reserves
(400
)
 
(470
)
 
$
6,011

 
$
5,648


Deferred Costs
Deferred costs consisted of the following (in thousands):
 
As of May 31, 2016
 
As of February 29, 2016
Appliance
$
40,960

 
$
41,548

Commissions
18,101

 
17,414

 
$
59,061

 
$
58,962


Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
 
As of May 31, 2016
 
As of February 29, 2016
Land
$
9,822

 
$
9,578

Building
6,549

 
6,549

Computer hardware and software
28,103

 
26,450

Vehicles, machinery and equipment
4,709

 
4,711

Leasehold improvements
4,463

 
4,401

 
53,646

 
51,689

Accumulated depreciation and amortization
(22,178
)
 
(19,779
)
 
$
31,468

 
$
31,910


Depreciation and amortization expense related to property and equipment was $2.4 million and $1.6 million for the three months ended May 31, 2016 and 2015, respectively.
Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) ("AOCI"), net of tax, were as follows (in thousands):
 
Foreign
Currency
Translation
Adjustments
 
Unrealized Gains
(Losses) on
Available-for-
Sale Investments
 
Total
Balance as of February 29, 2016
$
(4,894
)
 
$
385

 
$
(4,509
)
Other comprehensive income before reclassifications
334

 
610

 
944

Amounts reclassified from AOCI
—

 
(273
)
 
(273
)
Other comprehensive income
334

 
337

 
671

Balance as of May 31, 2016
$
(4,560
)
 
$
722

 
$
(3,838
)