Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | 22-May-14 | Sep. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'CSS INDUSTRIES INC | ' | ' |
Entity Central Index Key | '0000020629 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $208,456,141 |
Entity Common Stock, Shares Outstanding | ' | 9,294,838 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $68,200 | $87,108 |
Short-term investments | 29,862 | 0 |
Accounts receivable, net of allowances of $1,669 and $2,009 | 44,243 | 43,133 |
Inventories | 59,252 | 62,598 |
Deferred income taxes | 4,414 | 4,520 |
Other current assets | 13,472 | 13,073 |
Current assets of discontinued operations | 1 | 2 |
Total current assets | 219,444 | 210,434 |
NET PROPERTY, PLANT AND EQUIPMENT | 27,063 | 27,956 |
DEFERRED INCOME TAXES | 1,965 | 3,974 |
OTHER ASSETS | ' | ' |
Goodwill | 14,522 | 14,522 |
Intangible assets, net of accumulated amortization of $10,137 and $8,511 | 26,309 | 28,004 |
Other | 4,232 | 4,290 |
Total other assets | 45,063 | 46,816 |
Total assets | 293,535 | 289,180 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 10,664 | 13,200 |
Accrued income taxes | 217 | 1,214 |
Accrued payroll and other compensation | 8,754 | 8,393 |
Accrued customer programs | 4,820 | 4,015 |
Accrued other expenses | 6,947 | 7,911 |
Current liabilities of discontinued operations | 233 | 644 |
Total current liabilities | 31,635 | 35,377 |
LONG-TERM OBLIGATIONS | 4,684 | 4,825 |
COMMITMENTS AND CONTINGENCIES (Notes 11 and 13) | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, Class 2, $.01 par, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.10 par, 25,000,000 shares authorized, 14,703,084 shares issued at March 31, 2014 and 2013 | 1,470 | 1,470 |
Additional paid-in capital | 52,117 | 49,884 |
Retained earnings | 347,469 | 338,464 |
Accumulated other comprehensive income (loss), net of tax | -19 | -40 |
Common stock in treasury, 5,408,246 and 5,235,312 shares, at cost | -143,821 | -140,800 |
Total stockholders’ equity | 257,216 | 248,978 |
Total liabilities and stockholders’ equity | $293,535 | $289,180 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $1,669 | $2,009 |
Accumulated amortization on intangible assets | $10,137 | $8,511 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,703,084 | 14,703,084 |
Treasury stock, shares | 5,408,246 | 5,235,312 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $320,459 | $364,193 | $384,663 |
Costs and expenses | ' | ' | ' |
Cost of sales | 217,303 | 255,102 | 273,213 |
Selling, general and administrative expenses | 75,204 | 80,619 | 85,698 |
Disposition of product line, net | 0 | 5,798 | 0 |
Interest expense (income), net | 191 | -51 | 195 |
Other expense, net | 61 | 88 | 312 |
Total costs and expenses | 292,759 | 341,556 | 359,418 |
Income from continuing operations before income taxes | 27,700 | 22,637 | 25,245 |
Income tax expense | 9,136 | 7,049 | 9,016 |
Income from continuing operations | 18,564 | 15,588 | 16,229 |
Income (loss) from discontinued operations, net of tax | 205 | -361 | -559 |
Net income | 18,769 | 15,227 | 15,670 |
Basic: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.98 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | $2 | $1.59 | $1.61 |
Diluted: | ' | ' | ' |
Continuing operations (in dollars per share) | $1.97 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | $1.99 | $1.59 | $1.61 |
Weighted average shares outstanding | ' | ' | ' |
Basic (in shares) | 9,389 | 9,562 | 9,728 |
Diluted (in shares) | 9,436 | 9,568 | 9,732 |
Comprehensive income: | ' | ' | ' |
Net income | 18,769 | 15,227 | 15,670 |
Foreign currency translation adjustment | 0 | 0 | 1 |
Postretirement medical plan, net of tax | 21 | -15 | -19 |
Comprehensive income | $18,790 | $15,212 | $15,652 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $18,769 | $15,227 | $15,670 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 7,543 | 7,594 | 7,880 |
Reduction of goodwill from disposition of product line | 0 | 2,711 | 0 |
Gain on sale of discontinued operations | 0 | 0 | -5,849 |
Provision for accounts receivable allowances | 2,862 | 4,746 | 4,884 |
Deferred tax provision (benefit) | 2,511 | -4,257 | 5,552 |
(Gain) loss on sale or disposal of assets | -8 | 155 | -784 |
Share-based compensation expense | 1,843 | 1,783 | 1,683 |
Changes in assets and liabilities: | ' | ' | ' |
(Increase) in accounts receivable | -3,972 | -2,952 | -7,499 |
Decrease (increase) in inventories | 3,346 | 8,106 | -2,578 |
(Increase) decrease in other assets | -1,282 | -704 | 757 |
(Decrease) in accounts payable | -2,536 | -4,073 | -7,541 |
(Decrease) increase in accrued income taxes | -726 | 1,290 | 47 |
(Decrease) increase in accrued expenses and long-term obligations | -110 | 1,802 | 1,188 |
Net cash provided by operating activities-continuing operations | 28,240 | 31,428 | 13,410 |
Net cash (used for) provided by operating activities-discontinued operations | -410 | -1,565 | 12,386 |
Net cash provided by operating activities | 27,830 | 29,863 | 25,796 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of held-to-maturity investment securities | -29,862 | 0 | 0 |
Purchase of property, plant and equipment | -5,024 | -4,494 | -3,532 |
Proceeds from disposition of product line, net | 0 | 1,758 | 0 |
Proceeds from sale of assets | 8 | 17 | 57 |
Net cash used for investing activities-continuing operations | -34,878 | -2,719 | -3,475 |
Net cash provided by investing activities-discontinued operations | 500 | 4,500 | 2,509 |
Net cash (used for) provided by investing activities | -34,378 | 1,781 | -966 |
Cash flows from financing activities: | ' | ' | ' |
Payments on long-term debt obligations | 0 | 0 | -66 |
Borrowings on notes payable | 0 | 0 | 74,270 |
Payments on notes payable | 0 | 0 | -74,270 |
Dividends paid | -5,637 | -5,731 | -5,837 |
Purchase of treasury stock | -6,634 | -4,864 | -1,648 |
Proceeds from exercise of stock options | 49 | 192 | 365 |
Payments for tax withholding on net restricted stock settlements | -563 | -262 | -60 |
Tax effect of stock awards | 425 | -6 | -26 |
Net cash used for financing activities | -12,360 | -10,671 | -7,272 |
Net (decrease) increase in cash and cash equivalents | -18,908 | 20,973 | 17,558 |
Cash and cash equivalents at beginning of period | 87,108 | 66,135 | 48,577 |
Cash and cash equivalents at end of period | $68,200 | $87,108 | $66,135 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Mar. 31, 2011 | $235,659 | $1,470 | $51,311 | $320,024 | ($7) | ($137,139) |
Beginning Balance, shares at Mar. 31, 2011 | ' | 14,703,084 | ' | ' | ' | 4,969,679 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 1,683 | ' | 1,683 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 365 | ' | ' | -562 | ' | 927 |
Issuance of common stock upon exercise of stock options, shares | 42,577 | ' | ' | ' | ' | 26,478 |
Issuance of common stock under equity plan | -60 | ' | ' | -374 | ' | 314 |
Issuance of common stock under equity plan, shares | ' | ' | ' | ' | ' | 7,495 |
Purchase of treasury shares | -1,648 | ' | ' | ' | ' | -1,648 |
Purchase of treasury shares, shares | -88,210 | ' | ' | ' | ' | -88,210 |
Tax effect of stock awards | -26 | ' | -26 | ' | ' | ' |
Reduction of deferred tax assets due to expired stock options | -2,585 | ' | -2,585 | ' | ' | ' |
Foreign currency translation adjustment | 1 | ' | ' | ' | 1 | ' |
Cash dividends ($.60 per common share) | -5,837 | ' | ' | -5,837 | ' | ' |
Postretirement medical plan, net of tax | -19 | ' | ' | ' | -19 | ' |
Net income | 15,670 | ' | ' | 15,670 | ' | ' |
Ending Balance at Mar. 31, 2012 | 243,203 | 1,470 | 50,383 | 328,921 | -25 | -137,546 |
Ending Balance, shares at Mar. 31, 2012 | ' | 14,703,084 | ' | ' | ' | 5,023,916 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Adjustment (see Note 7) | 0 | ' | -1,727 | 1,727 | ' | ' |
Share-based compensation expense | 1,783 | ' | 1,783 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 192 | ' | ' | -193 | ' | 385 |
Issuance of common stock upon exercise of stock options, shares | 11,000 | ' | ' | ' | ' | 11,000 |
Issuance of common stock under equity plan | -262 | ' | ' | -1,487 | ' | 1,225 |
Issuance of common stock under equity plan, shares | ' | ' | ' | ' | ' | 28,784 |
Purchase of treasury shares | -4,864 | ' | ' | ' | ' | -4,864 |
Purchase of treasury shares, shares | -251,180 | ' | ' | ' | ' | -251,180 |
Tax effect of stock awards | -6 | ' | -6 | ' | ' | ' |
Reduction of deferred tax assets due to expired stock options | -549 | ' | -549 | ' | ' | ' |
Foreign currency translation adjustment | 0 | ' | ' | ' | ' | ' |
Cash dividends ($.60 per common share) | -5,731 | ' | ' | -5,731 | ' | ' |
Postretirement medical plan, net of tax | -15 | ' | ' | ' | -15 | ' |
Net income | 15,227 | ' | ' | 15,227 | ' | ' |
Ending Balance at Mar. 31, 2013 | 248,978 | 1,470 | 49,884 | 338,464 | -40 | -140,800 |
Ending Balance, shares at Mar. 31, 2013 | ' | 14,703,084 | ' | ' | ' | 5,235,312 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 1,843 | ' | 1,843 | ' | ' | ' |
Issuance of common stock upon exercise of stock options | 49 | ' | ' | -2,044 | ' | 2,093 |
Issuance of common stock upon exercise of stock options, shares | 182,378 | ' | ' | ' | ' | 59,793 |
Issuance of common stock under equity plan | -563 | ' | ' | -2,083 | ' | 1,520 |
Issuance of common stock under equity plan, shares | ' | ' | ' | ' | ' | 39,928 |
Purchase of treasury shares | -6,634 | ' | ' | ' | ' | -6,634 |
Purchase of treasury shares, shares | -272,655 | ' | ' | ' | ' | -272,655 |
Tax effect of stock awards | 425 | ' | 425 | ' | ' | ' |
Reduction of deferred tax assets due to expired stock options | -35 | ' | -35 | ' | ' | ' |
Foreign currency translation adjustment | 0 | ' | ' | ' | ' | ' |
Cash dividends ($.60 per common share) | -5,637 | ' | ' | -5,637 | ' | ' |
Postretirement medical plan, net of tax | 21 | ' | ' | ' | 21 | ' |
Net income | 18,769 | ' | ' | 18,769 | ' | ' |
Ending Balance at Mar. 31, 2014 | $257,216 | $1,470 | $52,117 | $347,469 | ($19) | ($143,821) |
Ending Balance, shares at Mar. 31, 2014 | ' | 14,703,084 | ' | ' | ' | 5,408,246 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends per common share (in dollars per share) | $0.60 | $0.60 | $0.60 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Basis of Presentation | ||||||||||||
CSS Industries, Inc. (collectively with its subsidiaries, “CSS” or the “Company”) has prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. | ||||||||||||
On September 9, 2011, the Company and its Cleo Inc (“Cleo”) subsidiary sold the Christmas gift wrap portion of Cleo’s business and certain assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets to Impact Innovations, Inc. (“Impact”). Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Various prior period amounts contained in these consolidated financial statements include assets, liabilities and cash flows related to the Christmas gift wrap business which are presented as current assets and liabilities of discontinued operations. The results of operations for the years ended March 31, 2014, 2013 and 2012 reflect the historical operations of the Christmas gift wrap business as discontinued operations. The discussions in this annual report are presented on the basis of continuing operations, unless otherwise noted. | ||||||||||||
The Company’s fiscal year ends on March 31. References to a particular year refer to the fiscal year ending in March of that year. For example fiscal 2014 refers to the fiscal year ended March 31, 2014. | ||||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of CSS Industries, Inc. and all of its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. | ||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||
Translation adjustments are charged or credited to a separate component of stockholders’ equity. Gains and losses on foreign currency transactions are not material and are included in other expense, net in the consolidated statements of operations. | ||||||||||||
Nature of Business | ||||||||||||
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal products include decorative ribbons and bows, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other items that commemorate life’s celebrations. CSS’ product breadth provides its retail customers the opportunity to use a single vendor for much of their seasonal product requirements. A substantial portion of CSS’ products are manufactured, packaged and/or warehoused in ten facilities located in the United States, with the remainder purchased primarily from manufacturers in Asia and Mexico. The Company’s products are sold to its customers by national and regional account sales managers, sales representatives, product specialists and by a network of independent manufacturers’ representatives. CSS maintains a showroom in Hong Kong as well as a purchasing office to administer Asian sourcing opportunities. | ||||||||||||
The Company’s principal operating subsidiaries include Berwick Offray LLC (“Berwick Offray”), Paper Magic Group, Inc. (“Paper Magic”) and C.R. Gibson, LLC (“C.R. Gibson”). On December 3, 2013, the Company combined the operations of its C.R. Gibson business with the operations of its Berwick Offray and Paper Magic businesses, which were previously combined on March 27, 2012. These businesses were combined in order to drive sales growth by providing stronger management oversight and by reallocating sourcing, sales and marketing resources in a more strategic manner. | ||||||||||||
On September 5, 2012, the Company and its Paper Magic subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with Paper Magic’s Halloween business, to Gemmy Industries (HK) Limited (“Gemmy”). Paper Magic’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The sale price of $2,281,000 was paid to Paper Magic at closing. The Company incurred $523,000 of transaction costs (included within disposition of a product line further discussed in Note 2 to the consolidated financial statements), yielding net proceeds of $1,758,000. | ||||||||||||
Approximately 95 of its 1,200 employees (increasing to approximately 1,500 as seasonal employees are added) are represented by a labor union. The collective bargaining agreement with the labor union representing the production and maintenance employees in Hagerstown, Maryland remains in effect until December 31, 2014. Historically, we have been successful in renegotiating expiring agreements without any disruption of operating activities. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Judgments and assessments of uncertainties are required in applying the Company’s accounting policies in many areas. Such estimates pertain to revenue recognition, the valuation of inventory and accounts receivable, the assessment of the recoverability of goodwill and other intangible and long-lived assets, income tax accounting, the valuation of share-based awards and resolution of litigation and other proceedings. Actual results could differ from these estimates. | ||||||||||||
Short-Term Investments | ||||||||||||
The Company categorizes and accounts for its short-term investment holdings as held-to-maturity securities. Held-to-maturity securities are recorded at amortized cost which approximates fair market value at March 31, 2014. This categorization is based upon the Company's positive intent and ability to hold these securities until maturity. Short-term investments at March 31, 2014 consist of commercial paper with an amortized cost of $29,862,000 and mature in fiscal 2015. There were no short-term investments at March 31, 2013. | ||||||||||||
Accounts Receivable | ||||||||||||
The Company offers seasonal dating programs related to certain seasonal product offerings pursuant to which customers that qualify for such programs are offered extended payment terms. With some exceptions, customers do not have the right to return product except for reasons the Company believes are typical of our industry, including damaged goods, shipping errors or similar occurrences. The Company generally is not required to repurchase products from its customers, nor does the Company have any regular practice of doing so. In addition, the Company mitigates its exposure to bad debts by evaluating the creditworthiness of its major customers, utilizing established credit limits, and purchasing credit insurance when appropriate and available on terms satisfactory to the Company. Bad debt and returns and allowances reserves are recorded as an offset to accounts receivable while reserves for customer programs are recorded as accrued liabilities. The Company evaluates accounts receivable related reserves and accruals monthly by specifically reviewing customers’ creditworthiness, historical recovery percentages and outstanding customer deductions and program arrangements. Customer account balances are charged off against the allowance reserve after reasonable means of collection have been exhausted and the potential for recovery is considered unlikely. | ||||||||||||
Inventories | ||||||||||||
The Company records inventory when title is transferred, which occurs upon receipt or prior to receipt dependent on supplier shipping terms. The Company adjusts unsaleable and slow-moving inventory to its estimated net realizable value. Substantially all of the Company’s inventories are stated at the lower of first-in, first-out (FIFO) cost or market. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost or market, which was $465,000 and $641,000 at March 31, 2014 and 2013, respectively. Had all inventories been valued at the lower of FIFO cost or market, inventories would have been greater by $820,000 and $851,000 at March 31, 2014 and 2013, respectively. Inventories consisted of the following (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Raw material | $ | 9,366 | $ | 8,116 | ||||||||
Work-in-process | 14,418 | 14,687 | ||||||||||
Finished goods | 35,468 | 39,795 | ||||||||||
$ | 59,252 | $ | 62,598 | |||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost and include the following (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Land | $ | 2,508 | $ | 2,508 | ||||||||
Buildings, leasehold interests and improvements | 37,183 | 37,007 | ||||||||||
Machinery, equipment and other | 93,928 | 101,916 | ||||||||||
133,619 | 141,431 | |||||||||||
Less – Accumulated depreciation and amortization | (106,556 | ) | (113,475 | ) | ||||||||
Net property, plant and equipment | $ | 27,063 | $ | 27,956 | ||||||||
Depreciation is provided generally on the straight-line method and is based on estimated useful lives or terms of leases as follows: | ||||||||||||
Buildings, leasehold interests and improvements | Lease term to 45 years | |||||||||||
Machinery, equipment and other | 3 to 15 years | |||||||||||
When property is retired or otherwise disposed of, the related cost and accumulated depreciation and amortization are eliminated from the consolidated balance sheet. Any gain or loss from the disposition of property, plant and equipment is included in other expense, net. Maintenance and repairs are expensed as incurred while improvements are capitalized and depreciated over their estimated useful lives. | ||||||||||||
The Company maintained no assets under capital leases as of March 31, 2014 and 2013. Depreciation expense was $5,917,000, $5,948,000 and $6,197,000 for the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||||
The Company maintains various operating leases and records rent expense on a straight-line basis over the lease term. See Note 11 for further discussion. | ||||||||||||
Impairment of Long-Lived Assets including Goodwill, Other Intangible Assets and Property, Plant and Equipment | ||||||||||||
When a company is acquired, the difference between the fair value of its net assets, including intangibles, and the purchase price is recorded as goodwill. Goodwill is subject to an assessment for impairment which must be performed at least annually or more frequently if events or circumstances indicate that goodwill might be impaired. The Financial Accounting Standards Board (“FASB”) issued updated authoritative guidance in September 2011 to amend previous guidance on the annual and interim testing of goodwill for impairment. The guidance became effective for the Company at the beginning of its 2013 fiscal year. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two step impairment test would still be required. The first step of the test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. The Company uses a dual approach to determine the fair value of its reporting units including both a market approach and an income approach. The market approach computes fair value using a multiple of earnings before interest, income taxes, depreciation and amortization which was developed considering both the multiples of recent transactions as well as trading multiples of consumer products companies. The income approach is based on the present value of discounted cash flows and a terminal value projected for each reporting unit. The income approach requires significant judgments including the Company’s projected net cash flows, the weighted average cost of capital (“WACC”) used to discount the cash flows and terminal value assumptions. The projected net cash flows are derived using the most recent available estimate for each reporting unit. The WACC rate is based on an average of the capital structure, cost of capital and inherent business risk profiles of the Company and peer consumer products companies. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. | ||||||||||||
The Company then corroborates the reasonableness of the total fair value of the reporting units by reconciling the aggregate fair values of the reporting units to the Company’s total market capitalization adjusted to include an estimated control premium. The estimated control premium is derived from reviewing observable transactions involving the purchase of controlling interests in comparable companies. The market capitalization is calculated using the relevant shares outstanding and an average closing stock price which considers volatility around the test date. The exercise of reconciling the market capitalization to the computed fair value further supports the Company’s conclusion on the fair value. If the carrying amount of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the goodwill to the implied fair value of the goodwill. If the implied fair value of the goodwill is less than the carrying amount of the goodwill, an impairment loss would be reported. The adoption of this updated authoritative guidance had no impact on the Company’s Consolidated Financial Statements. The Company performs its required annual assessment as of the fiscal year end. Changes to our judgments regarding assumptions and estimates could result in a significantly different estimate of the fair market value of the reporting units, which could result in an impairment of goodwill. | ||||||||||||
Other indefinite lived intangible assets consist primarily of tradenames which are also required to be tested annually for impairment. In July 2012, the FASB issued amended guidance that gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. The amended guidance became effective for the Company at the beginning of its 2014 fiscal year. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. If the result of the qualitative analysis indicates it is more likely than not that an indefinite-lived intangible asset is impaired, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. This approach involves first estimating reasonable royalty rates for each trademark then applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine the fair value. The royalty rate is estimated using both a market and income approach. The market approach relies on the existence of identifiable transactions in the marketplace involving the licensing of tradenames similar to those owned by the Company. The income approach uses a projected pretax profitability rate relevant to the licensed income stream. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each tradename. This fair value is then compared with the carrying value of each tradename. | ||||||||||||
Long-lived assets (including property, plant and equipment), except for goodwill and indefinite lived intangible assets, are reviewed for impairment when events or circumstances indicate the carrying value of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to future net cash flows estimated by the Company to be generated by such assets. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are recorded at the lower of their carrying value or estimated net realizable value. | ||||||||||||
In the fourth quarter of fiscal 2014, the Company elected to perform the qualitative assessment of its goodwill as permitted by the updated accounting literature. As a result of the qualitative assessment performed, it was determined that it was not more likely than not that goodwill was impaired. Consequently, the more detailed two step impairment test was not performed. In connection with the Company's review of the recoverability of other intangibles as it prepared its financial statements for the fiscal year ended March 31, 2014, the fair value of other intangible assets was in excess of the carrying value and no impairment was recorded. In each of fiscal 2013 and 2012, the Company performed the required annual impairment test of the carrying amount of goodwill and indefinite lived intangible assets. The Company determined that no impairment of intangible assets existed in fiscal 2013 or in fiscal 2012. | ||||||||||||
In connection with the Company’s review of the recoverability of its long-lived assets as it prepared its financial statements for the fiscal years ended March 31, 2014, 2013 and 2012, no circumstances were identified that indicated the carrying value of the assets may not be recoverable. There was no impairment of assets recorded in fiscal 2014, 2013 or 2012. | ||||||||||||
In connection with the sale of the Halloween portion of Paper Magic’s business on September 5, 2012, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit. See Note 5 for further discussion. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
The Company uses certain derivative financial instruments as part of its risk management strategy to reduce foreign currency risk. Derivatives are not used for trading or speculative activities. | ||||||||||||
The Company recognizes all derivatives on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company generally designates the derivative as either (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). Changes in the fair value of a derivative that is designated as, and meets all the required criteria for, a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. Changes in the fair value of a derivative that is designated as, and meets all the required criteria for, a cash flow hedge are recorded in accumulated other comprehensive income and reclassified into earnings as the underlying hedged item affects earnings. The portion of the change in fair value of a derivative associated with hedge ineffectiveness or the component of a derivative instrument excluded from the assessment of hedge effectiveness is recorded currently in earnings. Also, changes in the entire fair value of a derivative that is not designated as a hedge are recorded immediately in earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes relating all derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the consolidated balance sheet or to specific firm commitments or forecasted transactions. | ||||||||||||
The Company also formally assesses, both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, the Company will discontinue hedge accounting prospectively. | ||||||||||||
The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations. Firmly committed transactions and the related receivables and payables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other expense, net as offsets of gains and losses resulting from the underlying hedged transactions. Realized gains of $123,000 were recorded in the fiscal year ended March 31, 2014 and realized losses of $40,000 were recorded in the fiscal year ended March 31, 2013. There were no open foreign currency forward exchange contracts as of March 31, 2014. As of March 31, 2013, the notional amount of open foreign currency forward contracts was $187,000 and the related unrealized loss was $17,000. | ||||||||||||
The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s consolidated balance sheet as of March 31, 2014 and 2013 (in thousands): | ||||||||||||
Fair Value of Derivative Instruments | ||||||||||||
Balance Sheet | Fair Value as of March 31, | |||||||||||
Location | 2014 | 2013 | ||||||||||
Foreign currency forward contracts | Other current liabilities | $ | — | $ | 17 | |||||||
Interest (Income) Expense | ||||||||||||
Interest income was $92,000, $342,000 and $223,000 in the years ended March 31, 2014, 2013 and 2012, respectively. Interest expense was $283,000, $291,000 and $418,000 in the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Income Taxes | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company recognizes the impact of an uncertain tax position, if it is more likely than not that such position will be sustained on audit, based solely on the technical merits of the position. See Note 9 for further discussion. | ||||||||||||
Revenue Recognition | ||||||||||||
Revenue is recognized from product sales when goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. The Company records estimated reductions to revenue for customer programs, which may include special pricing agreements for specific customers, volume incentives and other promotions. In limited cases, the Company may provide the right to return product as part of its customer programs with certain customers. The Company also records estimated reductions to revenue, based primarily on historical experience, for customer returns and chargebacks that may arise as a result of shipping errors, product damaged in transit or for other reasons that become known subsequent to recognizing the revenue. These provisions are recorded in the period that the related sale is recognized and are reflected as a reduction from gross sales. The related reserves are shown as a reduction of accounts receivable, except for reserves for customer programs which are shown as a current liability. If the amount of actual customer returns and chargebacks were to increase or decrease significantly from the estimated amount, revisions to the estimated allowance would be required. | ||||||||||||
Product Development Costs | ||||||||||||
Product development costs consist of purchases of outside artwork, printing plates, cylinders, catalogs and samples. For seasonal products, the Company typically begins to incur product development costs approximately 18 to 20 months before the applicable holiday event. Historically, these costs have been amortized monthly over the selling season, which is generally within two to four months of the holiday event. Development costs related to all occasion products are incurred within a period beginning six to nine months prior to the applicable sales period. Historically, these costs generally have been amortized over a six to twelve month selling period. The expense of certain product development costs that are related to the manufacturing process are recorded in cost of sales while the portion that relates to creative and selling efforts are recorded in selling, general and administrative expenses. | ||||||||||||
Product development costs capitalized as of March 31, 2014 and 2013 were $3,778,000 and $3,481,000, respectively, and are included in other current assets in the consolidated financial statements. Product development expense of $5,716,000, $6,785,000 and $8,222,000 was recognized in the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Shipping and Handling Costs | ||||||||||||
Shipping and handling costs are reported in cost of sales in the consolidated statements of operations. | ||||||||||||
Share-Based Compensation | ||||||||||||
Share-based compensation cost is estimated at the grant date based on a fair-value model. Calculating the fair value of share-based awards at the grant date requires considerable judgment, including estimating stock price volatility and expected option life. | ||||||||||||
The Company uses the Black-Scholes option valuation model and Monte Carlo simulation to value employee stock options and restricted stock units. The Company estimates stock price volatility based on historical volatility of its common stock. Estimated option life assumptions are also derived from historical data. Had the Company used alternative valuation methodologies and assumptions, compensation cost for share-based payments could be significantly different. The Company recognizes compensation cost over the stated vesting period consistent with the terms of the arrangement (i.e. either on a straight-line or graded-vesting basis). | ||||||||||||
Net Income (Loss) Per Common Share | ||||||||||||
The following table sets forth the computation of basic net income per common share and diluted net income per common share for the years ended March 31, 2014, 2013 and 2012. | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Numerator: | ||||||||||||
Income from continuing operations | $ | 18,564 | $ | 15,588 | $ | 16,229 | ||||||
Income (loss) from discontinued operations, net of tax | 205 | (361 | ) | (559 | ) | |||||||
Net income | $ | 18,769 | $ | 15,227 | $ | 15,670 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic income per common share | 9,389 | 9,562 | 9,728 | |||||||||
Effect of dilutive stock options | 47 | 6 | 4 | |||||||||
Adjusted weighted average shares outstanding for diluted income per common share | 9,436 | 9,568 | 9,732 | |||||||||
Basic: | ||||||||||||
Continuing operations | $ | 1.98 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 2 | $ | 1.59 | $ | 1.61 | ||||||
Diluted: | ||||||||||||
Continuing operations | $ | 1.97 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 1.99 | $ | 1.59 | $ | 1.61 | ||||||
Stock options on 151,000 shares, 182,000 shares, and 343,000 shares of common stock were not included in computing diluted net income per common share for the years ended March 31, 2014, 2013 and 2012, respectively, because their effects were antidilutive. | ||||||||||||
Statements of Cash Flows | ||||||||||||
For purposes of the consolidated statements of cash flows, the Company considers all holdings of highly liquid investments with a maturity at time of purchase of three months or less to be cash equivalents. | ||||||||||||
Supplemental Schedule of Cash Flow Information | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 289 | $ | 245 | $ | 383 | ||||||
Income taxes | $ | 9,112 | $ | 9,770 | $ | 2,665 | ||||||
Discontinued_Operations_and_Re
Discontinued Operations and Related Restructuring Charges | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Discontinued Operations and Related Restructuring Charges [Abstract] | ' | |||||||||||
DISCONTINUED OPERATIONS AND RELATED RESTRUCTURING CHARGES | ' | |||||||||||
DISCONTINUED OPERATIONS AND RELATED RESTRUCTURING CHARGES | ||||||||||||
On May 24, 2011, the Company approved a plan to close its Cleo manufacturing facility located in Memphis, Tennessee. The Company exited the Memphis facility in December 2011. During the fiscal year ended March 31, 2012, the Company incurred pre-tax expenses of $8,141,000 in connection with this plan, of which $7,435,000 was recorded in discontinued operations and $706,000 was recorded in continuing operations (see Note 3). The table below summarizes the major components of the charges incurred (in thousands): | ||||||||||||
Amount | Cash/Noncash | |||||||||||
Facility and staff costs | $ | 6,572 | Cash | |||||||||
Asset write-downs | 1,688 | Noncash | ||||||||||
Gain on sale of equipment | (825 | ) | Cash | |||||||||
Total | $ | 7,435 | ||||||||||
In connection with this restructuring plan which was completed by March 31, 2012, the Company recorded restructuring charges of $6,749,000 during fiscal 2012 primarily related to severance of 433 employees as well as facility costs. Additionally, there was a non-cash reduction of $177,000 related to severance that was less than originally estimated, which was included in restructuring expenses in fiscal 2012. The Company paid $884,000 in cash during fiscal 2012 relating to this plan which was expensed in fiscal 2011. Payments of $735,000, primarily for severance, were made in the year ended March 31, 2013. These payments represent the final restructuring payments. Additionally, there was a reduction in the restructuring accrual of $95,000 during the year ended March 31, 2013 for costs that were less than originally estimated. In fiscal 2012, the Company sold most of the remaining equipment located in Cleo’s Memphis, Tennessee manufacturing facility to a third party for $825,000. The Company received these proceeds during fiscal 2012. | ||||||||||||
Selected information relating to the aforementioned restructuring follows (in thousands): | ||||||||||||
Employee | Facility and | Total | ||||||||||
Termination | Other Costs | |||||||||||
Costs | ||||||||||||
Restructuring reserve as of March 31, 2012 | 750 | 80 | 830 | |||||||||
Cash paid – fiscal 2013 | (705 | ) | (30 | ) | (735 | ) | ||||||
Non-cash adjustments – fiscal 2013 | (45 | ) | (50 | ) | (95 | ) | ||||||
Restructuring reserve as of March 31, 2013 and 2014 | $ | — | $ | — | $ | — | ||||||
On September 9, 2011, the Company sold the Cleo Christmas gift wrap business and certain of its assets to Impact. Impact acquired the Christmas gift wrap portion of Cleo’s business and certain of its assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets. Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Cleo retained the right and obligation to fulfill all customer orders for Christmas gift wrap products for Christmas 2011. The purchase price was $7,500,000, of which $2,000,000 was paid in cash at closing. The remainder of the purchase price was paid through the issuance by Impact of an unsecured subordinated promissory note, which provided for quarterly payments of interest at 7% and principal payments as follows: $500,000 on March 1, 2012; $2,500,000 on March 1, 2013; and all remaining principal and interest on March 1, 2014. In the fourth quarter of fiscal 2013, the Company received a $2,000,000 principal payment in advance of the March 1, 2014 due date. All interest payments were paid timely and the final principal payment of $500,000 was received in March 2014. This transaction resulted in a pre-tax gain of $5,849,000 in fiscal 2012. | ||||||||||||
As a result of the sale of its Christmas gift wrap business, the Company has reported these operations, including the operating income of the business and all exit activities, as discontinued operations, as shown in the following table (in thousands): | ||||||||||||
Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating loss (A) | $ | (11 | ) | $ | (6 | ) | $ | (903 | ) | |||
Exit costs | 128 | 95 | (6,572 | ) | ||||||||
Exit costs – equipment sale | — | — | 825 | |||||||||
Gain on sale of business to Impact | — | — | 5,849 | |||||||||
Discontinued operations, before income taxes | 117 | 89 | (801 | ) | ||||||||
Income tax (benefit) expense (B) | (88 | ) | 450 | (242 | ) | |||||||
Discontinued operations, net of tax | $ | 205 | $ | (361 | ) | $ | (559 | ) | ||||
(A) | During the quarter ended June 30, 2011, the Company recorded a write down of inventory to net realizable value of $2,547,000, which was included in cost of sales of the discontinued operation. During the quarter ended September 30, 2011, the Company was able to sell certain of the inventory written down during the quarter ended June 30, 2011 for amounts greater than its adjusted carrying value resulting in higher gross profit of $563,000 of the discontinued operation for the quarter ended September 30, 2011. | |||||||||||
(B) | Fiscal 2014 includes a $356,000 current income tax benefit offset by $268,000 deferred income tax provision. Fiscal 2013 includes a $1,496,000 current income tax provision offset by a $1,046,000 deferred income tax benefit. Fiscal 2012 includes a $5,787,000 current income tax benefit offset by a $5,545,000 deferred income tax provision. | |||||||||||
The following table presents the carrying values of the major accounts of discontinued operations that are included in the March 31, 2014 and 2013 consolidated balance sheet (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, net | $ | 1 | $ | 2 | ||||||||
Total assets attributable to discontinued operations | $ | 1 | $ | 2 | ||||||||
Customer programs | $ | — | $ | 162 | ||||||||
Other current liabilities | 233 | 482 | ||||||||||
Total liabilities associated with discontinued operations | $ | 233 | $ | 644 | ||||||||
Business_Restructuring
Business Restructuring | 12 Months Ended |
Mar. 31, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
BUSINESS RESTRUCTURING | ' |
BUSINESS RESTRUCTURING | |
On March 27, 2012, the Company combined the operations of its Berwick Offray and Paper Magic subsidiaries in order to drive sales growth by providing stronger management oversight and by reallocating sales and marketing resources in a more strategic manner. Involuntary termination benefits offered to terminated employees were under the Company’s pre-existing severance program. The Company recorded approximately $706,000 in employee severance charges during fiscal 2012 and made payments of $523,000 and $116,000 in the years ended March 31, 2013 and 2012, respectively. The final restructuring payment of $13,000 was paid in April 2013. During the fiscal year ended March 31, 2013, there was a reduction in the restructuring accrual of $54,000 related to severance costs that were less than originally estimated as certain employees under the plan did not receive the expected amount of severance. The charges associated with this restructuring plan are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Disposition_of_Product_Line
Disposition of Product Line | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
DISPOSITION OF PRODUCT LINE | ' | |||||||||||||||
DISPOSITION OF PRODUCT LINE | ||||||||||||||||
On September 5, 2012, the Company and its Paper Magic subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with the Halloween portion of Paper Magic’s business, to Gemmy. Paper Magic’s remaining Halloween assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The sale price of $2,281,000 was paid to Paper Magic at closing. In connection with the sale, the Company recorded charges of $5,368,000 during the second quarter of fiscal 2013, consisting of severance of 49 employees of $1,282,000, facility closure costs of $1,375,000, professional fees and other costs of $1,341,000 ($523,000 were costs of the transaction) and a non-cash write-down of assets of $1,370,000. Additionally, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit. There was also a non-cash charge of $1,266,000 related to the write-down of inventory to net realizable value which was recorded in cost of sales. Net sales of the Halloween business were $1,366,000, $30,914,000 and $31,156,000 for the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
During fiscal 2013, the Company made payments related to the restructuring of $1,901,000 and there was a reduction in the restructuring reserve of $210,000, primarily due to sub-lease income that was greater than originally estimated. During the year ended March 31, 2014, the Company made payments related to the restructuring of $1,251,000 and reduced the restructuring reserve by $412,000 related to costs that were less than originally estimated. As of March 31, 2014, $117,000 of the remaining liability was classified in current liabilities and $107,000 was classified in long-term obligations in the accompanying condensed consolidated balance sheet and will be paid through December 2015. The Company is satisfying the liabilities through December 2015. | ||||||||||||||||
Selected information relating to the aforementioned restructuring follows (in thousands): | ||||||||||||||||
Employee | Facility | Professional | Total | |||||||||||||
Termination | Costs | Fees and | ||||||||||||||
Costs | Other Costs | |||||||||||||||
Initial restructuring reserve | $ | 1,282 | $ | 1,375 | $ | 1,341 | $ | 3,998 | ||||||||
Cash paid – fiscal 2013 | (734 | ) | (315 | ) | (852 | ) | (1,901 | ) | ||||||||
Non-cash adjustments – fiscal 2013 | 41 | (245 | ) | (6 | ) | (210 | ) | |||||||||
Restructuring reserve as of March 31, 2013 | 589 | 815 | 483 | 1,887 | ||||||||||||
Cash paid – fiscal 2014 | (516 | ) | (621 | ) | (114 | ) | (1,251 | ) | ||||||||
Non-cash adjustments – fiscal 2014 | (73 | ) | (82 | ) | (257 | ) | (412 | ) | ||||||||
Restructuring reserve as of March 31, 2014 | $ | — | $ | 112 | $ | 112 | $ | 224 | ||||||||
Goodwill_Other_Intangible_Asse
Goodwill, Other Intangible Assets and Long-Lived Assets | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
GOODWILL, OTHER INTANGIBLE ASSETS AND LONG-LIVED ASSETS | ' | |||||||||||||||
GOODWILL, OTHER INTANGIBLE ASSETS AND LONG-LIVED ASSETS | ||||||||||||||||
In connection with the sale of the Halloween portion of Paper Magic’s business on September 5, 2012, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit. As the sale of the Halloween portion of Paper Magic’s business was considered a triggering event, the Company performed an interim impairment test on the goodwill remaining in the Paper Magic reporting unit after the reduction in goodwill associated with the sale of the Halloween portion of Paper Magic’s business was recorded. The Company determined that no impairment existed for the remainder of the goodwill of the Paper Magic reporting unit. | ||||||||||||||||
The following table shows changes in goodwill for the fiscal year ended March 31, 2013. There were no changes to the goodwill balance during fiscal year 2014 (in thousands): | ||||||||||||||||
Balance as of March 31, 2012 | $ | 17,233 | ||||||||||||||
Reduction in goodwill | (2,711 | ) | ||||||||||||||
Balance as of March 31, 2013 and 2014 | $ | 14,522 | ||||||||||||||
The gross carrying amount and accumulated amortization of other intangible assets as of March 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Tradenames and trademarks | $ | 12,793 | $ | — | $ | 12,793 | $ | — | ||||||||
Customer relationships | 22,057 | 9,359 | 22,057 | 7,859 | ||||||||||||
Trademarks | 403 | 273 | 403 | 243 | ||||||||||||
Patents | 1,193 | 505 | 1,262 | 409 | ||||||||||||
$ | 36,446 | $ | 10,137 | $ | 36,515 | $ | 8,511 | |||||||||
There was a decrease in patents in the amount of $69,000 and $39,000 during fiscal 2014 and 2013, respectively, related to the Seastone royalty earn-out, equal to 5% of the estimated net sales of certain products through 2014. The Company believes that the obligation related to the earn-out is determinable beyond a reasonable doubt. | ||||||||||||||||
The weighted-average amortization period of customer relationships, trademarks and patents are 12 years, 10 years and 10 years, respectively. | ||||||||||||||||
Amortization expense was $1,626,000 for fiscal 2014, $1,646,000 for fiscal 2013, and $1,683,000 for fiscal 2012. The estimated amortization expense for the next five fiscal years is as follows (in thousands): | ||||||||||||||||
Fiscal 2015 | $ | 1,628 | ||||||||||||||
Fiscal 2016 | 1,627 | |||||||||||||||
Fiscal 2017 | 1,627 | |||||||||||||||
Fiscal 2018 | 1,627 | |||||||||||||||
Fiscal 2019 | 1,627 | |||||||||||||||
In the fourth quarter of fiscal 2014, 2013 and 2012, the Company performed the required annual impairment test of the carrying amount of goodwill and indefinite lived intangibles and determined that no impairment existed. | ||||||||||||||||
The Company assesses the impairment of long-lived assets, including identifiable intangible assets subject to amortization and property and plant and equipment, whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors the Company considers important that could trigger an impairment review include significant changes in the use of any assets, changes in historical trends in operating performance, changes in projected operating performance, stock price, loss of a major customer, failure to pass step one of the goodwill impairment test and significant negative economic trends. In connection with the Company’s review of the recoverability of its long-lived assets as it prepared its financial statements for the fiscal year ended March 31, 2014, 2013 and 2012, the Company determined that no impairment existed in fiscal 2014, 2013 and 2012. |
Treasury_Stock_Transactions
Treasury Stock Transactions | 12 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
TREASURY STOCK TRANSACTIONS | ' |
TREASURY STOCK TRANSACTIONS | |
On December 11, 2012, the Company purchased, under the Company’s stock repurchase program, an aggregate 80,000 shares of its common stock from a trust established by a director of the Company. The terms of the purchase were negotiated on behalf of the Company by a Special Committee of the Board of Directors consisting of four independent, disinterested directors. The price of $20.00 per share was less than the fair market value of a share of the Company’s common stock on the date of the transaction. The Special Committee unanimously authorized the purchase. The total amount of this transaction was $1,600,000. | |
Under a stock repurchase program authorized by the Company’s Board of Directors, the Company repurchased 272,655 shares of the Company's common stock for $6,634,000 in fiscal 2014. The Company repurchased 251,180 shares (inclusive of the 80,000 shares described above) of the Company’s common stock for $4,864,000 (inclusive of the $1,600,000 described above) in fiscal 2013. The Company repurchased 88,210 shares of the Company’s common stock for $1,648,000 in fiscal 2012. As of March 31, 2014, the Company had 200,955 shares remaining available for repurchase under the Board’s authorization. |
ShareBased_Plans
Share-Based Plans | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
SHARE-BASED PLANS | ' | ||||||||||||
SHARE-BASED PLANS | |||||||||||||
2013 Equity Compensation Plan | |||||||||||||
On July 30, 2013, the Company's stockholders approved the CSS Industries, Inc. 2013 Equity Compensation Plan ("2013 Plan"). Under the terms of the Company's 2013 Plan, the Human Resources Committee of the Company's Board of Directors ("Board"), or other committee appointed by the Board (collectively with the Human Resources Committee, the "2013 Equity Plan Committee"), may grant incentive stock options, non-qualified stock options, stock units, restricted stock grants, stock appreciation rights, stock bonus awards and dividend equivalents to officers and other employees. Grants under the 2013 Plan may be made through July 29, 2023. The term of each grant is at the discretion of the 2013 Equity Plan Committee, but in no event greater than ten years from the date of grant. The 2013 Equity Plan Committee has discretion to determine the date or dates on which granted options become exercisable. At March 31, 2014, there were 1,132,950 shares available for grant and no awards outstanding under the 2013 Plan. | |||||||||||||
2004 Equity Compensation Plan | |||||||||||||
Under the terms of the 2004 Equity Compensation Plan (“2004 Plan”), the Human Resources Committee of the Board previously had the ability to grant incentive stock options, non-qualified stock options, restricted stock grants, stock appreciation rights, stock bonuses and other awards to officers and other employees. Effective upon approval of the 2013 Plan on July 30, 2013, no further grants will be made under the 2004 Plan. Service-based options outstanding as of March 31, 2014 become exercisable at the rate of 25% per year commencing one year after the date of grant. Market-based options outstanding as of such date will become exercisable only if certain market conditions and service requirements are satisfied, and the date(s) on which they become exercisable will depend on the period in which such market conditions and service requirements are met, if at all, except that vesting and exercisability are accelerated upon a change of control. Market-based restricted stock units (“RSUs”) outstanding at March 31, 2014 will vest only if certain market conditions and service requirements have been met, and the date(s) on which they vest will depend on the period in which such market conditions and service requirements are met, if at all, except that vesting and redemption are accelerated upon a change of control. Subject to limited exceptions, service-based RSUs outstanding as of March 31, 2014 vest at the rate of 50% of the shares underlying the grant on each of the third and fourth anniversaries of the grant date. | |||||||||||||
2011 Stock Option Plan for Non-Employee Directors | |||||||||||||
Under the terms of the CSS Industries, Inc. 2011 Stock Option Plan for Non-Employee Directors (“2011 Plan”), non-qualified stock options to purchase up to 150,000 shares of common stock are available for grant to non-employee directors at exercise prices of not less than the fair market value of the underlying common stock on the date of grant. Under the 2011 Plan, options to purchase 4,000 shares of the Company’s common stock are granted automatically to each non-employee director on the last day that the Company’s common stock is traded in November of each year from 2011 to 2015. Each option will expire five years after the date the option is granted and options may be exercised at the rate of 25% per year commencing one year after the date of grant. At March 31, 2014, 101,000 shares were available for grant under the 2011 Plan. | |||||||||||||
Compensation cost is recognized over the stated vesting period consistent with the terms of the arrangement (i.e. either on a straight-line or graded-vesting basis). | |||||||||||||
Stock Options | |||||||||||||
Compensation cost related to stock options recognized in operating results (included in selling, general and administrative expenses) was $1,008,000, $857,000, and $869,000 in the years ended March 31, 2014, 2013 and 2012, respectively, and the associated future income tax benefit recognized was $375,000, $310,000, and $313,000 in the years ended March 31, 2014, 2013 and 2012, respectively. | |||||||||||||
During fiscal year 2013, the Company identified that it had overstated its share-based compensation expense since fiscal 2007. The Company’s share-based compensation cost is estimated at the grant date based on the fair value of the awards and is expensed ratably over the requisite service period of the awards, net of estimated forfeitures. Share-based compensation expense is required to be adjusted periodically based on actual awards forfeited. Since the adoption of ASC 718 in fiscal year 2007, the Company had not adjusted share-based compensation expense for actual forfeitures. Specifically, share-based compensation expense was overstated by $128,000 in fiscal 2012, $184,000 in fiscal 2011, $339,000 in fiscal 2010, $351,000 in fiscal 2009, $337,000 in fiscal 2008 and $388,000 in fiscal 2007. | |||||||||||||
Accordingly, share-based compensation expense and additional paid-in capital were overstated in fiscal years 2007 to 2012. The Company assessed the materiality of these items, using relevant quantitative and qualitative factors, and determined these items, both individually and in the aggregate, were not material to any previously reported period. As such, the consolidated statements of stockholders’ equity was revised to reflect the cumulative effect of these adjustments resulting in a decrease to additional paid-in capital and an increase to retained earnings of $1,727,000, which is reflected as an adjustment in the fiscal 2013 consolidated statement of stockholders’ equity. | |||||||||||||
The Company issues treasury shares for stock option exercises. The cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those share awards (referred to as excess tax benefits) were presented as financing cash flows in the consolidated statements of cash flows. | |||||||||||||
Activity and related information pertaining to stock options for the years ended March 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||
of Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual Life | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at April 1, 2011 | 815,930 | $ | 26.43 | ||||||||||
Granted | 114,000 | 18.78 | |||||||||||
Exercised | (42,577 | ) | 16.7 | ||||||||||
Forfeited/canceled | (290,031 | ) | 28.31 | ||||||||||
Outstanding at March 31, 2012 | 597,322 | 24.75 | |||||||||||
Granted | 132,600 | 18.79 | |||||||||||
Exercised | (11,000 | ) | 17.47 | ||||||||||
Forfeited/canceled | (208,381 | ) | 31.32 | ||||||||||
Outstanding at March 31, 2013 | 510,541 | 20.68 | |||||||||||
Granted | 108,700 | 29.84 | |||||||||||
Exercised | (182,378 | ) | 20.03 | ||||||||||
Forfeited/canceled | (48,800 | ) | 23.87 | ||||||||||
Outstanding at March 31, 2014 | 388,063 | $ | 23.14 | 4.0 years | $ | 1,737 | |||||||
Exercisable at March 31, 2014 | 128,037 | $ | 23.17 | 2.2 years | $ | 592 | |||||||
The fair value of each stock option granted was estimated on the date of grant using either the Black-Scholes option pricing model (service-based awards) or a Monte Carlo simulation model (market-based awards) with the following average assumptions: | |||||||||||||
For the Years Ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield at time of grant | 2.02 | % | 2.92 | % | 3.21 | % | |||||||
Expected stock price volatility | 52 | % | 54 | % | 54 | % | |||||||
Risk-free interest rate | 0.94 | % | 0.61 | % | 2.14 | % | |||||||
Expected life of option (in years) | 4.8 | 5 | 5.1 | ||||||||||
Expected volatilities are based on historical volatility of the Company’s common stock. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant. | |||||||||||||
The weighted average fair value of stock options granted during fiscal 2014, 2013 and 2012 was $11.19, $7.30 and $6.87, per share, respectively. The total intrinsic value of options exercised during the years ended March 31, 2014, 2013 and 2012 was $1,606,000, $25,000 and $174,000, respectively. The total fair value of stock options vested during fiscal 2014, 2013 and 2012 was $667,000, $544,000 and $775,000. | |||||||||||||
As of March 31, 2014, there was $1,215,000 of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s equity incentive plans which is expected to be recognized over a weighted average period of 2.2 years. | |||||||||||||
Restricted Stock Units | |||||||||||||
Compensation cost related to RSUs recognized in operating results (included in selling, general and administrative expenses) was $835,000, $926,000 and $814,000 in the years ended March 31, 2014, 2013 and 2012, respectively, and the associated future income tax benefit recognized was $311,000, $335,000 and $293,000 in the years ended March 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Activity and related information pertaining to RSUs for the years ended March 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
Number | Weighted Average | Weighted Average | |||||||||||
of RSUs | Fair Value | Contractual Life | |||||||||||
Outstanding at April 1, 2011 | 186,000 | $ | 17.8 | ||||||||||
Granted | 79,850 | 16.33 | |||||||||||
Vested | (10,825 | ) | 25.29 | ||||||||||
Forfeited/canceled | (37,015 | ) | 17.27 | ||||||||||
Outstanding at March 31, 2012 | 218,010 | 16.98 | |||||||||||
Granted | 70,800 | 14.78 | |||||||||||
Vested | (42,479 | ) | 18.75 | ||||||||||
Forfeited/canceled | (16,889 | ) | 16.24 | ||||||||||
Outstanding at March 31, 2013 | 229,442 | 16.02 | |||||||||||
Granted | 38,850 | 20.51 | |||||||||||
Vested | (59,517 | ) | 16.64 | ||||||||||
Forfeited/canceled | (15,950 | ) | 15.83 | ||||||||||
Outstanding at March 31, 2014 | 192,825 | $ | 16.75 | 4.7 years | |||||||||
The fair value of each market-based RSU granted during fiscal 2014 and 2013 was estimated on the date of grant using a Monte Carlo simulation model with the following assumptions: | |||||||||||||
For the Years Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected dividend yield at time of grant | 2.04 | % | 3.15 | % | |||||||||
Expected stock price volatility | 40 | % | 58 | % | |||||||||
Risk-free interest rate | 0.66 | % | 0.58 | % | |||||||||
The fair value of each RSU granted during fiscal 2012 was estimated on the date of grant based on the closing price of the Company’s common stock reduced by the present value of the expected dividend stream during the vesting period using the risk-free interest rate. | |||||||||||||
The total fair value of restricted stock units vested during fiscal 2014, 2013 and 2012 was $990,000, $797,000 and $298,000. | |||||||||||||
As of March 31, 2014, there was $1,200,000 of total unrecognized compensation cost related to non-vested RSUs granted under the Company’s equity incentive plans which is expected to be recognized over a weighted average period of 2.0 years. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
RETIREMENT BENEFIT PLANS | ' | |||||||
RETIREMENT BENEFIT PLANS | ||||||||
Profit Sharing Plans | ||||||||
The Company maintains a defined contribution profit sharing and 401(k) plan covering substantially all of the employees of the Company and its subsidiaries as of March 31, 2014. Annual contributions under the plan are determined by the Board of Directors of the Company. Consolidated expense related to the plans for the years ended March 31, 2014, 2013 and 2012 was $689,000, $703,000 and $412,000, respectively. | ||||||||
Postretirement Medical Plan | ||||||||
The Company’s Berwick Offray subsidiary administers a postretirement medical plan covering certain persons who were employees or former employees of a former subsidiary. The plan is unfunded and frozen to new participants. | ||||||||
The following table provides a reconciliation of the benefit obligation for the postretirement medical plan (in thousands): | ||||||||
For the Years Ended March 31, | ||||||||
2014 | 2013 | |||||||
Benefit obligation at beginning of year | $ | 871 | $ | 877 | ||||
Interest cost | 36 | 38 | ||||||
Actuarial (gain) loss | (30 | ) | 24 | |||||
Benefits paid | (73 | ) | (68 | ) | ||||
Benefit obligation at end of year | $ | 804 | $ | 871 | ||||
The benefit obligation of $804,000 and $871,000 as of March 31, 2014 and 2013, respectively, was recorded in long-term obligations in the consolidated balance sheet. | ||||||||
The net loss recognized in accumulated other comprehensive loss at March 31, 2014 was $26,000, net of tax, and there is no actuarial gain or loss expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2015. | ||||||||
The assumptions used to develop the net periodic benefit cost and benefit obligation for the postretirement medical plan as of and for the years ended March 31, 2014, 2013 and 2012 were a discount rate of 4.50% (4.25% for 2013 and 4.50% for 2012) and assumed health care cost trend rates of 9% (10% for 2013 and 11% for 2012) trending down to an ultimate rate of 5% in 2022. The discount rate is determined based on the average of the Citigroup Pension Liability Index, Moody's Long Term Corporate Bond Yield, and Corporate Bond Rate calculated by the Internal Revenue Service. | ||||||||
Net periodic pension and postretirement medical costs were $36,000, $38,000 and $48,000 for the years ended March 31, 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
Income from continuing operations before income tax expense was as follows (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 18,112 | $ | 13,468 | $ | 19,262 | ||||||
Foreign | 9,588 | 9,169 | 5,983 | |||||||||
$ | 27,700 | $ | 22,637 | $ | 25,245 | |||||||
The following table summarizes the provision for U.S. federal, state and foreign taxes on income from continuing operations (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 4,830 | $ | 7,871 | $ | 7,296 | ||||||
State | 481 | 876 | 726 | |||||||||
Foreign | 1,582 | 1,513 | 987 | |||||||||
6,893 | 10,260 | 9,009 | ||||||||||
Deferred: | ||||||||||||
Federal | 1,978 | (1,917 | ) | (63 | ) | |||||||
State | 265 | (1,294 | ) | 70 | ||||||||
2,243 | (3,211 | ) | 7 | |||||||||
$ | 9,136 | $ | 7,049 | $ | 9,016 | |||||||
The differences between the statutory and effective federal income tax rates on income from continuing operations before income taxes were as follows: | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, less federal benefit | 1.9 | 1.4 | 2.1 | |||||||||
Changes in tax reserves and valuation allowance | 1.6 | (3.1 | ) | 0.1 | ||||||||
Nondeductible goodwill | — | 2.5 | — | |||||||||
Permanent book/tax differences (primarily §199 deduction) | (2.2 | ) | (1.6 | ) | (0.7 | ) | ||||||
Other, net | (3.3 | ) | (3.1 | ) | (0.8 | ) | ||||||
33 | % | 31.1 | % | 35.7 | % | |||||||
The Company receives distributions from its foreign operations and, therefore, does not assume that the income from operations of its foreign subsidiaries will be permanently reinvested. | ||||||||||||
Income tax benefits related to the exercise of stock options and vesting of restricted stock units reduced current taxes payable by $1,175,000, $290,000 and $99,000 in fiscal 2014, 2013 and 2012, respectively. | ||||||||||||
Deferred taxes are recorded based upon differences between the financial statement and tax bases of assets and liabilities and available net operating loss and credit carryforwards. The following temporary differences gave rise to net deferred income tax assets (liabilities) as of March 31, 2014 and 2013 (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Accounts receivable | $ | 196 | $ | 332 | ||||||||
Inventories | 2,852 | 2,806 | ||||||||||
Accrued expenses | 3,093 | 3,016 | ||||||||||
State net operating loss and credit carryforwards | 6,031 | 5,992 | ||||||||||
Share-based compensation | 1,718 | 1,861 | ||||||||||
Intangibles | 2,110 | 3,031 | ||||||||||
16,000 | 17,038 | |||||||||||
Valuation allowance | (5,815 | ) | (5,467 | ) | ||||||||
10,185 | 11,571 | |||||||||||
Deferred income tax liabilities: | ||||||||||||
Property, plant and equipment | 1,248 | 1,823 | ||||||||||
Unremitted earnings of foreign subsidiaries | 2,308 | 986 | ||||||||||
Other | 250 | 268 | ||||||||||
3,806 | 3,077 | |||||||||||
Net deferred income tax asset | $ | 6,379 | $ | 8,494 | ||||||||
At March 31, 2014 and 2013, the Company had potential state income tax benefits of $6,315,000 (net of federal tax of $3,400,000) and $6,158,000 (net of federal tax of $3,316,000), respectively, from state deferred tax assets and state net operating loss carryforwards that expire in various years through 2034. At March 31, 2014 and 2013, the Company provided valuation allowances of $5,815,000 and $5,467,000, respectively. The valuation allowance reflects management’s assessment of the portion of the deferred tax asset that more likely than not will not be realized through future taxable earnings or implementation of tax planning strategies. The decrease in the state net operating loss in fiscal 2013 primarily related to the expiration of a state net operating loss carryforward that had been offset by a full valuation allowance. During fiscal 2013, the Company released a portion of its valuation allowance associated with state net operating losses as it was determined it was more likely than not the net operating losses would be utilized prior to expiration. | ||||||||||||
As of March 31, 2012, the Company reduced its deferred income tax assets related to share-based compensation by $2,585,000 due to the expiration of certain stock options. The corresponding non-cash charge had no impact on the consolidated statement of operations and reduced additional paid-in capital as the Company has a sufficient hypothetical additional paid-in capital pool in accordance with the applicable income tax accounting literature. Of the $2,585,000, recorded in fiscal 2012, approximately $718,000 related to expirations which occurred in fiscal 2012. The remainder of $1,867,000 related to expirations prior to fiscal 2012. The correction of this item did not have a material impact on the Company’s consolidated financial statements. Management evaluated the quantitative and qualitative impact of the correction on previously reported periods as well as the year ended March 31, 2012. Based on this evaluation, management concluded that the adjustment was not material to the consolidated financial statements. As of March 31, 2014 and 2013, the Company reduced its deferred income tax asset related to share-based compensation by $35,000 and $549,000, respectively, due to the expiration of certain stock options during fiscal 2014 and 2013. | ||||||||||||
Uncertain tax positions are recognized and measured under provisions in ASC 740. These provisions require that the Company recognize in its consolidated financial statements the impact of a tax position, if it is more likely than not that such position will be sustained on audit, based solely on the technical merits of the position. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross unrecognized tax benefits at April 1 | $ | 1,276 | $ | 1,108 | ||||||||
Additions based on tax positions related to the current year | 162 | 168 | ||||||||||
Gross unrecognized tax benefits at March 31 | $ | 1,438 | $ | 1,276 | ||||||||
The total amount of gross unrecognized tax benefits at March 31, 2014 of $1,438,000 was classified in long-term obligations in the accompanying consolidated balance sheet and the amount that would favorably affect the effective tax rate in future periods, if recognized, is $935,000. The Company does not anticipate any significant changes to the amount of gross unrecognized tax benefits in the next 12 months. | ||||||||||||
Consistent with the Company’s historical financial reporting, the Company recognizes potential accrued interest and/or penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of operations. Approximately $544,000 of interest and penalties are accrued at March 31, 2014, $110,000 of which was recorded during the current year. | ||||||||||||
The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company’s federal tax return for the year ended March 31, 2009 was examined by the Internal Revenue Service and settled with no adjustments. State and foreign income tax returns remain open back to March 31, 2008 in major jurisdictions in which the Company operates. |
Revolving_Credit_Facility
Revolving Credit Facility | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
REVOLVING CREDIT FACILITY | ' | ||||
REVOLVING CREDIT FACILITY | |||||
On March 17, 2011, the Company entered into a revolving credit facility with two banks. The facility expires on March 17, 2016 and provides for a revolving line of credit under which the maximum credit available to the Company at any one time automatically adjusts upwards and downwards on a periodic basis among “low”, “medium” and “high” levels (each a “Commitment Level”), as follows: | |||||
Commitment Period Description | Commitment Period Time Frame | Commitment Level | |||
Low | February 1 to June 30 (5 months) | $50,000,000 | |||
Medium | July 1 to October 31 (4 months) | $100,000,000 | |||
High | November 1 to January 31 (3 months) | $150,000,000 | |||
The Company has the option to increase the Commitment Level during part of any Low Commitment Period from $50,000,000 to an amount not less than $62,500,000 and not in excess of $125,000,000; provided, however, that the Commitment Level must remain at $50,000,000 for at least three consecutive months during each Low Commitment Period. The Company has the option to increase the Commitment Level during all or part of any Medium Commitment Period from $100,000,000 to an amount not in excess $125,000,000. Fifteen days prior written notice is required for the Company to exercise an option to increase the Commitment Level with respect to a particular Low Commitment Period or Medium Commitment Period. The Company may exercise an option to increase the Commitment Level no more than three times each calendar year. The Company may issue up to $20,000,000 of letters of credit under the facility. | |||||
Interest on the facility accrues at per annum rates equal to, at the Company’s option, either one-, two-, or three-month London Interbank Offered Rate (“LIBOR”) plus 0.95%, or the LIBOR Market Index Rate plus 0.95%. In addition to interest, the Company is required to pay “unused” fees equal to 0.25% per annum on the average daily unused amount of the Commitment Level that is then applicable. As of March 31, 2014 and 2013, there were no amounts outstanding under the facility and there were no borrowings under the facility during fiscal 2014 and 2013. Outstanding letters of credit under the facility totaled $1,800,000 and $2,393,000 at March 31, 2014 and 2013, respectively. These letters of credit guarantee funding of workers compensation claims. | |||||
The agreement governing the facility contains financial covenants requiring the Company to maintain as of the last day of each fiscal quarter: (i) a tangible net worth of not less than $140,000,000, and (ii) an interest coverage ratio of not less than 3.50 to 1.00. The facility also contains covenants that address, among other things, the ability of the Company and its subsidiaries to incur additional indebtedness; grant liens on their assets; engage in mergers, acquisitions, divestitures and/or sale–leaseback transactions; pay dividends and make other distributions in respect of their capital stock; make investments and capital expenditures; and enter into “negative pledge” agreements with respect to their assets. The restriction on the payment of dividends applies only upon the occurrence and continuance of a Company default under the facility, or when a dividend payment would give rise to such a default. The Company is in compliance with all financial debt covenants as of March 31, 2014. |
Operating_Leases
Operating Leases | 12 Months Ended | |||
Mar. 31, 2014 | ||||
Leases [Abstract] | ' | |||
OPERATING LEASES | ' | |||
OPERATING LEASES | ||||
The Company maintains various lease arrangements for property and equipment. The future minimum rental payments associated with all non-cancelable lease obligations are as follows (in thousands): | ||||
2015 | $ | 4,760 | ||
2016 | 2,517 | |||
2017 | 1,001 | |||
2018 | 1,001 | |||
2019 | 298 | |||
Thereafter | 62 | |||
Total | $ | 9,639 | ||
Future rental commitments for leases have not been reduced by minimum non-cancelable sublease rental income of $253,000 in fiscal 2015 and $173,000 in fiscal 2016. The Company records rent expense on a straight-line basis over the lease term in accordance with ASC 840-20-25. Rent expense was $5,312,000, $6,048,000 and $6,414,000 for the years ended March 31, 2014, 2013 and 2012, respectively. Sublease income was $165,000 for the year ended March 31, 2014. There was no sublease income recorded in fiscal 2013 or 2012. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
The Company uses certain derivative financial instruments as part of its risk management strategy to reduce foreign currency risk. The Company recorded all derivatives on the consolidated balance sheet at fair value based on quotes obtained from financial institutions as of March 31, 2013. There were no foreign currency contracts outstanding as of March 31, 2014. | ||||||||||||||||
The Company maintains a Nonqualified Supplemental Executive Retirement Plan for highly compensated employees and invests assets to mirror the obligations under this Plan. The invested funds are maintained at a third party financial institution in the name of CSS and are invested in publicly traded mutual funds. The Company maintains separate accounts for each participant to reflect deferred contribution amounts and the related gains or losses on such deferred amounts. The investments are included in other current assets and the related liability is recorded as deferred compensation and included in long-term obligations in the consolidated balance sheets. The fair value of the investments is based on the market price of the mutual funds as of March 31, 2014 and 2013. | ||||||||||||||||
The Company maintains two life insurance policies in connection with deferred compensation arrangements with two former executives. The cash surrender value of the policies is recorded in other long-term assets in the consolidated balance sheets and is based on quotes obtained from the insurance company as of March 31, 2014 and 2013. | ||||||||||||||||
To increase consistency and comparability in fair value measurements, the FASB established a fair value hierarchy that prioritizes the inputs to valuation techniques, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||||||||
The Company’s recurring assets and liabilities recorded on the consolidated balance sheet are categorized based on the inputs to the valuation techniques as follows: | ||||||||||||||||
Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. | ||||||||||||||||
Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Examples of Level 2 inputs included quoted prices for identical or similar assets or liabilities in non-active markets and pricing models whose inputs are observable for substantially the full term of the asset or liability. | ||||||||||||||||
Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. | ||||||||||||||||
The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in its consolidated balance sheet as of March 31, 2014 and 2013. | ||||||||||||||||
31-Mar-14 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
Cash surrender value of life insurance policies | 1,079 | — | 1,079 | — | ||||||||||||
Total assets | $ | 1,861 | $ | 782 | $ | 1,079 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plans | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
Total liabilities | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
31-Mar-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||
Cash surrender value of life insurance policies | 1,040 | — | 1,040 | — | ||||||||||||
Total assets | $ | 1,718 | $ | 678 | $ | 1,040 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plans | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||
Foreign exchange contract | 17 | — | 17 | — | ||||||||||||
Total liabilities | $ | 695 | $ | 678 | $ | 17 | $ | — | ||||||||
Cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reflected at carrying value in the consolidated balance sheets as such amounts are a reasonable estimate of their fair values due to the short-term nature of these instruments. Short-term investments include held-to-maturity securities that are recorded at amortized cost, which approximates fair value (Level 2), because their short-term maturity results in the interest rates on these securities approximating current market interest rates. | ||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||
The Company’s nonfinancial assets which are measured at fair value on a nonrecurring basis include property, plant and equipment, goodwill, intangible assets and certain other assets. These assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that impairment may exist. In making the assessment of impairment, recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to future net cash flows estimated by the Company to be generated by such assets. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are recorded at the lower of their carrying value or estimated net realizable value. | ||||||||||||||||
Goodwill and indefinite-lived intangibles are subject to impairment testing on an annual basis, or sooner if circumstances indicate a condition of impairment may exist. The valuations use assumptions such as interest and discount rates, growth projections and other assumptions of future business conditions. These valuation methods require a significant degree of management judgment concerning the use of internal and external data. In the event these methods indicate that fair value is less than the carrying value, the asset is recorded at fair value as determined by the valuation models. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. | ||||||||||||||||
In connection with the sale of the Halloween portion of Paper Magic’s business on September 5, 2012, a portion of the goodwill associated with the Paper Magic reporting unit was allocated to the business being sold. Such allocation was made on the basis of the fair value of the assets being sold relative to the overall fair value of the Paper Magic reporting unit. This resulted in the Company recording a reduction of goodwill in the amount of $2,711,000 for the Paper Magic reporting unit. As the sale of the Halloween portion of Paper Magic’s business was a triggering event, the Company performed an interim impairment test on the goodwill remaining in the Paper Magic reporting unit after the reduction in goodwill associated with the sale of the Halloween portion of Paper Magic’s business was recorded. The Company determined that no impairment existed for the remainder of the goodwill of the Paper Magic reporting unit. There were no other indications or circumstances indicating that an impairment might exist in regard to the Company’s other nonfinancial assets which are measured at fair value on a nonrecurring basis as of March 31, 2014 and 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
CSS and its subsidiaries are involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the consolidated financial position of the Company or its results of operations or cash flows. |
Segment_Disclosure
Segment Disclosure | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT DISCLOSURE | ' | |||||||||||
SEGMENT DISCLOSURE | ||||||||||||
The Company operates in a single reporting segment, the design, manufacture, procurement, distribution and sale of non-durable all occasion and seasonal social expression products, primarily to mass market retailers in the United States and Canada. The majority of the Company’s assets are maintained in the United States. | ||||||||||||
The Company’s detail of revenues from its various products is as follows (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
All occasion | $ | 195,147 | $ | 203,668 | $ | 206,175 | ||||||
Christmas | 100,533 | 105,466 | 123,001 | |||||||||
Other seasonal | 24,779 | 55,059 | 55,487 | |||||||||
Total | $ | 320,459 | $ | 364,193 | $ | 384,663 | ||||||
One customer accounted for sales of $87,925,000, or 27% of total sales in fiscal 2014, $99,459,000, or 27% of total sales in fiscal 2013, and $96,836,000, or 25% of total sales in fiscal 2012. One other customer accounted for sales of $38,348,000, or 12% of total sales in fiscal 2014, $48,948,000, or 13% of total sales in fiscal 2013, and $50,501,000, or 13% of total sales in fiscal 2012. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this is the case, a more detailed two-step goodwill impairment test will need to be performed which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of ASU 2011-08 did not have a material impact on the Company’s financial condition, results of operations and cash flows. | |
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If this is the case, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. ASU 2012-02 is effective for annual and interim impairment tests performed by the Company for fiscal years beginning after September 15, 2012, with early adoption permitted. The Company adopted the provisions of ASU 2012-02 effective April 1, 2013. The adoption of ASU 2012-02 did not have a material impact on the Company’s future indefinite-lived intangibles impairment tests. | |
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). This update is intended to improve the comparability of statements of financial position prepared in accordance with U.S. GAAP and International Financial Reporting Standards, requiring both gross and net presentation of offsetting assets and liabilities. The new requirements are effective for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As this guidance only affects disclosures, the adoption of this standard did not have an impact on the Company’s financial condition, results of operations and cash flows. | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This update requires disclosure, either on the face of the statement where income is presented or in the notes to the financial statements, of significant amounts reclassified out of accumulated other comprehensive income in their entirety. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. ASU 2013-02 is effective for annual and interim periods beginning after December 15, 2012. As this update only requires enhanced disclosure, the adoption of ASU 2013-02 did not impact the Company’s financial condition, results of operations and cash flows. | |
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Caryforward Exists (a consensus of the FASB Emerging Issues Task Force)" ("ASU 2013-11"), which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. It is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on the Company's financial condition, results of operations and cash flows. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
2014 | Quarters | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 47,117 | $ | 112,487 | $ | 106,295 | $ | 54,560 | ||||||||
Gross profit | $ | 14,459 | $ | 36,727 | $ | 36,266 | $ | 15,704 | ||||||||
(Loss) income from continuing operations | $ | (1,667 | ) | $ | 10,846 | $ | 10,988 | $ | (1,603 | ) | ||||||
(Loss) income from discontinued operations, net of tax | $ | — | $ | 112 | $ | 19 | $ | 74 | ||||||||
Net (loss) income | $ | (1,667 | ) | $ | 10,958 | $ | 11,007 | $ | (1,529 | ) | ||||||
Net (loss) income per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | 1.15 | $ | 1.18 | $ | (0.17 | ) | ||||||
Discontinued operations | $ | — | $ | 0.01 | $ | — | $ | 0.01 | ||||||||
Total (1) (2) | $ | (0.18 | ) | $ | 1.16 | $ | 1.18 | $ | (0.16 | ) | ||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | 1.14 | $ | 1.18 | $ | (0.17 | ) | ||||||
Discontinued operations | $ | — | $ | 0.01 | $ | — | $ | 0.01 | ||||||||
Total (1) (2) | $ | (0.18 | ) | $ | 1.16 | $ | 1.18 | $ | (0.16 | ) | ||||||
2013 | Quarters | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 61,067 | $ | 133,485 | $ | 116,020 | $ | 53,621 | ||||||||
Gross profit | $ | 17,198 | $ | 40,831 | $ | 37,613 | $ | 13,449 | ||||||||
(Loss) income from continuing operations | $ | (867 | ) | $ | 6,840 | $ | 11,600 | $ | (1,985 | ) | ||||||
(Loss) income from discontinued operations, net of tax | $ | (37 | ) | $ | 81 | $ | 11 | $ | (416 | ) | ||||||
Net (loss) income | $ | (904 | ) | $ | 6,921 | $ | 11,611 | $ | (2,401 | ) | ||||||
Net (loss) income per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations (1) | $ | (0.09 | ) | $ | 0.71 | $ | 1.21 | $ | (0.21 | ) | ||||||
Discontinued operations (1) | $ | — | $ | 0.01 | $ | — | $ | (0.04 | ) | |||||||
Total (1) (2) | $ | (0.09 | ) | $ | 0.72 | $ | 1.22 | $ | (0.25 | ) | ||||||
Diluted: | ||||||||||||||||
Continuing operations (1) | $ | (0.09 | ) | $ | 0.71 | $ | 1.21 | $ | (0.21 | ) | ||||||
Discontinued operations (1) | $ | — | $ | 0.01 | $ | — | $ | (0.04 | ) | |||||||
Total (1) (2) | $ | (0.09 | ) | $ | 0.72 | $ | 1.22 | $ | (0.25 | ) | ||||||
-1 | Net (loss) income per common share amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year. | |||||||||||||||
-2 | Total net (loss) income per common share may not foot due to rounding. | |||||||||||||||
The third and fourth quarters of fiscal 2013 net (loss) income included favorable income tax rate adjustments primarily attributable to the release of valuation allowances related to state net operating loss carryforwards and lower federal and state income taxes, partially offset by a portion of the goodwill reduction being non-deductible for tax purposes. | ||||||||||||||||
The second quarter of fiscal 2013 net income from continuing operations included net charges of $6,764,000 related to the sale of the Halloween portion of Paper Magic’s business as further described in Note 4 to the consolidated financial statements. | ||||||||||||||||
The seasonal nature of CSS’ business has historically resulted in comparatively lower sales and operating losses in the first and fourth quarters and comparatively higher sales levels and operating profits in the second and third quarters of the Company’s fiscal year, thereby causing significant fluctuations in the quarterly results of operations of the Company. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
SUBSEQUENT EVENT | |
On May 19, 2014, a subsidiary of the Company completed the acquisition of substantially all of the business and assets of Carson & Gebel Ribbon Co., LLC for approximately $5,142,000 in cash. Carson & Gebel Ribbon Co., LLC is a manufacturer, distributor and supplier of decorative ribbon and similar products to wholesale florists, packaging distributors and bow manufacturers. Key product categories include cut edge acetate ribbon and velvet ribbon used in everyday and holiday floral arrangements. A portion of the purchase price is being held in escrow for certain post-closing adjustments and indemnification obligations. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||||||||
SCHEDULE II | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Balance | Charged | |||||||||||||||||||||
at | to Costs | Charged | Balance | |||||||||||||||||||
Beginning | and | to Other | At End of | |||||||||||||||||||
of Period | Expenses | Accounts | Deductions | Period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year ended March 31, 2014 | ||||||||||||||||||||||
Accounts receivable allowances | $ | 2,009 | $ | 2,862 | $ | — | $ | 3,202 | $ | 1,669 | ||||||||||||
Accrued customer programs | 4,015 | 9,424 | — | 8,619 | 4,820 | |||||||||||||||||
Accrued restructuring expenses | 1,900 | — | — | 1,676 | 224 | (a) | ||||||||||||||||
Year ended March 31, 2013 | ||||||||||||||||||||||
Accounts receivable allowances | $ | 1,764 | $ | 4,746 | $ | — | $ | 4,501 | $ | 2,009 | ||||||||||||
Accrued customer programs | 3,298 | 11,667 | — | 10,950 | 4,015 | |||||||||||||||||
Accrued restructuring expenses | 590 | 3,998 | — | 2,688 | 1,900 | (a) | ||||||||||||||||
Year ended March 31, 2012 | ||||||||||||||||||||||
Accounts receivable allowances | $ | 2,680 | $ | 4,884 | $ | — | $ | 5,800 | $ | 1,764 | ||||||||||||
Accrued customer programs | 4,162 | 11,233 | — | 12,097 | 3,298 | |||||||||||||||||
Accrued restructuring expenses | — | 724 | — | 134 | 590 | (b) | ||||||||||||||||
Notes: | ||||||||||||||||||||||
(a) | Classified in accrued other expenses and long-term obligations in the accompanying consolidated balance sheet as of March 31, 2013 and 2014. | |||||||||||||||||||||
(b) | Classified in accrued other expenses in the accompanying consolidated balance sheet as of March 31, 2012. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Basis of Presentation | ' | |||||||||||
Basis of Presentation | ||||||||||||
CSS Industries, Inc. (collectively with its subsidiaries, “CSS” or the “Company”) has prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. | ||||||||||||
On September 9, 2011, the Company and its Cleo Inc (“Cleo”) subsidiary sold the Christmas gift wrap portion of Cleo’s business and certain assets relating to such business, including certain equipment, contract rights, customer lists, intellectual property and other intangible assets to Impact Innovations, Inc. (“Impact”). Cleo’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Various prior period amounts contained in these consolidated financial statements include assets, liabilities and cash flows related to the Christmas gift wrap business which are presented as current assets and liabilities of discontinued operations. The results of operations for the years ended March 31, 2014, 2013 and 2012 reflect the historical operations of the Christmas gift wrap business as discontinued operations. The discussions in this annual report are presented on the basis of continuing operations, unless otherwise noted. | ||||||||||||
The Company’s fiscal year ends on March 31. References to a particular year refer to the fiscal year ending in March of that year. For example fiscal 2014 refers to the fiscal year ended March 31, 2014. | ||||||||||||
Principles of Consolidation | ' | |||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of CSS Industries, Inc. and all of its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. | ||||||||||||
Foreign Currency Translation and Transactions | ' | |||||||||||
Foreign Currency Translation and Transactions | ||||||||||||
Translation adjustments are charged or credited to a separate component of stockholders’ equity. Gains and losses on foreign currency transactions are not material and are included in other expense, net in the consolidated statements of operations. | ||||||||||||
Nature of Business | ' | |||||||||||
Nature of Business | ||||||||||||
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal products include decorative ribbons and bows, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other items that commemorate life’s celebrations. CSS’ product breadth provides its retail customers the opportunity to use a single vendor for much of their seasonal product requirements. A substantial portion of CSS’ products are manufactured, packaged and/or warehoused in ten facilities located in the United States, with the remainder purchased primarily from manufacturers in Asia and Mexico. The Company’s products are sold to its customers by national and regional account sales managers, sales representatives, product specialists and by a network of independent manufacturers’ representatives. CSS maintains a showroom in Hong Kong as well as a purchasing office to administer Asian sourcing opportunities. | ||||||||||||
The Company’s principal operating subsidiaries include Berwick Offray LLC (“Berwick Offray”), Paper Magic Group, Inc. (“Paper Magic”) and C.R. Gibson, LLC (“C.R. Gibson”). On December 3, 2013, the Company combined the operations of its C.R. Gibson business with the operations of its Berwick Offray and Paper Magic businesses, which were previously combined on March 27, 2012. These businesses were combined in order to drive sales growth by providing stronger management oversight and by reallocating sourcing, sales and marketing resources in a more strategic manner. | ||||||||||||
On September 5, 2012, the Company and its Paper Magic subsidiary sold the Halloween portion of Paper Magic’s business and certain Paper Magic assets relating to such business, including certain tangible and intangible assets associated with Paper Magic’s Halloween business, to Gemmy Industries (HK) Limited (“Gemmy”). Paper Magic’s remaining assets, including accounts receivable and inventory, were excluded from the sale. Paper Magic retained the right and obligation to fulfill all customer orders for Paper Magic Halloween products (such as Halloween masks, costumes, make-up and novelties) for the Halloween 2012 season. The sale price of $2,281,000 was paid to Paper Magic at closing. The Company incurred $523,000 of transaction costs (included within disposition of a product line further discussed in Note 2 to the consolidated financial statements), yielding net proceeds of $1,758,000. | ||||||||||||
Approximately 95 of its 1,200 employees (increasing to approximately 1,500 as seasonal employees are added) are represented by a labor union. The collective bargaining agreement with the labor union representing the production and maintenance employees in Hagerstown, Maryland remains in effect until December 31, 2014. Historically, we have been successful in renegotiating expiring agreements without any disruption of operating activities. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Judgments and assessments of uncertainties are required in applying the Company’s accounting policies in many areas. Such estimates pertain to revenue recognition, the valuation of inventory and accounts receivable, the assessment of the recoverability of goodwill and other intangible and long-lived assets, income tax accounting, the valuation of share-based awards and resolution of litigation and other proceedings. Actual results could differ from these estimates. | ||||||||||||
Short-term Investments | ' | |||||||||||
Short-Term Investments | ||||||||||||
The Company categorizes and accounts for its short-term investment holdings as held-to-maturity securities. Held-to-maturity securities are recorded at amortized cost which approximates fair market value at March 31, 2014. This categorization is based upon the Company's positive intent and ability to hold these securities until maturity. | ||||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
The Company offers seasonal dating programs related to certain seasonal product offerings pursuant to which customers that qualify for such programs are offered extended payment terms. With some exceptions, customers do not have the right to return product except for reasons the Company believes are typical of our industry, including damaged goods, shipping errors or similar occurrences. The Company generally is not required to repurchase products from its customers, nor does the Company have any regular practice of doing so. In addition, the Company mitigates its exposure to bad debts by evaluating the creditworthiness of its major customers, utilizing established credit limits, and purchasing credit insurance when appropriate and available on terms satisfactory to the Company. Bad debt and returns and allowances reserves are recorded as an offset to accounts receivable while reserves for customer programs are recorded as accrued liabilities. The Company evaluates accounts receivable related reserves and accruals monthly by specifically reviewing customers’ creditworthiness, historical recovery percentages and outstanding customer deductions and program arrangements. Customer account balances are charged off against the allowance reserve after reasonable means of collection have been exhausted and the potential for recovery is considered unlikely. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
The Company records inventory when title is transferred, which occurs upon receipt or prior to receipt dependent on supplier shipping terms. The Company adjusts unsaleable and slow-moving inventory to its estimated net realizable value. Substantially all of the Company’s inventories are stated at the lower of first-in, first-out (FIFO) cost or market. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost or market, which was $465,000 and $641,000 at March 31, 2014 and 2013, respectively. | ||||||||||||
Property, Plant and Equipment | ' | |||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost and include the following (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Land | $ | 2,508 | $ | 2,508 | ||||||||
Buildings, leasehold interests and improvements | 37,183 | 37,007 | ||||||||||
Machinery, equipment and other | 93,928 | 101,916 | ||||||||||
133,619 | 141,431 | |||||||||||
Less – Accumulated depreciation and amortization | (106,556 | ) | (113,475 | ) | ||||||||
Net property, plant and equipment | $ | 27,063 | $ | 27,956 | ||||||||
Depreciation is provided generally on the straight-line method and is based on estimated useful lives or terms of leases as follows: | ||||||||||||
Buildings, leasehold interests and improvements | Lease term to 45 years | |||||||||||
Machinery, equipment and other | 3 to 15 years | |||||||||||
When property is retired or otherwise disposed of, the related cost and accumulated depreciation and amortization are eliminated from the consolidated balance sheet. Any gain or loss from the disposition of property, plant and equipment is included in other expense, net. Maintenance and repairs are expensed as incurred while improvements are capitalized and depreciated over their estimated useful lives. | ||||||||||||
Impairment of Long-Lived Assets including Goodwill, Other Intangible Assets and Property, Plant and Equipment | ' | |||||||||||
Impairment of Long-Lived Assets including Goodwill, Other Intangible Assets and Property, Plant and Equipment | ||||||||||||
When a company is acquired, the difference between the fair value of its net assets, including intangibles, and the purchase price is recorded as goodwill. Goodwill is subject to an assessment for impairment which must be performed at least annually or more frequently if events or circumstances indicate that goodwill might be impaired. The Financial Accounting Standards Board (“FASB”) issued updated authoritative guidance in September 2011 to amend previous guidance on the annual and interim testing of goodwill for impairment. The guidance became effective for the Company at the beginning of its 2013 fiscal year. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined, on the basis of the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two step impairment test would still be required. The first step of the test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. The Company uses a dual approach to determine the fair value of its reporting units including both a market approach and an income approach. The market approach computes fair value using a multiple of earnings before interest, income taxes, depreciation and amortization which was developed considering both the multiples of recent transactions as well as trading multiples of consumer products companies. The income approach is based on the present value of discounted cash flows and a terminal value projected for each reporting unit. The income approach requires significant judgments including the Company’s projected net cash flows, the weighted average cost of capital (“WACC”) used to discount the cash flows and terminal value assumptions. The projected net cash flows are derived using the most recent available estimate for each reporting unit. The WACC rate is based on an average of the capital structure, cost of capital and inherent business risk profiles of the Company and peer consumer products companies. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. | ||||||||||||
The Company then corroborates the reasonableness of the total fair value of the reporting units by reconciling the aggregate fair values of the reporting units to the Company’s total market capitalization adjusted to include an estimated control premium. The estimated control premium is derived from reviewing observable transactions involving the purchase of controlling interests in comparable companies. The market capitalization is calculated using the relevant shares outstanding and an average closing stock price which considers volatility around the test date. The exercise of reconciling the market capitalization to the computed fair value further supports the Company’s conclusion on the fair value. If the carrying amount of the reporting unit exceeds its fair value, the second step is performed. The second step compares the carrying amount of the goodwill to the implied fair value of the goodwill. If the implied fair value of the goodwill is less than the carrying amount of the goodwill, an impairment loss would be reported. The adoption of this updated authoritative guidance had no impact on the Company’s Consolidated Financial Statements. The Company performs its required annual assessment as of the fiscal year end. Changes to our judgments regarding assumptions and estimates could result in a significantly different estimate of the fair market value of the reporting units, which could result in an impairment of goodwill. | ||||||||||||
Other indefinite lived intangible assets consist primarily of tradenames which are also required to be tested annually for impairment. In July 2012, the FASB issued amended guidance that gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. The amended guidance became effective for the Company at the beginning of its 2014 fiscal year. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. If the result of the qualitative analysis indicates it is more likely than not that an indefinite-lived intangible asset is impaired, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. This approach involves first estimating reasonable royalty rates for each trademark then applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine the fair value. The royalty rate is estimated using both a market and income approach. The market approach relies on the existence of identifiable transactions in the marketplace involving the licensing of tradenames similar to those owned by the Company. The income approach uses a projected pretax profitability rate relevant to the licensed income stream. We believe the use of multiple valuation techniques results in a more accurate indicator of the fair value of each tradename. This fair value is then compared with the carrying value of each tradename. | ||||||||||||
Long-lived assets (including property, plant and equipment), except for goodwill and indefinite lived intangible assets, are reviewed for impairment when events or circumstances indicate the carrying value of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to future net cash flows estimated by the Company to be generated by such assets. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are recorded at the lower of their carrying value or estimated net realizable value. | ||||||||||||
Derivative Financial Instruments | ' | |||||||||||
Derivative Financial Instruments | ||||||||||||
The Company uses certain derivative financial instruments as part of its risk management strategy to reduce foreign currency risk. Derivatives are not used for trading or speculative activities. | ||||||||||||
The Company recognizes all derivatives on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company generally designates the derivative as either (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). Changes in the fair value of a derivative that is designated as, and meets all the required criteria for, a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. Changes in the fair value of a derivative that is designated as, and meets all the required criteria for, a cash flow hedge are recorded in accumulated other comprehensive income and reclassified into earnings as the underlying hedged item affects earnings. The portion of the change in fair value of a derivative associated with hedge ineffectiveness or the component of a derivative instrument excluded from the assessment of hedge effectiveness is recorded currently in earnings. Also, changes in the entire fair value of a derivative that is not designated as a hedge are recorded immediately in earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes relating all derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the consolidated balance sheet or to specific firm commitments or forecasted transactions. | ||||||||||||
The Company also formally assesses, both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, the Company will discontinue hedge accounting prospectively. | ||||||||||||
The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations. Firmly committed transactions and the related receivables and payables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other expense, net as offsets of gains and losses resulting from the underlying hedged transactions. | ||||||||||||
Interest (Income) Expense | ' | |||||||||||
Interest (Income) Expense | ||||||||||||
Interest income was $92,000, $342,000 and $223,000 in the years ended March 31, 2014, 2013 and 2012, respectively. Interest expense was $283,000, $291,000 and $418,000 in the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||
The Company recognizes the impact of an uncertain tax position, if it is more likely than not that such position will be sustained on audit, based solely on the technical merits of the position. See Note 9 for further discussion. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
Revenue is recognized from product sales when goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. The Company records estimated reductions to revenue for customer programs, which may include special pricing agreements for specific customers, volume incentives and other promotions. In limited cases, the Company may provide the right to return product as part of its customer programs with certain customers. The Company also records estimated reductions to revenue, based primarily on historical experience, for customer returns and chargebacks that may arise as a result of shipping errors, product damaged in transit or for other reasons that become known subsequent to recognizing the revenue. These provisions are recorded in the period that the related sale is recognized and are reflected as a reduction from gross sales. The related reserves are shown as a reduction of accounts receivable, except for reserves for customer programs which are shown as a current liability. If the amount of actual customer returns and chargebacks were to increase or decrease significantly from the estimated amount, revisions to the estimated allowance would be required. | ||||||||||||
Product Development Costs | ' | |||||||||||
Product Development Costs | ||||||||||||
Product development costs consist of purchases of outside artwork, printing plates, cylinders, catalogs and samples. For seasonal products, the Company typically begins to incur product development costs approximately 18 to 20 months before the applicable holiday event. Historically, these costs have been amortized monthly over the selling season, which is generally within two to four months of the holiday event. Development costs related to all occasion products are incurred within a period beginning six to nine months prior to the applicable sales period. Historically, these costs generally have been amortized over a six to twelve month selling period. The expense of certain product development costs that are related to the manufacturing process are recorded in cost of sales while the portion that relates to creative and selling efforts are recorded in selling, general and administrative expenses. | ||||||||||||
Shipping and Handling Costs | ' | |||||||||||
Shipping and Handling Costs | ||||||||||||
Shipping and handling costs are reported in cost of sales in the consolidated statements of operations. | ||||||||||||
Share-Based Compensation | ' | |||||||||||
Share-Based Compensation | ||||||||||||
Share-based compensation cost is estimated at the grant date based on a fair-value model. Calculating the fair value of share-based awards at the grant date requires considerable judgment, including estimating stock price volatility and expected option life. | ||||||||||||
The Company uses the Black-Scholes option valuation model and Monte Carlo simulation to value employee stock options and restricted stock units. The Company estimates stock price volatility based on historical volatility of its common stock. Estimated option life assumptions are also derived from historical data. Had the Company used alternative valuation methodologies and assumptions, compensation cost for share-based payments could be significantly different. The Company recognizes compensation cost over the stated vesting period consistent with the terms of the arrangement (i.e. either on a straight-line or graded-vesting basis). | ||||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||||
Net Income (Loss) Per Common Share | ||||||||||||
The following table sets forth the computation of basic net income per common share and diluted net income per common share for the years ended March 31, 2014, 2013 and 2012. | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Numerator: | ||||||||||||
Income from continuing operations | $ | 18,564 | $ | 15,588 | $ | 16,229 | ||||||
Income (loss) from discontinued operations, net of tax | 205 | (361 | ) | (559 | ) | |||||||
Net income | $ | 18,769 | $ | 15,227 | $ | 15,670 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic income per common share | 9,389 | 9,562 | 9,728 | |||||||||
Effect of dilutive stock options | 47 | 6 | 4 | |||||||||
Adjusted weighted average shares outstanding for diluted income per common share | 9,436 | 9,568 | 9,732 | |||||||||
Basic: | ||||||||||||
Continuing operations | $ | 1.98 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 2 | $ | 1.59 | $ | 1.61 | ||||||
Diluted: | ||||||||||||
Continuing operations | $ | 1.97 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 1.99 | $ | 1.59 | $ | 1.61 | ||||||
Stock options on 151,000 shares, 182,000 shares, and 343,000 shares of common stock were not included in computing diluted net income per common share for the years ended March 31, 2014, 2013 and 2012, respectively, because their effects were antidilutive. | ||||||||||||
Statements of Cash Flows | ' | |||||||||||
Statements of Cash Flows | ||||||||||||
For purposes of the consolidated statements of cash flows, the Company considers all holdings of highly liquid investments with a maturity at time of purchase of three months or less to be cash equivalents. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this is the case, a more detailed two-step goodwill impairment test will need to be performed which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of ASU 2011-08 did not have a material impact on the Company’s financial condition, results of operations and cash flows. | ||||||||||||
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amends existing guidance by giving an entity the option to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If this is the case, a more detailed fair value calculation will need to be performed which is used to identify potential impairments and to measure the amount of impairment losses to be recognized, if any. To perform a qualitative assessment, an entity must identify and evaluate changes in economic, industry and entity-specific events and circumstances that could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. ASU 2012-02 is effective for annual and interim impairment tests performed by the Company for fiscal years beginning after September 15, 2012, with early adoption permitted. The Company adopted the provisions of ASU 2012-02 effective April 1, 2013. The adoption of ASU 2012-02 did not have a material impact on the Company’s future indefinite-lived intangibles impairment tests. | ||||||||||||
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). This update is intended to improve the comparability of statements of financial position prepared in accordance with U.S. GAAP and International Financial Reporting Standards, requiring both gross and net presentation of offsetting assets and liabilities. The new requirements are effective for fiscal years beginning on or after January 1, 2013, and for interim periods within those fiscal years. As this guidance only affects disclosures, the adoption of this standard did not have an impact on the Company’s financial condition, results of operations and cash flows. | ||||||||||||
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This update requires disclosure, either on the face of the statement where income is presented or in the notes to the financial statements, of significant amounts reclassified out of accumulated other comprehensive income in their entirety. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about these amounts. ASU 2013-02 is effective for annual and interim periods beginning after December 15, 2012. As this update only requires enhanced disclosure, the adoption of ASU 2013-02 did not impact the Company’s financial condition, results of operations and cash flows. | ||||||||||||
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Caryforward Exists (a consensus of the FASB Emerging Issues Task Force)" ("ASU 2013-11"), which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 does not require new recurring disclosures. It is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on the Company's financial condition, results of operations and cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Inventories | ' | |||||||||||
Inventories consisted of the following (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Raw material | $ | 9,366 | $ | 8,116 | ||||||||
Work-in-process | 14,418 | 14,687 | ||||||||||
Finished goods | 35,468 | 39,795 | ||||||||||
$ | 59,252 | $ | 62,598 | |||||||||
Property, plant and equipment | ' | |||||||||||
Property, plant and equipment are stated at cost and include the following (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Land | $ | 2,508 | $ | 2,508 | ||||||||
Buildings, leasehold interests and improvements | 37,183 | 37,007 | ||||||||||
Machinery, equipment and other | 93,928 | 101,916 | ||||||||||
133,619 | 141,431 | |||||||||||
Less – Accumulated depreciation and amortization | (106,556 | ) | (113,475 | ) | ||||||||
Net property, plant and equipment | $ | 27,063 | $ | 27,956 | ||||||||
Straight-line method and is based on estimated useful lives or terms of leases | ' | |||||||||||
Depreciation is provided generally on the straight-line method and is based on estimated useful lives or terms of leases as follows: | ||||||||||||
Buildings, leasehold interests and improvements | Lease term to 45 years | |||||||||||
Machinery, equipment and other | 3 to 15 years | |||||||||||
Summary of fair value of the foreign currency forward contracts designated as hedging instruments | ' | |||||||||||
The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s consolidated balance sheet as of March 31, 2014 and 2013 (in thousands): | ||||||||||||
Fair Value of Derivative Instruments | ||||||||||||
Balance Sheet | Fair Value as of March 31, | |||||||||||
Location | 2014 | 2013 | ||||||||||
Foreign currency forward contracts | Other current liabilities | $ | — | $ | 17 | |||||||
Computation of basic and diluted net income per common share | ' | |||||||||||
The following table sets forth the computation of basic net income per common share and diluted net income per common share for the years ended March 31, 2014, 2013 and 2012. | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Numerator: | ||||||||||||
Income from continuing operations | $ | 18,564 | $ | 15,588 | $ | 16,229 | ||||||
Income (loss) from discontinued operations, net of tax | 205 | (361 | ) | (559 | ) | |||||||
Net income | $ | 18,769 | $ | 15,227 | $ | 15,670 | ||||||
Denominator: | ||||||||||||
Weighted average shares outstanding for basic income per common share | 9,389 | 9,562 | 9,728 | |||||||||
Effect of dilutive stock options | 47 | 6 | 4 | |||||||||
Adjusted weighted average shares outstanding for diluted income per common share | 9,436 | 9,568 | 9,732 | |||||||||
Basic: | ||||||||||||
Continuing operations | $ | 1.98 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 2 | $ | 1.59 | $ | 1.61 | ||||||
Diluted: | ||||||||||||
Continuing operations | $ | 1.97 | $ | 1.63 | $ | 1.67 | ||||||
Discontinued operations | $ | 0.02 | $ | (0.04 | ) | $ | (0.06 | ) | ||||
Total | $ | 1.99 | $ | 1.59 | $ | 1.61 | ||||||
Supplemental schedule of cash flow information | ' | |||||||||||
Supplemental Schedule of Cash Flow Information | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 289 | $ | 245 | $ | 383 | ||||||
Income taxes | $ | 9,112 | $ | 9,770 | $ | 2,665 | ||||||
Discontinued_Operations_and_Re1
Discontinued Operations and Related Restructuring Charges (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Discontinued Operations and Related Restructuring Charges [Abstract] | ' | |||||||||||
Summarizes the major components of the charges incurred | ' | |||||||||||
The table below summarizes the major components of the charges incurred (in thousands): | ||||||||||||
Amount | Cash/Noncash | |||||||||||
Facility and staff costs | $ | 6,572 | Cash | |||||||||
Asset write-downs | 1,688 | Noncash | ||||||||||
Gain on sale of equipment | (825 | ) | Cash | |||||||||
Total | $ | 7,435 | ||||||||||
Restructuring reserve | ' | |||||||||||
Selected information relating to the aforementioned restructuring follows (in thousands): | ||||||||||||
Employee | Facility and | Total | ||||||||||
Termination | Other Costs | |||||||||||
Costs | ||||||||||||
Restructuring reserve as of March 31, 2012 | 750 | 80 | 830 | |||||||||
Cash paid – fiscal 2013 | (705 | ) | (30 | ) | (735 | ) | ||||||
Non-cash adjustments – fiscal 2013 | (45 | ) | (50 | ) | (95 | ) | ||||||
Restructuring reserve as of March 31, 2013 and 2014 | $ | — | $ | — | $ | — | ||||||
Operating Income of discontinued operations | ' | |||||||||||
As a result of the sale of its Christmas gift wrap business, the Company has reported these operations, including the operating income of the business and all exit activities, as discontinued operations, as shown in the following table (in thousands): | ||||||||||||
Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Operating loss (A) | $ | (11 | ) | $ | (6 | ) | $ | (903 | ) | |||
Exit costs | 128 | 95 | (6,572 | ) | ||||||||
Exit costs – equipment sale | — | — | 825 | |||||||||
Gain on sale of business to Impact | — | — | 5,849 | |||||||||
Discontinued operations, before income taxes | 117 | 89 | (801 | ) | ||||||||
Income tax (benefit) expense (B) | (88 | ) | 450 | (242 | ) | |||||||
Discontinued operations, net of tax | $ | 205 | $ | (361 | ) | $ | (559 | ) | ||||
(A) | During the quarter ended June 30, 2011, the Company recorded a write down of inventory to net realizable value of $2,547,000, which was included in cost of sales of the discontinued operation. During the quarter ended September 30, 2011, the Company was able to sell certain of the inventory written down during the quarter ended June 30, 2011 for amounts greater than its adjusted carrying value resulting in higher gross profit of $563,000 of the discontinued operation for the quarter ended September 30, 2011. | |||||||||||
(B) | Fiscal 2014 includes a $356,000 current income tax benefit offset by $268,000 deferred income tax provision. Fiscal 2013 includes a $1,496,000 current income tax provision offset by a $1,046,000 deferred income tax benefit. Fiscal 2012 includes a $5,787,000 current income tax benefit offset by a $5,545,000 deferred income tax provision. | |||||||||||
Carrying values of the major accounts of discontinued operations | ' | |||||||||||
The following table presents the carrying values of the major accounts of discontinued operations that are included in the March 31, 2014 and 2013 consolidated balance sheet (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, net | $ | 1 | $ | 2 | ||||||||
Total assets attributable to discontinued operations | $ | 1 | $ | 2 | ||||||||
Customer programs | $ | — | $ | 162 | ||||||||
Other current liabilities | 233 | 482 | ||||||||||
Total liabilities associated with discontinued operations | $ | 233 | $ | 644 | ||||||||
Disposition_of_Product_Line_Ta
Disposition of Product Line (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Schedule of the aforementioned restructuring | ' | |||||||||||||||
Selected information relating to the aforementioned restructuring follows (in thousands): | ||||||||||||||||
Employee | Facility | Professional | Total | |||||||||||||
Termination | Costs | Fees and | ||||||||||||||
Costs | Other Costs | |||||||||||||||
Initial restructuring reserve | $ | 1,282 | $ | 1,375 | $ | 1,341 | $ | 3,998 | ||||||||
Cash paid – fiscal 2013 | (734 | ) | (315 | ) | (852 | ) | (1,901 | ) | ||||||||
Non-cash adjustments – fiscal 2013 | 41 | (245 | ) | (6 | ) | (210 | ) | |||||||||
Restructuring reserve as of March 31, 2013 | 589 | 815 | 483 | 1,887 | ||||||||||||
Cash paid – fiscal 2014 | (516 | ) | (621 | ) | (114 | ) | (1,251 | ) | ||||||||
Non-cash adjustments – fiscal 2014 | (73 | ) | (82 | ) | (257 | ) | (412 | ) | ||||||||
Restructuring reserve as of March 31, 2014 | $ | — | $ | 112 | $ | 112 | $ | 224 | ||||||||
Goodwill_Other_Intangible_Asse1
Goodwill, Other Intangible Assets and Long-Lived Assets (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Summary of goodwill | ' | |||||||||||||||
The following table shows changes in goodwill for the fiscal year ended March 31, 2013. There were no changes to the goodwill balance during fiscal year 2014 (in thousands): | ||||||||||||||||
Balance as of March 31, 2012 | $ | 17,233 | ||||||||||||||
Reduction in goodwill | (2,711 | ) | ||||||||||||||
Balance as of March 31, 2013 and 2014 | $ | 14,522 | ||||||||||||||
Gross carrying value of intangible assets and accumulated amortization | ' | |||||||||||||||
The gross carrying amount and accumulated amortization of other intangible assets as of March 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Tradenames and trademarks | $ | 12,793 | $ | — | $ | 12,793 | $ | — | ||||||||
Customer relationships | 22,057 | 9,359 | 22,057 | 7,859 | ||||||||||||
Trademarks | 403 | 273 | 403 | 243 | ||||||||||||
Patents | 1,193 | 505 | 1,262 | 409 | ||||||||||||
$ | 36,446 | $ | 10,137 | $ | 36,515 | $ | 8,511 | |||||||||
Composition of intangibles and amortization expense | ' | |||||||||||||||
Amortization expense was $1,626,000 for fiscal 2014, $1,646,000 for fiscal 2013, and $1,683,000 for fiscal 2012. The estimated amortization expense for the next five fiscal years is as follows (in thousands): | ||||||||||||||||
Fiscal 2015 | $ | 1,628 | ||||||||||||||
Fiscal 2016 | 1,627 | |||||||||||||||
Fiscal 2017 | 1,627 | |||||||||||||||
Fiscal 2018 | 1,627 | |||||||||||||||
Fiscal 2019 | 1,627 | |||||||||||||||
ShareBased_Plans_Tables
Share-Based Plans (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of activity and related information pertaining to stock options | ' | ||||||||||||
Activity and related information pertaining to stock options for the years ended March 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||
of Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual Life | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at April 1, 2011 | 815,930 | $ | 26.43 | ||||||||||
Granted | 114,000 | 18.78 | |||||||||||
Exercised | (42,577 | ) | 16.7 | ||||||||||
Forfeited/canceled | (290,031 | ) | 28.31 | ||||||||||
Outstanding at March 31, 2012 | 597,322 | 24.75 | |||||||||||
Granted | 132,600 | 18.79 | |||||||||||
Exercised | (11,000 | ) | 17.47 | ||||||||||
Forfeited/canceled | (208,381 | ) | 31.32 | ||||||||||
Outstanding at March 31, 2013 | 510,541 | 20.68 | |||||||||||
Granted | 108,700 | 29.84 | |||||||||||
Exercised | (182,378 | ) | 20.03 | ||||||||||
Forfeited/canceled | (48,800 | ) | 23.87 | ||||||||||
Outstanding at March 31, 2014 | 388,063 | $ | 23.14 | 4.0 years | $ | 1,737 | |||||||
Exercisable at March 31, 2014 | 128,037 | $ | 23.17 | 2.2 years | $ | 592 | |||||||
Schedule of activity and related information pertaining to RSUs | ' | ||||||||||||
Activity and related information pertaining to RSUs for the years ended March 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
Number | Weighted Average | Weighted Average | |||||||||||
of RSUs | Fair Value | Contractual Life | |||||||||||
Outstanding at April 1, 2011 | 186,000 | $ | 17.8 | ||||||||||
Granted | 79,850 | 16.33 | |||||||||||
Vested | (10,825 | ) | 25.29 | ||||||||||
Forfeited/canceled | (37,015 | ) | 17.27 | ||||||||||
Outstanding at March 31, 2012 | 218,010 | 16.98 | |||||||||||
Granted | 70,800 | 14.78 | |||||||||||
Vested | (42,479 | ) | 18.75 | ||||||||||
Forfeited/canceled | (16,889 | ) | 16.24 | ||||||||||
Outstanding at March 31, 2013 | 229,442 | 16.02 | |||||||||||
Granted | 38,850 | 20.51 | |||||||||||
Vested | (59,517 | ) | 16.64 | ||||||||||
Forfeited/canceled | (15,950 | ) | 15.83 | ||||||||||
Outstanding at March 31, 2014 | 192,825 | $ | 16.75 | 4.7 years | |||||||||
Stock Options [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of the fair value of each stock option granted using Black-Scholes option pricing model | ' | ||||||||||||
The fair value of each stock option granted was estimated on the date of grant using either the Black-Scholes option pricing model (service-based awards) or a Monte Carlo simulation model (market-based awards) with the following average assumptions: | |||||||||||||
For the Years Ended March 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected dividend yield at time of grant | 2.02 | % | 2.92 | % | 3.21 | % | |||||||
Expected stock price volatility | 52 | % | 54 | % | 54 | % | |||||||
Risk-free interest rate | 0.94 | % | 0.61 | % | 2.14 | % | |||||||
Expected life of option (in years) | 4.8 | 5 | 5.1 | ||||||||||
Restricted Stock Units (RSUs) [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of the fair value of each stock option granted using Black-Scholes option pricing model | ' | ||||||||||||
The fair value of each market-based RSU granted during fiscal 2014 and 2013 was estimated on the date of grant using a Monte Carlo simulation model with the following assumptions: | |||||||||||||
For the Years Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected dividend yield at time of grant | 2.04 | % | 3.15 | % | |||||||||
Expected stock price volatility | 40 | % | 58 | % | |||||||||
Risk-free interest rate | 0.66 | % | 0.58 | % |
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
Schedule of reconciliation of the benefit obligation for the postretirement medical plan | ' | |||||||
The following table provides a reconciliation of the benefit obligation for the postretirement medical plan (in thousands): | ||||||||
For the Years Ended March 31, | ||||||||
2014 | 2013 | |||||||
Benefit obligation at beginning of year | $ | 871 | $ | 877 | ||||
Interest cost | 36 | 38 | ||||||
Actuarial (gain) loss | (30 | ) | 24 | |||||
Benefits paid | (73 | ) | (68 | ) | ||||
Benefit obligation at end of year | $ | 804 | $ | 871 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income (Loss) from continuing operations before income tax | ' | |||||||||||
Income from continuing operations before income tax expense was as follows (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 18,112 | $ | 13,468 | $ | 19,262 | ||||||
Foreign | 9,588 | 9,169 | 5,983 | |||||||||
$ | 27,700 | $ | 22,637 | $ | 25,245 | |||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
The following table summarizes the provision for U.S. federal, state and foreign taxes on income from continuing operations (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 4,830 | $ | 7,871 | $ | 7,296 | ||||||
State | 481 | 876 | 726 | |||||||||
Foreign | 1,582 | 1,513 | 987 | |||||||||
6,893 | 10,260 | 9,009 | ||||||||||
Deferred: | ||||||||||||
Federal | 1,978 | (1,917 | ) | (63 | ) | |||||||
State | 265 | (1,294 | ) | 70 | ||||||||
2,243 | (3,211 | ) | 7 | |||||||||
$ | 9,136 | $ | 7,049 | $ | 9,016 | |||||||
Effective federal income tax rates on income (Loss) from continuing operation before income tax | ' | |||||||||||
The differences between the statutory and effective federal income tax rates on income from continuing operations before income taxes were as follows: | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, less federal benefit | 1.9 | 1.4 | 2.1 | |||||||||
Changes in tax reserves and valuation allowance | 1.6 | (3.1 | ) | 0.1 | ||||||||
Nondeductible goodwill | — | 2.5 | — | |||||||||
Permanent book/tax differences (primarily §199 deduction) | (2.2 | ) | (1.6 | ) | (0.7 | ) | ||||||
Other, net | (3.3 | ) | (3.1 | ) | (0.8 | ) | ||||||
33 | % | 31.1 | % | 35.7 | % | |||||||
Net deferred income tax assets (liabilities) | ' | |||||||||||
The following temporary differences gave rise to net deferred income tax assets (liabilities) as of March 31, 2014 and 2013 (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Accounts receivable | $ | 196 | $ | 332 | ||||||||
Inventories | 2,852 | 2,806 | ||||||||||
Accrued expenses | 3,093 | 3,016 | ||||||||||
State net operating loss and credit carryforwards | 6,031 | 5,992 | ||||||||||
Share-based compensation | 1,718 | 1,861 | ||||||||||
Intangibles | 2,110 | 3,031 | ||||||||||
16,000 | 17,038 | |||||||||||
Valuation allowance | (5,815 | ) | (5,467 | ) | ||||||||
10,185 | 11,571 | |||||||||||
Deferred income tax liabilities: | ||||||||||||
Property, plant and equipment | 1,248 | 1,823 | ||||||||||
Unremitted earnings of foreign subsidiaries | 2,308 | 986 | ||||||||||
Other | 250 | 268 | ||||||||||
3,806 | 3,077 | |||||||||||
Net deferred income tax asset | $ | 6,379 | $ | 8,494 | ||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross unrecognized tax benefits at April 1 | $ | 1,276 | $ | 1,108 | ||||||||
Additions based on tax positions related to the current year | 162 | 168 | ||||||||||
Gross unrecognized tax benefits at March 31 | $ | 1,438 | $ | 1,276 | ||||||||
Revolving_Credit_Facility_Tabl
Revolving Credit Facility (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Summary of maximum credit available to the company on a periodic basis | ' | ||||
The facility expires on March 17, 2016 and provides for a revolving line of credit under which the maximum credit available to the Company at any one time automatically adjusts upwards and downwards on a periodic basis among “low”, “medium” and “high” levels (each a “Commitment Level”), as follows: | |||||
Commitment Period Description | Commitment Period Time Frame | Commitment Level | |||
Low | February 1 to June 30 (5 months) | $50,000,000 | |||
Medium | July 1 to October 31 (4 months) | $100,000,000 | |||
High | November 1 to January 31 (3 months) | $150,000,000 |
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | |||
Mar. 31, 2014 | ||||
Leases [Abstract] | ' | |||
Summary of future minimum rental payments | ' | |||
The Company maintains various lease arrangements for property and equipment. The future minimum rental payments associated with all non-cancelable lease obligations are as follows (in thousands): | ||||
2015 | $ | 4,760 | ||
2016 | 2,517 | |||
2017 | 1,001 | |||
2018 | 1,001 | |||
2019 | 298 | |||
Thereafter | 62 | |||
Total | $ | 9,639 | ||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||
The following table presents the Company’s fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis in its consolidated balance sheet as of March 31, 2014 and 2013. | ||||||||||||||||
31-Mar-14 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
Cash surrender value of life insurance policies | 1,079 | — | 1,079 | — | ||||||||||||
Total assets | $ | 1,861 | $ | 782 | $ | 1,079 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plans | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
Total liabilities | $ | 782 | $ | 782 | $ | — | $ | — | ||||||||
31-Mar-13 | Quoted Prices | Significant | Significant | |||||||||||||
In Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||
Cash surrender value of life insurance policies | 1,040 | — | 1,040 | — | ||||||||||||
Total assets | $ | 1,718 | $ | 678 | $ | 1,040 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Deferred compensation plans | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||
Foreign exchange contract | 17 | — | 17 | — | ||||||||||||
Total liabilities | $ | 695 | $ | 678 | $ | 17 | $ | — | ||||||||
Segment_Disclosure_Tables
Segment Disclosure (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenues from its various products | ' | |||||||||||
The Company’s detail of revenues from its various products is as follows (in thousands): | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
All occasion | $ | 195,147 | $ | 203,668 | $ | 206,175 | ||||||
Christmas | 100,533 | 105,466 | 123,001 | |||||||||
Other seasonal | 24,779 | 55,059 | 55,487 | |||||||||
Total | $ | 320,459 | $ | 364,193 | $ | 384,663 | ||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
2014 | Quarters | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 47,117 | $ | 112,487 | $ | 106,295 | $ | 54,560 | ||||||||
Gross profit | $ | 14,459 | $ | 36,727 | $ | 36,266 | $ | 15,704 | ||||||||
(Loss) income from continuing operations | $ | (1,667 | ) | $ | 10,846 | $ | 10,988 | $ | (1,603 | ) | ||||||
(Loss) income from discontinued operations, net of tax | $ | — | $ | 112 | $ | 19 | $ | 74 | ||||||||
Net (loss) income | $ | (1,667 | ) | $ | 10,958 | $ | 11,007 | $ | (1,529 | ) | ||||||
Net (loss) income per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | 1.15 | $ | 1.18 | $ | (0.17 | ) | ||||||
Discontinued operations | $ | — | $ | 0.01 | $ | — | $ | 0.01 | ||||||||
Total (1) (2) | $ | (0.18 | ) | $ | 1.16 | $ | 1.18 | $ | (0.16 | ) | ||||||
Diluted: | ||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | 1.14 | $ | 1.18 | $ | (0.17 | ) | ||||||
Discontinued operations | $ | — | $ | 0.01 | $ | — | $ | 0.01 | ||||||||
Total (1) (2) | $ | (0.18 | ) | $ | 1.16 | $ | 1.18 | $ | (0.16 | ) | ||||||
2013 | Quarters | |||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 61,067 | $ | 133,485 | $ | 116,020 | $ | 53,621 | ||||||||
Gross profit | $ | 17,198 | $ | 40,831 | $ | 37,613 | $ | 13,449 | ||||||||
(Loss) income from continuing operations | $ | (867 | ) | $ | 6,840 | $ | 11,600 | $ | (1,985 | ) | ||||||
(Loss) income from discontinued operations, net of tax | $ | (37 | ) | $ | 81 | $ | 11 | $ | (416 | ) | ||||||
Net (loss) income | $ | (904 | ) | $ | 6,921 | $ | 11,611 | $ | (2,401 | ) | ||||||
Net (loss) income per common share: | ||||||||||||||||
Basic: | ||||||||||||||||
Continuing operations (1) | $ | (0.09 | ) | $ | 0.71 | $ | 1.21 | $ | (0.21 | ) | ||||||
Discontinued operations (1) | $ | — | $ | 0.01 | $ | — | $ | (0.04 | ) | |||||||
Total (1) (2) | $ | (0.09 | ) | $ | 0.72 | $ | 1.22 | $ | (0.25 | ) | ||||||
Diluted: | ||||||||||||||||
Continuing operations (1) | $ | (0.09 | ) | $ | 0.71 | $ | 1.21 | $ | (0.21 | ) | ||||||
Discontinued operations (1) | $ | — | $ | 0.01 | $ | — | $ | (0.04 | ) | |||||||
Total (1) (2) | $ | (0.09 | ) | $ | 0.72 | $ | 1.22 | $ | (0.25 | ) | ||||||
-1 | Net (loss) income per common share amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year. | |||||||||||||||
-2 | Total net (loss) income per common share may not foot due to rounding. |
Recovered_Sheet1
Summary Of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw material | $9,366 | $8,116 |
Work-in-process | 14,418 | 14,687 |
Finished goods | 35,468 | 39,795 |
Inventory, net | $59,252 | $62,598 |
Recovered_Sheet2
Summary Of Significant Accounting Policies (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $133,619 | $141,431 |
Less – Accumulated depreciation and amortization | -106,556 | -113,475 |
Net property, plant and equipment | 27,063 | 27,956 |
Land [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 2,508 | 2,508 |
Buildings, leasehold interests and improvements [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 37,183 | 37,007 |
Machinery, equipment and other [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $93,928 | $101,916 |
Recovered_Sheet3
Summary Of Significant Accounting Policies (Details 2) | 12 Months Ended |
Mar. 31, 2014 | |
Buildings, leasehold interests and improvements [Member] | ' |
Straight-line method and is based on estimated useful lives or terms of leases | ' |
Estimated useful lives | 'Lease term to 45 years |
Buildings, leasehold interests and improvements [Member] | Maximum [Member] | ' |
Straight-line method and is based on estimated useful lives or terms of leases | ' |
Useful life | '45 years |
Machinery, equipment and other [Member] | Minimum [Member] | ' |
Straight-line method and is based on estimated useful lives or terms of leases | ' |
Useful life | '3 years |
Machinery, equipment and other [Member] | Maximum [Member] | ' |
Straight-line method and is based on estimated useful lives or terms of leases | ' |
Useful life | '15 years |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Details 3) (Other Current Liabilities [Member], Foreign currency forward contracts [Member], USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Member] | Foreign currency forward contracts [Member] | ' | ' |
Summary of fair value of the foreign currency forward contracts designated as hedging instruments | ' | ' |
Fair Value of Derivative Instruments | $0 | $17 |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | ($1,603) | $10,988 | $10,846 | ($1,667) | ($1,985) | $11,600 | $6,840 | ($867) | $18,564 | $15,588 | $16,229 |
Income (loss) from discontinued operations, net of tax | 74 | 19 | 112 | 0 | -416 | 11 | 81 | -37 | 205 | -361 | -559 |
Net income | ($1,529) | $11,007 | $10,958 | ($1,667) | ($2,401) | $11,611 | $6,921 | ($904) | $18,769 | $15,227 | $15,670 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding for basic income per common share | ' | ' | ' | ' | ' | ' | ' | ' | 9,389 | 9,562 | 9,728 |
Effect of dilutive stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 47 | 6 | 4 |
Adjusted weighted average shares outstanding for diluted income per common share | ' | ' | ' | ' | ' | ' | ' | ' | 9,436 | 9,568 | 9,732 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | ($0.17) | $1.18 | $1.15 | ($0.18) | ($0.21) | $1.21 | $0.71 | ($0.09) | $1.98 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.01 | $0 | $0.01 | $0 | ($0.04) | $0 | $0.01 | $0 | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | ($0.16) | $1.18 | $1.16 | ($0.18) | ($0.25) | $1.22 | $0.72 | ($0.09) | $2 | $1.59 | $1.61 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | ($0.17) | $1.18 | $1.14 | ($0.18) | ($0.21) | $1.21 | $0.71 | ($0.09) | $1.97 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.01 | $0 | $0.01 | $0 | ($0.04) | $0 | $0.01 | $0 | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | ($0.16) | $1.18 | $1.16 | ($0.18) | ($0.25) | $1.22 | $0.72 | ($0.09) | $1.99 | $1.59 | $1.61 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Cash paid during the year for: | ' | ' | ' |
Interest | $289 | $245 | $383 |
Income taxes | $9,112 | $9,770 | $2,665 |
Summary_Of_Significant_Account6
Summary Of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2012 | Sep. 05, 2012 | Mar. 31, 2014 | |
Employees | Foreign exchange contract [Member] | Foreign exchange contract [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Sale of Halloween portion of PMG's business [Member] | Sale of Halloween portion of PMG's business [Member] | Paper Magic Assets Group [Member] | |||
store | contract | Other Seasonal [Member] | All Occasion [Member] | Other Seasonal [Member] | All Occasion [Member] | |||||||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warehousing facilities | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales price paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,281,000 | ' |
Incurred transaction cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 523,000 | ' | ' |
Yielding net proceeds | 0 | 1,758,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employee represented by labor union | 95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employee employed by the entity | 1,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of seasonal employees | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-to-maturity short-term investments | 29,862,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIFO inventory amount | 465,000 | 641,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FIFO inventory amount | ' | ' | ' | ' | ' | 820,000 | 851,000 | ' | ' | ' | ' | ' | ' | ' |
Computer equipment under capital leases | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | 5,917,000 | 5,948,000 | 6,197,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,711,000 |
Realized gains and (losses) | ' | ' | ' | 123,000 | -40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Open forward exchange contracts | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts | ' | ' | ' | ' | 187,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency forward contracts unrealized gain (loss) | ' | ' | ' | ' | -17,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | 92,000 | 342,000 | 223,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 283,000 | 291,000 | 418,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for which production cost capitalized | ' | ' | ' | ' | ' | ' | ' | '18 months | '6 months | '20 months | '9 months | ' | ' | ' |
Selling season in which production capitalized cost amortized | ' | ' | ' | ' | ' | ' | ' | '2 months | '6 months | '4 months | '12 months | ' | ' | ' |
Product development costs capitalized | 3,778,000 | 3,481,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product development expense | $5,716,000 | $6,785,000 | $8,222,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effects of antidilutive securities excluded from computation of net income per share | 151,000 | 182,000 | 343,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued_Operations_and_Re2
Discontinued Operations and Related Restructuring Charges (Details) (Cleo Manufacturing Facility [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2012 |
Summarizes the major components of the charges incurred | ' |
Total | $8,141 |
Discontinued Operation [Member] | ' |
Summarizes the major components of the charges incurred | ' |
Total | 7,435 |
Cash [Member] | ' |
Summarizes the major components of the charges incurred | ' |
Facility and staff costs | 6,572 |
Gain on sale of equipment | -825 |
Noncash [Member] | ' |
Summarizes the major components of the charges incurred | ' |
Asset write-downs | $1,688 |
Discontinued_Operations_and_Re3
Discontinued Operations and Related Restructuring Charges (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 |
Restructuring reserve | ' | ' |
Restructuring reserve, beginning balance | $830 | $0 |
Cash paid | -735 | ' |
Non-cash adjustments | -95 | ' |
Restructuring reserve, ending balance | 0 | 0 |
Employee Termination Costs [Member] | ' | ' |
Restructuring reserve | ' | ' |
Restructuring reserve, beginning balance | 750 | 0 |
Cash paid | -705 | ' |
Non-cash adjustments | -45 | ' |
Restructuring reserve, ending balance | 0 | 0 |
Facility and Other Costs [Member] | ' | ' |
Restructuring reserve | ' | ' |
Restructuring reserve, beginning balance | 80 | 0 |
Cash paid | -30 | ' |
Non-cash adjustments | -50 | ' |
Restructuring reserve, ending balance | $0 | $0 |
Discontinued_Operations_and_Re4
Discontinued Operations and Related Restructuring Charges (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Operating Income of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss (A) | ' | ' | ' | ' | ' | ' | ' | ' | ($11) | ($6) | ($903) |
Exit costs | ' | ' | ' | ' | ' | ' | ' | ' | 128 | 95 | -6,572 |
Exit costs – equipment sale | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 825 |
Gain on sale of business to Impact | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 5,849 |
Discontinued operations, before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 117 | 89 | -801 |
Income tax (benefit) expense (B) | ' | ' | ' | ' | ' | ' | ' | ' | -88 | 450 | -242 |
Discontinued operations, net of tax | $74 | $19 | $112 | $0 | ($416) | $11 | $81 | ($37) | $205 | ($361) | ($559) |
Discontinued_Operations_and_Re5
Discontinued Operations and Related Restructuring Charges (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying values of assets and liabilities of discontinued operations | ' | ' |
Accounts receivable, net | $1 | $2 |
Total assets attributable to discontinued operations | 1 | 2 |
Customer programs | 0 | 162 |
Other current liabilities | 233 | 482 |
Total liabilities associated with discontinued operations | $233 | $644 |
Discontinued_Operations_and_Re6
Discontinued Operations and Related Restructuring Charges (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 01, 2014 | Mar. 01, 2013 | Mar. 01, 2012 | Sep. 09, 2011 | |
employee | ||||||||||
Discontinued Operations and Related Restructuring Charges (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance of Employees | ' | ' | ' | ' | ' | 433 | ' | ' | ' | ' |
Non-cash reduction related to severance | ' | ' | ' | ' | ' | $177,000 | ' | ' | ' | ' |
Cash payment for new company | ' | ' | ' | ' | 735,000 | ' | ' | ' | ' | ' |
Increase (reduction) in the restructuring accrual | ' | ' | ' | ' | -95,000 | ' | ' | ' | ' | ' |
Purchase price of new company | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 |
Cash payment for new company | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of promissory note | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' |
Principal payments of promissory note | ' | ' | ' | ' | ' | ' | 500,000 | 2,500,000 | 500,000 | ' |
Advance Principal Payment | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Pre Tax gain from discontinued operations | ' | ' | ' | 0 | 0 | 5,849,000 | ' | ' | ' | ' |
Write down Inventory | ' | ' | 2,547,000 | ' | ' | ' | ' | ' | ' | ' |
Discontinued operation gross profit | ' | 563,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cleo Manufacturing Facility [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operations and Related Restructuring Charges (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | 8,141,000 | ' | ' | ' | ' |
Pre-tax restructuring charges | ' | ' | ' | ' | ' | 6,749,000 | ' | ' | ' | ' |
Cash payment for new company | ' | ' | ' | ' | ' | 884,000 | ' | ' | ' | ' |
Proceeds from Sale of equipment | ' | ' | ' | ' | ' | 825,000 | ' | ' | ' | ' |
Cleo Asset Group [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operations and Related Restructuring Charges (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax provision (benefit) offset | ' | ' | ' | -356,000 | 1,496,000 | -5,787,000 | ' | ' | ' | ' |
Deferred tax (benefit) provision | ' | ' | ' | 268,000 | -1,046,000 | 5,545,000 | ' | ' | ' | ' |
Discontinued Operation [Member] | Cleo Manufacturing Facility [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operations and Related Restructuring Charges (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | 7,435,000 | ' | ' | ' | ' |
Continued Operation [Member] | Cleo Manufacturing Facility [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operations and Related Restructuring Charges (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | $706,000 | ' | ' | ' | ' |
Business_Restructuring_Details
Business Restructuring (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Apr. 30, 2013 | Mar. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Subsidiaries [Member] | Consolidated Subsidiaries [Member] | Employee Severance [Member] | Employee Severance [Member] | Employee Severance [Member] | ||
Consolidated Subsidiaries [Member] | Consolidated Subsidiaries [Member] | |||||
Business Restructuring (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Employee severance charges | ' | ' | $706 | ' | ' | ' |
Restructuring payments | 735 | 13 | ' | 705 | 523 | 116 |
Increase (Decrease) in restructuring accrual related to severance costs | ($95) | ' | ' | ' | ($54) | ' |
Disposition_of_Product_Line_De
Disposition of Product Line (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | ' | $830 |
Cash paid | ' | -735 |
Restructuring reserve, ending balance | 0 | 0 |
Sale of Halloween portion of PMG's business [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | 1,887 | 3,998 |
Cash paid | -1,251 | -1,901 |
Non-cash adjustments | -412 | -210 |
Restructuring reserve, ending balance | 224 | 1,887 |
Employee Termination Costs [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | ' | 750 |
Cash paid | ' | -705 |
Restructuring reserve, ending balance | 0 | 0 |
Employee Termination Costs [Member] | Sale of Halloween portion of PMG's business [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | 589 | 1,282 |
Cash paid | -516 | -734 |
Non-cash adjustments | -73 | 41 |
Restructuring reserve, ending balance | 0 | 589 |
Facility Costs [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | ' | 80 |
Cash paid | ' | -30 |
Restructuring reserve, ending balance | 0 | 0 |
Facility Costs [Member] | Sale of Halloween portion of PMG's business [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | 815 | 1,375 |
Cash paid | -621 | -315 |
Non-cash adjustments | -82 | -245 |
Restructuring reserve, ending balance | 112 | 815 |
Professional Fees and Other Costs [Member] | Sale of Halloween portion of PMG's business [Member] | ' | ' |
Schedule of the aforementioned restructuring | ' | ' |
Restructuring reserve, beginning balance | 483 | 1,341 |
Cash paid | -114 | -852 |
Non-cash adjustments | -257 | -6 |
Restructuring reserve, ending balance | $112 | $483 |
Disposition_of_Product_Line_De1
Disposition of Product Line (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Sep. 05, 2012 |
Sale of Halloween portion of PMG's business [Member] | Sale of Halloween portion of PMG's business [Member] | Sale of Halloween portion of PMG's business [Member] | Sale of Halloween portion of PMG's business [Member] | Sale of Halloween portion of PMG's business [Member] | |||||||||
employee | |||||||||||||
Disposition of Product Line (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale price of business portion sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,281 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 5,368 | ' | ' | ' | ' |
Severance of employees | ' | ' | ' | ' | ' | ' | ' | ' | 49 | ' | ' | ' | ' |
Severance of employees cost | ' | ' | 6,764 | ' | ' | ' | ' | ' | 1,282 | ' | ' | ' | ' |
Facility closure costs | ' | ' | ' | ' | ' | -128 | -95 | 6,572 | 1,375 | ' | ' | ' | ' |
Professional fees related with sale of business | ' | ' | ' | ' | ' | ' | ' | ' | 1,341 | ' | ' | ' | ' |
Incurred transaction cost | ' | ' | ' | ' | ' | ' | ' | ' | 523 | ' | ' | ' | ' |
Non-cash write-down of assets related with sale of business | ' | ' | ' | ' | ' | ' | ' | ' | 1,370 | ' | ' | ' | ' |
Reduction of goodwill from disposition of product line | 0 | 0 | ' | 0 | ' | 0 | 2,711 | 0 | 2,711 | ' | ' | ' | ' |
Non-cash charge related to write-down of inventory | ' | ' | ' | ' | 2,547 | ' | ' | ' | 1,266 | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,366 | 30,914 | 31,156 | ' |
Company made payments related to restructuring | ' | ' | ' | ' | ' | ' | 735 | ' | ' | 1,251 | 1,901 | ' | ' |
Other adjustment for company payment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | -412 | -210 | ' | ' |
Remaining liability related with current liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117 | ' | ' | ' |
Remaining liability related with long term obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | $107 | ' | ' | ' |
Goodwill_Other_Intangible_Asse2
Goodwill, Other Intangible Assets and Long-Lived Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Summary of goodwill | ' | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | ' | ' | ' | $14,522 | $17,233 | ' |
Reduction in goodwill | 0 | 0 | 0 | 0 | -2,711 | 0 |
Goodwill, Ending Balance | $14,522 | $14,522 | $17,233 | $14,522 | $14,522 | $17,233 |
Goodwill_Other_Intangible_Asse3
Goodwill, Other Intangible Assets and Long-Lived Assets (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gross carrying value of intangible assets and accumulated amortization | ' | ' |
Gross Carrying Amount | $36,446 | $36,515 |
Accumulated Amortization | 10,137 | 8,511 |
Tradenames and trademarks [Member] | ' | ' |
Gross carrying value of intangible assets and accumulated amortization | ' | ' |
Gross Carrying Amount | 12,793 | 12,793 |
Accumulated Amortization | 0 | 0 |
Customer relationships [Member] | ' | ' |
Gross carrying value of intangible assets and accumulated amortization | ' | ' |
Gross Carrying Amount | 22,057 | 22,057 |
Accumulated Amortization | 9,359 | 7,859 |
Trademarks [Member] | ' | ' |
Gross carrying value of intangible assets and accumulated amortization | ' | ' |
Gross Carrying Amount | 403 | 403 |
Accumulated Amortization | 273 | 243 |
Patents [Member] | ' | ' |
Gross carrying value of intangible assets and accumulated amortization | ' | ' |
Gross Carrying Amount | 1,193 | 1,262 |
Accumulated Amortization | $505 | $409 |
Goodwill_Other_Intangible_Asse4
Goodwill, Other Intangible Assets and Long-Lived Assets (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Composition of intangibles and amortization expense | ' |
Fiscal 2015 | $1,628 |
Fiscal 2016 | 1,627 |
Fiscal 2017 | 1,627 |
Fiscal 2018 | 1,627 |
Fiscal 2019 | $1,627 |
Goodwill_Other_Intangible_Asse5
Goodwill, Other Intangible Assets and Long-Lived Assets (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2012 |
Customer Relationships [Member] | Trademarks [Member] | Patents [Member] | Sale of Halloween portion of PMG's business [Member] | |||||||
Goodwill, Other Intangible Assets and Long Lived Assets (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of goodwill | $0 | $0 | $0 | $0 | $2,711 | $0 | ' | ' | ' | $2,711 |
Increase (Decrease) in patents | ' | ' | ' | -69 | -39 | ' | ' | ' | ' | ' |
Royalty earn out percentage | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Weighted-average amortization period | ' | ' | ' | ' | ' | ' | '12 years | '10 years | '10 years | ' |
Amortization expense | ' | ' | ' | 1,626 | 1,646 | 1,683 | ' | ' | ' | ' |
Impairment of tangible assets | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Treasury_Stock_Transactions_De
Treasury Stock Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 11, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
director | ||||
Treasury Stock Transactions (Textual) [Abstract] | ' | ' | ' | ' |
Number of shares repurchased of the company's common stock | 80,000 | 272,655 | 251,180 | 88,210 |
Number of Independent Directors | 4 | ' | ' | ' |
Stock repurchase, price per share | $20 | ' | ' | ' |
Value of shares repurchased of the company's common stock | $1,600 | $6,634 | $4,864 | $1,648 |
Remaining shares available for repurchase under the Board's authorization | ' | 200,955 | ' | ' |
ShareBased_Plans_Details
Share-Based Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Number of Options [Roll Forward] | ' | ' | ' |
Outstanding, Number of Options, Beginning Balance (in shares) | 510,541 | 597,322 | 815,930 |
Granted, Number of Options (in shares) | 108,700 | 132,600 | 114,000 |
Exercised, Number of Options (in shares) | -182,378 | -11,000 | -42,577 |
Forfeited/canceled, Number of Options (in shares) | -48,800 | -208,381 | -290,031 |
Outstanding, Number of Options, Ending Balance (in shares) | 388,063 | 510,541 | 597,322 |
Exercisable, Number of Options (in shares) | 128,037 | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Outstanding, Weighted Average Exercise Price Beginning Balance (in dollars per share) | $20.68 | $24.75 | $26.43 |
Granted, Weighted Average Exercise Price (in dollars per share) | $29.84 | $18.79 | $18.78 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $20.03 | $17.47 | $16.70 |
Forfeited/canceled, Weighted Average Exercise Price (in dollars per share) | $23.87 | $31.32 | $28.31 |
Outstanding, Weighted Average Exercise Price Ending Balance (in dollars per share) | $23.14 | $20.68 | $24.75 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $23.17 | ' | ' |
Outstanding, Weighted Average Remaining Contractual Life | '4 years | ' | ' |
Exercisable, Weighted Average Remaining Contractual Life | '2 years 2 months 12 days | ' | ' |
Outstanding, Aggregate Intrinsic Value | $1,737 | ' | ' |
Exercisable, Aggregate Intrinsic Value | $592 | ' | ' |
ShareBased_Plans_Details_1
Share-Based Plans (Details 1) (Stock Options [Member]) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Stock Options [Member] | ' | ' | ' |
Schedule of the fair value of each stock option granted | ' | ' | ' |
Expected dividend yield at time of grant | 2.02% | 2.92% | 3.21% |
Expected stock price volatility | 52.00% | 54.00% | 54.00% |
Risk-free interest rate | 0.94% | 0.61% | 2.14% |
Expected life of option (in years) | '4 years 9 months 18 days | '5 years | '5 years 1 month 6 days |
ShareBased_Plans_Details_2
Share-Based Plans (Details 2) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Number of RSUs | ' | ' | ' |
Number of RSUs Outstanding, Beginning Balance (in shares) | 229,442 | 218,010 | 186,000 |
Number of RSUs Granted (in shares) | 38,850 | 70,800 | 79,850 |
Number of RSUs Vested (in shares) | -59,517 | -42,479 | -10,825 |
Number of RSUs Forfeited/canceled (in shares) | -15,950 | -16,889 | -37,015 |
Number of RSUs Outstanding, Ending Balance (in shares) | 192,825 | 229,442 | 218,010 |
Weighted Average Fair Value | ' | ' | ' |
Weighted Average Fair Value Outstanding, Beginning Balance (in dollars per share) | $16.02 | $16.98 | $17.80 |
Weighted Average Fair Value, Granted (in dollars per share) | $20.51 | $14.78 | $16.33 |
Weighted Average Fair Value, Vested (in dollars per share) | $16.64 | $18.75 | $25.29 |
Weighted Average Fair Value, Forfeited/canceled (in dollars per share) | $15.83 | $16.24 | $17.27 |
Weighted Average Fair Value Outstanding, Ending Balance (in dollars per share) | $16.75 | $16.02 | $16.98 |
Weighted Average Contractual Life | '4 years 8 months 12 days | ' | ' |
ShareBased_Plans_Details_3
Share-Based Plans (Details 3) (Restricted Stock Units (RSUs) [Member]) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected dividend yield at time of grant | 2.04% | 3.15% |
Expected stock price volatility | 40.00% | 58.00% |
Risk-free interest rate | 0.66% | 0.58% |
ShareBased_Plans_Details_Textu
Share-Based Plans (Details Textual) (USD $) | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2010 | Mar. 31, 2009 | Mar. 31, 2008 | Mar. 31, 2007 | |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | 388,063 | 510,541 | 597,322 | 815,930 | ' | ' | ' | ' |
Share-based compensation expense | $1,843,000 | $1,783,000 | $1,683,000 | ' | ' | ' | ' | ' |
Share-based compensation expense overstated | ' | ' | 128,000 | 184,000 | 339,000 | 351,000 | 337,000 | 388,000 |
Retained earnings | ' | 1,727,000 | ' | ' | ' | ' | ' | ' |
Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 1,008,000 | 857,000 | 869,000 | ' | ' | ' | ' | ' |
Recognized tax benefit | 375,000 | 310,000 | 313,000 | ' | ' | ' | ' | ' |
Weighted average fair value of stock options granted | $11.19 | $7.30 | $6.87 | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | 1,606,000 | 25,000 | 174,000 | ' | ' | ' | ' | ' |
Fair value of stock options vested | 667,000 | 544,000 | 775,000 | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested stock option awards | 1,215,000 | ' | ' | ' | ' | ' | ' | ' |
Equity incentive plan recognized over a weighted average period | '2 years 2 months 1 day | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 835,000 | 926,000 | 814,000 | ' | ' | ' | ' | ' |
Recognized tax benefit | 311,000 | 335,000 | 293,000 | ' | ' | ' | ' | ' |
Equity incentive plan recognized over a weighted average period | '2 years | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock units vested | 990,000 | 797,000 | 298,000 | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to non-vested RSUs | $1,200,000 | ' | ' | ' | ' | ' | ' | ' |
2013 Stock Compensation Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option plan | '2013 Plan | ' | ' | ' | ' | ' | ' | ' |
Term of grant | '10 years | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | 1,132,950 | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | 0 | ' | ' | ' | ' | ' | ' | ' |
2004 Equity Compensation Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option plan | '2004 Plan | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock option exercisable per year | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Option Exercisable Period After Grant Date | '1 year | ' | ' | ' | ' | ' | ' | ' |
Outstanding RSUs vesting percentage | 50.00% | ' | ' | ' | ' | ' | ' | ' |
2011 Stock Option Plan for Non-Employee Directors [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option plan | '2011 Plan | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | 101,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock option exercisable per year | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Option Exercisable Period After Grant Date | '1 year | ' | ' | ' | ' | ' | ' | ' |
Issue of common stock under ESOP | 150,000 | ' | ' | ' | ' | ' | ' | ' |
Company's common stock granted to non-employee director | 4,000 | ' | ' | ' | ' | ' | ' | ' |
Expiry period of option | '5 years | ' | ' | ' | ' | ' | ' | ' |
Retirement_Benefit_Plans_Detai
Retirement Benefit Plans (Details) (Postretirement Medical Plan [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Postretirement Medical Plan [Member] | ' | ' |
Schedule of reconciliation of the benefit obligation for the postretirement medical plan | ' | ' |
Benefit obligation at beginning of year | $871 | $877 |
Interest cost | 36 | 38 |
Actuarial (gain) loss | -30 | 24 |
Benefits paid | -73 | -68 |
Benefit obligation at end of year | $804 | $871 |
Retirement_Benefit_Plans_Detai1
Retirement Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Retirement benefit plans expense | $689,000 | $703,000 | $412,000 |
Net gain (loss) recognized in accumulated other comprehensive loss Net Of Tax | -26,000 | ' | ' |
Expected Actuarial gain or (loss) | 0 | ' | ' |
Net periodic benefit cost and obligation discount rate | 4.50% | 4.25% | 4.50% |
Assumed health care cost trend rates | 9.00% | 10.00% | 11.00% |
Assumed health care cost trending down ultimate rate | 5.00% | ' | ' |
Net periodic pension and postretirement medical costs | 36,000 | 38,000 | 48,000 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Other long- term benefit obligation | 804,000 | 871,000 | 877,000 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | Other Long term obligation [Member] | ' | ' | ' |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Other long- term benefit obligation | $804,000 | $871,000 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income (loss) from continuing operations before income tax expense | ' | ' | ' |
United States | $18,112 | $13,468 | $19,262 |
Foreign | 9,588 | 9,169 | 5,983 |
Income from continuing operations before income taxes | $27,700 | $22,637 | $25,245 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Current: | ' | ' | ' |
Federal | $4,830 | $7,871 | $7,296 |
State | 481 | 876 | 726 |
Foreign | 1,582 | 1,513 | 987 |
Current Income Tax Expense (Benefit), Total | 6,893 | 10,260 | 9,009 |
Deferred: | ' | ' | ' |
Federal | 1,978 | -1,917 | -63 |
State | 265 | -1,294 | 70 |
Deferred Income Tax Expense (Benefit), Total | 2,243 | -3,211 | 7 |
Income Tax Expense (Benefit), Total | $9,136 | $7,049 | $9,016 |
Income_Taxes_Details_2
Income Taxes (Details 2) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Effective federal income tax rates on income (Loss) from continuing operation before income tax | ' | ' | ' |
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, less federal benefit | 1.90% | 1.40% | 2.10% |
Changes in tax reserves and valuation allowance | 1.60% | -3.10% | 0.10% |
Nondeductible goodwill | 0.00% | 2.50% | 0.00% |
Permanent book/tax differences (primarily §199 deduction) | -2.20% | -1.60% | -0.70% |
Other, net | -3.30% | -3.10% | -0.80% |
Effective Income Tax Rate, Continuing Operations, Total | 33.00% | 31.10% | 35.70% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Accounts receivable | $196 | $332 |
Inventories | 2,852 | 2,806 |
Accrued expenses | 3,093 | 3,016 |
State net operating loss and credit carryforwards | 6,031 | 5,992 |
Share-based compensation | 1,718 | 1,861 |
Intangibles | 2,110 | 3,031 |
Gross Deferred income tax assets | 16,000 | 17,038 |
Valuation allowance | -5,815 | -5,467 |
Net | 10,185 | 11,571 |
Deferred income tax liabilities: | ' | ' |
Property, plant and equipment | 1,248 | 1,823 |
Unremitted earnings of foreign subsidiaries | 2,308 | 986 |
Other | 250 | 268 |
Gross Deferred income tax liabilities | 3,806 | 3,077 |
Net deferred income tax asset | $6,379 | $8,494 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' |
Gross unrecognized tax benefits, Beginning balance | $1,276 | $1,108 |
Additions based on tax positions related to the current year | 162 | 168 |
Gross unrecognized tax benefits, Ending balance | $1,438 | $1,276 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Increased in additional paid-in capital | $1,175 | $290 | $99 | ' |
Valuation allowances | 5,815 | 5,467 | ' | ' |
Reduction in the deferred income tax assets related to share-based compensation | 35 | 549 | 2,585 | ' |
Reduction in deferred tax asset due to expiration of Stock options | ' | ' | 718 | 1,867 |
Gross unrecognized tax benefit | 1,438 | 1,276 | 1,108 | ' |
Unrecognized tax benefits, if recognized | 935 | ' | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits | 544 | ' | ' | ' |
Accrued interest and penalties recorded during the current year | 110 | ' | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Deferred tax assets, operating loss carryforwards | 6,315 | 6,158 | ' | ' |
Domestic Tax Authority [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Deferred tax assets, operating loss carryforwards | $3,400 | $3,316 | ' | ' |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Summary of maximum credit available to the company on a periodic basis | ' |
Commitment Low level period | '5 months |
Commitment Medium level period | '4 months |
Commitment High level period | '3 months |
Low [Member] | ' |
Summary of maximum credit available to the company on a periodic basis | ' |
Commitment Period Time Frame | 'February 1 to June 30 (5 months) |
Commitment Level | 50,000,000 |
Medium [Member] | ' |
Summary of maximum credit available to the company on a periodic basis | ' |
Commitment Period Time Frame | 'July 1 to October 31 (4 months) |
Commitment Level | 100,000,000 |
High [Member] | ' |
Summary of maximum credit available to the company on a periodic basis | ' |
Commitment Period Time Frame | 'November 1 to January 31 (3 months) |
Commitment Level | 150,000,000 |
Revolving_Credit_Facility_Deta1
Revolving Credit Facility (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | |
Mar. 17, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Revolving credit facility agreement with number of banks | 2 | ' | ' |
Notice period required for the company to exercise an option | ' | '15 days | ' |
Number of times commitment level option may be exercised | ' | 3 | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | 0.25% | ' |
Interest coverage ratio | ' | 3.5 | ' |
Low [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Commitment Level | ' | $50,000,000 | ' |
Consecutive period of time commitment level must remain | ' | '3 months | ' |
Low [Member] | Minimum [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Commitment Level | ' | 62,500,000 | ' |
Low [Member] | Maximum [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Commitment Level | ' | 125,000,000 | ' |
Medium [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Commitment Level | ' | 100,000,000 | ' |
Medium [Member] | Maximum [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Commitment Level | ' | 125,000,000 | ' |
2011 March Revolving Credit Facility [Member] | ' | ' | ' |
Revolving Credit Facility (Textual) [Abstract] | ' | ' | ' |
Credit facility, Expiration date | 17-Mar-16 | ' | ' |
Credit facility maximum borrowing amount | ' | 20,000,000 | ' |
LIBOR rate | ' | 0.95% | ' |
Maximum amount outstanding during period | ' | 0 | 0 |
Borrowings under the facility | ' | 0 | 0 |
Letters of Credit Outstanding | ' | 1,800,000 | 2,393,000 |
Tangible net worth of revolving credit facility | ' | $140,000,000 | ' |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of future minimum rental payments | ' |
2015 | $4,760 |
2016 | 2,517 |
2017 | 1,001 |
2018 | 1,001 |
2019 | 298 |
Thereafter | 62 |
Total | $9,639 |
Operating_Leases_Details_Textu
Operating Leases (Details Textual) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Operating Leases (Textual) [Abstract] | ' | ' | ' |
Future sublease rental income in 2015 | $253,000 | ' | ' |
Future sublease rental income in 2016 | 173,000 | ' | ' |
Operating lease rent expense | 5,312,000 | 6,048,000 | 6,414,000 |
Sublease rental income | $165,000 | $0 | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Recurring Fair Value Measurements [Member], USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets | $1,861 | $1,718 |
Liabilities: | ' | ' |
Total liabilities | 782 | 695 |
Deferred compensation plans [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 782 | 678 |
Foreign exchange contract [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | ' | 17 |
Marketable securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 782 | 678 |
Cash surrender value of life insurance policies [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 1,079 | 1,040 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 782 | 678 |
Liabilities: | ' | ' |
Total liabilities | 782 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Deferred compensation plans [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 782 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Foreign exchange contract [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | ' | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Marketable securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 782 | 678 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash surrender value of life insurance policies [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 1,079 | 1,040 |
Liabilities: | ' | ' |
Total liabilities | 0 | 17 |
Significant Other Observable Inputs (Level 2) [Member] | Deferred compensation plans [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contract [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | ' | 17 |
Significant Other Observable Inputs (Level 2) [Member] | Marketable securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Cash surrender value of life insurance policies [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 1,079 | 1,040 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Deferred compensation plans [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign exchange contract [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities | ' | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Marketable securities [Member] | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Cash surrender value of life insurance policies [Member] | ' | ' |
Assets: | ' | ' |
Total assets | $0 | $0 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Fair Value Measurements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Foreign currency contracts outstanding | $0 | ' | ' | $0 | ' | ' |
Reduction of goodwill from disposition of product line | $0 | $0 | $0 | $0 | $2,711,000 | $0 |
Recurring Fair Value Measurements [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Number of life insurance policies | 2 | ' | ' | 2 | ' | ' |
Number of former executives | 2 | ' | ' | 2 | ' | ' |
Segment_Disclosure_Details
Segment Disclosure (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Revenues from its various products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $54,560 | $106,295 | $112,487 | $47,117 | $53,621 | $116,020 | $133,485 | $61,067 | $320,459 | $364,193 | $384,663 |
All Occasion [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from its various products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 195,147 | 203,668 | 206,175 |
Christmas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from its various products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 100,533 | 105,466 | 123,001 |
Other Seasonal [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from its various products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $24,779 | $55,059 | $55,487 |
Segment_Disclosure_Details_Tex
Segment Disclosure (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Segment Disclosure (Textual) [Abstract] | ' | ' | ' |
Number of reporting Segment | 1 | ' | ' |
One Customer [Member] | ' | ' | ' |
Segment Disclosure (Textual) [Abstract] | ' | ' | ' |
Sales accounted | $87,925 | $99,459 | $96,836 |
Sales accounted, Percentage | 27.00% | 27.00% | 25.00% |
Second Customer [Member] | ' | ' | ' |
Segment Disclosure (Textual) [Abstract] | ' | ' | ' |
Sales accounted | $38,348 | $48,948 | $50,501 |
Sales accounted, Percentage | 12.00% | 13.00% | 13.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $54,560 | $106,295 | $112,487 | $47,117 | $53,621 | $116,020 | $133,485 | $61,067 | $320,459 | $364,193 | $384,663 |
Gross profit | 15,704 | 36,266 | 36,727 | 14,459 | 13,449 | 37,613 | 40,831 | 17,198 | ' | ' | ' |
(Loss) income from continuing operations | -1,603 | 10,988 | 10,846 | -1,667 | -1,985 | 11,600 | 6,840 | -867 | 18,564 | 15,588 | 16,229 |
(Loss) income from discontinued operations, net of tax | 74 | 19 | 112 | 0 | -416 | 11 | 81 | -37 | 205 | -361 | -559 |
Net income | ($1,529) | $11,007 | $10,958 | ($1,667) | ($2,401) | $11,611 | $6,921 | ($904) | $18,769 | $15,227 | $15,670 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | ($0.17) | $1.18 | $1.15 | ($0.18) | ($0.21) | $1.21 | $0.71 | ($0.09) | $1.98 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.01 | $0 | $0.01 | $0 | ($0.04) | $0 | $0.01 | $0 | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | ($0.16) | $1.18 | $1.16 | ($0.18) | ($0.25) | $1.22 | $0.72 | ($0.09) | $2 | $1.59 | $1.61 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | ($0.17) | $1.18 | $1.14 | ($0.18) | ($0.21) | $1.21 | $0.71 | ($0.09) | $1.97 | $1.63 | $1.67 |
Discontinued operations (in dollars per share) | $0.01 | $0 | $0.01 | $0 | ($0.04) | $0 | $0.01 | $0 | $0.02 | ($0.04) | ($0.06) |
Total (in dollars per share) | ($0.16) | $1.18 | $1.16 | ($0.18) | ($0.25) | $1.22 | $0.72 | ($0.09) | $1.99 | $1.59 | $1.61 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Details Textual) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Quarterly Financial Data (Textual) [Abstract] | ' |
Costs related to severance | $6,764 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], Subsidiary [Member], Carson & Gebel Ribbon Co. [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | 19-May-14 |
Subsequent Event [Member] | Subsidiary [Member] | Carson & Gebel Ribbon Co. [Member] | ' |
Subsequent Event [Line Items] | ' |
Payment to acquire business | $5,142 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Accounts receivable allowances [Member] | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | $2,009 | $1,764 | $2,680 |
Additions Charged to Costs and Expenses | 2,862 | 4,746 | 4,884 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 3,202 | 4,501 | 5,800 |
Balance At End of Period | 1,669 | 2,009 | 1,764 |
Accrued customer programs [Member] | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | 4,015 | 3,298 | 4,162 |
Additions Charged to Costs and Expenses | 9,424 | 11,667 | 11,233 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 8,619 | 10,950 | 12,097 |
Balance At End of Period | 4,820 | 4,015 | 3,298 |
Accrued restructuring expenses [Member] | ' | ' | ' |
Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | 1,900 | 590 | 0 |
Additions Charged to Costs and Expenses | 0 | 3,998 | 724 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1,676 | 2,688 | 134 |
Balance At End of Period | $224 | $1,900 | $590 |