Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Apr. 21, 2014 | Aug. 31, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HELEN OF TROY LTD | ' | ' |
Entity Central Index Key | '0000916789 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--02-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,210,686,000 |
Entity Common Stock, Shares Outstanding | ' | 28,595,094 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Assets, current: | ' | ' |
Cash and cash equivalents | $70,027 | $12,842 |
Receivables - principally trade, less allowances of $4,679 and $5,031 | 213,054 | 219,719 |
Inventory, net | 289,255 | 280,872 |
Prepaid expenses and other current assets | 10,097 | 8,442 |
Income taxes receivable | 3,783 | 1,800 |
Deferred tax assets, net | 29,260 | 21,530 |
Total assets, current | 615,476 | 545,205 |
Property and equipment, net of accumulated depreciation of $71,516 and $74,775 | 129,117 | 101,716 |
Goodwill | 453,241 | 453,241 |
Other intangible assets, net of accumulated amortization of $94,698 and $73,344 | 322,309 | 355,628 |
Deferred tax assets, net | 2,523 | 2,401 |
Other assets, net of accumulated amortization of $6,781 and $5,403 | 10,636 | 15,813 |
Total assets | 1,533,302 | 1,474,004 |
Liabilities, current: | ' | ' |
Revolving line of credit | ' | 82,000 |
Accounts payable, principally trade | 75,585 | 72,263 |
Accrued expenses and other current liabilities | 156,688 | 134,063 |
Deferred tax liabilities, net | 181 | 339 |
Long-term debt, current maturities | 96,900 | 20,000 |
Total liabilities, current | 329,354 | 308,665 |
Long-term debt, excluding current maturities | 95,707 | 155,000 |
Deferred tax liabilities, net | 56,988 | 57,991 |
Other liabilities, noncurrent | 21,766 | 25,742 |
Total liabilities | 503,815 | 547,398 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued | ' | ' |
Common stock, $0.10 par. Authorized 50,000,000 shares; 32,272,519 and 31,868,416 shares issued and outstanding | 3,227 | 3,187 |
Additional paid in capital | 180,861 | 164,471 |
Accumulated other comprehensive loss | -1,091 | -2,729 |
Retained earnings | 846,490 | 761,677 |
Total stockholders' equity | 1,029,487 | 926,606 |
Total liabilities and stockholders' equity | $1,533,302 | $1,474,004 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Receivables - principally trade, allowances (in dollars) | $4,679 | $5,031 |
Property and equipment, accumulated depreciation (in dollars) | 71,516 | 74,775 |
Other intangible assets, accumulated amortization (in dollars) | 94,698 | 73,344 |
Other assets, accumulated amortization (in dollars) | $6,781 | $5,403 |
Cumulative preferred stock, non-voting, par (in dollars per share) | $1 | $1 |
Cumulative preferred stock, non-voting, Authorized shares | 2,000,000 | 2,000,000 |
Cumulative preferred stock, non-voting, issued shares | 0 | 0 |
Common stock, par (in dollars per share) | $0.10 | $0.10 |
Common stock, Authorized shares | 50,000,000 | 50,000,000 |
Common stock, shares issued | 32,272,519 | 31,868,416 |
Common stock, shares outstanding | 32,272,519 | 31,868,416 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Consolidated Statements of Income | ' | ' | ' |
Sales revenue, net | $1,317,153 | $1,288,263 | $1,181,676 |
Cost of goods sold | 800,450 | 770,052 | 703,192 |
Gross profit | 516,703 | 518,211 | 478,484 |
Selling, general and administrative expense | 387,554 | 369,438 | 339,098 |
Asset impairment charges | 12,049 | ' | ' |
Operating income | 117,100 | 148,773 | 139,386 |
Nonoperating income (expense), net | 227 | 86 | -377 |
Interest expense | -10,193 | -13,345 | -12,917 |
Income before income taxes | 107,134 | 135,514 | 126,092 |
Income tax expense | 20,886 | 19,848 | 15,718 |
Net income | $86,248 | $115,666 | $110,374 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $2.69 | $3.64 | $3.52 |
Diluted (in dollars per share) | $2.66 | $3.62 | $3.48 |
Weighted average shares of common stock used in computing net earnings per share: | ' | ' | ' |
Basic (in shares) | 32,007 | 31,754 | 31,340 |
Diluted (in shares) | 32,386 | 31,936 | 31,705 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Income, Before Tax | $107,134 | $135,514 | $126,092 |
Auction rate security activity, before tax | ' | ' | ' |
Changes in fair market value | ' | ' | 1,465 |
Settlements reclassified to income | ' | ' | -126 |
Subtotal | ' | ' | 1,339 |
Total other comprehensive income, before tax | 2,732 | 4,271 | 3,280 |
Comprehensive income, Before Tax | 109,866 | 139,785 | 129,372 |
Income, Tax | -20,886 | -19,848 | -15,718 |
Auction rate security activity, tax | ' | ' | ' |
Changes in fair market value | ' | ' | -520 |
Settlements reclassified to income | ' | ' | 65 |
Subtotal | ' | ' | -455 |
Total other comprehensive income, tax | -1,094 | -1,411 | -1,019 |
Comprehensive income, Tax | -21,980 | -21,259 | -16,737 |
Net income | 86,248 | 115,666 | 110,374 |
Auction rate security activity, net of tax | ' | ' | ' |
Changes in fair market value | ' | ' | 945 |
Settlements reclassified to income | ' | ' | -61 |
Subtotal | ' | ' | 884 |
Total other comprehensive income, net of tax | 1,638 | 2,860 | 2,261 |
Comprehensive income, net of tax | 87,886 | 118,526 | 112,635 |
Interest rate swap | ' | ' | ' |
Cash flow hedge activity, before tax | ' | ' | ' |
Changes in fair market value | -111 | -103 | -3,353 |
Settlements reclassified to income | 3,707 | 3,833 | 4,424 |
Subtotal | 3,596 | 3,730 | 1,071 |
Cash flow hedge activity, tax | ' | ' | ' |
Changes in fair market value | 39 | 36 | 1,430 |
Settlements reclassified to income | -1,297 | -1,342 | -1,709 |
Subtotal | -1,258 | -1,306 | -279 |
Cash flow hedge activity, net of tax | ' | ' | ' |
Changes in fair market value | -72 | -67 | -1,923 |
Settlements reclassified to income | 2,410 | 2,491 | 2,715 |
Subtotal | 2,338 | 2,424 | 792 |
Foreign currency swaps and contracts | ' | ' | ' |
Cash flow hedge activity, before tax | ' | ' | ' |
Changes in fair market value | -962 | -132 | 563 |
Ineffectiveness recorded in income | ' | 44 | 63 |
Settlements reclassified to income | 98 | 629 | 244 |
Subtotal | -864 | 541 | 870 |
Cash flow hedge activity, tax | ' | ' | ' |
Changes in fair market value | 195 | -17 | -188 |
Ineffectiveness recorded in income | ' | 2 | -19 |
Settlements reclassified to income | -31 | -90 | -78 |
Subtotal | 164 | -105 | -285 |
Cash flow hedge activity, net of tax | ' | ' | ' |
Changes in fair market value | -767 | -149 | 375 |
Ineffectiveness recorded in income | ' | 46 | 44 |
Settlements reclassified to income | 67 | 539 | 166 |
Subtotal | ($700) | $436 | $585 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Interest rate swap | Foreign currency contracts: | Common stock | Paid in capital | Accumulated other comprehensive loss | Accumulated other comprehensive loss | Accumulated other comprehensive loss | Retained earnings |
In Thousands, except Share data, unless otherwise specified | Interest rate swap | Foreign currency contracts: | |||||||
Balance at Feb. 28, 2011 | ' | ' | ' | $3,084 | $130,015 | ($7,850) | ' | ' | $560,300 |
Balance (in shares) at Feb. 28, 2011 | ' | ' | ' | 30,839,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to paid in capital for changes in uncertain tax positions | ' | ' | ' | ' | -482 | ' | ' | ' | ' |
Stock option share-based compensation, net of tax benefits of $47, $74 and $99 | ' | ' | ' | ' | 2,829 | ' | ' | ' | ' |
Exercise of stock options, including (Paid in capital) tax benefits of $499, $5,015 and $4,483 | ' | ' | ' | 191 | 35,066 | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 1,907,000 | ' | ' | ' | ' | ' |
Restricted share-based compensation, including tax benefits (Paid in capital) of $2,921 | ' | ' | ' | 2 | -2 | ' | ' | ' | ' |
Restricted share-based compensation (in shares) | ' | ' | ' | 18,000 | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | ' | ' | ' | 4 | 1,008 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | ' | ' | 42,000 | ' | ' | ' | ' | ' |
Cash flow hedge activity, net of tax | ' | 792 | 585 | ' | ' | ' | 792 | 585 | ' |
Auction rate security activity, net of tax | 884 | ' | ' | ' | ' | 884 | ' | ' | ' |
Net Income | 110,374 | ' | ' | ' | ' | ' | ' | ' | 110,374 |
Common stock repurchased and retired | ' | ' | ' | -113 | -17,428 | ' | ' | ' | -22,530 |
Common stock repurchased and retired (in shares) | ' | ' | ' | -1,125,000 | ' | ' | ' | ' | ' |
Balance at Feb. 29, 2012 | 796,729 | ' | ' | 3,168 | 151,006 | -5,589 | ' | ' | 648,144 |
Balance (in shares) at Feb. 29, 2012 | ' | ' | ' | 31,681,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option share-based compensation, net of tax benefits of $47, $74 and $99 | ' | ' | ' | ' | 2,993 | ' | ' | ' | ' |
Exercise of stock options, including (Paid in capital) tax benefits of $499, $5,015 and $4,483 | ' | ' | ' | 25 | 10,804 | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 248,000 | ' | ' | ' | ' | ' |
Restricted share-based compensation, including tax benefits (Paid in capital) of $2,921 | ' | ' | ' | 1 | -1 | ' | ' | ' | ' |
Restricted share-based compensation (in shares) | ' | ' | ' | 11,000 | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | ' | ' | ' | 4 | 1,056 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | ' | ' | 39,000 | ' | ' | ' | ' | ' |
Cash flow hedge activity, net of tax | ' | 2,424 | 436 | ' | ' | ' | 2,424 | 436 | ' |
Net Income | 115,666 | ' | ' | ' | ' | ' | ' | ' | 115,666 |
Common stock repurchased and retired | ' | ' | ' | -11 | -1,387 | ' | ' | ' | -2,133 |
Common stock repurchased and retired (in shares) | ' | ' | ' | -111,000 | ' | ' | ' | ' | ' |
Balance at Feb. 28, 2013 | 926,606 | ' | ' | 3,187 | 164,471 | -2,729 | ' | ' | 761,677 |
Balance (in shares) at Feb. 28, 2013 | ' | ' | ' | 31,868,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to paid in capital for changes in uncertain tax positions | ' | ' | ' | ' | 257 | ' | ' | ' | ' |
Stock option share-based compensation, net of tax benefits of $47, $74 and $99 | ' | ' | ' | ' | 2,757 | ' | ' | ' | ' |
Exercise of stock options, including (Paid in capital) tax benefits of $499, $5,015 and $4,483 | ' | ' | ' | 24 | 6,541 | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 239,000 | ' | ' | ' | ' | ' |
Restricted share-based compensation, including tax benefits (Paid in capital) of $2,921 | ' | ' | ' | 27 | 12,285 | ' | ' | ' | ' |
Restricted share-based compensation (in shares) | ' | ' | ' | 271,000 | ' | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | ' | ' | ' | 4 | 1,346 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | ' | ' | 42,000 | ' | ' | ' | ' | ' |
Cash flow hedge activity, net of tax | ' | 2,338 | -700 | ' | ' | ' | 2,338 | -700 | ' |
Net Income | 86,248 | ' | ' | ' | ' | ' | ' | ' | 86,248 |
Common stock repurchased and retired | ' | ' | ' | -15 | -6,796 | ' | ' | ' | -1,435 |
Common stock repurchased and retired (in shares) | ' | ' | ' | -147,000 | ' | ' | ' | ' | ' |
Balance at Feb. 28, 2014 | $1,029,487 | ' | ' | $3,227 | $180,861 | ($1,091) | ' | ' | $846,490 |
Balance (in shares) at Feb. 28, 2014 | ' | ' | ' | 32,273,000 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Consolidated Statements of Stockholders' Equity | ' | ' | ' |
Stock option share-based compensation, tax benefits | $47 | $74 | $99 |
Exercise of stock options, tax benefits | 499 | 5,015 | 4,483 |
Restricted share-based compensation tax benefit | $2,921 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Cash provided (used) by operating activities: | ' | ' | ' |
Net income | $86,248 | $115,666 | $110,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 34,750 | 35,328 | 30,178 |
Provision for doubtful receivables | 400 | 188 | 548 |
Non-cash share-based compensation | 31,683 | 5,913 | 2,928 |
Intangible asset impairment charges | 12,049 | ' | ' |
(Gain) loss on the sale of property and equipment | 81 | 175 | -537 |
Realized and unrealized loss on investments | ' | ' | 697 |
Deferred income taxes and tax credits | -10,109 | -12,061 | 5,070 |
Changes in operating capital, net of effects of acquisition of businesses: | ' | ' | ' |
Receivables | 6,265 | -24,624 | -7,368 |
Inventories | -8,383 | -34,625 | -28,912 |
Prepaid expenses and other current assets | 1,166 | -1,545 | -1,927 |
Other assets and liabilities, net | -1,867 | -326 | 189 |
Accounts payable | 3,733 | 2,507 | -3,476 |
Accrued expenses and other current liabilities | 8,129 | 1,360 | -4,874 |
Accrued income taxes | -9,980 | -398 | 990 |
Net cash provided by operating activities | 154,165 | 87,558 | 103,880 |
Cash provided (used) by investing activities: | ' | ' | ' |
Capital and intangible asset expenditures | -40,463 | -14,688 | -16,051 |
Proceeds from the sale of property and equipment | 5 | 26 | 2,339 |
Note receivable from land sale | ' | 737 | -733 |
Proceeds from sale of investments | ' | ' | 22,421 |
Payment to acquire a business, net of cash received | ' | ' | -160,000 |
Net cash used by investing activities | -40,458 | -13,925 | -152,024 |
Cash provided (used) by financing activities: | ' | ' | ' |
Proceeds from line of credit | 107,300 | 234,650 | 1,369,850 |
Repayment of line of credit | -189,300 | -323,750 | -1,269,750 |
Proceeds from issuance of long-term debt | 37,607 | ' | ' |
Repayment of long-term debt | -20,000 | -3,000 | -53,000 |
Payment of financing costs | -367 | -28 | -499 |
Proceeds from share issuances under share-based compensation plans, including tax benefits | 10,285 | 10,392 | 8,688 |
Payment of tax obligations resulting from cashless share award exercises | -6,445 | ' | -12,591 |
Payments for repurchases of common stock | -1,311 | -1,759 | ' |
Share-based compensation tax benefit | 5,709 | 858 | 99 |
Net cash provided (used) by financing activities | -56,522 | -82,637 | 42,797 |
Net increase (decrease) in cash and cash equivalents | 57,185 | -9,004 | -5,347 |
Cash and cash equivalents, beginning balance | 12,842 | 21,846 | 27,193 |
Cash and cash equivalents, ending balance | 70,027 | 12,842 | 21,846 |
Supplemental cash flow information: | ' | ' | ' |
Interest paid | 10,632 | 11,681 | 12,719 |
Income taxes paid, net of refunds | 31,289 | 26,449 | -797 |
Value of common stock received as exercise price of options | 492 | 1,627 | 27,482 |
Transfer of auction rate securities from noncurrent assets to investments | ' | ' | $18,950 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||
Feb. 28, 2014 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
(a) General | |||||||
When used in these notes, unless the context suggests otherwise or otherwise indicated, 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 the Company’s common shares, par value $0.10 per share, as “common stock.” References to “OXO” refer to the operations of OXO International and certain of its affiliated subsidiaries that comprise our Housewares segment. References to “Kaz” refer to the operations of Kaz, Inc. and its subsidiaries. References to “PUR” refer to the PUR brand of water filtration products that we acquired, along with certain other assets and liabilities, from The Procter & Gamble Company and certain of its affiliates. Kaz and PUR comprise a segment within the Company referred to as the Healthcare / Home Environment segment. Product and service names mentioned in this report are used for identification purposes only and may be protected by trademarks, trade names, services marks, and other intellectual property rights of the Company and other parties in the United States and other jurisdictions. The absence of a specific attribution in connection with any such mark does not constitute a waiver of any such right. All trademarks, trade names, service marks, and logos referenced herein belong to their respective owners. References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. | |||||||
We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have three segments: Housewares, Healthcare / Home Environment and Personal Care. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools, gadgets and storage containers, cleaning, organization, and baby and toddler care products. The Healthcare / Home Environment 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, air purifiers, and insect control devices. Our Personal Care segment’s 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. | |||||||
Our financial statements are prepared in U.S. Dollars and in accordance with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation. | |||||||
(b) Consolidation | |||||||
Our consolidated financial statements include the accounts of Helen of Troy Limited and its wholly-owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. | |||||||
(c) Cash and cash equivalents | |||||||
Cash equivalents include all highly-liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. | |||||||
We consider money market investment accounts to be cash equivalents. Cash equivalents comprised $1.55 and $1.09 million of the amounts reported on our consolidated balance sheets as “Cash and cash equivalents” at February 28, 2014 and 2013, respectively. Notes (11) and (12) contain additional information regarding our cash and cash equivalents. | |||||||
(d) Trading securities and long-term marketable securities | |||||||
Trading securities, when held, consist of shares of common stock of publicly traded companies and are stated on our consolidated balance sheets at fair value, as determined by the most recent trading price of each security as of each balance sheet date. We determine the appropriate classification of our investments when those investments are purchased and reevaluate those determinations at each balance sheet date. Trading securities, when held, are included in the “Assets, current” section of our consolidated balance sheets. | |||||||
All realized and unrealized gains and losses attributable to both trading and long-term marketable securities are included in “Nonoperating income (expense), net” in the consolidated statements of income. The sum of realized and unrealized net losses attributable to trading and long-term marketable security investments totaled $0.70 million in fiscal year 2012, principally from the liquidation of auction rate securities with a par value of $22.05 million. | |||||||
(e) Receivables | |||||||
Our receivables are comprised of trade credit granted to customers, primarily in the retail industry, offset by two valuation reserves: an allowance for doubtful receivables and an allowance for back-to-stock returns. | |||||||
Our allowance for doubtful receivables reflects our best estimate of probable losses, determined principally based on historical experience and specific allowances for known troubled accounts. Our policy is to charge off receivables when we have determined they will no longer be collectible. Charge offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous charge offs are netted against bad debt expense in the period recovered. At February 28, 2014 and 2013, the allowance for doubtful receivables was $2.13 and $1.76 million, respectively. | |||||||
Our allowance for back-to-stock returns reflects our best estimate of future customer returns, determined principally based on historical experience and specific allowances for known pending returns. At February 28, 2014 and 2013, the allowance for back-to-stock returns was $2.55 and $3.27 million, respectively. | |||||||
The Company has significant concentrations of credit risk with two major customers, representing approximately 17 and 10 percent of gross trade receivables, respectively. In addition, as of February 28, 2014 and 2013, approximately 44 and 42 percent, respectively, of the Company’s gross trade receivables were due from its five top customers. | |||||||
(f) Inventory, net and cost of goods sold | |||||||
Our inventory consists almost entirely of finished goods. We currently record inventory on our balance sheet at average cost, or net realizable value, if it is below our recorded cost. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. | |||||||
General and administrative expenses in inventory include all the expenses of operating the Company’s sourcing activities and expenses incurred for production monitoring, product design, engineering and packaging. We charged $36.23, $30.28 and $18.74 million of such general and administrative expenses to inventory during fiscal years 2014, 2013 and 2012, respectively. We estimate that $12.26 and $9.64 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2014 and 2013, respectively. | |||||||
The “Cost of goods sold” line item on the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. | |||||||
For fiscal years 2014, 2013 and 2012, cost of goods sold manufactured by vendors in the Far East comprised approximately 67, 66 and 78 percent, respectively, of consolidated cost of goods sold. Our mix of Far East manufacturing has declined since fiscal year 2012 as the Healthcare / Home Environment segment has become a larger part of our business. This segment sources a significant portion of its products in both the U.S. and Mexico. We have sourcing relationships with over 220 third-party manufacturers. During fiscal year 2014, we had no vendors who fulfilled 10 percent or more of our product requirements. Our top two manufacturers combined fulfilled approximately 14 percent of our product requirements. Over the same period, our top five suppliers fulfilled approximately 28 percent of our product requirements. | |||||||
(g) Property and equipment | |||||||
These assets are stated at cost, or in the case of assets recorded through acquisition, their fair values when they were acquired. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. | |||||||
(h) License agreements, trademarks, patents, and other intangible assets | |||||||
A significant portion of our consolidated sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represents amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. The Company capitalizes costs incurred to renew or extend the term of a license agreement and amortizes such costs on a straight-line basis over the | |||||||
remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our | |||||||
consolidated statements of income on the line entitled “Selling, general and administrative expense” (“SG&A”). Net | |||||||
sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 44, 44 and 45 percent of consolidated net sales revenue for fiscal years 2014, 2013 and 2012, respectively. | |||||||
We also sell products under trademarks that we own. Trademarks that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised cost of acquiring the trademark, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In most instances, we have determined that acquired trademarks have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through purchase from other entities, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs, primarily legal fees in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 14 years. | |||||||
Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired from other entities. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either through outside appraisal or by the term of any controlling agreements. See Notes (4) and (5) to these consolidated financial statements for additional information on our intangible assets. | |||||||
(i) Goodwill, intangible and other long-lived assets and impairments | |||||||
We complete our analysis of the carrying value of our goodwill and other intangible assets during the first quarter of each fiscal year, or more frequently whenever events or changes in circumstances indicate that their carrying value may not be recoverable. | |||||||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). We measure the amount of any goodwill impairment based upon the estimated fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets and estimates of the implied fair value of goodwill. An impairment charge is recognized to the extent the recorded goodwill exceeds the implied fair value of goodwill. | |||||||
We consider whether circumstances or conditions exist that suggest that the carrying value of our goodwill and other long-lived assets might be impaired. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If the analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. These steps entail significant amounts of judgment and subjectivity. Events and changes in circumstances that may indicate there is impairment include, but are not limited to, strategic decisions to exit a business or dispose of an asset made in response to changes in economic, political and competitive conditions, the impact of the economic environment on our customer base and on broad market conditions that drive valuation considerations by market participants, our internal expectations with regard to future revenue growth and the assumptions we make when performing our impairment reviews, a significant decrease in the market price of our assets, a significant adverse change in the extent or manner in which our assets are used, a significant adverse change in legal factors or the business climate that could affect our assets, an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset, and significant changes in the cash flows associated with an asset. We analyze these assets at the individual asset, reporting unit and Company levels. | |||||||
As further discussed in Note (4) to these consolidated financial statements, we recorded non-cash impairment charges totaling $12.05 million ($12.03 million after tax) for fiscal year 2014, in order to reflect the carrying value of certain trademarks in our Personal Care segment at estimates of their fair value. | |||||||
(j) Economic useful lives and amortization of intangible assets | |||||||
We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets’ economic useful lives are indefinite. If an intangible asset’s economic useful life is deemed indefinite, that asset is not amortized. When we acquire an intangible asset, we consider factors such as the asset’s history, our plans for that asset, and the market for products associated with the asset. We consider these same factors when reviewing the economic useful lives of our existing intangible assets as well. We review the economic useful lives of our intangible assets at least annually. | |||||||
Intangible assets consist primarily of goodwill, license agreements, trademarks, customer lists, distribution rights, patents, patent licenses, and non-compete agreements. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Effectively, none of our goodwill is deductible for tax purposes. We amortize certain intangible assets using the straight-line method over appropriate periods ranging from 2 to 30 years. We recorded intangible asset amortization totaling $21.61, $22.40 and $20.07 million during fiscal years 2014, 2013 and 2012, respectively. See Notes (4) and (5) to these consolidated financial statements for more information about our intangible assets. | |||||||
(k) Fair value classifications | |||||||
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. | |||||||
· 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. | |||||||
(l) Warranties | |||||||
Our products are under warranty against defects in material and workmanship for periods ranging from two to five years. We estimate our warranty accrual using historical trends and believe that these trends are the most reliable method by which we can estimate our warranty liability. The following table summarizes the activity in the Company’s accrual for the past two fiscal years: | |||||||
ACCRUAL FOR WARRANTY RETURNS | |||||||
(in thousands) | |||||||
Last Day of February, | |||||||
2014 | 2013 | ||||||
Beginning balance | $ | 23,150 | $ | 26,665 | |||
Additions to the accrual | 28,281 | 35,723 | |||||
Reductions of the accrual - payments and credits issued | -32,162 | -39,238 | |||||
Ending balance | $ | 19,269 | $ | 23,150 | |||
(m) Financial instruments | |||||||
The carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short maturity of these items. See Note (9) to these consolidated financial statements for our assessment of the fair value of our Senior Notes and other long-term debt. We use interest rate swaps (the “swaps”) to protect our funding costs against rising interest rates. The interest rate swaps allow us to raise long-term borrowings at floating rates and effectively swap them into fixed rates. Under our swaps, we agree with another party to exchange quarterly the difference between fixed-rate and floating-rate interest amounts calculated by reference to notional amounts that match the amount of our underlying debt. Under these swap agreements, we pay the fixed rates and receive the floating rates. The swaps settle quarterly and terminate upon maturity of the related debt. We hedge a portion of our foreign exchange rate risk by entering into forward contracts and foreign currency swaps to exchange foreign currencies for U.S. Dollars at specified rates. Our foreign exchange contracts, foreign currency swaps and interest rate swaps are considered highly effective and are accounted for as cash flow hedges. See Notes (11), (12) and (17) to these consolidated financial statements for more information on our hedging activities. | |||||||
(n) Income taxes and uncertain tax positions | |||||||
Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the book and tax bases of applicable assets and liabilities. Generally, deferred tax assets represent future income tax reductions while deferred tax liabilities represent income taxes that we expect to pay in the future. We measure deferred tax assets and liabilities using enacted tax rates for the years in which we expect temporary differences to be reversed or be settled. Changes in tax rates affect the carrying values of our deferred tax assets and liabilities, and the effects of any tax rate changes are recognized in the periods when they are enacted. The ultimate realization of our deferred tax assets depends upon generating sufficient future taxable income during the periods in which our temporary differences become deductible or before our net operating loss and tax credit carryforwards expire. | |||||||
We recognize the benefit of a tax position if that position will more likely than not be sustained in an audit, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax effect is recognized at the largest amount of the benefit that has greater than a fifty percent likelihood of being realized upon ultimate settlement. Liabilities created for unrecognized tax benefits are disclosed as a separate liability and not combined with deferred tax liabilities or assets. We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. Note (10) to these consolidated financial statements contains additional information regarding our income taxes. | |||||||
(o) Revenue recognition | |||||||
Sales are recognized when revenue is realized or realizable and has been earned. Sales and shipping terms vary among our customers, and as such, revenue is recognized when risk and title to the product transfer to the customer. Net sales revenue is comprised of gross revenues less estimates of expected returns, trade discounts and customer allowances, which include incentives such as cooperative advertising agreements and off-invoice markdowns. Such deductions are recorded and / or amortized during the period the related revenue is recognized. Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from net sales revenue reported in the consolidated financial statements. | |||||||
(p) Consideration granted to customers | |||||||
We offer our customers certain incentives in the form of cooperative advertising arrangements, volume rebates, product markdown allowances, trade discounts, cash discounts, slotting fees, and similar other arrangements. In instances where the customer provides us with proof of performance, reductions in amounts received from customers as a result of cooperative advertising programs are included in our consolidated statements of income in SG&A. Customer incentives included in SG&A were $16.45, $14.25 and $13.76 million for the fiscal years 2014, 2013 and 2012, respectively. | |||||||
Other reductions in amounts received from customers as a result of cooperative advertising programs are recorded as reductions of net sales revenue. Markdown allowances, slotting fees, trade discounts, cash discounts, and volume rebates are all recorded as reductions of net sales revenue. | |||||||
(q) Advertising | |||||||
Advertising costs, including cooperative advertising discussed in (p) above, are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs, including amounts paid to customers for cooperative media and print advertising, of $46.29, $51.08 and $42.87 million during fiscal years 2014, 2013 and 2012, respectively. | |||||||
(r) Shipping and handling revenues and expenses | |||||||
Shipping and handling expenses are included in our consolidated statements of income in SG&A. These expenses include distribution center costs, third-party logistics costs and outbound transportation costs. Our expenses for shipping and handling totaled $80.84, $83.81 and $74.42 million during fiscal years 2014, 2013 and 2012, respectively. We bill our customers for charges for shipping and handling on certain sales made directly to consumers and retail customers ordering relatively small dollar amounts of product. Such charges are recorded as a reduction of our shipping and handling expense and are not material in the aggregate. | |||||||
(s) Foreign currency transactions and related derivative financial instruments | |||||||
The U.S. Dollar is the functional currency for the Company and all its foreign subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income (loss). All our non-U.S. subsidiaries’ transactions involving other currencies have been re-measured in U.S. Dollars using average exchange rates for the months in which the transactions occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. We recorded net foreign exchange gains (losses), including the impact of currency hedges, of ($0.95), ($2.36) and ($0.67) million in SG&A and ($0.17), ($0.04) and $0.04 million in income tax expense during fiscal years 2014, 2013 and 2012, respectively. | |||||||
In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts to exchange foreign currencies for U.S. Dollars at specified rates. We account for these transactions as cash flow hedges, which requires these derivatives to be recorded on the balance sheet at their fair value and that changes in the fair value of the forward exchange contracts are recorded each period in our consolidated statements of income or other comprehensive income (loss), depending on the type of hedging instrument and the effectiveness of the hedges. All our current contracts are cash flow hedges and are adjusted to their fair market values at the end of each fiscal quarter. We evaluate all hedging transactions each quarter to determine that they are effective. Any ineffectiveness is recorded as part of SG&A in our consolidated statements of income. See Notes (11), (12) and (17) to these consolidated financial statements for a further discussion of our hedging activities. | |||||||
(t) Share-based compensation plans | |||||||
Stock options are recognized in the financial statements based on their fair values using an option pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. We estimate forfeitures for option awards at the dates of grant based on historical experience and revise as necessary if actual forfeitures significantly differ from these estimates. Share-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award. Restricted share-based compensation is recognized in the financial statements based on quoted fair values of the shares at the date of grant. See Note (15) to these consolidated financial statements for more information on our share-based compensation plans. | |||||||
(u) Interest income | |||||||
Interest income is included in “Nonoperating income (expense), net” on the consolidated statements of income. Interest income totaled $0.07, $0.07 and $0.30 million in fiscal years 2014, 2013 and 2012, respectively. Interest income is normally earned on cash invested in short-term accounts, cash equivalents, and temporary and long-term investments. | |||||||
(v) 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. In fiscal years 2014 and 2013, our securities that had dilutive effects consisted of outstanding options to purchase common stock and issued and contingently issuable unvested restricted share units and awards. In fiscal year 2012, our dilutive securities consisted entirely of outstanding options for common stock. See Notes (13) and (15) to these consolidated financial statements for more information regarding these restricted share units and awards. Options for common stock are excluded from the computation of diluted earnings per share if their effect is antidilutive. | |||||||
For fiscal years 2014, 2013 and 2012, the components of basic and diluted shares were as follows: | |||||||
WEIGHTED AVERAGE DILUTED SECURITIES | |||||||
(in thousands) | |||||||
Fiscal Years Ended the Last Day of February, | |||||||
2014 | 2013 | 2012 | |||||
Weighted average shares outstanding, basic | 32,007 | 31,754 | 31,340 | ||||
Incremental shares from share-based payment arrangements | 379 | 182 | 365 | ||||
Weighted average shares outstanding, diluted | 32,386 | 31,936 | 31,705 | ||||
Dilutive securities, as a result of in-the-money options | 488 | 278 | 522 | ||||
Dilutive securities, as a result of unvested or unsettled share awards due | 322 | 252 | - | ||||
Antidilutive securities, as a result of out-of-the-money options | 441 | 586 | 349 | ||||
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Feb. 28, 2014 | |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 2 – NEW ACCOUNTING PRONOUNCEMENTS | |
Beginning in June 2011, the FASB issued and subsequently amended certain guidance to increase the prominence of items reported in other comprehensive income. These amendments eliminated the presentation of components of other comprehensive income as part of the statement of changes in stockholders’ equity. Instead, the amended guidance requires the presentation of either a continuous statement of net income and other comprehensive income or two separate but consecutive statements. In addition, the new guidance required numerous, yet less significant changes in the details of the presentation of additional information regarding other comprehensive income on the face of the new statements and in the accompanying footnotes. As permitted, we elected early adoption of these standards for fiscal year 2012 and applied subsequent amendments to all affected disclosures accompanying these financial statements. While these amended standards affect the presentation of other comprehensive income and certain detailed disclosures, they did not impact our financial position or results of operations. | |
In February 2013, the FASB issued additional guidance on reporting amounts reclassified out of accumulated other comprehensive income (“AOCI”). We adopted the guidance during the first quarter of fiscal 2014. Under the new guidance, we are required to present additional details about our reclassifications in a tabular disclosure in the footnotes to our consolidated financial statements. Principally, the disclosures will indicate by key component of AOCI the nature of the reclassifications and the income statement line items affected. While the new guidance has resulted in additional detailed disclosures, it has not impacted our financial position or results of operations. Note (17) to these consolidated financial statements presents new disclosures that have been prepared in accordance with the new guidance. | |
Unless otherwise discussed above, the Company’s management believes that the impact of other recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
PROPERTY AND EQUIPMENT | ' | |||||
PROPERTY AND EQUIPMENT | ' | |||||
NOTE 3 – PROPERTY AND EQUIPMENT | ||||||
A summary of property and equipment is as follows: | ||||||
PROPERTY AND EQUIPMENT | ||||||
(in thousands) | ||||||
Estimated | ||||||
Useful Lives | Last Day of February, | |||||
(Years) | 2014 | 2013 | ||||
Land | - | $ | 12,800 | $ | 12,800 | |
Building and improvements | Mar-40 | 98,660 | 66,994 | |||
Computer, furniture and other equipment | 15-Mar | 60,291 | 58,284 | |||
Tools, molds and other production equipment | 10-Jan | 23,017 | 29,264 | |||
Construction in progress | - | 5,865 | 9,149 | |||
Property and equipment, gross | 200,633 | 176,491 | ||||
Less accumulated depreciation | -71,516 | -74,775 | ||||
Property and equipment, net | $ | 129,117 | $ | 101,716 | ||
We recorded $12.23, $12.03 and $9.14 million of depreciation expense for fiscal years 2014, 2013 and 2012, respectively. | ||||||
Capital expenditures for property and equipment totaled $40.12, $13.61 and $15.38 million in fiscal years 2014, 2013 and | ||||||
2012, respectively. | ||||||
We lease certain facilities, equipment and vehicles under operating leases, which expire at various dates through fiscal year 2019. Certain of the leases contain escalation clauses and renewal or purchase options. Rent expense related to our operating leases was $5.68, $6.39 and $5.59 million for fiscal years 2014, 2013 and 2012, respectively. During the third quarter of fiscal year 2014, in connection with our move to a new distribution facility discussed below, we terminated a previously leased distribution facility in Memphis, Tennessee as of October 31, 2013. | ||||||
During fiscal year 2014, the Company completed construction of a new 1.3 million square foot distribution facility on approximately 84 acres of land in Olive Branch, Mississippi. Capital expenditures for fiscal years 2014 and 2013 include $34.03 million and $4.03 million, respectively, in connection with this project. The new facility will consolidate the distribution operations of our U.S. based Personal Care and Healthcare / Home Environment segment’s appliance businesses. We commenced shipments out of the new facility during the first week of September 2013. We are in the process of completing the transition of our domestic Personal Care segment appliance distribution operation to the new facility, which we expect to complete in the first quarter of fiscal year 2015. Remaining capital expenditure commitments in connection with the Personal Care segment appliance transition are not expected to be material. See Note (9) to these consolidated financial statements for related information regarding the debt incurred to fund the construction of the new distribution facility. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||||||||||||
NOTE 4 – GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
We do not record amortization expense for goodwill or other intangible assets that have indefinite useful lives. Amortization expense is recorded for intangible assets with definite useful lives. We perform an annual impairment review of goodwill and other intangible assets during the first quarter of each fiscal year. We also perform interim testing, if necessary, as required by GAAP. We write down any asset deemed to be impaired to its fair value. | |||||||||||||||||||||||||||||||||||
The Company’s traditional impairment test methodology uses primarily estimated future discounted cash flow models (“DCF Models”). The DCF Models use a number of assumptions including expected future cash flows from the assets, volatility, risk free rate, and the expected life of the assets, the determination of which require significant judgments from management. In determining the assumptions to be used, the Company considers the existing rates on Treasury Bills, yield spreads on assets with comparable expected lives, historical volatility of the Company’s common stock and that of comparable companies and general economic and industry trends, among other considerations. When stock market or other conditions warrant, the Company expands its traditional impairment test methodology to give weight to other methods that provide additional observable market information in order to better reflect the current risk level being incorporated into market prices and in order to corroborate the fair values of each of the Company’s reporting units. Management will place increased reliance on these additional methods in conjunction with its DCF Models in the event that the total market capitalization of its stock drops below its consolidated stockholders’ equity balance for a sustained period of time. | |||||||||||||||||||||||||||||||||||
Considerable management judgment is necessary in reaching a conclusion regarding the reasonableness of fair value estimates, evaluating the most likely impact of a range of possible external conditions, considering the resulting operating changes and their impact on estimated future cash flows, determining the appropriate discount factors to use, and selecting and weighting appropriate comparable market level inputs. | |||||||||||||||||||||||||||||||||||
Annual Impairment Testing in the First Quarter of Fiscal Year 2014 - The Company performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2014. As a result of our testing of indefinite-lived trademarks and licenses, we recorded a non-cash asset impairment charge of $12.05 million ($12.03 million after tax). The charge was related to certain trademarks in our Personal Care segment, which were written down to their estimated fair value, determined on the basis of future discounted cash flows using the relief from royalty valuation method. | |||||||||||||||||||||||||||||||||||
Annual Impairment Testing in the First Quarter of Fiscal Years 2013 and 2012 - The Company performed its annual evaluations of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal years 2013 and 2012. As a result of its testing, the Company concluded no impairment charges were required in either fiscal year as the estimated fair value of the indefinite-lived trademarks and licenses, reporting unit net assets and the Company’s estimated enterprise value exceeded their respective carrying values as of the dates of each evaluation. | |||||||||||||||||||||||||||||||||||
The following tables summarize by operating segment the changes in our goodwill and intangible assets for fiscal years | |||||||||||||||||||||||||||||||||||
2014 and 2013: | |||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balances at | Balances at | ||||||||||||||||||||||||||||||||||
Weighted | February 28, 2013 | Year Ended February 28, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Average | Gross | Cumulative | Acquisition | Gross | Cumulative | ||||||||||||||||||||||||||||||
Life | Carrying | Goodwill | and Retirement | Carrying | Goodwill | Accumulated | Net Book | ||||||||||||||||||||||||||||
Description | (Years) | Amount | Impairments | Additions | Impairments | Adjustments | Amount | Impairments | Amortization | Value | |||||||||||||||||||||||||
Housewares: | |||||||||||||||||||||||||||||||||||
Goodwill | $ | 166,132 | $ | - | $ | - | $ | - | $ | - | $ | 166,132 | $ | - | $ | - | $ | 166,132 | |||||||||||||||||
Trademarks - indefinite | 75,200 | - | - | - | - | 75,200 | - | - | 75,200 | ||||||||||||||||||||||||||
Other intangibles - finite | 2.7 | 15,609 | - | 339 | - | -255 | 15,693 | - | -11,149 | 4,544 | |||||||||||||||||||||||||
Total Housewares | 256,941 | - | 339 | - | -255 | 257,025 | - | -11,149 | 245,876 | ||||||||||||||||||||||||||
Healthcare / Home Environment: | |||||||||||||||||||||||||||||||||||
Goodwill | 251,758 | - | - | - | - | 251,758 | - | - | 251,758 | ||||||||||||||||||||||||||
Trademarks - indefinite | 54,000 | - | - | - | - | 54,000 | - | - | 54,000 | ||||||||||||||||||||||||||
Licenses - finite | 3 | 15,300 | - | - | - | - | 15,300 | - | -6,416 | 8,884 | |||||||||||||||||||||||||
Other Intangibles - finite | 7.6 | 114,490 | - | - | - | - | 114,490 | - | -34,606 | 79,884 | |||||||||||||||||||||||||
Total Healthcare / Home Environment | 435,548 | - | - | - | - | 435,548 | - | -41,022 | 394,526 | ||||||||||||||||||||||||||
Personal Care: | |||||||||||||||||||||||||||||||||||
Goodwill | 81,841 | -46,490 | - | - | - | 81,841 | -46,490 | - | 35,351 | ||||||||||||||||||||||||||
Trademarks - indefinite | 75,803 | - | - | -12,049 | - | 63,754 | - | - | 63,754 | ||||||||||||||||||||||||||
Trademarks - finite | 14.6 | 150 | - | - | - | - | 150 | - | -77 | 73 | |||||||||||||||||||||||||
Licenses - indefinite | 10,300 | - | - | - | - | 10,300 | - | - | 10,300 | ||||||||||||||||||||||||||
Licenses - finite | 6.5 | 18,683 | - | - | - | - | 18,683 | - | -15,887 | 2,796 | |||||||||||||||||||||||||
Other intangibles - finite | 4 | 49,437 | - | - | - | - | 49,437 | - | -26,563 | 22,874 | |||||||||||||||||||||||||
Total Personal Care | 236,214 | -46,490 | - | -12,049 | - | 224,165 | -46,490 | -42,527 | 135,148 | ||||||||||||||||||||||||||
Total | $ | 928,703 | $ | -46,490 | $ | 339 | $ | -12,049 | $ | -255 | $ | 916,738 | $ | -46,490 | $ | -94,698 | $ | 775,550 | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balances at | Balances at | ||||||||||||||||||||||||||||||||||
Weighted | February 29, 2012 | Year Ended February 28, 2013 | February 28, 2013 | ||||||||||||||||||||||||||||||||
Average | Gross | Cumulative | Acquisition | Gross | Cumulative | ||||||||||||||||||||||||||||||
Life | Carrying | Goodwill | and Retirement | Carrying | Goodwill | Accumulated | Net Book | ||||||||||||||||||||||||||||
Description / Life | (Years) | Amount | Impairments | Additions | Impairments | Adjustments | Amount | Impairments | Amortization | Value | |||||||||||||||||||||||||
Housewares: | |||||||||||||||||||||||||||||||||||
Goodwill | $ | 166,132 | $ | - | $ | - | $ | - | $ | - | $ | 166,132 | $ | - | $ | - | $ | 166,132 | |||||||||||||||||
Trademarks - indefinite | 75,200 | - | - | - | - | 75,200 | - | - | 75,200 | ||||||||||||||||||||||||||
Other intangibles - finite | 3.7 | 15,774 | - | 278 | - | -443 | 15,609 | - | -10,070 | 5,539 | |||||||||||||||||||||||||
Total Housewares | 257,106 | - | 278 | - | -443 | 256,941 | - | -10,070 | 246,871 | ||||||||||||||||||||||||||
Healthcare / Home Environment: | |||||||||||||||||||||||||||||||||||
Goodwill | 250,867 | - | - | - | 891 | 251,758 | - | - | 251,758 | ||||||||||||||||||||||||||
Trademarks - indefinite | 54,000 | - | - | - | - | 54,000 | - | - | 54,000 | ||||||||||||||||||||||||||
Licenses - finite | 4 | 14,900 | - | - | - | 400 | 15,300 | - | -3,455 | 11,845 | |||||||||||||||||||||||||
Other Intangibles - finite | 8.6 | 114,790 | - | - | - | -300 | 114,490 | - | -23,220 | 91,270 | |||||||||||||||||||||||||
Total Healthcare / Home Environment | 434,557 | - | - | - | 991 | 435,548 | - | -26,675 | 408,873 | ||||||||||||||||||||||||||
Personal Care: | |||||||||||||||||||||||||||||||||||
Goodwill | 81,841 | -46,490 | - | - | - | 81,841 | -46,490 | - | 35,351 | ||||||||||||||||||||||||||
Trademarks - indefinite | 75,303 | - | 500 | - | - | 75,803 | - | - | 75,803 | ||||||||||||||||||||||||||
Trademarks - finite | 15.6 | 150 | - | - | - | - | 150 | - | -72 | 78 | |||||||||||||||||||||||||
Licenses - indefinite | 10,300 | - | - | - | - | 10,300 | - | - | 10,300 | ||||||||||||||||||||||||||
Licenses - finite | 7.2 | 19,564 | - | - | - | -881 | 18,683 | - | -15,570 | 3,113 | |||||||||||||||||||||||||
Other intangibles - finite | 5 | 49,437 | - | - | - | - | 49,437 | - | -20,957 | 28,480 | |||||||||||||||||||||||||
Total Personal Care | 236,595 | -46,490 | 500 | - | -881 | 236,214 | -46,490 | -36,599 | 153,125 | ||||||||||||||||||||||||||
Total | $ | 928,258 | $ | -46,490 | $ | 778 | $ | - | $ | -333 | $ | 928,703 | $ | -46,490 | $ | -73,344 | $ | 808,869 | |||||||||||||||||
The following table summarizes the amortization expense attributable to intangible assets for the fiscal years 2014, 2013 | |||||||||||||||||||||||||||||||||||
and 2012, as well as estimated amortization expense for the fiscal years 2015 through 2019: | |||||||||||||||||||||||||||||||||||
AMORTIZATION OF INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Aggregate Amortization Expense | |||||||||||||||||||||||||||||||||||
For the fiscal years ended | |||||||||||||||||||||||||||||||||||
February 2014 | $ | 21,612 | |||||||||||||||||||||||||||||||||
February 2013 | $ | 22,400 | |||||||||||||||||||||||||||||||||
February 2012 | $ | 20,069 | |||||||||||||||||||||||||||||||||
Estimated Amortization Expense | |||||||||||||||||||||||||||||||||||
For the fiscal years ended | |||||||||||||||||||||||||||||||||||
February 2015 | $ | 21,021 | |||||||||||||||||||||||||||||||||
February 2016 | $ | 20,838 | |||||||||||||||||||||||||||||||||
February 2017 | $ | 20,523 | |||||||||||||||||||||||||||||||||
February 2018 | $ | 16,704 | |||||||||||||||||||||||||||||||||
February 2019 | $ | 12,000 | |||||||||||||||||||||||||||||||||
Many of the license agreements under which we sell or intend to sell products with trademarks owned by other entities require that we pay minimum royalties. Some license agreements also require that we make minimum levels of advertising expenditures. For fiscal year 2015, estimated minimum royalties due and minimum advertising expenditures under these license agreements total $12.69 and $5.06 million, respectively. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
ACQUISITIONS | ' | |||||
ACQUISITIONS | ' | |||||
NOTE 5 – ACQUISITIONS | ||||||
PUR Acquisition - On December 30, 2011, we completed an asset and stock purchase transaction in which we acquired 100 percent of the stock of PUR Water Purification Products, Inc., and certain other assets and liabilities from The Procter & Gamble Company and certain of its affiliates (“P&G”) for a net cash purchase price of $160 million, subject to future adjustments. The acquisition was funded entirely with short-term debt. Significant assets acquired include manufacturing equipment, trademarks, customer lists, distribution rights, patents, and the goodwill of the PUR water filtration business (“PUR”). PUR’s product line includes faucet mount water filtration systems and filters, pitcher systems and filters, and refrigerator filters. We are operating the PUR business in our Healthcare / Home Environment segment and market its products primarily into retail trade channels in the U.S. Goodwill from the acquisition consists largely of the distribution network, marketing synergies and economies of scale that are anticipated from the addition of the new product line. | ||||||
In connection with this acquisition, we entered into transitional services and supply agreements whereby P&G or one or more of its affiliates will provide certain short-term services for, and supply certain products to the Company in exchange for specified fees. During fiscal year 2013, we finished using certain of these services and acquired the remaining PUR inventory on-hand from P&G. The remaining transitional agreements were supply agreements that ended during fiscal year 2014. | ||||||
We accounted for the acquisition as the purchase of a business and recorded the excess purchase price as goodwill. None of the goodwill recognized is deductible for income tax purposes. As of December 31, 2012, we completed our analysis of the economic lives of all the assets acquired and determined the appropriate allocation of the initial purchase price. We assigned the acquired trademarks indefinite economic lives and are amortizing the customer list, patents, trademarks and technology license agreements, and covenant not to compete over expected weighted average lives of approximately 15.0, 12.4, 5.2, and 2.0 years, respectively. For the customer list, we used historical attrition rates to assign an expected life. For patent rights, we used the underlying non-renewable term of a royalty-free license we acquired for the use of patented designs in certain PUR products. Since the trademarks acquired are considered to have indefinite lives, they are not subject to amortization. | ||||||
The following schedule presents the acquisition date fair value of the net assets of PUR: | ||||||
PUR – NET ASSETS ACQUIRED ON DECEMBER 30, 2011 | ||||||
(in thousands) | ||||||
Supplier tooling advances | $ | 1,432 | ||||
Tools, dies, molds and other production equipment | 12,495 | |||||
Goodwill | 86,162 | |||||
Trademarks | 54,000 | |||||
Trademark and technology licensing agreements | 14,900 | |||||
Patents | 4,140 | |||||
Customer list | 18,600 | |||||
Covenant not to compete | 200 | |||||
Total assets acquired | 191,929 | |||||
Less: Deferred tax liabilities recorded at acquisition | (31,929 | ) | ||||
Net assets acquired | $ | 160,000 | ||||
The fair values of the PUR assets acquired were estimated by applying income and market approaches. The fair value measurement of the intangible assets are based on significant inputs that are not observable in the market and, therefore, represent Level 3 measurements. Key assumptions included various discount rates based upon a 15.20 percent weighted average cost of capital, a royalty rate of 7 percent used in the determination of the trademark fair value, royalty rates of 0.50 to 1.00 percent used in the determination of patent estate values, and customer attrition rates of 5 percent per year used in the determination of customer list values. |
SHORTTERM_DEBT
SHORT-TERM DEBT | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
SHORT-TERM DEBT | ' | ||||||||||
SHORT-TERM DEBT | ' | ||||||||||
NOTE 6 – SHORT-TERM DEBT | |||||||||||
The Company has a entered into a Credit Agreement (the “Credit Agreement”, as amended) dated December 30, 2010 with Bank of America, N.A., and the other lenders which was amended on February 7, 2014 (“Credit Agreement Amendment”). The Credit Agreement Amendment, among other things, increased the unsecured revolving commitment of the Credit Agreement from $250 million to $375 million, subject to the certain terms and limitations described below. The Credit Agreement Amendment also eliminated the maintenance of a minimum consolidated net worth financial covenant. Finally, the Credit Agreement Amendment modified the limitation on the Company’s ability to declare or pay cash dividends to shareholders or make stock repurchases. Specifically, the Company may declare or pay cash dividends to shareholders or make stock repurchases if, after giving effect to the dividends or share repurchases, the Leverage Ratio (as defined in the Credit Agreement) is not greater than (i) 2.75 to 1.00 prior to the date that the compliance certificate for the fiscal year ending February 28, 2015 is required to have been delivered under the Credit Agreement, and (ii) 2.50 to 1.00 thereafter. The Credit Agreement Amendment does not modify the terms of the Credit Agreement under which repayment may be accelerated or increased. | |||||||||||
The commitment under the Credit Agreement terminates on December 30, 2015. Borrowings accrue interest under one of two alternative methods as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time. We also incur loan commitment fees and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. The Credit Agreement and our other debt are unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. As of February 28, 2014, there was no revolving loan principal balance outstanding and there were $0.28 million of open letters of credit outstanding against the Credit Agreement. As of February 28, 2014, the amount available for borrowings under the Credit Agreement was $374.72 million. | |||||||||||
The Credit Agreement and our other debt agreements require the maintenance of maximum debt leverage and minimum | |||||||||||
interest coverage ratios, and contain other customary covenants, which restrict us from incurring liens on any of our | |||||||||||
properties, except under certain conditions, and place certain limits on the amount of dividends we may pay or shares of | |||||||||||
common stock we may repurchase, among other things. | |||||||||||
The following table contains information about interest rates on short-term debt and weighted average short-term debt | |||||||||||
outstanding for the periods covered by our consolidated statements of income: | |||||||||||
INTEREST RATES ON SHORT-TERM DEBT | |||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Average short-term debt (1) | $ | 29,680 | $ | 143,100 | $ | 94,060 | |||||
Average interest rate on short-term debt during each year (2) | 1.30% | 1.70% | 2.20% | ||||||||
Interest rate range during each year | 1.2%- 3.6% | 1.6% - 4.0% | 2.0% - 4.0% | ||||||||
Weighted average interest rate on short-term debt outstanding at year end | 0.00% | 1.60% | 2.10% | ||||||||
(1) Average short-term debt is computed as the average of the current and four prior quarters ending balances of our revolving credit facility. | |||||||||||
(2) The average interest rate on short-term debt during each year is computed by dividing the total interest expense associated with our revolving credit facility for a fiscal year by the average short-term debt outstanding for the same fiscal year. | |||||||||||
See Note (21) to these consolidated financial statements for information regarding the borrowing of a principal amount of $200 million under our Credit Agreement on March 14, 2014 in connection with the Company’s modified “Dutch auction” tender offer. |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||||
NOTE 7 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
A summary of accrued expenses and other current liabilities is as follows: | ||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
(in thousands) | ||||||||
February 28, | February 28, | |||||||
2014 | 2013 | |||||||
Accrued compensation, benefits and payroll taxes | $ | 69,877 | $ | 34,265 | ||||
Accrued sales returns, discounts and allowances | 25,297 | 22,561 | ||||||
Accrued warranty returns | 19,269 | 23,150 | ||||||
Accrued advertising | 16,414 | 14,554 | ||||||
Accrued product liability, legal and professional fees | 5,705 | 9,061 | ||||||
Accrued royalties | 5,712 | 7,731 | ||||||
Accrued property, sales and other taxes | 6,835 | 5,729 | ||||||
Derivative liabilities, current | 1,596 | 3,044 | ||||||
Liability for uncertain tax positions | 453 | - | ||||||
Other | 5,530 | 13,968 | ||||||
Total accrued expenses and other current liabilities | $ | 156,688 | $ | 134,063 | ||||
OTHER_LIABILITIES_NONCURRENT
OTHER LIABILITIES, NONCURRENT | 12 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
OTHER LIABILITIES, NONCURRENT | ' | |||||||||||||
OTHER LIABILITIES, NONCURRENT | ' | |||||||||||||
NOTE 8 – OTHER LIABILITIES, NONCURRENT | ||||||||||||||
A summary of other noncurrent liabilities is as follows: | ||||||||||||||
OTHER LIABILITIES, NONCURRENT | ||||||||||||||
(in thousands) | ||||||||||||||
February 28, | February 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Deferred compensation liability | $ | 7,257 | $6,443 | |||||||||||
Liability for uncertain tax positions | 13,471 | 15,759 | ||||||||||||
Derivative liabilities | - | 1,780 | ||||||||||||
Other liabilites | 1,038 | 1,760 | ||||||||||||
Total other liabilities, noncurrent | $ | 21,766 | $25,742 | |||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | ||||||||||||||
Feb. 28, 2014 | |||||||||||||||
LONG-TERM DEBT | ' | ||||||||||||||
LONG-TERM DEBT | ' | ||||||||||||||
NOTE 9 – LONG-TERM DEBT | |||||||||||||||
A summary of long-term debt is as follows: | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Original | |||||||||||||||
Date | Interest | February 28, | February 28, | ||||||||||||
Borrowed | Rates | Matures | 2014 | 2013 | |||||||||||
$37.61 million unsecured loan with a state industrial development corporation, interim draws, interest is set and payable quarterly at the Base Rate, as defined below, plus a margin of up to 1.125%, or applicable LIBOR plus a margin of up to 2.125%, as determined by the interest rate elected. Loan subject to holder’s call on or after March 1, 2018. Loan can be prepaid without penalty any time after March 20, 2014. | 13-Mar | 1.16% | 23-Mar | $ | 37,607 | $ | - | ||||||||
$75 million unsecured floating interest rate 10 year Senior Notes. | 4-Jun | 6.01% | 14-Jun | 75,000 | 75,000 | ||||||||||
Interest set and payable quarterly at three month LIBOR plus 90 basis points. Principal is due in June 2014. Notes can be prepaid without penalty. (1) | |||||||||||||||
$100 million unsecured Senior Notes payable at a fixed interest rate of 3.90%. Interest payable semi-annually. Annual principal payments of $20 million begin in January 2014. Prepayment of notes are subject to a “make whole” premium. | 11-Jan | 3.90% | 18-Jan | 80,000 | 100,000 | ||||||||||
Total long-term debt | 192,607 | 175,000 | |||||||||||||
Less current maturities of long-term debt | (96,900 | ) | (20,000 | ) | |||||||||||
Long-term debt, excluding current maturities | $ | 95,707 | $ | 155,000 | |||||||||||
(1) Floating interest rates have been hedged with an interest rate swap to effectively fix interest rates. Additional | |||||||||||||||
information regarding the swap is provided in Note (12) to these consolidated financial statements. | |||||||||||||||
In March 2013, Kaz USA, Inc. (“Kaz USA”), a wholly owned subsidiary of the Company, entered into a Loan | |||||||||||||||
Agreement (the “MBFC Loan Agreement”), dated as of March 1, 2013, with the Mississippi Business Finance Corporation (the “MBFC”) in connection with the issuance by the MBFC of up to $38 million of taxable industrial development revenue bonds (the “Bonds”). The Bonds are issued under a Trust Indenture (the “IRB Indenture”), between the MBFC and US Bank N.A., as trustee. Interim draws under the MBFC Loan Agreement, accumulating to $37.61 million, were made through February 28, 2014. There will not be any additional draws under the MBFC Loan Agreement. The Bonds and the related loan to Kaz USA (the “MBFC Loan”) will bear interest at a variable rate as elected by Kaz USA equal to either (a) a “Base Rate” plus a margin of 0.00 to 1.125 percent, depending upon the leverage ratio at the time of the borrowing or (b) the respective one-, two-, three-, or six-month LIBOR rate plus 1.00 to 2.125 percent, depending upon the leverage ratio at the time of the borrowing. The Base Rate is equal to the highest of (i) the federal funds rate for the day, plus 0.50 percent, (ii) the prime rate of Bank of America, N.A., or (iii) the respective one-, two-, three-, or six-month LIBOR rate plus 1.00 percent. The proceeds of the MBFC Loan have been used by Kaz USA to finance the purchase of land, construction of a distribution facility and the acquisition and installation of equipment, machinery and related assets located in Olive Branch, Mississippi. | |||||||||||||||
The outstanding principal of the MBFC Loan will be payable as follows: $1.90 million on March 1 in each of 2014, 2015, 2018, 2019, 2020, 2021 and 2022; $3.80 million on March 1, 2016; $5.70 million on March 1, 2017; and $14.81 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. The MBFC Loan may be prepaid in whole or part without penalty any time after March 20, 2014. Additionally, Bank of America, N.A., the purchaser of the Bonds, may elect for the MBFC Loan to be prepaid in full on March 1, 2018. Following March 1, 2018, Bank of America, N.A. may elect for the MBFC Loan to be prepaid on March 1 of each subsequent year prior to maturity upon at least 90 days notice. In lieu of any prepayment, the Bonds may be purchased by a transferee, as permitted under the IRB Indenture. | |||||||||||||||
On February 7, 2014, the Company and certain of its subsidiaries entered into an amendment to the guaranty agreement in favor of Bank of America, N.A. relating to the MBFC Loan. The Company’s financial covenants under the guaranty agreement are consistent with the covenants contained in the Credit Agreement. Accordingly, the amendment to the guaranty agreement eliminated the maintenance of a minimum consolidated net worth financial covenant and modified the limitation on the Company’s ability to declare or pay cash dividends to shareholders or make stock repurchases in the same manner as the Credit Agreement Amendment. The amendment does not modify the terms of the MBFC Loan Agreement or Indenture under which repayment may be accelerated or increased. See Note (6) to these consolidated financial statements for further information regarding the Credit Agreement Amendment. | |||||||||||||||
The fair market value of the fixed rate debt at February 28, 2014 computed using a discounted cash flow analysis was $83.95 million compared to the $80 million book value. All other long-term debt has floating interest rates, and its book value approximates its fair value at February 28, 2014. | |||||||||||||||
All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain financial covenants, including maximum leverage ratios, minimum interest coverage ratios and minimum consolidated net worth levels (as each of these terms is defined in the various agreements). Our debt agreements also contain other customary covenants, including, among other things, covenants restricting or limiting the Company, except under certain conditions set forth therein, from (1) incurring debt, (2) incurring liens on its 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. | |||||||||||||||
As of February 28, 2014, our debt agreements effectively limited our ability to incur more than $391.80 million of additional debt from all sources, including our Credit Agreement. We were in compliance with the terms of these agreements as of February 28, 2014. | |||||||||||||||
The following table contains a summary of the components of our interest expense for the periods covered by our | |||||||||||||||
consolidated statements of income: | |||||||||||||||
INTEREST EXPENSE | |||||||||||||||
(in thousands) | |||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Interest and commitment fees | $ | 5,609 | $ | 8,858 | $ | 7,670 | |||||||||
Deferred finance costs | 912 | 903 | 823 | ||||||||||||
Interest rate swap settlements, net | 3,672 | 3,584 | 4,424 | ||||||||||||
Total interest expense | $ | 10,193 | $ | 13,345 | $ | 12,917 | |||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 10 – INCOME TAXES | |||||||||||
Our components of income before income tax expense are as follows: | |||||||||||
COMPONENTS OF INCOME BEFORE TAXES | |||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | $ | 38,147 | $ | 50,834 | $ | 26,445 | |||||
Non-U.S. | 68,987 | 84,680 | 99,647 | ||||||||
Total | $ | 107,134 | $ | 135,514 | $ | 126,092 | |||||
Our components of income tax expense (benefit) are as follows: | |||||||||||
COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | |||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | |||||||||||
Current | $ | 24,736 | $ | 26,369 | $ | 5,342 | |||||
Deferred | -9,021 | -8,776 | 4,630 | ||||||||
15,715 | 17,593 | 9,972 | |||||||||
Non-U.S. | |||||||||||
Current | 6,254 | 5,464 | 5,204 | ||||||||
Deferred | -1,083 | -3,209 | 542 | ||||||||
5,171 | 2,255 | 5,746 | |||||||||
Total | $ | 20,886 | $ | 19,848 | $ | 15,718 | |||||
Our total income tax expense differs from the amounts computed by applying the statutory tax rate to income before income taxes. A summary of these differences are as follows: | |||||||||||
INCOME TAX RATE RECONCILIATION | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Expected effective income tax rate at the U.S. statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
Impact of U.S. state income taxes and other | 2.20% | -0.20% | 1.50% | ||||||||
Decrease in income taxes resulting from income from non-U.S. operations | |||||||||||
subject to varying income tax rates | -9.30% | -11.40% | -13.60% | ||||||||
Effect of zero tax rate in Macau | -12.30% | -8.80% | -9.50% | ||||||||
Decrease in income taxes resulting from tax audit settlements | 0.00% | 0.00% | -0.90% | ||||||||
Effect of asset impairment charges, most of which are non-deductible | 3.90% | 0.00% | 0.00% | ||||||||
Effective income tax rate | 19.50% | 14.60% | 12.50% | ||||||||
Each year there are significant transactions or events that are incidental to our core businesses and that by a combination of their nature and jurisdiction, can have a disproportionate impact on our reported effective tax rates. Without these transactions or events, the trend in our effective tax rates would follow a more normalized pattern. The acquisitions of Kaz and PUR have increased the proportion of U.S. taxable income relative to total taxable income, which has resulted in higher effective income tax rates. | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of | |||||||||||
the last day of February 2014 and 2013 are as follows: | |||||||||||
COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES | |||||||||||
(in thousands) | |||||||||||
Last Day of February, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets, gross: | |||||||||||
Operating loss carryforwards | $ | 17,455 | $ | 21,385 | |||||||
Accounts receivable | 4,068 | 5,885 | |||||||||
Inventories | 8,528 | 8,648 | |||||||||
Accrued expenses and other | 20,307 | 10,600 | |||||||||
Foreign currency contracts, interest rate swaps and deferred exchange gains | 528 | 930 | |||||||||
Total gross deferred tax assets | 50,886 | 47,448 | |||||||||
Valuation allowance | -15,602 | -19,040 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and amortization | -60,670 | -62,807 | |||||||||
Total deferred tax assets (liabilities), net | $ | -25,386 | $ | -34,399 | |||||||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, expected future taxable income and tax planning strategies in making this assessment. In fiscal year 2014, the net decrease in our valuation allowance was $3.44 million, principally due to the utilization and expiration of operating loss carryforwards previously reserved with a valuation allowance and changes in estimates regarding the value of operating loss carryforwards to be used in the future. | |||||||||||
The schedule below shows the composition of our operating loss carryforwards and the approximate future taxable income we will need to generate in order to utilize all carryforwards prior to their expiration. | |||||||||||
SUMMARY OF OPERATING LOSS CARRYFORWARDS | |||||||||||
(in thousands) | |||||||||||
At February 28, 2014 | |||||||||||
Tax Year | Gross | Required | |||||||||
Expiration | Deferred Tax | Future Taxable | |||||||||
Date Range | Assets | Income | |||||||||
U.S. operating loss carryforwards | 2016 - 2032 | $ | 2,253 | $ | 8,991 | ||||||
Non-U.S. operating loss carryforwards with definite | |||||||||||
carryover periods | 2014 - 2029 | 4,063 | 32,368 | ||||||||
Non-U.S. operating loss carryforwards with indefinite | |||||||||||
carryover periods | Indefinite | 11,139 | 37,116 | ||||||||
Subtotals | 17,455 | 78,475 | |||||||||
Less portion of valuation allowance established for | |||||||||||
operating loss carryforwards | (12,695 | ) | -47,633 | ||||||||
Total | $ | 4,760 | $ | 30,842 | |||||||
As of February 28, 2014, subject to the valuation allowances provided, we believe it is more likely than not that we will realize the net benefits of these deferred tax assets. Any future amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during any carryforward periods are reduced. | |||||||||||
United States Income Taxes - In fiscal year 2012, the Company and the IRS reached an agreement with respect to the U.S. federal income tax returns of Kaz, Inc. and its subsidiaries for tax years 2004 and 2006 resulting in a decrease to fiscal year 2012 tax expense of $1.13 million. The U.S. federal income tax returns of Kaz, Inc. and its U.S. subsidiaries for tax years 2003, 2007 and 2008 continue to be under examination as of February 28, 2014. | |||||||||||
During fiscal year 2012, the Company received notices of proposed adjustments related to Kaz’s 2007 and 2008 tax years. The Company is protesting the adjustments and does not expect them to have a material impact on our results of operations or financial position. | |||||||||||
During fiscal year 2014, the IRS began an audit of the U.S. Federal income tax returns of Helen of Troy Texas Corporation and its subsidiaries for the 2011 and 2012 tax years. As of February 28, 2014, no adjustments have been proposed. | |||||||||||
Hungary Income Taxes - The Company is currently under audit in Hungary with respect to the 2005, 2006 and 2009 tax years and has received notices of proposed adjustments for each year. We are currently challenging these adjustments through judicial proceedings and have recorded an unrecognized tax benefit of $2.99 million. | |||||||||||
Income Tax Provisions - We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments must be used in the calculation of certain tax assets and liabilities because of differences in the timing of recognition of revenue and expense for tax and financial statement purposes. We must assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. As changes occur in our assessments regarding our ability to recover our deferred tax assets, our tax provision is increased in any period in which we determine that the recovery is not probable. | |||||||||||
Uncertainty in Income Taxes - The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. When there is uncertainty in a tax position taken or expected to be taken in a tax return, a liability is recorded for the amount of the position that could be challenged and overturned through any combination of audit, appeals or litigation processes. This amount is determined through criteria and a methodology prescribed by GAAP and is referred to as an “unrecognized tax benefit.” In the period these liabilities are established, we record an associated charge to our provision for taxes. If based on new information in a later period, we determine that payment of these amounts are not probable, or that the recorded tax liability differs from what we expect the ultimate assessment to be, we adjust the liability accordingly and recognize a related tax benefit or expense. | |||||||||||
During fiscal years 2014 and 2013, changes in the total amount of unrecognized tax benefits were as follows: | |||||||||||
UNRECOGNIZED TAX BENEFITS | |||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | ||||||||||
Total unrecognized tax benefits, beginning balance | $ | 15,759 | $ | 13,213 | |||||||
Changes in tax positions taken during a prior period | 536 | 3,194 | |||||||||
Changes due to lapse in statute of limitations | -2,363 | -466 | |||||||||
Impact of foreign currency remeasurement on unrecognized tax benefits in the current period | 216 | -182 | |||||||||
Changes resulting from agreements with taxing authorities | -224 | - | |||||||||
Total unrecognized tax benefits, ending balance | 13,924 | 15,759 | |||||||||
Less current unrecognized tax benefits | -453 | - | |||||||||
Noncurrent unrecognized tax benefits | $ | 13,471 | $ | 15,759 | |||||||
We do not expect any additional material changes to our existing unrecognized tax benefits during the next twelve months resulting from any issues currently pending with tax authorities. | |||||||||||
The Company classifies all interest and penalties on uncertain tax positions as income tax expense. As of February 28, 2014 and February 28, 2013, the liability for tax-related interest expense and penalties included in unrecognized tax benefits was $2.66 and $2.45 million for interest expense and $1.48 and $1.43 million for penalties, respectively. Additionally, the 2014, 2013 and 2012 provisions for income tax include combined tax-related interest and penalties expense of $0.56, $1.03 and $1.25 million, respectively. | |||||||||||
We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. As of February 28, 2014, tax years under examination or still subject to examination by material tax jurisdictions are as follows: | |||||||||||
Jurisdiction | Tax Years Under Examination | Open Tax Years | |||||||||
Mexico | 2008 | 2008 | - | 2013 | |||||||
United Kingdom | - None - | 2013 | - | 2014 | |||||||
United States * | 2003, 2007, 2008, 2011, 2012 | 2003, 2007, 2008, 2011 - 2014 | |||||||||
Switzerland | - None - | 2007 | - | 2014 | |||||||
Hong Kong | - None - | 2006 | - | 2014 | |||||||
France | 2007 - 2010 | 2007 | - | 2014 | |||||||
Hungary | 2005, 2006, 2009 | 2005, 2006, 2009 - 2014 | |||||||||
* Kaz, Inc. and its U.S. subsidiaries are under examination for the 2003, 2007 and 2008 tax years. Helen of Troy Texas Corporation and its subsidiaries are currently under examination for the 2011 and 2012 tax years. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
FAIR VALUE | ' | ||||||||||
FAIR VALUE | ' | ||||||||||
NOTE 11 – FAIR VALUE | |||||||||||
The following tables present the fair value hierarchy of our financial assets and liabilities carried at fair value and | |||||||||||
measured on a recurring basis as of the last day of February 2014 and 2013: | |||||||||||
FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES | |||||||||||
(in thousands) | |||||||||||
Quoted Prices in | Significant Other | ||||||||||
Active Markets | Observable | ||||||||||
Fair Values at | for Identical Assets | Market Inputs | |||||||||
Description | February 28, 2014 | (Level 1) | (Level 2) | ||||||||
Assets: | |||||||||||
Money market accounts | $ | 1,549 | $ | 1,549 | $ | - | |||||
Total assets | $ | 1,549 | $ | 1,549 | $ | - | |||||
Liabilities: | |||||||||||
Long-term debt - fixed rate (1) | $ | 83,951 | $ | - | $ | 83,951 | |||||
Long-term debt - floating rate | 112,607 | - | 112,607 | ||||||||
Interest rate swaps and foreign currency contracts | 1,596 | - | 1,596 | ||||||||
Total liabilities | $ | 198,154 | $ | - | $ | 198,154 | |||||
Quoted Prices in | Significant Other | ||||||||||
Active Markets | Observable | ||||||||||
Fair Values at | for Identical Assets | Market Inputs | |||||||||
Description | February 28, 2013 | (Level 1) | (Level 2) | ||||||||
Assets: | |||||||||||
Money market accounts | $ | 1,091 | $ | 1,091 | $ | - | |||||
Foreign currency contracts | 496 | - | 496 | ||||||||
Total assets | $ | 1,587 | $ | 1,091 | $ | 496 | |||||
Liabilities: | |||||||||||
Long-term debt - fixed rate (1) | $ | 105,725 | $ | - | $ | 105,725 | |||||
Long-term debt - floating rate | 75,000 | - | 75,000 | ||||||||
Interest rate swaps | 4,824 | - | 4,824 | ||||||||
Total liabilities | $ | 185,549 | $ | - | $ | 185,549 | |||||
(1) Debt values are reported at estimated fair value in these tables but are recorded in the accompanying consolidated | |||||||||||
balance sheets at the undiscounted value of remaining principal payments due. | |||||||||||
The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items. Money market accounts are included in cash and cash equivalents in the accompanying | |||||||||||
consolidated balance sheets and are classified as Level 1 items. | |||||||||||
We classify our fixed and floating rate debt as Level 2 items because the estimation of the fair market value of these financial assets 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 fair market value of the fixed rate debt was computed using a discounted cash flow analysis and discount rates at February 28, 2014 and 2013 of 1.75 and 1.83, respectively. All other long-term debt has floating interest rates, and its book value approximates its fair value as of the reporting date. | |||||||||||
We use derivatives for hedging purposes and our derivatives are primarily foreign currency contracts and interest rate swaps. We determine the fair value of our derivative instruments based on Level 2 inputs in the fair value hierarchy. See Notes (1), (12) and (17) to these consolidated financial statements for more information on our hedging activities. | |||||||||||
The Company’s other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of the Company’s impairment assessments and as circumstances require. As discussed in Note (4) to these consolidated financial statements, in connection with our annual impairment testing during the first quarter of fiscal year 2014, we recorded a non-cash asset impairment charge of $12.05 million ($12.03 million after tax). The charge related to certain trademarks in our Personal Care segment, which were written down to their estimated fair value, determined on the basis of future discounted cash flows using the relief from royalty valuation method. The table below presents other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) for the fiscal years 2014 and 2013: | |||||||||||
OTHER NON-FINANCIAL ASSETS | |||||||||||
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (Level 3) | |||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | ||||||||||
Beginning balances | $ | 808,869 | $ | 829,500 | |||||||
Total gains / income (losses / expense): | |||||||||||
Included in net income - realized | -33,403 | (22,400 | ) | ||||||||
Acquired during the period | 339 | 778 | |||||||||
Acquisition adjustments and retirements during the period | -255 | 991 | |||||||||
Ending balances | $ | 775,550 | $ | 808,869 |
FINANCIAL_INSTRUMENTS_AND_RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ' | |||||||||||||||||||||||
NOTE 12 – FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ||||||||||||||||||||||||
Foreign Currency Risk - Our functional currency is the U.S. Dollar. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales, certain inventory purchases and operating expenses. As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies. For the fiscal years 2014, 2013 and 2012, 14.7, 14.7 and 15.6 percent, respectively, of our net sales revenue was in foreign currencies. These sales were primarily denominated in British Pounds, Euros, Mexican Pesos, Canadian Dollars, Australian Dollars, Peruvian Soles, and Venezuelan Bolivares Fuertes. We make most of our inventory purchases from the Far East and use the U.S. Dollar for such purchases. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities, are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A. We recorded net foreign exchange gains (losses), including the impact of currency hedges, of ($0.95), ($2.36) and ($0.67) million in SG&A and ($0.17), ($0.04) and $0.04 million in income tax expense during fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
We have historically hedged against certain foreign currency exchange rate-risk by using a series of forward contracts designated as cash flow hedges 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. | ||||||||||||||||||||||||
Interest Rate Risk - Interest on our outstanding debt as of February 28, 2014 is both floating and fixed. Fixed rates are in place on $80 million of Senior Notes at 3.90 percent and floating rates are in place on $37.61 million of draws under the MBFC Loan Agreement and $75 million of Senior Notes due June 2014. If short-term interest rates increase, we may incur higher interest rates on any outstanding balances under the Credit Agreement. The floating rate Senior Notes due June 2014 reset as described in Note (9) to these consolidated financial statements, and have been effectively converted to fixed rate debt using an interest rate swap (the”swap”), as described below. | ||||||||||||||||||||||||
As of February 28, 2014, we had a swap that converted aggregate notional principal of $75 million from floating interest rate payments under our Senior Notes due June 2014 to fixed interest rate payments at 6.01 percent. In the swap transaction, we maintain contracts to pay fixed rates of interest on an aggregate notional principal amount of $75 million at a rate of 5.11 percent on our Senior Notes due June 2014, while simultaneously receiving floating rate interest payments set at 0.25 percent as of February 28, 2014 on the same notional amounts. The fixed rate side of the swap will not change over the life of the swap. The floating rate payments are reset quarterly based on three month LIBOR. The resets occur at the same time as the interest payments made on the underlying debt. Changes in the spread between the fixed rate payment side of the swap and the floating rate receipt side of the swap offset 100 percent of the change in any period of the underlying debt’s floating rate payments. The swap is used to reduce the Company’s risk of increased interest costs; however, when interest rates drop significantly below the swap rates, we lose the benefit that our floating rate debt would provide, if not managed with a swap. The swap is considered 100 percent effective. | ||||||||||||||||||||||||
The following table summarizes the fair values of our various derivative instruments at the end of fiscal years 2014 and 2013: | ||||||||||||||||||||||||
FAIR VALUES OF DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
February 28, 2014 | ||||||||||||||||||||||||
Prepaid | Accrued | |||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||
Final | and Other | and Other | Other | |||||||||||||||||||||
Settlement | Notional | Current | Current | Liabilities, | ||||||||||||||||||||
Designated as hedging instruments | Hedge Type | Date | Amount | Assets | Liabilities | Noncurrent | ||||||||||||||||||
Foreign currency contracts - sell Euro | Cash flow | Jun-14 | € | 2,850 | $ | - | $ | 89 | $ | - | ||||||||||||||
Foreign currency contracts - sell Pounds | Cash flow | Nov-14 | £ | 4,250 | - | 280 | - | |||||||||||||||||
Interest rate swap | Cash flow | Jun-14 | $ | 75,000 | - | 1,227 | - | |||||||||||||||||
Total fair value | $ | - | $ | 1,596 | $ | - | ||||||||||||||||||
February 28, 2013 | ||||||||||||||||||||||||
Prepaid | Accrued | |||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||
Final | and Other | and Other | Other | |||||||||||||||||||||
Settlement | Notional | Current | Current | Liabilities, | ||||||||||||||||||||
Designated as hedging instruments | Hedge Type | Date | Amount | Assets | Liabilities | Noncurrent | ||||||||||||||||||
Foreign currency contracts - sell Euro | Cash flow | Oct-13 | € | 7,050 | $ | 239 | $ | - | $ | - | ||||||||||||||
Foreign currency contracts - sell Pounds | Cash flow | Nov-13 | £ | 3,000 | 257 | - | - | |||||||||||||||||
Interest rate swap | Cash flow | Jun-14 | $ | 75,000 | - | 3,044 | 1,780 | |||||||||||||||||
Total fair value | $ | 496 | $ | 3,044 | $ | 1,780 | ||||||||||||||||||
The pre-tax effect of derivative instruments for the fiscal years 2014 and 2013 is as follows: | ||||||||||||||||||||||||
PRE-TAX EFFECT OF DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Fiscal Years Ended | ||||||||||||||||||||||||
Gain / (Loss) | Gain / (Loss) Reclassified | |||||||||||||||||||||||
Recognized in OCI | from Accumulated Other | Gain / (Loss) Recognized | ||||||||||||||||||||||
(effective portion) | Comprehensive Loss into Income | as Income (1) | ||||||||||||||||||||||
2014 | 2013 | Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||
Currency contracts - cash flow hedges | $ | -962 | $ | -132 | SG&A | $ | -98 | $ | -629 | SG&A | $ | - | $ | (44 | ) | |||||||||
Interest rate swaps - cash flow hedges | -111 | -103 | Interest expense | -3,707 | -3,833 | |||||||||||||||||||
Total | $ | -1,073 | $ | -235 | $ | -3,805 | $ | -4,462 | $ | - | $ | (44 | ) | |||||||||||
(1) The amounts shown represent the ineffective portion of the change in fair value of cash flow hedges. | ||||||||||||||||||||||||
We expect pre-tax net losses of $0.37 million associated with foreign currency contracts, and $1.23 million associated with our interest rate swap, currently reported in accumulated other comprehensive loss to be reclassified into expense over the next nine months. The amount ultimately realized, however, will differ as exchange rates change and the underlying contracts settle. See Notes (1), (11) and (17) to these consolidated financial statements for more information on our hedging activities. | ||||||||||||||||||||||||
Counterparty Credit Risk - Financial instruments, including foreign currency contracts and interest rate swaps, expose us to counterparty credit risk for nonperformance. We manage our exposure to counterparty credit risk by dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote. | ||||||||||||||||||||||||
Risks Inherent in Cash and Cash Equivalents - Our cash and cash equivalents are subject to interest rate risk, credit risk and liquidity risk. Cash consists of interest-bearing, non-interest-bearing and short-term investment accounts. Cash | ||||||||||||||||||||||||
equivalents consist of money market investment accounts. The following table summarizes our cash and cash equivalents | ||||||||||||||||||||||||
at the end of fiscal years 2014 and 2013: | ||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
February 28, 2014 | February 28, 2013 | |||||||||||||||||||||||
Carrying | Range of | Carrying | Range of | |||||||||||||||||||||
Amount | Interest Rates | Amount | Interest Rates | |||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Cash, interest and non-interest-bearing accounts - unrestricted | $ | 65,884 | 0.00 to 1.10% | $ | 9,568 | 0.00 to 1.30% | ||||||||||||||||||
Cash, interest and non-interest-bearing accounts - restricted | 2,594 | 0.00 to 0.50% | 2,183 | 0.00 to 0.75% | ||||||||||||||||||||
Money market funds | 1,549 | 0.30 to 0.80% | 1,091 | 0.35 to 0.37% | ||||||||||||||||||||
Total cash and cash equivalents | $ | 70,027 | $ | 12,842 | ||||||||||||||||||||
Our cash balances at the end of fiscal years 2014 and 2013 include restricted cash of $2.59 and $2.18 million, respectively, denominated in Venezuelan Bolivares Fuertes, shown above under the heading “Cash, interest and non-interest-bearing accounts – restricted.” The balances arise from our operations within the Venezuelan market. Until we are able to repatriate cash from Venezuela, we intend to use these cash balances in-country to continue to fund operations. We do not otherwise rely on these restricted funds as a source of liquidity. | ||||||||||||||||||||||||
In February 2013, the Venezuelan government devalued its currency from 4.30 per U.S. Dollar to 6.30 per U.S. Dollar. As a result of this devaluation, we recorded a $1.41 million unfavorable exchange rate impact in SG&A for the fourth quarter of fiscal year 2013. | ||||||||||||||||||||||||
At the end of fiscal years 2014 and 2013, our cash equivalents were in money market accounts, therefore, we believe there was no material interest rate risk associated with these holdings. |
OTHER_COMMITMENTS_AND_CONTINGE
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||
NOTE 13 – OTHER COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||
Indemnity Agreements - Under agreements with customers, licensors and parties from whom we have acquired assets or entered into business combinations, we indemnify these parties against liability associated with our products. Additionally, we are party to a number of agreements under leases where we indemnify the lessor for liabilities attributable to our actions or conduct. The indemnity agreements to which we are a party do not, in general, increase our liability for claims related to our products or actions and have not materially affected our consolidated financial statements. | |||||||||||||||||||||||
Employment Contracts - During fiscal year 2012, we entered into an amended and restated employment agreement with Gerald J. Rubin, our former Chief Executive Officer and President (the “former CEO”). On January 14, 2014, the Company and the former CEO entered into a separation agreement (the “Separation Agreement”). Pursuant to the Separation Agreement, the former CEO ceased serving as the Chief Executive Officer and President and resigned as a director of the Company, effective January 14, 2014, but remained an employee of the Company through February 28, 2014. The former CEO’s employment with the Company was considered a termination without cause under the terms of his employment agreement. As a result, in connection with the termination of his employment, Mr. Rubin will only receive the amounts or payments due to him under the employment agreement for a termination of employment without cause as of February 28, 2014. As a result of the Separation Agreement, the Company recorded a charge of $16.34 million (after tax) in the fourth quarter of fiscal year 2014, which accrued for liabilities and associated legal and administrative costs as a result of the separation. | |||||||||||||||||||||||
We have entered into employment contracts with certain officers, including an employment agreement with Mr. Mininberg effective March 1, 2014, in connection with his appointment as the Company’s new CEO. These agreements provide for minimum salary levels, potential incentive bonuses, and in some cases, performance based awards. These agreements also specify varying levels of salary continuation and / or severance compensation dependant on certain circumstances such as involuntary termination for other than cause or involuntary termination due to a change of control. In some cases, the expiration dates for these agreements are indefinite, unless terminated by either party. At February 28, 2014, the estimated aggregate commitment for potential future compensation and / or severance pursuant to all continuing employment contracts, was approximately $7.68 million, payable over varying terms for the next two years. | |||||||||||||||||||||||
International Trade - We purchase most of our appliances and a significant portion of other products that we sell from unaffiliated manufacturers located in the Far East, mainly in China. With most of our products being manufactured in the Far East, we are subject to risks associated with trade barriers, currency exchange fluctuations and social, economic and political unrest. In recent years, increasing labor costs, regional labor dislocations driven by new government policies, local inflation, changes in ocean cargo carrier capacity and costs, the impact of energy prices on transportation, and the appreciation of the Chinese Renminbi against the U.S. Dollar have resulted in fluctuations in our cost of goods sold. In the past, certain Chinese suppliers have closed operations due to economic conditions that pressured their profitability. Any future supplier closings could cause periodic disruptions in delivery of certain items that can affect our sales. Although we have multiple sourcing partners for many of our products, occasionally we are unable to source certain items on a timely basis due to changes occurring with our suppliers. We believe supplier contraction continues to be a trend in our industry. We also believe that we could source similar products outside China, if necessary, and we continuously explore expanding sourcing alternatives in other countries. However, the relocation of any production capacity could require substantial time and increased costs. | |||||||||||||||||||||||
Customer Incentives - We regularly enter into arrangements with customers whereby we offer various incentives, including incentives in the form of volume rebates. Our estimate of the liability for such incentives is included in the accompanying consolidated balance sheets on the line entitled “Accrued expenses and other current liabilities,” and in Note (7) included in the lines entitled “Accrued sales returns, discounts and allowances” and “Accrued advertising” and are based on incentives applicable to sales occurring up to the respective balance sheet dates. | |||||||||||||||||||||||
Other 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. | |||||||||||||||||||||||
Contractual Obligations and Commercial Commitments - Our contractual obligations and commercial commitments at the end of fiscal year 2014 were: | |||||||||||||||||||||||
PAYMENTS DUE BY PERIOD - TWELVE MONTHS ENDED THE LAST DAY OF FEBRUARY: | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | After | ||||||||||||||||||
Total | 1 year | 2 years | 3 years | 4 years | 5 years | 5 years | |||||||||||||||||
Term debt - fixed rate | $ | 80,000 | $ | 20,000 | $ | 20,000 | $ | 20,000 | $ | 20,000 | $ | - | $ | - | |||||||||
Term debt - floating rate (1) | 112,607 | 76,900 | 1,900 | 3,800 | 5,700 | 1,900 | 22,407 | ||||||||||||||||
Long-term incentive plan payouts | 11,145 | 5,300 | 3,801 | 2,044 | - | - | - | ||||||||||||||||
Interest on fixed rate debt | 7,384 | 3,016 | 2,236 | 1,456 | 676 | - | - | ||||||||||||||||
Interest on floating rate debt (1) | 4,066 | 1,927 | 390 | 347 | 281 | 259 | 862 | ||||||||||||||||
Open purchase orders | 188,770 | 188,770 | - | - | - | - | - | ||||||||||||||||
Long-term purchase commitments | 2,957 | 836 | 606 | 606 | 606 | 303 | - | ||||||||||||||||
Minimum royalty payments | 78,632 | 12,689 | 12,731 | 12,545 | 9,674 | 9,488 | 21,505 | ||||||||||||||||
Advertising and promotional | 49,969 | 6,685 | 5,160 | 5,263 | 5,368 | 5,476 | 22,017 | ||||||||||||||||
Operating leases | 10,656 | 3,849 | 2,472 | 1,780 | 1,287 | 1,268 | - | ||||||||||||||||
Capital spending commitments | 423 | 423 | - | - | - | - | - | ||||||||||||||||
Total contractual obligations (2) | $ | 546,609 | $ | 320,395 | $ | 49,296 | $ | 47,841 | $ | 43,592 | $ | 18,694 | $ | 66,791 | |||||||||
(1) The Company uses an interest rate swap in conjunction with its unsecured floating rate, $75 million, Senior Notes due June 2014. The swap hedges the variable LIBOR rates used to reset the floating rates on these Senior Notes. The swap effectively fixes the interest rates on the Senior Notes due June 2014 at 6.01 percent. | |||||||||||||||||||||||
(2) In addition to the contractual obligations and commercial commitments in the table above, as of February 28, 2014, we have recorded a provision for uncertain tax positions of $13.92 million. We are unable to reliably estimate the timing of most of the future payments, if any, related to our uncertain tax positions; therefore, we have excluded these tax liabilities from the table above. |
REPURCHASE_OF_HELEN_OF_TROY_CO
REPURCHASE OF HELEN OF TROY COMMON STOCK | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
REPURCHASE OF HELEN OF TROY COMMON STOCK | ' | ||||||||||
REPURCHASE OF HELEN OF TROY COMMON STOCK | ' | ||||||||||
NOTE 14 – REPURCHASE OF HELEN OF TROY COMMON STOCK | |||||||||||
As of February 6, 2014, our Board of Directors approved a resolution to repurchase $550 million of the Company’s outstanding common stock in keeping with its stated intention to return to shareholders excess capital not otherwise deployed for strategic acquisitions. This share repurchase authorization supersedes the remaining previously outstanding share repurchase authorization, which was 2,907,637 shares of common stock as of February 6, 2014. On February 10, 2014, as part of the $550 million repurchase program, the Company announced the commencement of a modified “Dutch auction” tender offer to repurchase up to $300 million of its common stock. The tender offer expired March 10, 2014, resulting in the Company accepting for payment all shares of common stock properly tendered and not properly withdrawn for an aggregate purchase price of approximately $245.6 million. See Note (21) to the accompanying consolidated financial statements for additional information regarding the completion of the “Dutch auction” tender offer. | |||||||||||
Our current equity compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option or other share-based award holders can be paid for by having the holder tender back to the Company a number of shares at fair value equal to the amounts due. Net exercises are accounted for by the Company as a purchase and retirement of shares. | |||||||||||
For the periods covered in the accompanying consolidated financial statements, open market repurchase activity and common stock option exercises resulted in the following share repurchases: | |||||||||||
SHARE REPURCHASES | |||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | 2012 | |||||||||
Common stock repurchased on the open market | |||||||||||
Number of shares | 33,862 | 61,426 | - | ||||||||
Aggregate market value of shares (in thousands) | $ | 1,311 | $ | 1,759 | $ | - | |||||
Average price per share | $ | 38.71 | $ | 28.64 | $ | - | |||||
Common stock received in settlement of share-based compensation | |||||||||||
Number of shares | 112,677 | 49,126 | 1,124,563 | ||||||||
Aggregate market value of shares (in thousands) | $ | 6,937 | $ | 1,627 | $ | 40,047 | |||||
Average price per share | $ | 61.57 | $ | 33.12 | $ | 35.61 | |||||
During fiscal year 2012, our former CEO tendered 1,016,227 shares of common stock having a market value of $36.52 million, or $35.93 per share, as payment for the exercise price and related federal tax obligations arising from the exercise of stock options to purchase 1,625,000 shares of common stock. The shares tendered as part of this transaction are included as fiscal year 2012 common stock repurchase activity in the preceding table. | |||||||||||
During the first quarter of fiscal year 2014, our former CEO tendered 9,898 shares of common stock having a market value of $0.35 million as payment for related federal tax obligations arising from the vesting and settlement of performance-based restricted share units (“Performance RSUs”). On February 28, 2014, our former CEO tendered 92,683 shares of common stock having a market value of $6.05 million as payment for related federal tax obligations arising from the vesting and settlement of Performance RSUs and restricted share awards (“RSAs”). The shares were originally awarded based on the achievement of fiscal year 2013 performance targets and vested on February 28, 2014 in accordance with the terms of his Employment and Separation Agreements. | |||||||||||
We account for shares tendered in settlement of share-based compensation transactions as a purchase and retirement of the shares. |
SHAREBASED_COMPENSATION_PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended | ||||||||||||||
Feb. 28, 2014 | |||||||||||||||
SHARE-BASED COMPENSATION PLANS | ' | ||||||||||||||
SHARE-BASED COMPENSATION PLANS | ' | ||||||||||||||
NOTE 15 – SHARE-BASED COMPENSATION PLANS | |||||||||||||||
We have equity awards outstanding under two expired share-based compensation plans. The expired plans consist of an employee stock option and restricted stock plan adopted in 1998 (the “1998 Plan”) and a non-employee director stock option plan adopted in 1995 (the “1995 Directors’ Plan”). | |||||||||||||||
We also have equity awards outstanding under three active share-based compensation plans. The plans consist of the Helen of Troy Limited 2008 Stock Incentive Plan, an employee stock option and restricted stock plan (the “2008 Stock Incentive Plan”), the Helen of Troy Limited 2008 Non-Employee Directors Stock Incentive Plan, a non-employee director restricted stock plan (the “2008 Directors’ Plan”), and the Helen of Troy Limited 2008 Employee Stock Purchase Plan (the “2008 Stock Purchase Plan”). These plans are described below. The plans are administered by the Compensation Committee of the Board of Directors, which consists of non-employee directors who are independent under the NASDAQ Stock Market listing standards. | |||||||||||||||
Expired Plans | |||||||||||||||
The 1998 Plan - The plan covered a total of 6,750,000 shares of common stock for issuance to key officers and employees. The 1998 Plan provided for the grant of options to purchase our common stock at a price equal to or greater than the fair market value on the grant date. The 1998 Plan contained provisions for incentive stock options, non-qualified stock options and restricted share grants. Generally, options granted under the 1998 Plan become exercisable immediately or over one-, four-, or five-year vesting periods and expire on dates ranging from seven to ten years from the date of grant. | |||||||||||||||
The 1998 Plan expired by its terms on August 25, 2008. As of February 28, 2014, 30,100 shares of common stock subject to options were outstanding under the plan. | |||||||||||||||
The 1995 Directors’ Plan - The plan covered a total of 980,000 shares of common stock for issuance to non-employee members of the Board of Directors. We granted options under the 1995 Directors’ Plan at a price equal to the fair market value of our common stock at the date of grant. Options granted under the 1995 Directors’ Plan vest one year from the date of issuance and expire ten years after issuance. The 1995 Directors’ Plan expired by its terms on June 6, 2005. As of February 28, 2014, options to purchase 20,000 shares of common stock were outstanding under the plan. | |||||||||||||||
Active Plans | |||||||||||||||
The 2008 Stock Incentive Plan - The plan covers a total of 3,750,000 shares of common stock for issuance to key officers, employees and consultants of the Company. Generally, options granted under the 2008 Stock Incentive Plan will become exercisable over four- or five-year vesting periods and will expire on dates ranging from seven to ten years from the date of grant. The plan will expire by its terms on August 19, 2018. As of February 28, 2014, 788,831 shares of common stock subject to options were outstanding, 100,000 Performance RSUs remained outstanding but were vested on April 22, 2014 and 2,350,699 shares remained available for future issue under the plan. | |||||||||||||||
On March 1, 2012, our former CEO was granted 700,000 Performance RSUs with a fair value of $32.88 per share subject to performance and service conditions. 100,000 Performance RSUs were earned in fiscal year 2013 and were vested and settled in fiscal year 2014 in accordance with the terms of his Employment and Separation Agreements. Based on the achievement of performance targets in connection with his fiscal year 2013 annual bonus, the former CEO was also awarded 159,666 RSAs having a fair value at the date of the award of $35.55 per share. These shares were awarded on April 22, 2013 and vested on February 28, 2014 in accordance with the terms of his Employment and Separation Agreements. | |||||||||||||||
Our former CEO earned 100,000 Performance RSUs and 62,304 RSAs for fiscal year 2014 performance having a fair value at the date of the award of $67.10 per share. These Performance RSUs and RSAs vested on April 22, 2014 per the terms of his Employment and Separation Agreements. For further information regarding the Separation Agreement, see Note (13) to these consolidated financial statements under the subheading “Employment Contracts.” | |||||||||||||||
The 2008 Directors’ Plan - The plan covers a total of 175,000 shares of common stock for issuance of restricted stock, restricted stock units or other stock-based awards to non-employee members of our Board of Directors. Awards granted under the 2008 Directors’ Plan will be subject to vesting schedules and other terms and conditions as determined by the Compensation Committee of the Company’s Board of Directors. Currently, the Board’s stock ownership guidelines require restricted stock granted to directors to be held until their departure from the Board. The plan will expire by its terms on August 19, 2018. As of February 28, 2014, 58,624 shares of restricted stock have been granted and 116,376 shares remained available for future issue under the plan. Under the 2008 Directors’ Plan, for the fiscal years ended 2014, 2013 and 2012, the Company granted 10,512, 10,512 and 18,000 shares of restricted stock, respectively, to certain members of our Board of Directors having weighted average fair values at the date of grant of $41.26, $31.54 and $29.48 per share for each year, respectively. The restricted stock awards vested immediately, were valued at the fair value of the Company’s common stock at the date of the grant and accordingly, were expensed at the time of the grants. | |||||||||||||||
The 2008 Stock Purchase Plan - The plan covers a total of 350,000 shares of common stock for issuance to our employees. Under the terms of the plan, employees may authorize the withholding of up to 15 percent of their wages or salaries to purchase our shares of common stock. The purchase price for shares acquired under the 2008 Stock Purchase Plan is equal to the lower of 85 percent of the share’s fair market value on either the first day of each option period or the last day of each period. The plan will expire by its terms on September 1, 2018. Shares of common stock purchased under the 2008 Stock Purchase Plan vest immediately at the time of purchase. Accordingly, the fair value award associated with their discounted purchase price is expensed at the time of purchase. During fiscal years 2014, 2013 and 2012, plan participants acquired a total of 41,328, 39,728 and 41,868 shares of common stock at average prices of $32.66, $26.68 and $24.17 per share, respectively. As of February 28, 2014, 158,213 shares remained available for future issue under this plan. | |||||||||||||||
The Company recorded share-based compensation expense in SG&A for each of the fiscal years covered by our consolidated statements of income as follows: | |||||||||||||||
SHARE-BASED PAYMENT EXPENSE | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Stock options | $ | 2,380 | $ | 2,298 | $ | 2,061 | |||||||||
Directors stock compensation | 619 | 473 | 531 | ||||||||||||
Performance based restricted stock awards (1) | 7,968 | 2,988 | - | ||||||||||||
Performance based restricted stock units (2) | 5,478 | - | - | ||||||||||||
CEO separation compensation (3) | 15,000 | - | - | ||||||||||||
Employee stock purchase plan | 424 | 296 | 336 | ||||||||||||
Share-based payment expense | 31,869 | 6,055 | 2,928 | ||||||||||||
Less income tax benefits | -5,709 | -858 | -99 | ||||||||||||
Share-based payment expense, net of income tax benefits | $ | 26,160 | $ | 5,197 | $ | 2,829 | |||||||||
Earnings per share impact of share based payment expense: | |||||||||||||||
Basic | $ | 0.82 | $ | 0.16 | $ | 0.09 | |||||||||
Diluted | $ | 0.81 | $ | 0.16 | $ | 0.09 | |||||||||
The table above includes the following awards recognized in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) RSAs of 159,666 for fiscal year 2013 with a fair value at the date of the award of $35.55 per share, vested and settled on February 28, 2014, and 62,304 RSAs for fiscal year 2014 with a fair value at the date of the award of $67.10 per share, vested on April 22, 2014. | |||||||||||||||
(2) Performance RSUs of 66,600 for fiscal year 2013 and 100,000 for fiscal year 2014, having a fair value at the date of each grant of $32.88. | |||||||||||||||
(3) $15 million in aggregate fair value of shares of common stock, to be settled on September 1, 2014 per the terms of the Separation Agreement with our former CEO. | |||||||||||||||
The fair value of all share-based payment awards are estimated using a Black-Scholes option pricing model with the following assumptions for the fiscal years 2014, 2013 and 2012: | |||||||||||||||
ASSUMPTIONS USED FOR FAIR VALUE OF STOCK OPTION GRANTS | |||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Range of risk free interest rates used | 0.6% - 1.3% | 0.1% - 0.9% | 0.6% - 1.5% | ||||||||||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||||||||||
Weighted average volatility rate | 38.80% | 51.40% | 52.50% | ||||||||||||
Range of expected volatility rates used | 34.0% - 41.7% | 45.7% - 55.3% | 51.4% - 65.9% | ||||||||||||
Range of expected terms used (in years) | 4.1 - 4.4 | 4.1 - 4.4 | 4.1 - 4.4 | ||||||||||||
The following describes how certain assumptions above are determined and affect the estimated fair value of options or discounted employee share purchases (“share-based payments”). The risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the share-based payments. The dividend yield is computed as zero because the Company has not historically paid dividends nor does it expect to do so at this time. Expected volatility is based on a weighted average of the market implied volatility and historical volatility over the expected life of the underlying share-based payments. The Company uses its historical experience to estimate the expected life of each stock-option grant and also to estimate the impact of exercise, forfeitures, termination, and holding period behavior for fair value expensing purposes. | |||||||||||||||
A summary of stock option activity under all the Company’s share-based compensation plans follows: | |||||||||||||||
SUMMARY OF STOCK OPTION ACTIVITY | |||||||||||||||
(in thousands, except contractual term and per share data) | |||||||||||||||
Weighted | |||||||||||||||
Weighted | Weighted | Average | |||||||||||||
Average | Average | Remaining | |||||||||||||
Exercise | Grant Date | Contractual | |||||||||||||
Price | Fair Value | Term | Intrinsic | ||||||||||||
Options | (per share) | (per share) | (in years) | Value | |||||||||||
Outstanding at March 1, 2011 | 2,510 | $ | 17.64 | $ | 6.4 | 3.05 | $ | 26,054 | |||||||
Grants | 379 | 32.71 | 13.13 | ||||||||||||
Exercises | (1,907 | ) | 16.1 | 36,912 | |||||||||||
Forfeitures / expirations | (111 | ) | 27.91 | ||||||||||||
Outstanding at February 29, 2012 | 871 | 26.26 | 10.31 | 5.78 | 5,570 | ||||||||||
Grants | 309 | 34.57 | 14.09 | ||||||||||||
Exercises | (248 | ) | 22.88 | 2,634 | |||||||||||
Forfeitures / expirations | (68 | ) | 30.23 | ||||||||||||
Outstanding at February 28, 2013 | 864 | 29.89 | 11.98 | 6.26 | 6,209 | ||||||||||
Grants | 264 | 36.45 | 11.61 | ||||||||||||
Exercises | (239 | ) | 25.36 | 4,663 | |||||||||||
Forfeitures / expirations | (50 | ) | 33.55 | ||||||||||||
Outstanding at February 28, 2014 | 839 | $ | 33.03 | $ | 12.38 | 6.48 | $ | 27,081 | |||||||
Exercisable at February 28, 2014 | 111 | $ | 25.85 | $ | 10.05 | 4.06 | $ | 4,389 | |||||||
A summary of non-vested stock option activity and changes under all the Company’s share-based compensation plans | |||||||||||||||
follows: | |||||||||||||||
NON-VESTED STOCK OPTION ACTIVITY | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Grant Date | |||||||||||||||
Non-Vested | Fair Value | ||||||||||||||
Options | (per share) | ||||||||||||||
Outstanding at March 1, 2011 | 496 | $ | 8.42 | ||||||||||||
Grants | 379 | 13.13 | |||||||||||||
Vested or forfeited | (258 | ) | 9.19 | ||||||||||||
Outstanding at February 29, 2012 | 617 | 10.99 | |||||||||||||
Grants | 309 | 14.09 | |||||||||||||
Vested or forfeited | (237 | ) | 10.29 | ||||||||||||
Outstanding at February 28, 2013 | 689 | 12.62 | |||||||||||||
Grants | 264 | 11.61 | |||||||||||||
Vested or forfeited | (225 | ) | 11.06 | ||||||||||||
Outstanding at February 28, 2014 | 728 | $ | 12.74 | ||||||||||||
A summary of restricted stock unit activity and changes under the Company’s 2008 Stock Incentive Plan follows: | |||||||||||||||
SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Restricted | Grant Date | ||||||||||||||
Stock | Fair Value | Fair Value | |||||||||||||
Units | (per share) | Outstanding | |||||||||||||
Outstanding at March 1, 2012 | - | $ | - | $ | - | ||||||||||
Granted | 700 | 32.88 | |||||||||||||
Vested | - | - | |||||||||||||
Outstanding at February 28, 2013 | 700 | 32.88 | 25,956 | ||||||||||||
Vested (1) | (100 | ) | 32.88 | ||||||||||||
Forfeited (2) | (500 | ) | 32.88 | ||||||||||||
Outstanding at February 28, 2014 (3) | 100 | $ | 32.88 | $ | 6,531 | ||||||||||
The schedule above includes the following awards and forfeitures recognized in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) Includes 100,000 fiscal year 2013 Performance RSUs. 33,400 vested and settled on April 22, 2013 at a fair value of $35.55 per share and 66,600 vested and settled on February 28, 2014 at a fair value of $65.31 per share. | |||||||||||||||
(2) 500,000 Performance RSUs were forfeited. | |||||||||||||||
(3) Includes 100,000 fiscal year 2014 Performance RSUs, which were vested and settled on April 22, 2014 at a fair value of $67.10 per share. | |||||||||||||||
A summary of restricted stock award activity under all the Company’s share-based compensation plans follows: | |||||||||||||||
SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Restricted | Grant Date | ||||||||||||||
Stock | Fair Value | Fair Value | |||||||||||||
Awards | (per share) | Outstanding | |||||||||||||
Due for issue at March 1, 2012 | - | $ | - | $ | - | ||||||||||
Earned (2) | 160 | 35.55 | |||||||||||||
Vested and issued | - | - | |||||||||||||
Due for Issue at February 28, 2013 (2) | 160 | $ | 35.55 | $ | 5,920 | ||||||||||
Earned (1) | 62 | 67.1 | |||||||||||||
Vested and issued | (160 | ) | 35.55 | ||||||||||||
Due for issue at February 28, 2014 (1) | 62 | $ | 67.1 | $ | 4,073 | ||||||||||
The schedule above includes the following awards earned based on fiscal years 2014 and 2013 performance and vested in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) Fiscal year 2014 RSAs, which vested on April 22, 2014. | |||||||||||||||
(2) Fiscal year 2013 RSAs, were vested on February 28, 2014. | |||||||||||||||
For further information regarding the former CEO’s Separation Agreement, see Note (13) to these consolidated financial statements under the subheading “Employment Contracts.” | |||||||||||||||
A summary of our total unrecognized share-based compensation expense as of February 28, 2014 is as follows: | |||||||||||||||
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | |||||||||||||||
(in thousands, except weighted average expense period data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Unrecognized | Period of | ||||||||||||||
Compensation | Recognition | ||||||||||||||
Expense | (in months) | ||||||||||||||
Stock options | $ | 6,127 | 30.9 | ||||||||||||
DEFINED_CONTRIBUTION_PLANS
DEFINED CONTRIBUTION PLANS | 12 Months Ended |
Feb. 28, 2014 | |
DEFINED CONTRIBUTION PLANS | ' |
DEFINED CONTRIBUTION PLANS | ' |
NOTE 16 – DEFINED CONTRIBUTION PLANS | |
We sponsor defined contribution savings plans in the U.S. and other countries where we have employees. Total matching | |
contributions made to these savings plans for the fiscal years ended 2014, 2013 and 2012 were $2.89, $2.60 and $2.37 | |
million, respectively. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
NOTE 17 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
The changes in accumulated other comprehensive loss by component and related tax effects for fiscal years 2014 and | |||||||||||||
2013 were as follows: | |||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | |||||||||||||
(in thousands) | |||||||||||||
Unrealized Holding Gains (Losses) | |||||||||||||
On Cash Flow Hedges | |||||||||||||
Foreign | |||||||||||||
Interest Rate | Currency | ||||||||||||
Swaps (1) | Contracts (2) | Total | |||||||||||
Balance at February 29, 2012 | $ | (5,559 | ) | $ | (30 | ) | $ | (5,589 | ) | ||||
Other comprehensive income before reclassification | (103 | ) | (132 | ) | (235 | ) | |||||||
Amounts reclassified out of accumulated other comprehensive income | 3,833 | 673 | 4,506 | ||||||||||
Tax effects | (1,306 | ) | (105 | ) | (1,411 | ) | |||||||
Other Comprehensive Income (Loss) | 2,424 | 436 | 2,860 | ||||||||||
Balance at February 28, 2013 | (3,135 | ) | 406 | (2,729 | ) | ||||||||
Other comprehensive income before reclassification | (111 | ) | (962 | ) | (1,073 | ) | |||||||
Amounts reclassified out of accumulated other comprehensive income | 3,707 | 98 | 3,805 | ||||||||||
Tax effects | (1,258 | ) | 164 | (1,094 | ) | ||||||||
Other Comprehensive Income (Loss) | 2,338 | (700 | ) | 1,638 | |||||||||
Balance at February 28, 2014 | $ | (797 | ) | $ | (294 | ) | $ | (1,091 | ) | ||||
(1) Includes net deferred tax benefits of $0.43 and $1.69 million at the end of fiscal years 2014 and 2013, respectively. | |||||||||||||
(2) Includes net deferred tax benefits (expense) of $0.08 and ($0.09) million at the end of fiscal years 2014 and 2013, | |||||||||||||
respectively. | |||||||||||||
See Notes (1), (11) and (12) to these consolidated financial statements for additional information regarding our hedging activities. | |||||||||||||
The amounts reclassified out of accumulated other comprehensive income into the consolidated statements of income, with presentation location for each of the fiscal years covered by our consolidated statements of income, are as follows: | |||||||||||||
PRE-TAX EFFECT OF RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||
(in thousands) | |||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||
Comprehensive Income Components | 2014 | 2013 | 2012 | Income Statement Location | |||||||||
Unrealized holding gains (losses) on derivatives | |||||||||||||
Interest rate swaps | $ | 3,707 | $ | 3,833 | $ | 4,424 | Interest expense | ||||||
Foreign currency contracts | 98 | 673 | 307 | Selling, general and administrative expense | |||||||||
Total amounts reclassified | $ | 3,805 | $ | 4,506 | $ | 4,731 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
NOTE 18 – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Selected unaudited quarterly financial data is as follows: | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
May | August | November | February | Total | |||||||||||||
Fiscal 2014: | |||||||||||||||||
Sales revenue, net | $ | 304,516 | $ | 319,387 | $ | 380,730 | $ | 312,520 | $ | 1,317,153 | |||||||
Gross profit | 120,165 | 123,255 | 147,701 | 125,582 | 516,703 | ||||||||||||
Asset impairment charges | 12,049 | - | - | - | 12,049 | ||||||||||||
Net income | 14,392 | 23,318 | 37,524 | 11,014 | 86,248 | ||||||||||||
Earnings per share (1) | |||||||||||||||||
Basic | 0.45 | 0.73 | 1.17 | 0.34 | 2.69 | ||||||||||||
Diluted | 0.45 | 0.72 | 1.16 | 0.34 | 2.66 | ||||||||||||
Fiscal 2013: | |||||||||||||||||
Sales revenue, net | $ | 300,211 | $ | 287,411 | $ | 374,599 | $ | 326,042 | $ | 1,288,263 | |||||||
Gross profit | 121,148 | 117,030 | 148,453 | 131,580 | 518,211 | ||||||||||||
Net income | 23,472 | 22,968 | 37,719 | 31,507 | 115,666 | ||||||||||||
Earnings per share (1) | |||||||||||||||||
Basic | 0.74 | 0.72 | 1.19 | 0.99 | 3.64 | ||||||||||||
Diluted | 0.74 | 0.72 | 1.18 | 0.98 | 3.62 | ||||||||||||
(1) Earnings per share calculations for each quarter are based on the weighted average number of shares outstanding for each period, and the sum of the quarterly amounts may not necessarily equal the annual earnings per share amounts. |
FOURTH_QUARTER_CHARGES_TRANSAC
FOURTH QUARTER CHARGES / TRANSACTIONS | 12 Months Ended |
Feb. 28, 2014 | |
FOURTH QUARTER CHARGES / TRANSACTIONS | ' |
FOURTH QUARTER CHARGES / TRANSACTIONS | ' |
NOTE 19 – FOURTH QUARTER CHARGES / TRANSACTIONS | |
Fiscal Year 2014 - Our results for the fourth quarter of fiscal year 2014 included a charge of $16.34 million (after tax) in | |
connection with payments, including associated legal and administrative costs, required as a result of our former CEO’s separation from service, as further discussed in Notes (13), (14) and (15) to these consolidated financial statements. | |
Fiscal Year 2013 - Our results for the fourth quarter of fiscal year 2013 did not contain any transactions of a non-routine | |
nature other than the $1.41 million foreign currency devaluation adjustment, as further discussed in Note (12) to these | |
consolidated financial statements. | |
Fiscal Year 2012 - Our results for the fourth quarter of fiscal year 2012 included the acquisition of PUR business from P&G and related financing transactions, as further discussed in Note (5) to these consolidated financial statements. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
NOTE 20 – SEGMENT INFORMATION | ||||||||||||||
The following table contains segment information for fiscal years covered by our consolidated financial statements: | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
(in thousands) | ||||||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2014 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 274,478 | $ | 568,075 | $ | 474,600 | $ | 1,317,153 | ||||||
Asset impairment charges | - | - | 12,049 | 12,049 | ||||||||||
Operating income | 50,828 | 20,764 | 45,508 | 117,100 | ||||||||||
Identifiable assets | 369,698 | 676,131 | 487,473 | 1,533,302 | ||||||||||
Capital and intangible asset expenditures | 851 | 22,934 | 16,678 | 40,463 | ||||||||||
Depreciation and amortization | 3,539 | 20,152 | 11,059 | 34,750 | ||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2013 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 259,042 | $ | 538,666 | $ | 490,555 | $ | 1,288,263 | ||||||
Operating income | 49,612 | 37,772 | 61,389 | 148,773 | ||||||||||
Identifiable assets | 362,378 | 645,586 | 466,040 | 1,474,004 | ||||||||||
Capital and intangible asset expenditures | 1,269 | 7,795 | 5,624 | 14,688 | ||||||||||
Depreciation and amortization | 4,903 | 17,417 | 13,008 | 35,328 | ||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2012 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 237,376 | $ | 447,695 | $ | 496,605 | $ | 1,181,676 | ||||||
Operating income | 44,884 | 32,350 | 62,152 | 139,386 | ||||||||||
Identifiable assets | 362,045 | 619,369 | 454,309 | 1,435,723 | ||||||||||
Capital and intangible asset expenditures | 1,781 | 4,042 | 10,228 | 16,051 | ||||||||||
Depreciation and amortization | 6,672 | 12,502 | 11,004 | 30,178 | ||||||||||
We compute operating income for each segment based on net sales revenue, less cost of goods sold, SG&A, and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus overhead expenses that are allocable to the segment. We make allocations of overhead between operating segments using a number of relevant allocation criteria, depending on the nature of the expense, the most significant of which are relative revenues, estimates of relative labor expenditures, headcount, and facility square footage. We do not allocate nonoperating income and expense, including interest or income taxes to operating segments. | ||||||||||||||
In fiscal year 2012, we began making an allocation of corporate overhead to the Healthcare / Home Environment | ||||||||||||||
segment. In fiscal years 2014 and 2013, we made certain additional cost allocations to the Healthcare / Home Environment segment that were not made in fiscal year 2012 due to continued operational and system integration. These additional allocations are costs of corporate and operating functions that are shared by our segments. For fiscal years 2014, 2013 and 2012, allocations totaled $28.44, $16.69 and $6.02 million, respectively. | ||||||||||||||
Our domestic and international net sales revenue and long-lived assets were as follows: | ||||||||||||||
GEOGRAPHIC INFORMATION | ||||||||||||||
(in thousands) | ||||||||||||||
Fiscal Years Ended the Last Day of February, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
SALES REVENUE, NET: | ||||||||||||||
United States | $ | 1,019,525 | $ | 1,014,354 | $ | 906,884 | ||||||||
International | 297,628 | 273,909 | 274,812 | |||||||||||
Total | $ | 1,317,153 | $ | 1,288,263 | $ | 1,181,676 | ||||||||
LONG-LIVED ASSETS: | ||||||||||||||
United States | $ | 444,788 | $ | 515,411 | $ | 525,537 | ||||||||
International: | ||||||||||||||
Barbados | 324,399 | 398,340 | 406,213 | |||||||||||
Other international | 148,639 | 15,048 | 15,437 | |||||||||||
Subtotal | 473,038 | 413,388 | 421,650 | |||||||||||
Total | $ | 917,826 | $ | 928,799 | $ | 947,187 | ||||||||
The table above classifies assets based upon the country where we hold legal title. | ||||||||||||||
Worldwide sales to our largest customer and its affiliates accounted for approximately 19, 19 and 20 percent of our net sales revenue in fiscal years 2014, 2013 and 2012, respectively. Sales to this customer are made within the Personal Care and Healthcare / Home Environment segments. Of these sales, approximately 92, 91 and 93 percent were within the U.S. during fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||
Sales to our second largest customer accounted for approximately 11 percent of our net sales revenue in each of the fiscal years ending 2014, 2013 and 2012, respectively. Sales to this customer are made across all segments, primarily within the United States and Canada. No other customers accounted for 10 percent or more of net sales revenue during those fiscal years. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 28, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
NOTE 21 – SUBSEQUENT EVENTS | |
On March 14, 2014, the Company completed its modified “Dutch auction” tender offer resulting in the repurchase of 3,693,816 shares of its outstanding common stock at a final purchase price of $66.50 per share. The proceeds from borrowing $200 million under the Credit Agreement and $45.64 million of cash on hand were used to pay for all shares of common stock properly tendered and not properly withdrawn for an aggregate purchase price of approximately $245.64 million (not including fees and expenses relating to the tender offer). The shares repurchased represented approximately 11.5 percent of the Company’s issued and outstanding common shares as of February 5, 2014. | |
On March 20, 2014, the Company concluded its borrowings under the MBFC Loan Agreement, which fixed the principal balance at $37.61 million. Since the aggregate maximum principal under the MBFC Loan Agreement was not borrowed, the final payment of the repayment schedule outlined in Note (9) to these consolidated financial statements was adjusted from $15.20 million previously disclosed to $14.81 million. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Additions | |||||||||||||||||||
Charged to | Net charge | ||||||||||||||||||
Beginning | cost and | (credit) to | Ending | ||||||||||||||||
Description | Balance | expenses (1) | sales revenue (2) | Deductions (3) | Balance | ||||||||||||||
Year ended February 28, 2014 | |||||||||||||||||||
Allowances for doubtful accounts | $ | 1,764 | $ | 400 | $ | - | $ | 37 | $ | 2,127 | |||||||||
Allowances for back-to-stock returns | 3,267 | - | -715 | - | $ | 2,552 | |||||||||||||
Year ended February 28, 2013 | |||||||||||||||||||
Allowances for doubtful accounts | $ | 1,811 | $ | 188 | $ | - | $ | 235 | $ | 1,764 | |||||||||
Allowances for back-to-stock returns | 3,730 | - | -463 | - | $ | 3,267 | |||||||||||||
Year ended February 29, 2012 | |||||||||||||||||||
Allowances for doubtful accounts | $ | 2,108 | $ | 548 | $ | - | $ | 845 | $ | 1,811 | |||||||||
Allowances for back-to-stock returns | 2,040 | - | 1,690 | - | $ | 3,730 | |||||||||||||
(1) Represents periodic charges to the provision for doubtful accounts. | |||||||||||||||||||
(2) Represents net charges (credits) during the period to sales returns and allowances. | |||||||||||||||||||
(3) Represents write-offs of doubtful accounts net of recoveries of previously reserved amounts. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||
Feb. 28, 2014 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
General | ' | ||||||
(a) General | |||||||
When used in these notes, unless the context suggests otherwise or otherwise indicated, 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 the Company’s common shares, par value $0.10 per share, as “common stock.” References to “OXO” refer to the operations of OXO International and certain of its affiliated subsidiaries that comprise our Housewares segment. References to “Kaz” refer to the operations of Kaz, Inc. and its subsidiaries. References to “PUR” refer to the PUR brand of water filtration products that we acquired, along with certain other assets and liabilities, from The Procter & Gamble Company and certain of its affiliates. Kaz and PUR comprise a segment within the Company referred to as the Healthcare / Home Environment segment. Product and service names mentioned in this report are used for identification purposes only and may be protected by trademarks, trade names, services marks, and other intellectual property rights of the Company and other parties in the United States and other jurisdictions. The absence of a specific attribution in connection with any such mark does not constitute a waiver of any such right. All trademarks, trade names, service marks, and logos referenced herein belong to their respective owners. References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. | |||||||
We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have three segments: Housewares, Healthcare / Home Environment and Personal Care. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools, gadgets and storage containers, cleaning, organization, and baby and toddler care products. The Healthcare / Home Environment 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, air purifiers, and insect control devices. Our Personal Care segment’s 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. | |||||||
Our financial statements are prepared in U.S. Dollars and in accordance with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation. | |||||||
Consolidation | ' | ||||||
(b) Consolidation | |||||||
Our consolidated financial statements include the accounts of Helen of Troy Limited and its wholly-owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. | |||||||
Cash and cash equivalents | ' | ||||||
(c) Cash and cash equivalents | |||||||
Cash equivalents include all highly-liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. | |||||||
We consider money market investment accounts to be cash equivalents. Cash equivalents comprised $1.55 and $1.09 million of the amounts reported on our consolidated balance sheets as “Cash and cash equivalents” at February 28, 2014 and 2013, respectively. Notes (11) and (12) contain additional information regarding our cash and cash equivalents. | |||||||
Trading securities and long-term marketable securities | ' | ||||||
(d) Trading securities and long-term marketable securities | |||||||
Trading securities, when held, consist of shares of common stock of publicly traded companies and are stated on our consolidated balance sheets at fair value, as determined by the most recent trading price of each security as of each balance sheet date. We determine the appropriate classification of our investments when those investments are purchased and reevaluate those determinations at each balance sheet date. Trading securities, when held, are included in the “Assets, current” section of our consolidated balance sheets. | |||||||
All realized and unrealized gains and losses attributable to both trading and long-term marketable securities are included in “Nonoperating income (expense), net” in the consolidated statements of income. The sum of realized and unrealized net losses attributable to trading and long-term marketable security investments totaled $0.70 million in fiscal year 2012, principally from the liquidation of auction rate securities with a par value of $22.05 million. | |||||||
Receivables | ' | ||||||
(e) Receivables | |||||||
Our receivables are comprised of trade credit granted to customers, primarily in the retail industry, offset by two valuation reserves: an allowance for doubtful receivables and an allowance for back-to-stock returns. | |||||||
Our allowance for doubtful receivables reflects our best estimate of probable losses, determined principally based on historical experience and specific allowances for known troubled accounts. Our policy is to charge off receivables when we have determined they will no longer be collectible. Charge offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous charge offs are netted against bad debt expense in the period recovered. At February 28, 2014 and 2013, the allowance for doubtful receivables was $2.13 and $1.76 million, respectively. | |||||||
Our allowance for back-to-stock returns reflects our best estimate of future customer returns, determined principally based on historical experience and specific allowances for known pending returns. At February 28, 2014 and 2013, the allowance for back-to-stock returns was $2.55 and $3.27 million, respectively. | |||||||
The Company has significant concentrations of credit risk with two major customers, representing approximately 17 and 10 percent of gross trade receivables, respectively. In addition, as of February 28, 2014 and 2013, approximately 44 and 42 percent, respectively, of the Company’s gross trade receivables were due from its five top customers. | |||||||
Inventory, net and cost of goods sold | ' | ||||||
(f) Inventory, net and cost of goods sold | |||||||
Our inventory consists almost entirely of finished goods. We currently record inventory on our balance sheet at average cost, or net realizable value, if it is below our recorded cost. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. | |||||||
General and administrative expenses in inventory include all the expenses of operating the Company’s sourcing activities and expenses incurred for production monitoring, product design, engineering and packaging. We charged $36.23, $30.28 and $18.74 million of such general and administrative expenses to inventory during fiscal years 2014, 2013 and 2012, respectively. We estimate that $12.26 and $9.64 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2014 and 2013, respectively. | |||||||
The “Cost of goods sold” line item on the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. | |||||||
For fiscal years 2014, 2013 and 2012, cost of goods sold manufactured by vendors in the Far East comprised approximately 67, 66 and 78 percent, respectively, of consolidated cost of goods sold. Our mix of Far East manufacturing has declined since fiscal year 2012 as the Healthcare / Home Environment segment has become a larger part of our business. This segment sources a significant portion of its products in both the U.S. and Mexico. We have sourcing relationships with over 220 third-party manufacturers. During fiscal year 2014, we had no vendors who fulfilled 10 percent or more of our product requirements. Our top two manufacturers combined fulfilled approximately 14 percent of our product requirements. Over the same period, our top five suppliers fulfilled approximately 28 percent of our product requirements. | |||||||
Property and equipment | ' | ||||||
(g) Property and equipment | |||||||
These assets are stated at cost, or in the case of assets recorded through acquisition, their fair values when they were acquired. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. | |||||||
License agreements, trademarks, patents and other intangible assets | ' | ||||||
(h) License agreements, trademarks, patents, and other intangible assets | |||||||
A significant portion of our consolidated sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represents amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. The Company capitalizes costs incurred to renew or extend the term of a license agreement and amortizes such costs on a straight-line basis over the | |||||||
remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our | |||||||
consolidated statements of income on the line entitled “Selling, general and administrative expense” (“SG&A”). Net | |||||||
sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 44, 44 and 45 percent of consolidated net sales revenue for fiscal years 2014, 2013 and 2012, respectively. | |||||||
We also sell products under trademarks that we own. Trademarks that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised cost of acquiring the trademark, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In most instances, we have determined that acquired trademarks have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through purchase from other entities, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs, primarily legal fees in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 14 years. | |||||||
Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired from other entities. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either through outside appraisal or by the term of any controlling agreements. See Notes (4) and (5) to these consolidated financial statements for additional information on our intangible assets. | |||||||
Goodwill, intangible and other long-lived assets and impairments | ' | ||||||
(i) Goodwill, intangible and other long-lived assets and impairments | |||||||
We complete our analysis of the carrying value of our goodwill and other intangible assets during the first quarter of each fiscal year, or more frequently whenever events or changes in circumstances indicate that their carrying value may not be recoverable. | |||||||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). We measure the amount of any goodwill impairment based upon the estimated fair value of the underlying assets and liabilities of the reporting unit, including any unrecognized intangible assets and estimates of the implied fair value of goodwill. An impairment charge is recognized to the extent the recorded goodwill exceeds the implied fair value of goodwill. | |||||||
We consider whether circumstances or conditions exist that suggest that the carrying value of our goodwill and other long-lived assets might be impaired. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If the analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. These steps entail significant amounts of judgment and subjectivity. Events and changes in circumstances that may indicate there is impairment include, but are not limited to, strategic decisions to exit a business or dispose of an asset made in response to changes in economic, political and competitive conditions, the impact of the economic environment on our customer base and on broad market conditions that drive valuation considerations by market participants, our internal expectations with regard to future revenue growth and the assumptions we make when performing our impairment reviews, a significant decrease in the market price of our assets, a significant adverse change in the extent or manner in which our assets are used, a significant adverse change in legal factors or the business climate that could affect our assets, an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset, and significant changes in the cash flows associated with an asset. We analyze these assets at the individual asset, reporting unit and Company levels. | |||||||
As further discussed in Note (4) to these consolidated financial statements, we recorded non-cash impairment charges totaling $12.05 million ($12.03 million after tax) for fiscal year 2014, in order to reflect the carrying value of certain trademarks in our Personal Care segment at estimates of their fair value. | |||||||
Economic useful lives and amortization of intangible assets | ' | ||||||
(j) Economic useful lives and amortization of intangible assets | |||||||
We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets’ economic useful lives are indefinite. If an intangible asset’s economic useful life is deemed indefinite, that asset is not amortized. When we acquire an intangible asset, we consider factors such as the asset’s history, our plans for that asset, and the market for products associated with the asset. We consider these same factors when reviewing the economic useful lives of our existing intangible assets as well. We review the economic useful lives of our intangible assets at least annually. | |||||||
Intangible assets consist primarily of goodwill, license agreements, trademarks, customer lists, distribution rights, patents, patent licenses, and non-compete agreements. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Effectively, none of our goodwill is deductible for tax purposes. We amortize certain intangible assets using the straight-line method over appropriate periods ranging from 2 to 30 years. We recorded intangible asset amortization totaling $21.61, $22.40 and $20.07 million during fiscal years 2014, 2013 and 2012, respectively. See Notes (4) and (5) to these consolidated financial statements for more information about our intangible assets. | |||||||
Fair value classifications | ' | ||||||
(k) Fair value classifications | |||||||
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. | |||||||
· 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. | |||||||
Warranties | ' | ||||||
(l) Warranties | |||||||
Our products are under warranty against defects in material and workmanship for periods ranging from two to five years. We estimate our warranty accrual using historical trends and believe that these trends are the most reliable method by which we can estimate our warranty liability. The following table summarizes the activity in the Company’s accrual for the past two fiscal years: | |||||||
ACCRUAL FOR WARRANTY RETURNS | |||||||
(in thousands) | |||||||
Last Day of February, | |||||||
2014 | 2013 | ||||||
Beginning balance | $ | 23,150 | $ | 26,665 | |||
Additions to the accrual | 28,281 | 35,723 | |||||
Reductions of the accrual - payments and credits issued | -32,162 | -39,238 | |||||
Ending balance | $ | 19,269 | $ | 23,150 | |||
Financial instruments | ' | ||||||
(m) Financial instruments | |||||||
The carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short maturity of these items. See Note (9) to these consolidated financial statements for our assessment of the fair value of our Senior Notes and other long-term debt. We use interest rate swaps (the “swaps”) to protect our funding costs against rising interest rates. The interest rate swaps allow us to raise long-term borrowings at floating rates and effectively swap them into fixed rates. Under our swaps, we agree with another party to exchange quarterly the difference between fixed-rate and floating-rate interest amounts calculated by reference to notional amounts that match the amount of our underlying debt. Under these swap agreements, we pay the fixed rates and receive the floating rates. The swaps settle quarterly and terminate upon maturity of the related debt. We hedge a portion of our foreign exchange rate risk by entering into forward contracts and foreign currency swaps to exchange foreign currencies for U.S. Dollars at specified rates. Our foreign exchange contracts, foreign currency swaps and interest rate swaps are considered highly effective and are accounted for as cash flow hedges. See Notes (11), (12) and (17) to these consolidated financial statements for more information on our hedging activities. | |||||||
Income taxes and uncertain tax positions | ' | ||||||
(n) Income taxes and uncertain tax positions | |||||||
Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the book and tax bases of applicable assets and liabilities. Generally, deferred tax assets represent future income tax reductions while deferred tax liabilities represent income taxes that we expect to pay in the future. We measure deferred tax assets and liabilities using enacted tax rates for the years in which we expect temporary differences to be reversed or be settled. Changes in tax rates affect the carrying values of our deferred tax assets and liabilities, and the effects of any tax rate changes are recognized in the periods when they are enacted. The ultimate realization of our deferred tax assets depends upon generating sufficient future taxable income during the periods in which our temporary differences become deductible or before our net operating loss and tax credit carryforwards expire. | |||||||
We recognize the benefit of a tax position if that position will more likely than not be sustained in an audit, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax effect is recognized at the largest amount of the benefit that has greater than a fifty percent likelihood of being realized upon ultimate settlement. Liabilities created for unrecognized tax benefits are disclosed as a separate liability and not combined with deferred tax liabilities or assets. We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. Note (10) to these consolidated financial statements contains additional information regarding our income taxes. | |||||||
Revenue recognition | ' | ||||||
(o) Revenue recognition | |||||||
Sales are recognized when revenue is realized or realizable and has been earned. Sales and shipping terms vary among our customers, and as such, revenue is recognized when risk and title to the product transfer to the customer. Net sales revenue is comprised of gross revenues less estimates of expected returns, trade discounts and customer allowances, which include incentives such as cooperative advertising agreements and off-invoice markdowns. Such deductions are recorded and / or amortized during the period the related revenue is recognized. Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from net sales revenue reported in the consolidated financial statements. | |||||||
Consideration granted to customers | ' | ||||||
(p) Consideration granted to customers | |||||||
We offer our customers certain incentives in the form of cooperative advertising arrangements, volume rebates, product markdown allowances, trade discounts, cash discounts, slotting fees, and similar other arrangements. In instances where the customer provides us with proof of performance, reductions in amounts received from customers as a result of cooperative advertising programs are included in our consolidated statements of income in SG&A. Customer incentives included in SG&A were $16.45, $14.25 and $13.76 million for the fiscal years 2014, 2013 and 2012, respectively. | |||||||
Other reductions in amounts received from customers as a result of cooperative advertising programs are recorded as reductions of net sales revenue. Markdown allowances, slotting fees, trade discounts, cash discounts, and volume rebates are all recorded as reductions of net sales revenue. | |||||||
Advertising | ' | ||||||
(q) Advertising | |||||||
Advertising costs, including cooperative advertising discussed in (p) above, are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs, including amounts paid to customers for cooperative media and print advertising, of $46.29, $51.08 and $42.87 million during fiscal years 2014, 2013 and 2012, respectively. | |||||||
Shipping and handling revenues and expenses | ' | ||||||
(r) Shipping and handling revenues and expenses | |||||||
Shipping and handling expenses are included in our consolidated statements of income in SG&A. These expenses include distribution center costs, third-party logistics costs and outbound transportation costs. Our expenses for shipping and handling totaled $80.84, $83.81 and $74.42 million during fiscal years 2014, 2013 and 2012, respectively. We bill our customers for charges for shipping and handling on certain sales made directly to consumers and retail customers ordering relatively small dollar amounts of product. Such charges are recorded as a reduction of our shipping and handling expense and are not material in the aggregate. | |||||||
Foreign currency transactions and related derivative financial instruments | ' | ||||||
(s) Foreign currency transactions and related derivative financial instruments | |||||||
The U.S. Dollar is the functional currency for the Company and all its foreign subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income (loss). All our non-U.S. subsidiaries’ transactions involving other currencies have been re-measured in U.S. Dollars using average exchange rates for the months in which the transactions occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. We recorded net foreign exchange gains (losses), including the impact of currency hedges, of ($0.95), ($2.36) and ($0.67) million in SG&A and ($0.17), ($0.04) and $0.04 million in income tax expense during fiscal years 2014, 2013 and 2012, respectively. | |||||||
In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts to exchange foreign currencies for U.S. Dollars at specified rates. We account for these transactions as cash flow hedges, which requires these derivatives to be recorded on the balance sheet at their fair value and that changes in the fair value of the forward exchange contracts are recorded each period in our consolidated statements of income or other comprehensive income (loss), depending on the type of hedging instrument and the effectiveness of the hedges. All our current contracts are cash flow hedges and are adjusted to their fair market values at the end of each fiscal quarter. We evaluate all hedging transactions each quarter to determine that they are effective. Any ineffectiveness is recorded as part of SG&A in our consolidated statements of income. See Notes (11), (12) and (17) to these consolidated financial statements for a further discussion of our hedging activities. | |||||||
Share-based compensation plans | ' | ||||||
(t) Share-based compensation plans | |||||||
Stock options are recognized in the financial statements based on their fair values using an option pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. We estimate forfeitures for option awards at the dates of grant based on historical experience and revise as necessary if actual forfeitures significantly differ from these estimates. Share-based compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis over the requisite service period of the award. Restricted share-based compensation is recognized in the financial statements based on quoted fair values of the shares at the date of grant. See Note (15) to these consolidated financial statements for more information on our share-based compensation plans. | |||||||
Interest income | ' | ||||||
(u) Interest income | |||||||
Interest income is included in “Nonoperating income (expense), net” on the consolidated statements of income. Interest income totaled $0.07, $0.07 and $0.30 million in fiscal years 2014, 2013 and 2012, respectively. Interest income is normally earned on cash invested in short-term accounts, cash equivalents, and temporary and long-term investments. | |||||||
Earnings per share | ' | ||||||
(v) 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. In fiscal years 2014 and 2013, our securities that had dilutive effects consisted of outstanding options to purchase common stock and issued and contingently issuable unvested restricted share units and awards. In fiscal year 2012, our dilutive securities consisted entirely of outstanding options for common stock. See Notes (13) and (15) to these consolidated financial statements for more information regarding these restricted share units and awards. Options for common stock are excluded from the computation of diluted earnings per share if their effect is antidilutive. | |||||||
For fiscal years 2014, 2013 and 2012, the components of basic and diluted shares were as follows: | |||||||
WEIGHTED AVERAGE DILUTED SECURITIES | |||||||
(in thousands) | |||||||
Fiscal Years Ended the Last Day of February, | |||||||
2014 | 2013 | 2012 | |||||
Weighted average shares outstanding, basic | 32,007 | 31,754 | 31,340 | ||||
Incremental shares from share-based payment arrangements | 379 | 182 | 365 | ||||
Weighted average shares outstanding, diluted | 32,386 | 31,936 | 31,705 | ||||
Dilutive securities, as a result of in-the-money options | 488 | 278 | 522 | ||||
Dilutive securities, as a result of unvested or unsettled share awards due | 322 | 252 | - | ||||
Antidilutive securities, as a result of out-of-the-money options | 441 | 586 | 349 | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||
Feb. 28, 2014 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
Schedule of accrual for warranty returns | ' | ||||||
(in thousands) | |||||||
Last Day of February, | |||||||
2014 | 2013 | ||||||
Beginning balance | $ | 23,150 | $ | 26,665 | |||
Additions to the accrual | 28,281 | 35,723 | |||||
Reductions of the accrual - payments and credits issued | -32,162 | -39,238 | |||||
Ending balance | $ | 19,269 | $ | 23,150 | |||
Schedule of components of basic and diluted shares | ' | ||||||
(in thousands) | |||||||
Fiscal Years Ended the Last Day of February, | |||||||
2014 | 2013 | 2012 | |||||
Weighted average shares outstanding, basic | 32,007 | 31,754 | 31,340 | ||||
Incremental shares from share-based payment arrangements | 379 | 182 | 365 | ||||
Weighted average shares outstanding, diluted | 32,386 | 31,936 | 31,705 | ||||
Dilutive securities, as a result of in-the-money options | 488 | 278 | 522 | ||||
Dilutive securities, as a result of unvested or unsettled share awards due | 322 | 252 | - | ||||
Antidilutive securities, as a result of out-of-the-money options | 441 | 586 | 349 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
PROPERTY AND EQUIPMENT | ' | |||||
Schedule of property and equipment | ' | |||||
(in thousands) | ||||||
Estimated | ||||||
Useful Lives | Last Day of February, | |||||
(Years) | 2014 | 2013 | ||||
Land | - | $ | 12,800 | $ | 12,800 | |
Building and improvements | Mar-40 | 98,660 | 66,994 | |||
Computer, furniture and other equipment | 15-Mar | 60,291 | 58,284 | |||
Tools, molds and other production equipment | 10-Jan | 23,017 | 29,264 | |||
Construction in progress | - | 5,865 | 9,149 | |||
Property and equipment, gross | 200,633 | 176,491 | ||||
Less accumulated depreciation | -71,516 | -74,775 | ||||
Property and equipment, net | $ | 129,117 | $ | 101,716 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||||||||||||
Schedule of changes in goodwill and intangible assets by operating segment | ' | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balances at | Balances at | ||||||||||||||||||||||||||||||||||
Weighted | February 28, 2013 | Year Ended February 28, 2014 | February 28, 2014 | ||||||||||||||||||||||||||||||||
Average | Gross | Cumulative | Acquisition | Gross | Cumulative | ||||||||||||||||||||||||||||||
Life | Carrying | Goodwill | and Retirement | Carrying | Goodwill | Accumulated | Net Book | ||||||||||||||||||||||||||||
Description | (Years) | Amount | Impairments | Additions | Impairments | Adjustments | Amount | Impairments | Amortization | Value | |||||||||||||||||||||||||
Housewares: | |||||||||||||||||||||||||||||||||||
Goodwill | $ | 166,132 | $ | - | $ | - | $ | - | $ | - | $ | 166,132 | $ | - | $ | - | $ | 166,132 | |||||||||||||||||
Trademarks - indefinite | 75,200 | - | - | - | - | 75,200 | - | - | 75,200 | ||||||||||||||||||||||||||
Other intangibles - finite | 2.7 | 15,609 | - | 339 | - | -255 | 15,693 | - | -11,149 | 4,544 | |||||||||||||||||||||||||
Total Housewares | 256,941 | - | 339 | - | -255 | 257,025 | - | -11,149 | 245,876 | ||||||||||||||||||||||||||
Healthcare / Home Environment: | |||||||||||||||||||||||||||||||||||
Goodwill | 251,758 | - | - | - | - | 251,758 | - | - | 251,758 | ||||||||||||||||||||||||||
Trademarks - indefinite | 54,000 | - | - | - | - | 54,000 | - | - | 54,000 | ||||||||||||||||||||||||||
Licenses - finite | 3 | 15,300 | - | - | - | - | 15,300 | - | -6,416 | 8,884 | |||||||||||||||||||||||||
Other Intangibles - finite | 7.6 | 114,490 | - | - | - | - | 114,490 | - | -34,606 | 79,884 | |||||||||||||||||||||||||
Total Healthcare / Home Environment | 435,548 | - | - | - | - | 435,548 | - | -41,022 | 394,526 | ||||||||||||||||||||||||||
Personal Care: | |||||||||||||||||||||||||||||||||||
Goodwill | 81,841 | -46,490 | - | - | - | 81,841 | -46,490 | - | 35,351 | ||||||||||||||||||||||||||
Trademarks - indefinite | 75,803 | - | - | -12,049 | - | 63,754 | - | - | 63,754 | ||||||||||||||||||||||||||
Trademarks - finite | 14.6 | 150 | - | - | - | - | 150 | - | -77 | 73 | |||||||||||||||||||||||||
Licenses - indefinite | 10,300 | - | - | - | - | 10,300 | - | - | 10,300 | ||||||||||||||||||||||||||
Licenses - finite | 6.5 | 18,683 | - | - | - | - | 18,683 | - | -15,887 | 2,796 | |||||||||||||||||||||||||
Other intangibles - finite | 4 | 49,437 | - | - | - | - | 49,437 | - | -26,563 | 22,874 | |||||||||||||||||||||||||
Total Personal Care | 236,214 | -46,490 | - | -12,049 | - | 224,165 | -46,490 | -42,527 | 135,148 | ||||||||||||||||||||||||||
Total | $ | 928,703 | $ | -46,490 | $ | 339 | $ | -12,049 | $ | -255 | $ | 916,738 | $ | -46,490 | $ | -94,698 | $ | 775,550 | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balances at | Balances at | ||||||||||||||||||||||||||||||||||
Weighted | February 29, 2012 | Year Ended February 28, 2013 | February 28, 2013 | ||||||||||||||||||||||||||||||||
Average | Gross | Cumulative | Acquisition | Gross | Cumulative | ||||||||||||||||||||||||||||||
Life | Carrying | Goodwill | and Retirement | Carrying | Goodwill | Accumulated | Net Book | ||||||||||||||||||||||||||||
Description / Life | (Years) | Amount | Impairments | Additions | Impairments | Adjustments | Amount | Impairments | Amortization | Value | |||||||||||||||||||||||||
Housewares: | |||||||||||||||||||||||||||||||||||
Goodwill | $ | 166,132 | $ | - | $ | - | $ | - | $ | - | $ | 166,132 | $ | - | $ | - | $ | 166,132 | |||||||||||||||||
Trademarks - indefinite | 75,200 | - | - | - | - | 75,200 | - | - | 75,200 | ||||||||||||||||||||||||||
Other intangibles - finite | 3.7 | 15,774 | - | 278 | - | -443 | 15,609 | - | -10,070 | 5,539 | |||||||||||||||||||||||||
Total Housewares | 257,106 | - | 278 | - | -443 | 256,941 | - | -10,070 | 246,871 | ||||||||||||||||||||||||||
Healthcare / Home Environment: | |||||||||||||||||||||||||||||||||||
Goodwill | 250,867 | - | - | - | 891 | 251,758 | - | - | 251,758 | ||||||||||||||||||||||||||
Trademarks - indefinite | 54,000 | - | - | - | - | 54,000 | - | - | 54,000 | ||||||||||||||||||||||||||
Licenses - finite | 4 | 14,900 | - | - | - | 400 | 15,300 | - | -3,455 | 11,845 | |||||||||||||||||||||||||
Other Intangibles - finite | 8.6 | 114,790 | - | - | - | -300 | 114,490 | - | -23,220 | 91,270 | |||||||||||||||||||||||||
Total Healthcare / Home Environment | 434,557 | - | - | - | 991 | 435,548 | - | -26,675 | 408,873 | ||||||||||||||||||||||||||
Personal Care: | |||||||||||||||||||||||||||||||||||
Goodwill | 81,841 | -46,490 | - | - | - | 81,841 | -46,490 | - | 35,351 | ||||||||||||||||||||||||||
Trademarks - indefinite | 75,303 | - | 500 | - | - | 75,803 | - | - | 75,803 | ||||||||||||||||||||||||||
Trademarks - finite | 15.6 | 150 | - | - | - | - | 150 | - | -72 | 78 | |||||||||||||||||||||||||
Licenses - indefinite | 10,300 | - | - | - | - | 10,300 | - | - | 10,300 | ||||||||||||||||||||||||||
Licenses - finite | 7.2 | 19,564 | - | - | - | -881 | 18,683 | - | -15,570 | 3,113 | |||||||||||||||||||||||||
Other intangibles - finite | 5 | 49,437 | - | - | - | - | 49,437 | - | -20,957 | 28,480 | |||||||||||||||||||||||||
Total Personal Care | 236,595 | -46,490 | 500 | - | -881 | 236,214 | -46,490 | -36,599 | 153,125 | ||||||||||||||||||||||||||
Total | $ | 928,258 | $ | -46,490 | $ | 778 | $ | - | $ | -333 | $ | 928,703 | $ | -46,490 | $ | -73,344 | $ | 808,869 | |||||||||||||||||
Schedule of aggregate amortization expense of intangible assets | ' | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Aggregate Amortization Expense | |||||||||||||||||||||||||||||||||||
For the fiscal years ended | |||||||||||||||||||||||||||||||||||
February 2014 | $ | 21,612 | |||||||||||||||||||||||||||||||||
February 2013 | $ | 22,400 | |||||||||||||||||||||||||||||||||
February 2012 | $ | 20,069 | |||||||||||||||||||||||||||||||||
Schedule of estimated amortization expense of intangible assets | ' | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Estimated Amortization Expense | |||||||||||||||||||||||||||||||||||
For the fiscal years ended | |||||||||||||||||||||||||||||||||||
February 2015 | $ | 21,021 | |||||||||||||||||||||||||||||||||
February 2016 | $ | 20,838 | |||||||||||||||||||||||||||||||||
February 2017 | $ | 20,523 | |||||||||||||||||||||||||||||||||
February 2018 | $ | 16,704 | |||||||||||||||||||||||||||||||||
February 2019 | $ | 12,000 | |||||||||||||||||||||||||||||||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) (PUR) | 12 Months Ended | |||||
Feb. 28, 2014 | ||||||
PUR | ' | |||||
Acquisitions | ' | |||||
Schedule of net assets acquired | ' | |||||
PUR – NET ASSETS ACQUIRED ON DECEMBER 30, 2011 | ||||||
(in thousands) | ||||||
Supplier tooling advances | $ | 1,432 | ||||
Tools, dies, molds and other production equipment | 12,495 | |||||
Goodwill | 86,162 | |||||
Trademarks | 54,000 | |||||
Trademark and technology licensing agreements | 14,900 | |||||
Patents | 4,140 | |||||
Customer list | 18,600 | |||||
Covenant not to compete | 200 | |||||
Total assets acquired | 191,929 | |||||
Less: Deferred tax liabilities recorded at acquisition | (31,929 | ) | ||||
Net assets acquired | $ | 160,000 | ||||
SHORTTERM_DEBT_Tables
SHORT-TERM DEBT (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
SHORT-TERM DEBT | ' | ||||||||||
Schedule of interest rate on short-term debt | ' | ||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Average short-term debt (1) | $ | 29,680 | $ | 143,100 | $ | 94,060 | |||||
Average interest rate on short-term debt during each year (2) | 1.30% | 1.70% | 2.20% | ||||||||
Interest rate range during each year | 1.2%- 3.6% | 1.6% - 4.0% | 2.0% - 4.0% | ||||||||
Weighted average interest rate on short-term debt outstanding at year end | 0.00% | 1.60% | 2.10% | ||||||||
(1) Average short-term debt is computed as the average of the current and four prior quarters ending balances of our revolving credit facility. | |||||||||||
(2) The average interest rate on short-term debt during each year is computed by dividing the total interest expense associated with our revolving credit facility for a fiscal year by the average short-term debt outstanding for the same fiscal year. |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||||
Summary of accrued expenses and other current liabilities | ' | |||||||
(in thousands) | ||||||||
February 28, | February 28, | |||||||
2014 | 2013 | |||||||
Accrued compensation, benefits and payroll taxes | $ | 69,877 | $ | 34,265 | ||||
Accrued sales returns, discounts and allowances | 25,297 | 22,561 | ||||||
Accrued warranty returns | 19,269 | 23,150 | ||||||
Accrued advertising | 16,414 | 14,554 | ||||||
Accrued product liability, legal and professional fees | 5,705 | 9,061 | ||||||
Accrued royalties | 5,712 | 7,731 | ||||||
Accrued property, sales and other taxes | 6,835 | 5,729 | ||||||
Derivative liabilities, current | 1,596 | 3,044 | ||||||
Liability for uncertain tax positions | 453 | - | ||||||
Other | 5,530 | 13,968 | ||||||
Total accrued expenses and other current liabilities | $ | 156,688 | $ | 134,063 | ||||
OTHER_LIABILITIES_NONCURRENT_T
OTHER LIABILITIES, NONCURRENT (Tables) | 12 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
OTHER LIABILITIES, NONCURRENT | ' | |||||||||||||
Summary of other noncurrent liabilities | ' | |||||||||||||
(in thousands) | ||||||||||||||
February 28, | February 28, | |||||||||||||
2014 | 2013 | |||||||||||||
Deferred compensation liability | $ | 7,257 | $6,443 | |||||||||||
Liability for uncertain tax positions | 13,471 | 15,759 | ||||||||||||
Derivative liabilities | - | 1,780 | ||||||||||||
Other liabilites | 1,038 | 1,760 | ||||||||||||
Total other liabilities, noncurrent | $ | 21,766 | $25,742 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||||
Feb. 28, 2014 | |||||||||||||||
LONG-TERM DEBT | ' | ||||||||||||||
Summary of long-term debt | ' | ||||||||||||||
(dollars in thousands) | |||||||||||||||
Original | |||||||||||||||
Date | Interest | February 28, | February 28, | ||||||||||||
Borrowed | Rates | Matures | 2014 | 2013 | |||||||||||
$37.61 million unsecured loan with a state industrial development corporation, interim draws, interest is set and payable quarterly at the Base Rate, as defined below, plus a margin of up to 1.125%, or applicable LIBOR plus a margin of up to 2.125%, as determined by the interest rate elected. Loan subject to holder’s call on or after March 1, 2018. Loan can be prepaid without penalty any time after March 20, 2014. | 13-Mar | 1.16% | 23-Mar | $ | 37,607 | $ | - | ||||||||
$75 million unsecured floating interest rate 10 year Senior Notes. | 4-Jun | 6.01% | 14-Jun | 75,000 | 75,000 | ||||||||||
Interest set and payable quarterly at three month LIBOR plus 90 basis points. Principal is due in June 2014. Notes can be prepaid without penalty. (1) | |||||||||||||||
$100 million unsecured Senior Notes payable at a fixed interest rate of 3.90%. Interest payable semi-annually. Annual principal payments of $20 million begin in January 2014. Prepayment of notes are subject to a “make whole” premium. | 11-Jan | 3.90% | 18-Jan | 80,000 | 100,000 | ||||||||||
Total long-term debt | 192,607 | 175,000 | |||||||||||||
Less current maturities of long-term debt | (96,900 | ) | (20,000 | ) | |||||||||||
Long-term debt, excluding current maturities | $ | 95,707 | $ | 155,000 | |||||||||||
(1) Floating interest rates have been hedged with an interest rate swap to effectively fix interest rates. Additional | |||||||||||||||
information regarding the swap is provided in Note (12) to these consolidated financial statements. | |||||||||||||||
Summary of components of interest expense | ' | ||||||||||||||
(in thousands) | |||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Interest and commitment fees | $ | 5,609 | $ | 8,858 | $ | 7,670 | |||||||||
Deferred finance costs | 912 | 903 | 823 | ||||||||||||
Interest rate swap settlements, net | 3,672 | 3,584 | 4,424 | ||||||||||||
Total interest expense | $ | 10,193 | $ | 13,345 | $ | 12,917 | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of components of income before income tax expense | ' | ||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | $ | 38,147 | $ | 50,834 | $ | 26,445 | |||||
Non-U.S. | 68,987 | 84,680 | 99,647 | ||||||||
Total | $ | 107,134 | $ | 135,514 | $ | 126,092 | |||||
Schedule of components of income tax expense (benefit) | ' | ||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. | |||||||||||
Current | $ | 24,736 | $ | 26,369 | $ | 5,342 | |||||
Deferred | -9,021 | -8,776 | 4,630 | ||||||||
15,715 | 17,593 | 9,972 | |||||||||
Non-U.S. | |||||||||||
Current | 6,254 | 5,464 | 5,204 | ||||||||
Deferred | -1,083 | -3,209 | 542 | ||||||||
5,171 | 2,255 | 5,746 | |||||||||
Total | $ | 20,886 | $ | 19,848 | $ | 15,718 | |||||
Schedule of effective income tax rate reconciliation | ' | ||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Expected effective income tax rate at the U.S. statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
Impact of U.S. state income taxes and other | 2.20% | -0.20% | 1.50% | ||||||||
Decrease in income taxes resulting from income from non-U.S. operations | |||||||||||
subject to varying income tax rates | -9.30% | -11.40% | -13.60% | ||||||||
Effect of zero tax rate in Macau | -12.30% | -8.80% | -9.50% | ||||||||
Decrease in income taxes resulting from tax audit settlements | 0.00% | 0.00% | -0.90% | ||||||||
Effect of asset impairment charges, most of which are non-deductible | 3.90% | 0.00% | 0.00% | ||||||||
Effective income tax rate | 19.50% | 14.60% | 12.50% | ||||||||
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities | ' | ||||||||||
(in thousands) | |||||||||||
Last Day of February, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets, gross: | |||||||||||
Operating loss carryforwards | $ | 17,455 | $ | 21,385 | |||||||
Accounts receivable | 4,068 | 5,885 | |||||||||
Inventories | 8,528 | 8,648 | |||||||||
Accrued expenses and other | 20,307 | 10,600 | |||||||||
Foreign currency contracts, interest rate swaps and deferred exchange gains | 528 | 930 | |||||||||
Total gross deferred tax assets | 50,886 | 47,448 | |||||||||
Valuation allowance | -15,602 | -19,040 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and amortization | -60,670 | -62,807 | |||||||||
Total deferred tax assets (liabilities), net | $ | -25,386 | $ | -34,399 | |||||||
Schedule of composition of net operating loss carryforwards and the approximate future taxable income to be generated in order to utilize all carryforwards prior to their expiration | ' | ||||||||||
(in thousands) | |||||||||||
At February 28, 2014 | |||||||||||
Tax Year | Gross | Required | |||||||||
Expiration | Deferred Tax | Future Taxable | |||||||||
Date Range | Assets | Income | |||||||||
U.S. operating loss carryforwards | 2016 - 2032 | $ | 2,253 | $ | 8,991 | ||||||
Non-U.S. operating loss carryforwards with definite | |||||||||||
carryover periods | 2014 - 2029 | 4,063 | 32,368 | ||||||||
Non-U.S. operating loss carryforwards with indefinite | |||||||||||
carryover periods | Indefinite | 11,139 | 37,116 | ||||||||
Subtotals | 17,455 | 78,475 | |||||||||
Less portion of valuation allowance established for | |||||||||||
operating loss carryforwards | (12,695 | ) | -47,633 | ||||||||
Total | $ | 4,760 | $ | 30,842 | |||||||
Schedule of unrecognized tax benefits | ' | ||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | ||||||||||
Total unrecognized tax benefits, beginning balance | $ | 15,759 | $ | 13,213 | |||||||
Changes in tax positions taken during a prior period | 536 | 3,194 | |||||||||
Changes due to lapse in statute of limitations | -2,363 | -466 | |||||||||
Impact of foreign currency remeasurement on unrecognized tax benefits in the current period | 216 | -182 | |||||||||
Changes resulting from agreements with taxing authorities | -224 | - | |||||||||
Total unrecognized tax benefits, ending balance | 13,924 | 15,759 | |||||||||
Less current unrecognized tax benefits | -453 | - | |||||||||
Noncurrent unrecognized tax benefits | $ | 13,471 | $ | 15,759 | |||||||
Schedule of material tax years under examination or still subject to examination by major tax jurisdictions | ' | ||||||||||
As of February 28, 2014, tax years under examination or still subject to examination by material tax jurisdictions are as follows: | |||||||||||
Jurisdiction | Tax Years Under Examination | Open Tax Years | |||||||||
Mexico | 2008 | 2008 | - | 2013 | |||||||
United Kingdom | - None - | 2013 | - | 2014 | |||||||
United States * | 2003, 2007, 2008, 2011, 2012 | 2003, 2007, 2008, 2011 - 2014 | |||||||||
Switzerland | - None - | 2007 | - | 2014 | |||||||
Hong Kong | - None - | 2006 | - | 2014 | |||||||
France | 2007 - 2010 | 2007 | - | 2014 | |||||||
Hungary | 2005, 2006, 2009 | 2005, 2006, 2009 - 2014 | |||||||||
* Kaz, Inc. and its U.S. subsidiaries are under examination for the 2003, 2007 and 2008 tax years. Helen of Troy Texas Corporation and its subsidiaries are currently under examination for the 2011 and 2012 tax years. |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
FAIR VALUE | ' | ||||||||||
Schedule of fair value hierarchy of financial assets and liabilities carried at fair value and measured on a recurring basis | ' | ||||||||||
(in thousands) | |||||||||||
Quoted Prices in | Significant Other | ||||||||||
Active Markets | Observable | ||||||||||
Fair Values at | for Identical Assets | Market Inputs | |||||||||
Description | February 28, 2014 | (Level 1) | (Level 2) | ||||||||
Assets: | |||||||||||
Money market accounts | $ | 1,549 | $ | 1,549 | $ | - | |||||
Total assets | $ | 1,549 | $ | 1,549 | $ | - | |||||
Liabilities: | |||||||||||
Long-term debt - fixed rate (1) | $ | 83,951 | $ | - | $ | 83,951 | |||||
Long-term debt - floating rate | 112,607 | - | 112,607 | ||||||||
Interest rate swaps and foreign currency contracts | 1,596 | - | 1,596 | ||||||||
Total liabilities | $ | 198,154 | $ | - | $ | 198,154 | |||||
Quoted Prices in | Significant Other | ||||||||||
Active Markets | Observable | ||||||||||
Fair Values at | for Identical Assets | Market Inputs | |||||||||
Description | February 28, 2013 | (Level 1) | (Level 2) | ||||||||
Assets: | |||||||||||
Money market accounts | $ | 1,091 | $ | 1,091 | $ | - | |||||
Foreign currency contracts | 496 | - | 496 | ||||||||
Total assets | $ | 1,587 | $ | 1,091 | $ | 496 | |||||
Liabilities: | |||||||||||
Long-term debt - fixed rate (1) | $ | 105,725 | $ | - | $ | 105,725 | |||||
Long-term debt - floating rate | 75,000 | - | 75,000 | ||||||||
Interest rate swaps | 4,824 | - | 4,824 | ||||||||
Total liabilities | $ | 185,549 | $ | - | $ | 185,549 | |||||
(1) Debt values are reported at estimated fair value in these tables but are recorded in the accompanying consolidated | |||||||||||
balance sheets at the undiscounted value of remaining principal payments due. | |||||||||||
Schedule of reconciliation of other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||
(in thousands) | |||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | ||||||||||
Beginning balances | $ | 808,869 | $ | 829,500 | |||||||
Total gains / income (losses / expense): | |||||||||||
Included in net income - realized | -33,403 | (22,400 | ) | ||||||||
Acquired during the period | 339 | 778 | |||||||||
Acquisition adjustments and retirements during the period | -255 | 991 | |||||||||
Ending balances | $ | 775,550 | $ | 808,869 | |||||||
FINANCIAL_INSTRUMENTS_AND_RISK1
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ' | |||||||||||||||||||||||
Schedule of fair values of derivative instruments | ' | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
February 28, 2014 | ||||||||||||||||||||||||
Prepaid | Accrued | |||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||
Final | and Other | and Other | Other | |||||||||||||||||||||
Settlement | Notional | Current | Current | Liabilities, | ||||||||||||||||||||
Designated as hedging instruments | Hedge Type | Date | Amount | Assets | Liabilities | Noncurrent | ||||||||||||||||||
Foreign currency contracts - sell Euro | Cash flow | Jun-14 | € | 2,850 | $ | - | $ | 89 | $ | - | ||||||||||||||
Foreign currency contracts - sell Pounds | Cash flow | Nov-14 | £ | 4,250 | - | 280 | - | |||||||||||||||||
Interest rate swap | Cash flow | Jun-14 | $ | 75,000 | - | 1,227 | - | |||||||||||||||||
Total fair value | $ | - | $ | 1,596 | $ | - | ||||||||||||||||||
February 28, 2013 | ||||||||||||||||||||||||
Prepaid | Accrued | |||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||
Final | and Other | and Other | Other | |||||||||||||||||||||
Settlement | Notional | Current | Current | Liabilities, | ||||||||||||||||||||
Designated as hedging instruments | Hedge Type | Date | Amount | Assets | Liabilities | Noncurrent | ||||||||||||||||||
Foreign currency contracts - sell Euro | Cash flow | Oct-13 | € | 7,050 | $ | 239 | $ | - | $ | - | ||||||||||||||
Foreign currency contracts - sell Pounds | Cash flow | Nov-13 | £ | 3,000 | 257 | - | - | |||||||||||||||||
Interest rate swap | Cash flow | Jun-14 | $ | 75,000 | - | 3,044 | 1,780 | |||||||||||||||||
Total fair value | $ | 496 | $ | 3,044 | $ | 1,780 | ||||||||||||||||||
Schedule of pre-tax effect of derivative instruments | ' | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Fiscal Years Ended | ||||||||||||||||||||||||
Gain / (Loss) | Gain / (Loss) Reclassified | |||||||||||||||||||||||
Recognized in OCI | from Accumulated Other | Gain / (Loss) Recognized | ||||||||||||||||||||||
(effective portion) | Comprehensive Loss into Income | as Income (1) | ||||||||||||||||||||||
2014 | 2013 | Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||
Currency contracts - cash flow hedges | $ | -962 | $ | -132 | SG&A | $ | -98 | $ | -629 | SG&A | $ | - | $ | (44 | ) | |||||||||
Interest rate swaps - cash flow hedges | -111 | -103 | Interest expense | -3,707 | -3,833 | |||||||||||||||||||
Total | $ | -1,073 | $ | -235 | $ | -3,805 | $ | -4,462 | $ | - | $ | (44 | ) | |||||||||||
(1) The amounts shown represent the ineffective portion of the change in fair value of cash flow hedges. | ||||||||||||||||||||||||
Schedule of cash and cash equivalents | ' | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
February 28, 2014 | February 28, 2013 | |||||||||||||||||||||||
Carrying | Range of | Carrying | Range of | |||||||||||||||||||||
Amount | Interest Rates | Amount | Interest Rates | |||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Cash, interest and non-interest-bearing accounts - unrestricted | $ | 65,884 | 0.00 to 1.10% | $ | 9,568 | 0.00 to 1.30% | ||||||||||||||||||
Cash, interest and non-interest-bearing accounts - restricted | 2,594 | 0.00 to 0.50% | 2,183 | 0.00 to 0.75% | ||||||||||||||||||||
Money market funds | 1,549 | 0.30 to 0.80% | 1,091 | 0.35 to 0.37% | ||||||||||||||||||||
Total cash and cash equivalents | $ | 70,027 | $ | 12,842 | ||||||||||||||||||||
OTHER_COMMITMENTS_AND_CONTINGE1
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||
Summary of contractual obligations and commercial commitments | ' | ||||||||||||||||||||||
PAYMENTS DUE BY PERIOD - TWELVE MONTHS ENDED THE LAST DAY OF FEBRUARY: | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | After | ||||||||||||||||||
Total | 1 year | 2 years | 3 years | 4 years | 5 years | 5 years | |||||||||||||||||
Term debt - fixed rate | $ | 80,000 | $ | 20,000 | $ | 20,000 | $ | 20,000 | $ | 20,000 | $ | - | $ | - | |||||||||
Term debt - floating rate (1) | 112,607 | 76,900 | 1,900 | 3,800 | 5,700 | 1,900 | 22,407 | ||||||||||||||||
Long-term incentive plan payouts | 11,145 | 5,300 | 3,801 | 2,044 | - | - | - | ||||||||||||||||
Interest on fixed rate debt | 7,384 | 3,016 | 2,236 | 1,456 | 676 | - | - | ||||||||||||||||
Interest on floating rate debt (1) | 4,066 | 1,927 | 390 | 347 | 281 | 259 | 862 | ||||||||||||||||
Open purchase orders | 188,770 | 188,770 | - | - | - | - | - | ||||||||||||||||
Long-term purchase commitments | 2,957 | 836 | 606 | 606 | 606 | 303 | - | ||||||||||||||||
Minimum royalty payments | 78,632 | 12,689 | 12,731 | 12,545 | 9,674 | 9,488 | 21,505 | ||||||||||||||||
Advertising and promotional | 49,969 | 6,685 | 5,160 | 5,263 | 5,368 | 5,476 | 22,017 | ||||||||||||||||
Operating leases | 10,656 | 3,849 | 2,472 | 1,780 | 1,287 | 1,268 | - | ||||||||||||||||
Capital spending commitments | 423 | 423 | - | - | - | - | - | ||||||||||||||||
Total contractual obligations (2) | $ | 546,609 | $ | 320,395 | $ | 49,296 | $ | 47,841 | $ | 43,592 | $ | 18,694 | $ | 66,791 | |||||||||
(1) The Company uses an interest rate swap in conjunction with its unsecured floating rate, $75 million, Senior Notes due June 2014. The swap hedges the variable LIBOR rates used to reset the floating rates on these Senior Notes. The swap effectively fixes the interest rates on the Senior Notes due June 2014 at 6.01 percent. | |||||||||||||||||||||||
(2) In addition to the contractual obligations and commercial commitments in the table above, as of February 28, 2014, we have recorded a provision for uncertain tax positions of $13.92 million. We are unable to reliably estimate the timing of most of the future payments, if any, related to our uncertain tax positions; therefore, we have excluded these tax liabilities from the table above. |
REPURCHASE_OF_HELEN_OF_TROY_CO1
REPURCHASE OF HELEN OF TROY COMMON STOCK (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
REPURCHASE OF HELEN OF TROY COMMON STOCK | ' | ||||||||||
Schedule of repurchase of common stock | ' | ||||||||||
Fiscal Years Ended | |||||||||||
2014 | 2013 | 2012 | |||||||||
Common stock repurchased on the open market | |||||||||||
Number of shares | 33,862 | 61,426 | - | ||||||||
Aggregate market value of shares (in thousands) | $ | 1,311 | $ | 1,759 | $ | - | |||||
Average price per share | $ | 38.71 | $ | 28.64 | $ | - | |||||
Common stock received in settlement of share-based compensation | |||||||||||
Number of shares | 112,677 | 49,126 | 1,124,563 | ||||||||
Aggregate market value of shares (in thousands) | $ | 6,937 | $ | 1,627 | $ | 40,047 | |||||
Average price per share | $ | 61.57 | $ | 33.12 | $ | 35.61 | |||||
SHAREBASED_COMPENSATION_PLANS_
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||
Feb. 28, 2014 | |||||||||||||||
SHARE-BASED COMPENSATION PLANS | ' | ||||||||||||||
Schedule of share-based payment expense | ' | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Stock options | $ | 2,380 | $ | 2,298 | $ | 2,061 | |||||||||
Directors stock compensation | 619 | 473 | 531 | ||||||||||||
Performance based restricted stock awards (1) | 7,968 | 2,988 | - | ||||||||||||
Performance based restricted stock units (2) | 5,478 | - | - | ||||||||||||
CEO separation compensation (3) | 15,000 | - | - | ||||||||||||
Employee stock purchase plan | 424 | 296 | 336 | ||||||||||||
Share-based payment expense | 31,869 | 6,055 | 2,928 | ||||||||||||
Less income tax benefits | -5,709 | -858 | -99 | ||||||||||||
Share-based payment expense, net of income tax benefits | $ | 26,160 | $ | 5,197 | $ | 2,829 | |||||||||
Earnings per share impact of share based payment expense: | |||||||||||||||
Basic | $ | 0.82 | $ | 0.16 | $ | 0.09 | |||||||||
Diluted | $ | 0.81 | $ | 0.16 | $ | 0.09 | |||||||||
The table above includes the following awards recognized in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) RSAs of 159,666 for fiscal year 2013 with a fair value at the date of the award of $35.55 per share, vested and settled on February 28, 2014, and 62,304 RSAs for fiscal year 2014 with a fair value at the date of the award of $67.10 per share, vested on April 22, 2014. | |||||||||||||||
(2) Performance RSUs of 66,600 for fiscal year 2013 and 100,000 for fiscal year 2014, having a fair value at the date of each grant of $32.88. | |||||||||||||||
(3) $15 million in aggregate fair value of shares of common stock, to be settled on September 1, 2014 per the terms of the Separation Agreement with our former CEO. | |||||||||||||||
Schedule of assumptions used for fair value of stock option grants | ' | ||||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Range of risk free interest rates used | 0.6% - 1.3% | 0.1% - 0.9% | 0.6% - 1.5% | ||||||||||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||||||||||
Weighted average volatility rate | 38.80% | 51.40% | 52.50% | ||||||||||||
Range of expected volatility rates used | 34.0% - 41.7% | 45.7% - 55.3% | 51.4% - 65.9% | ||||||||||||
Range of expected terms used (in years) | 4.1 - 4.4 | 4.1 - 4.4 | 4.1 - 4.4 | ||||||||||||
Summary of option activity | ' | ||||||||||||||
(in thousands, except contractual term and per share data) | |||||||||||||||
Weighted | |||||||||||||||
Weighted | Weighted | Average | |||||||||||||
Average | Average | Remaining | |||||||||||||
Exercise | Grant Date | Contractual | |||||||||||||
Price | Fair Value | Term | Intrinsic | ||||||||||||
Options | (per share) | (per share) | (in years) | Value | |||||||||||
Outstanding at March 1, 2011 | 2,510 | $ | 17.64 | $ | 6.4 | 3.05 | $ | 26,054 | |||||||
Grants | 379 | 32.71 | 13.13 | ||||||||||||
Exercises | (1,907 | ) | 16.1 | 36,912 | |||||||||||
Forfeitures / expirations | (111 | ) | 27.91 | ||||||||||||
Outstanding at February 29, 2012 | 871 | 26.26 | 10.31 | 5.78 | 5,570 | ||||||||||
Grants | 309 | 34.57 | 14.09 | ||||||||||||
Exercises | (248 | ) | 22.88 | 2,634 | |||||||||||
Forfeitures / expirations | (68 | ) | 30.23 | ||||||||||||
Outstanding at February 28, 2013 | 864 | 29.89 | 11.98 | 6.26 | 6,209 | ||||||||||
Grants | 264 | 36.45 | 11.61 | ||||||||||||
Exercises | (239 | ) | 25.36 | 4,663 | |||||||||||
Forfeitures / expirations | (50 | ) | 33.55 | ||||||||||||
Outstanding at February 28, 2014 | 839 | $ | 33.03 | $ | 12.38 | 6.48 | $ | 27,081 | |||||||
Exercisable at February 28, 2014 | 111 | $ | 25.85 | $ | 10.05 | 4.06 | $ | 4,389 | |||||||
Schedule of unrecognized share-based compensation expense | ' | ||||||||||||||
(in thousands, except weighted average expense period data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Unrecognized | Period of | ||||||||||||||
Compensation | Recognition | ||||||||||||||
Expense | (in months) | ||||||||||||||
Stock options | $ | 6,127 | 30.9 | ||||||||||||
Stock Options | ' | ||||||||||||||
Share-based compensation plans | ' | ||||||||||||||
Schedule of non-vested option activity | ' | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Grant Date | |||||||||||||||
Non-Vested | Fair Value | ||||||||||||||
Options | (per share) | ||||||||||||||
Outstanding at March 1, 2011 | 496 | $ | 8.42 | ||||||||||||
Grants | 379 | 13.13 | |||||||||||||
Vested or forfeited | (258 | ) | 9.19 | ||||||||||||
Outstanding at February 29, 2012 | 617 | 10.99 | |||||||||||||
Grants | 309 | 14.09 | |||||||||||||
Vested or forfeited | (237 | ) | 10.29 | ||||||||||||
Outstanding at February 28, 2013 | 689 | 12.62 | |||||||||||||
Grants | 264 | 11.61 | |||||||||||||
Vested or forfeited | (225 | ) | 11.06 | ||||||||||||
Outstanding at February 28, 2014 | 728 | $ | 12.74 | ||||||||||||
Restricted Stock Units | ' | ||||||||||||||
Share-based compensation plans | ' | ||||||||||||||
Summary of award activity | ' | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Restricted | Grant Date | ||||||||||||||
Stock | Fair Value | Fair Value | |||||||||||||
Units | (per share) | Outstanding | |||||||||||||
Outstanding at March 1, 2012 | - | $ | - | $ | - | ||||||||||
Granted | 700 | 32.88 | |||||||||||||
Vested | - | - | |||||||||||||
Outstanding at February 28, 2013 | 700 | 32.88 | 25,956 | ||||||||||||
Vested (1) | (100 | ) | 32.88 | ||||||||||||
Forfeited (2) | (500 | ) | 32.88 | ||||||||||||
Outstanding at February 28, 2014 (3) | 100 | $ | 32.88 | $ | 6,531 | ||||||||||
The schedule above includes the following awards and forfeitures recognized in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) Includes 100,000 fiscal year 2013 Performance RSUs. 33,400 vested and settled on April 22, 2013 at a fair value of $35.55 per share and 66,600 vested and settled on February 28, 2014 at a fair value of $65.31 per share. | |||||||||||||||
(2) 500,000 Performance RSUs were forfeited. | |||||||||||||||
(3) Includes 100,000 fiscal year 2014 Performance RSUs, which were vested and settled on April 22, 2014 at a fair value of $67.10 per share. | |||||||||||||||
Restricted Stock Awards | ' | ||||||||||||||
Share-based compensation plans | ' | ||||||||||||||
Summary of award activity | ' | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Weighted | |||||||||||||||
Average | |||||||||||||||
Restricted | Grant Date | ||||||||||||||
Stock | Fair Value | Fair Value | |||||||||||||
Awards | (per share) | Outstanding | |||||||||||||
Due for issue at March 1, 2012 | - | $ | - | $ | - | ||||||||||
Earned (2) | 160 | 35.55 | |||||||||||||
Vested and issued | - | - | |||||||||||||
Due for Issue at February 28, 2013 (2) | 160 | $ | 35.55 | $ | 5,920 | ||||||||||
Earned (1) | 62 | 67.1 | |||||||||||||
Vested and issued | (160 | ) | 35.55 | ||||||||||||
Due for issue at February 28, 2014 (1) | 62 | $ | 67.1 | $ | 4,073 | ||||||||||
The schedule above includes the following awards earned based on fiscal years 2014 and 2013 performance and vested in accordance with the terms of our former CEO’s Employment and Separation Agreements: | |||||||||||||||
(1) Fiscal year 2014 RSAs, which vested on April 22, 2014. | |||||||||||||||
(2) Fiscal year 2013 RSAs, were vested on February 28, 2014. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
Schedule of changes in accumulated other comprehensive loss by component and related tax effects | ' | ||||||||||||
(in thousands) | |||||||||||||
Unrealized Holding Gains (Losses) | |||||||||||||
On Cash Flow Hedges | |||||||||||||
Foreign | |||||||||||||
Interest Rate | Currency | ||||||||||||
Swaps (1) | Contracts (2) | Total | |||||||||||
Balance at February 29, 2012 | $ | (5,559 | ) | $ | (30 | ) | $ | (5,589 | ) | ||||
Other comprehensive income before reclassification | (103 | ) | (132 | ) | (235 | ) | |||||||
Amounts reclassified out of accumulated other comprehensive income | 3,833 | 673 | 4,506 | ||||||||||
Tax effects | (1,306 | ) | (105 | ) | (1,411 | ) | |||||||
Other Comprehensive Income (Loss) | 2,424 | 436 | 2,860 | ||||||||||
Balance at February 28, 2013 | (3,135 | ) | 406 | (2,729 | ) | ||||||||
Other comprehensive income before reclassification | (111 | ) | (962 | ) | (1,073 | ) | |||||||
Amounts reclassified out of accumulated other comprehensive income | 3,707 | 98 | 3,805 | ||||||||||
Tax effects | (1,258 | ) | 164 | (1,094 | ) | ||||||||
Other Comprehensive Income (Loss) | 2,338 | (700 | ) | 1,638 | |||||||||
Balance at February 28, 2014 | $ | (797 | ) | $ | (294 | ) | $ | (1,091 | ) | ||||
(1) Includes net deferred tax benefits of $0.43 and $1.69 million at the end of fiscal years 2014 and 2013, respectively. | |||||||||||||
(2) Includes net deferred tax benefits (expense) of $0.08 and ($0.09) million at the end of fiscal years 2014 and 2013, | |||||||||||||
respectively. | |||||||||||||
Schedule of amounts reclassified out of accumulated other comprehensive income into the consolidated statements of income | ' | ||||||||||||
(in thousands) | |||||||||||||
Fiscal Years Ended the Last Day of February, | |||||||||||||
Comprehensive Income Components | 2014 | 2013 | 2012 | Income Statement Location | |||||||||
Unrealized holding gains (losses) on derivatives | |||||||||||||
Interest rate swaps | $ | 3,707 | $ | 3,833 | $ | 4,424 | Interest expense | ||||||
Foreign currency contracts | 98 | 673 | 307 | Selling, general and administrative expense | |||||||||
Total amounts reclassified | $ | 3,805 | $ | 4,506 | $ | 4,731 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
Schedule of selected unaudited quarterly financial data | ' | ||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
May | August | November | February | Total | |||||||||||||
Fiscal 2014: | |||||||||||||||||
Sales revenue, net | $ | 304,516 | $ | 319,387 | $ | 380,730 | $ | 312,520 | $ | 1,317,153 | |||||||
Gross profit | 120,165 | 123,255 | 147,701 | 125,582 | 516,703 | ||||||||||||
Asset impairment charges | 12,049 | - | - | - | 12,049 | ||||||||||||
Net income | 14,392 | 23,318 | 37,524 | 11,014 | 86,248 | ||||||||||||
Earnings per share (1) | |||||||||||||||||
Basic | 0.45 | 0.73 | 1.17 | 0.34 | 2.69 | ||||||||||||
Diluted | 0.45 | 0.72 | 1.16 | 0.34 | 2.66 | ||||||||||||
Fiscal 2013: | |||||||||||||||||
Sales revenue, net | $ | 300,211 | $ | 287,411 | $ | 374,599 | $ | 326,042 | $ | 1,288,263 | |||||||
Gross profit | 121,148 | 117,030 | 148,453 | 131,580 | 518,211 | ||||||||||||
Net income | 23,472 | 22,968 | 37,719 | 31,507 | 115,666 | ||||||||||||
Earnings per share (1) | |||||||||||||||||
Basic | 0.74 | 0.72 | 1.19 | 0.99 | 3.64 | ||||||||||||
Diluted | 0.74 | 0.72 | 1.18 | 0.98 | 3.62 | ||||||||||||
(1) Earnings per share calculations for each quarter are based on the weighted average number of shares outstanding for each period, and the sum of the quarterly amounts may not necessarily equal the annual earnings per share amounts. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Schedule of segment information | ' | |||||||||||||
(in thousands) | ||||||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2014 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 274,478 | $ | 568,075 | $ | 474,600 | $ | 1,317,153 | ||||||
Asset impairment charges | - | - | 12,049 | 12,049 | ||||||||||
Operating income | 50,828 | 20,764 | 45,508 | 117,100 | ||||||||||
Identifiable assets | 369,698 | 676,131 | 487,473 | 1,533,302 | ||||||||||
Capital and intangible asset expenditures | 851 | 22,934 | 16,678 | 40,463 | ||||||||||
Depreciation and amortization | 3,539 | 20,152 | 11,059 | 34,750 | ||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2013 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 259,042 | $ | 538,666 | $ | 490,555 | $ | 1,288,263 | ||||||
Operating income | 49,612 | 37,772 | 61,389 | 148,773 | ||||||||||
Identifiable assets | 362,378 | 645,586 | 466,040 | 1,474,004 | ||||||||||
Capital and intangible asset expenditures | 1,269 | 7,795 | 5,624 | 14,688 | ||||||||||
Depreciation and amortization | 4,903 | 17,417 | 13,008 | 35,328 | ||||||||||
Healthcare / | Personal | |||||||||||||
Fiscal Year 2012 | Housewares | Home Environment | Care | Total | ||||||||||
Sales revenue, net | $ | 237,376 | $ | 447,695 | $ | 496,605 | $ | 1,181,676 | ||||||
Operating income | 44,884 | 32,350 | 62,152 | 139,386 | ||||||||||
Identifiable assets | 362,045 | 619,369 | 454,309 | 1,435,723 | ||||||||||
Capital and intangible asset expenditures | 1,781 | 4,042 | 10,228 | 16,051 | ||||||||||
Depreciation and amortization | 6,672 | 12,502 | 11,004 | 30,178 | ||||||||||
Schedule of domestic and international net sales revenue and long-lived assets | ' | |||||||||||||
(in thousands) | ||||||||||||||
Fiscal Years Ended the Last Day of February, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
SALES REVENUE, NET: | ||||||||||||||
United States | $ | 1,019,525 | $ | 1,014,354 | $ | 906,884 | ||||||||
International | 297,628 | 273,909 | 274,812 | |||||||||||
Total | $ | 1,317,153 | $ | 1,288,263 | $ | 1,181,676 | ||||||||
LONG-LIVED ASSETS: | ||||||||||||||
United States | $ | 444,788 | $ | 515,411 | $ | 525,537 | ||||||||
International: | ||||||||||||||
Barbados | 324,399 | 398,340 | 406,213 | |||||||||||
Other international | 148,639 | 15,048 | 15,437 | |||||||||||
Subtotal | 473,038 | 413,388 | 421,650 | |||||||||||
Total | $ | 917,826 | $ | 928,799 | $ | 947,187 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |||
Feb. 28, 2014 | Feb. 29, 2012 | Feb. 28, 2013 | Feb. 28, 2011 | |
item | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ' | ' |
Common shares, par value (in dollars per share) | $0.10 | ' | $0.10 | ' |
Number of segments | 3 | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' |
Cash equivalents | $1,550,000 | ' | $1,090,000 | ' |
Trading securities and long-term marketable securities | ' | ' | ' | ' |
Realized and unrealized net losses attributable to trading and long-term marketable security investments | ' | 697,000 | ' | ' |
Par value of liquidation of auction rate securities | ' | ' | ' | $22,050,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 |
In Thousands, unless otherwise specified | reserve | Gross trade receivable | Gross trade receivable | Gross trade receivable | Gross trade receivable | Allowances for doubtful accounts | Allowances for doubtful accounts | Allowances for doubtful accounts | Allowances for doubtful accounts | Allowances for back-to-stock returns | Allowances for back-to-stock returns | Allowances for back-to-stock returns | Allowances for back-to-stock returns |
Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | ||||||||||
Two major customers | Two major customers | Five top customers | Five top customers | ||||||||||
customer | customer | customer | customer | ||||||||||
Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of receivables valuation reserves | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation reserve | ' | ' | ' | ' | ' | $2,127 | $1,764 | $1,811 | $2,108 | $2,552 | $3,267 | $3,730 | $2,040 |
Number of major customers | ' | 2 | 2 | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of concentration risk | ' | 10.00% | 17.00% | 44.00% | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ' |
General and administrative expenses charged to inventory | 36.23 | 30.28 | 18.74 |
General and administrative expenses directly attributable to the procurement of inventory included in inventory balances | 12.26 | 9.64 | ' |
Cost of goods sold | Supplier concentration risk | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Number of third-party manufacturers | 220 | ' | ' |
Cost of goods sold | Supplier concentration risk | Vendors in Far East | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Percentage of concentration risk | 67.00% | 66.00% | 78.00% |
Cost of goods sold | Supplier concentration risk | Top two manufacturers | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Number of third-party manufacturers | 2 | ' | ' |
Percentage of concentration risk | 14.00% | ' | ' |
Cost of goods sold | Supplier concentration risk | Top five suppliers | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Number of third-party manufacturers | 5 | ' | ' |
Percentage of concentration risk | 28.00% | ' | ' |
Net sales revenue | Net sales revenue subject to trademark license agreements | ' | ' | ' |
Summary of significant accounting policies | ' | ' | ' |
Percentage of concentration risk | 44.00% | 44.00% | 45.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
31-May-12 | 31-May-11 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | |
Minimum | Maximum | Patents | Trademarks - indefinite-lived | Trademarks - indefinite-lived | ||||||
Personal Care | Personal Care | |||||||||
Goodwill, intangible and other long-lived assets and impairments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash impairment charges | $0 | $0 | ' | ' | ' | ' | ' | ' | $12,050,000 | $12,049,000 |
Non-cash indefinite-lived intangible assets impairment charges, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 12,030,000 | 12,030,000 |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill deductible for tax purposes | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Economic useful lives and amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | '2 years | '30 years | '14 years | ' | ' |
Intangible asset amortization | ' | ' | $21,612,000 | $22,400,000 | $20,069,000 | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Accrual for warranty returns | ' | ' |
Beginning balance | $23,150 | $26,665 |
Additions to the accrual | 28,281 | 35,273 |
Reductions of the accrual - payments and credits issued | -32,162 | -39,238 |
Ending balance | $19,269 | $23,150 |
Minimum | ' | ' |
Warranties | ' | ' |
Product warranty period | '2 years | ' |
Maximum | ' | ' |
Warranties | ' | ' |
Product warranty period | '5 years | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
SG&A | ' | ' | ' |
Customer incentives in SG&A | $16.45 | $14.25 | $13.76 |
Advertising costs in SG&A | 46.29 | 51.08 | 42.87 |
Shipping and handling expenses in SG&A | 80.84 | 83.81 | 74.42 |
Foreign currency transactions and related derivative financial instruments | ' | ' | ' |
Net foreign exchange gains (losses), including the impact of currency hedges, in SG&A | -0.95 | -2.36 | -0.67 |
Net foreign exchange gains (losses), including the impact of currency hedges, in income tax expense | -0.17 | -0.04 | 0.04 |
Nonoperating income, net | ' | ' | ' |
Interest income | $0.07 | $0.07 | $0.30 |
Weighted average diluted securities | ' | ' | ' |
Weighted average shares outstanding, basic | 32,007 | 31,754 | 31,340 |
Incremental shares from share-based payment arrangements | 379 | 182 | 365 |
Weighted average shares outstanding, diluted | 32,386 | 31,936 | 31,705 |
Options | ' | ' | ' |
Dilutive securities, in-the-money and/or unvested | ' | ' | ' |
Antidilutive securities out-of-the-money (in shares) | 441 | 586 | 349 |
Options | ' | ' | ' |
Dilutive securities, in-the-money and/or unvested | ' | ' | ' |
Dilutive securities (in shares) | 488 | 278 | 522 |
Restricted stock | ' | ' | ' |
Dilutive securities, in-the-money and/or unvested | ' | ' | ' |
Dilutive securities (in shares) | 322 | 252 | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | $200,633,000 | $176,491,000 | ' |
Less accumulated depreciation | -71,516,000 | -74,775,000 | ' |
Property and equipment, net | 129,117,000 | 101,716,000 | ' |
Depreciation expense | 12,230,000 | 12,030,000 | 9,140,000 |
Capital expenditures for property and equipment | 40,120,000 | 13,610,000 | 15,380,000 |
Rent expense related to operating leases | 5,680,000 | 6,390,000 | 5,590,000 |
Olive Branch, Mississippi distribution facility | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Capital expenditures for property and equipment | 34,030,000 | 4,030,000 | ' |
Land | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | 12,800,000 | 12,800,000 | ' |
Land | Olive Branch, Mississippi distribution facility | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Area (in square feet or acres) | 84 | ' | ' |
Building and improvements | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | 98,660,000 | 66,994,000 | ' |
Building and improvements | Minimum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Building and improvements | Maximum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '40 years | ' | ' |
Building and improvements | Olive Branch, Mississippi distribution facility | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Area (in square feet or acres) | 1,300,000 | ' | ' |
Computer, furniture and other equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | 60,291,000 | 58,284,000 | ' |
Computer, furniture and other equipment | Minimum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Computer, furniture and other equipment | Maximum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '15 years | ' | ' |
Tools, molds and other production equipment | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | 23,017,000 | 29,264,000 | ' |
Tools, molds and other production equipment | Minimum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '1 year | ' | ' |
Tools, molds and other production equipment | Maximum | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Construction in progress | ' | ' | ' |
PROPERTY AND EQUIPMENT | ' | ' | ' |
Property and equipment, gross | $5,865,000 | $9,149,000 | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
31-May-12 | 31-May-11 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Personal Care | Housewares | Housewares | Housewares | Housewares | Housewares | Housewares | Housewares | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | Healthcare/Home Environment | ||||||
Trademarks - finite-lived | Trademarks - finite-lived | Licenses - finite-lived | Licenses - finite-lived | Other Intangibles - finite-lived | Other Intangibles - finite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | Licenses - indefinite-lived | Licenses - indefinite-lived | Licenses - indefinite-lived | Other Intangibles - finite-lived | Other Intangibles - finite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | Licenses - finite-lived | Licenses - finite-lived | Other Intangibles - finite-lived | Other Intangibles - finite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | Trademarks - indefinite-lived | ||||||||||||
Goodwill and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash indefinite-lived intangible assets impairment charges | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,050,000 | 12,049,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash indefinite-lived intangible assets impairment charges, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,030,000 | 12,030,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Life | ' | ' | ' | ' | ' | ' | ' | '14 years 7 months 6 days | '15 years 7 months 6 days | '6 years 6 months | '7 years 2 months 12 days | '4 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 8 months 12 days | '3 years 8 months 12 days | ' | ' | ' | ' | ' | '3 years | '4 years | '7 years 7 months 6 days | '8 years 7 months 6 days | ' | ' | ' |
Changes in Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Gross Carrying Amount, balance at the beginning of the period | ' | ' | ' | ' | ' | 81,841,000 | 81,841,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,132,000 | 166,132,000 | ' | ' | ' | ' | ' | 250,867,000 | 251,758,000 | ' | ' | ' | ' | ' | ' | ' |
Cumulative Goodwill Impairments, balance at the beginning of the period | -46,490,000 | ' | -46,490,000 | -46,490,000 | ' | -46,490,000 | -46,490,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Acquisition and Retirement Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 891,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Gross Carrying Amount, balance at the end of the period | ' | ' | ' | ' | ' | 81,841,000 | 81,841,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,132,000 | 166,132,000 | ' | ' | ' | ' | ' | 251,758,000 | 251,758,000 | ' | ' | ' | ' | ' | ' | ' |
Cumulative Goodwill Impairments, balance at the end of the period | ' | ' | -46,490,000 | -46,490,000 | -46,490,000 | -46,490,000 | -46,490,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Net Book Value | ' | ' | 453,241,000 | 453,241,000 | ' | 35,351,000 | 35,351,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,132,000 | 166,132,000 | ' | ' | ' | ' | ' | 251,758,000 | 251,758,000 | ' | ' | ' | ' | ' | ' | ' |
Changes in intangible assets - indefinite-lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,803,000 | 75,803,000 | 75,303,000 | 10,300,000 | 10,300,000 | 10,300,000 | ' | ' | ' | ' | 75,200,000 | 75,200,000 | 75,200,000 | ' | ' | ' | ' | ' | ' | 54,000,000 | 54,000,000 | 54,000,000 |
Intangible assets - indefinite-lived, Additions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets - indefinite-lived, Impairments | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,050,000 | -12,049,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,754,000 | 75,803,000 | 10,300,000 | 10,300,000 | 10,300,000 | ' | ' | ' | ' | 75,200,000 | 75,200,000 | 75,200,000 | ' | ' | ' | ' | ' | ' | 54,000,000 | 54,000,000 | 54,000,000 |
Changes in intangible assets - finite-lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | ' | ' | ' | ' | ' | ' | ' | 150,000 | 150,000 | 18,683,000 | 19,564,000 | 49,437,000 | 49,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | 15,609,000 | 15,774,000 | ' | ' | ' | ' | ' | 15,300,000 | 14,900,000 | 114,490,000 | 114,790,000 | ' | ' | ' |
Intangible assets - finite-lived, Additions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 339,000 | 278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets - finite-lived, Acquisition and Retirement Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -881,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -255,000 | -443,000 | ' | ' | ' | ' | ' | ' | 400,000 | ' | -300,000 | ' | ' | ' |
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | ' | ' | ' | ' | ' | ' | ' | 150,000 | 150,000 | 18,683,000 | 18,683,000 | 49,437,000 | 49,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | 15,693,000 | 15,609,000 | ' | ' | ' | ' | ' | 15,300,000 | 15,300,000 | 114,490,000 | 114,490,000 | ' | ' | ' |
Intangible assets - finite-lived, Accumulated Amortization | ' | ' | -94,698,000 | -73,344,000 | ' | -42,527,000 | -36,599,000 | -77,000 | -72,000 | -15,887,000 | -15,570,000 | -26,563,000 | -20,957,000 | ' | ' | ' | ' | ' | ' | -11,149,000 | -10,070,000 | -11,149,000 | -10,070,000 | ' | ' | ' | -26,675,000 | -41,022,000 | -6,416,000 | -3,455,000 | -34,606,000 | -23,220,000 | ' | ' | ' |
Intangible assets - finite-lived, Net Book Value | ' | ' | ' | ' | ' | ' | ' | 73,000 | 78,000 | 2,796,000 | 3,113,000 | 22,874,000 | 28,480,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,544,000 | 5,539,000 | ' | ' | ' | ' | ' | 8,884,000 | 11,845,000 | 79,884,000 | 91,270,000 | ' | ' | ' |
Goodwill and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount, balance at the beginning of the period | 928,258,000 | ' | 928,703,000 | 928,258,000 | ' | 236,214,000 | 236,595,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 256,941,000 | 257,106,000 | ' | ' | ' | ' | ' | 434,557,000 | 435,548,000 | ' | ' | ' | ' | ' | ' | ' |
Additions | ' | ' | 339,000 | 778,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 339,000 | 278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairments | ' | ' | -12,049,000 | ' | ' | -12,049,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition and Retirement Adjustments | ' | ' | -255,000 | -333,000 | ' | ' | -881,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -255,000 | -443,000 | ' | ' | ' | ' | ' | 991,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Carrying Amount, balance at the end of the period | ' | ' | 916,738,000 | 928,703,000 | 928,258,000 | 224,165,000 | 236,214,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 257,025,000 | 256,941,000 | ' | ' | ' | ' | ' | 435,548,000 | 435,548,000 | ' | ' | ' | ' | ' | ' | ' |
Net Book Value | ' | ' | 775,550,000 | 808,869,000 | ' | 135,148,000 | 153,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,876,000 | 246,871,000 | ' | ' | ' | ' | ' | 408,873,000 | 394,526,000 | ' | ' | ' | ' | ' | ' | ' |
Aggregate Amortization Expense | ' | ' | 21,612,000 | 22,400,000 | 20,069,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Feb-15 | ' | ' | 21,021,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Feb-16 | ' | ' | 20,838,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Feb-17 | ' | ' | 20,523,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Feb-18 | ' | ' | 16,704,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Feb-19 | ' | ' | $12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | Feb. 28, 2014 |
In Thousands, unless otherwise specified | |
Other commitments and contingencies | ' |
Obligations payable in 2015 | $320,395 |
Royalty payments | Minimum | ' |
Other commitments and contingencies | ' |
Obligations payable in 2015 | 12,689 |
License agreements | Royalty payments | Minimum | ' |
Other commitments and contingencies | ' |
Obligations payable in 2015 | 12,690 |
License agreements | Advertising | Minimum | ' |
Other commitments and contingencies | ' |
Obligations payable in 2015 | $5,060 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 |
PUR | PUR | PUR | PUR | PUR | PUR | PUR | PUR | PUR | PUR | PUR | PUR | |||
Patent | Customer Lists | Trademark and technology licensing agreements | Covenant not to compete | Trademarks - indefinite-lived | Level 3 measurements | Level 3 measurements | Level 3 measurements | Level 3 measurements | Level 3 measurements | Tools, dies, molds and other production equipment | ||||
Income and market approaches | Income and market approaches | Income and market approaches | Income and market approaches | Income and market approaches | ||||||||||
Intangible assets | Intangible assets | Intangible assets | Intangible assets | Intangible assets | ||||||||||
Patent | Patent | Customer Lists | Trademarks - indefinite-lived | |||||||||||
Minimum | Maximum | |||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock acquired | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net purchase price | ' | ' | $160,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill expected to be deductible for income tax purposes | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected weighted average lives of acquired finite-lived intangible assets | ' | ' | ' | '12 years 4 months 24 days | '15 years | '5 years 2 months 12 days | '2 years | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplier tooling advances | ' | ' | 1,432,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,495,000 |
Goodwill | 453,241,000 | 453,241,000 | 86,162,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | 4,140,000 | 18,600,000 | 14,900,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | 191,929,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Deferred tax liabilities recorded at acquisition | ' | ' | -31,929,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | $160,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 15.20% | ' | ' | ' | ' | ' |
Royalty rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | 7.00% | ' |
Customer attrition rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
SHORTTERM_DEBT_Details
SHORT-TERM DEBT (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 07, 2014 | Feb. 06, 2014 | Feb. 07, 2014 | Feb. 07, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Mar. 14, 2014 | |
Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Subsequent event | ||||
item | Period prior to fiscal year ending February 28, 2015 Compliance Certificate date | Period after fiscal year ending February 28, 2015 Compliance Certificate date | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Letter of credit | Dutch auction self tender | ||||||
Maximum | Maximum | item | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Credit Agreement | ||||||||||
Revolving Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured total revolving commitment | ' | ' | ' | ' | $375,000,000 | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage Ratio | ' | ' | ' | ' | ' | ' | 2.75 | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of alternative methods under which interest on borrowings accrue | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 280,000 | ' |
Amount available for borrowings | ' | ' | ' | 374,720,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average short-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 29,680,000 | 143,100,000 | 94,060,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate on short-term debt during each year (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.30% | 1.70% | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate range during each year (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% | 1.60% | 2.00% | 3.60% | 4.00% | 4.00% | ' | ' |
Weighted average interest rate on short-term debt outstanding at year end (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 1.60% | 2.10% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of prior quarters ending balances of revolving line of credit used for computing average short-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of borrowing | $107,300,000 | $234,650,000 | $1,369,850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | ' |
Accrued compensation, benefits and payroll taxes | $69,877 | $34,265 |
Accrued sales returns, discounts and allowances | 25,297 | 22,561 |
Accrued warranty returns | 19,269 | 23,150 |
Accrued advertising | 16,414 | 14,554 |
Accrued product liability, legal and professional fees | 5,705 | 9,061 |
Accrued royalties | 5,712 | 7,731 |
Accrued property, sales and other taxes | 6,835 | 5,729 |
Derivative liabilities, current | 1,596 | 3,044 |
Liability for uncertain tax positions | 453 | ' |
Other | 5,530 | 13,968 |
Total accrued expenses and other current liabilities | $156,688 | $134,063 |
OTHER_LIABILITIES_NONCURRENT_D
OTHER LIABILITIES, NONCURRENT (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
OTHER LIABILITIES, NONCURRENT | ' | ' |
Deferred compensation liability | $7,257 | $6,443 |
Liability for uncertain tax positions | 13,471 | 15,759 |
Derivative liabilities | ' | 1,780 |
Other liabilities | 1,038 | 1,760 |
Total other liabilities, noncurrent | $21,766 | $25,742 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Long-term debt | ' | ' |
Total long-term debt | $192,607,000 | $175,000,000 |
Less current maturities of long-term debt | -96,900,000 | -20,000,000 |
Long-term debt, excluding current maturities | 95,707,000 | 155,000,000 |
Unsecured state industrial development loan | ' | ' |
Long-term debt | ' | ' |
Interim draws | 37,610,000 | ' |
Interest rate (as a percent) | 1.16% | ' |
Total long-term debt | 37,607,000 | ' |
Unsecured state industrial development loan | Base Rate | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'Base rate | ' |
Unsecured state industrial development loan | Base Rate | Maximum | ' | ' |
Long-term debt | ' | ' |
Basis spread on variable rate (as percent) | 1.13% | ' |
Unsecured state industrial development loan | LIBOR | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'LIBOR | ' |
Unsecured state industrial development loan | LIBOR | Maximum | ' | ' |
Long-term debt | ' | ' |
Basis spread on variable rate (as percent) | 2.13% | ' |
Unsecured floating interest rate 10 year Senior Notes | ' | ' |
Long-term debt | ' | ' |
Face amount | 75,000,000 | ' |
Interest rate (as a percent) | 6.01% | ' |
Debt instrument term | '10 years | ' |
Variable Rate Basis | 'three-month LIBOR | ' |
Basis spread on variable rate (as percent) | 0.90% | ' |
Total long-term debt | 75,000,000 | 75,000,000 |
3.90% unsecured Senior Notes payable | ' | ' |
Long-term debt | ' | ' |
Face amount | 100,000,000 | ' |
Interest rate (as a percent) | 3.90% | ' |
Interest rate (as a percent) | 3.90% | ' |
Principal payments | 20,000,000 | ' |
Frequency of principal payment | 'Annual | ' |
Total long-term debt | $80,000,000 | $100,000,000 |
LONGTERM_DEBT_Details_2
LONG-TERM DEBT (Details 2) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 02, 2013 | Feb. 28, 2014 |
Unsecured state industrial development loan | ' | ' |
Long-term debt | ' | ' |
Outstanding principal payable on March 1, 2014 | ' | 1.9 |
Outstanding principal payable on March 1, 2015 | ' | 1.9 |
Outstanding principal payable on March 1, 2016 | ' | 3.8 |
Outstanding principal payable on March 1, 2017 | ' | 5.7 |
Outstanding principal payable on March 1, 2018 | ' | 1.9 |
Outstanding principal payable on March 1, 2019 | ' | 1.9 |
Outstanding principal payable on March 1, 2020 | ' | 1.9 |
Outstanding principal payable on March 1, 2021 | ' | 1.9 |
Outstanding principal payable on March 1, 2022 | ' | 1.9 |
Outstanding principal payable on March 1, 2023 | ' | 14.81 |
Unsecured state industrial development loan | Base Rate | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | ' | 'Base rate |
Unsecured state industrial development loan | LIBOR | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | ' | 'LIBOR |
Unsecured state industrial development loan | Maximum | Base Rate | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | ' | 1.13% |
Unsecured state industrial development loan | Maximum | LIBOR | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | ' | 2.13% |
MBFC | Maximum | ' | ' |
Long-term debt | ' | ' |
Taxable industrial development revenue bonds | 38 | ' |
Kaz USA | Unsecured state industrial development loan | After March 1, 2018 | ' | ' |
Long-term debt | ' | ' |
Beginning of redemption period | ' | 2-Mar-18 |
Notice period for prepayment of debt by Bank of America, N.A. | '90 days | ' |
Kaz USA | Unsecured state industrial development loan | Base Rate Loan | Base Rate | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'Base rate | ' |
Kaz USA | Unsecured state industrial development loan | Base Rate Loan | LIBOR | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'one-, two-, three-, or six-month LIBOR | ' |
Margin (as a percent) | 1.00% | ' |
Kaz USA | Unsecured state industrial development loan | Base Rate Loan | Federal Funds Rate | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'federal funds | ' |
Margin (as a percent) | 0.50% | ' |
Kaz USA | Unsecured state industrial development loan | Base Rate Loan | Bank of America's prime rate | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'prime rate of Bank of America | ' |
Kaz USA | Unsecured state industrial development loan | Eurodollar Rate Loans | LIBOR | ' | ' |
Long-term debt | ' | ' |
Variable Rate Basis | 'one-, two-, three-, or six-month LIBOR | ' |
Kaz USA | Unsecured state industrial development loan | Minimum | Base Rate Loan | Base Rate | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | 0.00% | ' |
Kaz USA | Unsecured state industrial development loan | Minimum | Eurodollar Rate Loans | LIBOR | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | 1.00% | ' |
Kaz USA | Unsecured state industrial development loan | Maximum | Base Rate Loan | Base Rate | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | 1.13% | ' |
Kaz USA | Unsecured state industrial development loan | Maximum | Eurodollar Rate Loans | LIBOR | ' | ' |
Long-term debt | ' | ' |
Margin (as a percent) | 2.13% | ' |
Kaz USA | MBFC | Unsecured state industrial development loan | ' | ' |
Long-term debt | ' | ' |
Interim draws | ' | 37.61 |
LONGTERM_DEBT_Details_3
LONG-TERM DEBT (Details 3) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Long-term debt | ' | ' | ' |
Limit on additional debt borrowings | $391,800,000 | ' | ' |
INTEREST EXPENSE | ' | ' | ' |
Interest and commitment fees | 5,609,000 | 8,858,000 | 7,670,000 |
Deferred finance costs | 912,000 | 903,000 | 823,000 |
Interest rate swap settlements, net | 3,672,000 | 3,584,000 | 4,424,000 |
Total interest expense | 10,193,000 | 13,345,000 | 12,917,000 |
Fixed rate Senior Notes | Fair value | ' | ' | ' |
Long-term debt | ' | ' | ' |
Long-term debt | 83,951,000 | 105,725,000 | ' |
Fixed rate Senior Notes | Fair value | Fair Value, Level 2 | ' | ' | ' |
Long-term debt | ' | ' | ' |
Long-term debt | 83,951,000 | 105,725,000 | ' |
Fixed rate Senior Notes | Fair value | Fair Value, Level 2 | Discounted cash flow analysis | ' | ' | ' |
Long-term debt | ' | ' | ' |
Long-term debt | 83,950,000 | ' | ' |
Fixed rate Senior Notes | Book value | ' | ' | ' |
Long-term debt | ' | ' | ' |
Long-term debt | $80,000,000 | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Components of income (loss) before income tax expense | ' | ' | ' |
U.S. | $38,147,000 | $50,834,000 | $26,445,000 |
Non-U.S. | 68,987,000 | 84,680,000 | 99,647,000 |
Income before income taxes | 107,134,000 | 135,514,000 | 126,092,000 |
U.S. | ' | ' | ' |
Current | 24,736,000 | 26,369,000 | 5,342,000 |
Deferred | -9,021,000 | -8,776,000 | 4,630,000 |
U.S. | 15,715,000 | 17,593,000 | 9,972,000 |
Non-U.S. | ' | ' | ' |
Current | 6,254,000 | 5,464,000 | 5,204,000 |
Deferred | -1,083,000 | -3,209,000 | 542,000 |
Non-U.S. | 5,171,000 | 2,255,000 | 5,746,000 |
Total | 20,886,000 | 19,848,000 | 15,718,000 |
Effective income tax rate reconciliation | ' | ' | ' |
Expected effective income tax rate at the U.S. statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Impact of U.S. state income taxes and other (as a percent) | 2.20% | -0.20% | 1.50% |
Decrease in income taxes resulting from income from non-U.S. operations subject to varying income tax rates (as a percent) | -9.30% | -11.40% | -13.60% |
Effect of zero tax rate in Macau (as a percent) | -12.30% | -8.80% | -9.50% |
Tax rate in Macau (as a percent) | 0.00% | 0.00% | 0.00% |
Decrease in income taxes resulting from tax audit settlements (as a percent) | 0.00% | 0.00% | -0.90% |
Effect of asset impairment charges, most of which are non-deductible (as a percent) | 3.90% | 0.00% | 0.00% |
Effective income tax rate (as a percent) | 19.50% | 14.60% | 12.50% |
Deferred tax assets, gross: | ' | ' | ' |
Operating loss carryforwards | 17,455,000 | 21,385,000 | ' |
Accounts receivable | 4,068,000 | 5,885,000 | ' |
Inventories | 8,528,000 | 8,648,000 | ' |
Accrued expenses and other | 20,307,000 | 10,600,000 | ' |
Foreign currency contracts, interest rate swaps, and deferred exchange gains | 528,000 | 930,000 | ' |
Total gross deferred tax assets | 50,886,000 | 47,448,000 | ' |
Valuation allowance | -15,602,000 | -19,040,000 | ' |
Deferred tax liabilities: | ' | ' | ' |
Depreciation and amortization | -60,670,000 | -62,807,000 | ' |
Total deferred tax assets (liabilities), net | -25,386,000 | -34,399,000 | ' |
Net decrease in valuation allowance | ($3,440,000) | ' | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
U.S. | Non-U.S. | Non-U.S. | ||||
Hungary | ||||||
Gross deferred tax assets | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards with definite carryover periods | ' | ' | ' | $2,253,000 | $4,063,000 | ' |
Operating loss carryforwards with indefinite carryover periods | ' | ' | ' | ' | 11,139,000 | ' |
Subtotals | 17,455,000 | 21,385,000 | ' | ' | ' | ' |
Less portion of valuation allowance established for operating loss carryforwards | -12,695,000 | ' | ' | ' | ' | ' |
Total | 4,760,000 | ' | ' | ' | ' | ' |
Required future taxable income | ' | ' | ' | ' | ' | ' |
Required future taxable income - operating loss carryforwards with definite carryover periods | ' | ' | ' | 8,991,000 | 32,368,000 | ' |
Required future taxable income - operating loss carryforwards with indefinite carryover periods | ' | ' | ' | ' | 37,116,000 | ' |
Subtotals | 78,475,000 | ' | ' | ' | ' | ' |
Less portion of valuation allowance established for operating loss carryforwards | -47,633,000 | ' | ' | ' | ' | ' |
Total | 30,842,000 | ' | ' | ' | ' | ' |
Income tax, other disclosures | ' | ' | ' | ' | ' | ' |
Decrease to income tax expense due to settlement agreement with respect to tax years | ' | ' | 1,130,000 | ' | ' | ' |
Unrecognized tax benefit recorded | ' | ' | ' | ' | ' | $2,990,000 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Unrecognized Tax Benefits | ' | ' | ' |
Total unrecognized tax benefits, beginning balance | $15,759,000 | $13,213,000 | ' |
Changes in tax positions taken during a prior period | 536,000 | 3,194,000 | ' |
Changes due to lapse in statute of limitations | -2,363,000 | -466,000 | ' |
Impact of foreign currency remeasurement on unrecognized tax benefits in the current period | 216,000 | -182,000 | ' |
Changes resulting from settlements with taxing authorities | -224,000 | ' | ' |
Total unrecognized tax benefits, ending balance | 13,924,000 | 15,759,000 | 13,213,000 |
Less current unrecognized tax benefits | -453,000 | ' | ' |
Noncurrent unrecognized tax benefits | 13,471,000 | 15,759,000 | ' |
Liability for tax-related interest expense included in unrecognized tax benefits | 2,660,000 | 2,450,000 | ' |
Liability for tax-related penalties included in unrecognized tax benefits | 1,480,000 | 1,430,000 | ' |
Tax-related interest and penalties expense included in provisions for income tax | $560,000 | $1,030,000 | $1,250,000 |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||
31-May-12 | 31-May-11 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | |
Personal Care | Personal Care | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Non-recurring | |||
Trademarks - indefinite-lived | Trademarks - indefinite-lived | Long-term debt - fixed rate | Long-term debt - fixed rate | Long-term debt - floating rate | Long-term debt - floating rate | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Fair Values | Fair Values | Fair Values | Fair Values | Fair Values | Fair Values | Fair Values | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Significant Other Observable Market Inputs (Level 2) | Personal Care | |||||
Long-term debt - fixed rate | Long-term debt - fixed rate | Long-term debt - floating rate | Long-term debt - floating rate | Discounted cash flow analysis | Discounted cash flow analysis | Foreign currency contracts | Interest rate swaps and foreign currency contracts | Interest rate swap | Money market accounts | Money market accounts | Money market accounts | Money market accounts | Foreign currency contracts | Interest rate swaps and foreign currency contracts | Interest rate swap | Trademarks - indefinite-lived | ||||||||||||||||||
Long-term debt - fixed rate | Long-term debt - fixed rate | |||||||||||||||||||||||||||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,549,000 | $1,091,000 | ' | ' | $1,549,000 | $1,091,000 | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 496,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 496,000 | ' | ' | ' |
Total assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,549,000 | 1,587,000 | ' | ' | ' | ' | ' | 1,549,000 | 1,091,000 | ' | ' | 496,000 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | 83,951,000 | 105,725,000 | 112,607,000 | 75,000,000 | ' | ' | 83,951,000 | 105,725,000 | 112,607,000 | 75,000,000 | 83,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,596,000 | 4,824,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,596,000 | 4,824,000 | ' |
Total liabilities | ' | ' | ' | ' | 198,154,000 | 185,549,000 | ' | ' | ' | ' | 198,154,000 | 185,549,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 1.83% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash impairment charges | 0 | 0 | 12,050,000 | 12,049,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,050,000 |
Non-cash impairment charges after tax | ' | ' | $12,030,000 | $12,030,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,030,000 |
FAIR_VALUE_Details_2
FAIR VALUE (Details 2) (Other Non-financial Assets, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Other Non-financial Assets | ' | ' |
Fair value measurement on non-recurring basis using significant unobservable inputs (Level 3) | ' | ' |
Beginning balances | $808,869 | $829,500 |
Total gains/income (losses/expense): | ' | ' |
Included in net income - realized | -33,403 | -22,400 |
Acquired during the period | 339 | 778 |
Acquisition adjustments and retirements during the period | -255 | 991 |
Ending balances | $775,550 | $808,869 |
FINANCIAL_INSTRUMENTS_AND_RISK2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) (Net sales revenue, Geographic concentration, International operations - transactions denominated in foreign currencies) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' |
Percentage of net sales revenue in foreign currencies | 14.70% | 14.70% | 15.60% |
FINANCIAL_INSTRUMENTS_AND_RISK3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Financial instruments and risk management | ' | ' | ' |
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps, in income tax expense | ($0.17) | ($0.04) | $0.04 |
Fixed rate Senior Notes | ' | ' | ' |
Financial instruments and risk management | ' | ' | ' |
Fixed rate debt | 80 | ' | ' |
Fixed interest rate (as a percent) | 3.90% | ' | ' |
Floating interest rate Senior Notes due June 2014 | ' | ' | ' |
Financial instruments and risk management | ' | ' | ' |
Senior Notes Bearing Variable Interest Amount | 75 | ' | ' |
Effective fixed interest rate on debt (as a percent) | 6.01% | ' | ' |
Unsecured state industrial development loan | ' | ' | ' |
Financial instruments and risk management | ' | ' | ' |
Debt instrument intermediate draws | 37.61 | ' | ' |
Effective fixed interest rate on debt (as a percent) | 1.16% | ' | ' |
Interest rate swap | Floating interest rate Senior Notes due June 2014 | ' | ' | ' |
Financial instruments and risk management | ' | ' | ' |
Aggregate notional principal amount | 75 | ' | ' |
Effective fixed interest rate on debt (as a percent) | 6.01% | ' | ' |
Derivative fixed interest rate (as a percent) | 5.11% | ' | ' |
Derivative variable rate (as a percent) | 0.25% | ' | ' |
Base rate, description | 'three-month LIBOR | ' | ' |
Percentage of change in floating interest rate offset by swap | 100.00% | ' | ' |
Effectiveness percentage of swap | 100.00% | ' | ' |
SG&A | ' | ' | ' |
Financial instruments and risk management | ' | ' | ' |
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | ($0.95) | ($2.36) | ($0.67) |
FINANCIAL_INSTRUMENTS_AND_RISK4
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 3) (Designated as cash flow hedging instruments) | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | Prepaid Expenses and Other Current Assets | Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities | Other Liabilities, Non-current | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap |
USD ($) | USD ($) | USD ($) | USD ($) | Euros | Euros | Pounds | Pounds | Sell | Sell | Sell | Sell | USD ($) | USD ($) | Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities | Other Liabilities, Non-current | |
Prepaid Expenses and Other Current Assets | Accrued Expenses and Other Current Liabilities | Prepaid Expenses and Other Current Assets | Accrued Expenses and Other Current Liabilities | Euros | Euros | Pounds | Pounds | USD ($) | USD ($) | USD ($) | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | GBP (£) | GBP (£) | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | € 2,850 | € 7,050 | £ 4,250 | £ 3,000 | $75,000 | $75,000 | ' | ' | ' |
Derivative assets | 496 | ' | ' | ' | 239 | ' | 257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | $1,596 | $3,044 | $1,780 | ' | $89 | ' | $280 | ' | ' | ' | ' | ' | ' | $1,227 | $3,044 | $1,780 |
FINANCIAL_INSTRUMENTS_AND_RISK5
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 4) (Cash flow hedges, USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Pre-tax effect of derivative instruments | ' | ' |
Gain/ (Loss) Recognized in OCI (effective portion) | ($1,073,000) | ($235,000) |
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | -3,805,000 | -4,462,000 |
Gain/ (Loss) Recognized as Income | ' | -44,000 |
Foreign currency | ' | ' |
Pre-tax effect of derivative instruments | ' | ' |
Gain/ (Loss) Recognized in OCI (effective portion) | -962,000 | -132,000 |
Losses recorded in accumulated other comprehensive loss to be reclassified into expense over the next nine months | 370,000 | ' |
Losses recorded in accumulated other comprehensive loss to be reclassified into expense, period of time to transfer | '9 months | ' |
Foreign currency | SG&A | ' | ' |
Pre-tax effect of derivative instruments | ' | ' |
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | -98,000 | -629,000 |
Gain/ (Loss) Recognized as Income | ' | -44,000 |
Interest rate swap | ' | ' |
Pre-tax effect of derivative instruments | ' | ' |
Gain/ (Loss) Recognized in OCI (effective portion) | -111,000 | -103,000 |
Losses recorded in accumulated other comprehensive loss to be reclassified into expense over the next nine months | 1,230,000 | ' |
Losses recorded in accumulated other comprehensive loss to be reclassified into expense, period of time to transfer | '9 months | ' |
Interest rate swap | Interest expense | ' | ' |
Pre-tax effect of derivative instruments | ' | ' |
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ($3,707,000) | ($3,833,000) |
FINANCIAL_INSTRUMENTS_AND_RISK6
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details 5) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Venezuela | Venezuela | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - unrestricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Cash, interest and non-interest-bearing accounts - restricted | Money market funds | Money market funds | Money market funds | Money market funds | Money market funds | Money market funds | |
VEF | USD ($) | USD ($) | USD ($) | Minimum | Minimum | Maximum | Maximum | USD ($) | USD ($) | Venezuela | Venezuela | Minimum | Minimum | Maximum | Maximum | USD ($) | USD ($) | Minimum | Minimum | Maximum | Maximum | |||||
USD ($) | USD ($) | |||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $70,027,000 | $12,842,000 | $21,846,000 | $27,193,000 | ' | ' | $65,884,000 | $9,568,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,549,000 | $1,091,000 | ' | ' | ' | ' |
Cash, interest and non-interest-bearing accounts - restricted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,594,000 | 2,183,000 | 2,590,000 | 2,180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash and cash equivalents | 70,027,000 | 12,842,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 1.10% | 1.30% | ' | ' | ' | ' | 0.00% | 0.00% | 0.50% | 0.75% | ' | ' | 0.30% | 0.35% | 0.80% | 0.37% |
Value of foreign currency before devaluation (in Bolivars per dollar) | ' | ' | ' | ' | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of foreign currency after devaluation (in dollars per Bolivar) | ' | ' | ' | ' | 6.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact of unfavorable foreign exchange rate | ' | ' | ' | ' | ' | $1,410,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OTHER_COMMITMENTS_AND_CONTINGE2
OTHER COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
Capital spending commitments | Long-term purchase commitments | Open purchase orders | Unsecured floating interest rate Senior Notes due June 2014 | Separation Agreement | Employment Contracts | Term debt - fixed rate | Term debt - floating rate | Long-term incentive plan payouts | Interest on fixed rate debt | Interest on floating rate debt | Royalty payments | Advertising and promotional | Operating leases | |||
Former CEO | Minimum | |||||||||||||||
Other commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge for accrued payment required under agreement (after tax) | ' | ' | ' | ' | ' | ' | $16,340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate commitment | ' | ' | ' | ' | ' | ' | ' | 7,680,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Employment contract term | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual obligations and commercial commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 546,609,000 | ' | 423,000 | 2,957,000 | 188,770,000 | ' | ' | ' | 80,000,000 | 112,607,000 | 11,145,000 | 7,384,000 | 4,066,000 | 78,632,000 | 49,969,000 | 10,656,000 |
2015, 1 year | 320,395,000 | ' | 423,000 | 836,000 | 188,770,000 | ' | ' | ' | 20,000,000 | 76,900,000 | 5,300,000 | 3,016,000 | 1,927,000 | 12,689,000 | 6,685,000 | 3,849,000 |
2016, 2 years | 49,296,000 | ' | ' | 606,000 | ' | ' | ' | ' | 20,000,000 | 1,900,000 | 3,801,000 | 2,236,000 | 390,000 | 12,731,000 | 5,160,000 | 2,472,000 |
2017, 3 years | 47,841,000 | ' | ' | 606,000 | ' | ' | ' | ' | 20,000,000 | 3,800,000 | 2,044,000 | 1,456,000 | 347,000 | 12,545,000 | 5,263,000 | 1,780,000 |
2018, 4 years | 43,592,000 | ' | ' | 606,000 | ' | ' | ' | ' | 20,000,000 | 5,700,000 | ' | 676,000 | 281,000 | 9,674,000 | 5,368,000 | 1,287,000 |
2019, 5 years | 18,694,000 | ' | ' | 303,000 | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | 259,000 | 9,488,000 | 5,476,000 | 1,268,000 |
After 5 years | 66,791,000 | ' | ' | ' | ' | ' | ' | ' | ' | 22,407,000 | ' | ' | 862,000 | 21,505,000 | 22,017,000 | ' |
Face amount | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective fixed interest rate on debt (as a percent) | ' | ' | ' | ' | ' | 6.01% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for uncertain tax position | $13,471,000 | $15,759,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REPURCHASE_OF_HELEN_OF_TROY_CO2
REPURCHASE OF HELEN OF TROY COMMON STOCK (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||
Feb. 06, 2014 | Feb. 10, 2014 | Feb. 05, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 29, 2012 | 31-May-13 | Feb. 28, 2014 | Mar. 14, 2014 | |
February 6, 2014 Share Repurchase Program | Dutch auction self tender | Prior share repurchase authorizations | Open market transactions | Open market transactions | Equity compensation plans | Equity compensation plans | Equity compensation plans | Equity compensation plans | Equity compensation plans | Equity compensation plans | Subsequent event | |
Stock options | Performance-based | Performance-based | Dutch auction self tender | |||||||||
Former CEO | Restricted stock awards and units | Restricted stock awards and units | ||||||||||
Former CEO | Former CEO | |||||||||||
Separation Agreement | ||||||||||||
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of shares authorized for purchase | $550,000,000 | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Previous share repurchase program, remaining number of shares that could be repurchased | ' | ' | 2,907,637 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased and retired (in shares) | ' | ' | ' | 33,862 | 61,426 | 112,677 | 49,126 | 1,124,563 | 1,016,227 | 9,898 | 92,683 | 3,693,816 |
Common stock repurchased and retired, total purchase price or aggregate market value | ' | ' | ' | $1,311,000 | $1,759,000 | $6,937,000 | $1,627,000 | $40,047,000 | $36,520,000 | $350,000 | $6,050,000 | $245,640,000 |
Average price per share (in dollars per share) | ' | ' | ' | $38.71 | $28.64 | $61.57 | $33.12 | $35.61 | $35.93 | ' | ' | $66.50 |
Stock options exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,625,000 | ' | ' | ' |
SHAREBASED_COMPENSATION_PLANS_1
SHARE-BASED COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Aug. 24, 2008 | Feb. 28, 2014 | Aug. 24, 2008 | Aug. 24, 2008 | Aug. 24, 2008 | Aug. 24, 2008 | Aug. 24, 2008 | Jun. 05, 2005 | Jun. 05, 2005 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Mar. 02, 2012 | Apr. 22, 2014 | Feb. 28, 2014 | Apr. 22, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
item | SG&A | SG&A | SG&A | Former CEO | Stock options | Stock options | Stock options | Stock compensation | Directors | Directors | Directors | Performance-based | Performance-based | Performance-based | 1998 Plan | 1998 Plan | 1998 Plan | 1998 Plan | 1998 Plan | 1998 Plan | 1998 Plan | 1995 Directors' Plan | 1995 Directors' Plan | 1995 Directors' Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Directors Plan | 2008 Directors Plan | 2008 Directors Plan | 2008 Directors Plan | 2008 Stock Purchase Plan | 2008 Stock Purchase Plan | 2008 Stock Purchase Plan | 2008 Stock Purchase Plan | 2008 Stock Purchase Plan | 2008 Stock Purchase Plan | |||
Separation Agreement | SG&A | SG&A | SG&A | Former CEO | Stock compensation | Stock compensation | Stock compensation | Restricted Stock Award | Restricted Stock Award | RSUs | Stock options | Stock options | Stock options | Vesting period one | Vesting period two | Vesting period three | Stock options | Stock options | Stock options | Stock options | Stock options | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | Restricted Stock Award | Restricted Stock Award | Restricted Stock Award | SG&A | SG&A | SG&A | ||||||||||||||
SG&A | SG&A | SG&A | SG&A | SG&A | SG&A | SG&A | Minimum | Maximum | Stock options | Stock options | Stock options | Minimum | Maximum | Former CEO | Former CEO | Grant as of February 28, 2013 | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | ||||||||||||||||||||||||||||||
Separation Agreement | Former CEO | Former CEO | Grant on March 1, 2012 | Grant on March 1, 2012 | Grant on March 1, 2012 | Grant on March 1, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Former CEO | Former CEO | Former CEO | Former CEO | ||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION PLANS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of expired share-based compensation plans | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of active share-based compensation plans | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock covered for issuance under share-based compensation plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,750,000 | ' | ' | ' | ' | ' | ' | 980,000 | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000 | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '4 years | '5 years | ' | '1 year | ' | ' | ' | '4 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | '10 years | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,100 | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | 788,831 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of awards granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,000 | 160,000 | 62,304 | 159,666 | ' | ' | 700,000 | 700,000 | ' | ' | ' | ' | ' | 10,512 | 10,512 | 18,000 | ' | ' | ' | ' | ' | ' |
Fair values at the date of grant of awards granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $67.10 | $35.55 | $67.10 | $35.55 | ' | ' | $32.88 | $32.88 | ' | ' | ' | ' | ' | $41.26 | $31.54 | $29.48 | ' | ' | ' | ' | ' | ' |
Share-based compensation plans disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units/awards outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,000 | 160,000 | ' | ' | ' | 100,000 | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative number of shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,624 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum withholding percentage of employee wages or salaries for the purchase of shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Purchase price for shares acquired under the plan as a percentage of the share's fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Shares of common stock acquired by plan participants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,328 | 39,728 | 41,868 | ' | ' | ' |
Price of common stock acquired by plan participants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32.66 | $26.68 | $24.17 | ' | ' | ' |
Number of shares available for future issue under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,350,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,376 | ' | ' | ' | 158,213 | ' | ' | ' | ' | ' |
SHARE-BASED PAYMENT EXPENSE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment expense | ' | ' | ' | $31,869,000 | $6,055,000 | $2,928,000 | ' | $2,380,000 | $2,298,000 | $2,061,000 | $15,000,000 | $619,000 | $473,000 | $531,000 | $7,968,000 | $2,988,000 | $5,478,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $424,000 | $296,000 | $336,000 |
Less income tax benefits | -5,709,000 | -858,000 | -99,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment expense, net of income tax benefits | 26,160,000 | 5,197,000 | 2,829,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per share impact of share-based payment expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.82 | $0.16 | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | $0.81 | $0.16 | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of awards vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160,000 | ' | ' | ' | 159,666 | 100,000 | ' | ' | 100,000 | 66,600 | 33,400 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested in period, fair value at the date of grant of the award (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35.55 | ' | ' | ' | ' | $32.88 | ' | ' | $32.88 | $32.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock to be issued in connection with settlement of separation compensation | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_PLANS_2
SHARE-BASED COMPENSATION PLANS (Details 2) (Stock options) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
ASSUMPTIONS USED FOR FAIR VALUE OF STOCK OPTION GRANTS | ' | ' | ' |
Range of risk free interest rates used, minimum (as a percent) | 0.60% | 0.10% | 0.60% |
Range of risk free interest rates used, maximum (as a percent) | 1.30% | 0.90% | 1.50% |
Expected dividend rate (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average volatility rate (as a percent) | 38.80% | 51.40% | 52.50% |
Range of expected volatility rates used, minimum (as a percent) | 34.00% | 45.70% | 51.40% |
Range of expected volatility rates used, maximum (as a percent) | 41.70% | 55.30% | 65.90% |
Minimum | ' | ' | ' |
ASSUMPTIONS USED FOR FAIR VALUE OF STOCK OPTION GRANTS | ' | ' | ' |
Expected terms used | '4 years 1 month 6 days | '4 years 1 month 6 days | '4 years 1 month 6 days |
Maximum | ' | ' | ' |
ASSUMPTIONS USED FOR FAIR VALUE OF STOCK OPTION GRANTS | ' | ' | ' |
Expected terms used | '4 years 4 months 24 days | '4 years 4 months 24 days | '4 years 4 months 24 days |
SHAREBASED_COMPENSATION_PLANS_3
SHARE-BASED COMPENSATION PLANS (Details 3) (Stock options, USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 |
Stock options | ' | ' | ' | ' |
Options | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 864,000 | 871,000 | 2,510,000 | ' |
Grants (in shares) | 264,000 | 309,000 | 379,000 | ' |
Exercises (in shares) | -239,000 | -248,000 | -1,907,000 | ' |
Forfeitures / expirations (in shares) | -50,000 | -68,000 | -111,000 | ' |
Outstanding at the end of the period (in shares) | 839,000 | 864,000 | 871,000 | 2,510,000 |
Exercisable at the end of the period (in shares) | 111,000 | ' | ' | ' |
Weighted Average Exercise price (per share) | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $29.89 | $26.26 | $17.64 | ' |
Grants (in dollars per share) | $36.45 | $34.57 | $32.71 | ' |
Exercises (in dollars per share) | $25.36 | $22.88 | $16.10 | ' |
Forfeitures / expirations (in dollars per share) | $33.55 | $30.23 | $27.91 | ' |
Outstanding at the end of the period (in dollars per share) | $33.03 | $29.89 | $26.26 | $17.64 |
Exercisable at the end of the period (in dollars per share) | $25.85 | ' | ' | ' |
Weighted Average Grant Date Fair Value (per share) | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $11.98 | $10.31 | $6.40 | ' |
Grants (in dollars per share) | $11.61 | $14.09 | $13.13 | ' |
Outstanding at the end of the period (in dollars per share) | $12.38 | $11.98 | $10.31 | $6.40 |
Exercisable at the end of the period (in dollars per share) | $10.05 | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding at the beginning of the period | '6 years 5 months 23 days | '6 years 3 months 4 days | '5 years 9 months 11 days | '3 years 18 days |
Outstanding at the end of the period | '6 years 5 months 23 days | '6 years 3 months 4 days | '5 years 9 months 11 days | '3 years 18 days |
Exercisable at the end of the period | '4 years 22 days | ' | ' | ' |
Intrinsic Value | ' | ' | ' | ' |
Outstanding at the beginning of the period | $6,209 | $5,570 | $26,054 | ' |
Exercises | 4,663 | 2,634 | 36,912 | ' |
Outstanding at the end of the period | 27,081 | 6,209 | 5,570 | 26,054 |
Exercisable | $4,389 | ' | ' | ' |
SHAREBASED_COMPENSATION_PLANS_4
SHARE-BASED COMPENSATION PLANS (Details 4) (Stock options, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Stock options | ' | ' | ' |
Non-Vested Options | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 689 | 617 | 496 |
Grants (in shares) | 264 | 309 | 379 |
Vested or forfeited (in shares) | -225 | -237 | -258 |
Outstanding at the end of the period (in shares) | 728 | 689 | 617 |
Weighted Average Grant Date Fair Value (per share) | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $12.62 | $10.99 | $8.42 |
Grants (in dollars per share) | $11.61 | $14.09 | $13.13 |
Vested or forfeited (in dollars per share) | $11.06 | $10.29 | $9.19 |
Outstanding at the end of the period (in dollars per share) | $12.74 | $12.62 | $10.99 |
SHAREBASED_COMPENSATION_PLANS_5
SHARE-BASED COMPENSATION PLANS (Details 5) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Mar. 02, 2012 | Apr. 22, 2014 | Feb. 28, 2014 | Apr. 22, 2013 | Feb. 28, 2014 |
Stock options | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | |
Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | Performance-based | ||
Former CEO | Former CEO | Grant as of February 28, 2013 | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | ||||
Former CEO | Former CEO | Grant on March 1, 2012 | Grant on March 1, 2012 | Grant on March 1, 2012 | Grant on March 1, 2012 | ||||||||
Former CEO | Former CEO | Former CEO | Former CEO | ||||||||||
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | 160,000 | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' |
Granted/Earned (in shares) | ' | 62,000 | 160,000 | 62,304 | 159,666 | ' | ' | 700,000 | 700,000 | ' | ' | ' | ' |
Vested (in shares) | ' | -160,000 | ' | ' | ' | -159,666 | -100,000 | ' | ' | -100,000 | -66,600 | -33,400 | -100,000 |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | -500,000 | ' | ' | ' | ' | ' | -500,000 |
Outstanding at the end of the period (in shares) | ' | 62,000 | 160,000 | ' | ' | ' | 100,000 | 700,000 | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | $35.55 | ' | ' | ' | ' | $32.88 | ' | ' | ' | ' | ' | ' |
Granted / Earned (in dollars per share) | ' | $67.10 | $35.55 | $67.10 | $35.55 | ' | ' | $32.88 | $32.88 | ' | ' | ' | ' |
Vested (in dollars per share) | ' | $35.55 | ' | ' | ' | ' | $32.88 | ' | ' | $32.88 | $32.88 | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | $32.88 | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | $67.10 | $35.55 | ' | ' | ' | $32.88 | $32.88 | ' | ' | ' | ' | ' |
Fair Value Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period | ' | $5,920 | ' | ' | ' | ' | $25,956 | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | 4,073 | 5,920 | ' | ' | ' | 6,531 | 25,956 | ' | ' | ' | ' | ' |
Vested and settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value at date vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $67.10 | $65.31 | $35.55 | ' |
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Compensation Expense | $6,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Period of Recognition | '30 months 27 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEFINED_CONTRIBUTION_PLANS_Det
DEFINED CONTRIBUTION PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
DEFINED CONTRIBUTION PLANS | ' | ' | ' |
Total matching contributions to saving plans | $2.89 | $2.60 | $2.37 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | ' | ' | ' |
Balance at the beginning of the period | ($2,729,000) | ($5,589,000) | ' |
Other Comprehensive Income before Reclassification | -1,073,000 | -235,000 | ' |
Amounts Reclassified out of accumulated other comprehensive income | 3,805,000 | 4,506,000 | ' |
Tax effects | -1,094,000 | -1,411,000 | -1,019,000 |
Other Comprehensive Income / (Loss) | 1,638,000 | 2,860,000 | 2,261,000 |
Balance at the end of the period | -1,091,000 | -2,729,000 | -5,589,000 |
Net deferred tax benefits | 528,000 | 930,000 | ' |
Unrealized Holding Gains (Losses) On Cash Flow Hedges | Interest Rate Swaps | ' | ' | ' |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | ' | ' | ' |
Balance at the beginning of the period | -3,135,000 | -5,559,000 | ' |
Other Comprehensive Income before Reclassification | -111,000 | -103,000 | ' |
Amounts Reclassified out of accumulated other comprehensive income | 3,707,000 | 3,833,000 | ' |
Tax effects | -1,258,000 | -1,306,000 | ' |
Other Comprehensive Income / (Loss) | 2,338,000 | 2,424,000 | ' |
Balance at the end of the period | -797,000 | -3,135,000 | ' |
Net deferred tax benefits | 430,000 | 1,690,000 | ' |
Unrealized Holding Gains (Losses) On Cash Flow Hedges | Foreign Currency Contracts | ' | ' | ' |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | ' | ' | ' |
Balance at the beginning of the period | 406,000 | -30,000 | ' |
Other Comprehensive Income before Reclassification | -962,000 | -132,000 | ' |
Amounts Reclassified out of accumulated other comprehensive income | 98,000 | 673,000 | ' |
Tax effects | 164,000 | -105,000 | ' |
Other Comprehensive Income / (Loss) | -700,000 | 436,000 | ' |
Balance at the end of the period | -294,000 | 406,000 | ' |
Net deferred tax benefits | 80,000 | ' | ' |
Net deferred tax expense | ' | ($90,000) | ' |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
PRE-TAX EFFECT OF RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ' | ' |
Interest expense | $10,193 | $13,345 | $12,917 |
Selling, general and administrative expense | 387,554 | 369,438 | 339,098 |
Income before income taxes | 107,134 | 135,514 | 126,092 |
Reclassifications out of accumulated other comprehensive income | ' | ' | ' |
PRE-TAX EFFECT OF RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ' | ' |
Income before income taxes | -3,805 | -4,506 | -4,731 |
Reclassifications out of accumulated other comprehensive income | Unrealized holding gains (losses) on derivatives | Interest rate swap | ' | ' | ' |
PRE-TAX EFFECT OF RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ' | ' |
Interest expense | 3,707 | 3,833 | 4,424 |
Reclassifications out of accumulated other comprehensive income | Unrealized holding gains (losses) on derivatives | Foreign currency swaps and contracts | ' | ' | ' |
PRE-TAX EFFECT OF RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ' | ' |
Selling, general and administrative expense | $98 | $673 | $307 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | $312,520 | $380,730 | $319,387 | $304,516 | $326,042 | $374,599 | $287,411 | $300,211 | $1,317,153 | $1,288,263 | $1,181,676 |
Gross profit | 125,582 | 147,701 | 123,255 | 120,165 | 131,580 | 148,453 | 117,030 | 121,148 | 516,703 | 518,211 | 478,484 |
Asset impairment charges | ' | ' | ' | 12,049 | ' | ' | ' | ' | 12,049 | ' | ' |
Net income | $11,014 | $37,524 | $23,318 | $14,392 | $31,507 | $37,719 | $22,968 | $23,472 | $86,248 | $115,666 | $110,374 |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.34 | $1.17 | $0.73 | $0.45 | $0.99 | $1.19 | $0.72 | $0.74 | $2.69 | $3.64 | $3.52 |
Diluted (in dollars per share) | $0.34 | $1.16 | $0.72 | $0.45 | $0.98 | $1.18 | $0.72 | $0.74 | $2.66 | $3.62 | $3.48 |
FOURTH_QUARTER_CHARGES_TRANSAC1
FOURTH QUARTER CHARGES / TRANSACTIONS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Separation Agreement | Foreign currency devaluation adjustment | |
Former CEO | ||
Fourth quarter charges / transactions | ' | ' |
Fourth quarter charges or transactions | ' | $1.41 |
Effect of Fourth Quarter Events Amount, Net of Tax | $16.34 | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | $312,520,000 | $380,730,000 | $319,387,000 | $304,516,000 | $326,042,000 | $374,599,000 | $287,411,000 | $300,211,000 | $1,317,153,000 | $1,288,263,000 | $1,181,676,000 |
Asset impairment charges | ' | ' | ' | 12,049,000 | ' | ' | ' | ' | 12,049,000 | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 117,100,000 | 148,773,000 | 139,386,000 |
Identifiable assets | 1,533,302,000 | ' | ' | ' | 1,474,004,000 | ' | ' | ' | 1,533,302,000 | 1,474,004,000 | 1,435,723,000 |
Capital and intangible asset expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 40,463,000 | 14,688,000 | 16,051,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 34,750,000 | 35,328,000 | 30,178,000 |
Housewares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | ' | ' | ' | ' | ' | ' | ' | ' | 274,478,000 | 259,042,000 | 237,376,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 50,828,000 | 49,612,000 | 44,884,000 |
Identifiable assets | 369,698,000 | ' | ' | ' | 362,378,000 | ' | ' | ' | 369,698,000 | 362,378,000 | 362,045,000 |
Capital and intangible asset expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 851,000 | 1,269,000 | 1,781,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,539,000 | 4,903,000 | 6,672,000 |
Healthcare/Home Environment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | ' | ' | ' | ' | ' | ' | ' | ' | 568,075,000 | 538,666,000 | 447,695,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 20,764,000 | 37,772,000 | 32,350,000 |
Identifiable assets | 676,131,000 | ' | ' | ' | 645,586,000 | ' | ' | ' | 676,131,000 | 645,586,000 | 619,369,000 |
Capital and intangible asset expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 22,934,000 | 7,795,000 | 4,042,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 20,152,000 | 17,417,000 | 12,502,000 |
Overhead allocation | ' | ' | ' | ' | ' | ' | ' | ' | 28,440,000 | 16,690,000 | 6,020,000 |
Personal Care | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | ' | ' | ' | ' | ' | ' | ' | ' | 474,600,000 | 490,555,000 | 496,605,000 |
Asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 12,049,000 | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 45,508,000 | 61,389,000 | 62,152,000 |
Identifiable assets | 487,473,000 | ' | ' | ' | 466,040,000 | ' | ' | ' | 487,473,000 | 466,040,000 | 454,309,000 |
Capital and intangible asset expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 16,678,000 | 5,624,000 | 10,228,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $11,059,000 | $13,008,000 | $11,004,000 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | $312,520 | $380,730 | $319,387 | $304,516 | $326,042 | $374,599 | $287,411 | $300,211 | $1,317,153 | $1,288,263 | $1,181,676 |
Long-lived assets | 917,826 | ' | ' | ' | 928,799 | ' | ' | ' | 917,826 | 928,799 | 947,187 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | ' | ' | ' | ' | ' | ' | ' | ' | 1,019,525 | 1,014,354 | 906,884 |
Long-lived assets | 444,788 | ' | ' | ' | 515,411 | ' | ' | ' | 444,788 | 515,411 | 525,537 |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue, net | ' | ' | ' | ' | ' | ' | ' | ' | 297,628 | 273,909 | 274,812 |
Long-lived assets | 473,038 | ' | ' | ' | 413,388 | ' | ' | ' | 473,038 | 413,388 | 421,650 |
Barbados | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 324,399 | ' | ' | ' | 398,340 | ' | ' | ' | 324,399 | 398,340 | 406,213 |
Other international | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | $148,639 | ' | ' | ' | $15,048 | ' | ' | ' | $148,639 | $15,048 | $15,437 |
SEGMENT_INFORMATION_Details_3
SEGMENT INFORMATION (Details 3) (Net sales revenue, Customer concentration risk) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Largest customer | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' |
Percentage of net sales revenue in foreign currencies | 19.00% | 19.00% | 20.00% |
Largest customer | United States | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' |
Percentage of sales from largest customer that were within the U.S. | 92.00% | 91.00% | 93.00% |
Second largest customer | United States | ' | ' | ' |
GEOGRAPHIC INFORMATION | ' | ' | ' |
Percentage of net sales revenue in foreign currencies | 11.00% | 11.00% | 11.00% |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 20, 2014 | Mar. 14, 2014 | Feb. 05, 2014 | Mar. 14, 2014 | |
MBFC Loan | MBFC Loan | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||||
Previously reported | MBFC Loan | Dutch auction tender offer | Dutch auction tender offer | Dutch auction tender offer | |||||
Credit Agreement | |||||||||
SUBSEQUENT EVENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased (in shares) | ' | ' | ' | ' | ' | ' | 3,693,816 | ' | ' |
Final purchase price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $66.50 | ' | ' |
Common stock repurchased and retired, total purchase price | ' | ' | ' | ' | ' | ' | $245,640,000 | ' | ' |
Common stock repurchased, funded with cash on hand | ' | ' | ' | ' | ' | ' | 45,640,000 | ' | ' |
Proceeds from borrowing | 107,300,000 | 234,650,000 | 1,369,850,000 | ' | ' | ' | ' | ' | 200,000,000 |
Shares repurchased as a percentage of issued and outstanding common shares | ' | ' | ' | ' | ' | ' | ' | 11.50% | ' |
Fixed balance of borrowings | ' | ' | ' | ' | ' | 37,610,000 | ' | ' | ' |
Principal payable on March 1, 2023 | ' | ' | ' | $14,810,000 | $15,200,000 | ' | ' | ' | ' |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Allowances for doubtful accounts | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Beginning Balance | $1,764 | $1,811 | $2,108 |
Charged to cost and expenses | 400 | 188 | 548 |
Deductions | 37 | 235 | 845 |
Ending Balance | 2,127 | 1,764 | 1,811 |
Allowances for back-to-stock returns | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Beginning Balance | 3,267 | 3,730 | 2,040 |
Net charge (credit) to sales revenue | -715 | -463 | 1,690 |
Ending Balance | $2,552 | $3,267 | $3,730 |