Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | May 01, 2020 | Sep. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2020 | ||
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 | FY | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 1,737.7 | ||
Entity Common Stock, Shares Outstanding | 50,085,494 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders (the “2020 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described herein. |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | |||
Total revenues | $ 963,010 | $ 975,777 | $ 1,041,179 |
Cost of Sales | |||
Cost of sales excluding depreciation | 406,554 | 415,469 | 459,676 |
Cost of sales depreciation | 4,233 | 4,732 | 4,998 |
Cost of sales | 410,787 | 420,201 | 464,674 |
Gross profit | 552,223 | 555,576 | 576,505 |
Operating Expenses | |||
Advertising and promotion | 147,194 | 143,090 | 147,286 |
General and administrative | 89,112 | 89,759 | 85,393 |
Depreciation and amortization | 24,762 | 27,047 | 28,428 |
Gain on divestiture | 0 | (1,284) | 0 |
Goodwill and tradename impairment | 0 | 229,461 | 99,924 |
Total operating expenses | 261,068 | 488,073 | 361,031 |
Operating income | 291,155 | 67,503 | 215,474 |
Other (income) expense | |||
Interest income | (342) | (217) | (388) |
Interest expense | 96,566 | 105,299 | 106,267 |
Loss on extinguishment of debt | 2,155 | 0 | 2,901 |
Other expense (income), net | 1,625 | 476 | (392) |
Total other expense | 100,004 | 105,558 | 108,388 |
Income (loss) before income taxes | 191,151 | (38,055) | 107,086 |
Provision (benefit) for income taxes | 48,870 | (2,255) | (232,484) |
Net income (loss) | $ 142,281 | $ (35,800) | $ 339,570 |
Earnings (loss) per share: | |||
Basic (in USD per share) | $ 2.81 | $ (0.69) | $ 6.40 |
Diluted (in USD per share) | $ 2.78 | $ (0.69) | $ 6.34 |
Weighted average shares outstanding: | |||
Basic (in shares) | 50,723 | 52,068 | 53,099 |
Diluted (in shares) | 51,140 | 52,068 | 53,526 |
Comprehensive income (loss), net of tax: | |||
Currency translation adjustments | $ (12,363) | $ (6,480) | $ 5,702 |
Unrealized loss on interest rate swaps | (4,864) | 0 | 0 |
Unrecognized net (loss) gain on pension plans | (1,187) | 48 | 1,335 |
Total other comprehensive (loss) income | (18,414) | (6,432) | 7,037 |
Comprehensive (loss) income | 123,867 | (42,232) | 346,607 |
Net sales | |||
Revenues | |||
Total revenues | 962,936 | 975,692 | 1,040,792 |
Other revenues | |||
Revenues | |||
Total revenues | $ 74 | $ 85 | $ 387 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 94,760 | $ 27,530 |
Accounts receivable, net of allowance of $20,194 and $12,965, respectively | 150,517 | 148,787 |
Inventories | 116,026 | 119,880 |
Prepaid expenses and other current assets | 4,351 | 4,741 |
Total current assets | 365,654 | 300,938 |
Property, plant and equipment, net | 55,988 | 51,176 |
Operating lease right-of-use assets | 28,888 | 0 |
Finance lease right-of-use assets | 5,842 | 0 |
Goodwill | 575,179 | 578,583 |
Intangible assets, net | 2,479,391 | 2,507,210 |
Other long-term assets | 2,963 | 3,129 |
Total Assets | 3,513,905 | 3,441,036 |
Current liabilities | ||
Accounts payable | 62,375 | 56,560 |
Accrued interest payable | 9,911 | 9,756 |
Operating lease liabilities, current portion | 5,612 | 0 |
Finance lease liabilities, current portion | 1,220 | 0 |
Other accrued liabilities | 70,763 | 60,663 |
Total current liabilities | 149,881 | 126,979 |
Long-term debt, net | 1,730,300 | 1,798,598 |
Deferred income tax liabilities | 407,812 | 399,575 |
Long-term operating lease liabilities, net of current portion | 24,877 | 0 |
Long-term finance lease liabilities, net of current portion | 4,626 | 0 |
Other long-term liabilities | 25,438 | 20,053 |
Total Liabilities | 2,342,934 | 2,345,205 |
Commitments and Contingencies – Note 18 | ||
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 | 538 | 536 |
Additional paid-in capital | 488,116 | 479,150 |
Treasury stock, at cost – 3,719 shares at March 31, 2020 and 1,871 shares at March 31, 2019 | (117,623) | (59,928) |
Accumulated other comprehensive loss, net of tax | (44,161) | (25,747) |
Retained earnings | 844,101 | 701,820 |
Total Stockholders’ Equity | 1,170,971 | 1,095,831 |
Total Liabilities and Stockholders’ Equity | $ 3,513,905 | $ 3,441,036 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 20,194 | $ 12,965 |
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) | 53,805,000 | 53,670,000 |
Treasury stock (in shares) | 3,719,000 | 1,871,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance, common stock (in shares) at Mar. 31, 2017 | 53,287,000 | |||||
Beginning balance, treasury stock (in shares) at Mar. 31, 2017 | 332,000 | |||||
Beginning balance at Mar. 31, 2017 | $ 822,549 | $ 533 | $ 458,255 | $ (6,594) | $ (26,352) | $ 396,707 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 8,909 | 8,909 | ||||
Exercise of stock options (in shares) | 55,700 | 56,000 | ||||
Exercise of stock options | $ 1,620 | $ 0 | 1,620 | |||
Issuance of shares related to restricted stock (in shares) | 53,000 | |||||
Issuance of shares related to restricted stock | $ 1 | (1) | ||||
Treasury share repurchases (in shares) | 21,000 | |||||
Treasury share repurchases | (1,075) | $ (1,075) | ||||
Net income (loss) | 339,570 | 339,570 | ||||
Other comprehensive income (loss) | 7,037 | 7,037 | ||||
Ending balance, common stock (in shares) at Mar. 31, 2018 | 53,396,000 | |||||
Ending balance, treasury stock (in shares) at Mar. 31, 2018 | 353,000 | |||||
Ending balance at Mar. 31, 2018 | 1,178,610 | $ 534 | 468,783 | $ (7,669) | (19,315) | 736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 7,438 | 7,438 | ||||
Exercise of stock options (in shares) | 97,700 | 98,000 | ||||
Exercise of stock options | $ 2,931 | $ 0 | 2,931 | |||
Issuance of shares related to restricted stock (in shares) | 176,000 | |||||
Issuance of shares related to restricted stock | $ 2 | (2) | ||||
Treasury share repurchases (in shares) | 1,518,000 | |||||
Treasury share repurchases | (52,259) | $ (52,259) | ||||
Net income (loss) | (35,800) | (35,800) | ||||
Other comprehensive income (loss) | $ (6,432) | (6,432) | ||||
Ending balance, common stock (in shares) at Mar. 31, 2019 | 53,670,000 | |||||
Ending balance, treasury stock (in shares) at Mar. 31, 2019 | 1,871,000 | 1,871,000 | ||||
Ending balance at Mar. 31, 2019 | $ 1,095,831 | $ 536 | 479,150 | $ (59,928) | (25,747) | 701,820 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 7,644 | 7,644 | ||||
Exercise of stock options (in shares) | 47,900 | 48,000 | ||||
Exercise of stock options | $ 1,324 | $ 1 | 1,323 | |||
Issuance of shares related to restricted stock (in shares) | 87,000 | |||||
Issuance of shares related to restricted stock | $ 1 | (1) | ||||
Treasury share repurchases (in shares) | 1,848,000 | |||||
Treasury share repurchases | (57,695) | $ (57,695) | ||||
Net income (loss) | 142,281 | 142,281 | ||||
Other comprehensive income (loss) | $ (18,414) | (18,414) | ||||
Ending balance, common stock (in shares) at Mar. 31, 2020 | 53,805,000 | |||||
Ending balance, treasury stock (in shares) at Mar. 31, 2020 | 3,719,000 | 3,719,000 | ||||
Ending balance at Mar. 31, 2020 | $ 1,170,971 | $ 538 | $ 488,116 | $ (117,623) | $ (44,161) | $ 844,101 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | |||
Net income (loss) | $ 142,281 | $ (35,800) | $ 339,570 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 28,995 | 31,779 | 33,426 |
Gain on divestiture | 0 | (1,284) | 0 |
Loss on sale or disposal of property and equipment | 713 | 216 | 1,568 |
Deferred income taxes | 13,852 | (40,554) | (269,086) |
Amortization of debt origination costs | 3,812 | 5,923 | 6,742 |
Stock-based compensation costs | 7,644 | 7,438 | 8,909 |
Loss on extinguishment of debt | 2,155 | 0 | 2,901 |
Non-cash operating lease cost | 8,786 | 0 | 0 |
Interest expense relating to ROU assets | 84 | 0 | 0 |
Impairment loss | 0 | 229,461 | 99,924 |
Lease termination costs | 0 | 0 | 214 |
Other non-cash items | 0 | 421 | 1,704 |
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures: | |||
Accounts receivable | (2,849) | (2,980) | (5,043) |
Inventories | 2,930 | (10,535) | (2,482) |
Prepaid expenses and other assets | 687 | 6,887 | 33,721 |
Accounts payable | 6,210 | (3,993) | (10,028) |
Accrued liabilities | 12,096 | 3,734 | (31,495) |
Operating lease liabilities | (8,824) | 0 | 0 |
Other | (1,448) | (1,429) | (435) |
Net cash provided by operating activities | 217,124 | 189,284 | 210,110 |
Investing Activities | |||
Purchases of property, plant and equipment | (14,560) | (10,480) | (12,532) |
Proceeds from divestitures | 0 | 65,912 | 0 |
Escrow receipt | 750 | 0 | 970 |
Acquisition of tradename | (2,760) | 0 | 0 |
Net cash (used in) provided by investing activities | (16,570) | 55,432 | (11,562) |
Financing Activities | |||
Repayment of 2013 Senior Notes | (400,000) | 0 | 0 |
Term Loan repayments | (48,000) | (200,000) | (444,000) |
Borrowings under revolving credit agreement | 100,000 | 45,000 | 30,000 |
Repayments under revolving credit agreement | (120,000) | (45,000) | (45,000) |
Payments of debt origination costs | (6,584) | 0 | (500) |
Payments of finance leases | (476) | 0 | 0 |
Proceeds from exercise of stock options | 1,324 | 2,931 | 1,620 |
Fair value of shares surrendered as payment of tax withholding | (974) | (2,281) | (1,075) |
Repurchase of common stock | (56,721) | (49,978) | 0 |
Net cash used in financing activities | (131,431) | (249,328) | (208,955) |
Effects of exchange rate changes on cash and cash equivalents | (1,893) | (406) | 1,100 |
Increase (decrease) in cash and cash equivalents | 67,230 | (5,018) | (9,307) |
Cash and cash equivalents - beginning of year | 27,530 | 32,548 | 41,855 |
Cash and cash equivalents - end of year | 94,760 | 27,530 | 32,548 |
Interest paid | 92,166 | 98,232 | 98,572 |
Income taxes paid | 30,602 | 32,797 | 24,440 |
2013 Senior Notes | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on extinguishment of debt | 2,200 | ||
Financing Activities | |||
Proceeds from issuance of Senior Notes | 0 | 0 | 250,000 |
2019 Senior Notes | |||
Financing Activities | |||
Proceeds from issuance of Senior Notes | $ 400,000 | $ 0 | $ 0 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Mar. 31, 2020 | |
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 these Consolidated Financial Statements) to mass merchandisers, 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 10 to these Consolidated Financial Statements. Coronavirus Outbreak In January 2020, the World Health Organization ("WHO") announced a global health crisis due to a new strain of coronavirus ("COVID-19"). In March 2020, the WHO classified the COVID-19 outbreak as a pandemic. This pandemic is affecting the United States and global economies, including causing significant volatility in the global economy and resulting in materially reduced economic activity. If the outbreak continues to spread or if we enter a period of recession or depression, it may materially affect our operations and those of third parties on which we rely, including causing disruptions in the supply and distribution of our products. We may need to limit operations and may experience material limitations in employee resources. We did see an increase in sales at the end of March 2020 related to the United States shelter-in-place restrictions, followed by a significant decrease in consumer consumption in the weeks that followed. It has been reported to us that there has been an increase in absenteeism at our distribution center and some of our suppliers, however, we have not experienced a material disruption to our overall supply chain. The extent to which COVID-19 impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, and the actions to contain COVID-19 or treat its impact, among others. We do not yet know the full extent of impacts on our business or the global economy. However, these effects could have a material, adverse impact on our liquidity, capital resources, operations and business and those of the third parties on which we rely. Basis of Presentation Our Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on March 31st of each year. References in these Consolidated Financial Statements or notes to a year (e.g., “2020”) mean our fiscal year ended on March 31st of that year. 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. As discussed below, 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. Cash and Cash Equivalents We consider all short-term deposits and investments with original maturities of three months or less to be cash equivalents. At March 31, 2020, approximately 14% of our cash is held by a bank in Sydney, Australia. Substantially all of our remaining cash is held by a large regional bank with headquarters in California. We do not believe that, as a result of this concentration, we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Federal Deposit Insurance Corporation (“FDIC”) and Securities Investor Protection Corporation (“SIPC”) insures our U.S. domestic balances, up to $250,000 and $500,000, with a $250,000 limit for cash, respectively. Substantially all of the Company's cash balances at March 31, 2020 are uninsured. Accounts Receivable We extend non-interest-bearing trade credit to our customers in the ordinary course of business. We maintain an allowance for doubtful accounts receivable based upon historical collection experience and expected collectability of the accounts receivable. In an effort to reduce credit risk, we (i) have established credit limits for all of our customer relationships, (ii) perform ongoing credit evaluations of customers’ financial condition, (iii) monitor the payment history and aging of customers’ receivables, and (iv) monitor open orders against an individual customer’s outstanding receivable balance. Inventories Inventories are stated at the lower of cost or net realizable value, where cost is determined by using the first-in, first-out method. We reduce inventories for the diminution of value resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated net realizable value. Factors utilized in the determination of estimated net realizable value include (i) product expiration dates, (ii) current sales data and historical return rates, (iii) estimates of future demand, (iv) competitive pricing pressures, (v) new product introductions, and (vi) component and packaging obsolescence. Property, Plant and Equipment Property, plant and equipment are stated at cost and are depreciated using the straight-line method based on the following estimated useful lives: Years Building 15 - 40 Machinery 3 - 15 Computer equipment and software 3 - 5 Furniture and fixtures 7 - 10 Leasehold improvements * *Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, we remove the cost and associated accumulated depreciation from the respective accounts and recognize the resulting gain or loss in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Goodwill The excess of the purchase price over the fair market value of assets acquired and liabilities assumed in business combinations is classified as goodwill. Goodwill is not amortized, although the carrying value is tested for impairment at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit level, which is one level below the operating segment level. An impairment loss is recognized if the carrying amount of the reporting unit exceeds its fair value. Intangible Assets Intangible assets, which are comprised primarily of tradenames, are stated at cost less accumulated amortization. For intangible assets with finite lives, amortization is computed using the straight-line method over estimated useful lives, typically ranging from 10 to 30 years. Indefinite-lived intangible assets are tested for impairment at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may exceed their fair values and may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Debt Origination Costs We have incurred debt origination costs in connection with the issuance of long-term debt. These costs are amortized over the term of the related debt, using the effective interest method for our bonds and our term loan facility and the straight-line method for our revolving credit facility. Costs associated with our revolving credit facility are reported as a long-term asset and costs related to our senior notes and the term loan facility are recorded as a reduction of debt. Revenue Recognition We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 on April 1, 2018 using the modified retrospective transition method and recognize revenue accordingly. Nature of Goods and Services We recognize revenue from product sales. We primarily ship finished goods to our customers and operate in two segments: North American OTC Healthcare and International OTC Healthcare. We sold our Household Cleaning segment on July 2, 2018 (see Note 2 for further details). The segments are based on differences in geographical area. The North America and International OTC Healthcare segments market a variety of personal care and over-the-counter products in the following product groups: Analgesics, Cough & Cold, Women's Health, Gastrointestinal, Eye & Ear Care, Dermatologicals, and Oral Care. Prior to its sale, the Household Cleaning segment focused on the sale of cleaning products. Our products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. We sell consumer products under a variety of brands through a broad distribution platform that includes mass merchandisers, drug, food, dollar, convenience and club stores, and e-commerce channels, all of which sell our products to consumers. See Note 21 for disaggregated revenue information. Satisfaction of Performance Obligations Under ASC 606, revenue is recognized when control of a promised good is transferred to a customer, in an amount that reflects the consideration that we expect to be entitled to receive in exchange for that good. This occurs either when finished goods are transferred to a common carrier for delivery to the customer or when product is picked up by the customer or the customer’s carrier. Once a product has transferred to the common carrier or been picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the product. It is at this point that we have a right to payment and the customer has legal title. Variable Consideration Provisions for certain rebates, customer promotional programs, product returns, and discounts to customers are accounted for as variable consideration and recorded as a reduction in sales. We record an estimate of future product returns, chargebacks and logistic deductions concurrent with recording sales, which is made using the most likely amount method which incorporates (i) historical return rates, (ii) current economic trends, (iii) changes in customer demand, (iv) product acceptance, (v) seasonality of our product offerings, and (vi) the impact of changes in product formulation, packaging and advertising. We participate in the promotional programs of our customers to enhance the sale of our products. These promotional programs consist of direct-to-consumer incentives, such as coupons and temporary price reductions, as well as incentives to our customers, such as allowances for new distribution, including slotting fees, and cooperative advertising. The costs of such activities are recorded as a reduction to revenue when the related sale takes place. Estimates of the costs of these promotional programs are derived using the most likely amount method, which incorporates (i) historical sales experience, (ii) the current promotional offering, (iii) forecasted data, (iv) current market conditions, and (v) communication with customer purchasing/marketing personnel. At the completion of the promotional program, the estimated amounts are adjusted to actual results. Practical Expedients Due to the nature (short duration) of our contracts with customers, we apply the practical expedient related to the disclosure of remaining performance obligations. Remaining performance obligations relate to contracts with a duration of less than one year, in which we have the right to invoice the customer at the time the performance obligation is satisfied for the amount of revenue recognized at that time. Accordingly, we have elected the practical expedient available under ASC 606 not to disclose remaining performance obligations for our contracts. The period between when control of the promised products transfers to the customer and when the customer pays for the products is one year or less. As such, we do not adjust product consideration for the effects of a significant financing component. The amortization period of any asset resulting from incremental costs of obtaining a contract would be one year or less. We expense incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. We account for shipping and handling costs as fulfillment activities and therefore recognize them upon shipment of goods. Cost of Sales Cost of sales includes costs related to the manufacturing of our products, including raw materials, direct labor and indirect plant costs (including but not limited to depreciation), warehousing costs, inbound and outbound shipping costs, and handling and storage costs. Warehousing, shipping and handling and storage costs were $61.9 million for 2020, $56.4 million for 2019 and $64.7 million for 2018. Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred. Allowances for distribution costs associated with products, including slotting fees, are recognized as a reduction of sales. Stock-based Compensation We recognize stock-based compensation expense by measuring the cost of services to be rendered based on the grant-date fair value of the equity award. Compensation expense is recognized over the period a grantee is required to provide service in exchange for the award, generally referred to as the requisite service period. Pension Expense Certain employees of C.B. Fleet Company, Inc. ("Fleet"), our wholly owned subsidiary, are covered by defined benefit pension plans. The Company’s policy is to contribute at least the minimum amount required under The Employee Retirement Income Security Act of 1974 ("ERISA"). The Company may elect to make additional contributions. Benefits are based on years of service and levels of compensation. On December 16, 2014, the decision was made to freeze the benefits under the Company's U.S. qualified defined benefit pension plan with an effective date of March 1, 2015. The funded status of our pension plans is dependent upon many factors, including returns on invested assets and the level of certain market interest rates. We review pension assumptions regularly and we may from time to time make voluntary contributions to our pension plans that exceed the amounts required by statute. Changes in interest rates and the market value of the securities held by the plans could materially change the funded status of the plans, positively or negatively, and affect the level of pension expense and required contributions in fiscal 2021 and beyond. Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). The Tax Act represented significant U.S. federal tax reform legislation that includes a permanent reduction to the U.S. federal corporate income tax rate. The permanent reduction to the federal corporate income tax rate resulted in a one-time benefit of $267.0 million related to the value of our deferred tax liabilities and a benefit of $3.2 million related to the lower blended tax rate on our earnings in the year ended March 31, 2018, resulting in a net benefit of $270.2 million. Additionally, the Tax Act subjects certain of our cumulative foreign earnings and profits to U.S. income taxes through a deemed repatriation, which resulted in a charge of $1.9 million during the year ended March 31, 2018. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted and signed into law in response to the COVID-19 pandemic. Certain provisions of the CARES Act impacted us and were reflected in our 2020 income tax provision computations. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification increased our allowable interest expense deduction and resulted in a lower taxable income for 2020. As a result of the CARES Act, it is anticipated that we will fully utilize the interest expense deduction on our 2020 tax return. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Income Taxes topic of the FASB ASC 740 prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities. As a result, we have applied such guidance in determining our tax uncertainties. We are subject to taxation in the United States and various state and foreign jurisdictions. We classify penalties and interest related to unrecognized tax benefits as income tax expense in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Earnings (Loss) Per Share Basic earnings (loss) 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 unvested 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 antidilutive 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: Year Ended March 31, (In thousands, except per share data) 2020 2019 2018 Numerator Net income (loss) $ 142,281 $ (35,800) $ 339,570 Denominator Denominator for basic earnings (loss) per share - weighted average shares outstanding 50,723 52,068 53,099 Dilutive effect of unvested restricted stock units and options issued to employees and directors 417 — 427 Denominator for diluted earnings (loss) per share 51,140 52,068 53,526 Earnings (loss) per Common Share: Basic net earnings (loss) per share $ 2.81 $ (0.69) $ 6.40 Diluted net earnings (loss) per share $ 2.78 $ (0.69) $ 6.34 For 2020, 2019, and 2018 there were 0.3 million, 1.4 million, and 0.4 million shares, respectively, attributable to outstanding stock-based awards that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. 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 ("ROU") 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. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842). This update amended a number of aspects of lease accounting, including requiring lessees to recognize all leases with a term greater than one year as a 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 year ended March 31, 2020 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 provided 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 above 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. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326 - Financial Instruments - Credit Losses , which clarifies guidance on how to report expected recoveries. In February 2020, the FASB issued ASU 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) , which adds a paragraph on loan losses to FASB Codification Topic 326. 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. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update eliminate the need for an organization to analyze whether certain exceptions apply for tax purposes. It also simplifies GAAP for certain taxes. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Divestiture
Divestiture | 12 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Divestiture | Divestiture 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. The net proceeds were used to repay debt. The following table sets forth the components of the assets sold and the pre-tax gain recognized on the sale in July 2018: (In thousands) July 2, 2018 Components of assets sold: Inventory $ 6,644 Property, plant and equipment, net 653 Goodwill 6,245 Intangible assets, net 49,315 Assets sold 62,857 Total purchase price received 65,912 (3,055) Costs to sell 1,771 Pre-tax gain on divestiture $ (1,284) |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consist of the following: March 31, (In thousands) 2020 2019 Components of Accounts Receivable Trade accounts receivable $ 170,151 $ 161,047 Other receivables 560 705 170,711 161,752 Less allowances for discounts, returns and uncollectible accounts (20,194) (12,965) Accounts receivable, net $ 150,517 $ 148,787 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, (In thousands) 2020 2019 Components of Inventories Packaging and raw materials $ 9,803 $ 17,082 Work in process 355 161 Finished goods 105,868 102,637 Inventories $ 116,026 $ 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 $6.5 million and $5.5 million at March 31, 2020 and 2019, respectively, related to obsolete and slow-moving inventory. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consist of the following: March 31, (In thousands) 2020 2019 Components of Property, Plant and Equipment Land $ 550 $ 550 Building 16,508 13,960 Machinery 42,299 38,761 Computer equipment 22,396 20,716 Furniture and fixtures 3,242 3,200 Leasehold improvements 8,964 9,090 Construction in progress 7,769 3,711 101,728 89,988 Accumulated depreciation (45,740) (38,812) Property, plant and equipment, net $ 55,988 $ 51,176 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2018, 2019, and 2020: (In thousands) North American OTC Healthcare International OTC Healthcare Household Cleaning Consolidated Balance – March 31, 2018 Goodwill $ 711,104 $ 32,919 $ 71,405 $ 815,428 Accumulated impairment losses (130,170) — (65,160) (195,330) Balance - March 31, 2018 580,934 32,919 6,245 620,098 2019 Reductions: Goodwill (a) — — (71,405) (71,405) Accumulated impairment loss (a) — — 65,160 65,160 Effects of foreign currency exchange rates — (1,729) — (1,729) Impairment loss (33,541) — — (33,541) Balance – March 31, 2019 Goodwill 711,104 31,190 — 742,294 Accumulated impairment losses (163,711) — — — — — (163,711) Balance - March 31, 2019 $ 547,393 $ 31,190 $ — $ 578,583 2020 Reductions: — — — Goodwill (b) (750) — — (750) Effects of foreign currency exchange rates — (2,654) — (2,654) Balance – March 31, 2020 Goodwill 710,354 28,536 — 738,890 Accumulated impairment losses (163,711) — — (163,711) Balance - March 31, 2020 $ 546,643 $ 28,536 $ — $ 575,179 (a) As discussed in Note 2, on July 2, 2018, we sold our Household Cleaning segment. As a result, we decreased goodwill by $6.2 million, net of accumulated impairment charges. (b) Amount relates to cash received from escrow associated with our acquisition of Fleet. At February 29, 2020, in conjunction with the annual test for goodwill impairment, which coincides with our annual strategic planning process, there were no indicators of impairment under the analysis and accordingly, no impairment charge was taken. At February 28, 2019, in conjunction with our annual test for goodwill impairment, we recorded an impairment charge of $33.5 million relating to our North American Oral Care reporting unit. The goodwill impairment was primarily a result of the DenTek and Efferdent/Effergrip tradename impairments discussed in Note 7. We identify our reporting units in accordance with the FASB ASC Subtopic 280. The carrying value and fair value for intangible assets and goodwill for a reporting unit are calculated based on key assumptions and valuation methodologies previously discussed. The discounted cash flow methodology is a widely-accepted valuation technique utilized by market participants in the transaction evaluation process and has been applied consistently. We also considered our market capitalization at February 29, 2020 and February 28, 2019, 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, increases in competition, changing consumer preferences, technical advances, reductions in advertising and promotion, or the potential impacts of COVID-19 may require an impairment charge to be recorded in the future. As a result of our analysis at February 29, 2020, all reporting units tested had a fair value that exceeded their carrying value by at least 10%. We performed a sensitivity analysis on our weighted average cost of capital and we determined that a 50 basis point increase in the weighted average cost of capital would not have resulted in any of our reporting unit’s fair value being less than their carrying value. Additionally, a 50 basis point decrease in the terminal growth rate used for each reporting unit would also not have resulted in any of our reporting unit's fair value being less than their carrying value. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets A reconciliation of the activity affecting intangible assets, net for each of 2020 and 2019 is as follows: Year Ended March 31, 2020 (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance – March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Additions (a) 2,760 — 2,760 Effects of foreign currency exchange rates (10,620) (482) (11,102) Balance – March 31, 2020 $ 2,265,331 $ 389,801 $ 2,655,132 Accumulated Amortization Balance – March 31, 2019 $ — $ 156,264 $ 156,264 Additions — 19,633 19,633 Effects of foreign currency exchange rates — (156) (156) Balance – March 31, 2020 $ — $ 175,741 $ 175,741 Intangible assets, net – March 31, 2020 $ 2,265,331 $ 214,060 $ 2,479,391 Intangible Assets, net by Reportable Segment: North American OTC Healthcare $ 2,195,617 $ 209,604 $ 2,405,221 International OTC Healthcare 69,714 4,456 74,170 Intangible assets, net – March 31, 2020 $ 2,265,331 $ 214,060 $ 2,479,391 (a) Amount relates to the acquisition of additional rights to an existing tradename. Year Ended March 31, 2019 (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance – March 31, 2018 $ 2,490,303 $ 441,314 $ 2,931,617 Reclassifications (25,152) 25,152 — Reductions (30,562) (34,889) (65,451) Tradename impairment (154,967) (40,953) (195,920) Effects of foreign currency exchange rates (6,431) (341) (6,772) Balance – March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Accumulated Amortization Balance – March 31, 2018 $ — $ 150,701 $ 150,701 Additions — 21,767 21,767 Reductions — (16,136) (16,136) Effects of foreign currency exchange rates — (68) (68) Balance – March 31, 2019 $ — $ 156,264 $ 156,264 Intangible assets, net – March 31, 2019 $ 2,273,191 $ 234,019 $ 2,507,210 Intangible Assets, net by Reportable Segment: North American OTC Healthcare $ 2,195,617 $ 228,743 $ 2,424,360 International OTC Healthcare 77,574 5,276 82,850 Intangible assets, net – March 31, 2019 $ 2,273,191 $ 234,019 $ 2,507,210 As discussed in Note 2, on July 2, 2018, we sold our Household Cleaning segment. As a result, we decreased our indefinite-lived intangibles by $30.5 million and our net finite-lived trademarks by $18.8 million. During the fourth quarter of each fiscal year, in conjunction with our strategic planning process, we perform our annual impairment analysis. We utilized 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 needs or preferences, technological advances, changes in advertising and promotional expenses, or the potential impacts of COVID-19 we may be required to record impairment charges in the future. At February 29, 2020, in conjunction with the annual test for impairment of intangible assets, there were no indicators of impairment under the analysis and accordingly, no impairment charge was taken. As a result of our analysis at February 28, 2019, the fair values of three of our indefinite-lived intangible assets, Fleet , DenTek and Efferdent/Effergrip, did not exceed the carrying values and as such, impairment charges of $155.0 million were recorded. In addition, in connection with the impairment analysis, the Efferdent / Effergrip intangible asset was determined to have a finite life, and as such, we began amortizing it prospectively over its estimated remaining useful life. The impairment charges were the result of our reassessment of the long-term sales projections for these brands during our annual planning cycle as well as an overall increase in the discount rate used to value the brands. As a result of our analysis at February 29, 2020, all indefinite-lived intangible assets tested had a fair value that exceeded their carrying value by at least 10%. We performed a sensitivity analysis of our weighted average cost of capital and we determined that a 50 basis point increase in the weighted average cost of capital used to value the indefinite-lived intangible assets would not have resulted in any of our indefinite-lived intangible assets' fair value being less than their carrying value. Additionally, a 50 basis point decrease in the terminal growth rate used for each of our indefinite-lived intangible assets' would also not have resulted in any of our indefinite-lived intangible assets' fair value being less than their carrying value. As a result of our analysis at February 28, 2019, the fair value of several of our non-core finite-lived trademarks did not exceed their carrying values, and as such, impairment charges of $41.0 million were recorded. The impairment charges were the result of our reassessment of the long-term sales projections for the associated brands during our annual planning cycle, in certain instances the discontinuance of brands, as well as an overall increase in the discount rate used to value the brands. The assets impaired in 2019 are all part of our North America OTC segment. The weighted average remaining life for finite-lived intangible assets at March 31, 2020 was approximately 10.9 years, and the amortization expense for the year ended March 31, 2020 was $19.6 million. At March 31, 2020, finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 30 years, and the estimated amortization expense for each of the five succeeding years and periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2021 19,606 2022 19,605 2023 19,605 2024 19,578 2025 17,535 Thereafter 118,131 $ 214,060 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense for the year ended March 31, 2020 were as follows: (In thousands) Finance lease cost: Amortization of right-of-use assets $ 522 Interest on lease liabilities 84 Operating lease cost 7,914 Short term lease cost 104 Variable lease cost 64,230 Sublease income (3,441) Total net lease cost $ 69,413 As of March 31, 2020, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Financing Leases Total 2021 $ 7,019 $ 1,404 $ 8,423 2022 6,497 1,404 7,901 2023 6,305 1,404 7,709 2024 6,294 1,404 7,698 2025 4,123 700 4,823 Thereafter 4,973 — 4,973 Total undiscounted lease payments 35,211 6,316 41,527 Less amount of lease payments representing interest (4,722) (470) (5,192) Total present value of lease payments $ 30,489 $ 5,846 $ 36,335 The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2020 Weighted average remaining lease term (years) Operating leases 5.40 Financing leases 4.50 Weighted average discount rate Operating leases 5.28 % Financing leases 3.55 % The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of Topic 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 five five five |
Leases | Leases The components of lease expense for the year ended March 31, 2020 were as follows: (In thousands) Finance lease cost: Amortization of right-of-use assets $ 522 Interest on lease liabilities 84 Operating lease cost 7,914 Short term lease cost 104 Variable lease cost 64,230 Sublease income (3,441) Total net lease cost $ 69,413 As of March 31, 2020, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Financing Leases Total 2021 $ 7,019 $ 1,404 $ 8,423 2022 6,497 1,404 7,901 2023 6,305 1,404 7,709 2024 6,294 1,404 7,698 2025 4,123 700 4,823 Thereafter 4,973 — 4,973 Total undiscounted lease payments 35,211 6,316 41,527 Less amount of lease payments representing interest (4,722) (470) (5,192) Total present value of lease payments $ 30,489 $ 5,846 $ 36,335 The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2020 Weighted average remaining lease term (years) Operating leases 5.40 Financing leases 4.50 Weighted average discount rate Operating leases 5.28 % Financing leases 3.55 % The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of Topic 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 five five five |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following: March 31, (In thousands) 2020 2019 Accrued marketing costs $ 34,450 $ 31,228 Accrued compensation costs 13,393 10,958 Accrued broker commissions 1,491 1,361 Income taxes payable 3,210 88 Accrued professional fees 4,183 2,441 Accrued production costs 5,628 6,788 Accrued sales tax 1,917 4 Other accrued liabilities 6,491 7,795 $ 70,763 $ 60,663 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) March 31, March 31, 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, and were redeemed on December 16, 2019. — 400,000 2019 Senior Notes bearing interest at 5.125%, with interest payable on January 15 and July 15 of each year. The 2019 Senior Notes mature on January 15, 2028. 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. 690,000 738,000 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 December 11, 2024. 55,000 75,000 Long-term debt 1,745,000 1,813,000 Less: unamortized debt costs (14,700) (14,402) Long-term debt, net $ 1,730,300 $ 1,798,598 At March 31, 2020, we had $55.0 million outstanding on the 2012 ABL Revolver and a borrowing capacity of $107.3 million. 2012 Term Loan and 2012 ABL Revolver: On January 31, 2012, the Borrower entered into a senior secured credit facility, which consists of (i) a $660.0 million 2012 Term Loan with an original 7-year maturity and (ii) a $50.0 million asset-based revolving credit facility (the “2012 ABL Revolver”) with an original 5-year maturity. In subsequent years, we have utilized portions of our accordion feature to increase the amount of our borrowing capacity under the 2012 ABL Revolver by $85.0 million to $135.0 million and reduced our borrowing rate on the 2012 ABL Revolver by 0.25% (discussed below). The 2012 Term Loan was issued with an original issue discount of 1.5% of the principal amount thereof, resulting in net proceeds to the Borrower of $650.1 million. The 2012 Term Loan is unconditionally guaranteed by Prestige Consumer Healthcare Inc. and certain of its domestic 100% owned subsidiaries, other than the Borrower. Each of these guarantees is joint and several. There are no significant restrictions on the ability of any of the guarantors to obtain funds from their subsidiaries or to make payments to the Borrower or the Company. On February 21, 2013, we entered into Amendment No. 1 ("Term Loan Amendment No. 1") to the 2012 Term Loan. Term Loan Amendment No. 1 provided for the refinancing of all of the Borrower's existing Term B Loans with new Term B-1 Loans (the "Term B-1 Loans"). The interest rate on the Term B-1 Loans under Term Loan Amendment No. 1 was based, at our option, on a LIBOR rate plus a margin of 2.75% per annum, with a LIBOR floor of 1.00%, or an alternate base rate, with a floor of 2.00%, plus a margin. In addition, Term Loan Amendment No. 1 provided the Borrower with certain additional capacity to prepay subordinated debt, the 2012 Senior Notes and certain other unsecured indebtedness permitted to be incurred under the credit agreement governing the 2012 Term Loan and 2012 ABL Revolver. On September 3, 2014, we entered into Amendment No. 2 ("Term Loan Amendment No. 2") to the 2012 Term Loan. Term Loan Amendment No. 2 provided for (i) the creation of a new class of Term B-2 Loans under the 2012 Term Loan (the "Term B-2 Loans") in an aggregate principal amount of $720.0 million, (ii) increased flexibility under the credit agreement governing the 2012 Term Loan and 2012 ABL Revolver, including additional investment, restricted payment and debt incurrence flexibility and financial maintenance covenant relief, and (iii) an interest rate on (x) the Term B-1 Loans that was based, at our option, on a LIBOR rate plus a margin of 3.125% per annum, with a LIBOR floor of 1.00%, or an alternate base rate, with a floor of 2.00%, plus a margin, and (y) the Term B-2 Loans that was based, at our option, on a LIBOR rate plus a margin of 3.50% per annum, with a LIBOR floor of 1.00%, or an alternate base rate, with a floor of 2.00%, plus a margin (with a margin step-down to 3.25% per annum, based upon achievement of a specified secured net leverage ratio). Also on September 3, 2014, we entered into Amendment No. 3 ("ABL Amendment No. 3") to the 2012 ABL Revolver. ABL Amendment No. 3 provided for (i) a $40.0 million increase in revolving commitments under the 2012 ABL Revolver and (ii) increased flexibility under the credit agreement governing the 2012 Term Loan and 2012 ABL Revolver, including additional investment, restricted payment and debt incurrence flexibility. Borrowings under the 2012 ABL Revolver, as amended, bore interest at a rate per annum equal to an applicable margin, plus, at our option, either (i) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.50%, (b) the prime rate of Citibank, N.A., and (c) the LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for an interest period of one month, adjusted for certain additional costs, plus 1.00% or (ii) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs. The applicable margin for borrowings under the 2012 ABL Revolver could be increased to 2.00% or 2.25% for LIBOR borrowings and 1.00% or 1.25% for base-rate borrowings, depending on average excess availability under the 2012 ABL Revolver during the prior fiscal quarter. In addition to paying interest on outstanding principal under the 2012 ABL Revolver, we are required to pay a commitment fee to the lenders under the 2012 ABL Revolver in respect of the unutilized commitments thereunder. The initial commitment fee rate is 0.50% per annum. The commitment fee rate will be reduced to 0.375% per annum at any time when the average daily unused commitments for the prior quarter is less than a percentage of total commitments by an amount set forth in the credit agreement covering the 2012 ABL Revolver. We may voluntarily repay outstanding loans under the 2012 ABL Revolver at any time without a premium or penalty. On May 8, 2015, we entered into Amendment No. 3 ("Term Loan Amendment No. 3") to the 2012 Term Loan. Term Loan Amendment No. 3 provided for (i) the creation of a new class of Term B-3 Loans under the 2012 Term Loan (the "Term B-3 Loans") in an aggregate principal amount of $852.5 million, which combined the outstanding balances of the Term B-1 Loans of $207.5 million and the Term B-2 Loans of $645.0 million, and (ii) increased flexibility under the credit agreement governing the 2012 Term Loan and 2012 ABL Revolver, including additional investment, restricted payment, and debt incurrence flexibility and financial maintenance covenant relief. The maturity date of the Term B-3 Loans remained the same as the Term B-2 Loans' original maturity date of September 3, 2021. On June 9, 2015, we entered into Amendment No. 4 (“ABL Amendment No. 4”) to the 2012 ABL Revolver. ABL Amendment No. 4 provided for (i) a $35.0 million increase in the accordion feature under the 2012 ABL Revolver and (ii) increased flexibility under the credit agreement governing the 2012 Term Loan and the 2012 ABL Revolver, including additional investment, restricted payment, and debt incurrence flexibility and financial maintenance covenant relief and (iii) extended the maturity date of the 2012 ABL Revolver to June 9, 2020, which is five In connection with the DenTek acquisition on February 5, 2016, we entered into Amendment No. 5 (“ABL Amendment No. 5”) to the 2012 ABL Revolver. ABL Amendment No. 5 temporarily suspended certain financial and related reporting covenants in the 2012 ABL Revolver until the earliest of (i) the date that was 60 calendar days following February 4, 2016, (ii) the date upon which certain of DenTek’s assets were included in the Company’s borrowing base under the 2012 ABL Revolver and (iii) the date upon which the Company received net proceeds from an offering of debt securities. In connection with the Fleet acquisition, on January 26, 2017, we entered into Amendment No. 4 ("Term Loan Amendment No. 4") to the 2012 Term Loan. Term Loan Amendment No. 4 provided for (i) the refinancing of all of our outstanding term loans and the creation of a new class of Term B-4 Loans under the 2012 Term Loan (the "Term B-4 Loans") in an aggregate principal amount of $1,427.0 million and (ii) increased flexibility under the credit agreement governing the 2012 Term Loan and the 2012 ABL Revolver, including additional investment, restricted payment, and debt incurrence flexibility and financial maintenance covenant relief. The maturity date was extended to January 26, 2024. In addition, Citibank, N.A. was succeeded by Barclays Bank PLC as administrative agent under the 2012 Term Loan. Also on January 26, 2017, we entered into Amendment No. 6 ("ABL Amendment No. 6") to the 2012 ABL Revolver. ABL Amendment No. 6 provides for (i) a $40.0 million increase in revolving commitments under the 2012 ABL Revolver, (ii) an extension of the maturity date of revolving commitments to January 26, 2022, and (iii) increased flexibility under the credit agreement governing the 2012 Term Loan and the 2012 ABL Revolver, including additional investment, restricted payment and debt incurrence flexibility consistent with Term Loan Amendment No. 4. We may voluntarily repay outstanding loans under the 2012 ABL Revolver at any time without a premium or penalty. On March 21, 2018, we entered into Amendment No. 5 (“Term Loan Amendment No. 5”) to the 2012 Term Loan. Term Loan Amendment No. 5 ("Term B-5 Loans") provided for the repricing of the Term B-4 Loans under the Credit Agreement to an interest rate that is based, at our option, on a LIBOR rate plus a margin of 2.00% per annum, with a LIBOR floor of 0.00%, or an alternative base rate plus a margin of 1.00% per annum with a floor of 1.00%. On December 11, 2019, we entered into Amendment No. 7 ("ABL Amendment No. 7") to the 2012 ABL Revolver. ABL Amendment No. 7 provides for (i) an extension of the maturity date of the revolving credit facility to December 11, 2024, which is five years from the effective date of the amendment, (ii) increased flexibility under the 2012 ABL Revolver, including additional investment, restricted payment, and debt incurrence flexibility, (iii) an initial applicable margin for borrowings under the 2012 ABL Revolver that is 1.00% with respect to LIBOR borrowings and 0.0% with respect to base-rate borrowings (which may be increased to 1.25% or 1.50% for LIBOR borrowings and 0.25% or 0.50% for base-rate borrowings, depending on average excess availability under the facility during the prior fiscal quarter) and (iv) a commitment fee to the lenders under the 2012 ABL Revolver in respect of the unutilized commitments thereunder of 0.25% per annum. For the year ended March 31, 2020, the average interest rate on the 2012 Term Loan was 4.6% and the average interest rate on the amounts borrowed under the 2012 ABL Revolver was 4.0%. 2013 Senior Notes: On December 17, 2013, the Borrower issued $400.0 million of senior unsecured notes, with an interest rate of 5.375% and a maturity date of December 15, 2021 (the "2013 Senior Notes"). These notes were redeemed on December 16, 2019 using the funds from the issuance of our 2019 Senior Notes described below. 2016 Senior Notes: On February 19, 2016, the Borrower completed the sale of $350.0 million aggregate principal amount of 6.375% senior notes due March 1, 2024 (the “Initial Notes”), pursuant to a purchase agreement, dated February 16, 2016, among the Borrower, the guarantors party thereto (the “Guarantors”) and the initial purchasers party thereto. The 2016 Senior Notes are guaranteed by Prestige Consumer Healthcare Inc. and certain of its domestic 100% owned subsidiaries, other than the Borrower. Each of these guarantees is joint and several. There are no significant restrictions on the ability of any of the Guarantors to obtain funds from their subsidiaries or to make payments to the Borrower or the Company. The 2016 Senior Notes were issued pursuant to an indenture, dated February 19, 2016 (the “Indenture”). The Indenture provides, among other things, that interest will be payable on the 2016 Senior Notes on March 1 and September 1 of each year, beginning on September 1, 2016, until their maturity date of March 1, 2024. The 2016 Senior Notes are senior unsecured obligations of the Borrower. On March 21, 2018, we completed the sale of $250.0 million aggregate principal amount of 6.375% senior notes due 2024 (the “Additional Notes”), at an issue price of 101.0%, pursuant to a purchase agreement, dated March 16, 2018, among Prestige Consumer Healthcare Inc., the guarantors party thereto and the initial purchasers party thereto. The Additional Notes are senior unsecured obligations of Prestige Consumer Healthcare Inc. and are guaranteed by each of Prestige Consumer Healthcare's domestic subsidiaries that guarantee its obligations under the 2012 Term Loan. We used the proceeds from the issuance of the Additional Notes to repay a portion of our outstanding obligations under the 2012 Term Loan and to pay related fees and expenses. The Additional Notes will be treated as a single series with the $350.0 million aggregate principle amount of Initial Notes (the Initial Notes and, together with the Additional Notes, the “2016 Senior Notes”). 2019 Senior Notes: On December 2, 2019, we issued $400.0 million aggregate principal amount of 5.125% senior notes ("2019 Senior Notes") pursuant to an indenture dated December 2, 2019, among Prestige Brands, Inc., the guarantors party thereto (including the Company) and the U.S. Bank National Association, as a trustee. The 2019 Senior Notes mature on January 15, 2028. We used the net proceeds from the 2019 Senior Notes, together with cash on hand, to redeem all $400.0 million of our outstanding 2013 Senior Notes, which were due in 2021, and to pay related fees and expenses. In conjunction with the redemption of our 2013 Senior Notes, we wrote off related debt costs of $2.2 million. Redemptions and Restrictions: We have the option to redeem all or a portion of the 2016 Senior Notes at any time on or after March 1, 2019 at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any. Subject to certain limitations, in the event of a change of control (as defined in the Indenture), we will be required to make an offer to purchase the 2016 Senior Notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. The indentures governing the 2019 Senior Notes and the 2016 Senior Notes contain provisions that restrict us from undertaking specified corporate actions, such as asset dispositions, acquisitions, dividend payments, repurchases of common shares outstanding, changes of control, incurrences of indebtedness, issuance of equity, creation of liens, making of loans and transactions with affiliates. Additionally, the credit agreement governing the 2012 Term Loan and the 2012 ABL Revolver and the indentures governing the 2019 Senior Notes and the 2016 Senior Notes contain cross-default provisions, whereby a default pursuant to the terms and conditions of certain indebtedness will cause a default on the remaining indebtedness under the credit agreement governing the 2012 Term Loan and the 2012 ABL Revolver and the indentures governing the 2019 Senior Notes and the 2016 Senior Notes. At March 31, 2020, we were in compliance with the covenants under our long-term indebtedness. Interest Rate Swaps: In January 2020, we entered into two interest rate swaps to hedge a total of $400.0 million of our variable interest debt (see Note 12 for further details). At March 31, 2020, we had an aggregate of $1.1 million of unamortized debt costs related to the 2012 ABL Revolver included in other long-term assets, and $14.7 million of unamortized debt costs included in long-term debt costs, the total of which is comprised of $5.8 million related to the 2019 Senior Notes, $3.5 million related to the 2016 Senior Notes, and $5.4 million related to the 2012 Term Loan. At March 31, 2019, we had an aggregate of $0.8 million of unamortized debt costs related to the 2012 ABL Revolver included in other long-term assets, and $14.4 million of unamortized debt costs included in long-term debt costs, the total of which is comprised of $2.8 million related to the 2013 Senior Notes, $4.3 million related to the 2016 Senior Notes, and $7.3 million related to the 2012 Term Loan. As of March 31, 2020, aggregate future principal payments required in accordance with the terms of the 2012 Term Loan, 2012 ABL Revolver and the indentures governing the 2016 Senior Notes and the 2019 Senior Notes are as follows: (In thousands) Year Ending March 31, Amount 2021 $ — 2022 — 2023 — 2024 1,290,000 2025 55,000 Thereafter 400,000 $ 1,745,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2020 | |
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. The Fair Value Measurements and Disclosures topic of the FASB ASC 820 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. The Fair Value Measurements and Disclosures topic established market (observable inputs) as the preferred source of fair value, to be followed by the Company's 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 the Company 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 2019 Senior Notes, the Term B-5 Loans, the 2012 ABL Revolver and our interest rate swaps are measured in Level 2 of the above hierarchy (see summary below detailing the carrying amounts and estimated fair values of these instruments at March 31, 2020 and 2019). March 31, 2020 March 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2016 Senior Notes $ 600,000 $ 603,000 $ 600,000 $ 606,000 2013 Senior Notes — — 400,000 401,500 2019 Senior Notes 400,000 386,000 — — 2012 Term B-5 Loans 690,000 638,250 738,000 728,775 2012 ABL Revolver 55,000 55,000 75,000 75,000 Interest rate swaps 6,317 6,317 — — At March 31, 2020 and 2019, we did not have any assets or liabilities measured in Level 1 or 3. During 2020, 2019 and 2018, there were no transfers of assets or liabilities between Levels 1, 2 and 3. In accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , investments that are measured at fair value using net asset value ("NAV") per share as a practical expedient have not been classified in the fair value hierarchy. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Changes in interest rates expose us to risks. To help us manage these risks, in January 2020 we entered into two interest rate swaps to hedge a total of $400.0 million of our variable interest debt. The fair value of these interest rate swaps is reflected in the Consolidated Balance Sheets in other accrued liabilities and other long-term liabilities. We do not use derivatives for trading purposes. The following table summarizes the fair values of our derivative instruments as of the March 31, 2020: (In thousands) Hedge Type Final Settlement Date Notional Amount Other Accrued Liabilities Other Long-Term Liabilities Interest rate swap Cash flow 1/31/2021 $ 200,000 $ (1,905) $ — Interest rate swap Cash flow 1/31/2022 $ 200,000 — (4,412) Total fair value $ (1,905) $ (4,412) The following table summarizes our interest rate swaps, net of tax, for the periods shown: (In thousands) Location 2020 2019 Loss Recognized in Other Comprehensive Loss (effective portion) Other comprehensive income (loss) (4,864) $ — Gain (Loss) Reclassified from Accumulative Other Comprehensive Loss into Income Interest expense — — Gain Recognized as Income Interest expense 62 — We expect pre-tax losses of $1.9 million associated with interest rate swaps, currently reported in accumulated other comprehensive loss, to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as interest rates change and the underlying contracts settle. Counterparty Credit Risk: |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company is 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 stock outstanding having priority rights as to dividends. No dividends have been declared or paid on the Company's common stock through March 31, 2020. During the years ended March 31, 2020 and 2019, we repurchased shares of our common stock and recorded them as treasury stock. Our share repurchases consisted of the following: Year Ended March 31, 2020 2019 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares 31,018 68,939 Average price per share $31.39 $33.09 Total amount repurchased $1.0 million $2.3 million Shares repurchased in conjunction with our share repurchase program: Number of shares 1,816,901 1,449,750 Average price per share $31.22 $34.47 Total amount repurchased $56.7 million $50.0 million |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationIn 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, the 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 During 2020, pre-tax share-based compensation costs charged against income and the related income tax benefit recognized were $7.6 million and $1.2 million, respectively. During 2019, pre-tax share-based compensation costs charged against income and the related income tax benefit recognized were $7.4 million and $1.4 million, respectively. During 2018, pre-tax share-based compensation costs charged against income and the related income tax benefit recognized were $8.9 million and $1.8 million, respectively. At March 31, 2020, there were $6.0 million of unrecognized compensation costs related to unvested 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 year. The total fair value of options and RSUs vested during 2020, 2019, and 2018 was $7.8 million, $12.0 million and $6.8 million, respectively. Cash received from the exercise of stock options was $1.3 million during 2020, and we realized $0.7 million in tax benefits for the tax deductions resulting from RSU issuances and option exercises in 2020. Cash received from the exercise of stock options was $2.9 million during 2019, and we realized $1.3 million in tax benefits for the tax deductions resulting from RSU issuances and option exercises in 2019. Cash received from the exercise of stock options was $1.6 million during 2018, and we realized $1.1 million in tax benefits for the tax deductions from RSU issuances and option exercises in 2018. At March 31, 2020, there were 1.5 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 under the Plan to certain executive officers and employees. 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 under the Plan to a recently hired executive officer. 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. Each of the independent members of the Board of Directors received a grant under the Plan of 4,183 RSUs on July 30, 2019. 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 interest, 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. The RSUs granted to directors in July 2019 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 (i) the director's death, (ii) the director's separation from service or (iii) a change in control of the Company. 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 Company’s RSUs granted under the Plan is presented below: RSUs Shares Weighted-Average Vested and unvested at March 31, 2017 350.1 $ 39.29 Granted 105.8 55.61 Vested and issued (53.3) 34.30 Forfeited (9.1) 48.76 Vested and unvested at March 31, 2018 393.5 44.13 Vested at March 31, 2018 90.5 29.88 Granted 226.4 30.09 Vested and issued (175.8) 43.05 Forfeited (31.1) 48.32 Vested and unvested at March 31, 2019 413.0 36.58 Vested at March 31, 2019 113.2 31.05 Granted 220.3 31.02 Vested and issued (87.0) 46.78 Forfeited (34.2) 35.97 Vested and unvested at March 31, 2020 512.1 32.49 Vested at March 31, 2020 124.2 30.54 Options The Plan provides that the exercise price of options granted shall be no less than the fair market value of the Company's 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 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. Year Ended March 31, 2020 2019 2018 Expected volatility 30.9-31.3 % 29.6 % 35.2 % Expected dividends — — — Expected term in years 6.0 to 7.0 6.0 6.0 Risk-free rate 2.3% to 2.4% 2.9 % 2.2 % Weighted-average grant date fair value of options granted $ 10.83 $ 10.22 $ 21.20 A summary of option activity under the Plan is as follows: Options Shares Weighted-Average Weighted- Aggregate Outstanding at March 31, 2017 772.3 $ 37.70 Granted 182.8 56.11 Exercised (55.7) 29.08 Forfeited or expired (26.2) 48.19 Outstanding at March 31, 2018 873.2 41.79 Granted 294.5 29.46 Exercised (97.7) 30.02 Forfeited or expired (125.4) 47.16 Outstanding at March 31, 2019 944.6 38.45 Granted 302.7 30.53 Exercised (47.9) 27.60 Forfeited or expired (179.2) 42.49 Outstanding at March 31, 2020 1,020.2 35.90 6.7 $ 6,214 Exercisable at March 31, 2020 566.2 38.66 5.2 $ 3,514 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The table below presents accumulated other comprehensive income (loss) (“AOCI”), which affects equity and results from recognized transactions and other economic events, other than transactions with owners in their capacity as owners. AOCI consisted of the following at March 31, 2020 and 2019: March 31, March 31, (In thousands) 2020 2019 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (39,241) $ (26,878) Unrealized loss on interest rate swaps, net of tax of $1,453 (4,864) — Unrecognized net (loss) gain on pension plans, net of tax of $(17) and $338, respectively (56) 1,131 Accumulated other comprehensive loss, net of tax $ (44,161) $ (25,747) |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOn December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act represented significant U.S. federal tax reform legislation that included a permanent reduction to the U.S. federal corporate income tax rate. The permanent reduction to the federal corporate income tax rate resulted in a one-time benefit of $267.0 million related to the value of our deferred tax liabilities and a benefit of $3.2 million related to the lower blended tax rate on our earnings, in the year ended March 31, 2018, resulting in a net benefit of $270.2 million. Additionally, the tax reform legislation subjects certain of our cumulative foreign earnings and profits to U.S. income taxes through a deemed repatriation, which resulted in a charge of $1.9 million in the year ended March 31, 2018. On March 27, 2020, the CARES Act was enacted and signed into law in response to the COVID-19 pandemic. Certain provisions of the CARES Act impacted us and were reflected in our 2020 income tax provision computations. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification increased our allowable interest expense deduction and resulted in a lower taxable income for 2020. As a result of the CARES Act, it is anticipated that we will fully utilize the interest expense deduction on our 2020 tax return. Income (loss) before income taxes consists of the following: Year Ended March 31, (In thousands) 2020 2019 2018 United States $ 167,508 $ (52,313) $ 84,435 Foreign 23,643 14,258 22,651 $ 191,151 $ (38,055) $ 107,086 The provision (benefit) for income taxes consists of the following: Year Ended March 31, (In thousands) 2020 2019 2018 Current Federal $ 24,051 $ 27,629 $ 31,327 State 2,506 3,156 2,686 Foreign 8,473 7,193 5,588 Deferred Federal 14,119 (35,760) (270,796) State (341) (4,101) (1,240) Foreign 62 (372) (49) Total provision (benefit) for income taxes $ 48,870 $ (2,255) $ (232,484) The principal components of our deferred tax balances are as follows: March 31, (In thousands) 2020 2019 Deferred Tax Assets Allowance for doubtful accounts and sales returns $ 4,996 $ 3,285 Inventory capitalization 1,168 1,245 Inventory reserves 705 1,267 Net operating loss carryforwards 115 226 State income taxes 8,896 9,003 Accrued liabilities 1,308 1,785 Accrued compensation 4,472 4,416 Stock compensation 4,334 4,206 Foreign tax credit 5,441 3,236 Interest — 154 Lease liability 8,228 — Unrealized foreign exchange loss 257 — Other 13,191 7,691 Total deferred tax assets $ 53,111 $ 36,514 Deferred Tax Liabilities Property, plant and equipment $ (7,590) $ (6,002) Intangible assets (438,601) (425,134) Deferred cumulative catch-up adjustments - revenue recognition adjustments (522) (721) Right-of-use asset (7,876) — Total deferred tax liabilities $ (454,589) $ (431,857) Net deferred tax liability before valuation allowance $ (401,478) $ (395,343) Valuation allowance (5,441) (3,236) Net deferred tax liability $ (406,919) $ (398,579) The net deferred tax liability shown above is net of $0.9 million of foreign deferred tax assets as of March 31, 2020 and $1.0 million of foreign deferred tax assets as of March 31, 2019. At March 31, 2020 and 2019, we have a valuation allowance of $5.4 million and $3.2 million, respectively, related to certain deferred tax assets that we have concluded are not more likely than not to be realized. The increase in the valuation allowance related to unutilized foreign tax credit carryovers, as further described below. A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows: Year Ended March 31, 2020 2019 2018 (In thousands) % % % Income tax provision (benefit) at statutory rate $ 40,142 21.0 $ (7,992) 21.0 $ 37,480 35.0 Foreign tax provision (benefit) 2,498 1.3 2,866 (7.5) (2,084) (1.9) State income taxes, net of federal income tax benefit 1,606 0.8 (1,710) 4.5 1,414 1.3 Impact of tax legislation — — — — (268,244) (250.5) Goodwill impairment — — 5,616 (14.8) — — R&D (320) (0.2) (629) 1.7 — — Compensation limitations 562 0.3 296 (0.8) — — Valuation allowance 2,205 1.2 2,627 (6.9) (2,828) (2.6) Gain on sale — — 1,312 (3.4) — — Other 2,177 1.2 (4,641) 12.1 1,778 1.6 Total provision (benefit) for income taxes $ 48,870 25.6 $ (2,255) 5.9 $ (232,484) (217.1) Uncertain tax liability activity is as follows: 2020 2019 2018 (In thousands) Balance – beginning of year $ 9,874 $ 10,827 $ 3,651 Additions based on tax positions related to the current year 495 585 7,286 Reductions based on lapse of statute of limitations — (650) (110) Payments and other movements — (888) — Balance – end of year $ 10,369 $ 9,874 $ 10,827 We recognize interest and penalties related to uncertain tax positions as a component of income tax (benefit) expense. We did not incur any material interest or penalties related to income taxes in 2020, 2019 or 2018. We reasonably anticipate that uncertain tax positions could decrease in the next year by approximately $6.7 million, principally due to the statute of limitation expirations if recognized and would impact the effective tax rate in a future period. We are subject to taxation in the United States and various state and foreign jurisdictions, and we are generally open to examination from the year ended March 31, 2016 forward. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Pursuant to the FASB guidance, we elected to treat any potential GILTI inclusions as a period cost without recognizing any related potential deferred tax liabilities or assets. Our current foreign tax credit analysis is suggestive of annual foreign tax credit limitation anticipated to be less than foreign income taxes accrued during the year. The operating conditions giving rise to such excess credit condition may be anticipated to continue into future tax years. As a result, we have recognized a full valuation allowance for the deferred tax asset recognized in respect of unutilized foreign tax credit carryovers, which are limited to ten-year carryovers under IRC §904(c). Such excess credit condition did not exist in prior years; however, the Tax Act, enacted in 2017, required substantial changes in the manner of calculating foreign tax credit limitation. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Retirement Plans | Employee Retirement PlansWe have a defined contribution plan in which all U.S. full-time employees are eligible to participate. The participants may contribute from 1% to 70% of their compensation, as defined in the plan. We match 100% of the first 3%, plus 50% of the next 3%, of each participant's base compensation with full vesting immediately. We may also make additional contributions to the plan as determined by the Board of Directors. The total expense for the defined contribution plan was $1.5 million, $1.5 million and $1.6 million for 2020, 2019 and 2018, respectively. Certain employees of our Lynchburg manufacturing facility are covered by defined benefit pension plans. The Company’s policy is to contribute at least the minimum amount required under ERISA. The Company may elect to make additional contributions. Benefits are based on years of service and levels of compensation. On December 16, 2014, the decision was made to freeze the benefits under the Company's U.S. qualified defined benefit pension plan with an effective date of March 1, 2015. Benefit Obligations and Plan Assets The following table summarizes the changes in the U.S. pension plan obligations and plan assets and includes a statement of the plans' funded status as of March 31, 2020 and 2019: March 31, (In thousands) 2020 2019 Change in benefit obligation: Projected benefit obligation at beginning of period $ 60,334 $ 61,882 Interest cost 2,327 2,380 Actuarial (gain) loss 2,375 (744) Benefits paid (3,466) (3,184) Projected benefit obligations at end of year $ 61,570 $ 60,334 Change in plan assets: Fair value of plan assets at beginning of period $ 51,115 $ 50,508 Actual return on plan assets 3,742 2,416 Employer contribution 1,369 1,375 Benefits paid (3,466) (3,184) Fair value of plan assets at end of year $ 52,760 $ 51,115 Funded status at end of year $ (8,810) $ (9,219) Amounts recognized in the balance sheet at the end of the period consist of the following: March 31, (In thousands) 2020 2019 Current liability $ 359 361 Long-term liability 8,451 8,858 Total $ 8,810 $ 9,219 The primary components of Net Periodic Benefits consist of the following: Year Ended March 31, (In thousands) 2020 2019 2018 Interest cost $ 2,327 $ 2,380 $ 2,529 Expected return on assets (2,886) (3,070) (2,901) Net periodic benefit (income) $ (559) $ (690) $ (372) The accumulated benefit obligation, which represents benefits earned to the measurement date, was $61.6 million at March 31, 2020, and $60.3 million at March 31, 2019 and we had a net periodic benefit (income) of less than $1.0 million for 2020, 2019 and 2018, respectively. The pension benefit amounts stated above include one pension plan that is an unfunded plan. The projected benefit obligation and accumulated benefit obligation for this unfunded plan were $4.6 million as of March 31, 2020 and $4.6 million as of March 31, 2019. The following table includes amounts that are expected to be contributed to the plans by the Company. It reflects benefit payments that are made from the plans' assets as well as those made directly from the Company's assets. The amounts in the table are actuarially determined and reflect the Company's best estimate given its current knowledge; actual amounts could be materially different. (In thousands) Pension Benefits Employer contributions: 2021 (expectation) to participant benefits $ 1,359 Expected benefit payments year ending March 31, 2021 $ 3,476 2022 3,592 2023 3,669 2024 3,743 2025 3,718 2026-2030 18,670 During both 2020 and 2019, we contributed $1.0 million to our qualified defined benefit plan. During 2018, we made no contribution to the qualified plan. The Company's primary investment objective for its qualified pension plan assets is to provide a source of retirement income for the plans' participants and beneficiaries. The asset allocation for the Company's funded retirement plan as of March 31, 2020 and 2019, and the target allocation by asset category are as follows: Percentage of Plan Assets Asset Category Target Allocation March 31, 2020 March 31, 2019 Domestic large cap equities 16 % 16 % 18 % Domestic small/mid cap equities 6 5 5 International equities 14 15 15 Real estate 5 5 — Fixed income and cash 59 59 62 Total 100 % 100 % 100 % The plan assets are invested in a diversified portfolio consisting primarily of domestic fixed income and publicly traded equity securities held within group trust funds at March 31, 2020 and 2019. These assets are fair valued using NAV. The following tables show the unrecognized actuarial loss (gain) included in accumulated other comprehensive income (loss) at March 31, 2020, 2019 and 2018, as well as the prior service cost credit and actuarial loss expected to be reclassified from accumulated other comprehensive income (loss) to retirement expense during 2021: (In thousands) Balances in accumulated other comprehensive loss as of March 31, 2018: Unrecognized actuarial (gain) $ (1,407) Unrecognized prior service credit — Balances in accumulated other comprehensive (income) as of March 31, 2019: Unrecognized actuarial (gain) $ (1,469) Unrecognized prior service credit — Balances in accumulated other comprehensive loss as of March 31, 2020: Unrecognized actuarial loss $ 73 Unrecognized prior service credit — Amounts expected to be reclassified from accumulated other comprehensive income (loss) during 2021: Unrecognized actuarial gain (loss) $ — Unrecognized prior service credit — Assumptions used in determining the actuarial present value of the benefit obligation as of March 31, 2020 and 2019 were as follows: March 31, 2020 2019 Key assumptions: Discount rate 3.37% to 3.55% 3.80% to 3.99% Expected return on plan assets, net of administrative fees 5.00% 5.75% Rate of compensation increase — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are involved from time to time in routine legal matters and other claims incidental to our business. We review outstanding claims and proceedings internally and with external counsel as necessary to assess probability and amount of 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. Lease Commitments See Note 8 for a description of our operating and finance leases. Purchase Commitments We have supply agreements for the manufacture of some of our products. The following table shows the minimum amounts that we are committed to pay under these agreements: (In thousands) Year Ending March 31, Amount 2021 $ 12,163 2022 11,929 2023 4,117 2024 2,364 2025 2,399 Thereafter 6,153 $ 39,125 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our revenues are concentrated in the areas of OTC Healthcare. We sell our products to mass merchandisers and drug, food, dollar, convenience and club stores and e-commerce channels. During 2020, 2019, and 2018, approximately 42.6%, 42.9%, and 41.2%, 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. During 2020, 2019, and 2018, Walmart accounted for approximately 23.1%, 23.7%, and 23.8%, respectively, of our gross revenues. At March 31, 2020, approximately 20.2% of our accounts receivable were owed by Walmart. Our product distribution in the United States is managed by a third party through one primary distribution center in Clayton, Indiana. In addition, we operate one manufacturing facility for certain of our products located in Lynchburg, Virginia. A natural disaster, such as tornado, 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. In addition, a serious disruption caused by performance or contractual issues with our third party distribution manager or COVID-19 or other public health emergencies could also materially impact our product distribution. Any disruption as a result of third party performance at our distribution center 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 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 center, the third party distribution manager 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 March 31, 2020, we had relationships with 113 third party manufacturers. Of those, we had long-term contracts with 14 manufacturers that produced items that accounted for approximately 62.3% of our gross sales for 2020, compared to 33 manufacturers with long-term contracts that accounted for approximately 65.6% of gross sales in 2019. 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 from operations. Although we are 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 | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Segment information has been prepared in accordance with the Segment Reporting topic of 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 operating and reportable segments. Year Ended March 31, 2020 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 859,368 $ 103,642 $ — $ 963,010 Cost of sales 372,133 38,654 — 410,787 Gross profit 487,235 64,988 — 552,223 Advertising and promotion 127,972 19,222 — 147,194 Contribution margin $ 359,263 $ 45,766 $ — 405,029 Other operating expenses 113,874 Operating income 291,155 *Intersegment revenues of $3.5 million were eliminated from the North American OTC Healthcare segment. Year Ended March 31, 2019 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 862,446 $ 93,520 $ 19,811 $ 975,777 Cost of sales 364,533 39,080 16,588 420,201 Gross profit 497,913 54,440 3,223 555,576 Advertising and promotion 126,374 16,286 430 143,090 Contribution margin $ 371,539 $ 38,154 $ 2,793 412,486 Other operating expenses** 344,983 Operating income 67,503 * Intersegment revenues of $7.4 million were eliminated from the North American OTC Healthcare segment. **Other operating expenses for the year ended March 31, 2019 includes a tradename impairment charge of $195.9 million and a goodwill impairment charge of $33.5 million. Year Ended March 31, 2018 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 868,874 $ 91,658 $ 80,647 $ 1,041,179 Cost of sales 357,298 40,244 67,132 464,674 Gross profit 511,576 51,414 13,515 576,505 Advertising and promotion 129,058 16,267 1,961 147,286 Contribution margin $ 382,518 $ 35,147 $ 11,554 429,219 Other operating expenses** 213,745 Operating income 215,474 *Intersegment revenues of $7.7 million were eliminated from the North America OTC Healthcare segment. **Other operating expenses for the year ended March 31, 2018 includes a tradename impairment charge of $99.9 million. The tables below summarize information about our segment revenues from similar product groups. Year Ended March 31, 2020 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 113,130 $ 877 $ — $ 114,007 Cough & Cold 87,601 23,505 — 111,106 Women's Health 239,330 12,221 — 251,551 Gastrointestinal 130,088 42,820 — 172,908 Eye & Ear Care 100,245 11,911 — 112,156 Dermatologicals 100,591 2,421 — 103,012 Oral Care 83,323 9,882 — 93,205 Other OTC 5,060 5 — 5,065 Household Cleaning — — — — Total segment revenues $ 859,368 $ 103,642 $ — $ 963,010 Year Ended March 31, 2019 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 113,563 $ 615 $ — $ 114,178 Cough & Cold 83,168 19,955 — 103,123 Women's Health 244,927 13,552 — 258,479 Gastrointestinal 125,416 35,046 — 160,462 Eye & Ear Care 101,128 11,709 — 112,837 Dermatologicals 95,801 2,171 — 97,972 Oral Care 92,964 10,468 — 103,432 Other OTC 5,479 4 — 5,483 Household Cleaning — — 19,811 19,811 Total segment revenues $ 862,446 $ 93,520 $ 19,811 $ 975,777 Year Ended March 31, 2018 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 118,610 $ 807 $ — $ 119,417 Cough & Cold 93,537 18,310 — 111,847 Women's Health 247,244 12,140 — 259,384 Gastrointestinal 117,627 34,609 — 152,236 Eye & Ear Care 92,308 11,744 — 104,052 Dermatologicals 94,775 2,113 — 96,888 Oral Care 99,072 11,930 — 111,002 Other OTC 5,701 5 — 5,706 Household Cleaning — — 80,647 80,647 Total segment revenues $ 868,874 $ 91,658 $ 80,647 $ 1,041,179 Our total segment revenues by geographic area are as follows: Year Ended March 31, 2020 2019 2018 United States $ 812,653 $ 837,049 $ 903,511 Rest of world 150,357 138,728 137,668 Total $ 963,010 $ 975,777 $ 1,041,179 Our consolidated goodwill and intangible assets have been allocated to the reportable segments as follows: March 31, 2020 (In thousands) North American OTC International OTC Consolidated Goodwill $ 546,643 $ 28,536 $ 575,179 Intangible assets Indefinite-lived 2,195,617 69,714 2,265,331 Finite-lived 209,604 4,456 214,060 Intangible assets, net $ 2,405,221 74,170 2,479,391 Total $ 2,951,864 $ 102,706 $ 3,054,570 March 31, 2019 (In thousands) North American OTC International OTC Consolidated Goodwill $ 547,393 $ 31,190 $ 578,583 Intangible assets Indefinite-lived 2,195,617 77,574 2,273,191 Finite-lived 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 Our goodwill and intangible assets by geographic area are as follows: Year Ended March 31, 2020 2019 United States $ 2,951,864 $ 2,971,753 Rest of world 102,706 114,040 Total $ 3,054,570 $ 3,085,793 |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | Unaudited Quarterly Financial Information Unaudited quarterly financial information for 2020 and 2019 is as follows: Year Ended March 31, 2020 Quarterly Period Ended (In thousands, except for per share data) June 30, September 30, December 31, March 31, Total revenues $ 232,154 $ 238,069 $ 241,552 $ 251,235 Cost of sales 98,087 101,318 104,057 107,325 Gross profit 134,067 136,751 137,495 143,910 Operating expenses Advertising and promotion 34,801 38,667 33,559 40,167 General and administrative 21,706 22,514 21,308 23,584 Depreciation and amortization 6,074 6,222 6,224 6,242 Total operating expenses 62,581 67,403 61,091 69,993 Operating income 71,486 69,348 76,404 73,917 Interest expense, net of interest income 25,020 24,477 24,275 22,452 Loss on extinguishment of debt — — 2,155 — Other expense (income), net 416 859 (580) 930 Income before income taxes 46,050 44,012 50,554 50,535 Provision for income taxes 12,125 10,760 12,496 13,489 Net income $ 33,925 $ 33,252 $ 38,058 $ 37,046 Earnings per share: Basic $ 0.66 $ 0.66 $ 0.76 $ 0.74 Diluted $ 0.65 $ 0.65 $ 0.75 $ 0.73 Weighted average shares outstanding: Basic 51,697 50,455 50,378 50,367 Diluted 52,047 50,811 50,831 50,878 Comprehensive (loss) income, net of tax: Currency translation adjustments (224) (3,584) 3,497 (12,052) Unrealized loss on interest rate swaps — — — (4,864) Unrecognized net gain on pension plans — — — (1,187) Total other comprehensive (loss) income (224) (3,584) 3,497 (18,103) Comprehensive income $ 33,701 $ 29,668 $ 41,555 $ 18,943 Year Ended March 31, 2019 Quarterly Period Ended (In thousands, except for per share data) June 30, September 30, December 31, March 31, Total revenues $ 253,980 $ 239,357 $ 241,414 $ 241,026 Cost of sales 113,357 101,885 102,179 102,780 Gross profit 140,623 137,472 139,235 138,246 Operating expenses Advertising and promotion 37,111 37,042 34,504 34,433 General and administrative 23,941 24,034 20,485 21,299 Depreciation and amortization 7,084 6,756 6,705 6,502 Gain on divestiture — (1,284) — — Goodwill and tradename impairment — — — 229,461 Total operating expenses 68,136 66,548 61,694 291,695 Operating income (loss) 72,487 70,924 77,541 (153,449) Interest expense, net of interest income 25,940 27,070 26,327 25,745 Other expense (income), net 87 335 218 (164) Income (loss) before income taxes 46,460 43,519 50,996 (179,030) Provision (benefit) for income taxes 11,994 12,678 12,829 (39,756) Net income (loss) $ 34,466 $ 30,841 $ 38,167 $ (139,274) Earnings (loss) per share: Basic $ 0.65 $ 0.59 $ 0.74 $ (2.68) Diluted $ 0.65 $ 0.59 $ 0.73 $ (2.68) Weighted average shares outstanding: Basic 52,640 51,841 51,881 51,912 Diluted 52,942 52,153 52,202 51,912 Comprehensive (loss) income, net of tax: Currency translation adjustments (2,974) (2,145) (2,020) 659 Unrecognized net loss on pension plans — — — 48 Total other comprehensive (loss) income (2,974) (2,145) (2,020) 707 Comprehensive income (loss) $ 31,492 $ 28,696 $ 36,147 $ (138,567) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Based Compensation On May 4, 2020, the Compensation and Talent Management Committee of our Board of Directors granted 79,070 performance units, 73,637 RSUs and stock options to acquire 249,874 shares of our common stock to certain executive officers and employees under the Plan. Performance units are earned based on achievement of the performance objectives set by the Compensation and Talent Management Committee and, if earned, vest in their entirety on the three three three three Also on May 4, 2020, Dawn M. Zier was elected to our Board of Directors and the Compensation and Talent Management Committee of our Board of Directors granted her 907 RSUs. The RSUs vest one year after the date of grant so long as membership on the Board of Directors continues through the vesting date, with settlement in common stock to occur on the earliest of Ms. Zier’s death, disability or the date on which her board membership ceases for reasons other than death or disability. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS Balance at Amounts Deductions Other Balance at Year Ended March 31, 2020 Reserves for sales returns and allowance $ 8,973 $ 57,505 $ (50,669) $ — $ 15,809 Reserves for trade promotions 15,491 88,502 (85,604) — 18,389 Reserves for consumer coupon redemptions 1,175 4,555 (3,667) — 2,063 Allowance for doubtful accounts 1,259 750 (624) — 1,385 Deferred tax valuation allowance 3,236 2,205 (a) — — 5,441 Year Ended March 31, 2019 Reserves for sales returns and allowance 8,813 56,276 (56,116) — 8,973 Reserves for trade promotions 13,062 (b) 90,844 (88,415) — 15,491 Reserves for consumer coupon redemptions 2,645 5,199 (6,669) — 1,175 Allowance for doubtful accounts 1,203 203 (147) — 1,259 Deferred tax valuation allowance 609 2,627 (c) — — 3,236 Year Ended March 31, 2018 Reserves for sales returns and allowance 9,429 62,953 (63,569) — 8,813 Reserves for trade promotions 15,193 78,669 (82,427) — 11,435 Reserves for consumer coupon redemptions 4,614 7,283 (9,252) — 2,645 Allowance for doubtful accounts 1,352 187 (336) — 1,203 Deferred tax valuation allowance 3,437 — — (2,828) (d) 609 (a) Relates to the unutilized foreign tax credit carryovers. (b) Reflects opening balance sheet adjustment related to the adoption of new revenue recognition standard. (c) Relates to the unutilized foreign tax credit carryovers. (d) Reclassified into a FIN 48 liability. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on March 31st of each year. References in these Consolidated Financial Statements or notes to a year (e.g., “2020”) mean our fiscal year ended on March 31st of that year. |
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. As discussed below, 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. |
Cash and Cash Equivalents | Cash and Cash EquivalentsWe consider all short-term deposits and investments with original maturities of three months or less to be cash equivalents. At March 31, 2020, approximately 14% of our cash is held by a bank in Sydney, Australia. Substantially all of our remaining cash is held by a large regional bank with headquarters in California. We do not believe that, as a result of this concentration, we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Federal Deposit Insurance Corporation (“FDIC”) and Securities Investor Protection Corporation (“SIPC”) insures our U.S. domestic balances, up to $250,000 and $500,000, with a $250,000 limit for cash, respectively. |
Accounts Receivable | Accounts ReceivableWe extend non-interest-bearing trade credit to our customers in the ordinary course of business. We maintain an allowance for doubtful accounts receivable based upon historical collection experience and expected collectability of the accounts receivable. In an effort to reduce credit risk, we (i) have established credit limits for all of our customer relationships, (ii) perform ongoing credit evaluations of customers’ financial condition, (iii) monitor the payment history and aging of customers’ receivables, and (iv) monitor open orders against an individual customer’s outstanding receivable balance. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, where cost is determined by using the first-in, first-out method. We reduce inventories for the diminution of value resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated net realizable value. Factors utilized in the determination of estimated net realizable value include (i) product expiration dates, (ii) current sales data and historical return rates, (iii) estimates of future demand, (iv) competitive pricing pressures, (v) new product introductions, and (vi) component and packaging obsolescence. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and are depreciated using the straight-line method based on the following estimated useful lives: Years Building 15 - 40 Machinery 3 - 15 Computer equipment and software 3 - 5 Furniture and fixtures 7 - 10 Leasehold improvements * *Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, we remove the cost and associated accumulated depreciation from the respective accounts and recognize the resulting gain or loss in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. |
Goodwill | Goodwill The excess of the purchase price over the fair market value of assets acquired and liabilities assumed in business combinations is classified as goodwill. Goodwill is not amortized, although the carrying value is tested for impairment at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit level, which is one level below the operating segment level. An impairment loss is recognized if the carrying amount of the reporting unit exceeds its fair value. |
Intangible Assets | Intangible Assets Intangible assets, which are comprised primarily of tradenames, are stated at cost less accumulated amortization. For intangible assets with finite lives, amortization is computed using the straight-line method over estimated useful lives, typically ranging from 10 to 30 years. Indefinite-lived intangible assets are tested for impairment at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may exceed their fair values and may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. |
Debt Origination Costs | Debt Origination CostsWe have incurred debt origination costs in connection with the issuance of long-term debt. These costs are amortized over the term of the related debt, using the effective interest method for our bonds and our term loan facility and the straight-line method for our revolving credit facility. Costs associated with our revolving credit facility are reported as a long-term asset and costs related to our senior notes and the term loan facility are recorded as a reduction of debt. |
Revenue Recognition | Revenue Recognition We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 on April 1, 2018 using the modified retrospective transition method and recognize revenue accordingly. Nature of Goods and Services We recognize revenue from product sales. We primarily ship finished goods to our customers and operate in two segments: North American OTC Healthcare and International OTC Healthcare. We sold our Household Cleaning segment on July 2, 2018 (see Note 2 for further details). The segments are based on differences in geographical area. The North America and International OTC Healthcare segments market a variety of personal care and over-the-counter products in the following product groups: Analgesics, Cough & Cold, Women's Health, Gastrointestinal, Eye & Ear Care, Dermatologicals, and Oral Care. Prior to its sale, the Household Cleaning segment focused on the sale of cleaning products. Our products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. We sell consumer products under a variety of brands through a broad distribution platform that includes mass merchandisers, drug, food, dollar, convenience and club stores, and e-commerce channels, all of which sell our products to consumers. See Note 21 for disaggregated revenue information. Satisfaction of Performance Obligations Under ASC 606, revenue is recognized when control of a promised good is transferred to a customer, in an amount that reflects the consideration that we expect to be entitled to receive in exchange for that good. This occurs either when finished goods are transferred to a common carrier for delivery to the customer or when product is picked up by the customer or the customer’s carrier. Once a product has transferred to the common carrier or been picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the product. It is at this point that we have a right to payment and the customer has legal title. Variable Consideration Provisions for certain rebates, customer promotional programs, product returns, and discounts to customers are accounted for as variable consideration and recorded as a reduction in sales. We record an estimate of future product returns, chargebacks and logistic deductions concurrent with recording sales, which is made using the most likely amount method which incorporates (i) historical return rates, (ii) current economic trends, (iii) changes in customer demand, (iv) product acceptance, (v) seasonality of our product offerings, and (vi) the impact of changes in product formulation, packaging and advertising. We participate in the promotional programs of our customers to enhance the sale of our products. These promotional programs consist of direct-to-consumer incentives, such as coupons and temporary price reductions, as well as incentives to our customers, such as allowances for new distribution, including slotting fees, and cooperative advertising. The costs of such activities are recorded as a reduction to revenue when the related sale takes place. Estimates of the costs of these promotional programs are derived using the most likely amount method, which incorporates (i) historical sales experience, (ii) the current promotional offering, (iii) forecasted data, (iv) current market conditions, and (v) communication with customer purchasing/marketing personnel. At the completion of the promotional program, the estimated amounts are adjusted to actual results. Practical Expedients Due to the nature (short duration) of our contracts with customers, we apply the practical expedient related to the disclosure of remaining performance obligations. Remaining performance obligations relate to contracts with a duration of less than one year, in which we have the right to invoice the customer at the time the performance obligation is satisfied for the amount of revenue recognized at that time. Accordingly, we have elected the practical expedient available under ASC 606 not to disclose remaining performance obligations for our contracts. The period between when control of the promised products transfers to the customer and when the customer pays for the products is one year or less. As such, we do not adjust product consideration for the effects of a significant financing component. The amortization period of any asset resulting from incremental costs of obtaining a contract would be one year or less. We expense incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. We account for shipping and handling costs as fulfillment activities and therefore recognize them upon shipment of goods. |
Cost of Sales | Cost of SalesCost of sales includes costs related to the manufacturing of our products, including raw materials, direct labor and indirect plant costs (including but not limited to depreciation), warehousing costs, inbound and outbound shipping costs, and handling and storage costs. |
Advertising and Promotion Costs | Advertising and Promotion CostsAdvertising and promotion costs are expensed as incurred. Allowances for distribution costs associated with products, including slotting fees, are recognized as a reduction of sales. |
Stock-based Compensation | Stock-based Compensation We recognize stock-based compensation expense by measuring the cost of services to be rendered based on the grant-date fair value of the equity award. Compensation expense is recognized over the period a grantee is required to provide service in exchange for the award, generally referred to as the requisite service period. |
Pension Expense | Pension Expense Certain employees of C.B. Fleet Company, Inc. ("Fleet"), our wholly owned subsidiary, are covered by defined benefit pension plans. The Company’s policy is to contribute at least the minimum amount required under The Employee Retirement Income Security Act of 1974 ("ERISA"). The Company may elect to make additional contributions. Benefits are based on years of service and levels of compensation. On December 16, 2014, the decision was made to freeze the benefits under the Company's U.S. qualified defined benefit pension plan with an effective date of March 1, 2015. |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). The Tax Act represented significant U.S. federal tax reform legislation that includes a permanent reduction to the U.S. federal corporate income tax rate. The permanent reduction to the federal corporate income tax rate resulted in a one-time benefit of $267.0 million related to the value of our deferred tax liabilities and a benefit of $3.2 million related to the lower blended tax rate on our earnings in the year ended March 31, 2018, resulting in a net benefit of $270.2 million. Additionally, the Tax Act subjects certain of our cumulative foreign earnings and profits to U.S. income taxes through a deemed repatriation, which resulted in a charge of $1.9 million during the year ended March 31, 2018. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted and signed into law in response to the COVID-19 pandemic. Certain provisions of the CARES Act impacted us and were reflected in our 2020 income tax provision computations. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification increased our allowable interest expense deduction and resulted in a lower taxable income for 2020. As a result of the CARES Act, it is anticipated that we will fully utilize the interest expense deduction on our 2020 tax return. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Income Taxes topic of the FASB ASC 740 prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities. As a result, we have applied such guidance in determining our tax uncertainties. We are subject to taxation in the United States and various state and foreign jurisdictions. We classify penalties and interest related to unrecognized tax benefits as income tax expense in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) 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 unvested 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 antidilutive effect, and therefore these instruments are excluded from the computation of diluted earnings per share. |
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 ("ROU") 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. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842). This update amended a number of aspects of lease accounting, including requiring lessees to recognize all leases with a term greater than one year as a 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 year ended March 31, 2020 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 provided 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 above 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. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326 - Financial Instruments - Credit Losses , which clarifies guidance on how to report expected recoveries. In February 2020, the FASB issued ASU 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) , which adds a paragraph on loan losses to FASB Codification Topic 326. 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. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The amendments in this update eliminate the need for an organization to analyze whether certain exceptions apply for tax purposes. It also simplifies GAAP for certain taxes. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Business and Basis of Present_3
Business and Basis of Presentation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment are stated at cost and are depreciated using the straight-line method based on the following estimated useful lives: Years Building 15 - 40 Machinery 3 - 15 Computer equipment and software 3 - 5 Furniture and fixtures 7 - 10 Leasehold improvements * *Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the related assets. Property, plant and equipment, net consist of the following: March 31, (In thousands) 2020 2019 Components of Property, Plant and Equipment Land $ 550 $ 550 Building 16,508 13,960 Machinery 42,299 38,761 Computer equipment 22,396 20,716 Furniture and fixtures 3,242 3,200 Leasehold improvements 8,964 9,090 Construction in progress 7,769 3,711 101,728 89,988 Accumulated depreciation (45,740) (38,812) Property, plant and equipment, net $ 55,988 $ 51,176 |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Year Ended March 31, (In thousands, except per share data) 2020 2019 2018 Numerator Net income (loss) $ 142,281 $ (35,800) $ 339,570 Denominator Denominator for basic earnings (loss) per share - weighted average shares outstanding 50,723 52,068 53,099 Dilutive effect of unvested restricted stock units and options issued to employees and directors 417 — 427 Denominator for diluted earnings (loss) per share 51,140 52,068 53,526 Earnings (loss) per Common Share: Basic net earnings (loss) per share $ 2.81 $ (0.69) $ 6.40 Diluted net earnings (loss) per share $ 2.78 $ (0.69) $ 6.34 |
Impact of New Accounting Pronouncements | 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. |
Divestiture (Tables)
Divestiture (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Components of assets sold and pre-tax gain | The following table sets forth the components of the assets sold and the pre-tax gain recognized on the sale in July 2018: (In thousands) July 2, 2018 Components of assets sold: Inventory $ 6,644 Property, plant and equipment, net 653 Goodwill 6,245 Intangible assets, net 49,315 Assets sold 62,857 Total purchase price received 65,912 (3,055) Costs to sell 1,771 Pre-tax gain on divestiture $ (1,284) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consist of the following: March 31, (In thousands) 2020 2019 Components of Accounts Receivable Trade accounts receivable $ 170,151 $ 161,047 Other receivables 560 705 170,711 161,752 Less allowances for discounts, returns and uncollectible accounts (20,194) (12,965) Accounts receivable, net $ 150,517 $ 148,787 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, (In thousands) 2020 2019 Components of Inventories Packaging and raw materials $ 9,803 $ 17,082 Work in process 355 161 Finished goods 105,868 102,637 Inventories $ 116,026 $ 119,880 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment are stated at cost and are depreciated using the straight-line method based on the following estimated useful lives: Years Building 15 - 40 Machinery 3 - 15 Computer equipment and software 3 - 5 Furniture and fixtures 7 - 10 Leasehold improvements * *Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the related assets. Property, plant and equipment, net consist of the following: March 31, (In thousands) 2020 2019 Components of Property, Plant and Equipment Land $ 550 $ 550 Building 16,508 13,960 Machinery 42,299 38,761 Computer equipment 22,396 20,716 Furniture and fixtures 3,242 3,200 Leasehold improvements 8,964 9,090 Construction in progress 7,769 3,711 101,728 89,988 Accumulated depreciation (45,740) (38,812) Property, plant and equipment, net $ 55,988 $ 51,176 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2018, 2019, and 2020: (In thousands) North American OTC Healthcare International OTC Healthcare Household Cleaning Consolidated Balance – March 31, 2018 Goodwill $ 711,104 $ 32,919 $ 71,405 $ 815,428 Accumulated impairment losses (130,170) — (65,160) (195,330) Balance - March 31, 2018 580,934 32,919 6,245 620,098 2019 Reductions: Goodwill (a) — — (71,405) (71,405) Accumulated impairment loss (a) — — 65,160 65,160 Effects of foreign currency exchange rates — (1,729) — (1,729) Impairment loss (33,541) — — (33,541) Balance – March 31, 2019 Goodwill 711,104 31,190 — 742,294 Accumulated impairment losses (163,711) — — — — — (163,711) Balance - March 31, 2019 $ 547,393 $ 31,190 $ — $ 578,583 2020 Reductions: — — — Goodwill (b) (750) — — (750) Effects of foreign currency exchange rates — (2,654) — (2,654) Balance – March 31, 2020 Goodwill 710,354 28,536 — 738,890 Accumulated impairment losses (163,711) — — (163,711) Balance - March 31, 2020 $ 546,643 $ 28,536 $ — $ 575,179 (a) As discussed in Note 2, on July 2, 2018, we sold our Household Cleaning segment. As a result, we decreased goodwill by $6.2 million, net of accumulated impairment charges. (b) Amount relates to cash received from escrow associated with our acquisition of Fleet. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Reconciliation of the Activity Affecting Intangible Assets | A reconciliation of the activity affecting intangible assets, net for each of 2020 and 2019 is as follows: Year Ended March 31, 2020 (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance – March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Additions (a) 2,760 — 2,760 Effects of foreign currency exchange rates (10,620) (482) (11,102) Balance – March 31, 2020 $ 2,265,331 $ 389,801 $ 2,655,132 Accumulated Amortization Balance – March 31, 2019 $ — $ 156,264 $ 156,264 Additions — 19,633 19,633 Effects of foreign currency exchange rates — (156) (156) Balance – March 31, 2020 $ — $ 175,741 $ 175,741 Intangible assets, net – March 31, 2020 $ 2,265,331 $ 214,060 $ 2,479,391 Intangible Assets, net by Reportable Segment: North American OTC Healthcare $ 2,195,617 $ 209,604 $ 2,405,221 International OTC Healthcare 69,714 4,456 74,170 Intangible assets, net – March 31, 2020 $ 2,265,331 $ 214,060 $ 2,479,391 (a) Amount relates to the acquisition of additional rights to an existing tradename. Year Ended March 31, 2019 (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance – March 31, 2018 $ 2,490,303 $ 441,314 $ 2,931,617 Reclassifications (25,152) 25,152 — Reductions (30,562) (34,889) (65,451) Tradename impairment (154,967) (40,953) (195,920) Effects of foreign currency exchange rates (6,431) (341) (6,772) Balance – March 31, 2019 $ 2,273,191 $ 390,283 $ 2,663,474 Accumulated Amortization Balance – March 31, 2018 $ — $ 150,701 $ 150,701 Additions — 21,767 21,767 Reductions — (16,136) (16,136) Effects of foreign currency exchange rates — (68) (68) Balance – March 31, 2019 $ — $ 156,264 $ 156,264 Intangible assets, net – March 31, 2019 $ 2,273,191 $ 234,019 $ 2,507,210 Intangible Assets, net by Reportable Segment: North American OTC Healthcare $ 2,195,617 $ 228,743 $ 2,424,360 International OTC Healthcare 77,574 5,276 82,850 Intangible assets, net – March 31, 2019 $ 2,273,191 $ 234,019 $ 2,507,210 |
Schedule of Expected Amortization Expense | At March 31, 2020, finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 30 years, and the estimated amortization expense for each of the five succeeding years and periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2021 19,606 2022 19,605 2023 19,605 2024 19,578 2025 17,535 Thereafter 118,131 $ 214,060 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the year ended March 31, 2020 were as follows: (In thousands) Finance lease cost: Amortization of right-of-use assets $ 522 Interest on lease liabilities 84 Operating lease cost 7,914 Short term lease cost 104 Variable lease cost 64,230 Sublease income (3,441) Total net lease cost $ 69,413 The weighted average remaining lease term and weighted average discount rate were as follows: March 31, 2020 Weighted average remaining lease term (years) Operating leases 5.40 Financing leases 4.50 Weighted average discount rate Operating leases 5.28 % Financing leases 3.55 % |
Maturities of Operating Leases | As of March 31, 2020, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Financing Leases Total 2021 $ 7,019 $ 1,404 $ 8,423 2022 6,497 1,404 7,901 2023 6,305 1,404 7,709 2024 6,294 1,404 7,698 2025 4,123 700 4,823 Thereafter 4,973 — 4,973 Total undiscounted lease payments 35,211 6,316 41,527 Less amount of lease payments representing interest (4,722) (470) (5,192) Total present value of lease payments $ 30,489 $ 5,846 $ 36,335 |
Maturities of Finance Leases | As of March 31, 2020, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Financing Leases Total 2021 $ 7,019 $ 1,404 $ 8,423 2022 6,497 1,404 7,901 2023 6,305 1,404 7,709 2024 6,294 1,404 7,698 2025 4,123 700 4,823 Thereafter 4,973 — 4,973 Total undiscounted lease payments 35,211 6,316 41,527 Less amount of lease payments representing interest (4,722) (470) (5,192) Total present value of lease payments $ 30,489 $ 5,846 $ 36,335 |
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 Topic 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) | 12 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following: March 31, (In thousands) 2020 2019 Accrued marketing costs $ 34,450 $ 31,228 Accrued compensation costs 13,393 10,958 Accrued broker commissions 1,491 1,361 Income taxes payable 3,210 88 Accrued professional fees 4,183 2,441 Accrued production costs 5,628 6,788 Accrued sales tax 1,917 4 Other accrued liabilities 6,491 7,795 $ 70,763 $ 60,663 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) March 31, March 31, 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, and were redeemed on December 16, 2019. — 400,000 2019 Senior Notes bearing interest at 5.125%, with interest payable on January 15 and July 15 of each year. The 2019 Senior Notes mature on January 15, 2028. 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. 690,000 738,000 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 December 11, 2024. 55,000 75,000 Long-term debt 1,745,000 1,813,000 Less: unamortized debt costs (14,700) (14,402) Long-term debt, net $ 1,730,300 $ 1,798,598 |
Schedule of Future Principal Payments | As of March 31, 2020, aggregate future principal payments required in accordance with the terms of the 2012 Term Loan, 2012 ABL Revolver and the indentures governing the 2016 Senior Notes and the 2019 Senior Notes are as follows: (In thousands) Year Ending March 31, Amount 2021 $ — 2022 — 2023 — 2024 1,290,000 2025 55,000 Thereafter 400,000 $ 1,745,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The market values have been determined based on market values for similar instruments adjusted for certain factors. As such, the 2016 Senior Notes, the 2019 Senior Notes, the Term B-5 Loans, the 2012 ABL Revolver and our interest rate swaps are measured in Level 2 of the above hierarchy (see summary below detailing the carrying amounts and estimated fair values of these instruments at March 31, 2020 and 2019). March 31, 2020 March 31, 2019 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2016 Senior Notes $ 600,000 $ 603,000 $ 600,000 $ 606,000 2013 Senior Notes — — 400,000 401,500 2019 Senior Notes 400,000 386,000 — — 2012 Term B-5 Loans 690,000 638,250 738,000 728,775 2012 ABL Revolver 55,000 55,000 75,000 75,000 Interest rate swaps 6,317 6,317 — — |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the fair values of our derivative instruments as of the March 31, 2020: (In thousands) Hedge Type Final Settlement Date Notional Amount Other Accrued Liabilities Other Long-Term Liabilities Interest rate swap Cash flow 1/31/2021 $ 200,000 $ (1,905) $ — Interest rate swap Cash flow 1/31/2022 $ 200,000 — (4,412) Total fair value $ (1,905) $ (4,412) |
Derivative Instruments, Gain (Loss) | The following table summarizes our interest rate swaps, net of tax, for the periods shown: (In thousands) Location 2020 2019 Loss Recognized in Other Comprehensive Loss (effective portion) Other comprehensive income (loss) (4,864) $ — Gain (Loss) Reclassified from Accumulative Other Comprehensive Loss into Income Interest expense — — Gain Recognized as Income Interest expense 62 — |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |
Schedule of Share Repurchases | Our share repurchases consisted of the following: Year Ended March 31, 2020 2019 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares 31,018 68,939 Average price per share $31.39 $33.09 Total amount repurchased $1.0 million $2.3 million Shares repurchased in conjunction with our share repurchase program: Number of shares 1,816,901 1,449,750 Average price per share $31.22 $34.47 Total amount repurchased $56.7 million $50.0 million |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Shares | A summary of the Company’s RSUs granted under the Plan is presented below: RSUs Shares Weighted-Average Vested and unvested at March 31, 2017 350.1 $ 39.29 Granted 105.8 55.61 Vested and issued (53.3) 34.30 Forfeited (9.1) 48.76 Vested and unvested at March 31, 2018 393.5 44.13 Vested at March 31, 2018 90.5 29.88 Granted 226.4 30.09 Vested and issued (175.8) 43.05 Forfeited (31.1) 48.32 Vested and unvested at March 31, 2019 413.0 36.58 Vested at March 31, 2019 113.2 31.05 Granted 220.3 31.02 Vested and issued (87.0) 46.78 Forfeited (34.2) 35.97 Vested and unvested at March 31, 2020 512.1 32.49 Vested at March 31, 2020 124.2 30.54 |
Stock Options, Valuation Assumptions | Year Ended March 31, 2020 2019 2018 Expected volatility 30.9-31.3 % 29.6 % 35.2 % Expected dividends — — — Expected term in years 6.0 to 7.0 6.0 6.0 Risk-free rate 2.3% to 2.4% 2.9 % 2.2 % Weighted-average grant date fair value of options granted $ 10.83 $ 10.22 $ 21.20 |
Stock Option Activity | A summary of option activity under the Plan is as follows: Options Shares Weighted-Average Weighted- Aggregate Outstanding at March 31, 2017 772.3 $ 37.70 Granted 182.8 56.11 Exercised (55.7) 29.08 Forfeited or expired (26.2) 48.19 Outstanding at March 31, 2018 873.2 41.79 Granted 294.5 29.46 Exercised (97.7) 30.02 Forfeited or expired (125.4) 47.16 Outstanding at March 31, 2019 944.6 38.45 Granted 302.7 30.53 Exercised (47.9) 27.60 Forfeited or expired (179.2) 42.49 Outstanding at March 31, 2020 1,020.2 35.90 6.7 $ 6,214 Exercisable at March 31, 2020 566.2 38.66 5.2 $ 3,514 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | AOCI consisted of the following at March 31, 2020 and 2019: March 31, March 31, (In thousands) 2020 2019 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (39,241) $ (26,878) Unrealized loss on interest rate swaps, net of tax of $1,453 (4,864) — Unrecognized net (loss) gain on pension plans, net of tax of $(17) and $338, respectively (56) 1,131 Accumulated other comprehensive loss, net of tax $ (44,161) $ (25,747) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income from Continuing Operations Before Income Taxes, Domestic and Foreign | Income (loss) before income taxes consists of the following: Year Ended March 31, (In thousands) 2020 2019 2018 United States $ 167,508 $ (52,313) $ 84,435 Foreign 23,643 14,258 22,651 $ 191,151 $ (38,055) $ 107,086 |
Components of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following: Year Ended March 31, (In thousands) 2020 2019 2018 Current Federal $ 24,051 $ 27,629 $ 31,327 State 2,506 3,156 2,686 Foreign 8,473 7,193 5,588 Deferred Federal 14,119 (35,760) (270,796) State (341) (4,101) (1,240) Foreign 62 (372) (49) Total provision (benefit) for income taxes $ 48,870 $ (2,255) $ (232,484) |
Components of Deferred Tax Balances | The principal components of our deferred tax balances are as follows: March 31, (In thousands) 2020 2019 Deferred Tax Assets Allowance for doubtful accounts and sales returns $ 4,996 $ 3,285 Inventory capitalization 1,168 1,245 Inventory reserves 705 1,267 Net operating loss carryforwards 115 226 State income taxes 8,896 9,003 Accrued liabilities 1,308 1,785 Accrued compensation 4,472 4,416 Stock compensation 4,334 4,206 Foreign tax credit 5,441 3,236 Interest — 154 Lease liability 8,228 — Unrealized foreign exchange loss 257 — Other 13,191 7,691 Total deferred tax assets $ 53,111 $ 36,514 Deferred Tax Liabilities Property, plant and equipment $ (7,590) $ (6,002) Intangible assets (438,601) (425,134) Deferred cumulative catch-up adjustments - revenue recognition adjustments (522) (721) Right-of-use asset (7,876) — Total deferred tax liabilities $ (454,589) $ (431,857) Net deferred tax liability before valuation allowance $ (401,478) $ (395,343) Valuation allowance (5,441) (3,236) Net deferred tax liability $ (406,919) $ (398,579) |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate compared to the statutory U.S. Federal tax rate is as follows: Year Ended March 31, 2020 2019 2018 (In thousands) % % % Income tax provision (benefit) at statutory rate $ 40,142 21.0 $ (7,992) 21.0 $ 37,480 35.0 Foreign tax provision (benefit) 2,498 1.3 2,866 (7.5) (2,084) (1.9) State income taxes, net of federal income tax benefit 1,606 0.8 (1,710) 4.5 1,414 1.3 Impact of tax legislation — — — — (268,244) (250.5) Goodwill impairment — — 5,616 (14.8) — — R&D (320) (0.2) (629) 1.7 — — Compensation limitations 562 0.3 296 (0.8) — — Valuation allowance 2,205 1.2 2,627 (6.9) (2,828) (2.6) Gain on sale — — 1,312 (3.4) — — Other 2,177 1.2 (4,641) 12.1 1,778 1.6 Total provision (benefit) for income taxes $ 48,870 25.6 $ (2,255) 5.9 $ (232,484) (217.1) |
Uncertain Tax Liability Activity | Uncertain tax liability activity is as follows: 2020 2019 2018 (In thousands) Balance – beginning of year $ 9,874 $ 10,827 $ 3,651 Additions based on tax positions related to the current year 495 585 7,286 Reductions based on lapse of statute of limitations — (650) (110) Payments and other movements — (888) — Balance – end of year $ 10,369 $ 9,874 $ 10,827 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Benefit Obligation and Plan Assets | The following table summarizes the changes in the U.S. pension plan obligations and plan assets and includes a statement of the plans' funded status as of March 31, 2020 and 2019: March 31, (In thousands) 2020 2019 Change in benefit obligation: Projected benefit obligation at beginning of period $ 60,334 $ 61,882 Interest cost 2,327 2,380 Actuarial (gain) loss 2,375 (744) Benefits paid (3,466) (3,184) Projected benefit obligations at end of year $ 61,570 $ 60,334 Change in plan assets: Fair value of plan assets at beginning of period $ 51,115 $ 50,508 Actual return on plan assets 3,742 2,416 Employer contribution 1,369 1,375 Benefits paid (3,466) (3,184) Fair value of plan assets at end of year $ 52,760 $ 51,115 Funded status at end of year $ (8,810) $ (9,219) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the balance sheet at the end of the period consist of the following: March 31, (In thousands) 2020 2019 Current liability $ 359 361 Long-term liability 8,451 8,858 Total $ 8,810 $ 9,219 |
Schedule of Primary Components of Net Periodic Benefits | The primary components of Net Periodic Benefits consist of the following: Year Ended March 31, (In thousands) 2020 2019 2018 Interest cost $ 2,327 $ 2,380 $ 2,529 Expected return on assets (2,886) (3,070) (2,901) Net periodic benefit (income) $ (559) $ (690) $ (372) |
Schedule of Expected to be Contributed | The following table includes amounts that are expected to be contributed to the plans by the Company. It reflects benefit payments that are made from the plans' assets as well as those made directly from the Company's assets. The amounts in the table are actuarially determined and reflect the Company's best estimate given its current knowledge; actual amounts could be materially different. (In thousands) Pension Benefits Employer contributions: 2021 (expectation) to participant benefits $ 1,359 Expected benefit payments year ending March 31, 2021 $ 3,476 2022 3,592 2023 3,669 2024 3,743 2025 3,718 2026-2030 18,670 |
Schedule of Allocation of Plan Assets | The asset allocation for the Company's funded retirement plan as of March 31, 2020 and 2019, and the target allocation by asset category are as follows: Percentage of Plan Assets Asset Category Target Allocation March 31, 2020 March 31, 2019 Domestic large cap equities 16 % 16 % 18 % Domestic small/mid cap equities 6 5 5 International equities 14 15 15 Real estate 5 5 — Fixed income and cash 59 59 62 Total 100 % 100 % 100 % |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) | The following tables show the unrecognized actuarial loss (gain) included in accumulated other comprehensive income (loss) at March 31, 2020, 2019 and 2018, as well as the prior service cost credit and actuarial loss expected to be reclassified from accumulated other comprehensive income (loss) to retirement expense during 2021: (In thousands) Balances in accumulated other comprehensive loss as of March 31, 2018: Unrecognized actuarial (gain) $ (1,407) Unrecognized prior service credit — Balances in accumulated other comprehensive (income) as of March 31, 2019: Unrecognized actuarial (gain) $ (1,469) Unrecognized prior service credit — Balances in accumulated other comprehensive loss as of March 31, 2020: Unrecognized actuarial loss $ 73 Unrecognized prior service credit — Amounts expected to be reclassified from accumulated other comprehensive income (loss) during 2021: Unrecognized actuarial gain (loss) $ — Unrecognized prior service credit — |
Schedule of Assumptions Used | Assumptions used in determining the actuarial present value of the benefit obligation as of March 31, 2020 and 2019 were as follows: March 31, 2020 2019 Key assumptions: Discount rate 3.37% to 3.55% 3.80% to 3.99% Expected return on plan assets, net of administrative fees 5.00% 5.75% Rate of compensation increase — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligations | The following table shows the minimum amounts that we are committed to pay under these agreements: (In thousands) Year Ending March 31, Amount 2021 $ 12,163 2022 11,929 2023 4,117 2024 2,364 2025 2,399 Thereafter 6,153 $ 39,125 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Information about our Operating and Reportable Segments | The tables below summarize information about our operating and reportable segments. Year Ended March 31, 2020 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 859,368 $ 103,642 $ — $ 963,010 Cost of sales 372,133 38,654 — 410,787 Gross profit 487,235 64,988 — 552,223 Advertising and promotion 127,972 19,222 — 147,194 Contribution margin $ 359,263 $ 45,766 $ — 405,029 Other operating expenses 113,874 Operating income 291,155 *Intersegment revenues of $3.5 million were eliminated from the North American OTC Healthcare segment. Year Ended March 31, 2019 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 862,446 $ 93,520 $ 19,811 $ 975,777 Cost of sales 364,533 39,080 16,588 420,201 Gross profit 497,913 54,440 3,223 555,576 Advertising and promotion 126,374 16,286 430 143,090 Contribution margin $ 371,539 $ 38,154 $ 2,793 412,486 Other operating expenses** 344,983 Operating income 67,503 * Intersegment revenues of $7.4 million were eliminated from the North American OTC Healthcare segment. **Other operating expenses for the year ended March 31, 2019 includes a tradename impairment charge of $195.9 million and a goodwill impairment charge of $33.5 million. Year Ended March 31, 2018 (In thousands) North American OTC International OTC Household Consolidated Total segment revenues* $ 868,874 $ 91,658 $ 80,647 $ 1,041,179 Cost of sales 357,298 40,244 67,132 464,674 Gross profit 511,576 51,414 13,515 576,505 Advertising and promotion 129,058 16,267 1,961 147,286 Contribution margin $ 382,518 $ 35,147 $ 11,554 429,219 Other operating expenses** 213,745 Operating income 215,474 *Intersegment revenues of $7.7 million were eliminated from the North America OTC Healthcare segment. |
Information about our Revenues from Similar Product Groups | The tables below summarize information about our segment revenues from similar product groups. Year Ended March 31, 2020 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 113,130 $ 877 $ — $ 114,007 Cough & Cold 87,601 23,505 — 111,106 Women's Health 239,330 12,221 — 251,551 Gastrointestinal 130,088 42,820 — 172,908 Eye & Ear Care 100,245 11,911 — 112,156 Dermatologicals 100,591 2,421 — 103,012 Oral Care 83,323 9,882 — 93,205 Other OTC 5,060 5 — 5,065 Household Cleaning — — — — Total segment revenues $ 859,368 $ 103,642 $ — $ 963,010 Year Ended March 31, 2019 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 113,563 $ 615 $ — $ 114,178 Cough & Cold 83,168 19,955 — 103,123 Women's Health 244,927 13,552 — 258,479 Gastrointestinal 125,416 35,046 — 160,462 Eye & Ear Care 101,128 11,709 — 112,837 Dermatologicals 95,801 2,171 — 97,972 Oral Care 92,964 10,468 — 103,432 Other OTC 5,479 4 — 5,483 Household Cleaning — — 19,811 19,811 Total segment revenues $ 862,446 $ 93,520 $ 19,811 $ 975,777 Year Ended March 31, 2018 (In thousands) North American OTC International OTC Household Consolidated Analgesics $ 118,610 $ 807 $ — $ 119,417 Cough & Cold 93,537 18,310 — 111,847 Women's Health 247,244 12,140 — 259,384 Gastrointestinal 117,627 34,609 — 152,236 Eye & Ear Care 92,308 11,744 — 104,052 Dermatologicals 94,775 2,113 — 96,888 Oral Care 99,072 11,930 — 111,002 Other OTC 5,701 5 — 5,706 Household Cleaning — — 80,647 80,647 Total segment revenues $ 868,874 $ 91,658 $ 80,647 $ 1,041,179 |
Segment Revenue by Geographic Area | Our total segment revenues by geographic area are as follows: Year Ended March 31, 2020 2019 2018 United States $ 812,653 $ 837,049 $ 903,511 Rest of world 150,357 138,728 137,668 Total $ 963,010 $ 975,777 $ 1,041,179 |
Allocation of Long-Term Assets to Segments | Our consolidated goodwill and intangible assets have been allocated to the reportable segments as follows: March 31, 2020 (In thousands) North American OTC International OTC Consolidated Goodwill $ 546,643 $ 28,536 $ 575,179 Intangible assets Indefinite-lived 2,195,617 69,714 2,265,331 Finite-lived 209,604 4,456 214,060 Intangible assets, net $ 2,405,221 74,170 2,479,391 Total $ 2,951,864 $ 102,706 $ 3,054,570 March 31, 2019 (In thousands) North American OTC International OTC Consolidated Goodwill $ 547,393 $ 31,190 $ 578,583 Intangible assets Indefinite-lived 2,195,617 77,574 2,273,191 Finite-lived 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 |
Goodwill and Intangible Assets by Geographic Areas | Our goodwill and intangible assets by geographic area are as follows: Year Ended March 31, 2020 2019 United States $ 2,951,864 $ 2,971,753 Rest of world 102,706 114,040 Total $ 3,054,570 $ 3,085,793 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Unaudited quarterly financial information for 2020 and 2019 is as follows: Year Ended March 31, 2020 Quarterly Period Ended (In thousands, except for per share data) June 30, September 30, December 31, March 31, Total revenues $ 232,154 $ 238,069 $ 241,552 $ 251,235 Cost of sales 98,087 101,318 104,057 107,325 Gross profit 134,067 136,751 137,495 143,910 Operating expenses Advertising and promotion 34,801 38,667 33,559 40,167 General and administrative 21,706 22,514 21,308 23,584 Depreciation and amortization 6,074 6,222 6,224 6,242 Total operating expenses 62,581 67,403 61,091 69,993 Operating income 71,486 69,348 76,404 73,917 Interest expense, net of interest income 25,020 24,477 24,275 22,452 Loss on extinguishment of debt — — 2,155 — Other expense (income), net 416 859 (580) 930 Income before income taxes 46,050 44,012 50,554 50,535 Provision for income taxes 12,125 10,760 12,496 13,489 Net income $ 33,925 $ 33,252 $ 38,058 $ 37,046 Earnings per share: Basic $ 0.66 $ 0.66 $ 0.76 $ 0.74 Diluted $ 0.65 $ 0.65 $ 0.75 $ 0.73 Weighted average shares outstanding: Basic 51,697 50,455 50,378 50,367 Diluted 52,047 50,811 50,831 50,878 Comprehensive (loss) income, net of tax: Currency translation adjustments (224) (3,584) 3,497 (12,052) Unrealized loss on interest rate swaps — — — (4,864) Unrecognized net gain on pension plans — — — (1,187) Total other comprehensive (loss) income (224) (3,584) 3,497 (18,103) Comprehensive income $ 33,701 $ 29,668 $ 41,555 $ 18,943 Year Ended March 31, 2019 Quarterly Period Ended (In thousands, except for per share data) June 30, September 30, December 31, March 31, Total revenues $ 253,980 $ 239,357 $ 241,414 $ 241,026 Cost of sales 113,357 101,885 102,179 102,780 Gross profit 140,623 137,472 139,235 138,246 Operating expenses Advertising and promotion 37,111 37,042 34,504 34,433 General and administrative 23,941 24,034 20,485 21,299 Depreciation and amortization 7,084 6,756 6,705 6,502 Gain on divestiture — (1,284) — — Goodwill and tradename impairment — — — 229,461 Total operating expenses 68,136 66,548 61,694 291,695 Operating income (loss) 72,487 70,924 77,541 (153,449) Interest expense, net of interest income 25,940 27,070 26,327 25,745 Other expense (income), net 87 335 218 (164) Income (loss) before income taxes 46,460 43,519 50,996 (179,030) Provision (benefit) for income taxes 11,994 12,678 12,829 (39,756) Net income (loss) $ 34,466 $ 30,841 $ 38,167 $ (139,274) Earnings (loss) per share: Basic $ 0.65 $ 0.59 $ 0.74 $ (2.68) Diluted $ 0.65 $ 0.59 $ 0.73 $ (2.68) Weighted average shares outstanding: Basic 52,640 51,841 51,881 51,912 Diluted 52,942 52,153 52,202 51,912 Comprehensive (loss) income, net of tax: Currency translation adjustments (2,974) (2,145) (2,020) 659 Unrecognized net loss on pension plans — — — 48 Total other comprehensive (loss) income (2,974) (2,145) (2,020) 707 Comprehensive income (loss) $ 31,492 $ 28,696 $ 36,147 $ (138,567) |
Business and Basis of Present_4
Business and Basis of Presentation (Cash and Cash Equivalents) (Details) | Mar. 31, 2020 |
Sydney, Australia | |
Cash and Cash Equivalents [Line Items] | |
Percentage of deposits held in one location (as percent) | 14.00% |
Business and Basis of Present_5
Business and Basis of Presentation (Property, Plant and Equipment) (Details) | 12 Months Ended |
Mar. 31, 2020 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 15 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 40 years |
Machinery | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 3 years |
Machinery | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 15 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 7 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 10 years |
Business and Basis of Present_6
Business and Basis of Presentation (Intangible Assets) (Details) | 12 Months Ended |
Mar. 31, 2020 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful lives | 10 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful lives | 30 years |
Business and Basis of Present_7
Business and Basis of Presentation (Revenue Recognition) (Details) | 12 Months Ended |
Mar. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Business and Basis of Present_8
Business and Basis of Presentation (Cost of Sales) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Warehousing, shipping and handling and storage costs | |||
Revenue from External Customer [Line Items] | |||
Warehousing, shipping and handling, and storage costs | $ 61.9 | $ 56.4 | $ 64.7 |
Business and Basis of Present_9
Business and Basis of Presentation (Income Taxes) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Net gain related to deferred tax liability | $ 267 |
Net gain related to the lower blended tax rate | 3.2 |
Net gain | 270.2 |
Repatriation charge | $ 1.9 |
Business and Basis of Presen_10
Business and Basis of Presentation (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator | |||||||||||
Net income | $ 37,046 | $ 38,058 | $ 33,252 | $ 33,925 | $ (139,274) | $ 38,167 | $ 30,841 | $ 34,466 | $ 142,281 | $ (35,800) | $ 339,570 |
Denominator | |||||||||||
Denominator for basic (loss) earnings per share - weighted average shares (in shares) | 50,367 | 50,378 | 50,455 | 51,697 | 51,912 | 51,881 | 51,841 | 52,640 | 50,723 | 52,068 | 53,099 |
Dilutive effect of unvested restricted common stock and options issued to employees and directors (in shares) | 417 | 0 | 427 | ||||||||
Denominator for diluted (loss) earnings per share (in shares) | 50,878 | 50,831 | 50,811 | 52,047 | 51,912 | 52,202 | 52,153 | 52,942 | 51,140 | 52,068 | 53,526 |
Earnings (loss) per Common Share: | |||||||||||
Basic net (loss) earnings per share (in USD per share) | $ 0.74 | $ 0.76 | $ 0.66 | $ 0.66 | $ (2.68) | $ 0.74 | $ 0.59 | $ 0.65 | $ 2.81 | $ (0.69) | $ 6.40 |
Diluted net (loss) earnings per share (in USD per share) | $ 0.73 | $ 0.75 | $ 0.65 | $ 0.65 | $ (2.68) | $ 0.73 | $ 0.59 | $ 0.65 | $ 2.78 | $ (0.69) | $ 6.34 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 300 | 1,400 | 400 |
Business and Basis of Presen_11
Business and Basis of Presentation (Leases) (Details) | Mar. 31, 2020 |
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 |
Business and Basis of Presen_12
Business and Basis of Presentation (New Lease Accounting Standard) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 28,888 | $ 17,435 | $ 0 |
Operating lease liabilities, current portion | 5,612 | 5,697 | 0 |
Long-term operating lease liabilities, net of current portion | 24,877 | 13,296 | 0 |
Other accrued liabilities | $ 70,763 | 59,105 | $ 60,663 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 17,435 | ||
Operating lease liabilities, current portion | 5,697 | ||
Long-term operating lease liabilities, net of current portion | 13,296 | ||
Other accrued liabilities | $ (1,558) |
Divestiture (Details)
Divestiture (Details) - Disposal group, disposed of by sale, not discontinued operations - Household Cleaning $ in Thousands | Jul. 02, 2018USD ($) |
Business Acquisition [Line Items] | |
Total purchase price received | $ 65,912 |
Pre-tax gain on divestiture | $ (1,284) |
Divestiture (Components of Asse
Divestiture (Components of Assets Sold) (Details) - Disposal group, disposed of by sale, not discontinued operations - Household Cleaning $ in Thousands | Jul. 02, 2018USD ($) |
Business Acquisition [Line Items] | |
Inventory | $ 6,644 |
Property, plant and equipment, net | 653 |
Goodwill | 6,245 |
Intangible assets, net | 49,315 |
Assets sold | 62,857 |
Total purchase price received | 65,912 |
Gain on disposal | (3,055) |
Costs to sell | 1,771 |
Pre-tax gain on divestiture | $ 1,284 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 170,711 | $ 161,752 |
Less allowances for discounts, returns and uncollectible accounts | (20,194) | (12,965) |
Accounts receivable, net | 150,517 | 148,787 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 170,151 | 161,047 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 560 | $ 705 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Packaging and raw materials | $ 9,803 | $ 17,082 |
Work in process | 355 | 161 |
Finished goods | 105,868 | 102,637 |
Inventories | 116,026 | 119,880 |
Inventory valuation reserves related to obsolete and slow-moving inventory | $ 6,500 | $ 5,500 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 101,728 | $ 89,988 | |
Accumulated depreciation | (45,740) | (38,812) | |
Property, plant and equipment, net | 55,988 | 51,176 | |
Depreciation expense | 8,800 | 10,000 | $ 10,100 |
Land | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 550 | 550 | |
Building | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 16,508 | 13,960 | |
Machinery | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 42,299 | 38,761 | |
Computer equipment | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 22,396 | 20,716 | |
Furniture and fixtures | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 3,242 | 3,200 | |
Leasehold improvements | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | 8,964 | 9,090 | |
Construction in progress | |||
Components of Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 7,769 | $ 3,711 |
Goodwill (Schedule of Changes)
Goodwill (Schedule of Changes) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Jul. 02, 2018 | Mar. 31, 2020 | Mar. 31, 2019 |
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning | $ 742,294 | $ 815,428 | ||
Accumulated impairment loss, beginning | (163,711) | (195,330) | ||
Goodwill, net, beginning | 578,583 | 620,098 | ||
Goodwill, written off related to sale of business unit | (71,405) | |||
Goodwill impairment, written off related to sale of business unit | 65,160 | |||
Effects of foreign currency exchange rates | (2,654) | (1,729) | ||
Accumulated impairment loss | $ (33,500) | (33,541) | ||
Reduction of goodwill for cash received from escrow | (750) | |||
Goodwill, gross, ending | 738,890 | 742,294 | ||
Accumulated impairment loss, ending | (163,711) | (163,711) | ||
Goodwill, net, ending | 575,179 | 578,583 | ||
North American OTC Healthcare | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning | 711,104 | 711,104 | ||
Accumulated impairment loss, beginning | (163,711) | (130,170) | ||
Goodwill, net, beginning | 547,393 | 580,934 | ||
Goodwill, written off related to sale of business unit | 0 | |||
Goodwill impairment, written off related to sale of business unit | 0 | |||
Effects of foreign currency exchange rates | 0 | 0 | ||
Accumulated impairment loss | (33,541) | |||
Reduction of goodwill for cash received from escrow | (750) | |||
Goodwill, gross, ending | 710,354 | 711,104 | ||
Accumulated impairment loss, ending | (163,711) | (163,711) | ||
Goodwill, net, ending | 546,643 | 547,393 | ||
International OTC Healthcare | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning | 31,190 | 32,919 | ||
Accumulated impairment loss, beginning | 0 | 0 | ||
Goodwill, net, beginning | 31,190 | 32,919 | ||
Goodwill, written off related to sale of business unit | 0 | |||
Goodwill impairment, written off related to sale of business unit | 0 | |||
Effects of foreign currency exchange rates | (2,654) | (1,729) | ||
Accumulated impairment loss | 0 | |||
Reduction of goodwill for cash received from escrow | 0 | |||
Goodwill, gross, ending | 28,536 | 31,190 | ||
Accumulated impairment loss, ending | 0 | 0 | ||
Goodwill, net, ending | 28,536 | 31,190 | ||
Household Cleaning | ||||
Goodwill [Roll Forward] | ||||
Goodwill, gross, beginning | 0 | 71,405 | ||
Accumulated impairment loss, beginning | 0 | (65,160) | ||
Goodwill, net, beginning | 0 | 6,245 | ||
Goodwill, written off related to sale of business unit | $ (6,200) | (71,405) | ||
Goodwill impairment, written off related to sale of business unit | 65,160 | |||
Effects of foreign currency exchange rates | 0 | 0 | ||
Accumulated impairment loss | 0 | |||
Reduction of goodwill for cash received from escrow | 0 | |||
Goodwill, gross, ending | 0 | 0 | ||
Accumulated impairment loss, ending | 0 | 0 | ||
Goodwill, net, ending | $ 0 | $ 0 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Mar. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, impairment loss | $ 33,500 | $ 33,541 |
Intangible Assets (Reconciliati
Intangible Assets (Reconciliation of Activity) (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, beginning | $ 2,273,191,000 | |||
Indefinite-lived intangibles, tradename impairment | 0 | |||
Indefinite-lived intangibles, ending | $ 2,273,191,000 | |||
Accumulated Amortization | ||||
Finite-lived intangibles, accumulated amortization, beginning | 156,264,000 | 150,701,000 | ||
Finite-lived intangibles, accumulated amortization, additions | 19,633,000 | 21,767,000 | ||
Finite-lived intangible assets, accumulated amortization, reductions | (16,136,000) | |||
Finite-lived intangibles, accumulated amortization, effects of foreign currency exchange rates | (156,000) | (68,000) | ||
Finite-lived intangibles, accumulated amortization, ending | 175,741,000 | 156,264,000 | ||
Gross Carrying Amounts | ||||
Intangible assets, gross, beginning | 2,663,474,000 | 2,931,617,000 | ||
Additions (a) | 2,760,000 | |||
Reclassifications | 0 | |||
Reductions | (65,451,000) | |||
Tradename impairment | 195,920,000 | |||
Effects of foreign currency exchange rates | (11,102,000) | (6,772,000) | ||
Intangible assets, gross, ending | 2,655,132,000 | 2,663,474,000 | ||
Indefinite-lived intangible assets | 2,273,191,000 | 2,273,191,000 | $ 2,273,191,000 | |
Finite-lived intangible assets | $ 214,060,000 | 234,019,000 | ||
Intangible assets, net (excluding goodwill) | 2,479,391,000 | 2,507,210,000 | ||
North American OTC Healthcare | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, beginning | 2,195,617,000 | |||
Indefinite-lived intangibles, ending | 2,195,617,000 | |||
Gross Carrying Amounts | ||||
Indefinite-lived intangible assets | 2,195,617,000 | 2,195,617,000 | 2,195,617,000 | |
Finite-lived intangible assets | 228,743,000 | |||
Intangible assets, net (excluding goodwill) | 2,405,221,000 | 2,424,360,000 | ||
International OTC Healthcare | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, beginning | 77,574,000 | |||
Indefinite-lived intangibles, ending | 77,574,000 | |||
Gross Carrying Amounts | ||||
Indefinite-lived intangible assets | 77,574,000 | 77,574,000 | 77,574,000 | |
Finite-lived intangible assets | 5,276,000 | |||
Intangible assets, net (excluding goodwill) | 74,170,000 | 82,850,000 | ||
Finite-Lived Tradenames and Customer Relationships | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, reductions | (155,000,000) | |||
Gross Carrying Amounts | ||||
Finite-lived intangibles, gross, beginning | 390,283,000 | 441,314,000 | ||
Finite-lived intangibles, additions | 0 | |||
Finite-lived intangibles, reclassifications | 25,152,000 | |||
Finite-lived intangibles, reductions | (34,889,000) | |||
Finite-lived intangibles, tradename impairment | (40,953,000) | |||
Finite-lived intangibles, effects of foreign currency exchange rates | (482,000) | (341,000) | ||
Finite-lived intangibles, gross, ending | 389,801,000 | 390,283,000 | ||
Accumulated Amortization | ||||
Finite-lived intangibles, accumulated amortization, beginning | 156,264,000 | 150,701,000 | ||
Finite-lived intangibles, accumulated amortization, additions | 19,633,000 | 21,767,000 | ||
Finite-lived intangible assets, accumulated amortization, reductions | (16,136,000) | |||
Finite-lived intangibles, accumulated amortization, effects of foreign currency exchange rates | (156,000) | (68,000) | ||
Finite-lived intangibles, accumulated amortization, ending | 175,741,000 | 156,264,000 | ||
Gross Carrying Amounts | ||||
Finite-lived intangible assets | 214,060,000 | |||
Finite-Lived Tradenames and Customer Relationships | North American OTC Healthcare | ||||
Gross Carrying Amounts | ||||
Finite-lived intangible assets | 209,604,000 | |||
Finite-Lived Tradenames and Customer Relationships | International OTC Healthcare | ||||
Gross Carrying Amounts | ||||
Finite-lived intangible assets | 4,456,000 | |||
Indefinite- Lived Tradenames | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, beginning | 2,273,191,000 | 2,490,303,000 | ||
Indefinite lived intangibles, additions | 2,760,000 | |||
Indefinite lived intangibles, reclassifications | (25,152,000) | |||
Indefinite-lived intangibles, reductions | (30,562,000) | |||
Indefinite-lived intangibles, tradename impairment | (154,967,000) | |||
Indefinite-lived intangibles, effects of foreign currency exchange rates | (10,620,000) | (6,431,000) | ||
Indefinite-lived intangibles, ending | 2,265,331,000 | 2,273,191,000 | ||
Gross Carrying Amounts | ||||
Indefinite-lived intangible assets | 2,265,331,000 | $ 2,490,303,000 | 2,265,331,000 | $ 2,273,191,000 |
Indefinite- Lived Tradenames | North American OTC Healthcare | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, ending | 2,195,617,000 | |||
Gross Carrying Amounts | ||||
Indefinite-lived intangible assets | 2,195,617,000 | 2,195,617,000 | ||
Indefinite- Lived Tradenames | International OTC Healthcare | ||||
Indefinite- Lived Tradenames | ||||
Indefinite-lived intangibles, ending | 69,714,000 | |||
Gross Carrying Amounts | ||||
Indefinite-lived intangible assets | $ 69,714,000 | $ 69,714,000 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) | Jul. 02, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($)asset |
Schedule of Intangible Assets [Line Items] | |||
Impairment of indefinite-lived assets | $ 0 | ||
Number of assets impaired | asset | 3 | ||
Finite-lived intangible assets, weighted average remaining period | 10 years 10 months 24 days | ||
Amortization of intangible assets | $ 19,633,000 | $ 21,767,000 | |
Minimum | |||
Schedule of Intangible Assets [Line Items] | |||
Intangible assets, useful lives | 10 years | ||
Maximum | |||
Schedule of Intangible Assets [Line Items] | |||
Intangible assets, useful lives | 30 years | ||
Finite-Lived Tradenames and Customer Relationships | |||
Schedule of Intangible Assets [Line Items] | |||
Indefinite-lived intangibles, reductions | (155,000,000) | ||
Intangible assets, tradename impairment | 40,953,000 | ||
Amortization of intangible assets | $ 19,633,000 | 21,767,000 | |
Indefinite- Lived Tradenames | |||
Schedule of Intangible Assets [Line Items] | |||
Indefinite-lived intangibles, reductions | (30,562,000) | ||
Impairment of indefinite-lived assets | $ 154,967,000 | ||
Disposal group, disposed of by sale, not discontinued operations | Household Cleaning | Household Cleaning | Finite-Lived Tradenames and Customer Relationships | |||
Schedule of Intangible Assets [Line Items] | |||
Finite-lived intangible assets written off | $ (18,800,000) | ||
Disposal group, disposed of by sale, not discontinued operations | Household Cleaning | Household Cleaning | Indefinite- Lived Tradenames | |||
Schedule of Intangible Assets [Line Items] | |||
Indefinite-lived intangibles, reductions | $ (30,500,000) | ||
Measurement Input, Cap Rate | |||
Schedule of Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset, increase (decrease) in measurement input | 0.50% | ||
Measurement Input, Long-term Revenue Growth Rate | |||
Schedule of Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset, increase (decrease) in measurement input | (0.50%) |
Intangible Assets (Expected Amo
Intangible Assets (Expected Amortization Expense) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2021 | $ 19,606 | |
2022 | 19,605 | |
2023 | 19,605 | |
2024 | 19,578 | |
2025 | 17,535 | |
Thereafter | 118,131 | |
Intangible assets, net | $ 214,060 | $ 234,019 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 522 |
Interest on lease liabilities | 84 |
Operating lease cost | 7,914 |
Short term lease cost | 104 |
Variable lease cost | 64,230 |
Sublease income | (3,441) |
Total net lease cost | $ 69,413 |
Leases (Lease Maturities) (Deta
Leases (Lease Maturities) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 7,019 |
2022 | 6,497 |
2023 | 6,305 |
2024 | 6,294 |
2025 | 4,123 |
Thereafter | 4,973 |
Total undiscounted lease payments | 35,211 |
Less amount of lease payments representing interest | (4,722) |
Total present value of lease payments | 30,489 |
Financing Leases | |
2021 | 1,404 |
2022 | 1,404 |
2023 | 1,404 |
2024 | 1,404 |
2025 | 700 |
Thereafter | 0 |
Total undiscounted lease payments | 6,316 |
Less amount of lease payments representing interest | (470) |
Total present value of lease payments | 5,846 |
Total | |
2021 | 8,423 |
2022 | 7,901 |
2023 | 7,709 |
2024 | 7,698 |
2025 | 4,823 |
Thereafter | 4,973 |
Total undiscounted lease payments | 41,527 |
Less amount of lease payments representing interest | (5,192) |
Total present value of lease payments | $ 36,335 |
Leases (Additional Information)
Leases (Additional Information) (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term (years), operating leases | 5 years 4 months 24 days |
Weighted average remaining lease term (years), financing leases | 4 years 6 months |
Weighted average discount rate, operating leases | 5.28% |
Weighted average discount rate, financing leases | 3.55% |
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 |
Operating Leases, Future Minimum Payments Due | 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 |
Operating Leases, Future Minimum Payments Due | 17,895 |
Equipment | |
Operating Leased Assets [Line Items] | |
2020 | 314 |
2021 | 248 |
2022 | 213 |
2023 | 105 |
2024 | 0 |
Thereafter | 0 |
Operating Leases, Future Minimum Payments Due | $ 880 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 | Jul. 31, 2019 | May 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets | $ 28,888 | $ 17,435 | $ 0 | |||
Operating lease liability | $ 30,489 | |||||
GEODIS Logistics LLC | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 5 years | |||||
Term of contract | 5 years | 5 years | ||||
Operating lease right-of-use assets | $ 18,900 | |||||
Operating lease liability | $ 18,900 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Apr. 01, 2019 | Mar. 31, 2019 |
Payables and Accruals [Abstract] | |||
Accrued marketing costs | $ 34,450 | $ 31,228 | |
Accrued compensation costs | 13,393 | 10,958 | |
Accrued broker commissions | 1,491 | 1,361 | |
Income taxes payable | 3,210 | 88 | |
Accrued professional fees | 4,183 | 2,441 | |
Accrued production costs | 5,628 | 6,788 | |
Accrued sales tax | 1,917 | 4 | |
Other accrued liabilities | 6,491 | 7,795 | |
Total other accrued liabilities | $ 70,763 | $ 59,105 | $ 60,663 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 11, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 21, 2018 | Feb. 19, 2016 | Dec. 17, 2013 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,745,000 | $ 1,813,000 | ||||
Less unamortized debt costs | (14,700) | (14,402) | ||||
Long-term debt, net | 1,730,300 | 1,798,598 | ||||
2016 Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 600,000 | 600,000 | ||||
Less unamortized debt costs | $ (5,800) | (4,300) | ||||
Debt instrument, stated interest rate (as percent) | 6.375% | 6.375% | 6.375% | |||
2013 Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 400,000 | ||||
Less unamortized debt costs | $ (3,500) | (2,800) | ||||
Debt instrument, stated interest rate (as percent) | 5.375% | 5.375% | ||||
2019 Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 400,000 | 0 | ||||
Debt instrument, stated interest rate (as percent) | 5.125% | |||||
2012 Senior Notes | Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 690,000 | 738,000 | ||||
2012 Senior Notes | Term Loans | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (as percent) | 2.00% | |||||
Debt instrument, variable rate, minimum | 0.00% | |||||
2012 Senior Notes | Term Loans | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (as percent) | 1.00% | |||||
Debt instrument, variable rate, minimum | 1.00% | |||||
2012 ABL Revolver | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (as percent) | 1.00% | |||||
2012 ABL Revolver | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (as percent) | 0.00% | |||||
2012 ABL Revolver | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 55,000 | 75,000 | ||||
Less unamortized debt costs | (1,100) | $ (800) | ||||
Repayments of long-term debt | 55,000 | |||||
Revolving credit facility, remaining borrowing capacity | $ 107,300 |
Long-Term Debt (Narrative 2012
Long-Term Debt (Narrative 2012 Term Loan and 2012 ABL Revolver) (Details) - USD ($) | Dec. 11, 2019 | Mar. 21, 2018 | Feb. 04, 2016 | Jun. 09, 2015 | Sep. 03, 2014 | Feb. 21, 2013 | Jan. 31, 2012 | Mar. 31, 2020 | Jan. 26, 2017 | May 08, 2015 |
2012 ABL Revolver | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Line of credit facility, commitment fee (as percent) | 0.25% | |||||||||
2012 ABL Revolver | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.00% | |||||||||
2012 ABL Revolver | LIBOR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, if increased | 1.25% | |||||||||
2012 ABL Revolver | LIBOR | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, if increased | 1.50% | |||||||||
2012 ABL Revolver | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 0.00% | |||||||||
2012 ABL Revolver | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, if increased | 0.25% | |||||||||
2012 ABL Revolver | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, if increased | 0.50% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 135,000,000 | ||||||||
Revolving credit facility, increase in borrowing capacity | $ 85,000,000 | |||||||||
Debt instrument, interest rate, decrease (as percent) | 0.25% | |||||||||
Line of credit facility, commitment fee (as percent) | 0.50% | |||||||||
Line of credit facility, conditional commitment fee (as percent) | 0.375% | |||||||||
Revolver increase in accordion feature | $ 35,000,000 | |||||||||
Debt instrument, average interest rate (as percent) | 4.00% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, fixed component (as percent) | 1.00% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | LIBOR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, conditional variable rate (as percent) | 2.00% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | LIBOR | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, conditional variable rate (as percent) | 2.25% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, conditional variable rate (as percent) | 1.00% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, conditional variable rate (as percent) | 1.25% | |||||||||
2012 ABL Revolver | Revolving Credit Facility | Federal Funds Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate, fixed component (as percent) | 0.50% | |||||||||
2012 ABL Revolver, Amendment No. 3 | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility, increase in borrowing capacity | $ 40,000,000 | |||||||||
ABL Revolver Amendment 4 | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
ABL Amendment No. 5 | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, temporary suspension of financial reporting covenant, period | 60 days | |||||||||
2012 ABL Revolver, Amendment No. 6 | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility, increase in borrowing capacity | $ 40,000,000 | |||||||||
Term Loans | 2012 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 660,000,000 | |||||||||
Debt instrument, term | 7 years | |||||||||
Debt instrument, discount (as percent) | 1.50% | |||||||||
Proceeds from issuance of long-term debt | $ 650,100,000 | |||||||||
Term Loans | 2012 Term Loan, Amendment No. 1 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.75% | |||||||||
Debt instrument, reference rate floor (as percent) | 1.00% | |||||||||
Term Loans | 2012 Term Loan, Amendment No. 1 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, reference rate floor (as percent) | 2.00% | |||||||||
Term Loans | 2012 Term Loan, Amendment No. 2 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, reference rate floor (as percent) | 1.00% | |||||||||
Term Loans | 2012 Term Loan, Amendment No. 2 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.125% | |||||||||
Term Loans | 2012 Term Loan, Amendment No. 2 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, reference rate floor (as percent) | 2.00% | |||||||||
Term Loans | 2012 Senior Notes | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.00% | |||||||||
Term Loans | 2012 Senior Notes | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.00% | |||||||||
Term Loans | Term B-5 Loans | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 2.00% | |||||||||
Debt instrument, reference rate floor (as percent) | 0.00% | |||||||||
Term Loans | Term B-5 Loans | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 1.00% | |||||||||
Debt instrument, reference rate floor (as percent) | 1.00% | |||||||||
2012 Term B-3 Loan | 2012 Term Loan, Amendment No. 3 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 852,500,000 | |||||||||
2012 Term B-1 Loan | 2012 Term Loan, Amendment No. 3 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | 207,500,000 | |||||||||
2012 Term B-2 Loan | 2012 Term Loan, Amendment No. 2 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 720,000,000 | |||||||||
2012 Term B-2 Loan | 2012 Term Loan, Amendment No. 2 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (as percent) | 3.50% | |||||||||
Debt instrument, reference rate floor (as percent) | 1.00% | |||||||||
2012 Term B-2 Loan | 2012 Term Loan, Amendment No. 2 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, reference rate floor (as percent) | 2.00% | |||||||||
Interest rate, contingent margin step-down per annum (as percent) | 3.25% | |||||||||
2012 Term B-2 Loan | 2012 Term Loan, Amendment No. 3 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 645,000,000 | |||||||||
2012 Term B-4 Loans | 2012 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,427,000,000 | |||||||||
Debt instrument, average interest rate (as percent) | 4.60% |
Long-Term Debt (Narrative 2013
Long-Term Debt (Narrative 2013 Senior Notes) (Details) - Senior Notes - 2013 Senior Notes - USD ($) | Mar. 31, 2020 | Dec. 17, 2013 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 400,000,000 | |
Debt instrument, stated interest rate (as percent) | 5.375% | 5.375% |
Long-Term Debt (Narrative 2016
Long-Term Debt (Narrative 2016 Senior Notes) (Details) - Senior Notes - 2016 Senior Notes - USD ($) | Mar. 21, 2018 | Mar. 31, 2020 | Feb. 19, 2016 |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 250,000,000 | $ 350,000,000 | |
Debt instrument, stated interest rate (as percent) | 6.375% | 6.375% | 6.375% |
Issuance price (as percent) | 101.00% |
Long-Term Debt (Narrative 2019
Long-Term Debt (Narrative 2019 Senior Notes) (Details) - USD ($) | Dec. 02, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 17, 2013 |
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 0 | $ 2,155,000 | $ 0 | $ 0 | $ 2,155,000 | $ 0 | $ 2,901,000 | ||
2019 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
Debt instrument, stated interest rate (as percent) | 5.125% | ||||||||
2013 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior debt | $ 400,000,000 | ||||||||
Loss on extinguishment of debt | $ 2,200,000 | ||||||||
2013 Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
Debt instrument, stated interest rate (as percent) | 5.375% | 5.375% | 5.375% |
Long-Term Debt (Narrative Redem
Long-Term Debt (Narrative Redemptions and Restrictions) (Details) | Feb. 19, 2016 |
Senior Notes | Indirect guarantee of indebtedness | 2016 Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price, percentage of principal amount (as percent) | 101.00% |
Long-Term Debt (Narrative Inter
Long-Term Debt (Narrative Interest Rate Swaps) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 31, 2020 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||
Unamortized debt costs | $ 14,700 | $ 14,402 | |
Interest Rate Swap | Designated as Hedging Instrument | |||
Debt Instrument [Line Items] | |||
Derivative, notional amount | $ 400,000 | ||
2016 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized debt costs | 5,800 | 4,300 | |
2013 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized debt costs | 3,500 | 2,800 | |
2012 Term Loan | Term Loans | |||
Debt Instrument [Line Items] | |||
Unamortized debt costs | 5,400 | 7,300 | |
Revolving Credit Facility | 2012 ABL Revolver | |||
Debt Instrument [Line Items] | |||
Unamortized debt costs | $ 1,100 | $ 800 |
Long-Term Debt (Maturities of L
Long-Term Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 1,290,000 | |
2025 | 55,000 | |
Thereafter | 400,000 | |
Long-term debt, gross | $ 1,745,000 | $ 1,813,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Carrying value | Interest Rate Swap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | $ 6,317 | $ 0 |
Carrying value | Senior Notes | 2016 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 600,000 | 600,000 |
Carrying value | Senior Notes | 2013 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 0 | 400,000 |
Carrying value | Senior Notes | 2019 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 400,000 | 0 |
Carrying value | Term Loans | 2012 Term B-5 Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 690,000 | 738,000 |
Carrying value | Revolving Credit Facility | 2012 ABL Revolver | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 55,000 | 75,000 |
Fair value | Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | 6,317 | 0 |
Fair value | Fair Value, Inputs, Level 2 | Senior Notes | 2016 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 603,000 | 606,000 |
Fair value | Fair Value, Inputs, Level 2 | Senior Notes | 2013 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 0 | 401,500 |
Fair value | Fair Value, Inputs, Level 2 | Senior Notes | 2019 Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 386,000 | 0 |
Fair value | Fair Value, Inputs, Level 2 | Term Loans | 2012 Term B-5 Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 638,250 | 728,775 |
Fair value | Fair Value, Inputs, Level 2 | Revolving Credit Facility | 2012 ABL Revolver | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | $ 55,000 | $ 75,000 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Jan. 31, 2020 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1,900 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 400,000 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 31, 2020 |
Interest Rate Swap Settlement Date January 2021 | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 200,000 | |
Interest Rate Swap Settlement Date January 2021 | Other Accrued Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | (1,905) | |
Interest Rate Swap Settlement Date January 2021 | Other Long-Term Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | 0 | |
Interest Rate Swap Settlement Date January 2022 | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 200,000 | |
Interest Rate Swap Settlement Date January 2022 | Other Accrued Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | 0 | |
Interest Rate Swap Settlement Date January 2022 | Other Long-Term Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | (4,412) | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 400,000 | |
Interest Rate Swap | Other Accrued Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | (1,905) | |
Interest Rate Swap | Other Long-Term Liabilities | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability | $ (4,412) |
Derivative Instruments (Schedul
Derivative Instruments (Schedule of Derivative Gains and Losses) (Details) - Interest Rate Swap - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Loss Recognized in Other Comprehensive Loss (effective portion) | $ (4,864) | $ 0 |
Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from Accumulative Other Comprehensive Loss into Income | 0 | 0 |
Gain Recognized as Income | $ 62 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | |
Mar. 31, 2020USD ($)vote$ / 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 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Class of Stock [Line Items] | |||
Treasury share repurchases | $ 57,695 | $ 52,259 | $ 1,075 |
Share Repurchase Program | |||
Class of Stock [Line Items] | |||
Restricted stock repurchased during period (in shares) | 1,816,901 | 1,449,750 | |
Restricted stock acquired, average cost per share (in USD per share) | $ 31.22 | $ 34.47 | |
Treasury share repurchases | $ 56,700 | $ 50,000 | |
Restricted Shares | |||
Class of Stock [Line Items] | |||
Restricted stock repurchased during period (in shares) | 31,018 | 68,939 | |
Restricted stock acquired, average cost per share (in USD per share) | $ 31.39 | $ 33.09 | |
Treasury share repurchases | $ 1,000 | $ 2,300 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | Jul. 30, 2019shares | May 13, 2019$ / sharesshares | May 06, 2019$ / sharesshares | May 31, 2014shares | Jun. 30, 2014shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase to plan term | 10 years | |||||||
Stock-based compensation costs | $ | $ 7,644 | $ 7,438 | $ 8,909 | |||||
Tax benefit recognized from share-based compensation expense | $ | 1,200 | 1,400 | 1,800 | |||||
Share-based compensation expense, not yet recognized | $ | $ 6,000 | |||||||
Share-based compensation expense, not yet recognized, period for recognition | 1 year | |||||||
Total fair value of shares vested | $ | $ 7,800 | 12,000 | 6,800 | |||||
Proceeds from exercise of stock options | $ | 1,324 | 2,931 | 1,620 | |||||
Income tax benefit realized from exercise of stock awards | $ | $ 700 | $ 1,300 | $ 1,100 | |||||
Number of shares available for issuance under plan (in shares) | 1,500,000 | |||||||
Options granted (in shares) | 302,700 | 294,500 | 182,800 | |||||
Options exercised, intrinsic value | $ | $ 400 | $ 800 | $ 1,200 | |||||
Performance Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock units granted in period (in shares) | 98,644 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock units granted in period (in shares) | 4,183 | 7,287 | 89,286 | 220,300 | 226,400 | 105,800 | ||
Restricted Stock Units (RSUs) | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock units, conversion ratio for securities into which each RSU may be converted | 1 | |||||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | 21,194 | 281,487 | ||||||
Award grant exercise price (in dollars per share) | $ / shares | $ 30.19 | $ 30.56 | ||||||
Award exercisability period, from date of grant (not greater than) | 10 years | |||||||
Stock Options | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Stock Options | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
2005 Long-term Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 5,000,000 | |||||||
Number of additional shares authorized under plan (in shares) | 1,800,000 | |||||||
Maximum number of shares awarded, per employee, annual (in shares) | 1,000,000 | 2,500,000 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Shares Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares | Jul. 30, 2019 | May 13, 2019 | May 06, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Shares | ||||||
Outstanding, beginning of period (in shares) | 413,000 | 393,500 | 350,100 | |||
Granted (in shares) | 4,183 | 7,287 | 89,286 | 220,300 | 226,400 | 105,800 |
Vested and issued (in shares) | (87,000) | (175,800) | (53,300) | |||
Forfeited (in shares) | (34,200) | (31,100) | (9,100) | |||
Outstanding, end of period (in shares) | 512,100 | 413,000 | 393,500 | |||
Vested, end of period (in shares) | 124,200 | 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 | $ 39.29 | |||
Granted, weighted-average grant-date fair value (in USD per share) | 31.02 | 30.09 | 55.61 | |||
Vested and issued, weighted-average grant-date fair value (in USD per share) | 46.78 | 43.05 | 34.30 | |||
Forfeited, weighted-average grant-date fair value (in USD per share) | 35.97 | 48.32 | 48.76 | |||
Outstanding, end of period, weighted-average grant-date fair value (in USD per share) | 32.49 | 36.58 | 44.13 | |||
Vested, end of period, weighted-average grant-date fair value (in USD per share) | $ 30.54 | $ 31.05 | $ 29.88 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Valuation Assumptions) (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.60% | 35.20% | |
Expected dividends | $ 0 | $ 0 | $ 0 |
Expected term in years | 6 years | 6 years | |
Risk-free rate | 2.90% | 2.20% | |
Weighted-average grant date fair value of options granted (in USD per share) | $ 10.83 | $ 10.22 | $ 21.20 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 30900.00% | ||
Expected term in years | 6 years | ||
Risk-free rate | 2300.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 31300.00% | ||
Expected term in years | 7 years | ||
Risk-free rate | 2400.00% |
Share-Based Compensation (Sto_2
Share-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | |||
Outstanding, beginning of period (in shares) | 944,600 | 873,200 | 772,300 |
Granted (in shares) | 302,700 | 294,500 | 182,800 |
Exercised (in shares) | (47,900) | (97,700) | (55,700) |
Forfeited or expired (in shares) | (179,200) | (125,400) | (26,200) |
Outstanding, end of period (in shares) | 1,020,200 | 944,600 | 873,200 |
Exercisable, end of period (in shares) | 566,200 | ||
Weighted-Average Exercise Price | |||
Outstanding, beginning of period, weighted-average exercise price (in USD per share) | $ 38.45 | $ 41.79 | $ 37.70 |
Options, grant date fair value (in USD per share) | 30.53 | 29.46 | 56.11 |
Exercised, weighted-average exercise price (in USD per share) | 27.60 | 30.02 | 29.08 |
Forfeited or expired, weighted-average exercise price (in USD per share) | 42.49 | 47.16 | 48.19 |
Outstanding, end of period, weighted-average exercise price (in USD per share) | 35.90 | $ 38.45 | $ 41.79 |
Exercisable, end of period, weighted-average exercise price (in USD per share) | $ 38.66 | ||
Options | |||
Outstanding, end of period, weighted-average remaining contractual term | 6 years 8 months 12 days | ||
Exercisable, end of period, weighted-average remaining contractual term | 5 years 2 months 12 days | ||
Outstanding, end of period, aggregate intrinsic value | $ 6,214 | ||
Exercisable, end of period, aggregate intrinsic value | $ 3,514 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of Accumulated Other Comprehensive Loss | $ 1,170,971,000 | $ 1,095,831,000 | $ 1,178,610,000 | $ 822,549,000 |
Reclassification from AOCI | 0 | 0 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | (17,000) | 338,000 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 1,453,000 | 0 | ||
Accumulated other comprehensive loss, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of Accumulated Other Comprehensive Loss | (44,161,000) | (25,747,000) | $ (19,315,000) | $ (26,352,000) |
Cumulative translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of Accumulated Other Comprehensive Loss | (39,241,000) | (26,878,000) | ||
Unrealized loss on interest rate swaps, net of tax of $1,453 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of Accumulated Other Comprehensive Loss | (4,864,000) | 0 | ||
Unrecognized net (loss) gain on pension plans, net of tax of $(17) and $338, respectively | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of Accumulated Other Comprehensive Loss | $ (56,000) | $ 1,131,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2018 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Net gain related to deferred tax liability | $ 267,000 | ||
Net gain related to the lower blended tax rate | 3,200 | ||
Net gain | 270,200 | ||
Repatriation charge | $ 1,900 | ||
Valuation allowance | $ 5,441 | $ 3,236 | |
Estimated reduction in uncertain tax provisions, next 12 months | 6,700 | ||
Foreign | |||
Income Tax Contingency [Line Items] | |||
Long-term deferred tax assets | $ 900 | $ 1,000 |
Income Taxes (Income Before Con
Income Taxes (Income Before Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income from Continuing Operations before Income Taxes: | |||||||||||
United States | $ 167,508 | $ (52,313) | $ 84,435 | ||||||||
Foreign | 23,643 | 14,258 | 22,651 | ||||||||
Income (loss) before income taxes | $ 50,535 | $ 50,554 | $ 44,012 | $ 46,050 | $ (179,030) | $ 50,996 | $ 43,519 | $ 46,460 | $ 191,151 | $ (38,055) | $ 107,086 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current | |||||||||||
Federal | $ 24,051 | $ 27,629 | $ 31,327 | ||||||||
State | 2,506 | 3,156 | 2,686 | ||||||||
Foreign | 8,473 | 7,193 | 5,588 | ||||||||
Deferred | |||||||||||
Federal | 14,119 | (35,760) | (270,796) | ||||||||
State | (341) | (4,101) | (1,240) | ||||||||
Foreign | 62 | (372) | (49) | ||||||||
Total provision (benefit) for income taxes | $ 13,489 | $ 12,496 | $ 10,760 | $ 12,125 | $ (39,756) | $ 12,829 | $ 12,678 | $ 11,994 | $ 48,870 | $ (2,255) | $ (232,484) |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred Tax Assets | ||
Allowance for doubtful accounts and sales returns | $ 4,996 | $ 3,285 |
Inventory capitalization | 1,168 | 1,245 |
Inventory reserves | 705 | 1,267 |
Net operating loss carryforwards | 115 | 226 |
State income taxes | 8,896 | 9,003 |
Accrued liabilities | 1,308 | 1,785 |
Accrued compensation | 4,472 | 4,416 |
Stock compensation | 4,334 | 4,206 |
Foreign tax credit | 5,441 | 3,236 |
Interest | 0 | 154 |
Lease liability | 8,228 | 0 |
Unrealized foreign exchange loss | 257 | 0 |
Other | 13,191 | 7,691 |
Total deferred tax assets | 53,111 | 36,514 |
Deferred Tax Liabilities | ||
Property, plant and equipment | (7,590) | (6,002) |
Intangible assets | (438,601) | (425,134) |
Deferred cumulative catch-up adjustments - revenue recognition adjustments | (522) | (721) |
Right-of-use asset | (7,876) | 0 |
Total deferred tax liabilities | (454,589) | (431,857) |
Net deferred tax liability before valuation allowance | (401,478) | (395,343) |
Valuation allowance | (5,441) | (3,236) |
Net deferred tax liability | $ (406,919) | $ (398,579) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) at statutory rate | $ 40,142 | $ (7,992) | $ 37,480 |
Income tax provision at statutory rate (as percent) | 21.00% | 21.00% | 35.00% |
Foreign tax provision (benefit) | $ 2,498 | $ 2,866 | $ (2,084) |
Foreign tax benefit provision (as percent) | 1.30% | (7.50%) | (1.90%) |
State income taxes, net of federal income tax benefit | $ 1,606 | $ (1,710) | $ 1,414 |
State income taxes, net of federal income tax benefit (as percent) | 0.80% | 4.50% | 1.30% |
Impact of tax legislation | $ 0 | $ 0 | $ (268,244) |
Impact of tax (as percent) | 0 | 0 | (2.505) |
Goodwill impairment | $ 0 | $ 5,616 | $ 0 |
Goodwill impairment (as percent) | 0.00% | (14.80%) | 0.00% |
R&D | $ (320) | $ (629) | $ 0 |
R&D (as percent) | (0.20%) | 1.70% | 0.00% |
Compensation limitations | $ 562 | $ 296 | $ 0 |
Compensation limitations (as percent) | 0.30% | (0.80%) | 0.00% |
Valuation allowance | $ 2,205 | $ 2,627 | $ (2,828) |
Valuation allowance (as percent) | 1.20% | (6.90%) | (2.60%) |
Gain on sale | $ 0 | $ 1,312 | $ 0 |
Gain on sale (as percent) | 0.00% | (3.40%) | 0.00% |
Other | $ 2,177 | $ (4,641) | $ 1,778 |
Other (as percent) | 1.20% | 12.10% | 1.60% |
Total provision (benefit) for income taxes | $ 48,870 | $ (2,255) | $ (232,484) |
Total provision for income taxes (as percent) | 25.60% | 5.90% | (217.10%) |
Income Taxes (Uncertain Tax Lia
Income Taxes (Uncertain Tax Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance – beginning of year | $ 9,874 | $ 10,827 | $ 3,651 |
Additions based on tax positions related to the current year | 495 | 585 | 7,286 |
Reductions based on lapse of statute of limitations | 0 | (650) | (110) |
Payments and other movements | 0 | (888) | 0 |
Balance – end of year | $ 10,369 | $ 9,874 | $ 10,827 |
Employee Retirement Plans (Narr
Employee Retirement Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, minimum annual contributions per participating employee (as percent) | 1.00% | ||
Defined contribution plan, maximum annual contributions per employee (as percent) | 70.00% | ||
Defined contribution plan, cost recognized | $ 1,500,000 | $ 1,500,000 | $ 1,600,000 |
Defined benefit obligation | 61,570,000 | 60,334,000 | 61,882,000 |
Net periodic benefit cost (income) | $ (559,000) | $ (690,000) | (372,000) |
Expected return on plan assets, net of administrative fees (as percent) | 5.00% | 5.75% | |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost (income) | $ (1,000,000) | ||
Qualified plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions to the qualified plan | 1,000,000 | $ 1,000,000 | $ 0 |
Unfunded plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit obligation | $ 4,600,000 | $ 4,600,000 | |
Contribution Tranche One | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match (as percent) | 100.00% | ||
Defined contribution plan, employer matching contribution, percent of employees pay (as percent) | 3.00% | ||
Contribution Tranche Two | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match (as percent) | 50.00% | ||
Defined contribution plan, employer matching contribution, percent of employees pay (as percent) | 3.00% |
Employee Retirement Plans (Peri
Employee Retirement Plans (Periodic Service Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Change in benefit obligation: | |||
Projected benefit obligation at beginning of period | $ 60,334 | $ 61,882 | |
Interest cost | 2,327 | 2,380 | $ 2,529 |
Actuarial (gain) loss | 2,375 | (744) | |
Benefits paid | (3,466) | (3,184) | |
Projected benefit obligations at end of year | 61,570 | 60,334 | 61,882 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 51,115 | 50,508 | |
Actual return on plan assets | 3,742 | 2,416 | |
Employer contribution | 1,369 | 1,375 | |
Benefits paid | (3,466) | (3,184) | |
Fair value of plan assets at end of year | 52,760 | 51,115 | $ 50,508 |
Funded status at end of year | $ (8,810) | $ (9,219) |
Employee Retirement Plans (Amou
Employee Retirement Plans (Amounts Recognized in the Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||
Current liability | $ 359 | $ 361 |
Long-term liability | 8,451 | 8,858 |
Total | $ 8,810 | $ 9,219 |
Employee Retirement Plans (Expe
Employee Retirement Plans (Expected Return on Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Interest cost | $ 2,327 | $ 2,380 | $ 2,529 |
Expected return on assets | (2,886) | (3,070) | (2,901) |
Net periodic benefit (income) | $ (559) | $ (690) | $ (372) |
Employee Retirement Plans (Ex_2
Employee Retirement Plans (Expected Benefit Payments) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Share-based Payment Arrangement [Abstract] | |
2021 (expectation) to participant benefits | $ 1,359 |
2021 | 3,476 |
2022 | 3,592 |
2023 | 3,669 |
2024 | 3,743 |
2025 | 3,718 |
2026-2029 | $ 18,670 |
Employee Retirement Plans (Cate
Employee Retirement Plans (Category of Plan Assets) (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
Domestic large cap equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 16.00% | |
Percentage of Plan Assets | 16.00% | 18.00% |
Domestic small/mid cap equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 6.00% | |
Percentage of Plan Assets | 5.00% | 5.00% |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 14.00% | |
Percentage of Plan Assets | 15.00% | 15.00% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Percentage of Plan Assets | 5.00% | 0.00% |
Fixed income and cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 59.00% | |
Percentage of Plan Assets | 59.00% | 62.00% |
Employee Retirement Plans (Accu
Employee Retirement Plans (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||
Unrecognized actuarial (gain) | $ 73 | $ (1,469) | $ (1,407) |
Unrecognized prior service credit | 0 | $ 0 | $ 0 |
Amounts expected to be reclassified from accumulated other comprehensive income (loss) during 2021: | |||
Unrecognized actuarial gain (loss) | 0 | ||
Unrecognized prior service credit | $ 0 |
Employee Retirement Plans (Weig
Employee Retirement Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected return on plan assets, net of administrative fees | 5.00% | 5.75% |
Rate of compensation increase | 0.00% | 0.00% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.37% | 3.80% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.55% | 3.99% |
Commitments and Contingencies_2
Commitments and Contingencies (Long-term Supply Agreement) (Details) - Third-party Manufacturing $ in Thousands | Mar. 31, 2020USD ($) |
Long-term Purchase Commitment [Line Items] | |
2021 | $ 12,163 |
2022 | 11,929 |
2023 | 4,117 |
2024 | 2,364 |
2025 | 2,399 |
Thereafter | 6,153 |
Total purchase commitment | $ 39,125 |
Concentrations of Risk (Details
Concentrations of Risk (Details) - manufacturer | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Concentration Risk [Line Items] | |||
Number of third-party manufacturers | 113 | ||
Sales | Product concentration risk | Top 5 brands | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 42.60% | 42.90% | 41.20% |
Sales | Customer concentration risk | Walmart | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.10% | 23.70% | 23.80% |
Sales | Supplier concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 62.30% | 65.60% | |
Number of third-party manufacturers with long-term contracts | 14 | 33 | |
Accounts receivable | Customer concentration risk | Walmart | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.20% |
Business Segments (Information
Business Segments (Information on Operating and Reportable Segments) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Segment Reporting Information, Profit (Loss): | ||||||||||||
Total segment revenues | $ 251,235 | $ 241,552 | $ 238,069 | $ 232,154 | $ 241,026 | $ 241,414 | $ 239,357 | $ 253,980 | $ 963,010 | $ 975,777 | $ 1,041,179 | |
Cost of sales | 107,325 | 104,057 | 101,318 | 98,087 | 102,780 | 102,179 | 101,885 | 113,357 | 410,787 | 420,201 | 464,674 | |
Gross profit | 143,910 | 137,495 | 136,751 | 134,067 | 138,246 | 139,235 | 137,472 | 140,623 | 552,223 | 555,576 | 576,505 | |
Advertising and promotion | 40,167 | 33,559 | 38,667 | 34,801 | 34,433 | 34,504 | 37,042 | 37,111 | 147,194 | 143,090 | 147,286 | |
Contribution margin | 405,029 | 412,486 | 429,219 | |||||||||
Other operating expenses | 113,874 | 344,983 | 213,745 | |||||||||
Operating income | $ 73,917 | $ 76,404 | $ 69,348 | $ 71,486 | $ (153,449) | $ 77,541 | $ 70,924 | $ 72,487 | 291,155 | 67,503 | 215,474 | |
Tradename impairment | 195,920 | |||||||||||
Goodwill, impairment loss | $ 33,500 | 33,541 | ||||||||||
Other operating expenses | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Goodwill, impairment loss | 33,500 | |||||||||||
North American OTC Healthcare | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Total segment revenues | 859,368 | 862,446 | 868,874 | |||||||||
Cost of sales | 372,133 | 364,533 | 357,298 | |||||||||
Gross profit | 487,235 | 497,913 | 511,576 | |||||||||
Advertising and promotion | 127,972 | 126,374 | 129,058 | |||||||||
Contribution margin | 359,263 | 371,539 | 382,518 | |||||||||
Goodwill, impairment loss | 33,541 | |||||||||||
North American OTC Healthcare | Intersegment Eliminations | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Total segment revenues | 3,500 | (7,400) | (7,700) | |||||||||
International OTC Healthcare | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Total segment revenues | 103,642 | 93,520 | 91,658 | |||||||||
Cost of sales | 38,654 | 39,080 | 40,244 | |||||||||
Gross profit | 64,988 | 54,440 | 51,414 | |||||||||
Advertising and promotion | 19,222 | 16,286 | 16,267 | |||||||||
Contribution margin | 45,766 | 38,154 | 35,147 | |||||||||
Goodwill, impairment loss | 0 | |||||||||||
Household Cleaning | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Total segment revenues | 0 | 19,811 | 80,647 | |||||||||
Cost of sales | 0 | 16,588 | 67,132 | |||||||||
Gross profit | 0 | 3,223 | 13,515 | |||||||||
Advertising and promotion | 0 | 430 | 1,961 | |||||||||
Contribution margin | $ 0 | 2,793 | 11,554 | |||||||||
Goodwill, impairment loss | 0 | |||||||||||
Finite-Lived Tradenames and Customer Relationships | Other operating expenses | ||||||||||||
Segment Reporting Information, Profit (Loss): | ||||||||||||
Tradename impairment | $ 195,900 | $ 99,900 |
Business Segments (Revenue by P
Business Segments (Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | $ 251,235 | $ 241,552 | $ 238,069 | $ 232,154 | $ 241,026 | $ 241,414 | $ 239,357 | $ 253,980 | $ 963,010 | $ 975,777 | $ 1,041,179 |
Analgesics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 114,007 | 114,178 | 119,417 | ||||||||
Cough & Cold | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 111,106 | 103,123 | 111,847 | ||||||||
Women's Health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 251,551 | 258,479 | 259,384 | ||||||||
Gastrointestinal | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 172,908 | 160,462 | 152,236 | ||||||||
Eye & Ear Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 112,156 | 112,837 | 104,052 | ||||||||
Dermatologicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 103,012 | 97,972 | 96,888 | ||||||||
Oral Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 93,205 | 103,432 | 111,002 | ||||||||
Other OTC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 5,065 | 5,483 | 5,706 | ||||||||
Household Cleaning | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 19,811 | 80,647 | ||||||||
North American OTC Healthcare | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 859,368 | 862,446 | 868,874 | ||||||||
North American OTC Healthcare | Analgesics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 113,130 | 113,563 | 118,610 | ||||||||
North American OTC Healthcare | Cough & Cold | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 87,601 | 83,168 | 93,537 | ||||||||
North American OTC Healthcare | Women's Health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 239,330 | 244,927 | 247,244 | ||||||||
North American OTC Healthcare | Gastrointestinal | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 130,088 | 125,416 | 117,627 | ||||||||
North American OTC Healthcare | Eye & Ear Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 100,245 | 101,128 | 92,308 | ||||||||
North American OTC Healthcare | Dermatologicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 100,591 | 95,801 | 94,775 | ||||||||
North American OTC Healthcare | Oral Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 83,323 | 92,964 | 99,072 | ||||||||
North American OTC Healthcare | Other OTC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 5,060 | 5,479 | 5,701 | ||||||||
International OTC Healthcare | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 103,642 | 93,520 | 91,658 | ||||||||
International OTC Healthcare | Analgesics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 877 | 615 | 807 | ||||||||
International OTC Healthcare | Cough & Cold | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 23,505 | 19,955 | 18,310 | ||||||||
International OTC Healthcare | Women's Health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 12,221 | 13,552 | 12,140 | ||||||||
International OTC Healthcare | Gastrointestinal | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 42,820 | 35,046 | 34,609 | ||||||||
International OTC Healthcare | Eye & Ear Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 11,911 | 11,709 | 11,744 | ||||||||
International OTC Healthcare | Dermatologicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 2,421 | 2,171 | 2,113 | ||||||||
International OTC Healthcare | Oral Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 9,882 | 10,468 | 11,930 | ||||||||
International OTC Healthcare | Other OTC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 5 | 4 | 5 | ||||||||
Household Cleaning | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 19,811 | 80,647 | ||||||||
Household Cleaning | Analgesics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Cough & Cold | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Women's Health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Gastrointestinal | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Eye & Ear Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Dermatologicals | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Oral Care | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Other OTC | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | 0 | 0 | 0 | ||||||||
Household Cleaning | Household Cleaning | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total segment revenues | $ 0 | $ 19,811 | $ 80,647 |
Business Segments (Revenue by G
Business Segments (Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total segment revenues | $ 251,235 | $ 241,552 | $ 238,069 | $ 232,154 | $ 241,026 | $ 241,414 | $ 239,357 | $ 253,980 | $ 963,010 | $ 975,777 | $ 1,041,179 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total segment revenues | 812,653 | 837,049 | 903,511 | ||||||||
Rest of world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total segment revenues | $ 150,357 | $ 138,728 | $ 137,668 |
Business Segments (Assets by Se
Business Segments (Assets by Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | $ 575,179 | $ 578,583 | $ 620,098 |
Indefinite-lived intangible assets | 2,273,191 | ||
Finite-lived intangible assets | 214,060 | 234,019 | |
Intangible assets, net (excluding goodwill) | 2,479,391 | 2,507,210 | |
Intangible assets, net (including goodwill) | 3,054,570 | 3,085,793 | |
North American OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 546,643 | 547,393 | 580,934 |
Indefinite-lived intangible assets | 2,195,617 | ||
Finite-lived intangible assets | 228,743 | ||
Intangible assets, net (excluding goodwill) | 2,405,221 | 2,424,360 | |
Intangible assets, net (including goodwill) | 2,951,864 | 2,971,753 | |
International OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 28,536 | 31,190 | 32,919 |
Indefinite-lived intangible assets | 77,574 | ||
Finite-lived intangible assets | 5,276 | ||
Intangible assets, net (excluding goodwill) | 74,170 | 82,850 | |
Intangible assets, net (including goodwill) | 102,706 | 114,040 | |
Finite-Lived Tradenames and Customer Relationships | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Finite-lived intangible assets | 214,060 | ||
Finite-Lived Tradenames and Customer Relationships | North American OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Finite-lived intangible assets | 209,604 | ||
Finite-Lived Tradenames and Customer Relationships | International OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Finite-lived intangible assets | 4,456 | ||
Indefinite- Lived Tradenames | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Indefinite-lived intangible assets | 2,265,331 | $ 2,273,191 | $ 2,490,303 |
Indefinite- Lived Tradenames | North American OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Indefinite-lived intangible assets | 2,195,617 | ||
Indefinite- Lived Tradenames | International OTC Healthcare | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Indefinite-lived intangible assets | $ 69,714 |
Business Segments (Goodwill and
Business Segments (Goodwill and Intangible Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Schedule of Goodwill and Intangible Assets by Geographic Areas [Line Items] | ||
Intangible assets, net (including goodwill) | $ 3,054,570 | $ 3,085,793 |
United States | ||
Schedule of Goodwill and Intangible Assets by Geographic Areas [Line Items] | ||
Intangible assets, net (including goodwill) | 2,951,864 | 2,971,753 |
Rest of world | ||
Schedule of Goodwill and Intangible Assets by Geographic Areas [Line Items] | ||
Intangible assets, net (including goodwill) | $ 102,706 | $ 114,040 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 251,235 | $ 241,552 | $ 238,069 | $ 232,154 | $ 241,026 | $ 241,414 | $ 239,357 | $ 253,980 | $ 963,010 | $ 975,777 | $ 1,041,179 |
Cost of sales | 107,325 | 104,057 | 101,318 | 98,087 | 102,780 | 102,179 | 101,885 | 113,357 | 410,787 | 420,201 | 464,674 |
Gross profit | 143,910 | 137,495 | 136,751 | 134,067 | 138,246 | 139,235 | 137,472 | 140,623 | 552,223 | 555,576 | 576,505 |
Operating Expenses | |||||||||||
Advertising and promotion | 40,167 | 33,559 | 38,667 | 34,801 | 34,433 | 34,504 | 37,042 | 37,111 | 147,194 | 143,090 | 147,286 |
General and administrative | 23,584 | 21,308 | 22,514 | 21,706 | 21,299 | 20,485 | 24,034 | 23,941 | 89,112 | 89,759 | 85,393 |
Depreciation and amortization | 6,242 | 6,224 | 6,222 | 6,074 | 6,502 | 6,705 | 6,756 | 7,084 | 24,762 | 27,047 | 28,428 |
Gain on divestiture | 0 | 0 | (1,284) | 0 | 0 | (1,284) | 0 | ||||
Goodwill and tradename impairment | 229,461 | 0 | 0 | 0 | 0 | 229,461 | 99,924 | ||||
Total operating expenses | 69,993 | 61,091 | 67,403 | 62,581 | 291,695 | 61,694 | 66,548 | 68,136 | 261,068 | 488,073 | 361,031 |
Operating income | 73,917 | 76,404 | 69,348 | 71,486 | (153,449) | 77,541 | 70,924 | 72,487 | 291,155 | 67,503 | 215,474 |
Interest expense, net of interest income | 22,452 | 24,275 | 24,477 | 25,020 | 25,745 | 26,327 | 27,070 | 25,940 | |||
Loss on extinguishment of debt | 0 | 2,155 | 0 | 0 | 2,155 | 0 | 2,901 | ||||
Other expense (income), net | 930 | (580) | 859 | 416 | (164) | 218 | 335 | 87 | 1,625 | 476 | (392) |
Income (loss) before income taxes | 50,535 | 50,554 | 44,012 | 46,050 | (179,030) | 50,996 | 43,519 | 46,460 | 191,151 | (38,055) | 107,086 |
Provision for income taxes | 13,489 | 12,496 | 10,760 | 12,125 | (39,756) | 12,829 | 12,678 | 11,994 | 48,870 | (2,255) | (232,484) |
Net income (loss) | $ 37,046 | $ 38,058 | $ 33,252 | $ 33,925 | $ (139,274) | $ 38,167 | $ 30,841 | $ 34,466 | $ 142,281 | $ (35,800) | $ 339,570 |
Earnings per share: | |||||||||||
Basic (in USD per share) | $ 0.74 | $ 0.76 | $ 0.66 | $ 0.66 | $ (2.68) | $ 0.74 | $ 0.59 | $ 0.65 | $ 2.81 | $ (0.69) | $ 6.40 |
Diluted (in USD per share) | $ 0.73 | $ 0.75 | $ 0.65 | $ 0.65 | $ (2.68) | $ 0.73 | $ 0.59 | $ 0.65 | $ 2.78 | $ (0.69) | $ 6.34 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 50,367 | 50,378 | 50,455 | 51,697 | 51,912 | 51,881 | 51,841 | 52,640 | 50,723 | 52,068 | 53,099 |
Diluted (in shares) | 50,878 | 50,831 | 50,811 | 52,047 | 51,912 | 52,202 | 52,153 | 52,942 | 51,140 | 52,068 | 53,526 |
Comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustments | $ (12,052) | $ 3,497 | $ (3,584) | $ (224) | $ 659 | $ (2,020) | $ (2,145) | $ (2,974) | $ (12,363) | $ (6,480) | $ 5,702 |
Unrealized loss on interest rate swaps | (4,864) | 0 | 0 | 0 | (4,864) | 0 | 0 | ||||
Unrecognized net (loss) gain on pension plans | (1,187) | 0 | 0 | 0 | 48 | 0 | 0 | 0 | (1,187) | 48 | 1,335 |
Total other comprehensive (loss) income | (18,103) | 3,497 | (3,584) | (224) | 707 | (2,020) | (2,145) | (2,974) | (18,414) | (6,432) | 7,037 |
Comprehensive (loss) income | $ 18,943 | $ 41,555 | $ 29,668 | $ 33,701 | $ (138,567) | $ 36,147 | $ 28,696 | $ 31,492 | $ 123,867 | $ (42,232) | $ 346,607 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 04, 2020 | Jul. 30, 2019 | May 13, 2019 | May 06, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 302,700 | 294,500 | 182,800 | ||||
Performance Units | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 98,644 | ||||||
Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 4,183 | 7,287 | 89,286 | 220,300 | 226,400 | 105,800 | |
Stock Options | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 21,194 | 281,487 | |||||
Award grant exercise price (in dollars per share) | $ 30.19 | $ 30.56 | |||||
Subsequent Event | Performance Units | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 79,070 | ||||||
Award vesting period | 3 years | ||||||
Subsequent Event | Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 73,637 | ||||||
Award vesting period | 3 years | ||||||
Vesting rights (as percent) | 33.30% | ||||||
Subsequent Event | Restricted Stock Units (RSUs) | Director | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 907 | ||||||
Award vesting period | 1 year | ||||||
Subsequent Event | Stock Options | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 249,874 | ||||||
Award vesting period | 3 years | ||||||
Vesting rights (as percent) | 33.30% | ||||||
Award term | ten | ||||||
Award grant exercise price (in dollars per share) | $ 39.98 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reserves for sales returns and allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 8,973 | $ 8,813 | $ 9,429 |
Amounts Charged to Expense | 57,505 | 56,276 | 62,953 |
Deductions | (50,669) | (56,116) | (63,569) |
Other | 0 | 0 | 0 |
Balance at End of Year | 15,809 | 8,973 | 8,813 |
Reserves for trade promotions | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 15,491 | 11,435 | 15,193 |
Amounts Charged to Expense | 88,502 | 90,844 | 78,669 |
Deductions | (85,604) | (88,415) | (82,427) |
Other | 0 | 0 | 0 |
Balance at End of Year | 18,389 | 15,491 | 11,435 |
Reserves for consumer coupon redemptions | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,175 | 2,645 | 4,614 |
Amounts Charged to Expense | 4,555 | 5,199 | 7,283 |
Deductions | (3,667) | (6,669) | (9,252) |
Other | 0 | 0 | 0 |
Balance at End of Year | 2,063 | 1,175 | 2,645 |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,259 | 1,203 | 1,352 |
Amounts Charged to Expense | 750 | 203 | 187 |
Deductions | (624) | (147) | (336) |
Other | 0 | 0 | 0 |
Balance at End of Year | 1,385 | 1,259 | 1,203 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 3,236 | 609 | 3,437 |
Amounts Charged to Expense | 2,205 | 2,627 | 0 |
Deductions | 0 | 0 | 0 |
Other | 0 | 0 | (2,828) |
Balance at End of Year | $ 5,441 | 3,236 | 609 |
ASC 606 | Reserves for trade promotions | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 13,062 | ||
Balance at End of Year | $ 13,062 |
Uncategorized Items - pbh-20200
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 |