Cover Page
Cover Page - shares | 6 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32433 | |
Entity Registrant Name | PRESTIGE CONSUMER HEALTHCARE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1297589 | |
Entity Address, Address Line One | 660 White Plains Road | |
Entity Address, City or Town | Tarrytown | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10591 | |
City Area Code | 914 | |
Local Phone Number | 524-6800 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | PBH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,618,585 | |
Entity Central Index Key | 0001295947 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Total revenues | $ 286,316 | $ 289,273 | $ 565,625 | $ 566,332 |
Cost of Sales | ||||
Cost of sales excluding depreciation | 124,324 | 126,384 | 246,978 | 241,380 |
Cost of sales depreciation | 1,972 | 1,880 | 3,954 | 3,824 |
Cost of sales | 126,296 | 128,264 | 250,932 | 245,204 |
Gross profit | 160,020 | 161,009 | 314,693 | 321,128 |
Operating Expenses | ||||
Advertising and marketing | 40,102 | 43,819 | 76,333 | 83,770 |
General and administrative | 25,997 | 26,438 | 53,684 | 53,152 |
Depreciation and amortization | 5,671 | 6,368 | 11,232 | 12,808 |
Total operating expenses | 71,770 | 76,625 | 141,249 | 149,730 |
Operating income | 88,250 | 84,384 | 173,444 | 171,398 |
Other expense | ||||
Interest expense, net | 17,606 | 16,979 | 35,325 | 32,271 |
Other (income) expense, net | 229 | 812 | (1,009) | 1,637 |
Total other expense, net | 17,835 | 17,791 | 34,316 | 33,908 |
Income before income taxes | 70,415 | 66,593 | 139,128 | 137,490 |
Provision for income taxes | 16,856 | 15,570 | 32,293 | 31,195 |
Net income | $ 53,559 | $ 51,023 | $ 106,835 | $ 106,295 |
Earnings per share: | ||||
Basic (in USD per share) | $ 1.08 | $ 1.02 | $ 2.15 | $ 2.12 |
Diluted (in USD per share) | $ 1.07 | $ 1.02 | $ 2.13 | $ 2.11 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 49,687 | 49,804 | 49,727 | 50,033 |
Diluted (in shares) | 50,081 | 50,265 | 50,138 | 50,496 |
Comprehensive income, net of tax: | ||||
Currency translation adjustments | $ (3,784) | $ (7,118) | $ (4,430) | $ (16,637) |
Net loss on termination of pension plan | 0 | 0 | 0 | (790) |
Total other comprehensive loss | (3,784) | (7,118) | (4,430) | (17,427) |
Comprehensive income | 49,775 | 43,905 | 102,405 | 88,868 |
Net sales | ||||
Revenues | ||||
Total revenues | 286,307 | 289,264 | 565,606 | 566,288 |
Other revenues | ||||
Revenues | ||||
Total revenues | $ 9 | $ 9 | $ 19 | $ 44 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 60,067 | $ 58,489 |
Accounts receivable, net of allowance of $21,994 and $20,205, respectively | 158,456 | 167,016 |
Inventories | 161,283 | 162,121 |
Prepaid expenses and other current assets | 8,392 | 4,117 |
Total current assets | 388,198 | 391,743 |
Property, plant and equipment, net | 70,700 | 70,412 |
Operating lease right-of-use assets | 12,134 | 14,923 |
Finance lease right-of-use assets, net | 2,870 | 4,200 |
Goodwill | 526,860 | 527,553 |
Intangible assets, net | 2,328,250 | 2,341,893 |
Other long-term assets | 3,862 | 3,005 |
Total Assets | 3,332,874 | 3,353,729 |
Current liabilities | ||
Accounts payable | 44,381 | 62,743 |
Accrued interest payable | 15,635 | 15,688 |
Operating lease liabilities, current portion | 6,732 | 6,926 |
Finance lease liabilities, current portion | 2,876 | 2,834 |
Other accrued liabilities | 60,080 | 72,524 |
Total current liabilities | 129,704 | 160,715 |
Long-term debt, net | 1,262,972 | 1,345,788 |
Deferred income tax liabilities | 388,481 | 380,434 |
Long-term operating lease liabilities, net of current portion | 6,644 | 9,876 |
Long-term finance lease liabilities, net of current portion | 218 | 1,667 |
Other long-term liabilities | 8,896 | 8,165 |
Total Liabilities | 1,796,915 | 1,906,645 |
Commitments and Contingencies — Note 14 | ||
Stockholders' Equity | ||
Preferred stock - $0.01 par value; Authorized - 5,000 shares; Issued and outstanding - None | 0 | 0 |
Common stock - $0.01 par value; Authorized - 250,000 shares; Issued - 55,291 shares at September 30, 2023 and 54,857 shares at March 31, 2023 | 552 | 548 |
Additional paid-in capital | 552,369 | 535,356 |
Treasury stock, at cost - 5,680 shares at September 30, 2023 and 5,165 shares at March 31, 2023 | (219,661) | (189,114) |
Accumulated other comprehensive loss, net of tax | (35,994) | (31,564) |
Retained earnings | 1,238,693 | 1,131,858 |
Total Stockholders' Equity | 1,535,959 | 1,447,084 |
Total Liabilities and Stockholders' Equity | $ 3,332,874 | $ 3,353,729 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 21,994 | $ 20,205 |
Stockholders' Equity: | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 55,291,000 | 54,857,000 |
Treasury stock (in shares) | 5,680,000 | 5,165,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) | Retained Earnings |
Common stock, beginning balance (in shares) at Mar. 31, 2022 | 54,430,000 | |||||
Equity, beginning balance at Mar. 31, 2022 | $ 1,577,611 | $ 544 | $ 515,583 | $ (133,648) | $ (19,032) | $ 1,214,164 |
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | 4,151,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 7,323 | 7,323 | ||||
Exercise of stock options (in shares) | 39,100 | 39,000 | ||||
Exercise of stock options | $ 1,489 | $ 1 | 1,488 | |||
Issuance of shares related to restricted stock (in shares) | 221,000 | |||||
Issuance of shares related to restricted stock | 0 | $ 2 | (2) | |||
Treasury share repurchases (in shares) | 1,013,000 | |||||
Treasury share repurchases | (55,450) | $ (55,450) | ||||
Net income | 106,295 | 106,295 | ||||
Comprehensive loss | (17,427) | (17,427) | ||||
Common stock, ending balance (in shares) at Sep. 30, 2022 | 54,690,000 | |||||
Equity, ending balance at Sep. 30, 2022 | 1,619,841 | $ 547 | 524,392 | $ (189,098) | (36,459) | 1,320,459 |
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | 5,164,000 | |||||
Common stock, beginning balance (in shares) at Jun. 30, 2022 | 54,690,000 | |||||
Equity, beginning balance at Jun. 30, 2022 | 1,584,743 | $ 547 | 520,926 | $ (176,825) | (29,341) | 1,269,436 |
Treasury stock, beginning balance (in shares) at Jun. 30, 2022 | 4,928,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 3,466 | 3,466 | ||||
Treasury share repurchases (in shares) | 236,000 | |||||
Treasury share repurchases | (12,273) | $ (12,273) | ||||
Net income | 51,023 | 51,023 | ||||
Comprehensive loss | (7,118) | (7,118) | ||||
Common stock, ending balance (in shares) at Sep. 30, 2022 | 54,690,000 | |||||
Equity, ending balance at Sep. 30, 2022 | 1,619,841 | $ 547 | 524,392 | $ (189,098) | (36,459) | 1,320,459 |
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | 5,164,000 | |||||
Common stock, beginning balance (in shares) at Mar. 31, 2023 | 54,857,000 | |||||
Equity, beginning balance at Mar. 31, 2023 | $ 1,447,084 | $ 548 | 535,356 | $ (189,114) | (31,564) | 1,131,858 |
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 5,165,000 | 5,165,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 7,834 | 7,834 | ||||
Exercise of stock options (in shares) | 230,400 | 231,000 | ||||
Exercise of stock options | $ 9,183 | $ 2 | 9,181 | |||
Issuance of shares related to restricted stock (in shares) | 203,000 | |||||
Issuance of shares related to restricted stock | 0 | $ 2 | (2) | |||
Treasury share repurchases (in shares) | 515,000 | |||||
Treasury share repurchases | (30,547) | $ (30,547) | ||||
Net income | 106,835 | 106,835 | ||||
Comprehensive loss | (4,430) | (4,430) | ||||
Common stock, ending balance (in shares) at Sep. 30, 2023 | 55,291,000 | |||||
Equity, ending balance at Sep. 30, 2023 | $ 1,535,959 | $ 552 | 552,369 | $ (219,661) | (35,994) | 1,238,693 |
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | 5,680,000 | 5,680,000 | ||||
Common stock, beginning balance (in shares) at Jun. 30, 2023 | 55,220,000 | |||||
Equity, beginning balance at Jun. 30, 2023 | $ 1,480,295 | $ 552 | 546,526 | $ (219,707) | (32,210) | 1,185,134 |
Treasury stock, beginning balance (in shares) at Jun. 30, 2023 | 5,680,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 3,688 | 3,688 | ||||
Exercise of stock options (in shares) | 58,000 | |||||
Exercise of stock options | 2,155 | $ 0 | 2,155 | |||
Issuance of shares related to restricted stock (in shares) | 13,000 | |||||
Treasury share repurchases | 46 | $ 46 | ||||
Net income | 53,559 | 53,559 | ||||
Comprehensive loss | (3,784) | (3,784) | ||||
Common stock, ending balance (in shares) at Sep. 30, 2023 | 55,291,000 | |||||
Equity, ending balance at Sep. 30, 2023 | $ 1,535,959 | $ 552 | $ 552,369 | $ (219,661) | $ (35,994) | $ 1,238,693 |
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | 5,680,000 | 5,680,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income | $ 106,835 | $ 106,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,186 | 16,632 |
Loss on disposal of property and equipment | 191 | 94 |
Deferred income taxes | 9,721 | 4,211 |
Amortization of debt origination costs | 2,302 | 1,798 |
Stock-based compensation costs | 7,834 | 7,323 |
Non-cash operating lease cost | 2,816 | 2,984 |
Other | 0 | 447 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,415 | (8,276) |
Inventories | 223 | (21,810) |
Prepaid expenses and other current assets | (3,814) | (1,501) |
Accounts payable | (18,820) | 1,016 |
Accrued liabilities | (11,764) | 9,788 |
Operating lease liabilities | (3,493) | (3,201) |
Other | (1,085) | (13) |
Net cash provided by operating activities | 110,547 | 115,787 |
Investing Activities | ||
Purchases of property, plant and equipment | (4,411) | (3,423) |
Other | 3,800 | 0 |
Net cash provided by (used in) investing activities | (611) | (3,423) |
Financing Activities | ||
Term loan repayments | (85,000) | (40,000) |
Borrowings under revolving credit agreement | 0 | 20,000 |
Repayments under revolving credit agreement | 0 | (20,000) |
Payments of finance leases | (1,403) | (1,369) |
Proceeds from exercise of stock options | 9,183 | 1,489 |
Fair value of shares surrendered as payment of tax withholding | (5,508) | (5,450) |
Repurchase of common stock | (25,000) | (50,000) |
Net cash used in financing activities | (107,728) | (95,330) |
Effects of exchange rate changes on cash and cash equivalents | (630) | (1,777) |
Increase (decrease) in cash and cash equivalents | 1,578 | 15,257 |
Cash and cash equivalents - beginning of period | 58,489 | 27,185 |
Cash and cash equivalents - end of period | 60,067 | 42,442 |
Supplemental Cash Flow Information | ||
Interest paid | 33,706 | 19,016 |
Income taxes paid | $ 25,118 | $ 15,689 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Sep. 30, 2023 | |
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 products 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 7 to these Condensed Consolidated Financial Statements. Economic Environment There has been economic uncertainty in the United States and globally due to several factors, including global supply chain constraints, rising interest rates, a high inflationary environment and geopolitical events. We expect economic conditions will continue to be highly volatile and uncertain, put pressure on prices and supply, and could affect demand for our products. We have continued to see changes in the purchasing patterns of our consumers, including a reduction in the frequency of visits to retailers and a shift in many markets to purchasing our products online. The volatile environment has impacted the supply of labor and raw materials and exacerbated rising input costs. Although we have not experienced a material disruption to our overall supply chain to date, we have and may continue to experience shortages, delays and backorders for certain ingredients and products, difficulty scheduling shipping for our products, as well as price increases from many of our suppliers for both shipping and product costs. In addition, labor shortages have impacted our manufacturing operations and may impact our ability to supply certain products to our customers. To date, these global conditions have not had a material negative impact on our operations, supply chain, overall costs or demand for most of our products or resulting aggregate sales and earnings, and, as such, it has also not materially negatively impacted our liquidity position. We continue to generate operating cash flows to meet our short-term liquidity needs. These circumstances could change, however, in this dynamic environment. If conditions cause further disruption in the global supply chain, the availability of labor and materials or otherwise further increase costs, it may materially affect our operations and those of third parties on which we rely, including causing material disruptions in the supply and distribution of our products. The extent to which these conditions impact our results and liquidity will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning global supply chain constraints, the high inflationary environment, global instability and the potential for further outbreaks of severe illnesses. These effects could have a material adverse impact on our business, liquidity, capital resources, and results of operations and those of the third parties on which we rely. Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2024) mean our fiscal year ending or ended on March 31st of that year. Operating results for the six months ended September 30, 2023 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2024. These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. Our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence, and accounting for income taxes and related uncertain tax positions. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires entities to apply Topic 606 to recognize and measure contract assets and liabilities in a business combination. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this standard effective April 1, 2023. The impact of the adoption of this new standard will depend on the magnitude of future acquisitions. 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 and also issued subsequent amendments to the initial guidance (collectively, "Topic 848"). In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. On April 4, 2023, we entered into Amendment No. 8 ("ABL Amendment No. 8") to the Company's asset-based revolving credit facility originally entered into on January 31, 2012 (the "2012 ABL Revolver"). ABL Amendment No. 8 provides for the replacement of LIBOR with Secured Overnight Financing Rate ("SOFR") as our reference rate. On June 12, 2023, we entered into Amendment No. 7 ("Term Loan Amendment No. 7") to the Company’s term loan originally entered into on January 31, 2012 (the “2012 Term Loan”), effective July 1, 2023. Term Loan Amendment No. 7 provides for the replacement of LIBOR with SOFR as our reference rate. Effective July 1, 2023, we have transitioned all discontinued reference rates to SOFR. The adoption of the standard did not have a material impact on our Consolidated Financial Statements. There were no other accounting pronouncements issued but not yet adopted by us that are expected to have a material impact on our Consolidated Financial Statements. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (In thousands) September 30, 2023 March 31, 2023 Components of Inventories Packaging and raw materials $ 22,742 $ 20,634 Work in process 233 220 Finished goods 138,308 141,267 Inventories $ 161,283 $ 162,121 |
Goodwill
Goodwill | 6 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2023 Goodwill $ 711,452 $ 30,204 $ 741,656 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - March 31, 2023 498,936 28,617 527,553 Effects of foreign currency exchange rates — (693) (693) Balance - September 30, 2023 Goodwill 711,452 29,511 740,963 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - September 30, 2023 $ 498,936 $ 27,924 $ 526,860 |
Intangible Assets, net
Intangible Assets, net | 6 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2023 $ 2,168,902 $ 411,118 $ 2,580,020 Effects of foreign currency exchange rates (3,082) (785) (3,867) Balance — September 30, 2023 $ 2,165,820 $ 410,333 $ 2,576,153 Accumulated Amortization Balance — March 31, 2023 $ — $ 238,127 $ 238,127 Additions — 9,900 9,900 Effects of foreign currency exchange rates — (124) (124) Balance — September 30, 2023 $ — $ 247,903 $ 247,903 Intangible assets, net - September 30, 2023 $ 2,165,820 $ 162,430 $ 2,328,250 Amortization expense was $4.9 million and $9.9 million for the three and six months ended September 30, 2023, respectively, and $5.6 million and $11.3 million for the three and six months ended September 30, 2022, respectively. Finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 25 years, and the estimated amortization expense for each of the five succeeding years and the periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2024 (remaining six months ended March 31, 2024) $ 9,866 2025 18,061 2026 16,110 2027 14,519 2028 12,183 Thereafter 91,691 $ 162,430 The date of our annual impairment review was February 28, 2023, and we recorded impairment charges to intangible assets of $321.4 million in our March 31, 2023 financial statements. The assumptions subject to significant uncertainties in the impairment analysis include the discount rate utilized in the analysis, as well as future sales, gross margins, and advertising and marketing expenses. The discount rate assumption may be influenced by such factors as changes in interest rates and rates of inflation, which can have an impact on the determination of fair value. 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 marketing expenses, or the potential impacts of supply chain constraints, labor shortages, or inflation, we may be required to record impairment charges in the future. As of September 30, 2023, no events have occurred that would indicate potential impairment of intangible assets. |
Leases
Leases | 6 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease real estate and equipment for use in our operations. The components of lease expense for the three and six months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 664 $ 664 $ 1,329 $ 1,329 Interest on lease liabilities 24 45 54 95 Operating lease cost 1,624 1,617 3,248 3,251 Short term lease cost 34 51 67 85 Variable lease cost 16,941 17,016 33,397 29,015 Total net lease cost $ 19,287 $ 19,393 $ 38,095 $ 33,775 As of September 30, 2023, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2024 (remaining six months ending March 31, 2024) $ 3,564 $ 1,461 $ 5,025 2025 4,810 1,509 6,319 2026 2,328 96 2,424 2027 1,913 80 1,993 2028 1,433 — 1,433 Thereafter 254 — 254 Total undiscounted lease payments 14,302 3,146 17,448 Less amount of lease payments representing interest (926) (52) (978) Total present value of lease payments $ 13,376 $ 3,094 $ 16,470 The weighted average remaining lease term and weighted average discount rate were as follows: September 30, 2023 Weighted average remaining lease term (years) Operating leases 3.02 Finance leases 1.23 Weighted average discount rate Operating leases 3.62 % Finance leases 2.94 % |
Leases | Leases We lease real estate and equipment for use in our operations. The components of lease expense for the three and six months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 664 $ 664 $ 1,329 $ 1,329 Interest on lease liabilities 24 45 54 95 Operating lease cost 1,624 1,617 3,248 3,251 Short term lease cost 34 51 67 85 Variable lease cost 16,941 17,016 33,397 29,015 Total net lease cost $ 19,287 $ 19,393 $ 38,095 $ 33,775 As of September 30, 2023, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2024 (remaining six months ending March 31, 2024) $ 3,564 $ 1,461 $ 5,025 2025 4,810 1,509 6,319 2026 2,328 96 2,424 2027 1,913 80 1,993 2028 1,433 — 1,433 Thereafter 254 — 254 Total undiscounted lease payments 14,302 3,146 17,448 Less amount of lease payments representing interest (926) (52) (978) Total present value of lease payments $ 13,376 $ 3,094 $ 16,470 The weighted average remaining lease term and weighted average discount rate were as follows: September 30, 2023 Weighted average remaining lease term (years) Operating leases 3.02 Finance leases 1.23 Weighted average discount rate Operating leases 3.62 % Finance leases 2.94 % |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following: (In thousands) September 30, 2023 March 31, 2023 Accrued marketing costs $ 26,512 $ 30,471 Accrued compensation costs 8,232 14,292 Accrued broker commissions 2,210 1,767 Income taxes payable 8,160 10,645 Accrued professional fees 4,323 4,254 Accrued production costs 6,003 5,700 Other accrued liabilities 4,640 5,395 $ 60,080 $ 72,524 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023 March 31, 2023 2021 Senior Notes bearing interest at 3.750%, with interest payable on April 1 and October 1 of each year. The 2021 Senior Notes mature on April 1, 2031. $ 600,000 $ 600,000 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. 400,000 400,000 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 0.50%, or an alternate base rate plus a margin of 1.00% per annum (at March 31, 2023) and SOFR plus a margin of 2.00% plus a credit spread adjustment (at September 30, 2023), due on July 1, 2028. 275,000 360,000 Long-term debt 1,275,000 1,360,000 Less: unamortized debt costs (12,028) (14,212) Long-term debt, net $ 1,262,972 $ 1,345,788 At September 30, 2023, we had no balance outstanding on the 2012 ABL Revolver and a borrowing capacity of $171.2 million. On April 4, 2023, we entered into Amendment No. 8 to the 2012 ABL Revolver. ABL Amendment No. 8 provides for the replacement of LIBOR with SOFR as our reference rate. On June 12, 2023, we entered into Term Loan Amendment No. 7 to the Company’s 2012 Term Loan, effective July 1, 2023. Term Loan Amendment No. 7 provides for the replacement of LIBOR with SOFR as our reference rate. As of September 30, 2023, aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans under the 2012 Term Loan, the 2012 ABL Revolver and the indentures governing the senior unsecured notes due 2031 (the "2021 Senior Notes") and the senior unsecured notes due 2028 (the "2019 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2024 (remaining six months ending March 31, 2024) $ — 2025 — 2026 — 2027 — 2028 400,000 Thereafter 875,000 $ 1,275,000 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For certain of our financial instruments, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their respective fair values due to the relatively short maturity of these amounts. FASB Accounting Standards Codification ("ASC") 820, Fair Value Measurements , requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market assuming an orderly transaction between market participants. ASC 820 established market (observable inputs) as the preferred source of fair value, to be followed by our assumptions of fair value based on hypothetical transactions (unobservable inputs) in the absence of observable market inputs. Based upon the above, the following fair value hierarchy was created: Level 1 - Quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, as well as quoted prices for identical or similar instruments in markets that are not considered active; and Level 3 - Unobservable inputs developed by us using estimates and assumptions reflective of those that would be utilized by a market participant. The market values have been determined based on market values for similar instruments adjusted for certain factors. As such, the 2021 Senior Notes, the 2019 Senior Notes, the 2012 Term B-5 Loans, and the 2012 ABL Revolver are measured in Level 2 of the above hierarchy. The summary below details the carrying amounts and estimated fair values of these instruments at September 30, 2023 and March 31, 2023. September 30, 2023 March 31, 2023 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2019 Senior Notes 400,000 373,000 400,000 383,500 2021 Senior Notes 600,000 482,250 600,000 510,750 2012 Term B-5 Loans 275,000 275,000 360,000 359,550 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity We are authorized to issue 250.0 million shares of common stock, $0.01 par value per share, and 5.0 million shares of preferred stock, $0.01 par value per share. The Board of Directors may direct the issuance of the undesignated preferred stock in one or more series and determine preferences, privileges and restrictions thereof. Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to prior rights of holders of all classes of outstanding stock having priority rights as to dividends. No dividends have been declared or paid on our common stock through September 30, 2023. On May 2, 2023, the Company's Board of Directors authorized the repurchase of up to $25.0 million of the Company's issued and outstanding common stock through May 31, 2024, utilizing open market transactions, transactions structured through investment banking institutions, in privately-negotiated transactions, by direct purchases of common stock or a combination of the foregoing in compliance with the applicable rules and regulations of the Securities and Exchange Commission. We completed the repurchase in the first quarter of fiscal 2024. During the three and six months ended September 30, 2023 and 2022, we repurchased shares of our common stock and recorded them as treasury stock. Our share repurchases consisted of the following: Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares — — 88,953 99,219 Average price per share $ — $ — $61.92 $54.94 Total amount repurchased $ — $ — $5.5 million $5.5 million Shares repurchased in conjunction with our share repurchase program: Number of shares — 236,681 426,479 914,236 Average price per share $ — $ 51.85 $58.62 $54.69 Total amount repurchased $ — $12.3 million $25.0 million $50.0 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following at September 30, 2023 and March 31, 2023: (In thousands) September 30, 2023 March 31, 2023 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (36,710) $ (32,280) Unrecognized net gain on pension plans, net of tax of $(214) and $(214), respectively 716 716 Accumulated other comprehensive loss, net of tax $ (35,994) $ (31,564) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Six Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator Net income $ 53,559 $ 51,023 $ 106,835 $ 106,295 Denominator Denominator for basic earnings per share — weighted average shares outstanding 49,687 49,804 49,727 50,033 Dilutive effect of unvested restricted stock units and options issued to employees and directors 394 461 411 463 Denominator for diluted earnings per share 50,081 50,265 50,138 50,496 Earnings per Common Share: Basic earnings per share $ 1.08 $ 1.02 $ 2.15 $ 2.12 Diluted earnings per share $ 1.07 $ 1.02 $ 2.13 $ 2.11 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In connection with our initial public offering, the Board of Directors adopted the 2005 Long-Term Equity Incentive Plan (the “2005 Plan”), which provided for grants of up to a maximum of 5.0 million shares of restricted stock, stock options, restricted stock units ("RSUs") and other equity-based awards. In June 2014, the Board of Directors approved, and in July 2014, our stockholders ratified, an increase of an additional 1.8 million shares of our common stock for issuance under the 2005 Plan, among other changes. On June 23, 2020, the Board of Directors adopted the Prestige Consumer Healthcare Inc. 2020 Long-Term Incentive Plan (the “2020 Plan”). The 2020 Plan became effective on August 4, 2020, upon the approval of the 2020 Plan by our stockholders. On June 23, 2020, a total of 2,827,210 shares were available for issuance under the 2020 Plan (comprised of 2,000,000 new shares plus 827,210 shares that were unissued under the 2005 Plan). Since the 2020 Plan became effective, all equity awards have been made from the 2020 Plan, and the Company will not grant any additional awards under the 2005 Plan. The following table provides information regarding our stock-based compensation: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Pre-tax stock-based compensation costs charged against income $ 3,688 $ 3,466 $ 7,834 $ 7,323 Income tax benefit recognized on compensation costs $ 263 $ 338 $ 669 $ 875 Total fair value of options and RSUs vested during the period $ 987 $ 64 $ 12,213 $ 10,289 Cash received from the exercise of stock options $ 2,155 $ — $ 9,183 $ 1,489 Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises $ 263 $ — $ 1,139 $ 2,895 At September 30, 2023, there were $3.8 million of unrecognized compensation costs related to unvested stock options under the 2005 Plan and the 2020 Plan, excluding an estimate for forfeitures which may occur. We expect to recognize such costs over a weighted average period of 2.1 years. At September 30, 2023, there were $14.8 million of unrecognized compensation costs related to unvested RSUs and performance stock units ("PSUs") under the 2005 Plan and the 2020 Plan, excluding an estimate for forfeitures which may occur. We expect to recognize such costs over a weighted average period of 1.9 years. At September 30, 2023, there were 1.9 million shares available for issuance under the 2020 Plan. Restricted Stock Units The fair value of the RSUs is determined using the closing price of our common stock on the date of the grant. A summary of the RSUs granted under the 2005 Plan and the 2020 Plan is presented below: RSUs Shares (in thousands) Weighted Six Months Ended September 30, 2022 Unvested at March 31, 2022 440.9 $ 38.45 Granted 148.9 55.04 Incremental performance shares 42.4 — Vested (222.4) 32.05 Unvested at September 30, 2022 409.8 47.14 Vested at September 30, 2022 108.5 36.54 Six Months Ended September 30, 2023 Unvested at March 31, 2023 409.0 $ 47.17 Granted 157.1 62.06 Incremental performance shares 41.4 — Vested (205.0) 43.17 Forfeited (8.6) 53.72 Unvested at September 30, 2023 393.9 54.40 Vested at September 30, 2023 110.2 38.77 Options 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 presented below: Six Months Ended September 30, 2023 2022 Expected volatility 30.2% - 31.6% 30.8% - 30.9% Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 to 7.0 Risk-free rate 3.6% to 4.1% 2.8% to 2.9% Weighted average grant date fair value of options granted $ 23.79 $ 20.10 A summary of option activity under the 2005 Plan and the 2020 Plan is as follows: Options Shares (in thousands) Weighted Weighted Aggregate Six Months Ended September 30, 2022 Outstanding at March 31, 2022 1,100.9 $ 40.62 Granted 197.6 54.48 Exercised (39.1) 38.04 Outstanding at September 30, 2022 1,259.4 42.88 6.6 $ 10,963 Vested at September 30, 2022 830.8 40.04 5.4 $ 9,403 Six Months Ended September 30, 2023 Outstanding at March 31, 2023 1,081.0 $ 43.96 Granted 131.1 61.81 Exercised (230.4) 39.85 Forfeited (35.8) 54.81 Expired (2.8) 54.47 Outstanding at September 30, 2023 943.1 47.00 6.3 $ 10,166 Vested at September 30, 2023 644.7 43.19 5.2 $ 9,025 The aggregate intrinsic value of options exercised during the six months ended September 30, 2023 was $4.7 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome taxes are recorded in our quarterly financial statements based on our estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur. The effective tax rates used in the calculation of income taxes were 23.9% and 23.4% for the three months ended September 30, 2023 and 2022, respectively. The effective tax rates used in the calculation of income taxes were 23.2% and 22.7% for the six months ended September 30, 2023 and 2022, respectively. The increase in the effective tax rate for the three and six months ended September 30, 2023, compared to the three and six months ended September 30, 2022, was due to discrete items primarily pertaining to state tax rate legislative changes and stock-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are involved from time to time in legal matters and other claims incidental to our business. We review outstanding claims and proceedings internally and with external counsel as necessary to assess the probability and amount of a potential loss. These assessments are re-evaluated at each reporting period and as new information becomes available to determine whether a reserve should be established or if any existing reserve should be adjusted. The actual cost of resolving a claim or proceeding ultimately may be substantially different than the amount of the recorded reserve. In addition, because it is not permissible under GAAP to establish a litigation reserve until the loss is both probable and estimable, in some cases there may be insufficient time to establish a reserve prior to the actual incurrence of the loss (upon verdict and judgment at trial, for example, or in the case of a quickly negotiated settlement). We believe the reasonably possible losses from resolution of routine legal matters and other claims incidental to our business will not have a material effect on our financial statements. |
Concentrations of Risk
Concentrations of Risk | 6 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our revenues are concentrated in the area of OTC Healthcare. We sell our products to mass merchandisers, drug, food, dollar, convenience and club stores and e-commerce channels. During the three and six months ended September 30, 2023, approximately 38.9% and 40.0%, respectively, of our gross revenues were derived from our five top selling brands. During the three and six months ended September 30, 2022, approximately 39.7% and 40.6%, respectively, of our gross revenues were derived from our five top selling brands. Walmart accounted for approximately 19.1% and 20.0%, respectively, of our gross revenues for the three and six months ended September 30, 2023. Walmart accounted for approximately 19.7% and 19.8%, respectively, of our gross revenues for the three and six months ended September 30, 2022. Amazon accounted for 10.3% of our gross revenues for the six months ended September 30, 2023. An additional customer, Walgreens, accounted for approximately 10.4% of our gross revenues for the three months ended September 30, 2022. 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, which manufactures many of the Summer's Eve and Fleet products. 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 labor shortages or public health emergencies at our distribution center or manufacturing facility could materially impact our product distribution. Any disruption could result in increased costs, expense and/or shipping times, and could cause us to incur customer fees and penalties. 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 September 30, 2023, we had relationships with 128 third-party manufacturers. Of those, we had long-term contracts with 28 manufacturers that produced items that accounted for approximately 74.6% of gross sales for the six months ended September 30, 2023. At September 30, 2022, we had relationships with 130 third-party manufacturers. Of those, we had long-term contracts with 27 manufacturers that produced items that accounted for approximately 71.3% of gross sales for the six months ended September 30, 2022. The fact that we do not have long-term contracts with certain manufacturers means that they could cease manufacturing our products at any time and for any reason or initiate arbitrary and costly price increases, which could have a material adverse effect on our business and results of operations. Although we are continually in the process of negotiating long-term contracts with certain key manufacturers, we may not be able to reach a timely agreement, which could have a material adverse effect on our business and results of operations. |
Business Segments
Business Segments | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Our current reportable segments consist of (i) North American OTC Healthcare and (ii) International OTC Healthcare. 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 marketing expenses. The tables below summarize information about our reportable segments. Three Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 244,423 $ 41,893 $ 286,316 Cost of sales 107,466 18,830 126,296 Gross profit 136,957 23,063 160,020 Advertising and marketing 35,389 4,713 40,102 Contribution margin $ 101,568 $ 18,350 $ 119,918 Other operating expenses 31,668 Operating income $ 88,250 * Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment. Six Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 490,566 $ 75,059 $ 565,625 Cost of sales 217,542 33,390 250,932 Gross profit 273,024 41,669 314,693 Advertising and marketing 66,790 9,543 76,333 Contribution margin $ 206,234 $ 32,126 $ 238,360 Other operating expenses 64,916 Operating income $ 173,444 * Intersegment revenues of $2.0 million were eliminated from the North American OTC Healthcare segment. Three Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 252,054 $ 37,219 $ 289,273 Cost of sales 113,533 14,731 128,264 Gross profit 138,521 22,488 161,009 Advertising and marketing 39,316 4,503 43,819 Contribution margin $ 99,205 $ 17,985 $ 117,190 Other operating expenses 32,806 Operating income $ 84,384 * Intersegment revenues of $1.1 million were eliminated from the North American OTC Healthcare segment. Six Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 494,572 $ 71,760 $ 566,332 Cost of sales 216,454 28,750 245,204 Gross profit 278,118 43,010 321,128 Advertising and marketing 74,728 9,042 83,770 Contribution margin $ 203,390 $ 33,968 $ 237,358 Other operating expenses 65,960 Operating income $ 171,398 * Intersegment revenues of $1.7 million were eliminated from the North American OTC Healthcare segment. The tables below summarize information about our segment revenues from similar product groups. Three Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 29,976 $ 1,386 $ 31,362 Cough & Cold 25,970 7,263 33,233 Women's Health 55,000 7,072 62,072 Gastrointestinal 38,703 14,061 52,764 Eye & Ear Care 39,745 7,125 46,870 Dermatologicals 33,018 1,469 34,487 Oral Care 19,312 3,469 22,781 Other OTC 2,699 48 2,747 Total segment revenues $ 244,423 $ 41,893 $ 286,316 Six Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 57,158 $ 2,228 $ 59,386 Cough & Cold 46,344 13,315 59,659 Women's Health 109,955 12,028 121,983 Gastrointestinal 83,384 26,971 110,355 Eye & Ear Care 79,216 11,146 90,362 Dermatologicals 67,696 2,807 70,503 Oral Care 41,038 6,491 47,529 Other OTC 5,775 73 5,848 Total segment revenues $ 490,566 $ 75,059 $ 565,625 Three Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Analgesics $ 32,750 $ 541 $ 33,291 Cough & Cold 24,058 7,168 31,226 Women's Health 59,379 4,745 64,124 Gastrointestinal 41,272 16,037 57,309 Eye & Ear Care 37,961 4,734 42,695 Dermatologicals 32,872 902 33,774 Oral Care 21,251 3,080 24,331 Other OTC 2,511 12 2,523 Total segment revenues $ 252,054 $ 37,219 $ 289,273 Six Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Analgesics $ 60,547 $ 994 $ 61,541 Cough & Cold 45,650 13,439 59,089 Women's Health 120,563 9,612 130,175 Gastrointestinal 81,339 30,064 111,403 Eye & Ear Care 76,572 9,470 86,042 Dermatologicals 62,327 1,908 64,235 Oral Care 42,226 6,250 48,476 Other OTC 5,348 23 5,371 Total segment revenues $ 494,572 $ 71,760 $ 566,332 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 53,559 | $ 51,023 | $ 106,835 | $ 106,295 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following is a summary of the material terms of the contracts, instructions or written plans for the purchase or sale of the Company's securities adopted or terminated by our officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) or directors during the three months ended September 30, 2023: Name and Position Date Action Satisfies Affirmative Defense under Rule 10b5-(c) Expiration Date Total Ordinary Shares to be Sold Mary Beth Fritz September 15, 2023 Adoption X September 27, 2024 15,871 Senior Vice President Quality & Regulatory Affairs | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | true | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mary Beth Fritz [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mary Beth Fritz | |
Title | Senior Vice President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 15, 2023 | |
Arrangement Duration | 378 days | |
Aggregate Available | 15,871 | 15,871 |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2024) mean our fiscal year ending or ended on March 31st of that year. Operating results for the six months ended September 30, 2023 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2024. These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. Our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence, and accounting for income taxes and related uncertain tax positions. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU requires entities to apply Topic 606 to recognize and measure contract assets and liabilities in a business combination. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this standard effective April 1, 2023. The impact of the adoption of this new standard will depend on the magnitude of future acquisitions. 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 and also issued subsequent amendments to the initial guidance (collectively, "Topic 848"). In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. Topic 848 provides optional guidance for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. On April 4, 2023, we entered into Amendment No. 8 ("ABL Amendment No. 8") to the Company's asset-based revolving credit facility originally entered into on January 31, 2012 (the "2012 ABL Revolver"). ABL Amendment No. 8 provides for the replacement of LIBOR with Secured Overnight Financing Rate ("SOFR") as our reference rate. On June 12, 2023, we entered into Amendment No. 7 ("Term Loan Amendment No. 7") to the Company’s term loan originally entered into on January 31, 2012 (the “2012 Term Loan”), effective July 1, 2023. Term Loan Amendment No. 7 provides for the replacement of LIBOR with SOFR as our reference rate. Effective July 1, 2023, we have transitioned all discontinued reference rates to SOFR. The adoption of the standard did not have a material impact on our Consolidated Financial Statements. There were no other accounting pronouncements issued but not yet adopted by us that are expected to have a material impact on our Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: (In thousands) September 30, 2023 March 31, 2023 Components of Inventories Packaging and raw materials $ 22,742 $ 20,634 Work in process 233 220 Finished goods 138,308 141,267 Inventories $ 161,283 $ 162,121 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of the Activity Affecting Goodwill | A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2023 Goodwill $ 711,452 $ 30,204 $ 741,656 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - March 31, 2023 498,936 28,617 527,553 Effects of foreign currency exchange rates — (693) (693) Balance - September 30, 2023 Goodwill 711,452 29,511 740,963 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - September 30, 2023 $ 498,936 $ 27,924 $ 526,860 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of the Activity Affecting Finite Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2023 $ 2,168,902 $ 411,118 $ 2,580,020 Effects of foreign currency exchange rates (3,082) (785) (3,867) Balance — September 30, 2023 $ 2,165,820 $ 410,333 $ 2,576,153 Accumulated Amortization Balance — March 31, 2023 $ — $ 238,127 $ 238,127 Additions — 9,900 9,900 Effects of foreign currency exchange rates — (124) (124) Balance — September 30, 2023 $ — $ 247,903 $ 247,903 Intangible assets, net - September 30, 2023 $ 2,165,820 $ 162,430 $ 2,328,250 |
Reconciliation of the Activity Affecting Indefinite Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2023 $ 2,168,902 $ 411,118 $ 2,580,020 Effects of foreign currency exchange rates (3,082) (785) (3,867) Balance — September 30, 2023 $ 2,165,820 $ 410,333 $ 2,576,153 Accumulated Amortization Balance — March 31, 2023 $ — $ 238,127 $ 238,127 Additions — 9,900 9,900 Effects of foreign currency exchange rates — (124) (124) Balance — September 30, 2023 $ — $ 247,903 $ 247,903 Intangible assets, net - September 30, 2023 $ 2,165,820 $ 162,430 $ 2,328,250 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 25 years, and the estimated amortization expense for each of the five succeeding years and the periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2024 (remaining six months ended March 31, 2024) $ 9,866 2025 18,061 2026 16,110 2027 14,519 2028 12,183 Thereafter 91,691 $ 162,430 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three and six months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 664 $ 664 $ 1,329 $ 1,329 Interest on lease liabilities 24 45 54 95 Operating lease cost 1,624 1,617 3,248 3,251 Short term lease cost 34 51 67 85 Variable lease cost 16,941 17,016 33,397 29,015 Total net lease cost $ 19,287 $ 19,393 $ 38,095 $ 33,775 The weighted average remaining lease term and weighted average discount rate were as follows: September 30, 2023 Weighted average remaining lease term (years) Operating leases 3.02 Finance leases 1.23 Weighted average discount rate Operating leases 3.62 % Finance leases 2.94 % |
Maturities of Operating Leases | As of September 30, 2023, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2024 (remaining six months ending March 31, 2024) $ 3,564 $ 1,461 $ 5,025 2025 4,810 1,509 6,319 2026 2,328 96 2,424 2027 1,913 80 1,993 2028 1,433 — 1,433 Thereafter 254 — 254 Total undiscounted lease payments 14,302 3,146 17,448 Less amount of lease payments representing interest (926) (52) (978) Total present value of lease payments $ 13,376 $ 3,094 $ 16,470 |
Maturities of Finance Leases | As of September 30, 2023, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2024 (remaining six months ending March 31, 2024) $ 3,564 $ 1,461 $ 5,025 2025 4,810 1,509 6,319 2026 2,328 96 2,424 2027 1,913 80 1,993 2028 1,433 — 1,433 Thereafter 254 — 254 Total undiscounted lease payments 14,302 3,146 17,448 Less amount of lease payments representing interest (926) (52) (978) Total present value of lease payments $ 13,376 $ 3,094 $ 16,470 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consist of the following: (In thousands) September 30, 2023 March 31, 2023 Accrued marketing costs $ 26,512 $ 30,471 Accrued compensation costs 8,232 14,292 Accrued broker commissions 2,210 1,767 Income taxes payable 8,160 10,645 Accrued professional fees 4,323 4,254 Accrued production costs 6,003 5,700 Other accrued liabilities 4,640 5,395 $ 60,080 $ 72,524 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) September 30, 2023 March 31, 2023 2021 Senior Notes bearing interest at 3.750%, with interest payable on April 1 and October 1 of each year. The 2021 Senior Notes mature on April 1, 2031. $ 600,000 $ 600,000 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. 400,000 400,000 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 0.50%, or an alternate base rate plus a margin of 1.00% per annum (at March 31, 2023) and SOFR plus a margin of 2.00% plus a credit spread adjustment (at September 30, 2023), due on July 1, 2028. 275,000 360,000 Long-term debt 1,275,000 1,360,000 Less: unamortized debt costs (12,028) (14,212) Long-term debt, net $ 1,262,972 $ 1,345,788 |
Aggregate Future Principal Payments | As of September 30, 2023, aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans under the 2012 Term Loan, the 2012 ABL Revolver and the indentures governing the senior unsecured notes due 2031 (the "2021 Senior Notes") and the senior unsecured notes due 2028 (the "2019 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2024 (remaining six months ending March 31, 2024) $ — 2025 — 2026 — 2027 — 2028 400,000 Thereafter 875,000 $ 1,275,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Carry Amounts and Fair Value Measurements | The summary below details the carrying amounts and estimated fair values of these instruments at September 30, 2023 and March 31, 2023. September 30, 2023 March 31, 2023 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2019 Senior Notes 400,000 373,000 400,000 383,500 2021 Senior Notes 600,000 482,250 600,000 510,750 2012 Term B-5 Loans 275,000 275,000 360,000 359,550 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Class of Treasury Stock | Our share repurchases consisted of the following: Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares — — 88,953 99,219 Average price per share $ — $ — $61.92 $54.94 Total amount repurchased $ — $ — $5.5 million $5.5 million Shares repurchased in conjunction with our share repurchase program: Number of shares — 236,681 426,479 914,236 Average price per share $ — $ 51.85 $58.62 $54.69 Total amount repurchased $ — $12.3 million $25.0 million $50.0 million |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following at September 30, 2023 and March 31, 2023: (In thousands) September 30, 2023 March 31, 2023 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (36,710) $ (32,280) Unrecognized net gain on pension plans, net of tax of $(214) and $(214), respectively 716 716 Accumulated other comprehensive loss, net of tax $ (35,994) $ (31,564) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Six Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Numerator Net income $ 53,559 $ 51,023 $ 106,835 $ 106,295 Denominator Denominator for basic earnings per share — weighted average shares outstanding 49,687 49,804 49,727 50,033 Dilutive effect of unvested restricted stock units and options issued to employees and directors 394 461 411 463 Denominator for diluted earnings per share 50,081 50,265 50,138 50,496 Earnings per Common Share: Basic earnings per share $ 1.08 $ 1.02 $ 2.15 $ 2.12 Diluted earnings per share $ 1.07 $ 1.02 $ 2.13 $ 2.11 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Compensation Expense Information | The following table provides information regarding our stock-based compensation: Three Months Ended September 30, Six Months Ended September 30, (In thousands) 2023 2022 2023 2022 Pre-tax stock-based compensation costs charged against income $ 3,688 $ 3,466 $ 7,834 $ 7,323 Income tax benefit recognized on compensation costs $ 263 $ 338 $ 669 $ 875 Total fair value of options and RSUs vested during the period $ 987 $ 64 $ 12,213 $ 10,289 Cash received from the exercise of stock options $ 2,155 $ — $ 9,183 $ 1,489 Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises $ 263 $ — $ 1,139 $ 2,895 |
Summary of Restricted Shares | A summary of the RSUs granted under the 2005 Plan and the 2020 Plan is presented below: RSUs Shares (in thousands) Weighted Six Months Ended September 30, 2022 Unvested at March 31, 2022 440.9 $ 38.45 Granted 148.9 55.04 Incremental performance shares 42.4 — Vested (222.4) 32.05 Unvested at September 30, 2022 409.8 47.14 Vested at September 30, 2022 108.5 36.54 Six Months Ended September 30, 2023 Unvested at March 31, 2023 409.0 $ 47.17 Granted 157.1 62.06 Incremental performance shares 41.4 — Vested (205.0) 43.17 Forfeited (8.6) 53.72 Unvested at September 30, 2023 393.9 54.40 Vested at September 30, 2023 110.2 38.77 |
Fair Value of Options Granted | 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 presented below: Six Months Ended September 30, 2023 2022 Expected volatility 30.2% - 31.6% 30.8% - 30.9% Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 to 7.0 Risk-free rate 3.6% to 4.1% 2.8% to 2.9% Weighted average grant date fair value of options granted $ 23.79 $ 20.10 |
Stock Option Activity | A summary of option activity under the 2005 Plan and the 2020 Plan is as follows: Options Shares (in thousands) Weighted Weighted Aggregate Six Months Ended September 30, 2022 Outstanding at March 31, 2022 1,100.9 $ 40.62 Granted 197.6 54.48 Exercised (39.1) 38.04 Outstanding at September 30, 2022 1,259.4 42.88 6.6 $ 10,963 Vested at September 30, 2022 830.8 40.04 5.4 $ 9,403 Six Months Ended September 30, 2023 Outstanding at March 31, 2023 1,081.0 $ 43.96 Granted 131.1 61.81 Exercised (230.4) 39.85 Forfeited (35.8) 54.81 Expired (2.8) 54.47 Outstanding at September 30, 2023 943.1 47.00 6.3 $ 10,166 Vested at September 30, 2023 644.7 43.19 5.2 $ 9,025 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Operating and Reportable Segments | The tables below summarize information about our reportable segments. Three Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 244,423 $ 41,893 $ 286,316 Cost of sales 107,466 18,830 126,296 Gross profit 136,957 23,063 160,020 Advertising and marketing 35,389 4,713 40,102 Contribution margin $ 101,568 $ 18,350 $ 119,918 Other operating expenses 31,668 Operating income $ 88,250 * Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment. Six Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 490,566 $ 75,059 $ 565,625 Cost of sales 217,542 33,390 250,932 Gross profit 273,024 41,669 314,693 Advertising and marketing 66,790 9,543 76,333 Contribution margin $ 206,234 $ 32,126 $ 238,360 Other operating expenses 64,916 Operating income $ 173,444 * Intersegment revenues of $2.0 million were eliminated from the North American OTC Healthcare segment. Three Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 252,054 $ 37,219 $ 289,273 Cost of sales 113,533 14,731 128,264 Gross profit 138,521 22,488 161,009 Advertising and marketing 39,316 4,503 43,819 Contribution margin $ 99,205 $ 17,985 $ 117,190 Other operating expenses 32,806 Operating income $ 84,384 * Intersegment revenues of $1.1 million were eliminated from the North American OTC Healthcare segment. Six Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 494,572 $ 71,760 $ 566,332 Cost of sales 216,454 28,750 245,204 Gross profit 278,118 43,010 321,128 Advertising and marketing 74,728 9,042 83,770 Contribution margin $ 203,390 $ 33,968 $ 237,358 Other operating expenses 65,960 Operating income $ 171,398 * Intersegment revenues of $1.7 million were eliminated from the North American OTC Healthcare segment. |
Revenues from Similar Product Groups | The tables below summarize information about our segment revenues from similar product groups. Three Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 29,976 $ 1,386 $ 31,362 Cough & Cold 25,970 7,263 33,233 Women's Health 55,000 7,072 62,072 Gastrointestinal 38,703 14,061 52,764 Eye & Ear Care 39,745 7,125 46,870 Dermatologicals 33,018 1,469 34,487 Oral Care 19,312 3,469 22,781 Other OTC 2,699 48 2,747 Total segment revenues $ 244,423 $ 41,893 $ 286,316 Six Months Ended September 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 57,158 $ 2,228 $ 59,386 Cough & Cold 46,344 13,315 59,659 Women's Health 109,955 12,028 121,983 Gastrointestinal 83,384 26,971 110,355 Eye & Ear Care 79,216 11,146 90,362 Dermatologicals 67,696 2,807 70,503 Oral Care 41,038 6,491 47,529 Other OTC 5,775 73 5,848 Total segment revenues $ 490,566 $ 75,059 $ 565,625 Three Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Analgesics $ 32,750 $ 541 $ 33,291 Cough & Cold 24,058 7,168 31,226 Women's Health 59,379 4,745 64,124 Gastrointestinal 41,272 16,037 57,309 Eye & Ear Care 37,961 4,734 42,695 Dermatologicals 32,872 902 33,774 Oral Care 21,251 3,080 24,331 Other OTC 2,511 12 2,523 Total segment revenues $ 252,054 $ 37,219 $ 289,273 Six Months Ended September 30, 2022 (In thousands) North American OTC International OTC Consolidated Analgesics $ 60,547 $ 994 $ 61,541 Cough & Cold 45,650 13,439 59,089 Women's Health 120,563 9,612 130,175 Gastrointestinal 81,339 30,064 111,403 Eye & Ear Care 76,572 9,470 86,042 Dermatologicals 62,327 1,908 64,235 Oral Care 42,226 6,250 48,476 Other OTC 5,348 23 5,371 Total segment revenues $ 494,572 $ 71,760 $ 566,332 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Packaging and raw materials | $ 22,742 | $ 20,634 |
Work in process | 233 | 220 |
Finished goods | 138,308 | 141,267 |
Inventories | $ 161,283 | $ 162,121 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Mar. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves related to obsolete and slow-moving inventory | $ 6 | $ 5.8 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 741,656 |
Accumulated impairment loss, beginning | (214,103) |
Goodwill, net | 527,553 |
Effects of foreign currency exchange rates | (693) |
Goodwill, gross, ending | 740,963 |
Accumulated impairment loss, ending | (214,103) |
Goodwill, net, ending | 526,860 |
North American OTC Healthcare | |
Goodwill [Roll Forward] | |
Goodwill | 711,452 |
Accumulated impairment loss, beginning | (212,516) |
Goodwill, net | 498,936 |
Effects of foreign currency exchange rates | 0 |
Goodwill, gross, ending | 711,452 |
Accumulated impairment loss, ending | (212,516) |
Goodwill, net, ending | 498,936 |
International OTC Healthcare | |
Goodwill [Roll Forward] | |
Goodwill | 30,204 |
Accumulated impairment loss, beginning | (1,587) |
Goodwill, net | 28,617 |
Effects of foreign currency exchange rates | (693) |
Goodwill, gross, ending | 29,511 |
Accumulated impairment loss, ending | (1,587) |
Goodwill, net, ending | $ 27,924 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, impairment loss | $ 48.8 |
Intangible Assets, net - Activi
Intangible Assets, net - Activity Affecting Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Intangible Assets, Gross [Abstract] | |||||
Totals, gross, beginning balance | $ 2,580,020 | ||||
Totals, effects of foreign currency exchange rate | (3,867) | ||||
Totals, gross, ending balance | $ 2,576,153 | 2,576,153 | |||
Finite-lived Intangible Assets, Accumulated Amortization [Abstract] | |||||
Accumulated amortization, beginning balance | 238,127 | ||||
Accumulated amortization, additions | 4,900 | $ 5,600 | 9,900 | $ 11,300 | |
Accumulated amortization, effects of foreign exchange rates | (124) | ||||
Accumulated amortization, ending balance | 247,903 | 247,903 | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-Lived Intangible Assets, Net | 162,430 | 162,430 | |||
Intangible Assets, Net [Abstract] | |||||
Intangible Assets, Net (Excluding Goodwill), Total | 2,328,250 | 2,328,250 | $ 2,341,893 | ||
Finite-Lived Trademarks and Customer Relationships | |||||
Finite-Lived Intangible Assets, Gross [Abstract] | |||||
Finite-lived trademarks and customer relationships, beginning balance | 411,118 | ||||
Finite-lived trademarks and customer relationships, effects of foreign currency exchange rate | (785) | ||||
Finite-lived trademarks and customer relationships, ending balance | 410,333 | 410,333 | |||
Finite-lived Intangible Assets, Accumulated Amortization [Abstract] | |||||
Accumulated amortization, beginning balance | 238,127 | ||||
Accumulated amortization, additions | 9,900 | ||||
Accumulated amortization, effects of foreign exchange rates | (124) | ||||
Accumulated amortization, ending balance | 247,903 | 247,903 | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Finite-Lived Intangible Assets, Net | 162,430 | 162,430 | |||
Indefinite- Lived Trademarks | |||||
Indefinite-Lived Intangible Assets [Abstract] | |||||
Indefinite-lived trademarks, beginning balance | 2,168,902 | ||||
Indefinite lived trademarks, effects of foreign currency exchange rate | (3,082) | ||||
Indefinite-lived trademarks, ending balance | $ 2,165,820 | $ 2,165,820 |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 4,900 | $ 5,600 | $ 9,900 | $ 11,300 | |
Impairment of intangible assets | $ 321,400 | ||||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset, useful life | 10 years | 10 years | |||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset, useful life | 25 years | 25 years |
Intangible Assets, net - Future
Intangible Assets, net - Future Amortization of Intangible Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (remaining six months ended March 31, 2024) | $ 9,866 |
2025 | 18,061 |
2026 | 16,110 |
2027 | 14,519 |
2028 | 12,183 |
Thereafter | 91,691 |
Finite-lived intangible assets, net | $ 162,430 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 664 | $ 664 | $ 1,329 | $ 1,329 |
Interest on lease liabilities | 24 | 45 | 54 | 95 |
Operating lease cost | 1,624 | 1,617 | 3,248 | 3,251 |
Short term lease cost | 34 | 51 | 67 | 85 |
Variable lease cost | 16,941 | 17,016 | 33,397 | 29,015 |
Total net lease cost | $ 19,287 | $ 19,393 | $ 38,095 | $ 33,775 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Operating Leases | |
2024 (remaining six months ending March 31, 2024) | $ 3,564 |
2025 | 4,810 |
2026 | 2,328 |
2027 | 1,913 |
2028 | 1,433 |
Thereafter | 254 |
Total undiscounted lease payments | 14,302 |
Less amount of lease payments representing interest | (926) |
Total present value of lease payments | 13,376 |
Finance Lease | |
2024 (remaining six months ending March 31, 2024) | 1,461 |
2025 | 1,509 |
2026 | 96 |
2027 | 80 |
2028 | 0 |
Thereafter | 0 |
Total undiscounted lease payments | 3,146 |
Less amount of lease payments representing interest | (52) |
Total present value of lease payments | 3,094 |
Total | |
2024 (remaining six months ending March 31, 2024) | 5,025 |
2025 | 6,319 |
2026 | 2,424 |
2027 | 1,993 |
2028 | 1,433 |
Thereafter | 254 |
Total undiscounted lease payments | 17,448 |
Less amount of lease payments representing interest | (978) |
Total present value of lease payments | $ 16,470 |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2023 |
Weighted average remaining lease term (years) | |
Operating leases | 3 years 7 days |
Finance leases | 1 year 2 months 23 days |
Weighted average discount rate | |
Operating leases | 3.62% |
Finance leases | 2.94% |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued marketing costs | $ 26,512 | $ 30,471 |
Accrued compensation costs | 8,232 | 14,292 |
Accrued broker commissions | 2,210 | 1,767 |
Income taxes payable | 8,160 | 10,645 |
Accrued professional fees | 4,323 | 4,254 |
Accrued production costs | 6,003 | 5,700 |
Other accrued liabilities | 4,640 | 5,395 |
Total other accrued liabilities | $ 60,080 | $ 72,524 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 1,275,000 | |
Long-term debt, net | 1,275,000 | $ 1,360,000 |
Less: unamortized debt costs | (12,028) | (14,212) |
Long-term debt, net | $ 1,262,972 | 1,345,788 |
Senior Notes | 2021 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.75% | |
Total long-term debt (including current portion) | $ 600,000 | 600,000 |
Senior Notes | 2019 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.125% | |
Total long-term debt (including current portion) | $ 400,000 | 400,000 |
Term Loans | 2012 Term B-5 Loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 275,000 | $ 360,000 |
Term Loans | 2012 Term B-5 Loans | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2% | |
Debt instrument, variable rate, minimum | 0.50% | |
Term Loans | 2012 Term B-5 Loans | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1% | |
Term Loans | 2012 Term B-5 Loans | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
Long-term debt outstanding | $ 1,275,000 |
Revolving Credit Facility | 2012 ABL Revolver | |
Debt Instrument [Line Items] | |
Long-term debt outstanding | 0 |
Borrowing capacity | $ 171,200 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-term Debt (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Aggregate Future Principal Payments | |
2024 (remaining six months ending March 31, 2024) | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 400,000 |
Thereafter | 875,000 |
Total long-term debt (including current portion) | $ 1,275,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 31, 2023 |
Senior Notes | 2019 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | $ 400,000 | $ 400,000 |
Senior Notes | 2021 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 600,000 | 600,000 |
Term Loans | 2012 Term B-5 Loans | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 275,000 | 360,000 |
Fair Value, Measurements, Recurring | Senior Notes | 2019 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 373,000 | 383,500 |
Fair Value, Measurements, Recurring | Senior Notes | 2021 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 482,250 | 510,750 |
Fair Value, Measurements, Recurring | Term Loans | 2012 Term B-5 Loans | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | $ 275,000 | $ 359,550 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 6 Months Ended | ||
Sep. 30, 2023 USD ($) vote $ / shares shares | May 02, 2023 USD ($) | Mar. 31, 2023 $ / shares shares | |
Stockholders' Equity Note [Abstract] | |||
Common stock, shares authorized (in shares) | shares | 250,000,000 | 250,000,000 | |
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | shares | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Voting rights, number of votes per common share owned | vote | 1 | ||
Dividends declared on common stock | $ | $ 0 | ||
Stock repurchase program, authorized amount | $ | $ 25,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Repurchased Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | ||||
Total amount repurchased | $ 12,273 | $ 30,547 | $ 55,450 | |
Share Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Number of shares (in shares) | 0 | 236,681 | 426,479 | 914,236 |
Average price per share (in USD per share) | $ 0 | $ 51.85 | $ 58.62 | $ 54.69 |
Total amount repurchased | $ 0 | $ 12,300 | $ 25,000 | $ 50,000 |
Restricted Shares | ||||
Class of Stock [Line Items] | ||||
Number of shares (in shares) | 0 | 0 | 88,953 | 99,219 |
Average price per share (in USD per share) | $ 0 | $ 0 | $ 61.92 | $ 54.94 |
Total amount repurchased | $ 0 | $ 0 | $ 5,500 | $ 5,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Shareholders' equity | $ 1,535,959 | $ 1,480,295 | $ 1,447,084 | $ 1,619,841 | $ 1,584,743 | $ 1,577,611 |
Accumulated other comprehensive loss, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Shareholders' equity | (35,994) | $ (32,210) | (31,564) | $ (36,459) | $ (29,341) | $ (19,032) |
Cumulative translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Shareholders' equity | (36,710) | (32,280) | ||||
Unrecognized net gain on pension plans, net of tax of $(214) and $(214), respectively | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Shareholders' equity | 716 | 716 | ||||
Unrecognized net gain on pension plan, tax | $ (214) | $ (214) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | ||
Reclassification from accumulated other comprehensive loss into earnings | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basis and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income | $ 53,559 | $ 51,023 | $ 106,835 | $ 106,295 |
Denominator | ||||
Denominator for basic earnings per share — weighted average shares outstanding (in shares) | 49,687 | 49,804 | 49,727 | 50,033 |
Dilutive effect of unvested restricted stock units and options issued to employees and directors (in shares) | 394 | 461 | 411 | 463 |
Denominator for diluted earnings per share (in shares) | 50,081 | 50,265 | 50,138 | 50,496 |
Earnings per Common Share: | ||||
Basic earnings per share (in USD per share) | $ 1.08 | $ 1.02 | $ 2.15 | $ 2.12 |
Diluted earnings per share (in USD per share) | $ 1.07 | $ 1.02 | $ 2.13 | $ 2.11 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Outstanding Stock Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 0.3 | 0.4 | 0.3 | 0.4 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2023 | Jun. 23, 2020 | May 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to nonvested awards | $ 3.8 | |||
Unrecognized compensation costs related to nonvested awards, weighted average period for recognition (years) | 2 years 1 month 6 days | |||
Shares available for issuance under the Plan (in shares) | 1,900,000 | |||
Options exercised, aggregate intrinsic value | $ 4.7 | |||
Restricted Stock Units (RSUs) & Performance Stock Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to nonvested awards | $ 14.8 | |||
Unrecognized compensation costs related to nonvested awards, weighted average period for recognition (years) | 1 year 10 months 24 days | |||
Long-term Equity Incentive Plan, 2005 | ||||
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 (in shares) | 1,800,000 | |||
Long-term Incentive Plan, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, capital shares reserved for future issuance (in shares) | 2,827,210 | |||
Number of new shares for future issuance under 2020 long-term incentive plans (in shares) | 2,000,000 | |||
Number of unissued shares reserved for 2020 long-term incentive plans (in shares) | 827,210 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Pre-tax stock-based compensation costs charged against income | $ 3,688 | $ 3,466 | $ 7,834 | $ 7,323 |
Income tax benefit recognized on compensation costs | 263 | 338 | 669 | 875 |
Total fair value of options and RSUs vested during the period | 987 | 64 | 12,213 | 10,289 |
Cash received from the exercise of stock options | 2,155 | 0 | 9,183 | 1,489 |
Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises | $ 263 | $ 0 | $ 1,139 | $ 2,895 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Shares | ||
Outstanding, beginning of period (in shares) | 409,000 | 440,900 |
Granted (in shares) | 157,100 | 148,900 |
Incremental performance shares (in shares) | 41,400 | 42,400 |
Vested (in shares) | (205,000) | (222,400) |
Forfeited (in shares) | (8,600) | |
Outstanding, end of period (in shares) | 393,900 | 409,800 |
Vested, end of period (in shares) | 110,200 | 108,500 |
Weighted Average Grant-Date Fair Value | ||
Outstanding, beginning of period, weighted-average grant-date fair value (in USD per share) | $ 47.17 | $ 38.45 |
Granted, weighted-average grant-date fair value (in USD per share) | 62.06 | 55.04 |
Vested, weighted-average grant-date fair value (in USD per share) | 43.17 | 32.05 |
Forfeited, weighted-average grant-date fair value (in USD per share) | 53.72 | |
Outstanding, end of period, weighted-average grant-date fair value (in USD per share) | 54.40 | 47.14 |
Vested, end of period, weighted-average grant-date fair value (in USD per share) | $ 38.77 | $ 36.54 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - Stock Options - USD ($) | 6 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends | $ 0 | $ 0 |
Granted, weighted-average grant-date fair value (in USD per share) | $ 23.79 | $ 20.10 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 30.20% | 30.80% |
Expected term in years | 6 years | 6 years |
Risk-free rate | 3.60% | 2.80% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 31.60% | 30.90% |
Expected term in years | 7 years | 7 years |
Risk-free rate | 4.10% | 2.90% |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | |
Shares | ||
Outstanding, beginning of period (in shares) | shares | 1,081,000 | 1,100,900 |
Granted (in shares) | shares | 131,100 | 197,600 |
Exercised (in shares) | shares | (230,400) | (39,100) |
Forfeited (in shares) | shares | (35,800) | |
Expired (in shares) | shares | (2,800) | |
Outstanding, end of period (in shares) | shares | 943,100 | 1,259,400 |
Exercisable, end of period (in shares) | shares | 644,700 | 830,800 |
Weighted Average Exercise Price | ||
Outstanding, beginning of period, weighted-average exercise price (in USD per share) | $ / shares | $ 43.96 | $ 40.62 |
Granted, weighted-average exercise price (in USD per share) | $ / shares | 61.81 | 54.48 |
Exercised, weighted-average exercise price (in USD per share) | $ / shares | 39.85 | 38.04 |
Forfeited, weighted-average exercise price (in USD per share) | $ / shares | 54.81 | |
Expired, weighted-average exercise price (in USD per share) | $ / shares | 54.47 | |
Outstanding, end of period, weighted-average exercise price (in USD per share) | $ / shares | 47 | 42.88 |
Exercisable, end of period, weighted-average exercise price (in USD per share) | $ / shares | $ 43.19 | $ 40.04 |
Options, Additional Disclosures: | ||
Outstanding, end of period, weighted-average remaining contractual term | 6 years 3 months 18 days | 6 years 7 months 6 days |
Exercisable, end of period, weighted-average remaining contractual term | 5 years 2 months 12 days | 5 years 4 months 24 days |
Outstanding, end of period, aggregate intrinsic value | $ | $ 10,166 | $ 10,963 |
Exercisable, end of period, aggregate intrinsic value | $ | $ 9,025 | $ 9,403 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 23.90% | 23.40% | 23.20% | 22.70% |
Concentrations of Risk (Details
Concentrations of Risk (Details) - manufacturer | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Number of third-party manufacturers | 128 | 130 | 128 | 130 |
Sales | Customer Concentration Risk | Walmart | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 19.10% | 19.70% | 20% | 19.80% |
Sales | Customer Concentration Risk | Amazon | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.30% | |||
Sales | Customer Concentration Risk | Walgreens | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.40% | |||
Sales | Supplier Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Number of third-party manufacturers with long-term contracts | 28 | 27 | ||
Top 5 brands | Sales | Product Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 38.90% | 39.70% | 40% | 40.60% |
Manufacturers | Sales | Supplier Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 74.60% | 71.30% |
Business Segments - Information
Business Segments - Information on Operating and Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | $ 286,316 | $ 289,273 | $ 565,625 | $ 566,332 |
Cost of sales | 126,296 | 128,264 | 250,932 | 245,204 |
Gross profit | 160,020 | 161,009 | 314,693 | 321,128 |
Advertising and marketing | 40,102 | 43,819 | 76,333 | 83,770 |
Contribution margin | 119,918 | 117,190 | 238,360 | 237,358 |
Other operating expenses | 31,668 | 32,806 | 64,916 | 65,960 |
Operating income | 88,250 | 84,384 | 173,444 | 171,398 |
North American OTC Healthcare | ||||
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | 244,423 | 252,054 | 490,566 | 494,572 |
International OTC Healthcare | ||||
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | 41,893 | 37,219 | 75,059 | 71,760 |
Operating Segments | North American OTC Healthcare | ||||
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | 244,423 | 252,054 | 490,566 | 494,572 |
Cost of sales | 107,466 | 113,533 | 217,542 | 216,454 |
Gross profit | 136,957 | 138,521 | 273,024 | 278,118 |
Advertising and marketing | 35,389 | 39,316 | 66,790 | 74,728 |
Contribution margin | 101,568 | 99,205 | 206,234 | 203,390 |
Operating Segments | International OTC Healthcare | ||||
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | 41,893 | 37,219 | 75,059 | 71,760 |
Cost of sales | 18,830 | 14,731 | 33,390 | 28,750 |
Gross profit | 23,063 | 22,488 | 41,669 | 43,010 |
Advertising and marketing | 4,713 | 4,503 | 9,543 | 9,042 |
Contribution margin | 18,350 | 17,985 | 32,126 | 33,968 |
Intersegment Eliminations | North American OTC Healthcare | ||||
Segment Reporting Information, Profit (Loss): | ||||
Total revenues | $ 600 | $ 1,100 | $ 2,000 | $ 1,700 |
Business Segments - Revenue (De
Business Segments - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | $ 286,316 | $ 289,273 | $ 565,625 | $ 566,332 |
Analgesics | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 31,362 | 33,291 | 59,386 | 61,541 |
Cough & Cold | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 33,233 | 31,226 | 59,659 | 59,089 |
Women's Health | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 62,072 | 64,124 | 121,983 | 130,175 |
Gastrointestinal | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 52,764 | 57,309 | 110,355 | 111,403 |
Eye & Ear Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 46,870 | 42,695 | 90,362 | 86,042 |
Dermatologicals | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 34,487 | 33,774 | 70,503 | 64,235 |
Oral Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 22,781 | 24,331 | 47,529 | 48,476 |
Other OTC | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 2,747 | 2,523 | 5,848 | 5,371 |
North American OTC Healthcare | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 244,423 | 252,054 | 490,566 | 494,572 |
North American OTC Healthcare | Analgesics | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 29,976 | 32,750 | 57,158 | 60,547 |
North American OTC Healthcare | Cough & Cold | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 25,970 | 24,058 | 46,344 | 45,650 |
North American OTC Healthcare | Women's Health | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 55,000 | 59,379 | 109,955 | 120,563 |
North American OTC Healthcare | Gastrointestinal | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 38,703 | 41,272 | 83,384 | 81,339 |
North American OTC Healthcare | Eye & Ear Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 39,745 | 37,961 | 79,216 | 76,572 |
North American OTC Healthcare | Dermatologicals | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 33,018 | 32,872 | 67,696 | 62,327 |
North American OTC Healthcare | Oral Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 19,312 | 21,251 | 41,038 | 42,226 |
North American OTC Healthcare | Other OTC | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 2,699 | 2,511 | 5,775 | 5,348 |
International OTC Healthcare | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 41,893 | 37,219 | 75,059 | 71,760 |
International OTC Healthcare | Analgesics | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 1,386 | 541 | 2,228 | 994 |
International OTC Healthcare | Cough & Cold | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 7,263 | 7,168 | 13,315 | 13,439 |
International OTC Healthcare | Women's Health | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 7,072 | 4,745 | 12,028 | 9,612 |
International OTC Healthcare | Gastrointestinal | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 14,061 | 16,037 | 26,971 | 30,064 |
International OTC Healthcare | Eye & Ear Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 7,125 | 4,734 | 11,146 | 9,470 |
International OTC Healthcare | Dermatologicals | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 1,469 | 902 | 2,807 | 1,908 |
International OTC Healthcare | Oral Care | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | 3,469 | 3,080 | 6,491 | 6,250 |
International OTC Healthcare | Other OTC | ||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||
Total revenues | $ 48 | $ 12 | $ 73 | $ 23 |