Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32433 | |
Entity Registrant Name | PRESTIGE CONSUMER HEALTHCARE INC. | |
Entity Central Index Key | 0001295947 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1297589 | |
Entity Address, Address Line One | 660 White Plains Road | |
Entity Address, City or Town | Tarrytown | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10591 | |
City Area Code | 914 | |
Local Phone Number | 524-6800 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | PBH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,241,294 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||
Total revenues | $ 232,154 | $ 253,980 |
Cost of Sales | ||
Cost of sales excluding depreciation | 97,100 | 112,069 |
Cost of sales depreciation | 987 | 1,288 |
Cost of sales | 98,087 | 113,357 |
Gross profit | 134,067 | 140,623 |
Operating Expenses | ||
Advertising and promotion | 34,801 | 37,111 |
General and administrative | 21,706 | 23,941 |
Depreciation and amortization | 6,074 | 7,084 |
Total operating expenses | 62,581 | 68,136 |
Operating income | 71,486 | 72,487 |
Other (income) expense | ||
Interest income | (43) | (100) |
Interest expense | 25,063 | 26,040 |
Other expense, net | 416 | 87 |
Total other expense | 25,436 | 26,027 |
Income before income taxes | 46,050 | 46,460 |
Provision for income taxes | 12,125 | 11,994 |
Net income | $ 33,925 | $ 34,466 |
Earnings per share: | ||
Basic (in USD per share) | $ 0.66 | $ 0.65 |
Diluted (in USD per share) | $ 0.65 | $ 0.65 |
Weighted average shares outstanding: | ||
Basic (in shares) | 51,697 | 52,640 |
Diluted (in shares) | 52,047 | 52,942 |
Comprehensive income, net of tax: | ||
Currency translation adjustments | $ (224) | $ (2,974) |
Total other comprehensive loss | (224) | (2,974) |
Comprehensive income | 33,701 | 31,492 |
Net sales | ||
Revenues | ||
Total revenues | 232,133 | 253,954 |
Other revenues | ||
Revenues | ||
Total revenues | $ 21 | $ 26 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 29,042 | $ 27,530 |
Accounts receivable, net of allowance of $12,059 and $12,965, respectively | 142,927 | 148,787 |
Inventories | 129,388 | 119,880 |
Prepaid expenses and other current assets | 9,164 | 4,741 |
Total current assets | 310,521 | 300,938 |
Property, plant and equipment, net | 51,387 | 51,176 |
Operating lease right-of-use asset | 16,097 | 0 |
Goodwill | 578,309 | 578,583 |
Intangible assets, net | 2,501,358 | 2,507,210 |
Other long-term assets | 3,038 | 3,129 |
Total Assets | 3,460,710 | 3,441,036 |
Current liabilities | ||
Accounts payable | 62,109 | 56,560 |
Accrued interest payable | 13,937 | 9,756 |
Operating lease liabilities, current portion | 5,099 | 0 |
Other accrued liabilities | 62,346 | 60,663 |
Total current liabilities | 143,491 | 126,979 |
Long-term debt, net | 1,779,380 | 1,798,598 |
Deferred income tax liabilities | 403,750 | 399,575 |
Long-term operating lease liability, net of current portion | 12,526 | 0 |
Other long-term liabilities | 19,940 | 20,053 |
Total Liabilities | 2,359,087 | 2,345,205 |
Commitments and Contingencies — Note 16 | ||
Stockholders' Equity | ||
Preferred stock - $0.01 par value; Authorized - 5,000 shares; Issued and outstanding - None | 0 | 0 |
Common stock - $0.01 par value; Authorized - 250,000 shares; Issued - 53,741 shares at June 30, 2019 and 53,670 shares at March 31, 2019 | 537 | 536 |
Additional paid-in capital | 480,805 | 479,150 |
Treasury stock, at cost - 2,848 shares at June 30, 2019 and 1,871 shares at March 31, 2019 | (89,493) | (59,928) |
Accumulated other comprehensive loss, net of tax | (25,971) | (25,747) |
Retained earnings | 735,745 | 701,820 |
Total Stockholders' Equity | 1,101,623 | 1,095,831 |
Total Liabilities and Stockholders' Equity | $ 3,460,710 | $ 3,441,036 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 12,059 | $ 12,965 |
Stockholders' Equity: | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 53,741,000 | 53,670,000 |
Treasury stock (in shares) | 2,848,000 | 1,871,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) |
Equity, beginning balance at Mar. 31, 2018 | $ 1,178,610 | $ 534 | $ 468,783 | $ (7,669) | $ (19,315) | $ 736,277 |
Common stock, beginning balance (in shares) at Mar. 31, 2018 | 53,396,000 | |||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2018 | 353,000 | |||||
Stock-based compensation | 1,657 | 1,657 | ||||
Exercise of stock options | $ 880 | 880 | ||||
Exercise of stock options (in shares) | 32,800 | 33,000 | ||||
Issuance of shares related to restricted stock | $ 0 | $ 2 | (2) | |||
Issuance of shares related to restricted stock (in shares) | 174,000 | |||||
Treasury share repurchases | $ (52,259) | $ (52,259) | ||||
Treasury share repurchases (in shares) | 1,449,750 | 1,518,000 | ||||
Net income | $ 34,466 | 34,466 | ||||
Other comprehensive income (loss) | (2,974) | (2,974) | ||||
Equity, ending balance at Jun. 30, 2018 | 1,161,723 | $ 536 | 471,318 | $ (59,928) | (22,289) | 772,086 |
Common stock, ending balance (in shares) at Jun. 30, 2018 | 53,603,000 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2018 | 1,871,000 | |||||
Equity, beginning balance at Mar. 31, 2019 | $ 1,095,831 | $ 536 | 479,150 | $ (59,928) | (25,747) | 701,820 |
Common stock, beginning balance (in shares) at Mar. 31, 2019 | 53,670,000 | |||||
Treasury stock, beginning balance (in shares) at Mar. 31, 2019 | 1,871,000 | 1,871,000 | ||||
Stock-based compensation | $ 1,381 | 1,381 | ||||
Exercise of stock options | $ 275 | 275 | ||||
Exercise of stock options (in shares) | 9,300 | 9,000 | ||||
Issuance of shares related to restricted stock | $ 0 | $ 1 | (1) | |||
Issuance of shares related to restricted stock (in shares) | 62,000 | |||||
Treasury share repurchases | $ (29,565) | $ (29,565) | ||||
Treasury share repurchases (in shares) | 949,825 | 977,000 | ||||
Net income | $ 33,925 | 33,925 | ||||
Other comprehensive income (loss) | (224) | (224) | ||||
Equity, ending balance at Jun. 30, 2019 | $ 1,101,623 | $ 537 | $ 480,805 | $ (89,493) | $ (25,971) | $ 735,745 |
Common stock, ending balance (in shares) at Jun. 30, 2019 | 53,741,000 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2019 | 2,848,000 | 2,848,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities | ||
Net income | $ 33,925 | $ 34,466 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,061 | 8,372 |
Loss on disposal of property and equipment | 20 | 1 |
Deferred income taxes | 4,206 | 6,755 |
Amortization of debt origination costs | 851 | 920 |
Stock-based compensation costs | 1,381 | 1,657 |
Non-cash operating lease cost | 1,338 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,808 | (4,357) |
Inventories | (8,939) | (9,303) |
Prepaid expenses and other current assets | (4,335) | 623 |
Accounts payable | 5,306 | 16,479 |
Accrued liabilities | 7,616 | 347 |
Operating lease liabilities | (1,368) | 0 |
Other | (93) | (108) |
Net cash provided by operating activities | 52,777 | 55,852 |
Investing Activities | ||
Purchases of property, plant and equipment | (1,956) | (2,469) |
Net cash used in investing activities | (1,956) | (2,469) |
Financing Activities | ||
Borrowings under revolving credit agreement | 15,000 | 20,000 |
Repayments under revolving credit agreement | (35,000) | (20,000) |
Proceeds from exercise of stock options | 275 | 880 |
Fair value of shares surrendered as payment of tax withholding | (799) | (2,281) |
Repurchase of common stock | (28,766) | (49,978) |
Net cash used in financing activities | (49,290) | (51,379) |
Effects of exchange rate changes on cash and cash equivalents | (19) | (283) |
Increase in cash and cash equivalents | 1,512 | 1,721 |
Cash and cash equivalents - beginning of period | 27,530 | 32,548 |
Cash and cash equivalents - end of period | 29,042 | 34,269 |
Interest paid | 19,966 | 20,907 |
Income taxes paid | $ 1,807 | $ 334 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Nature of Business Prestige Consumer Healthcare Inc. (referred to herein as the “Company” or “we,” which reference shall, unless the context requires otherwise, be deemed to refer to Prestige Consumer Healthcare Inc. and all of its direct and indirect 100% owned subsidiaries on a consolidated basis) is engaged in the development, manufacturing, marketing, sales and distribution of over-the-counter (“OTC”) healthcare and household cleaning products (prior to the sale of our Household Cleaning segment, as discussed in Note 2) to mass merchandisers and drug, food, dollar, convenience and club stores and e-commerce channels in North America (the United States and Canada), and in Australia and certain other international markets. Prestige Consumer Healthcare Inc. is a holding company with no operations and is also the parent guarantor of the senior credit facility and the senior notes described in Note 8. Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31 st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2020 ) mean our fiscal year ending or ended on March 31 st of that year. Operating results for the three months ended June 30, 2019 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2020 . These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. Our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence, and accounting for income taxes and related uncertain tax positions. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update amends a number of aspects of lease accounting, including requiring lessees to recognize all leases with a term greater than one year as a right-of-use ("ROU") asset and corresponding lease liability, measured at the present value of the lease payments. On April 1, 2019, we adopted Topic 842 using the modified retrospective approach. Results for the three months ended June 30, 2019 are presented under Topic 842. No prior period amounts were adjusted and the prior period continues to be reported in accordance with previous lease guidance, ASC Topic 840, Leases . The new standard provides a number of optional practical expedients in transition. We elected the package of transition provisions available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The effects of this recently adopted accounting pronouncement to our Consolidated Balance Sheet as of April 1, 2019 are as follows: (In thousands) March 31, 2019 New Lease Standard Adjustment April 1, 2019 Assets: Operating lease ROU assets $ — $ 17,435 $ 17,435 Liabilities: Operating lease liabilities, current portion $ — $ (5,697 ) $ (5,697 ) Long-term operating lease liabilities, net of current portion $ — $ (13,296 ) $ (13,296 ) Other accrued liabilities (1) $ (60,663 ) $ 1,558 $ (59,105 ) (1) Relates to deferred rent and exit costs associated with existing leases. Adoption of this accounting pronouncement had no impact on our other financial statements. See Note 6 for our lease accounting policy. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by eliminating certain required disclosures and incorporating others. The amendments are effective for public companies for fiscal years ending after December 15, 2020. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements in Topic 820, with a particular focus on Level 3 investments, by eliminating certain required disclosures and incorporating others. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . The amendments in this update provide financial statement users with more useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These amendments clarify and improve areas of guidance related to recently issued standards on the topics of credit losses, hedging and recognition and measurements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , which provides entities that have certain instruments an option to irrevocably elect the fair value option in Subtopic 825-10. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements. |
Divestitures
Divestitures | 3 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On July 2, 2018, we sold the Comet®, Spic and Span®, Chore Boy®, Chlorinol® and Cinch® brands, as well as associated inventory. These brands represented our Household Cleaning segment. As a result of this transaction, we received proceeds of approximately $65.9 million and recorded a pre-tax gain on sale of $1.3 million |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (In thousands) June 30, 2019 March 31, 2019 Components of Inventories Packaging and raw materials $ 14,367 $ 17,082 Work in process 342 161 Finished goods 114,679 102,637 Inventories $ 129,388 $ 119,880 Inventories are carried and depicted above at the lower of cost or net realizable value, which includes a reduction in inventory values of $5.6 million and $5.5 million at June 30, 2019 and March 31, 2019 |
Goodwill
Goodwill | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2019 Goodwill $ 711,104 $ 31,190 $ 742,294 Accumulated impairment loss (163,711 ) — (163,711 ) Balance - March 31, 2019 547,393 31,190 578,583 2020 Reductions: Effects of foreign currency exchange rates — (274 ) (274 ) Balance - June 30, 2019 Goodwill 711,104 30,916 742,020 Accumulated impairment loss (163,711 ) — (163,711 ) Balance - June 30, 2019 $ 547,393 $ 30,916 $ 578,309 Under accounting guidelines, goodwill is not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below the carrying amount. On an annual basis during the fourth quarter of each fiscal year, or more frequently if conditions indicate that the carrying value of the asset may not be recoverable, management performs a review of the values assigned to goodwill and tests for impairment. The date of our annual impairment review was February 28, 2019 , and we recorded impairment charges in our March 31, 2019 financial statements. We utilize the discounted cash flow method to estimate the fair value of our reporting units as part of the goodwill impairment test. We also considered our market capitalization at February 28, 2019 , which was the date of our annual review, as compared to the aggregate fair values of our reporting units, to assess the reasonableness of our estimates pursuant to the discounted cash flow methodology. The estimates and assumptions made in assessing the fair value of our reporting units and the valuation of the underlying assets and liabilities are inherently subject to significant uncertainties. Consequently, changing rates of interest and inflation, declining sales or margins, increasing competition, changing consumer preferences, technical advances, or reductions in advertising and promotion may require an additional impairment charge to be recorded in the future. As of June 30, 2019 , no events have occurred that would indicate further potential impairment of goodwill. |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Lived Trademarks Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Effects of foreign currency exchange rates (897 ) (63 ) (960 ) Balance — June 30, 2019 2,272,294 390,220 2,662,514 Accumulated Amortization Balance — March 31, 2019 — 156,264 156,264 Additions — 4,906 4,906 Effects of foreign currency exchange rates — (14 ) (14 ) Balance — June 30, 2019 — 161,156 161,156 Intangible assets, net - June 30, 2019 $ 2,272,294 $ 229,064 $ 2,501,358 Amortization expense was $4.9 million for the three months ended June 30, 2019 , and $5.8 million for the three months ended June 30, 2018 . Based on our amortizable intangible assets as of June 30, 2019 , amortization expense is expected to be approximately $14.7 million for the remainder of fiscal 2020 , $19.6 million in each of fiscal 2021 , 2022 , 2023 and 2024 and $135.9 million thereafter. Under accounting guidelines, indefinite-lived assets are not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below the carrying amount. The date of our annual impairment review was February 28, 2019 , and we recorded impairment charges in our March 31, 2019 financial statements. Additionally, at each reporting period, an evaluation must be made to determine whether events and circumstances continue to support an indefinite useful life. Intangible assets with finite lives are amortized over their respective estimated useful lives and are also tested for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and exceeds its fair value. We utilize the excess earnings method to estimate the fair value of our individual indefinite-lived intangible assets. The discount rate utilized in the analyses, as well as future cash flows, may be influenced by such factors as changes in interest rates and rates of inflation. Additionally, should the related fair values of intangible assets be adversely affected as a result of declining sales or margins caused by competition, changing consumer preferences, technological advances or reductions in advertising and promotional expenses, we may be required to record additional impairment charges in the future. As of June 30, 2019 |
Leases
Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease real estate and equipment for use in our operations. These leases have lease terms of 1 to 10 years, some of which include options to terminate or extend leases for up to 1 to 6 years or on a month-to-month basis. The exercise of lease renewal options is at our sole discretion and our lease right-of-use assets and liabilities reflect only the options we are reasonably certain that we will exercise. We determine if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether we have the right to control the identified asset. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable. Variable lease payments, which do not vary based on an index or rate, are excluded from the ROU asset and lease liability determination. Variable lease payments are typically usage-based and are recorded in the period in which the obligation for those payments is incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the implicit rate in our leases is unknown, we used our incremental borrowing rate based on the information available at the date of adoption for existing leases and at the lease commencement date for new leases in determining the present value of future lease payments. We give consideration to our credit risk, term of the lease, total lease payments and adjust for the impacts of collateral, as necessary, when calculating our incremental borrowing rates. Rent expense for our operating leases is recognized on a straight-line basis over the lease term. For the measurement and classification of our lease agreements, we group lease and non-lease components into a single lease component for all underlying asset classes. We have also elected to exclude any leases within our existing classes of assets with a term of twelve months or less. The components of lease expense for the three months ended June 30, 2019 was as follows: (In thousands) Operating lease cost $ 1,216 Short term lease cost 23 Variable lease cost 16,599 Sublease income (914 ) Total net lease cost $ 16,924 As of June 30, 2019 , the maturities of operating lease liabilities were as follows: (In thousands) Year Ending March 31, 2020 (Remaining nine months ending March 31, 2020) $ 4,577 2021 3,450 2022 2,488 2023 1,794 2024 1,705 Thereafter 6,761 Total undiscounted lease payments 20,775 Less imputed interest (3,150 ) Total present value of lease payments $ 17,625 As of June 30, 2019 , the weighted average remaining lease term was 6.24 years and the weighted average discount rate used to determine the operating lease liability was 5.21% . The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of ASC 842: (In thousands) Facilities Equipment Total Year Ending March 31, 2020 $ 2,828 $ 314 $ 3,142 2021 2,633 248 2,881 2022 2,265 213 2,478 2023 1,684 105 1,789 2024 1,705 — 1,705 Thereafter 6,780 — 6,780 $ 17,895 $ 880 $ 18,775 On May 13, 2019, we entered into a Master Logistics Services Agreement with GEODIS Logistics LLC (“GEODIS”), pursuant to which GEODIS will serve as a new third party logistics provider. The agreement will have an initial term of five years with an option to renew for an additional five year term. Under the Master Logistics Services Agreement, we have authorized GEODIS to lease a facility under a five year term. The lease commenced in July 2019 and the lease and non-lease components will be recorded in our second quarter fiscal year 2020 financial statements. The right-of-use asset and operating lease liability at lease commencement was approximately $20.5 million . |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following: (In thousands) June 30, 2019 March 31, 2019 Accrued marketing costs $ 31,886 $ 31,228 Accrued compensation costs 5,701 10,958 Accrued broker commissions 1,057 1,361 Income taxes payable 5,640 88 Accrued professional fees 2,284 2,441 Accrued production costs 9,252 6,788 Other accrued liabilities 6,526 7,799 $ 62,346 $ 60,663 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt At June 30, 2019 , we had $55.0 million outstanding on the asset-based revolving credit facility entered into January 31, 2012, as amended (the "2012 ABL Revolver") and an additional borrowing capacity of $102.7 million . Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) June 30, 2019 March 31, 2019 2016 Senior Notes bearing interest at 6.375%, with interest payable on March 1 and September 1 of each year. The 2016 Senior Notes mature on March 1, 2024. $ 600,000 $ 600,000 2013 Senior Notes bearing interest at 5.375%, with interest payable on June 15 and December 15 of each year. The 2013 Senior Notes mature on December 15, 2021. 400,000 400,000 2012 Term B-5 Loans bearing interest at the Borrower's option at either LIBOR plus a margin of 2.00%, with a LIBOR floor of 0.00%, or an alternate base rate plus a margin of 1.00%, with a floor of 1.00%, due on January 26, 2024. 738,000 738,000 2012 ABL Revolver bearing interest at the Borrower's option at either a base rate plus applicable margin or LIBOR plus applicable margin. Any unpaid balance is due on January 26, 2022. 55,000 75,000 Long-term debt 1,793,000 1,813,000 Less: unamortized debt costs (13,620 ) (14,402 ) Long-term debt, net $ 1,779,380 $ 1,798,598 As of June 30, 2019 , aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans, 2012 ABL Revolver and the indentures governing the 6.375% senior unsecured notes due 2024 (the "2016 Senior Notes") and the 5.375% senior unsecured notes due 2021 (the "2013 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2020 (remaining nine months ending March 31, 2020) $ — 2021 — 2022 455,000 2023 — 2024 1,338,000 Thereafter — $ 1,793,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For certain of our financial instruments, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their respective fair values due to the relatively short maturity of these amounts. FASB ASC 820, Fair Value Measurements , requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market assuming an orderly transaction between market participants. ASC 820 established market (observable inputs) as the preferred source of fair value, to be followed by our assumptions of fair value based on hypothetical transactions (unobservable inputs) in the absence of observable market inputs. Based upon the above, the following fair value hierarchy was created: Level 1 - Quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, as well as quoted prices for identical or similar instruments in markets that are not considered active; and Level 3 - Unobservable inputs developed by us using estimates and assumptions reflective of those that would be utilized by a market participant. The market values have been determined based on market values for similar instruments adjusted for certain factors. As such, the 2016 Senior Notes, the 2013 Senior Notes, the 2012 Term B-5 Loans, and the 2012 ABL Revolver are measured in Level 2 of the above hierarchy. See summary below detailing the carrying amounts and estimated fair values of these borrowings at June 30, 2019 and March 31, 2019 . June 30, 2019 March 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2016 Senior Notes $ 600,000 $ 627,000 $ 600,000 $ 606,000 2013 Senior Notes 400,000 403,000 400,000 401,500 2012 Term B-5 Loans 738,000 733,388 738,000 728,775 2012 ABL Revolver 55,000 55,000 75,000 75,000 At June 30, 2019 and March 31, 2019 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity We are authorized to issue 250.0 million shares of common stock, $0.01 par value per share, and 5.0 million shares of preferred stock, $0.01 par value per share. The Board of Directors may direct the issuance of the undesignated preferred stock in one or more series and determine preferences, privileges and restrictions thereof. Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to prior rights of holders of all classes of outstanding stock having priority rights as to dividends. No dividends have been declared or paid on our common stock through June 30, 2019 . During the three months ended June 30, 2019 and 2018 , we repurchased 26,264 shares and 68,939 shares, respectively, of common stock from our employees pursuant to the provisions of various employee restricted stock awards. The repurchases for the three months ended June 30, 2019 and 2018 were at an average price of $30.44 and $33.09 , respectively. All of the repurchased shares have been recorded as treasury stock. During the three months ended June 30, 2019 and 2018 , we also repurchased 949,825 shares and 1,449,750 shares, respectively, of our common stock in conjunction with our share repurchase program. The repurchases for the three months ended June 30, 2019 and 2018 were at an average price of $30.29 and $34.47 , respectively and totaled $28.8 million and $50.0 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following at June 30, 2019 and March 31, 2019 : (In thousands) June 30, 2019 March 31, 2019 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (27,102 ) $ (26,878 ) Unrecognized net gain on pension plans 1,131 1,131 Accumulated other comprehensive loss, net of tax $ (25,971 ) $ (25,747 ) As of June 30, 2019 and March 31, 2019 , no |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed based on income available to common stockholders and the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on income available to common stockholders and the weighted average number of shares of common stock outstanding plus the effect of potentially dilutive common shares outstanding during the period using the treasury stock method, which includes stock options and restricted stock units ("RSUs"). Potential common shares, composed of the incremental common shares issuable upon the exercise of outstanding stock options and nonvested RSUs, are included in the diluted earnings per share calculation to the extent that they are dilutive. In loss periods, the assumed exercise of in-the-money stock options and RSUs has an anti-dilutive effect, and therefore these instruments are excluded from the computation of diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, (In thousands, except per share data) 2019 2018 Numerator Net income $ 33,925 $ 34,466 Denominator Denominator for basic earnings per share — weighted average shares outstanding 51,697 52,640 Dilutive effect of nonvested restricted stock units and options issued to employees and directors 350 302 Denominator for diluted earnings per share 52,047 52,942 Earnings per Common Share: Basic earnings per share $ 0.66 $ 0.65 Diluted earnings per share $ 0.65 $ 0.65 For the three months ended June 30, 2019 and 2018 , there were 1.0 million and 0.8 million |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation In connection with our initial public offering, the Board of Directors adopted the 2005 Long-Term Equity Incentive Plan (the “Plan”), which provides for grants of up to a maximum of 5.0 million shares of restricted stock, stock options, RSUs and other equity-based awards. In June 2014, the Board of Directors approved, and in July 2014, our stockholders ratified, an increase of an additional 1.8 million shares of our common stock for issuance under the Plan, an increase of the maximum number of shares subject to stock options that may be awarded to any one participant under the Plan during any fiscal 12-month period from 1.0 million to 2.5 million shares, and an extension of the term of the Plan by ten years, to February 2025. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing services for the Company, are eligible for grants under the Plan. During the three months ended June 30, 2019 and 2018 , pre-tax share-based compensation costs charged against income were $1.4 million and $1.7 million , respectively, and the related income tax recognized was a benefit of $0.2 million and a benefit of $0.2 million , respectively. At June 30, 2019 , there were $11.0 million of unrecognized compensation costs related to nonvested share-based compensation arrangements under the Plan, based on management's estimate of the shares that will ultimately vest. We expect to recognize such costs over a weighted average period of 1.1 years. The total fair value of options and RSUs vested during the three months ended June 30, 2019 and 2018 was $6.1 million and $10.7 million , respectively. For the three months ended June 30, 2019 and 2018 , we received cash from the exercise of stock options of $0.3 million and $0.9 million , respectively. For the three months ended June 30, 2019 and 2018 , we realized $0.4 million and $1.2 million , respectively, in tax benefits from the tax deductions resulting from RSU issuances and stock option exercises. At June 30, 2019 , there were 1.4 million shares available for issuance under the Plan. On May 6, 2019, the Compensation and Talent Management Committee of our Board of Directors granted 98,644 performance stock units, 89,286 RSUs and stock options to acquire 281,487 shares of our common stock to certain executive officers and employees under the Plan. The stock options were granted at an exercise price of $30.56 per share, which was equal to the closing price for our common stock on the date of the grant. On May 13, 2019, the Compensation and Talent Management Committee of our Board of Directors granted 7,287 RSUs and stock options to acquire 21,194 shares of our common stock to a recently hired executive officer under the Plan. The stock options were granted at an exercise price of $30.19 per share, which was equal to the closing price for our common stock on the date of the grant. Restricted Stock Units RSUs granted to employees under the Plan generally vest in three years, primarily upon the attainment of certain time vesting thresholds, and, in the case of performance share units, may also be contingent on the attainment of certain performance goals of the Company, including revenue and earnings before income taxes, depreciation and amortization targets. The RSUs provide for accelerated vesting if there is a change of control, as defined in the Plan. The RSUs granted to employees generally vest either ratably over three years or in their entirety on the three -year anniversary of the date of the grant. Upon vesting, the units will be settled in shares of our common stock. Termination of employment prior to vesting will result in forfeiture of the RSUs, unless otherwise accelerated by the Compensation and Talent Management Committee or, in the case of RSUs granted in May 2017, 2018 and 2019, subject to pro-rata vesting in the event of death, disability or retirement. The RSUs granted to directors prior to fiscal 2020 vest immediately upon grant, and will be settled by delivery to the director of one share of our common stock for each vested RSU promptly following the earliest of the (i) director's death, (ii) director's disability or (iii) six -month anniversary of the date on which the director's Board membership ceases for reasons other than death or disability. See Note 19 for a description of RSUs granted to directors in July 2019. The fair value of the RSUs is determined using the closing price of our common stock on the date of the grant. A summary of the RSUs granted under the Plan is presented below: RSUs Shares (in thousands) Weighted Average Grant-Date Fair Value Three Months Ended June 30, 2018 Vested and nonvested at March 31, 2018 393.5 $ 44.13 Granted 203.8 29.46 Vested and issued (173.4 ) 43.00 Forfeited (31.1 ) 48.32 Vested and nonvested at June 30, 2018 392.8 36.68 Vested at June 30, 2018 90.5 29.88 Three Months Ended June 30, 2019 Vested and nonvested at March 31, 2019 413.0 $ 36.58 Granted 195.2 30.55 Vested and issued (61.8 ) 48.04 Forfeited (25.2 ) 36.85 Vested and nonvested at June 30, 2019 521.2 32.94 Vested at June 30, 2019 113.2 31.05 Options The Plan provides that the exercise price of options granted shall be no less than the fair market value of our common stock on the date the options are granted. Options granted have a term of no greater than ten years from the date of grant and vest in accordance with a schedule determined at the time the option is granted, generally three to five years. The option awards provide for accelerated vesting in the event of a change in control, as defined in the Plan. Except in the case of death, disability or retirement, termination of employment prior to vesting will result in forfeiture of the nonvested stock options. Vested stock options will remain exercisable by the employee after termination of employment, subject to the terms in the Plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions noted in the table below. Expected volatilities are based on the historical volatility of our common stock and other factors, including the historical volatilities of comparable companies. We use appropriate historical data, as well as current data, to estimate option exercise and employee termination behaviors. Employees that are expected to exhibit similar exercise or termination behaviors are grouped together for the purposes of valuation. The expected terms of the options granted are derived from our historical experience, management's estimates, and consideration of information derived from the public filings of companies similar to us, and represent the period of time that options granted are expected to be outstanding. The risk-free rate represents the yield on U.S. Treasury bonds with a maturity equal to the expected term of the granted options. The weighted average grant-date fair values of the options granted during the three months ended June 30, 2019 and 2018 were $10.83 and $10.22 , respectively. Three Months Ended June 30, 2019 2018 Expected volatility 30.9% - 31.3% 29.6 % Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 Risk-free rate 2.3% to 2.4% 2.9 % A summary of option activity under the Plan is as follows: Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Three Months Ended June 30, 2018 Outstanding at March 31, 2018 873.2 $ 41.79 Granted 294.5 29.46 Exercised (32.8 ) 26.81 Forfeited or expired (72.7 ) 45.00 Outstanding at June 30, 2018 1,062.2 38.61 7.6 $ 6,573 Vested at June 30, 2018 599.8 37.99 6.2 $ 4,054 Three Months Ended June 30, 2019 Outstanding at March 31, 2019 944.6 $ 38.45 Granted 302.7 30.53 Exercised (9.3 ) 29.46 Forfeited or expired (95.9 ) 42.62 Outstanding at June 30, 2019 1,142.1 36.07 7.5 $ 2,540 Vested at June 30, 2019 628.6 38.70 6.0 $ 2,206 The aggregate intrinsic value of options exercised during the three months ended June 30, 2019 was less than $0.1 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes are recorded in our quarterly financial statements based on our estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur. The effective rates used in the calculation of income taxes were 26.3% and 25.8% for the three months ended June 30, 2019 and 2018 , respectively. The increase in the effective tax rate for the three months ended June 30, 2019 versus the prior year period was primarily related to discrete items arising from stock compensation. |
Employee Retirement Plans
Employee Retirement Plans | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Retirement Plans | Employee Retirement Plans The primary components of Net Periodic Benefits consist of the following: Three Months Ended June 30, (In thousands) 2019 2018 Interest cost $ 577 $ 610 Expected return on assets (721 ) (768 ) Net periodic benefit income $ (144 ) $ (158 ) During the three months ended June 30, 2019 , we contributed $0.1 million to our non-qualified defined benefit plan and made no contributions to the qualified defined benefit plan. During the remainder of fiscal 2020 , we expect to contribute an additional $0.3 million to our non-qualified plan and make a $1.0 million contribution to the qualified plan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are involved from time to time in legal matters and other claims incidental to our business. We review outstanding claims and proceedings internally and with external counsel as necessary to assess the probability and amount of a potential loss. These assessments are re-evaluated at each reporting period and as new information becomes available to determine whether a reserve should be established or if any existing reserve should be adjusted. The actual cost of resolving a claim or proceeding ultimately may be substantially different than the amount of the recorded reserve. In addition, because it is not permissible under GAAP to establish a litigation reserve until the loss is both probable and estimable, in some cases there may be insufficient time to establish a reserve prior to the actual incurrence of the loss (upon verdict and judgment at trial, for example, or in the case of a quickly negotiated settlement). We believe the resolution of routine legal matters and other claims incidental to our business, taking our reserves into account, will not have a material adverse effect on our business, financial condition, or results of operations. |
Concentrations of Risk
Concentrations of Risk | 3 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our revenues are concentrated in the area of OTC Healthcare. We sell our products to mass merchandisers and drug, food, dollar, convenience and club stores and e-commerce channels. During the three months ended June 30, 2019 and 2018 , approximately 44.1% and 42.6% , respectively, of our gross revenues were derived from our five top selling brands. One customer, Walmart accounted for more than 10% of our gross revenues for each of the periods presented. Walmart accounted for approximately 24.2% and 24.6% , respectively, of our gross revenues for the three months ended June 30, 2019 and 2018 , respectively. The gross revenues for Walmart are included in our North American OTC Healthcare segment and Household Cleaning segment (prior to the sale of our Household Cleaning segment on July 2, 2018). Our product distribution in the United States is currently managed by a third party through one primary distribution center near St. Louis, Missouri, and we operate one manufacturing facility for certain of our products located in Lynchburg, Virginia. On May 13, 2019, we entered into an agreement with a second third party logistics provider for a warehouse, and we intend to transition to this facility, which will be managed by a new logistics provider. A serious disruption, caused by performance or contractual issues with a third party distribution manager or by earthquake, flood, or fire, could damage our inventory and/or materially impair our ability to distribute our products to customers in a timely manner or at a reasonable cost. Any disruption as a result of business integration, transition of our distribution center to the new third party manager or new location, or third party performance at our distribution centers could result in increased costs, expense and/or shipping times, and could cause us to incur customer fees and penalties. In addition, any serious disruption to our Lynchburg manufacturing facility could materially impair our ability to manufacture many of the products associated with our acquisition of C.B. Fleet Company, Inc. ("Fleet"), which would also limit our ability to provide those products to customers in a timely manner or at a reasonable cost. We could also incur significantly higher costs and experience longer lead times if we need to replace our distribution centers, the third party distribution managers or the manufacturing facility. As a result, any serious disruption could have a material adverse effect on our business, financial condition and results of operations. At June 30, 2019 , we had relationships with 113 third party manufacturers. Of those, we had long-term contracts with 30 manufacturers that produced items that accounted for approximately 67.1% of gross sales for the three months ended June 30, 2019 . At June 30, 2018 , we had relationships with 116 third party manufacturers. Of those, we had long-term contracts with 38 manufacturers that produced items that accounted for approximately 61.9% of gross sales for the three months ended June 30, 2018 . The fact that we do not have long-term contracts with certain manufacturers means that they could cease manufacturing our products at any time and for any reason or initiate arbitrary and costly price increases, which could have a material adverse effect on our business and results of operations. Although we are continually in the process of negotiating long-term contracts with certain key manufacturers, we may not be able to reach a timely agreement, which could have a material adverse effect on our business and results of operations. |
Business Segments
Business Segments | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Segment information has been prepared in accordance with the Segment Reporting topic of the FASB ASC 280. Our current reportable segments consist of (i) North American OTC Healthcare and (ii) International OTC Healthcare. We sold our Household Cleaning segment on July 2, 2018; see Note 2 for further information. We evaluate the performance of our operating segments and allocate resources to these segments based primarily on contribution margin, which we define as gross profit less advertising and promotional expenses. The tables below summarize information about our reportable segments. Three Months Ended June 30, 2019 (In thousands) North American OTC International OTC Household Cleaning Consolidated Total segment revenues* $ 210,784 $ 21,370 $ — $ 232,154 Cost of sales 88,811 9,276 — 98,087 Gross profit 121,973 12,094 — 134,067 Advertising and promotion 31,014 3,787 — 34,801 Contribution margin $ 90,959 $ 8,307 $ — 99,266 Other operating expenses 27,780 Operating income 71,486 Other expense 25,436 Income before income taxes 46,050 Provision for income taxes 12,125 Net income $ 33,925 * Intersegment revenues of $0.8 million were eliminated from the North American OTC Healthcare segment. Three Months Ended June 30, 2018 (In thousands) North American OTC International OTC Household Cleaning Consolidated Total segment revenues* $ 214,775 $ 19,394 $ 19,811 $ 253,980 Cost of sales 89,153 7,616 16,588 113,357 Gross profit 125,622 11,778 3,223 140,623 Advertising and promotion 33,258 3,423 430 37,111 Contribution margin $ 92,364 $ 8,355 $ 2,793 103,512 Other operating expenses 31,025 Operating income 72,487 Other expense 26,027 Income before income taxes 46,460 Benefit for income taxes 11,994 Net income $ 34,466 * Intersegment revenues of $2.7 million were eliminated from the North American OTC Healthcare segment. The tables below summarize information about our segment revenues from similar product groups. Three Months Ended June 30, 2019 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 28,535 $ 230 $ — $ 28,765 Cough & Cold 17,340 5,382 — 22,722 Women's Health 59,578 2,419 — 61,997 Gastrointestinal 31,572 6,985 — 38,557 Eye & Ear Care 26,753 3,011 — 29,764 Dermatologicals 25,738 690 — 26,428 Oral Care 19,979 2,652 — 22,631 Other OTC 1,289 1 — 1,290 Household Cleaning — — — — Total segment revenues $ 210,784 $ 21,370 $ — $ 232,154 Three Months Ended June 30, 2018 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 28,258 $ 157 $ — $ 28,415 Cough & Cold 16,214 5,171 — 21,385 Women's Health 63,477 2,257 — 65,734 Gastrointestinal 32,799 5,990 — 38,789 Eye & Ear Care 25,472 2,619 — 28,091 Dermatologicals 25,122 532 — 25,654 Oral Care 22,197 2,667 — 24,864 Other OTC 1,236 1 — 1,237 Household Cleaning — — 19,811 19,811 Total segment revenues $ 214,775 $ 19,394 $ 19,811 $ 253,980 Our total segment revenues by geographic area are as follows: Three Months Ended June 30, 2019 2018 United States $ 200,629 $ 223,477 Rest of world 31,525 30,503 Total $ 232,154 $ 253,980 Our consolidated goodwill and intangible assets have been allocated to the reportable segments as follows: June 30, 2019 North American OTC International OTC Consolidated (In thousands) Goodwill $ 547,393 $ 30,916 $ 578,309 Intangible assets Indefinite-lived 2,195,617 76,677 2,272,294 Finite-lived, net 223,961 5,103 229,064 Intangible assets, net 2,419,578 81,780 2,501,358 Total $ 2,966,971 $ 112,696 $ 3,079,667 March 31, 2019 North American OTC International OTC Consolidated (In thousands) Goodwill $ 547,393 $ 31,190 $ 578,583 Intangible assets Indefinite-lived 2,195,617 77,574 2,273,191 Finite-lived, net 228,743 5,276 234,019 Intangible assets, net 2,424,360 82,850 2,507,210 Total $ 2,971,753 $ 114,040 $ 3,085,793 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Director Equity Grants Pursuant to the Plan, each of the independent members of the Board of Directors received a grant of 4,183 RSUs on July 30, 2019. The RSUs are fully vested upon receipt of the award and will be settled by delivery to the director of one share of our common stock for each vested RSU promptly following the earliest of (i) the director's death, (ii) the director's separation from service or (iii) a change in control of the Company. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31 st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2020 ) mean our fiscal year ending or ended on March 31 st of that year. Operating results for the three months ended June 30, 2019 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2020 . These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. Our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence, and accounting for income taxes and related uncertain tax positions. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update amends a number of aspects of lease accounting, including requiring lessees to recognize all leases with a term greater than one year as a right-of-use ("ROU") asset and corresponding lease liability, measured at the present value of the lease payments. On April 1, 2019, we adopted Topic 842 using the modified retrospective approach. Results for the three months ended June 30, 2019 are presented under Topic 842. No prior period amounts were adjusted and the prior period continues to be reported in accordance with previous lease guidance, ASC Topic 840, Leases . The new standard provides a number of optional practical expedients in transition. We elected the package of transition provisions available for expired or existing contracts, which allowed us to carryforward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The effects of this recently adopted accounting pronouncement to our Consolidated Balance Sheet as of April 1, 2019 are as follows: (In thousands) March 31, 2019 New Lease Standard Adjustment April 1, 2019 Assets: Operating lease ROU assets $ — $ 17,435 $ 17,435 Liabilities: Operating lease liabilities, current portion $ — $ (5,697 ) $ (5,697 ) Long-term operating lease liabilities, net of current portion $ — $ (13,296 ) $ (13,296 ) Other accrued liabilities (1) $ (60,663 ) $ 1,558 $ (59,105 ) (1) Relates to deferred rent and exit costs associated with existing leases. Adoption of this accounting pronouncement had no impact on our other financial statements. See Note 6 for our lease accounting policy. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by eliminating certain required disclosures and incorporating others. The amendments are effective for public companies for fiscal years ending after December 15, 2020. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements in Topic 820, with a particular focus on Level 3 investments, by eliminating certain required disclosures and incorporating others. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . The amendments in this update provide financial statement users with more useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These amendments clarify and improve areas of guidance related to recently issued standards on the topics of credit losses, hedging and recognition and measurements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief , which provides entities that have certain instruments an option to irrevocably elect the fair value option in Subtopic 825-10. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements. |
Business and Basis of Present_3
Business and Basis of Presentation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Recently Adopted Accounting Pronouncement | The effects of this recently adopted accounting pronouncement to our Consolidated Balance Sheet as of April 1, 2019 are as follows: (In thousands) March 31, 2019 New Lease Standard Adjustment April 1, 2019 Assets: Operating lease ROU assets $ — $ 17,435 $ 17,435 Liabilities: Operating lease liabilities, current portion $ — $ (5,697 ) $ (5,697 ) Long-term operating lease liabilities, net of current portion $ — $ (13,296 ) $ (13,296 ) Other accrued liabilities (1) $ (60,663 ) $ 1,558 $ (59,105 ) (1) Relates to deferred rent and exit costs associated with existing leases. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: (In thousands) June 30, 2019 March 31, 2019 Components of Inventories Packaging and raw materials $ 14,367 $ 17,082 Work in process 342 161 Finished goods 114,679 102,637 Inventories $ 129,388 $ 119,880 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of the Activity Affecting Goodwill | A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2019 Goodwill $ 711,104 $ 31,190 $ 742,294 Accumulated impairment loss (163,711 ) — (163,711 ) Balance - March 31, 2019 547,393 31,190 578,583 2020 Reductions: Effects of foreign currency exchange rates — (274 ) (274 ) Balance - June 30, 2019 Goodwill 711,104 30,916 742,020 Accumulated impairment loss (163,711 ) — (163,711 ) Balance - June 30, 2019 $ 547,393 $ 30,916 $ 578,309 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of the Activity Affecting Finite Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Lived Trademarks Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Effects of foreign currency exchange rates (897 ) (63 ) (960 ) Balance — June 30, 2019 2,272,294 390,220 2,662,514 Accumulated Amortization Balance — March 31, 2019 — 156,264 156,264 Additions — 4,906 4,906 Effects of foreign currency exchange rates — (14 ) (14 ) Balance — June 30, 2019 — 161,156 161,156 Intangible assets, net - June 30, 2019 $ 2,272,294 $ 229,064 $ 2,501,358 |
Reconciliation of the Activity Affecting Indefinite Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Lived Trademarks Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Effects of foreign currency exchange rates (897 ) (63 ) (960 ) Balance — June 30, 2019 2,272,294 390,220 2,662,514 Accumulated Amortization Balance — March 31, 2019 — 156,264 156,264 Additions — 4,906 4,906 Effects of foreign currency exchange rates — (14 ) (14 ) Balance — June 30, 2019 — 161,156 161,156 Intangible assets, net - June 30, 2019 $ 2,272,294 $ 229,064 $ 2,501,358 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three months ended June 30, 2019 was as follows: (In thousands) Operating lease cost $ 1,216 Short term lease cost 23 Variable lease cost 16,599 Sublease income (914 ) Total net lease cost $ 16,924 |
Maturities of Operating Leases | As of June 30, 2019 , the maturities of operating lease liabilities were as follows: (In thousands) Year Ending March 31, 2020 (Remaining nine months ending March 31, 2020) $ 4,577 2021 3,450 2022 2,488 2023 1,794 2024 1,705 Thereafter 6,761 Total undiscounted lease payments 20,775 Less imputed interest (3,150 ) Total present value of lease payments $ 17,625 |
Future Minimum Rental Payments for Operating Leases Under Prior Guidance | The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of ASC 842: (In thousands) Facilities Equipment Total Year Ending March 31, 2020 $ 2,828 $ 314 $ 3,142 2021 2,633 248 2,881 2022 2,265 213 2,478 2023 1,684 105 1,789 2024 1,705 — 1,705 Thereafter 6,780 — 6,780 $ 17,895 $ 880 $ 18,775 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (In thousands) June 30, 2019 March 31, 2019 Accrued marketing costs $ 31,886 $ 31,228 Accrued compensation costs 5,701 10,958 Accrued broker commissions 1,057 1,361 Income taxes payable 5,640 88 Accrued professional fees 2,284 2,441 Accrued production costs 9,252 6,788 Other accrued liabilities 6,526 7,799 $ 62,346 $ 60,663 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) June 30, 2019 March 31, 2019 2016 Senior Notes bearing interest at 6.375%, with interest payable on March 1 and September 1 of each year. The 2016 Senior Notes mature on March 1, 2024. $ 600,000 $ 600,000 2013 Senior Notes bearing interest at 5.375%, with interest payable on June 15 and December 15 of each year. The 2013 Senior Notes mature on December 15, 2021. 400,000 400,000 2012 Term B-5 Loans bearing interest at the Borrower's option at either LIBOR plus a margin of 2.00%, with a LIBOR floor of 0.00%, or an alternate base rate plus a margin of 1.00%, with a floor of 1.00%, due on January 26, 2024. 738,000 738,000 2012 ABL Revolver bearing interest at the Borrower's option at either a base rate plus applicable margin or LIBOR plus applicable margin. Any unpaid balance is due on January 26, 2022. 55,000 75,000 Long-term debt 1,793,000 1,813,000 Less: unamortized debt costs (13,620 ) (14,402 ) Long-term debt, net $ 1,779,380 $ 1,798,598 |
Aggregate Future Principal Payments | As of June 30, 2019 , aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans, 2012 ABL Revolver and the indentures governing the 6.375% senior unsecured notes due 2024 (the "2016 Senior Notes") and the 5.375% senior unsecured notes due 2021 (the "2013 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2020 (remaining nine months ending March 31, 2020) $ — 2021 — 2022 455,000 2023 — 2024 1,338,000 Thereafter — $ 1,793,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Carry Amounts and Fair Value Measurements | As such, the 2016 Senior Notes, the 2013 Senior Notes, the 2012 Term B-5 Loans, and the 2012 ABL Revolver are measured in Level 2 of the above hierarchy. See summary below detailing the carrying amounts and estimated fair values of these borrowings at June 30, 2019 and March 31, 2019 . June 30, 2019 March 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2016 Senior Notes $ 600,000 $ 627,000 $ 600,000 $ 606,000 2013 Senior Notes 400,000 403,000 400,000 401,500 2012 Term B-5 Loans 738,000 733,388 738,000 728,775 2012 ABL Revolver 55,000 55,000 75,000 75,000 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following at June 30, 2019 and March 31, 2019 : (In thousands) June 30, 2019 March 31, 2019 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (27,102 ) $ (26,878 ) Unrecognized net gain on pension plans 1,131 1,131 Accumulated other comprehensive loss, net of tax $ (25,971 ) $ (25,747 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, (In thousands, except per share data) 2019 2018 Numerator Net income $ 33,925 $ 34,466 Denominator Denominator for basic earnings per share — weighted average shares outstanding 51,697 52,640 Dilutive effect of nonvested restricted stock units and options issued to employees and directors 350 302 Denominator for diluted earnings per share 52,047 52,942 Earnings per Common Share: Basic earnings per share $ 0.66 $ 0.65 Diluted earnings per share $ 0.65 $ 0.65 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Shares | A summary of the RSUs granted under the Plan is presented below: RSUs Shares (in thousands) Weighted Average Grant-Date Fair Value Three Months Ended June 30, 2018 Vested and nonvested at March 31, 2018 393.5 $ 44.13 Granted 203.8 29.46 Vested and issued (173.4 ) 43.00 Forfeited (31.1 ) 48.32 Vested and nonvested at June 30, 2018 392.8 36.68 Vested at June 30, 2018 90.5 29.88 Three Months Ended June 30, 2019 Vested and nonvested at March 31, 2019 413.0 $ 36.58 Granted 195.2 30.55 Vested and issued (61.8 ) 48.04 Forfeited (25.2 ) 36.85 Vested and nonvested at June 30, 2019 521.2 32.94 Vested at June 30, 2019 113.2 31.05 |
Fair Value of Options Granted | The weighted average grant-date fair values of the options granted during the three months ended June 30, 2019 and 2018 were $10.83 and $10.22 , respectively. Three Months Ended June 30, 2019 2018 Expected volatility 30.9% - 31.3% 29.6 % Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 Risk-free rate 2.3% to 2.4% 2.9 % |
Stock Option Activity | A summary of option activity under the Plan is as follows: Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Three Months Ended June 30, 2018 Outstanding at March 31, 2018 873.2 $ 41.79 Granted 294.5 29.46 Exercised (32.8 ) 26.81 Forfeited or expired (72.7 ) 45.00 Outstanding at June 30, 2018 1,062.2 38.61 7.6 $ 6,573 Vested at June 30, 2018 599.8 37.99 6.2 $ 4,054 Three Months Ended June 30, 2019 Outstanding at March 31, 2019 944.6 $ 38.45 Granted 302.7 30.53 Exercised (9.3 ) 29.46 Forfeited or expired (95.9 ) 42.62 Outstanding at June 30, 2019 1,142.1 36.07 7.5 $ 2,540 Vested at June 30, 2019 628.6 38.70 6.0 $ 2,206 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Primary Components of Net Periodic Benefits | The primary components of Net Periodic Benefits consist of the following: Three Months Ended June 30, (In thousands) 2019 2018 Interest cost $ 577 $ 610 Expected return on assets (721 ) (768 ) Net periodic benefit income $ (144 ) $ (158 ) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Information about our Operating and Reportable Segments | The tables below summarize information about our reportable segments. Three Months Ended June 30, 2019 (In thousands) North American OTC International OTC Household Cleaning Consolidated Total segment revenues* $ 210,784 $ 21,370 $ — $ 232,154 Cost of sales 88,811 9,276 — 98,087 Gross profit 121,973 12,094 — 134,067 Advertising and promotion 31,014 3,787 — 34,801 Contribution margin $ 90,959 $ 8,307 $ — 99,266 Other operating expenses 27,780 Operating income 71,486 Other expense 25,436 Income before income taxes 46,050 Provision for income taxes 12,125 Net income $ 33,925 * Intersegment revenues of $0.8 million were eliminated from the North American OTC Healthcare segment. Three Months Ended June 30, 2018 (In thousands) North American OTC International OTC Household Cleaning Consolidated Total segment revenues* $ 214,775 $ 19,394 $ 19,811 $ 253,980 Cost of sales 89,153 7,616 16,588 113,357 Gross profit 125,622 11,778 3,223 140,623 Advertising and promotion 33,258 3,423 430 37,111 Contribution margin $ 92,364 $ 8,355 $ 2,793 103,512 Other operating expenses 31,025 Operating income 72,487 Other expense 26,027 Income before income taxes 46,460 Benefit for income taxes 11,994 Net income $ 34,466 * Intersegment revenues of $2.7 million were eliminated from the North American OTC Healthcare segment. |
Information about our Revenues from Similar Product Groups | The tables below summarize information about our segment revenues from similar product groups. Three Months Ended June 30, 2019 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 28,535 $ 230 $ — $ 28,765 Cough & Cold 17,340 5,382 — 22,722 Women's Health 59,578 2,419 — 61,997 Gastrointestinal 31,572 6,985 — 38,557 Eye & Ear Care 26,753 3,011 — 29,764 Dermatologicals 25,738 690 — 26,428 Oral Care 19,979 2,652 — 22,631 Other OTC 1,289 1 — 1,290 Household Cleaning — — — — Total segment revenues $ 210,784 $ 21,370 $ — $ 232,154 Three Months Ended June 30, 2018 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 28,258 $ 157 $ — $ 28,415 Cough & Cold 16,214 5,171 — 21,385 Women's Health 63,477 2,257 — 65,734 Gastrointestinal 32,799 5,990 — 38,789 Eye & Ear Care 25,472 2,619 — 28,091 Dermatologicals 25,122 532 — 25,654 Oral Care 22,197 2,667 — 24,864 Other OTC 1,236 1 — 1,237 Household Cleaning — — 19,811 19,811 Total segment revenues $ 214,775 $ 19,394 $ 19,811 $ 253,980 |
Information about our Segment Revenues by Geographic Area | Our total segment revenues by geographic area are as follows: Three Months Ended June 30, 2019 2018 United States $ 200,629 $ 223,477 Rest of world 31,525 30,503 Total $ 232,154 $ 253,980 |
Information about our Consolidated Goodwill and Intangible Assets Allocated to Reportable Segments | Our consolidated goodwill and intangible assets have been allocated to the reportable segments as follows: June 30, 2019 North American OTC International OTC Consolidated (In thousands) Goodwill $ 547,393 $ 30,916 $ 578,309 Intangible assets Indefinite-lived 2,195,617 76,677 2,272,294 Finite-lived, net 223,961 5,103 229,064 Intangible assets, net 2,419,578 81,780 2,501,358 Total $ 2,966,971 $ 112,696 $ 3,079,667 March 31, 2019 North American OTC International OTC Consolidated (In thousands) Goodwill $ 547,393 $ 31,190 $ 578,583 Intangible assets Indefinite-lived 2,195,617 77,574 2,273,191 Finite-lived, net 228,743 5,276 234,019 Intangible assets, net 2,424,360 82,850 2,507,210 Total $ 2,971,753 $ 114,040 $ 3,085,793 |
Business and Basis of Present_4
Business and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | May 13, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other Nonoperating Income (Expense) | $ (416) | $ (87) | |||
Operating lease right-of-use asset | 16,097 | $ 20,500 | $ 17,435 | $ 0 | |
Operating lease liabilities, current portion | (5,099) | (5,697) | 0 | ||
Long-term operating lease liability, net of current portion | (12,526) | (13,296) | 0 | ||
Other accrued liabilities | (59,105) | $ (60,663) | |||
Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other Nonoperating Income (Expense) | $ (1,000) | ||||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease right-of-use asset | 17,435 | ||||
Operating lease liabilities, current portion | (5,697) | ||||
Long-term operating lease liability, net of current portion | (13,296) | ||||
Other accrued liabilities | $ (1,558) |
Divestitures (Details)
Divestitures (Details) - Household Cleaning - Divestiture $ in Millions | Jul. 02, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from disposal | $ 65.9 |
Pre-tax gain on divestiture | $ 1.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Packaging and raw materials | $ 14,367 | $ 17,082 |
Work in process | 342 | 161 |
Finished goods | 114,679 | 102,637 |
Inventories | 129,388 | 119,880 |
Inventory valuation reserves related to obsolete and slow-moving inventory | $ 5,600 | $ 5,500 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 742,294 |
Accumulated impairment loss | (163,711) |
Goodwill, net | 578,583 |
Effects of foreign currency exchange rates | (274) |
Goodwill | 742,020 |
Accumulated impairment loss | (163,711) |
Goodwill, net | 578,309 |
North American OTC Healthcare | |
Goodwill [Line Items] | |
Goodwill | 711,104 |
Accumulated impairment loss | (163,711) |
Goodwill, net | 547,393 |
Effects of foreign currency exchange rates | 0 |
Goodwill | 711,104 |
Accumulated impairment loss | (163,711) |
Goodwill, net | 547,393 |
International OTC Healthcare | |
Goodwill [Line Items] | |
Goodwill | 31,190 |
Accumulated impairment loss | 0 |
Goodwill, net | 31,190 |
Effects of foreign currency exchange rates | (274) |
Goodwill | 30,916 |
Accumulated impairment loss | 0 |
Goodwill, net | $ 30,916 |
Intangible Assets, net (Schedul
Intangible Assets, net (Schedule of Reconciliation of Activity Affecting Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Indefinite-Lived Intangible Assets [Abstract] | |||
Indefinite-lived trademarks, beginning balance | $ 2,273,191 | ||
Indefinite-lived trademarks, ending balance | 2,272,294 | ||
Intangible Assets, Gross [Abstract] | |||
Totals, gross, beginning balance | 2,663,474 | ||
Totals, gross, effects of foreign currency exchange rate | (960) | ||
Totals, gross, ending balance | 2,662,514 | ||
Finite-lived Intangible Assets, Accumulated Amortization [Abstract] | |||
Accumulated amortization, beginning balance | 156,264 | ||
Accumulated amortization, additions | 4,906 | $ 5,800 | |
Accumulated amortization, effects of foreign exchange rates | (14) | ||
Accumulated amortization, ending balance | 161,156 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived, net | 229,064 | $ 234,019 | |
Intangible Assets, Net [Abstract] | |||
Intangible assets, net | 2,501,358 | $ 2,507,210 | |
Finite-Lived Trademarks and Customer Relationships | |||
Finite-Lived Intangible Assets, Gross [Abstract] | |||
Finite-lived trademarks and customer relationships, beginning balance | 390,283 | ||
Finite-lived trademarks and customer relationships, effects of foreign currency exchange rate | (63) | ||
Finite-lived trademarks and customer relationships, ending balance | 390,220 | ||
Finite-lived Intangible Assets, Accumulated Amortization [Abstract] | |||
Accumulated amortization, beginning balance | 156,264 | ||
Accumulated amortization, additions | 4,906 | ||
Accumulated amortization, effects of foreign exchange rates | (14) | ||
Accumulated amortization, ending balance | 161,156 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived, net | 229,064 | ||
Indefinite-Lived Trademarks | |||
Indefinite-Lived Intangible Assets [Abstract] | |||
Indefinite-lived trademarks, beginning balance | 2,273,191 | ||
Indefinite lived trademarks, effects of foreign currency exchange rate | (897) | ||
Indefinite-lived trademarks, ending balance | $ 2,272,294 |
Intangible Assets, net (Narrati
Intangible Assets, net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 4,906 | $ 5,800 |
Remainder of the year | 14,700 | |
2021 | 19,600 | |
2022 | 19,600 | |
2023 | 19,600 | |
2024 | 19,600 | |
Thereafter | $ 135,900 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | May 31, 2019 | May 13, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Lessee, Lease, Description [Line Items] | |||||
Term of contract | 5 years | ||||
Renewal term | 5 years | ||||
Weighted average remaining lease term | 6 years 2 months 27 days | ||||
Weighted average discount rate | 5.21% | ||||
Operating lease right-of-use asset | $ 16,097 | $ 20,500 | $ 17,435 | $ 0 | |
Operating lease liability | $ 17,625 | $ 20,500 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of contract | 1 year | ||||
Renewal term | 1 year | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Term of contract | 10 years | ||||
Renewal term | 6 years |
Leases (Operating Lease Cost) (
Leases (Operating Lease Cost) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,216 |
Short term lease cost | 23 |
Variable lease cost | 16,599 |
Sublease income | (914) |
Total net lease cost | $ 16,924 |
Leases (Operating Lease Maturit
Leases (Operating Lease Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | May 13, 2019 |
Leases [Abstract] | ||
2020 (Remaining nine months ending March 31, 2020) | $ 4,577 | |
2021 | 3,450 | |
2022 | 2,488 | |
2023 | 1,794 | |
2024 | 1,705 | |
Thereafter | 6,761 | |
Total undiscounted lease payments | 20,775 | |
Less imputed interest | (3,150) | |
Total present value of lease payments | $ 17,625 | $ 20,500 |
Leases (Lease Maturities Under
Leases (Lease Maturities Under Prior Guidance) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2020 | $ 3,142 |
2021 | 2,881 |
2022 | 2,478 |
2023 | 1,789 |
2024 | 1,705 |
Thereafter | 6,780 |
Total | 18,775 |
Facilities | |
Operating Leased Assets [Line Items] | |
2020 | 2,828 |
2021 | 2,633 |
2022 | 2,265 |
2023 | 1,684 |
2024 | 1,705 |
Thereafter | 6,780 |
Total | 17,895 |
Equipment | |
Operating Leased Assets [Line Items] | |
2020 | 314 |
2021 | 248 |
2022 | 213 |
2023 | 105 |
2024 | 0 |
Thereafter | 0 |
Total | $ 880 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued marketing costs | $ 31,886 | $ 31,228 |
Accrued compensation costs | 5,701 | 10,958 |
Accrued broker commissions | 1,057 | 1,361 |
Income taxes payable | 5,640 | 88 |
Accrued professional fees | 2,284 | 2,441 |
Accrued production costs | 9,252 | 6,788 |
Other accrued liabilities | 6,526 | 7,799 |
Total other accrued liabilities | $ 62,346 | $ 60,663 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 1,779,380,000 | $ 1,798,598,000 |
2016 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate (percent) | 6.375% | |
2013 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate (percent) | 5.375% | |
Revolving Credit Facility | 2012 ABL Revolver | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 55,000,000 | |
Line of credit facility, additional borrowing capacity | $ 102,700,000 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 1,793,000 | $ 1,813,000 |
Less: unamortized debt costs | (13,620) | (14,402) |
Long-term debt, net | 1,779,380 | 1,798,598 |
2012 ABL Revolver | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | 55,000 | 75,000 |
Long-term debt, net | $ 55,000 | |
Senior Notes | 2016 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate (percent) | 6.375% | |
Total long-term debt (including current portion) | $ 600,000 | 600,000 |
Senior Notes | 2013 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate (percent) | 5.375% | |
Total long-term debt (including current portion) | $ 400,000 | 400,000 |
Term B-5 Loans | 2012 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 738,000 | $ 738,000 |
Term B-5 Loans | 2012 Senior Notes | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate (percent) | 2.00% | |
Debt instrument, variable rate, minimum (as percent) | 0.00% | |
Term B-5 Loans | 2012 Senior Notes | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate (percent) | 1.00% | |
Debt instrument, variable rate, minimum (as percent) | 1.00% |
Long-Term Debt (Maturities of L
Long-Term Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Aggregate Future Principal Payments | ||
2020 (remaining nine months ending March 31, 2020) | $ 0 | |
2021 | 0 | |
2022 | 455,000 | |
2023 | 0 | |
2024 | 1,338,000 | |
Thereafter | 0 | |
Total long-term debt (including current portion) | $ 1,793,000 | $ 1,813,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Senior Notes | 2016 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | $ 600,000 | $ 600,000 |
Senior Notes | 2013 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 400,000 | 400,000 |
Term Loans | 2012 Term B-5 Loans | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 738,000 | 738,000 |
Revolving Credit Facility | 2012 ABL Revolver | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
2012 ABL Revolver | 55,000 | 75,000 |
Fair Value, Measurements, Recurring | Senior Notes | 2016 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 627,000 | 606,000 |
Fair Value, Measurements, Recurring | Senior Notes | 2013 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 403,000 | 401,500 |
Fair Value, Measurements, Recurring | Term Loans | 2012 Term B-5 Loans | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 733,388 | 728,775 |
Fair Value, Measurements, Recurring | Revolving Credit Facility | 2012 ABL Revolver | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
2012 ABL Revolver | $ 55,000 | $ 75,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | ||
Jun. 30, 2019USD ($)vote$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Mar. 31, 2019$ / sharesshares | |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | shares | 250,000,000 | 250,000,000 | |
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | shares | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Voting rights, number of votes per common share owned | vote | 1 | ||
Dividends declared on common stock | $ | $ 0 | ||
Stock repurchased during period (in shares) | shares | 949,825 | 1,449,750 | |
Stock acquired, average cost per share (in USD per share) | $ / shares | $ 30.29 | $ 34.47 | |
Treasury stock acquired | $ | $ 29,565,000 | $ 52,259,000 | |
Restricted Shares | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | shares | 26,264 | 68,939 | |
Stock acquired, average cost per share (in USD per share) | $ / shares | $ 30.44 | $ 33.09 | |
Treasury stock acquired | $ | $ 28,800,000 | $ 50,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ 1,101,623,000 | $ 1,095,831,000 | $ 1,161,723,000 | $ 1,178,610,000 |
Reclassification from accumulated other comprehensive loss into earnings | 0 | 0 | ||
Cumulative translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | (27,102,000) | (26,878,000) | ||
Unrecognized net gain on pension plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | 1,131,000 | 1,131,000 | ||
Accumulated other comprehensive loss, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ (25,971,000) | $ (25,747,000) | $ (22,289,000) | $ (19,315,000) |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basis and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator | ||
Net income | $ 33,925 | $ 34,466 |
Denominator | ||
Denominator for basic earnings per share — weighted average shares outstanding (in shares) | 51,697 | 52,640 |
Dilutive effect of nonvested restricted stock units and options issued to employees and directors (in shares) | 350 | 302 |
Denominator for diluted earnings per share (in shares) | 52,047 | 52,942 |
Earnings per Common Share: | ||
Basic earnings per share (in USD per share) | $ 0.66 | $ 0.65 |
Diluted earnings per share (in USD per share) | $ 0.65 | $ 0.65 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities) (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Outstanding Stock Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1 | 0.8 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | May 13, 2019 | May 06, 2019 | May 31, 2014 | Jun. 30, 2014 | Jun. 30, 2019 | Jun. 30, 2018 |
Share-based Compensation, Aggregate Disclosures: | ||||||
Maximum number of shares per participant, 12 month period (in shares) | 1,000,000 | 2,500,000 | ||||
Extension of plan term | 10 years | |||||
Share-based compensation costs charged against income | $ 1,400 | $ 1,700 | ||||
Tax benefit recognized from share-based compensation expense | 200 | 200 | ||||
Unrecognized compensation costs related to nonvested awards | $ 11,000 | |||||
Unrecognized compensation costs related to nonvested awards, weighted average period for recognition | 1 year 1 month 6 days | |||||
Total fair value of vested shares | $ 6,100 | 10,700 | ||||
Proceeds from exercise of stock options | 275 | 880 | ||||
Tax benefit realized from exercise of stock options | $ 400 | $ 1,200 | ||||
Shares available for issuance under the Plan (in shares) | 1,400,000 | |||||
Stock options granted (in shares) | 302,700 | 294,500 | ||||
Options, Additional Disclosures: | ||||||
Options granted, weighted-average grant-date fair value (in USD per share) | $ 10.83 | $ 10.22 | ||||
Options exercised, aggregate intrinsic value | $ 100 | |||||
Performance Shares | ||||||
Share-based Compensation, Aggregate Disclosures: | ||||||
Share grants in period (in shares) | 98,644 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation, Aggregate Disclosures: | ||||||
Share grants in period (in shares) | 7,287 | 89,286 | 195,200 | 203,800 | ||
Restricted Stock Units (RSUs) | Employee | ||||||
Restricted Shares | ||||||
Award vesting period | 3 years | |||||
Restricted Stock Units (RSUs) | Employee | Maximum | ||||||
Restricted Shares | ||||||
Award vesting period | 3 years | |||||
Restricted Stock Units (RSUs) | Director | ||||||
Restricted Shares | ||||||
Number of common shares into which each RSU may be converted (in shares) | 1 | |||||
Period following director's term in which RSUs may be settled | 6 months | |||||
Stock Options | ||||||
Share-based Compensation, Aggregate Disclosures: | ||||||
Stock options granted (in shares) | 21,194 | 281,487 | ||||
Stock options granted, exercise price (in USD per share) | $ 30.19 | $ 30.56 | ||||
Stock Options | Minimum | ||||||
Restricted Shares | ||||||
Award vesting period | 3 years | |||||
Stock Options | Maximum | ||||||
Restricted Shares | ||||||
Award vesting period | 5 years | |||||
Options, Additional Disclosures: | ||||||
Award exercisability period, from date of grant | 10 years | |||||
Long-term Equity Incentive Plan, 2005 | ||||||
Share-based Compensation, Aggregate Disclosures: | ||||||
Number of shares authorized for grant under 2005 Long-Term Equity Incentive Plan (in shares) | 5,000,000 | |||||
Number of additional shares authorized (in shares) | 1,800,000 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares | May 13, 2019 | May 06, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Shares | ||||
Outstanding, beginning of period (in shares) | 413,000 | 393,500 | ||
Granted (in shares) | 7,287 | 89,286 | 195,200 | 203,800 |
Vested and issued (in shares) | (61,800) | (173,400) | ||
Forfeited (in shares) | (25,200) | (31,100) | ||
Outstanding, end of period (in shares) | 521,200 | 392,800 | ||
Vested, end of period (in shares) | 113,200 | 90,500 | ||
Weighted Average Grant-Date Fair Value | ||||
Outstanding, beginning of period, weighted-average grant-date fair value (in USD per share) | $ 36.58 | $ 44.13 | ||
Granted, weighted-average grant-date fair value (in USD per share) | 30.55 | 29.46 | ||
Vested and issued, weighted-average grant-date fair value (in USD per share) | 48.04 | 43 | ||
Forfeited, weighted-average grant-date fair value (in USD per share) | 36.85 | 48.32 | ||
Outstanding, end of period, weighted-average grant-date fair value (in USD per share) | 32.94 | 36.68 | ||
Vested, end of period, weighted-average grant-date fair value (in USD per share) | $ 31.05 | $ 29.88 | ||
Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Director | ||||
Weighted Average Grant-Date Fair Value | ||||
Period following director's term in which RSUs may be settled | 6 months | |||
Maximum | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Valuation Assumptions) (Details) - Stock Options - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 29.60% | |
Expected dividends | $ 0 | $ 0 |
Expected term in years | 6 years | |
Risk-free rate | 2.90% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award exercisability period, from date of grant | 10 years | |
Expected volatility | 31.30% | |
Expected term in years | 7 years | |
Risk-free rate | 2.40% | |
Award vesting period | 5 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 30.90% | |
Expected term in years | 6 years | |
Risk-free rate | 2.30% | |
Award vesting period | 3 years |
Share-Based Compensation (Sto_2
Share-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Shares | ||
Outstanding, beginning of period (in shares) | 944,600 | 873,200 |
Granted (in shares) | 302,700 | 294,500 |
Exercised (in shares) | (9,300) | (32,800) |
Forfeited or expired (in shares) | (95,900) | (72,700) |
Outstanding, end of period (in shares) | 1,142,100 | 1,062,200 |
Exercisable, end of period (in shares) | 628,600 | 599,800 |
Weighted Average Exercise Price | ||
Outstanding, beginning of period, weighted-average exercise price (in USD per share) | $ 38.45 | $ 41.79 |
Granted, weighted-average exercise price (in USD per share) | 30.53 | 29.46 |
Exercised, weighted-average exercise price (in USD per share) | 29.46 | 26.81 |
Forfeited or expired, weighted-average exercise price (in USD per share) | 42.62 | 45 |
Outstanding, end of period, weighted-average exercise price (in USD per share) | 36.07 | 38.61 |
Exercisable, end of period, weighted-average exercise price (in USD per share) | $ 38.70 | $ 37.99 |
Options, Additional Disclosures: | ||
Outstanding, end of period, weighted-average remaining contractual term | 7 years 6 months | 7 years 7 months 6 days |
Exercisable, end of period, weighted-average remaining contractual term | 6 years | 6 years 2 months 12 days |
Outstanding, end of period, aggregate intrinsic value | $ 2,540 | $ 6,573 |
Exercisable, end of period, aggregate intrinsic value | $ 2,206 | $ 4,054 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (percent) | 26.30% | 25.80% |
Employee Retirement Plans (Expe
Employee Retirement Plans (Expected Return on Plan Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Interest cost | $ 577 | $ 610 |
Expected return on assets | (721) | (768) |
Net periodic benefit income | $ (144) | $ (158) |
Employee Retirement Plans (Narr
Employee Retirement Plans (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Non-qualified Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | $ 100,000 |
Expected employer contributions, remainder of fiscal year | 300,000 |
Qualified Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | 0 |
Expected employer contributions, remainder of fiscal year | $ 1,000,000 |
Concentrations of Risk (Details
Concentrations of Risk (Details) - manufacturer | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | ||
Number of third-party manufacturers | 113 | 116 |
Sales | Customer Concentration Risk | Walmart | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (percent) | 24.20% | 24.60% |
Sales | Supplier Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (percent) | 67.10% | 61.90% |
Number of third-party manufacturers with long-term contracts | 30 | 38 |
Top 5 brands | Sales | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (percent) | 44.10% | 42.60% |
Business Segments (Information
Business Segments (Information on Operating and Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information, Profit (Loss): | ||
Total revenues | $ 232,154 | $ 253,980 |
Cost of sales | 98,087 | 113,357 |
Gross profit | 134,067 | 140,623 |
Advertising and promotion | 34,801 | 37,111 |
Contribution margin | 99,266 | 103,512 |
Other operating expenses | 27,780 | 31,025 |
Operating income | 71,486 | 72,487 |
Other expense | 25,436 | 26,027 |
Income before income taxes | 46,050 | 46,460 |
Provision for income taxes | 12,125 | 11,994 |
Net income | 33,925 | 34,466 |
North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 210,784 | 214,775 |
International OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 21,370 | 19,394 |
Household Cleaning | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 0 | 19,811 |
Operating Segments | North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 210,784 | 214,775 |
Cost of sales | 88,811 | 89,153 |
Gross profit | 121,973 | 125,622 |
Advertising and promotion | 31,014 | 33,258 |
Contribution margin | 90,959 | 92,364 |
Operating Segments | International OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 21,370 | 19,394 |
Cost of sales | 9,276 | 7,616 |
Gross profit | 12,094 | 11,778 |
Advertising and promotion | 3,787 | 3,423 |
Contribution margin | 8,307 | 8,355 |
Operating Segments | Household Cleaning | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 0 | 19,811 |
Cost of sales | 0 | 16,588 |
Gross profit | 0 | 3,223 |
Advertising and promotion | 0 | 430 |
Contribution margin | 0 | 2,793 |
Intersegment Eliminations | North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | $ 800 | $ 2,700 |
Business Segments (Revenue) (De
Business Segments (Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | $ 232,154 | $ 253,980 |
Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 28,765 | 28,415 |
Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 22,722 | 21,385 |
Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 61,997 | 65,734 |
Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 38,557 | 38,789 |
Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 29,764 | 28,091 |
Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 26,428 | 25,654 |
Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 22,631 | 24,864 |
Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 1,290 | 1,237 |
Household Cleaning | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 19,811 |
North American OTC Healthcare | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 210,784 | 214,775 |
North American OTC Healthcare | Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 28,535 | 28,258 |
North American OTC Healthcare | Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 17,340 | 16,214 |
North American OTC Healthcare | Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 59,578 | 63,477 |
North American OTC Healthcare | Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 31,572 | 32,799 |
North American OTC Healthcare | Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 26,753 | 25,472 |
North American OTC Healthcare | Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 25,738 | 25,122 |
North American OTC Healthcare | Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 19,979 | 22,197 |
North American OTC Healthcare | Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 1,289 | 1,236 |
International OTC Healthcare | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 21,370 | 19,394 |
International OTC Healthcare | Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 230 | 157 |
International OTC Healthcare | Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 5,382 | 5,171 |
International OTC Healthcare | Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 2,419 | 2,257 |
International OTC Healthcare | Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 6,985 | 5,990 |
International OTC Healthcare | Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 3,011 | 2,619 |
International OTC Healthcare | Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 690 | 532 |
International OTC Healthcare | Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 2,652 | 2,667 |
International OTC Healthcare | Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 1 | 1 |
Household Cleaning | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 19,811 |
Household Cleaning | Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 0 | 0 |
Household Cleaning | Household Cleaning | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | $ 0 | $ 19,811 |
Business Segments (Revenue by G
Business Segments (Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 232,154 | $ 253,980 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 200,629 | 223,477 |
Rest of world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 31,525 | $ 30,503 |
Business Segments (Goodwill and
Business Segments (Goodwill and Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | $ 578,309 | $ 578,583 |
Intangible assets | ||
Indefinite-lived | 2,272,294 | 2,273,191 |
Finite-lived, net | 229,064 | 234,019 |
Intangible assets, net | 2,501,358 | 2,507,210 |
Total | 3,079,667 | 3,085,793 |
North American OTC Healthcare | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 547,393 | 547,393 |
Intangible assets | ||
Indefinite-lived | 2,195,617 | 2,195,617 |
Finite-lived, net | 223,961 | 228,743 |
Intangible assets, net | 2,419,578 | 2,424,360 |
Total | 2,966,971 | 2,971,753 |
International OTC Healthcare | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 30,916 | 31,190 |
Intangible assets | ||
Indefinite-lived | 76,677 | 77,574 |
Finite-lived, net | 5,103 | 5,276 |
Intangible assets, net | 81,780 | 82,850 |
Total | $ 112,696 | $ 114,040 |
Subsequent Events (Details)
Subsequent Events (Details) - Restricted Stock Units (RSUs) - shares | Jul. 30, 2019 | May 13, 2019 | May 06, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||||
Granted (in shares) | 7,287 | 89,286 | 195,200 | 203,800 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Granted (in shares) | 4,183 | ||||
Director | |||||
Subsequent Event [Line Items] | |||||
Number of common shares into which each RSU may be converted (in shares) | 1 | ||||
Director | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of common shares into which each RSU may be converted (in shares) | 1 |
Uncategorized Items - pbh10qjun
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,343,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,343,000 |