Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CSS | |
Entity Registrant Name | CSS INDUSTRIES INC | |
Entity Central Index Key | 20,629 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,030,893 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 111,477 | $ 106,092 | $ 155,705 | $ 154,349 |
Costs and expenses | ||||
Cost of sales | 73,686 | 70,695 | 105,472 | 104,353 |
Selling, general and administrative expenses | 20,100 | 19,895 | 37,400 | 36,652 |
Interest (income) expense, net | (10) | 17 | (82) | (4) |
Other expense (income), net | 48 | 0 | 0 | (79) |
Total costs and expenses | 93,824 | 90,607 | 142,790 | 140,922 |
Income before income taxes | 17,653 | 15,485 | 12,915 | 13,427 |
Income tax expense | 6,424 | 5,638 | 4,754 | 4,905 |
Net income | $ 11,229 | $ 9,847 | $ 8,161 | $ 8,522 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.23 | $ 1.06 | $ 0.88 | $ 0.91 |
Diluted (in dollars per share) | $ 1.22 | $ 1.05 | $ 0.87 | $ 0.91 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 9,148 | 9,323 | 9,245 | 9,316 |
Diluted (in shares) | 9,237 | 9,397 | 9,345 | 9,393 |
Cash dividends per share of common stock (in dollars per share) | $ 0.18 | $ 0.15 | $ 0.36 | $ 0.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Current assets | |||
Cash and cash equivalents | $ 27,745 | $ 36,429 | $ 26,840 |
Short-term investments | 24,929 | 69,845 | 29,961 |
Accounts receivable, net of allowances of $1,375, $1,059 and $1,326 | 95,080 | 42,052 | 97,502 |
Inventories | 79,265 | 65,491 | 74,980 |
Deferred income taxes | 4,652 | 4,375 | 4,287 |
Other current assets | 10,587 | 11,235 | 14,347 |
Total current assets | 242,258 | 229,427 | 247,917 |
Property, plant and equipment, net | 25,769 | 25,493 | 25,854 |
Deferred income taxes | 0 | 582 | 1,539 |
Other assets | |||
Goodwill | 15,820 | 15,820 | 15,083 |
Intangible assets, net | 31,770 | 33,048 | 27,049 |
Other | 5,810 | 5,103 | 4,191 |
Total other assets | 53,400 | 53,971 | 46,323 |
Total assets | 321,427 | 309,473 | 321,633 |
Current liabilities | |||
Accounts payable | 27,165 | 12,917 | 27,505 |
Accrued payroll and other compensation | 7,368 | 9,054 | 7,087 |
Accrued customer programs | 3,920 | 4,042 | 5,687 |
Accrued income taxes | 3,173 | 745 | 3,719 |
Other current liabilities | 9,641 | 8,247 | 9,125 |
Total current liabilities | 51,267 | 35,005 | 53,123 |
Deferred income taxes | 239 | 0 | 0 |
Long-term obligations | 4,295 | 4,213 | 4,680 |
Stockholders’ equity | 265,626 | 270,255 | 263,830 |
Total liabilities and stockholders’ equity | $ 321,427 | $ 309,473 | $ 321,633 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | |||
Allowances for accounts receivable | $ 1,375 | $ 1,059 | $ 1,326 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 8,161 | $ 8,522 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Depreciation and amortization | 4,102 | 3,917 |
Accretion of investment discount | (160) | (99) |
Provision for accounts receivable allowances | 1,530 | 1,003 |
Deferred tax provision | 745 | 674 |
Stock-based compensation expense | 867 | 1,017 |
Changes in assets and liabilities: | ||
Accounts receivable | (54,558) | (53,262) |
Inventory | (13,774) | (14,077) |
Other assets | (293) | (946) |
Accounts payable | 13,942 | 16,842 |
Other accrued liabilities | 2,077 | 4,642 |
Total adjustments | (45,522) | (40,289) |
Net cash used for operating activities | (37,361) | (31,767) |
Cash flows from investing activities: | ||
Maturities of investment securities | 70,000 | 0 |
Purchase of held-to-maturity investment securities | (24,924) | 0 |
Purchase of a business | 0 | (5,142) |
Purchase of property, plant and equipment | (2,817) | (1,531) |
Proceeds from sale of fixed assets | 23 | 5 |
Net cash provided by (used for) investing activities | 42,282 | (6,668) |
Cash flows from financing activities: | ||
Dividends paid | (3,321) | (2,796) |
Purchase of treasury stock | (10,000) | 0 |
Exercise of stock options, net of tax withholdings | 0 | 41 |
Payments for tax withholding on net restricted stock settlements | (518) | (291) |
Tax effect on stock awards | 234 | 121 |
Net cash used for financing activities | (13,605) | (2,925) |
Net decrease in cash and cash equivalents | (8,684) | (41,360) |
Cash and cash equivalents at beginning of period | 36,429 | 68,200 |
Cash and cash equivalents at end of period | $ 27,745 | $ 26,840 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation CSS Industries, Inc. (collectively with its subsidiaries, “CSS” or the “Company”) has prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . The results of operations for the interim periods are not necessarily indicative of the results for the full year. The Company’s fiscal year ends on March 31. References to a particular fiscal year refer to the fiscal year ending in March of that year. For example, “fiscal 2016 ” refers to the fiscal year ending March 31, 2016 . Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. Nature of Business CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal products include decorative ribbons and bows, journals, boxed greeting cards, classroom exchange Valentines, gift tags, gift bags, gift card holders, gift wrap, decorations, floral accessories, craft and educational products, Easter egg dyes and novelties, memory books, scrapbooks, stickers, infant and wedding photo albums, stationery, and other items that commemorate life’s celebrations. The seasonal nature of CSS’ business has historically resulted in lower sales levels and operating losses in the first and fourth quarters and comparatively higher sales levels and operating profits in the second and third quarters of the Company’s fiscal year, which ends March 31, thereby causing significant fluctuations in the quarterly results of operations of the Company. The Company's principal operating subsidiaries include Berwick Offray LLC ("Berwick Offray"), Paper Magic Group, Inc. ("Paper Magic") and C.R. Gibson, LLC ("C.R. Gibson"). Reclassification Certain prior period amounts have been reclassified to conform with the current year classification. Foreign Currency Translation and Transactions Translation adjustments are charged or credited to a separate component of stockholders’ equity. Gains and losses on foreign currency transactions are not material and are included in other expense (income), net in the consolidated statements of operations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 and the reported amounts of revenues and expenses during the reporting period. Judgments and assessments of uncertainties are required in applying the Company’s accounting policies in many areas. Such estimates pertain to revenue recognition, the valuation of inventory and accounts receivable, the assessment of the recoverability of goodwill and other intangible and long-lived assets, income tax accounting, the valuation of stock-based awards and resolution of litigation and other proceedings. Actual results could differ from these estimates. Short-Term Investments The Company categorizes and accounts for its short-term investment holdings as held-to-maturity securities. Held-to-maturity securities are recorded at amortized cost which approximates fair value at September 30, 2015 , March 31, 2015 and September 30, 2014 . This categorization is based upon the Company's positive intent and ability to hold these securities until maturity. Short-term investments at September 30, 2015 consist of commercial paper with an amortized cost of $24,929,000 that mature in the fourth quarter of fiscal 2016. Short-term investments at March 31, 2015 consisted of commercial paper with an amortized cost of $69,845,000 that matured in the first half of fiscal 2016 . Short-term investments at September 30, 2014 consisted of commercial paper with an amortized cost of $29,961,000 that matured in fiscal 2015 . Inventories The Company records inventory when title is transferred, which occurs upon receipt or prior to receipt dependent on supplier shipping terms. The Company adjusts unsaleable and slow-moving inventory to its estimated net realizable value. Substantially all of the Company’s inventories are stated at the lower of first-in, first-out (FIFO) cost or market. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost or market. Inventories consisted of the following (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Raw material $ 11,376 $ 9,612 $ 9,117 Work-in-process 13,603 15,376 10,663 Finished goods 54,286 40,503 55,200 $ 79,265 $ 65,491 $ 74,980 Property, Plant and Equipment Property, plant and equipment are stated at cost and include the following (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Land $ 2,508 $ 2,508 $ 2,508 Buildings, leasehold interests and improvements 33,754 35,664 35,398 Machinery, equipment and other 86,722 88,148 88,291 122,984 126,320 126,197 Less - Accumulated depreciation and amortization (97,215 ) (100,827 ) (100,343 ) Net property, plant and equipment $ 25,769 $ 25,493 $ 25,854 Depreciation expense was $1,419,000 and $1,543,000 for the quarters ended September 30, 2015 and 2014 , respectively, and was $2,824,000 and $3,037,000 for the six months ended September 30, 2015 and 2014 , respectively. Long-Lived Assets including Goodwill and Other Intangible Assets The Company performs an annual impairment test of the carrying amount of goodwill and indefinite-lived intangible assets in the fourth quarter of its fiscal year. Additionally, the Company would perform its impairment testing at an interim date if events or circumstances indicate that goodwill or intangibles might be impaired. During the six months ended September 30, 2015 , there were no such events or circumstances. The Company uses a dual approach to determine the fair value of its reporting units, including both a market approach and an income approach. The Company believes the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. The first step of the test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. If the carrying amount of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the goodwill to the implied fair value of the goodwill. If the implied fair value of the goodwill is less than the carrying amount of the goodwill, an impairment loss would be reported. Other indefinite-lived intangible assets consist primarily of tradenames, which are also required to be tested annually for impairment. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. Long-lived assets (including property, plant and equipment), except for goodwill and indefinite-lived intangible assets, are reviewed for impairment when events or circumstances indicate the carrying value of an asset group may not be recoverable. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. During the six months ended September 30, 2015 , there were no such events or circumstances. See Note 5 for further information on other intangible assets. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the impact of an uncertain tax position if it is more likely than not that such position will be sustained on audit, based solely on the technical merits of the position. Revenue Recognition The Company recognizes revenue from product sales when the goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. Provisions for returns, allowances, rebates to customers and other adjustments are provided in the same period that the related sales are recorded. Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share for the three- and six months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 11,229 $ 9,847 $ 8,161 $ 8,522 Denominator: Weighted average shares outstanding for basic net income per common share 9,148 9,323 9,245 9,316 Effect of dilutive stock options 89 74 100 77 Adjusted weighted average share outstanding for diluted net income per common share 9,237 9,397 9,345 9,393 Basic net income per common share $ 1.23 $ 1.06 $ 0.88 $ 0.91 Diluted net income per common share $ 1.22 $ 1.05 $ 0.87 $ 0.91 The Company has excluded 258,000 shares and 236,000 shares, consisting of outstanding stock options and unearned restricted stock units, in computing diluted net income per common share for the three- and six months ended September 30, 2015 and 2014 , respectively, because their effects were antidilutive. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition | BUSINESS ACQUISITION On February 19, 2015, a subsidiary of the Company completed the acquisition of substantially all of the business and assets of Hollywood Ribbon Industries, Inc. (“Hollywood Ribbon”) for approximately $12,903,000 in cash, including transaction costs of approximately $121,000 . The Company also incurred one-time transition costs of approximately $760,000 in fiscal 2015, primarily related to services performed under a transition service agreement and costs related to the relocation of inventory and equipment. Hollywood Ribbon was a manufacturer, distributor and supplier of ribbon, bows and similar products to mass market retailers and national grocery, drug store, party and craft, and discount chains. As of September 30, 2015 , a portion of the purchase price is being held in escrow for certain post-closing adjustments and indemnification obligations. The acquisition was accounted for as a purchase, and $745,000 , which is the excess of cost over preliminary fair value of the net tangible and identifiable intangible assets acquired, was recorded as goodwill in the accompanying consolidated balance sheet. For tax purposes, goodwill resulting from this acquisition is deductible. On May 19, 2014, a subsidiary of the Company completed the acquisition of substantially all of the business and assets of Carson & Gebel Ribbon Co., LLC ("Carson & Gebel") for approximately $5,173,000 in cash, including transaction costs of approximately $31,000 . Carson & Gebel was a manufacturer, distributor and supplier of decorative ribbon and similar products to wholesale florists, packaging distributors and bow manufacturers. Key product categories include cut edge acetate ribbon and velvet ribbon used in everyday and holiday floral arrangements. As of September 30, 2015 , a portion of the purchase price is being held in escrow for certain post-closing adjustments and indemnification obligations. The acquisition was accounted for as a purchase, and $553,000 , which was the excess of cost over fair value of the net tangible and identifiable intangible assets acquired, was recorded as goodwill in the accompanying consolidated balance sheet. For tax purposes, goodwill resulting from this acquisition is deductible. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisitions in fiscal 2015 (in thousands): Cash $ 2,778 Accounts receivable 1,545 Inventory 3,336 Other assets 38 Total current assets 7,697 Property, plant and equipment 543 Intangible assets 8,590 Goodwill 1,298 Total assets acquired 18,128 Current liabilities 204 Total liabilities assumed 204 Net assets acquired $ 17,924 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION 2013 Equity Compensation Plan On July 30, 2013, the Company’s stockholders approved the CSS Industries, Inc. 2013 Equity Compensation Plan (“ 2013 Plan ”). Under the terms of the Company’s 2013 Plan, the Human Resources Committee of the Company’s Board of Directors (“Board”), or other committee appointed by the Board (collectively with the Human Resources Committee, the “2013 Equity Plan Committee”), may grant incentive stock options, non-qualified stock options, stock units, restricted stock grants, stock appreciation rights, stock bonus awards and dividend equivalents to officers and other employees. Grants under the 2013 Plan may be made through July 29, 2023. The term of each grant is at the discretion of the 2013 Equity Plan Committee, but in no event greater than ten years from the date of grant. The 2013 Equity Plan Committee has discretion to determine the date or dates on which granted options become exercisable. Service-based options outstanding as of September 30, 2015 become exercisable at the rate of 25% per year commencing one year after the date of grant. Market-based stock options outstanding as of September 30, 2015 will become exercisable only if certain market conditions and service requirements are satisfied, and the date(s) on which they become exercisable will depend on the period in which such market conditions and service requirements are met, if at all, except that vesting and exercisability are accelerated upon a change of control. Market-based restricted stock units (“RSUs”) outstanding at September 30, 2015 will vest only if certain market conditions and service requirements have been met, and the date(s) on which they vest will depend on the period in which such market conditions and service requirements are met, if at all, except that vesting and redemption are accelerated upon a change of control. At September 30, 2015 , there were 798,500 shares available for grant. 2011 Stock Option Plan for Non-Employee Directors Under the terms of the CSS Industries, Inc. 2011 Stock Option Plan for Non-Employee Directors (“ 2011 Plan ”), non-qualified stock options to purchase up to 150,000 shares of common stock are available for grant to non-employee directors at exercise prices of not less than fair market value of the underlying common stock on the date of grant. Under the 2011 Plan, options to purchase 4,000 shares of the Company’s common stock are granted automatically to each non-employee director on the last day that the Company’s common stock is traded in November of each year from 2011 to 2015. Each option will expire five years after the date the option is granted and options may be exercised at the rate of 25% per year commencing one year after the date of grant. At September 30, 2015 , 91,000 shares were available for grant under the 2011 Plan. The fair value of each stock option and RSU granted under the above plans was estimated on the date of grant using either a Black-Scholes option pricing model (service-based awards) or a Monte Carlo simulation model (market-based awards) with the following average assumptions: Stock Options RSUs Six Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.96 % 1.44 % 1.29 % 1.17 % Volatility 36.90 % 50.10 % 36.86 % 38.72 % Dividend yield 2.59 % 2.38 % 2.60 % 2.38 % Expected life of option (in years) 4.75 4.75 During the six months ended September 30, 2015 and 2014 , the Company granted 134,100 and 110,975 stock options, respectively, with a weighted average fair value of $7.35 and $9.24 , respectively. During the six months ended September 30, 2015 and 2014 , the Company granted 44,100 and 47,385 RSUs, respectively, with a weighted average fair value of $18.46 and $17.82 , respectively. As of September 30, 2015 , there were 560,700 and 188,025 outstanding stock options and RSUs, respectively. As of September 30, 2015 , there was $1,707,000 of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s equity incentive plans which is expected to be recognized over a weighted average period of 2.8 years . As of September 30, 2015 , there was $1,533,000 of total unrecognized compensation cost related to non-vested RSUs granted under the Company’s equity incentive plans which is expected to be recognized over a weighted average period of 2.4 years . On August 11, 2015, the Company granted 10,000 RSUs to the new Chair of the Company's Board of Directors. On August 15, 2017, the RSUs will become vested and convertible into a lump sum cash payment equal to the then fair market value of corresponding shares of common stock of the Company if, and only to the extent that, certain service-based vesting conditions and other terms and conditions are satisfied, or upon occurrence of a change of control. The RSUs are classified as liability awards because they will be paid in cash upon vesting. The RSU award liability is measured at its fair market value at the end of each reporting period and, therefore, will fluctuate based on the performance of the Company's stock. The total amount accrued related to this grant as of September 30, 2015 was $17,000 and is included in long-term obligations in the condensed consolidated balance sheet. There were no such liability classified awards as of September 30, 2014. During the quarter ended September 30, 2015, dividend equivalent units of approximately $2,000 were paid related to these liability classified awards and were charged to selling, general and administrative expenses. Compensation cost related to stock options and RSUs (inclusive of the liability classified awards described above) recognized in operating results (included in selling, general and administrative expenses) was $410,000 and $511,000 in the quarters ended September 30, 2015 and 2014 , respectively, and $867,000 and $1,017,000 in the six months ended September 30, 2015 and 2014 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations on sales denominated in a foreign currency. Derivatives are not used for trading or speculative activities. Firmly committed transactions and the related receivables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other expense (income), net as offsets of gains and losses resulting from the underlying hedged transactions. A realized gain of $9,000 was recorded in the three- and six months ended September 30, 2015 . A realized gain of $15,000 and $14,000 was recorded in the three- and six months ended September 30, 2014 , respectively. As of September 30, 2015 and 2014 , the notional amount of open foreign currency forward contracts was $1,656,000 and $2,097,000 , respectively. The related unrealized gain was $97,000 and $42,000 at September 30, 2015 and 2014 , respectively. The Company believes it does not have significant counterparty credit risks as of September 30, 2015 . The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s condensed consolidated balance sheet (in thousands): Fair Value of Derivative Instruments Fair Value Balance Sheet Location September 30, 2015 September 30, 2014 Foreign currency forward contracts Other current assets $ 97 $ 42 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The gross carrying amount and accumulated amortization of other intangible assets is as follows (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames and trademarks $ 12,953 $ — $ 12,953 $ — $ 12,953 $ — Customer relationships 29,957 12,183 29,957 11,031 23,357 10,155 Trademarks 403 318 403 303 403 288 Patents 1,164 650 1,164 592 1,164 534 Non-compete 530 86 530 33 160 11 $ 45,007 $ 13,237 $ 45,007 $ 11,959 $ 38,037 $ 10,988 Amortization expense related to intangible assets was $639,000 and $456,000 for the quarters ended September 30, 2015 and 2014 , respectively, and was $1,278,000 and $880,000 for the six months ended September 30, 2015 and 2014 , respectively. Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2016 and each of the succeeding four years is projected to be as follows (in thousands): Remainder of fiscal 2016 $ 1,277 Fiscal 2017 2,555 Fiscal 2018 2,555 Fiscal 2019 2,531 Fiscal 2020 2,486 |
Treasury Stock Transactions
Treasury Stock Transactions | 6 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Treasury Stock Transactions | TREASURY STOCK TRANSACTIONS On May 19, 2015, the Company announced that its Board of Directors had authorized the repurchase of up to an additional 500,000 shares of the Company's common stock under the Company's stock repurchase program. The Company repurchased 352,789 shares of the Company’s common stock under such program for approximately $10,000,000 during the six months ended September 30, 2015 . There were no repurchases of the Company's common stock by the Company during the six months ended September 30, 2014 . As of September 30, 2015 , the Company had 348,166 shares remaining available for repurchase under the Board’s authorizations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES CSS and its subsidiaries are involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the consolidated financial position of the Company or its results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The Company uses certain derivative financial instruments as part of its risk management strategy to reduce foreign currency risk. The Company recorded all derivatives on the condensed consolidated balance sheet at fair value based on quotes obtained from financial institutions as of September 30, 2015 . The Company maintains a Nonqualified Supplemental Executive Retirement Plan for highly compensated employees and invests assets to mirror the obligations under this Plan. The invested funds are maintained at a third party financial institution in the name of CSS and are invested in publicly traded mutual funds. The Company maintains separate accounts for each participant to reflect deferred contribution amounts and the related gains or losses on such deferred amounts. The investments are included in other current assets and the related liability is recorded as deferred compensation, of which $ 243,000 is included in other current liabilities and $ 266,000 is included in long-term obligations in the condensed consolidated balance sheets. The fair value of the investments is based on the market price of the mutual funds as of September 30, 2015 . The Company maintains two life insurance policies in connection with deferred compensation arrangements with two former executives. The cash surrender value of the policies is recorded in other long-term assets in the condensed consolidated balance sheets and is based on quotes obtained from the insurance company as of September 30, 2015 . To increase consistency and comparability in fair value measurements, the Financial Accounting Standards Board ("FASB") established a fair value hierarchy that prioritizes the inputs to valuation techniques into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s recurring assets and liabilities recorded on the condensed consolidated balance sheet are categorized based on the inputs to the valuation techniques as follows: Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Examples of Level 2 inputs include quoted prices for identical or similar assets or liabilities in non-active markets and pricing models whose inputs are observable for substantially the full term of the asset or liability. Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in its condensed consolidated balance sheet as of September 30, 2015 and March 31, 2015 (in thousands): Fair Value Measurements at September 30, 2015 Using September 30, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 509 $ 509 $ — $ — Foreign exchange contracts 97 — 97 — Cash surrender value of life insurance policies 1,129 — 1,129 — Total assets $ 1,735 $ 509 $ 1,226 $ — Liabilities Deferred compensation plans $ 509 $ 509 $ — $ — Total liabilities $ 509 $ 509 $ — $ — Fair Value Measurements at March 31, 2015 Using March 31, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 838 $ 838 $ — $ — Cash surrender value of life insurance policies 1,116 — 1,116 — Total assets $ 1,954 $ 838 $ 1,116 $ — Liabilities Deferred compensation plans $ 838 $ 838 $ — $ — Total liabilities $ 838 $ 838 $ — $ — Cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reflected at carrying value in the condensed consolidated balance sheets as such amounts are a reasonable estimate of their fair values due to the short-term nature of these instruments. Short-term investments include held-to-maturity securities that are recorded at amortized cost, which approximates fair value (Level 2), because their short-term maturity results in the interest rates on these securities approximating current market interest rates. Nonrecurring Fair Value Measurements The Company’s nonfinancial assets which are measured at fair value on a nonrecurring basis include property, plant and equipment, goodwill, intangible assets and certain other assets. These assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. In making the assessment of impairment, recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to future net cash flows estimated by the Company to be generated by such assets. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are recorded at the lower of their carrying value or estimated net realizable value. Goodwill and indefinite-lived intangibles are subject to impairment testing on an annual basis, or sooner if events or circumstances indicate a condition of impairment may exist. Impairment testing is conducted through valuation methods that are based on assumptions for matters such as interest and discount rates, growth projections and other future business conditions (Level 3). These valuation methods require a significant degree of management judgment concerning the use of internal and external data. In the event these methods indicate that fair value is less than the carrying value, the asset is recorded at fair value as determined by the valuation models. As of September 30, 2015 , the Company believes that no impairments exist. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early application is permitted for fiscal years after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation CSS Industries, Inc. (collectively with its subsidiaries, “CSS” or the “Company”) has prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . The results of operations for the interim periods are not necessarily indicative of the results for the full year. The Company’s fiscal year ends on March 31. References to a particular fiscal year refer to the fiscal year ending in March of that year. For example, “fiscal 2016 ” refers to the fiscal year ending March 31, 2016 . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. |
Nature of Business | Nature of Business CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal products include decorative ribbons and bows, journals, boxed greeting cards, classroom exchange Valentines, gift tags, gift bags, gift card holders, gift wrap, decorations, floral accessories, craft and educational products, Easter egg dyes and novelties, memory books, scrapbooks, stickers, infant and wedding photo albums, stationery, and other items that commemorate life’s celebrations. The seasonal nature of CSS’ business has historically resulted in lower sales levels and operating losses in the first and fourth quarters and comparatively higher sales levels and operating profits in the second and third quarters of the Company’s fiscal year, which ends March 31, thereby causing significant fluctuations in the quarterly results of operations of the Company. The Company's principal operating subsidiaries include Berwick Offray LLC ("Berwick Offray"), Paper Magic Group, Inc. ("Paper Magic") and C.R. Gibson, LLC ("C.R. Gibson"). |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform with the current year classification. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Translation adjustments are charged or credited to a separate component of stockholders’ equity. Gains and losses on foreign currency transactions are not material and are included in other expense (income), net in the consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 and the reported amounts of revenues and expenses during the reporting period. Judgments and assessments of uncertainties are required in applying the Company’s accounting policies in many areas. Such estimates pertain to revenue recognition, the valuation of inventory and accounts receivable, the assessment of the recoverability of goodwill and other intangible and long-lived assets, income tax accounting, the valuation of stock-based awards and resolution of litigation and other proceedings. Actual results could differ from these estimates. |
Short-Term Investments | Short-Term Investments The Company categorizes and accounts for its short-term investment holdings as held-to-maturity securities. Held-to-maturity securities are recorded at amortized cost which approximates fair value at September 30, 2015 , March 31, 2015 and September 30, 2014 . This categorization is based upon the Company's positive intent and ability to hold these securities until maturity. |
Inventories | Inventories The Company records inventory when title is transferred, which occurs upon receipt or prior to receipt dependent on supplier shipping terms. The Company adjusts unsaleable and slow-moving inventory to its estimated net realizable value. Substantially all of the Company’s inventories are stated at the lower of first-in, first-out (FIFO) cost or market. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost |
Long-Lived Assets including Goodwill and Other Intangible Assets | Long-Lived Assets including Goodwill and Other Intangible Assets The Company performs an annual impairment test of the carrying amount of goodwill and indefinite-lived intangible assets in the fourth quarter of its fiscal year. Additionally, the Company would perform its impairment testing at an interim date if events or circumstances indicate that goodwill or intangibles might be impaired. During the six months ended September 30, 2015 , there were no such events or circumstances. The Company uses a dual approach to determine the fair value of its reporting units, including both a market approach and an income approach. The Company believes the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. The first step of the test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. If the carrying amount of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the goodwill to the implied fair value of the goodwill. If the implied fair value of the goodwill is less than the carrying amount of the goodwill, an impairment loss would be reported. Other indefinite-lived intangible assets consist primarily of tradenames, which are also required to be tested annually for impairment. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. Long-lived assets (including property, plant and equipment), except for goodwill and indefinite-lived intangible assets, are reviewed for impairment when events or circumstances indicate the carrying value of an asset group may not be recoverable. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the impact of an uncertain tax position if it is more likely than not that such position will be sustained on audit, based solely on the technical merits of the position. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales when the goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. Provisions for returns, allowances, rebates to customers and other adjustments are provided in the same period that the related sales are recorded. |
Net Loss Per Common Share | Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share for the three- and six months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 11,229 $ 9,847 $ 8,161 $ 8,522 Denominator: Weighted average shares outstanding for basic net income per common share 9,148 9,323 9,245 9,316 Effect of dilutive stock options 89 74 100 77 Adjusted weighted average share outstanding for diluted net income per common share 9,237 9,397 9,345 9,393 Basic net income per common share $ 1.23 $ 1.06 $ 0.88 $ 0.91 Diluted net income per common share $ 1.22 $ 1.05 $ 0.87 $ 0.91 The Company has excluded 258,000 shares and 236,000 shares, consisting of outstanding stock options and unearned restricted stock units, in computing diluted net income per common share for the three- and six months ended September 30, 2015 and 2014 , respectively, because their effects were antidilutive. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. This guidance includes the required steps to achieve the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early application is permitted for fiscal years after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Raw material $ 11,376 $ 9,612 $ 9,117 Work-in-process 13,603 15,376 10,663 Finished goods 54,286 40,503 55,200 $ 79,265 $ 65,491 $ 74,980 |
Property, Plant and Equipment | Property, plant and equipment are stated at cost and include the following (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Land $ 2,508 $ 2,508 $ 2,508 Buildings, leasehold interests and improvements 33,754 35,664 35,398 Machinery, equipment and other 86,722 88,148 88,291 122,984 126,320 126,197 Less - Accumulated depreciation and amortization (97,215 ) (100,827 ) (100,343 ) Net property, plant and equipment $ 25,769 $ 25,493 $ 25,854 |
Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share for the three- and six months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income $ 11,229 $ 9,847 $ 8,161 $ 8,522 Denominator: Weighted average shares outstanding for basic net income per common share 9,148 9,323 9,245 9,316 Effect of dilutive stock options 89 74 100 77 Adjusted weighted average share outstanding for diluted net income per common share 9,237 9,397 9,345 9,393 Basic net income per common share $ 1.23 $ 1.06 $ 0.88 $ 0.91 Diluted net income per common share $ 1.22 $ 1.05 $ 0.87 $ 0.91 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of the estimated fair values of assets acquired | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisitions in fiscal 2015 (in thousands): Cash $ 2,778 Accounts receivable 1,545 Inventory 3,336 Other assets 38 Total current assets 7,697 Property, plant and equipment 543 Intangible assets 8,590 Goodwill 1,298 Total assets acquired 18,128 Current liabilities 204 Total liabilities assumed 204 Net assets acquired $ 17,924 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model | The fair value of each stock option and RSU granted under the above plans was estimated on the date of grant using either a Black-Scholes option pricing model (service-based awards) or a Monte Carlo simulation model (market-based awards) with the following average assumptions: Stock Options RSUs Six Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.96 % 1.44 % 1.29 % 1.17 % Volatility 36.90 % 50.10 % 36.86 % 38.72 % Dividend yield 2.59 % 2.38 % 2.60 % 2.38 % Expected life of option (in years) 4.75 4.75 |
Derivative Financial Instrume19
Derivative Financial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s condensed consolidated balance sheet (in thousands): Fair Value of Derivative Instruments Fair Value Balance Sheet Location September 30, 2015 September 30, 2014 Foreign currency forward contracts Other current assets $ 97 $ 42 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets is as follows (in thousands): September 30, 2015 March 31, 2015 September 30, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames and trademarks $ 12,953 $ — $ 12,953 $ — $ 12,953 $ — Customer relationships 29,957 12,183 29,957 11,031 23,357 10,155 Trademarks 403 318 403 303 403 288 Patents 1,164 650 1,164 592 1,164 534 Non-compete 530 86 530 33 160 11 $ 45,007 $ 13,237 $ 45,007 $ 11,959 $ 38,037 $ 10,988 |
Schedule of Future Amortization Expense | Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2016 and each of the succeeding four years is projected to be as follows (in thousands): Remainder of fiscal 2016 $ 1,277 Fiscal 2017 2,555 Fiscal 2018 2,555 Fiscal 2019 2,531 Fiscal 2020 2,486 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in its condensed consolidated balance sheet as of September 30, 2015 and March 31, 2015 (in thousands): Fair Value Measurements at September 30, 2015 Using September 30, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 509 $ 509 $ — $ — Foreign exchange contracts 97 — 97 — Cash surrender value of life insurance policies 1,129 — 1,129 — Total assets $ 1,735 $ 509 $ 1,226 $ — Liabilities Deferred compensation plans $ 509 $ 509 $ — $ — Total liabilities $ 509 $ 509 $ — $ — Fair Value Measurements at March 31, 2015 Using March 31, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 838 $ 838 $ — $ — Cash surrender value of life insurance policies 1,116 — 1,116 — Total assets $ 1,954 $ 838 $ 1,116 $ — Liabilities Deferred compensation plans $ 838 $ 838 $ — $ — Total liabilities $ 838 $ 838 $ — $ — |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Net Investment Income [Line Items] | |||||
Held-to-maturity short-term investments | $ 24,929 | $ 29,961 | $ 24,929 | $ 29,961 | $ 69,845 |
Depreciation expense | $ 1,419 | $ 1,543 | $ 2,824 | $ 3,037 | |
Effective antidilutive securities excluded from computation of net income per share (in shares) | 258 | 236 | 258 | 236 | |
Commercial Paper [Member] | |||||
Net Investment Income [Line Items] | |||||
Held-to-maturity short-term investments | $ 24,929 | $ 29,961 | $ 24,929 | $ 29,961 | $ 69,845 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Inventory Disclosure [Abstract] | |||
Raw material | $ 11,376 | $ 9,612 | $ 9,117 |
Work-in-process | 13,603 | 15,376 | 10,663 |
Finished goods | 54,286 | 40,503 | 55,200 |
Inventory, net | $ 79,265 | $ 65,491 | $ 74,980 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | $ 122,984 | $ 126,320 | $ 126,197 |
Less - Accumulated depreciation and amortization | (97,215) | (100,827) | (100,343) |
Net property, plant and equipment | 25,769 | 25,493 | 25,854 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | 2,508 | 2,508 | 2,508 |
Buildings, Leasehold Interests and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | 33,754 | 35,664 | 35,398 |
Machinery, Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | $ 86,722 | $ 88,148 | $ 88,291 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 11,229 | $ 9,847 | $ 8,161 | $ 8,522 |
Denominator: | ||||
Weighted average shares outstanding for basic net income per common share (in shares) | 9,148 | 9,323 | 9,245 | 9,316 |
Effect of dilutive stock options (in shares) | 89 | 74 | 100 | 77 |
Adjusted weighted average share outstanding for diluted net income per common share (in shares) | 9,237 | 9,397 | 9,345 | 9,393 |
Basic net income per common share (in dollars per share) | $ 1.23 | $ 1.06 | $ 0.88 | $ 0.91 |
Diluted net income per common share (in dollars per share) | $ 1.22 | $ 1.05 | $ 0.87 | $ 0.91 |
Business Acquisition - Additio
Business Acquisition - Additional Information (Details) - USD ($) | Feb. 19, 2015 | May. 19, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 0 | $ 5,142,000 | |||
Goodwill | $ 15,820,000 | $ 15,083,000 | $ 15,820,000 | ||
Hollywood Ribbon [Member] | Subsidiary [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 12,903,000 | ||||
Transaction costs | 121,000 | ||||
One time transaction costs incurred | $ 760,000 | ||||
Goodwill | $ 745,000 | ||||
Carson & Gebel [Member] | Subsidiary [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 5,173,000 | ||||
Transaction costs | 31,000 | ||||
Goodwill | $ 553,000 |
Business Acquisition - Fair Val
Business Acquisition - Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 15,820 | $ 15,820 | $ 15,083 |
Hollywood Ribbon Industries, Inc And Carson And Gebel Ribbon Co., LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 2,778 | ||
Accounts receivable | 1,545 | ||
Inventory | 3,336 | ||
Other assets | 38 | ||
Total current assets | 7,697 | ||
Property, plant and equipment | 543 | ||
Intangible assets | 8,590 | ||
Goodwill | 1,298 | ||
Total assets acquired | 18,128 | ||
Current liabilities | 204 | ||
Total liabilities assumed | 204 | ||
Net assets acquired | $ 17,924 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Aug. 11, 2015 | Jul. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Long-term obligations | $ 4,295,000 | $ 4,680,000 | $ 4,295,000 | $ 4,680,000 | $ 4,213,000 | ||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted during the period (in shares) | 134,100 | 110,975 | |||||
Weighted average fair value of stock options granted (in dollars per share) | $ 7.35 | $ 9.24 | |||||
Stock options outstanding (in shares) | 560,700 | 560,700 | |||||
Total unrecognized compensation cost related to non-vested stock option awards | $ 1,707,000 | $ 1,707,000 | |||||
Equity incentive plan, weighted average recognition period (in years) | 2 years 9 months 25 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted during the period (in shares) | 44,100 | 47,385 | |||||
Weighted average fair value of restricted stock granted (in dollars per share) | $ 18.46 | $ 17.82 | |||||
RSUs outstanding (in shares) | 188,025 | 188,025 | |||||
Equity incentive plan, weighted average recognition period (in years) | 2 years 5 months 5 days | ||||||
Total unrecognized compensation cost related to non-vested RSUs | $ 1,533,000 | $ 1,533,000 | |||||
Restricted Stock Units (RSUs) [Member] | Board of Directors Chairman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted during the period (in shares) | 10,000 | ||||||
Long-term obligations | 17,000 | $ 0 | 17,000 | $ 0 | |||
Dividend equivalent units paid | 2,000 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost related to stock options and RSUs recognized | $ 410,000 | $ 511,000 | $ 867,000 | $ 1,017,000 | |||
2013 Equity Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option plan | 2013 Plan | ||||||
Term of grant (in years) | 10 years | ||||||
Shares available for grant (in shares) | 798,500 | 798,500 | |||||
2013 Equity Compensation Plan [Member] | Service-Based Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate percentage | 25.00% | ||||||
Award service period (in years) | 1 year | ||||||
2011 Stock Option Plan for Non-Employee Directors [Member] | Non-Qualified Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option plan | 2011 Plan | ||||||
Term of grant (in years) | 5 years | ||||||
Vesting rate percentage | 25.00% | ||||||
Award service period (in years) | 1 year | ||||||
2011 Stock Option Plan for Non-Employee Directors [Member] | Common Stock [Member] | Non-Qualified Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 91,000 | 91,000 | |||||
Issue of common stock under ESOP (in shares) | 150,000 | 150,000 | |||||
Company's common stock granted to non-employee director (in shares) | 4,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model (Details) | 6 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.96% | 1.44% |
Volatility | 36.90% | 50.10% |
Dividend yield | 2.59% | 2.38% |
Expected life of option (in years) | 4 years 9 months | 4 years 9 months |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.29% | 1.17% |
Volatility | 36.86% | 38.72% |
Dividend yield | 2.60% | 2.38% |
Derivative Financial Instrume30
Derivative Financial Instruments - Additional Information (Details) - Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Realized gain from foreign currency forward contracts | $ 9 | $ 15 | $ 9 | $ 14 |
Notional amount of derivative contracts | $ 1,656 | $ 2,097 | 1,656 | 2,097 |
Foreign currency forward contracts, unrealized gain | $ 97 | $ 42 |
Derivative Financial Instrume31
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 97 | $ 42 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 639 | $ 456 | $ 1,278 | $ 880 |
Intangible Assets - Gross Carry
Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 45,007 | $ 45,007 | $ 38,037 |
Accumulated Amortization | 13,237 | 11,959 | 10,988 |
Tradenames and Trademarks [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 12,953 | 12,953 | 12,953 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 29,957 | 29,957 | 23,357 |
Accumulated Amortization | 12,183 | 11,031 | 10,155 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 403 | 403 | 403 |
Accumulated Amortization | 318 | 303 | 288 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,164 | 1,164 | 1,164 |
Accumulated Amortization | 650 | 592 | 534 |
Non-compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 530 | 530 | 160 |
Accumulated Amortization | $ 86 | $ 33 | $ 11 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2016 | $ 1,277 |
Fiscal 2,017 | 2,555 |
Fiscal 2,018 | 2,555 |
Fiscal 2,019 | 2,531 |
Fiscal 2,020 | $ 2,486 |
Treasury Stock Transactions (De
Treasury Stock Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | May. 19, 2015 | |
Equity [Abstract] | |||
Number of additional shares authorized to be repurchased (in shares) | 500,000 | ||
Number of shares repurchased of the Company's common stock (in shares) | 352,789 | 0 | |
Value of shares repurchased of the Company's common stock | $ 10 | ||
Remaining shares available for repurchase under the Board's authorization (in shares) | 348,166 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | Sep. 30, 2015USD ($)executiveInsurancePolicy |
Recurring Fair Value Measurements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of life insurance policies | InsurancePolicy | 2 |
Number of former executives | executive | 2 |
Accrued Other Expenses [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Deferred compensation liability | $ 243 |
Other Noncurrent Liabilities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Deferred compensation liability | $ 266 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Fair Value Measurements [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Assets | ||
Total assets | $ 1,735 | $ 1,954 |
Liabilities | ||
Total liabilities | 509 | 838 |
Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 509 | 838 |
Marketable Securities [Member] | ||
Assets | ||
Total assets | 509 | 838 |
Foreign Exchange Contracts [Member] | ||
Assets | ||
Total assets | 97 | |
Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Total assets | 1,129 | 1,116 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Total assets | 509 | 838 |
Liabilities | ||
Total liabilities | 509 | 838 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 509 | 838 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Marketable Securities [Member] | ||
Assets | ||
Total assets | 509 | 838 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Foreign Exchange Contracts [Member] | ||
Assets | ||
Total assets | 0 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Total assets | 1,226 | 1,116 |
Liabilities | ||
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Marketable Securities [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contracts [Member] | ||
Assets | ||
Total assets | 97 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Total assets | 1,129 | 1,116 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Marketable Securities [Member] | ||
Assets | ||
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Exchange Contracts [Member] | ||
Assets | ||
Total assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Total assets | $ 0 | $ 0 |