Cover
Cover - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Apr. 22, 2020 | Aug. 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 29, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-14669 | ||
Entity Registrant Name | HELEN OF TROY LIMITED | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 74-2692550 | ||
Entity Address, Address Line One | 1 Helen of Troy Plaza | ||
Entity Address, City or Town | El Paso | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 79912 | ||
City Area Code | 915 | ||
Local Phone Number | 225-8000 | ||
Title of 12(b) Security | Common Shares, $0.10 par value per share | ||
Trading Symbol | HELE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,831,315,388 | ||
Entity Common Stock, Shares Outstanding | 25,243,702 | ||
Entity Central Index Key | 0000916789 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-29 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Other Address | |||
Entity Information [Line Items] | |||
Entity Address, Address Line One | Clarendon House, 2 Church Street | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Country | BM |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Assets, current: | ||
Cash and cash equivalents | $ 24,467 | $ 11,871 |
Receivables - principally trade, less allowances of $1,461 and $2,032 | 348,023 | 280,280 |
Inventory | 256,311 | 302,339 |
Prepaid expenses and other current assets | 9,229 | 10,369 |
Assets held for sale | 44,806 | 0 |
Total assets, current | 682,836 | 604,859 |
Property and equipment, net of accumulated depreciation of $132,340 and $123,744 | 132,107 | 130,338 |
Goodwill | 739,901 | 602,320 |
Other intangible assets, net of accumulated amortization of $148,891 and $181,463 | 300,952 | 291,526 |
Operating lease assets | 32,645 | |
Deferred tax assets, net | 14,635 | 7,991 |
Other assets, net of accumulated amortization of $2,167 and $2,115 | 807 | 12,501 |
Total assets | 1,903,883 | 1,649,535 |
Liabilities, current: | ||
Accounts payable, principally trade | 152,674 | 143,560 |
Accrued expenses and other current liabilities | 183,157 | 165,160 |
Income taxes payable | 1,181 | 1,427 |
Long-term debt, current maturities | 1,884 | 1,884 |
Total liabilities, current | 338,896 | 312,031 |
Long-term debt, excluding current maturities | 337,421 | 318,900 |
Lease liabilities, non-current | 40,861 | |
Deferred tax liabilities, net | 4,224 | 5,748 |
Other liabilities, noncurrent | 20,758 | 16,219 |
Total liabilities | 742,160 | 652,898 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued | 0 | 0 |
Common stock, $0.10 par. Authorized 50,000,000 shares; 25,193,766 and 24,946,046 shares issued and outstanding | 2,519 | 2,495 |
Additional paid in capital | 268,043 | 246,585 |
Accumulated other comprehensive income | (7,005) | 1,191 |
Retained earnings | 898,166 | 746,366 |
Total stockholders' equity | 1,161,723 | 996,637 |
Total liabilities and stockholders' equity | $ 1,903,883 | $ 1,649,535 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables - principally trade, allowances (in dollars) | $ 1,461 | $ 2,032 |
Property and equipment, accumulated depreciation (in dollars) | 132,340 | 123,744 |
Other intangible assets, accumulated amortization (in dollars) | 148,855 | 181,463 |
Other assets, accumulated amortization (in dollars) | $ 2,167 | $ 2,115 |
Cumulative preferred stock, non-voting, par (in dollars per share) | $ 1 | $ 1 |
Cumulative preferred stock, non-voting, authorized shares (in shares) | 2,000,000 | 2,000,000 |
Cumulative preferred stock, non-voting, issued shares (in shares) | 0 | 0 |
Common stock, par (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 25,193,766 | 24,946,046 |
Common stock, shares outstanding (in shares) | 25,193,766 | 24,946,046 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Statement [Abstract] | |||
Sales revenue, net | $ 1,707,432 | $ 1,564,151 | $ 1,478,845 |
Cost of goods sold | 972,966 | 923,045 | 867,646 |
Gross profit | 734,466 | 641,106 | 611,199 |
Selling, general and administrative expense (SG&A) | 511,902 | 438,141 | 424,833 |
Asset impairment charges | 41,000 | 0 | 15,447 |
Restructuring charges | 3,313 | 3,586 | 1,857 |
Operating income | 178,251 | 199,379 | 169,062 |
Nonoperating income, net | 394 | 340 | 327 |
Interest expense | (12,705) | (11,719) | (13,951) |
Income before income tax | 165,940 | 188,000 | 155,438 |
Income tax expense | 13,607 | 13,776 | 26,556 |
Income from continuing operations | 152,333 | 174,224 | 128,882 |
Loss from discontinued operations, net of tax | 0 | (5,679) | (84,436) |
Net income | $ 152,333 | $ 168,545 | $ 44,446 |
Earnings (loss) per share - basic: | |||
Continuing operations (in dollars per share) | $ 6.06 | $ 6.68 | $ 4.76 |
Discontinued operations (in dollars per share) | 0 | (0.22) | (3.12) |
Total earnings per share - basic (in dollars per share) | 6.06 | 6.46 | 1.64 |
Earnings (loss) per share - diluted: | |||
Continuing operations (in dollars per share) | 6.02 | 6.62 | 4.73 |
Discontinued operations (in dollars per share) | 0 | (0.22) | (3.10) |
Total earnings per share - diluted (in dollars per share) | $ 6.02 | $ 6.41 | $ 1.63 |
Weighted average shares of common stock used in computing earnings per share: | |||
Basic (in shares) | 25,118 | 26,073 | 27,077 |
Diluted (in shares) | 25,322 | 26,303 | 27,254 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 152,333 | $ 168,545 | $ 44,446 |
Other comprehensive income (loss), net of tax: | |||
Cash flow hedge activity - interest rate swaps | (8,331) | ||
Cash flow hedge activity - interest rate swaps | (1,573) | 1,705 | |
Cash flow hedge activity - foreign currency contracts | 135 | 2,133 | (2,247) |
Total other comprehensive income (loss), net of tax | (8,196) | 560 | (542) |
Comprehensive income | $ 144,137 | $ 169,105 | $ 43,904 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance (in shares) at Feb. 28, 2017 | 27,029 | ||||
Beginning Balance at Feb. 28, 2017 | $ 1,020,766 | $ 2,703 | $ 218,760 | $ 1,173 | $ 798,130 |
Increase (Decrease) in Stockholders' Equity | |||||
Income from continuing operations | 128,882 | 128,882 | |||
Loss from discontinued operations | (84,436) | (84,436) | |||
Other comprehensive income (loss), net of tax | (542) | (542) | |||
Exercise of stock options, net (in shares) | 126 | ||||
Exercise of stock options | 6,559 | $ 12 | 6,547 | ||
Issuance of restricted stock (in shares) | 198 | ||||
Net issuance and settlement of restricted stock | (298) | $ 20 | (318) | ||
Issuance of common stock related to employee stock purchase plan (in shares) | 16 | ||||
Issuance of common stock related to stock purchase plan | 1,527 | $ 2 | 1,525 | ||
Common stock repurchased and retired (in shares) | (793) | ||||
Common stock repurchased and retired | (73,053) | $ (79) | (10,892) | (62,082) | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 15,054 | 15,054 | |||
Balance (in shares) at Feb. 28, 2018 | 26,576 | ||||
Ending Balance at Feb. 28, 2018 | 1,014,459 | $ 2,658 | 230,676 | 631 | 780,494 |
Increase (Decrease) in Stockholders' Equity | |||||
Income from continuing operations | 174,224 | 174,224 | |||
Loss from discontinued operations | (5,679) | (5,679) | |||
Other comprehensive income (loss), net of tax | 560 | 560 | |||
Exercise of stock options, net (in shares) | 126 | ||||
Exercise of stock options | 6,275 | $ 13 | 6,262 | ||
Issuance of restricted stock (in shares) | 147 | ||||
Net issuance and settlement of restricted stock | 0 | $ 15 | (15) | ||
Issuance of common stock related to employee stock purchase plan (in shares) | 31 | ||||
Issuance of common stock related to stock purchase plan | 2,395 | $ 3 | 2,392 | ||
Common stock repurchased and retired (in shares) | (1,934) | ||||
Common stock repurchased and retired | (217,493) | $ (194) | (14,783) | (202,516) | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 22,053 | 22,053 | |||
Balance (in shares) at Feb. 28, 2019 | 24,946 | ||||
Ending Balance at Feb. 28, 2019 | 996,637 | $ 2,495 | 246,585 | 1,191 | 746,366 |
Increase (Decrease) in Stockholders' Equity | |||||
Income from continuing operations | 152,333 | 152,333 | |||
Loss from discontinued operations | 0 | 0 | |||
Other comprehensive income (loss), net of tax | (8,196) | (8,196) | |||
Exercise of stock options, net (in shares) | 93 | ||||
Exercise of stock options | 5,353 | $ 9 | 5,344 | ||
Issuance of restricted stock (in shares) | 202 | ||||
Net issuance and settlement of restricted stock | 0 | $ 20 | (20) | ||
Issuance of common stock related to employee stock purchase plan (in shares) | 30 | ||||
Issuance of common stock related to stock purchase plan | 2,836 | $ 3 | 2,833 | ||
Common stock repurchased and retired (in shares) | (77) | ||||
Common stock repurchased and retired | (10,169) | $ (8) | (9,628) | (533) | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 22,929 | 22,929 | |||
Balance (in shares) at Feb. 29, 2020 | 25,194 | ||||
Ending Balance at Feb. 29, 2020 | $ 1,161,723 | $ 2,519 | $ 268,043 | $ (7,005) | $ 898,166 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | |
Cash provided by operating activities: | |||
Net income | $ 152,333,000 | $ 168,545,000 | $ 44,446,000 |
Less: Loss from discontinued operations | 0 | (5,679,000) | (84,436,000) |
Income from continuing operations | 152,333,000 | 174,224,000 | 128,882,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 37,409,000 | 29,927,000 | 33,730,000 |
Amortization of financing costs | 1,620,000 | 1,015,000 | 887,000 |
Non-cash operating lease asset amortization | 1,682,000 | ||
Provision for doubtful receivables | 529,000 | 1,097,000 | 1,066,000 |
Non-cash share-based compensation | 22,929,000 | 22,053,000 | 15,054,000 |
Non-cash intangible asset impairment charges | 41,000,000 | 0 | 15,447,000 |
Loss (gain) on the sale or disposal of property and equipment | 188,000 | (540,000) | 331,000 |
Deferred income taxes and tax credits | (5,696,000) | 7,636,000 | 21,264,000 |
Changes in operating assets and liabilities, net of effects of acquisition of business: | |||
Receivables | (60,562,000) | (5,812,000) | (44,921,000) |
Inventories | 45,482,000 | (50,828,000) | 29,366,000 |
Prepaid expenses and other current assets | 863,000 | 239,000 | (383,000) |
Other assets and liabilities, net | 24,075,000 | 7,549,000 | (16,728,000) |
Accounts payable | 7,166,000 | 14,219,000 | 23,689,000 |
Accrued expenses and other current liabilities | 5,296,000 | (1,526,000) | 12,293,000 |
Accrued income taxes | (3,021,000) | 1,315,000 | (1,368,000) |
Net cash provided by operating activities - continuing operations | 271,293,000 | 200,568,000 | 218,609,000 |
Net cash provided (used) by operating activities - discontinued operations | 0 | (5,265,000) | 5,598,000 |
Net cash provided by operating activities | 271,293,000 | 195,303,000 | 224,207,000 |
Cash provided (used) by investing activities: | |||
Capital and intangible asset expenditures | (17,759,000) | (26,385,000) | (13,605,000) |
Proceeds from the sale of property and equipment | 3,000 | 1,138,000 | 13,000 |
Payments to acquire businesses, net of cash acquired | (255,861,000) | 0 | 0 |
Net cash used by investing activities - continuing operations | (273,617,000) | (25,247,000) | (13,592,000) |
Net cash provided (used) by investing activities - discontinued operations | 0 | 0 | 49,226,000 |
Net cash provided (used) by investing activities | (273,617,000) | (25,247,000) | 35,634,000 |
Cash used by financing activities: | |||
Proceeds from line of credit | 771,300,000 | 667,250,000 | 521,200,000 |
Repayment of line of credit | (752,500,000) | (635,450,000) | (692,500,000) |
Repayment of long-term debt | (1,900,000) | (1,900,000) | (25,700,000) |
Proceeds from share issuances under share-based compensation plans | 8,189,000 | 8,670,000 | 7,863,000 |
Repurchases of common stock in the open market and from share settlements | (10,169,000) | (217,493,000) | (73,053,000) |
Net cash provided (used) by financing activities | 14,920,000 | (178,923,000) | (262,190,000) |
Net cash provided (used) by financing activities | 12,596,000 | (8,867,000) | (2,349,000) |
Cash and cash equivalents, beginning balance | 11,871,000 | 20,738,000 | 23,087,000 |
Cash and cash equivalents, ending balance | 24,467,000 | 11,871,000 | 20,738,000 |
Less: Cash and cash equivalents of discontinued operations, ending balance | 0 | 0 | 0 |
Cash and cash equivalents of continuing operations, ending balance | 24,467,000 | 11,871,000 | 20,738,000 |
Supplemental cash flow information: | |||
Interest paid | 12,777,000 | 11,292,000 | 13,543,000 |
Income taxes paid, net of refunds | 23,279,000 | $ 4,277,000 | $ 6,081,000 |
Supplemental non-cash items not included above resulting from the adoption of ASC 842 | |||
Initial recognition of operating lease asset | (37,082,000) | ||
Initial recognition of lease liabilities | 47,223,000 | ||
Accrued expenses and other current liabilities | (2,873,000) | ||
Other assets and liabilities, net | (7,311,000) | ||
Prepaid expenses and other current assets | $ 43,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Related Information | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Related Information | Note 1 - Summary of Significant Accounting Policies and Related Information General When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. As of February 29, 2020 , we operated three segments: Housewares, Health & Home, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage and food containers. The Health & Home segment focuses on healthcare devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. On December 20, 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements (see Note 6 ). All other footnotes present results from continuing operations. On January 23, 2020, we completed the acquisition of Drybar Products LLC ("Drybar Products"), for approximately $255.9 million in cash, subject to certain customary closing adjustments. Drybar Products is a fast-growing, innovative, trend setting prestige hair care and styling brand in the multi-billion-dollar beauty industry. As part of the transaction, Helen of Troy granted a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Drybar products globally (see Note 9 ). During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our mass market personal care business. The assets to be disposed of include intangible assets, inventory and fixed assets relating to our mass channel liquids, powder and aerosol products including brands such as Pert, Brut, Sure and Infusium. We expect the divestiture to occur within fiscal 2021. Accordingly, we have classified the identified assets of the disposal group as held for sale (see Note 5 ). Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Our consolidated financial statements are prepared in United States (“U.S.”) Dollars. All intercompany accounts and transactions are eliminated in consolidation. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation, including discontinued operations (see Note 6 ) and the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (see Note 3 ). Our significant accounting policies include: Cash and cash equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts to be cash equivalents. Receivables Our receivables are comprised of trade credit granted to customers, primarily in the retail industry, offset by an allowance for doubtful receivables. Our allowance for doubtful receivables reflects our best estimate of probable losses, determined principally based on historical experience and specific allowances for known at-risk accounts. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. We have a significant concentration of credit risk with three major customers at February 29, 2020 representing approximately 18% , 14% , and 13% of our gross trade receivables, respectively. During fiscal 2019 our significant concentration of credit risk with three major customers represented approximately 17% , 12% , and 12% of our gross trade receivables, respectively. In addition, as of February 29, 2020 and February 28, 2019 , approximately 54% and 48% , respectively, of our gross trade receivables were due from our five top customers. Foreign currency transactions and related derivative financial instruments The U.S. Dollar is the functional currency for the Company and all of its subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions involving other currencies have been re-measured in U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts, zero-cost collars and cross-currency swaps to exchange foreign currencies for U.S. Dollars at specified rates. Derivatives for which we have elected and qualify for hedge accounting, are recorded on the balance sheet at their fair value and changes in the fair value of the forward exchange contracts and zero cost collars are recorded each period in our consolidated statements of comprehensive income until the underlying hedge transaction is settled, at which point changes in fair value are recorded in our consolidated statements of income. For derivatives which we have not elected, or do not qualify for, hedge accounting, changes in the fair value of the contracts are recorded each period in our consolidated statements of income. We evaluate all hedging transactions each quarter to determine that they remain effective. Any material ineffectiveness is recorded as part of SG&A in our consolidated statements of income. Inventory and cost of goods sold Our inventory consists almost entirely of finished goods. Inventories are stated at the lower of average costs or net realizable value. We write down a portion of our inventory to net realizable value based on the historical success of product lines and estimates about future demand and market conditions, among other factors. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. General and administrative expenses in inventory include all the expenses of operating our sourcing activities and expenses incurred for production monitoring, product design, engineering, and packaging. We charged $44.6 , $47.7 , and $43.2 million of such general and administrative expenses to inventory during fiscal 2020 , 2019 and 2018 , respectively. We estimate that $16.0 and $15.6 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 29, 2020 and February 28, 2019 , respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. For fiscal 2020 , 2019 and 2018 , finished goods purchased from vendors in the Far East comprised approximately 76% , 74% , and 74% , respectively, of total finished goods purchased. During fiscal 2020 , we had one vendor (located in Mexico) who fulfilled approximately 9% of our product requirements compared to 11% for fiscal 2019 and 2018. For fiscal 2020, 2019 and 2018, our top two manufacturers combined fulfilled approximately 18% , 20% , and 19% of our product requirements. Over the same periods, our top five suppliers fulfilled approximately 39% , 38% , and 34% of our product requirements, respectively. Property and equipment These assets are stated at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. License agreements, trademarks, patents, and other intangible assets A significant portion of our sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. We capitalize costs incurred to renew or extend the term of a license agreement and amortize such costs on a straight-line basis over the remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our consolidated statements of income in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 43% , 41% and 45% of consolidated net sales revenue for fiscal 2020 , 2019 and 2018 , respectively. During fiscal 2020 , three license agreements accounted for net sales revenue subject to royalty payments of approximately 14% , 11% and 10% of consolidated net sales, respectively. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In some instances, we have determined that such acquired assets have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through acquisition, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 14 years. Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either through outside appraisal or by the term of any controlling agreements. Goodwill, intangible and other long-lived assets and related impairment testing Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). We measure the amount of any goodwill impairment based upon the estimated fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets and estimates of the implied fair value of goodwill. An impairment charge is recognized to the extent the recorded goodwill exceeds the implied fair value of goodwill. We complete our analysis of the carrying value of our goodwill and other intangible assets annually, or whenever events or changes in circumstances indicate their carrying value may not be recoverable. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If the analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. These steps entail significant amounts of judgment and subjectivity. We perform our annual impairment testing for goodwill and indefinite-lived assets as of the beginning of the fourth quarter of our fiscal year (see Note 10 ). Economic useful lives and amortization of intangible assets We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset's economic useful life is deemed indefinite, that asset is not amortized. We review the economic useful lives of our intangible assets at least annually. Intangible assets consist primarily of goodwill, license agreements, trademarks, brand assets, customer lists, distribution rights, patents, and patent licenses. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 5 to 30 years (see Note 10 ). Sales Returns We allow for sales returns for defects in material and workmanship for periods ranging from two to five years . We recognize an allowance for sales returns to reduce sales to reflect our best estimate of future customer returns, determined principally based on historical experience and specific allowances for known pending returns. Financial instruments The carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses, and income taxes payable approximate fair value because of the short maturity of these items. See Note 17 for our assessment of the fair value of our long-term debt. Income taxes and uncertain tax positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed and disclose as a separate liability in our financial statements, including related accrued interest and penalties. Revenue recognition We adopted the provisions of ASU 2014-9 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue when control of, and title to, the product sold transfers to the customer. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. We offer our customers certain incentives in the form of volume rebates, product markdown allowances, trade discounts, cash discounts, slotting fees, and other similar arrangements which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. These programs are generally recorded as reductions of net sales revenue. In instances when we purchase a distinct good or service from our customer and fair value can be reasonably estimated, these amounts are expensed in our consolidated statements of income in SG&A. The amount of consideration granted to customers recorded in SG&A were $20.9 , $17.0 , and $11.8 million for fiscal 2020 , 2019 and 2018 , respectively. Sales taxes and other similar taxes are excluded from revenue. We account for shipping and handling activities as a fulfillment cost. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. Advertising Advertising costs include cooperative retail advertising with our customers, traditional and digital media advertising and production expenses, and expenses associated with other promotional product messaging and consumer awareness programs. Advertising costs are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs of $71.4 , $62.4 , and $53.7 million during fiscal 2020 , 2019 and 2018 , respectively. Research and development expense Research and development expenses consist primarily of salary and employee benefit expenses and contracted development efforts and expenses associated with development of products. Expenditures for research activities relating to product design, development and improvement are generally charged to expense as incurred and are included in our consolidated statements of income in SG&A. We incurred total research and development expenses of $17.8 , $13.0 , and $13.5 million during fiscal 2020 , 2019 and 2018 , respectively. Shipping and handling revenue and expense Shipping and handling revenue and expense are included in our consolidated statements of income in SG&A. This includes distribution center costs, third-party logistics costs and outbound transportation costs we incur. Our net expense for shipping and handling was $102.7 , $89.4 , $78.1 million during fiscal 2020 , 2019 and 2018 , respectively. Share-based compensation plans We account for share-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, restricted stock awards (“RSA”), restricted stock units (“RSU”), performance stock awards ("PSA"), and performance stock units (“PSU”), to be measured based on the grant date fair value of the awards. The resulting expense is recognized over the periods during which the employee is required to perform service in exchange for the award. The estimated number of PSA's and PSU’s that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. Stock options are recognized in the financial statements based on their fair values using an option-pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. See Note 11 for further information on our share-based compensation plans. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Feb. 29, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | Note 2 - New Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2019-12 "Income Taxes," which provides for certain updates to reduce complexity in the accounting for income taxes, including the utilization of the incremental approach for intra-period tax allocation, among others. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We are currently evaluating the impact this guidance may have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU is effective for us on March 1, 2020, and interim periods within those fiscal years. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes certain disclosures, modifies certain disclosures and adds additional disclosures. The ASU is effective for us on March 1, 2020, and interim periods within those fiscal years. Early adoption is permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We believe that the adoption of this guidance will not have a material impact on our consolidated financial statements. There have been no other accounting pronouncements issued but not yet adopted that are expected to have a material impact on our consolidated financial statements. Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4 ). In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ( Topic 220 ). The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) : Scope of Modification Accounting (Topic 718) . This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra–Entity Asset Transfers of Assets Other Than Inventory (Topic 740) . ASU 2016-16 amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of taxes when the transfer occurs. The amendment was effective for us on March 1, 2018. A modified retrospective approach is required for transition to the new guidance, with a cumulative-effect adjustment consisting of the net impact from (1) the write-off of any unamortized expense previously deferred and (2) recognition of any previously unrecognized deferred tax assets, net of any valuation allowance. The new guidance does not include any specific new disclosure requirements. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance. We adopted the guidance in the first quarter of fiscal 2019 (see Note 3 ). In January 2017, the FASB, issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Feb. 29, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3 - Revenue Recognition We adopted the provisions of ASU 2014-09 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized was not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance did however impact the classification of certain consideration paid to our customers. We therefore have reclassified an immaterial amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented. We elected to adopt the guidance using the full retrospective method. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. In accordance with the guidance, most variable consideration is classified as a reduction to net sales. Sales taxes and other similar taxes are excluded from revenue. We elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. The effect of the adoption of ASU 2014-09 on the consolidated financial statements from continuing operations is as follows: (in thousands) Before Reclassification After Reclassification Balance Sheet February 28, 2018 Reclassification February 28, 2018 Receivables $ 273,168 $ 2,397 $ 275,565 Accrued expenses and other current liabilities $ 165,864 $ 2,397 $ 168,261 (in thousands) Before Reclassification After Reclassification Statement of Income Fiscal Year Ended February 28, 2018 Reclassification Fiscal Year Ended Sales revenue, net $ 1,489,747 $ (10,902 ) $ 1,478,845 SG&A $ 435,735 $ (10,902 ) $ 424,833 |
Leases
Leases | 12 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Leases | Note 4 - Leases Adoption of the new lease standard resulted in the recording of lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. The new standard did not materially impact our consolidated statements of income or cash flows. The Company primarily has leases for office space, which are classified as operating leases. Operating leases are included in operating lease assets, accrued expenses and other current liabilities, and lease liabilities, non-current in our consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use an estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We include options to extend or terminate the lease in the lease term for accounting considerations, when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of less than one year to 13 years . Lease expense for lease payments is recognized on a straight-line basis over the lease term in a manner similar to previous accounting guidance. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the condensed consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under the new guidance, operating lease expense recognized in the condensed consolidated statements of income during fiscal 2020 was $6.4 million . Short-term lease expense is excluded from this amount and is not material. Rent expense related to all our operating leases was $7.8 , $7.9 , and $5.5 million for fiscal 2020 , 2019 and 2018 , respectively. The non-cash component of lease expense is included as an adjustment to reconcile income from continuing operations to net cash provided by operating activities in the condensed consolidated statements of cash flows. A summary of supplemental lease information is as follows: February 29, 2020 Weighted average remaining lease term (years) 10.8 Weighted average discount rate 6.13 % Year-to-date cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,579 A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) Fiscal 2021 $ 6,082 Fiscal 2022 5,959 Fiscal 2023 5,601 Fiscal 2024 5,102 Fiscal 2025 5,762 Thereafter 34,370 Total future lease payments 62,876 Less: imputed interest (18,374 ) Present value of lease liability $ 44,502 February 29, 2020 Lease liabilities, current (1) $ 3,641 Lease liabilities, non-current 40,861 Total lease liability $ 44,502 |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Feb. 29, 2020 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Assets Held for Sale | Assets Held for Sale We record assets held for sale in accordance with ASC 360 “Property, Plant, and Equipment,” and present them as single asset amounts in our condensed consolidated financial statements. Assets held for sale consist of assets that we expect to sell within the next year. The assets are reported at the lower of carrying amount or fair value less costs to sell. We cease recording depreciation on assets that are classified as held for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of held for sale. We review assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values. During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our mass market personal care business. The assets to be disposed of include intangible assets, inventory and fixed assets relating to our mass channel liquids, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium. We expect the divestiture to occur within fiscal 2021. Accordingly, we have classified the identified assets of the disposal group as held for sale. The carrying amounts of the major classes of assets for the personal care business that were classified held for sale are as follows: (in thousands) February 29, 2020 Assets Inventory $ 17,150 Property and equipment, net of accumulated depreciation of $403 83 Goodwill 9,849 Other intangible assets, net of accumulated amortization of $4,474 17,724 Total assets held for sale $ 44,806 The following table summarizes income (loss) before income tax for the personal care business: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Income (loss) before income taxes $ (29,760 ) $ 23,190 $ 1,713 Income (loss) before income taxes includes asset impairment charges of $41.0 million , $0 and $15.4 million |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Feb. 29, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 6 - Discontinued Operations In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million , payable on or before August 1, 2019. During fiscal 2019, the final amount of the supplemental payment was adjusted to $10.8 million based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018. The adjustment resulted in a corresponding pre-tax charge of $5.8 million ( $4.4 million after tax) to discontinued operations. The supplemental payment of $10.8 million was received during the second quarter of fiscal 2020. Also, during fiscal 2019, we recorded an additional charge of $1.5 million ( $1.3 million after tax) to discontinued operations, resulting from the resolution of certain contingencies. In conjunction with the sale of the business, we provided certain transition services that ceased during the second quarter of fiscal 2020. There were no balance sheet amounts related to discontinued operations at either balance sheet date presented. The results of operations associated with discontinued operations for fiscal 2020, 2019 and 2018 are presented in the following table: (in thousands) February 29, 2020 February 28, 2019 February 28, 2018 (1) Sales revenue, net $ — $ — $ 99,013 Cost of goods sold — — 28,744 Gross profit — — 70,269 Selling, general and administrative expense ("SG&A") — — 72,419 Asset impairment charges (2) — — 132,297 Restructuring charges — — 621 Operating loss — — (135,068 ) Gain (loss) on sale before income tax — (7,257 ) 1,624 Interest expense — — (367 ) Loss before income tax — (7,257 ) (133,811 ) Income tax benefit — 1,578 49,375 Loss from discontinued operations $ — $ (5,679 ) $ (84,436 ) (1) Fiscal 2018 included approximately 9.6 months of operating results prior to the divestiture on December 20, 2017. (2) Impairment charges included goodwill impairment charges of $96.6 million and trademark impairment charges of $35.7 million during fiscal 2018. Total after tax asset impairment charges were $83.5 million |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 29, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7 - Property and Equipment A summary of property and equipment is as follows: Estimated Useful Lives (Years) Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Land — $ 12,644 $ 12,644 Building and improvements 3 — 40 115,592 113,820 Computer, furniture and other equipment 3 — 15 89,257 84,711 Tools, molds and other production equipment 3 — 7 37,652 36,378 Construction in progress — 9,302 6,529 Property and equipment, gross 264,447 254,082 Less accumulated depreciation (132,340 ) (123,744 ) Property and equipment, net $ 132,107 $ 130,338 We recorded $16.1 , $15.7 and $14.9 million of depreciation expense including $4.3 , $4.1 and $3.7 million in cost of goods sold and $11.8 , $11.6 and $11.2 million in SG&A in the consolidated statements of income for fiscal 2020 , 2019 and 2018 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 29, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 8 - Accrued Expenses and Other Current Liabilities A summary of accrued expenses and other current liabilities is as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Accrued compensation, benefits and payroll taxes $ 49,624 $ 36,782 Accrued sales discounts and allowances 34,176 28,655 Accrued sales returns 22,972 23,316 Accrued advertising 31,351 26,549 Other 45,034 49,858 Total accrued expenses and other current liabilities $ 183,157 $ 165,160 |
Drybar Products Acquisition
Drybar Products Acquisition | 12 Months Ended |
Feb. 29, 2020 | |
Business Combinations [Abstract] | |
Drybar Products Acquisition | Note 9 - Drybar Products Acquisition On January 23, 2020, we completed the acquisition of Drybar Products for approximately $255.9 million in cash, subject to certain customary closing adjustments. Acquisition-related expenses incurred during fiscal 2020 were approximately $2.5 million before tax. The purchase price was funded by borrowings under the Company's revolving credit agreement. Drybar is a fast-growing, innovative, trend setting prestige hair care and styling brand in the multi-billion-dollar beauty industry. As part of the transaction, we granted a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Drybar products globally. We accounted for the acquisition as a purchase of a business and recorded the excess purchase price as goodwill. We completed our analysis of the economic lives of the assets acquired and determined the appropriate fair values of the acquired assets. We assigned $30.0 million to trade names and are amortizing over a 15 year expected life. We assigned $17.0 million to customer relationships and are amortizing over a 14.5 year expected life. We used historical attrition rates to assign the expected life. We assigned $10.0 million to a consulting agreement and $6.0 million to a non-compete provision, and we are amortizing these assets over expected lives of 5 and 10 years, respectively. The following schedule presents the net assets recorded upon acquisition of Drybar Products at January 23, 2020: (in thousands) Assets: Receivables $ 7,710 Inventory 16,603 Prepaid expenses and other current assets 190 Property and equipment 1,472 Goodwill 172,933 Trade names - definite 30,000 Other intangible assets - definite 33,000 Subtotal - assets 261,908 Liabilities: Accounts payable 1,948 Accrued expenses 4,099 Subtotal - liabilities 6,047 Net assets recorded $ 255,861 The fair values of the above assets acquired and liabilities assumed were estimated by applying income and market approaches. Key assumptions include various discount rates based upon a 12.6% weighted average cost of capital; royalty rates used in the determination trade names and customer relationships asset values of 5.0% and 3.0% , respectively; and a customer attrition rate used in the determination of customer relationship values of 6.7% per year. The impact of the Drybar Products acquisition on our consolidated statements of income for fiscal 2020 is as follows: January 23, 2020 (acquisition date) though February 29, 2020 (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 6,039 Income from continuing operations 1,483 Earnings per share from continuing operations: Basic $ 0.06 Diluted $ 0.06 The following supplemental unaudited pro forma information presents our financial results as if the Drybar Products acquisition had occurred at the beginning of the fiscal years presented. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred as if the acquisition had been completed on March 1, 2018, and this information is not intended to be indicative of future results: As if the acquisition had been completed on March 1. 2018 (in thousands, except earnings per share data) Fiscal Years Ended the Last Day of February, 2020 2019 Sales revenue, net $ 1,773,592 $ 1,621,117 Income from continuing operations 162,114 179,550 Earnings per share from continuing operations: Basic $ 6.45 $ 6.89 Diluted $ 6.40 $ 6.83 |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note 10 - Goodwill and Intangibles We do not record amortization expense for goodwill or other intangible assets that have indefinite useful lives. Amortization expense is recorded for intangible assets with definite useful lives. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in some of those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Accordingly, the majority of our goodwill is not deductible for tax purposes. We perform annual impairment testing each fiscal year and interim impairment testing, if necessary. We write down any asset deemed to be impaired to its fair value. Our impairment test methodology uses primarily estimated future discounted cash flow models (“DCF Models”). The DCF Models use a number of assumptions including expected future cash flows from the assets, volatility, risk free rate, and the expected life of the assets, the determination of which require significant judgments from management. In determining the assumptions to be used, we consider the existing rates on Treasury Bills, yield spreads on assets with comparable expected lives, historical volatility of our common stock and that of comparable companies, and general economic and industry trends, among other considerations. When stock market or other conditions warrant, we expand our traditional impairment test methodology to give weight to other methods that provide additional observable market information in order to better reflect the current risk level being incorporated into market prices and in order to corroborate the fair values of each of our reporting units. Management will place increased reliance on these additional methods in conjunction with its DCF Models in the event that the total market capitalization of its stock drops below its consolidated stockholders’ equity balance for a sustained period. Considerable management judgment is necessary in reaching a conclusion regarding the reasonableness of fair value estimates, evaluating the most likely impact of a range of possible external conditions, considering the resulting operating changes and their impact on estimated future cash flows, determining the appropriate discount factors to use, and selecting and weighting appropriate comparable market level inputs. The fair values used in our impairment tests are determined using estimated future discounted cash flows and relative market-based data. The valuation techniques utilized assumptions we believed to be appropriate in the circumstances; however, future circumstances attributable to a strategic change in our business could result in changes to those assumptions and other charges or losses relating our segments may be recorded and could be material. We are unable to project the amount of any expense, charge or loss that may be incurred in future periods. Impairment Testing in Fiscal 2020 - We recorded non-cash asset impairment charges related to goodwill and intangible assets of $41.0 million ( $36.4 million after tax). The charges were related to mass market personal care assets within our Beauty segment, which were written down to their estimated fair values, and are classified as assets held for sale. Impairment Testing in Fiscal 2019 - We did not record any impairment charges related to goodwill or intangible assets. Impairment Testing in Fiscal 2018 - As a result of our testing of indefinite-lived trademarks, we recorded non-cash impairment charges of $15.4 million ( $13.8 million after tax). The charges were related to certain mass market personal care trademarks in our Beauty segment, which were written down to estimated fair value. The following tables summarize the changes in our goodwill and intangible assets by segment for fiscal 2020 and 2019 : Balances at February 28, 2019 Year Ended February 29, 2020 Balances at February 29, 2020 (in thousands) Weighted Average Life (Years) Gross Carrying Amount Cumulative Goodwill Impairments Additions Impairments Retirement / Reclassification Adjustments Reclassification to Held for Sale Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization (1) Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ — $ — $ — $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — — — — 134,200 — — 134,200 Other intangibles - finite 13.8 41,417 — 709 — (31 ) — 42,095 — (21,469 ) 20,626 Subtotal 457,673 — 709 — (31 ) — 458,351 — (21,469 ) 436,882 Health & Home: Goodwill 284,913 — — — — — 284,913 — — 284,913 Trademarks - indefinite 54,000 — — — — — 54,000 — — 54,000 Licenses - finite 3.7 17,050 — — — — — 17,050 — (15,752 ) 1,298 Licenses - indefinite 7,400 — — — — — 7,400 — — 7,400 Other Intangibles - finite 5.8 117,967 — 256 — — — 118,223 — (98,142 ) 20,081 Subtotal 481,330 — 256 — — — 481,586 — (113,894 ) 367,692 Beauty: Goodwill 81,841 (46,490 ) 172,933 (25,503 ) — (9,849 ) 244,925 (71,993 ) — 172,932 Trademarks - indefinite 30,407 — — — (30,407 ) — — — — — Trademarks - finite 14.9 150 — 30,000 (11,168 ) 30,407 (15,997 ) 33,392 — (3,564 ) 29,828 Licenses - indefinite 10,300 — — — (10,300 ) — — — — — Licenses - finite 2.8 13,696 — — (4,234 ) 10,300 (6,065 ) 13,697 — (12,800 ) 897 Other intangibles - finite 10.7 46,402 — 33,000 (95 ) — (136 ) 79,171 — (46,549 ) 32,622 Subtotal 182,796 (46,490 ) 235,933 (41,000 ) — (32,047 ) 371,185 (71,993 ) (62,913 ) 236,279 Total $ 1,121,799 $ (46,490 ) $ 236,898 $ (41,000 ) $ (31 ) $ (32,047 ) $ 1,311,122 $ (71,993 ) $ (198,276 ) $ 1,040,853 (1) Reflects the retirement and reclassification of accumulated amortization of $49.4 million related to impaired assets and assets held for sale related to the Personal Care business in the Beauty segment. (in thousands) Weighted Average Life (Years) Balances at February 28, 2018 Year Ended February 28, 2019 Balances at February 28, 2019 Gross Carrying Amount Cumulative Goodwill Impairments Additions Impairments Retirement Adjustments Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ — $ — $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — — — 134,200 — — 134,200 Other intangibles - finite 14.7 40,828 — 684 — (95 ) 41,417 — (19,398 ) 22,019 Subtotal 457,084 — 684 — (95 ) 457,673 — (19,398 ) 438,275 Health & Home: Goodwill 284,913 — — — — 284,913 — — 284,913 Trademarks - indefinite 54,000 — — — — 54,000 — — 54,000 Licenses - finite 4.7 15,300 — 1,750 — — 17,050 — (15,402 ) 1,648 Licenses - indefinite 7,400 — — — — 7,400 — — 7,400 Other Intangibles - finite 5.5 117,586 — 381 — — 117,967 — (87,953 ) 30,014 Subtotal 479,199 — 2,131 — — 481,330 — (103,355 ) 377,975 Beauty: Goodwill 81,841 (46,490 ) — — — 81,841 (46,490 ) — 35,351 Trademarks - indefinite 30,407 — — — — 30,407 — — 30,407 Trademarks - finite 9.6 150 — — — — 150 — (102 ) 48 Licenses - indefinite 10,300 — — — — 10,300 — — 10,300 Licenses - finite 3.8 13,696 — — — — 13,696 — (12,482 ) 1,214 Other intangibles - finite 4.6 46,402 — — — — 46,402 — (46,126 ) 276 Subtotal 182,796 (46,490 ) — — — 182,796 (46,490 ) (58,710 ) 77,596 Total $ 1,119,079 $ (46,490 ) $ 2,815 $ — $ (95 ) $ 1,121,799 $ (46,490 ) $ (181,463 ) $ 893,846 The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the consolidated statements of income for fiscal 2020 , 2019 and 2018 , as well as estimated amortization expense for fiscal 2021 through 2025 : Aggregate Amortization Expense (in thousands) Fiscal 2020 $ 21,271 Fiscal 2019 14,204 Fiscal 2018 18,854 Estimated Amortization Expense (in thousands) Fiscal 2021 $ 16,600 Fiscal 2022 10,276 Fiscal 2023 10,202 Fiscal 2024 9,817 Fiscal 2025 9,130 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Note 11 - Share-Based Compensation Plans During the fiscal year we had equity transactions under one expired and two active share-based compensation plans. The expired plans consist of the 2008 Stock Incentive Plan (the “2008 Stock Incentive Plan”). The active plans consists of the 2018 Stock Incentive Plan (the "2018 Plan") and the 2018 Employee Stock Purchase Plan (the "2018 ESPP"). See the below tables for additional information. The plans are administered by the Compensation Committee of the Board of Directors, which consists of non-employee directors who are independent under the applicable listing standards for companies traded on the NASDAQ Stock Market LLC. On August 22, 2018, our shareholders approved the 2018 Plan. The 2018 Plan permits the granting of stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance stock awards ("PSAs"), performance stock units ("PSUs"), and other stock-based awards. The aggregate number of shares for issuance under the 2018 Plan will not exceed 2,000,000 shares. A summary of shares available for issue under the 2018 Plan follows: Shares originally authorized 2,000,000 Less share awards issued (6,464 ) Plus forfeitures 32,126 Less share awards previously vested and settled — Subtotal 2,025,662 Less RSUs and RSAs issuable upon vesting (1) (259,932 ) Less maximum PSUs and PSAs issuable upon vesting (1) (122,402 ) Shares available for issuance 1,643,328 (1) RSUs, PSUs, RSAs, and PSAs potentially issuable are estimated assuming the maximum payouts adjusted for actual forfeitures to date. The 2018 ESPP: On August 22, 2018, our shareholders approved the 2018 ESPP. The aggregate number of shares of common stock that may be purchased under the 2018 ESPP will not exceed 750,000 shares. Under the terms of the plan, employees may authorize the withholding of up to 15% of their wages or salaries to purchase our shares of common stock, not to exceed $25,000 of the fair market value of such shares for any calendar year. The purchase price for shares acquired under the 2018 ESPP is equal to the lower of 85% of the share's fair market value on either the first day of each option period or the last day of each period. The plan will expire by its terms on September 1, 2028. Shares of common stock purchased under the 2018 ESPP vest immediately at the time of purchase. Accordingly, the fair value award associated with their discounted purchase price is expensed at the time of purchase. During fiscal 2020, there were 14,848 shares purchased under the plan. We recorded share-based compensation expense in SG&A as follows: Fiscal Years Ended Last Day of February, (in thousands, except per share data) 2020 2019 2018 Stock options $ 189 $ 829 $ 1,634 Directors stock compensation 604 526 525 Performance based and other stock awards 21,351 20,047 12,631 Employee stock purchase plan 785 651 264 Share-based compensation expense 22,929 22,053 15,054 Less income tax benefits (1,803 ) (1,395 ) (1,669 ) Share-based compensation expense, net of income tax benefits $ 21,126 $ 20,658 $ 13,385 Continuing operations earnings per share impact of share-based compensation expense: Basic $ 0.84 $ 0.79 $ 0.49 Diluted $ 0.83 $ 0.79 $ 0.49 A summary of our total unrecognized share-based compensation expense as of February 29, 2020 is as follows: (in thousands, except weighted average expense period data) Unrecognized Compensation Expense Weighted Average Period of Recognition (in years) Stock options $ 19 0.6 Restricted stock (RSUs, PSUs, RSAs and PSAs) 18,515 2.0 Stock Options There were no new grants of options made during fiscal 2020, 2019 or 2018. A summary of stock option activity under our expired plans is as follows: (in thousands, except contractual term and per share data) Options Weighted Average Exercise Price (per share) Weighted Average Grant Date Fair Value (per share) Weighted Average Remaining Contractual Term (in years) Intrinsic Value Outstanding at February 28, 2017 448 $ 57.41 $ 20.54 5.0 $ 18,097 Grants — — Exercises (126 ) 52.28 5,400 Forfeitures / expirations (22 ) 72.37 Outstanding at February 28, 2018 300 58.35 32.04 4.3 9,606 Grants — — Exercises (126 ) 49.82 6,414 Forfeitures / expirations (11 ) 80.33 Outstanding at February 28, 2019 163 63.47 48.64 3.6 7,925 Grants — — Exercises (93 ) 57.09 9,059 Forfeitures / expirations (1 ) 87.61 Outstanding at February 29, 2020 69 $ 71.78 $ 92.82 3.2 $ 6,333 Exercisable at February 29, 2020 66 $ 71.10 $ 93.50 3.1 $ 6,157 A summary of non-vested stock option activity and changes under our expired share-based compensation plans follows: (in thousands, except per share data) Non- Vested Options Weighted Average Grant Date Fair Value (per share) Outstanding at February 28, 2017 280 22.48 Grants — — Vested or forfeited (155 ) 25.02 Outstanding at February 28, 2018 125 19.31 Grants — — Vested or forfeited (88 ) 14.67 Outstanding at February 28, 2019 37 $ 30.44 Grants — — Vested or forfeited (35 ) 27.36 Outstanding at February 29, 2020 2 $ 74.09 Director Restricted Stock Awards Under the 2008 Directors’ Plan for fiscal 2019 and 2018, we issued 2,737 and 5,658 shares, respectively, subject to restricted stock awards to non-employee Board members with grant date fair values of $0.2 and $0.5 million, respectively, and share prices of $89.77 and $92.95 respectively. The restricted stock awards vested immediately, were valued at the fair value of our common stock at the date of grant, and accordingly, were expensed at the time of the grants. No restricted stock awards were granted under the 2008 Directors' Plan in fiscal 2020. Under the 2018 Plan, during fiscal 2020 and 2019 we issued 4,336 and 2,128 shares, respectively, subject to restricted stock awards to non-employee Board members with a total grant date fair value of $0.6 million and $0.3 million, respectively, or $139.36 and $131.74 per share, respectively. No restricted stock awards under the 2018 Plan were granted in fiscal 2018. The restricted stock awards vested immediately, were valued at the fair value of our common stock at the date of grant, and accordingly, were expensed at the time of the grants. Restricted Stock Units and Performance Stock Units A summary of Restricted Stock Unit and Performance Stock Unit activity and changes under our equity incentive plans are as follows: Expired Equity Plan Active Equity Plan (in thousands, except per share data) Restricted Stock Units Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Restricted Stock Units Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Outstanding at February 28, 2017 322 81.19 31,418 — — — Granted 262 96.44 — — — Vested or Forfeited (1) (2) (274 ) 78.71 — — — Outstanding at February 28, 2018 310 90.05 27,944 — — — Granted 197 84.02 — 79 125.40 Vested or Forfeited (1) (2) (155 ) 82.19 — (5 ) 124.71 Outstanding at February 28, 2019 352 $ 92.45 $ 32,519 74 $ 125.45 $ 9,202 Granted 49 164.60 — 254 110.92 Vested or Forfeited (1) (2) (192 ) 95.48 — (45 ) 122.55 Outstanding at February 29, 2020 209 $ 90.73 $ 19,010 283 $ 112.85 $ 31,907 (1) The expired equity plan reflects the 2008 Stock Incentive Plan, which expired on August 19, 2018. The active equity plan reflects the 2018 Plan. (2) Under the expired equity plan, 175,022 , 141,541 , and 192,002 RSUs and PSUs vested and settled throughout the year at a weighted average fair values of $95.98 , $81.23 , and $62.88 per share in fiscal 2020, 2019 and 2018, respectively. Under the active equity plan, 20,240 and 900 RSUs vested and settled throughout the year at a weighted average fair value of $125.34 and $120.70 per share in fiscal 2020 and 2019, respectively. Restricted Stock Awards and Performance Stock Awards A summary of Restricted Stock Award and Performance Stock Award activity and changes under our 2018 Plan are as follows: Restricted Stock Awards Performance Stock Awards (2) (in thousands, except per share data) Restricted Stock Awards Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Restricted Stock Awards Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Outstanding at February 28, 2019 — $ — $ — — $ — $ — Granted 49 118.51 — 122 110.85 — Vested or Forfeited (1) (4 ) 123.17 — (4 ) 110.85 — Outstanding at February 29, 2020 45 $ 118.11 $ 5,354 118 $ 110.85 $ 13,130 (1) Under the 2018 Plan, 1,014 Restricted Stock Awards vested and settled throughout the year at a weighted average fair value of $150.86 per share in fiscal 2020. There were no RSAs issued during fiscal 2019. (2) Performance stock awards reflected in the table above assumes target ( 100% ) achievement. These Performance stock awards can be paid out within some range of 0% to 200% |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Feb. 29, 2020 | |
Defined Contribution Plan [Abstract] | |
Defined Contribution Plans | Note 12 - Defined Contribution Plans We sponsor defined contribution savings plans in the U.S. and other countries where we have employees. Total company matching contributions made to these plans for fiscal 2020 , 2019 and 2018 were $4.3 , $4.0 and $3.9 million , respectively. |
Repurchases of Helen of Troy Co
Repurchases of Helen of Troy Common Stock | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Repurchase of Helen of Troy Common Stock | Note 13 - Repurchase of Helen of Troy Common Stock In May 2019, we announced that our Board of Directors had authorized the repurchase of up to $400 million of our outstanding common stock. The authorization is effective May 8, 2019 for a period of three years and replaced Helen of Troy's previous repurchase authorization, of which approximately $107.4 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. As of February 29, 2020, our repurchase authorization allowed for the purchase of $393.0 million of common stock. Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the equity holder can be paid for by having the equity holder tender back to the Company a number of shares at fair value equal to the amounts due. Net exercises are treated as purchases and retirements of shares. The following table summarizes our share repurchase activity for the periods shown: Fiscal Years Ended Last Day of February, (in thousands, except share and per share data) 2020 2019 2018 Common stock repurchased on the open market: Number of shares — 1,875,469 717,300 Aggregate value of shares $ — $ 212,080 $ 65,795 Average price per share $ — $ 113.08 $ 91.73 Common stock received in connection with share-based compensation: Number of shares 77,272 59,024 75,785 Aggregate value of shares $ 10,169 $ 5,413 $ 7,258 Average price per share $ 131.61 $ 91.70 $ 95.77 |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Feb. 29, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Note 14 - Restructuring Plan In October 2017, we announced a restructuring plan (referred to as “Project Refuel”) intended to enhance the performance primarily in the Beauty and former Nutritional Supplements segments. Project Refuel includes charges for a reduction-in-force and the elimination of certain contracts. During the first quarter of fiscal 2019, we expanded Project Refuel to include the realignment and streamlining of our supply chain structure. We are targeting total annualized profit improvements of approximately $9.0 to $11.0 million over the duration of the plan. We estimate the plan to be completed during fiscal 2021 and expect to incur total restructuring charges of approximately $9.5 million . Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically. During fiscal 2020 , we incurred $3.3 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs. Since implementing Project Refuel, we have incurred $8.7 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs as of February 29, 2020 . During fiscal 2020 , we made total cash restructuring payments of $3.8 million and had a remaining liability of $0.8 million as of February 29, 2020 . Since implementing Project Refuel, we have made total cash restructuring payments of $8.0 million as of February 29, 2020 |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Note 15 - Other Commitments and Contingencies Indemnity Agreements – Under agreements with customers, licensors and parties from whom we have acquired assets or entered into business combinations, we indemnify these parties against liability associated with our products. Additionally, we are party to a number of agreements under leases where we indemnify the lessor for liabilities attributable to our actions or conduct. The indemnity agreements to which we are a party do not, in general, increase our liability for claims related to our products or actions and have not materially affected our consolidated financial statements. Employment Contract – We have an employment contract with Mr. Julien Mininberg, our CEO, that was amended and restated on November 7, 2018. The amended and restated agreement, among other things, extended the term of Mr. Mininberg’s employment agreement from March 1, 2019 through February 28, 2023. The agreement provides a base salary, potential incentive bonus and long-term incentive compensation. The agreement also specifies varying levels of salary continuation and/or severance compensation dependent on certain circumstances such as involuntary termination for other than cause or involuntary termination due to a change of control. International Trade – We purchase most of our appliances and a significant portion of other products that we sell from unaffiliated manufacturers located in the Far East, mainly in China. With most of our products being manufactured in the Far East, we are subject to risks associated with global public health crises (such as pandemics and epidemics), trade barriers, the imposition of additional tariffs, currency exchange fluctuations and social, economic and political unrest. In recent years, increasing labor costs, regional labor dislocations driven by new government policies, local inflation, changes in ocean cargo carrier capacity and costs, the impact of energy prices on transportation, and fluctuations in the Chinese Renminbi against the U.S. Dollar have resulted in variability in our cost of goods sold. In the past, certain Chinese suppliers have closed operations due to economic conditions that pressured their profitability. Although we have multiple sourcing partners for certain products, occasionally we may be unable to source certain items on a timely basis due to changes occurring with our suppliers. We believe that we could source similar products outside China, if necessary, and we continuously explore expanding sourcing alternatives in other countries. However, the relocation of any production capacity could require substantial time and increased costs. Customer Incentives – We regularly enter into arrangements with customers whereby we offer various incentives, including incentives in the form of volume rebates. Our estimates of the liabilities for such incentives is included in the accompanying consolidated balance sheets on the line entitled “Accrued expenses and other current liabilities,” and in Note 8 to these consolidated financial statements included in the lines entitled “Accrued sales discounts and allowances” and “Accrued advertising” and are based on incentives applicable to sales occurring up to the respective balance sheet dates. Legal Matters – In May 2018, we settled a patent infringement dispute related to two forehead thermometer models sold by our subsidiary, Kaz USA, Inc., in the United States and made a settlement payment of $15.0 million , which was accrued in prior periods along with related legal fees and other costs. We are involved in various other legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Contractual Obligations and Commercial Commitments – Our contractual obligations and commercial commitments at the end of fiscal 2020 were: Fiscal Years Ended the Last Day of February, 2021 2022 2023 2024 2025 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Floating rate debt $ 340,507 $ 1,900 $ 321,900 $ 1,900 $ 14,807 $ — $ — Interest on floating rate debt (1) 16,653 9,142 7,124 386 1 — — Long-term incentive plan payouts 9,018 5,614 3,404 — — — — Open purchase orders 239,841 239,841 — — — — — Operating Leases 62,876 6,082 5,959 5,601 5,102 5,762 34,370 Minimum royalty payments 55,154 12,823 12,674 13,090 12,381 4,186 — Advertising and promotional 34,228 18,359 9,131 6,738 — — — Capital spending commitments 2,716 1,986 596 134 — — — Total contractual obligations $ 760,993 $ 295,747 $ 360,788 $ 27,849 $ 32,291 $ 9,948 $ 34,370 (1) We estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at February 29, 2020 remain constant into the future. This is an estimate, as actual rates will vary over time. In addition, we assume the revolving credit debt balance outstanding as of February 29, 2020 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 16 - Long Term Debt As of February 29, 2020, we had a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provided for an unsecured total revolving commitment of $1.0 billion . Borrowings accrued interest under one of two alternative methods (based upon a base rate or LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we could elect the interest rate method based on our funding needs at the time. We also incurred loan commitment and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduced the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. We may repay amounts borrowed at any time without penalty. As of February 29, 2020, the outstanding revolving loan principal balance was $320.0 million (excluding prepaid financing fees) and the balance of outstanding letters of credit was $9.0 million . As of February 29, 2020, the amount available for borrowings under the Credit Agreement was $671.0 million . Covenants in the Credit Agreement limit the amount of total indebtedness we could incur. As of February 29, 2020, these covenants did not limit our ability to incur $671.0 million of additional debt under the Credit Agreement. On March 13, 2020, we entered into an amendment to the Credit Agreement. The amendment extended the maturity of the commitment under the Credit Agreement from December 7, 2021 to March 13, 2025. Further, the amendment increased the unsecured revolving commitment from $1.0 billion to $1.25 billion . The accordion was amended to increase it from $200 million to $300 million and to include the ability to use it for term loan commitments. The accordion permits the Company to request to increase its borrowing capacity, not to exceed the $300 million commitment in the aggregate, provided certain conditions are met, including lender approval. Any increase to term loan commitments and revolving loan commitments must be made on terms identical to the revolving loans under the Credit Agreement and must have a maturity date of no earlier than March 13, 2025. Following the amendment, borrowings under the Credit Agreement bear interest at either the base rate or LIBOR, plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.0% and 1.0% to 2.0% , respectively, for base rate and LIBOR borrowings. On March 24, 2020, we borrowed approximately $200 million under the Credit Agreement as part of a comprehensive precautionary approach to increase our cash position and maximize our financial flexibility in light of the current volatility in the global markets resulting from the COVID-19 outbreak. After giving effect to the borrowing, the remaining amount available for borrowings under the Credit Agreement was $536.4 million and our cash and cash equivalents on hand was approximately $393.0 million . As described above, covenants in our debt agreements can limit the amount of indebtedness we can incur. We may repay amounts borrowed at any time without penalty. A summary of our long-term debt follows: (dollars in thousands) February 29, 2020 February 28, 2019 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) $ 20,451 $ 22,335 Credit Agreement (2) 318,854 298,449 Total long-term debt 339,305 320,784 Less current maturities of long-term debt (1,884 ) (1,884 ) Long-term debt, excluding current maturities $ 337,421 $ 318,900 (1) The MBFC Loan is unsecured and bears floating interest based on either LIBOR plus a margin of up to 2.0% , or a Base Rate plus a margin of up to 1.0% , as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement (see Notes 17 and 18 regarding interest rate swaps). At February 29, 2020 and February 28, 2019 our long-term debt has floating interest rates, and its book value approximates its fair value. All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain financial covenants, including maximum leverage ratios, minimum interest coverage ratios and minimum consolidated net worth levels (as each of these terms is defined in the various agreements). Our debt agreements also contain other customary covenants. We were in compliance with the terms of these agreements as of February 29, 2020 . The following table contains information about interest rates on our Credit Agreement and the related weighted average borrowings outstanding for the periods covered by our consolidated statements of income: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Average borrowings outstanding (1) $ 286,640 $ 290,860 $ 382,960 Average interest rate during each year (2) 3.2 % 3.2 % 2.7 % Interest rate range during each year 2.6% - 5.5% 2.8% - 5.5% 2.3 - 4.8% Weighted average interest rates on borrowings outstanding at year end 2.7 % 3.6 % 2.9 % (1) Average borrowings outstanding is computed as the average of the current and four prior quarters ending balances of our credit facility. (2) The average interest rate during each year is computed by dividing the total interest expense associated with the Credit Agreement for a fiscal year by the average borrowings outstanding for the same fiscal year. The following table contains a summary of the components of our interest expense for the periods covered by our consolidated statements of income: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Interest and commitment fees $ 10,970 $ 11,366 $ 13,084 Deferred finance costs 1,620 1,015 887 Interest rate swap settlements, net 262 (515 ) 54 Cross-currency debt swap (147 ) (147 ) (74 ) Total interest expense $ 12,705 $ 11,719 $ 13,951 |
Fair Value
Fair Value | 12 Months Ended |
Feb. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 17 - Fair Value We classify our various assets and liabilities recorded or reported at fair value under a hierarchy prescribed by GAAP that prioritizes inputs to fair value measurement techniques into three broad levels: • Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; • Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assets and liabilities subject to classification are classified upon acquisition. When circumstances dictate the transfer of an asset or liability to a different level, our policy is to recognize the transfer at the beginning of the reporting period in which the event resulting in the transfer occurred. The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the last day of February 2020 and 2019 : Fair Values at February 29, 2020 (in thousands) (level 2) (1) Assets: Money market accounts $ 2,648 Interest rate swaps — Foreign currency contracts 2,083 Total assets $ 4,731 Liabilities: Floating rate debt $ 339,305 Interest rate swaps 10,717 Foreign currency contracts 159 Total liabilities $ 350,181 Fair Values at February 28, 2019 (in thousands) (level 2) (1) Assets: Money market accounts $ 915 Interest rate swap 512 Foreign currency contracts 1,692 Total assets $ 3,119 Liabilities: Floating rate debt 320,784 Interest rate swap 339 Foreign currency contracts 563 Total liabilities $ 321,686 (1) Our financial assets and liabilities are classified as Level 2 assets because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items. We use derivatives for hedging purposes and our derivatives are primarily interest rate swaps, foreign currency contracts, zero cost collars and cross-currency debt swaps (see Notes 1 , 18 and 19 for more information on our hedging activities). We classify our floating rate debt as a Level 2 item because the estimation of the fair market value of these financial assets requires the use of current market rates of interest for obligations with comparable remaining terms. Such comparable rates are considered significant other observable market inputs. Our debt has floating interest rates and its book value approximates its fair value as of the reporting date. Our other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of our impairment testing. Note 10 to these consolidated financial statements contains additional information regarding impairment testing and related intangible asset impairments. The table below presents other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) for fiscal 2020 and 2019 : Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Beginning balances $ 893,846 $ 905,235 Total income (expense): Included in net income - realized (62,287 ) (14,109 ) Acquired during the period 236,898 2,815 Retirement adjustments during the period (31 ) (95 ) Reclassification to assets held for sale (27,573 ) — Ending balances $ 1,040,853 $ 893,846 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Feb. 29, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments and Risk Management | Note 18 - Financial Instruments and Risk Management Foreign Currency Risk – Our functional currency is the U.S. Dollar. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales, certain inventory purchases and operating expenses. As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies. For fiscal 2020 , approximately 14% of our net sales revenue was in foreign currency. These sales were primarily denominated in British Pounds, Euros, Mexican Pesos and Canadian Dollars. We make most of our inventory purchases from the Far East and primarily use the U.S. Dollar for such purchases. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A. We recorded net exchange gains (losses) from foreign currency fluctuations, including the impact of currency hedges and the cross-currency debt swap, of $2.2 , $1.3 and $(3.1) million in SG&A during fiscal 2020 , 2019 and 2018 , respectively. We hedge against certain foreign currency exchange rate-risk by using a series of forward contracts and zero-cost collars designated as cash flow hedges and mark-to-market derivatives to protect against the foreign currency exchange risk inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. We do not enter into any forward exchange contracts or similar instruments for trading or other speculative purposes. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A in the same period they are settled. The ineffective portion, which is not material for any year presented, is immediately recognized in SG&A. Interest Rate Risk – Interest on our outstanding debt as of February 29, 2020 is based on floating interest rates. If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225.0 million of the outstanding principal balance under the Credit Agreement, which totaled $320.0 million as of February 29, 2020 . The following table summarizes the fair values of our various derivative instruments at the end of fiscal 2020 and 2019 : February 29, 2020 (in thousands) Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities Non-current Zero-cost collar - Euro Cash flow 2/2021 €8,000 $ 74 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 5/2021 €25,875 837 — — 15 Foreign currency contracts - sell Canadian Dollars Cash flow 2/2021 $14,000 202 — — — Zero-cost collar - Pounds Cash flow 2/2021 £6,500 — — 144 — Foreign currency contracts - sell Pounds Cash flow 5/2021 £13,000 435 23 — — Foreign currency contracts - sell Mexican Pesos Cash flow 5/2020 $10,000 12 — — — Interest rate swaps Cash flow 1/2024 $225,000 — — 3,489 7,228 Subtotal 1,560 23 3,633 7,243 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 €5,280 473 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £6,395 27 — — — Subtotal 500 — — — Total fair value $ 2,060 $ 23 $ 3,633 $ 7,243 February 28, 2019 (in thousands) Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities Non-current Zero-cost collar - Euro Cash flow 2/2020 €9,500 $ 11 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 2/2020 €29,000 1,047 — — — Foreign currency contracts - sell Canadian Dollars Cash flow 2/2020 $16,000 168 — — — Zero-cost collar - Pounds Cash flow 5/2020 £4,500 — — 200 — Foreign currency contracts - sell Pounds Cash flow 5/2020 £19,500 248 — — 13 Foreign currency contracts - sell Mexican Pesos Cash flow 9/2019 $30,000 — — 58 — Interest rate swaps Cash flow 1/2024 $225,000 512 — — 339 Subtotal 1,986 — 258 352 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap - Euro (1) 04/2020 €5,280 — 218 — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £6,395 — — — 292 Subtotal — 218 — 292 Total fair value $ 1,986 $ 218 $ 258 $ 644 (1) These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. The pre-tax effect of derivative instruments for fiscal 2020 and 2019 is as follows: Years Ended Last Day of February, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ (2,756 ) $ (94 ) SG&A $ (2,977 ) $ (2,488 ) $ — $ — Interest rate swaps - cash flow hedges (10,890 ) (2,308 ) Interest expense — — Interest expense (262 ) 515 Cross-currency debt swaps - principal — — — — SG&A 574 700 Cross-currency debt swaps - interest — — — — Interest Expense 147 147 Total $ (13,646 ) $ (2,402 ) $ (2,977 ) $ (2,488 ) $ 459 $ 1,362 We expect a loss of $2.1 million associated with foreign currency contracts and interest rate swaps currently reported in accumulated other comprehensive income, to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates change and the underlying contracts settle. See Notes 1 , 17 and 19 to these consolidated financial statements for more information on our hedging activities. Counterparty Credit Risk – Financial instruments, including foreign currency contracts, cross-currency debt swaps and interest rate swaps, expose us to counterparty credit risk for nonperformance. We manage our exposure to counterparty credit risk by dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote. Risks Inherent in Cash and Cash Equivalents – As the levels of our cash and cash equivalents change, they can become more subject to foreign exchange rate risk, interest rate risk, credit risk, and liquidity risk. Cash consists of interest-bearing, non-interest-bearing and short-term investment accounts. We consider money market accounts to be cash equivalents. The following table summarizes our cash and cash equivalents at the end of fiscal 2020 and 2019 : Fiscal Years Ended Last Day of February 2020 2019 (in thousands) Carrying Amount Range of Interest Rates Carrying Amount Range of Interest Rates Cash, interest and non-interest-bearing accounts $ 21,819 0.00 to 0.30% $ 10,956 0.00 to 0.30% Money market funds 2,648 0.15% to 5.39% 915 0.00 to 1.25% Total cash and cash equivalents $ 24,467 $ 11,871 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Feb. 29, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 19 - Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component and related tax effects for fiscal 2020 and 2019 were as follows: (in thousands) Interest Rate Swaps Foreign Currency Contracts Total Balance at February 28, 2018 $ 1,705 $ (1,074 ) $ 631 Other comprehensive income (loss) before reclassification (2,308 ) (94 ) (2,402 ) Amounts reclassified out of accumulated other comprehensive income — 2,488 2,488 Tax effects 735 (261 ) 474 Other comprehensive income (loss) (1,573 ) 2,133 560 Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive income (loss) before reclassification (10,890 ) (2,756 ) (13,646 ) Amounts reclassified out of accumulated other comprehensive income — 2,977 2,977 Tax effects 2,559 (86 ) 2,473 Other comprehensive income (loss) (8,331 ) 135 (8,196 ) Balance at February 29, 2020 $ (8,199 ) $ 1,194 $ (7,005 ) See Notes 1 , 17 and 18 to these consolidated financial statements for additional information regarding our hedging activities. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Note 20 - Segment and Geographic Information The following table contains segment information included in continuing operations. SEGMENT INFORMATION (in thousands) Fiscal 2020 Housewares Health & Home Beauty (1) Total Sales revenue, net $ 640,965 $ 685,397 $ 381,070 $ 1,707,432 Asset impairment charges — — 41,000 41,000 Restructuring charges 1,351 93 1,869 3,313 Operating income 123,135 68,166 (13,050 ) 178,251 Identifiable assets (2) 723,491 652,390 528,002 1,903,883 Capital and intangible asset expenditures 10,602 5,853 1,304 17,759 Depreciation and amortization 7,298 16,113 13,998 37,409 (in thousands) Fiscal 2019 Housewares Health & Home Beauty Total Sales revenue, net $ 523,807 $ 695,217 $ 345,127 $ 1,564,151 Asset impairment charges — — — — Restructuring charges 926 686 1,974 3,586 Operating income 100,743 68,448 30,188 199,379 Identifiable assets 698,519 686,335 264,481 1,649,335 Capital and intangible asset expenditures 16,023 8,508 1,854 26,385 Depreciation and amortization 6,048 17,058 6,821 29,927 (in thousands) Fiscal 2018 Housewares Health & Home Beauty Total Sales revenue, net $ 459,004 $ 674,062 $ 345,779 1,478,845 Asset impairment charges — — 15,447 15,447 Restructuring charges 220 — 1,637 1,857 Operating income 89,319 62,099 17,644 169,062 Identifiable assets 664,622 675,627 283,468 1,623,717 Capital and intangible asset expenditures 8,537 3,716 1,352 13,605 Depreciation and amortization 5,825 16,750 11,155 33,730 (1) Includes approximately five weeks of operating results from the Drybar Products acquisition, which was completed on January 23, 2020. (2) Includes assets held for sale of $44,806 related to the Personal Care business in our Beauty segment (see Note 5) We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment. We have reallocated corporate overhead expenses to the above continuing segments that were previously allocated to our former Nutritional Supplements segment. We do not allocate nonoperating income and expense, including interest or income taxes, to operating segments. GEOGRAPHIC INFORMATION The following table provides net sales revenue by geographic region, in U.S. Dollars: Fiscal Years Ended (in thousands) 2020 2019 (1) 2018 (1) Sales revenue, net by geographic region United States $ 1,357,345 79.5 % $ 1,221,806 78.1 % $ 1,161,698 78.6 % Canada 71,417 4.2 % 66,855 4.3 % 58,856 4.0 % EMEA 138,858 8.1 % 143,024 9.1 % 143,668 9.7 % Asia Pacific 99,378 5.8 % 90,073 5.8 % 75,376 5.1 % Latin America 40,434 2.4 % 42,393 2.7 % 39,247 2.7 % Total sales revenue, net $ 1,707,432 100 % $ 1,564,151 100 % $ 1,478,845 100 % (1) We adopted ASU 2014-09, Revenue of Contracts with Customers (Topic 606) in the first quarter of fiscal 2019 and have reclassified amounts in the prior year’s statements of income to conform to the current period’s presentation (see Note 3 ). Worldwide sales to our largest customer accounted for approximately 18% , 16% and 13% of our consolidated net sales revenue in fiscal 2020 , 2019 and 2018 , respectively. Sales to our second largest customer accounted for approximately 14% , 16% and 17% of our consolidated net sales revenue in fiscal 2020 , 2019 and 2018, respectively. Sales to our third largest customer did not account for 10% or more of our consolidated net sales revenue in fiscal 2020, however, did account for 10% of our consolidated net sales revenue in fiscal 2019 and 2018, respectively. No other customers accounted for 10% or more of consolidated net sales revenue during those fiscal years. Sales to our top five customers accounted for approximately 50% , 51% and 49% of our consolidated net sales revenue in fiscal 2020 , 2019 and 2018, respectively. Our domestic and international long-lived assets were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 United States $ 453,784 $ 416,521 $ 437,920 International: Barbados 606,261 499,589 496,258 Other international 161,002 128,566 131,831 Subtotal 767,263 628,155 628,089 Total $ 1,221,047 $ 1,044,676 $ 1,066,009 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 29, 2020 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 21 - Selected Quarterly Financial Data (Unaudited) Selected unaudited quarterly financial data is as follows (in thousands except share data): SELECTED QUARTERLY FINANCIAL DATA Fiscal Year 2020: May August November February Total Sales revenue, net $ 376,335 $ 413,995 $ 474,737 $ 442,365 $ 1,707,432 Gross profit 153,727 178,151 209,973 192,615 734,466 Asset impairment charges — — — 41,000 41,000 Restructuring charges 619 430 12 2,252 3,313 Income (loss) from continuing operations 40,694 46,095 68,699 (3,155 ) 152,333 Loss from discontinued operations — — — — — Earnings (loss) per share (1) Basic Continuing operations $ 1.63 $ 1.84 $ 2.73 $ (0.13 ) $ 6.06 Discontinued operations — — — — — Total earnings (loss) per share $ 1.63 $ 1.84 $ 2.73 $ (0.13 ) $ 6.06 Diluted Continuing operations $ 1.61 $ 1.83 $ 2.71 $ (0.13 ) $ 6.02 Discontinued operations — — — — — Total earnings (loss) per share $ 1.61 $ 1.83 $ 2.71 $ (0.13 ) $ 6.02 Fiscal Year 2019: May August November February Total Sales revenue, net $ 354,679 $ 393,548 $ 431,081 $ 384,843 $ 1,564,151 Gross profit 146,558 155,173 181,845 157,530 641,106 Asset impairment charges — — — — — Restructuring charges 1,725 859 25 977 3,586 Income from continuing operations 38,173 44,017 54,320 37,714 174,224 Loss from discontinued operations (381 ) — (4,850 ) (448 ) (5,679 ) Earnings (loss) per share (1) Basic Continuing operations $ 1.44 $ 1.67 $ 2.08 $ 1.49 $ 6.68 Discontinued operations (0.01 ) — (0.19 ) (0.02 ) (0.22 ) Total earnings per share $ 1.42 $ 1.67 $ 1.90 $ 1.47 $ 6.46 Diluted Continuing operations $ 1.43 $ 1.66 $ 2.06 $ 1.47 $ 6.62 Discontinued operations (0.01 ) — (0.18 ) (0.02 ) (0.22 ) Total earnings per share $ 1.42 $ 1.66 $ 1.88 $ 1.45 $ 6.41 (1) Earnings per share calculations for each quarter are based on the weighted average number of shares outstanding for each period, and the sum of the quarterly amounts may not necessarily equal the annual earnings per share amounts. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 22 - Income taxes We reorganized the Company in Bermuda in 1994 and many of our foreign subsidiaries are not directly or indirectly owned by a U.S. parent. As such, a large portion of our foreign income is not subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. The taxable income earned in each jurisdiction, whether U.S. or foreign, is determined by the subsidiary's operating results, and transfer pricing and tax regulations in the related jurisdictions. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted signed into law. The CARES Act is an emergency economic stimulus package in response to the COVID-19 outbreak, which contains numerous tax provisions. Among other things, the CARES Act amended the net operating loss provisions and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. We are currently evaluating the impact of the CARES Act and will begin to reflect any impact during the period of enactment, which is our first quarter of fiscal 2021. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. Among other changes, the Tax Act lowered the U.S. statutory corporate income tax rate from 35% to 21% and established a modified territorial system requiring a mandatory deemed repatriation tax on undistributed earnings of certain foreign subsidiaries. The rate change was effective at the beginning of calendar year 2018 and, as a result, we were subject to a blended U.S. federal statutory tax rate of 32.7% for our fiscal 2018 and a tax rate of 21% for subsequent periods. Under accounting standards for income taxes, the impact of new tax legislation must be taken into account in the period in which it is enacted. Subsequent to the Tax Act, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”) allowing companies to use provisional estimates to record the effects of the Tax Act. SAB 118 also provides a measurement period (not to exceed one year from the date of enactment) to complete the accounting for the impacts of the Tax Act. As a result of the enactment, we recorded a provisional tax charge of $17.9 million in fiscal 2018 related to the one-time remeasurement of our U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, the one-time repatriation tax applied to our undistributed foreign earnings and the impact of executive compensation that is no longer deductible under the Tax Act. In accordance with SAB 118, we completed the accounting for the tax effects of the Tax Act and recorded immaterial adjustments to the provisional tax charge during the fourth quarter of fiscal 2019. The Tax Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The Company elected to account for the tax on GILTI as a period cost and therefore has not recorded deferred taxes related to GILTI on its foreign subsidiaries. In connection with the enactment of the Tax Act, we repatriated $48.3 million of cash held in our U.S. owned foreign subsidiaries without such funds being subject to further U.S. federal income tax. As of February 29, 2020 , we had approximately $22.3 million of undistributed earnings in these U.S. owned foreign subsidiaries. While U.S. federal tax expense has been recognized as a result of the Tax Act, no deferred tax liabilities with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes or state taxes have been recognized. No deferred taxes have been provided on the undistributed earnings of our subsidiaries since these earnings will continue to be permanently reinvested. Due to the number of legal entities and jurisdictions involved, our legal entity structure, and the tax laws in the relevant jurisdictions, we believe it is not practicable to estimate the amount of additional taxes which may be payable upon distribution of these undistributed earnings. Our components of income before income tax expense are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 U.S. $ 40,146 $ 32,135 $ 23,824 Non-U.S. 125,794 155,865 131,614 Total $ 165,940 $ 188,000 $ 155,438 Our components of income tax expense (benefit) are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 U.S. Current $ 16,732 $ 2,460 $ 3,380 Deferred (4,789 ) 10,480 19,578 11,943 12,940 22,958 Non-U.S. Current 2,571 2,102 1,912 Deferred (907 ) (1,266 ) 1,686 1,664 836 3,598 Total $ 13,607 $ 13,776 $ 26,556 Our total income tax expense differs from the amounts computed by applying the U.S. statutory tax rate to income before income taxes. A income tax rate reconciliation of these differences are as follows: Fiscal Years Ended Last Day of February, 2020 2019 2018 Effective income tax rate at the U.S. statutory rate 21.0 % 21.0 % 32.7 % Impact of U.S. state income taxes 1.6 % 1.2 % 0.5 % Effect of statutory tax rate in Macau (13.6 )% (10.3 )% (19.5 )% Effect of statutory tax rate in Barbados (5.5 )% (5.9 )% (5.2 )% Effect of statutory tax rate in Europe (0.4 )% (1.9 )% (5.3 )% Effect of income from other non-U.S. operations subject to varying rates 2.3 % 1.8 % 2.1 % Effect of foreign exchange fluctuations 0.7 % 0.2 % 0.3 % Effect of asset impairment charges 2.4 % — % 2.2 % Effect of U.S. tax reform — % (0.1 )% 11.5 % Effect of uncertain tax positions (1.7 )% (0.6 )% (1.3 )% Effect of nondeductible executive compensation 1.4 % 0.9 % 0.6 % Effect of base erosion and anti-abuse tax — % 1.0 % — % Other items — % — % (1.5 )% Effective income tax rate 8.2 % 7.3 % 17.1 % Our Macau subsidiary generates income from the sale of the goods that it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We currently have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. The Macau Offshore Law and its supplementary regulations that grant tax incentives to approved offshore institutions will be abolished on January 1, 2021. Existing approved offshore institutions such as ours can continue to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, we believe our Macau subsidiary will become subject to a statutory corporate income tax of approximately 12%. The ultimate impact of this change, if any, on our overall effective tax rate will depend on a variety of factors including our mix of income by jurisdiction, transfer pricing considerations and the specific tax regulations applicable to us when we are no longer under the Macau Offshore regime. It is not practicable for us to determine the potential impact on our financial statements until the tax changes in Macau are fully established and our transfer pricing analysis is complete. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau. Each year there are significant transactions or events that are incidental to our core businesses and that by a combination of their nature and jurisdiction, can have a disproportionate impact on our reported effective tax rates. Without these transactions or events, the trend in our effective tax rates would follow a more normalized pattern. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of the last day of February 2020 and 2019 are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Deferred tax assets, gross: Operating loss carryforwards $ 13,908 $ 18,300 Accounts receivable 5,467 4,680 Inventories 8,751 7,806 Operating lease liabilities 10,451 — Accrued expenses and other 7,692 8,293 Total gross deferred tax assets 46,269 39,079 Valuation allowance (14,073 ) (17,086 ) Deferred tax liabilities: Operating lease assets (7,573 ) — Depreciation and amortization (14,212 ) (19,750 ) Total deferred tax assets, net $ 10,411 $ 2,243 In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the scheduled reversal of deferred tax liabilities, expected future taxable income and tax planning strategies in assessing the ultimate realization of deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not be recoverable. In fiscal 2020 , the $3.0 million net decrease in our valuation allowance was principally due to a reduction in the value of the operating loss carryforwards to be used in the future. The composition of our operating loss carryforwards at the end of fiscal 2020 is as follows: February 29, 2020 (in thousands) Tax Year Expiration Date Range Deferred Tax Assets Operating Loss Carryforward U.S. state operating loss carryforward 2028-2038 245 4,149 Non-U.S. operating loss carryforwards with definite carryover periods 2021-2037 1,823 6,917 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 11,840 43,369 Subtotals 13,908 $ 54,435 Less portion of valuation allowance established for operating loss carryforwards (13,406 ) Total $ 502 Any future amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income during any carryforward periods are reduced. During fiscal 2020 and 2019 , changes in the total amount of unrecognized tax benefits were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Total unrecognized tax benefits, beginning balance $ 3,205 $ 4,428 Resolution of tax dispute — — Changes in tax positions taken during a prior period (2,819 ) 15 Lapse in statute of limitations — (1,057 ) Impact of foreign currency re-measurement — (161 ) Settlements (273 ) (20 ) Total unrecognized tax benefits, ending balance 113 3,205 Less current unrecognized tax benefits — (316 ) Noncurrent unrecognized tax benefits $ 113 $ 2,889 Included in the balance of unrecognized tax benefits at the end of fiscal 2019 were $3.2 million (includes interest) of tax benefits, which were principally reversed during fiscal 2020. We do not expect any significant changes to our existing unrecognized tax benefits during the next twelve months resulting from any issues currently pending with tax authorities. We classify interest and penalties on uncertain tax positions as income tax expense. At the end of fiscal 2020 and 2019 , the liability for tax-related interest and penalties included in unrecognized tax benefits was $0.1 and $0.6 million , respectively. Additionally, during fiscal 2020 , 2019 and 2018 we recognized tax benefits from tax-related interest and penalties of $0.5 , $0.5 and $0.5 million , respectively, in the consolidated statements of income. We file income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. We do not expect that any proposed adjustments from these tax jurisdictions will have a material impact on our consolidated financial statements. As of February 29, 2020 , tax years under examination or still subject to examination by material tax jurisdictions are as follows: Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2019 — 2020 United States 2017 - 2018 2017 — 2020 Switzerland - None - 2016 — 2020 Hong Kong - None - 2014 — 2020 During fiscal 2017 we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure. We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state. We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Feb. 29, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 23 - Earnings Per Share We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested RSUs, PSUs, RSAs, PSAs and other stock-based awards (see Note 11). Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. For fiscal 2020 , 2019 and 2018 , the components of basic and diluted shares were as follows: WEIGHTED AVERAGE DILUTED SECURITIES Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Weighted average shares outstanding, basic 25,118 26,073 27,077 Incremental shares from share-based compensation arrangements 204 230 177 Weighted average shares outstanding, diluted 25,322 26,303 27,254 Antidilutive securities 197 262 319 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 24 - Subsequent Events On March 13, 2020, the President of the United States announced a National Emergency relating to COVID-19. There is a possibility of widespread infection in the U.S. and abroad, with the potential for catastrophic impact. As a result of these and other effects of COVID-19, we expect the current public health crisis to adversely impact our business, which may be material. The impact includes the effect of temporary closures of, and limited hours of operation and materially lower store traffic at, customer stores. The COVID-19 pandemic is also impacting our third-party manufacturers, most of which are located in the Far East, principally China. The extent of the impact of COVID-19 on our business and financial results will depend largely on future developments, including the duration of the spread of the COVID-19 outbreak within the U.S. and globally, the impact on capital and financial markets and the related impact on consumer confidence and spending. These future developments are outside of our control, are highly uncertain and cannot be predicted. If the impact is prolonged, then it can further increase the difficulty of planning for operations. These and other potential impacts of the current public health crisis could therefore materially and adversely affect our business, financial condition, cash flows and results of operations. This situation is changing rapidly, and additional impacts may arise that we are currently not aware of. Accordingly, the results for the first quarter of fiscal 2021 and the full fiscal 2021 could also be impacted in ways that we are not able to predict today, including, but not limited to, non-cash write-downs and asset impairment charges (including impairments on goodwill and other indefinite-lived intangible assets). On March 13, 2020, we entered into an amendment to the Credit Agreement. The amendment extended the maturity of the commitment under the Credit Agreement from December 7, 2021 to March 13, 2025. Further, the amendment increased the unsecured revolving commitment from $1.0 billion to $1.25 billion . See Note 16. On March 24, 2020, we borrowed approximately $200 million under the Credit Agreement as part of a comprehensive precautionary approach to increase our cash position and maximize our financial flexibility in light of the current volatility in the global markets resulting from the COVID-19 outbreak. After giving effect to the borrowing, the remaining amount available for borrowings under the Credit Agreement was $536.4 million and our cash and cash equivalents on hand was approximately $393.0 million . Covenants in our debt agreements can limit the amount of indebtedness we can incur. We may repay amounts borrowed at any time without penalty. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 29, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | HELEN OF TROY LIMITED AND SUBSIDIARIES Schedule II - Valuation and Qualifying Accounts (in thousands) Beginning Balance Additions (1) Deductions (2) Ending Balance Year Ended February 28, 2018 Allowances for doubtful accounts $ 3,266 $ 1,066 $ 1,420 $ 2,912 Year Ended February 28, 2019 Allowances for doubtful accounts $ 2,912 $ 1,097 $ 1,977 $ 2,032 Year Ended February 29, 2020 Allowances for doubtful accounts $ 2,032 $ 529 $ 1,100 $ 1,461 All amounts presented above have been restated to exclude the impact of our discontinued operations. (1) Represents periodic charges to the provision for doubtful accounts. (2) Represents write-offs of doubtful accounts, net of recoveries of previously reserved amounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Related Information (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
General | General When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. As of February 29, 2020 , we operated three segments: Housewares, Health & Home, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage and food containers. The Health & Home segment focuses on healthcare devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. On December 20, 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements (see Note 6 ). All other footnotes present results from continuing operations. On January 23, 2020, we completed the acquisition of Drybar Products LLC ("Drybar Products"), for approximately $255.9 million in cash, subject to certain customary closing adjustments. Drybar Products is a fast-growing, innovative, trend setting prestige hair care and styling brand in the multi-billion-dollar beauty industry. As part of the transaction, Helen of Troy granted a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Drybar products globally (see Note 9 ). During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our mass market personal care business. The assets to be disposed of include intangible assets, inventory and fixed assets relating to our mass channel liquids, powder and aerosol products including brands such as Pert, Brut, Sure and Infusium. We expect the divestiture to occur within fiscal 2021. Accordingly, we have classified the identified assets of the disposal group as held for sale (see Note 5 ). Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Our consolidated financial statements are prepared in United States (“U.S.”) Dollars. All intercompany accounts and transactions are eliminated in consolidation. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation, including discontinued operations (see Note 6 |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts to be cash equivalents. |
Receivables | Receivables Our receivables are comprised of trade credit granted to customers, primarily in the retail industry, offset by an allowance for doubtful receivables. Our allowance for doubtful receivables reflects our best estimate of probable losses, determined principally based on historical experience and specific allowances for known at-risk accounts. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. |
Foreign currency transactions and related derivative financial instruments | Foreign currency transactions and related derivative financial instruments The U.S. Dollar is the functional currency for the Company and all of its subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions involving other currencies have been re-measured in U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts, zero-cost collars and cross-currency swaps to exchange foreign currencies for U.S. Dollars at specified rates. Derivatives for which we have elected and qualify for hedge accounting, are recorded on the balance sheet at their fair value and changes in the fair value of the forward exchange contracts and zero cost collars are recorded each period in our consolidated statements of comprehensive income until the underlying hedge transaction is settled, at which point changes in fair value are recorded in our consolidated statements of income. For derivatives which we have not elected, or do not qualify for, hedge accounting, changes in the fair value of the contracts are recorded each period in our consolidated statements of income. We evaluate all hedging transactions each quarter to determine that they remain effective. Any material ineffectiveness is recorded as part of SG&A in our consolidated statements of income. |
Inventory and cost of goods sold | Inventory and cost of goods sold Our inventory consists almost entirely of finished goods. Inventories are stated at the lower of average costs or net realizable value. We write down a portion of our inventory to net realizable value based on the historical success of product lines and estimates about future demand and market conditions, among other factors. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. General and administrative expenses in inventory include all the expenses of operating our sourcing activities and expenses incurred for production monitoring, product design, engineering, and packaging. We charged $44.6 , $47.7 , and $43.2 million of such general and administrative expenses to inventory during fiscal 2020 , 2019 and 2018 , respectively. We estimate that $16.0 and $15.6 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 29, 2020 and February 28, 2019 , respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. |
Property and equipment | Property and equipment These assets are stated at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. |
License agreements, trademarks, patents and other intangible assets | License agreements, trademarks, patents, and other intangible assets A significant portion of our sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. We capitalize costs incurred to renew or extend the term of a license agreement and amortize such costs on a straight-line basis over the remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our consolidated statements of income in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 43% , 41% and 45% of consolidated net sales revenue for fiscal 2020 , 2019 and 2018 , respectively. During fiscal 2020 , three license agreements accounted for net sales revenue subject to royalty payments of approximately 14% , 11% and 10% of consolidated net sales, respectively. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In some instances, we have determined that such acquired assets have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through acquisition, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 14 years. Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either through outside appraisal or by the term of any controlling agreements. |
Goodwill, intangible and other long-lived assets and related impairment testing | Goodwill, intangible and other long-lived assets and related impairment testing Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). We measure the amount of any goodwill impairment based upon the estimated fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets and estimates of the implied fair value of goodwill. An impairment charge is recognized to the extent the recorded goodwill exceeds the implied fair value of goodwill. We complete our analysis of the carrying value of our goodwill and other intangible assets annually, or whenever events or changes in circumstances indicate their carrying value may not be recoverable. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If the analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. These steps entail significant amounts of judgment and subjectivity. |
Economic useful lives and amortization of intangible assets | Economic useful lives and amortization of intangible assets We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset's economic useful life is deemed indefinite, that asset is not amortized. We review the economic useful lives of our intangible assets at least annually. Intangible assets consist primarily of goodwill, license agreements, trademarks, brand assets, customer lists, distribution rights, patents, and patent licenses. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 5 to 30 |
Sales Returns | Sales Returns We allow for sales returns for defects in material and workmanship for periods ranging from two to five years . We recognize an allowance for sales returns to reduce sales to reflect our best estimate of future customer returns, determined principally based on historical experience and specific allowances for known pending returns. |
Financial instruments | Financial instruments |
Income taxes and uncertain tax positions | Income taxes and uncertain tax positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed and disclose as a separate liability in our financial statements, including related accrued interest and penalties. |
Revenue recognition | Shipping and handling revenue and expense Revenue recognition We adopted the provisions of ASU 2014-9 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue when control of, and title to, the product sold transfers to the customer. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. We offer our customers certain incentives in the form of volume rebates, product markdown allowances, trade discounts, cash discounts, slotting fees, and other similar arrangements which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. These programs are generally recorded as reductions of net sales revenue. In instances when we purchase a distinct good or service from our customer and fair value can be reasonably estimated, these amounts are expensed in our consolidated statements of income in SG&A. The amount of consideration granted to customers recorded in SG&A were $20.9 , $17.0 , and $11.8 million for fiscal 2020 , 2019 and 2018 , respectively. Sales taxes and other similar taxes are excluded from revenue. We account for shipping and handling activities as a fulfillment cost. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. |
Advertising | Advertising |
Research and development expenses | Research and development expense |
Share-based compensation plans | Share-based compensation plans We account for share-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, restricted stock awards (“RSA”), restricted stock units (“RSU”), performance stock awards ("PSA"), and performance stock units (“PSU”), to be measured based on the grant date fair value of the awards. The resulting expense is recognized over the periods during which the employee is required to perform service in exchange for the award. The estimated number of PSA's and PSU’s that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. Stock options are recognized in the financial statements based on their fair values using an option-pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. |
New accounting pronouncements | Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2019-12 "Income Taxes," which provides for certain updates to reduce complexity in the accounting for income taxes, including the utilization of the incremental approach for intra-period tax allocation, among others. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We are currently evaluating the impact this guidance may have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU is effective for us on March 1, 2020, and interim periods within those fiscal years. Early adoption is permitted. We believe that the adoption of this guidance will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes certain disclosures, modifies certain disclosures and adds additional disclosures. The ASU is effective for us on March 1, 2020, and interim periods within those fiscal years. Early adoption is permitted. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. We believe that the adoption of this guidance will not have a material impact on our consolidated financial statements. There have been no other accounting pronouncements issued but not yet adopted that are expected to have a material impact on our consolidated financial statements. Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4 ). In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ( Topic 220 ). The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) : Scope of Modification Accounting (Topic 718) . This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra–Entity Asset Transfers of Assets Other Than Inventory (Topic 740) . ASU 2016-16 amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of taxes when the transfer occurs. The amendment was effective for us on March 1, 2018. A modified retrospective approach is required for transition to the new guidance, with a cumulative-effect adjustment consisting of the net impact from (1) the write-off of any unamortized expense previously deferred and (2) recognition of any previously unrecognized deferred tax assets, net of any valuation allowance. The new guidance does not include any specific new disclosure requirements. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance. We adopted the guidance in the first quarter of fiscal 2019 (see Note 3 ). In January 2017, the FASB, issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Effect of adoption of ASU 2014-9 on condensed consolidated financial statements | The effect of the adoption of ASU 2014-09 on the consolidated financial statements from continuing operations is as follows: (in thousands) Before Reclassification After Reclassification Balance Sheet February 28, 2018 Reclassification February 28, 2018 Receivables $ 273,168 $ 2,397 $ 275,565 Accrued expenses and other current liabilities $ 165,864 $ 2,397 $ 168,261 (in thousands) Before Reclassification After Reclassification Statement of Income Fiscal Year Ended February 28, 2018 Reclassification Fiscal Year Ended Sales revenue, net $ 1,489,747 $ (10,902 ) $ 1,478,845 SG&A $ 435,735 $ (10,902 ) $ 424,833 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Additional lease information | A summary of supplemental lease information is as follows: February 29, 2020 Weighted average remaining lease term (years) 10.8 Weighted average discount rate 6.13 % Year-to-date cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,579 |
Schedule of operating lease maturities | A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) Fiscal 2021 $ 6,082 Fiscal 2022 5,959 Fiscal 2023 5,601 Fiscal 2024 5,102 Fiscal 2025 5,762 Thereafter 34,370 Total future lease payments 62,876 Less: imputed interest (18,374 ) Present value of lease liability $ 44,502 |
Schedule of lease liabilities | February 29, 2020 Lease liabilities, current (1) $ 3,641 Lease liabilities, non-current 40,861 Total lease liability $ 44,502 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Schedule of Carrying Amounts of Major Classes of Assets | The carrying amounts of the major classes of assets for the personal care business that were classified held for sale are as follows: (in thousands) February 29, 2020 Assets Inventory $ 17,150 Property and equipment, net of accumulated depreciation of $403 83 Goodwill 9,849 Other intangible assets, net of accumulated amortization of $4,474 17,724 Total assets held for sale $ 44,806 The following table summarizes income (loss) before income tax for the personal care business: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Income (loss) before income taxes $ (29,760 ) $ 23,190 $ 1,713 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of balance sheet and results of operations associated with discontinued operations | There were no balance sheet amounts related to discontinued operations at either balance sheet date presented. The results of operations associated with discontinued operations for fiscal 2020, 2019 and 2018 are presented in the following table: (in thousands) February 29, 2020 February 28, 2019 February 28, 2018 (1) Sales revenue, net $ — $ — $ 99,013 Cost of goods sold — — 28,744 Gross profit — — 70,269 Selling, general and administrative expense ("SG&A") — — 72,419 Asset impairment charges (2) — — 132,297 Restructuring charges — — 621 Operating loss — — (135,068 ) Gain (loss) on sale before income tax — (7,257 ) 1,624 Interest expense — — (367 ) Loss before income tax — (7,257 ) (133,811 ) Income tax benefit — 1,578 49,375 Loss from discontinued operations $ — $ (5,679 ) $ (84,436 ) (1) Fiscal 2018 included approximately 9.6 months of operating results prior to the divestiture on December 20, 2017. (2) Impairment charges included goodwill impairment charges of $96.6 million and trademark impairment charges of $35.7 million during fiscal 2018. Total after tax asset impairment charges were $83.5 million for fiscal 2018. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | A summary of property and equipment is as follows: Estimated Useful Lives (Years) Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Land — $ 12,644 $ 12,644 Building and improvements 3 — 40 115,592 113,820 Computer, furniture and other equipment 3 — 15 89,257 84,711 Tools, molds and other production equipment 3 — 7 37,652 36,378 Construction in progress — 9,302 6,529 Property and equipment, gross 264,447 254,082 Less accumulated depreciation (132,340 ) (123,744 ) Property and equipment, net $ 132,107 $ 130,338 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | A summary of accrued expenses and other current liabilities is as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Accrued compensation, benefits and payroll taxes $ 49,624 $ 36,782 Accrued sales discounts and allowances 34,176 28,655 Accrued sales returns 22,972 23,316 Accrued advertising 31,351 26,549 Other 45,034 49,858 Total accrued expenses and other current liabilities $ 183,157 $ 165,160 |
Drybar Products Acquisition (Ta
Drybar Products Acquisition (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Business Combinations [Abstract] | |
Schedule of net assets recorded upon acquisition | The following schedule presents the net assets recorded upon acquisition of Drybar Products at January 23, 2020: (in thousands) Assets: Receivables $ 7,710 Inventory 16,603 Prepaid expenses and other current assets 190 Property and equipment 1,472 Goodwill 172,933 Trade names - definite 30,000 Other intangible assets - definite 33,000 Subtotal - assets 261,908 Liabilities: Accounts payable 1,948 Accrued expenses 4,099 Subtotal - liabilities 6,047 Net assets recorded $ 255,861 |
Schedule of supplemental pro forma impact on consolidated condensed statements of income | The following supplemental unaudited pro forma information presents our financial results as if the Drybar Products acquisition had occurred at the beginning of the fiscal years presented. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred as if the acquisition had been completed on March 1, 2018, and this information is not intended to be indicative of future results: As if the acquisition had been completed on March 1. 2018 (in thousands, except earnings per share data) Fiscal Years Ended the Last Day of February, 2020 2019 Sales revenue, net $ 1,773,592 $ 1,621,117 Income from continuing operations 162,114 179,550 Earnings per share from continuing operations: Basic $ 6.45 $ 6.89 Diluted $ 6.40 $ 6.83 The impact of the Drybar Products acquisition on our consolidated statements of income for fiscal 2020 is as follows: January 23, 2020 (acquisition date) though February 29, 2020 (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 6,039 Income from continuing operations 1,483 Earnings per share from continuing operations: Basic $ 0.06 Diluted $ 0.06 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment | The following tables summarize the changes in our goodwill and intangible assets by segment for fiscal 2020 and 2019 : Balances at February 28, 2019 Year Ended February 29, 2020 Balances at February 29, 2020 (in thousands) Weighted Average Life (Years) Gross Carrying Amount Cumulative Goodwill Impairments Additions Impairments Retirement / Reclassification Adjustments Reclassification to Held for Sale Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization (1) Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ — $ — $ — $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — — — — 134,200 — — 134,200 Other intangibles - finite 13.8 41,417 — 709 — (31 ) — 42,095 — (21,469 ) 20,626 Subtotal 457,673 — 709 — (31 ) — 458,351 — (21,469 ) 436,882 Health & Home: Goodwill 284,913 — — — — — 284,913 — — 284,913 Trademarks - indefinite 54,000 — — — — — 54,000 — — 54,000 Licenses - finite 3.7 17,050 — — — — — 17,050 — (15,752 ) 1,298 Licenses - indefinite 7,400 — — — — — 7,400 — — 7,400 Other Intangibles - finite 5.8 117,967 — 256 — — — 118,223 — (98,142 ) 20,081 Subtotal 481,330 — 256 — — — 481,586 — (113,894 ) 367,692 Beauty: Goodwill 81,841 (46,490 ) 172,933 (25,503 ) — (9,849 ) 244,925 (71,993 ) — 172,932 Trademarks - indefinite 30,407 — — — (30,407 ) — — — — — Trademarks - finite 14.9 150 — 30,000 (11,168 ) 30,407 (15,997 ) 33,392 — (3,564 ) 29,828 Licenses - indefinite 10,300 — — — (10,300 ) — — — — — Licenses - finite 2.8 13,696 — — (4,234 ) 10,300 (6,065 ) 13,697 — (12,800 ) 897 Other intangibles - finite 10.7 46,402 — 33,000 (95 ) — (136 ) 79,171 — (46,549 ) 32,622 Subtotal 182,796 (46,490 ) 235,933 (41,000 ) — (32,047 ) 371,185 (71,993 ) (62,913 ) 236,279 Total $ 1,121,799 $ (46,490 ) $ 236,898 $ (41,000 ) $ (31 ) $ (32,047 ) $ 1,311,122 $ (71,993 ) $ (198,276 ) $ 1,040,853 (1) Reflects the retirement and reclassification of accumulated amortization of $49.4 million related to impaired assets and assets held for sale related to the Personal Care business in the Beauty segment. (in thousands) Weighted Average Life (Years) Balances at February 28, 2018 Year Ended February 28, 2019 Balances at February 28, 2019 Gross Carrying Amount Cumulative Goodwill Impairments Additions Impairments Retirement Adjustments Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ — $ — $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — — — 134,200 — — 134,200 Other intangibles - finite 14.7 40,828 — 684 — (95 ) 41,417 — (19,398 ) 22,019 Subtotal 457,084 — 684 — (95 ) 457,673 — (19,398 ) 438,275 Health & Home: Goodwill 284,913 — — — — 284,913 — — 284,913 Trademarks - indefinite 54,000 — — — — 54,000 — — 54,000 Licenses - finite 4.7 15,300 — 1,750 — — 17,050 — (15,402 ) 1,648 Licenses - indefinite 7,400 — — — — 7,400 — — 7,400 Other Intangibles - finite 5.5 117,586 — 381 — — 117,967 — (87,953 ) 30,014 Subtotal 479,199 — 2,131 — — 481,330 — (103,355 ) 377,975 Beauty: Goodwill 81,841 (46,490 ) — — — 81,841 (46,490 ) — 35,351 Trademarks - indefinite 30,407 — — — — 30,407 — — 30,407 Trademarks - finite 9.6 150 — — — — 150 — (102 ) 48 Licenses - indefinite 10,300 — — — — 10,300 — — 10,300 Licenses - finite 3.8 13,696 — — — — 13,696 — (12,482 ) 1,214 Other intangibles - finite 4.6 46,402 — — — — 46,402 — (46,126 ) 276 Subtotal 182,796 (46,490 ) — — — 182,796 (46,490 ) (58,710 ) 77,596 Total $ 1,119,079 $ (46,490 ) $ 2,815 $ — $ (95 ) $ 1,121,799 $ (46,490 ) $ (181,463 ) $ 893,846 |
Summary of amortization expense attributable to intangible assets | The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the consolidated statements of income for fiscal 2020 , 2019 and 2018 , as well as estimated amortization expense for fiscal 2021 through 2025 : Aggregate Amortization Expense (in thousands) Fiscal 2020 $ 21,271 Fiscal 2019 14,204 Fiscal 2018 18,854 |
Schedule of estimated amortization expense of intangible assets | Estimated Amortization Expense (in thousands) Fiscal 2021 $ 16,600 Fiscal 2022 10,276 Fiscal 2023 10,202 Fiscal 2024 9,817 Fiscal 2025 9,130 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of shares authorized for issuance under the stock incentive plan | A summary of shares available for issue under the 2018 Plan follows: Shares originally authorized 2,000,000 Less share awards issued (6,464 ) Plus forfeitures 32,126 Less share awards previously vested and settled — Subtotal 2,025,662 Less RSUs and RSAs issuable upon vesting (1) (259,932 ) Less maximum PSUs and PSAs issuable upon vesting (1) (122,402 ) Shares available for issuance 1,643,328 (1) RSUs, PSUs, RSAs, and PSAs potentially issuable are estimated assuming the maximum payouts adjusted for actual forfeitures to date. |
Schedule of share-based compensation expense in S G and A | We recorded share-based compensation expense in SG&A as follows: Fiscal Years Ended Last Day of February, (in thousands, except per share data) 2020 2019 2018 Stock options $ 189 $ 829 $ 1,634 Directors stock compensation 604 526 525 Performance based and other stock awards 21,351 20,047 12,631 Employee stock purchase plan 785 651 264 Share-based compensation expense 22,929 22,053 15,054 Less income tax benefits (1,803 ) (1,395 ) (1,669 ) Share-based compensation expense, net of income tax benefits $ 21,126 $ 20,658 $ 13,385 Continuing operations earnings per share impact of share-based compensation expense: Basic $ 0.84 $ 0.79 $ 0.49 Diluted $ 0.83 $ 0.79 $ 0.49 |
Schedule of unrecognized share-based compensation expense | A summary of our total unrecognized share-based compensation expense as of February 29, 2020 is as follows: (in thousands, except weighted average expense period data) Unrecognized Compensation Expense Weighted Average Period of Recognition (in years) Stock options $ 19 0.6 Restricted stock (RSUs, PSUs, RSAs and PSAs) 18,515 2.0 |
Summary of option activity | A summary of stock option activity under our expired plans is as follows: (in thousands, except contractual term and per share data) Options Weighted Average Exercise Price (per share) Weighted Average Grant Date Fair Value (per share) Weighted Average Remaining Contractual Term (in years) Intrinsic Value Outstanding at February 28, 2017 448 $ 57.41 $ 20.54 5.0 $ 18,097 Grants — — Exercises (126 ) 52.28 5,400 Forfeitures / expirations (22 ) 72.37 Outstanding at February 28, 2018 300 58.35 32.04 4.3 9,606 Grants — — Exercises (126 ) 49.82 6,414 Forfeitures / expirations (11 ) 80.33 Outstanding at February 28, 2019 163 63.47 48.64 3.6 7,925 Grants — — Exercises (93 ) 57.09 9,059 Forfeitures / expirations (1 ) 87.61 Outstanding at February 29, 2020 69 $ 71.78 $ 92.82 3.2 $ 6,333 Exercisable at February 29, 2020 66 $ 71.10 $ 93.50 3.1 $ 6,157 |
Schedule of non-vested option activity | A summary of non-vested stock option activity and changes under our expired share-based compensation plans follows: (in thousands, except per share data) Non- Vested Options Weighted Average Grant Date Fair Value (per share) Outstanding at February 28, 2017 280 22.48 Grants — — Vested or forfeited (155 ) 25.02 Outstanding at February 28, 2018 125 19.31 Grants — — Vested or forfeited (88 ) 14.67 Outstanding at February 28, 2019 37 $ 30.44 Grants — — Vested or forfeited (35 ) 27.36 Outstanding at February 29, 2020 2 $ 74.09 |
Summary of award activity | A summary of Restricted Stock Unit and Performance Stock Unit activity and changes under our equity incentive plans are as follows: Expired Equity Plan Active Equity Plan (in thousands, except per share data) Restricted Stock Units Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Restricted Stock Units Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Outstanding at February 28, 2017 322 81.19 31,418 — — — Granted 262 96.44 — — — Vested or Forfeited (1) (2) (274 ) 78.71 — — — Outstanding at February 28, 2018 310 90.05 27,944 — — — Granted 197 84.02 — 79 125.40 Vested or Forfeited (1) (2) (155 ) 82.19 — (5 ) 124.71 Outstanding at February 28, 2019 352 $ 92.45 $ 32,519 74 $ 125.45 $ 9,202 Granted 49 164.60 — 254 110.92 Vested or Forfeited (1) (2) (192 ) 95.48 — (45 ) 122.55 Outstanding at February 29, 2020 209 $ 90.73 $ 19,010 283 $ 112.85 $ 31,907 (1) The expired equity plan reflects the 2008 Stock Incentive Plan, which expired on August 19, 2018. The active equity plan reflects the 2018 Plan. (2) Under the expired equity plan, 175,022 , 141,541 , and 192,002 RSUs and PSUs vested and settled throughout the year at a weighted average fair values of $95.98 , $81.23 , and $62.88 per share in fiscal 2020, 2019 and 2018, respectively. Under the active equity plan, 20,240 and 900 RSUs vested and settled throughout the year at a weighted average fair value of $125.34 and $120.70 per share in fiscal 2020 and 2019, respectively. Restricted Stock Awards and Performance Stock Awards A summary of Restricted Stock Award and Performance Stock Award activity and changes under our 2018 Plan are as follows: Restricted Stock Awards Performance Stock Awards (2) (in thousands, except per share data) Restricted Stock Awards Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Restricted Stock Awards Weighted Average Grant Date Fair Value (per share) Fair Value at Grant Date Outstanding at February 28, 2019 — $ — $ — — $ — $ — Granted 49 118.51 — 122 110.85 — Vested or Forfeited (1) (4 ) 123.17 — (4 ) 110.85 — Outstanding at February 29, 2020 45 $ 118.11 $ 5,354 118 $ 110.85 $ 13,130 (1) Under the 2018 Plan, 1,014 Restricted Stock Awards vested and settled throughout the year at a weighted average fair value of $150.86 per share in fiscal 2020. There were no RSAs issued during fiscal 2019. (2) Performance stock awards reflected in the table above assumes target ( 100% ) achievement. These Performance stock awards can be paid out within some range of 0% to 200% depending upon the final outcome of the performance achievement. |
Repurchase of Helen of Troy Com
Repurchase of Helen of Troy Common Stock (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Summary of share repurchase activity | The following table summarizes our share repurchase activity for the periods shown: Fiscal Years Ended Last Day of February, (in thousands, except share and per share data) 2020 2019 2018 Common stock repurchased on the open market: Number of shares — 1,875,469 717,300 Aggregate value of shares $ — $ 212,080 $ 65,795 Average price per share $ — $ 113.08 $ 91.73 Common stock received in connection with share-based compensation: Number of shares 77,272 59,024 75,785 Aggregate value of shares $ 10,169 $ 5,413 $ 7,258 Average price per share $ 131.61 $ 91.70 $ 95.77 |
Other Commitments and Conting_2
Other Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of contractual obligations and commercial commitments | Contractual Obligations and Commercial Commitments – Our contractual obligations and commercial commitments at the end of fiscal 2020 were: Fiscal Years Ended the Last Day of February, 2021 2022 2023 2024 2025 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Floating rate debt $ 340,507 $ 1,900 $ 321,900 $ 1,900 $ 14,807 $ — $ — Interest on floating rate debt (1) 16,653 9,142 7,124 386 1 — — Long-term incentive plan payouts 9,018 5,614 3,404 — — — — Open purchase orders 239,841 239,841 — — — — — Operating Leases 62,876 6,082 5,959 5,601 5,102 5,762 34,370 Minimum royalty payments 55,154 12,823 12,674 13,090 12,381 4,186 — Advertising and promotional 34,228 18,359 9,131 6,738 — — — Capital spending commitments 2,716 1,986 596 134 — — — Total contractual obligations $ 760,993 $ 295,747 $ 360,788 $ 27,849 $ 32,291 $ 9,948 $ 34,370 (1) We estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at February 29, 2020 remain constant into the future. This is an estimate, as actual rates will vary over time. In addition, we assume the revolving credit debt balance outstanding as of February 29, 2020 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | A summary of our long-term debt follows: (dollars in thousands) February 29, 2020 February 28, 2019 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) $ 20,451 $ 22,335 Credit Agreement (2) 318,854 298,449 Total long-term debt 339,305 320,784 Less current maturities of long-term debt (1,884 ) (1,884 ) Long-term debt, excluding current maturities $ 337,421 $ 318,900 (1) The MBFC Loan is unsecured and bears floating interest based on either LIBOR plus a margin of up to 2.0% , or a Base Rate plus a margin of up to 1.0% , as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement (see Notes 17 and 18 regarding interest rate swaps). |
Schedule of interest rates on credit agreement | The following table contains information about interest rates on our Credit Agreement and the related weighted average borrowings outstanding for the periods covered by our consolidated statements of income: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Average borrowings outstanding (1) $ 286,640 $ 290,860 $ 382,960 Average interest rate during each year (2) 3.2 % 3.2 % 2.7 % Interest rate range during each year 2.6% - 5.5% 2.8% - 5.5% 2.3 - 4.8% Weighted average interest rates on borrowings outstanding at year end 2.7 % 3.6 % 2.9 % (1) Average borrowings outstanding is computed as the average of the current and four prior quarters ending balances of our credit facility. (2) The average interest rate during each year is computed by dividing the total interest expense associated with the Credit Agreement for a fiscal year by the average borrowings outstanding for the same fiscal year. |
Summary of components of interest expense | The following table contains a summary of the components of our interest expense for the periods covered by our consolidated statements of income: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Interest and commitment fees $ 10,970 $ 11,366 $ 13,084 Deferred finance costs 1,620 1,015 887 Interest rate swap settlements, net 262 (515 ) 54 Cross-currency debt swap (147 ) (147 ) (74 ) Total interest expense $ 12,705 $ 11,719 $ 13,951 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of financial assets and liabilities presented at fair value and measured on a recurring basis | The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the last day of February 2020 and 2019 : Fair Values at February 29, 2020 (in thousands) (level 2) (1) Assets: Money market accounts $ 2,648 Interest rate swaps — Foreign currency contracts 2,083 Total assets $ 4,731 Liabilities: Floating rate debt $ 339,305 Interest rate swaps 10,717 Foreign currency contracts 159 Total liabilities $ 350,181 Fair Values at February 28, 2019 (in thousands) (level 2) (1) Assets: Money market accounts $ 915 Interest rate swap 512 Foreign currency contracts 1,692 Total assets $ 3,119 Liabilities: Floating rate debt 320,784 Interest rate swap 339 Foreign currency contracts 563 Total liabilities $ 321,686 (1) Our financial assets and liabilities are classified as Level 2 assets because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. |
Schedule of reconciliation of other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) | The table below presents other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) for fiscal 2020 and 2019 : Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Beginning balances $ 893,846 $ 905,235 Total income (expense): Included in net income - realized (62,287 ) (14,109 ) Acquired during the period 236,898 2,815 Retirement adjustments during the period (31 ) (95 ) Reclassification to assets held for sale (27,573 ) — Ending balances $ 1,040,853 $ 893,846 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of fair values of derivative instruments | The following table summarizes the fair values of our various derivative instruments at the end of fiscal 2020 and 2019 : February 29, 2020 (in thousands) Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities Non-current Zero-cost collar - Euro Cash flow 2/2021 €8,000 $ 74 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 5/2021 €25,875 837 — — 15 Foreign currency contracts - sell Canadian Dollars Cash flow 2/2021 $14,000 202 — — — Zero-cost collar - Pounds Cash flow 2/2021 £6,500 — — 144 — Foreign currency contracts - sell Pounds Cash flow 5/2021 £13,000 435 23 — — Foreign currency contracts - sell Mexican Pesos Cash flow 5/2020 $10,000 12 — — — Interest rate swaps Cash flow 1/2024 $225,000 — — 3,489 7,228 Subtotal 1,560 23 3,633 7,243 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 €5,280 473 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £6,395 27 — — — Subtotal 500 — — — Total fair value $ 2,060 $ 23 $ 3,633 $ 7,243 February 28, 2019 (in thousands) Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities Non-current Zero-cost collar - Euro Cash flow 2/2020 €9,500 $ 11 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 2/2020 €29,000 1,047 — — — Foreign currency contracts - sell Canadian Dollars Cash flow 2/2020 $16,000 168 — — — Zero-cost collar - Pounds Cash flow 5/2020 £4,500 — — 200 — Foreign currency contracts - sell Pounds Cash flow 5/2020 £19,500 248 — — 13 Foreign currency contracts - sell Mexican Pesos Cash flow 9/2019 $30,000 — — 58 — Interest rate swaps Cash flow 1/2024 $225,000 512 — — 339 Subtotal 1,986 — 258 352 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap - Euro (1) 04/2020 €5,280 — 218 — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £6,395 — — — 292 Subtotal — 218 — 292 Total fair value $ 1,986 $ 218 $ 258 $ 644 (1) These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. |
Schedule of pre-tax effect of derivative instruments | The pre-tax effect of derivative instruments for fiscal 2020 and 2019 is as follows: Years Ended Last Day of February, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ (2,756 ) $ (94 ) SG&A $ (2,977 ) $ (2,488 ) $ — $ — Interest rate swaps - cash flow hedges (10,890 ) (2,308 ) Interest expense — — Interest expense (262 ) 515 Cross-currency debt swaps - principal — — — — SG&A 574 700 Cross-currency debt swaps - interest — — — — Interest Expense 147 147 Total $ (13,646 ) $ (2,402 ) $ (2,977 ) $ (2,488 ) $ 459 $ 1,362 |
Schedule of cash and cash equivalents | The following table summarizes our cash and cash equivalents at the end of fiscal 2020 and 2019 : Fiscal Years Ended Last Day of February 2020 2019 (in thousands) Carrying Amount Range of Interest Rates Carrying Amount Range of Interest Rates Cash, interest and non-interest-bearing accounts $ 21,819 0.00 to 0.30% $ 10,956 0.00 to 0.30% Money market funds 2,648 0.15% to 5.39% 915 0.00 to 1.25% Total cash and cash equivalents $ 24,467 $ 11,871 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The changes in accumulated other comprehensive income (loss) by component and related tax effects for fiscal 2020 and 2019 were as follows: (in thousands) Interest Rate Swaps Foreign Currency Contracts Total Balance at February 28, 2018 $ 1,705 $ (1,074 ) $ 631 Other comprehensive income (loss) before reclassification (2,308 ) (94 ) (2,402 ) Amounts reclassified out of accumulated other comprehensive income — 2,488 2,488 Tax effects 735 (261 ) 474 Other comprehensive income (loss) (1,573 ) 2,133 560 Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive income (loss) before reclassification (10,890 ) (2,756 ) (13,646 ) Amounts reclassified out of accumulated other comprehensive income — 2,977 2,977 Tax effects 2,559 (86 ) 2,473 Other comprehensive income (loss) (8,331 ) 135 (8,196 ) Balance at February 29, 2020 $ (8,199 ) $ 1,194 $ (7,005 ) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following table contains segment information included in continuing operations. SEGMENT INFORMATION (in thousands) Fiscal 2020 Housewares Health & Home Beauty (1) Total Sales revenue, net $ 640,965 $ 685,397 $ 381,070 $ 1,707,432 Asset impairment charges — — 41,000 41,000 Restructuring charges 1,351 93 1,869 3,313 Operating income 123,135 68,166 (13,050 ) 178,251 Identifiable assets (2) 723,491 652,390 528,002 1,903,883 Capital and intangible asset expenditures 10,602 5,853 1,304 17,759 Depreciation and amortization 7,298 16,113 13,998 37,409 (in thousands) Fiscal 2019 Housewares Health & Home Beauty Total Sales revenue, net $ 523,807 $ 695,217 $ 345,127 $ 1,564,151 Asset impairment charges — — — — Restructuring charges 926 686 1,974 3,586 Operating income 100,743 68,448 30,188 199,379 Identifiable assets 698,519 686,335 264,481 1,649,335 Capital and intangible asset expenditures 16,023 8,508 1,854 26,385 Depreciation and amortization 6,048 17,058 6,821 29,927 (in thousands) Fiscal 2018 Housewares Health & Home Beauty Total Sales revenue, net $ 459,004 $ 674,062 $ 345,779 1,478,845 Asset impairment charges — — 15,447 15,447 Restructuring charges 220 — 1,637 1,857 Operating income 89,319 62,099 17,644 169,062 Identifiable assets 664,622 675,627 283,468 1,623,717 Capital and intangible asset expenditures 8,537 3,716 1,352 13,605 Depreciation and amortization 5,825 16,750 11,155 33,730 (1) Includes approximately five weeks of operating results from the Drybar Products acquisition, which was completed on January 23, 2020. (2) Includes assets held for sale of $44,806 related to the Personal Care business in our Beauty segment (see Note 5) |
Net sales by geographic region | ION The following table provides net sales revenue by geographic region, in U.S. Dollars: Fiscal Years Ended (in thousands) 2020 2019 (1) 2018 (1) Sales revenue, net by geographic region United States $ 1,357,345 79.5 % $ 1,221,806 78.1 % $ 1,161,698 78.6 % Canada 71,417 4.2 % 66,855 4.3 % 58,856 4.0 % EMEA 138,858 8.1 % 143,024 9.1 % 143,668 9.7 % Asia Pacific 99,378 5.8 % 90,073 5.8 % 75,376 5.1 % Latin America 40,434 2.4 % 42,393 2.7 % 39,247 2.7 % Total sales revenue, net $ 1,707,432 100 % $ 1,564,151 100 % $ 1,478,845 100 % (1) We adopted ASU 2014-09, Revenue of Contracts with Customers (Topic 606) in the first quarter of fiscal 2019 and have reclassified amounts in the prior year’s statements of income to conform to the current period’s presentation (see Note 3 ). |
Schedule of domestic and international long-lived assets | Our domestic and international long-lived assets were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 United States $ 453,784 $ 416,521 $ 437,920 International: Barbados 606,261 499,589 496,258 Other international 161,002 128,566 131,831 Subtotal 767,263 628,155 628,089 Total $ 1,221,047 $ 1,044,676 $ 1,066,009 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of selected unaudited quarterly financial data | Selected unaudited quarterly financial data is as follows (in thousands except share data): SELECTED QUARTERLY FINANCIAL DATA Fiscal Year 2020: May August November February Total Sales revenue, net $ 376,335 $ 413,995 $ 474,737 $ 442,365 $ 1,707,432 Gross profit 153,727 178,151 209,973 192,615 734,466 Asset impairment charges — — — 41,000 41,000 Restructuring charges 619 430 12 2,252 3,313 Income (loss) from continuing operations 40,694 46,095 68,699 (3,155 ) 152,333 Loss from discontinued operations — — — — — Earnings (loss) per share (1) Basic Continuing operations $ 1.63 $ 1.84 $ 2.73 $ (0.13 ) $ 6.06 Discontinued operations — — — — — Total earnings (loss) per share $ 1.63 $ 1.84 $ 2.73 $ (0.13 ) $ 6.06 Diluted Continuing operations $ 1.61 $ 1.83 $ 2.71 $ (0.13 ) $ 6.02 Discontinued operations — — — — — Total earnings (loss) per share $ 1.61 $ 1.83 $ 2.71 $ (0.13 ) $ 6.02 Fiscal Year 2019: May August November February Total Sales revenue, net $ 354,679 $ 393,548 $ 431,081 $ 384,843 $ 1,564,151 Gross profit 146,558 155,173 181,845 157,530 641,106 Asset impairment charges — — — — — Restructuring charges 1,725 859 25 977 3,586 Income from continuing operations 38,173 44,017 54,320 37,714 174,224 Loss from discontinued operations (381 ) — (4,850 ) (448 ) (5,679 ) Earnings (loss) per share (1) Basic Continuing operations $ 1.44 $ 1.67 $ 2.08 $ 1.49 $ 6.68 Discontinued operations (0.01 ) — (0.19 ) (0.02 ) (0.22 ) Total earnings per share $ 1.42 $ 1.67 $ 1.90 $ 1.47 $ 6.46 Diluted Continuing operations $ 1.43 $ 1.66 $ 2.06 $ 1.47 $ 6.62 Discontinued operations (0.01 ) — (0.18 ) (0.02 ) (0.22 ) Total earnings per share $ 1.42 $ 1.66 $ 1.88 $ 1.45 $ 6.41 (1) Earnings per share calculations for each quarter are based on the weighted average number of shares outstanding for each period, and the sum of the quarterly amounts may not necessarily equal the annual earnings per share amounts. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before taxes | Our components of income before income tax expense are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 U.S. $ 40,146 $ 32,135 $ 23,824 Non-U.S. 125,794 155,865 131,614 Total $ 165,940 $ 188,000 $ 155,438 |
Schedule of components of income tax expense (benefit) | Our components of income tax expense (benefit) are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 U.S. Current $ 16,732 $ 2,460 $ 3,380 Deferred (4,789 ) 10,480 19,578 11,943 12,940 22,958 Non-U.S. Current 2,571 2,102 1,912 Deferred (907 ) (1,266 ) 1,686 1,664 836 3,598 Total $ 13,607 $ 13,776 $ 26,556 |
Schedule of effective income tax rate reconciliation | A income tax rate reconciliation of these differences are as follows: Fiscal Years Ended Last Day of February, 2020 2019 2018 Effective income tax rate at the U.S. statutory rate 21.0 % 21.0 % 32.7 % Impact of U.S. state income taxes 1.6 % 1.2 % 0.5 % Effect of statutory tax rate in Macau (13.6 )% (10.3 )% (19.5 )% Effect of statutory tax rate in Barbados (5.5 )% (5.9 )% (5.2 )% Effect of statutory tax rate in Europe (0.4 )% (1.9 )% (5.3 )% Effect of income from other non-U.S. operations subject to varying rates 2.3 % 1.8 % 2.1 % Effect of foreign exchange fluctuations 0.7 % 0.2 % 0.3 % Effect of asset impairment charges 2.4 % — % 2.2 % Effect of U.S. tax reform — % (0.1 )% 11.5 % Effect of uncertain tax positions (1.7 )% (0.6 )% (1.3 )% Effect of nondeductible executive compensation 1.4 % 0.9 % 0.6 % Effect of base erosion and anti-abuse tax — % 1.0 % — % Other items — % — % (1.5 )% Effective income tax rate 8.2 % 7.3 % 17.1 % |
Schedule of components of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of the last day of February 2020 and 2019 are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Deferred tax assets, gross: Operating loss carryforwards $ 13,908 $ 18,300 Accounts receivable 5,467 4,680 Inventories 8,751 7,806 Operating lease liabilities 10,451 — Accrued expenses and other 7,692 8,293 Total gross deferred tax assets 46,269 39,079 Valuation allowance (14,073 ) (17,086 ) Deferred tax liabilities: Operating lease assets (7,573 ) — Depreciation and amortization (14,212 ) (19,750 ) Total deferred tax assets, net $ 10,411 $ 2,243 |
Schedule of operating loss carryforwards | The composition of our operating loss carryforwards at the end of fiscal 2020 is as follows: February 29, 2020 (in thousands) Tax Year Expiration Date Range Deferred Tax Assets Operating Loss Carryforward U.S. state operating loss carryforward 2028-2038 245 4,149 Non-U.S. operating loss carryforwards with definite carryover periods 2021-2037 1,823 6,917 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 11,840 43,369 Subtotals 13,908 $ 54,435 Less portion of valuation allowance established for operating loss carryforwards (13,406 ) Total $ 502 |
Schedule of unrecognized tax benefits | During fiscal 2020 and 2019 , changes in the total amount of unrecognized tax benefits were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 Total unrecognized tax benefits, beginning balance $ 3,205 $ 4,428 Resolution of tax dispute — — Changes in tax positions taken during a prior period (2,819 ) 15 Lapse in statute of limitations — (1,057 ) Impact of foreign currency re-measurement — (161 ) Settlements (273 ) (20 ) Total unrecognized tax benefits, ending balance 113 3,205 Less current unrecognized tax benefits — (316 ) Noncurrent unrecognized tax benefits $ 113 $ 2,889 |
Schedule of material tax years under examination or still subject to examination by major tax jurisdictions | As of February 29, 2020 , tax years under examination or still subject to examination by material tax jurisdictions are as follows: Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2019 — 2020 United States 2017 - 2018 2017 — 2020 Switzerland - None - 2016 — 2020 Hong Kong - None - 2014 — 2020 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of components of basic and diluted shares | For fiscal 2020 , 2019 and 2018 , the components of basic and diluted shares were as follows: WEIGHTED AVERAGE DILUTED SECURITIES Fiscal Years Ended Last Day of February, (in thousands) 2020 2019 2018 Weighted average shares outstanding, basic 25,118 26,073 27,077 Incremental shares from share-based compensation arrangements 204 230 177 Weighted average shares outstanding, diluted 25,322 26,303 27,254 Antidilutive securities 197 262 319 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Related Information - General and Cash (Details) $ / shares in Units, $ in Millions | Jan. 23, 2020USD ($) | Feb. 29, 2020Segment$ / shares | Feb. 28, 2019$ / shares |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Common stock, par (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |
Number of segments | Segment | 3 | ||
Drybar Products LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Acquisition purchase price | $ | $ 255.9 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Related Information - Receivables (Details) - Gross trade receivable - Customer concentration risk | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Customer One | ||
Receivables | ||
Concentration risk percentage | 18.00% | 17.00% |
Customer Two | ||
Receivables | ||
Concentration risk percentage | 14.00% | 12.00% |
Customer Three | ||
Receivables | ||
Concentration risk percentage | 13.00% | 12.00% |
Five top customers | ||
Receivables | ||
Concentration risk percentage | 54.00% | 48.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Related Information - Inventory and Licenses (Details) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020USD ($)item | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | |
Summary of significant accounting policies | |||
General and administrative expenses charged to inventory | $ 44.6 | $ 47.7 | $ 43.2 |
General and administrative expenses directly attributable to the procurement of inventory included in inventory balances | $ 16 | $ 15.6 | |
Number of licensors exceeding 10 percent of net sales revenue | item | 3 | ||
Cost of goods sold manufactured by vendors | Supplier concentration risk | Vendors in Far East | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 76.00% | 74.00% | 74.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top vendor | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 9.00% | 11.00% | 11.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top two manufacturers | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 18.00% | 20.00% | 19.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top five suppliers | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 39.00% | 38.00% | 34.00% |
Net sales revenue | Net sales revenue subject to trademark license agreements | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 43.00% | 41.00% | 45.00% |
Net sales revenue | Net sales revenue subject to trademark license agreements | Top Licensor | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 14.00% | 11.00% | 10.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Related Information - Intangibles (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 5 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 30 years |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 14 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Related Information - Revenue Recognition and Costs and Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Product Liability Contingency [Line Items] | |||
Customer incentives in SG&A | $ 20,900 | $ 17,000 | $ 11,800 |
Advertising costs in SG&A | 71,400 | 62,400 | 53,700 |
Research and development expenses | 17,800 | 13,000 | 13,500 |
Shipping and handling expenses in SG&A | $ 972,966 | 923,045 | 867,646 |
Minimum | |||
Product Liability Contingency [Line Items] | |||
Term of allowable sales returns | 2 years | ||
Maximum | |||
Product Liability Contingency [Line Items] | |||
Term of allowable sales returns | 5 years | ||
Shipping and Handling | |||
Product Liability Contingency [Line Items] | |||
Shipping and handling expenses in SG&A | $ 102,700 | $ 89,400 | $ 78,100 |
New Accounting Pronouncements -
New Accounting Pronouncements - Leases (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Mar. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 32,645 | |
Initial recognition of lease liabilities | 44,502 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | 37,100 | $ 37,100 |
Initial recognition of lease liabilities | $ 47,200 | $ 47,200 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | $ 348,023 | $ 280,280 | $ 275,565 |
Accrued expenses and other current liabilities | 183,157 | 165,160 | 168,261 |
Sales revenue, net | 1,478,845 | ||
SG&A | $ (511,902) | $ (438,141) | (424,833) |
Before Reclassification | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | 273,168 | ||
Accrued expenses and other current liabilities | 165,864 | ||
Sales revenue, net | 1,489,747 | ||
SG&A | (435,735) | ||
Reclassification | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables | 2,397 | ||
Accrued expenses and other current liabilities | 2,397 | ||
Sales revenue, net | (10,902) | ||
SG&A | $ 10,902 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Mar. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease assets | $ 32,645 | |||
Total lease liability | 44,502 | |||
Operating lease expense | 7,800 | $ 6,400 | ||
Rent expense related to operating leases | $ 7,900 | $ 5,500 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease assets | 37,100 | $ 37,100 | ||
Total lease liability | $ 47,200 | $ 47,200 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms | 13 years |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) $ in Thousands | 12 Months Ended |
Feb. 29, 2020USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 10 years 9 months 18 days |
Weighted average discount rate | 6.13% |
Cash Flow, Operating Activities, Lessee [Abstract] | |
Operating cash flows from operating leases | $ 4,579 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Information (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 6,082 |
2022 | 5,959 |
2023 | 5,601 |
2024 | 5,102 |
2025 | 5,762 |
Thereafter | 34,370 |
Total future lease payments | 62,876 |
Less: imputed interest | (18,374) |
Total lease liability | $ 44,502 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Leases [Abstract] | |
Lease liabilities, current | $ 3,641 |
Lease liabilities, non-current | 40,861 |
Total lease liability | $ 44,502 |
Location of current operating lease liabilities on financial statement | us-gaap:AccruedLiabilitiesCurrent |
Assets Held for Sale - Carrying
Assets Held for Sale - Carrying Amounts of Major Classes of Assets Classified as Held-for-Sale (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | $ 44,806 | |
Property and equipment, accumulated depreciation | 132,340 | $ 123,744 |
Accumulated amortization | 148,855 | $ 181,463 |
Inventory | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 17,150 | |
Property and equipment | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 83 | |
Goodwill | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 9,849 | |
Property and equipment, accumulated depreciation | 403,000 | |
Other intangible assets | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 17,724 | |
Accumulated amortization | $ 4,474,000 |
Assets Held for Sale - (Loss) I
Assets Held for Sale - (Loss) Income before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |||
Income (loss) before income taxes | $ (29,760) | $ 23,190 | $ 1,713 |
Impairment charge on held-for-sale assets | $ 41,000 | $ 0 | $ 15,400 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Aug. 31, 2019 | |
Results of operations associated with discontinued operations | |||||
Sales revenue, net | $ 0 | $ 0 | $ 99,013 | ||
Cost of goods sold | 0 | 0 | 28,744 | ||
Gross profit | 0 | 0 | 70,269 | ||
Selling, general and administrative expense (SG&A) | 0 | 0 | 72,419 | ||
Asset impairment charges | 0 | 0 | 132,297 | ||
Restructuring charges | 0 | 0 | 621 | ||
Operating loss | 0 | 0 | (135,068) | ||
Gain (loss) on sale before income tax | 0 | (7,257) | 1,624 | ||
Interest expense | 0 | 0 | (367) | ||
Loss before income tax | 0 | (7,257) | (133,811) | ||
Income tax benefit | 0 | 1,578 | 49,375 | ||
Loss from discontinued operations | $ 0 | (5,679) | (84,436) | ||
Goodwill impairment charges | 96,600 | ||||
Intangible impairment charges | 35,700 | ||||
Asset impairment charges net of tax | $ 83,500 | ||||
Discontinued Operations | Healthy Directions LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price from sale | $ 46,000 | ||||
Supplemental payment with a target value | $ 25,000 | ||||
Supplemental payment adjusted balance due to settlement | 10,800 | $ 10,800 | |||
Reduction of supplemental payment | 5,800 | ||||
Reduction of supplemental payment, after tax | 4,400 | ||||
Resolution of contingencies | 1,500 | ||||
Resolution of contingencies, after tax | $ 1,300 | ||||
Threshold period for providing transition services | 18 months | ||||
Results of operations associated with discontinued operations | |||||
Period of operating results prior to divestiture | 9 months 18 days |
Property and Equipment - Summar
Property and Equipment - Summary of PP&E (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 264,447 | $ 254,082 | |
Less accumulated depreciation | (132,340) | (123,744) | |
Property and equipment, net | 132,107 | 130,338 | |
Depreciation expense | 16,100 | 15,700 | $ 14,900 |
Rent expense related to operating leases | 7,800 | 6,400 | |
Rent expense related to operating leases | 7,900 | 5,500 | |
Cost of goods sold | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Depreciation expense | 4,300 | 4,100 | 3,700 |
SG&A | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Depreciation expense | 11,800 | 11,600 | $ 11,200 |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 12,644 | 12,644 | |
Building and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 115,592 | 113,820 | |
Building and improvements | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 40 years | ||
Computer, furniture and other equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 89,257 | 84,711 | |
Computer, furniture and other equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Computer, furniture and other equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 15 years | ||
Tools, molds and other production equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 37,652 | 36,378 | |
Tools, molds and other production equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Tools, molds and other production equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 7 years | ||
Construction in progress | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 9,302 | $ 6,529 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Narrative (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Accrued Liabilities, Current [Abstract] | |||
Accrued compensation, benefits and payroll taxes | $ 49,624 | $ 36,782 | |
Accrued sales discounts and allowances | 34,176 | 28,655 | |
Accrued sales returns | 22,972 | 23,316 | |
Accrued advertising | 31,351 | 26,549 | |
Other | 45,034 | 49,858 | |
Total accrued expenses and other current liabilities | $ 183,157 | $ 165,160 | $ 168,261 |
- Narrative (Details)
- Narrative (Details) - Drybar - USD ($) $ in Thousands | Jan. 23, 2020 | Feb. 29, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Purchase price | $ 255,900 | |
Acquisition related costs | $ 2,500 | |
Consulting Agreement | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Amortization period of intangible assets | 5 years | |
Other intangible assets - definite | $ 10,000 | |
Noncompete Agreements | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Amortization period of intangible assets | 10 years | |
Other intangible assets - definite | $ 6,000 | |
Trade names | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Trade names - indefinite | $ 30,000 | |
Amortization period of intangible assets | 15 years | |
Other intangible assets - definite | $ 30,000 | |
Customer relationships | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Amortization period of intangible assets | 14 years 6 months | |
Other intangible assets - definite | $ 17,000 | |
Measurement Input, Weighted Average Cost Of Capital | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Discount rates used in estimating fair value | 12.60% | |
Measurement Input, Royalty Rate | Trade names | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Discount rates used in estimating fair value | 5.00% | |
Measurement Input, Royalty Rate | Customer relationships | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Discount rates used in estimating fair value | 3.00% | |
Measurement Input, Customer Attrition Rate | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Discount rates used in estimating fair value | 6.70% |
Drybar Products Acquisition - S
Drybar Products Acquisition - Schedule of Net Assets Recorded Upon Acquisition (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Jan. 23, 2020 | Feb. 28, 2019 |
Assets | |||
Goodwill | $ 739,901 | $ 602,320 | |
Drybar | |||
Assets | |||
Receivables | $ 7,710 | ||
Inventory | 16,603 | ||
Prepaid expenses and other current assets | 190 | ||
Property and equipment | 1,472 | ||
Goodwill | 172,933 | ||
Subtotal - assets | 261,908 | ||
Liabilities: | |||
Accounts payable | 1,948 | ||
Accrued expenses | 4,099 | ||
Subtotal - liabilities | 6,047 | ||
Net assets recorded | 255,861 | ||
Drybar | Trade names | |||
Assets | |||
Other intangible assets - definite | 30,000 | ||
Drybar | Other intangible assets | |||
Assets | |||
Other intangible assets - definite | $ 33,000 |
Drybar Products Acquisition - I
Drybar Products Acquisition - Impact of Acquisition on Consolidated Statements of Income (Details) - Drybar $ / shares in Units, $ in Thousands | 1 Months Ended |
Feb. 29, 2020USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Sales revenue, net | $ | $ 6,039 |
Income from continuing operations | $ | $ 1,483 |
Earnings per share from continuing operations: | |
Basic (in dollars per share) | $ / shares | $ 0.06 |
Diluted (in dollars per share) | $ / shares | $ 0.06 |
Drybar Products Acquisition -_2
Drybar Products Acquisition - Supplemental Pro Forma Impact on Consolidated Income Statements (Details) - Drybar - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Business Acquisition [Line Items] | ||
Sales revenue, net | $ 1,773,592 | $ 1,621,117 |
Income from continuing operations | $ 162,114 | $ 179,550 |
Earnings per share from continuing operations: | ||
Basic (in dollars per share) | $ 6.45 | $ 6.89 |
Diluted (in dollars per share) | $ 6.40 | $ 6.83 |
Goodwill and Intangibles - Narr
Goodwill and Intangibles - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||||||||||
Asset impairment charges | $ 41,000,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 41,000,000 | $ 0 | $ 15,447,000 |
Non-cash intangible asset impairment charges | 41,000,000 | 0 | 15,447,000 | ||||||||
Amortization of intangible assets continued operations | 21,271,000 | 14,204,000 | 18,854,000 | ||||||||
Beauty | |||||||||||
Indefinite-lived Intangible Assets [Line Items] | |||||||||||
Asset impairment charges | 41,000,000 | 0 | 15,447,000 | ||||||||
Non-cash intangible asset impairment charges | 41,000,000 | $ 0 | |||||||||
Non-cash impairment charges (after tax) | $ 36,400,000 | $ 13,800,000 |
Goodwill and Intangibles - By S
Goodwill and Intangibles - By Segment and Major Class (Details) - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Goodwill [Roll Forward] | |||
Cumulative Goodwill Impairments | $ (46,490,000) | $ (46,490,000) | |
Goodwill Net Book Value | $ 739,901,000 | 602,320,000 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Reclassification to Held for Sale | (32,047,000) | ||
Intangible assets - finite-lived, Accumulated Amortization | (148,855,000) | (181,463,000) | |
Goodwill and Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, balance at the beginning of the period | 1,121,799,000 | 1,119,079,000 | |
Cumulative Goodwill Impairments | (46,490,000) | (46,490,000) | |
Cumulative Goodwill Impairments | (71,993,000) | ||
Additions | 236,898,000 | 2,815,000 | |
Impairments | (41,000,000) | 0 | (15,447,000) |
Retirement / Reclassification Adjustments | (31,000) | (95,000) | |
Gross Carrying Amount, balance at the end of the period | 1,311,122,000 | 1,121,799,000 | 1,119,079,000 |
Net Book Value | 1,040,853,000 | 893,846,000 | |
Other Intangible Assets, Including Held-For-Sale | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Accumulated Amortization | (198,276,000) | ||
Housewares | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 282,056,000 | 282,056,000 | |
Gross Carrying Amount | 282,056,000 | 282,056,000 | 282,056,000 |
Goodwill Net Book Value | 282,056,000 | 282,056,000 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Accumulated Amortization | (21,469,000) | (19,398,000) | |
Goodwill and Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, balance at the beginning of the period | 457,673,000 | 457,084,000 | |
Additions | 709,000 | 684,000 | |
Retirement / Reclassification Adjustments | (31,000) | (95,000) | |
Gross Carrying Amount, balance at the end of the period | 458,351,000 | 457,673,000 | 457,084,000 |
Net Book Value | $ 436,882,000 | $ 438,275,000 | |
Housewares | Other intangible assets | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 13 years 9 months 18 days | 14 years 8 months 12 days | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 41,417,000 | $ 40,828,000 | |
Intangible assets - finite-lived, Additions | 709,000 | 684,000 | |
Intangible assets - finite-lived, Retirement/Reclassification Adjustments | (31,000) | (95,000) | |
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 42,095,000 | 41,417,000 | 40,828,000 |
Intangible assets - finite-lived, Accumulated Amortization | (21,469,000) | (19,398,000) | |
Intangible assets - finite-lived, Net Book Value | 20,626,000 | 22,019,000 | |
Housewares | Trademarks | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 134,200,000 | 134,200,000 | |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 134,200,000 | 134,200,000 | 134,200,000 |
Health and home | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 284,913,000 | 284,913,000 | |
Gross Carrying Amount | 284,913,000 | 284,913,000 | 284,913,000 |
Goodwill Net Book Value | 284,913,000 | 284,913,000 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Accumulated Amortization | (113,894,000) | (103,355,000) | |
Goodwill and Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, balance at the beginning of the period | 481,330,000 | 479,199,000 | |
Additions | 256,000 | 2,131,000 | |
Gross Carrying Amount, balance at the end of the period | 481,586,000 | 481,330,000 | 479,199,000 |
Net Book Value | $ 367,692,000 | $ 377,975,000 | |
Health and home | Licenses | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 3 years 8 months 12 days | 4 years 8 months 12 days | |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 1,648,000 | ||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | $ 1,648,000 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 17,050,000 | 15,300,000 | |
Intangible assets - finite-lived, Additions | 1,750,000 | ||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 17,050,000 | 17,050,000 | 15,300,000 |
Intangible assets - finite-lived, Accumulated Amortization | (15,752,000) | $ (15,402,000) | |
Intangible assets - finite-lived, Net Book Value | $ 1,298,000 | ||
Health and home | Other intangible assets | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 5 years 9 months 18 days | 5 years 6 months | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 117,967,000 | $ 117,586,000 | |
Intangible assets - finite-lived, Additions | 256,000 | 381,000 | |
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 118,223,000 | 117,967,000 | 117,586,000 |
Intangible assets - finite-lived, Accumulated Amortization | (98,142,000) | (87,953,000) | |
Intangible assets - finite-lived, Net Book Value | 20,081,000 | 30,014,000 | |
Health and home | Trademarks | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 54,000,000 | 54,000,000 | |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 54,000,000 | 54,000,000 | 54,000,000 |
Health and home | Licenses | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 7,400,000 | 7,400,000 | |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 7,400,000 | 7,400,000 | 7,400,000 |
Beauty | |||
Goodwill [Roll Forward] | |||
Gross Carrying Amount | 81,841,000 | 81,841,000 | |
Cumulative Goodwill Impairments | (71,993,000) | (46,490,000) | (46,490,000) |
Goodwill, Impairment Loss | (25,503,000) | ||
Gross Carrying Amount | 244,925,000 | 81,841,000 | 81,841,000 |
Goodwill Net Book Value | 172,932,000 | 35,351,000 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Additions | 172,933,000 | ||
Intangible assets - finite-lived, Reclassification to Held for Sale | (32,047,000) | ||
Intangible assets - finite-lived, Accumulated Amortization | (62,913,000) | (58,710,000) | |
Goodwill and Intangible Assets [Roll Forward] | |||
Gross Carrying Amount, balance at the beginning of the period | 182,796,000 | 182,796,000 | |
Cumulative Goodwill Impairments | (71,993,000) | (46,490,000) | (46,490,000) |
Cumulative Goodwill Impairments | (71,993,000) | ||
Additions | 235,933,000 | ||
Impairments | (41,000,000) | 0 | |
Gross Carrying Amount, balance at the end of the period | 371,185,000 | 182,796,000 | 182,796,000 |
Net Book Value | $ 236,279,000 | $ 77,596,000 | |
Beauty | Trademarks | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 14 years 10 months 24 days | 9 years 7 months 6 days | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 150,000 | $ 150,000 | |
Intangible assets - finite-lived, Additions | 30,000,000 | ||
Intangible assets - finite-lived, Impairments | (11,168,000) | ||
Intangible assets - finite-lived, Retirement/Reclassification Adjustments | 30,407,000 | ||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 33,392,000 | 150,000 | 150,000 |
Intangible assets - finite-lived, Reclassification to Held for Sale | (15,997,000) | ||
Intangible assets - finite-lived, Accumulated Amortization | (3,564,000) | (102,000) | |
Intangible assets - finite-lived, Net Book Value | $ 29,828,000 | $ 48,000 | |
Beauty | Licenses | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 2 years 9 months 18 days | 3 years 9 months 18 days | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 13,696,000 | $ 13,696,000 | |
Intangible assets - finite-lived, Impairments | (4,234,000) | ||
Intangible assets - finite-lived, Retirement/Reclassification Adjustments | 10,300,000 | ||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 13,697,000 | 13,696,000 | 13,696,000 |
Intangible assets - finite-lived, Reclassification to Held for Sale | (6,065,000) | ||
Intangible assets - finite-lived, Accumulated Amortization | (12,800,000) | (12,482,000) | |
Intangible assets - finite-lived, Net Book Value | $ 897,000 | $ 1,214,000 | |
Beauty | Other intangible assets | |||
Goodwill and intangible assets | |||
Weighted Average Life (Years) | 10 years 8 months 12 days | 4 years 7 months 6 days | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 46,402,000 | $ 46,402,000 | |
Intangible assets - finite-lived, Additions | 33,000,000 | ||
Intangible assets - finite-lived, Impairments | (95,000) | ||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 79,171,000 | 46,402,000 | 46,402,000 |
Intangible assets - finite-lived, Reclassification to Held for Sale | (136,000) | ||
Intangible assets - finite-lived, Accumulated Amortization | (46,549,000) | (46,126,000) | |
Intangible assets - finite-lived, Net Book Value | 32,622,000 | 276,000 | |
Beauty | Trademarks | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 30,407,000 | 30,407,000 | |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 0 | 30,407,000 | 30,407,000 |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Retirement/Reclassification Adjustments | (30,407,000) | ||
Beauty | Licenses | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 10,300,000 | 10,300,000 | |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 0 | $ 10,300,000 | $ 10,300,000 |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Retirement/Reclassification Adjustments | (10,300,000) | ||
Goodwill | Beauty | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Reclassification to Held for Sale | (9,849,000) | ||
Other intangible assets | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Accumulated Amortization | (4,474,000,000) | ||
Other intangible assets | Beauty | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets - finite-lived, Accumulated Amortization | $ (49,400,000) |
- Amortization (Details)
- Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets continued operations | $ 21,271 | $ 14,204 | $ 18,854 |
Estimated Amortization Expense | |||
Fiscal 2021 | 16,600 | ||
Fiscal 2022 | 10,276 | ||
Fiscal 2023 | 10,202 | ||
Fiscal 2024 | 9,817 | ||
Fiscal 2025 | $ 9,130 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Millions | Aug. 22, 2018shares | Feb. 29, 2020USD ($)Plan$ / sharesshares | Feb. 28, 2019USD ($)$ / sharesshares | Feb. 28, 2018USD ($)$ / sharesshares |
Share-based compensation plans | ||||
Number of expired share based compensation plans | Plan | 1 | |||
Number of active share-based compensation plans | Plan | 2 | |||
New grants (in shares) | 0 | 0 | 0 | |
The 2018 Plan | ||||
Share-based compensation plans | ||||
Number of shares of common stock covered for issuance under share-based compensation plan (in shares) | 2,000,000 | |||
Shares issued under 2008 directors' plan (in shares) | 6,464 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 150.86 | |||
Employee Stock | ||||
Share-based compensation plans | ||||
Shares purchased for 2018 ESPP (in shares) | 14,848 | |||
Maximum withholding percentage of employee wages or salaries for the purchase of shares of common stock | 15.00% | |||
Purchase price for shares acquired under the plan as a percentage of the share's fair market value | 85.00% | |||
Restricted Stock Units (RSU) | The 2018 Plan | ||||
Share-based compensation plans | ||||
Grant date fair value (in dollars per share) | $ / shares | $ 110.92 | $ 125.40 | $ 0 | |
Restricted Stock Units (RSU) | 2008 Stock Incentive Plan | ||||
Share-based compensation plans | ||||
Grant date fair value (in dollars per share) | $ / shares | $ 164.60 | $ 84.02 | $ 96.44 | |
Restricted Stock Units (RSU) | Directors | The 2018 Plan | ||||
Share-based compensation plans | ||||
Shares issued under 2008 directors' plan (in shares) | 4,336 | 2,128 | 0 | |
Aggregate grant date fair value of shares issued (in dollars per share) | $ | $ 0.6 | $ 0.3 | ||
Grant date fair value (in dollars per share) | $ / shares | $ 139.36 | $ 131.74 | ||
Restricted Stock Units (RSU) | Directors | 2008 Plan | ||||
Share-based compensation plans | ||||
Shares issued under 2008 directors' plan (in shares) | 0 | 2,737 | 5,658 | |
Aggregate grant date fair value of shares issued (in dollars per share) | $ | $ 0.2 | $ 0.5 | ||
Grant date fair value (in dollars per share) | $ / shares | $ 89.77 | $ 92.95 | ||
Maximum | Employee Stock | ||||
Share-based compensation plans | ||||
Shares purchased for 2018 ESPP (in shares) | 750,000 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Shares Available for Issue (Details) - The 2018 Plan - shares | 12 Months Ended | |
Feb. 29, 2020 | Aug. 22, 2018 | |
Share-based compensation plans | ||
Shares originally authorized (in shares) | 2,000,000 | |
Less share awards issued (in shares) | (6,464) | |
Plus forfeitures (in shares) | 32,126 | |
Less share awards previously vested and settled (in shares) | 0 | |
Subtotal (in shares) | 2,025,662 | |
Shares available for issuance (in shares) | 1,643,328 | |
Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Less shares issuable upon vesting (in shares) | (259,932) | |
Performance Stock Awards | ||
Share-based compensation plans | ||
Less shares issuable upon vesting (in shares) | (122,402) |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Included in SG&A (Details) - SG&A - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 22,929 | $ 22,053 | $ 15,054 |
Less income tax benefits | (1,803) | (1,395) | (1,669) |
Share-based compensation expense, net of income tax benefits | $ 21,126 | $ 20,658 | $ 13,385 |
Continuing operations earnings per share impact of share-based compensation expense: | |||
Basic (in shares) | $ 0.84 | $ 0.79 | $ 0.49 |
Diluted (in shares) | $ 0.83 | $ 0.79 | $ 0.49 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 189 | $ 829 | $ 1,634 |
Performance based and other stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 21,351 | 20,047 | 12,631 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 785 | 651 | 264 |
Directors | Directors stock compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 604 | $ 526 | $ 525 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Unrecognized Share Based Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Feb. 29, 2020USD ($) | |
Stock options | |
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | |
Unrecognized Compensation Expense | $ 19 |
Weighted Average Period of Recognition (in years) | 18 days |
Restricted stock (RSUs, PSUs, RSAs and PSAs) | |
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | |
Unrecognized Compensation Expense | $ 18,515 |
Weighted Average Period of Recognition (in years) | 2 years |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Aug. 22, 2018 | |
Options | |||||
Grants (in shares) | 0 | 0 | 0 | ||
Employee Stock | |||||
Share-based compensation plans | |||||
Maximum withholding percentage of employee wages or salaries for the purchase of shares of common stock | 15.00% | ||||
Stock options | |||||
Options | |||||
Outstanding at the beginning of the period (in shares) | 163,000 | 300,000 | 448,000 | ||
Grants (in shares) | 0 | 0 | 0 | ||
Exercises (in shares) | (93,000) | (126,000) | (126,000) | ||
Forfeitures / expirations (in shares) | (1,000) | (11,000) | (22,000) | ||
Outstanding at the end of the period (in shares) | 69,000 | 163,000 | 300,000 | 448,000 | |
Exercisable at the end of the period (in shares) | 66,000 | ||||
Weighted Average Exercise Price (per share) | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 63.47 | $ 58.35 | $ 57.41 | ||
Grants (in dollars per share) | 0 | 0 | 0 | ||
Exercises (in dollars per share) | 57.09 | 49.82 | 52.28 | ||
Forfeitures / expirations (in dollars per share) | 87.61 | 80.33 | 72.37 | ||
Outstanding at the end of the period (in dollars per share) | 71.78 | 63.47 | 58.35 | $ 57.41 | |
Exercisable at the end of the period (in dollars per share) | 71.10 | ||||
Weighted Average Grant Date Fair Value (per share) | |||||
Outstanding at the beginning of the period (in dollars per share) | 48.64 | 32.04 | 20.54 | ||
Grants (in dollars per share) | 0 | 0 | 0 | ||
Outstanding at the end of the period (in dollars per share) | 92.82 | $ 48.64 | $ 32.04 | $ 20.54 | |
Exercisable at the end of the period (in dollars per share) | $ 93.50 | ||||
Weighted Average Remaining Contractual Term (in years) | |||||
Weighted average remaining contractual term (in years) | 3 years 2 months 12 days | 3 years 7 months 6 days | 4 years 3 months 18 days | 5 years | |
Exercisable at the end of the period (in shares) | 3 years 1 month 6 days | ||||
Intrinsic Value | |||||
Outstanding at the beginning of the period (in shares) | $ 7,925 | $ 9,606 | $ 18,097 | ||
Exercises (in shares) | 9,059 | 6,414 | 5,400 | ||
Outstanding at the end of the period (in shares) | 6,333 | $ 7,925 | $ 9,606 | $ 18,097 | |
Exercisable at the end of the period (in shares) | $ 6,157 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans - Non-Vested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Non- Vested Options | |||
Grants (in shares) | 0 | 0 | 0 |
Stock options | |||
Non- Vested Options | |||
Outstanding at the beginning of the period (in shares) | 37,000 | 125,000 | 280,000 |
Grants (in shares) | 0 | 0 | 0 |
Vested or forfeited (in shares) | (35,000) | (88,000) | (155,000) |
Outstanding at the end of the period (in shares) | 2,000 | 37,000 | 125,000 |
Weighted Average Grant Date Fair Value (per share) | |||
Outstanding at the beginning of the period (in dollars per share) | $ 30.44 | $ 19.31 | $ 22.48 |
Grants (in dollars per share) | 0 | 0 | 0 |
Vested or forfeited (in dollars per share) | 27.36 | 14.67 | 25.02 |
Outstanding at the end of the period (in dollars per share) | $ 74.09 | $ 30.44 | $ 19.31 |
Share-Based Compensation Plan_8
Share-Based Compensation Plans - Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | |
Fair Value at Grant Date | ||||
Target percentage for performance stock awards | 100.00% | |||
Restricted Stock Awards | ||||
Restricted Stock Units | ||||
Outstanding at the beginning of the period (in shares) | 0 | |||
Granted/Earned (in shares) | 49,000 | |||
Vested or forfeited (in shares) | (4,000) | |||
Outstanding at the end of the period (in shares) | 45,000 | 0 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | |||
Grant date fair value (in dollars per share) | 118.51 | |||
Vested in period, fair value at award date (in dollars per share) | 123.17 | |||
Outstanding at the end of the period (in dollars per share) | $ 118.11 | $ 0 | ||
Fair Value at Grant Date | ||||
Fair value outstanding | $ 5,354 | $ 0 | ||
Performance Stock Awards (2) | ||||
Restricted Stock Units | ||||
Outstanding at the beginning of the period (in shares) | 0 | |||
Granted/Earned (in shares) | 122,000 | |||
Vested or forfeited (in shares) | (4,000) | |||
Outstanding at the end of the period (in shares) | 118,000 | 0 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | |||
Grant date fair value (in dollars per share) | 110.85 | |||
Vested in period, fair value at award date (in dollars per share) | 110.85 | |||
Outstanding at the end of the period (in dollars per share) | $ 110.85 | $ 0 | ||
Fair Value at Grant Date | ||||
Fair value outstanding | $ 13,130 | $ 0 | ||
2008 Stock Incentive Plan | Restricted Stock Units (RSU) | ||||
Restricted Stock Units | ||||
Outstanding at the beginning of the period (in shares) | 352,000 | 310,000 | 322,000 | |
Granted/Earned (in shares) | 49,000 | 197,000 | 262,000 | |
Vested or forfeited (in shares) | (192,000) | (155,000) | (274,000) | |
Outstanding at the end of the period (in shares) | 209,000 | 352,000 | 310,000 | |
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 92.45 | $ 90.05 | $ 81.19 | |
Grant date fair value (in dollars per share) | 164.60 | 84.02 | 96.44 | |
Vested in period, fair value at award date (in dollars per share) | 82.19 | 78.71 | ||
Vested or forfeited (in dollars per share) | 95.48 | |||
Outstanding at the end of the period (in dollars per share) | $ 90.73 | $ 92.45 | $ 90.05 | |
Fair Value at Grant Date | ||||
Fair value outstanding | $ 19,010 | $ 32,519 | $ 27,944 | $ 31,418 |
2008 Stock Incentive Plan | Restricted stock (RSUs, PSUs, RSAs and PSAs) | ||||
Weighted Average Grant Date Fair Value (per share) | ||||
Vested in period, fair value at award date (in dollars per share) | $ 95.98 | $ 81.23 | $ 62.88 | |
Fair Value at Grant Date | ||||
RSUs and PSUs vested (in shares) | 175,022 | 141,541 | 192,002 | |
RSUs and PSUs settled (in shares) | 175,022 | 141,541 | 192,002 | |
The 2018 Plan | ||||
Weighted Average Grant Date Fair Value (per share) | ||||
Grant date fair value (in dollars per share) | $ 150.86 | |||
Fair Value at Grant Date | ||||
Less share awards previously vested and settled (in shares) | 0 | |||
The 2018 Plan | Restricted Stock Units (RSU) | ||||
Restricted Stock Units | ||||
Outstanding at the beginning of the period (in shares) | 74,000 | 0 | 0 | |
Granted/Earned (in shares) | 254,000 | 79,000 | 0 | |
Vested or forfeited (in shares) | (45,000) | (5,000) | 0 | |
Outstanding at the end of the period (in shares) | 283,000 | 74,000 | 0 | |
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 125.45 | $ 0 | $ 0 | |
Grant date fair value (in dollars per share) | 110.92 | 125.40 | 0 | |
Vested in period, fair value at award date (in dollars per share) | 124.71 | 0 | ||
Vested or forfeited (in dollars per share) | 122.55 | |||
Outstanding at the end of the period (in dollars per share) | $ 112.85 | $ 125.45 | $ 0 | |
Fair Value at Grant Date | ||||
Fair value outstanding | $ 31,907 | $ 9,202 | $ 0 | $ 0 |
RSUs and PSUs vested (in shares) | 20,240 | 900 | ||
RSUs and PSUs settled (in shares) | 20,240 | 900 | ||
Vested and settled on active plans (in shares) | $ 125.34 | $ 120.70 | ||
Less share awards previously vested and settled (in shares) | 1,014 | |||
Minimum | ||||
Fair Value at Grant Date | ||||
Target percentage for performance stock awards | 0.00% | |||
Maximum | ||||
Fair Value at Grant Date | ||||
Target percentage for performance stock awards | 200.00% |
Defined Contribution Plans - Na
Defined Contribution Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Defined Contribution Plan [Abstract] | |||
Total matching contributions to saving plans | $ 4.3 | $ 4 | $ 3.9 |
Repurchases of Helen of Troy _2
Repurchases of Helen of Troy Common Stock - Narrative (Details) - USD ($) | May 08, 2019 | Feb. 29, 2020 | May 31, 2019 |
Equity [Abstract] | |||
Amount of shares authorized for purchase | $ 400,000,000 | ||
Period for stock repurchase | 3 years | ||
Stock repurchase prior program remaining authorized repurchase amount | $ 107,400,000 | ||
Remaining share repurchase amount | $ 393,000,000 |
Repurchases of Helen of Troy _3
Repurchases of Helen of Troy Common Stock - Summary of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Repurchase of common stock | |||
Aggregate value of shares (in USD) | $ 10,169 | $ 217,493 | $ 73,053 |
Number of shares (in shares) | 77,272 | 59,024 | 75,785 |
Aggregate value of shares (in USD) | $ 10,169 | $ 5,413 | $ 7,258 |
Average price per share (in dollars per share) | $ 131.61 | $ 91.70 | $ 95.77 |
Open market or tender offer | |||
Repurchase of common stock | |||
Number of shares (in shares) | 0 | 1,875,469 | 717,300 |
Aggregate value of shares (in USD) | $ 0 | $ 212,080 | $ 65,795 |
Average price per share (in dollars per share) | $ 0 | $ 113.08 | $ 91.73 |
Restructuring Plan - Narrative
Restructuring Plan - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Restructuring Plan | |||||||||||
Restructuring charges | $ 2,252 | $ 12 | $ 430 | $ 619 | $ 977 | $ 25 | $ 859 | $ 1,725 | $ 3,313 | $ 3,586 | $ 1,857 |
Restructuring liability | 800 | 800 | |||||||||
Cash restructuring payments | 8,000 | ||||||||||
Project Refuel | |||||||||||
Restructuring Plan | |||||||||||
Expected restructuring costs | $ 9,500 | 9,500 | |||||||||
Restructuring charges | 8,700 | ||||||||||
Cash restructuring payments to date | 3,800 | ||||||||||
Minimum | Project Refuel | |||||||||||
Restructuring Plan | |||||||||||
Targeted annualized profit improvement | 9,000 | ||||||||||
Maximum | Project Refuel | |||||||||||
Restructuring Plan | |||||||||||
Targeted annualized profit improvement | $ 11,000 |
Other Commitments and Conting_3
Other Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | |
May 31, 2018 | Feb. 29, 2020 | |
Contractual obligations and commercial commitments | ||
Total | $ 760,993 | |
2021, 1 year | 295,747 | |
2022, 2 years | 360,788 | |
2023, 3 years | 27,849 | |
2024, 4 years | 32,291 | |
2025, 5 years | 9,948 | |
After 5 years | 34,370 | |
Thermometer patent litigation | Settled litigation | ||
Other Commitments [Line Items] | ||
Litigation settlement paid | $ 15,000 | |
Capital spending commitments | ||
Contractual obligations and commercial commitments | ||
Total | 2,716 | |
2021, 1 year | 1,986 | |
2022, 2 years | 596 | |
2023, 3 years | 134 | |
2024, 4 years | 0 | |
2025, 5 years | 0 | |
After 5 years | 0 | |
Open purchase orders | ||
Contractual obligations and commercial commitments | ||
Total | 239,841 | |
2021, 1 year | 239,841 | |
2022, 2 years | 0 | |
2023, 3 years | 0 | |
2024, 4 years | 0 | |
2025, 5 years | 0 | |
After 5 years | 0 | |
Floating rate debt | ||
Contractual obligations and commercial commitments | ||
Total | 340,507 | |
2021, 1 year | 1,900 | |
2022, 2 years | 321,900 | |
2023, 3 years | 1,900 | |
2024, 4 years | 14,807 | |
2025, 5 years | 0 | |
After 5 years | 0 | |
Long-term incentive plan payouts | ||
Contractual obligations and commercial commitments | ||
Total | 9,018 | |
2021, 1 year | 5,614 | |
2022, 2 years | 3,404 | |
2023, 3 years | 0 | |
2024, 4 years | 0 | |
2025, 5 years | 0 | |
After 5 years | 0 | |
Interest on floating rate debt | ||
Contractual obligations and commercial commitments | ||
Total | 16,653 | |
2021, 1 year | 9,142 | |
2022, 2 years | 7,124 | |
2023, 3 years | 386 | |
2024, 4 years | 1 | |
2025, 5 years | 0 | |
After 5 years | 0 | |
Operating Leases | ||
Contractual obligations and commercial commitments | ||
Total | 62,876 | |
2021, 1 year | 6,082 | |
2022, 2 years | 5,959 | |
2023, 3 years | 5,601 | |
2024, 4 years | 5,102 | |
2025, 5 years | 5,762 | |
After 5 years | 34,370 | |
Minimum royalty payments | ||
Contractual obligations and commercial commitments | ||
Total | 55,154 | |
2021, 1 year | 12,823 | |
2022, 2 years | 12,674 | |
2023, 3 years | 13,090 | |
2024, 4 years | 12,381 | |
2025, 5 years | 4,186 | |
After 5 years | 0 | |
Advertising and promotional | ||
Contractual obligations and commercial commitments | ||
Total | 34,228 | |
2021, 1 year | 18,359 | |
2022, 2 years | 9,131 | |
2023, 3 years | 6,738 | |
2024, 4 years | 0 | |
2025, 5 years | 0 | |
After 5 years | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Mar. 24, 2020 | Mar. 13, 2020 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Long-term debt | |||||
Maximum allowable increase due to accordion feature | $ 200,000,000 | ||||
Proceeds from line of credit | 771,300,000 | $ 667,250,000 | $ 521,200,000 | ||
Cash and cash equivalents | 24,467,000 | $ 11,871,000 | |||
Credit agreement | |||||
Long-term debt | |||||
Unsecured total revolving commitment | 1,000,000,000 | ||||
Remaining borrowing capacity on line of credit | 671,000,000 | ||||
Credit agreement | Revolving loan | |||||
Long-term debt | |||||
Outstanding line of credit | 320,000,000 | ||||
Credit agreement | Letter of credit | |||||
Long-term debt | |||||
Outstanding line of credit | $ 9,000,000 | ||||
Subsequent Event | |||||
Long-term debt | |||||
Maximum allowable increase due to accordion feature | $ 300,000,000 | ||||
Cash and cash equivalents | $ 393,000,000 | ||||
Subsequent Event | Credit agreement | |||||
Long-term debt | |||||
Unsecured total revolving commitment | $ 1,250,000,000 | ||||
Remaining borrowing capacity on line of credit | 536,400,000 | ||||
Proceeds from line of credit | 200,000,000 | ||||
Cash and cash equivalents | $ 393,000,000 | ||||
Minimum | Base rate | Subsequent Event | |||||
Long-term debt | |||||
Margin (as a percent) | 0.00% | ||||
Minimum | Eurodollar | Subsequent Event | |||||
Long-term debt | |||||
Margin (as a percent) | 1.00% | ||||
Maximum | Base rate | Subsequent Event | |||||
Long-term debt | |||||
Margin (as a percent) | 1.00% | ||||
Maximum | Eurodollar | Subsequent Event | |||||
Long-term debt | |||||
Margin (as a percent) | 2.00% |
Long-Term Debt - Schedule (Deta
Long-Term Debt - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | $ 339,305 | $ 320,784 |
Less current maturities of long-term debt | (1,884) | (1,884) |
Long-term debt, excluding current maturities | 337,421 | 318,900 |
MBFC loan | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | 20,451 | 22,335 |
Maturities of Long-term Debt [Abstract] | ||
Outstanding principal payable next twelve months | 1,900 | |
Outstanding principal payable, rolling year two | 1,900 | |
Outstanding principal payable, rolling year three | 1,900 | |
Outstanding principal payable, rolling year four | $ 14,800 | |
MBFC loan | Base rate | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 1.00% | |
MBFC loan | LIBOR | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 2.00% | |
Credit agreement | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | $ 318,854 | $ 298,449 |
Maturities of Long-term Debt [Abstract] | ||
Principal amount hedged | $ 225,000 |
- Interest Rates (Details)
- Interest Rates (Details) - Credit agreement $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020USD ($)Quarter | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | |
Revolving Line of Credit | |||
Average borrowings outstanding | $ | $ 286,640 | $ 290,860 | $ 382,960 |
Average interest rates during each year (as a percent) | 3.20% | 3.20% | 2.70% |
Weighted average interest rates on borrowings outstanding at year end (as a percent) | 2.70% | 3.60% | 2.90% |
Number of prior quarters used in calculation of average borrowings outstanding | Quarter | 4 | ||
Minimum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 2.60% | 2.80% | 2.30% |
Maximum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 5.50% | 5.50% | 4.80% |
Long-Term Debt - FV, Limit, Int
Long-Term Debt - FV, Limit, Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
INTEREST EXPENSE | |||
Interest and commitment fees | $ 10,970 | $ 11,366 | $ 13,084 |
Deferred finance costs | 1,620 | 1,015 | 887 |
Interest rate swap settlements, net | 262 | (515) | 54 |
Cross-currency debt swap | (147) | (147) | (74) |
Total interest expense | $ 12,705 | $ 11,719 | $ 13,951 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - Recurring - Significant other observable market inputs (Level 2) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Assets: | ||
Total assets | $ 4,731 | $ 3,119 |
Liabilities: | ||
Total liabilities | 350,181 | 321,686 |
Floating rate debt | ||
Liabilities: | ||
Floating rate debt | 339,305 | 320,784 |
Interest rate swaps | ||
Assets: | ||
Derivative assets | 0 | 512 |
Liabilities: | ||
Derivative liabilities | 339 | 10,717 |
Foreign currency contracts | ||
Assets: | ||
Derivative assets | 2,083 | 1,692 |
Liabilities: | ||
Derivative liabilities | 159 | 563 |
Money market accounts | ||
Assets: | ||
Money market accounts | $ 2,648 | $ 915 |
Fair Value - Other Non-Financia
Fair Value - Other Non-Financial Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Total income (expense): | ||
Reclassification to assets held for sale | $ (27,573) | $ 0 |
Other non-financial assets | Significant unobservable inputs (Level 3) | ||
Fair value measurement on non-recurring basis using significant unobservable inputs (Level 3) | ||
Beginning balances | 893,846 | 905,235 |
Total income (expense): | ||
Included in net income - realized | (62,287) | (14,109) |
Acquired during the period | 236,898 | 2,815 |
Retirement adjustments during the period | (31) | (95) |
Ending balances | $ 1,040,853 | $ 893,846 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
SG&A | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | $ 2.2 | $ 1.3 | $ (3.1) |
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Concentration risk percentage | 14.00% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Interest Rate Risk (Details) $ in Millions | Feb. 29, 2020USD ($) |
Senior notes | |
Financial instruments and risk management | |
Fixed rate debt | $ 225 |
Credit agreement | |
Financial instruments and risk management | |
Floating rate debt | $ 320 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands | Feb. 29, 2020USD ($) | Feb. 29, 2020EUR (€) | Feb. 29, 2020GBP (£) | Feb. 28, 2019USD ($) | Feb. 28, 2019EUR (€) | Feb. 28, 2019GBP (£) |
Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | $ 2,060 | $ 1,986 | ||||
Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 23 | 218 | ||||
Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 3,633 | 258 | ||||
Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 7,243 | 644 | ||||
Designated as hedging instruments | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 1,560 | 1,986 | ||||
Designated as hedging instruments | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 23 | 0 | ||||
Designated as hedging instruments | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 3,633 | 258 | ||||
Designated as hedging instruments | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 7,243 | 352 | ||||
Designated as hedging instruments | Zero-cost collar contract | Euros | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | € | € 8,000 | € 9,500 | ||||
Designated as hedging instruments | Zero-cost collar contract | Euros | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 74 | 11 | ||||
Designated as hedging instruments | Zero-cost collar contract | Euros | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Zero-cost collar contract | Euros | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Zero-cost collar contract | Euros | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Zero-cost collar contract | Pounds | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | £ 6,500 | 4,500 | ||||
Designated as hedging instruments | Zero-cost collar contract | Pounds | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Zero-cost collar contract | Pounds | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Zero-cost collar contract | Pounds | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 144 | 200 | ||||
Designated as hedging instruments | Zero-cost collar contract | Pounds | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | 25,875 | 29,000 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 837 | 1,047 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 15 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian dollars | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | 14,000 | £ 16,000 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian dollars | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 202 | 168 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian dollars | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian dollars | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian dollars | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | 13,000 | 19,500 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 435 | 248 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 23 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 13 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican pesos | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | 10,000 | 30,000 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican pesos | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 12 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican pesos | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican pesos | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 58 | ||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican pesos | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Designated as hedging instruments | Interest rate swaps | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | 225,000 | 225,000 | ||||
Designated as hedging instruments | Interest rate swaps | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 512 | ||||
Designated as hedging instruments | Interest rate swaps | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Designated as hedging instruments | Interest rate swaps | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 3,489 | 0 | ||||
Designated as hedging instruments | Interest rate swaps | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 7,228 | 339 | ||||
Not designated under hedge accounting | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 500 | 0 | ||||
Not designated under hedge accounting | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 218 | ||||
Not designated under hedge accounting | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Not designated under hedge accounting | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 292 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | € | € 5,280 | € 5,280 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 473 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 218 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative notional amount | £ | £ 6,395 | £ 6,395 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | Prepaid expenses and other current assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 27 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | Other assets | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative assets | 0 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | Accrued expenses and other current liability | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | 0 | 0 | ||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | Other liabilities, non-current | ||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||
Derivative liabilities | $ 0 | $ 292 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in OCI (effective portion) | $ (13,646) | |
Gain (Loss) Recognized in OCI (effective portion) | $ (2,402) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (2,977) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (2,488) | |
Gain (Loss) Recognized As Income | 459 | |
Gain (Loss) Recognized As Income | 1,362 | |
Foreign currency contracts | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized As Income | 0 | |
Gain (Loss) Recognized As Income | 0 | |
Foreign currency contracts | Cash flow hedges | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in OCI (effective portion) | (2,756) | |
Gain (Loss) Recognized in OCI (effective portion) | (94) | |
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income | (2,100) | |
Foreign currency contracts | Cash flow hedges | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (2,977) | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (2,488) | |
Interest rate swaps | Interest expense | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized As Income | (262) | |
Gain (Loss) Recognized As Income | 515 | |
Interest rate swaps | Cash flow hedges | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in OCI (effective portion) | (10,890) | |
Gain (Loss) Recognized in OCI (effective portion) | (2,308) | |
Interest rate swaps | Cash flow hedges | Interest expense | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Cross currency debt swaps | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in OCI (effective portion) | 0 | |
Gain (Loss) Recognized in OCI (effective portion) | 0 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Cross currency debt swaps | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | |
Gain (Loss) Recognized As Income | 574 | |
Gain (Loss) Recognized As Income | 700 | |
Cross currency debt swaps | Interest expense | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized As Income | $ 147 | |
Gain (Loss) Recognized As Income | $ 147 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Risks Inherent in Cash and Cash Equivalents | ||
Cash, interest and non-interest-bearing accounts - unrestricted | $ 21,819 | $ 10,956 |
Money market funds | 2,648 | 915 |
Cash and cash equivalents of continuing operations, ending balance | $ 24,467 | $ 11,871 |
Cash | Minimum | ||
Risks Inherent in Cash and Cash Equivalents | ||
Investment interest rate | 0.00% | 0.00% |
Cash | Maximum | ||
Risks Inherent in Cash and Cash Equivalents | ||
Investment interest rate | 0.30% | 0.30% |
Money Market Funds | Minimum | ||
Risks Inherent in Cash and Cash Equivalents | ||
Investment interest rate | 0.15% | 0.00% |
Money Market Funds | Maximum | ||
Risks Inherent in Cash and Cash Equivalents | ||
Investment interest rate | 5.39% | 1.25% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ 996,637 | $ 1,014,459 |
Other comprehensive income (loss) before reclassification | (13,646) | (2,402) |
Amounts reclassified out of accumulated other comprehensive income | 2,977 | 2,488 |
Tax effects | 2,473 | 474 |
Ending Balance | 1,161,723 | 996,637 |
Total | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 1,191 | 631 |
Total other comprehensive income (loss), net of tax | (8,196) | 560 |
Ending Balance | (7,005) | 1,191 |
Interest Rate Swaps | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 132 | 1,705 |
Other comprehensive income (loss) before reclassification | (10,890) | (2,308) |
Amounts reclassified out of accumulated other comprehensive income | 0 | 0 |
Tax effects | 2,559 | 735 |
Total other comprehensive income (loss), net of tax | (8,331) | (1,573) |
Ending Balance | (8,199) | 132 |
Foreign Currency Contracts | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 1,059 | (1,074) |
Other comprehensive income (loss) before reclassification | (2,756) | (94) |
Amounts reclassified out of accumulated other comprehensive income | 2,977 | 2,488 |
Tax effects | (86) | (261) |
Total other comprehensive income (loss), net of tax | 135 | 2,133 |
Ending Balance | $ 1,194 | $ 1,059 |
Segment and Geographic Inform_3
Segment and Geographic Information - Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment information | |||||||||||
Sales revenue, net | $ 442,365 | $ 474,737 | $ 413,995 | $ 376,335 | $ 384,843 | $ 431,081 | $ 393,548 | $ 354,679 | $ 1,707,432 | $ 1,564,151 | $ 1,478,845 |
Asset impairment charges | 41,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41,000 | 0 | 15,447 |
Restructuring charges | 2,252 | $ 12 | $ 430 | $ 619 | 977 | $ 25 | $ 859 | $ 1,725 | 3,313 | 3,586 | 1,857 |
Operating income | 178,251 | 199,379 | 169,062 | ||||||||
Identifiable assets | 1,903,883 | 1,649,335 | 1,903,883 | 1,649,335 | 1,623,717 | ||||||
Capital and intangible asset expenditures | 17,759 | 26,385 | 13,605 | ||||||||
Depreciation and amortization | 37,409 | 29,927 | 33,730 | ||||||||
Housewares | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 640,965 | 523,807 | 459,004 | ||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||
Restructuring charges | 1,351 | 926 | 220 | ||||||||
Operating income | 123,135 | 100,743 | 89,319 | ||||||||
Identifiable assets | 723,491 | 698,519 | 723,491 | 698,519 | 664,622 | ||||||
Capital and intangible asset expenditures | 10,602 | 16,023 | 8,537 | ||||||||
Depreciation and amortization | 7,298 | 6,048 | 5,825 | ||||||||
Health & Home | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 685,397 | 695,217 | 674,062 | ||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||
Restructuring charges | 93 | 686 | 0 | ||||||||
Operating income | 68,166 | 68,448 | 62,099 | ||||||||
Identifiable assets | 652,390 | 686,335 | 652,390 | 686,335 | 675,627 | ||||||
Capital and intangible asset expenditures | 5,853 | 8,508 | 3,716 | ||||||||
Depreciation and amortization | 16,113 | 17,058 | 16,750 | ||||||||
Beauty | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 381,070 | 345,127 | 345,779 | ||||||||
Asset impairment charges | 41,000 | 0 | 15,447 | ||||||||
Restructuring charges | 1,869 | 1,974 | 1,637 | ||||||||
Operating income | (13,050) | 30,188 | 17,644 | ||||||||
Identifiable assets | 528,002 | $ 264,481 | 528,002 | 264,481 | 283,468 | ||||||
Capital and intangible asset expenditures | 1,304 | 1,854 | 1,352 | ||||||||
Depreciation and amortization | 13,998 | $ 6,821 | $ 11,155 | ||||||||
Beauty | Assets Held for Sale | |||||||||||
Segment information | |||||||||||
Assets held for sale | $ 44,806 | $ 44,806 |
Segment and Geographic Inform_4
Segment and Geographic Information - Net Sales Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment information | |||||||||||
Sales revenue, net | $ 442,365 | $ 474,737 | $ 413,995 | $ 376,335 | $ 384,843 | $ 431,081 | $ 393,548 | $ 354,679 | $ 1,707,432 | $ 1,564,151 | $ 1,478,845 |
United States | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 1,357,345 | 1,221,806 | 1,161,698 | ||||||||
Canada | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 71,417 | 66,855 | 58,856 | ||||||||
EMEA | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 138,858 | 143,024 | 143,668 | ||||||||
Asia Pacific | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 99,378 | 90,073 | 75,376 | ||||||||
Latin America | |||||||||||
Segment information | |||||||||||
Sales revenue, net | $ 40,434 | $ 42,393 | $ 39,247 | ||||||||
Geographic concentration | Revenue from Contract with Customer | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 100.00% | 100.00% | 100.00% | ||||||||
Geographic concentration | Revenue from Contract with Customer | United States | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 79.50% | 78.10% | 78.60% | ||||||||
Geographic concentration | Revenue from Contract with Customer | Canada | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 4.20% | 4.30% | 4.00% | ||||||||
Geographic concentration | Revenue from Contract with Customer | EMEA | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 8.10% | 9.10% | 9.70% | ||||||||
Geographic concentration | Revenue from Contract with Customer | Asia Pacific | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 5.80% | 5.80% | 5.10% | ||||||||
Geographic concentration | Revenue from Contract with Customer | Latin America | |||||||||||
Segment information | |||||||||||
Concentration risk percentage | 2.40% | 2.70% | 2.70% |
Segment and Geographic Inform_5
Segment and Geographic Information - Narrative (Details) - Revenue from Contract with Customer - Customer concentration risk | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
First largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 18.00% | 16.00% | 13.00% |
Second largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.00% | 16.00% | 17.00% |
Third largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Five top customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 50.00% | 51.00% | 49.00% |
Segment and Geographic Inform_6
Segment and Geographic Information - Concentration Risk by Major Customer (Details) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Third largest customer | Revenue from Contract with Customer | Customer concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Segment and Geographic Inform_7
Segment and Geographic Information - Domestic and International Long-Lived Assets (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | $ 1,221,047 | $ 1,044,676 | $ 1,066,009 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 453,784 | 416,521 | 437,920 |
Barbados | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 606,261 | 499,589 | 496,258 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 161,002 | 128,566 | 131,831 |
Subtotal | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | $ 767,263 | $ 628,155 | $ 628,089 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales revenue, net | $ 442,365 | $ 474,737 | $ 413,995 | $ 376,335 | $ 384,843 | $ 431,081 | $ 393,548 | $ 354,679 | $ 1,707,432 | $ 1,564,151 | $ 1,478,845 |
Gross profit | 192,615 | 209,973 | 178,151 | 153,727 | 157,530 | 181,845 | 155,173 | 146,558 | 734,466 | 641,106 | 611,199 |
Asset impairment charges | 41,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41,000 | 0 | 15,447 |
Restructuring charges | 2,252 | 12 | 430 | 619 | 977 | 25 | 859 | 1,725 | 3,313 | 3,586 | 1,857 |
Income (loss) from continuing operations | (3,155) | 68,699 | 46,095 | 40,694 | 37,714 | 54,320 | 44,017 | 38,173 | 152,333 | 174,224 | 128,882 |
Loss from discontinued operations | $ 0 | $ 0 | $ 0 | $ 0 | $ (448) | $ (4,850) | $ 0 | $ (381) | $ 0 | $ (5,679) | $ (84,436) |
Earnings (loss) per share - basic | |||||||||||
Continuing operations (in dollars per share) | $ (0.13) | $ 2.73 | $ 1.84 | $ 1.63 | $ 1.49 | $ 2.08 | $ 1.67 | $ 1.44 | $ 6.06 | $ 6.68 | $ 4.76 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.02) | (0.19) | 0 | (0.01) | 0 | (0.22) | (3.12) |
Total earnings per share - basic (in dollars per share) | (0.13) | 2.73 | 1.84 | 1.63 | 1.47 | 1.90 | 1.67 | 1.42 | 6.06 | 6.46 | 1.64 |
Earnings (loss) per share - diluted | |||||||||||
Continuing operations (in dollars per share) | (0.13) | 2.71 | 1.83 | 1.61 | 1.47 | 2.06 | 1.66 | 1.43 | 6.02 | 6.62 | 4.73 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.02) | (0.18) | 0 | (0.01) | 0 | (0.22) | (3.10) |
Total earnings per share - diluted (in dollars per share) | $ (0.13) | $ 2.71 | $ 1.83 | $ 1.61 | $ 1.45 | $ 1.88 | $ 1.66 | $ 1.42 | $ 6.02 | $ 6.41 | $ 1.63 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Provisional tax expense | $ 17,900,000 | ||
Foreign earnings repatriated | $ 48,300,000 | ||
Undistributed earnings of foreign subsidiaries | 22,300,000 | ||
Net increase in valuation allowance | 3,000,000 | ||
U S tax liability for income generated In Macau | 0 | ||
Unrecognized tax benefits that would affect effective tax rate if recognized | 3,200,000 | ||
Liability for tax-related interest and penalties included in unrecognized tax benefits | 100,000 | 600,000 | |
Tax-related interest and penalties expense included in provisions for income tax | $ 500,000 | $ 500,000 | $ 500,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax and Deferred Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Components of income (loss) before income tax expense | |||
U.S. | $ 40,146 | $ 32,135 | $ 23,824 |
Non-U.S. | 125,794 | 155,865 | 131,614 |
Income before income tax | 165,940 | 188,000 | 155,438 |
U.S. | |||
Current | 16,732 | 2,460 | 3,380 |
Deferred | (4,789) | 10,480 | 19,578 |
U.S. | 11,943 | 12,940 | 22,958 |
Non-U.S. | |||
Current | 2,571 | 2,102 | 1,912 |
Deferred | (907) | (1,266) | 1,686 |
Non-U.S. | 1,664 | 836 | 3,598 |
Total | $ 13,607 | $ 13,776 | $ 26,556 |
Effective income tax rate reconciliation | |||
Effective income tax rate at the U.S. statutory rate | 21.00% | 21.00% | 32.70% |
Impact of U.S. state income taxes | 1.60% | 1.20% | 0.50% |
Effect of statutory tax rate in Macau | (13.60%) | (10.30%) | (19.50%) |
Effect of statutory tax rate in Barbados | (5.50%) | (5.90%) | (5.20%) |
Effect of statutory tax rate in Europe | (0.40%) | (1.90%) | (5.30%) |
Effect of income from other non-U.S. operations subject to varying rates | 2.30% | 1.80% | 2.10% |
Effect of foreign exchange fluctuations | 0.70% | 0.20% | 0.30% |
Effect of asset impairment charges | 2.40% | 0.00% | 2.20% |
Effect of U.S. tax reform | 0.00% | (0.10%) | 11.50% |
Effect of uncertain tax positions | (1.70%) | (0.60%) | (1.30%) |
Effect of nondeductible executive compensation | 1.40% | 0.90% | 0.60% |
Effect of base erosion and anti-abuse tax | 0.00% | 1.00% | 0.00% |
Other items | 0.00% | 0.00% | (1.50%) |
Effective income tax rate | 8.20% | 7.30% | 17.10% |
Deferred tax assets, gross: | |||
Operating loss carryforwards | $ 13,908 | $ 18,300 | |
Accounts receivable | 5,467 | 4,680 | |
Inventories | 8,751 | 7,806 | |
Operating lease liabilities | 10,451 | ||
Accrued expenses and other | 7,692 | 8,293 | |
Total gross deferred tax assets | 46,269 | 39,079 | |
Valuation allowance | (14,073) | (17,086) | |
Deferred tax liabilities: | |||
Operating lease assets | (7,573) | ||
Depreciation and amortization | (14,212) | (19,750) | |
Total deferred tax assets, net | $ 10,411 | $ 2,243 |
Income Taxes - Operating loss c
Income Taxes - Operating loss carryforwards (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Feb. 28, 2019 |
Deferred Tax Assets | ||
Subtotals | $ 13,908 | $ 18,300 |
Less portion of valuation allowance established for operating loss carryforwards | (13,406) | |
Total | 502 | |
Operating Loss Carryforward | ||
Subtotals | 54,435 | |
State | ||
Deferred Tax Assets | ||
Operating loss carryforwards with definite carryover periods | 245 | |
Operating Loss Carryforward | ||
Required future taxable income - operating loss carryforwards with definite carryover periods | 4,149 | |
Non-U.S. | ||
Deferred Tax Assets | ||
Operating loss carryforwards with definite carryover periods | 1,823 | |
Operating loss carryforwards with indefinite carryover periods | 11,840 | |
Operating Loss Carryforward | ||
Required future taxable income - operating loss carryforwards with definite carryover periods | 6,917 | |
Required future taxable income - operating loss carryforwards with indefinite carryover periods | $ 43,369 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Unrecognized Tax Benefits | ||
Total unrecognized tax benefits, beginning balance | $ 3,205 | $ 4,428 |
Resolution of tax dispute | 0 | 0 |
Changes in tax positions taken during a prior period | (2,819) | |
Changes in tax positions taken during a prior period | 15 | |
Lapse in statute of limitations | 0 | (1,057) |
Impact of foreign currency re-measurement | 0 | (161) |
Settlements | (273) | (20) |
Total unrecognized tax benefits, ending balance | 113 | 3,205 |
Less current unrecognized tax benefits | 0 | (316) |
Noncurrent unrecognized tax benefits | $ 113 | $ 2,889 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Weighted average diluted securities (in shares) | |||
Weighted average shares outstanding, basic (in shares) | 25,118 | 26,073 | 27,077 |
Incremental shares from share-based compensation arrangements (in shares) | 204 | 230 | 177 |
Weighted average shares outstanding, diluted (in shares) | 25,322 | 26,303 | 27,254 |
Antidilutive securities (in shares) | 197 | 262 | 319 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) | Mar. 24, 2020 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Mar. 13, 2020 |
Subsequent Event [Line Items] | |||||
Proceeds from line of credit | $ 771,300,000 | $ 667,250,000 | $ 521,200,000 | ||
Cash and cash equivalents | 24,467,000 | $ 11,871,000 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash and cash equivalents | $ 393,000,000 | ||||
Credit agreement | |||||
Subsequent Event [Line Items] | |||||
Unsecured total revolving commitment | 1,000,000,000 | ||||
Remaining borrowing capacity on line of credit | $ 671,000,000 | ||||
Credit agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Unsecured total revolving commitment | $ 1,250,000,000 | ||||
Proceeds from line of credit | 200,000,000 | ||||
Remaining borrowing capacity on line of credit | 536,400,000 | ||||
Cash and cash equivalents | $ 393,000,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Valuation and qualifying accounts (Details) - Allowances for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Valuation and Qualifying Accounts | |||
Beginning Balance | $ 2,032 | $ 2,912 | $ 3,266 |
Additions | 529 | 1,097 | 1,066 |
Deductions | 1,100 | 1,977 | 1,420 |
Ending Balance | $ 1,461 | $ 2,032 | $ 2,912 |
Uncategorized Items - fy20q410k
Label | Element | Value |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ (157,000) |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ (157,000) |