Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2017 | Apr. 21, 2017 | Aug. 31, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | HELEN OF TROY LTD | ||
Entity Central Index Key | 916,789 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 28, 2017 | ||
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 | $ 2,511,907,494 | ||
Entity Common Stock, Shares Outstanding | 27,053,836 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Assets, current: | ||
Cash and cash equivalents | $ 23,087 | $ 225,800 |
Receivables - principally trade, less allowances of $5,656 and $5,898 | 229,928 | 217,543 |
Inventory | 289,122 | 301,609 |
Prepaid expenses and other current assets | 11,699 | 9,780 |
Income taxes receivable | 2,242 | 356 |
Total assets, current | 556,078 | 755,088 |
Property and equipment, net of accumulated depreciation of $106,561 and $93,926 | 134,935 | 130,465 |
Goodwill | 698,929 | 583,005 |
Other intangible assets, net of accumulated amortization of $165,387 and $137,174 | 419,489 | 375,751 |
Deferred tax assets, net | 1,955 | 2,484 |
Other assets, net of accumulated amortization of $1,930 and $1,828 | 1,710 | 2,101 |
Total assets | 1,813,096 | 1,848,894 |
Liabilities, current: | ||
Accounts payable, principally trade | 111,763 | 103,713 |
Accrued expenses and other current liabilities | 153,200 | 141,245 |
Long-term debt, current maturities | 24,404 | 22,644 |
Total liabilities, current | 289,367 | 267,602 |
Long-term debt, excluding current maturities | 461,211 | 597,270 |
Deferred tax liabilities, net | 20,091 | 27,364 |
Other liabilities, noncurrent | 21,661 | 26,615 |
Total liabilities | 792,330 | 918,851 |
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; 27,028,665 and 27,735,034 shares issued and outstanding | 2,703 | 2,774 |
Additional paid in capital | 218,760 | 198,077 |
Accumulated other comprehensive income | 1,173 | 665 |
Retained earnings | 798,130 | 728,527 |
Total stockholders' equity | 1,020,766 | 930,043 |
Total liabilities and stockholders' equity | $ 1,813,096 | $ 1,848,894 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Consolidated Balance Sheets | ||
Receivables - principally trade, allowances (in dollars) | $ 5,656 | $ 5,898 |
Property and equipment, accumulated depreciation (in dollars) | 106,561 | 93,926 |
Other intangible assets, accumulated amortization (in dollars) | 165,388 | 137,174 |
Other assets, accumulated amortization (in dollars) | $ 1,930 | $ 1,828 |
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 | 27,028,665 | 27,735,034 |
Common stock, shares outstanding | 27,028,665 | 27,735,034 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Consolidated Statements of Income | |||
Sales revenue, net | $ 1,537,219 | $ 1,545,701 | $ 1,445,131 |
Cost of goods sold | 861,751 | 909,696 | 845,572 |
Gross profit | 675,468 | 636,005 | 599,559 |
Selling, general and administrative expense ("SG&A") | 498,736 | 499,390 | 428,840 |
Asset impairment charges | 12,400 | 6,000 | 9,000 |
Operating income | 164,332 | 130,615 | 161,719 |
Nonoperating income, net | 414 | 299 | 517 |
Interest expense | (14,857) | (11,096) | (15,022) |
Income before income taxes | 149,889 | 119,818 | 147,214 |
Income tax expense | 9,200 | 18,590 | 16,050 |
Net income | $ 140,689 | $ 101,228 | $ 131,164 |
Earnings per share: | |||
Basic (in dollars per share) | $ 5.11 | $ 3.58 | $ 4.59 |
Diluted (in dollars per share) | $ 5.04 | $ 3.52 | $ 4.52 |
Weighted average shares of common stock used in computing net earnings per share: | |||
Basic (in shares) | 27,522 | 28,273 | 28,579 |
Diluted (in shares) | 27,891 | 28,749 | 29,035 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Cash flow hedge activity, before tax | |||
Income | $ 149,889 | $ 119,818 | $ 147,214 |
Total OCI, before tax | 751 | 775 | 1,485 |
Comprehensive income, Before Tax | 150,640 | 120,593 | 148,699 |
Cash flow hedge activity, tax | |||
Income, Tax | (9,200) | (18,590) | (16,050) |
Total OCI, tax | (243) | (34) | (470) |
Comprehensive income, Tax | (9,443) | (18,624) | (16,520) |
Net income | 140,689 | 101,228 | 131,164 |
Cash flow hedge activity, net of tax | |||
Total OCI | 508 | 741 | 1,015 |
Comprehensive income, net of tax | 141,197 | 101,969 | 132,179 |
Interest rate swaps | |||
Cash flow hedge activity, before tax | |||
Changes in fair market value | 28 | ||
Settlements reclassified to income | 1,199 | ||
Subtotal | 1,227 | ||
Cash flow hedge activity, tax | |||
Changes in fair market value | (10) | ||
Settlements reclassified to income | (420) | ||
Subtotal | (430) | ||
Cash flow hedge activity, net of tax | |||
Changes in fair market value | 18 | ||
Settlements reclassified to income | 779 | ||
Subtotal | 797 | ||
Foreign currency contracts | |||
Cash flow hedge activity, before tax | |||
Changes in fair market value | 2,205 | 1,978 | 434 |
Settlements reclassified to income | (1,454) | (1,203) | (176) |
Subtotal | 751 | 775 | 258 |
Cash flow hedge activity, tax | |||
Changes in fair market value | (380) | (314) | (62) |
Settlements reclassified to income | 137 | 280 | 22 |
Subtotal | (243) | (34) | (40) |
Cash flow hedge activity, net of tax | |||
Changes in fair market value | 1,825 | 1,664 | 372 |
Settlements reclassified to income | (1,317) | (923) | (154) |
Subtotal | $ 508 | $ 741 | $ 218 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss)Interest rate swaps | Accumulated other comprehensive income (loss)Foreign currency contracts | Accumulated other comprehensive income (loss) | Retained earnings | Interest rate swaps | Foreign currency contracts | Total |
Balance at Feb. 28, 2014 | $ 3,227 | $ 180,861 | $ (1,091) | $ 846,490 | |||||
Balance (in shares) at Feb. 28, 2014 | 32,273 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock option share-based compensation | 3,670 | ||||||||
Exercise of stock options, including tax benefits of $0, $1,581, and $773 | $ 19 | 6,318 | |||||||
Exercise of stock options (in shares) | 187 | ||||||||
Restricted share-based compensation, including tax benefits of $0, $1,894 and $0 | $ 7 | 9,759 | |||||||
Restricted share-based compensation (in shares) | 71 | ||||||||
Issuance of common stock in connection with employee stock purchase plan | $ 3 | 1,538 | |||||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 31 | ||||||||
Vesting of performance awards | $ 10 | ||||||||
Vesting of performance awards (in shares) | 100 | ||||||||
Cash flow hedge activity, net of tax | $ 797 | $ 218 | $ 797 | $ 218 | |||||
Common stock repurchased and retired | $ (417) | (22,212) | (255,796) | ||||||
Common stock repurchased and retired (in shares) | (4,174) | ||||||||
Net Income | 131,164 | $ 131,164 | |||||||
Balance at Feb. 28, 2015 | $ 2,849 | 179,934 | (76) | 721,858 | 904,565 | ||||
Balance (in shares) at Feb. 28, 2015 | 28,488 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock option share-based compensation | 3,513 | ||||||||
Exercise of stock options, including tax benefits of $0, $1,581, and $773 | $ 18 | 8,304 | |||||||
Exercise of stock options (in shares) | 178 | ||||||||
Restricted share-based compensation, including tax benefits of $0, $1,894 and $0 | $ 28 | 21,836 | |||||||
Restricted share-based compensation (in shares) | 285 | ||||||||
Issuance of common stock in connection with employee stock purchase plan | $ 3 | 1,924 | |||||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 28 | ||||||||
Cash flow hedge activity, net of tax | 741 | 741 | |||||||
Common stock repurchased and retired | $ (124) | (17,434) | (94,559) | ||||||
Common stock repurchased and retired (in shares) | (1,244) | ||||||||
Net Income | 101,228 | 101,228 | |||||||
Balance at Feb. 29, 2016 | $ 2,774 | 198,077 | 665 | 728,527 | 930,043 | ||||
Balance (in shares) at Feb. 29, 2016 | 27,735 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Cumulative effect of accounting change | 588 | ||||||||
Stock option share-based compensation | 3,194 | ||||||||
Exercise of stock options, including tax benefits of $0, $1,581, and $773 | $ 17 | 7,288 | |||||||
Exercise of stock options (in shares) | 170 | ||||||||
Restricted share-based compensation, including tax benefits of $0, $1,894 and $0 | $ 2 | 12,304 | |||||||
Restricted share-based compensation (in shares) | 21 | ||||||||
Issuance of common stock in connection with employee stock purchase plan | $ 3 | 2,487 | |||||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 32 | ||||||||
Cash flow hedge activity, net of tax | $ 508 | $ 508 | |||||||
Common stock repurchased and retired | $ (93) | (5,178) | (70,230) | ||||||
Common stock repurchased and retired (in shares) | (929) | ||||||||
Net Income | 140,689 | 140,689 | |||||||
Balance at Feb. 28, 2017 | $ 2,703 | $ 218,760 | $ 1,173 | 798,130 | $ 1,020,766 | ||||
Balance (in shares) at Feb. 28, 2017 | 27,029 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Cummulative effect of accounting change | $ (856) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Consolidated Statements of Stockholders' Equity | |||
Exercise of stock options, tax benefits | $ 0 | $ 1,581 | $ 773 |
Restricted share-based compensation, tax benefits | $ 0 | $ 1,894 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Cash provided (used) by operating activities: | |||
Net income | $ 140,689 | $ 101,228 | $ 131,164 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 44,341 | 42,749 | 39,653 |
Amortization of financing costs | 1,200 | 1,158 | 1,846 |
Provision for doubtful receivables | 2,326 | 225 | 299 |
Non-cash share-based compensation | 15,498 | 8,483 | 5,974 |
Non-cash intangible asset impairment charges | 12,400 | 6,000 | 9,000 |
Non-cash Venezuela re-measurement related charges | 17,441 | ||
Loss on the sale or disposal of property and equipment | 198 | 84 | 49 |
Deferred income taxes and tax credits | (7,254) | (464) | (1,830) |
Changes in operating capital, net of effects of acquisition of business: | |||
Receivables | (6,827) | (3,604) | (9,487) |
Inventories | 18,967 | (17,606) | 2,274 |
Prepaid expenses and other current assets | (1,614) | (2,412) | 2,317 |
Other assets and liabilities, net | (2,941) | 10,668 | 2,448 |
Accounts payable | 5,797 | 7,044 | 16,502 |
Accrued expenses and other current liabilities | 9,197 | 15,764 | (21,135) |
Accrued income taxes | (3,476) | (213) | 190 |
Net cash provided by operating activities | 228,501 | 186,545 | 179,264 |
Cash provided (used) by investing activities: | |||
Capital and intangible asset expenditures | (20,619) | (20,603) | (6,521) |
Proceeds from the sale of property and equipment | 32 | 7 | |
Payments to acquire businesses, net of cash acquired | (209,267) | (43,150) | (195,943) |
Net cash used by investing activities | (229,854) | (63,746) | (202,464) |
Cash provided (used) by financing activities: | |||
Proceeds from line of credit | 470,900 | 802,600 | 769,000 |
Repayment of line of credit | (580,300) | (590,000) | (431,500) |
Repayment of long-term debt | (23,800) | (21,900) | (96,900) |
Payment of financing costs | (2,299) | (19) | (4,585) |
Proceeds from share issuances under share-based compensation plans | 9,734 | 12,025 | 7,621 |
Payment of tax obligations resulting from cashless share award settlements | (595) | (4,569) | |
Payment of tax obligations resulting from cashless share settlement of severance obligation | (12,000) | ||
Payments for repurchases of common stock | (75,000) | (100,000) | (273,599) |
Net cash provided (used) by financing activities | (201,360) | 90,706 | (34,532) |
Net increase (decrease) in cash and cash equivalents | (202,713) | 213,505 | (57,732) |
Cash and cash equivalents, beginning balance | 225,800 | 12,295 | 70,027 |
Cash and cash equivalents, ending balance | 23,087 | 225,800 | 12,295 |
Supplemental cash flow information: | |||
Interest paid | 13,231 | 9,978 | 13,990 |
Income taxes paid, net of refunds | 20,736 | 15,950 | 16,591 |
Value of common stock received as exercise price of options | $ 36 | $ 118 | $ 257 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Related Information | 12 Months Ended |
Feb. 28, 2017 | |
Summary of Significant Accounting Policies and Related Information | |
Accounting Policies and Certain Related Disclosures | Note 1 Summary of Significant Accounting Policies and Related Information General When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to the Company’s common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have four segments: Housewares, Health & Home, Nutritional Supplements, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage and food containers. The Health & Home segment focuses on healthcare devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Nutritional Supplements segment is a leading provider of premium branded vitamins, minerals and supplements, topical skin products and other health products sold directly to consumers. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30 th . We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Our consolidated financial statements include the accounts of Helen of Troy Limited and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation. The effects of these reclassifications are shown in tables provided in Note 4, below. Cash and cash equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts, which at February 28, 2017 primarily held short-term U.S. treasury obligations, to be cash equivalents. 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 at-risk accounts. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. 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. We have a significant concentration of credit risk with one major customer at February 28, 2017 representing approximately 17% of gross trade receivables. In addition, as of February 28, 2017 and February 29, 2016, approximately 44% of our gross trade receivables in each year were due from our five top customers. Foreign currency transactions and related derivative financial instruments The U.S. Dollar is the functional currency for the Company and all its subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions involving other currencies have been re-measured in U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts 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 comprehensive income, depending on the type of hedging instrument and the effectiveness of the hedges. We evaluate all hedging transactions each quarter to determine that they remain effective. Any material ineffectiveness is recorded as part of SG&A in our consolidated statements of income. Inventory and cost of goods sold Our inventory consists almost entirely of finished goods. 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 $41.7, $39.2 and $36.4 million of such general and administrative expenses to inventory during fiscal 2017, 2016 and 2015, respectively. We estimate that $12.8 and $13.1 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2017 and February 29, 2016, respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. For fiscal 2017, 2016 and 2015, finished goods purchased from vendors in the Far East comprised approximately 67%, 68% and 67%, respectively, of finished goods purchased. During fiscal 2017, we had one vendor who fulfilled approximately 11% of our product requirements. Our top two manufacturers combined fulfilled approximately 18% of our product requirements. Over the same period, our top five suppliers fulfilled approximately 31% of our product requirements. Property and equipment These assets are stated at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. License agreements, trademarks, patents, and other intangible assets A significant portion of our 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 represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. 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 in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 40%, 41% and 42% of consolidated net sales revenue for fiscal 2017, 2016 and 2015, respectively. During fiscal 2017, two license agreements accounted for net sales revenue subject to royalty payments of approximately 13% and 11% of consolidated net sales, respectively. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In most instances, we have determined that such acquired assets 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. Goodwill, intangible and other long-lived assets and related impairment testing Our annual impairment testing for goodwill and indefinite lived intangible assets has historically occurred in the first quarter of our fiscal year. In December 2016, we elected to change our annual impairment testing to the fourth quarter of our fiscal year. Accordingly, for fiscal 2017 we completed impairment tests during both the first and fourth fiscal quarters. Going forward, we will complete the annual analysis of the carrying value of our goodwill and other intangible assets during the fourth 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. When events and changes in circumstances indicate there may be an impairment, we perform interim testing. Economic useful lives and amortization of intangible assets We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset's economic useful life is deemed indefinite, that asset is not amortized. We review the economic useful lives of our intangible assets at least annually. Intangible assets consist primarily of goodwill, license agreements, trademarks, brand assets, customer lists, distribution rights, patents, and patent licenses. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 4 to 30 years. 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 our historical experience and believe that this is the most reliable method by which we can estimate our warranty liability. The following table summarizes the activity in our accrual for the past two fiscal years: ACCRUAL FOR WARRANTY RETURNS Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Beginning balance $ 20,622 $ 23,553 Additions to the accrual 57,686 57,847 Reductions of the accrual - payments and credits issued (56,542) (60,778) Ending balance $ 21,766 $ 20,622 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 10 to these consolidated financial statements for our assessment of the fair value of our long-term debt. Income taxes and uncertain tax positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed, and disclose as a separate liability in our financial statements, including related accrued interest and penalties. Revenue recognition 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 advertising discounts, volume rebates and off-invoice markdowns. Such deductions are recorded 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 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 advertising performance, reductions in amounts received from customers under cooperative advertising programs are expensed in our consolidated statements of income in SG&A. Customer cooperative advertising incentives included in SG&A were $18.4, $19.4 and $17.3 million for fiscal 2017, 2016 and 2015, respectively. Reductions in amounts received from customers for advertising without proof of performance, markdown allowances, slotting fees, trade discounts, cash discounts, and volume rebates are all recorded as reductions of net sales revenue. Advertising Advertising costs include cooperative advertising discussed above, traditional and internet media advertising and production expenses, and expenses associated with other promotional product messaging and consumer awareness programs. Advertising costs are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs, including amounts paid to customers for cooperative media and print advertising, of $111.6, $107.5 and $88.4 million during fiscal 2017, 2016 and 2015, respectively. Research and development expenses Expenditures for research activities relating to product design, development and improvement are charged to expense as incurred and included in our consolidated statements of income in SG&A. We incurred total research and development expenses of $9.7, $10.0 and $7.4 mil lion d uring fiscal 2017, 2016 and 2015, respectively. 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 we incur. Our expenses for shipping and handling were $86.3, $88.9 and $87.9 million during fiscal 2017, 2016 and 2015, respectively. Share-based compensation plans We account for share-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”), to be measured based on the grant date fair value of the awards. The resulting expense is recognized over the periods during which the employee is required to perform service in exchange for the award. The estimated number of PSU’s that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. Stock options are recognized in the financial statements based on their fair values using an option-pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. See Note 16 to these consolidated financial statements for more information on our share-based compensation plans. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Feb. 28, 2017 | |
Earnings per Share | |
Earnings per Share | Note 2 – Earnings Per Share We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested RSUs and PSUs. See Note 16 to these consolidated financial statements for more information regarding RSUs, PSUs and other performance based stock awards. Options for common stock are excluded from the computation of diluted earnings per share if their effect is antidilutive. For fiscal 2017, 2016 and 2015 , the components of basic and diluted shares were as follows: WEIGHTED AVERAGE DILUTED SECURITIES Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Weighted average shares outstanding, basic 27,522 Incremental shares from share-based payment arrangements 369 476 456 Weighted average shares outstanding, diluted 27,891 Dilutive securities, stock options 365 Dilutive securities, unvested or unsettled stock awards 186 227 273 Antidilutive securities, stock options 137 |
Significant Accounting Matters
Significant Accounting Matters | 12 Months Ended |
Feb. 28, 2017 | |
New Accounting Pronouncements | |
Significant Accounting Matters | Note 3 – Significant Accounting Matters Fiscal 2016 Venezuelan re-measurement change – In fiscal 2016, as a result of a devaluation of the Venezuelan official rate, continued economic instability from declines in oil prices and the declaration of an economic emergency, among other factors, we discontinued the use of the official exchange rate and adopted a market-based exchange rate. As a result, we recorded a charge of $9.57 million (before and after tax) from the re-measurement of our Venezuelan monetary assets and liabilities at February 29, 2016 at the new rate. In addition to re-measuring our monetary holdings in Venezuela, we recorded $9.16 million of non-cash impairment charges (before and after tax) with respect to inventory and property and equipment in order to reflect their respective estimated net realizable and fair values as of February 29, 2016. At the current exchange rate, sales in Venezuela represent less than 0.1% of our consolidated net sales and we expect that future reported net sales and operating income from Venezuela will no longer be meaningful to our consolidated and Beauty segment operating results. The following table summarizes the financial impact of the adjustments described above. IMPACT OF VENEZUELAN RE-MEASURMENT RELATED CHARGES Balance at February 29, 2016 (in thousands) Before Adjustment Adjustments After Location of Income Statement Impact Cash and cash equivalents $ 1,302 $ (1,292) $ 10 SG&A Other net assets, principally working capital other than inventory 8,120 (8,284) (164) SG&A Inventory 9,378 (9,078) 300 Cost of goods sold Property and equipment, net 82 (79) 3 SG&A Net investment in Venezuelan operations $ 18,882 $ (18,733) $ 149 Fiscal 2015 change in accounting estimate – In the third quarter of fiscal 2015, we revised our product liability estimates to reflect more relevant historical claims experience. The effect of the change in estimate was recorded in SG&A. The change increased operating income, net income and diluted earnings per share by $2.2 million, $1.4 million and $0.05 per share , respectively, for fiscal 2015 . |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Feb. 28, 2017 | |
New Accounting Pronouncements. | |
New Accounting Pronouncements | Note 4 – New Accounting Pronouncements Not Yet Adopted In January 2017, the FASB, issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This guidance provides for a single-step quantitative test to identify and measure impairment, requiring an entity to recognize an impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance will be effective for us in fiscal 2021, with early adoption permitted. This guidance must be applied on a prospective basis. We do not expect the adoption of this guidance to have a material impact on our financial position, results of operations or cash flows. In October 2016, the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other Than Inventory.” ASU 2016-16 amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of taxes when the transfer occurs. The amendment will be effective for us in fiscal 2019 with early adoption permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. A modified retrospective approach will be required for transition to the new guidance, with a cumulative-effect adjustment consisting of the net impact from (1) the write-off of any unamortized expense previously deferred and (2) recognition of any previously unrecognized deferred tax assets, net of any valuation allowance. The new guidance does not include any specific new disclosure requirements. The new guidance may impact our effective tax rate, after adoption. We are currently evaluating the impact this guidance may have on our consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 will require lessees to recognize on their balance sheets “right-of-use assets” and corresponding lease liabilities, measured on a discounted basis over the lease term. Virtually all leases will be subject to this treatment except leases that meet the definition of a “short-term lease.” For expense recognition, the dual model requiring leases to be classified as either operating or finance leases has been retained from the prior standard. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Classification will use criteria very similar to those applied in current lease accounting, but without explicit bright lines. The new lease guidance will essentially eliminate off-balance sheet financing. The guidance is effective for us in fiscal 2021. The new standard must be adopted using a modified retrospective transition and requires the new guidance to be applied at the beginning of the earliest comparative period presented. We are currently evaluating the effect this new accounting guidance may have on our consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, issued as a new Topic, ASC Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We will be required to adopt the new standard in fiscal 2019 and can adopt either retrospectively or as a cumulative effect adjustment as of the date of adoption. We are currently evaluating the effect of this new accounting guidance. Therefore, we have not yet selected a transition method nor have we determined the impact that the new standard may have on our consolidated financial position, results of operations and cash flows. Adopted In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which changes the accounting for certain aspects of share-based payments to employees. The provisions of the new guidance affecting us require excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled; remove the requirement to include hypothetical excess tax benefits in the application of the treasury stock method when computing earnings per share; and provided for a new policy election to either: (1) continue applying forfeiture rate estimates in the determination of compensation cost, or (2) account for forfeitures as a reduction of share-based compensation cost as they occur. The new guidance also requires cash flows related to excess tax benefits to be classified as an operating activity in the cash flow statement and requires shares withheld for tax withholding purposes to be classified as a financing activity. We elected to early adopt the new guidance in the first quarter of fiscal 2017. This required us to reflect adjustments as of March 1, 2016. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital for all periods after fiscal 2016. We elected to change our accounting policy regarding forfeitures. Previously, we estimated forfeitures expected to occur in the determination of compensation costs. Going forward we will now recognize forfeitures in the period they occur. The cumulative effect adjustments made upon adoption were not material. For fiscal 2017 we recognized additional share-based compensation expense of $1.8 million from the change in accounting for forfeitures of share-based awards, and we recognized $1.8 million of excess tax benefits in income tax expense rather than additional paid-in capital. The excess tax benefits were reported as an increase to cash provided by operations in the statement of cash flows. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which eliminates the requirement for companies to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, upon adoption, companies are required to classify all deferred tax assets and liabilities as non-current. We elected to early adopt the new guidance in the first quarter of fiscal 2017 and have made the necessary conforming reclassifications to the accompanying February 29, 2016 consolidated balance sheet. The application of the provisions of ASU 2015-17 did not have a material effect on our consolidated financial position, results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. ASU 2015-03 changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than as an asset. We adopted the new guidance in the first quarter of fiscal 2017 and have made the necessary conforming reclassifications to the accompanying February 29, 2016 consolidated balance sheet and related footnote disclosures. The application of the provisions of ASU 2015-03 did not have a material effect on our consolidated financial position, results of operations or cash flows. We have provided the table below, which summarizes the impact of each of the adopted accounting changes to the accompanying consolidated financial statements. IMPACT OF ACCOUNTING CHANGES Increase (Decrease) (in thousands) Standard Transition Method February 28, 2017 February 29, 2016 Consolidated Balance Sheets Current deferred tax assets, net ASU 2015-17 Retrospective $ $ Long-term deferred tax assets, net ASU 2015-17 Retrospective $ $ Long-term deferred tax assets, net ASU-2016-09 Modified retrospective $ (232) $ - Other assets - debt issuance costs ASU 2015-03 Retrospective $ $ Other assets - accumulated amortization ASU 2015-03 Retrospective $ $ Long-term debt, current maturities ASU 2015-03 Retrospective $ $ Current deferred tax liabilities, net ASU 2015-17 Retrospective $ $ - Long-term deferred tax liabilities, net ASU 2015-17 Retrospective $ $ Long-term debt, excluding current maturities ASU 2015-03 Retrospective $ $ Additional paid-in capital ASU-2016-09 Modified retrospective $ 588 $ - Retained earnings ASU-2016-09 Modified retrospective $ (856) $ - IMPACT OF ACCOUNTING CHANGES Increase (Decrease) Fiscal Year Ended (in thousands) Standard Transition Method February 28, 2017 February 29, 2016 Consolidated Statements of Income Share-based compensation expense ASU-2016-09 Modified retrospective $ $ - Current income tax expense ASU-2016-09 Modified retrospective $ $ - Consolidated Statements of Cash Flows Cash provided by operating activities: Accrued income taxes ASU-2016-09 Retrospective $ $ Cash provided by financing activities: Share-based compensation tax benefit ASU-2016-09 Retrospective $ $ Unless otherwise disclosed above, we believe 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, 2017 | |
Property and Equipment | |
Property and Equipment | Note 5 – Property and Equipment A summary of property and equipment is as follows: PROPERTY AND EQUIPMENT Estimated Useful Lives February 28, February 29, (in thousands) (Years) 2017 2016 Land - $ 12,800 $ 12,800 Building and improvements - 40 109,026 108,509 Computer, furniture and other equipment - 15 81,122 70,778 Tools, molds and other production equipment - 10 31,157 28,254 Construction in progress - 7,391 4,050 Property and equipment, gross 241,496 224,391 Less accumulated depreciation (106,561) (93,926) Property and equipment, net $ 134,935 $ 130,465 We recorded $16.0, $15.0 and $14.3 million of depreciation expense including $4.6, $4.3 and $3.8 million in cost of goods sold and $11.4, $10.7 and $10.5 million in SG&A in the consolidated statements of income for fiscal 2017, 2016 and 2015, respectively. We lease certain facilities, equipment and vehicles under operating leases, which expire at various dates through fiscal 2027. Certain of the leases contain escalation clauses and renewal or purchase options. Rent expense related to our operating leases was $6.1, $5.9 and $5.0 million for fiscal 2017, 2016 and 2015, respectively. As of February 29, 2016, we recorded non-cash impairment charges totaling $0.1 million, before and after tax, to reflect Venezuelan property and equipment at its estimated fair value. See Note 3 to these consolidated financial statements for additional information regarding the impairment of assets as a result of recent developments in Venezuela. During the second quarter of fiscal 2016, we substantially completed the transition of our Nutritional Supplements segment’s distribution operation from a third party logistics provider to our Southaven, Mississippi facility in order to better control its operations, more efficiently utilize our facilities and reduce overall distribution costs. Capital expenditures for fiscal 2016 included $1.7 million in connection with this project. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6 – 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. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in some of those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Accordingly, the majority of our goodwill is not deductible for tax purposes. We perform annual impairment testing each fiscal year and interim impairment testing, if necessary. We write down any asset deemed to be impaired to its fair value. Our 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, we consider the existing rates on Treasury Bills, yield spreads on assets with comparable expected lives, historical volatility of our common stock and that of comparable companies, and general economic and industry trends, among other considerations. When stock market or other conditions warrant, we expand our traditional impairment test methodology to give weight to other methods that provide additional observable market information in order to better reflect the current risk level being incorporated into market prices and in order to corroborate the fair values of each of our reporting units. Management will place increased reliance on these additional methods in conjunction with its DCF Models in the event that the total market capitalization of its stock drops below its consolidated stockholders’ equity balance for a sustained period. Considerable management judgment is necessary in reaching a conclusion regarding the reasonableness of fair value estimates, evaluating the most likely impact of a range of possible external conditions, considering the resulting operating changes and their impact on estimated future cash flows, determining the appropriate discount factors to use, and selecting and weighting appropriate comparable market level inputs. Impairment Testing in Fiscal 2017 – Our annual impairment testing for goodwill and indefinite lived intangible assets has historically occurred in the first quarter of our fiscal year. In December 2016, we elected to change our annual impairment testing to the fourth quarter of our fiscal year. Accordingly, for fiscal 2017 we completed impairment tests during the first and fourth fiscal quarters. As a result of our testing of indefinite-lived trademarks in the fourth quarter, we recorded non-cash asset impairment charges of $5.0 million ($3.2 million after tax). As a result of our testing of indefinite-lived trademarks in the first quarter, we recorded non-cash asset impairment charges of $7.4 million ($5.1 million after tax). The charges in both quarters were related to certain brand assets and trademarks in our Beauty and Nutritional Supplements segments, which were written down to their estimated fair values, determined on the basis of our estimated future discounted cash flows using the relief from royalty valuation method. Due to recent declines in revenue associated with our Nutritional Supplements segment, our annual impairment testing of goodwill and other intangible assets for the segment reflected a fair value that was in excess of the carrying value by a smaller margin than occurred in previous impairment tests. In addition, the fair value of the indefinite lived brand asset was determined to be less than the carrying value and impairments of $9.5 million were recorded during fiscal 2017. The fair values were determined using primarily a discounted cash flow model and we believe our assumptions of future revenue, gross margin and operating expenses are reasonable in the circumstances. However, as we continue to execute our strategy, actual results could differ from our current expectations. To the extent that our forecasted cash flows were to decline further, it is reasonably likely that we could record additional impairment expense or other charges or losses in the future. We are unable to project what, if any, expense, charges, or losses will be in future periods. We will continue to closely monitor performance and market conditions related to this segment. Impairment Testing in Fiscal 2016 – We performed interim impairment testing in the fourth quarter of fiscal 2016 for certain of our brands as a result of revised growth outlooks. As a result of our testing, we recorded a non-cash impairment charge of $3.0 million ($2.7 million after tax). We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal 2016. As a result of our testing of indefinite-lived trademarks, we recorded a non-cash asset impairment charge of $3.0 million ($2.7 million after tax). The charges in both quarters were related to certain trademarks in our Beauty segment, which were written down to fair value, determined on the basis of future discounted cash flows using the relief from royalty valuation method. Impairment Testing in Fiscal 2015 – We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal 2015. As a result of our testing of indefinite-lived trademarks and licenses, we recorded a non-cash asset impairment charge of $9.0 million ($8.2 million after tax). The charge was related to certain trademarks in our Beauty 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 following tables summarize the changes in our goodwill and intangible assets by segment for fiscal 2017 and 2016 : GOODWILL AND INTANGIBLE ASSETS Balances at Balances at Weighted February 29, 2016 Year Ended February 28, 2017 February 28, 2017 Average Gross Cumulative Acquisition Gross Cumulative Life Carrying Goodwill and Retirement Carrying Goodwill Accumulated Net Book (in thousands) (Years) Amount Impairments Additions Impairments Adjustments Amount Impairments Amortization Value Housewares: Goodwill $ 166,132 $ - $ 116,053 $ - $ (129) $ 282,056 $ - $ - $ 282,056 Trademarks - indefinite 75,200 - 59,000 - - 134,200 - - 134,200 Other intangibles - finite 11.6 15,448 - 25,040 - (95) 40,393 - (15,476) 24,917 Subtotal 256,780 - 200,093 - (224) 456,649 - (15,476) 441,173 Health & Home: Goodwill 284,913 - - - - 284,913 - - 284,913 Trademarks - indefinite 54,000 - - - - 54,000 - - 54,000 Licenses - finite 15,300 - - - - 15,300 - (15,300) - Licenses - indefinite 7,400 - - - - 7,400 - - 7,400 Other Intangibles - finite 5.0 116,575 - 472 - (65) 116,982 - (66,027) 50,955 Subtotal 478,188 - 472 - (65) 478,595 - (81,327) 397,268 Nutritional Supplements: Goodwill 96,609 - - - - 96,609 - - 96,609 Brand assets - indefinite 65,520 - - (9,500) - 56,020 - - 56,020 Other intangibles - finite 4.3 44,180 - - - - 44,180 - (16,715) 27,465 Subtotal 206,309 - - (9,500) - 196,809 - (16,715) 180,094 Beauty: Goodwill 81,841 (46,490) - - - 81,841 (46,490) - 35,351 Trademarks - indefinite 48,754 - - (2,900) - 45,854 - - 45,854 Trademarks - finite 11.6 150 - - - - 150 - (92) 58 Licenses - indefinite 10,300 - - - - 10,300 - - 10,300 Licenses - finite 5.8 13,696 - - - - 13,696 - (11,849) 1,847 Other intangibles - finite 1.2 46,402 - - - - 46,402 - (39,929) 6,473 Subtotal 201,143 (46,490) - (2,900) - 198,243 (46,490) (51,870) 99,883 Total $ 1,142,420 $ (46,490) $ 200,565 $ (12,400) $ (289) $ 1,330,296 $ (46,490) $ (165,388) $ GOODWILL AND INTANGIBLE ASSETS Balances at Balances at Weighted February 28, 2015 Year Ended February 29, 2016 February 29, 2016 Average Gross Cumulative Acquisition Gross Cumulative Life Carrying Goodwill and Retirement Carrying Goodwill Accumulated Net Book (in thousands) (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 15,754 - 446 - (752) 15,448 - (12,916) 2,532 Subtotal 257,086 - 446 - (752) 256,780 - (12,916) 243,864 Health & Home: Goodwill 251,758 - 32,958 - 197 284,913 - - 284,913 Trademarks - indefinite 54,000 - - - - 54,000 - - 54,000 Licenses - finite 15,300 - - - - 15,300 - (12,750) 2,550 Licenses - indefinite - - 7,400 - - 7,400 - - 7,400 Other Intangibles - finite 113,727 - 2,848 - - 116,575 - (54,913) 61,662 Subtotal 434,785 - 43,206 - 197 478,188 - (67,663) 410,525 Nutritional Supplements: Goodwill 96,486 - - - 123 96,609 - - 96,609 Brand assets - indefinite 65,500 - 20 - - 65,520 - - 65,520 Other intangibles - finite 43,800 - 380 - - 44,180 - (10,431) 33,749 Subtotal 205,786 - 400 - 123 206,309 - (10,431) 195,878 Beauty: Goodwill 81,841 (46,490) - - - 81,841 (46,490) - 35,351 Trademarks - indefinite 54,754 - - (6,000) - 48,754 - - 48,754 Trademarks - finite 150 - - - - 150 - (87) 63 Licenses - indefinite 10,300 - - - - 10,300 - - 10,300 Licenses - finite 13,696 - - - - 13,696 - (11,532) 2,164 Other intangibles - finite 47,876 - - - (1,474) 46,402 - (34,545) 11,857 Subtotal 208,617 (46,490) - (6,000) (1,474) 201,143 (46,490) (46,164) 108,489 Total $ 1,106,274 $ (46,490) $ 44,052 $ (6,000) $ (1,906) $ 1,142,420 $ (46,490) $ (137,174) $ 958,756 In fiscal 2015, we amended the terms of our trademark licensing agreement with Honeywell International Inc. to relinquish the rights to market Honeywell branded portable air purifiers after December 31, 2015 in twelve selected developing countries, including China. In exchange for the amendment, we received a one ‐ time cash payment of $7 million (before and after tax), recorded as a gain in SG&A. For fiscal 2015, sales into the relinquished countries accounted for approximately 0.3% of the Health & Home segment’s total net sales. For categories such as portable fans, portable heaters and portable humidifiers, we remain the Honeywell global licensee under the same material terms as our previous agreement. The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the consolidated statements of income for fiscal 2017, 2016 and 2015, as well as estimated amortization expense for fiscal 2018 through 2022: AMORTIZATION OF INTANGIBLE ASSETS Aggregate Amortization Expense (in thousands) Fiscal 2017 $ 28,308 Fiscal 2016 $ 27,773 Fiscal 2015 $ 25,328 Estimated Amortization Expense (in thousands) Fiscal 2018 $ 25,172 Fiscal 2019 $ 20,206 Fiscal 2020 $ 19,102 Fiscal 2021 $ 16,532 Fiscal 2022 $ 6,037 |
Acquisitions
Acquisitions | 12 Months Ended |
Feb. 28, 2017 | |
Acquisitions | |
Acquisitions | Note 7 – Acquisitions Hydro Flask Acquisition – On March 18, 2016, we completed the acquisition of all membership units of Steel Technology, LLC, doing business as Hydro Flask. Hydro Flask is a leading designer, distributor and marketer of high performance insulated stainless steel food and beverage containers for active lifestyles. The aggregate purchase price for the transaction was approximately $209.3 million, net of cash acquired. Significant assets acquired include receivables, inventory, prepaid expenses, property and equipment, trade names, technology assets, customer relationships, and goodwill. Acquisition-related expenses, incurred during fiscal 2016, were approximately $0.7 million (before and after tax). We accounted for the acquisition as the purchase of a business and recorded the excess purchase price as goodwill, which is not expected to be deductible for income tax purposes. We have completed our analysis of the economic lives of the assets acquired and determined the appropriate fair values of the acquired assets. We assigned $59.0 million to trade names with indefinite economic lives. We assigned $10.3 million to technology assets and $14.2 million to customer relationships and are amortizing these assets over expected lives of 10 and 24 years, respectively. For technology assets, we considered the average life cycle of the underlying products, which range from 7 - 15 years, and the overall average life of the associated patent portfolio. For the customer relationships, we used historical attrition rates to assign an expected life. The following schedule presents the net assets of Hydro Flask recorded at acquisition, excluding cash acquired: HYDRO FLASK - NET ASSETS RECORDED UPON ACQUISITION AT MARCH 18, 2016 (in thousands) Assets: Receivables $ 7,955 Inventory 6,243 Prepaid expenses and other current assets 336 Property and equipment 1,108 Goodwill 116,053 Trade names - indefinite 59,000 Technology assets - definite 10,300 Customer relationships - definite 14,200 Subtotal - assets 215,195 Liabilities: Accounts payable 2,275 Accrued expenses 3,662 Subtotal - liabilities 5,937 Net assets recorded $ 209,258 The fair values of the above assets acquired and liabilities assumed were estimated by applying income and market approaches. Key assumptions include various discount rates based upon a 12.3% weighted average cost of capital; royalty rates used in the determination of trade names and technology asset values of 6% and 2%, respectively; and a customer attrition rate used in the determination of customer relationship values of approximately 4% per year. The impact of the Hydro Flask acquisition on our consolidated statements of income for fiscal 2017 is as follows: HYDRO FLASK - IMPACT ON CONSOLIDATED STATEMENT OF INCOME Fiscal Year March 18, 2016 (acquisition date) through February 28, 2017 Ended (in thousands, except earnings per share data) February 28, 2017 Sales revenue, net $ 107,005 Net income 27,902 Earnings per share: Basic $ 1.01 Diluted $ 1.00 The following supplemental unaudited pro forma information presents our financial results as if the Hydro Flask acquisition had occurred as of the beginning of the fiscal periods presented. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred if the acquisition had been completed on March 1, 2015, and this information is not intended to be indicative of future results. HYDRO FLASK - PRO FORMA IMPACT ON CONSOLIDATED STATEMENTS OF INCOME (unaudited) As if the acquisition had been completed at the beginning of March 1, 2015 Fiscal Years Ended the Last Day of February, (in thousands, except earnings per share data) 2017 2016 Sales revenue, net $ 1,540,714 $ 1,603,656 Net income 141,325 113,906 Earnings per share: Basic $ 5.13 $ 4.03 Diluted $ 5.07 $ 3.96 Vicks VapoSteam Acquisition – On March 31, 2015, the Company completed the acquisition of the Vicks VapoSteam U.S. liquid inhalant business from The Procter & Gamble Company (“P&G”), which includes a fully paid-up license of P&G’s Vicks VapoSteam inhalants. In a related transaction, we acquired a fully paid-up U.S. license of P&G’s Vicks VapoPad scent pads. The vast majority of Vicks VapoSteam and VapoPads are used in our Vicks humidifiers, vaporizers and other health care devices. The aggregate purchase price for the two transactions was approximately $42.8 million financed primarily with borrowings under our Credit Agreement. Acquisition-related expenses were not material. VapoSteam operations are reported in the Health & Home segment. We have completed our analysis of the economic lives of the assets acquired and determined the appropriate fair values of the acquired assets. We assigned $7.4 million to trademark licenses with indefinite economic lives. We assigned $1.0 million to customer relationships and $1.2 million to product formulations and will amortize these assets over expected lives of 19.5 and 20.0 years, respectively. For the customer relationships, we used historical attrition rates to assign an expected life. For product formulations, we used our best estimate of the remaining product life. The trademarks are considered to have indefinite lives that are not subject to amortization. We assigned $33.0 million to goodwill, which is expected to be deductible for income tax purposes. Healthy Directions Acquisition – On June 30, 2014, we completed the acquisition of Healthy Directions, a leader in the premium branded vitamin, mineral and supplement market for a total cash purchase price of $195.9 million. The purchase price was funded primarily with borrowings under the Credit Agreement. Significant assets acquired include inventory, property and equipment, customer relationships, brand assets, and goodwill. Brand assets consist of a portfolio of complementary marketing related assets determined to have indefinite lives that are utilized across multiple product lines. Brand assets include trademarks, tradenames, product formulations, proprietary research, doctor endorsements and all other associated elements of brand equity. Acquisition-related expenses incurred in fiscal 2015 were approximately $3.6 million ($2.3 million after tax). Healthy Directions reports its operations as the Nutritional Supplements segment. We accounted for the acquisition as the purchase of a business and recorded the excess purchase price as goodwill. The goodwill recognized is expected to be deductible for income tax purposes. As of February 28, 2015, we completed our analysis of the economic lives of all the assets acquired and determined the appropriate allocation of the purchase price. We assigned the acquired brand assets an indefinite economic life, therefore they are not subject to amortization. We are amortizing the customer relationships over an expected weighted average life of approximately 7 years, determined using historical attrition rates. The following table presents the net assets of Healthy Directions as recognized at the acquisition date: HEALTHY DIRECTIONS - NET ASSETS RECORDED UPON ACQUISITION AT JUNE 30, 2014 (in thousands) Assets: Receivables $ 257 Inventory 6,226 Prepaid expenses and other current assets 1,875 Property and equipment 5,962 Goodwill 95,308 Brand assets - indefinite 65,500 Customer relationships - definite 43,800 Subtotal - assets 218,928 Liabilities: Accounts payable 6,479 Accrued expenses 13,964 Other long-term liabilities 2,542 Subtotal - liabilities 22,985 Net assets recorded $ 195,943 The fair values of the above assets acquired were estimated by applying income and market approaches. Key assumptions included various discount rates based upon a 14.6% weighted average cost of capital, a royalty rate of 5% used in the determination of the brand assets fair value, and a customer attrition rate averaging 14% per year used in the determination of customer relationship values. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 28, 2017 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | Note 8 – Accrued Expenses and Other Current Liabilities A summary of accrued expenses and other current liabilities is as follows: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES February 28, February 29, (in thousands) 2017 2016 Accrued compensation, benefits and payroll taxes $ 34,917 $ 28,912 Accrued sales returns, discounts and allowances 27,377 27,530 Accrued warranty returns 21,766 20,622 Accrued advertising 23,747 22,087 Accrued legal fees and settlements 16,908 16,699 Accrued royalties 9,553 7,961 Accrued property, sales and other taxes 6,564 6,938 Accrued freight and duty 3,454 2,043 Accrued product liability 2,141 2,098 Derivative liabilities, current 47 495 Liability for uncertain tax positions - 536 Other 6,726 5,324 Total accrued expenses and other current liabilities $ 153,200 $ 141,245 |
Other Liabilities, Noncurrent
Other Liabilities, Noncurrent | 12 Months Ended |
Feb. 28, 2017 | |
Other Liabilities, Noncurrent | |
OTHER LIABILITIES, NONCURRENT | Note 9 – Other Liabilities, Noncurrent A summary of other noncurrent liabilities is as follows: OTHER LIABILITIES, NONCURRENT February 28, February 29, (in thousands) 2017 2016 Deferred compensation liability $ 6,560 $ 8,298 Liability for uncertain tax positions 6,611 8,201 Other liabilities 8,490 10,116 Total other liabilities, noncurrent $ 21,661 $ 26,615 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 28, 2017 | |
Long-Term Debt | |
Long-Term Debt | Note 10 – Long-Term Debt We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for an unsecured total revolving commitment of $1 billion as of February 28, 2017. The commitment under the Credit Agreement terminates on December 7, 2021. 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 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. In connection with an amendment to our Credit Agreement in fiscal 2017, we incurred a total of $2.3 million in new debt acquisition costs that are being amortized over the term of the Credit Agreement. As of February 28, 2017, the outstanding revolving loan principal balance was $440.7 million and the balance of outstanding letters of credit was $1.5 million. As of February 28, 2017, the amount available for borrowings under the Credit Agreement was $557.8 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur. As of February 28, 2017 these covenants effectively limited our ability to incur more than $280.6 million of additional debt from all sources, including our Credit Agreement. A summary of our long-term debt follows: LONG-TERM DEBT Original Date Interest Last Day of February (dollars in thousands) Borrowed Rates Matures 2017 2016 $37.6 million unsecured loan with the Mississippi Business Finance Corporation (the "MBFC Loan"), interest is set and payable quarterly at a Base Rate, plus a margin of up to 1.0%, or applicable LIBOR plus a margin of up to 2.0%, as determined by the interest rate elected and the Leverage Ratio. Loan subject to holder's call on or after March 1, 2018. Loan can be prepaid without penalty. (1) 03/13 Floating 03/23 $ 29,903 $ 33,706 $100 million unsecured Senior Notes payable at a fixed interest rate of 3.9%. Interest payable semi-annually. Annual principal payments of $20 million began in January 2014. Prepayment of notes are subject to a "make whole" premium. 01/11 3.9 % 01/18 19,763 39,496 Credit Agreement 01/15 Floating 12/21 435,949 546,712 Total long-term debt 485,615 619,914 Less current maturities of long-term debt (24,404) (22,644) Long-term debt, excluding current maturities $ 461,211 $ 597,270 (1) $3.8 and $1.9 million in principal payments were made on March 1, 2016 and 2015, respectively. The remaining loan balance is payable as follows: $5.7 million on March 1, 2017; $1.9 million annually on March 1, 2018 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. The fair market value of the fixed rate debt at February 28, 2017 computed using a discounted cash flow analysis and comparable market rates was $20.1 million compared to the $19.8 million book value. Our other long-term debt has floating interest rates, and its book value approximates its fair value at February 28, 2017. All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain financial covenants, including maximum leverage ratios, minimum interest coverage ratios and minimum consolidated net worth levels (as each of these terms is defined in the various agreements). Our debt agreements also contain other customary covenants. We were in compliance with the terms of these agreements as of February 28, 2017. The following table contains information about interest rates on our Credit Agreement and the related weighted average borrowings outstanding for the periods covered by our consolidated statements of income: INTEREST RATES ON CREDIT AGREEMENT Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Average borrowings outstanding (1) $ 498,420 $ 399,800 $ 300,280 Average interest rate during each year (2) 2.2 % 1.6 % 2.5 % Interest rate range during each year 1.9 - 4.3 % 1.4 - 4.0 % 1.9 - 4.4 % Weighted average interest rates on borrowings outstanding at year end 2.3 % 2.8 % 1.9 % (1) (2) The average interest rate during each year is computed by dividing the total interest expense associated with our credit facility for a fiscal year by the average borrowings outstanding for the same fiscal year. The following table contains a summary of the components of our interest expense for the periods covered by our consolidated statements of income: INTEREST EXPENSE Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Interest and commitment fees $ 13,747 $ 9,949 $ 11,958 Deferred finance costs 1,200 Interest rate swap settlements, net - - 1,218 Cross-currency debt swap (90) (11) - Total interest expense $ 14,857 $ 11,096 $ 15,022 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 28, 2017 | |
Income Taxes | |
Income Taxes | Note 11 - Income Taxes We reorganized the Company in Bermuda in 1994 and many of our foreign subsidiaries are not directly or indirectly owned by a U.S. parent. As such, a large portion of our foreign income is not subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. The taxable income earned in each jurisdiction, whether U.S. or foreign, is determined by the subsidiary's operating results, and transfer pricing and tax regulations in the related jurisdictions. We have indefinitely reinvested $62.1 million of undistributed earnings of our foreign operations outside of our U.S. tax jurisdiction as of February 28, 2017. No deferred tax liability has been recognized for the remittance of such earnings to the U.S. since it is our intention to utilize these earnings in our foreign operations. Our components of income before income tax expense are as follows: COMPONENTS OF INCOME BEFORE TAXES Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 U.S. $ 15,051 $ 30,874 $ 34,876 Non-U.S. 134,838 88,944 112,338 Total $ 149,889 $ 119,818 $ 147,214 Our components of income tax expense (benefit) are as follows: COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 U.S. Current $ 16,744 $ 12,824 $ 18,525 Deferred (10,230) 6,514 Non-U.S. Current (290) Deferred 2,976 2,686 Total $ 9,200 $ 18,590 $ 16,050 Our total income tax expense differs from the amounts computed by applying the U.S. 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, 2017 2016 2015 Effective income tax rate at the U.S. statutory rate 35.0 % 35.0 % 35.0 % Impact of U.S. state income taxes 0.3 % 0.5 % 0.6 % Effect of zero tax rate in Macau (20.9) % (19.3) % (12.4) % Effect of statutory tax rate in Barbados (7.6) % (6.8) % (11.7) % Effect of statutory tax rate in Switzerland (3.8) % (5.7) % (2.9) % Effect of income from other non-U.S. operations subject to varying rates 2.2 % 4.1 % 0.9 % Effect of foreign exchange fluctuations 0.5 % 3.3 % 0.4 % Effect of asset impairment charges 0.4 % 1.1 % 1.6 % Other Items 0.0 % 3.3 % (0.6) % Effective income tax rate 6.1 % 15.5 % 10.9 % Our Macau subsidiary generates income from the sale of the goods that it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. We have not experienced any issues in meeting the required thresholds, and are unaware of any regulatory changes or impending circumstances that would restrict our right to continue to benefit from the tax holiday. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau. Each year there are significant transactions or events that are incidental to our core businesses and that by a combination of their nature and jurisdiction, can have a disproportionate impact on our reported effective tax rates. Without these transactions or events, the trend in our effective tax rates would follow a more normalized pattern. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of the last day of February 2017 and 2016 are as follows: COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES Last Day of February, (in thousands) 2017 2016 Deferred tax assets, gross: Operating loss carryforwards $ 16,799 $ 15,419 Accounts receivable 7,375 6,332 Inventories 11,057 10,372 Accrued expenses and other 12,007 10,783 Total gross deferred tax assets 47,238 Valuation allowance (17,600) (16,223) Deferred tax liabilities: Depreciation and amortization (47,774) (51,562) Total deferred tax liabilities, net $ (18,136) $ (24,879) In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the scheduled reversal of deferred tax liabilities, expected future taxable income and tax planning strategies in assessing the ultimate realization of deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not be recoverable. In fiscal 2017, the $1.4 million net increase in our valuation allowance was principally due to changes in estimates regarding the value of operating loss carryforwards to be used in the future. As of February 28, 2017 and February 29, 2016, we had remaining tax-deductible goodwill of $113.0 million and $133.1 million, respectively, resulting from acquisitions. The amortization of this goodwill is deductible over various periods ranging up to 12 years. The tax deduction for goodwill in fiscal 2018 is expected to be approximately $20.2 million. The composition of our operating loss carryforwards at the end of fiscal 2017 is as follows: SUMMARY OF OPERATING LOSS CARRYFORWARDS Balances at February 28, 2017 Tax Year Deferred Operating Expiration Tax Loss (in thousands) Date Range Assets Carryforward U.S. state operating loss carryforward 2017 - 2036 $ 458 $ 11,121 Non-U.S. operating loss carryforwards with definite carryover periods 2017 - 2027 1,418 8,349 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 14,923 50,514 Subtotals 16,799 $ 69,984 Less portion of valuation allowance established for operating loss carryforwards (15,954) Total $ 845 Any future amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income during any carryforward periods are reduced. During fiscal 2017 and 2016, changes in the total amount of unrecognized tax benefits were as follows: UNRECOGNIZED TAX BENEFITS Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Total unrecognized tax benefits, beginning balance $ 8,737 $ 10,295 Tax positions taken during the current period - - Resolution of tax dispute (1,381) - Changes in tax positions taken during a prior period 121 278 Lapse in statute of limitations (218) (1,375) Impact of foreign currency re-measurement (133) (421) Settlements (515) (40) Total unrecognized tax benefits, ending balance 6,611 8,737 Less current unrecognized tax benefits - (536) Noncurrent unrecognized tax benefits $ 6,611 $ 8,201 Included in the balance of unrecognized tax benefits at the end of fiscal 2017 were $6.6 million of tax benefits, which, if recognized, would affect our effective tax rate. We do not expect any significant changes to our existing unrecognized tax benefits during the next twelve months resulting from any issues currently pending with tax authorities. We classify interest and penalties on uncertain tax positions as income tax expense. At the end of February 2017 and 2016, the liability for tax-related interest and penalties included in unrecognized tax benefits was $1.7 million and $2.3 million, respectively. Additionally, during fiscal 2017, 2016 and 2015 we recognized expense (benefit) of ($0.6), $0.5 and $0.2 million, respectively, in the consolidated statements of income. We file income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. We do not expect that any proposed adjustments from these tax jurisdictions will have a material impact on our consolidated financial statements. As of February 28, 2017, tax years under examination or still subject to examination by material tax jurisdictions are as follows: Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2016 - 2017 United States * 2003, 2007, 2008 2003, 2007, 2008, 2014 - 2017 Switzerland - None - 2013 - 2017 Hong Kong 2014 2009 - 2017 * Kaz, Inc. and its U.S. subsidiaries are under examination for the 2003, 2007 and 2008 tax years. In February 2016, the examination of Helen of Troy Texas Corporation and its subsidiaries for the 2011 and 2012 tax years was completed with no impact to tax expense. During fiscal 2017 we received an initial notice from a state tax authority which questioned our determination of taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure. We believe we have accurately reported our taxable income and will be pursuing the matter through routine administrative processes with the state. We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity. |
Fair Value
Fair Value | 12 Months Ended |
Feb. 28, 2017 | |
Fair Value | |
Fair Value | Note 12 – Fair Value We classify our various assets and liabilities recorded or reported at fair value under a hierarchy prescribed by GAAP that prioritizes inputs to fair value measurement techniques into three broad levels: · Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; · Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and · Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assets and liabilities subject to classification are classified upon acquisition. When circumstances dictate the transfer of an asset or liability to a different level, our policy is to recognize the transfer at the beginning of the reporting period in which the event resulting in the transfer occurred. The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the last day of February 2017 and 2016: FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES Fair Values at February 28, 2017 (in thousands) (Level 2) (1) Assets: Money market accounts $ 2,711 Foreign currency contracts 2,167 Total assets $ 4,878 Liabilities: Fixed rate debt (2) $ 20,105 Floating rate debt 465,852 Foreign currency contracts 47 Total liabilities $ 486,004 Fair Values at February 29, 2016 (in thousands) (Level 2) (1) Assets: Money market accounts $ 211,964 Foreign currency contracts 1,372 Total assets $ 213,336 Liabilities: Fixed rate debt (2) $ 40,281 Floating rate debt 580,418 Foreign currency contracts 502 Total liabilities $ 621,201 (1) Our financial assets and liabilities are classified as Level 2 assets because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. (2) 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 at February 29, 2016 primarily held short-term U.S. treasury obligations and are included in cash and cash equivalents in the accompanying consolidated balance sheets. Money market accounts temporarily held $210 million drawn shortly before the end of fiscal 2016 in order to facilitate the closing of the Hydro Flask acquisition in March 2016. We use derivatives for hedging purposes and our derivatives are primarily foreign currency contracts and a cross-currency debt swap. See Notes 1, 13 and 18 to these consolidated financial statements for more information on our hedging activities. 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, 2017 and February 29, 2016 of 1.8% and 2.4%, respectively. All other long-term debt has floating interest rates, and its book value approximates its fair value as of the reporting date. Our other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of our impairment testing. Note 6 to these consolidated financial statements contains additional information regarding impairment testing and related intangible asset impairments. The table below presents other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) for fiscal 2017 and 2016: OTHER NON-FINANCIAL ASSETS FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (Level 3) Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Beginning balances $ 958,756 $ 948,157 Total income (expense): Included in net income - realized (40,614) (31,547) Acquired during the period 200,565 44,052 Acquisition adjustments and retirements during the period (289) (1,906) Ending balances $ 1,118,418 $ 958,756 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Feb. 28, 2017 | |
Financial Instruments and Risk Management | |
Financial Instruments and Risk Management | Note 13 – Financial Instruments and Risk Management Foreign Currency Risk – Our functional currency is the U.S. Dollar. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales, certain inventory purchases and operating expenses. As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies. For fiscal 2017, 2016 and 2015, approximately 12%, 14% and 14%, respectively, of our net sales revenue was in foreign currencies. These sales were primarily denominated in British Pounds, Euros, Mexican Pesos, Canadian Dollars, and Venezuelan Bolivars. 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 exchange gains (losses) from foreign currency fluctuations, including the impact of currency hedges and the cross-currency debt swap, of $0.5, ($3.1) and ($5.7) million in SG&A during fiscal 2017, 2016 and 2015, respectively. We hedge against certain foreign currency exchange rate-risk by using a series of forward contracts designated as cash flow hedges and mark-to-market derivatives to protect against the foreign currency exchange risk inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. We do not enter into any forward exchange contracts or similar instruments for trading or other speculative purposes. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A in the same period they are settled. The ineffective portion, which is not material for any year presented, is immediately recognized in SG&A. Interest Rate Risk – Interest on our outstanding debt as of February 28, 2017 is both floating and fixed. Fixed rates are in place on $20 million of Senior Notes at 3.9% and floating rates are in place on the balance of all other debt outstanding, which totaled $470.7 million as of February 28, 2017. If short-term interest rates increase, we will incur higher interest rates on any future outstanding balances of floating rate debt. The following table summarizes the fair values of our various derivative instruments at the end of fiscal 2017 and 2016: FAIR VALUES OF DERIVATIVE INSTRUMENTS February 28, 2017 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Hedge Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 2/2018 € 27,500 $ 727 $ - $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 6/2018 $ 26,000 155 32 - - Foreign currency contracts - sell Pounds Cash flow 2/2018 £ 13,500 548 - - - Foreign currency contracts - sell Mexican Pesos Cash flow 2/2018 $ 59,600 - - 47 - Subtotal 1,430 32 47 - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps (1) 1/2018 $ 10,000 705 - - - Total fair value $ 2,135 $ 32 $ 47 $ - (1) We have entered into foreign currency contracts referred to as “cross-currency deb swaps”, which in effect adjusts the currency denomination of our 3.9% Senior Notes due January 2018 to the Euro for the notional amounts reported, creating an economic hedge against currency movements. On these contracts, we have not elected hedge accounting. February 29, 2016 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Hedge Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 2/2017 € 27,000 $ 1,066 $ - $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 6/2017 $ 28,000 - - 495 7 Foreign currency contracts - sell Pounds Cash flow 2/2017 £ 3,450 94 - - - Foreign currency contracts - sell Australian Dollars Cash flow 8/2016 $ 1,650 6 - - - Subtotal 1,166 - 495 7 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap (1) 1/2018 $ 5,000 - 206 - - Total fair value $ 1,166 $ 206 $ 495 $ 7 The pre-tax effect of derivative instruments for fiscal 2017 and 2016 is as follows: PRE-TAX EFFECT OF DERIVATIVE INSTRUMENTS Fiscal Years Ended the Last Day of February, Gain / (Loss) Gain / (Loss) Reclassified from Recognized in OCI Accumulated Other Comprehensive Gain / (Loss) Recognized (effective portion) Income (Loss) into Income As Income (in thousands) 2017 2016 Location 2017 2016 Location 2017 2016 Currency contracts - cash flow hedges $ 2,205 $ 1,978 SG&A $ 1,454 $ 1,203 $ - $ - Interest rate swaps - cash flow hedges - - Interest expense - - - - Cross-currency debt swaps - principal - - - - SG&A 499 206 Cross-currency debt swaps - interest - - - - Interest Expense 90 11 Total $ 2,205 $ 1,978 $ 1,454 $ 1,203 $ 589 $ 217 We expect net gains of $1.4 million associated with foreign currency contracts currently reported in accumulated other comprehensive income, to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates change and the underlying contracts settle. See Notes 1, 12 and 18 to these consolidated financial statements for more information on our hedging activities. Counterparty Credit Risk – Financial instruments, including foreign currency contracts, cross-currency debt swaps and interest rate swaps, expose us to counterparty credit risk for nonperformance. We manage our exposure to counterparty credit risk by dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote. Risks Inherent in Cash and Cash Equivalents – As the levels of our cash and cash equivalents change, they can become more subject to foreign exchange rate risk, interest rate risk, credit risk, and liquidity risk. Cash consists of interest-bearing, non-interest-bearing and short-term investment accounts. We consider money market accounts, which at February 29, 2016 primarily held short-term U.S. treasury obligations, to be cash equivalents. The following table summarizes our cash and cash equivalents at the end of fiscal 2017 and 2016: CASH AND CASH EQUIVALENTS February 28, 2017 February 29, 2016 Carrying Range of Carrying Range of (in thousands) Amount Interest Rates Amount Interest Rates Cash, interest and non-interest-bearing accounts $ 20,376 0.00 to 0.35% $ 13,836 0.00 to 0.50% Money market funds 2,711 0.18 to 0.19% 211,964 0.11 to 0.19% Total cash and cash equivalents $ 23,087 $ 225,800 Our money market balance at the end of fiscal 2016 includes $210 million drawn shortly before the end of the fiscal year, in order to facilitate the closing of the Hydro Flask acquisition in March 2016. |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2017 | |
Other Commitments and Contingencies | |
Other Commitments and Contingencies | Note 14 – 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 and Related Matters – We have entered into employment contracts with certain officers, including an employment agreement with Mr. Julien Mininberg, the Company’s CEO, that was amended and restated on January 7, 2016. The amended and restated agreement, among other things, extended the term of Mr. Mininberg’s employment agreement from March 1, 2016 through February 28, 2019. 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 dependent 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, 2017, the estimated aggregate commitment for potential future compensation and/or severance pursuant to all continuing employment contracts, was approximately $12.0 million, payable over varying terms up to two years from the date of separation. 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 fluctuations in the Chinese Renminbi against the U.S. Dollar have resulted in variability in our cost of goods sold. In the past, certain Chinese suppliers have closed operations due to economic conditions that pressured their profitability. Although we have multiple sourcing partners for certain products, occasionally we are unable to source certain items on a timely basis due to changes occurring with our suppliers. We believe that we could source similar products outside China, if necessary, and we continuously explore expanding sourcing alternatives in other countries. However, the relocation of any production capacity could require substantial time and increased costs. Customer Incentives – We regularly enter into arrangements with customers whereby we offer various incentives, including incentives in the form of volume rebates. Our 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 8 to these consolidated financial statements 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. Thermometer Patent Litigation – In January 2016, a jury ruled against the Company in a case that involved claims by Exergen Corporation. The case involved the alleged patent infringement related to two forehead thermometer models sold by our subsidiary, Kaz USA, Inc., in the United States. As a result of the jury verdict, we recorded a charge in fiscal 2016 including legal fees and other related expenses, of $17.8 million (before and after tax). In June 2016, certain post-trial motions were concluded with Exergen Corporation being awarded an additional $1.5 million of pre-judgment compensation. We accrued this additional amount in May 2016. In July 2016, we appealed the judgment to the United States Court of Appeals for the Federal Circuit. The Company continues to vigorously pursue its appellate rights and defend against the underlying judgment. 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 2017 were: PAYMENTS DUE BY PERIOD - TWELVE MONTHS ENDED THE LAST DAY OF FEBRUARY: 2018 2019 2020 2021 2022 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Fixed rate debt $ 20,000 $ 20,000 $ - $ - $ - $ - $ - Floating rate debt 470,707 5,700 1,900 1,900 1,900 442,600 16,707 Long-term incentive plan payouts 12,840 6,630 3,716 2,494 - - - Interest on fixed rate debt 676 676 - - - - - Interest on floating rate debt (1) 47,995 10,050 10,006 9,963 9,920 7,717 339 Open purchase orders 193,434 193,434 - - - - - Long-term purchase commitments 804 501 303 - - - - Minimum royalty payments 62,820 13,089 12,841 12,947 9,856 8,895 5,192 Advertising and promotional 56,006 19,879 7,145 7,253 7,337 7,413 6,979 Operating leases 37,143 6,511 5,936 4,440 4,118 3,878 12,260 Capital spending commitments 683 683 - - - - - Total contractual obligations (2) $ 903,108 $ 277,153 $ 41,847 $ 38,997 $ 33,131 $ 470,503 $ 41,477 (1) We estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at February 28, 2017 remain constant into the future. This is an estimate, as actual rates will vary over time. In addition, for the Credit Agreement, we assume that the balance outstanding as of February 28, 2017 remains the same for the remaining term of the agreement. The actual balance outstanding under our Credit Agreement may fluctuate significantly in future periods, depending on the availability of cash flow from operations and future investing and financing considerations. (2) In addition to the contractual obligations and commercial commitments in the table above, as of February 28, 2017, we have recorded a provision for uncertain tax positions of $6.6 million. We are unable to reliably estimate the timing of most of the future payments, if any, related to uncertain tax positions; therefore, we have excluded these tax liabilities from the table above. |
Repurchases of Helen of Troy Co
Repurchases of Helen of Troy Common Stock | 12 Months Ended |
Feb. 28, 2017 | |
Repurchase of Helen of Troy Common Stock | |
Repurchase of Helen of Troy Common Stock | Note 15 – Repurchase of Helen of Troy Common Stock In February 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 or other needs. This resolution superseded the previous resolution in place. As of February 28, 2017, we were authorized to purchase $83.4 million of common stock. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. 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 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. The following table summarizes our share repurchase activity for the periods covered below: SHARE REPURCHASES Year Ended the Last Day of February (in thousands, except per share data) 2017 2016 2015 Common stock repurchased on the open market or through tender offer (1): Number of shares 922,731 1,126,796 4,102,143 Aggregate value of shares (in thousands) $ 75,000 $ 100,000 $ 273,599 Average price per share $ 81.28 $ 88.75 $ 66.70 Common stock received in connection with share-based compensation (2): Number of shares 6,286 117,294 71,950 Aggregate value of shares (in thousands) $ 595 $ 6,411 $ 4,826 Average price per share $ 94.61 $ 54.66 $ 67.08 (1) Includes various open market purchases made in each of the three fiscal years including a modified “Dutch auction” tender offer completed during fiscal 2015, resulting in the repurchase of 3,693,816 shares of our outstanding common stock at a total cost of $247.8 million, including tender offer transaction-related costs. (2) In fiscal 2016, we issued 276,548 shares of common stock as payment of separation compensation due to our former CEO under his employment and separation agreements. In connection with this transaction, the former CEO tendered 116,012 shares back to the Company as payment for related federal tax obligations. The Company previously accrued and disclosed the separation compensation in fiscal 2014. Fiscal 2015 includes 68,086 shares of common stock having a market value of $67.10 per share, or $4.6 million in the aggregate, which were tendered by our former CEO as payment for related federal tax obligations arising from the vesting and settlement of performance-based restricted stock units and restricted stock awards. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Feb. 28, 2017 | |
Share-Based Compensation Plans | |
Share-Based Compensation Plans | Note 16 – Share-Based Compensation Plans We have equity awards outstanding under an expired employee stock option and restricted stock plan adopted in 1998 (the “1998 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 applicable listing standards for companies traded on the NASDAQ Stock Market LLC. Expired Plan 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 over 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, 2017, there were 1,200 shares of common stock subject to options 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. Under this plan, the Company offers stock-based compensation that includes stock options, annual restricted share awards, time-vested restricted stock units and performance-based restricted stock units. The plan will expire by its terms on August 19, 2018. · Stock Options: 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. These stock options are expensed ratably over their vesting terms. As of February 28, 2017, there were 447,137 shares of common stock subject to options outstanding under the plan. · Restricted Stock Awards (“RSAs”): RSAs were awarded to our former CEO that vested as a result of the achievement of certain performance targets specified in his employment agreement. RSAs for 62,304 shares of common stock for fiscal 2014 with a fair value at the date of the award of $67.10 per share, vested during fiscal 2015. In addition, during fiscal 2016, we issued an RSA that immediately vested for 2,000 shares of common stock to our current CEO at a fair value of $89.12 per share. · Restricted Stock Units (“RSUs”): RSUs are awards of time-vested restricted stock units that are independent of stock option grants and are generally subject to forfeiture if employment terminates prior to vesting. During fiscal 2017, 2016 and 2015, we granted RSUs that may be settled for up to 92,329, 29,932, and 28,937 shares of common stock, with weighted average grant date fair values of $96.74, $76.62 and $58.36, respectively, to the CEO and certain members of the management team. The awards vest over varying terms up to 4 years. The Company expenses the cost of restricted stock units ratably over their vesting periods. · Performance Restricted Stock Units (“PSUs”): PSUs are performance-based restricted stock unit awards that represent the right to receive unrestricted shares of stock based on the achievement of Company performance goals over the performance period established by the Compensation Committee of our Board of Directors. During fiscal 2017, 2016 and 2015, the Company granted PSUs that may be settled for up to 139,846 , 130,608 and 178,101 shares of common stock with average fair values at the grant date of $97.12, $76.62 and $58.36, respectively, to the CEO and certain members of the management team. These awards have three year performance periods ending on the last day of fiscal 2019, 2018 and 2017, respectively. The awards will vest and settle on the date the Compensation Committee certifies that the performance goals have been achieved. Expense for the new plan must be estimated until earned, subject to a probability assessment of achieving the various performance goals and payout levels. A summary of shares available for issue under the 2008 stock incentive plan follows: SUMMARY OF SHARES AVAILABLE FOR ISSUE UNDER THE 2008 STOCK INCENTIVE PLAN Shares originally authorized 3,750,000 Less cumulative stock option grants issued, net of forfeitures (1,182,894) Less restricted share awards previously vested and settled (439,613) Subtotal 2,127,493 Less maximum RSUs issuable upon vesting (1) (123,425) Less maximum PSUs issuable upon vesting (1) (396,312) Shares available for issuance 1,607,756 (1) RSUs and PSUs potentially issuable are estimated assuming the maximum payouts adjusted for actual forfeitures to date. 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 our Board of Directors. The plan will expire by its terms on August 19, 2018. As of February 28, 2017, 78,825 shares of restricted stock have been granted and 96,175 shares remained available for future issue under the plan. Under the 2008 Directors’ Plan for fiscal 2017, 2016 and 2015 , the Company granted 5,285, 5,649 and 9,267 shares of restricted stock, respectively, to certain members of our Board of Directors having weighted average fair values at the date of grant of $92.98, $87.04 and $61.72 per share for each year, respectively. The restricted stock awards vested immediately, were valued at the fair value of our 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% 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% 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 2017, 2016 and 2015, plan participants acquired a total of 32,110, 28,433 and 31,128 shares of common stock at average prices of $76.77, $67.77 and $49.49 per share, respectively. As of February 28, 2017, there were 66,542 shares available for future issue under the plan. We recorded share-based compensation expense in SG&A as follows: SHARE-BASED PAYMENT EXPENSE Fiscal Years Ended the Last Day of February, (in thousands, except per share data) 2017 2016 2015 Stock options $ 2,614 $ 2,961 $ 3,279 Directors stock compensation 700 700 816 Performance based and other stock awards 11,812 4,478 1,732 Employee stock purchase plan 580 552 391 Share-based payment expense 15,706 8,691 6,218 Less income tax benefits (2,396) (1,284) (661) Share-based payment expense, net of income tax benefits $ 13,310 $ 7,407 $ 5,557 Earnings per share impact of share based payment expense: Basic $ 0.48 $ 0.26 $ 0.19 Diluted $ 0.48 $ 0.26 $ 0.19 The fair value of our stock option grants are estimated using a Black-Scholes option pricing model with the following assumptions: ASSUMPTIONS USED FOR FAIR VALUE OF STOCK OPTION GRANTS Fiscal Years Ended the Last Day of February, 2017 2016 2015 Range of risk free interest rates used 1.2% 0.9% - 1.5% 1.2% - 1.5% Expected dividend rate 0.0% 0.0% 0.0% Weighted average volatility rate 33.4% 39.1% 48.0% Range of expected volatility rates used 33.4% 35.9% - 39.7% 35.3% - 50.5% Range of expected terms used (in years) 4.1 4.1 - 4.4 4.1 - 4.4 The risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the stock option grants. The dividend yield is computed as zero because we have not historically paid dividends nor do we 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 stock option grants. We use our historical experience to estimate the expected term of each stock option grant. A summary of stock option activity under all our share-based compensation plans follows: SUMMARY OF STOCK OPTION ACTIVITY Weighted Weighted Weighted Average Average Average Remaining Exercise Grant Date Contractual Price Fair Value Term Intrinsic (in thousands, except contractual term and per share data) Options (per share) (per share) (in years) Value Outstanding at February 28, 2014 33.03 12.38 27,081 Grants 63.84 25.22 Exercises 29.70 6,498 Forfeitures / expirations 40.67 Outstanding at February 28, 2015 42.76 16.28 6.6 26,008 Grants 186 88.17 28.82 Exercises (178) 37.86 9,480 Forfeitures / expirations (127) 59.01 Outstanding at February 29, 2016 649 $ 53.94 $ 19.52 6.1 $ 26,847 Grants 2 102.04 28.74 Exercises (170) 43.07 9,152 Forfeitures / expirations (33) 65.68 Outstanding at February 28, 2017 448 $ 57.41 $ 20.54 $ 18,097 Exercisable at February 28, 2017 168 $ 46.37 $ 17.30 $ 8,647 A summary of non-vested stock option activity and changes under all our share-based compensation plans follows: NON-VESTED STOCK OPTION ACTIVITY Weighted Average Non- Grant Date Vested Fair Value (in thousands, except per share data) Options (per share) Outstanding at February 28, 2014 12.74 Grants 257 25.22 Vested or forfeited (311) 13.87 Outstanding at February 28, 2015 674 16.98 Grants 186 28.82 Vested or forfeited (339) 17.59 Outstanding at February 29, 2016 521 $ 20.81 Grants 2 28.74 Vested or forfeited (243) 18.95 Outstanding at February 28, 2017 280 $ 22.48 A summary of restricted stock award activity under our 2008 Stock Incentive Plan follows: SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Weighted Average Restricted Grant Date Stock Fair Value Fair Value (in thousands, except per share data) Awards (per share) Outstanding Due for Issue at February 28, 2014 62 67.10 4,073 Vested and issued (1) (62) 67.10 Due for issue at February 28, 2015 - - - Granted (2) 2 89.12 Vested and issued (2) (2) 89.12 Due for issue at February 29, 2016 - $ - $ - Granted - - Vested and issued - - Due for issue at February 28, 2017 - $ - $ - (1) Fiscal 2014 performance RSAs earned by our former CEO, which vested on April 22, 2014. (2) Fiscal 2016 RSA to our current CEO, which were granted and vested on May 8, 2015. A summary of restricted stock unit activity and changes under our 2008 Stock Incentive Plan follows: SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY Weighted Average Restricted Grant Date Stock Fair Value Fair Value (in thousands, except per share data) Units (per share) Outstanding Outstanding at February 28, 2014 (1) 100 32.88 6,531 Granted (2) 118 58.35 Vested (1) (100) 32.88 Outstanding at February 28, 2015 118 58.35 9,041 Granted (2) 95 76.62 Vested - - Outstanding at February 29, 2016 213 $ 66.50 $ 20,311 Granted (2) 162 96.90 Vested or forfeited (3) (53) 70.14 Outstanding at February 28, 2017 322 $ 81.19 $ 31,418 (1) Fiscal 2014 PSUs earned by our former CEO, which vested and settled on April 22, 2014 at a fair value of $67.10 per share. (2) Includes target level RSUs and PSUs granted to our current CEO and members of management in connection with long-term incentive compensation for fiscal 2015, 2016 and 2017. (3) Inclu des 15,643 RSUs which vested and settled throughout the year at an weighted average fair value of $60.28 per share. A summary of our total unrecognized share-based compensation expense as of February 28, 2017 is as follows: UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE Weighted Average Unrecognized Period of Compensation Recognition (in thousands, except weighted average expense period data) Expense (in months) Stock options $ 3,578 Restricted stock units (RSUs and PSUs) 10,804 |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Feb. 28, 2017 | |
Defined Contribution Plans | |
Defined Contribution Plans | Note 17 – 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 plans for fiscal 2017, 2016 and 2015 were $3.6, $3.5 and $3.2 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Feb. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 18 – Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component and related tax effects for fiscal 2017 and 2016 were as follows: CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (in thousands) Unrealized Holding Gains (Losses) on Cash Flow Hedges (1) Balance at February 28, 2015 $ (76) Other comprehensive income before reclassification 1,978 Amounts reclassified out of accumulated other comprehensive income (1,203) Tax effects (34) Other comprehensive income (loss) 741 Balance at February 29, 2016 665 Other comprehensive income before reclassification 2,205 Amounts reclassified out of accumulated other comprehensive income (1,454) Tax effects (243) Other comprehensive income (loss) 508 Balance at February 28, 2017 $ 1,173 (1) Includes net deferred tax benefits (expense) of ($0.2) and $0.0 million at the end of fiscal 2017 and 2016, respectively . See Notes 1, 12 and 13 to these consolidated financial statements for additional information regarding our hedging activities. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 28, 2017 | |
Selected Quarterly Financial Data (Unaudited) | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 19 – Selected Quarterly Financial Data (Unaudited) Selected unaudited quarterly financial data is as follows: SELECTED QUARTERLY FINANCIAL DATA (in thousands, except per share data) Fiscal Year 2017: May August November February Total Sales revenue, net $ 347,938 $ 368,170 $ 444,414 $ 376,697 $ 1,537,219 Gross profit 194,215 165,858 675,468 Asset impairment charges 7,400 - - 5,000 12,400 Net income 57,612 35,696 140,689 Earnings per share (1) Basic Diluted Fiscal Year 2016: May August November February Total Sales revenue, net $ 345,345 $ 369,129 $ 445,503 $ 385,724 $ 1,545,701 Gross profit 182,524 162,157 636,005 Asset impairment charges 3,000 - - 3,000 6,000 Net income 46,778 9,588 101,228 Earnings per share (1) Basic Diluted (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 and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Feb. 28, 2017 | |
Segment and Geographic Information | |
Segment and Geographic Information | Note 20 – Segment and Geographic Information The following table contains segment information: SEGMENT INFORMATION (in thousands) Nutritional Fiscal 2017 Housewares (1) Health & Home Supplements Beauty Total Sales revenue, net $ 418,128 $ 632,769 $ 130,543 $ 355,779 $ 1,537,219 Asset impairment charges - - 9,500 2,900 12,400 Operating income 89,641 52,294 (7,933) 30,330 164,332 Identifiable assets 642,967 679,248 205,889 284,992 1,813,096 Capital and intangible asset expenditures 5,652 5,192 5,112 4,663 20,619 Depreciation and amortization 5,723 20,374 8,408 9,836 44,341 Nutritional Fiscal 2016 Housewares Health & Home Supplements Beauty Total Sales revenue, net $ 310,663 $ 642,735 $ 153,126 $ 439,177 $ 1,545,701 Asset impairment charges - - - 6,000 6,000 Operating income 56,659 38,078 11,446 24,432 130,615 Identifiable assets 610,176 715,104 216,963 306,651 1,848,894 Capital and intangible asset expenditures 1,560 9,131 3,927 5,985 20,603 Depreciation and amortization 4,183 21,300 9,424 7,842 42,749 Nutritional Fiscal 2015 Housewares Health & Home Supplements (2) Beauty Total Sales revenue, net $ 296,252 $ 613,253 $ 100,395 $ 435,231 $ 1,445,131 Asset impairment charges - - - 9,000 9,000 Operating income 59,392 50,821 9,512 41,994 161,719 Identifiable assets 387,663 667,954 216,798 349,824 1,622,239 Capital and intangible asset expenditures 2,019 2,602 613 1,287 6,521 Depreciation and amortization 3,615 20,532 5,380 10,126 39,653 (1) Includes eleven and a half months of operating results for Hydro Flask, acquired on March 18, 2016. (2) Includes eight months of operating results for Healthy Directions, acquired on June 30, 2014. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment. In fiscal 2016, we began making an allocation of shared service and corporate overhead costs to the Nutritional Supplements segment. For fiscal 2017 and 2016, those allocations totaled $6.0 and $4.7 million, respectively. We do not allocate nonoperating income and expense, including interest or income taxes, to operating segments. Our domestic and international net sales revenue and long-lived assets were as follows: GEOGRAPHIC INFORMATION Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 SALES REVENUE, NET: United States $ 1,241,653 $ 1,233,464 $ 1,139,959 International 295,566 Total $ 1,537,219 $ 1,545,701 $ 1,445,131 LONG-LIVED ASSETS: United States $ 599,451 $ 606,925 $ 631,326 International: Barbados 498,077 315,182 319,298 Other international 159,490 Subtotal 657,567 486,881 452,906 Total $ 1,257,018 $ 1,093,806 $ 1,084,232 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 15%, 16% and 18% of our net sales revenue in fiscal 2017, 2016 and 2015, respectively. Sales to this customer are made within the Beauty and Health & Home segments. Of these sales, approximately 94%, 94% and 84% were within the U.S. during fiscal 2017, 2016 and 2015, respectively. No other customers accounted for 10% or more of net sales revenue during those fiscal years. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 28, 2017 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | HELEN OF TROY LIMITED AND SUBSIDIARIES Schedule II - Valuation Additions Charged to Net charge Beginning cost and (credit) to Ending (in thousands) Balance expenses (1) sales revenue (2) Deductions (3) Balance Year Ended February 28, 2017 Allowances for doubtful accounts $ 1,733 $ 2,326 $ - $ 697 $ 3,362 Allowances for back-to-stock returns 4,165 - (1,871) - $ 2,294 Year Ended February 29, 2016 Allowances for doubtful accounts $ 1,849 $ 225 $ - $ 341 $ 1,733 Allowances for back-to-stock returns 4,033 - 132 - $ 4,165 Year Ended February 28, 2015 Allowances for doubtful accounts $ 2,127 $ 299 $ - $ 577 $ 1,849 Allowances for back-to-stock returns 2,552 - 1,481 - $ 4,033 (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 Accoun30
Summary of Significant Accounting Policies and Related Information (Policies) | 12 Months Ended |
Feb. 28, 2017 | |
Summary of Significant Accounting Policies and Related Information | |
General | General When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to the Company’s common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to U.S. generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have four segments: Housewares, Health & Home, Nutritional Supplements, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage and food containers. The Health & Home segment focuses on healthcare devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Nutritional Supplements segment is a leading provider of premium branded vitamins, minerals and supplements, topical skin products and other health products sold directly to consumers. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30 th . We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Our consolidated financial statements include the accounts of Helen of Troy Limited and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. We have reclassified, combined or separately disclosed certain amounts in the prior years’ consolidated financial statements and accompanying footnotes to conform to the current year’s presentation. The effects of these reclassifications are shown in tables provided in Note 4, below. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts, which at February 28, 2017 primarily held short-term U.S. treasury obligations, to be cash equivalents. |
Receivables | 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 at-risk accounts. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. 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. We have a significant concentration of credit risk with one major customer at February 28, 2017 representing approximately 17% of gross trade receivables. In addition, as of February 28, 2017 and February 29, 2016, approximately 44% of our gross trade receivables in each year were due from our five top customers. |
Foreign currency transactions and related derivative financial instruments | Foreign currency transactions and related derivative financial instruments The U.S. Dollar is the functional currency for the Company and all its subsidiaries; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions involving other currencies have been re-measured in U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines and all other foreign exchange gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward currency contracts 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 comprehensive income, depending on the type of hedging instrument and the effectiveness of the hedges. We evaluate all hedging transactions each quarter to determine that they remain effective. Any material ineffectiveness is recorded as part of SG&A in our consolidated statements of income. |
Inventory and cost of goods sold | Inventory and cost of goods sold Our inventory consists almost entirely of finished goods. 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 $41.7, $39.2 and $36.4 million of such general and administrative expenses to inventory during fiscal 2017, 2016 and 2015, respectively. We estimate that $12.8 and $13.1 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2017 and February 29, 2016, respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. For fiscal 2017, 2016 and 2015, finished goods purchased from vendors in the Far East comprised approximately 67%, 68% and 67%, respectively, of finished goods purchased. During fiscal 2017, we had one vendor who fulfilled approximately 11% of our product requirements. Our top two manufacturers combined fulfilled approximately 18% of our product requirements. Over the same period, our top five suppliers fulfilled approximately 31% of our product requirements. |
Property and equipment | Property and equipment These assets are stated at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. |
License agreements, trademarks, patents and other intangible assets | License agreements, trademarks, patents, and other intangible assets A significant portion of our 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 represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. 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 in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 40%, 41% and 42% of consolidated net sales revenue for fiscal 2017, 2016 and 2015, respectively. During fiscal 2017, two license agreements accounted for net sales revenue subject to royalty payments of approximately 13% and 11% of consolidated net sales, respectively. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In most instances, we have determined that such acquired assets 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. |
Goodwill, intangible and other long-lived assets and related impairment testing | Goodwill, intangible and other long-lived assets and related impairment testing Our annual impairment testing for goodwill and indefinite lived intangible assets has historically occurred in the first quarter of our fiscal year. In December 2016, we elected to change our annual impairment testing to the fourth quarter of our fiscal year. Accordingly, for fiscal 2017 we completed impairment tests during both the first and fourth fiscal quarters. Going forward, we will complete the annual analysis of the carrying value of our goodwill and other intangible assets during the fourth 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. When events and changes in circumstances indicate there may be an impairment, we perform interim testing. |
Economic useful lives and amortization of intangible assets | Economic useful lives and amortization of intangible assets We amortize intangible assets, such as licenses and trademarks, over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset's economic useful life is deemed indefinite, that asset is not amortized. We review the economic useful lives of our intangible assets at least annually. Intangible assets consist primarily of goodwill, license agreements, trademarks, brand assets, customer lists, distribution rights, patents, and patent licenses. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 4 to 30 years. |
Warranties | 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 our historical experience and believe that this is the most reliable method by which we can estimate our warranty liability. The following table summarizes the activity in our accrual for the past two fiscal years: ACCRUAL FOR WARRANTY RETURNS Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Beginning balance $ 20,622 $ 23,553 Additions to the accrual 57,686 57,847 Reductions of the accrual - payments and credits issued (56,542) (60,778) Ending balance $ 21,766 $ 20,622 |
Financial instruments | 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 10 to these consolidated financial statements for our assessment of the fair value of our long-term debt. |
Income taxes and uncertain tax positions | Income taxes and uncertain tax positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount of benefit that meets the more-likely-than-not threshold to be sustained. We periodically evaluate these tax positions based on the latest available information. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed, and disclose as a separate liability in our financial statements, including related accrued interest and penalties. |
Revenue recognition | 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 advertising discounts, volume rebates and off-invoice markdowns. Such deductions are recorded 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 | 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 advertising performance, reductions in amounts received from customers under cooperative advertising programs are expensed in our consolidated statements of income in SG&A. Customer cooperative advertising incentives included in SG&A were $18.4, $19.4 and $17.3 million for fiscal 2017, 2016 and 2015, respectively. Reductions in amounts received from customers for advertising without proof of performance, markdown allowances, slotting fees, trade discounts, cash discounts, and volume rebates are all recorded as reductions of net sales revenue. |
Advertising | Advertising Advertising costs include cooperative advertising discussed above, traditional and internet media advertising and production expenses, and expenses associated with other promotional product messaging and consumer awareness programs. Advertising costs are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs, including amounts paid to customers for cooperative media and print advertising, of $111.6, $107.5 and $88.4 million during fiscal 2017, 2016 and 2015, respectively. |
Research and development expenses | Research and development expenses Expenditures for research activities relating to product design, development and improvement are charged to expense as incurred and included in our consolidated statements of income in SG&A. We incurred total research and development expenses of $9.7, $10.0 and $7.4 mil lion d uring fiscal 2017, 2016 and 2015, respectively. |
Shipping and handling revenues and expenses | 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 we incur. Our expenses for shipping and handling were $86.3, $88.9 and $87.9 million during fiscal 2017, 2016 and 2015, respectively. |
Share-based compensation plans | Share-based compensation plans We account for share-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”), to be measured based on the grant date fair value of the awards. The resulting expense is recognized over the periods during which the employee is required to perform service in exchange for the award. The estimated number of PSU’s that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. Stock options are recognized in the financial statements based on their fair values using an option-pricing model at the date of grant. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. See Note 16 to these consolidated financial statements for more information on our share-based compensation plans. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies and Related Information (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Summary of Significant Accounting Policies and Related Information | |
Summary of activity in warranty accrual | Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Beginning balance $ 20,622 $ 23,553 Additions to the accrual 57,686 57,847 Reductions of the accrual - payments and credits issued (56,542) (60,778) Ending balance $ 21,766 $ 20,622 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Earnings per Share | |
Schedule of weighted average diluted securities | Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Weighted average shares outstanding, basic 27,522 Incremental shares from share-based payment arrangements 369 476 456 Weighted average shares outstanding, diluted 27,891 Dilutive securities, stock options 365 Dilutive securities, unvested or unsettled stock awards 186 227 273 Antidilutive securities, stock options 137 |
Significant Accounting Matters
Significant Accounting Matters (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
New Accounting Pronouncements | |
Schedule of impact of Venezuela re-measurement related charges | Balance at February 29, 2016 (in thousands) Before Adjustment Adjustments After Location of Income Statement Impact Cash and cash equivalents $ 1,302 $ (1,292) $ 10 SG&A Other net assets, principally working capital other than inventory 8,120 (8,284) (164) SG&A Inventory 9,378 (9,078) 300 Cost of goods sold Property and equipment, net 82 (79) 3 SG&A Net investment in Venezuelan operations $ 18,882 $ (18,733) $ 149 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
New Accounting Pronouncements | |
Summary of Impact of Recent Accounting Changes | IMPACT OF ACCOUNTING CHANGES Increase (Decrease) (in thousands) Standard Transition Method February 28, 2017 February 29, 2016 Consolidated Balance Sheets Current deferred tax assets, net ASU 2015-17 Retrospective $ $ Long-term deferred tax assets, net ASU 2015-17 Retrospective $ $ Long-term deferred tax assets, net ASU-2016-09 Modified retrospective $ (232) $ - Other assets - debt issuance costs ASU 2015-03 Retrospective $ $ Other assets - accumulated amortization ASU 2015-03 Retrospective $ $ Long-term debt, current maturities ASU 2015-03 Retrospective $ $ Current deferred tax liabilities, net ASU 2015-17 Retrospective $ $ - Long-term deferred tax liabilities, net ASU 2015-17 Retrospective $ $ Long-term debt, excluding current maturities ASU 2015-03 Retrospective $ $ Additional paid-in capital ASU-2016-09 Modified retrospective $ 588 $ - Retained earnings ASU-2016-09 Modified retrospective $ (856) $ - IMPACT OF ACCOUNTING CHANGES Increase (Decrease) Fiscal Year Ended (in thousands) Standard Transition Method February 28, 2017 February 29, 2016 Consolidated Statements of Income Share-based compensation expense ASU-2016-09 Modified retrospective $ $ - Current income tax expense ASU-2016-09 Modified retrospective $ $ - Consolidated Statements of Cash Flows Cash provided by operating activities: Accrued income taxes ASU-2016-09 Retrospective $ $ Cash provided by financing activities: Share-based compensation tax benefit ASU-2016-09 Retrospective $ $ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Property and Equipment | |
Schedule of property and equipment | Estimated Useful Lives February 28, February 29, (in thousands) (Years) 2017 2016 Land - $ 12,800 $ 12,800 Building and improvements - 40 109,026 108,509 Computer, furniture and other equipment - 15 81,122 70,778 Tools, molds and other production equipment - 10 31,157 28,254 Construction in progress - 7,391 4,050 Property and equipment, gross 241,496 224,391 Less accumulated depreciation (106,561) (93,926) Property and equipment, net $ 134,935 $ 130,465 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets | |
Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment | GOODWILL AND INTANGIBLE ASSETS Balances at Balances at Weighted February 29, 2016 Year Ended February 28, 2017 February 28, 2017 Average Gross Cumulative Acquisition Gross Cumulative Life Carrying Goodwill and Retirement Carrying Goodwill Accumulated Net Book (in thousands) (Years) Amount Impairments Additions Impairments Adjustments Amount Impairments Amortization Value Housewares: Goodwill $ 166,132 $ - $ 116,053 $ - $ (129) $ 282,056 $ - $ - $ 282,056 Trademarks - indefinite 75,200 - 59,000 - - 134,200 - - 134,200 Other intangibles - finite 11.6 15,448 - 25,040 - (95) 40,393 - (15,476) 24,917 Subtotal 256,780 - 200,093 - (224) 456,649 - (15,476) 441,173 Health & Home: Goodwill 284,913 - - - - 284,913 - - 284,913 Trademarks - indefinite 54,000 - - - - 54,000 - - 54,000 Licenses - finite 15,300 - - - - 15,300 - (15,300) - Licenses - indefinite 7,400 - - - - 7,400 - - 7,400 Other Intangibles - finite 5.0 116,575 - 472 - (65) 116,982 - (66,027) 50,955 Subtotal 478,188 - 472 - (65) 478,595 - (81,327) 397,268 Nutritional Supplements: Goodwill 96,609 - - - - 96,609 - - 96,609 Brand assets - indefinite 65,520 - - (9,500) - 56,020 - - 56,020 Other intangibles - finite 4.3 44,180 - - - - 44,180 - (16,715) 27,465 Subtotal 206,309 - - (9,500) - 196,809 - (16,715) 180,094 Beauty: Goodwill 81,841 (46,490) - - - 81,841 (46,490) - 35,351 Trademarks - indefinite 48,754 - - (2,900) - 45,854 - - 45,854 Trademarks - finite 11.6 150 - - - - 150 - (92) 58 Licenses - indefinite 10,300 - - - - 10,300 - - 10,300 Licenses - finite 5.8 13,696 - - - - 13,696 - (11,849) 1,847 Other intangibles - finite 1.2 46,402 - - - - 46,402 - (39,929) 6,473 Subtotal 201,143 (46,490) - (2,900) - 198,243 (46,490) (51,870) 99,883 Total $ 1,142,420 $ (46,490) $ 200,565 $ (12,400) $ (289) $ 1,330,296 $ (46,490) $ (165,388) $ GOODWILL AND INTANGIBLE ASSETS Balances at Balances at Weighted February 28, 2015 Year Ended February 29, 2016 February 29, 2016 Average Gross Cumulative Acquisition Gross Cumulative Life Carrying Goodwill and Retirement Carrying Goodwill Accumulated Net Book (in thousands) (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 15,754 - 446 - (752) 15,448 - (12,916) 2,532 Subtotal 257,086 - 446 - (752) 256,780 - (12,916) 243,864 Health & Home: Goodwill 251,758 - 32,958 - 197 284,913 - - 284,913 Trademarks - indefinite 54,000 - - - - 54,000 - - 54,000 Licenses - finite 15,300 - - - - 15,300 - (12,750) 2,550 Licenses - indefinite - - 7,400 - - 7,400 - - 7,400 Other Intangibles - finite 113,727 - 2,848 - - 116,575 - (54,913) 61,662 Subtotal 434,785 - 43,206 - 197 478,188 - (67,663) 410,525 Nutritional Supplements: Goodwill 96,486 - - - 123 96,609 - - 96,609 Brand assets - indefinite 65,500 - 20 - - 65,520 - - 65,520 Other intangibles - finite 43,800 - 380 - - 44,180 - (10,431) 33,749 Subtotal 205,786 - 400 - 123 206,309 - (10,431) 195,878 Beauty: Goodwill 81,841 (46,490) - - - 81,841 (46,490) - 35,351 Trademarks - indefinite 54,754 - - (6,000) - 48,754 - - 48,754 Trademarks - finite 150 - - - - 150 - (87) 63 Licenses - indefinite 10,300 - - - - 10,300 - - 10,300 Licenses - finite 13,696 - - - - 13,696 - (11,532) 2,164 Other intangibles - finite 47,876 - - - (1,474) 46,402 - (34,545) 11,857 Subtotal 208,617 (46,490) - (6,000) (1,474) 201,143 (46,490) (46,164) 108,489 Total $ 1,106,274 $ (46,490) $ 44,052 $ (6,000) $ (1,906) $ 1,142,420 $ (46,490) $ (137,174) $ 958,756 |
Summary of amortization expense attributable to intangible assets | Aggregate Amortization Expense (in thousands) Fiscal 2017 $ 28,308 Fiscal 2016 $ 27,773 Fiscal 2015 $ 25,328 |
Schedule of estimated amortization expense of intangible assets | Estimated Amortization Expense (in thousands) Fiscal 2018 $ 25,172 Fiscal 2019 $ 20,206 Fiscal 2020 $ 19,102 Fiscal 2021 $ 16,532 Fiscal 2022 $ 6,037 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Hydro Flask | |
Acquisitions | |
Schedule of net assets recorded upon acquisition | Assets: Receivables $ 7,955 Inventory 6,243 Prepaid expenses and other current assets 336 Property and equipment 1,108 Goodwill 116,053 Trade names - indefinite 59,000 Technology assets - definite 10,300 Customer relationships - definite 14,200 Subtotal - assets 215,195 Liabilities: Accounts payable 2,275 Accrued expenses 3,662 Subtotal - liabilities 5,937 Net assets recorded $ 209,258 |
Schedule of impact of acquisition on consolidated condensed statements of income | Fiscal Year March 18, 2016 (acquisition date) through February 28, 2017 Ended (in thousands, except earnings per share data) February 28, 2017 Sales revenue, net $ 107,005 Net income 27,902 Earnings per share: Basic $ 1.01 Diluted $ 1.00 |
Schedule of supplemental pro forma impact on consolidated condensed statements of income | As if the acquisition had been completed at the beginning of March 1, 2015 Fiscal Years Ended the Last Day of February, (in thousands, except earnings per share data) 2017 2016 Sales revenue, net $ 1,540,714 $ 1,603,656 Net income 141,325 113,906 Earnings per share: Basic $ 5.13 $ 4.03 Diluted $ 5.07 $ 3.96 |
Healthy Directions | |
Acquisitions | |
Schedule of net assets recorded upon acquisition | Assets: Receivables $ 257 Inventory 6,226 Prepaid expenses and other current assets 1,875 Property and equipment 5,962 Goodwill 95,308 Brand assets - indefinite 65,500 Customer relationships - definite 43,800 Subtotal - assets 218,928 Liabilities: Accounts payable 6,479 Accrued expenses 13,964 Other long-term liabilities 2,542 Subtotal - liabilities 22,985 Net assets recorded $ 195,943 |
Accrued Expenses and Other Cu38
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | February 28, February 29, (in thousands) 2017 2016 Accrued compensation, benefits and payroll taxes $ 34,917 $ 28,912 Accrued sales returns, discounts and allowances 27,377 27,530 Accrued warranty returns 21,766 20,622 Accrued advertising 23,747 22,087 Accrued legal fees and settlements 16,908 16,699 Accrued royalties 9,553 7,961 Accrued property, sales and other taxes 6,564 6,938 Accrued freight and duty 3,454 2,043 Accrued product liability 2,141 2,098 Derivative liabilities, current 47 495 Liability for uncertain tax positions - 536 Other 6,726 5,324 Total accrued expenses and other current liabilities $ 153,200 $ 141,245 |
Other Liabilities, Noncurrent (
Other Liabilities, Noncurrent (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Other Liabilities, Noncurrent | |
Schedule of other liabilities, noncurrent | February 28, February 29, (in thousands) 2017 2016 Deferred compensation liability $ 6,560 $ 8,298 Liability for uncertain tax positions 6,611 8,201 Other liabilities 8,490 10,116 Total other liabilities, noncurrent $ 21,661 $ 26,615 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Long-Term Debt | |
Summary of long-term debt | Original Date Interest Last Day of February (dollars in thousands) Borrowed Rates Matures 2017 2016 $37.6 million unsecured loan with the Mississippi Business Finance Corporation (the "MBFC Loan"), interest is set and payable quarterly at a Base Rate, plus a margin of up to 1.0%, or applicable LIBOR plus a margin of up to 2.0%, as determined by the interest rate elected and the Leverage Ratio. Loan subject to holder's call on or after March 1, 2018. Loan can be prepaid without penalty. (1) 03/13 Floating 03/23 $ 29,903 $ 33,706 $100 million unsecured Senior Notes payable at a fixed interest rate of 3.9%. Interest payable semi-annually. Annual principal payments of $20 million began in January 2014. Prepayment of notes are subject to a "make whole" premium. 01/11 3.9 % 01/18 19,763 39,496 Credit Agreement 01/15 Floating 12/21 435,949 546,712 Total long-term debt 485,615 619,914 Less current maturities of long-term debt (24,404) (22,644) Long-term debt, excluding current maturities $ 461,211 $ 597,270 (1) $3.8 and $1.9 million in principal payments were made on March 1, 2016 and 2015, respectively. The remaining loan balance is payable as follows: $5.7 million on March 1, 2017; $1.9 million annually on March 1, 2018 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. |
Schedule of interest rates on credit agreement | Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Average borrowings outstanding (1) $ 498,420 $ 399,800 $ 300,280 Average interest rate during each year (2) 2.2 % 1.6 % 2.5 % Interest rate range during each year 1.9 - 4.3 % 1.4 - 4.0 % 1.9 - 4.4 % Weighted average interest rates on borrowings outstanding at year end 2.3 % 2.8 % 1.9 % (1) (2) The average interest rate during each year is computed by dividing the total interest expense associated with our credit facility for a fiscal year by the average borrowings outstanding for the same fiscal year. |
Summary of components of interest expense | Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 Interest and commitment fees $ 13,747 $ 9,949 $ 11,958 Deferred finance costs 1,200 Interest rate swap settlements, net - - 1,218 Cross-currency debt swap (90) (11) - Total interest expense $ 14,857 $ 11,096 $ 15,022 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Income Taxes | |
Schedule of components of income before taxes | COMPONENTS OF INCOME BEFORE TAXES Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 U.S. $ 15,051 $ 30,874 $ 34,876 Non-U.S. 134,838 88,944 112,338 Total $ 149,889 $ 119,818 $ 147,214 |
Schedule of components of income tax expense (benefit) | COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 U.S. Current $ 16,744 $ 12,824 $ 18,525 Deferred (10,230) 6,514 Non-U.S. Current (290) Deferred 2,976 2,686 Total $ 9,200 $ 18,590 $ 16,050 |
Schedule of effective income tax rate reconciliation | INCOME TAX RATE RECONCILIATION Fiscal Years Ended the Last Day of February, 2017 2016 2015 Effective income tax rate at the U.S. statutory rate 35.0 % 35.0 % 35.0 % Impact of U.S. state income taxes 0.3 % 0.5 % 0.6 % Effect of zero tax rate in Macau (20.9) % (19.3) % (12.4) % Effect of statutory tax rate in Barbados (7.6) % (6.8) % (11.7) % Effect of statutory tax rate in Switzerland (3.8) % (5.7) % (2.9) % Effect of income from other non-U.S. operations subject to varying rates 2.2 % 4.1 % 0.9 % Effect of foreign exchange fluctuations 0.5 % 3.3 % 0.4 % Effect of asset impairment charges 0.4 % 1.1 % 1.6 % Other Items 0.0 % 3.3 % (0.6) % Effective income tax rate 6.1 % 15.5 % 10.9 % |
Schedule of components of deferred tax assets and liabilities | COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES Last Day of February, (in thousands) 2017 2016 Deferred tax assets, gross: Operating loss carryforwards $ 16,799 $ 15,419 Accounts receivable 7,375 6,332 Inventories 11,057 10,372 Accrued expenses and other 12,007 10,783 Total gross deferred tax assets 47,238 Valuation allowance (17,600) (16,223) Deferred tax liabilities: Depreciation and amortization (47,774) (51,562) Total deferred tax liabilities, net $ (18,136) $ (24,879) |
Schedule of operating loss carryforwards | SUMMARY OF OPERATING LOSS CARRYFORWARDS Balances at February 28, 2017 Tax Year Deferred Operating Expiration Tax Loss (in thousands) Date Range Assets Carryforward U.S. state operating loss carryforward 2017 - 2036 $ 458 $ 11,121 Non-U.S. operating loss carryforwards with definite carryover periods 2017 - 2027 1,418 8,349 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 14,923 50,514 Subtotals 16,799 $ 69,984 Less portion of valuation allowance established for operating loss carryforwards (15,954) Total $ 845 |
Schedule of unrecognized tax benefits | UNRECOGNIZED TAX BENEFITS Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Total unrecognized tax benefits, beginning balance $ 8,737 $ 10,295 Tax positions taken during the current period - - Resolution of tax dispute (1,381) - Changes in tax positions taken during a prior period 121 278 Lapse in statute of limitations (218) (1,375) Impact of foreign currency re-measurement (133) (421) Settlements (515) (40) Total unrecognized tax benefits, ending balance 6,611 8,737 Less current unrecognized tax benefits - (536) Noncurrent unrecognized tax benefits $ 6,611 $ 8,201 |
Schedule of material tax years under examination or still subject to examination by major tax jurisdictions | Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2016 - 2017 United States * 2003, 2007, 2008 2003, 2007, 2008, 2014 - 2017 Switzerland - None - 2013 - 2017 Hong Kong 2014 2009 - 2017 * Kaz, Inc. and its U.S. subsidiaries are under examination for the 2003, 2007 and 2008 tax years. In February 2016, the examination of Helen of Troy Texas Corporation and its subsidiaries for the 2011 and 2012 tax years was completed with no impact to tax expense. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Fair Value | |
Schedule of fair value hierarchy of financial assets and liabilities presented at fair value and measured on a recurring basis | FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES Fair Values at February 28, 2017 (in thousands) (Level 2) (1) Assets: Money market accounts $ 2,711 Foreign currency contracts 2,167 Total assets $ 4,878 Liabilities: Fixed rate debt (2) $ 20,105 Floating rate debt 465,852 Foreign currency contracts 47 Total liabilities $ 486,004 Fair Values at February 29, 2016 (in thousands) (Level 2) (1) Assets: Money market accounts $ 211,964 Foreign currency contracts 1,372 Total assets $ 213,336 Liabilities: Fixed rate debt (2) $ 40,281 Floating rate debt 580,418 Foreign currency contracts 502 Total liabilities $ 621,201 (1) Our financial assets and liabilities are classified as Level 2 assets because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. (2) 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) | OTHER NON-FINANCIAL ASSETS FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (Level 3) Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 Beginning balances $ 958,756 $ 948,157 Total income (expense): Included in net income - realized (40,614) (31,547) Acquired during the period 200,565 44,052 Acquisition adjustments and retirements during the period (289) (1,906) Ending balances $ 1,118,418 $ 958,756 |
Financial Instruments and Ris43
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Financial Instruments and Risk Management | |
Schedule of fair values of derivative instruments | FAIR VALUES OF DERIVATIVE INSTRUMENTS February 28, 2017 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Hedge Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 2/2018 € 27,500 $ 727 $ - $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 6/2018 $ 26,000 155 32 - - Foreign currency contracts - sell Pounds Cash flow 2/2018 £ 13,500 548 - - - Foreign currency contracts - sell Mexican Pesos Cash flow 2/2018 $ 59,600 - - 47 - Subtotal 1,430 32 47 - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps (1) 1/2018 $ 10,000 705 - - - Total fair value $ 2,135 $ 32 $ 47 $ - (1) We have entered into foreign currency contracts referred to as “cross-currency deb swaps”, which in effect adjusts the currency denomination of our 3.9% Senior Notes due January 2018 to the Euro for the notional amounts reported, creating an economic hedge against currency movements. On these contracts, we have not elected hedge accounting. February 29, 2016 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Hedge Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 2/2017 € 27,000 $ 1,066 $ - $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 6/2017 $ 28,000 - - 495 7 Foreign currency contracts - sell Pounds Cash flow 2/2017 £ 3,450 94 - - - Foreign currency contracts - sell Australian Dollars Cash flow 8/2016 $ 1,650 6 - - - Subtotal 1,166 - 495 7 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap (1) 1/2018 $ 5,000 - 206 - - Total fair value $ 1,166 $ 206 $ 495 $ 7 |
Schedule of pre-tax effect of derivative instruments | Fiscal Years Ended the Last Day of February, Gain / (Loss) Gain / (Loss) Reclassified from Recognized in OCI Accumulated Other Comprehensive Gain / (Loss) Recognized (effective portion) Income (Loss) into Income As Income (in thousands) 2017 2016 Location 2017 2016 Location 2017 2016 Currency contracts - cash flow hedges $ 2,205 $ 1,978 SG&A $ 1,454 $ 1,203 $ - $ - Interest rate swaps - cash flow hedges - - Interest expense - - - - Cross-currency debt swaps - principal - - - - SG&A 499 206 Cross-currency debt swaps - interest - - - - Interest Expense 90 11 Total $ 2,205 $ 1,978 $ 1,454 $ 1,203 $ 589 $ 217 |
Schedule of cash and cash equivalents | February 28, 2017 February 29, 2016 Carrying Range of Carrying Range of (in thousands) Amount Interest Rates Amount Interest Rates Cash, interest and non-interest-bearing accounts $ 20,376 0.00 to 0.35% $ 13,836 0.00 to 0.50% Money market funds 2,711 0.18 to 0.19% 211,964 0.11 to 0.19% Total cash and cash equivalents $ 23,087 $ 225,800 |
Other Commitments and Conting44
Other Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Other Commitments and Contingencies | |
Summary of contractual obligations and commercial commitments | PAYMENTS DUE BY PERIOD - TWELVE MONTHS ENDED THE LAST DAY OF FEBRUARY: 2018 2019 2020 2021 2022 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Fixed rate debt $ 20,000 $ 20,000 $ - $ - $ - $ - $ - Floating rate debt 470,707 5,700 1,900 1,900 1,900 442,600 16,707 Long-term incentive plan payouts 12,840 6,630 3,716 2,494 - - - Interest on fixed rate debt 676 676 - - - - - Interest on floating rate debt (1) 47,995 10,050 10,006 9,963 9,920 7,717 339 Open purchase orders 193,434 193,434 - - - - - Long-term purchase commitments 804 501 303 - - - - Minimum royalty payments 62,820 13,089 12,841 12,947 9,856 8,895 5,192 Advertising and promotional 56,006 19,879 7,145 7,253 7,337 7,413 6,979 Operating leases 37,143 6,511 5,936 4,440 4,118 3,878 12,260 Capital spending commitments 683 683 - - - - - Total contractual obligations (2) $ 903,108 $ 277,153 $ 41,847 $ 38,997 $ 33,131 $ 470,503 $ 41,477 (1) We estimate our future obligations for interest on our floating rate debt by assuming the weighted average interest rates in effect on each floating rate debt obligation at February 28, 2017 remain constant into the future. This is an estimate, as actual rates will vary over time. In addition, for the Credit Agreement, we assume that the balance outstanding as of February 28, 2017 remains the same for the remaining term of the agreement. The actual balance outstanding under our Credit Agreement may fluctuate significantly in future periods, depending on the availability of cash flow from operations and future investing and financing considerations. (2) In addition to the contractual obligations and commercial commitments in the table above, as of February 28, 2017, we have recorded a provision for uncertain tax positions of $6.6 million. We are unable to reliably estimate the timing of most of the future payments, if any, related to uncertain tax positions; therefore, we have excluded these tax liabilities from the table above. |
Repurchase of Helen of Troy Com
Repurchase of Helen of Troy Common Stock (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Repurchase of Helen of Troy Common Stock | |
Summary of share repurchase activity | Year Ended the Last Day of February (in thousands, except per share data) 2017 2016 2015 Common stock repurchased on the open market or through tender offer (1): Number of shares 922,731 1,126,796 4,102,143 Aggregate value of shares (in thousands) $ 75,000 $ 100,000 $ 273,599 Average price per share $ 81.28 $ 88.75 $ 66.70 Common stock received in connection with share-based compensation (2): Number of shares 6,286 117,294 71,950 Aggregate value of shares (in thousands) $ 595 $ 6,411 $ 4,826 Average price per share $ 94.61 $ 54.66 $ 67.08 (1) Includes various open market purchases made in each of the three fiscal years including a modified “Dutch auction” tender offer completed during fiscal 2015, resulting in the repurchase of 3,693,816 shares of our outstanding common stock at a total cost of $247.8 million, including tender offer transaction-related costs. (2) In fiscal 2016, we issued 276,548 shares of common stock as payment of separation compensation due to our former CEO under his employment and separation agreements. In connection with this transaction, the former CEO tendered 116,012 shares back to the Company as payment for related federal tax obligations. The Company previously accrued and disclosed the separation compensation in fiscal 2014. Fiscal 2015 includes 68,086 shares of common stock having a market value of $67.10 per share, or $4.6 million in the aggregate, which were tendered by our former CEO as payment for related federal tax obligations arising from the vesting and settlement of performance-based restricted stock units and restricted stock awards. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Share-based compensation plans | |
Schedule of shares authorized for issuance under the stock incentive plan | Shares originally authorized 3,750,000 Less cumulative stock option grants issued, net of forfeitures (1,182,894) Less restricted share awards previously vested and settled (439,613) Subtotal 2,127,493 Less maximum RSUs issuable upon vesting (1) (123,425) Less maximum PSUs issuable upon vesting (1) (396,312) Shares available for issuance 1,607,756 (1) RSUs and PSUs potentially issuable are estimated assuming the maximum payouts adjusted for actual forfeitures to date. |
Schedule of share-based compensation expense in SG&A | SHARE-BASED PAYMENT EXPENSE Fiscal Years Ended the Last Day of February, (in thousands, except per share data) 2017 2016 2015 Stock options $ 2,614 $ 2,961 $ 3,279 Directors stock compensation 700 700 816 Performance based and other stock awards 11,812 4,478 1,732 Employee stock purchase plan 580 552 391 Share-based payment expense 15,706 8,691 6,218 Less income tax benefits (2,396) (1,284) (661) Share-based payment expense, net of income tax benefits $ 13,310 $ 7,407 $ 5,557 Earnings per share impact of share based payment expense: Basic $ 0.48 $ 0.26 $ 0.19 Diluted $ 0.48 $ 0.26 $ 0.19 |
Schedule of assumptions used for fair value of stock option grants | Fiscal Years Ended the Last Day of February, 2017 2016 2015 Range of risk free interest rates used 1.2% 0.9% - 1.5% 1.2% - 1.5% Expected dividend rate 0.0% 0.0% 0.0% Weighted average volatility rate 33.4% 39.1% 48.0% Range of expected volatility rates used 33.4% 35.9% - 39.7% 35.3% - 50.5% Range of expected terms used (in years) 4.1 4.1 - 4.4 4.1 - 4.4 |
Summary of option activity | SUMMARY OF STOCK OPTION ACTIVITY Weighted Weighted Weighted Average Average Average Remaining Exercise Grant Date Contractual Price Fair Value Term Intrinsic (in thousands, except contractual term and per share data) Options (per share) (per share) (in years) Value Outstanding at February 28, 2014 33.03 12.38 27,081 Grants 63.84 25.22 Exercises 29.70 6,498 Forfeitures / expirations 40.67 Outstanding at February 28, 2015 42.76 16.28 6.6 26,008 Grants 186 88.17 28.82 Exercises (178) 37.86 9,480 Forfeitures / expirations (127) 59.01 Outstanding at February 29, 2016 649 $ 53.94 $ 19.52 6.1 $ 26,847 Grants 2 102.04 28.74 Exercises (170) 43.07 9,152 Forfeitures / expirations (33) 65.68 Outstanding at February 28, 2017 448 $ 57.41 $ 20.54 $ 18,097 Exercisable at February 28, 2017 168 $ 46.37 $ 17.30 $ 8,647 |
Schedule of non-vested option activity | NON-VESTED STOCK OPTION ACTIVITY Weighted Average Non- Grant Date Vested Fair Value (in thousands, except per share data) Options (per share) Outstanding at February 28, 2014 12.74 Grants 257 25.22 Vested or forfeited (311) 13.87 Outstanding at February 28, 2015 674 16.98 Grants 186 28.82 Vested or forfeited (339) 17.59 Outstanding at February 29, 2016 521 $ 20.81 Grants 2 28.74 Vested or forfeited (243) 18.95 Outstanding at February 28, 2017 280 $ 22.48 |
Schedule of unrecognized share-based compensation expense | Weighted Average Unrecognized Period of Compensation Recognition (in thousands, except weighted average expense period data) Expense (in months) Stock options $ 3,578 Restricted stock units (RSUs and PSUs) 10,804 |
Restricted stock (RSA) | |
Share-based compensation plans | |
Summary of award activity | SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY Weighted Average Restricted Grant Date Stock Fair Value Fair Value (in thousands, except per share data) Awards (per share) Outstanding Due for Issue at February 28, 2014 62 67.10 4,073 Vested and issued (1) (62) 67.10 Due for issue at February 28, 2015 - - - Granted (2) 2 89.12 Vested and issued (2) (2) 89.12 Due for issue at February 29, 2016 - $ - $ - Granted - - Vested and issued - - Due for issue at February 28, 2017 - $ - $ - (1) Fiscal 2014 performance RSAs earned by our former CEO, which vested on April 22, 2014. (2) Fiscal 2016 RSA to our current CEO, which were granted and vested on May 8, 2015. |
Restricted Stock Units (RSU) | |
Share-based compensation plans | |
Summary of award activity | SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY Weighted Average Restricted Grant Date Stock Fair Value Fair Value (in thousands, except per share data) Units (per share) Outstanding Outstanding at February 28, 2014 (1) 100 32.88 6,531 Granted (2) 118 58.35 Vested (1) (100) 32.88 Outstanding at February 28, 2015 118 58.35 9,041 Granted (2) 95 76.62 Vested - - Outstanding at February 29, 2016 213 $ 66.50 $ 20,311 Granted (2) 162 96.90 Vested or forfeited (3) (53) 70.14 Outstanding at February 28, 2017 322 $ 81.19 $ 31,418 (1) Fiscal 2014 PSUs earned by our former CEO, which vested and settled on April 22, 2014 at a fair value of $67.10 per share. (2) Includes target level RSUs and PSUs granted to our current CEO and members of management in connection with long-term incentive compensation for fiscal 2015, 2016 and 2017. (3) Inclu des 15,643 RSUs which vested and settled throughout the year at an weighted average fair value of $60.28 per share. |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of changes in accumulated other comprehensive income (loss) by component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (in thousands) Unrealized Holding Gains (Losses) on Cash Flow Hedges (1) Balance at February 28, 2015 $ (76) Other comprehensive income before reclassification 1,978 Amounts reclassified out of accumulated other comprehensive income (1,203) Tax effects (34) Other comprehensive income (loss) 741 Balance at February 29, 2016 665 Other comprehensive income before reclassification 2,205 Amounts reclassified out of accumulated other comprehensive income (1,454) Tax effects (243) Other comprehensive income (loss) 508 Balance at February 28, 2017 $ 1,173 (1) Includes net deferred tax benefits (expense) of ($0.2) and $0.0 million at the end of fiscal 2017 and 2016, respectively . |
Selected Quarterly Financial 48
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Selected Quarterly Financial Data (Unaudited) | |
Schedule of selected unaudited quarterly financial data | SELECTED QUARTERLY FINANCIAL DATA (in thousands, except per share data) Fiscal Year 2017: May August November February Total Sales revenue, net $ 347,938 $ 368,170 $ 444,414 $ 376,697 $ 1,537,219 Gross profit 194,215 165,858 675,468 Asset impairment charges 7,400 - - 5,000 12,400 Net income 57,612 35,696 140,689 Earnings per share (1) Basic Diluted Fiscal Year 2016: May August November February Total Sales revenue, net $ 345,345 $ 369,129 $ 445,503 $ 385,724 $ 1,545,701 Gross profit 182,524 162,157 636,005 Asset impairment charges 3,000 - - 3,000 6,000 Net income 46,778 9,588 101,228 Earnings per share (1) Basic Diluted (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 and Geographic Inform49
Segment and Geographic Information (Tables) | 12 Months Ended |
Feb. 28, 2017 | |
Segment and Geographic Information | |
Schedule of segment information | SEGMENT INFORMATION (in thousands) Nutritional Fiscal 2017 Housewares (1) Health & Home Supplements Beauty Total Sales revenue, net $ 418,128 $ 632,769 $ 130,543 $ 355,779 $ 1,537,219 Asset impairment charges - - 9,500 2,900 12,400 Operating income 89,641 52,294 (7,933) 30,330 164,332 Identifiable assets 642,967 679,248 205,889 284,992 1,813,096 Capital and intangible asset expenditures 5,652 5,192 5,112 4,663 20,619 Depreciation and amortization 5,723 20,374 8,408 9,836 44,341 Nutritional Fiscal 2016 Housewares Health & Home Supplements Beauty Total Sales revenue, net $ 310,663 $ 642,735 $ 153,126 $ 439,177 $ 1,545,701 Asset impairment charges - - - 6,000 6,000 Operating income 56,659 38,078 11,446 24,432 130,615 Identifiable assets 610,176 715,104 216,963 306,651 1,848,894 Capital and intangible asset expenditures 1,560 9,131 3,927 5,985 20,603 Depreciation and amortization 4,183 21,300 9,424 7,842 42,749 Nutritional Fiscal 2015 Housewares Health & Home Supplements (2) Beauty Total Sales revenue, net $ 296,252 $ 613,253 $ 100,395 $ 435,231 $ 1,445,131 Asset impairment charges - - - 9,000 9,000 Operating income 59,392 50,821 9,512 41,994 161,719 Identifiable assets 387,663 667,954 216,798 349,824 1,622,239 Capital and intangible asset expenditures 2,019 2,602 613 1,287 6,521 Depreciation and amortization 3,615 20,532 5,380 10,126 39,653 (1) Includes eleven and a half months of operating results for Hydro Flask, acquired on March 18, 2016. (2) Includes eight months of operating results for Healthy Directions, acquired on June 30, 2014. |
Schedule of domestic and international net sales revenue and long-lived assets (in thousands) | GEOGRAPHIC INFORMATION Fiscal Years Ended the Last Day of February, (in thousands) 2017 2016 2015 SALES REVENUE, NET: United States $ 1,241,653 $ 1,233,464 $ 1,139,959 International 295,566 Total $ 1,537,219 $ 1,545,701 $ 1,445,131 LONG-LIVED ASSETS: United States $ 599,451 $ 606,925 $ 631,326 International: Barbados 498,077 315,182 319,298 Other international 159,490 Subtotal 657,567 486,881 452,906 Total $ 1,257,018 $ 1,093,806 $ 1,084,232 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies and Related Information - General and cash (Details) | 12 Months Ended | |
Feb. 28, 2017item$ / shares | Feb. 29, 2016$ / shares | |
Basis of Presentation and Conventions Used in this Report | ||
Common shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 |
Number of segments | item | 4 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies and Related Information - Receivables (Details) | 12 Months Ended | |
Feb. 28, 2017customeritem | Feb. 29, 2016customer | |
Receivables | ||
Number of receivables valuation reserves | item | 2 | |
Number of major customers | customer | 5 | 5 |
Concentration risk percentage | 44.00% | 44.00% |
Gross trade receivable | Customer concentration risk | Two major customers | ||
Receivables | ||
Concentration risk percentage | 17.00% | |
Gross trade receivable | Customer concentration risk | Five top customers | ||
Receivables | ||
Concentration risk percentage | 44.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies and Related Information - Inventory and Licenses (Details) $ in Millions | 12 Months Ended | ||
Feb. 28, 2017USD ($)item | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | |
Summary of significant accounting policies | |||
General and administrative expenses charged to inventory | $ | $ 41.7 | $ 39.2 | $ 36.4 |
General and administrative expenses directly attributable to the procurement of inventory included in inventory balances | $ | $ 12.8 | $ 13.1 | |
Concentration Risk, Percentage | 44.00% | 44.00% | |
Number of licensors exceeding 10 percent of net sales revenue | 2 | ||
Supplier concentration risk | Top vendor | |||
Summary of significant accounting policies | |||
Number of suppliers exceeding 10 percent of product requirements | 1 | ||
Supplier concentration risk | Top two manufacturers | |||
Summary of significant accounting policies | |||
Number of third-party manufacturers | 2 | ||
Supplier concentration risk | Top five suppliers | |||
Summary of significant accounting policies | |||
Number of suppliers exceeding 10 percent of product requirements | 5 | ||
Cost of goods sold manufactured by vendors | Supplier concentration risk | Vendors in Far East | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 67.00% | 68.00% | 67.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top vendor | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 11.00% | ||
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top two manufacturers | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 18.00% | ||
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top five suppliers | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 31.00% | ||
Net sales revenue | Net sales revenue subject to trademark license agreements | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 40.00% | 41.00% | 42.00% |
Net sales revenue | Net sales revenue subject to trademark license agreements | Top Licensor | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 13.00% | ||
Net sales revenue | Net sales revenue subject to trademark license agreements | Second Top Licensor | |||
Summary of significant accounting policies | |||
Concentration Risk, Percentage | 11.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies and Related Information - Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Goodwill, intangible and other long-lived assets and impairments | |||
Impairment of intangible assets (excluding goodwill) | $ 0 | ||
Intangible asset amortization | 28,308 | $ 27,773 | $ 25,328 |
Goodwill | |||
Goodwill deductible for tax purposes | $ 113,000 | $ 133,100 | |
Minimum | |||
Economic useful lives and amortization of intangible assets | |||
Amortization period | 4 years | ||
Maximum | |||
Economic useful lives and amortization of intangible assets | |||
Amortization period | 30 years | ||
Patent | |||
Economic useful lives and amortization of intangible assets | |||
Amortization period | 14 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies and Related Information - Warrants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Accrual for warranty returns | |||
Beginning balance | $ 20,622 | $ 23,553 | |
Additions to the accrual | 57,686 | 57,847 | |
Reductions of the accrual - payments and credits issued | (56,542) | (60,778) | |
Ending balance | 21,766 | 20,622 | $ 23,553 |
SG&A | |||
Customer incentives in SG&A | 18,400 | 19,400 | 17,300 |
Advertising costs in SG&A | 111,600 | 107,500 | 88,400 |
Research and development expenses | 9,700 | 10,000 | 7,400 |
Shipping and handling expenses in SG&A | $ 86,300 | $ 88,900 | $ 87,900 |
Minimum | |||
Warranties | |||
Product Warranty Period | 2 years | ||
Maximum | |||
Warranties | |||
Product Warranty Period | 5 years |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Weighted average diluted securities | |||
Weighted average shares outstanding, basic | 27,522 | 28,273 | 28,579 |
Incremental shares from share-based payment arrangements | 369 | 476 | 456 |
Weighted average shares outstanding, diluted | 27,891 | 28,749 | 29,035 |
Employee and Directors stock options | |||
Weighted average diluted securities | |||
Dilutive securities (in shares) | 365 | 317 | 647 |
Restricted stock (RSA) | |||
Weighted average diluted securities | |||
Dilutive securities (in shares) | 186 | 227 | 273 |
Earnings per Share - Antidiluti
Earnings per Share - Antidilution (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Employee and Directors stock options | |||
Antidilutive securities, as a result of out of the money | |||
Antidilutive securities (in shares) | 137 | 159 | 239 |
Significant Accounting Matter57
Significant Accounting Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 29, 2016 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 |
Change in Accounting Estimate | |||||||||||||
Asset impairment charges | $ 5,000 | $ 7,400 | $ 3,000 | $ 3,000 | $ 12,400 | $ 6,000 | $ 9,000 | ||||||
Cash and cash equivalents | $ 225,800 | 23,087 | 225,800 | 23,087 | 225,800 | 12,295 | $ 70,027 | ||||||
Inventory | 301,609 | 289,122 | 301,609 | 289,122 | 301,609 | ||||||||
Property and equipment, net | 130,465 | 134,935 | 130,465 | $ 134,935 | $ 130,465 | ||||||||
Concentration risk percentage | 44.00% | 44.00% | |||||||||||
Operating income | $ 164,332 | $ 130,615 | 161,719 | ||||||||||
Net Income | $ 35,696 | $ 57,612 | $ 28,355 | $ 19,026 | $ 9,588 | $ 46,778 | $ 24,452 | $ 20,410 | $ 140,689 | $ 101,228 | $ 131,164 | ||
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 2.07 | $ 1 | $ 0.68 | $ 0.34 | $ 1.63 | $ 0.84 | $ 0.70 | $ 5.04 | $ 3.52 | $ 4.52 | ||
Revision to product liability estimates | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Operating income | $ 2,200 | ||||||||||||
Net Income | $ 1,400 | ||||||||||||
Diluted earnings per share (in dollars per share) | $ 0.05 | ||||||||||||
Venezuela | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Charge from re-measurement of monetary assets and liabilities due to an exchange rate change | 9,570 | ||||||||||||
Asset impairment charges | $ 9,160 | ||||||||||||
Net investment in Venezuelan operations | $ 149 | $ 149 | |||||||||||
Venezuela | Before Adjustment | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Net investment in Venezuelan operations | 18,882 | 18,882 | |||||||||||
Venezuela | Adjustments | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Net investment in Venezuelan operations | (18,733) | $ (18,733) | |||||||||||
Venezuela | Net sales revenue | Maximum | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Percent of revenue to total revenue | 0.10% | ||||||||||||
SG&A | Venezuela | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Cash and cash equivalents | 10 | $ 10 | |||||||||||
Other net assets, principally working capital other than inventory | (164) | (164) | |||||||||||
Property and equipment, net | 3 | 3 | |||||||||||
SG&A | Venezuela | Before Adjustment | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Cash and cash equivalents | 1,302 | 1,302 | |||||||||||
Other net assets, principally working capital other than inventory | 8,120 | 8,120 | |||||||||||
Property and equipment, net | 82 | 82 | |||||||||||
SG&A | Venezuela | Adjustments | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Cash and cash equivalents | (1,292) | (1,292) | |||||||||||
Other net assets, principally working capital other than inventory | (8,284) | (8,284) | |||||||||||
Property and equipment, net | (79) | (79) | |||||||||||
Cost of goods sold | Venezuela | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Inventory | 300 | 300 | |||||||||||
Cost of goods sold | Venezuela | Before Adjustment | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Inventory | 9,378 | 9,378 | |||||||||||
Cost of goods sold | Venezuela | Adjustments | |||||||||||||
Change in Accounting Estimate | |||||||||||||
Inventory | $ (9,078) | $ (9,078) |
New Accounting Pronouncements58
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
ASU 2015-17 | Current deferred tax assets, net | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | $ (23,131) | $ (17,636) |
ASU 2015-17 | Long-term deferred tax assets, net | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | 1,038 | 879 |
ASU 2015-17 | Current deferred tax liabilities, net | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | 168 | |
ASU 2015-17 | Long-term deferred tax liabilities, net | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (21,925) | (16,757) |
ASU 2015-03 | Other assets – debt issuance costs | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (14,917) | (12,618) |
ASU 2015-03 | Other assets – accumulated amortization | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (9,824) | (8,625) |
ASU 2015-03 | Long-term debt, current maturities | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (1,296) | (1,156) |
ASU 2015-03 | Long-term debt, excluding current maturities | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (3,796) | (2,837) |
ASU 2016-09 | Accrued income taxes | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | 1,844 | 989 |
ASU 2016-09 | Share-based compensation tax benefit | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (1,844) | $ (989) |
ASU 2016-09 | Share-based compensation expense | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | 1,754 | |
ASU 2016-09 | Current income tax expense | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (1,844) | |
ASU 2016-09 | Long-term deferred tax assets, net | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | (232) | |
ASU 2016-09 | Additional paid-in capital | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | 588 | |
ASU 2016-09 | Retained earnings | ||
New Accounting Pronouncements | ||
Impact of recent accounting changes | $ (856) |
Property and Equipment - Summar
Property and Equipment - Summary of PP&E (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2017 | May 31, 2016 | Feb. 29, 2016 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 |
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | $ 224,391 | $ 241,496 | $ 224,391 | $ 241,496 | $ 224,391 | |||
Less accumulated depreciation | (93,926) | (106,561) | (93,926) | (106,561) | (93,926) | |||
Property and equipment, net | 130,465 | 134,935 | 130,465 | 134,935 | 130,465 | |||
Depreciation expense | 16,000 | 15,000 | $ 14,300 | |||||
Rent expense related to operating leases | 6,100 | 5,900 | 5,000 | |||||
Asset impairment charges | 5,000 | $ 7,400 | 3,000 | $ 3,000 | 12,400 | 6,000 | 9,000 | |
Cost of goods sold | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Depreciation expense | 4,600 | 4,300 | 3,800 | |||||
SG&A | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Depreciation expense | 11,400 | 10,700 | $ 10,500 | |||||
Southhaven, Mississippi facility | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Capital expenditures for property and equipment | 1,700 | |||||||
Land | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | 12,800 | 12,800 | 12,800 | 12,800 | 12,800 | |||
Building and improvements | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | 108,509 | 109,026 | 108,509 | $ 109,026 | 108,509 | |||
Building and improvements | Minimum | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Estimated useful life | 3 years | |||||||
Building and improvements | Maximum | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Estimated useful life | 40 years | |||||||
Computer, furniture and other equipment | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | 70,778 | 81,122 | 70,778 | $ 81,122 | 70,778 | |||
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, dies, molds and other production equipment | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | 28,254 | 31,157 | 28,254 | $ 31,157 | 28,254 | |||
Tools, dies, molds and other production equipment | Minimum | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Estimated useful life | 1 year | |||||||
Tools, dies, molds and other production equipment | Maximum | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Estimated useful life | 10 years | |||||||
Construction in progress | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, gross | 4,050 | 7,391 | $ 4,050 | $ 7,391 | $ 4,050 | |||
Venezuela | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Asset impairment charges | 9,160 | |||||||
Venezuela | SG&A | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Property and equipment, net | $ 3 | $ 3 | ||||||
Venezuela | Property and equipment | ||||||||
PROPERTY AND EQUIPMENT | ||||||||
Asset impairment charges | $ 100 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Goodwill impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2017 | May 31, 2016 | Feb. 29, 2016 | May 31, 2015 | May 31, 2014 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Goodwill and intangible assets | ||||||||
Non-cash indefinite-lived intangible assets impairment charges | $ 5,000 | $ 7,400 | ||||||
Non-cash indefinite-lived intangible assets impairment charges, net of tax | 3,200 | 5,100 | ||||||
Changes in Goodwill | ||||||||
Cumulative Goodwill Impairments, balance at the beginning of the period | (46,490) | $ (46,490) | ||||||
Cumulative Goodwill Impairments, balance at the end of the period | (46,490) | $ (46,490) | (46,490) | $ (46,490) | ||||
Goodwill Net Book Value | 698,929 | 583,005 | 698,929 | 583,005 | ||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Impairments | (5,000) | (7,400) | ||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Accumulated Amortization | (165,388) | (137,174) | (165,388) | (137,174) | ||||
Goodwill and intangible assets | ||||||||
Gross Carrying Amount, balance at the beginning of the period | 1,142,420 | $ 1,106,274 | 1,142,420 | 1,106,274 | ||||
Additions | 200,565 | 44,052 | ||||||
Impairments | (12,400) | (6,000) | $ (9,000) | |||||
Acquisition and Retirement Adjustments | (289) | (1,906) | ||||||
Gross Carrying Amount, balance at the end of the period | 1,330,296 | 1,142,420 | 1,330,296 | 1,142,420 | 1,106,274 | |||
Net Book Value | 1,118,418 | 958,756 | 1,118,418 | 958,756 | ||||
Aggregate Amortization Expense | 28,308 | 27,773 | 25,328 | |||||
Estimated Amortization Expense | ||||||||
February 2,017 | 25,172 | 25,172 | ||||||
February 2,018 | 20,206 | 20,206 | ||||||
February 2,019 | 19,102 | 19,102 | ||||||
February 2,020 | 16,532 | 16,532 | ||||||
February 2,021 | 6,037 | 6,037 | ||||||
Non-cash impairment charges after tax | 12,400 | |||||||
Housewares | ||||||||
Changes in Goodwill | ||||||||
Goodwill Gross Carrying Amount, balance at the beginning of the period | 166,132 | 166,132 | 166,132 | 166,132 | ||||
Goodwill Acquisition and Retirement Adjustments | (129) | |||||||
Goodwill Gross Carrying Amount, balance at the end of the period | 282,056 | 166,132 | 282,056 | 166,132 | 166,132 | |||
Goodwill Net Book Value | 282,056 | 166,132 | 282,056 | 166,132 | ||||
Goodwill Additions | 116,053 | |||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Accumulated Amortization | (15,476) | (12,916) | (15,476) | (12,916) | ||||
Goodwill and intangible assets | ||||||||
Gross Carrying Amount, balance at the beginning of the period | 256,780 | 257,086 | 256,780 | 257,086 | ||||
Additions | 200,093 | 446 | ||||||
Acquisition and Retirement Adjustments | (224) | (752) | ||||||
Gross Carrying Amount, balance at the end of the period | 456,649 | 256,780 | 456,649 | 256,780 | 257,086 | |||
Net Book Value | 441,173 | 243,864 | $ 441,173 | $ 243,864 | ||||
Housewares | Other intangible assets | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 11 years 7 months 6 days | 4 years | ||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 15,448 | 15,754 | $ 15,448 | $ 15,754 | ||||
Intangible assets - finite-lived, Additions | 25,040 | 446 | ||||||
Intangible assets - finite-lived, Acquisition and Retirement Adjustments | (95) | (752) | ||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 40,393 | 15,448 | 40,393 | 15,448 | 15,754 | |||
Intangible assets - finite-lived, Accumulated Amortization | (15,476) | (12,916) | (15,476) | (12,916) | ||||
Intangible assets - finite-lived, Net Book Value | 24,917 | 2,532 | 24,917 | 2,532 | ||||
Housewares | Trademarks | ||||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 75,200 | 75,200 | 75,200 | 75,200 | ||||
Intangible assets - indefinite-lived, Additions | 59,000 | |||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 134,200 | 75,200 | 134,200 | 75,200 | 75,200 | |||
Health & Home | ||||||||
Changes in Goodwill | ||||||||
Goodwill Gross Carrying Amount, balance at the beginning of the period | 284,913 | 251,758 | 284,913 | 251,758 | ||||
Goodwill Acquisition and Retirement Adjustments | 197 | |||||||
Goodwill Gross Carrying Amount, balance at the end of the period | 284,913 | 284,913 | 284,913 | 284,913 | 251,758 | |||
Goodwill Net Book Value | 284,913 | 284,913 | 284,913 | 284,913 | ||||
Goodwill Additions | 32,958 | |||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Accumulated Amortization | (81,327) | (67,663) | (81,327) | (67,663) | ||||
Goodwill and intangible assets | ||||||||
Gross Carrying Amount, balance at the beginning of the period | 478,188 | 434,785 | 478,188 | 434,785 | ||||
Additions | 472 | 43,206 | ||||||
Acquisition and Retirement Adjustments | (65) | 197 | ||||||
Gross Carrying Amount, balance at the end of the period | 478,595 | 478,188 | 478,595 | 478,188 | 434,785 | |||
Net Book Value | 397,268 | 410,525 | 397,268 | $ 410,525 | ||||
Health & Home | Licenses | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 1 year | |||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 15,300 | 15,300 | 15,300 | $ 15,300 | ||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 15,300 | 15,300 | 15,300 | 15,300 | 15,300 | |||
Intangible assets - finite-lived, Accumulated Amortization | (15,300) | (12,750) | $ (15,300) | (12,750) | ||||
Intangible assets - finite-lived, Net Book Value | 2,550 | $ 2,550 | ||||||
Health & Home | Other intangible assets | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 5 years | 6 years | ||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Additions | $ 472 | |||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 116,575 | 113,727 | 116,575 | $ 113,727 | ||||
Intangible assets - finite-lived, Additions | 2,848 | |||||||
Intangible assets - finite-lived, Acquisition and Retirement Adjustments | (65) | |||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 116,982 | 116,575 | 116,982 | 116,575 | 113,727 | |||
Intangible assets - finite-lived, Accumulated Amortization | (66,027) | (54,913) | (66,027) | (54,913) | ||||
Intangible assets - finite-lived, Net Book Value | 50,955 | 61,662 | 50,955 | 61,662 | ||||
Health & Home | Trademarks | ||||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 54,000 | 54,000 | 54,000 | 54,000 | ||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 54,000 | 54,000 | 54,000 | 54,000 | 54,000 | |||
Health & Home | Licenses | ||||||||
Changes in Goodwill | ||||||||
Goodwill Additions | 7,400 | |||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 7,400 | 7,400 | ||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 7,400 | 7,400 | 7,400 | 7,400 | ||||
Nutritional Supplements | ||||||||
Changes in Goodwill | ||||||||
Goodwill Gross Carrying Amount, balance at the beginning of the period | 96,609 | 96,486 | 96,609 | 96,486 | ||||
Goodwill Acquisition and Retirement Adjustments | 123 | |||||||
Goodwill Gross Carrying Amount, balance at the end of the period | 96,609 | 96,609 | 96,609 | 96,609 | 96,486 | |||
Goodwill Net Book Value | 96,609 | 96,609 | 96,609 | 96,609 | ||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Accumulated Amortization | (16,715) | (10,431) | (16,715) | (10,431) | ||||
Goodwill and intangible assets | ||||||||
Gross Carrying Amount, balance at the beginning of the period | 206,309 | 205,786 | 206,309 | 205,786 | ||||
Additions | 400 | |||||||
Impairments | (9,500) | |||||||
Acquisition and Retirement Adjustments | 123 | |||||||
Gross Carrying Amount, balance at the end of the period | 196,809 | 206,309 | 196,809 | 206,309 | 205,786 | |||
Net Book Value | 180,094 | 195,878 | $ 180,094 | $ 195,878 | ||||
Nutritional Supplements | Other intangible assets | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 4 years 3 months 18 days | 5 years 3 months 18 days | ||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 44,180 | 43,800 | $ 44,180 | $ 43,800 | ||||
Intangible assets - finite-lived, Additions | 380 | |||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 44,180 | 44,180 | 44,180 | 44,180 | 43,800 | |||
Intangible assets - finite-lived, Accumulated Amortization | (16,715) | (10,431) | (16,715) | (10,431) | ||||
Intangible assets - finite-lived, Net Book Value | 27,465 | 33,749 | 27,465 | 33,749 | ||||
Nutritional Supplements | Brand assets | ||||||||
Goodwill and intangible assets | ||||||||
Non-cash indefinite-lived intangible assets impairment charges | 9,500 | |||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 65,520 | 65,500 | 65,520 | 65,500 | ||||
Intangible assets - indefinite-lived, Additions | 20 | |||||||
Intangible assets - indefinite-lived, Impairments | (9,500) | |||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 56,020 | 65,520 | 56,020 | 65,520 | 65,500 | |||
Beauty | ||||||||
Changes in Goodwill | ||||||||
Goodwill Gross Carrying Amount, balance at the beginning of the period | 81,841 | 81,841 | 81,841 | 81,841 | ||||
Cumulative Goodwill Impairments, balance at the beginning of the period | (46,490) | (46,490) | ||||||
Goodwill Gross Carrying Amount, balance at the end of the period | 81,841 | 81,841 | 81,841 | 81,841 | 81,841 | |||
Cumulative Goodwill Impairments, balance at the end of the period | (46,490) | (46,490) | (46,490) | (46,490) | ||||
Goodwill Net Book Value | 35,351 | 35,351 | 35,351 | 35,351 | ||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Accumulated Amortization | (51,870) | (46,164) | (51,870) | (46,164) | ||||
Goodwill and intangible assets | ||||||||
Gross Carrying Amount, balance at the beginning of the period | 201,143 | 208,617 | 201,143 | 208,617 | ||||
Impairments | (2,900) | (6,000) | ||||||
Acquisition and Retirement Adjustments | (1,474) | |||||||
Gross Carrying Amount, balance at the end of the period | 198,243 | 201,143 | 198,243 | 201,143 | 208,617 | |||
Net Book Value | 99,883 | 108,489 | $ 99,883 | $ 108,489 | ||||
Beauty | Trademarks | ||||||||
Goodwill and intangible assets | ||||||||
Non-cash indefinite-lived intangible assets impairment charges | 3,000 | |||||||
Non-cash indefinite-lived intangible assets impairment charges, net of tax | 2,700 | |||||||
Useful life | 11 years 7 months 6 days | 12 years 7 months 6 days | ||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Impairments | (3,000) | |||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 150 | 150 | $ 150 | $ 150 | ||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 150 | 150 | 150 | 150 | 150 | |||
Intangible assets - finite-lived, Accumulated Amortization | (92) | (87) | (92) | (87) | ||||
Intangible assets - finite-lived, Net Book Value | 58 | 63 | $ 58 | $ 63 | ||||
Beauty | Licenses | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 5 years 9 months 18 days | 6 years 9 months 18 days | ||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 13,696 | 13,696 | $ 13,696 | $ 13,696 | ||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 13,696 | 13,696 | 13,696 | 13,696 | 13,696 | |||
Intangible assets - finite-lived, Accumulated Amortization | (11,849) | (11,532) | (11,849) | (11,532) | ||||
Intangible assets - finite-lived, Net Book Value | 1,847 | 2,164 | $ 1,847 | $ 2,164 | ||||
Beauty | Other intangible assets | ||||||||
Goodwill and intangible assets | ||||||||
Useful life | 1 year 2 months 12 days | 2 years 2 months 12 days | ||||||
Changes in intangible assets - finite-lived | ||||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the beginning of the period | 46,402 | 47,876 | $ 46,402 | $ 47,876 | ||||
Intangible assets - finite-lived, Acquisition and Retirement Adjustments | (1,474) | |||||||
Intangible assets - finite-lived, Gross Carrying Amount, balance at the end of the period | 46,402 | 46,402 | 46,402 | 46,402 | 47,876 | |||
Intangible assets - finite-lived, Accumulated Amortization | (39,929) | (34,545) | (39,929) | (34,545) | ||||
Intangible assets - finite-lived, Net Book Value | 6,473 | 11,857 | 6,473 | 11,857 | ||||
Beauty | Trademarks | ||||||||
Goodwill and intangible assets | ||||||||
Non-cash indefinite-lived intangible assets impairment charges | 3,000 | 2,900 | 6,000 | |||||
Non-cash indefinite-lived intangible assets impairment charges, net of tax | 2,700 | $ 9,000 | ||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | 48,754 | 54,754 | 48,754 | 54,754 | ||||
Intangible assets - indefinite-lived, Impairments | (3,000) | (2,900) | (6,000) | |||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | 45,854 | 48,754 | 45,854 | 48,754 | 54,754 | |||
Estimated Amortization Expense | ||||||||
Non-cash impairment charges after tax | $ 8,200 | |||||||
Beauty | Licenses | ||||||||
Changes in intangible assets - indefinite-lived | ||||||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the beginning of the period | $ 10,300 | $ 10,300 | 10,300 | 10,300 | ||||
Intangible assets - indefinite-lived, Gross Carrying Amount, balance at the end of the period | $ 10,300 | $ 10,300 | $ 10,300 | $ 10,300 | $ 10,300 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets - Agreement (Details) $ in Millions | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015USD ($)country | |
Trademark licensing agreement | |||
Percentage of net sales | 44.00% | 44.00% | |
Trademark licensing agreement to market branded portable air purifiers | Honeywell International Inc. | Selected developing countries | |||
Trademark licensing agreement | |||
Number of countries in which rights to market Honeywell branded portable air purifiers were relinquished | country | 12 | ||
Trademark licensing agreement to market branded portable air purifiers | Honeywell International Inc. | Selected developing countries | SG&A | |||
Trademark licensing agreement | |||
Payment received in exchange for the amendment | $ | $ 7 | ||
Health & Home | Selected developing countries | Segment net sales | Customer concentration risk | |||
Trademark licensing agreement | |||
Percentage of net sales | 0.30% |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | Mar. 18, 2016USD ($) | Mar. 31, 2015USD ($)Transaction | Jun. 30, 2014USD ($) | Feb. 28, 2017USD ($)$ / shares | Feb. 29, 2016USD ($)$ / shares | Feb. 28, 2015USD ($) | Apr. 18, 2016USD ($) |
Assets | |||||||
Goodwill | $ 698,929 | $ 583,005 | |||||
Earnings per share: | |||||||
Goodwill expected to be deductible for income tax purposes | 113,000 | 133,100 | |||||
Health & Home | |||||||
Assets | |||||||
Goodwill | 284,913 | 284,913 | |||||
Nutritional Supplements | |||||||
Assets | |||||||
Goodwill | $ 96,609 | $ 96,609 | |||||
Minimum | |||||||
Assets | |||||||
Useful life | 4 years | ||||||
Maximum | |||||||
Assets | |||||||
Useful life | 30 years | ||||||
Other intangible assets | Health & Home | |||||||
Assets | |||||||
Useful life | 5 years | 6 years | |||||
Other intangible assets | Nutritional Supplements | |||||||
Assets | |||||||
Useful life | 4 years 3 months 18 days | 5 years 3 months 18 days | |||||
Patent | |||||||
Assets | |||||||
Useful life | 14 years | ||||||
Hydro Flask | |||||||
Acquisitions | |||||||
Purchase price | $ 209,300 | ||||||
Acquisition-related expenses incurred | 700 | ||||||
Acquisition-related expenses incurred after tax | 700 | ||||||
Assets | |||||||
Receivables | 7,955 | ||||||
Inventory | 6,243 | ||||||
Prepaid expenses and other current assets | 336 | ||||||
Property and equipment | 1,108 | ||||||
Goodwill | 116,053 | ||||||
Subtotal - assets | 215,195 | ||||||
Liabilities | |||||||
Accounts payable | 2,275 | ||||||
Accrued expenses | 3,662 | ||||||
Subtotal - liabilities | 5,937 | ||||||
Net assets recorded | $ 209,258 | ||||||
Impact of the acquisition on the consolidated condensed statements of income | |||||||
Sales revenue, net | $ 107,005 | ||||||
Net income | $ 27,902 | ||||||
Earnings per share: | |||||||
Basic (in dollars per share) | $ / shares | $ 1.01 | ||||||
Diluted (in dollars per share) | $ / shares | $ 1 | ||||||
Supplemental pro forma information | |||||||
Sales revenue, net | $ 1,540,714 | $ 1,603,656 | |||||
Net income | $ 141,325 | $ 113,906 | |||||
Earnings per share: | |||||||
Basic (in dollars per share) | $ / shares | $ 5.13 | $ 4.03 | |||||
Diluted (in dollars per share) | $ / shares | $ 5.07 | $ 3.96 | |||||
Hydro Flask | Income and market approaches | Intangible assets | |||||||
Fair value key assumptions | |||||||
Discount rate (as a percent) | 12.30% | ||||||
Hydro Flask | Customer relationships | |||||||
Assets | |||||||
Finite-lived intangible assets | $ 14,200 | $ 14,200 | |||||
Hydro Flask | Customer relationships | Minimum | |||||||
Assets | |||||||
Useful life | 10 years | ||||||
Hydro Flask | Customer relationships | Maximum | |||||||
Assets | |||||||
Useful life | 24 years | ||||||
Hydro Flask | Technology assets | |||||||
Assets | |||||||
Finite-lived intangible assets | $ 10,300 | 10,300 | |||||
Hydro Flask | Technology assets | Minimum | |||||||
Assets | |||||||
Useful life | 7 years | ||||||
Hydro Flask | Technology assets | Maximum | |||||||
Assets | |||||||
Useful life | 15 years | ||||||
Hydro Flask | Technology assets | Significant Unobservable Inputs (Level 3) | Intangible assets | |||||||
Fair value key assumptions | |||||||
Royalty rates (as a percent) | 2.00% | ||||||
Hydro Flask | Customer Lists | Significant Unobservable Inputs (Level 3) | Income and market approaches | Intangible assets | |||||||
Fair value key assumptions | |||||||
Customer attrition rates (as a percent) | 4.00% | ||||||
Hydro Flask | Trade names | |||||||
Assets | |||||||
Indefinite-lived intangible assets | $ 59,000 | $ 59,000 | |||||
Hydro Flask | Trade names | Significant Unobservable Inputs (Level 3) | Intangible assets | |||||||
Fair value key assumptions | |||||||
Royalty rates (as a percent) | 6.00% | ||||||
Vicks VapoSteam and VapoPad | |||||||
Acquisitions | |||||||
Number of transactions in acquisition | Transaction | 2 | ||||||
Purchase price | $ 42,800 | ||||||
Assets | |||||||
Goodwill | $ 33,000 | ||||||
Vicks VapoSteam and VapoPad | Customer relationships | |||||||
Acquisitions | |||||||
Expected weighted average lives of acquired finite-lived intangible assets | 19 years 6 months | ||||||
Vicks VapoSteam and VapoPad | Customer relationships | Significant Unobservable Inputs (Level 3) | |||||||
Assets | |||||||
Finite-lived intangible assets | $ 1,000 | ||||||
Vicks VapoSteam and VapoPad | Product formulations | |||||||
Acquisitions | |||||||
Expected weighted average lives of acquired finite-lived intangible assets | 20 years | ||||||
Vicks VapoSteam and VapoPad | Product formulations | Significant Unobservable Inputs (Level 3) | |||||||
Assets | |||||||
Finite-lived intangible assets | $ 1,200 | ||||||
Vicks VapoSteam and VapoPad | Trademarks | Significant Unobservable Inputs (Level 3) | |||||||
Assets | |||||||
Indefinite-lived intangible assets | $ 7,400 | ||||||
Healthy Directions | |||||||
Acquisitions | |||||||
Purchase price | $ 195,900 | ||||||
Acquisition-related expenses incurred | $ 3,600 | ||||||
Acquisition-related expenses incurred after tax | $ 2,300 | ||||||
Assets | |||||||
Receivables | 257 | ||||||
Inventory | 6,226 | ||||||
Prepaid expenses and other current assets | 1,875 | ||||||
Property and equipment | 5,962 | ||||||
Goodwill | 95,308 | ||||||
Subtotal - assets | 218,928 | ||||||
Liabilities | |||||||
Accounts payable | 6,479 | ||||||
Accrued expenses | 13,964 | ||||||
Other long-term liabilities | 2,542 | ||||||
Subtotal - liabilities | 22,985 | ||||||
Net assets recorded | $ 195,943 | ||||||
Healthy Directions | Significant Unobservable Inputs (Level 3) | Income and market approaches | Intangible assets | |||||||
Fair value key assumptions | |||||||
Discount rate (as a percent) | 14.60% | ||||||
Healthy Directions | Customer relationships | |||||||
Acquisitions | |||||||
Expected weighted average lives of acquired finite-lived intangible assets | 7 years | ||||||
Assets | |||||||
Finite-lived intangible assets | $ 43,800 | ||||||
Healthy Directions | Customer Lists | Significant Unobservable Inputs (Level 3) | Income and market approaches | Intangible assets | |||||||
Fair value key assumptions | |||||||
Customer attrition rates (as a percent) | 14.00% | ||||||
Healthy Directions | Brand assets | |||||||
Assets | |||||||
Indefinite-lived intangible assets | $ 65,500 | ||||||
Healthy Directions | Brand assets | Significant Unobservable Inputs (Level 3) | Income and market approaches | Intangible assets | |||||||
Fair value key assumptions | |||||||
Royalty rates (as a percent) | 5.00% |
Accrued Expenses and Other Cu63
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Accrued Expenses and Other Current Liabilities | ||
Accrued compensation, benefits and payroll taxes | $ 34,917 | $ 28,912 |
Accrued sales returns, discounts and allowances | 27,377 | 27,530 |
Accrued warranty returns | 21,766 | 20,622 |
Accrued advertising | 23,747 | 22,087 |
Accrued legal fees and settlements | 16,908 | 16,699 |
Accrued royalties | 9,553 | 7,961 |
Accrued property, sales and other taxes | 6,564 | 6,938 |
Accrued freight and duty | 3,454 | 2,043 |
Accrued product liability | 2,141 | 2,098 |
Derivative liabilities, current | 47 | 495 |
Liability for uncertain tax positions | 536 | |
Other | 6,726 | 5,324 |
Total accrued expenses and other current liabilities | $ 153,200 | $ 141,245 |
Other Liabilities, Noncurrent64
Other Liabilities, Noncurrent (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Other Liabilities, Noncurrent | ||
Deferred compensation liability | $ 6,560 | $ 8,298 |
Liability for uncertain tax positions | 6,611 | 8,201 |
Other liabilities | 8,490 | 10,116 |
Total other liabilities, noncurrent | $ 21,661 | $ 26,615 |
Long-Term Debt - Schedule (Deta
Long-Term Debt - Schedule (Details) - USD ($) | Mar. 01, 2016 | Mar. 01, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 |
Long-term debt | |||||
Maximum amount of additional debt that can be incurred under debt covenants | $ 280,600,000 | ||||
Total long-term debt | 485,615,000 | $ 619,914,000 | |||
Less current maturities of long-term debt | (24,404,000) | (22,644,000) | |||
Long-term debt, excluding current maturities | 461,211,000 | 597,270,000 | |||
Principal payment made | 23,800,000 | 21,900,000 | $ 96,900,000 | ||
Unsecured state industrial development loan | |||||
Long-term debt | |||||
Face amount | 37,600,000 | ||||
Total long-term debt | 29,903,000 | 33,706,000 | |||
Principal payment made | $ 3,800,000 | $ 1,900,000 | |||
Outstanding principal payable on March 1, 2017 | 5,700,000 | ||||
Outstanding principal payable on March 1, 2018 | 1,900,000 | ||||
Outstanding principal payable on March 1, 2019 | 1,900,000 | ||||
Outstanding principal payable on March 1, 2020 | 1,900,000 | ||||
Outstanding principal payable on March 1, 2021 | 1,900,000 | ||||
Outstanding principal payable on March 1, 2022 | 1,900,000 | ||||
Outstanding principal payable on March 1, 2023 | $ 14,800,000 | ||||
Unsecured state industrial development loan | Maximum | Base Rate | |||||
Long-term debt | |||||
Margin (as a percent) | 1.00% | ||||
Unsecured state industrial development loan | Maximum | LIBOR | |||||
Long-term debt | |||||
Margin (as a percent) | 2.00% | ||||
3.90% unsecured Senior Notes payable | |||||
Long-term debt | |||||
Face amount | $ 100,000,000 | ||||
Interest rate (as a percent) | 3.90% | ||||
Fixed interest rate (as a percentage) | 3.90% | ||||
Principal payment | $ 20,000,000 | ||||
Total long-term debt | 19,763,000 | 39,496,000 | |||
Credit Agreement | |||||
Long-term debt | |||||
Maximum revolving commitment | 1,000,000,000 | ||||
Debt acquisition costs | 2,300,000 | ||||
Amount outstanding | 1,500,000 | ||||
Amount available for borrowings | 557,800,000 | ||||
Total long-term debt | 435,949,000 | $ 546,712,000 | |||
Revolving loan | |||||
Long-term debt | |||||
Amount outstanding | $ 440,700,000 |
Long-Term Debt - Interest rates
Long-Term Debt - Interest rates (Details) - Credit Agreement $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017USD ($)item | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | |
Revolving Line of Credit | |||
Average borrowings outstanding | $ | $ 498,420 | $ 399,800 | $ 300,280 |
Average interest rates during each year (as a percent) | 2.20% | 1.60% | 2.50% |
Weighted average interest rates on borrowings outstanding at year end (as a percent) | 2.30% | 2.80% | 1.90% |
Number of prior quarters used in calculation of average borrowings outstanding | item | 4 | ||
Minimum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 1.90% | 1.40% | 1.90% |
Maximum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 4.30% | 4.00% | 4.40% |
Long-Term Debt - FV, Limit, Int
Long-Term Debt - FV, Limit, Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
INTEREST EXPENSE | |||
Interest and commitment fees | $ 13,747 | $ 9,949 | $ 11,958 |
Deferred finance costs | 1,200 | 1,158 | 1,846 |
Interest rate swap settlements, net | 1,218 | ||
Cross-currency debt swap | (90) | (11) | |
Total interest expense | 14,857 | $ 11,096 | $ 15,022 |
Fixed rate debt | Discounted cash flow analysis | |||
Long-term debt | |||
Long-term debt | $ 20,100 |
Income Taxes - Components of in
Income Taxes - Components of income tax and deferred tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Undistributed earnings of foreign operations | $ 62,100 | ||
Deferred tax liability for remittance of earnings | 0 | ||
Components of income (loss) before income tax expense | |||
U.S. | 15,051 | $ 30,874 | $ 34,876 |
Non-U.S. | 134,838 | 88,944 | 112,338 |
Income before income taxes | 149,889 | 119,818 | 147,214 |
U.S. | |||
Current | 16,744 | 12,824 | 18,525 |
Deferred | (10,230) | (1,239) | (3,014) |
U.S. | 6,514 | 11,585 | 15,511 |
Non-U.S. | |||
Current | (290) | 4,919 | (645) |
Deferred | 2,976 | 2,086 | 1,184 |
Non-U.S. | 2,686 | 7,005 | 539 |
Total | $ 9,200 | $ 18,590 | $ 16,050 |
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 (as a percent) | 0.30% | 0.50% | 0.60% |
Effect of zero tax rate in Macau (as a percent) | (20.90%) | (19.30%) | (12.40%) |
Effect of statutory tax rate in Barbados (as a percent) | (7.60%) | (6.80%) | (11.70%) |
Effect of statutory tax rate in Switzerland (as a percent) | (3.80%) | (5.70%) | (2.90%) |
Effect of income from non-U.S. operations subject to varying rates (as a percent) | 2.20% | 4.10% | 0.90% |
Effect of foreign exchange fluctuations (as a percent) | 0.50% | 3.30% | 0.40% |
Effect of asset impairment charges (as a percent) | 0.40% | 1.10% | 1.60% |
Other items | 0.00% | 3.30% | (0.60%) |
Effective income tax rate (as a percent) | 6.10% | 15.50% | 10.90% |
Deferred tax assets, gross: | |||
Operating loss carryforwards | $ 16,799 | $ 15,419 | |
Accounts receivable | 7,375 | 6,332 | |
Inventories | 11,057 | 10,372 | |
Accrued expenses and other | 12,007 | 10,783 | |
Total gross deferred tax assets | 47,238 | 42,906 | |
Valuation allowance | (17,600) | (16,223) | |
Deferred tax liabilities: | |||
Depreciation and amortization | (47,774) | (51,562) | |
Total deferred tax liabilities, net | (18,136) | (24,879) | |
Net increase in valuation allowance | 1,400 | ||
Goodwill deductible for tax purposes | 113,000 | $ 133,100 | |
Estimated tax deduction for goodwill for next fiscal year | $ 20,200 | ||
Maximum | |||
Deferred tax liabilities: | |||
Remaining amortization period of tax deductible goodwill | 12 years |
Income Taxes - Operating loss c
Income Taxes - Operating loss carryforwards (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Feb. 29, 2016 |
Gross deferred tax assets | ||
Subtotals | $ 16,799 | $ 15,419 |
Less portion of valuation allowance established for operating loss carryforwards | (15,954) | |
Total | 845 | |
Required future taxable income | ||
Subtotals | 69,984 | |
U.S. | ||
Gross deferred tax assets | ||
Operating loss carryforwards with definite carryover periods | 458 | |
Required future taxable income | ||
Required future taxable income - operating loss carryforwards with definite carryover periods | 11,121 | |
Non-U.S. | ||
Gross deferred tax assets | ||
Operating loss carryforwards with definite carryover periods | 1,418 | |
Operating loss carryforwards with indefinite carryover periods | 14,923 | |
Required future taxable income | ||
Required future taxable income - operating loss carryforwards with definite carryover periods | 8,349 | |
Required future taxable income - operating loss carryforwards with indefinite carryover periods | $ 50,514 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Unrecognized Tax Benefits | |||
Total unrecognized tax benefits, beginning balance | $ 8,737 | $ 10,295 | |
Resolution of tax dispute | (1,381) | ||
Changes in tax positions taken during a prior period | 121 | 278 | |
Changes due to lapse in statute of limitations | (218) | (1,375) | |
Impact of foreign currency remeasurement on unrecognized tax benefits in the current period | 133 | 421 | |
Settlements | 515 | 40 | |
Total unrecognized tax benefits, ending balance | 6,611 | 8,737 | $ 10,295 |
Less current unrecognized tax benefits | (536) | ||
Noncurrent unrecognized tax benefits | 6,611 | 8,201 | |
Unrecognized tax benefits that would affect effective tax rate if recognized | 6,600 | ||
Liability for tax-related interest and penalties included in unrecognized tax benefits | 1,700 | 2,300 | |
Tax-related interest and penalties expense included in provisions for income tax | $ (600) | $ 500 | $ 200 |
Fair Value - Fair value of fina
Fair Value - Fair value of financial assets and liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | Feb. 28, 2017 | Feb. 29, 2016 | |
Assets measured at fair value on a non-recurring basis | ||||||
Non-cash impairment charges | $ 5,000 | $ 7,400 | ||||
Non-cash impairment charges after tax | 3,200 | $ 5,100 | ||||
Beauty | Trademarks | ||||||
Assets measured at fair value on a non-recurring basis | ||||||
Non-cash impairment charges | $ 3,000 | $ 2,900 | $ 6,000 | |||
Non-cash impairment charges after tax | $ 2,700 | $ 9,000 | ||||
Money market accounts | Hydro Flask | ||||||
Assets: | ||||||
Cash and cash equivalents | $ 210,000 | |||||
Discounted cash flow analysis | Fixed rate debt | ||||||
Liabilities: | ||||||
Long-term debt | 20,100 | $ 20,100 | ||||
Fair Values | Significant Other Observable Market Inputs (Level 2) | Discounted cash flow analysis | Fixed rate debt | ||||||
Fair value inputs | ||||||
Discount rate (as a percent) | 1.80% | 2.40% | ||||
Recurring | Significant Other Observable Market Inputs (Level 2) | ||||||
Assets: | ||||||
Total assets | 4,878 | $ 4,878 | $ 213,336 | |||
Liabilities: | ||||||
Total liabilities | 486,004 | 486,004 | 621,201 | |||
Recurring | Significant Other Observable Market Inputs (Level 2) | Foreign currency contracts | ||||||
Assets: | ||||||
Derivative assets | 2,167 | 2,167 | 1,372 | |||
Liabilities: | ||||||
Derivative liabilities | 47 | 47 | ||||
Recurring | Significant Other Observable Market Inputs (Level 2) | Interest Rate Swaps And Foreign Currency Contracts | ||||||
Liabilities: | ||||||
Derivative liabilities | 502 | |||||
Recurring | Significant Other Observable Market Inputs (Level 2) | Fixed rate debt | ||||||
Liabilities: | ||||||
Long-term debt | 20,105 | 20,105 | 40,281 | |||
Recurring | Significant Other Observable Market Inputs (Level 2) | Floating rate debt | ||||||
Liabilities: | ||||||
Long-term debt | 465,852 | 465,852 | 580,418 | |||
Recurring | Significant Other Observable Market Inputs (Level 2) | Money market accounts | ||||||
Assets: | ||||||
Cash and cash equivalents | $ 2,711 | $ 2,711 | $ 211,964 |
Fair Value - Other non-financia
Fair Value - Other non-financial assets (Details) - Other Non-financial Assets - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Fair value measurement on non-recurring basis using significant unobservable inputs (Level 3) | ||
Beginning balances | $ 958,756 | $ 948,157 |
Total gains/income (losses/expense): | ||
Included in net income - realized | (40,614) | (31,547) |
Acquired during the period | 200,565 | 44,052 |
Acquisition adjustments and retirements during the period | (289) | (1,906) |
Ending balances | $ 1,118,418 | $ 958,756 |
Financial Instruments and Ris73
Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 |
Foreign Currency Risk and Currency Exchange Uncertainties | ||||||||||||
Concentration risk percentage | 44.00% | 44.00% | ||||||||||
Currency Exchange Uncertainties | ||||||||||||
Sales revenue, net | $ 376,697 | $ 444,414 | $ 368,170 | $ 347,938 | $ 385,724 | $ 445,503 | $ 369,129 | $ 345,345 | $ 1,537,219 | $ 1,545,701 | $ 1,445,131 | |
Operating income | 164,332 | 130,615 | 161,719 | |||||||||
SG&A | ||||||||||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||||||||||
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | $ 500 | $ (3,100) | $ (5,700) | |||||||||
Venezuela | ||||||||||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||||||||||
Charge from re-measurement of monetary assets and liabilities due to an exchange rate change | $ 9,570 | |||||||||||
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | ||||||||||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||||||||||
Concentration risk percentage | 12.00% | 14.00% | 14.00% |
Financial Instruments and Ris74
Financial Instruments and Risk Management - Interest Rate Risk (Details) - 3.90% unsecured Senior Notes payable $ in Millions | Feb. 28, 2017USD ($) |
Financial instruments and risk management | |
Fixed interest rate (as a percent) | 3.90% |
Floating rate debt | $ 470.7 |
Financial Instruments and Ris75
Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, CAD in Thousands, $ in Thousands | Feb. 28, 2017GBP (£) | Feb. 28, 2017EUR (€) | Feb. 28, 2017CAD | Feb. 28, 2017USD ($) | Feb. 29, 2016GBP (£) | Feb. 29, 2016EUR (€) | Feb. 29, 2016USD ($) |
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Long-term debt | $ 485,615 | $ 619,914 | |||||
3.90% unsecured Senior Notes payable | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Long-term debt | $ 19,763 | 39,496 | |||||
Interest rate (as a percent) | 3.90% | 3.90% | 3.90% | 3.90% | |||
Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | $ 2,135 | 1,166 | |||||
Other Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 32 | 206 | |||||
Accrued Expenses and Other Current Liability | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 47 | 495 | |||||
Other Liabilities, Non-current | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 7 | ||||||
Designated as hedging instruments | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 1,430 | ||||||
Designated as hedging instruments | Other Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 32 | ||||||
Designated as hedging instruments | Accrued Expenses and Other Current Liability | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 47 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Notional Amount | € | € 27,500 | ||||||
Derivative assets | € | € 27,000 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 727 | 1,066 | |||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Notional Amount | CAD | CAD 26,000 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 155 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 32 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Notional Amount | £ | £ 13,500 | ||||||
Derivative assets | £ 28,000 | 3,450 | |||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 548 | 94 | |||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued Expenses and Other Current Liability | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 495 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other Liabilities, Non-current | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 7 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Notional Amount | 59,600 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Accrued Expenses and Other Current Liability | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 47 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Australian Dollars | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 1,650 | ||||||
Designated as hedging instruments | Foreign currency contracts | Sell | Australian Dollars | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | 6 | ||||||
Not designated under hedge accounting | Cross currency debt swaps | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Notional Amount | 10,000 | 5,000 | |||||
Not designated under hedge accounting | Cross currency debt swaps | Prepaid Expenses and Other Current Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | $ 705 | ||||||
Not designated under hedge accounting | Cross currency debt swaps | Other Assets | |||||||
Fair values of derivative instruments in the consolidated balance sheet | |||||||
Derivative assets | $ 206 |
Fiancial Instruments and Risk M
Fiancial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Pre-tax effect of derivative instruments | ||
Gain/ (Loss) Recognized in OCI (effective portion) | $ 2,205 | $ 1,978 |
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 1,454 | 1,203 |
Gain/ (Loss) Recognized as Income | 589 | 217 |
Foreign currency contracts | Cash flow hedges | ||
Pre-tax effect of derivative instruments | ||
Gain/ (Loss) Recognized in OCI (effective portion) | 2,205 | 1,978 |
Net gains currently reported in accumulated other comprehensive income, to be reclassified into income | 1,400 | |
Foreign currency contracts | Cash flow hedges | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 1,454 | 1,203 |
Cross currency debt swaps | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain/ (Loss) Recognized as Income | 499 | 206 |
Cross currency debt swaps | Interest expense. | ||
Pre-tax effect of derivative instruments | ||
Gain/ (Loss) Recognized as Income | $ 90 | $ 11 |
Financial Instruments and Ris77
Financial Instruments and Risk Management – Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Risks Inherent in Cash and Cash Equivalents | ||||
Cash, interest and non-interest-bearing accounts - unrestricted | $ 20,376 | $ 13,836 | ||
Money market funds | 2,711 | 211,964 | ||
Total cash and cash equivalents | $ 23,087 | $ 225,800 | $ 12,295 | $ 70,027 |
Minimum | Cash | ||||
Risks Inherent in Cash and Cash Equivalents | ||||
Interest rate (as a percent) | 0.00% | 0.00% | ||
Minimum | Money market accounts | ||||
Risks Inherent in Cash and Cash Equivalents | ||||
Interest rate (as a percent) | 0.18% | 0.11% | ||
Maximum | Cash | ||||
Risks Inherent in Cash and Cash Equivalents | ||||
Interest rate (as a percent) | 0.35% | 0.50% | ||
Maximum | Money market accounts | ||||
Risks Inherent in Cash and Cash Equivalents | ||||
Interest rate (as a percent) | 0.19% | 0.19% | ||
Hydro Flask | ||||
Risks Inherent in Cash and Cash Equivalents | ||||
Money market funds | $ 210,000 |
Other Commitments and Conting78
Other Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Jan. 31, 2016item | |
Contractual obligations and commercial commitments | ||||
Total | $ 903,108 | |||
2018, 1 year | 277,153 | |||
2019, 2 years | 41,847 | |||
2020, 3 years | 38,997 | |||
2021, 4 years | 33,131 | |||
2022, 5 years | 470,503 | |||
After 5 years | 41,477 | |||
Provision for uncertain tax position | 6,611 | $ 8,201 | ||
Thermometer Patent Litigation | Litigation | ||||
Litigation | ||||
Number of models | item | 2 | |||
Charge including legal fees and other related expenses | 17,800 | |||
Charge including legal fees and other related expenses, after tax | $ 17,800 | |||
Amount of additional pre-judgment compensation | $ 1,500 | |||
Construction Agreement | ||||
Contractual obligations and commercial commitments | ||||
Total | 683 | |||
2018, 1 year | 683 | |||
Long-term purchase commitments | ||||
Contractual obligations and commercial commitments | ||||
Total | 804 | |||
2018, 1 year | 501 | |||
2019, 2 years | 303 | |||
Open purchase orders | ||||
Contractual obligations and commercial commitments | ||||
Total | 193,434 | |||
2018, 1 year | 193,434 | |||
Employment Contracts | CEO | ||||
Other commitments and contingencies | ||||
Aggregate commitment | $ 12,000 | |||
Employment Contracts | CEO | Maximum | ||||
Other commitments and contingencies | ||||
Employment contract term | 2 years | |||
Fixed rate debt | ||||
Contractual obligations and commercial commitments | ||||
Total | $ 20,000 | |||
2018, 1 year | 20,000 | |||
Floating rate debt | ||||
Contractual obligations and commercial commitments | ||||
Total | 470,707 | |||
2018, 1 year | 5,700 | |||
2019, 2 years | 1,900 | |||
2020, 3 years | 1,900 | |||
2021, 4 years | 1,900 | |||
2022, 5 years | 442,600 | |||
After 5 years | 16,707 | |||
Long-term incentive plan payouts | ||||
Contractual obligations and commercial commitments | ||||
Total | 12,840 | |||
2018, 1 year | 6,630 | |||
2019, 2 years | 3,716 | |||
2020, 3 years | 2,494 | |||
Interest on fixed rate debt | ||||
Contractual obligations and commercial commitments | ||||
Total | 676 | |||
2018, 1 year | 676 | |||
Interest on floating rate debt | ||||
Contractual obligations and commercial commitments | ||||
Total | 47,995 | |||
2018, 1 year | 10,050 | |||
2019, 2 years | 10,006 | |||
2020, 3 years | 9,963 | |||
2021, 4 years | 9,920 | |||
2022, 5 years | 7,717 | |||
After 5 years | 339 | |||
Minimum royalty payments | ||||
Contractual obligations and commercial commitments | ||||
Total | 62,820 | |||
2018, 1 year | 13,089 | |||
2019, 2 years | 12,841 | |||
2020, 3 years | 12,947 | |||
2021, 4 years | 9,856 | |||
2022, 5 years | 8,895 | |||
After 5 years | 5,192 | |||
Advertising and promotional | ||||
Contractual obligations and commercial commitments | ||||
Total | 56,006 | |||
2018, 1 year | 19,879 | |||
2019, 2 years | 7,145 | |||
2020, 3 years | 7,253 | |||
2021, 4 years | 7,337 | |||
2022, 5 years | 7,413 | |||
After 5 years | 6,979 | |||
Operating leases | ||||
Contractual obligations and commercial commitments | ||||
Total | 37,143 | |||
2018, 1 year | 6,511 | |||
2019, 2 years | 5,936 | |||
2020, 3 years | 4,440 | |||
2021, 4 years | 4,118 | |||
2022, 5 years | 3,878 | |||
After 5 years | $ 12,260 |
Repurchase of Helen of Troy C79
Repurchase of Helen of Troy Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Repurchase of common stock | ||||
Amount of shares authorized for purchase | $ 550,000 | |||
Remaining share repurchase amount | $ 83,400 | |||
Former Chief Executive Officer | Separation agreement | ||||
Repurchase of common stock | ||||
Number of shares issued as payment of separation compensation | 276,548 | |||
Number of shares tendered as payment for federal tax obligations related to shares issued as payment of separation compensation | 116,012 | |||
Share-based compensation. | ||||
Repurchase of common stock | ||||
Common stock repurchased and retired (in shares) | 6,286 | 117,294 | 71,950 | |
Common stock repurchased and retired, total cost or aggregate market value | $ 595 | $ 6,411 | $ 4,826 | |
Average price per share (in dollars per share) | $ 94.61 | $ 54.66 | $ 67.08 | |
Performance-based | Restricted stock units and restricted stock awards | Former Chief Executive Officer | ||||
Repurchase of common stock | ||||
Common stock repurchased and retired (in shares) | 68,086 | |||
Common stock repurchased and retired, total cost or aggregate market value | $ 4,600 | |||
Average price per share (in dollars per share) | $ 67.10 | |||
Dutch auction tender | ||||
Repurchase of common stock | ||||
Common stock repurchased and retired (in shares) | 3,693,816 | |||
Common stock repurchased and retired, total cost or aggregate market value | $ 247,800 | |||
Open market or tender offer | ||||
Repurchase of common stock | ||||
Common stock repurchased and retired (in shares) | 922,731 | 1,126,796 | 4,102,143 | |
Common stock repurchased and retired, total cost or aggregate market value | $ 75,000 | $ 100,000 | $ 273,599 | |
Average price per share (in dollars per share) | $ 81.28 | $ 88.75 | $ 66.70 |
Share-Based Compensation Plan80
Share-Based Compensation Plans (Details) $ / shares in Units, $ in Thousands | Apr. 22, 2014$ / shares | Aug. 24, 2008shares | Feb. 28, 2017USD ($)item$ / sharesshares | Feb. 29, 2016USD ($)$ / sharesshares | Feb. 28, 2015USD ($)$ / sharesshares | Feb. 28, 2014shares |
Share-based compensation plans | ||||||
Number of active share-based compensation plans | item | 3 | |||||
Range of expected terms used | 4 years 1 month 6 days | |||||
Range of risk free interest rates used, minimum (as a percent) | 0.90% | 1.20% | ||||
Range of risk free interest rates used, maximum (as a percent) | 1.50% | 1.50% | ||||
Expected dividend rate (as a percent) | 0.00% | 0.00% | 0.00% | |||
Range of expected volatility rates used, minimum (as a percent) | 35.90% | 35.30% | ||||
Range of expected volatility rates used, maximum (as a percent) | 39.70% | 50.50% | ||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Less income tax benefits | $ | $ (2,396) | $ (1,284) | $ (661) | |||
Share-based payment expense, net of income tax benefits | $ | $ 13,310 | $ 7,407 | $ 5,557 | |||
Earnings per share impact of share-based payment expense: | ||||||
Basic (in dollars per share) | $ / shares | $ 0.48 | $ 0.26 | $ 0.19 | |||
Diluted (in dollars per share) | $ / shares | $ 0.48 | $ 0.26 | $ 0.19 | |||
1998 Plan | ||||||
Share-based compensation plans | ||||||
Number of shares of common stock covered for issuance under share-based compensation plan | 6,750,000 | |||||
Restricted stock disclosure | ||||||
Shares originally authorized | 6,750,000 | |||||
2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Number of shares of common stock covered for issuance under share-based compensation plan | 3,750,000 | |||||
Restricted stock disclosure | ||||||
Shares originally authorized | 3,750,000 | |||||
Less cumulative stock option grants issued, net of forfeitures | (1,182,894) | |||||
Less restricted share awards previously vested and settled | (439,613) | |||||
Subtotal | 2,127,493 | |||||
Less maximum RSU's issuable upon vesting | (123,425) | |||||
Less estimated maximum PSU's issuable upon vesting | (396,312) | |||||
Shares available for issuance | 1,607,756 | |||||
Number of shares available for future issue under the plan | 1,607,756 | |||||
2008 Directors Plan | ||||||
Share-based compensation plans | ||||||
Number of shares of common stock covered for issuance under share-based compensation plan | 175,000 | |||||
Restricted stock disclosure | ||||||
Shares originally authorized | 175,000 | |||||
Shares available for issuance | 96,175 | |||||
Number of shares available for future issue under the plan | 96,175 | |||||
SG&A | ||||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Share-based payment expense | $ | $ 15,706 | $ 8,691 | $ 6,218 | |||
Minimum | ||||||
Share-based compensation plans | ||||||
Range of expected terms used | 4 years 1 month 6 days | 4 years 1 month 6 days | ||||
Maximum | ||||||
Share-based compensation plans | ||||||
Range of expected terms used | 4 years 4 months 24 days | 4 years 4 months 24 days | ||||
Restricted stock (RSA) | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Grant date fair value (in dollars per share) | $ / shares | $ 89.12 | $ 67.10 | ||||
Vested and settled or exercised, Vested and settled (in shares) | 2,000 | 62,000 | ||||
Restricted stock (RSA) | 2008 Directors Plan | ||||||
Share-based compensation plans | ||||||
Number of awards granted (in shares) | 5,285 | 5,649 | 9,267 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 92.98 | $ 87.04 | $ 61.72 | |||
Restricted stock disclosure | ||||||
Shares, Issued | 78,825 | |||||
Restricted stock (RSA) | Former Chief Executive Officer | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Vested and settled or exercised, Vested and settled (in shares) | 62,304 | |||||
Vested and settled or exercised, fair value (in dollars per share) | $ / shares | $ 67.10 | |||||
Restricted stock (RSA) | CEO | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Options granted (in shares) | 2,000 | |||||
Fair value for grants (in dollars per share) | $ / shares | $ 89.12 | |||||
Share-based compensation. | Directors | SG&A | ||||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Share-based payment expense | $ | $ 700 | $ 700 | $ 816 | |||
Performance-based and other stock awards | SG&A | ||||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Share-based payment expense | $ | $ 11,812 | $ 4,478 | $ 1,732 | |||
Employee stock purchase plan | ||||||
Share-based compensation plans | ||||||
Number of shares of common stock covered for issuance under share-based compensation plan | 350,000 | |||||
Shares of common stock acquired by plan participants | 32,110 | 28,433 | 31,128 | |||
Restricted stock disclosure | ||||||
Shares originally authorized | 350,000 | |||||
Shares available for issuance | 66,542 | |||||
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% | |||||
Price of common stock acquired by plan participants (in dollars per share) | $ / shares | $ 76.77 | $ 67.77 | $ 49.49 | |||
Number of shares available for future issue under the plan | 66,542 | |||||
Employee stock purchase plan | SG&A | ||||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Share-based payment expense | $ | $ 580 | $ 552 | $ 391 | |||
Stock Option Officers Employees and Consultants | ||||||
Share-based compensation plans | ||||||
Options granted (in shares) | 2,000 | 186,000 | 257,000 | |||
Fair value for grants (in dollars per share) | $ / shares | $ 28.74 | $ 28.82 | $ 25.22 | |||
Range of risk free interest rates used, minimum (as a percent) | 1.20% | 0.90% | 1.20% | |||
Range of risk free interest rates used, maximum (as a percent) | 1.20% | 1.50% | 1.50% | |||
Expected dividend rate (as a percent) | 0.00% | 0.00% | 0.00% | |||
Range of expected volatility rates used, minimum (as a percent) | 33.40% | 35.90% | 35.30% | |||
Range of expected volatility rates used, maximum (as a percent) | 33.40% | 39.70% | 50.50% | |||
Exercise of stock options (in shares) | 170,000 | 178,000 | 187,000 | |||
Options outstanding | 448,000 | 649,000 | 768,000 | 839,000 | ||
Stock Option Officers Employees and Consultants | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Options outstanding | 447,137 | |||||
Stock Option Officers Employees and Consultants | SG&A | ||||||
SHARE-BASED PAYMENT EXPENSE | ||||||
Share-based payment expense | $ | $ 2,614 | $ 2,961 | $ 3,279 | |||
Stock Option Officers Employees and Consultants | Minimum | ||||||
Share-based compensation plans | ||||||
Range of expected terms used | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days | |||
Stock Option Officers Employees and Consultants | Minimum | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Vesting period | 4 years | |||||
Term of award | 7 years | |||||
Restricted stock disclosure | ||||||
Vesting period | 4 years | |||||
Stock Option Officers Employees and Consultants | Maximum | ||||||
Share-based compensation plans | ||||||
Range of expected terms used | 4 years 1 month 6 days | 4 years 4 months 24 days | 4 years 4 months 24 days | |||
Stock Option Officers Employees and Consultants | Maximum | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Vesting period | 5 years | |||||
Term of award | 10 years | |||||
Restricted stock disclosure | ||||||
Vesting period | 5 years | |||||
Stock Option Officers Employees and Consultants | Certain officers and employees | 1998 Plan | ||||||
Share-based compensation plans | ||||||
Options outstanding | 1,200 | |||||
Stock Option Officers Employees and Consultants | Certain officers and employees | Minimum | 1998 Plan | ||||||
Share-based compensation plans | ||||||
Vesting period | 4 years | |||||
Term of award | 7 years | |||||
Restricted stock disclosure | ||||||
Vesting period | 4 years | |||||
Stock Option Officers Employees and Consultants | Certain officers and employees | Maximum | 1998 Plan | ||||||
Share-based compensation plans | ||||||
Vesting period | 5 years | |||||
Term of award | 10 years | |||||
Restricted stock disclosure | ||||||
Vesting period | 5 years | |||||
Restricted Stock Units (RSU) | ||||||
Share-based compensation plans | ||||||
Number of awards granted (in shares) | 162,000 | 95,000 | 118,000 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 96.90 | $ 76.62 | $ 58.35 | |||
Vested and settled or exercised, Vested and settled (in shares) | 15,643 | 100,000 | ||||
Vested and settled or exercised, fair value (in dollars per share) | $ / shares | $ 60.28 | $ 32.88 | ||||
Restricted Stock Units (RSU) | CEO and certain members of management team | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Number of awards granted (in shares) | 92,329 | 29,932 | 28,937 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 96.74 | $ 76.62 | $ 58.36 | |||
Restricted Stock Units (RSU) | CEO and certain members of management team | Maximum | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Vesting period | 4 years | |||||
Restricted stock disclosure | ||||||
Vesting period | 4 years | |||||
Performance Restricted Stock Units (PSU) | 2008 Stock Incentive Plan | ||||||
Share-based compensation plans | ||||||
Number of awards granted (in shares) | 139,846 | 130,608 | 178,101 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 97.12 | $ 76.62 | $ 58.36 | |||
Vested and settled or exercised, fair value (in dollars per share) | $ / shares | $ 67.10 | |||||
Restricted stock disclosure | ||||||
Performance period (in years) | 3 years |
Share-Based Compensation Plan81
Share-Based Compensation Plans - Fair value of stock option grants (Details) | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Assumptions used for fair value of stock options granted | |||
Range of risk free interest rates used (as a percent) | 1.20% | ||
Range of risk free interest rates used, minimum (as a percent) | 0.90% | 1.20% | |
Range of risk free interest rates used, maximum (as a percent) | 1.50% | 1.50% | |
Expected dividend rate (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average volatility rate (as a percent) | 33.40% | 39.10% | 48.00% |
Range of expected volatility rates used (as a percent) | 33.40% | ||
Range of expected volatility rates used, minimum (as a percent) | 35.90% | 35.30% | |
Range of expected volatility rates used, maximum (as a percent) | 39.70% | 50.50% | |
Range of expected terms used | 4 years 1 month 6 days | ||
Minimum | |||
Assumptions used for fair value of stock options granted | |||
Range of expected terms used | 4 years 1 month 6 days | 4 years 1 month 6 days | |
Maximum | |||
Assumptions used for fair value of stock options granted | |||
Range of expected terms used | 4 years 4 months 24 days | 4 years 4 months 24 days | |
Stock Option Officers Employees and Consultants | |||
Assumptions used for fair value of stock options granted | |||
Range of risk free interest rates used, minimum (as a percent) | 1.20% | 0.90% | 1.20% |
Range of risk free interest rates used, maximum (as a percent) | 1.20% | 1.50% | 1.50% |
Expected dividend rate (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average volatility rate (as a percent) | 33.40% | 39.10% | 48.00% |
Range of expected volatility rates used, minimum (as a percent) | 33.40% | 35.90% | 35.30% |
Range of expected volatility rates used, maximum (as a percent) | 33.40% | 39.70% | 50.50% |
Stock Option Officers Employees and Consultants | Minimum | |||
Assumptions used for fair value of stock options granted | |||
Range of expected terms used | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Stock Option Officers Employees and Consultants | Maximum | |||
Assumptions used for fair value of stock options granted | |||
Range of expected terms used | 4 years 1 month 6 days | 4 years 4 months 24 days | 4 years 4 months 24 days |
Share-Based Compensation Plan82
Share-Based Compensation Plans - Summary of stock option activity (Details) - Stock Option Officers Employees and Consultants - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Options | ||||
Outstanding at the beginning of the period (in shares) | 649 | 768 | 839 | |
Grants (in shares) | 2 | 186 | 257 | |
Exercises (in shares) | (170) | (178) | (187) | |
Forfeitures / expirations (in shares) | (33) | (127) | (141) | |
Outstanding at the end of the period (in shares) | 448 | 649 | 768 | 839 |
Exercisable at the end of the period (in shares) | 168 | |||
Weighted Average Exercise price (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 53.94 | $ 42.76 | $ 33.03 | |
Grants (in dollars per share) | 102.04 | 88.17 | 63.84 | |
Exercises (in dollars per share) | 43.07 | 37.86 | 29.70 | |
Forfeitures / expirations (in dollars per share) | 65.68 | 59.01 | 40.67 | |
Outstanding at the end of the period (in dollars per share) | 57.41 | 53.94 | 42.76 | $ 33.03 |
Exercisable at the end of the period (in dollars per share) | 46.37 | |||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | 19.52 | 16.28 | 12.38 | |
Grants (in dollars per share) | 28.74 | 28.82 | 25.22 | |
Outstanding at the end of the period (in dollars per share) | 20.54 | $ 19.52 | $ 16.28 | $ 12.38 |
Exercisable at the end of the period (in dollars per share) | $ 17.30 | |||
Weighted Average Remaining Contractual Term | ||||
Weighted Average Remaining Contractual Term (in years) | 5 years | 6 years 1 month 6 days | 6 years 7 months 6 days | 6 years 6 months |
Exercisable at the end of the period | 4 years 3 months 18 days | |||
Intrinsic Value | ||||
Intrinsic value, options outstanding | $ 18,097 | $ 26,847 | $ 26,008 | $ 27,081 |
Intrinsic value, options exercised | 9,152 | $ 9,480 | $ 6,498 | |
Intrinsic value, options exercisable | $ 8,647 |
Share-Based Compensation Plan83
Share-Based Compensation Plans - Non-vested stock option activity (Details) - Stock Option Officers Employees and Consultants - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Non-Vested Options | |||
Outstanding at the beginning of the period (in shares) | 521 | 674 | 728 |
Grants (in shares) | 2 | 186 | 257 |
Vested or forfeited (in shares) | (243) | (339) | (311) |
Outstanding at the end of the period (in shares) | 280 | 521 | 674 |
Weighted Average Grant Date Fair Value (per share) | |||
Outstanding at the beginning of the period (in dollars per share) | $ 20.81 | $ 16.98 | $ 12.74 |
Grants (in dollars per share) | 28.74 | 28.82 | 25.22 |
Vested or forfeited (in dollars per share) | 18.95 | 17.59 | 13.87 |
Outstanding at the end of the period (in dollars per share) | $ 22.48 | $ 20.81 | $ 16.98 |
Share-Based Compensation Plan84
Share-Based Compensation Plans - RSA, RSU Activity and unrecognized share based compensation expense (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 22, 2014 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 |
Stock Option Officers Employees and Consultants | |||||
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | |||||
Unrecognized Compensation Expense | $ 3,578 | ||||
Weighted Average Period of Recognition | 25 months 12 days | ||||
Restricted Stock Units (RSU) | |||||
Shares | |||||
Outstanding at the beginning of the period (in shares) | 213,000 | 118,000 | 100,000 | ||
Granted/Earned (in shares) | 162,000 | 95,000 | 118,000 | ||
Vested (in shares) | (15,643) | (100,000) | |||
Vested or forfeited (in shares) | (53,000) | ||||
Outstanding at the end of the period (in shares) | 322,000 | 213,000 | 118,000 | 100,000 | |
Weighted Average Grant Date Fair Value (per share) | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 66.50 | $ 58.35 | $ 32.88 | ||
Grant date fair value (in dollars per share) | 96.90 | 76.62 | 58.35 | ||
Vested in period, fair value at award date (in dollars per share) | 60.28 | 32.88 | |||
Vested or forfeited (in dollars per share) | 70.14 | ||||
Outstanding at the end of the period (in dollars per share) | $ 81.19 | $ 66.50 | $ 58.35 | $ 32.88 | |
Fair Value Outstanding | |||||
Fair value outstanding | $ 31,418 | $ 20,311 | $ 9,041 | $ 6,531 | |
Vested and settled | |||||
Vested in period, fair value at award date (in dollars per share) | $ 60.28 | $ 32.88 | |||
Restricted Stock Units and Performance Stock Units | |||||
UNRECOGNIZED SHARE-BASED COMPENSATION EXPENSE | |||||
Unrecognized Compensation Expense | $ 10,804 | ||||
Weighted Average Period of Recognition | 23 months 15 days | ||||
2008 Stock Incentive Plan | Restricted stock (RSA) | |||||
Shares | |||||
Outstanding at the beginning of the period (in shares) | 2,000 | 62,000 | |||
Vested (in shares) | (2,000) | (62,000) | |||
Outstanding at the end of the period (in shares) | 2,000 | 62,000 | |||
Weighted Average Grant Date Fair Value (per share) | |||||
Outstanding at the beginning of the period (in dollars per share) | $ 89.12 | $ 67.10 | |||
Grant date fair value (in dollars per share) | $ 89.12 | $ 67.10 | |||
Outstanding at the end of the period (in dollars per share) | $ 89.12 | $ 67.10 | |||
Fair Value Outstanding | |||||
Fair value outstanding | $ 4,073 | ||||
2008 Stock Incentive Plan | Restricted stock (RSA) | Former Chief Executive Officer | |||||
Shares | |||||
Vested (in shares) | (62,304) | ||||
Weighted Average Grant Date Fair Value (per share) | |||||
Vested in period, fair value at award date (in dollars per share) | 67.10 | ||||
Vested and settled | |||||
Vested in period, fair value at award date (in dollars per share) | $ 67.10 | ||||
2008 Stock Incentive Plan | Performance Restricted Stock Units (PSU) | |||||
Shares | |||||
Granted/Earned (in shares) | 139,846 | 130,608 | 178,101 | ||
Weighted Average Grant Date Fair Value (per share) | |||||
Grant date fair value (in dollars per share) | $ 97.12 | $ 76.62 | $ 58.36 | ||
Vested in period, fair value at award date (in dollars per share) | $ 67.10 | ||||
Vested and settled | |||||
Vested in period, fair value at award date (in dollars per share) | $ 67.10 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Defined Contribution Plans | |||
Total matching contributions to saving plans | $ 3.6 | $ 3.5 | $ 3.2 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Components of accumulated other comprehensive loss | |||
Balance | $ 665 | ||
Tax effects | (243) | $ (34) | $ (470) |
Other comprehensive income (loss) | 508 | 741 | 1,015 |
Balance | 1,173 | 665 | |
Unrealized Holding Gains (Losses) On Cash Flow Hedges | Foreign currency contracts | |||
Components of accumulated other comprehensive loss | |||
Balance | 665 | (76) | |
Other comprehensive income before reclassification | 2,205 | 1,978 | |
Amounts reclassified out of accumulated other comprehensive income | (1,454) | (1,203) | |
Tax effects | (243) | (34) | |
Other comprehensive income (loss) | 508 | 741 | |
Balance | 1,173 | 665 | $ (76) |
Net deferred tax benefits (expense) | $ (200) | $ 0 |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Selected Quarterly Financial Data (Unaudited) | |||||||||||
Sales revenue, net | $ 376,697 | $ 444,414 | $ 368,170 | $ 347,938 | $ 385,724 | $ 445,503 | $ 369,129 | $ 345,345 | $ 1,537,219 | $ 1,545,701 | $ 1,445,131 |
Gross Profit | 165,858 | 194,215 | 162,968 | 152,427 | 162,157 | 182,524 | 148,005 | 143,319 | 675,468 | 636,005 | 599,559 |
Asset Impairment Charges | 5,000 | 7,400 | 3,000 | 3,000 | 12,400 | 6,000 | 9,000 | ||||
Net Income | $ 35,696 | $ 57,612 | $ 28,355 | $ 19,026 | $ 9,588 | $ 46,778 | $ 24,452 | $ 20,410 | $ 140,689 | $ 101,228 | $ 131,164 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.31 | $ 2.10 | $ 1.02 | $ 0.69 | $ 0.34 | $ 1.66 | $ 0.86 | $ 0.72 | $ 5.11 | $ 3.58 | $ 4.59 |
Diluted (in dollars per share) | $ 1.30 | $ 2.07 | $ 1 | $ 0.68 | $ 0.34 | $ 1.63 | $ 0.84 | $ 0.70 | $ 5.04 | $ 3.52 | $ 4.52 |
Segment and Geographic Inform88
Segment and Geographic Information - Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Segment information | |||||||||||
Sales revenue, net | $ 376,697 | $ 444,414 | $ 368,170 | $ 347,938 | $ 385,724 | $ 445,503 | $ 369,129 | $ 345,345 | $ 1,537,219 | $ 1,545,701 | $ 1,445,131 |
Asset impairment charges | 5,000 | $ 7,400 | 3,000 | $ 3,000 | 12,400 | 6,000 | 9,000 | ||||
Operating income | 164,332 | 130,615 | 161,719 | ||||||||
Identifiable assets | 1,813,096 | 1,848,894 | 1,813,096 | 1,848,894 | 1,622,239 | ||||||
Capital and intangible asset expenditures | 20,619 | 20,603 | 6,521 | ||||||||
Depreciation and amortization | 44,341 | 42,749 | 39,653 | ||||||||
Housewares | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 418,128 | 310,663 | 296,252 | ||||||||
Operating income | 89,641 | 56,659 | 59,392 | ||||||||
Identifiable assets | 642,967 | 610,176 | 642,967 | 610,176 | 387,663 | ||||||
Capital and intangible asset expenditures | 5,652 | 1,560 | 2,019 | ||||||||
Depreciation and amortization | 5,723 | 4,183 | 3,615 | ||||||||
Health & Home | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 632,769 | 642,735 | 613,253 | ||||||||
Operating income | 52,294 | 38,078 | 50,821 | ||||||||
Identifiable assets | 679,248 | 715,104 | 679,248 | 715,104 | 667,954 | ||||||
Capital and intangible asset expenditures | 5,192 | 9,131 | 2,602 | ||||||||
Depreciation and amortization | 20,374 | 21,300 | 20,532 | ||||||||
Nutritional Supplements | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 130,543 | 153,126 | 100,395 | ||||||||
Asset impairment charges | 9,500 | ||||||||||
Operating income | (7,933) | 11,446 | 9,512 | ||||||||
Identifiable assets | 205,889 | 216,963 | 205,889 | 216,963 | 216,798 | ||||||
Capital and intangible asset expenditures | 5,112 | 3,927 | 613 | ||||||||
Depreciation and amortization | 8,408 | 9,424 | $ 5,380 | ||||||||
Period of operating results of acquisition included | 8 months | ||||||||||
Overhead allocation | 6,000 | 4,700 | |||||||||
Beauty | |||||||||||
Segment information | |||||||||||
Sales revenue, net | 355,779 | 439,177 | $ 435,231 | ||||||||
Asset impairment charges | 2,900 | 6,000 | 9,000 | ||||||||
Operating income | 30,330 | 24,432 | 41,994 | ||||||||
Identifiable assets | $ 284,992 | $ 306,651 | 284,992 | 306,651 | 349,824 | ||||||
Capital and intangible asset expenditures | 4,663 | 5,985 | 1,287 | ||||||||
Depreciation and amortization | $ 9,836 | $ 7,842 | $ 10,126 | ||||||||
Hydro Flask | Housewares | |||||||||||
Segment information | |||||||||||
Period of operating results of acquisition included | 11 months 15 days |
Segment and Geographic Inform89
Segment and Geographic Information - Geographic information(Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
GEOGRAPHIC INFORMATION | |||||||||||
Sales revenue, net | $ 376,697 | $ 444,414 | $ 368,170 | $ 347,938 | $ 385,724 | $ 445,503 | $ 369,129 | $ 345,345 | $ 1,537,219 | $ 1,545,701 | $ 1,445,131 |
Long-lived assets | 1,257,018 | 1,093,806 | 1,257,018 | 1,093,806 | 1,084,232 | ||||||
United States | |||||||||||
GEOGRAPHIC INFORMATION | |||||||||||
Sales revenue, net | 1,241,653 | 1,233,464 | 1,139,959 | ||||||||
Long-lived assets | 599,451 | 606,925 | 599,451 | 606,925 | 631,326 | ||||||
International | |||||||||||
GEOGRAPHIC INFORMATION | |||||||||||
Sales revenue, net | 295,566 | 312,237 | 305,172 | ||||||||
Long-lived assets | 657,567 | 486,881 | 657,567 | 486,881 | 452,906 | ||||||
Barbados | |||||||||||
GEOGRAPHIC INFORMATION | |||||||||||
Long-lived assets | 498,077 | 315,182 | 498,077 | 315,182 | 319,298 | ||||||
Other international | |||||||||||
GEOGRAPHIC INFORMATION | |||||||||||
Long-lived assets | $ 159,490 | $ 171,699 | $ 159,490 | $ 171,699 | $ 133,608 |
Segment and Geographic Inform90
Segment and Geographic Information - Percentage of sales (Details) | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Percentage of net sales revenue | 44.00% | 44.00% | |
Net sales revenue | Customer concentration risk | Largest customer | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Percentage of net sales revenue | 15.00% | 16.00% | 18.00% |
Net sales revenue | Customer concentration risk | Largest customer | United States | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Percentage of sales from largest customer that were within the U.S. | 94.00% | 94.00% | 84.00% |
SCHEDULE II - Valuation and q91
SCHEDULE II - Valuation and qualifying accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | |
Allowances for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Beginning Balance | $ 1,733 | $ 1,849 | $ 2,127 |
Charged to cost and expenses | 2,326 | 225 | 299 |
Deductions | 697 | 341 | 577 |
Ending Balance | 3,362 | 1,733 | 1,849 |
Allowances for back-to-stock returns | |||
Valuation and Qualifying Accounts | |||
Beginning Balance | 4,165 | 4,033 | 2,552 |
Net charge (credit) to sales revenue | (1,871) | 132 | 1,481 |
Ending Balance | $ 2,294 | $ 4,165 | $ 4,033 |