Helen of Troy Limited (HELE) 10-Q 10 Jul 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 31, 2018	Jul. 05, 2018
Document and Entity Information
Entity Registrant Name	HELEN OF TROY LTD
Entity Central Index Key	916,789
Document Type	10-Q
Document Period End Date	May 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--02-28
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		26,342,986
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Assets, current:
Cash and cash equivalents	$ 16,929	$ 20,738
Receivables - principally trade, less allowances of $1,703 and $2,912	255,674	275,565
Inventory	256,268	251,511
Prepaid expenses and other current assets	13,831	9,545
Income taxes receivable	1,266	349
Total assets, current	543,968	557,708
Property and equipment, net of accumulated depreciation of $118,971 and $115,202	123,619	123,503
Goodwill	602,320	602,320
Other intangible assets, net of accumulated amortization of $171,744 and $167,354	298,915	302,915
Deferred tax assets, net	13,476	16,654
Other assets, net of accumulated amortization of $2,045 and $2,022	20,676	20,617
Total assets	1,602,974	1,623,717
Liabilities, current:
Accounts payable, principally trade	125,805	129,341
Accrued expenses and other current liabilities	131,174	168,261
Long-term debt, current maturities	1,884	1,884
Total liabilities, current	258,863	299,486
Long-term debt, excluding current maturities	298,239	287,985
Deferred tax liabilities, net	7,561	7,096
Other liabilities, noncurrent	14,614	14,691
Total liabilities	579,277	609,258
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; 26,317,046 and 26,575,634 shares issued and outstanding	2,629	2,658
Additional paid in capital	233,783	230,676
Accumulated other comprehensive income	4,068	631
Retained earnings	783,217	780,494
Total stockholders' equity	1,023,697	1,014,459
Total liabilities and stockholders' equity	$ 1,602,974	$ 1,623,717

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Consolidated Condensed Balance Sheets
Receivables - principally trade, allowances (in dollars)	$ 1,703	$ 2,912
Property and equipment, accumulated depreciation (in dollars)	118,971	115,202
Other intangible assets, accumulated amortization (in dollars)	171,474	167,354
Other assets, accumulated amortization (in dollars)	$ 2,045	$ 2,022
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	26,317,046	26,575,634
Common stock, shares outstanding	26,317,046	26,575,634

Consolidated Condensed Statemen

Consolidated Condensed Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Consolidated Condensed Statements of Income
Sales revenue, net	$ 354,679	$ 325,491
Cost of goods sold	208,121	193,921
Gross profit	146,558	131,570
Selling, general and administrative expense ("SG&A")	101,506	96,987
Asset impairment charges		4,000
Restructuring charges	1,725
Operating income	43,327	30,583
Nonoperating income, net	75	166
Interest expense	(2,687)	(3,725)
Income before income taxes	40,715	27,024
Income tax expense (benefit)	2,542	(284)
Income from continuing operations	38,173	27,308
Loss from discontinued operations, net of tax	(381)	(21,440)
Net income	$ 37,792	$ 5,868
Earnings (loss) per share - basic
Continuing operations	$ 1.44	$ 1.01
Discontinued operations	(0.01)	(0.79)
Total earnings per share - basic	1.42	0.22
Earnings (loss) per share - diluted
Continuing operations	1.43	1
Discontinued operations	(0.01)	(0.79)
Total earnings per share - diluted	$ 1.42	$ 0.22
Income tax expense (benefit):
Net income	$ 37,792	$ 5,868
Weighted average shares of common stock used in computing net earnings per share:
Basic (in shares)	26,521	27,076
Diluted (in shares)	26,614	27,245

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Income from continuing operations before tax	$ 40,715	$ 27,024
Income tax (expense) benefit	(2,542)	284
Income from continuing operations net of tax	38,173	27,308
Income (loss) from discontinued operations before tax	(484)	(33,931)
Income tax benefit (expense) discontinued operations	103	12,491
Loss from discontinued operations, net of tax	(381)	(21,440)
Net income before tax	40,231	(6,907)
Income tax (expense) benefit continuing and discontinued operations	(2,439)	12,775
Net income	37,792	5,868
Cash flow hedge activity, before tax
Subtotal	3,889	(2,547)
Total OCI, before tax	3,828	(2,547)
Comprehensive income, before tax	44,059	(9,454)
Cash flow hedge activity, tax
Subtotal	(556)	370
Total OCI, tax	(391)	370
Comprehensive income, Tax	(2,830)	13,145
Cash flow hedge activity, net of tax
Subtotal	3,333	(2,177)
Total OCI	3,437	(2,177)
Comprehensive income, net of tax	41,229	3,691
Interest rate swaps
Cash flow hedge activity, before tax
Changes in fair market value	(61)
Subtotal	(61)
Cash flow hedge activity, tax
Changes in fair market value	15
Subtotal	165
Cash flow hedge activity, net of tax
Changes in fair market value	(46)
Subtotal	104
Interest rate swaps | ASU 2018-02
Cash flow hedge activity, tax
Adoption of new accounting standard	150
Cash flow hedge activity, net of tax
Adoption of new accounting standard	150
Foreign currency contracts
Cash flow hedge activity, before tax
Changes in fair market value	4,576	(2,245)
Settlements reclassified to income	(687)	(302)
Cash flow hedge activity, tax
Changes in fair market value	(622)	316
Settlements reclassified to income	64	54
Cash flow hedge activity, net of tax
Changes in fair market value	3,954	(1,929)
Settlements reclassified to income	(623)	$ (248)
Foreign currency contracts | ASU 2018-02
Cash flow hedge activity, tax
Adoption of new accounting standard	2
Cash flow hedge activity, net of tax
Adoption of new accounting standard	$ 2

Consolidated Condensed Stateme6

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Cash provided by operating activities:
Net income	$ 37,792	$ 5,868
Loss from discontinued operations, net of tax	(381)	(21,440)
Income from continuing operations	38,173	27,308
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	7,982	8,341
Amortization of financing costs	255	210
Provision for doubtful receivables	369	32
Non-cash share-based compensation	6,324	3,138
Non-cash intangible asset impairment charges		4,000
Loss (gain) on the sale or disposal of property and equipment	32	(10)
Deferred income taxes and tax credits	3,098	(768)
Changes in operating capital, net of effects of acquisition of businessess:
Receivables	19,522	21,921
Inventories	(4,757)	(24,072)
Prepaid expenses and other current assets	(2,344)	(679)
Other assets and liabilities, net	305	(2,901)
Accounts payable	(3,536)	25,365
Accrued expenses and other current liabilities	(35,253)	(20,713)
Accrued income taxes	(1,259)	(1,336)
Net cash provided by operating activities - continuing operations	28,911	39,836
Net cash provided (used) by operating activities - discontinued operations	(381)	1,907
Net cash provided by operating activities	28,530	41,743
Cash used by investing activities:
Capital and intangible asset expenditures	(4,182)	(4,082)
Proceeds from the sale of property and equipment		13
Net cash used by investing activities - continuing operations	(4,182)	(4,069)
Net cash used by investing activities - discontinued operations		(8,945)
Net cash used by investing activities	(4,182)	(13,014)
Cash used by financing activities:
Proceeds from line of credit	161,200	131,200
Repayment of line of credit	(149,300)	(157,600)
Repayment of long-term debt	(1,900)	(5,700)
Proceeds from share issuances under share-based compensation plans	3,391	3,580
Payment of tax obligations resulting from cashless share award settlement	(4,481)	(6,788)
Payments for repurchases of common stock	(37,067)
Net cash used by financing activities - continuing operations	(28,157)	(35,308)
Net cash used in financing activities	(28,157)	(35,308)
Net decrease in cash and cash equivalents	(3,809)	(6,579)
Cash and cash equivalents, beginning balance	20,738	23,087
Cash and cash equivalents, ending balance	16,929	16,508
Less: Cash and cash equivalents of discontinued operations, ending balance		(598)
Cash and cash equivalents of continuing operations, ending balance	$ 16,929	$ 17,106

Basis of Presentation and Relat

Basis of Presentation and Related Information	3 Months Ended
	May 31, 2018
Basis of Presentation and and Related Information
Basis of Presentation and Related Information	Note 1 - Basis of Presentation and Related Information The accompanying condensed consolidated financial statements contain all adjustments (consisting of of normal recurring adjustments) necessary to present fairly our consolidated financial position as of May 31, 2018 and February 28, 2018, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 28, 2018, and our other reports on file with the Securities and Exchange Commission (the “SEC”). When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to “the FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to United States (“U.S.”) generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to “ASC” refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have three segments: Housewares, Health & Home, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage and food containers. The Health & Home segment focuses on healthcare devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. On December 20, 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements. For more information, see Note 4 to these condensed consolidated financial statements. All other notes present results from continuing operations. 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 GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany accounts and transactions are eliminated in consolidation. We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation, including reclassifications for discontinued operations (see Note 4) and the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (see Notes 2 and 3).

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	May 31, 2018
New Accounting Pronouncements.
New Accounting Pronouncements	Note 2 – New Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815) , which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. The ASU is effective for us March 1, 2019. We are currently evaluating the impact this guidance may have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The ASU 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. The ASU is effective for us on March 1, 2019. We are currently evaluating the impact this guidance may have on our consolidated financial statements. There have been no other accounting pronouncements issued but not yet adopted, which are expected to have a material impact on our consolidated financial statements. Adopted In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ( Topic 220 ). The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) : Scope of Modification Accounting (Topic 718) . This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In 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. Adoption of this guidance in the first quarter of fiscal 2018 did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra–Entity Asset Transfers of Assets Other Than Inventory (Topic 740) . ASU 2016-16 amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of taxes when the transfer occurs. The amendment was effective for us on March 1, 2018. A modified retrospective approach is required for transition to the new guidance, with a cumulative-effect adjustment consisting of the net impact from (1) the write-off of any unamortized expense previously deferred and (2) recognition of any previously unrecognized deferred tax assets, net of any valuation allowance. The new guidance does not include any specific new disclosure requirements. Adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance. We adopted the guidance in the first quarter of fiscal 2019. See Note 3 for a further discussion regarding the impact of adoption of this guidance on our consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	May 31, 2018
Revenue Recognition
Revenue Recognition	Note 3 – Revenue Recognition We adopted the provisions of ASU 2014-09 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized is not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance do however impact the classification of certain consideration paid to our customers. We therefore, have reclassified an immaterial amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented. We have elected to adopt the guidance using the full restrospective method. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. In accordance with the guidance, most variable consideration is classified as a reduction to net sales. Sales taxes and other similar taxes are excluded from revenue. We elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. The effect of the adoption of ASU 2014-09 on the condensed consolidated financial statements is as follows: Before Reclassification After Reclassification February 28, February 28, Balance Sheet (in thousands) 2018 Reclassification 2018 Receivables (1) $ 273,168 $ 2,397 $ 275,565 Accrued expenses and other current liabilities (1) $ $ 2,397 $ Before Reclassification After Reclassification Three Months Three Months Ended May 31, Ended May 31, Statement of Income (in thousands) 2017 Reclassification 2017 Sales revenue, net (1) $ 327,986 $ (2,495) $ 325,491 SG&A (1) $ 99,482 $ (2,495) $ 96,987 (1) Reflects amounts from continuing operations.

Discontinued Operations

Discontinued Operations	3 Months Ended
	May 31, 2018
Discontinued Operations
Discontinued Operations	Note 4 – Discontinued Operations On December 20, 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The Nutritional Supplements segment sold premium branded doctor formulated nutritional supplements, skincare and pain relief products through highly targeted catalog and other printed collateral mailings, online and direct response print, radio and television media. The purchase price from the sale is comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million, payable on or before August 1, 2019. The final amount of the supplemental payment may be adjusted up or down based on the performance of Healthy Directions through February 28, 2018. In conjunction with the sale of the business, we have agreed to provide certain transition services for up to an eighteen-month period following the closing of the transaction. There were no balance sheet amounts related to discontinued operations for either period presented. The results of operations associated with discontinued operations are presented in the following table: Three Months Ended May 31, (in thousands) 2018 2017 Sales revenue, net $ - $ 31,619 Cost of goods sold - 9,236 Gross profit - 22,383 Selling, general and administrative expense ("SG&A") - 24,200 Asset impairment charges (1) - 32,000 Operating loss - (33,817) Gain (loss) on sale before income tax (2) (484) - Interest expense - (114) Loss before income tax (484) (33,931) Income tax benefit 103 12,491 Loss from discontinued operations $ (381) $ (21,440) (1) Includes pre-tax goodwill impairment charges of $26.0 million and indefinite-lived trademark impairment charges of $6.0 million during the first quarter of fiscal 2018. Total after tax asset impairment charges were $19.6 million for the first quarter of fiscal 2018. (2) Includes adjustments recorded in the first quarter of fiscal 2019 to the initial estimated gain on sale before income tax recorded in the fourth quarter of fiscal 2018 .

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	3 Months Ended
	May 31, 2018
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information	Note 5 – Supplemental Balance Sheet Information PROPERTY AND EQUIPMENT Estimated Useful Lives May 31, February 28, (in thousands) (Years) 2018 2018 Land - $ 12,800 $ 12,800 Building and improvements - 40 107,176 106,870 Computer, furniture and other equipment - 15 80,581 79,657 Tools, molds and other production equipment - 10 33,761 33,466 Construction in progress - 8,272 5,912 Property and equipment, gross 242,590 238,705 Less accumulated depreciation (118,971) (115,202) Property and equipment, net $ 123,619 $ 123,503 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES May 31, February 28, (in thousands) 2018 2018 Accrued compensation, benefits and payroll taxes $ 18,490 $ 37,666 Accrued sales discounts and allowances 27,860 28,311 Accrued sales returns 23,169 24,842 Accrued advertising 28,077 25,324 Accrued legal fees and settlements 996 17,243 Other 32,582 34,875 Total accrued expenses and other current liabilities $ 131,174 $ 168,261 OTHER LIABILITIES, NONCURRENT May 31, February 28, (in thousands) 2018 2018 Deferred compensation liability $ 5,650 $ 6,736 Liability for uncertain tax positions 3,008 3,349 Other liabilities 5,956 4,606 Total other liabilities, noncurrent $ 14,614 $ 14,691

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	May 31, 2018
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6 – Goodwill and Intangible Assets Impairment Testing during the first quarter of Fiscal 2018 – During the first quarter of fiscal 2018, we performed interim impairment testing for a certain brand in our Beauty segment due to a revised financial projection. As a result of our testing, we recorded a non-cash asset impairment charge of $4.0 million ($3.6 million after tax The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented: May 31, 2018 February 28, 2018 Gross Cumulative Gross Cumulative Carrying Goodwill Accumulated Net Book Carrying Goodwill Accumulated Net Book (in thousands) Amount Impairments Amortization Value Amount Impairments Amortization Value Housewares: Goodwill $ 282,056 $ - $ - $ 282,056 $ 282,056 $ - $ - $ 282,056 Trademarks - indefinite 134,200 - - 134,200 134,200 - - 134,200 Other intangibles - finite 40,932 - (18,007) 22,925 40,828 - (17,530) 23,298 Subtotal 457,188 - (18,007) 439,181 457,084 - (17,530) 439,554 Health & Home: Goodwill 284,913 - - 284,913 284,913 - - 284,913 Trademarks - indefinite 54,000 - - 54,000 54,000 - - 54,000 Licenses - finite 15,300 - (15,300) - 15,300 - (15,300) - Licenses - indefinite 7,400 - - 7,400 7,400 - - 7,400 Other intangibles - finite 117,602 - (79,832) 37,770 117,586 - (77,128) 40,458 Subtotal 479,215 - (95,132) 384,083 479,199 - (92,428) 386,771 Beauty: Goodwill 81,841 (46,490) - 35,351 81,841 (46,490) - 35,351 Trademarks - indefinite 30,407 - - 30,407 30,407 - - 30,407 Trademarks - finite 150 - (98) 52 150 - (97) 53 Licenses - indefinite 10,300 - - 10,300 10,300 - - 10,300 Licenses - finite 13,696 - (12,245) 1,451 13,696 - (12,166) 1,530 Other intangibles - finite 46,402 - (45,992) 410 46,402 - (45,133) 1,269 Subtotal 182,796 (46,490) (58,335) 77,971 182,796 (46,490) (57,396) 78,910 Total $ 1,119,199 $ (46,490) $ (171,474) $ 901,235 $ 1,119,079 $ (46,490) $ (167,354) $ 905,235 The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2019 through 2024. Aggregate Amortization Expense (in thousands) For the three months ended May 31, 2018 $ 4,120 May 31, 2017 4,847 Estimated Amortization Expense (in thousands) Fiscal 2019 $ 14,039 Fiscal 2020 12,428 Fiscal 2021 10,383 Fiscal 2022 4,078 Fiscal 2023 4,050 Fiscal 2024 3,678

Share-Based Compensation Plans

Share-Based Compensation Plans	3 Months Ended
	May 31, 2018
Share-Based Compensation Plans
Share-Based Compensation Plans	Note 7 – Share-Based Compensation Plans We have equity awards outstanding under several share-based compensation plans. During the three months ended May 31, 2018, we had the following share-based compensation activity: · We issued 1,379 shares to non-employee Board members with a total grant date fair value of $0.1 million and a share price of $89.10. · We granted time-vested restricted stock units (“RSUs”) and performance-based stock units (“PSUs”) that may be settled for 70,141 and 76,064 shares of common stock with average fair values at the grant dates of $86.23 and $86.24 per unit, respectively. · Employee RSUs for 36,411 shares vested and settled with a total fair value at settlement of $3.2 million and an average share price of $89.09. Employee PSUs for 99,038 shares vested and settled with a total grant date fair value of $9.0 million, and an average share price of $90.80. · Employees exercised stock options to purchase 43,767 shares of common stock. We recorded the following share-based compensation expense in SG&A for the periods shown below: Three Months Ended May 31, (in thousands, except per share data) 2018 2017 Stock options $ 308 $ 539 Directors stock compensation 175 200 Performance based and other stock awards 5,571 2,459 Employee stock purchase plan 322 Share-based compensation expense 6,376 3,198 Less income tax benefits (270) (490) Share-based compensation expense, net of income tax benefits $ 6,106 $ 2,708 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.23 $ 0.10 Diluted $ 0.23 $ 0.10

Repurchases of Helen of Troy Co

Repurchases of Helen of Troy Common Stock	3 Months Ended
	May 31, 2018
Repurchase of Helen of Troy Common Stock
Repurchase of Helen of Troy Common Stock	Note 8 – Repurchase of Helen of Troy Common Stock On May 10, 2017, our Board of Directors authorized the repurchase of up to $400 million of our outstanding common stock. The authorization is effective for a period of three years and replaced our existing repurchase authorization, of which approximately $82 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. As of May 31, 2018, our repurchase authorization allowed for the purchase of $286.5 million of common stock. Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the equity holder can be paid for by having the equity holder tender back to the Company a number of shares at fair value equal to the amounts due. Net exercises are treated as purchases and retirements of shares. The following table summarizes our share repurchase activity for the periods shown: Three Months Ended May 31, (in thousands, except share and per share data) 2018 2017 Common stock repurchased on the open market: Number of shares 407,025 - Aggregate value of shares $ 37,067 $ - Average price per share $ 91.07 $ - Common stock received in connection with share-based compensation: Number of shares 49,595 70,707 Aggregate value of shares $ 4,481 $ 6,788 Average price per share $ 90.36 $ 95.99

Restructuring Plan

Restructuring Plan	3 Months Ended
	May 31, 2018
Restructuring Plan
Restructuring Plan	Note 9 – Restructuring Plan In October 2017, we announced that we had approved a restructuring plan (referred to as “Project Refuel”) intended to enhance the performance of primarily the Beauty and former Nutritional Supplements segments. Project Refuel includes a reduction-in-force and the elimination of certain contracts and operating expenses. During the first quarter of fiscal 2019, we expanded Project Refuel to include the realignment and streamlining of our supply chain structure. We are targeting total annualized profit improvements of approximately $8.0 to $10.0 million over the duration of the plan. We estimate the plan will be completed by the first quarter of fiscal 2020, and now expect to incur total restructuring charges in the range of approximately $4.0 to $5.5 million during the period of the plan. Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management, are revised periodically and restructuring amounts are recognized as incurred. During the first quarter of fiscal 2019, we made cash restructuring payments of $1.1 million and had a remaining liability of $1.3 million as of May 31, 2018. We incurred $1.7 million of pre-tax restructuring charges during the first quarter of fiscal 2019, related primarily to employee severance and termination benefits, mostly for shared service supply chain initiatives. Program to date, we have incurred $3.5 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 31, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 10 – Commitments and Contingencies Thermometer Patent Litigation – In January 2016, a jury ruled against us 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. In March 2018, the Federal Circuit issued a decision, which reversed the district court’s verdict of infringement of one of the two patents at issue and remanded the damage award for a determination by the district court of the impact the reversal of infringement has on the damage award. Following the remand, we entered into a settlement agreement, filed a Stipulation of Dismissal with Prejudice and made a settlement payment of $15.0 million on May 31, 2018. Other Matters – We are involved in various other legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Notes 5, 11, 12 and 13 to these condensed consolidated financial statements provide additional information regarding certain of our significant commitments and contingencies.

Long-Term Debt

Long-Term Debt	3 Months Ended
	May 31, 2018
Long-Term Debt
Long-Term Debt	Note 11 – Long-Term Debt We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provided for an unsecured total revolving commitment of $1 billion as of May 31, 2018. 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 fees and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. As of May 31, 2018, the outstanding revolving loan principal balance was $281.3 million (excluding prepaid financing fees) and the face amount of outstanding letters of credit was $7.1 million. For the three-months ended May 31, 2018, borrowings under the Credit Agreement incurred interest charges at rates ranging from 2.8% to 5.0%. For the three-months ended May 31, 2017, borrowings under the Credit Agreement incurred interest charges at rates ranging from 2.3% to 4.5%. As of May 31, 2018, the amount available for borrowings under the Credit Agreement was $711.6 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur. As of May 31, 2018, these covenants effectively limited our ability to incur more than $547.2 million of additional debt from all sources, including our Credit Agreement, or $731.1 million in the event a qualified acquisition is consummated. The following table summarizes our long-term debt as of the end of the periods shown: LONG-TERM DEBT Original Date Interest May 31, February 28, (dollars in thousands) Borrowed Rates Matures 2018 2018 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) 03/13 Floating 03/23 $ 22,323 $ 24,219 Credit Agreement (2) 01/15 Floating 12/21 277,800 265,650 Total long-term debt 300,123 289,869 Less current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 298,239 $ 287,985 _____________________ (1) The MBFC Loan is unsecured with an original balance of $37.6 million and interest 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. The loan is subject to holder’s call on or after March 1, 2018. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2019 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) Floating interest rates are hedged with an interest rate swap to effectively fix interest rates on $100 million of the outstanding principal balance under the Credit Agreement. Notes 12 and 13 to these condensed consolidated financial statements provide additional information regarding the interest rate swap. At May 31, 2018 and February 28, 2018, our long-term debt has floating interest rates, and its book value approximates its fair value. All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain financial covenants, including maximum leverage ratios, minimum interest coverage ratios and minimum consolidated net worth levels (as each of these terms is defined in the various agreements). Our debt agreements also contain other customary covenants. We were in compliance with the terms of these agreements as of May 31, 2018.

Fair Value

Fair Value	3 Months Ended
	May 31, 2018
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 end of the periods shown: Fair Values at May 31, 2018 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,795 Interest rate swap 2,420 Foreign currency contracts 2,709 Total assets $ 6,924 Liabilities: Floating rate debt $ 300,123 Foreign currency contracts 361 Total liabilities $ 300,484 Fair Values at February 28, 2018 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,107 Interest rate swap 2,481 Foreign currency contracts 642 Total assets $ 4,230 Liabilities: Floating rate debt $ 289,869 Foreign currency contracts 2,606 Total liabilities $ 292,475 _____________________ (1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items. We use derivatives for hedging purposes and our derivatives are primarily interest rate swaps, foreign currency contracts and cross-currency debt swaps. See Notes 11 and 13 to these condensed consolidated financial statements for more information on our hedging activities. We classify our floating rate debt as a Level 2 item because the estimation of the fair market value requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms. Such comparable rates are considered significant other observable market inputs. The book value of the floating rate debt approximates its fair value as of the reporting date. Our other non-financial assets include goodwill 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 condensed consolidated financial statements contains additional information regarding impairment testing and related intangible asset impairments.

Financial Instruments and Risk

Financial Instruments and Risk Management	3 Months Ended
	May 31, 2018
Financial Instruments and Risk Management
Financial Instruments and Risk Management	Note 1 Foreign Currency Risk - Our functional currency is the U.S. Dollar. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales, certain inventory purchases and operating expenses. As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies. During the three-months ended May 31, 2018 and 2017, approximately 14% and 13% of our net sales revenue was in foreign currencies, respectively. These sales were primarily denominated in British Pounds, Euros, Mexican Pesos and Canadian Dollars. In our condensed consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities, are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A. Interest Rate Risk - Interest on our outstanding debt as of May 31, 2018 is based on floating interest rates. If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with an interest rate swap to effectively fix interest rates on $100.0 million of the outstanding principal balance under the Credit Agreement, which totaled $281.3 million as of May 31, 2018 (excluding prepaid financing fees). The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: May 31, 2018 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Hedge Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 07/2019 € 29,500 $ 1,181 $ 128 $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 06/2019 $ 21,250 579 18 - - Foreign currency contracts - sell Pounds Cash flow 07/2019 £ 17,500 591 102 - - Foreign currency contracts - sell Mexican Pesos Cash flow 09/2018 $ 20,000 99 - - - Interest rate swap Cash flow 12/2021 $ 100,000 415 2,005 - - Subtotal 2,865 2,253 - - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 4/2020 $ 5,280 - 11 - - Foreign currency contracts - cross-currency debt swaps - Pound (1) 4/2020 $ 6,395 - - - 361 Subtotal - 11 - 361 Total fair value $ 2,865 $ 2,264 $ - $ 361 February 28, 2018 Prepaid Accrued Expenses Expenses Final and Other and Other Other Hedge Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 07/2019 € 38,000 $ - $ 102 $ 1,320 $ - Foreign currency contracts - sell Canadian Dollars Cash flow 06/2019 $ 27,750 378 101 - - Foreign currency contracts - sell Pounds Cash flow 04/2019 £ 19,500 - 56 513 - Foreign currency contracts - sell Mexican Pesos Cash flow 05/2018 $ 20,000 5 - - - Interest rate swap Cash flow 12/2021 $ 100,000 539 1,942 - - Subtotal 2,201 1,833 - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap - Euro (1) 4/2020 $ 5,280 - - - 208 Foreign currency contracts - cross-currency debt swaps - Pound (1) 4/2020 $ 6,395 - - - 565 Subtotal - - - 773 Total fair value $ 922 $ 2,201 $ 1,833 $ 773 _____________________ (1) These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. The following table summarizes the pre-tax effect of derivative instruments for the periods shown: Three Months Ended May 31, 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) 2018 2017 Location 2018 2017 Location 2018 2017 Currency contracts - cash flow hedges $ 4,576 $ (2,245) SG&A $ 687 $ 302 $ - $ - Interest rate swaps - cash flow hedges (61) - Interest expense - - Interest expense 75 - Cross-currency debt swaps - principal - - - - SG&A 423 (549) Cross-currency debt swaps - interest - - - - Interest Expense 74 - Total $ 4,515 $ (2,245) $ 687 $ 302 $ 572 $ (549) We expect pre-tax net gains of $2.9 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 vary and the underlying contracts settle. Counterparty Credit Risk - Financial instruments, including foreign currency contracts and cross currency debt swaps, expose us to counterparty credit risk for nonperformance. We manage our exposure to counterparty credit risk by only dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit losses is remote.

Segment Information

Segment Information	3 Months Ended
	May 31, 2018
Segment Information
Segment Information	Note 14 – Se The following tables present segment information included in continuing operations for the periods shown: THREE MONTHS ENDED MAY 31 (in thousands) 2018 Housewares Health & Home Beauty Total Sales revenue, net $ 117,303 $ 163,431 $ 73,945 $ 354,679 Restructuring charges 760 358 607 1,725 Operating income 22,183 19,657 1,487 43,327 Capital and intangible asset expenditures 1,654 2,189 339 4,182 Depreciation and amortization 1,484 4,148 2,350 7,982 (in thousands) 2017 Housewares Health & Home Beauty Total Sales revenue, net $ 98,665 $ 148,289 $ 78,537 $ 325,491 Asset impairment charges - - 4,000 4,000 Operating income (loss) 17,936 14,244 (1,597) 30,583 Capital and intangible asset expenditures 2,491 1,113 478 4,082 Depreciation and amortization 1,427 4,138 2,776 8,341 We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, restructuring charges, and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income (loss) is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment. We have reallocated corporate overhead that was previously allocated to our former Nutritional Supplements segment. We do not allocate nonoperating income and expense, including interest or income taxes, to operating segments.

Income Taxes

Income Taxes	3 Months Ended
	May 31, 2018
Income Taxes
Income Taxes	Note 15 – Income Taxes Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. Among other changes, the Tax Act lowered the U.S. corporate income tax rate from 35% to 21% and established a modified territorial system requiring mandatory deemed repatriation tax on undistributed earnings of certain foreign subsidiaries. The Tax Act also has an impact on certain executive compensation that is no longer deductible. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. We considered the provisions of the Tax Act in calculating the estimated annual effective tax rate. We continue to apply the guidance in Staff Accounting Bulletin No. 118 (“SAB 118”) and as of May 31, 2018, we have not completed the accounting for all the tax effects enacted under Tax Act. The Company made reasonable estimates of those effects during fiscal 2018 and in the first quarter of fiscal 2019. We will continue to refine our estimates as additional guidance and information becomes available. For the three months ended May 31, 2018, income tax expense as a percentage of income before income tax was 6.2%. Income tax benefit as a percentage of income before income tax was 1.1% for the same period last year. Income taxes for the three months ended May 31, 2018 includes a $0.3 million benefit from the recognition of excess tax benefits from share-based compensation settlements and exercises and a $0.8 million benefit from the lapse of the statute of limitations related to an uncertain tax position. Income taxes for the three months ended May 31, 2017 included a $2.5 million benefit from the recognition of excess tax benefits from share-based compensation settlements and exercises and a $0.6 million benefit from the lapse of the statute of limitations related to an uncertain tax position. During fiscal 2017, we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure. We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state. We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity.

Earnings per Share

Earnings per Share	3 Months Ended
	May 31, 2018
Earnings per Share
Earnings per Share	Note 16 – 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 7 to these condensed 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. The following table presents our weighted average basic and diluted shares for the periods shown: Three Months Ended May 31, (in thousands) 2018 2017 Weighted average shares outstanding, basic 26,521 27,076 Incremental shares from share-based compensation arrangements 93 169 Weighted average shares outstanding, diluted 26,614 27,245 Dilutive securities, stock options 138 253 Dilutive securities, unvested or unsettled stock awards - 79 Antidilutive securities 511 378

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	May 31, 2018
Revenue Recognition
Summary of effect of adoption of ASU 2014-09 on the condensed consolidated financial statements	Note 3 – Revenue Recognition We adopted the provisions of ASU 2014-09 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized is not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance do however impact the classification of certain consideration paid to our customers. We therefore, have reclassified an immaterial amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented. We have elected to adopt the guidance using the full restrospective method. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. In accordance with the guidance, most variable consideration is classified as a reduction to net sales. Sales taxes and other similar taxes are excluded from revenue. We elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. The effect of the adoption of ASU 2014-09 on the condensed consolidated financial statements is as follows: Before Reclassification After Reclassification February 28, February 28, Balance Sheet (in thousands) 2018 Reclassification 2018 Receivables (1) $ 273,168 $ 2,397 $ 275,565 Accrued expenses and other current liabilities (1) $ $ 2,397 $ Before Reclassification After Reclassification Three Months Three Months Ended May 31, Ended May 31, Statement of Income (in thousands) 2017 Reclassification 2017 Sales revenue, net (1) $ 327,986 $ (2,495) $ 325,491 SG&A (1) $ 99,482 $ (2,495) $ 96,987 (1) Reflects amounts from continuing operations.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	May 31, 2018
Discontinued Operations
Summary of results of operations associated with discontinued operations	Three Months Ended May 31, (in thousands) 2018 2017 Sales revenue, net $ - $ 31,619 Cost of goods sold - 9,236 Gross profit - 22,383 Selling, general and administrative expense ("SG&A") - 24,200 Asset impairment charges (1) - 32,000 Operating loss - (33,817) Gain (loss) on sale before income tax (2) (484) - Interest expense - (114) Loss before income tax (484) (33,931) Income tax benefit 103 12,491 Loss from discontinued operations $ (381) $ (21,440) (1) Includes pre-tax goodwill impairment charges of $26.0 million and indefinite-lived trademark impairment charges of $6.0 million during the first quarter of fiscal 2018. Total after tax asset impairment charges were $19.6 million for the first quarter of fiscal 2018. (2) Includes adjustments recorded in the first quarter of fiscal 2019 to the initial estimated gain on sale before income tax recorded in the fourth quarter of fiscal 2018 .

Supplemental Balance Sheet In25

Supplemental Balance Sheet Information (Tables)	3 Months Ended
	May 31, 2018
Supplemental Balance Sheet Information
Schedule of property and equipment	Estimated Useful Lives May 31, February 28, (in thousands) (Years) 2018 2018 Land - $ 12,800 $ 12,800 Building and improvements - 40 107,176 106,870 Computer, furniture and other equipment - 15 80,581 79,657 Tools, molds and other production equipment - 10 33,761 33,466 Construction in progress - 8,272 5,912 Property and equipment, gross 242,590 238,705 Less accumulated depreciation (118,971) (115,202) Property and equipment, net $ 123,619 $ 123,503
Schedule of accrued expenses and other current liabilities	May 31, February 28, (in thousands) 2018 2018 Accrued compensation, benefits and payroll taxes $ 18,490 $ 37,666 Accrued sales discounts and allowances 27,860 28,311 Accrued sales returns 23,169 24,842 Accrued advertising 28,077 25,324 Accrued legal fees and settlements 996 17,243 Other 32,582 34,875 Total accrued expenses and other current liabilities $ 131,174 $ 168,261
Schedule of other liabilities, noncurrent	May 31, February 28, (in thousands) 2018 2018 Deferred compensation liability $ 5,650 $ 6,736 Liability for uncertain tax positions 3,008 3,349 Other liabilities 5,956 4,606 Total other liabilities, noncurrent $ 14,614 $ 14,691

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	May 31, 2018
Goodwill and Intangible Assets
Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment	May 31, 2018 February 28, 2018 Gross Cumulative Gross Cumulative Carrying Goodwill Accumulated Net Book Carrying Goodwill Accumulated Net Book (in thousands) Amount Impairments Amortization Value Amount Impairments Amortization Value Housewares: Goodwill $ 282,056 $ - $ - $ 282,056 $ 282,056 $ - $ - $ 282,056 Trademarks - indefinite 134,200 - - 134,200 134,200 - - 134,200 Other intangibles - finite 40,932 - (18,007) 22,925 40,828 - (17,530) 23,298 Subtotal 457,188 - (18,007) 439,181 457,084 - (17,530) 439,554 Health & Home: Goodwill 284,913 - - 284,913 284,913 - - 284,913 Trademarks - indefinite 54,000 - - 54,000 54,000 - - 54,000 Licenses - finite 15,300 - (15,300) - 15,300 - (15,300) - Licenses - indefinite 7,400 - - 7,400 7,400 - - 7,400 Other intangibles - finite 117,602 - (79,832) 37,770 117,586 - (77,128) 40,458 Subtotal 479,215 - (95,132) 384,083 479,199 - (92,428) 386,771 Beauty: Goodwill 81,841 (46,490) - 35,351 81,841 (46,490) - 35,351 Trademarks - indefinite 30,407 - - 30,407 30,407 - - 30,407 Trademarks - finite 150 - (98) 52 150 - (97) 53 Licenses - indefinite 10,300 - - 10,300 10,300 - - 10,300 Licenses - finite 13,696 - (12,245) 1,451 13,696 - (12,166) 1,530 Other intangibles - finite 46,402 - (45,992) 410 46,402 - (45,133) 1,269 Subtotal 182,796 (46,490) (58,335) 77,971 182,796 (46,490) (57,396) 78,910 Total $ 1,119,199 $ (46,490) $ (171,474) $ 901,235 $ 1,119,079 $ (46,490) $ (167,354) $ 905,235
Summary of amortization expense attributable to intangible assets	Aggregate Amortization Expense (in thousands) For the three months ended May 31, 2018 $ 4,120 May 31, 2017 4,847
Schedule of estimated amortization expense of intangible assets	Estimated Amortization Expense (in thousands) Fiscal 2019 $ 14,039 Fiscal 2020 12,428 Fiscal 2021 10,383 Fiscal 2022 4,078 Fiscal 2023 4,050 Fiscal 2024 3,678

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	3 Months Ended
	May 31, 2018
Share-Based Compensation Plans
Schedule of share-based compensation expense in SG&A	Three Months Ended May 31, (in thousands, except per share data) 2018 2017 Stock options $ 308 $ 539 Directors stock compensation 175 200 Performance based and other stock awards 5,571 2,459 Employee stock purchase plan 322 Share-based compensation expense 6,376 3,198 Less income tax benefits (270) (490) Share-based compensation expense, net of income tax benefits $ 6,106 $ 2,708 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.23 $ 0.10 Diluted $ 0.23 $ 0.10

Repurchase of Helen of Troy Com

Repurchase of Helen of Troy Common Stock (Tables)	3 Months Ended
	May 31, 2018
Repurchase of Helen of Troy Common Stock
Summary of share repurchase activity	Three Months Ended May 31, (in thousands, except share and per share data) 2018 2017 Common stock repurchased on the open market: Number of shares 407,025 - Aggregate value of shares $ 37,067 $ - Average price per share $ 91.07 $ - Common stock received in connection with share-based compensation: Number of shares 49,595 70,707 Aggregate value of shares $ 4,481 $ 6,788 Average price per share $ 90.36 $ 95.99

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	May 31, 2018
Long-Term Debt
Summary of long-term debt	LONG-TERM DEBT Original Date Interest May 31, February 28, (dollars in thousands) Borrowed Rates Matures 2018 2018 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) 03/13 Floating 03/23 $ 22,323 $ 24,219 Credit Agreement (2) 01/15 Floating 12/21 277,800 265,650 Total long-term debt 300,123 289,869 Less current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 298,239 $ 287,985 _____________________ (1) The MBFC Loan is unsecured with an original balance of $37.6 million and interest 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. The loan is subject to holder’s call on or after March 1, 2018. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2019 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) Floating interest rates are hedged with an interest rate swap to effectively fix interest rates on $100 million of the outstanding principal balance under the Credit Agreement. Notes 12 and 13 to these condensed consolidated financial statements provide additional information regarding the interest rate swap. A

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	May 31, 2018
Fair Value
Schedule of fair value hierarchy of financial assets and liabilities presented at fair value and measured on a recurring basis	Fair Values at May 31, 2018 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,795 Interest rate swap 2,420 Foreign currency contracts 2,709 Total assets $ 6,924 Liabilities: Floating rate debt $ 300,123 Foreign currency contracts 361 Total liabilities $ 300,484 Fair Values at February 28, 2018 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,107 Interest rate swap 2,481 Foreign currency contracts 642 Total assets $ 4,230 Liabilities: Floating rate debt $ 289,869 Foreign currency contracts 2,606 Total liabilities $ 292,475 _____________________ (1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.

Financial Instruments and Ris31

Financial Instruments and Risk Management (Tables)	3 Months Ended
	May 31, 2018
Financial Instruments and Risk Management
Schedule of fair values of derivative instruments	May 31, 2018 Prepaid Accrued Expenses Expenses Final and Other and Other Other (in thousands) Hedge Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 07/2019 € 29,500 $ 1,181 $ 128 $ - $ - Foreign currency contracts - sell Canadian Dollars Cash flow 06/2019 $ 21,250 579 18 - - Foreign currency contracts - sell Pounds Cash flow 07/2019 £ 17,500 591 102 - - Foreign currency contracts - sell Mexican Pesos Cash flow 09/2018 $ 20,000 99 - - - Interest rate swap Cash flow 12/2021 $ 100,000 415 2,005 - - Subtotal 2,865 2,253 - - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 4/2020 $ 5,280 - 11 - - Foreign currency contracts - cross-currency debt swaps - Pound (1) 4/2020 $ 6,395 - - - 361 Subtotal - 11 - 361 Total fair value $ 2,865 $ 2,264 $ - $ 361 February 28, 2018 Prepaid Accrued Expenses Expenses Final and Other and Other Other Hedge Settlement Notional Current Other Current Liabilities, Derivatives designated as hedging instruments Type Date Amount Assets Assets Liabilities Non-current Foreign currency contracts - sell Euro Cash flow 07/2019 € 38,000 $ - $ 102 $ 1,320 $ - Foreign currency contracts - sell Canadian Dollars Cash flow 06/2019 $ 27,750 378 101 - - Foreign currency contracts - sell Pounds Cash flow 04/2019 £ 19,500 - 56 513 - Foreign currency contracts - sell Mexican Pesos Cash flow 05/2018 $ 20,000 5 - - - Interest rate swap Cash flow 12/2021 $ 100,000 539 1,942 - - Subtotal 2,201 1,833 - Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swap - Euro (1) 4/2020 $ 5,280 - - - 208 Foreign currency contracts - cross-currency debt swaps - Pound (1) 4/2020 $ 6,395 - - - 565 Subtotal - - - 773 Total fair value $ 922 $ 2,201 $ 1,833 $ 773 _____________________ (1) These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements.
Schedule of pre-tax effect of derivative instruments	Three Months Ended May 31, 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) 2018 2017 Location 2018 2017 Location 2018 2017 Currency contracts - cash flow hedges $ 4,576 $ (2,245) SG&A $ 687 $ 302 $ - $ - Interest rate swaps - cash flow hedges (61) - Interest expense - - Interest expense 75 - Cross-currency debt swaps - principal - - - - SG&A 423 (549) Cross-currency debt swaps - interest - - - - Interest Expense 74 - Total $ 4,515 $ (2,245) $ 687 $ 302 $ 572 $ (549)

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	May 31, 2018
Segment Information
Schedule of segment information	THREE MONTHS ENDED MAY 31 (in thousands) 2018 Housewares Health & Home Beauty Total Sales revenue, net $ 117,303 $ 163,431 $ 73,945 $ 354,679 Restructuring charges 760 358 607 1,725 Operating income 22,183 19,657 1,487 43,327 Capital and intangible asset expenditures 1,654 2,189 339 4,182 Depreciation and amortization 1,484 4,148 2,350 7,982 (in thousands) 2017 Housewares Health & Home Beauty Total Sales revenue, net $ 98,665 $ 148,289 $ 78,537 $ 325,491 Asset impairment charges - - 4,000 4,000 Operating income (loss) 17,936 14,244 (1,597) 30,583 Capital and intangible asset expenditures 2,491 1,113 478 4,082 Depreciation and amortization 1,427 4,138 2,776 8,341

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	May 31, 2018
Earnings per Share
Schedule of components of basic and diluted shares	Three Months Ended May 31, (in thousands) 2018 2017 Weighted average shares outstanding, basic 26,521 27,076 Incremental shares from share-based compensation arrangements 93 169 Weighted average shares outstanding, diluted 26,614 27,245 Dilutive securities, stock options 138 253 Dilutive securities, unvested or unsettled stock awards - 79 Antidilutive securities 511 378

Basis of Presentation and Rel34

Basis of Presentation and Related Information (Details)	3 Months Ended
	May 31, 2018segment$ / shares	Feb. 28, 2018$ / shares
Basis of Presentation and and Related Information
Common shares, par value (in dollars per share) | $ / shares	$ 0.10	$ 0.10
Number of segments | segment	3

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017	Feb. 28, 2018
Revenue Recognition
Receivables	$ 255,674		$ 275,565
Accrued expenses and other current liabilities	131,174		168,261
Selling, general and administrative expense ("SG&A")	$ 101,506	$ 96,987
ASU 2014-09
Revenue Recognition
Receivables			275,565
Accrued expenses and other current liabilities			168,261
Sales revenue, net		325,491
Selling, general and administrative expense ("SG&A")		96,987
ASU 2014-09 | Before Reclassification
Revenue Recognition
Receivables			273,168
Accrued expenses and other current liabilities			165,864
Sales revenue, net		327,986
Selling, general and administrative expense ("SG&A")		99,482
ASU 2014-09 | Reclassification
Revenue Recognition
Receivables			2,397
Accrued expenses and other current liabilities			$ 2,397
Sales revenue, net		(2,495)
Selling, general and administrative expense ("SG&A")		$ (2,495)

Discontinued Operation (Details

Discontinued Operation (Details) - USD ($) $ in Thousands	Dec. 20, 2017	May 31, 2018	May 31, 2017
Results of operations associated with discontinued operations
Sales revenue, net			$ 31,619
Cost of goods sold			9,236
Gross profit			22,383
Selling, general and administrative expense ("SG&A")			24,200
Asset impairment charges			32,000
Operating income (loss)			(33,817)
Gain (loss) on sale before income tax		$ (484)
Interest expense			(114)
Loss before income tax		(484)	(33,931)
Income tax benefit (expense) discontinued operations		103	12,491
Income (loss) from discontinued operations		$ (381)	(21,440)
Goodwill impairment charges			26,000
Intangible impairment charges			6,000
Asset impairment charges net of tax			$ 19,600
Discontinued Operations | Healthy Directions LLC
Discontinued Operations
Purchase price from sale	$ 46,000
Supplemental payment with a target value	$ 25,000
Threshold period for providing transition services	18 months

Supplemental Balance Sheet In37

Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	Feb. 28, 2018
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 242,590	$ 238,705
Less accumulated depreciation	(118,971)	(115,202)
Property and equipment, net	123,619	123,503
Land
PROPERTY AND EQUIPMENT
Property and equipment, gross	12,800	12,800
Building and improvements
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 107,176	106,870
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	$ 80,581	79,657
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	$ 33,761	33,466
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	$ 8,272	$ 5,912

Supplemental Balance Sheet In38

Supplemental Balance Sheet Information - Liabilities (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued compensation, benefits and payroll taxes	$ 18,490	$ 37,666
Accrued sales discounts and allowances	27,860	28,311
Accrued warranty returns	23,169	24,842
Accrued advertising	28,077	25,324
Accrued legal fees and settlements	996	17,243
Other	32,582	34,875
Total accrued expenses and other current liabilities	131,174	168,261
OTHER LIABILITIES, NON CURRENT
Deferred compensation liability	5,650	6,736
Liability for uncertain tax positions	3,008	3,349
Other liabilities	5,956	4,606
Total other liabilities, noncurrent	$ 14,614	$ 14,691

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017	Feb. 28, 2018
Goodwill and intangible assets
Non-cash intangible asset impairment charges		$ 4,000
Changes in Goodwill
Cumulative Goodwill Impairments	$ (46,490)		$ (46,490)
Goodwill Net Book Value	602,320		602,320
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Accumulated Amortization	(171,474)		(167,354)
Goodwill and intangible assets
Gross Carrying Amount	1,119,199		1,119,079
Net Book Value	901,235		905,235
Housewares
Changes in Goodwill
Goodwill Gross Carrying Amount	282,056		282,056
Goodwill Net Book Value	282,056		282,056
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Accumulated Amortization	(18,007)		(17,530)
Goodwill and intangible assets
Gross Carrying Amount	457,188		457,084
Net Book Value	439,181		439,554
Housewares | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	40,932		40,828
Intangible assets - finite-lived, Accumulated Amortization	(18,007)		(17,530)
Intangible assets - finite-lived, Net Book Value	22,925		23,298
Housewares | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, Gross Carrying Amount	134,200		134,200
Health and Home
Changes in Goodwill
Goodwill Gross Carrying Amount	284,913		284,913
Goodwill Net Book Value	284,913		284,913
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Accumulated Amortization	(95,132)		(92,428)
Goodwill and intangible assets
Gross Carrying Amount	479,215		479,199
Net Book Value	384,083		386,771
Health and Home | Licenses
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	15,300		15,300
Intangible assets - finite-lived, Accumulated Amortization	(15,300)		(15,300)
Health and Home | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	117,602		117,586
Intangible assets - finite-lived, Accumulated Amortization	(79,832)		(77,128)
Intangible assets - finite-lived, Net Book Value	37,770		40,458
Health and Home | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, Gross Carrying Amount	54,000		54,000
Health and Home | Licenses
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, Gross Carrying Amount	7,400		7,400
Beauty
Goodwill and intangible assets
Non-cash intangible asset impairment charges	4,000
Non-cash intangible asset impairment, net of tax	3,600
Changes in Goodwill
Goodwill Gross Carrying Amount	81,841		81,841
Cumulative Goodwill Impairments	(46,490)		(46,490)
Goodwill Net Book Value	35,351		35,351
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Accumulated Amortization	(58,335)		(57,396)
Goodwill and intangible assets
Gross Carrying Amount	182,796		182,796
Net Book Value	77,971		78,910
Beauty | Trademarks
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	150		150
Intangible assets - finite-lived, Accumulated Amortization	(98)		(97)
Intangible assets - finite-lived, Net Book Value	52		53
Beauty | Licenses
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	13,696		13,696
Intangible assets - finite-lived, Accumulated Amortization	(12,245)		(12,166)
Intangible assets - finite-lived, Net Book Value	1,451		1,530
Beauty | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, Gross Carrying Amount	46,402		46,402
Intangible assets - finite-lived, Accumulated Amortization	(45,992)		(45,133)
Intangible assets - finite-lived, Net Book Value	410		1,269
Beauty | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, Gross Carrying Amount	30,407		30,407
Beauty | Licenses
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, Gross Carrying Amount	$ 10,300		$ 10,300

Goodwill and Intangible Asset40

Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Goodwill and Intangible Assets
Aggregate Amortization Expense	$ 4,120	$ 4,847
Estimated Amortization Expense
Fiscal 2,019	14,039
Fiscal 2,020	12,428
Fiscal 2,021	10,383
Fiscal 2,022	4,078
Fiscal 2,023	4,050
Fiscal 2,024	$ 3,678

Share-Based Compensation Plan41

Share-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
SHARE-BASED PAYMENT EXPENSE
Less income tax benefits	$ (270)	$ (490)
Share-based payment expense, net of income tax benefits	$ 6,106	$ 2,708
Continuing operations earnings per share impact of share-based compensation expense:
Basic (in dollars per share)	$ 0.23	$ 0.10
Diluted (in dollars per share)	$ 0.23	$ 0.10
Directors
Share-based compensation plans
Number of awards granted (in shares)	1,379
Grant date fair value	$ 100
Grant date fair value (in dollars per share)	$ 89.10
Employees
Share-based compensation plans
Exercise of stock options (in shares)	43,767
Restricted Stock Units (RSU)
Share-based compensation plans
Number of awards granted (in shares)	70,141
Grant date fair value (in dollars per share)	$ 86.23
Restricted Stock Units (RSU) | Employees
Share-based compensation plans
Number of awards granted (in shares)	36,411
Grant date fair value	$ 3,200
Grant date fair value (in dollars per share)	$ 89.09
Performance Restricted Stock Units (PSU)
Share-based compensation plans
Number of awards granted (in shares)	76,064
Grant date fair value (in dollars per share)	$ 86.24
Performance Restricted Stock Units (PSU) | Employees
Share-based compensation plans
Number of awards granted (in shares)	99,038
Grant date fair value	$ 9,000
Grant date fair value (in dollars per share)	$ 90.80
SG&A
SHARE-BASED PAYMENT EXPENSE
Share-based compensation expense	$ 6,376	$ 3,198
SG&A | Directors
SHARE-BASED PAYMENT EXPENSE
Share-based compensation expense	175	200
SG&A | Employee stock options
SHARE-BASED PAYMENT EXPENSE
Share-based compensation expense	308	539
SG&A | Performance-based and other stock awards
SHARE-BASED PAYMENT EXPENSE
Share-based compensation expense	5,571	$ 2,459
SG&A | Employee stock purchase plan
SHARE-BASED PAYMENT EXPENSE
Share-based compensation expense	$ 322

Repurchase of Helen of Troy C42

Repurchase of Helen of Troy Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	May 10, 2017	May 31, 2018	May 31, 2017
Repurchase of common stock
Amount of shares authorized for purchase	$ 400,000
Period for stock repurchase	3 years
Remaining share repurchase amount - prior program	$ 82,000
Remaining share repurchase amount		$ 286,500
Common stock repurchased and retired (in shares)		49,595,000	70,707,000
Common stock repurchased and retired, total cost or aggregate market value		$ 4,481	$ 6,788
Average price per share (in dollars per share)		$ 90.36	$ 95.99
Open market or tender offer
Repurchase of common stock
Common stock repurchased and retired (in shares)		407,025
Common stock repurchased and retired, total cost or aggregate market value		$ 37,067
Average price per share (in dollars per share)		$ 91.07

Restructuring Plan (Details)

Restructuring Plan (Details) - USD ($) $ in Thousands	3 Months Ended	8 Months Ended	20 Months Ended
	May 31, 2018	May 31, 2018	May 31, 2019
Restructuring Plan
Restructuring charges	$ 1,725
Project Refuel
Restructuring Plan
Restructuring charges	1,700	$ 3,500
Cash restructuring payments	1,100
Restructuring liability	1,300	$ 1,300
Minimum | Project Refuel
Restructuring Plan
Targeted annualized profit improvement	8,000
Maximum | Project Refuel
Restructuring Plan
Targeted annualized profit improvement	$ 10,000
Forecast | Minimum | Project Refuel
Restructuring Plan
Restructuring charges			$ 4,000
Forecast | Maximum | Project Refuel
Restructuring Plan
Restructuring charges			$ 5,500

Commitments and Contingencies (

Commitments and Contingencies (Details) - Thermometer Patent Litigation $ in Millions	May 31, 2018USD ($)	Mar. 31, 2018item	Jun. 30, 2016USD ($)	Jan. 31, 2016USD ($)item
Litigation
Commitments and contingencies
Number of models | item				2
Charge including legal fees and other related expenses				$ 17.8
Amount of additional pre-judgment compensation			$ 1.5
Number of verdicts of infringement of patents reversed | item		1
Settled Litigation
Commitments and contingencies
Settlement payment	$ 15

Long-Term Debt - Schedule (Deta

Long-Term Debt - Schedule (Details) $ in Thousands	3 Months Ended
	May 31, 2018USD ($)item	May 31, 2017USD ($)	Feb. 28, 2018USD ($)
Long-term debt
Total long-term debt	$ 300,123		$ 289,869
Less current maturities of long-term debt	(1,884)		(1,884)
Long-term debt, excluding current maturities	298,239		287,985
Principal payment made	$ 1,900	$ 5,700
Minimum | Credit Agreement
Long-term debt
Interest rate range during each year (as a percent)	2.80%	2.30%
Maximum | Credit Agreement
Long-term debt
Interest rate range during each year (as a percent)	5.00%	4.50%
MBFC Loan
Long-term debt
Face amount	$ 37,600
Total long-term debt	22,323		24,219
Outstanding principal payable on March 1, 2019	1,900
Outstanding principal payable on March 1, 2020	1,900
Outstanding principal payable on March 1, 2021	1,900
Outstanding principal payable on March 1, 2022	1,900
Outstanding principal payable on March 1, 2023	1,900
Outstanding principal payable on March 1, 2023	$ 14,800
MBFC Loan | Base Rate
Long-term debt
Margin (as a percent)	1.00%
MBFC Loan | LIBOR
Long-term debt
Margin (as a percent)	2.00%
Credit Agreement
Long-term debt
Maximum revolving commitment	$ 1,000,000
Number of alternative methods under which interest on borrowings accrue | item	2
Amount available for borrowings	$ 711,600
Maximum amount of additional debt that can be incurred under debt covenants	547,200
Maximum amount of additional debt that can be incurred in event a qualified acquisition is consummated	731,100
Total long-term debt	277,800		$ 265,650
Principal amount hedged	100,000
Revolving loan | Credit Agreement
Long-term debt
Amount outstanding	281,300
Letter of credit | Credit Agreement
Long-term debt
Amount outstanding	$ 7,100

Fair Value (Details)

Fair Value (Details) - Recurring - Fair Values - Significant Other Observable Market Inputs (Level 2) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2018
Assets:
Total assets	$ 6,924	$ 4,230
Liabilities:
Total liabilities	300,484	292,475
Interest rate swap
Assets:
Derivative assets	2,420	2,481
Foreign currency contracts
Assets:
Derivative assets	2,709	642
Liabilities:
Derivative liabilities	361	2,606
Floating rate debt
Liabilities:
Long-term debt	300,123	289,869
Money market accounts
Assets:
Cash and cash equivalents	$ 1,795	$ 1,107

Financial Instruments and Ris47

Financial Instruments and Risk Management (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Foreign Currency Risk and Currency Exchange Uncertainties
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps, in income tax expense	$ 300	$ 100
Currency Exchange Uncertainties
Sales revenue, net	354,679	325,491
Operating income (loss)	43,327	30,583
SG&A
Foreign Currency Risk and Currency Exchange Uncertainties
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps	$ (1,600)	$ 600
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies
Foreign Currency Risk and Currency Exchange Uncertainties
Concentration risk percentage	14.00%	13.00%

Financial Instruments and Ris48

Financial Instruments and Risk Management - Interest Rate Risk (Details) - Credit Agreement $ in Millions	May 31, 2018USD ($)
Financial instruments and risk management
Fixed rate debt	$ 100
Floating rate debt	$ 281.3

Financial Instruments and Ris49

Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands	May 31, 2018GBP (£)	May 31, 2018EUR (€)	May 31, 2018USD ($)	Feb. 28, 2018GBP (£)	Feb. 28, 2018EUR (€)	Feb. 28, 2018USD ($)
Fair values of derivative instruments in the consolidated balance sheet
Long-term debt			$ 300,123			$ 289,869
Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			2,865			922
Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			2,264			2,201
Accrued Expenses and Other Current Liability
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities						1,833
Other Liabilities, Non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities			361			773
Designated as hedging instruments | Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			2,865			922
Designated as hedging instruments | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			2,253			2,201
Designated as hedging instruments | Accrued Expenses and Other Current Liability
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities						1,833
Designated as hedging instruments | Foreign currency contracts | Sell | Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount | €		€ 29,500			€ 38,000
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			1,181
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			128			102
Designated as hedging instruments | Foreign currency contracts | Sell | Euros | Accrued Expenses and Other Current Liability
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities						1,320
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			21,250			27,750
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			579			378
Designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			18			101
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount | £	£ 17,500			£ 19,500
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			591
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			102			56
Designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued Expenses and Other Current Liability
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities						513
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			20,000			20,000
Designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			99			5
Designated as hedging instruments | Interest rate swaps
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			100,000			100,000
Designated as hedging instruments | Interest rate swaps | Prepaid Expenses and Other Current Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			415			539
Designated as hedging instruments | Interest rate swaps | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			2,005			1,942
Not designated under hedge accounting | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			11
Not designated under hedge accounting | Other Liabilities, Non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities			361			773
Not designated under hedge accounting | Cross currency debt swaps | Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			5,280			5,280
Not designated under hedge accounting | Cross currency debt swaps | Euros | Other Assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets			11
Not designated under hedge accounting | Cross currency debt swaps | Euros | Other Liabilities, Non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities						208
Not designated under hedge accounting | Cross currency debt swaps | Pounds
Fair values of derivative instruments in the consolidated balance sheet
Notional Amount			6,395			6,395
Not designated under hedge accounting | Cross currency debt swaps | Pounds | Other Liabilities, Non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities			$ 361			$ 565

Financial Instruments and Ris50

Financial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Pre-tax effect of derivative instruments
Gain/ (Loss) Recognized in OCI (effective portion)	$ 4,515	$ (2,245)
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	687	302
Gain/ (Loss) Recognized as Income	572	(549)
Foreign currency contracts | Cash flow hedges
Pre-tax effect of derivative instruments
Gain/ (Loss) Recognized in OCI (effective portion)	4,576	(2,245)
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income	$ 2,900
Net gains currently reported in accumulated other comprehensive income, to be reclassified into income, period of time to transfer	12 months
Foreign currency contracts | Cash flow hedges | SG&A
Pre-tax effect of derivative instruments
Gain/ (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	$ 687	302
Interest rate swaps | Cash flow hedges
Pre-tax effect of derivative instruments
Gain/ (Loss) Recognized in OCI (effective portion)	(61)
Gain/ (Loss) Recognized as Income	75
Cross currency debt swaps
Pre-tax effect of derivative instruments
Gain/ (Loss) Recognized as Income	74
Cross currency debt swaps | SG&A
Pre-tax effect of derivative instruments
Gain/ (Loss) Recognized as Income	$ 423	$ (549)

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017	Feb. 28, 2018
Segment information
Sales revenue, net	$ 354,679	$ 325,491
Asset impairment charges		4,000
Restructuring charges	1,725
Operating income	43,327	30,583
Identifiable assets	1,602,974		$ 1,623,717
Capital and intangible asset expenditures	4,182	4,082
Depreciation and amortization	7,982	8,341
Housewares
Segment information
Sales revenue, net	117,303	98,665
Restructuring charges	760
Operating income	22,183	17,936
Capital and intangible asset expenditures	1,654	2,491
Depreciation and amortization	1,484	1,427
Health and Home
Segment information
Sales revenue, net	163,431	148,289
Restructuring charges	358
Operating income	19,657	14,244
Capital and intangible asset expenditures	2,189	1,113
Depreciation and amortization	4,148	4,138
Beauty
Segment information
Sales revenue, net	73,945	78,537
Asset impairment charges		4,000
Restructuring charges	607
Operating income	1,487	(1,597)
Capital and intangible asset expenditures	339	478
Depreciation and amortization	$ 2,350	$ 2,776

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017	May 31, 2018	May 31, 2017
Income Taxes
Corporate income tax rate (as a percent)	21.00%	35.00%
Income tax expense (benefit) as a percent of income before income taxes			6.20%	1.10%
Tax benefit recorded related to the recognition of excess tax benefits from share-based compensation			$ 0.3	$ 2.5
Tax benefit from the lapse of the statute of limitations related to an uncertain tax position			$ 0.8	$ 0.6

Earnings per Share (Details)

Earnings per Share (Details) - shares shares in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Weighted average diluted securities
Weighted average shares outstanding, basic	26,521	27,076
Incremental shares from share-based payment arrangements	93	169
Weighted average shares outstanding, diluted	26,614	27,245
Employee stock options
Weighted average diluted securities
Dilutive securities (in shares)	138	253
Restricted stock (RSA)
Weighted average diluted securities
Dilutive securities (in shares)		79

Earnings per Share - Antidiluti

Earnings per Share - Antidilution (Details) - shares shares in Thousands	3 Months Ended
	May 31, 2018	May 31, 2017
Employee stock options
Antidilutive securities
Antidilutive securities (in shares)	511	378