Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CSS | |
Entity Registrant Name | CSS INDUSTRIES INC | |
Entity Central Index Key | 20,629 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,111,746 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 101,397 | $ 101,291 | $ 149,721 | $ 146,609 |
Cost of sales | 74,722 | 69,691 | 111,234 | 102,712 |
Gross profit | 26,675 | 31,600 | 38,487 | 43,897 |
Selling, general and administrative expenses | 23,282 | 20,921 | 43,978 | 38,495 |
Operating income (loss) | 3,393 | 10,679 | (5,491) | 5,402 |
Gain on bargain purchase | 0 | (376) | 0 | (376) |
Interest expense (income), net | 47 | (4) | (7) | (93) |
Other expense (income), net | (169) | (11) | (328) | (102) |
Income (loss) before income taxes | 3,515 | 11,070 | (5,156) | 5,973 |
Income tax expense (benefit) | 502 | 4,078 | (1,105) | 2,267 |
Net income (loss) | $ 3,013 | $ 6,992 | $ (4,051) | $ 3,706 |
Weighted average shares outstanding: | ||||
Basic (shares) | 9,109 | 9,076 | 9,099 | 9,065 |
Diluted (shares) | 9,143 | 9,107 | 9,099 | 9,111 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.33 | $ 0.77 | $ (0.45) | $ 0.41 |
Diluted (in dollars per share) | 0.33 | 0.77 | (0.45) | 0.41 |
Cash dividends per share of common stock (in dollars per share) | $ 0.2 | $ 0.2 | $ 0.40 | $ 0.40 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 3,013 | $ 6,992 | $ (4,051) | $ 3,706 |
Currency translation adjustment | 302 | 0 | 610 | 0 |
Comprehensive income (loss) | $ 3,315 | $ 6,992 | $ (3,441) | $ 3,706 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Current assets | |||
Cash and cash equivalents | $ 27,214,000 | $ 47,693,000 | $ 30,241,000 |
Short-term investments | 0 | 19,931,000 | 0 |
Accounts receivable, net of allowances of $1,216, $1,283 and $1,524 | 95,014,000 | 48,814,000 | 91,577,000 |
Inventories | 106,896,000 | 105,258,000 | 93,701,000 |
Prepaid expenses and other current assets | 13,245,000 | 10,793,000 | 12,741,000 |
Total current assets | 242,369,000 | 232,489,000 | 228,260,000 |
Property, plant and equipment, net | 35,453,000 | 35,764,000 | 27,204,000 |
Deferred income taxes | 0 | 0 | 2,363,000 |
Other assets | |||
Goodwill | 19,916,000 | 19,916,000 | 19,677,000 |
Intangible assets, net | 42,198,000 | 43,879,000 | 41,160,000 |
Other | 8,977,000 | 7,146,000 | 6,657,000 |
Total other assets | 71,091,000 | 70,941,000 | 67,494,000 |
Total assets | 348,913,000 | 339,194,000 | 325,321,000 |
Current liabilities | |||
Current portion of long-term debt | 226,000 | 220,000 | 0 |
Accounts payable | 26,067,000 | 14,223,000 | 26,652,000 |
Accrued payroll and other compensation | 8,081,000 | 7,884,000 | 7,070,000 |
Accrued customer programs | 6,338,000 | 5,030,000 | 3,622,000 |
Accrued income taxes | 564,000 | 425,000 | 551,000 |
Other current liabilities | 11,275,000 | 8,601,000 | 10,961,000 |
Total current liabilities | 52,551,000 | 36,383,000 | 48,856,000 |
Long-term debt, net of current portion | 342,000 | 456,000 | 0 |
Deferred income taxes | 4,144,000 | 4,430,000 | 0 |
Other long-term obligations | 3,971,000 | 3,771,000 | 4,590,000 |
Stockholders’ equity | |||
Preferred stock, Class 2, $.01 par, 1,000,000 shares authorized, no shares issued | 0 | 0 | 0 |
Common stock, $.10 par, 25,000,000 shares authorized, 14,703,084 shares issued at September 30, 2017, March 31, 2017 and September 30, 2016 | 1,470,000 | 1,470,000 | 1,470,000 |
Additional paid-in capital | 57,742,000 | 57,997,000 | 57,028,000 |
Retained earnings | 375,330,000 | 382,807,000 | 361,810,000 |
Accumulated other comprehensive income (loss) | 546,000 | (63,000) | (62,000) |
Common stock in treasury | (147,183,000) | (148,057,000) | (148,371,000) |
Total stockholders' equity | 287,905,000 | 294,154,000 | 271,875,000 |
Total liabilities and stockholders’ equity | $ 348,913,000 | $ 339,194,000 | $ 325,321,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Allowances for accounts receivable | $ 1,216 | $ 1,283 | $ 1,524 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Common stock, shares issued | 14,703,084 | 14,703,084 | 14,703,084 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (4,051) | $ 3,706 |
Adjustments to reconcile net (loss) income to net cash used for operating activities: | ||
Depreciation and amortization | 4,246 | 4,270 |
Amortization of inventory step-up | 7,028 | 0 |
Accretion of investment discount | (69) | (194) |
Provision for accounts receivable allowances | 1,298 | 2,553 |
Deferred tax (benefit) provision | (362) | 799 |
Share-based compensation expense | 803 | 688 |
Gain on bargain purchase | 0 | (376) |
(Gain) loss on sale of assets | (14) | 43 |
Changes in assets and liabilities: | ||
Accounts receivable | (47,443) | (48,987) |
Inventory | (8,436) | (19,815) |
Prepaid expenses and other assets | (3,516) | (48) |
Accounts payable | 11,865 | 12,514 |
Other accrued liabilities and long-term obligations | 4,489 | 2,821 |
Total adjustments | (30,111) | (45,732) |
Net cash used for operating activities | (34,162) | (42,026) |
Cash flows from investing activities: | ||
Maturities of investment securities | 20,000 | 60,000 |
Purchase of a business | 0 | (1,125) |
Purchase of property, plant and equipment | (2,021) | (2,831) |
Purchase of company owned life insurance policy | (750) | 0 |
Purchase of intangibles | 0 | (100) |
Proceeds from sale of fixed assets | 14 | 311 |
Net cash provided by investing activities | 17,243 | 56,255 |
Cash flows from financing activities: | ||
Payments on long-term debt | (109) | 0 |
Dividends paid | (3,644) | (3,634) |
Exercise of stock options, net of tax withholdings | 37 | (32) |
Payments for tax withholding on net restricted stock settlements | 0 | (527) |
Tax effect on stock awards | 0 | 278 |
Net cash used for financing activities | (3,716) | (3,915) |
Effect of exchange rate changes on cash | 156 | 0 |
Net (decrease) increase in cash and cash equivalents | (20,479) | 10,314 |
Cash and cash equivalents at beginning of period | 47,693 | 19,927 |
Cash and cash equivalents at end of period | $ 27,214 | $ 30,241 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2017 | |
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. The Company has condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . The results of operations for the interim periods are not necessarily indicative of the results for the full year. The Company’s fiscal year ends on March 31. References to a particular fiscal year refer to the fiscal year ending in March of that year. For example, “fiscal 2018 ” refers to the fiscal year ending March 31, 2018 . Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. Nature of Business CSS is a consumer products company within the seasonal, celebrations and craft markets that is primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal, celebrations and craft social expression products, principally to mass market retailers. Seasonal The seasonal product category is defined as products designed, produced and sold to mass market retailers for holidays and seasonal events, including Christmas, Valentine's Day, Easter and back-to-school. Products include Christmas packaging ribbons and bows, boxed greeting cards, gift tags, gift card holders, gift bags, gift wrap, tissue paper, classroom exchange Valentine cards, Easter egg dyes and novelties, and educational products. Production forecasts for these products are generally known well in advance of shipment. Celebrations The celebrations product category is defined as products primarily designed to celebrate certain life events or special occasions such as weddings, birthdays, anniversaries, graduations, and the birth of a child. These products are primarily sold into mass and specialty retailers, floral and packaging wholesalers and distributors. Products include ribbons and bows, floral accessories, infant products, journals, gift card holders, all occasion boxed greeting cards, memory books, scrapbooks, stationery, stickers and other items that commemorate life's celebrations. Products in this category are generally ordered on a replenishment basis throughout the year. Craft The craft product category is defined as products used for craft activities and includes ribbons, buttons, sewing patterns and accessories. These products are sold to mass market and specialty retailers and are generally ordered on a replenishment basis throughout the year. The seasonal nature of CSS’ business has historically resulted in lower sales levels 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, which ends March 31, thereby causing significant fluctuations in the quarterly results of operations of the Company. The Company's principal operating subsidiaries include Berwick Offray LLC ("Berwick Offray"), Paper Magic Group, Inc. ("Paper Magic"), C.R. Gibson, LLC ("C.R. Gibson") and The McCall Pattern Company, Inc. ("McCall"), and their respective subsidiaries. Reclassification Certain prior period amounts have been classified to conform with the current year presentation. Foreign Currency Translation and Transactions The Company's foreign subsidiaries use the local currency as the functional currency. The Company translates all assets and liabilities at period end exchange rates and all income and expense accounts at average rates during the period. Translation adjustments are recorded in accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses on foreign currency transactions (denominated in currencies other than the local currency) are not material and are included in other expense (income), net in the consolidated statements of operations. 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 categorized and accounted for its short-term investment holdings as held-to-maturity securities. This categorization was based upon the Company's positive intent and ability to hold these securities until maturity. There were no short-term investments at September 30, 2017 and 2016 . Short-term investments at March 31, 2017 consisted of commercial paper with an amortized cost of $19,931,000 and matured in the first quarter of fiscal 2018 . Held-to-maturity securities are recorded at amortized cost which approximated fair value at March 31, 2017 . 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 and net realizable value. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost and net realizable value. Inventories consisted of the following (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Raw material $ 11,437 $ 11,210 $ 10,919 Work-in-process 15,438 18,316 14,474 Finished goods 80,021 75,732 68,308 $ 106,896 $ 105,258 $ 93,701 In connection with the acquisition of McCall on December 13, 2016, there was a step-up to fair value of the inventory acquired of $ 21,773,000 recorded at the date of acquisition. This was a result of the inventory acquired being marked up to an estimated net selling price in purchase accounting and is recognized through cost of sales as the inventory is sold. The amount of step-up to fair value of the acquired inventory remaining as of September 30, 2017 and March 31, 2017 was $ 11,295,000 and $ 18,187,000 , respectively. The Company expects the acquired inventory to be sold through the first quarter of fiscal 2019. Property, Plant and Equipment Property, plant and equipment are stated at cost and include the following (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Land $ 5,918 $ 5,838 $ 2,508 Buildings, leasehold interests and improvements 41,014 40,661 34,612 Machinery, equipment and other 89,677 89,917 89,630 136,609 136,416 126,750 Less - Accumulated depreciation and amortization (101,156 ) (100,652 ) (99,546 ) Net property, plant and equipment $ 35,453 $ 35,764 $ 27,204 Depreciation expense was $1,280,000 and $1,290,000 for the quarters ended September 30, 2017 and 2016 , respectively, and was $2,565,000 and $2,647,000 for the six months ended September 30, 2017 and 2016 , respectively. Long-Lived Assets including Goodwill and Other Intangible Assets The Company performs an annual impairment test of the carrying amount of goodwill and indefinite-lived intangible assets in the fourth quarter of its fiscal year. Additionally, the Company would perform its impairment testing at an interim date if events or circumstances indicate that goodwill or intangibles might be impaired. During the six months ended September 30, 2017 , there were no such events or circumstances. 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 Company believes the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. The test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be reported. Other indefinite-lived intangible assets consist primarily of tradenames, which are also required to be tested annually for impairment. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. 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. 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. During the six months ended September 30, 2017 , there were no such events or circumstances. See Note 5 for further information on other intangible assets. 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 records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. 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. Revenue Recognition The Company recognizes the majority of its revenue from product sales when the goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. The Company has certain products, primarily sewing patterns, that are on consignment at mass market retailers and the Company recognizes the sale as products are sold to end consumers as recorded at point-of-sale terminals. Provisions for returns, allowances, rebates to customers and other adjustments are provided in the same period that the related sales are recorded. Net Income (Loss) Per Common Share The following table sets forth the computation of basic and diluted net income (loss) per common share for the three- and six months ended September 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 3,013 $ 6,992 $ (4,051 ) $ 3,706 Denominator: Weighted average shares outstanding for basic net income (loss) per common share 9,109 9,076 9,099 9,065 Effect of dilutive stock options 34 31 — 46 Adjusted weighted average shares outstanding for diluted net income (loss) per common share 9,143 9,107 9,099 9,111 Basic net income (loss) per common share $ 0.33 $ 0.77 $ (0.45 ) $ 0.41 Diluted net income (loss) per common share $ 0.33 $ 0.77 $ (0.45 ) $ 0.41 The Company has excluded 553,000 shares and 508,000 shares, consisting of outstanding stock options and unearned restricted stock units, in computing diluted net income per common share for the three months ended September 30, 2017 and three- and six months ended September 30, 2016 , respectively, because their effects were antidilutive. Due to the Company's net loss in the six months ended September 30, 2017 , potentially dilutive securities of 553,000 shares, consisting of outstanding stock options and unearned restricted stock units, were excluded from the diluted net loss per common share calculation due to their antidilutive effect. |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS On July 8, 2016, a subsidiary of the Company completed the acquisition of substantially all of the assets and business of Lawrence Schiff Silk Mills, Inc. ("Schiff") for $ 1,125,000 in cash. Schiff was a leading U.S. manufacturer and distributor of narrow woven ribbon prior to its April 2016 Chapter 11 bankruptcy filing. The acquisition was accounted for using the acquisition method and resulted in a bargain purchase due to the fair value of the net assets acquired of approximately $ 1,501,000 exceeding the amount paid. The following table summarizes the fair values of the assets acquired at the date of acquisition (in thousands): Inventory $ 865 Property, plant and equipment 350 Intangible assets 500 Total assets acquired 1,715 Deferred tax liability (214 ) Net assets acquired $ 1,501 In connection with this bargain purchase, the Company recorded a gain of approximately $376,000 in the consolidated statements of operations in the quarter ended September 30, 2016. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION 2013 Equity Compensation Plan Under the terms of the Company’s 2013 Equity Compensation Plan (“ 2013 Plan ”), the Company 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 and non-employee directors. Grants under the 2013 Plan may be made through July 29, 2023. The term of each grant is at the discretion of the Company, but in no event greater than ten years from the date of grant, and at the date of grant the Company has discretion to determine the date or dates on which granted options become exercisable. Under the 2013 Plan, a committee of the Company's Board of Directors (the "Board") approves grants to officers and other employees, and the Board approves grants to non-employee directors. Service-based stock options outstanding as of September 30, 2017 become exercisable at the rate of 25% per year commencing one year after the date of grant. Market-based stock options outstanding as of September 30, 2017 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. Outstanding service-based restricted stock units ("RSUs") granted to employees vest at the rate of 50% of the shares underlying the grant at each of the third and fourth anniversaries of the date on which the award was granted. Service-based RSUs granted to directors and outstanding as of September 30, 2017 vest on July 30, 2018. Market-based RSUs outstanding at September 30, 2017 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. At September 30, 2017 , there were 536,368 shares available for grant under the 2013 Plan. The fair value of each stock option granted under the above plan was estimated on the date of grant using a Black-Scholes option pricing model with the following average assumptions: Six Months Ended September 30, 2017 2016 Risk-free interest rate 2.21 % 1.66 % Volatility 34.45 % 35.12 % Dividend yield 2.90 % 2.91 % Expected life of option (in years) 6.25 4.75 The fair value of each market-based RSU granted under the above plan during the six months ended September 30, 2016 was estimated on the date of grant using a Monte Carlo simulation model with assumptions of a risk-free interest rate of 1.20% , volatility of 33.08% and dividend yield of 2.99% . There were no market-based RSUs granted during the six months ended September 30, 2017 . The fair value of each service-based RSU granted to employees was estimated on the day 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 fair value of each service-based RSU granted to directors, for which dividend equivalents are paid upon vesting of the underlying awards, was estimated on the day of grant based on the closing price of the Company's common stock. During the six months ended September 30, 2017 and 2016 , the Company granted 119,000 and 151,350 stock options, respectively, with a weighted average fair value of $7.42 and $6.25 , respectively. During the six months ended September 30, 2017 and 2016 , the Company granted 73,680 and 66,602 RSUs, respectively, with a weighted average fair value of $25.63 and $21.47 , respectively. As of September 30, 2017 , there were 603,200 and 195,205 outstanding stock options and RSUs, respectively. As of September 30, 2017 , there was $1,773,000 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 2.9 years . As of September 30, 2017 , there was $2,550,000 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 2.4 years . On August 11, 2015, the Company granted 10,000 RSUs to the Chair of the Company's Board of Directors. The RSUs vested on August 15, 2017 and were converted into a lump sum cash payment of approximately $266,000 which represented the fair market value of corresponding shares of common stock of the Company. Prior to vesting, the RSUs were classified as liability awards because they were to be paid in cash upon vesting. The RSU award liability was measured at its fair market value at the end of each reporting period. The total amount accrued related to this grant as of September 30, 2016 was $ 144,000 and is included in accrued payroll and other compensation in the consolidated balance sheet. Compensation cost related to stock options and RSUs (inclusive of the liability classified awards described above) recognized in operating results (included in selling, general and administrative expenses) was $541,000 and $307,000 in the quarters ended September 30, 2017 and 2016 , respectively, and $ 860,000 and $ 749,000 in the six months ended September 30, 2017 and 2016 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations on sales denominated in a foreign currency. Derivatives are not used for trading or speculative activities. Firmly committed transactions and the related receivables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other expense (income), net as offsets of gains and losses resulting from the underlying hedged transactions. A realized loss of $13,000 and $32,000 was recorded in the three- and six months ended September 30, 2017 , respectively, and a realized gain of $12,000 and $14,000 was recorded in the three- and six months ended September 30, 2016 , respectively. As of September 30, 2017 and 2016 , the notional amount of open foreign currency forward contracts was $1,105,000 and $1,564,000 , respectively. The related unrealized loss was $46,000 at September 30, 2017 and the related unrealized gain was $14,000 at September 30, 2016 . The Company believes it does not have significant counterparty credit risks as of September 30, 2017 . 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 (in thousands): Fair Value of Derivative Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Foreign currency forward contracts Other current liabilities $ 46 $ — Foreign currency forward contracts Other current assets $ — $ 14 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The gross carrying amount and accumulated amortization of other intangible assets is as follows (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames and trademarks $ 19,953 $ — $ 19,953 $ — $ 15,553 $ — Customer relationships 39,757 18,050 39,757 16,495 39,757 14,940 Patents 1,164 883 1,164 825 1,164 767 Trademarks 403 378 403 363 403 348 Non-compete 530 298 530 245 530 192 $ 61,807 $ 19,609 $ 61,807 $ 17,928 $ 57,407 $ 16,247 Amortization expense related to intangible assets was $840,000 and $820,000 for the quarters ended September 30, 2017 and 2016 , respectively, and was $1,681,000 and $1,623,000 for the six months ended September 30, 2017 and 2016 . Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2018 and each of the succeeding four years is projected to be as follows (in thousands): Remainder of fiscal 2018 $ 1,681 Fiscal 2019 3,305 Fiscal 2020 3,244 Fiscal 2021 3,056 Fiscal 2022 2,960 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT The Company leases certain equipment under capital leases, of which $76,000 and $75,000 is classified in current portion of long-term debt and $156,000 and $194,000 is classified in long-term debt, net of current portion in the accompanying consolidated balance sheets as of September 30, 2017 and March 31, 2017 , respectively. The Company also finances certain equipment, of which $150,000 and $145,000 is classified in current portion of long-term debt and $186,000 and $262,000 is classified in long-term debt, net of current portion in the accompanying consolidated balance sheets as of September 30, 2017 and March 31, 2017 , respectively. There was no long-term debt as of September 30, 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2017 | |
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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS 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 September 30, 2017 . The Company maintains a Nonqualified Supplemental Executive Retirement Plan ("SERP") for qualified employees. There have been no contributions provided under the SERP since fiscal 2007 and there are four employees who maintain account balances as of September 30, 2017 . The Company also maintains a nonqualified Deferred Compensation Plan ("Deferred Comp Plan") for qualified employees. The Deferred Comp Plan provides eligible key employees with the opportunity to elect to defer up to 50% of their eligible compensation under the Deferred Comp Plan. The Company may make matching or discretionary contributions, at the discretion of the Board. All compensation deferred under the SERP and Deferred Comp Plan is held by the Company. The Company maintains separate accounts for each participant to reflect deferred contribution amounts and the related gains or losses on such deferred amounts. A participant’s account is notionally invested in one or more investment funds and the value of the account is determined with respect to such investment allocations. The related liability is recorded as deferred compensation and included in other long-term obligations in the consolidated balance sheet as of September 30, 2017 . In connection with the above SERP and Deferred Comp Plan, the Company has invested in company-owned life insurance policies. The Company also 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 September 30, 2017 . To increase consistency and comparability in fair value measurements, the Financial Accounting Standards Board ("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 include 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 September 30, 2017 and March 31, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Using September 30, 2017 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 343 $ 343 $ — $ — Cash surrender value of life insurance policies 1,976 — 1,976 — Total assets $ 2,319 $ 343 $ 1,976 $ — Liabilities Deferred compensation plans $ 574 $ 574 $ — $ — Foreign exchange contracts 46 — 46 — Total liabilities $ 620 $ 574 $ 46 $ — Fair Value Measurements at March 31, 2017 Using March 31, 2017 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 319 $ 319 $ — $ — Cash surrender value of life insurance policies 1,187 — 1,187 — Total assets $ 1,506 $ 319 $ 1,187 $ — Liabilities Deferred compensation plans $ 364 $ 364 $ — $ — Total liabilities $ 364 $ 364 $ — $ — 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 as of March 31, 2017 included held-to-maturity securities that were 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. As of September 30, 2017 and March 31, 2017 , the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of the same maturity and represents Level 2 financial instruments. 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 an 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 events or circumstances indicate a condition of impairment may exist. Impairment testing is conducted through valuation methods that are based on assumptions for matters such as interest and discount rates, growth projections and other future business conditions (Level 3). 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. As of September 30, 2017 , the Company believes that no impairments exist. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," that amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. This new standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard, but it does not expect that it will have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on April 1, 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Under the amendments in ASU 2017-04, Step 2 of the goodwill impairment test is eliminated. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. Also eliminated is the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. This standard is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Effective April 1, 2017, the Company elected to early adopt ASU 2017-04 and the amendments described therein will be applied prospectively to all future goodwill impairment tests performed on an interim or annual basis. The adoption of the standard did not have an impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business" ("ASU 2017-01"). This new guidance clarifies the definition of a business in order to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted for transactions not reported in financial statements that have been issued or made available for issuance. The new guidance must be applied prospectively on or after the effective date, and no disclosures for a change in accounting principle are required at transition. The Company elected to early adopt ASU 2017-01 effective April 1, 2017 and the new guidance did not have an impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory" ("ASU 2016-16") which amends the accounting for income taxes. ASU 2016-16 requires the recognition of the income tax consequences of an intra-entity asset transfer, other than transfers of inventory, when the transaction occurs. For intra-entity transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The standard is effective in annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The new guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company intends to adopt the guidance when it becomes effective in the first quarter of fiscal 2019 and does not anticipate that this guidance will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of accounting for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equity, and classification on the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted the guidance effective April 1, 2017 and recorded a $1,059,000 cumulative-effect adjustment to retained earnings to recognize deferred taxes attributable to excess tax benefits. The Company also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 requires lessees to record a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The standard also requires certain quantitative and qualitative disclosures. While we are continuing to assess all potential aspects of ASU 2016-02, including taking an inventory of outstanding leases, the Company currently believes the most significant impact relates to our accounting for manufacturing, distribution, warehouse and office space operating leases. The Company expects this standard to have a material impact on its consolidated balance sheet, but does not believe that it will have a material impact on its consolidated statements of operations and comprehensive income (loss). In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value ("NRV"). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less a normal profit margin for inventory measurement. The new standard is effective prospectively for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2015-11 effective April 1, 2017 and it had no impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a single model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires expanded disclosures regarding the qualitative and quantitative information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The standard permits the use of either a full retrospective or a modified retrospective approach. The Company will adopt the new guidance effective April 1, 2018, with a cumulative-effect adjustment, if any, to opening retained earnings under the modified retrospective approach. The Company’s implementation of this ASU includes the evaluation of its customer agreements to identify terms or conditions that could be considered a performance obligation such that, if material to the terms of the contract, consideration would be allocated to the performance obligation and could accelerate or defer the timing of recognizing revenue. The Company has made significant progress in the review of its customer contracts and its current accounting policies and practices to identify potential differences that could result from applying the requirements of the new standard to its revenue contracts. To date, the Company has evaluated a majority of its revenue streams and based on the Company's preliminary analysis, it does not expect the new revenue standard will have a significant impact on the timing of recognizing revenue. The Company currently does not expect any significant changes to its accounting systems or internal controls related to the new standard. However, while the Company has made significant progress, it is still evaluating other aspects of its revenue. The Company will continue to update its assessment of the effect that the new revenue guidance will have on its consolidated financial statements, disclosures and related internal controls, and will disclose any material effects, if any. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On November 3, 2017, the Company completed the acquisition of the business and net assets of Simplicity Creative Group ("Simplicity") for approximately $ 67,117,000 in cash. The Company financed the transaction primarily with borrowings from its existing credit facility. Simplicity is a leading provider of home sewing patterns, decorative trims, knitting and crocheting tools, needle arts and kids' crafts products under the Simplicity®, Wrights®, Boye®, Dimensions®, and Perler® brand names. Simplicity's products are sold to mass-market retailers, specialty fabric and craft chains, wholesale distributors and online customers. A preliminary allocation of the purchase price has not yet been determined as the valuation to determine the fair values of the acquired assets and assumed liabilities has not yet been completed. A portion of the purchase price is being held in escrow for certain post-closing adjustments and indemnification obligations. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2017 | |
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. The Company has condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States pursuant to such rules and regulations. In the opinion of management, the statements include all adjustments (which include normal recurring adjustments) required for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . The results of operations for the interim periods are not necessarily indicative of the results for the full year. The Company’s fiscal year ends on March 31. References to a particular fiscal year refer to the fiscal year ending in March of that year. For example, “fiscal 2018 ” refers to the fiscal year ending March 31, 2018 . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions and accounts have been eliminated in consolidation. |
Nature of Business | Nature of Business CSS is a consumer products company within the seasonal, celebrations and craft markets that is primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal, celebrations and craft social expression products, principally to mass market retailers. Seasonal The seasonal product category is defined as products designed, produced and sold to mass market retailers for holidays and seasonal events, including Christmas, Valentine's Day, Easter and back-to-school. Products include Christmas packaging ribbons and bows, boxed greeting cards, gift tags, gift card holders, gift bags, gift wrap, tissue paper, classroom exchange Valentine cards, Easter egg dyes and novelties, and educational products. Production forecasts for these products are generally known well in advance of shipment. Celebrations The celebrations product category is defined as products primarily designed to celebrate certain life events or special occasions such as weddings, birthdays, anniversaries, graduations, and the birth of a child. These products are primarily sold into mass and specialty retailers, floral and packaging wholesalers and distributors. Products include ribbons and bows, floral accessories, infant products, journals, gift card holders, all occasion boxed greeting cards, memory books, scrapbooks, stationery, stickers and other items that commemorate life's celebrations. Products in this category are generally ordered on a replenishment basis throughout the year. Craft The craft product category is defined as products used for craft activities and includes ribbons, buttons, sewing patterns and accessories. These products are sold to mass market and specialty retailers and are generally ordered on a replenishment basis throughout the year. The seasonal nature of CSS’ business has historically resulted in lower sales levels 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, which ends March 31, thereby causing significant fluctuations in the quarterly results of operations of the Company. The Company's principal operating subsidiaries include Berwick Offray LLC ("Berwick Offray"), Paper Magic Group, Inc. ("Paper Magic"), C.R. Gibson, LLC ("C.R. Gibson") and The McCall Pattern Company, Inc. ("McCall"), and their respective subsidiaries. |
Reclassification | Reclassification Certain prior period amounts have been classified to conform with the current year presentation. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The Company's foreign subsidiaries use the local currency as the functional currency. The Company translates all assets and liabilities at period end exchange rates and all income and expense accounts at average rates during the period. Translation adjustments are recorded in accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses on foreign currency transactions (denominated in currencies other than the local currency) are not material and are included in other expense (income), net in the consolidated statements of operations. |
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 categorized and accounted for its short-term investment holdings as held-to-maturity securities. This categorization was based upon the Company's positive intent and ability to hold these securities until maturity. There were no short-term investments at September 30, 2017 and 2016 . Short-term investments at March 31, 2017 consisted of commercial paper with an amortized cost of $19,931,000 and matured in the first quarter of fiscal 2018 . Held-to-maturity securities are recorded at amortized cost which approximated fair value at March 31, 2017 . |
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 and net realizable value. The remaining portion of the inventory is valued at the lower of last-in, first-out (LIFO) cost and net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and include the following (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Land $ 5,918 $ 5,838 $ 2,508 Buildings, leasehold interests and improvements 41,014 40,661 34,612 Machinery, equipment and other 89,677 89,917 89,630 136,609 136,416 126,750 Less - Accumulated depreciation and amortization (101,156 ) (100,652 ) (99,546 ) Net property, plant and equipment $ 35,453 $ 35,764 $ 27,204 |
Long-Lived Assets including Goodwill and Other Intangible Assets | Long-Lived Assets including Goodwill and Other Intangible Assets The Company performs an annual impairment test of the carrying amount of goodwill and indefinite-lived intangible assets in the fourth quarter of its fiscal year. Additionally, the Company would perform its impairment testing at an interim date if events or circumstances indicate that goodwill or intangibles might be impaired. During the six months ended September 30, 2017 , there were no such events or circumstances. 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 Company believes the use of multiple valuation techniques results in a more accurate indicator of the fair value of each reporting unit. The test compares the fair value of a reporting unit to its carrying amount, including goodwill, as of the date of the test. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be reported. Other indefinite-lived intangible assets consist primarily of tradenames, which are also required to be tested annually for impairment. The fair value of the Company’s tradenames is calculated using a “relief from royalty payments” methodology. 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. 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. During the six months ended September 30, 2017 , there were no such events or circumstances. See Note 5 for further information on other intangible assets. |
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 records a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. 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. |
Revenue Recognition | Revenue Recognition The Company recognizes the majority of its revenue from product sales when the goods are shipped, title and risk of loss have been transferred to the customer and collection is reasonably assured. The Company has certain products, primarily sewing patterns, that are on consignment at mass market retailers and the Company recognizes the sale as products are sold to end consumers as recorded at point-of-sale terminals. Provisions for returns, allowances, rebates to customers and other adjustments are provided in the same period that the related sales are recorded. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In August 2017, the FASB issued Accounting Standards Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," that amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. This new standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard, but it does not expect that it will have a material impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on April 1, 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). Under the amendments in ASU 2017-04, Step 2 of the goodwill impairment test is eliminated. An entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. Also eliminated is the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. This standard is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Effective April 1, 2017, the Company elected to early adopt ASU 2017-04 and the amendments described therein will be applied prospectively to all future goodwill impairment tests performed on an interim or annual basis. The adoption of the standard did not have an impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business" ("ASU 2017-01"). This new guidance clarifies the definition of a business in order to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted for transactions not reported in financial statements that have been issued or made available for issuance. The new guidance must be applied prospectively on or after the effective date, and no disclosures for a change in accounting principle are required at transition. The Company elected to early adopt ASU 2017-01 effective April 1, 2017 and the new guidance did not have an impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory" ("ASU 2016-16") which amends the accounting for income taxes. ASU 2016-16 requires the recognition of the income tax consequences of an intra-entity asset transfer, other than transfers of inventory, when the transaction occurs. For intra-entity transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The standard is effective in annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The new guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company intends to adopt the guidance when it becomes effective in the first quarter of fiscal 2019 and does not anticipate that this guidance will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of accounting for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equity, and classification on the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted the guidance effective April 1, 2017 and recorded a $1,059,000 cumulative-effect adjustment to retained earnings to recognize deferred taxes attributable to excess tax benefits. The Company also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 requires lessees to record a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The standard also requires certain quantitative and qualitative disclosures. While we are continuing to assess all potential aspects of ASU 2016-02, including taking an inventory of outstanding leases, the Company currently believes the most significant impact relates to our accounting for manufacturing, distribution, warehouse and office space operating leases. The Company expects this standard to have a material impact on its consolidated balance sheet, but does not believe that it will have a material impact on its consolidated statements of operations and comprehensive income (loss). In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value ("NRV"). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less a normal profit margin for inventory measurement. The new standard is effective prospectively for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2015-11 effective April 1, 2017 and it had no impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a single model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires expanded disclosures regarding the qualitative and quantitative information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The standard permits the use of either a full retrospective or a modified retrospective approach. The Company will adopt the new guidance effective April 1, 2018, with a cumulative-effect adjustment, if any, to opening retained earnings under the modified retrospective approach. The Company’s implementation of this ASU includes the evaluation of its customer agreements to identify terms or conditions that could be considered a performance obligation such that, if material to the terms of the contract, consideration would be allocated to the performance obligation and could accelerate or defer the timing of recognizing revenue. The Company has made significant progress in the review of its customer contracts and its current accounting policies and practices to identify potential differences that could result from applying the requirements of the new standard to its revenue contracts. To date, the Company has evaluated a majority of its revenue streams and based on the Company's preliminary analysis, it does not expect the new revenue standard will have a significant impact on the timing of recognizing revenue. The Company currently does not expect any significant changes to its accounting systems or internal controls related to the new standard. However, while the Company has made significant progress, it is still evaluating other aspects of its revenue. The Company will continue to update its assessment of the effect that the new revenue guidance will have on its consolidated financial statements, disclosures and related internal controls, and will disclose any material effects, if any |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Raw material $ 11,437 $ 11,210 $ 10,919 Work-in-process 15,438 18,316 14,474 Finished goods 80,021 75,732 68,308 $ 106,896 $ 105,258 $ 93,701 |
Property, Plant and Equipment | Property, plant and equipment are stated at cost and include the following (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Land $ 5,918 $ 5,838 $ 2,508 Buildings, leasehold interests and improvements 41,014 40,661 34,612 Machinery, equipment and other 89,677 89,917 89,630 136,609 136,416 126,750 Less - Accumulated depreciation and amortization (101,156 ) (100,652 ) (99,546 ) Net property, plant and equipment $ 35,453 $ 35,764 $ 27,204 |
Earnings Per Share | The following table sets forth the computation of basic and diluted net income (loss) per common share for the three- and six months ended September 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 3,013 $ 6,992 $ (4,051 ) $ 3,706 Denominator: Weighted average shares outstanding for basic net income (loss) per common share 9,109 9,076 9,099 9,065 Effect of dilutive stock options 34 31 — 46 Adjusted weighted average shares outstanding for diluted net income (loss) per common share 9,143 9,107 9,099 9,111 Basic net income (loss) per common share $ 0.33 $ 0.77 $ (0.45 ) $ 0.41 Diluted net income (loss) per common share $ 0.33 $ 0.77 $ (0.45 ) $ 0.41 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair values of the assets acquired at the date of acquisition (in thousands): Inventory $ 865 Property, plant and equipment 350 Intangible assets 500 Total assets acquired 1,715 Deferred tax liability (214 ) Net assets acquired $ 1,501 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model | The fair value of each stock option granted under the above plan was estimated on the date of grant using a Black-Scholes option pricing model with the following average assumptions: Six Months Ended September 30, 2017 2016 Risk-free interest rate 2.21 % 1.66 % Volatility 34.45 % 35.12 % Dividend yield 2.90 % 2.91 % Expected life of option (in years) 6.25 4.75 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative 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 (in thousands): Fair Value of Derivative Instruments Balance Sheet Location September 30, 2017 September 30, 2016 Foreign currency forward contracts Other current liabilities $ 46 $ — Foreign currency forward contracts Other current assets $ — $ 14 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets is as follows (in thousands): September 30, 2017 March 31, 2017 September 30, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Tradenames and trademarks $ 19,953 $ — $ 19,953 $ — $ 15,553 $ — Customer relationships 39,757 18,050 39,757 16,495 39,757 14,940 Patents 1,164 883 1,164 825 1,164 767 Trademarks 403 378 403 363 403 348 Non-compete 530 298 530 245 530 192 $ 61,807 $ 19,609 $ 61,807 $ 17,928 $ 57,407 $ 16,247 |
Schedule of Future Amortization Expense | Based on the current composition of intangibles, amortization expense for the remainder of fiscal 2018 and each of the succeeding four years is projected to be as follows (in thousands): Remainder of fiscal 2018 $ 1,681 Fiscal 2019 3,305 Fiscal 2020 3,244 Fiscal 2021 3,056 Fiscal 2022 2,960 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on 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 September 30, 2017 and March 31, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Using September 30, 2017 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 343 $ 343 $ — $ — Cash surrender value of life insurance policies 1,976 — 1,976 — Total assets $ 2,319 $ 343 $ 1,976 $ — Liabilities Deferred compensation plans $ 574 $ 574 $ — $ — Foreign exchange contracts 46 — 46 — Total liabilities $ 620 $ 574 $ 46 $ — Fair Value Measurements at March 31, 2017 Using March 31, 2017 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities $ 319 $ 319 $ — $ — Cash surrender value of life insurance policies 1,187 — 1,187 — Total assets $ 1,506 $ 319 $ 1,187 $ — Liabilities Deferred compensation plans $ 364 $ 364 $ — $ — Total liabilities $ 364 $ 364 $ — $ — |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 13, 2016 | |
Net Investment Income [Line Items] | ||||||
Held-to-maturity short-term investments | $ 0 | $ 0 | $ 0 | $ 0 | $ 19,931,000 | |
Depreciation expense | $ 1,280,000 | $ 1,290,000 | $ 2,565,000 | $ 2,647,000 | ||
Effective antidilutive securities excluded from computation of net income per share (in shares) | 553 | 508 | 553 | 508 | ||
Commercial Paper [Member] | ||||||
Net Investment Income [Line Items] | ||||||
Held-to-maturity short-term investments | 19,931,000 | |||||
The McCall Pattern Company [Member] | ||||||
Net Investment Income [Line Items] | ||||||
Step up to fair value of inventory acquired | $ 21,773,000 | |||||
Remaining amount of inventory acquired | $ 11,295,000 | $ 11,295,000 | $ 18,187,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | |||
Raw material | $ 11,437 | $ 11,210 | $ 10,919 |
Work-in-process | 15,438 | 18,316 | 14,474 |
Finished goods | 80,021 | 75,732 | 68,308 |
Inventory, net | $ 106,896 | $ 105,258 | $ 93,701 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 136,609 | $ 136,416 | $ 126,750 |
Less - Accumulated depreciation and amortization | (101,156) | (100,652) | (99,546) |
Net property, plant and equipment | 35,453 | 35,764 | 27,204 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 5,918 | 5,838 | 2,508 |
Buildings, Leasehold Interests and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 41,014 | 40,661 | 34,612 |
Machinery, Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 89,677 | $ 89,917 | $ 89,630 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income (loss) | $ 3,013 | $ 6,992 | $ (4,051) | $ 3,706 |
Denominator: | ||||
Weighted average shares outstanding for basic net income (loss) per common share (in shares) | 9,109 | 9,076 | 9,099 | 9,065 |
Effect of dilutive stock options (in shares) | 34 | 31 | 0 | 46 |
Adjusted weighted average shares outstanding for diluted net income (loss) per common share (in shares) | 9,143 | 9,107 | 9,099 | 9,111 |
Basic net income (loss) per common share (in dollars per share) | $ 0.33 | $ 0.77 | $ (0.45) | $ 0.41 |
Diluted net income (loss) per common share (in dollars per share) | $ 0.33 | $ 0.77 | $ (0.45) | $ 0.41 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jul. 08, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||||
Payment to acquire business | $ 0 | $ 1,125 | |||
Gain on bargain purchases | $ 0 | $ 376 | $ 0 | $ 376 | |
Lawrence Schiff Silk Mills, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Payment to acquire business | $ 1,125 | ||||
Gain on bargain purchases | $ 1,501 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Business Combinations [Abstract] | |
Inventory | $ 865 |
Property, plant and equipment | 350 |
Intangible assets | 500 |
Total assets acquired | 1,715 |
Deferred tax liability | (214) |
Net assets acquired | $ 1,501 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 15, 2017 | Aug. 11, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other long-term obligations | $ 3,971 | $ 4,590 | $ 3,971 | $ 4,590 | $ 3,771 | ||
Selling, General and Administrative Expenses [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost related to stock options and RSUs recognized | $ 541 | 307 | $ 860 | $ 749 | |||
Market-Based RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rate | 1.20% | ||||||
Volatility | 33.08% | ||||||
Dividend yield | 2.99% | ||||||
RSUs granted during the period (in shares) | 0 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rate | 2.21% | 1.66% | |||||
Volatility | 34.45% | 35.12% | |||||
Dividend yield | 2.90% | 2.91% | |||||
Stock options granted during the period (in shares) | 119,000 | 151,350 | |||||
Weighted average fair value of stock options granted (in dollars per share) | $ 7.42 | $ 6.25 | |||||
Stock options outstanding (in shares) | 603,200 | 603,200 | |||||
Total unrecognized compensation cost related to non-vested stock option awards | $ 1,773 | $ 1,773 | |||||
Equity incentive plan, weighted average recognition period | 2 years 10 months 8 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted during the period (in shares) | 73,680 | 66,602 | |||||
Weighted average fair value of restricted stock granted (in dollars per share) | $ 25.63 | $ 21.47 | |||||
RSUs outstanding (in shares) | 195,205 | 195,205 | |||||
Equity incentive plan, weighted average recognition period | 2 years 4 months 17 days | ||||||
Total unrecognized compensation cost related to non-vested RSUs | $ 2,550 | $ 2,550 | |||||
Restricted Stock Units (RSUs) [Member] | Board of Directors Chairman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted during the period (in shares) | 10,000 | ||||||
Lump sum cash payment of RSUs converted | $ 266 | ||||||
Other long-term obligations | $ 144 | $ 144 | |||||
2013 Equity Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of grant | 10 years | ||||||
Shares available for grant (in shares) | 536,368 | 536,368 | |||||
2013 Equity Compensation Plan [Member] | Service-Based Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate percentage | 25.00% | ||||||
Award service period | 1 year | ||||||
Third Anniversary [Member] | 2013 Equity Compensation Plan [Member] | Service-Based RSUs [Member] | Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate percentage | 50.00% | ||||||
Fourth Anniversary [Member] | 2013 Equity Compensation Plan [Member] | Service-Based RSUs [Member] | Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate percentage | 50.00% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Fair Value of Each Stock Option Granted Using Monte Carlo Simulation Model (Details) - Stock Options [Member] | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.21% | 1.66% |
Volatility | 34.45% | 35.12% |
Dividend yield | 2.90% | 2.91% |
Expected life of option | 6 years 3 months | 4 years 9 months |
Derivative Financial Instrume31
Derivative Financial Instruments - Additional Information (Details) - Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Realized gain (loss) from foreign currency forward contracts | $ (13) | $ 12 | $ (32) | $ 14 |
Notional amount of derivative contracts | 1,105 | 1,564 | 1,105 | 1,564 |
Foreign currency forward contracts, unrealized gain (loss) | $ (46) | $ 14 | $ (46) | $ 14 |
Derivative Financial Instrume32
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 46 | $ 0 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 14 |
Intangible Assets - Gross Carry
Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 61,807 | $ 61,807 | $ 57,407 |
Accumulated Amortization | 19,609 | 17,928 | 16,247 |
Tradenames and Trademarks [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 19,953 | 19,953 | 15,553 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 39,757 | 39,757 | 39,757 |
Accumulated Amortization | 18,050 | 16,495 | 14,940 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,164 | 1,164 | 1,164 |
Accumulated Amortization | 883 | 825 | 767 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 403 | 403 | 403 |
Accumulated Amortization | 378 | 363 | 348 |
Non-compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 530 | 530 | 530 |
Accumulated Amortization | $ 298 | $ 245 | $ 192 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 840 | $ 820 | $ 1,681 | $ 1,623 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal 2018 | $ 1,681 |
Fiscal 2,019 | 3,305 |
Fiscal 2,020 | 3,244 |
Fiscal 2,021 | 3,056 |
Fiscal 2,022 | $ 2,960 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Long term debt excluding current portion | $ 342,000 | $ 456,000 | $ 0 |
Long term debt | $ 0 | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long term debt | 76,000 | 75,000 | |
Long term debt excluding current portion | 156,000 | 194,000 | |
Financed Computer Equipment [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long term debt | 150,000 | 145,000 | |
Long term debt excluding current portion | $ 186,000 | $ 262,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Sep. 30, 2017executiveemployeeInsurancePolicy |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of employees with SERP account balances | employee | 4 |
Recurring Fair Value Measurements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of life insurance policies | InsurancePolicy | 2 |
Number of former executives | executive | 2 |
Nonqualified Deferred Compensation Plan [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Percentage of compensation eligible to be deferred | 50.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Fair Value Measurements [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Assets | ||
Total assets | $ 2,319 | $ 1,506 |
Liabilities | ||
Total liabilities | 620 | 364 |
Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 574 | 364 |
Foreign Exchange Contracts [Member] | ||
Liabilities | ||
Total liabilities | 46 | |
Marketable Securities [Member] | ||
Assets | ||
Total assets | 343 | 319 |
Cash Surrender Value of Life Insurance Policies [Member] | ||
Assets | ||
Total assets | 1,976 | 1,187 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Total assets | 343 | 319 |
Liabilities | ||
Total liabilities | 574 | 364 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plans [Member] | ||
Liabilities | ||
Total liabilities | 574 | 364 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Foreign Exchange Contracts [Member] | ||
Liabilities | ||
Total liabilities | 0 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Marketable Securities [Member] | ||
Assets | ||
Total assets | 343 | 319 |
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 | 1,976 | 1,187 |
Liabilities | ||
Total liabilities | 46 | 0 |
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 Contracts [Member] | ||
Liabilities | ||
Total liabilities | 46 | |
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 | 1,976 | 1,187 |
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 Contracts [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 |
Recent Accounting Pronounceme39
Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 [Member] $ in Thousands | Mar. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred tax assets | $ 1,059 |
Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 1,059 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||
Payment to acquire business | $ 0 | $ 1,125 | |
Simplicity Creative Group | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payment to acquire business | $ 67,117 |