Cover page
Cover page - shares | 9 Months Ended | |
Nov. 30, 2020 | Dec. 29, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 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, $0.10 par value per share | |
Trading Symbol | HELE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,395,784 | |
Entity Central Index Key | 0000916789 | |
Current Fiscal Year End Date | --02-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Other Address | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | Clarendon House, 2 Church Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Country | BM |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Assets, current: | ||
Cash and cash equivalents | $ 156,661 | $ 24,467 |
Receivables - principally trade, less allowances of $3,956 and $1,461 | 500,070 | 348,023 |
Inventory | 383,440 | 256,311 |
Prepaid expenses and other current assets | 10,591 | 9,229 |
Assets held for sale | 39,306 | 44,806 |
Total assets, current | 1,090,068 | 682,836 |
Property and equipment, net of accumulated depreciation of $144,462 and $132,340 | 135,795 | 132,107 |
Goodwill | 739,901 | 739,901 |
Other intangible assets, net of accumulated amortization of $162,425 and $148,891 | 288,617 | 300,952 |
Operating lease assets | 32,277 | 32,645 |
Deferred tax assets, net | 21,568 | 14,635 |
Other assets, net of accumulated amortization of $2,167 and $2,167 | 3,518 | 807 |
Total assets | 2,311,744 | 1,903,883 |
Liabilities, current: | ||
Accounts payable, principally trade | 301,175 | 152,674 |
Accrued expenses and other current liabilities | 289,568 | 183,157 |
Income taxes payable | 5,878 | 1,181 |
Long-term debt, current maturities | 1,884 | 1,884 |
Total liabilities, current | 598,505 | 338,896 |
Long-term debt, excluding current maturities | 438,497 | 337,421 |
Lease liabilities, non-current | 39,279 | 40,861 |
Deferred tax liabilities, net | 5,636 | 4,224 |
Other liabilities, non-current | 19,389 | 20,758 |
Total liabilities | 1,101,306 | 742,160 |
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; 24,394,007 and 25,193,766 shares issued and outstanding | 2,439 | 2,519 |
Additional paid in capital | 277,289 | 268,043 |
Accumulated other comprehensive loss | (12,285) | (7,005) |
Retained earnings | 942,995 | 898,166 |
Total stockholders' equity | 1,210,438 | 1,161,723 |
Total liabilities and stockholders' equity | $ 2,311,744 | $ 1,903,883 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables - principally trade, allowances | $ 3,956 | $ 1,461 |
Property and equipment, accumulated depreciation | 144,462 | 132,340 |
Other intangible assets, accumulated amortization | 162,425 | 148,891 |
Other assets, accumulated amortization | $ 2,167 | $ 2,167 |
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) | 24,394,007 | 25,193,766 |
Common stock, shares outstanding (in shares) | 24,394,007 | 25,193,766 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales revenue, net | $ 637,737 | $ 474,737 | $ 1,589,424 | $ 1,265,067 |
Cost of goods sold | 350,410 | 264,764 | 892,460 | 723,216 |
Gross profit | 287,327 | 209,973 | 696,964 | 541,851 |
Selling, general and administrative expense (“SG&A”) | 186,630 | 130,692 | 439,646 | 359,794 |
Restructuring charges | (12) | 12 | 355 | 1,061 |
Operating income | 100,709 | 79,269 | 256,963 | 180,996 |
Non-operating income, net | 93 | 92 | 440 | 313 |
Interest expense | (2,926) | (2,767) | (9,568) | (9,291) |
Income before income tax | 97,876 | 76,594 | 247,835 | 172,018 |
Income tax expense | 13,721 | 7,895 | 16,061 | 16,530 |
Net income | $ 84,155 | $ 68,699 | $ 231,774 | $ 155,488 |
Earnings per share (“EPS”): | ||||
Earnings per share - basic (in dollars per share) | $ 3.37 | $ 2.73 | $ 9.20 | $ 6.19 |
Total earnings per share - diluted (in dollars per share) | $ 3.34 | $ 2.71 | $ 9.14 | $ 6.15 |
Weighted average shares used in computing EPS: | ||||
Basic (in shares) | 24,965 | 25,161 | 25,182 | 25,099 |
Diluted (in shares) | 25,192 | 25,396 | 25,350 | 25,295 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 84,155 | $ 68,699 | $ 231,774 | $ 155,488 |
Other comprehensive income (loss), net of tax: | ||||
Cash flow hedge activity - interest rate swaps | 1,180 | 1,599 | (696) | (5,562) |
Cash flow hedge activity - foreign currency contracts | 855 | (1,729) | (4,584) | (514) |
Total other comprehensive income (loss), net of tax | 2,035 | (130) | (5,280) | (6,076) |
Comprehensive income | $ 86,190 | $ 68,569 | $ 226,494 | $ 149,412 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Feb. 28, 2019 | 24,946,000 | ||||
Beginning balance at Feb. 28, 2019 | $ 996,637 | $ 2,495 | $ 246,585 | $ 1,191 | $ 746,366 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 155,488 | 155,488 | |||
Other comprehensive income (loss), net of tax | (6,076) | (6,076) | |||
Exercise of stock options (in shares) | 69,000 | ||||
Exercise of stock options | 4,190 | $ 7 | 4,183 | ||
Net issuance and settlement of restricted stock (in shares) | 199,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 21 | (21) | ||
Issuance of common stock related to stock purchase plan (in shares) | 30,000 | ||||
Issuance of common stock related to stock purchase plan | 2,835 | $ 2 | 2,833 | ||
Common stock repurchased and retired (in shares) | (77,000) | ||||
Common stock repurchased and retired | (10,133) | $ (8) | (9,592) | (533) | |
Share-based compensation | 18,743 | 18,743 | |||
Ending balance (in shares) at Nov. 30, 2019 | 25,167,000 | ||||
Ending balance at Nov. 30, 2019 | 1,161,684 | $ 2,517 | 262,731 | (4,885) | 901,321 |
Beginning balance (in shares) at Aug. 31, 2019 | 25,130,000 | ||||
Beginning balance at Aug. 31, 2019 | 1,087,375 | $ 2,513 | 256,995 | (4,755) | 832,622 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 68,699 | 68,699 | |||
Other comprehensive income (loss), net of tax | (130) | (130) | |||
Exercise of stock options (in shares) | 7,000 | ||||
Exercise of stock options | 557 | $ 1 | 556 | ||
Net issuance and settlement of restricted stock (in shares) | 21,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 3 | (3) | ||
Issuance of common stock related to stock purchase plan (in shares) | 15,000 | ||||
Issuance of common stock related to stock purchase plan | 1,427 | $ 1 | 1,426 | ||
Common stock repurchased and retired (in shares) | (6,000) | ||||
Common stock repurchased and retired | (1,002) | $ (1) | (1,001) | 0 | |
Share-based compensation | 4,758 | 4,758 | |||
Ending balance (in shares) at Nov. 30, 2019 | 25,167,000 | ||||
Ending balance at Nov. 30, 2019 | 1,161,684 | $ 2,517 | 262,731 | (4,885) | 901,321 |
Beginning balance (in shares) at Feb. 29, 2020 | 25,194,000 | ||||
Beginning balance at Feb. 29, 2020 | 1,161,723 | $ 2,519 | 268,043 | (7,005) | 898,166 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 231,774 | 231,774 | |||
Other comprehensive income (loss), net of tax | $ (5,280) | (5,280) | |||
Exercise of stock options (in shares) | 13,540 | 13,000 | |||
Exercise of stock options | $ 917 | $ 2 | 915 | ||
Net issuance and settlement of restricted stock (in shares) | 189,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 19 | (19) | ||
Issuance of common stock related to stock purchase plan (in shares) | 27,000 | ||||
Issuance of common stock related to stock purchase plan | 3,611 | $ 2 | 3,609 | ||
Common stock repurchased and retired (in shares) | (1,029,000) | ||||
Common stock repurchased and retired | (202,961) | $ (103) | (15,913) | (186,945) | |
Share-based compensation | 20,654 | 20,654 | |||
Ending balance (in shares) at Nov. 30, 2020 | 24,394,000 | ||||
Ending balance at Nov. 30, 2020 | 1,210,438 | $ 2,439 | 277,289 | (12,285) | 942,995 |
Beginning balance (in shares) at Aug. 31, 2020 | 25,328,000 | ||||
Beginning balance at Aug. 31, 2020 | 1,308,529 | $ 2,533 | 274,643 | (14,320) | 1,045,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 84,155 | 84,155 | |||
Other comprehensive income (loss), net of tax | $ 2,035 | 2,035 | |||
Exercise of stock options (in shares) | 850 | 1,000 | |||
Exercise of stock options | $ 70 | $ 0 | 70 | ||
Net issuance and settlement of restricted stock (in shares) | 20,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 2 | (2) | ||
Issuance of common stock related to stock purchase plan (in shares) | 12,000 | ||||
Issuance of common stock related to stock purchase plan | 1,710 | $ 1 | 1,709 | ||
Common stock repurchased and retired (in shares) | (967,000) | ||||
Common stock repurchased and retired | (192,800) | $ (97) | (5,870) | (186,833) | |
Share-based compensation | 6,739 | 6,739 | |||
Ending balance (in shares) at Nov. 30, 2020 | 24,394,000 | ||||
Ending balance at Nov. 30, 2020 | $ 1,210,438 | $ 2,439 | $ 277,289 | $ (12,285) | $ 942,995 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | |
Cash provided by operating activities: | ||
Net income | $ 231,774 | $ 155,488 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,995 | 24,876 |
Amortization of financing costs | 772 | 763 |
Non-cash operating lease expense | 4,910 | 1,371 |
Provision for doubtful receivables | 3,445 | 484 |
Non-cash share-based compensation | 20,654 | 18,743 |
Loss (gain) on the sale or disposal of property and equipment | 75 | (14) |
Deferred income taxes and tax credits | (4,132) | (511) |
Changes in operating capital: | ||
Receivables | (155,492) | (85,747) |
Inventories | (121,629) | (31,317) |
Prepaid expenses and other current assets | (2,915) | (1,269) |
Other assets and liabilities, net | (6,617) | 21,091 |
Accounts payable | 148,501 | (2,037) |
Accrued expenses and other current liabilities | 95,612 | 477 |
Accrued income taxes | 6,793 | (980) |
Net cash provided by operating activities | 249,746 | 101,418 |
Cash used in investing activities: | ||
Capital and intangible asset expenditures | (19,423) | (13,247) |
Proceeds from the sale of property and equipment | 0 | 3 |
Net cash used in investing activities | (19,423) | (13,244) |
Cash used in financing activities: | ||
Proceeds from line of credit | 917,400 | 406,600 |
Repayment of line of credit | (811,400) | (482,000) |
Repayment of long-term debt | (1,900) | (1,900) |
Payment of financing costs | (3,796) | 0 |
Proceeds from share issuances under share-based compensation plans | 4,528 | 7,025 |
Payments for repurchases of common stock | (202,961) | (10,133) |
Net cash used in financing activities | (98,129) | (80,408) |
Net increase in cash and cash equivalents | 132,194 | 7,766 |
Cash and cash equivalents, beginning balance | 24,467 | 11,871 |
Cash and cash equivalents, ending balance | 156,661 | $ 19,637 |
Supplemental non-cash items not included above resulting from the adoption of ASC 842 | ||
Initial recognition of lease liabilities | $ 44,049 |
Basis of Presentation and Relat
Basis of Presentation and Related Information | 9 Months Ended |
Nov. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Related Information | Note 1 - Basis of Presentation and Related Information The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of November 30, 2020 and February 29, 2020, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 29, 2020, and our other reports on file with the Securities and Exchange Commission (“SEC”). 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 United States (“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. We have three segments: Housewares, Health & Home, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home and on the go. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage, food containers and coolers. The Health & Home segment focuses on health care devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, and air purifiers. 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. 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. 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 an innovative, trend-setting prestige hair care and styling brand. 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 7 for additional information on the acquisition. During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our mass channel personal care business (“Personal Care”). 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. For additional information, see Note 5. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) to be a pandemic. COVID-19 continues to spread throughout the United States and the world, with the continued potential for catastrophic impact. The effects of the COVID-19 pandemic have had an unfavorable impact on certain parts of our business. The impact includes the effect of temporary closures of certain customer stores, or limited hours of operation, which has resulted in materially lower store traffic at some of our brick and mortar retailers. The economic impact of historic unemployment and consumer uncertainty has also resulted in reduced demand for some of our more discretionary product lines. COVID-19 has also disrupted certain parts of our supply chain, which in certain cases has limited our ability to fulfill demand. COVID-19 has favorably impacted the demand for our product lines that are more defensive, meet certain healthcare or healthy living needs, or meet the needs of consumers that are spending more time at home as a result of the pandemic. COVID-19 has also favorably impacted our online channel in a meaningful way, as brick and mortar shopping options have been limited or considered unsafe. Although the favorable impacts of COVID-19 outweighed the unfavorable impacts during the nine month period ended November 30, 2020, this situation continues to change rapidly, and additional impacts or more pronounced adverse impacts may arise that we are not currently aware of today. Accordingly, our liquidity and financial results could be impacted in ways that we are not able to predict today. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany accounts and transactions are eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. The severity, duration and the economic consequences of COVID-19 are uncertain, evolving and difficult to predict. Therefore, our estimates and assumptions may change materially in future periods in response to COVID-19. Actual results may differ materially from those estimates. We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Nov. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | Note 2 - New Accounting Pronouncements Except for the changes discussed below, there have been no changes in the information provided in our Form 10-K for the fiscal year ended February 29, 2020. Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which provides for certain updates to reduce complexity in 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, and will be effective for us in the first quarter of fiscal 2022. We are currently evaluating the impact this guidance may have on our consolidated financial statements. Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting and other transactions affected by reference rate reform to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This ASU was effective upon issuance, on March 12, 2020, and may be applied through December 31, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (with subsequent targeted amendments), which modifies the measurements of expected credit losses for certain financial instruments and financial assets, including trade receivables. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did 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. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did not have a material impact 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. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Nov. 30, 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. These products are promised goods that are distinct performance obligations. Revenue is recognized when control of, and title to, the product sold transfers to the customer in accordance with applicable shipping terms, which can occur on the date of shipment or the date of receipt by the customer, depending on the customer and the agreed upon shipping terms. Payment terms from the sale of our products are typically due to us in thirty to ninety days after the date of sale. 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. |
Leases
Leases | 9 Months Ended |
Nov. 30, 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. We primarily have 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 1 to 12 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. Operating lease expense recognized in the condensed consolidated statements of income during the three and nine month periods ended November 30, 2020, was $1.8 million and $5.0 million, respectively, compared t o $1.5 million and $4.8 million, respectively, for the same periods last year. Short-term lease expense is excluded from this amount and is not material. For the three and nine month periods ended November 30, 2020, rent expense related to all our operating leases was $2.4 million and $6.6 million, respectively, compared to $2.1 million and $5.8 million for the same periods last year. The non-cash component of lease expense is included as an adjustment to reconcile net income to net cash provided by operating activities in the condensed consolidated statements of cash flows. A summary of supplemental lease information is as follows: November 30, 2020 Weighted average remaining lease term ( years ) 10.0 Weighted average discount rate 6.10% Year-to-date cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (in thousands) $ 4,998 A summary of our estimated lease payments, imputed interest and liabilities as of November 30, 2020 are as follows: (in thousands) Fiscal 2021 (balance for remainder of fiscal year) $ 1,826 Fiscal 2022 7,128 Fiscal 2023 6,123 Fiscal 2024 5,332 Fiscal 2025 5,762 Thereafter 34,370 Total future lease payments 60,541 Less: imputed interest (16,492) Present value of lease liability $ 44,049 November 30, 2020 Lease liabilities, current (1) $ 4,770 Lease liabilities, non-current 39,279 Total lease liability $ 44,049 |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Assets Held for Sale | Note 5 - Assets Held for Sale During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within Personal Care. 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 and have classified the identified assets of the disposal group as held for sale. The business is currently being marketed and the process is ongoing. The carrying amounts of the major classes of assets for Personal Care that were classified as held for sale are as follows: (in thousands) November 30, 2020 February 29, 2020 Assets: Inventory $ 11,650 $ 17,150 Property and equipment, net of accumulated depreciation of $403 83 83 Goodwill, net of cumulative impairments of $71,993 9,849 9,849 Other intangible assets, net of accumulated amortization of $4,474 17,724 17,724 Total assets held for sale $ 39,306 $ 44,806 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Nov. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Note 6 - Supplemental Balance Sheet Information PROPERTY AND EQUIPMENT (in thousands) Estimated November 30, 2020 February 29, 2020 Land - $ 12,644 $ 12,644 Building and improvements 3 - 40 117,061 115,592 Computer, software, furniture and other equipment 3 - 15 98,382 89,257 Tools, molds and other production equipment 3 - 7 43,001 37,652 Construction in progress - 9,169 9,302 Property and equipment, gross 280,257 264,447 Less accumulated depreciation (144,462) (132,340) Property and equipment, net $ 135,795 $ 132,107 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (in thousands) November 30, 2020 February 29, 2020 Accrued compensation, benefits and payroll taxes $ 54,667 $ 49,624 Accrued sales discounts and allowances 55,832 34,176 Accrued sales returns 31,919 22,972 Accrued advertising 60,549 31,351 Other 86,601 45,034 Total accrued expenses and other current liabilities $ 289,568 $ 183,157 |
Acquisitions
Acquisitions | 9 Months Ended |
Nov. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 7 - Acquisitions 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 an 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 the acquisition of Drybar Products on 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 of trade names and customer relationship 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 8 - Goodwill and Intangible Assets We perform annual impairment tests each fiscal year during the fourth quarter and interim impairment tests, if and when necessary. For the three and nine month periods ended November 30, 2020 and 2019, we did not record any impairment charges. The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented: November 30, 2020 February 29, 2020 (in thousands) Gross Cumulative Accumulated Net Book Gross Cumulative Accumulated Net Book Housewares: Goodwill $ 282,056 $ — $ — $ 282,056 $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — 134,200 134,200 — — 134,200 Other intangibles - finite 43,063 — (23,011) 20,052 42,095 — (21,469) 20,626 Subtotal 459,319 — (23,011) 436,308 458,351 — (21,469) 436,882 Health & Home: Goodwill 284,913 — — 284,913 284,913 — — 284,913 Trademarks - indefinite 54,000 — — 54,000 54,000 — — 54,000 Licenses - finite 17,050 — (16,015) 1,035 17,050 — (15,752) 1,298 Licenses - indefinite 7,400 — — 7,400 7,400 — — 7,400 Other intangibles - finite 118,446 — (105,293) 13,153 118,223 — (98,142) 20,081 Subtotal 481,809 — (121,308) 360,501 481,586 — (113,894) 367,692 Beauty: Goodwill 172,932 — — 172,932 244,925 (71,993) — 172,932 Trademarks - finite 30,151 — (1,827) 28,324 33,392 — (3,564) 29,828 Licenses - finite 13,697 — (13,037) 660 13,697 — (12,800) 897 Other intangibles - finite 33,035 — (3,242) 29,793 79,171 — (46,549) 32,622 Subtotal 249,815 — (18,106) 231,709 371,185 (71,993) (62,913) 236,279 Total $ 1,190,943 $ — $ (162,425) $ 1,028,518 $ 1,311,122 $ (71,993) $ (198,276) $ 1,040,853 (1) The cumulative goodwill impairment of approximately $72.0 million in the Beauty segment is related to goodwill associated with the Personal Care business, which was reclassified to assets held for sale. (2) Includes the retirement and reclassification of accumulated amortization of $49.4 million related to assets associated with the Personal Care business, which were reclassified to assets held for sale. The following tables summarize the aggregate amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2021 through 2026: (in thousands) Three Months Ended Nine Months Ended November 30, 2020 $ 4,501 $ 13,527 November 30, 2019 4,790 13,129 Estimated Amortization Expense (in thousands) Fiscal 2021 $ 16,751 Fiscal 2022 10,361 Fiscal 2023 10,287 Fiscal 2024 9,902 Fiscal 2025 9,281 Fiscal 2026 7,252 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 9 Months Ended |
Nov. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Note 9 - Share-Based Compensation Plans We have equity awards outstanding under several share-based compensation plans. During the three and nine month periods ended November 30, 2020, we had the following share-based compensation activity: • We issued 770 and 2,842 shares to non-employee members of the Board of Directors with a total grant date fair value of $0.1 million and $0.5 million, respectively, and average share prices of $207.98 and $184.56, respectively. • We granted time-vested restricted stock units (“RSUs”) that may be settled for 39 and 2,747 shares of common stock, respectively. The RSUs have a weighted average grant price of $200.00 and $170.69 per share, respectively, for a total award fair value at date of grant of an insignificant amount and $0.5 million, respectively. • We granted time-vested restricted stock awards (“RSAs”) that may vest for 4,171 and 42,143 shares of common stock, respectively. The RSAs have a weighted average grant price of $199.39 and $174.03 per share, respectively, for a total award fair value at date of grant of $0.8 million and $7.3 million, respectively. • There were no grants of performance-based stock units (“PSUs”) during the three months ended November 30, 2020. During the nine months ended November 30, 2020, we granted PSUs that may be settled for 4,970 shares of common stock at target. The PSUs have a weighted average grant price of $170.27 per share, for a total award fair value at date of grant of $0.8 million. • There were no grants of performance-based restricted stock awards (“PSAs”) during the three months ended November 30, 2020. During the nine months ended November 30, 2020, we granted PSAs that may vest for 86,004 shares of common stock at target. The PSAs have a weighted average grant price of $170.27 per share, for a total award fair value at date of grant of $14.6 million. • RSUs for 18,196 and 64,948 shares vested, respectively, with a total fair value at settlement of $3.6 million and $11.3 million, respectively, and average share prices of $195.29 and $173.33, respectively. • RSAs for 605 and 7,929 shares vested, respectively, with a total fair value at settlement of $0.1 million and $1.4 million, respectively, and average share prices of $201.29 and $174.75, respectively. • There were no PSUs that vested and settled during the three months ended November 30, 2020. During the nine months ended November 30, 2020, PSUs for 112,720 shares vested and settled, with a total settlement date fair value of $18.6 million, and an average share price of $164.58. • Employees exercised stock options to purchase 850 shares and 13,540 shares of common stock, respectively. • There were 12,264 and 26,830 purchases of common stock, respectively, under the employee stock purchase plan at an average price of $139.88 and $134.78 per share, respectively. We recorded the following share-based compensation expense in SG&A for the periods shown below: Three Months Ended November 30, Nine Months Ended November 30, (in thousands, except per share data) 2020 2019 2020 2019 Stock options $ 3 $ 21 $ 18 $ 172 Directors stock compensation 161 140 525 421 Performance based and other stock awards 6,084 4,138 19,134 17,366 Employee stock purchase plan 491 459 977 784 Share-based compensation expense 6,739 4,758 20,654 18,743 Less income tax benefits (403) (343) (1,406) (1,434) Share-based compensation expense, net of income tax benefits $ 6,336 $ 4,415 $ 19,248 $ 17,309 Impact of share-based compensation on EPS: Basic $ 0.25 $ 0.18 $ 0.76 $ 0.69 Diluted $ 0.25 $ 0.17 $ 0.76 $ 0.68 |
Repurchases of Helen of Troy Co
Repurchases of Helen of Troy Common Stock | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Repurchase of Helen of Troy Common Stock | Note 10 - Repurchase of Helen of Troy Common Stock In May 2019, we announced that our Board of Directors authorized the repurchase of up to $400 million of our outstanding common stock. The authorization was effective May 8, 2019 for a period of three years and replaced our 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 November 30, 2020, our repurchase authorization allowed for the purchase of $190.0 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: Three Months Ended November 30, Nine Months Ended November 30, (in thousands, except share and per share data) 2020 2019 2020 2019 Common stock repurchased on the open market: Number of shares 960,829 — 960,829 — Aggregate value of shares $ 191,606 $ — $ 191,606 $ — Average price per share $ 199.42 $ — $ 199.42 $ — Common stock received in connection with share-based compensation: Number of shares 6,115 6,509 67,740 77,067 Aggregate value of shares $ 1,194 $ 1,002 $ 11,355 $ 10,133 Average price per share $ 195.26 $ 153.88 $ 167.63 $ 131.48 |
Restructuring Plan
Restructuring Plan | 9 Months Ended |
Nov. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Note 11 - Restructuring Plan In October 2017, we announced that we had approved a restructuring plan (referred to as “Project Refuel”) intended to improve the performance primarily in the Beauty and former Nutritional Supplements segments. Project Refuel includes a reduction-in-force and the elimination of certain contracts. 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 will be completed during the first quarter of fiscal 2022, and expect to incur total restructuring charges of approximately $9.5 million over the duration of the plan. Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically. An insignificant change in the estimate of pre-tax restructuring costs was recorded during the three month period ended November 30, 2020. For the nine month period ended November 30, 2020 , we incurred pre-tax restructuring charges of $0.4 million. Since implementing Project Refuel, we have incurred $9.1 million of pre-tax restructuring costs as of November 30, 2020. During the three and nine month periods ended November 30, 2020, we made total cash restructuring payments of $0.2 million and $0.9 million, respectively, compared to $0.3 million and $1.8 million, respectively, for the same periods last year. Since implementing Project Refuel, we have made total cash restructuring payments of $8.9 million. We had a remaining liability of $0.2 million as of November 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 - Commitments and Contingencies Legal Matters We are involved in various 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. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 13 - Long-Term Debt Credit Agreement 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. 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% for base rate and LIBOR borrowings, respectively. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. We are able to repay amounts borrowed at any time without penalty. As of November 30, 2020, the outstanding revolving loan principal balance was $426.0 million (excluding prepaid financing fees) and the balance of outstanding letters of credit was $19.2 million. For the three and nine month periods ended November 30, 2020, borrowings under the Credit Agreement incurred interest expense at rates ranging from 1.14% to 3.25% and 1.14% to 4.75%, respectively. As of November 30, 2020, the amount available for borrowings under the Credit Agreement was $804.8 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can inc ur. As of November 30, 2020, these covenants did not limit our ability to incur $804.8 million of additional debt under the Credit Agreement. Other Debt Agreements As of November 30, 2020, we have an aggregate principal balanc e of $18.6 million (excluding prepaid financing fees) under a loan agreement (the “MBFC Loan”) with the Mississippi Business Finance Corporation (the “MBFC”), which was entered into in connection with the issuance by MBFC of taxable industrial development revenue bonds (the “Bonds”). The borrowings were used to fund construction of our Olive Branch, Mississippi distribution facility. Since March 2018, the MBFC Loan can be called by the holder at any time. The remaining loan balance is payable as follows: $1.9 million annually on March 1, 2021 and 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. On May 14, 2020, Helen of Troy Limited and certain of its subsidiaries entered into the Sixth Amendment to Guaranty Agreement (the “Amended Guaranty”) in favor of Bank of America, N.A. The Amended Guaranty amends the Guaranty Agreement (as amended, the “Guaranty Agreement”), dated March 1, 2013, made by the Company and certain of its subsidiaries in favor of Bank of America, N.A. and other lenders. Certain of the representations and warranties, and covenants in the Guaranty Agreement were amended by the Amended Guaranty to include or modify certain baskets, exceptions and other customary provisions. The Bonds were issued under a Trust Indenture, dated as of March 1, 2013 (as supplemented, the “Indenture”), by and between MBFC and U.S. Bank National Association, as trustee (the “Trustee”). On May 14, 2020, MBFC and U.S. Bank National Association, as Trustee, entered into the Fifth Supplemental Trust Indenture, effective May 14, 2020 (the “Fifth Supplemental Indenture”), with the consent of Kaz USA, Inc. (“Kaz USA”) and Bank of America, N.A., the purchaser of the Bonds. The Base Rate (as defined in the Indenture) and Eurodollar Rate (as defined in the Indenture) were each amended. As amended by the Fifth Supplemental Indenture, the Bonds and the related loans to Kaz USA will bear interest at a Base Rate or Eurodollar Rate plus a margin based on the Net Leverage Ratio (as defined in the Fifth Supplemental Indenture). The Fifth Supplemental Indenture amended the pricing grid for the Eurodollar and Base Rate margins. 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 key financial covenants defined in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources - Credit and Other Debt Agreements . Our debt agreements also contain other customary covenants, including, among other things, covenants restricting or limiting us, except under certain conditions set forth therein, from (1) incurring debt, (2) incurring liens on our properties, (3) making certain types of investments, (4) selling certain assets or making other fundamental changes relating to mergers and consolidations, and (5) repurchasing shares of our common stock and paying dividends. Our debt agreements also contain customary events of default, including failure to pay principal or interest when due, among others. Our debt agreements are cross-defaulted to each other. Upon an event of default under our debt agreements, the holders or lenders may, among other things, accelerate the maturity of any amounts outstanding under our debt agreements. The commitments of the lenders to make loans to us under the Credit Agreement are several and not joint. Accordingly, if any lender fails to make loans to us, our available liquidity could be reduced by an amount up to the aggregate amount of such lender’s commitments under the Credit Agreement. As of November 30, 2020, we were in compliance with all covenants as defined under the terms of the Credit Agreement and our other debt agreements. A summary of our long-term debt including prepaid financing fees follows: (in thousands) November 30, 2020 February 29, 2020 MBFC Loan (1) $ 18,548 $ 20,451 Credit Agreement (2) 421,833 318,854 Total long-term debt 440,381 339,305 Less current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 438,497 $ 337,421 (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 Net Leverage Ratio defined in the Indenture. Since March 2018, the loan may be called by the holder at any time. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2021 and 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 14, 15 and 16 for additional information regarding the interest rate swaps). At November 30, 2020 and February 29, 2020, our long-term debt has floating interest rates, and its book value approximates its fair value. |
Fair Value
Fair Value | 9 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 14 - 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 end of the periods shown: Fair Values (1) (in thousands) November 30, 2020 February 29, 2020 Assets: Money market accounts $ 118,559 $ 2,648 Interest rate swaps — — Foreign currency contracts 7 2,083 Total assets $ 118,566 $ 4,731 Liabilities: Floating rate debt $ 440,381 $ 339,305 Interest rate swaps 11,627 10,717 Foreign currency contracts 5,328 159 Total liabilities $ 457,336 $ 350,181 (1) Our financial assets and liabilities are classified as Level 2 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 and cross-currency debt swaps. See Notes 13, 15 and 16 to these condensed consolidated financial statements 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 requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms. Such comparable rates are considered significant other observable market inputs. The book value of the floating rate debt approximates its fair value as of the reporting date. Our other non-financial assets include goodwill, other intangible assets and assets held for sale, 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 8 to these condensed consolidated financial statements contains additional information related to goodwill and intangible assets, and our impairment testing. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Nov. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments and Risk Management | Note 15 - 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. During the three and nine month periods ended November 30, 2020, approximately 11% and 12%, respectively, of our net sales revenue was in foreign currencies, compared to 17% and 14%, respectively, for the same periods last year. These sales were primarily denominated in Euros, British Pounds, Canadian Dollars, and Mexican Pesos. We make most of our inventory purchases from the Far East and primarily use the U.S. Dollar for such purchases. In our condensed 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. During the three and nine month periods ended November 30, 2020, we recorded net exchange gains from foreign currency fluctuations, including the impact of currency hedges and the cross-currency debt swaps, of $0.4 million and $0.5 million, respectively, in SG&A compared to net foreign exchange gains of $0.6 million and $2.2 million, respectively, for the same periods last year. 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 Accumulated Other Comprehensive Income (Loss) (“AOCI”) 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 November 30, 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 $426.0 million (excluding prepaid finance fees) as of November 30, 2020. The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: (in thousands) November 30, 2020 Hedge Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost collar - Euro Cash flow 02/2021 € 2,000 $ — $ — $ 15 $ — Foreign currency contracts - sell Euro Cash flow 02/2022 € 46,000 — — 1,758 433 Foreign currency contracts - sell Canadian Dollar Cash flow 02/2022 $ 26,000 — — 763 93 Zero-cost collar - Pound Cash flow 02/2021 £ 2,000 — — 122 — Foreign currency contracts - sell Pound Cash flow 02/2022 £ 23,790 — — 662 266 Foreign currency contracts - sell Mexican Peso Cash flow 02/2021 $ 30,000 7 — — — Interest rate swaps Cash flow 01/2024 $ 225,000 — — 4,986 6,641 Subtotal 7 — 8,306 7,433 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2022 € 6,000 — — — 732 Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2022 £ 4,500 — — — 484 Subtotal — — — 1,216 Total fair value $ 7 $ — $ 8,306 $ 8,649 (in thousands) February 29, 2020 Hedge Type Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost collar - Euro Cash flow 02/2021 € 8,000 $ 74 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 05/2021 € 25,875 837 — — 15 Foreign currency contracts - sell Canadian Dollar Cash flow 02/2021 $ 14,000 202 — — — Zero-cost collar - Pound Cash flow 02/2021 £ 6,500 — — 144 — Foreign currency contracts - sell Pound Cash flow 05/2021 £ 13,000 435 23 — — Foreign currency contracts - sell Mexican Peso Cash flow 05/2020 $ 10,000 12 — — — Interest rate swaps Cash flow 01/2024 $ 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 € 4,400 473 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 5,000 27 — — — Subtotal 500 — — — Total fair value $ 2,060 $ 23 $ 3,633 $ 7,243 (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 following table summarizes the pre-tax effect of derivative instruments for the periods shown: Three Months Ended November 30, Gain (Loss) Gain (Loss) Reclassified from Gain (Loss) Recognized (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ 1,550 $ (2,739) SG&A $ 549 $ (630) $ — $ — Interest rate swaps - cash flow hedges 1,539 2,084 Interest expense — — Interest expense (1,289) (162) Cross-currency debt swaps - principal — — — — SG&A 23 (389) Cross-currency debt swaps - interest — — — — Interest Expense (2) 73 Total $ 3,089 $ (655) $ 549 $ (630) $ (1,268) $ (478) Nine Months Ended November 30, Gain (Loss) Gain (Loss) Reclassified from Gain (Loss) Recognized (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ (5,653) $ (3,407) SG&A $ (124) $ (2,840) $ — $ — Interest rate swaps - cash flow hedges (910) (7,242) Interest expense — — Interest expense (3,222) 69 Cross-currency debt swaps - principal — — — — SG&A (1,075) 419 Cross-currency debt swaps - interest — — — — Interest expense 72 147 Total $ (6,563) $ (10,649) $ (124) $ (2,840) $ (4,225) $ 635 We expect pre-tax losses of $8.3 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 vary and the underlying contracts settle. Counterparty Credit Risk Financial instruments, including foreign currency contracts and cross-currency debt swaps, expose us to counterparty credit risk for non-performance. We manage our exposure to counterparty credit risk by only 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 losses is remote. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Nov. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 16 - Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in AOCI by component and related tax effects for the periods shown: (in thousands) Interest Foreign Total Balance at February 29, 2020 $ (8,199) $ 1,194 $ (7,005) Other comprehensive loss before reclassification (910) (5,653) (6,563) Amounts reclassified out of AOCI — 124 124 Tax effects 214 945 1,159 Other comprehensive loss (696) (4,584) (5,280) Balance at November 30, 2020 $ (8,895) $ (3,390) $ (12,285) Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive loss before reclassification (7,242) (3,407) (10,649) Amounts reclassified out of AOCI — 2,840 2,840 Tax effects 1,680 53 1,733 Other comprehensive loss (5,562) (514) (6,076) Balance at November 30, 2019 $ (5,430) $ 545 $ (4,885) |
Segment Information
Segment Information | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17 - Segment Information The following tables present segment information for the periods shown: Three Months Ended November 30, 2020 (in thousands) Housewares Health & Home Beauty (1) Total Sales revenue, net $ 222,400 $ 250,158 $ 165,179 $ 637,737 Restructuring charges (12) — — (12) Operating income 37,658 30,478 32,573 100,709 Capital and intangible asset expenditures 1,375 2,441 370 4,186 Depreciation and amortization 2,371 4,106 3,042 9,519 Three Months Ended November 30, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 183,211 $ 185,810 $ 105,716 $ 474,737 Restructuring charges — — 12 12 Operating income 42,272 24,372 12,625 79,269 Capital and intangible asset expenditures 2,272 1,917 197 4,386 Depreciation and amortization 2,263 3,740 2,757 8,760 Nine Months Ended November 30, 2020 (in thousands) Housewares Health & Home Beauty (1) Total Sales revenue, net $ 564,891 $ 661,568 $ 362,965 $ 1,589,424 Restructuring charges 251 — 104 355 Operating income 106,294 95,782 54,887 256,963 Capital and intangible asset expenditures 6,912 10,346 2,165 19,423 Depreciation and amortization 6,743 12,331 8,921 27,995 Nine Months Ended November 30, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 496,017 $ 499,543 $ 269,507 $ 1,265,067 Restructuring charges 90 — 971 1,061 Operating income 109,170 51,836 19,990 180,996 Capital and intangible asset expenditures 8,354 4,115 778 13,247 Depreciation and amortization 5,292 12,322 7,262 24,876 (1) The three and nine month periods ended November 30, 2020 include three and nine months of operating results for Drybar Products, respectively, which was acquired on January 23, 2020, with no comparable results in the same periods last year. For additional information regarding the Drybar Products acquisition, see Note 7 to the accompanying condensed consolidated financial statements. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, restructuring charges, 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 do not allocate non-operating income and expense, including interest or income taxes, to operating segments. |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 18 - Income Taxes The period-over-period comparison of our effective tax rate is often impacted by the mix of taxable income in our various tax jurisdictions. Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our 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, transfer pricing and tax regulations in the related jurisdictions. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. For the three months ended November 30, 2020, income tax expense as a percentage of income before income tax was 14.0% compared to 10.3% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to an increase in liabilities related to uncertain tax positions. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. The CARES Act is an emergency economic stimulus package in response to the COVID-19 outbreak that contains numerous tax provisions. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act (the “Tax Act”) related to net operating loss carrybacks. Upon the enactment of the Tax Act in fiscal 2018, there was a net operating loss on our balance sheet, which was measured using the U.S. statutory tax rate in effect prior to enactment. As a result of the Tax Act, we were required to record a one-time charge of $17.9 million in fiscal 2018, which included a charge of $9.4 million to remeasure the net operating loss at the reduced rate at which it was expected to reverse in the future. The CARES Act effectively reversed the impact of the Tax Act on our net operating loss, resulting in a corresponding tax benefit of $9.4 million recorded in the first quarter of fiscal 2021. For the nine months ended November 30, 2020, income tax expense as a percentage of income before income tax was 6.5% compared to income tax expense of 9.6% for the same period last year, primarily due to this benefit. Income tax expense for the nine months ended November 30, 2020 also includes other discrete benefits to include reductions of U.S. BEAT tax (Base Erosion and Anti-Abuse) and GILTI tax (Global Intangible Low-Tax Income), the recognition of excess tax benefits from share-based compensation settlements, and one-time benefits related to the transition of our Macau entity from offshore to onshore status, partially offset by increases in liabilities related to uncertain tax positions. 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. During the time the dispute was ongoing, we believe we accurately reported our taxable income and vigorously protested the assessment through administrative processes with the state. During the quarter, we reached an agreement in principle to settle the $6.0 million assessment in dispute for $0.5 million. The agreement was signed on December 4, 2020. 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, our Macau subsidiary will transition to onshore status and become subject to a statutory corporate income tax of approximately 12%. We expect the impact of this change to increase our overall effective tax rate by 1.5 to 2.0 percentage points on an annual basis, beginning with our fiscal 2022. 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 19 - 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. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. See Note 9 to these condensed consolidated financial statements for more information regarding stock-based awards. The following table presents our weighted average basic and diluted shares for the periods shown: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Weighted average shares outstanding, basic 24,965 25,161 25,182 25,099 Incremental shares from share-based compensation arrangements 227 235 168 196 Weighted average shares outstanding, diluted 25,192 25,396 25,350 25,295 Anti-dilutive securities 4 134 149 217 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Nov. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20 - Subsequent Events On December 22, 2020, we entered into an amended and extended Trademark License Agreement with Revlon to license Revlon’s trademark for hair care appliances and tools (the “Revlon License”). The Revlon License grants us an exclusive, global, fully paid-up license to use the licensed trademark to manufacture, sell and distribute licensed merchandise in accordance with the terms of the agreement. The Revlon License has an initial term of 40 years, which will automatically renew at the end of the initial term for three consecutive additional 20-year periods unless we give notice of non-renewal. The Revlon License amends and restates the existing Revlon trademark licensing agreements entirely, and eliminates ongoing royalties we have historically paid and recognized as expense within SG&A in accordance with such agreements. In exchange for this exclusive global license, we paid a one-time, up-front license fee of $72.5 million, which will be recorded as an intangible asset at cost and amortized on a straight-line basis over a useful life of 40 years, representing the initial term. As a result of the Revlon License, we are no longer obligated to pay royalties to Revlon, and thus will not recognize royalty expense after December 22, 2020, the effective date of the Revlon License. |
Basis of Presentation and Rel_2
Basis of Presentation and Related Information (Policies) | 9 Months Ended |
Nov. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation of financial statements | Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany accounts and transactions are eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. The severity, duration and the economic consequences of COVID-19 are uncertain, evolving and difficult to predict. Therefore, our estimates and assumptions may change materially in future periods in response to COVID-19. Actual results may differ materially from those estimates. |
Reclassification | We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation. |
New accounting pronouncements | Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which provides for certain updates to reduce complexity in 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, and will be effective for us in the first quarter of fiscal 2022. We are currently evaluating the impact this guidance may have on our consolidated financial statements. Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting and other transactions affected by reference rate reform to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This ASU was effective upon issuance, on March 12, 2020, and may be applied through December 31, 2022. The adoption of this ASU did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (with subsequent targeted amendments), which modifies the measurements of expected credit losses for certain financial instruments and financial assets, including trade receivables. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did 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. Certain disclosures in ASU 2018-13 would need to be applied on a retrospective basis and others on a prospective basis. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did not have a material impact 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. This ASU was effective for us in the first quarter of fiscal 2021, and the adoption of this ASU did not have a material impact on our consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Summary of supplemental lease information | A summary of supplemental lease information is as follows: November 30, 2020 Weighted average remaining lease term ( years ) 10.0 Weighted average discount rate 6.10% Year-to-date cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (in thousands) $ 4,998 |
Schedule of estimated lease payments, imputed interest and liabilities | A summary of our estimated lease payments, imputed interest and liabilities as of November 30, 2020 are as follows: (in thousands) Fiscal 2021 (balance for remainder of fiscal year) $ 1,826 Fiscal 2022 7,128 Fiscal 2023 6,123 Fiscal 2024 5,332 Fiscal 2025 5,762 Thereafter 34,370 Total future lease payments 60,541 Less: imputed interest (16,492) Present value of lease liability $ 44,049 |
Schedule of lease liabilities | November 30, 2020 Lease liabilities, current (1) $ 4,770 Lease liabilities, non-current 39,279 Total lease liability $ 44,049 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Carrying amounts of major asset classes for Personal Care classified as held-for-sale | The carrying amounts of the major classes of assets for Personal Care that were classified as held for sale are as follows: (in thousands) November 30, 2020 February 29, 2020 Assets: Inventory $ 11,650 $ 17,150 Property and equipment, net of accumulated depreciation of $403 83 83 Goodwill, net of cumulative impairments of $71,993 9,849 9,849 Other intangible assets, net of accumulated amortization of $4,474 17,724 17,724 Total assets held for sale $ 39,306 $ 44,806 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of property and equipment | PROPERTY AND EQUIPMENT (in thousands) Estimated November 30, 2020 February 29, 2020 Land - $ 12,644 $ 12,644 Building and improvements 3 - 40 117,061 115,592 Computer, software, furniture and other equipment 3 - 15 98,382 89,257 Tools, molds and other production equipment 3 - 7 43,001 37,652 Construction in progress - 9,169 9,302 Property and equipment, gross 280,257 264,447 Less accumulated depreciation (144,462) (132,340) Property and equipment, net $ 135,795 $ 132,107 |
Schedule of accrued expenses and other current liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (in thousands) November 30, 2020 February 29, 2020 Accrued compensation, benefits and payroll taxes $ 54,667 $ 49,624 Accrued sales discounts and allowances 55,832 34,176 Accrued sales returns 31,919 22,972 Accrued advertising 60,549 31,351 Other 86,601 45,034 Total accrued expenses and other current liabilities $ 289,568 $ 183,157 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of net assets recorded upon the acquisition of business | The following schedule presents the net assets recorded upon the acquisition of Drybar Products on 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment | The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented: November 30, 2020 February 29, 2020 (in thousands) Gross Cumulative Accumulated Net Book Gross Cumulative Accumulated Net Book Housewares: Goodwill $ 282,056 $ — $ — $ 282,056 $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — 134,200 134,200 — — 134,200 Other intangibles - finite 43,063 — (23,011) 20,052 42,095 — (21,469) 20,626 Subtotal 459,319 — (23,011) 436,308 458,351 — (21,469) 436,882 Health & Home: Goodwill 284,913 — — 284,913 284,913 — — 284,913 Trademarks - indefinite 54,000 — — 54,000 54,000 — — 54,000 Licenses - finite 17,050 — (16,015) 1,035 17,050 — (15,752) 1,298 Licenses - indefinite 7,400 — — 7,400 7,400 — — 7,400 Other intangibles - finite 118,446 — (105,293) 13,153 118,223 — (98,142) 20,081 Subtotal 481,809 — (121,308) 360,501 481,586 — (113,894) 367,692 Beauty: Goodwill 172,932 — — 172,932 244,925 (71,993) — 172,932 Trademarks - finite 30,151 — (1,827) 28,324 33,392 — (3,564) 29,828 Licenses - finite 13,697 — (13,037) 660 13,697 — (12,800) 897 Other intangibles - finite 33,035 — (3,242) 29,793 79,171 — (46,549) 32,622 Subtotal 249,815 — (18,106) 231,709 371,185 (71,993) (62,913) 236,279 Total $ 1,190,943 $ — $ (162,425) $ 1,028,518 $ 1,311,122 $ (71,993) $ (198,276) $ 1,040,853 (1) The cumulative goodwill impairment of approximately $72.0 million in the Beauty segment is related to goodwill associated with the Personal Care business, which was reclassified to assets held for sale. (2) Includes the retirement and reclassification of accumulated amortization of $49.4 million related to assets associated with the Personal Care business, which were reclassified to assets held for sale. |
Summary of amortization expense attributable to intangible assets | The following tables summarize the aggregate amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2021 through 2026: (in thousands) Three Months Ended Nine Months Ended November 30, 2020 $ 4,501 $ 13,527 November 30, 2019 4,790 13,129 |
Schedule of estimated amortization expense of intangible assets | Estimated Amortization Expense (in thousands) Fiscal 2021 $ 16,751 Fiscal 2022 10,361 Fiscal 2023 10,287 Fiscal 2024 9,902 Fiscal 2025 9,281 Fiscal 2026 7,252 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation expense in SG&A | We recorded the following share-based compensation expense in SG&A for the periods shown below: Three Months Ended November 30, Nine Months Ended November 30, (in thousands, except per share data) 2020 2019 2020 2019 Stock options $ 3 $ 21 $ 18 $ 172 Directors stock compensation 161 140 525 421 Performance based and other stock awards 6,084 4,138 19,134 17,366 Employee stock purchase plan 491 459 977 784 Share-based compensation expense 6,739 4,758 20,654 18,743 Less income tax benefits (403) (343) (1,406) (1,434) Share-based compensation expense, net of income tax benefits $ 6,336 $ 4,415 $ 19,248 $ 17,309 Impact of share-based compensation on EPS: Basic $ 0.25 $ 0.18 $ 0.76 $ 0.69 Diluted $ 0.25 $ 0.17 $ 0.76 $ 0.68 |
Repurchase of Helen of Troy Com
Repurchase of Helen of Troy Common Stock (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Summary of share repurchase activity | The following table summarizes our share repurchase activity for the periods shown: Three Months Ended November 30, Nine Months Ended November 30, (in thousands, except share and per share data) 2020 2019 2020 2019 Common stock repurchased on the open market: Number of shares 960,829 — 960,829 — Aggregate value of shares $ 191,606 $ — $ 191,606 $ — Average price per share $ 199.42 $ — $ 199.42 $ — Common stock received in connection with share-based compensation: Number of shares 6,115 6,509 67,740 77,067 Aggregate value of shares $ 1,194 $ 1,002 $ 11,355 $ 10,133 Average price per share $ 195.26 $ 153.88 $ 167.63 $ 131.48 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | A summary of our long-term debt including prepaid financing fees follows: (in thousands) November 30, 2020 February 29, 2020 MBFC Loan (1) $ 18,548 $ 20,451 Credit Agreement (2) 421,833 318,854 Total long-term debt 440,381 339,305 Less current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 438,497 $ 337,421 (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 Net Leverage Ratio defined in the Indenture. Since March 2018, the loan may be called by the holder at any time. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2021 and 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 14, 15 and 16 for additional information regarding the interest rate swaps). |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Nov. 30, 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 end of the periods shown: Fair Values (1) (in thousands) November 30, 2020 February 29, 2020 Assets: Money market accounts $ 118,559 $ 2,648 Interest rate swaps — — Foreign currency contracts 7 2,083 Total assets $ 118,566 $ 4,731 Liabilities: Floating rate debt $ 440,381 $ 339,305 Interest rate swaps 11,627 10,717 Foreign currency contracts 5,328 159 Total liabilities $ 457,336 $ 350,181 (1) Our financial assets and liabilities are classified as Level 2 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. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of fair values of derivative instruments | The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: (in thousands) November 30, 2020 Hedge Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost collar - Euro Cash flow 02/2021 € 2,000 $ — $ — $ 15 $ — Foreign currency contracts - sell Euro Cash flow 02/2022 € 46,000 — — 1,758 433 Foreign currency contracts - sell Canadian Dollar Cash flow 02/2022 $ 26,000 — — 763 93 Zero-cost collar - Pound Cash flow 02/2021 £ 2,000 — — 122 — Foreign currency contracts - sell Pound Cash flow 02/2022 £ 23,790 — — 662 266 Foreign currency contracts - sell Mexican Peso Cash flow 02/2021 $ 30,000 7 — — — Interest rate swaps Cash flow 01/2024 $ 225,000 — — 4,986 6,641 Subtotal 7 — 8,306 7,433 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2022 € 6,000 — — — 732 Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2022 £ 4,500 — — — 484 Subtotal — — — 1,216 Total fair value $ 7 $ — $ 8,306 $ 8,649 (in thousands) February 29, 2020 Hedge Type Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost collar - Euro Cash flow 02/2021 € 8,000 $ 74 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 05/2021 € 25,875 837 — — 15 Foreign currency contracts - sell Canadian Dollar Cash flow 02/2021 $ 14,000 202 — — — Zero-cost collar - Pound Cash flow 02/2021 £ 6,500 — — 144 — Foreign currency contracts - sell Pound Cash flow 05/2021 £ 13,000 435 23 — — Foreign currency contracts - sell Mexican Peso Cash flow 05/2020 $ 10,000 12 — — — Interest rate swaps Cash flow 01/2024 $ 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 € 4,400 473 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 5,000 27 — — — Subtotal 500 — — — Total fair value $ 2,060 $ 23 $ 3,633 $ 7,243 (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 following table summarizes the pre-tax effect of derivative instruments for the periods shown: Three Months Ended November 30, Gain (Loss) Gain (Loss) Reclassified from Gain (Loss) Recognized (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ 1,550 $ (2,739) SG&A $ 549 $ (630) $ — $ — Interest rate swaps - cash flow hedges 1,539 2,084 Interest expense — — Interest expense (1,289) (162) Cross-currency debt swaps - principal — — — — SG&A 23 (389) Cross-currency debt swaps - interest — — — — Interest Expense (2) 73 Total $ 3,089 $ (655) $ 549 $ (630) $ (1,268) $ (478) Nine Months Ended November 30, Gain (Loss) Gain (Loss) Reclassified from Gain (Loss) Recognized (in thousands) 2020 2019 Location 2020 2019 Location 2020 2019 Currency contracts - cash flow hedges $ (5,653) $ (3,407) SG&A $ (124) $ (2,840) $ — $ — Interest rate swaps - cash flow hedges (910) (7,242) Interest expense — — Interest expense (3,222) 69 Cross-currency debt swaps - principal — — — — SG&A (1,075) 419 Cross-currency debt swaps - interest — — — — Interest expense 72 147 Total $ (6,563) $ (10,649) $ (124) $ (2,840) $ (4,225) $ 635 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Summary of changes in accumulated other comprehensive income (loss) | The following table summarizes changes in AOCI by component and related tax effects for the periods shown: (in thousands) Interest Foreign Total Balance at February 29, 2020 $ (8,199) $ 1,194 $ (7,005) Other comprehensive loss before reclassification (910) (5,653) (6,563) Amounts reclassified out of AOCI — 124 124 Tax effects 214 945 1,159 Other comprehensive loss (696) (4,584) (5,280) Balance at November 30, 2020 $ (8,895) $ (3,390) $ (12,285) Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive loss before reclassification (7,242) (3,407) (10,649) Amounts reclassified out of AOCI — 2,840 2,840 Tax effects 1,680 53 1,733 Other comprehensive loss (5,562) (514) (6,076) Balance at November 30, 2019 $ (5,430) $ 545 $ (4,885) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables present segment information for the periods shown: Three Months Ended November 30, 2020 (in thousands) Housewares Health & Home Beauty (1) Total Sales revenue, net $ 222,400 $ 250,158 $ 165,179 $ 637,737 Restructuring charges (12) — — (12) Operating income 37,658 30,478 32,573 100,709 Capital and intangible asset expenditures 1,375 2,441 370 4,186 Depreciation and amortization 2,371 4,106 3,042 9,519 Three Months Ended November 30, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 183,211 $ 185,810 $ 105,716 $ 474,737 Restructuring charges — — 12 12 Operating income 42,272 24,372 12,625 79,269 Capital and intangible asset expenditures 2,272 1,917 197 4,386 Depreciation and amortization 2,263 3,740 2,757 8,760 Nine Months Ended November 30, 2020 (in thousands) Housewares Health & Home Beauty (1) Total Sales revenue, net $ 564,891 $ 661,568 $ 362,965 $ 1,589,424 Restructuring charges 251 — 104 355 Operating income 106,294 95,782 54,887 256,963 Capital and intangible asset expenditures 6,912 10,346 2,165 19,423 Depreciation and amortization 6,743 12,331 8,921 27,995 Nine Months Ended November 30, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 496,017 $ 499,543 $ 269,507 $ 1,265,067 Restructuring charges 90 — 971 1,061 Operating income 109,170 51,836 19,990 180,996 Capital and intangible asset expenditures 8,354 4,115 778 13,247 Depreciation and amortization 5,292 12,322 7,262 24,876 (1) The three and nine month periods ended November 30, 2020 include three and nine months of operating results for Drybar Products, respectively, which was acquired on January 23, 2020, with no comparable results in the same periods last year. For additional information regarding the Drybar Products acquisition, see Note 7 to the accompanying condensed consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of components of basic and diluted shares | The following table presents our weighted average basic and diluted shares for the periods shown: Three Months Ended Nine Months Ended (in thousands) 2020 2019 2020 2019 Weighted average shares outstanding, basic 24,965 25,161 25,182 25,099 Incremental shares from share-based compensation arrangements 227 235 168 196 Weighted average shares outstanding, diluted 25,192 25,396 25,350 25,295 Anti-dilutive securities 4 134 149 217 |
Basis of Presentation and Rel_3
Basis of Presentation and Related Information (Details) $ / shares in Units, $ in Millions | Jan. 23, 2020USD ($) | Nov. 30, 2020Segment$ / shares | Feb. 29, 2020$ / shares |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |
Number of segments | Segment | 3 | ||
Drybar Products LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Payment to acquire business | $ | $ 255.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 29, 2020 | Mar. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease assets | $ (32,277) | $ (32,277) | $ (32,645) | |||
Present value of lease liability | 44,049 | 44,049 | $ 47,223 | |||
Operating lease expense | 1,800 | $ 1,500 | 5,000 | $ 4,800 | ||
Renal expense associated with operating leases | $ 2,400 | $ 2,100 | $ 6,600 | $ 5,800 | ||
Accounting Standards Update 2016-02 | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease assets | (37,100) | |||||
Present value of lease liability | $ 47,200 | |||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Remaining lease term of operating issues | 1 year | 1 year | ||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Remaining lease term of operating issues | 12 years | 12 years |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) $ in Thousands | 9 Months Ended |
Nov. 30, 2020USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 10 years |
Weighted average discount rate (as a percent) | 6.10% |
Year-to-date cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases (in thousands) | $ 4,998 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Mar. 01, 2019 |
Leases [Abstract] | ||
Fiscal 2021 (balance for remainder of fiscal year) | $ 1,826 | |
Fiscal 2022 | 7,128 | |
Fiscal 2023 | 6,123 | |
Fiscal 2024 | 5,332 | |
Fiscal 2025 | 5,762 | |
Thereafter | 34,370 | |
Total future lease payments | 60,541 | |
Less: imputed interest | (16,492) | |
Present value of lease liability | $ 44,049 | $ 47,223 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 | Mar. 01, 2019 |
Leases [Abstract] | |||
Lease liabilities, current | $ 4,770 | ||
Lease liabilities, non-current | 39,279 | $ 40,861 | |
Total lease liability | $ 44,049 | $ 47,223 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 39,306 | $ 44,806 |
Property and equipment, accumulated depreciation | 144,462 | 132,340 |
Goodwill accumulated impairment | 0 | 71,993 |
Other intangible assets, accumulated amortization | 162,425 | 148,891 |
Other Intangible Assets, Held-For-Sale | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Goodwill accumulated impairment | 71,993 | 71,993 |
Other intangible assets, accumulated amortization | 4,474 | 4,474 |
Property, Plant and Equipment, Held-for-Sale | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Property and equipment, accumulated depreciation | 403 | 403 |
Inventory | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 11,650 | 17,150 |
Property and equipment, net of accumulated depreciation of $403 | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 83 | 83 |
Goodwill, net of cumulative impairments of $71,993 | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 9,849 | 9,849 |
Other intangible assets, net of accumulated amortization of $4,474 | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 17,724 | $ 17,724 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2020 | Feb. 29, 2020 | |
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 280,257 | $ 264,447 |
Less accumulated depreciation | (144,462) | (132,340) |
Property and equipment, net | 135,795 | 132,107 |
Land | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 12,644 | 12,644 |
Building and improvements | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 117,061 | 115,592 |
Building and improvements | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Building and improvements | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 40 years | |
Computer, software, furniture and other equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 98,382 | 89,257 |
Computer, software, furniture and other equipment | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Computer, software, furniture and other equipment | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 15 years | |
Tools, molds and other production equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 43,001 | 37,652 |
Tools, molds and other production equipment | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Tools, molds and other production equipment | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 7 years | |
Construction in progress | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 9,169 | $ 9,302 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Accrued compensation, benefits and payroll taxes | $ 54,667 | $ 49,624 |
Accrued sales discounts and allowances | 55,832 | 34,176 |
Accrued sales returns | 31,919 | 22,972 |
Accrued advertising | 60,549 | 31,351 |
Other | 86,601 | 45,034 |
Total accrued expenses and other current liabilities | $ 289,568 | $ 183,157 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Drybar Products LLC - USD ($) $ in Millions | Jan. 23, 2020 | Feb. 29, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Payment to acquire business | $ 255.9 | |
Acquisition related expenses | $ 2.5 | |
Weighted average cost of capital | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Measurement inputs | 12.60% | |
Customer attrition rate | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Measurement inputs | 6.70% | |
Trade Names | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Identifiable assets acquired and liabilities assumed | $ 30 | |
Expected life | 15 years | |
Trade Names | Royalty rate | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Measurement inputs | 5.00% | |
Customer Relationships | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Identifiable assets acquired and liabilities assumed | $ 17 | |
Expected life | 14 years 6 months | |
Customer Relationships | Royalty rate | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Measurement inputs | 3.00% | |
Consulting Agreement | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Identifiable assets acquired and liabilities assumed | $ 10 | |
Expected life | 5 years | |
Noncompete Agreements | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Identifiable assets acquired and liabilities assumed | $ 6 | |
Expected life | 10 years |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 | Jan. 23, 2020 |
Assets | |||
Goodwill | $ 739,901 | $ 739,901 | |
Drybar Products LLC | |||
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 [Abstract] | |||
Accounts payable | 1,948 | ||
Accrued expenses | 4,099 | ||
Subtotal - liabilities | 6,047 | ||
Net assets recorded | 255,861 | ||
Drybar Products LLC | Trade Names | |||
Assets | |||
Definite lived intangible assets | 30,000 | ||
Drybar Products LLC | Other intangibles - finite | |||
Assets | |||
Definite lived intangible assets | $ 33,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of carrying amounts and associated accumulated amortization for all intangible assets by operating segment (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Changes in Goodwill | ||
Cumulative goodwill impairments | $ 0 | $ (71,993) |
Goodwill net book value | 739,901 | 739,901 |
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (162,425) | (148,891) |
Goodwill and intangible assets | ||
Gross carrying amount | 1,190,943 | 1,311,122 |
Intangible assets, net (including goodwill) | 1,028,518 | 1,040,853 |
Other Intangible Assets, Including Held-For-Sale | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (198,276) | |
Housewares | ||
Changes in Goodwill | ||
Goodwill gross carrying amount | 282,056 | 282,056 |
Cumulative goodwill impairments | 0 | 0 |
Goodwill net book value | 282,056 | 282,056 |
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (23,011) | (21,469) |
Goodwill and intangible assets | ||
Gross carrying amount | 459,319 | 458,351 |
Intangible assets, net (including goodwill) | 436,308 | 436,882 |
Housewares | Other intangibles - finite | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 43,063 | 42,095 |
Intangible assets - finite-lived, accumulated amortization | (23,011) | (21,469) |
Intangible assets - finite-lived, net book value | 20,052 | 20,626 |
Housewares | Trademarks | ||
Changes in intangible assets - indefinite-lived | ||
Intangible assets - indefinite-lived, gross carrying amount | 134,200 | 134,200 |
Health & Home | ||
Changes in Goodwill | ||
Goodwill gross carrying amount | 284,913 | 284,913 |
Cumulative goodwill impairments | 0 | 0 |
Goodwill net book value | 284,913 | 284,913 |
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (121,308) | (113,894) |
Goodwill and intangible assets | ||
Gross carrying amount | 481,809 | 481,586 |
Intangible assets, net (including goodwill) | 360,501 | 367,692 |
Health & Home | Licenses | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 17,050 | 17,050 |
Intangible assets - finite-lived, accumulated amortization | (16,015) | (15,752) |
Intangible assets - finite-lived, net book value | 1,035 | 1,298 |
Health & Home | Other intangibles - finite | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 118,446 | 118,223 |
Intangible assets - finite-lived, accumulated amortization | (105,293) | (98,142) |
Intangible assets - finite-lived, net book value | 13,153 | 20,081 |
Health & Home | Trademarks | ||
Changes in intangible assets - indefinite-lived | ||
Intangible assets - indefinite-lived, gross carrying amount | 54,000 | 54,000 |
Health & Home | Licenses | ||
Changes in intangible assets - indefinite-lived | ||
Intangible assets - indefinite-lived, gross carrying amount | 7,400 | 7,400 |
Beauty | ||
Changes in Goodwill | ||
Goodwill gross carrying amount | 172,932 | 244,925 |
Cumulative goodwill impairments | 0 | (71,993) |
Goodwill net book value | 172,932 | 172,932 |
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (18,106) | (62,913) |
Goodwill and intangible assets | ||
Gross carrying amount | 249,815 | 371,185 |
Intangible assets, net (including goodwill) | 231,709 | 236,279 |
Beauty | Other intangibles - finite | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, accumulated amortization | (49,400) | |
Beauty | Trademarks | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 30,151 | 33,392 |
Intangible assets - finite-lived, accumulated amortization | (1,827) | (3,564) |
Intangible assets - finite-lived, net book value | 28,324 | 29,828 |
Beauty | Licenses | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 13,697 | 13,697 |
Intangible assets - finite-lived, accumulated amortization | (13,037) | (12,800) |
Intangible assets - finite-lived, net book value | 660 | 897 |
Beauty | Other intangibles - finite | ||
Changes in intangible assets - finite-lived | ||
Intangible assets - finite-lived, gross carrying amount | 33,035 | 79,171 |
Intangible assets - finite-lived, accumulated amortization | (3,242) | (46,549) |
Intangible assets - finite-lived, net book value | $ 29,793 | $ 32,622 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of amortization expense attributable to intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4,501 | $ 4,790 | $ 13,527 | $ 13,129 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of estimated amortization expense of intangible assets (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2021 | $ 16,751 |
Fiscal 2022 | 10,361 |
Fiscal 2023 | 10,287 |
Fiscal 2024 | 9,902 |
Fiscal 2025 | 9,281 |
Fiscal 2026 | $ 7,252 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Nov. 30, 2020 | Nov. 30, 2020 | |
Share-based compensation plans | ||
Exercise of stock options (in shares) | 850 | 13,540 |
Employee purchases of common stock (in shares) | 12,264 | 26,830 |
Average purchase price (in dollars per share) | $ 139.88 | $ 134.78 |
Directors stock compensation | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 770 | 2,842 |
Grant date fair value | $ 0.1 | $ 0.5 |
Grant date fair value of shares granted in period (in dollars per share) | $ 207.98 | $ 184.56 |
Performance Restricted Stock Units (PSU) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 0 | 4,970 |
Grant date fair value | $ 0.8 | |
Grant date fair value of shares granted in period (in dollars per share) | $ 170.27 | |
Performance Based Restricted Stock Awards (PSA) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 0 | 86,004 |
Grant date fair value | $ 14.6 | |
Grant date fair value of shares granted in period (in dollars per share) | $ 170.27 | |
Time-Vested | Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 39 | 2,747 |
Grant date fair value | $ 0.5 | |
Grant date fair value of shares granted in period (in dollars per share) | $ 200 | $ 170.69 |
Time-Vested | Restricted Stock Awards (RSA) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 4,171 | 42,143 |
Grant date fair value | $ 0.8 | $ 7.3 |
Grant date fair value of shares granted in period (in dollars per share) | $ 199.39 | $ 174.03 |
Vested and settled performance shares | Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Grant date fair value | $ 3.6 | $ 11.3 |
Shares vested and settled (in shares) | 18,196 | 64,948 |
Grant date fair value of shares settled in period (in dollars per share) | $ 195.29 | $ 173.33 |
Vested and settled performance shares | Restricted Stock Awards (RSA) | ||
Share-based compensation plans | ||
Grant date fair value | $ 0.1 | $ 1.4 |
Shares vested (in shares) | 605 | 7,929 |
Grant date fair value of shares settled in period (in dollars per share) | $ 201.29 | $ 174.75 |
Vested and settled performance shares | Performance Restricted Stock Units (PSU) | ||
Share-based compensation plans | ||
Grant date fair value | $ 18.6 | |
Shares vested and settled (in shares) | 0 | 112,720 |
Grant date fair value of shares settled in period (in dollars per share) | $ 164.58 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans Share Based Compensation Expense in SG&A (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense, net of income tax benefits | $ 6,336 | $ 4,415 | $ 19,248 | $ 17,309 |
Impact of share-based compensation on EPS: | ||||
Basic (in dollars per share) | $ 0.25 | $ 0.18 | $ 0.76 | $ 0.69 |
Diluted (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.76 | $ 0.68 |
SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 6,739 | $ 4,758 | $ 20,654 | $ 18,743 |
Less income tax benefits | (403) | (343) | (1,406) | (1,434) |
Stock options | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 3 | 21 | 18 | 172 |
Performance based and other stock awards | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 6,084 | 4,138 | 19,134 | 17,366 |
Employee stock purchase plan | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 491 | 459 | 977 | 784 |
Directors stock compensation | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 161 | $ 140 | $ 525 | $ 421 |
Repurchase of Helen of Troy C_2
Repurchase of Helen of Troy Common Stock (Details) - USD ($) | May 08, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Repurchase of common stock | ||||||
Amount of shares authorized for purchase | $ 400,000,000 | |||||
Period for stock repurchase | 3 years | |||||
Remaining share repurchase amount - prior program | $ 107,400,000 | |||||
Remaining share repurchase amount | $ 190,000,000 | $ 190,000,000 | ||||
Repurchase of common stock | ||||||
Aggregate value of shares | $ 192,800,000 | $ 1,002,000 | $ 202,961,000 | $ 10,133,000 | ||
Open Market And Tender Offer | ||||||
Repurchase of common stock | ||||||
Number of shares (in shares) | 960,829 | 0 | 960,829 | 0 | ||
Aggregate value of shares | $ 191,606,000 | $ 0 | $ 191,606,000 | $ 0 | ||
Average price per share (in dollars per share) | $ 199.42 | $ 0 | $ 199.42 | $ 0 | ||
Stock Compensation Plan | ||||||
Repurchase of common stock | ||||||
Number of shares (in shares) | 6,115,000 | 6,509,000 | 67,740,000 | 77,067,000 | ||
Aggregate value of shares | $ 1,194,000 | $ 1,002,000 | $ 11,355,000 | $ 10,133,000 | ||
Average price per share (in dollars per share) | $ 195.26 | $ 153.88 | $ 167.63 | $ 131.48 |
Restructuring Plan (Details)
Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 41 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 28, 2021 | |
Restructuring Plan | |||||
Restructuring charges | $ (12) | $ 12 | $ 355 | $ 1,061 | |
Cash restructuring payments for the reporting period | 200 | $ 300 | 900 | $ 1,800 | |
Project Refuel | |||||
Restructuring Plan | |||||
Restructuring charges | 400 | ||||
Incurred pre-tax restructuring costs | 9,100 | 9,100 | |||
Cash restructuring payments to date | 8,900 | ||||
Restructuring liability | $ 200 | $ 200 | |||
Scenario, Forecast | Project Refuel | |||||
Restructuring Plan | |||||
Expected restructuring costs | $ 9,500 | ||||
Scenario, Forecast | Minimum | Project Refuel | |||||
Restructuring Plan | |||||
Targeted annualized profit improvement | 9,000 | ||||
Scenario, Forecast | Maximum | Project Refuel | |||||
Restructuring Plan | |||||
Targeted annualized profit improvement | $ 11,000 |
Long-Term Debt - Schedule (Deta
Long-Term Debt - Schedule (Details) - USD ($) | Mar. 13, 2020 | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2020 | Feb. 29, 2020 |
Long-term debt | |||||
Increase in accordion feature | $ 300,000,000 | $ 200,000,000 | |||
Maximum additional debt allowed under debt covenants | $ 804,800,000 | $ 804,800,000 | |||
Remaining principal balance due on March 1, 2022 | $ 1,900,000 | $ 1,900,000 | |||
Minimum | Base rate | |||||
Long-term debt | |||||
Interest rate | 0.00% | ||||
Minimum | Eurodollar | |||||
Long-term debt | |||||
Interest rate | 1.00% | ||||
Maximum | Base rate | |||||
Long-term debt | |||||
Interest rate | 1.00% | ||||
Maximum | Eurodollar | |||||
Long-term debt | |||||
Interest rate | 2.00% | ||||
Credit agreement | |||||
Long-term debt | |||||
Maximum revolving commitment | $ 1,250,000,000 | $ 1,000,000,000 | |||
Credit agreement | Minimum | |||||
Long-term debt | |||||
Interest rate range during the period (as a percent) | 1.14% | 1.14% | |||
Credit agreement | Maximum | |||||
Long-term debt | |||||
Interest rate range during the period (as a percent) | 3.25% | 4.75% | |||
MBFC loan | |||||
Long-term debt | |||||
Amount available for borrowings | $ 804,800,000 | $ 804,800,000 | |||
Aggregate principal balance | 18,600,000 | 18,600,000 | |||
Remaining principal balance due on March 1, 2021 | 1,900,000 | 1,900,000 | |||
Remaining principal balance due on March 1, 2022 | 1,900,000 | 1,900,000 | |||
Remaining principal balance due on March 1, 2023 | 14,800,000 | $ 14,800,000 | |||
MBFC loan | Base rate | |||||
Long-term debt | |||||
Interest rate | 1.00% | ||||
Revolving loan | Credit agreement | |||||
Long-term debt | |||||
Amount outstanding | 426,000,000 | $ 426,000,000 | |||
Letter of credit | Credit agreement | |||||
Long-term debt | |||||
Amount outstanding | $ 19,200,000 | $ 19,200,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long-term debt (Details) - USD ($) $ in Thousands | Mar. 13, 2020 | Nov. 30, 2020 | Feb. 29, 2020 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 440,381 | $ 339,305 | |
Less current maturities of long-term debt | (1,884) | (1,884) | |
Long-term debt, excluding current maturities | 438,497 | 337,421 | |
Remaining principal balance due on March 1, 2022 | 1,900 | ||
Base rate | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Base rate | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | ||
Credit agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt | 421,833 | 318,854 | |
Amount of interest rate swap hedge | 225,000 | ||
MBFC loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 18,548 | $ 20,451 | |
Remaining principal balance due on March 1, 2021 | 1,900 | ||
Remaining principal balance due on March 1, 2022 | 1,900 | ||
Remaining principal balance due on March 1, 2023 | $ 14,800 | ||
MBFC loan | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.00% | ||
MBFC loan | Base rate | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% |
Fair Value (Details)
Fair Value (Details) - Recurring - Fair Values - Significant other observable market inputs (Level 2) - USD ($) $ in Thousands | Nov. 30, 2020 | Feb. 29, 2020 |
Assets: | ||
Total assets | $ 118,566 | $ 4,731 |
Liabilities: | ||
Total liabilities | 457,336 | 350,181 |
Interest rate swap | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative assets | 11,627 | 10,717 |
Foreign currency contracts | ||
Assets: | ||
Derivative assets | 7 | 2,083 |
Liabilities: | ||
Derivative assets | 5,328 | 159 |
Floating rate debt | ||
Liabilities: | ||
Floating rate debt | 440,381 | 339,305 |
Money market accounts | ||
Assets: | ||
Money market accounts | $ 118,559 | $ 2,648 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revolving loan | Credit agreement | ||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||
Amount outstanding | $ 426 | $ 426 | ||
SG&A | ||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | $ 0.4 | $ 0.6 | $ 0.5 | $ 2.2 |
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | ||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||
Concentration risk percentage | 11.00% | 17.00% | 12.00% | 14.00% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Interest Rate Risk (Details) $ in Millions | Nov. 30, 2020USD ($) |
Credit agreement | |
Financial instruments and risk management | |
Fixed rate debt | $ 225 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Nov. 30, 2020EUR (€) | Nov. 30, 2020USD ($) | Nov. 30, 2020CAD ($) | Nov. 30, 2020GBP (£) | Nov. 30, 2020MXN ($) | Feb. 29, 2020EUR (€) | Feb. 29, 2020USD ($) | Feb. 29, 2020CAD ($) | Feb. 29, 2020GBP (£) | Feb. 29, 2020MXN ($) |
Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | $ 7 | $ 2,060 | ||||||||
Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 23 | ||||||||
Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 8,306 | 3,633 | ||||||||
Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 8,649 | 7,243 | ||||||||
Derivatives designated as hedging instruments | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 7 | 1,560 | ||||||||
Derivatives designated as hedging instruments | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 23 | ||||||||
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 8,306 | 3,633 | ||||||||
Derivatives designated as hedging instruments | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 7,433 | 7,243 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | € | € 46,000 | € 25,875 | ||||||||
Derivatives 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 | 0 | 837 | ||||||||
Derivatives 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 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,758 | 0 | ||||||||
Derivatives 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 | 433 | 15 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | $ 26,000 | $ 14,000 | ||||||||
Derivatives 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 | 0 | 202 | ||||||||
Derivatives 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 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 763 | 0 | ||||||||
Derivatives 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 | 93 | 0 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | £ | £ 23,790 | £ 13,000 | ||||||||
Derivatives 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 | 0 | 435 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 23 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 662 | 0 | ||||||||
Derivatives 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 | 266 | 0 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | $ 30,000 | $ 10,000 | ||||||||
Derivatives 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 | 7 | 12 | ||||||||
Derivatives 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 | ||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives 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 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | € | 2,000 | 8,000 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 74 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 15 | 0 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | £ | 2,000 | 6,500 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 122 | 144 | ||||||||
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Interest rate swaps | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | 225,000 | 225,000 | ||||||||
Derivatives 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 | 0 | ||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 4,986 | 3,489 | ||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 6,641 | 7,228 | ||||||||
Derivatives not designated under hedge accounting | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 500 | ||||||||
Derivatives not designated under hedge accounting | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Derivatives not designated under hedge accounting | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives not designated under hedge accounting | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,216 | 0 | ||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | € | € 6,000 | € 4,400 | ||||||||
Derivatives 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 | 0 | 473 | ||||||||
Derivatives 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 | 0 | ||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives 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 | 732 | 0 | ||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional amount | £ | £ 4,500 | £ 5,000 | ||||||||
Derivatives 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 | 0 | 27 | ||||||||
Derivatives 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 | ||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Derivatives 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 | $ 484 | $ 0 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in AOCI | $ 3,089 | $ (655) | $ (6,563) | $ (10,649) |
Gain (Loss) Reclassified from AOCI into Income | 549 | (630) | (124) | (2,840) |
Gain (Loss) Recognized in Income | (1,268) | (478) | (4,225) | 635 |
Foreign currency contracts | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in Income | 0 | 0 | 0 | 0 |
Foreign currency contracts | Cash flow hedges | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in AOCI | 1,550 | (2,739) | (5,653) | (3,407) |
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income | $ 8,300 | |||
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income, period of time to transfer | 12 months | |||
Foreign currency contracts | Cash flow hedges | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from AOCI into Income | 549 | (630) | $ (124) | (2,840) |
Interest rate swaps | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in Income | (1,289) | (162) | (3,222) | 69 |
Interest rate swaps | Cash flow hedges | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in AOCI | 1,539 | 2,084 | (910) | (7,242) |
Interest rate swaps | Cash flow hedges | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Cross currency debt swaps | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in AOCI | 0 | 0 | 0 | 0 |
Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Cross currency debt swaps | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Income | 23 | (389) | (1,075) | 419 |
Cross currency debt swaps | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in Income | $ (2) | $ 73 | $ 72 | $ 147 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,308,529 | $ 1,087,375 | $ 1,161,723 | $ 996,637 |
Other comprehensive loss before reclassification | (6,563) | (10,649) | ||
Amounts reclassified out of AOCI | 124 | 2,840 | ||
Tax effects | 1,159 | 1,733 | ||
Total other comprehensive income (loss), net of tax | 2,035 | (130) | (5,280) | (6,076) |
Ending balance | 1,210,438 | 1,161,684 | 1,210,438 | 1,161,684 |
Interest Rate Swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (8,199) | 132 | ||
Other comprehensive loss before reclassification | (910) | (7,242) | ||
Amounts reclassified out of AOCI | 0 | 0 | ||
Tax effects | 214 | 1,680 | ||
Total other comprehensive income (loss), net of tax | (696) | (5,562) | ||
Ending balance | (8,895) | (5,430) | (8,895) | (5,430) |
Foreign Currency Contracts | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,194 | 1,059 | ||
Other comprehensive loss before reclassification | (5,653) | (3,407) | ||
Amounts reclassified out of AOCI | 124 | 2,840 | ||
Tax effects | 945 | 53 | ||
Total other comprehensive income (loss), net of tax | (4,584) | (514) | ||
Ending balance | (3,390) | 545 | (3,390) | 545 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (14,320) | (4,755) | (7,005) | 1,191 |
Total other comprehensive income (loss), net of tax | 2,035 | (130) | (5,280) | (6,076) |
Ending balance | $ (12,285) | $ (4,885) | $ (12,285) | $ (4,885) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment information | ||||
Sales revenue, net | $ 637,737 | $ 474,737 | $ 1,589,424 | $ 1,265,067 |
Restructuring charges | (12) | 12 | 355 | 1,061 |
Operating income | 100,709 | 79,269 | 256,963 | 180,996 |
Capital and intangible asset expenditures | 4,186 | 4,386 | 19,423 | 13,247 |
Depreciation and amortization | 9,519 | 8,760 | 27,995 | 24,876 |
Housewares | ||||
Segment information | ||||
Sales revenue, net | 222,400 | 183,211 | 564,891 | 496,017 |
Restructuring charges | (12) | 0 | 251 | 90 |
Operating income | 37,658 | 42,272 | 106,294 | 109,170 |
Capital and intangible asset expenditures | 1,375 | 2,272 | 6,912 | 8,354 |
Depreciation and amortization | 2,371 | 2,263 | 6,743 | 5,292 |
Health & Home | ||||
Segment information | ||||
Sales revenue, net | 250,158 | 185,810 | 661,568 | 499,543 |
Restructuring charges | 0 | 0 | 0 | 0 |
Operating income | 30,478 | 24,372 | 95,782 | 51,836 |
Capital and intangible asset expenditures | 2,441 | 1,917 | 10,346 | 4,115 |
Depreciation and amortization | 4,106 | 3,740 | 12,331 | 12,322 |
Beauty | ||||
Segment information | ||||
Sales revenue, net | 165,179 | 105,716 | 362,965 | 269,507 |
Restructuring charges | 0 | 12 | 104 | 971 |
Operating income | 32,573 | 12,625 | 54,887 | 19,990 |
Capital and intangible asset expenditures | 370 | 197 | 2,165 | 778 |
Depreciation and amortization | $ 3,042 | $ 2,757 | $ 8,921 | $ 7,262 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Dec. 04, 2020 | May 31, 2022 | Nov. 30, 2020 | May 31, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Feb. 28, 2022 | Feb. 28, 2019 |
Income Tax Contingency [Line Items] | |||||||||
Income tax expense (benefit) as a percent of income before income taxes | 14.00% | 10.30% | 6.50% | 9.60% | |||||
One time tax charge required due to Tax Act | $ 17,900 | ||||||||
Income tax expense | $ 13,721 | $ 7,895 | $ 16,061 | $ 16,530 | $ 9,400 | ||||
Subsequent Event | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Settlement amount of disputed tax assessment | $ 500 | ||||||||
State and Local Jurisdiction | Subsequent Event | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Amount of disputed tax assessment | $ 6,000 | ||||||||
Foreign Tax Authority | Scenario, Forecast | Minimum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Percent increase in overall effective tax rate due to changes in Macau Offshore Law | 1.50% | ||||||||
Foreign Tax Authority | Scenario, Forecast | Maximum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Percent increase in overall effective tax rate due to changes in Macau Offshore Law | 2.00% | ||||||||
COVID-19 | |||||||||
Income Tax Contingency [Line Items] | |||||||||
One-time income tax benefit, CARES Act | $ 9,400 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Weighted average diluted securities | ||||
Weighted average shares outstanding, basic (in shares) | 24,965 | 25,161 | 25,182 | 25,099 |
Incremental shares from share-based payment arrangements (in shares) | 227 | 235 | 168 | 196 |
Weighted average shares outstanding, diluted (in shares) | 25,192 | 25,396 | 25,350 | 25,295 |
Stock options | ||||
Weighted average diluted securities | ||||
Antidilutive securities (in shares) | 4 | 134 | 149 | 217 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Trademarks - Revlon $ in Millions | Dec. 22, 2020USD ($)renewal |
Subsequent Event [Line Items] | |
Initial term of licensing agreement | 40 years |
Number of renewal terms | renewal | 3 |
Term of trademark license renewal | 20 years |
Up-front license fee | $ | $ 72.5 |
License fee amortization period | 40 years |
Uncategorized Items - hele-2020
Label | Element | Value |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | us-gaap_RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability | $ 37,082,000 |
Non-Cash Increase (Decrease) In Other Accrued Liabilities | hele_NonCashIncreaseDecreaseInOtherAccruedLiabilities | (2,873,000) |
Non-Cash Increase (Decrease) In Other Current Assets And Liabilities, Net | hele_NonCashIncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet | (7,311,000) |
Non-Cash Increase (Decrease) In Prepaid Expense And Other Assets | hele_NonCashIncreaseDecreaseInPrepaidExpenseAndOtherAssets | $ 43,000 |