Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CSS | |
Entity Registrant Name | CSS INDUSTRIES INC | |
Entity Central Index Key | 20629 | |
Current Fiscal Year End Date | -28 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,278,943 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement [Abstract] | ||||||||
Sales | $112,487 | $133,485 | $159,604 | $194,552 | ||||
Costs and expenses | ||||||||
Cost of sales | 75,760 | 92,654 | 108,418 | 136,523 | ||||
Selling, general and administrative expenses | 20,675 | 22,854 | 37,679 | 41,424 | ||||
Disposition of product line, net | 0 | 5,798 | 0 | 5,798 | ||||
Interest expense (income), net | 50 | -14 | 70 | -67 | ||||
Other income, net | -38 | -66 | -32 | -52 | ||||
Total costs and expenses | 96,447 | 121,226 | 146,135 | 183,626 | ||||
Income from continuing operations before income taxes | 16,040 | 12,259 | 13,469 | 10,926 | ||||
Income tax expense | 5,194 | 5,419 | 4,290 | 4,953 | ||||
Income from continuing operations | 10,846 | 6,840 | 9,179 | 5,973 | ||||
Income from discontinued operations, net of tax | 112 | 81 | 112 | 44 | ||||
Net income | $10,958 | $6,921 | $9,291 | $6,017 | ||||
Basic: | ||||||||
Continuing operations | $1.15 | $0.71 | $0.97 | $0.62 | ||||
Discontinued operations | $0.01 | $0.01 | $0.01 | $0 | ||||
Total | $1.16 | [1] | $0.72 | [1] | $0.98 | [1] | $0.63 | [1] |
Diluted: | ||||||||
Continuing operations | $1.14 | $0.71 | $0.96 | $0.62 | ||||
Discontinued operations | $0.01 | $0.01 | $0.01 | $0 | ||||
Total | $1.16 | [1] | $0.72 | [1] | $0.98 | [1] | $0.63 | [1] |
Weighted average basic and diluted shares outstanding | ||||||||
Basic | 9,458 | 9,592 | 9,482 | 9,617 | ||||
Diluted | 9,486 | 9,621 | 9,527 | 9,620 | ||||
Cash dividends per share of common stock | $0.15 | $0.15 | $0.30 | $0.30 | ||||
[1] | Total net income per common share may not foot due to rounding. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Current assets | |||
Cash and cash equivalents | $37,094 | $87,108 | $9,843 |
Accounts receivable, net of allowances of $2,205, $2,009 and $2,258 | 100,925 | 43,133 | 123,336 |
Inventories | 74,508 | 62,598 | 85,177 |
Deferred income taxes | 3,863 | 4,520 | 3,810 |
Other current assets | 14,076 | 13,073 | 14,297 |
Current assets of discontinued operations | 0 | 2 | 126 |
Total current assets | 230,466 | 210,434 | 236,589 |
Property, plant and equipment, net | 27,957 | 27,956 | 28,281 |
Deferred income taxes | 3,915 | 3,974 | 219 |
Other assets | |||
Goodwill | 14,522 | 14,522 | 14,522 |
Intangible assets, net | 27,177 | 28,004 | 28,860 |
Other | 4,143 | 4,290 | 6,636 |
Total other assets | 45,842 | 46,816 | 50,018 |
Total assets | 308,180 | 289,180 | 315,107 |
Current liabilities | |||
Accrued customer programs | 6,862 | 4,015 | 7,620 |
Other current liabilities | 45,245 | 30,718 | 57,378 |
Current liabilities of discontinued operations | 389 | 644 | 724 |
Total current liabilities | 52,496 | 35,377 | 65,722 |
Long-term obligations | 4,767 | 4,825 | 5,138 |
Stockholders' equity | 250,917 | 248,978 | 244,247 |
Total liabilities and stockholders' equity | $308,180 | $289,180 | $315,107 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Statement Of Financial Position [Abstract] | |||
Allowances for accounts receivable | $2,205 | $2,009 | $2,258 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $9,291 | $6,017 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Depreciation and amortization | 3,873 | 3,879 |
Provision for accounts receivable allowances | 1,898 | 2,045 |
Deferred tax provision | 691 | 457 |
Stock-based compensation expense | 1,008 | 914 |
(Gain) loss on sale or disposal of assets | -8 | 156 |
Reduction of goodwill | 0 | 2,711 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | -59,690 | -80,454 |
Increase in inventory | -11,910 | -14,472 |
(Increase) decrease in other assets | -856 | 225 |
Increase in other accrued liabilities | 17,149 | 29,581 |
Total adjustments | -47,845 | -54,958 |
Net cash used for operating activities - continuing operations | -38,554 | -48,941 |
Net cash used for operating activities - discontinued operations | -253 | -1,609 |
Net cash used for operating activities | -38,807 | -50,550 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | -3,047 | -1,921 |
Proceeds from disposition of product line, net | 0 | 1,758 |
Proceeds from sale of fixed assets | 8 | 16 |
Net cash used for investing activities - continuing operations | -3,039 | -147 |
Cash flows from financing activities: | ||
Dividends paid | -2,849 | -2,878 |
Purchase of treasury stock | -5,065 | -2,650 |
Exercise of stock options | -83 | 192 |
Payments for tax withholding on net restricted stock settlements | -537 | -253 |
Tax effect on stock awards | 366 | -6 |
Net cash used for financing activities - continuing operations | -8,168 | -5,595 |
Net decrease in cash and cash equivalents | -50,014 | -56,292 |
Cash and cash equivalents at beginning of period | 87,108 | 66,135 |
Cash and cash equivalents at end of period | $37,094 | $9,843 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | -1 | 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, 2013. The results of operations for the interim periods are not necessarily indicative of the results for the full year. | |||||||||||||||||
On September 9, 2011, the Company and its Cleo Inc (“Cleo”) subsidiary sold the Christmas gift wrap portion of Cleo’s business and certain assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets to Impact Innovations, Inc. (“Impact”). Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. The assets, liabilities and cash flows related to the Christmas gift wrap business are presented as current assets and liabilities of discontinued operations. The results of operations for the three- and six months ended September 30, 2013 and 2012, as well as the accompanying notes, reflect the historical operations of Cleo’s Christmas gift wrap business as discontinued operations. The discussions in this quarterly report are presented on the basis of continuing operations, unless otherwise noted. | |||||||||||||||||
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 2014” refers to the fiscal year ending March 31, 2014. | |||||||||||||||||
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, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other gift 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. | |||||||||||||||||
On September 5, 2012, the Company and its Paper Magic Group, Inc. (“Paper Magic”) subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with Paper Magic’s Halloween business, to Gemmy Industries (HK) Limited (“Gemmy”). Paper Magic’s remaining Halloween assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The sale price of $2,281,000 was paid to Paper Magic at closing. The Company incurred $523,000 of transaction costs (included within disposition of product line further discussed in Note 4 to the consolidated financial statements), yielding net proceeds of $1,758,000. The Company is liquidating the remaining assets and satisfying the liabilities throughout fiscal 2014. | |||||||||||||||||
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 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. | |||||||||||||||||
Impairment of Long-Lived Assets including Goodwill and Other Intangible Assets | |||||||||||||||||
The Financial Accounting Standards Board (“FASB”) issued updated authoritative guidance in September 2011 to amend previous guidance on the annual and interim testing of goodwill for impairment. The guidance became effective for the Company at the beginning of its 2013 fiscal year. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two step impairment test would still be required. 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. The Company uses a dual approach to determine the fair value of its reporting units including both a market approach and an income approach. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. 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. Annual impairment tests are performed by the Company in the fourth quarter of each year. The adoption of this updated authoritative guidance had no impact on the Company’s Consolidated Financial Statements. See Note 7 for further information on goodwill and other intangible assets. | |||||||||||||||||
Other indefinite lived intangible assets consist primarily of tradenames which are also required to be tested annually. 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 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. | |||||||||||||||||
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, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Raw material | $ | 9,035 | $ | 8,116 | $ | 10,162 | |||||||||||
Work-in-process | 11,423 | 14,687 | 11,047 | ||||||||||||||
Finished goods | 54,050 | 39,795 | 63,968 | ||||||||||||||
$ | 74,508 | $ | 62,598 | $ | 85,177 | ||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant and equipment are stated at cost and include the following (in thousands): | |||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Land | $ | 2,508 | $ | 2,508 | $ | 2,508 | |||||||||||
Buildings, leasehold interests and improvements | 36,857 | 37,007 | 36,902 | ||||||||||||||
Machinery, equipment and other | 101,047 | 101,916 | 100,206 | ||||||||||||||
140,412 | 141,431 | 139,616 | |||||||||||||||
Less - Accumulated depreciation and amortization | (112,455 | ) | (113,475 | ) | (111,335 | ) | |||||||||||
Net property, plant and equipment | $ | 27,957 | $ | 27,956 | $ | 28,281 | |||||||||||
Depreciation expense was $1,555,000 and $1,492,000 for the quarters ended September 30, 2013 and 2012, respectively, and was $3,046,000 and $3,050,000 for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
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, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations | $ | 10,846 | $ | 6,840 | $ | 9,179 | $ | 5,973 | |||||||||
Gain from discontinued operations, net of tax | 112 | 81 | 112 | 44 | |||||||||||||
Net income | $ | 10,958 | $ | 6,921 | $ | 9,291 | $ | 6,017 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares outstanding for basic income per common share | 9,458 | 9,592 | 9,482 | 9,617 | |||||||||||||
Effect of dilutive stock options | 28 | 29 | 45 | 3 | |||||||||||||
Adjusted weighted average share outstanding for diluted income per common share | 9,486 | 9,621 | 9,527 | 9,620 | |||||||||||||
Basic: | |||||||||||||||||
Continuing operations | $ | 1.15 | $ | 0.71 | $ | 0.97 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
Diluted: | |||||||||||||||||
Continuing operations | $ | 1.14 | $ | 0.71 | $ | 0.96 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
-1 | Total net income per share for certain periods does not foot due to rounding. | ||||||||||||||||
Stock options on 150,000 shares of common stock were not included in computing diluted net income per common share for the three- and six months ended September 30, 2013, respectively, because their effects were antidilutive. Options on 264,000 shares of common stock were not included in computing diluted net income per common share for the three- and six months ended September 30, 2012, respectively, because their effects were antidilutive. |
Discontinued_Operations
Discontinued Operations | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Discontinued Operations | -2 | DISCONTINUED OPERATIONS | |||||||||||||||
On September 9, 2011, the Company sold the Cleo Christmas gift wrap business and certain of its assets to Impact. Impact acquired the Christmas gift wrap portion of Cleo’s business and certain of its assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets. Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Cleo retained the right and obligation to fulfill all customer orders for Cleo Christmas gift wrap products for Christmas 2011. The purchase price was $7,500,000, of which $2,000,000 was paid in cash at closing. The remainder of the purchase price was paid through the issuance by Impact of an unsecured subordinated promissory note, which provides for quarterly payments of interest at 7% and principal payments as follows: $500,000 on March 1, 2012; $2,500,000 on March 1, 2013; and all remaining principal and interest on March 1, 2014. All interest and principal payments due through September 30, 2013 were paid timely. Additionally, in the fourth quarter of fiscal 2013, the Company received a $2,000,000 principal payment in advance of the March 1, 2014 due date. As of September 30, 2013, the note balance of $500,000 was recorded in other current assets in the accompanying condensed consolidated balance sheet. | |||||||||||||||||
As a result of the sale of its Christmas gift wrap business, the Company has reported these operations as discontinued operations, as shown in the following table (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Operating income (loss) | $ | 172 | $ | 56 | $ | 172 | $ | (30 | ) | ||||||||
Reversal of reserves | 0 | 63 | 0 | 92 | |||||||||||||
Discontinued operations, before income taxes | 172 | 119 | 172 | 62 | |||||||||||||
Income tax expense | 60 | 38 | 60 | 18 | |||||||||||||
Discontinued operations, net of tax | $ | 112 | $ | 81 | $ | 112 | $ | 44 | |||||||||
The following table presents the carrying values of the major accounts of discontinued operations that are included in the condensed consolidated balance sheet (in thousands): | |||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Accounts receivable, net | $ | 0 | $ | 2 | $ | 0 | |||||||||||
Inventories | 0 | 0 | 126 | ||||||||||||||
Total current assets | $ | 0 | $ | 2 | $ | 126 | |||||||||||
Total assets attributable to discontinued operations | $ | 0 | $ | 2 | $ | 126 | |||||||||||
Customer programs | $ | 73 | $ | 162 | $ | 254 | |||||||||||
Restructuring reserve | 0 | 0 | 126 | ||||||||||||||
Other current liabilities | 316 | 482 | 344 | ||||||||||||||
Total current liabilities | $ | 389 | $ | 644 | $ | 724 | |||||||||||
Total liabilities associated with discontinued operations | $ | 389 | $ | 644 | $ | 724 | |||||||||||
Business_Restructuring
Business Restructuring | 6 Months Ended | |
Sep. 30, 2013 | ||
Restructuring And Related Activities [Abstract] | ||
Business Restructuring | -3 | BUSINESS RESTRUCTURING |
On March 27, 2012, the Company combined the operations of its Berwick Offray and Paper Magic subsidiaries in order to drive sales growth by providing stronger management oversight and by reallocating sales and marketing resources in a more strategic manner. Involuntary termination benefits were offered to terminated employees under the Company’s pre-existing severance program. The Company recorded approximately $706,000 in employee severance charges during fiscal 2012 and made payments of $523,000 and $116,000 in the fiscal years ended March 31, 2013 and 2012, respectively. The final restructuring payment of $13,000 was paid in April 2013. During the fiscal year ended March 31, 2013, there was a reduction in the restructuring accrual of $54,000 related to severance costs that were less than originally estimated as certain employees under the plan did not receive the expected amount of severance. The charges associated with this restructuring plan are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Disposition_of_Product_Line
Disposition of Product Line | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||||||
Disposition of Product Line | -4 | DISPOSITION OF PRODUCT LINE | |||||||||||||||
On September 5, 2012, the Company and its Paper Magic subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with the Halloween portion of Paper Magic’s business, to Gemmy. Paper Magic’s remaining Halloween assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The inventory remaining after the Halloween 2012 season has been reduced to its estimated net realizable value. The sale price of $2,281,000 was paid to Paper Magic at closing. In connection with the sale, the Company recorded charges of $5,368,000 during the second quarter of fiscal 2013, consisting of severance of 49 employees of $1,282,000, facility closure costs of $1,375,000, professional fees and other costs of $1,341,000 ($523,000 were costs of the transaction) and a non-cash write-down of assets of $1,370,000. Additionally, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit. There was also a non-cash charge of $1,266,000 related to the write-down of inventory to net realizable value which was recorded in cost of sales. | |||||||||||||||||
During the year ended March 31, 2013, the Company made payments related to the restructuring of $1,901,000. Additionally, the Company reduced the restructuring reserve by $210,000 during fiscal 2013, primarily due to sub-lease income that was greater than originally estimated. During the three- and six months ended September 30, 2013, the Company made payments of $358,000 and $937,000, respectively, primarily related to facility costs and severance. During the six months ended September 30, 2013, there was a reduction in the restructuring accrual of $396,000 related to costs that were less than originally estimated. As of September 30, 2013, $456,000 of the remaining liability was classified in other current liabilities and $98,000 was classified in long-term obligations in the accompanying condensed consolidated balance sheet and will be paid through December 2015. The Company is liquidating the remaining assets and satisfying the liabilities through December 2015. | |||||||||||||||||
Selected information relating to the aforementioned restructuring follows (in thousands): | |||||||||||||||||
Employee | Facility | Professional | Total | ||||||||||||||
Termination | Costs | Fees and | |||||||||||||||
Costs | Other Costs | ||||||||||||||||
Restructuring reserve as of March 31, 2013 | $ | 589 | $ | 815 | $ | 483 | $ | 1,887 | |||||||||
Cash paid, net of sublease income | (418 | ) | (480 | ) | (39 | ) | (937 | ) | |||||||||
Non-cash adjustments | (63 | ) | (91 | ) | (242 | ) | (396 | ) | |||||||||
Restructuring reserve as of September 30, 2013 | $ | 108 | $ | 244 | $ | 202 | $ | 554 | |||||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | -5 | 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 (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. At September 30, 2013, there were 1,100,000 shares available for grant. There are no awards outstanding under the 2013 Plan. | |||||||||||||||||
2004 Equity Compensation Plan | |||||||||||||||||
Under the terms of the Company’s 2004 Equity Compensation Plan (“2004 Plan”), which expired on July 30, 2013 upon approval of the 2013 Plan, the Human Resources Committee could grant incentive stock options, non-qualified stock options, restricted stock grants, stock appreciation rights, stock bonuses and other awards to officers and other employees. Service-based options outstanding as of September 30, 2013 become exercisable at the rate of 25% per year commencing one year after the date of grant. Market-based stock options outstanding as of such date 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. Market-based restricted stock units (“RSUs”) outstanding at September 30, 2013 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. Subject to limited exceptions, service-based RSUs outstanding as of September 30, 2013 vest at the rate of 50% of the shares underlying the grant on each of the third and fourth anniversaries of the grant date. Given that the 2004 Plan is now expired, no further grants may be made under such plan. | |||||||||||||||||
The fair value of each market-based stock option and each market-based RSU granted under the above plan was estimated on the date of grant using a Monte Carlo simulation model with the following average assumptions: | |||||||||||||||||
Stock Options | RSUs | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 0.84 | % | 0.72 | % | 0.66 | % | 0.58 | % | |||||||||
Volatility | 52.27 | % | 54.75 | % | 40.47 | % | 57.9 | % | |||||||||
Dividend yield | 2.04 | % | 3.15 | % | 2.04 | % | 3.15 | % | |||||||||
The weighted average fair value of stock options granted during the six months ended September 30, 2013 and 2012 was $11.06 and $7.27, respectively. The weighted average fair value of restricted stock units granted during the six months ended September 30, 2013 and 2012 was $20.51 and $14.78, respectively. | |||||||||||||||||
2011 Stock Option Plan for Non-Employee Directors | |||||||||||||||||
Under the terms of the Company’s 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, 2013, 121,000 shares were available for grant under the 2011 Plan. | |||||||||||||||||
As of September 30, 2013, there was $1,630,000 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 2.0 years. As of September 30, 2013, there was $1,766,000 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 2.3 years. | |||||||||||||||||
Compensation cost related to stock options and RSUs recognized in operating results (included in selling, general and administrative expenses) was $516,000 and $504,000 in the quarters ended September 30, 2013 and 2012, respectively, and $1,008,000 and $914,000 in the six months ended September 30, 2013 and 2012, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||
Derivative Financial Instruments | -6 | 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 income, net as offsets of gains and losses resulting from the underlying hedged transactions. A realized loss of $16,000 and $9,000 was recorded in the three- and six months ended September 30, 2013, respectively. A realized loss of $6,000 was recorded in the three- and six months ended September 30, 2012. As of September 30, 2013 and 2012, the notional amount of open foreign currency forward contracts was $3,192,000 and $5,131,000, respectively. The related unrealized loss was $13,000 and $91,000 at September 30, 2013 and 2012, respectively. We believe we do not have significant counterparty credit risks as of September 30, 2013. | |||||||||||||||
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, | March 31, | September 30, | ||||||||||||
2013 | 2013 | 2012 | |||||||||||||
Foreign currency forward contracts | Other current liabilities | $ | 13 | $ | 17 | $ | 91 |
Goodwill_and_Intangibles
Goodwill and Intangibles | 6 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangibles | -7 | GOODWILL AND INTANGIBLES | |||||||||||||||||||||||
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. In connection with the sale of the Halloween portion of Paper Magic’s business on September 5, 2012, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit in the second quarter of fiscal 2013. As the sale of the Halloween portion of Paper Magic’s business was a triggering event, the Company performed an interim impairment test on the goodwill remaining in the Paper Magic reporting unit after the reduction in goodwill associated with the sale of the Halloween portion of Paper Magic’s business was recorded. The Company determined that no impairment existed for the remainder of the goodwill of the Paper Magic reporting unit. | |||||||||||||||||||||||||
The gross carrying amount and accumulated amortization of other intangible assets is as follows (in thousands): | |||||||||||||||||||||||||
September 30, 2013 | March 31, 2013 | September 30, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||
Tradenames and trademarks | $ | 12,793 | $ | 0 | $ | 12,793 | $ | 0 | $ | 12,793 | $ | 0 | |||||||||||||
Customer relationships | 22,057 | 8,609 | 22,057 | 7,859 | 22,057 | 7,109 | |||||||||||||||||||
Non-compete | 0 | 0 | 0 | 0 | 200 | 200 | |||||||||||||||||||
Trademarks | 403 | 258 | 403 | 243 | 403 | 228 | |||||||||||||||||||
Patents | 1,262 | 471 | 1,262 | 409 | 1,301 | 357 | |||||||||||||||||||
$ | 36,515 | $ | 9,338 | $ | 36,515 | $ | 8,511 | $ | 36,754 | $ | 7,894 | ||||||||||||||
Amortization expense related to intangible assets was $413,000 and $415,000 for the quarters ended September 30, 2013 and 2012, respectively, and was $827,000 and $829,000 for the six months ended September 30, 2013 and 2012, respectively. Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2014 and each of the succeeding four years is projected to be as follows (in thousands): | |||||||||||||||||||||||||
Remainder of fiscal 2014 | $ | 827 | |||||||||||||||||||||||
Fiscal 2015 | 1,635 | ||||||||||||||||||||||||
Fiscal 2016 | 1,634 | ||||||||||||||||||||||||
Fiscal 2017 | 1,634 | ||||||||||||||||||||||||
Fiscal 2018 | 1,634 |
Treasury_Stock_Transactions
Treasury Stock Transactions | 6 Months Ended | |
Sep. 30, 2013 | ||
Equity [Abstract] | ||
Treasury Stock Transactions | -8 | TREASURY STOCK TRANSACTIONS |
Under a stock repurchase program authorized by the Company’s Board, the Company repurchased 214,569 shares of the Company’s common stock for $5,231,000 during the six months ended September 30, 2013. As payment for stock repurchases occurs upon settlement three business days after the trade transaction, $166,000 of this amount was paid by the Company subsequent to September 30, 2013. The Company repurchased 140,183 shares of the Company’s common stock for $2,650,000 during the six months ended September 30, 2012. On July 31, 2012, the Company announced that its Board had authorized the repurchase of up to an additional 500,000 shares of the Company’s common stock. As of September 30, 2013, the Company had 259,041 shares remaining available for repurchase under the Board’s authorization. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Sep. 30, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | -9 | 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, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | -10 | 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, 2013. | |||||||||||||||||
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 and included in other 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, 2013. | |||||||||||||||||
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, 2013. | |||||||||||||||||
To increase consistency and comparability in fair value measurements, the 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, 2013 and March 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||
September 30, | Quoted Prices In | Significant Other | Significant | ||||||||||||||
2013 | Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | 718 | $ | 718 | $ | 0 | $ | 0 | |||||||||
Cash surrender value of life insurance policies | 1,054 | 0 | 1,054 | 0 | |||||||||||||
Total assets | $ | 1,772 | $ | 718 | $ | 1,054 | $ | 0 | |||||||||
Liabilities | |||||||||||||||||
Deferred compensation plans | $ | 718 | $ | 718 | $ | 0 | $ | 0 | |||||||||
Foreign exchange contracts | 13 | 0 | 13 | 0 | |||||||||||||
Total liabilities | $ | 731 | $ | 718 | $ | 13 | $ | 0 | |||||||||
Fair Value Measurements at March 31, 2013 Using | |||||||||||||||||
March 31, | Quoted Prices In | Significant Other | Significant | ||||||||||||||
2013 | Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | 678 | $ | 678 | $ | 0 | $ | 0 | |||||||||
Cash surrender value of life insurance policies | 1,040 | 0 | 1,040 | 0 | |||||||||||||
Total assets | $ | 1,718 | $ | 678 | $ | 1,040 | $ | 0 | |||||||||
Liabilities | |||||||||||||||||
Deferred compensation plans | $ | 678 | $ | 678 | $ | 0 | $ | 0 | |||||||||
Foreign exchange contract | 17 | 0 | $ | 17 | $ | 0 | |||||||||||
Total liabilities | $ | 695 | $ | 678 | $ | 17 | $ | 0 | |||||||||
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. | |||||||||||||||||
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 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 circumstances indicate a condition of impairment may exist. The valuations use assumptions such as interest and discount rates, growth projections and other assumptions of future business conditions. 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. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy described above. As of September 30, 2013, there were no indications or circumstances indicating that an impairment might exist. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended | |
Sep. 30, 2013 | ||
Accounting Changes And Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | -11 | RECENT ACCOUNTING PRONOUNCEMENTS |
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If this is the case, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. ASU 2012-02 is effective for annual and interim impairment tests performed by the Company for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact on the Company’s future indefinite-lived intangibles impairment tests. | ||
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). This update is intended to improve the comparability of statements of financial position prepared in accordance with U.S. GAAP and International Financial Reporting Standards, requiring both gross and net presentation of offsetting assets and liabilities. The new requirements are effective for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As this guidance only affects disclosures, the adoption of this standard did not have an impact on the Company’s financial condition, results of operations and cash flows. | ||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This update requires disclosure, either on the face of the statement where income is presented or in the notes to the financial statements, of significant amounts reclassified out of accumulated other comprehensive income in their entirety. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. ASU 2013-02 is effective for annual and interim periods beginning after December 15, 2012. As this update only requires enhanced disclosure, the adoption of ASU 2013-02 did not impact the Company’s financial condition, results of operations and cash flows. | ||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2013-11”), which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. It is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on the Company’s financial condition, results of operations and cash flows. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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, 2013. The results of operations for the interim periods are not necessarily indicative of the results for the full year. | |||||||||||||||||
On September 9, 2011, the Company and its Cleo Inc (“Cleo”) subsidiary sold the Christmas gift wrap portion of Cleo’s business and certain assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets to Impact Innovations, Inc. (“Impact”). Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. The assets, liabilities and cash flows related to the Christmas gift wrap business are presented as current assets and liabilities of discontinued operations. The results of operations for the three- and six months ended September 30, 2013 and 2012, as well as the accompanying notes, reflect the historical operations of Cleo’s Christmas gift wrap business as discontinued operations. The discussions in this quarterly report are presented on the basis of continuing operations, unless otherwise noted. | |||||||||||||||||
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 2014” refers to the fiscal year ending March 31, 2014. | |||||||||||||||||
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, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other gift 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. | |||||||||||||||||
On September 5, 2012, the Company and its Paper Magic Group, Inc. (“Paper Magic”) subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with Paper Magic’s Halloween business, to Gemmy Industries (HK) Limited (“Gemmy”). Paper Magic’s remaining Halloween assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The sale price of $2,281,000 was paid to Paper Magic at closing. The Company incurred $523,000 of transaction costs (included within disposition of product line further discussed in Note 4 to the consolidated financial statements), yielding net proceeds of $1,758,000. The Company is liquidating the remaining assets and satisfying the liabilities throughout fiscal 2014. | |||||||||||||||||
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 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. | |||||||||||||||||
Impairment of Long-Lived Assets including Goodwill and Other Intangible Assets | Impairment of Long-Lived Assets including Goodwill and Other Intangible Assets | ||||||||||||||||
The Financial Accounting Standards Board (“FASB”) issued updated authoritative guidance in September 2011 to amend previous guidance on the annual and interim testing of goodwill for impairment. The guidance became effective for the Company at the beginning of its 2013 fiscal year. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two step impairment test would still be required. 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. The Company uses a dual approach to determine the fair value of its reporting units including both a market approach and an income approach. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. 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. Annual impairment tests are performed by the Company in the fourth quarter of each year. The adoption of this updated authoritative guidance had no impact on the Company’s Consolidated Financial Statements. See Note 7 for further information on goodwill and other intangible assets. | |||||||||||||||||
Other indefinite lived intangible assets consist primarily of tradenames which are also required to be tested annually. 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 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. | |||||||||||||||||
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. Inventories consisted of the following (in thousands): | |||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Raw material | $ | 9,035 | $ | 8,116 | $ | 10,162 | |||||||||||
Work-in-process | 11,423 | 14,687 | 11,047 | ||||||||||||||
Finished goods | 54,050 | 39,795 | 63,968 | ||||||||||||||
$ | 74,508 | $ | 62,598 | $ | 85,177 | ||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||||||
Property, plant and equipment are stated at cost and include the following (in thousands): | |||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Land | $ | 2,508 | $ | 2,508 | $ | 2,508 | |||||||||||
Buildings, leasehold interests and improvements | 36,857 | 37,007 | 36,902 | ||||||||||||||
Machinery, equipment and other | 101,047 | 101,916 | 100,206 | ||||||||||||||
140,412 | 141,431 | 139,616 | |||||||||||||||
Less - Accumulated depreciation and amortization | (112,455 | ) | (113,475 | ) | (111,335 | ) | |||||||||||
Net property, plant and equipment | $ | 27,957 | $ | 27,956 | $ | 28,281 | |||||||||||
Depreciation expense was $1,555,000 and $1,492,000 for the quarters ended September 30, 2013 and 2012, respectively, and was $3,046,000 and $3,050,000 for the six months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
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 Income 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, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations | $ | 10,846 | $ | 6,840 | $ | 9,179 | $ | 5,973 | |||||||||
Gain from discontinued operations, net of tax | 112 | 81 | 112 | 44 | |||||||||||||
Net income | $ | 10,958 | $ | 6,921 | $ | 9,291 | $ | 6,017 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares outstanding for basic income per common share | 9,458 | 9,592 | 9,482 | 9,617 | |||||||||||||
Effect of dilutive stock options | 28 | 29 | 45 | 3 | |||||||||||||
Adjusted weighted average share outstanding for diluted income per common share | 9,486 | 9,621 | 9,527 | 9,620 | |||||||||||||
Basic: | |||||||||||||||||
Continuing operations | $ | 1.15 | $ | 0.71 | $ | 0.97 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
Diluted: | |||||||||||||||||
Continuing operations | $ | 1.14 | $ | 0.71 | $ | 0.96 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
-1 | Total net income per share for certain periods does not foot due to rounding. | ||||||||||||||||
Options on 150,000 shares of common stock were not included in computing diluted net income per common share for the three- and six months ended September 30, 2013, respectively, because their effects were antidilutive. Options on 264,000 shares of common stock were not included in computing diluted net income per common share for the three- and six months ended September 30, 2012, respectively, because their effects were antidilutive. | |||||||||||||||||
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS | ||||||||||||||||
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If this is the case, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. ASU 2012-02 is effective for annual and interim impairment tests performed by the Company for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact on the Company’s future indefinite-lived intangibles impairment tests. | |||||||||||||||||
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). This update is intended to improve the comparability of statements of financial position prepared in accordance with U.S. GAAP and International Financial Reporting Standards, requiring both gross and net presentation of offsetting assets and liabilities. The new requirements are effective for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As this guidance only affects disclosures, the adoption of this standard did not have an impact on the Company’s financial condition, results of operations and cash flows. | |||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This update requires disclosure, either on the face of the statement where income is presented or in the notes to the financial statements, of significant amounts reclassified out of accumulated other comprehensive income in their entirety. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. ASU 2013-02 is effective for annual and interim periods beginning after December 15, 2012. As this update only requires enhanced disclosure, the adoption of ASU 2013-02 did not impact the Company’s financial condition, results of operations and cash flows. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2013-11”), which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. It is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on the Company’s financial condition, results of operations and cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Inventories | Inventories consisted of the following (in thousands): | ||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Raw material | $ | 9,035 | $ | 8,116 | $ | 10,162 | |||||||||||
Work-in-process | 11,423 | 14,687 | 11,047 | ||||||||||||||
Finished goods | 54,050 | 39,795 | 63,968 | ||||||||||||||
$ | 74,508 | $ | 62,598 | $ | 85,177 | ||||||||||||
Property, Plant and Equipment | Property, plant and equipment are stated at cost and include the following (in thousands): | ||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Land | $ | 2,508 | $ | 2,508 | $ | 2,508 | |||||||||||
Buildings, leasehold interests and improvements | 36,857 | 37,007 | 36,902 | ||||||||||||||
Machinery, equipment and other | 101,047 | 101,916 | 100,206 | ||||||||||||||
140,412 | 141,431 | 139,616 | |||||||||||||||
Less - Accumulated depreciation and amortization | (112,455 | ) | (113,475 | ) | (111,335 | ) | |||||||||||
Net property, plant and equipment | $ | 27,957 | $ | 27,956 | $ | 28,281 | |||||||||||
Computation of Basic and Diluted 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, 2013 and 2012 (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Income from continuing operations | $ | 10,846 | $ | 6,840 | $ | 9,179 | $ | 5,973 | |||||||||
Gain from discontinued operations, net of tax | 112 | 81 | 112 | 44 | |||||||||||||
Net income | $ | 10,958 | $ | 6,921 | $ | 9,291 | $ | 6,017 | |||||||||
Denominator: | |||||||||||||||||
Weighted average shares outstanding for basic income per common share | 9,458 | 9,592 | 9,482 | 9,617 | |||||||||||||
Effect of dilutive stock options | 28 | 29 | 45 | 3 | |||||||||||||
Adjusted weighted average share outstanding for diluted income per common share | 9,486 | 9,621 | 9,527 | 9,620 | |||||||||||||
Basic: | |||||||||||||||||
Continuing operations | $ | 1.15 | $ | 0.71 | $ | 0.97 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
Diluted: | |||||||||||||||||
Continuing operations | $ | 1.14 | $ | 0.71 | $ | 0.96 | $ | 0.62 | |||||||||
Discontinued operations | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0 | |||||||||
Total (1) | $ | 1.16 | $ | 0.72 | $ | 0.98 | $ | 0.63 | |||||||||
-1 | Total net income per share for certain periods does not foot due to rounding. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Schedule of Discontinued Operations | As a result of the sale of its Christmas gift wrap business, the Company has reported these operations as discontinued operations, as shown in the following table (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Operating income (loss) | $ | 172 | $ | 56 | $ | 172 | $ | (30 | ) | ||||||||
Reversal of reserves | 0 | 63 | 0 | 92 | |||||||||||||
Discontinued operations, before income taxes | 172 | 119 | 172 | 62 | |||||||||||||
Income tax expense | 60 | 38 | 60 | 18 | |||||||||||||
Discontinued operations, net of tax | $ | 112 | $ | 81 | $ | 112 | $ | 44 | |||||||||
Carrying Values of Major Accounts of Discontinued Operations | The following table presents the carrying values of the major accounts of discontinued operations that are included in the condensed consolidated balance sheet (in thousands): | ||||||||||||||||
September 30, | March 31, | September 30, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Accounts receivable, net | $ | 0 | $ | 2 | $ | 0 | |||||||||||
Inventories | 0 | 0 | 126 | ||||||||||||||
Total current assets | $ | 0 | $ | 2 | $ | 126 | |||||||||||
Total assets attributable to discontinued operations | $ | 0 | $ | 2 | $ | 126 | |||||||||||
Customer programs | $ | 73 | $ | 162 | $ | 254 | |||||||||||
Restructuring reserve | 0 | 0 | 126 | ||||||||||||||
Other current liabilities | 316 | 482 | 344 | ||||||||||||||
Total current liabilities | $ | 389 | $ | 644 | $ | 724 | |||||||||||
Total liabilities associated with discontinued operations | $ | 389 | $ | 644 | $ | 724 | |||||||||||
Disposition_of_Product_Line_Ta
Disposition of Product Line (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||||||
Schedule of Aforementioned Restructuring | Selected information relating to the aforementioned restructuring follows (in thousands): | ||||||||||||||||
Employee | Facility | Professional | Total | ||||||||||||||
Termination | Costs | Fees and | |||||||||||||||
Costs | Other Costs | ||||||||||||||||
Restructuring reserve as of March 31, 2013 | $ | 589 | $ | 815 | $ | 483 | $ | 1,887 | |||||||||
Cash paid, net of sublease income | (418 | ) | (480 | ) | (39 | ) | (937 | ) | |||||||||
Non-cash adjustments | (63 | ) | (91 | ) | (242 | ) | (396 | ) | |||||||||
Restructuring reserve as of September 30, 2013 | $ | 108 | $ | 244 | $ | 202 | $ | 554 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model | The fair value of each market-based stock option and each market-based RSU granted under the above plan was estimated on the date of grant using a Monte Carlo simulation model with the following average assumptions: | ||||||||||||||||
Stock Options | RSUs | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 0.84 | % | 0.72 | % | 0.66 | % | 0.58 | % | |||||||||
Volatility | 52.27 | % | 54.75 | % | 40.47 | % | 57.9 | % | |||||||||
Dividend yield | 2.04 | % | 3.15 | % | 2.04 | % | 3.15 | % |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
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, | March 31, | September 30, | ||||||||||||
2013 | 2013 | 2012 | |||||||||||||
Foreign currency forward contracts | Other current liabilities | $ | 13 | $ | 17 | $ | 91 |
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
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, 2013 | March 31, 2013 | September 30, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | Carrying | Amortization | ||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||
Tradenames and trademarks | $ | 12,793 | $ | 0 | $ | 12,793 | $ | 0 | $ | 12,793 | $ | 0 | |||||||||||||
Customer relationships | 22,057 | 8,609 | 22,057 | 7,859 | 22,057 | 7,109 | |||||||||||||||||||
Non-compete | 0 | 0 | 0 | 0 | 200 | 200 | |||||||||||||||||||
Trademarks | 403 | 258 | 403 | 243 | 403 | 228 | |||||||||||||||||||
Patents | 1,262 | 471 | 1,262 | 409 | 1,301 | 357 | |||||||||||||||||||
$ | 36,515 | $ | 9,338 | $ | 36,515 | $ | 8,511 | $ | 36,754 | $ | 7,894 | ||||||||||||||
Schedule of Future Amortization Expense | Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2014 and each of the succeeding four years is projected to be as follows (in thousands): | ||||||||||||||||||||||||
Remainder of fiscal 2014 | $ | 827 | |||||||||||||||||||||||
Fiscal 2015 | 1,635 | ||||||||||||||||||||||||
Fiscal 2016 | 1,634 | ||||||||||||||||||||||||
Fiscal 2017 | 1,634 | ||||||||||||||||||||||||
Fiscal 2018 | 1,634 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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, 2013 and March 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||
September 30, | Quoted Prices In | Significant Other | Significant | ||||||||||||||
2013 | Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | 718 | $ | 718 | $ | 0 | $ | 0 | |||||||||
Cash surrender value of life insurance policies | 1,054 | 0 | 1,054 | 0 | |||||||||||||
Total assets | $ | 1,772 | $ | 718 | $ | 1,054 | $ | 0 | |||||||||
Liabilities | |||||||||||||||||
Deferred compensation plans | $ | 718 | $ | 718 | $ | 0 | $ | 0 | |||||||||
Foreign exchange contracts | 13 | 0 | 13 | 0 | |||||||||||||
Total liabilities | $ | 731 | $ | 718 | $ | 13 | $ | 0 | |||||||||
Fair Value Measurements at March 31, 2013 Using | |||||||||||||||||
March 31, | Quoted Prices In | Significant Other | Significant | ||||||||||||||
2013 | Active Markets | Observable | Unobservable | ||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Marketable securities | $ | 678 | $ | 678 | $ | 0 | $ | 0 | |||||||||
Cash surrender value of life insurance policies | 1,040 | 0 | 1,040 | 0 | |||||||||||||
Total assets | $ | 1,718 | $ | 678 | $ | 1,040 | $ | 0 | |||||||||
Liabilities | |||||||||||||||||
Deferred compensation plans | $ | 678 | $ | 678 | $ | 0 | $ | 0 | |||||||||
Foreign exchange contract | 17 | 0 | $ | 17 | $ | 0 | |||||||||||
Total liabilities | $ | 695 | $ | 678 | $ | 17 | $ | 0 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 05, 2012 | |
Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | |||||
Accounting Policies [Line Items] | ||||||
Sales price paid | $2,281,000 | |||||
Incurred transaction cost | 523,000 | 523,000 | ||||
Yielding net proceeds | 1,758,000 | |||||
Depreciation expense | $1,555,000 | $1,492,000 | $3,046,000 | $3,050,000 | ||
Effective antidilutive securities excluded from computation of net income per share | 150,000 | 264,000 | 150,000 | 264,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Inventories (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Raw material | $9,035 | $8,116 | $10,162 |
Work-in-process | 11,423 | 14,687 | 11,047 |
Finished goods | 54,050 | 39,795 | 63,968 |
Inventory, net | $74,508 | $62,598 | $85,177 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | $140,412 | $141,431 | $139,616 |
Less - Accumulated depreciation and amortization | -112,455 | -113,475 | -111,335 |
Net property, plant and equipment | 27,957 | 27,956 | 28,281 |
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 | 36,857 | 37,007 | 36,902 |
Machinery, Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Gross | $101,047 | $101,916 | $100,206 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Numerator: | ||||||||
Income from continuing operations | $10,846 | $6,840 | $9,179 | $5,973 | ||||
Gain from discontinued operations, net of tax | 112 | 81 | 112 | 44 | ||||
Net income | $10,958 | $6,921 | $9,291 | $6,017 | ||||
Denominator: | ||||||||
Weighted average shares outstanding for basic income per common share | 9,458 | 9,592 | 9,482 | 9,617 | ||||
Effect of dilutive stock options | 28 | 29 | 45 | 3 | ||||
Adjusted weighted average share outstanding for diluted income per common share | 9,486 | 9,621 | 9,527 | 9,620 | ||||
Basic: | ||||||||
Continuing operations | $1.15 | $0.71 | $0.97 | $0.62 | ||||
Discontinued operations | $0.01 | $0.01 | $0.01 | $0 | ||||
Total | $1.16 | [1] | $0.72 | [1] | $0.98 | [1] | $0.63 | [1] |
Diluted: | ||||||||
Continuing operations | $1.14 | $0.71 | $0.96 | $0.62 | ||||
Discontinued operations | $0.01 | $0.01 | $0.01 | $0 | ||||
Total | $1.16 | [1] | $0.72 | [1] | $0.98 | [1] | $0.63 | [1] |
[1] | Total net income per common share may not foot due to rounding. |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | |||
Sep. 09, 2011 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 01, 2013 | Mar. 01, 2012 | |
Discontinued Operations And Disposal Groups [Abstract] | |||||
Purchase price of new company | $7,500,000 | ||||
Cash payment for new company | 2,000,000 | ||||
Interest rate of promissory note | 7.00% | ||||
Principal payments of promissory note | 2,500,000 | 500,000 | |||
Advance principal payment | 2,000,000 | ||||
Notes receivable - current | $500,000 |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | ||||
Operating income (loss) | $172 | $56 | $172 | ($30) |
Reversal of reserves | 0 | 63 | 0 | 92 |
Discontinued operations, before income taxes | 172 | 119 | 172 | 62 |
Income tax expense | 60 | 38 | 60 | 18 |
Discontinued operations, net of tax | $112 | $81 | $112 | $44 |
Discontinued_Operations_Carryi
Discontinued Operations - Carrying Values of Major Accounts of Discontinued Operations (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Disposal Group Including Discontinued Operation Classified Balance Sheet Disclosures [Abstract] | |||
Accounts receivable, net | $0 | $2 | $0 |
Inventories | 0 | 0 | 126 |
Total current assets | 0 | 2 | 126 |
Total assets attributable to discontinued operations | 0 | 2 | 126 |
Customer programs | 73 | 162 | 254 |
Restructuring reserve | 0 | 0 | 126 |
Other current liabilities | 316 | 482 | 344 |
Total current liabilities | 389 | 644 | 724 |
Total liabilities associated with discontinued operations | $389 | $644 | $724 |
Business_Restructuring_Additio
Business Restructuring - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | |
Employee Severance [Member] | Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | |||||
Employee severance charges | $98,000 | $706,000 | |||
Restructuring payments | 13,000 | 523,000 | 116,000 | ||
Decrease in restructuring accrual related to severance costs | $54,000 |
Disposition_of_Product_Line_Ad
Disposition of Product Line - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 05, 2012 | |
Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | ||||||||
Employees | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sale price of business portion sold | $2,281,000 | ||||||||||
Restructuring charges | 5,368,000 | ||||||||||
Severance of employees | 49 | ||||||||||
Severance of employees cost | 1,282,000 | ||||||||||
Facility closure costs | 1,375,000 | ||||||||||
Professional fees related with sale of business | 1,341,000 | ||||||||||
Incurred transaction cost | 523,000 | 523,000 | |||||||||
Non-cash write-down of assets related with sale of business | 1,370,000 | ||||||||||
Reduction of goodwill from disposition of product line | 2,711,000 | 0 | 2,711,000 | 2,711,000 | |||||||
Non-cash charge related to write-down of inventory | 1,266,000 | ||||||||||
Company made payments related to restructuring | 13,000 | 937,000 | 1,901,000 | ||||||||
Decrease in restructuring reserve | 210,000 | ||||||||||
Payment related to facility costs and severance | 358,000 | 937,000 | |||||||||
Remaining liability related with other current liabilities | 456,000 | 456,000 | |||||||||
Remaining liability related with long-term obligation | 98,000 | 98,000 | 706,000 | ||||||||
Reduction in Restructuring accrual | $396,000 |
Disposition_of_Product_Line_Sc
Disposition of Product Line - Schedule of Aforementioned Restructuring (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||
Apr. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | Employee Termination Costs [Member] | Facility Costs [Member] | Professional Fees and Other Costs [Member] | ||
Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | Sale of Halloween Portion of PMG's Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Restructuring reserve, beginning balance | $1,887,000 | $589,000 | $815,000 | $483,000 | ||
Cash paid, net of sublease income | -13,000 | -937,000 | -1,901,000 | -418,000 | -480,000 | -39,000 |
Non-cash adjustments | -396,000 | -63,000 | -91,000 | -242,000 | ||
Restructuring reserve, ending balance | $554,000 | $1,887,000 | $108,000 | $244,000 | $202,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost related to stock options & RSUs recognized in operating results | $516,000 | $504,000 | $1,008,000 | $914,000 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested RSUs | 1,766,000 | 1,766,000 | ||
2004 Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of grant | Not more than 10 years | |||
Stock option plan | 2004 Plan | |||
Percentage of stock option exercisable per year | 25.00% | |||
Option exercisable period after grant date | 1 year | |||
Equity compensation plan expired date | 30-Jul-13 | |||
Outstanding RSUs vesting percentage | 50.00% | |||
Weighted average fair value of stock options granted | $11.06 | $7.27 | ||
Weighted average fair value of restricted stock granted | $20.51 | $14.78 | ||
2011 Stock Option Plan for Non-Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 121,000 | 121,000 | ||
Stock option plan | 2011 Plan | |||
Percentage of stock option exercisable per year | 25.00% | |||
Option exercisable period after grant date | 1 year | |||
Issue of common stock under ESOP | 150,000 | 150,000 | ||
Company's common stock granted to non-employee director | 4,000 | |||
Expiry period of option | 5 years | |||
Total unrecognized compensation cost related to non-vested stock option awards | $1,630,000 | $1,630,000 | ||
Equity incentive plan, weighted average recognition period | 2 years | |||
2011 Stock Option Plan for Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity incentive plan, weighted average recognition period | 2 years 3 months 18 days | |||
2013 Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 1,100,000 | 1,100,000 | ||
Term of grant | Not more than 10 years | |||
Stock option plan | 2013 Plan |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model (Detail) | 6 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.84% | 0.72% |
Volatility | 52.27% | 54.75% |
Dividend yield | 2.04% | 3.15% |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.66% | 0.58% |
Volatility | 40.47% | 57.90% |
Dividend yield | 2.04% | 3.15% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative [Line Items] | ||||
Foreign currency forward contracts, unrealized loss | $13,000 | $91,000 | ||
Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Realized loss from foreign currency forward contracts | 16,000 | 6,000 | 9,000 | 6,000 |
Foreign Exchange Forward [Member] | ||||
Derivative [Line Items] | ||||
Notional amount of derivative contracts | $3,192,000 | $5,131,000 | $3,192,000 | $5,131,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Derivative Instruments (Detail) (Foreign Exchange Forward [Member], Other Current Liabilities [Member], USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Foreign Exchange Forward [Member] | Other Current Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Foreign currency forward contracts | $13 | $17 | $91 |
Goodwill_and_Intangibles_Addit
Goodwill and Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Impairment charge on goodwill | $2,711,000 | $0 | $2,711,000 | |
Amortization expense related to intangible assets | $413,000 | $415,000 | $827,000 | $829,000 |
Goodwill_and_Intangibles_Gross
Goodwill and Intangibles - Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $36,515 | $36,515 | $36,754 |
Accumulated Amortization | 9,338 | 8,511 | 7,894 |
Tradenames and Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 12,793 | 12,793 | 12,793 |
Accumulated Amortization | 0 | 0 | 0 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 22,057 | 22,057 | 22,057 |
Accumulated Amortization | 8,609 | 7,859 | 7,109 |
Non-Compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 0 | 0 | 200 |
Accumulated Amortization | 0 | 0 | 200 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 403 | 403 | 403 |
Accumulated Amortization | 258 | 243 | 228 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,262 | 1,262 | 1,301 |
Accumulated Amortization | $471 | $409 | $357 |
Goodwill_and_Intangibles_Sched
Goodwill and Intangibles - Schedule of Future Amortization Expense (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
Remainder of fiscal 2014 | $827 |
Fiscal 2015 | 1,635 |
Fiscal 2016 | 1,634 |
Fiscal 2017 | 1,634 |
Fiscal 2018 | $1,634 |
Treasury_Stock_Transactions_Ad
Treasury Stock Transactions - Additional Information (Detail) (USD $) | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased of the Company's common stock | 214,569 | 140,183 | |
Value of shares repurchased of the Company's common stock | $5,231,000 | $2,650,000 | |
Remaining shares available for repurchase under the Board's authorization | 259,041 | ||
Authorized repurchase of additional common stock | 500,000 | ||
Payment for stock repurchases | 5,065,000 | 2,650,000 | |
Subsequent Event [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Payment for stock repurchases | $166,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Recurring Fair Value Measurements [Member]) | Sep. 30, 2013 |
Executives | |
InsurancePolicy | |
Recurring Fair Value Measurements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of life insurance policies | 2 |
Number of former executives | 2 |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Recurring Fair Value Measurements [Member], USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Assets | $1,772 | $1,718 |
Liabilities | ||
Liabilities | 731 | 695 |
Marketable Securities [Member] | ||
Assets | ||
Assets | 718 | 678 |
Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Assets | 1,054 | 1,040 |
Deferred Compensation Plans [Member] | ||
Liabilities | ||
Liabilities | 718 | 678 |
Foreign Exchange Contract [Member] | ||
Liabilities | ||
Liabilities | 13 | 17 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Assets | 718 | 678 |
Liabilities | ||
Liabilities | 718 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Marketable Securities [Member] | ||
Assets | ||
Assets | 718 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Assets | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Liabilities | 718 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Foreign Exchange Contract [Member] | ||
Liabilities | ||
Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Assets | 1,054 | 1,040 |
Liabilities | ||
Liabilities | 13 | 17 |
Significant Other Observable Inputs (Level 2) [Member] | Marketable Securities [Member] | ||
Assets | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Assets | 1,054 | 1,040 |
Significant Other Observable Inputs (Level 2) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Contract [Member] | ||
Liabilities | ||
Liabilities | 13 | 17 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Marketable Securities [Member] | ||
Assets | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Exchange Contract [Member] | ||
Liabilities | ||
Liabilities | $0 | $0 |