Cover page
Cover page - shares | 6 Months Ended | |
Aug. 31, 2019 | Oct. 04, 2019 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-14669 | |
Entity Registrant Name | HELEN OF TROY LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 74-2692550 | |
Entity Address, Address Line One | 1 Helen of Troy Plaza | |
Entity Address, State or Province | El Paso | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79912 | |
City Area Code | 915 | |
Local Phone Number | 225-8000 | |
Title of 12(b) Security | Common Shares, $0.10 Par Value Per Share | |
Trading Symbol | HELE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,163,993 | |
Entity Central Index Key | 0000916789 | |
Current Fiscal Year End Date | --02-28 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Other Address | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | Clarendon House, 2 Church Street | |
Entity Address, State or Province | Hamilton | |
Entity Address, State or Province | BM |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 31, 2019 | Feb. 28, 2019 |
Assets, current: | ||
Cash and cash equivalents | $ 17,031 | $ 11,871 |
Receivables - principally trade, less allowances of $1,350 and $2,032 | 310,377 | 280,280 |
Inventory | 370,915 | 302,339 |
Prepaid expenses and other current assets | 13,048 | 10,369 |
Total assets, current | 711,371 | 604,859 |
Property and equipment, net of accumulated depreciation of $130,059 and $123,744 | 131,164 | 130,338 |
Goodwill | 602,320 | 602,320 |
Other intangible assets, net of accumulated amortization of $189,771 and $181,463 | 283,186 | 291,526 |
Operating lease assets | 34,429 | |
Deferred tax assets, net | 12,398 | 7,991 |
Other assets, net of accumulated amortization of $2,161 and $2,115 | 1,085 | 12,501 |
Total assets | 1,775,953 | 1,649,535 |
Liabilities, current: | ||
Accounts payable, principally trade | 166,684 | 143,560 |
Accrued expenses and other current liabilities | 149,271 | 165,160 |
Income taxes payable | 18 | 1,427 |
Long-term debt, current maturities | 1,884 | 1,884 |
Total liabilities, current | 317,857 | 312,031 |
Long-term debt, excluding current maturities | 299,309 | 318,900 |
Lease liabilities, non-current | 42,470 | |
Deferred tax liabilities, net | 8,323 | 5,748 |
Other liabilities, non-current | 20,619 | 16,219 |
Total liabilities | 688,578 | 652,898 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued | 0 | 0 |
Common stock, $0.10 par. Authorized 50,000,000 shares; 25,130,204 and 24,946,046 shares issued and outstanding | 2,513 | 2,495 |
Additional paid in capital | 256,995 | 246,585 |
Accumulated other comprehensive income (loss) | (4,755) | 1,191 |
Retained earnings | 832,622 | 746,366 |
Total stockholders' equity | 1,087,375 | 996,637 |
Total liabilities and stockholders' equity | $ 1,775,953 | $ 1,649,535 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2019 | Feb. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables - principally trade, allowances (in dollars) | $ 1,350 | $ 2,032 |
Property and equipment, accumulated depreciation (in dollars) | 130,059 | 123,744 |
Other intangible assets, accumulated amortization (in dollars) | 189,771 | 181,463 |
Other assets, accumulated amortization (in dollars) | $ 2,161 | $ 2,115 |
Cumulative preferred stock, non-voting, par (in dollars per share) | $ 1 | $ 1 |
Cumulative preferred stock, non-voting, authorized shares (in shares) | 2,000,000 | 2,000,000 |
Cumulative preferred stock, non-voting, issued shares (in shares) | 0 | 0 |
Common stock, par (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 25,130,204 | 24,946,046 |
Common stock, shares outstanding (in shares) | 25,130,204 | 24,946,046 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales revenue, net | $ 413,995 | $ 393,548 | $ 790,330 | $ 748,227 |
Cost of goods sold | 235,844 | 238,375 | 458,452 | 446,496 |
Gross profit | 178,151 | 155,173 | 331,878 | 301,731 |
Selling, general and administrative expense (SG&A) | 123,201 | 103,654 | 229,102 | 205,160 |
Restructuring charges | 430 | 859 | 1,049 | 2,584 |
Operating income | 54,520 | 50,660 | 101,727 | 93,987 |
Non-operating income, net | 89 | 85 | 221 | 160 |
Interest expense | (3,216) | (2,755) | (6,524) | (5,442) |
Income before income tax | 51,393 | 47,990 | 95,424 | 88,705 |
Income tax expense | 5,298 | 3,973 | 8,635 | 6,515 |
Income from continuing operations | 46,095 | 44,017 | 86,789 | 82,190 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (381) |
Net income | $ 46,095 | $ 44,017 | $ 86,789 | $ 81,809 |
Earnings (loss) per share - basic: | ||||
Continuing operations (in dollars per share) | $ 1.84 | $ 1.67 | $ 3.46 | $ 3.11 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Total earnings per share - basic (in dollars per share) | 1.84 | 1.67 | 3.46 | 3.09 |
Earnings (loss) per share - diluted: | ||||
Continuing operations (in dollars per share) | 1.83 | 1.66 | 3.44 | 3.09 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Total earnings per share - diluted (in dollars per share) | $ 1.83 | $ 1.66 | $ 3.44 | $ 3.07 |
Weighted average shares of common stock used in computing earnings per share: | ||||
Basic (in shares) | 25,116 | 26,359 | 25,068 | 26,467 |
Diluted (in shares) | 25,245 | 26,557 | 25,245 | 26,612 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 46,095 | $ 44,017 | $ 86,789 | $ 81,809 |
Other comprehensive income (loss), net of tax: | ||||
Cash flow hedge activity - interest rate swaps | (3,168) | 101 | (7,161) | 205 |
Cash flow hedge activity - foreign currency contracts | 424 | 478 | 1,215 | 3,811 |
Total other comprehensive income (loss), net of tax | (2,744) | 579 | (5,946) | 4,016 |
Comprehensive income | $ 43,351 | $ 44,596 | $ 80,843 | $ 85,825 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Feb. 28, 2018 | 26,576,000 | ||||
Beginning balance at Feb. 28, 2018 | $ 1,014,459 | $ 2,658 | $ 230,676 | $ 631 | $ 780,494 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income from continuing operations | 82,190 | 82,190 | |||
Loss from discontinued operations | (381) | (381) | |||
Other comprehensive income (loss), net of tax | 4,016 | 4,016 | |||
Exercise of stock options (in shares) | 111,000 | ||||
Exercise of stock options | 5,515 | $ 11 | 5,504 | ||
Net issuance and settlement of restricted stock (in shares) | 140,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 14 | (14) | ||
Issuance of common stock related to stock purchase plan (in shares) | 17,000 | ||||
Issuance of common stock related to stock purchase plan | $ 1,335 | $ 2 | 1,333 | ||
Common stock repurchased and retired (in shares) | (57,072,000) | (464,000) | |||
Common stock repurchased and retired | $ (42,240) | $ (46) | (6,877) | (35,317) | |
Share-based compensation | 11,013 | 11,013 | |||
Ending balance (in shares) at Aug. 31, 2018 | 26,380,000 | ||||
Ending balance at Aug. 31, 2018 | 1,075,740 | $ 2,635 | 241,633 | 4,647 | 826,825 |
Beginning balance (in shares) at May. 31, 2018 | 26,317,000 | ||||
Beginning balance at May. 31, 2018 | 1,023,697 | $ 2,629 | 233,783 | 4,068 | 783,217 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income from continuing operations | 44,017 | 44,017 | |||
Loss from discontinued operations | 0 | ||||
Other comprehensive income (loss), net of tax | 579 | 579 | |||
Exercise of stock options (in shares) | 67,000 | ||||
Exercise of stock options | 3,459 | $ 7 | 3,452 | ||
Net issuance and settlement of restricted stock (in shares) | 3,000 | ||||
Net issuance and settlement of restricted stock | 0 | ||||
Issuance of common stock related to stock purchase plan | $ 0 | ||||
Common stock repurchased and retired (in shares) | (7,477,000) | (7,000) | |||
Common stock repurchased and retired | $ (692) | (292) | (400) | ||
Share-based compensation | 4,689 | 4,689 | |||
Ending balance (in shares) at Aug. 31, 2018 | 26,380,000 | ||||
Ending balance at Aug. 31, 2018 | 1,075,740 | $ 2,635 | 241,633 | 4,647 | 826,825 |
Beginning balance (in shares) at Feb. 28, 2019 | 24,946,000 | ||||
Beginning balance at Feb. 28, 2019 | 996,637 | $ 2,495 | 246,585 | 1,191 | 746,366 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income from continuing operations | 86,789 | 86,789 | |||
Other comprehensive income (loss), net of tax | $ (5,946) | (5,946) | |||
Exercise of stock options (in shares) | 61,765 | 62,000 | |||
Exercise of stock options | $ 3,633 | $ 6 | 3,627 | ||
Net issuance and settlement of restricted stock (in shares) | 178,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 18 | (18) | ||
Issuance of common stock related to stock purchase plan (in shares) | 15,000 | ||||
Issuance of common stock related to stock purchase plan | $ 1,408 | $ 1 | 1,407 | ||
Common stock repurchased and retired (in shares) | (70,558,000) | (71,000) | |||
Common stock repurchased and retired | $ (9,131) | $ (7) | (8,591) | (533) | |
Share-based compensation | 13,985 | 13,985 | |||
Ending balance (in shares) at Aug. 31, 2019 | 25,130,000 | ||||
Ending balance at Aug. 31, 2019 | 1,087,375 | $ 2,513 | 256,995 | (4,755) | 832,622 |
Beginning balance (in shares) at May. 31, 2019 | 25,101,000 | ||||
Beginning balance at May. 31, 2019 | 1,036,179 | $ 2,510 | 249,079 | (2,011) | 786,601 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income from continuing operations | 46,095 | 46,095 | |||
Other comprehensive income (loss), net of tax | $ (2,744) | (2,744) | |||
Exercise of stock options (in shares) | 26,368 | 27,000 | |||
Exercise of stock options | $ 1,807 | $ 2 | 1,805 | ||
Net issuance and settlement of restricted stock (in shares) | 5,000 | ||||
Net issuance and settlement of restricted stock | 0 | $ 1 | (1) | ||
Issuance of common stock related to stock purchase plan (in shares) | 0 | ||||
Issuance of common stock related to stock purchase plan | $ 0 | $ 0 | 0 | ||
Common stock repurchased and retired (in shares) | (2,354,000) | (3,000) | |||
Common stock repurchased and retired | $ (343) | (269) | (74) | ||
Share-based compensation | 6,381 | 6,381 | |||
Ending balance (in shares) at Aug. 31, 2019 | 25,130,000 | ||||
Ending balance at Aug. 31, 2019 | $ 1,087,375 | $ 2,513 | $ 256,995 | $ (4,755) | $ 832,622 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash provided by operating activities: | ||
Net income | $ 86,789 | $ 81,809 |
Less: Loss from discontinued operations | 0 | (381) |
Income from continuing operations | 86,789 | 82,190 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 16,116 | 15,295 |
Amortization of financing costs | 509 | 507 |
Non-cash operating lease asset amortization | 1,022 | |
Provision for doubtful receivables | 313 | 597 |
Non-cash share-based compensation | 13,985 | 11,013 |
(Gain) loss on the sale or disposal of property and equipment | (13) | 49 |
Deferred income taxes and tax credits | 4 | 5,650 |
Changes in operating capital, net of effects of acquisition of businesses: | ||
Receivables | (30,410) | (38,647) |
Inventories | (68,576) | (33,317) |
Prepaid expenses and other current assets | (2,333) | (5,169) |
Other assets and liabilities, net | 22,284 | (906) |
Accounts payable | 23,124 | 21,867 |
Accrued expenses and other current liabilities | (20,418) | (21,529) |
Accrued income taxes | (4,185) | (289) |
Net cash provided by operating activities - continuing operations | 38,211 | 37,311 |
Net cash used by operating activities - discontinued operations | 0 | (381) |
Net cash provided by operating activities | 38,211 | 36,930 |
Cash used by investing activities: | ||
Capital and intangible asset expenditures | (8,861) | (13,061) |
Proceeds from the sale of property and equipment | 0 | 0 |
Net cash used by investing activities - continuing operations | (8,861) | (13,061) |
Net cash used by investing activities - discontinued operations | 0 | 0 |
Net cash used by investing activities | (8,861) | (13,061) |
Cash used by financing activities: | ||
Proceeds from line of credit | 283,400 | 292,300 |
Repayment of line of credit | (301,600) | (279,700) |
Repayment of long-term debt | (1,900) | (1,900) |
Proceeds from share issuances under share-based compensation plans | 5,041 | 6,848 |
Payments for repurchases of common stock | (9,131) | (42,240) |
Net cash used by financing activities - continuing operations | (24,190) | (24,692) |
Net cash used by financing activities - discontinued operations | 0 | 0 |
Net cash used by financing activities | (24,190) | (24,692) |
Net decrease in cash and cash equivalents | 5,160 | (823) |
Cash and cash equivalents, beginning balance | 11,871 | 20,738 |
Cash and cash equivalents, ending balance | 17,031 | 19,915 |
Less: Cash and cash equivalents of discontinued operations, ending balance | 0 | 0 |
Cash and cash equivalents of continuing operations, ending balance | 17,031 | $ 19,915 |
Supplemental non-cash items not included above resulting from the adoption of ASC 842 | ||
Initial recognition of lease liabilities | $ 45,625 |
Basis of Presentation and Relat
Basis of Presentation and Related Information | 6 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Related Information | Basis of Presentation and Related Information The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of August 31, 2019 and February 28, 2019 , and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 28, 2019 , and our other reports on file with the Securities and Exchange Commission (“SEC”). When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to the "FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to United States (“U.S.”) generally accepted accounting principles. References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB. References to "ASC" refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB. We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994. We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products. We have three segments: Housewares, Health & Home, and Beauty. Our Housewares segment provides a broad range of innovative consumer products for the home. Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage, food containers and coolers. The Health & Home segment focuses on health care devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices. Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products. On December 20, 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC. The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements. For more information, see Note 5 to these condensed consolidated financial statements. All other notes present results from continuing operations. Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30 th . We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States. Our condensed consolidated financial statements are prepared in U.S. Dollars. All intercompany accounts and transactions are eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Except for the changes discussed below, there have been no changes in the information provided in our Form 10-K for the fiscal year ended February 28, 2019. Adopted in Fiscal 2020 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4). In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815) |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Aug. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We adopted the provisions of ASU 2014-9 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized was not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance did however impact the classification of certain consideration paid to our customers. We therefore reclassified an immaterial amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented. We elected to adopt the guidance using the full retrospective method. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. In accordance with the guidance, most variable consideration is classified as a reduction to net sales. |
Leases
Leases | 6 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of the new lease standard resulted in the recording of lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. The new standard did not materially impact our consolidated statements of income or cash flows. The Company primarily has leases for office space, which are classified as operating leases. Operating leases are included in operating lease assets, accrued expenses and other current liabilities, and lease liabilities, non-current in our consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use an estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We include options to extend or terminate the lease in the lease term for accounting considerations, when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 14 years. Lease expense for lease payments is recognized on a straight-line basis over the lease term in a manner similar to previous accounting guidance. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the condensed consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under the new guidance, operating lease expense recognized in the condensed consolidated statements of income during the three and six month periods ended August 31, 2019 was $1.7 million and $3.3 million , respectively. Short-term lease expense is excluded from this amount and is not material. The non-cash component of lease expense is included as an adjustment to reconcile income from continuing operations to net cash provided by operating activities in the condensed consolidated statements of cash flows. A summary of supplemental lease information is as follows: August 31, 2019 Weighted average remaining lease term (years) 11.1 Weighted average discount rate 6.09 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,112 A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) Fiscal 2020 (balance for remainder of fiscal year) $ 2,470 Fiscal 2021 6,082 Fiscal 2022 5,959 Fiscal 2023 5,601 Fiscal 2024 5,102 Thereafter 40,132 Total future lease payments 65,346 Less: imputed interest (19,721 ) Present value of lease liability $ 45,625 August 31, 2019 Lease liabilities, current (1) $ 3,155 Lease liabilities, non-current 42,470 Total lease liability $ 45,625 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Aug. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million , payable on or before August 1, 2019. During fiscal 2019, the final amount of the supplemental payment was adjusted to $10.8 million based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018. The adjustment resulted in a corresponding pre-tax charge of $5.8 million ( $4.4 million after tax) to discontinued operations. The supplemental payment of $10.8 million was received during the second quarter of fiscal 2020. Also, during fiscal 2019, we recorded additional net charges of $1.5 million ( $1.3 million |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Aug. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information PROPERTY AND EQUIPMENT (in thousands) Estimated Useful Lives (Years) August 31, 2019 February 28, 2019 Land - $ 12,644 $ 12,644 Building and improvements 3 - 40 113,619 113,820 Computer, software, furniture and other equipment 3 - 15 86,699 84,711 Tools, molds and other production equipment 3 - 7 37,000 36,378 Construction in progress - 11,261 6,529 Property and equipment, gross 261,223 254,082 Less accumulated depreciation (130,059 ) (123,744 ) Property and equipment, net $ 131,164 $ 130,338 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (in thousands) August 31, 2019 February 28, 2019 Accrued compensation, benefits and payroll taxes $ 29,159 $ 36,782 Accrued sales discounts and allowances 28,924 28,655 Accrued sales returns 21,359 23,316 Accrued advertising 28,060 26,549 Other 41,769 49,858 Total accrued expenses and other current liabilities $ 149,271 $ 165,160 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets We perform annual impairment tests each fiscal year during the fourth quarter and interim impairment tests, if and when necessary. For the three and six month periods ended August 31, 2019 and 2018, we did not record any impairment charges. The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented: August 31, 2019 February 28, 2019 (in thousands) Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ 282,056 $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — 134,200 134,200 — — 134,200 Other intangibles - finite 41,328 — (20,066 ) 21,262 41,417 — (19,398 ) 22,019 Subtotal 457,584 — (20,066 ) 437,518 457,673 — (19,398 ) 438,275 Health & Home: Goodwill 284,913 — — 284,913 284,913 — — 284,913 Trademarks - indefinite 54,000 — — 54,000 54,000 — — 54,000 Licenses - finite 17,050 — (15,577 ) 1,473 17,050 — (15,402 ) 1,648 Licenses - indefinite 7,400 — — 7,400 7,400 — — 7,400 Other intangibles - finite 118,024 — (93,373 ) 24,651 117,967 — (87,953 ) 30,014 Subtotal 481,387 — (108,950 ) 372,437 481,330 — (103,355 ) 377,975 Beauty: Goodwill 81,841 (46,490 ) — 35,351 81,841 (46,490 ) — 35,351 Trademarks - indefinite — — — — 30,407 — — 30,407 Trademarks - finite 30,557 — (1,956 ) 28,601 150 — (102 ) 48 Licenses - indefinite 10,300 — — 10,300 10,300 — — 10,300 Licenses - finite 13,696 — (12,641 ) 1,055 13,696 — (12,482 ) 1,214 Other intangibles - finite 46,402 — (46,158 ) 244 46,402 — (46,126 ) 276 Subtotal 182,796 (46,490 ) (60,755 ) 75,551 182,796 (46,490 ) (58,710 ) 77,596 Total $ 1,121,767 $ (46,490 ) $ (189,771 ) $ 885,506 $ 1,121,799 $ (46,490 ) $ (181,463 ) $ 893,846 After discontinuing the formal sale process and revising the strategic initiatives for our Personal Care business during the first quarter of fiscal year 2020, we changed trademarks related to the business with a net book value of $30.4 million from indefinite lived to finite lived assets. The amortization of these trademarks is now included in amortization expense for the six months ended August 31, 2019 , and these assets are expected to be fully amortized by the end of fiscal year 2027. The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2020 through 2025: Aggregate Amortization Expense For the three months ended (in thousands) August 31, 2019 $ 4,463 August 31, 2018 3,402 Aggregate Amortization Expense For the six months ended (in thousands) August 31, 2019 $ 8,339 August 31, 2018 7,522 Estimated Amortization Expense (in thousands) Fiscal 2020 $ 17,691 Fiscal 2021 16,135 Fiscal 2022 9,037 Fiscal 2023 8,847 Fiscal 2024 8,441 Fiscal 2025 6,977 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Aug. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans We have equity awards outstanding under several share-based compensation plans. During the three and six months ended August 31, 2019 , we had the following share-based compensation activity: • We issued 1,048 and 2,304 shares to non-employee Board members with a total grant date fair value of $0.1 and $0.2 million , respectively, and share prices of $134.21 and $121.99 , respectively. • We granted time-vested restricted stock units ("RSUs") that may be settled for 8 and 3,279 shares of common stock, respectively. The RSU grants have a weighted average grant price of $150.86 and $111.51 per share, respectively. For the three months ended August 31, 2019, the total award fair value was insignificant. For the six months ended August 31, 2019, the total award fair value at date of grant was $0.4 million. • We granted time-vested restricted stock awards ("RSAs") that may be vested for 4,920 and 45,772 shares of common stock, respectively. The RSA grants have a weighted average grant price of $138.86 and $113.98 per share, respectively, for a total award fair value at date of grant of $0.7 million and $5.2 million, respectively. • There were no grants of performance-based stock units ("PSUs") during the three months ended August 31, 2019. For the six months ended August 31, 2019, we granted PSUs that may be settled for 6,088 shares of common stock. The PSU grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $0.7 million. • There were no grants of performance-based restricted stock awards ("PSAs") during the three months ended August 31, 2019. For the six months ended August 31, 2019, we granted PSAs that are targeted to be vested for 122,402 shares of common stock. The PSA grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $13.6 million. • RSUs for 3,489 and 66,329 shares vested and settled, respectively, with a total fair value at settlement of $0.5 and $7.6 million and a weighted average share price of $146.26 and $114.58 , respectively. • There were no PSUs shares vested and settled during the three months ended August 31, 2019. For the six months ended August 31, 2019, there were 108,572 shares vested and settled with a total fair value at settlement of $14.7 million, and a weighted average share price of $135.85 . • RSAs for 928 shares vested and settled with a total fair value at settlement of $0.1 million and a weighted average share price of $150.86 during the three and six month periods ended August 31, 2019. • Employees exercised stock options to purchase 26,368 and 61,765 shares of common stock, respectively. • There were no purchases of common stock under the employee stock purchase plan during the three months ended August 31, 2019. For the six months ended August 31, 2019, employees purchased 14,790 shares of common stock under the employee stock purchase plan at an average price of $95.29 per share. We recorded the following share-based compensation expense in SG&A for the periods shown below: Three Months Ended August 31, (in thousands, except per share data) 2019 2018 Stock options $ 35 $ 219 Directors stock compensation 141 123 Performance based and other stock awards 6,205 4,347 Employee stock purchase plan — — Share-based compensation expense 6,381 4,689 Less income tax benefits (514 ) (341 ) Share-based compensation expense, net of income tax benefits $ 5,867 $ 4,348 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.23 $ 0.16 Diluted $ 0.23 $ 0.16 Six Months Ended August 31, (in thousands, except per share data) 2019 2018 Stock options $ 151 $ 527 Directors stock compensation 281 246 Performance based and other stock awards 13,228 9,918 Employee stock purchase plan 325 322 Share-based compensation expense 13,985 11,013 Less income tax benefits (1,091 ) (611 ) Share-based compensation expense, net of income tax benefits $ 12,894 $ 10,402 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.51 $ 0.39 Diluted $ 0.51 $ 0.39 |
Repurchases of Helen of Troy Co
Repurchases of Helen of Troy Common Stock | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Repurchase of Helen of Troy Common Stock | Repurchase of Helen of Troy Common Stock On May 20, 2019, we announced that our Board of Directors had authorized the repurchase of up to $400 million of our outstanding common stock. The authorization is effective May 8, 2019 for a period of three years and replaced Helen of Troy's previous repurchase authorization, of which approximately $107.4 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. As of August 31, 2019 , our repurchase authorization allowed for the purchase of $394.0 million of common stock. Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the equity holder can be paid for by having the equity holder tender back to the Company a number of shares at fair value equal to the amounts due. Net exercises are treated as purchases and retirements of shares. The following table summarizes our share repurchase activity for the periods shown: Three Months Ended August 31, Six Months Ended August 31, (in thousands, except share and per share data) 2019 2018 2019 2018 Common stock repurchased on the open market: Number of shares — — — 407,025 Aggregate value of shares $ — $ — $ — $ 37,067 Average price per share $ — $ — $ — $ 91.07 Common stock received in connection with share-based compensation: Number of shares 2,354 7,477 70,558 57,072 Aggregate value of shares $ 344 $ 692 $ 9,131 $ 5,173 Average price per share $ 145.96 $ 92.55 $ 129.42 $ 90.65 |
Restructuring Plan
Restructuring Plan | 6 Months Ended |
Aug. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Restructuring Plan In October 2017, we announced that we had approved a restructuring plan (referred to as “Project Refuel”). Project Refuel includes a reduction-in-force and the elimination of certain contracts and operating expenses. We are targeting total annualized profit improvements of approximately $8.0 to $10.0 million over the duration of the plan. We estimate the plan will be completed during fiscal 2020, and expect to incur total restructuring charges of approximately $7.0 million over the duration of the plan. Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically. For the three and six month periods ended August 31, 2019 , we incurred $0.4 million and $1.0 million , respectively, of pre-tax restructuring charges related primarily to employee severance and termination benefits and lease termination costs. Since implementing Project Refuel, we have incurred $6.4 million of pre-tax restructuring costs related to employee severance and termination benefits and contract termination costs as of August 31, 2019 . During the three and six month periods ended August 31, 2019, we made total cash restructuring payments of $0.9 million and $1.5 million , respectively. Since implementing Project Refuel, we have made total cash restructuring payments of $5.8 million . We had a remaining liability of $0.7 million as of August 31, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters – On May 31, 2018, we settled a patent infringement dispute related to two forehead thermometer models sold by our subsidiary, Kaz USA, Inc., in the United States and made a settlement payment of $15.0 million , which was accrued in prior periods along with related legal fees and other costs. We are involved in various other legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Lease Commitments – The implementation of the new lease guidance (ASC 842) using the effective date method requires the disclosure of our lease commitments from our latest annual report on Form 10-K for the interim periods during the first year of adoption (see Note 4). The lease commitments as of February 28, 2019 were as follows: Fiscal Years Ended the Last Day of February: 2020 2021 2022 2023 2024 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Operating leases $ 69,482 $ 5,171 $ 6,678 $ 6,411 $ 5,743 $ 5,078 $ 40,401 The minimum rental payments for operating leases presented above were determined in accordance with the previous lease guidance (ASC 840). Note 4 presents a summary of our estimated lease payments, imputed interest and liabilities as of August 31, 2019 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provided for an unsecured total revolving commitment of $1.0 billion as of August 31, 2019 . The commitment under the Credit Agreement terminates on December 7, 2021. Borrowings accrue interest under one of two alternative methods (based upon a base rate of LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time. We also incur loan commitment fees and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. As of August 31, 2019 , the outstanding revolving loan principal balance was $283.0 million (excluding prepaid financing fees) and the face amount of outstanding letters of credit was $9.0 million . For the three and six month periods ended August 31, 2019 , borrowings under the Credit Agreement incurred interest charges at rates ranging from 3.1% to 5.5% . For the three and six month periods ended August 31, 2018 , borrowings under the Credit Agreement incurred interest charges at rates ranging from 2.9% to 5.0% and 2.8% to 5.0% , respectively. As of August 31, 2019 , the amount available for borrowings under the Credit Agreement was $708.0 million . Covenants in our debt agreements limit the amount of total indebtedness we can incur. As of August 31, 2019 , these covenants effectively limited our ability to incur more than $609.0 million of additional debt from all sources, including our Credit Agreement, or $708.0 million in the event a qualified acquisition is consummated. The following table summarizes our long-term debt as of the end of the periods shown: (in thousands) Original Date Borrowed Interest Rates Matures August 31, 2019 February 28, 2019 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) 03/13 Floating 03/23 $ 20,443 $ 22,335 Credit Agreement (2) 01/15 Floating 12/21 280,750 298,449 Total long-term debt 301,193 320,784 Less current maturities of long-term debt (1,884 ) (1,884 ) Long-term debt, excluding current maturities $ 299,309 $ 318,900 (1) The MBFC Loan is unsecured with an original balance of $37.6 million and incurs floating interest based on applicable LIBOR plus a margin of up to 2.0% , or a Base Rate plus a margin of up to 1.0% , as determined by the interest rate elected and the Leverage Ratio. The loan is subject to holder’s call on or after March 1, 2018. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement. Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps. At August 31, 2019 and February 28, 2019 , our long-term debt has floating interest rates, and its book value approximates its fair value. All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio (as each of these terms is defined in the agreements). Our debt agreements also contain other customary covenants. We were in compliance with the terms of these agreements as of August 31, 2019 . |
Fair Value
Fair Value | 6 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We classify our various assets and liabilities recorded or reported at fair value under a hierarchy prescribed by GAAP that prioritizes inputs to fair value measurement techniques into three broad levels: Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assets and liabilities subject to classification are classified upon acquisition. When circumstances dictate the transfer of an asset or liability to a different level, our policy is to recognize the transfer at the beginning of the reporting period in which the event resulting in the transfer occurred. The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the end of the periods shown: Fair Values at August 31, 2019 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,232 Interest rate swaps — Foreign currency contracts 3,482 Total assets $ 4,714 Liabilities: Floating rate debt $ 301,193 Interest rate swaps 9,152 Foreign currency contracts — Total liabilities $ 310,345 Fair Values at February 28, 2019 (in thousands) (Level 2) (1) Assets: Money market accounts $ 915 Interest rate swaps 512 Foreign currency contracts 1,692 Total assets $ 3,119 Liabilities: Floating rate debt $ 320,784 Interest rate swaps 339 Foreign currency contracts 563 Total liabilities $ 321,686 (1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items. We use derivatives for hedging purposes and our derivatives are primarily interest rate swaps, foreign currency contracts and cross-currency debt swaps. See Notes 12 and 14 to these condensed consolidated financial statements for more information on our hedging activities. We classify our floating rate debt as a Level 2 item because the estimation of the fair market value requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms. Such comparable rates are considered significant other observable market inputs. The book value of the floating rate debt approximates its fair value as of the reporting date. Our other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of our impairment testing. Note 7 to these condensed consolidated financial statements contains additional information related to intangible asset impairments. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 6 Months Ended |
Aug. 31, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management Foreign Currency Risk - Our functional currency is the U.S. Dollar. By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”). Such transactions include sales, certain inventory purchases and operating expenses. As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies. During the three and six month periods ended August 31, 2019 , approximately 14% and 13% of our net sales revenue was in foreign currencies, respectively. During the three and six month periods ended August 31, 2018, approximately 11% and 13% of our net sales revenue was in foreign currencies, respectively. These sales were primarily denominated in Euros, British Pounds, Canadian Dollars, and Mexican Pesos. We make most of our inventory purchases from the Far East and primarily use the U.S. Dollar for such purchases. In our condensed consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A. During the three and six month periods ended August 31, 2019, we recorded net foreign exchange gains from remeasurement, including the impact of currency hedges and the cross-currency debt swaps, of $0.8 million and $1.6 million , respectively, in SG&A. We recorded net foreign exchange gains from remeasurement, including the impact of foreign currency hedges and cross currency debt swaps of $0.5 million and losses of $1.2 million in SG&A during the three and six month periods ended August 31, 2018, respectively. We hedge against certain foreign currency exchange rate-risk by using a series of forward contracts and zero-cost collars designated as cash flow hedges and mark-to-market derivatives to protect against the foreign currency exchange risk inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. We do not enter into any forward exchange contracts or similar instruments for trading or other speculative purposes. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A in the same period they are settled. The ineffective portion, which is not material for any year presented, is immediately recognized in SG&A. Interest Rate Risk - Interest on our outstanding debt as of August 31, 2019 is based on floating interest rates. If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225.0 million of the outstanding principal balance under the Credit Agreement, which totaled $283.0 million (excluding prepaid finance fees) as of August 31, 2019 . The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: (in thousands) August 31, 2019 Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities, Non- current Zero-cost dollar - Euro Cash flow 02/2021 € 16,000 $ 207 $ 31 $ — $ — Foreign currency contracts - sell Euro Cash flow 12/2020 € 12,750 661 89 — — Foreign currency contracts - sell Canadian Dollars Cash flow 01/2021 $ 14,250 125 8 — — Zero-cost dollar - Pound Cash flow 02/2021 £ 10,250 237 49 — — Foreign currency contracts - sell Pound Cash flow 02/2021 £ 13,500 1,086 195 — — Foreign currency contracts - sell Mexican Pesos Cash flow 02/2020 $ 40,000 13 — — — Foreign currency contracts - Sell Australian Dollars Cash flow 10/2019 $ 2,000 46 — — — Interest rate swaps Cash flow 01/2024 $ 225,000 — — 2,513 6,639 Subtotal 2,375 372 2,513 6,639 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 € 5,280 431 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 6,395 304 — — — Subtotal 735 — — — Total fair value $ 3,110 $ 372 $ 2,513 $ 6,639 (in thousands) February 28, 2019 Derivatives designated as hedging instruments Hedge Type Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost dollar - Euro Cash flow 02/2020 € 9,500 $ 11 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 01/2020 € 29,000 1,047 — — — Foreign currency contracts - sell Canadian Dollars Cash flow 02/2020 $ 16,000 168 — — — Zero-cost dollar - Pound Cash flow 05/2020 £ 4,500 — — 200 — Foreign currency contracts - sell Pound Cash flow 05/2020 £ 19,500 248 — — 13 Foreign currency contracts - sell Mexican Pesos Cash flow 09/2019 $ 30,000 — — 58 — Interest rate swaps Cash flow 01/2024 $ 225,000 512 — — 339 Subtotal 1,986 — 258 352 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 € 5,280 — 218 — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 6,395 — — — 292 Subtotal — 218 — 292 Total fair value $ 1,986 $ 218 $ 258 $ 644 (1) These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. The following table summarizes the pre-tax effect of derivative instruments for the periods shown: Three Months Ended August 31, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2019 2018 Location 2019 2018 Location 2019 2018 Currency contracts - cash flow hedges $ (482 ) $ (51 ) SG&A $ (992 ) $ (610 ) $ — $ — Interest rate swaps - cash flow hedges (4,126 ) 137 Interest expense — — Interest expense 77 136 Cross-currency debt swaps - principal — — — — SG&A 344 243 Cross-currency debt swaps - interest — — — — Interest Expense — — Total $ (4,608 ) $ 86 $ (992 ) $ (610 ) $ 421 $ 379 Six Months Ended August 31, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2019 2018 Location 2019 2018 Location 2019 2018 Currency contracts - cash flow hedges $ (668 ) $ 4,525 SG&A $ (2,210 ) $ 77 $ — $ — Interest rate swaps - cash flow hedges (9,326 ) 76 Interest expense — — Interest expense 231 211 Cross-currency debt swaps - principal — — — — SG&A 808 666 Cross-currency debt swaps - interest — — — — Interest expense 74 74 Total $ (9,994 ) $ 4,601 $ (2,210 ) $ 77 $ 1,113 $ 951 We expect pre-tax losses of $0.1 million associated with foreign currency contracts and interest rate swaps currently reported in accumulated other comprehensive income, to be reclassified into income over the next twelve months . The amount ultimately realized, however, will differ as exchange rates vary and the underlying contracts settle. Counterparty Credit Risk - Financial instruments, including foreign currency contracts and cross currency debt swaps, expose us to counterparty credit risk for non-performance. We manage our exposure to counterparty credit risk by only dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit losses is remote. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables present segment information included in continuing operations for the periods shown: Three Months Ended August 31, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 167,864 $ 158,790 $ 87,341 $ 413,995 Restructuring charges 2 — 428 430 Operating income 35,698 12,408 6,414 54,520 Capital and intangible asset expenditures 3,215 1,518 410 5,143 Depreciation and amortization 1,416 4,269 2,664 8,349 Three Months Ended August 31, 2018 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 137,498 $ 175,783 $ 80,267 $ 393,548 Restructuring charges — — 859 859 Operating income 28,329 13,631 8,700 50,660 Capital and intangible asset expenditures 5,642 2,466 771 8,879 Depreciation and amortization 1,522 4,229 1,562 7,313 Six Months Ended August 31, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 312,806 $ 313,733 $ 163,791 $ 790,330 Restructuring charges 90 — 959 1,049 Operating income 66,898 27,464 7,365 101,727 Capital and intangible asset expenditures 6,082 2,198 581 8,861 Depreciation and amortization 3,029 8,582 4,505 16,116 Six Months Ended August 31, 2018 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 254,801 $ 339,214 $ 154,212 $ 748,227 Restructuring charges 760 358 1,466 2,584 Operating income 50,512 33,288 10,187 93,987 Capital and intangible asset expenditures 7,296 4,655 1,110 13,061 Depreciation and amortization 3,006 8,377 3,912 15,295 We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, restructuring charges, and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment. We do not allocate non-operating income and expense, including interest or income taxes, to operating segments. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items. For the three months ended August 31, 2019 , income tax expense as a percentage of income before income tax was 10.3% compared to 8.3% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions and increases in certain statutory tax rates. For the six months ended August 31, 2019 , income tax expense as a percentage of income before income tax was 9.0% , which included $0.8 million of tax benefits from share-based compensation settlements, $1.7 million of expense from the remeasurement of deferred taxes due to tax rate changes, and a $2.8 million benefit from the resolution of an uncertain tax position. Income tax expense as a percentage of income before income tax was 7.3% for the same period last year, which included $0.5 million tax benefits from share-based compensation settlements and a $0.8 million benefit from the lapse of the statute of limitations related to an uncertain tax position. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions and increases in certain statutory tax rates. During fiscal 2017, we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure. We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state. We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity. Our Macau subsidiary generates income from the sale of the goods that it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We currently have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. The Macau Offshore Law and its supplementary regulations that grant tax incentives to approved offshore institutions will be abolished on January 1, 2021. Existing approved offshore institutions such as ours can continue to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, we believe our Macau subsidiary will become subject to a statutory corporate income tax of approximately 12%. The ultimate impact of this change, if any, on our overall effective tax rate will depend on a variety of factors including our mix of income by jurisdiction, transfer pricing considerations and the specific tax regulations applicable to us when we are no longer under the Macau Offshore regime. It is not practicable for us to determine the potential impact on our financial statements until the tax changes in Macau are fully established and our transfer pricing analysis is complete. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We compute basic earnings per share using the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share using the weighted average number of shares of common stock outstanding plus the effect of dilutive securities. Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested RSUs, PSUs, RSAs, PSAs and other stock based awards. See Note 8 to these condensed consolidated financial statements for more information regarding stock-based awards. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. The following table presents our weighted average basic and diluted shares for the periods shown: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Weighted average shares outstanding, basic 25,116 26,359 25,068 26,467 Incremental shares from share-based compensation arrangements 129 198 177 145 Weighted average shares outstanding, diluted 25,245 26,557 25,245 26,612 Antidilutive securities 166 194 259 352 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive income (Loss) | 6 Months Ended |
Aug. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown: (in thousands) Interest Rate Swaps Foreign Currency Contracts Total Balance at February 28, 2018 $ 1,705 $ (1,074 ) $ 631 Other comprehensive income (loss) before reclassification 76 4,525 4,601 Amounts reclassified out of accumulated other comprehensive income — (77 ) (77 ) Tax effects 129 (637 ) (508 ) Other comprehensive income (loss) 205 3,811 4,016 Balance at August 31, 2018 $ 1,910 $ 2,737 $ 4,647 Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive income (loss) before reclassification (9,326 ) (668 ) (9,994 ) Amounts reclassified out of accumulated other comprehensive income — 2,210 2,210 Tax effects 2,165 (327 ) 1,838 Other comprehensive income (loss) (7,161 ) 1,215 (5,946 ) Balance at August 31, 2019 $ (7,029 ) $ 2,274 $ (4,755 ) |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Aug. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy | Adopted in Fiscal 2020 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million , respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4). In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815) , which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Leases [Abstract] | |
Additional Lease Information | A summary of supplemental lease information is as follows: August 31, 2019 Weighted average remaining lease term (years) 11.1 Weighted average discount rate 6.09 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,112 |
Schedule of Operating Lease Maturities | A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) Fiscal 2020 (balance for remainder of fiscal year) $ 2,470 Fiscal 2021 6,082 Fiscal 2022 5,959 Fiscal 2023 5,601 Fiscal 2024 5,102 Thereafter 40,132 Total future lease payments 65,346 Less: imputed interest (19,721 ) Present value of lease liability $ 45,625 |
Schedule of Lease Liabilities | August 31, 2019 Lease liabilities, current (1) $ 3,155 Lease liabilities, non-current 42,470 Total lease liability $ 45,625 (1) Included as part of "Accrued expenses and other current liabilities" on the condensed consolidated balance sheet. |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of property and equipment | PROPERTY AND EQUIPMENT (in thousands) Estimated Useful Lives (Years) August 31, 2019 February 28, 2019 Land - $ 12,644 $ 12,644 Building and improvements 3 - 40 113,619 113,820 Computer, software, furniture and other equipment 3 - 15 86,699 84,711 Tools, molds and other production equipment 3 - 7 37,000 36,378 Construction in progress - 11,261 6,529 Property and equipment, gross 261,223 254,082 Less accumulated depreciation (130,059 ) (123,744 ) Property and equipment, net $ 131,164 $ 130,338 |
Schedule of accrued expenses and other current liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (in thousands) August 31, 2019 February 28, 2019 Accrued compensation, benefits and payroll taxes $ 29,159 $ 36,782 Accrued sales discounts and allowances 28,924 28,655 Accrued sales returns 21,359 23,316 Accrued advertising 28,060 26,549 Other 41,769 49,858 Total accrued expenses and other current liabilities $ 149,271 $ 165,160 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment | The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented: August 31, 2019 February 28, 2019 (in thousands) Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Gross Carrying Amount Cumulative Goodwill Impairments Accumulated Amortization Net Book Value Housewares: Goodwill $ 282,056 $ — $ — $ 282,056 $ 282,056 $ — $ — $ 282,056 Trademarks - indefinite 134,200 — — 134,200 134,200 — — 134,200 Other intangibles - finite 41,328 — (20,066 ) 21,262 41,417 — (19,398 ) 22,019 Subtotal 457,584 — (20,066 ) 437,518 457,673 — (19,398 ) 438,275 Health & Home: Goodwill 284,913 — — 284,913 284,913 — — 284,913 Trademarks - indefinite 54,000 — — 54,000 54,000 — — 54,000 Licenses - finite 17,050 — (15,577 ) 1,473 17,050 — (15,402 ) 1,648 Licenses - indefinite 7,400 — — 7,400 7,400 — — 7,400 Other intangibles - finite 118,024 — (93,373 ) 24,651 117,967 — (87,953 ) 30,014 Subtotal 481,387 — (108,950 ) 372,437 481,330 — (103,355 ) 377,975 Beauty: Goodwill 81,841 (46,490 ) — 35,351 81,841 (46,490 ) — 35,351 Trademarks - indefinite — — — — 30,407 — — 30,407 Trademarks - finite 30,557 — (1,956 ) 28,601 150 — (102 ) 48 Licenses - indefinite 10,300 — — 10,300 10,300 — — 10,300 Licenses - finite 13,696 — (12,641 ) 1,055 13,696 — (12,482 ) 1,214 Other intangibles - finite 46,402 — (46,158 ) 244 46,402 — (46,126 ) 276 Subtotal 182,796 (46,490 ) (60,755 ) 75,551 182,796 (46,490 ) (58,710 ) 77,596 Total $ 1,121,767 $ (46,490 ) $ (189,771 ) $ 885,506 $ 1,121,799 $ (46,490 ) $ (181,463 ) $ 893,846 |
Summary of amortization expense attributable to intangible assets | The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2020 through 2025: Aggregate Amortization Expense For the three months ended (in thousands) August 31, 2019 $ 4,463 August 31, 2018 3,402 Aggregate Amortization Expense For the six months ended (in thousands) August 31, 2019 $ 8,339 August 31, 2018 7,522 |
Schedule of estimated amortization expense of intangible assets | Estimated Amortization Expense (in thousands) Fiscal 2020 $ 17,691 Fiscal 2021 16,135 Fiscal 2022 9,037 Fiscal 2023 8,847 Fiscal 2024 8,441 Fiscal 2025 6,977 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation expense in SG&A | We recorded the following share-based compensation expense in SG&A for the periods shown below: Three Months Ended August 31, (in thousands, except per share data) 2019 2018 Stock options $ 35 $ 219 Directors stock compensation 141 123 Performance based and other stock awards 6,205 4,347 Employee stock purchase plan — — Share-based compensation expense 6,381 4,689 Less income tax benefits (514 ) (341 ) Share-based compensation expense, net of income tax benefits $ 5,867 $ 4,348 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.23 $ 0.16 Diluted $ 0.23 $ 0.16 Six Months Ended August 31, (in thousands, except per share data) 2019 2018 Stock options $ 151 $ 527 Directors stock compensation 281 246 Performance based and other stock awards 13,228 9,918 Employee stock purchase plan 325 322 Share-based compensation expense 13,985 11,013 Less income tax benefits (1,091 ) (611 ) Share-based compensation expense, net of income tax benefits $ 12,894 $ 10,402 Impact of share-based compensation on earnings per share from continuing operations: Basic $ 0.51 $ 0.39 Diluted $ 0.51 $ 0.39 |
Repurchase of Helen of Troy Com
Repurchase of Helen of Troy Common Stock (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Equity [Abstract] | |
Summary of share repurchase activity | The following table summarizes our share repurchase activity for the periods shown: Three Months Ended August 31, Six Months Ended August 31, (in thousands, except share and per share data) 2019 2018 2019 2018 Common stock repurchased on the open market: Number of shares — — — 407,025 Aggregate value of shares $ — $ — $ — $ 37,067 Average price per share $ — $ — $ — $ 91.07 Common stock received in connection with share-based compensation: Number of shares 2,354 7,477 70,558 57,072 Aggregate value of shares $ 344 $ 692 $ 9,131 $ 5,173 Average price per share $ 145.96 $ 92.55 $ 129.42 $ 90.65 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | The lease commitments as of February 28, 2019 were as follows: Fiscal Years Ended the Last Day of February: 2020 2021 2022 2023 2024 After (in thousands) Total 1 year 2 years 3 years 4 years 5 years 5 years Operating leases $ 69,482 $ 5,171 $ 6,678 $ 6,411 $ 5,743 $ 5,078 $ 40,401 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | The following table summarizes our long-term debt as of the end of the periods shown: (in thousands) Original Date Borrowed Interest Rates Matures August 31, 2019 February 28, 2019 Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1) 03/13 Floating 03/23 $ 20,443 $ 22,335 Credit Agreement (2) 01/15 Floating 12/21 280,750 298,449 Total long-term debt 301,193 320,784 Less current maturities of long-term debt (1,884 ) (1,884 ) Long-term debt, excluding current maturities $ 299,309 $ 318,900 (1) The MBFC Loan is unsecured with an original balance of $37.6 million and incurs floating interest based on applicable LIBOR plus a margin of up to 2.0% , or a Base Rate plus a margin of up to 1.0% , as determined by the interest rate elected and the Leverage Ratio. The loan is subject to holder’s call on or after March 1, 2018. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. (2) Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement. Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of financial assets and liabilities presented at fair value and measured on a recurring basis | The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the end of the periods shown: Fair Values at August 31, 2019 (in thousands) (Level 2) (1) Assets: Money market accounts $ 1,232 Interest rate swaps — Foreign currency contracts 3,482 Total assets $ 4,714 Liabilities: Floating rate debt $ 301,193 Interest rate swaps 9,152 Foreign currency contracts — Total liabilities $ 310,345 Fair Values at February 28, 2019 (in thousands) (Level 2) (1) Assets: Money market accounts $ 915 Interest rate swaps 512 Foreign currency contracts 1,692 Total assets $ 3,119 Liabilities: Floating rate debt $ 320,784 Interest rate swaps 339 Foreign currency contracts 563 Total liabilities $ 321,686 (1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of fair values of derivative instruments | The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: (in thousands) August 31, 2019 Derivatives designated as hedging instruments Hedge Type Final Settlement Date Notional Amount Prepaid Expenses and Other Current Assets Other Assets Accrued Expenses and Other Current Liabilities Other Liabilities, Non- current Zero-cost dollar - Euro Cash flow 02/2021 € 16,000 $ 207 $ 31 $ — $ — Foreign currency contracts - sell Euro Cash flow 12/2020 € 12,750 661 89 — — Foreign currency contracts - sell Canadian Dollars Cash flow 01/2021 $ 14,250 125 8 — — Zero-cost dollar - Pound Cash flow 02/2021 £ 10,250 237 49 — — Foreign currency contracts - sell Pound Cash flow 02/2021 £ 13,500 1,086 195 — — Foreign currency contracts - sell Mexican Pesos Cash flow 02/2020 $ 40,000 13 — — — Foreign currency contracts - Sell Australian Dollars Cash flow 10/2019 $ 2,000 46 — — — Interest rate swaps Cash flow 01/2024 $ 225,000 — — 2,513 6,639 Subtotal 2,375 372 2,513 6,639 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 € 5,280 431 — — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 6,395 304 — — — Subtotal 735 — — — Total fair value $ 3,110 $ 372 $ 2,513 $ 6,639 (in thousands) February 28, 2019 Derivatives designated as hedging instruments Hedge Type Final Notional Amount Prepaid Other Assets Accrued Other Zero-cost dollar - Euro Cash flow 02/2020 € 9,500 $ 11 $ — $ — $ — Foreign currency contracts - sell Euro Cash flow 01/2020 € 29,000 1,047 — — — Foreign currency contracts - sell Canadian Dollars Cash flow 02/2020 $ 16,000 168 — — — Zero-cost dollar - Pound Cash flow 05/2020 £ 4,500 — — 200 — Foreign currency contracts - sell Pound Cash flow 05/2020 £ 19,500 248 — — 13 Foreign currency contracts - sell Mexican Pesos Cash flow 09/2019 $ 30,000 — — 58 — Interest rate swaps Cash flow 01/2024 $ 225,000 512 — — 339 Subtotal 1,986 — 258 352 Derivatives not designated under hedge accounting Foreign currency contracts - cross-currency debt swaps - Euro (1) 04/2020 € 5,280 — 218 — — Foreign currency contracts - cross-currency debt swaps - Pound (1) 04/2020 £ 6,395 — — — 292 Subtotal — 218 — 292 Total fair value $ 1,986 $ 218 $ 258 $ 644 (1) |
Schedule of pre-tax effect of derivative instruments | The following table summarizes the pre-tax effect of derivative instruments for the periods shown: Three Months Ended August 31, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2019 2018 Location 2019 2018 Location 2019 2018 Currency contracts - cash flow hedges $ (482 ) $ (51 ) SG&A $ (992 ) $ (610 ) $ — $ — Interest rate swaps - cash flow hedges (4,126 ) 137 Interest expense — — Interest expense 77 136 Cross-currency debt swaps - principal — — — — SG&A 344 243 Cross-currency debt swaps - interest — — — — Interest Expense — — Total $ (4,608 ) $ 86 $ (992 ) $ (610 ) $ 421 $ 379 Six Months Ended August 31, Gain (Loss) Recognized in OCI (effective portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Gain (Loss) Recognized As Income (in thousands) 2019 2018 Location 2019 2018 Location 2019 2018 Currency contracts - cash flow hedges $ (668 ) $ 4,525 SG&A $ (2,210 ) $ 77 $ — $ — Interest rate swaps - cash flow hedges (9,326 ) 76 Interest expense — — Interest expense 231 211 Cross-currency debt swaps - principal — — — — SG&A 808 666 Cross-currency debt swaps - interest — — — — Interest expense 74 74 Total $ (9,994 ) $ 4,601 $ (2,210 ) $ 77 $ 1,113 $ 951 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables present segment information included in continuing operations for the periods shown: Three Months Ended August 31, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 167,864 $ 158,790 $ 87,341 $ 413,995 Restructuring charges 2 — 428 430 Operating income 35,698 12,408 6,414 54,520 Capital and intangible asset expenditures 3,215 1,518 410 5,143 Depreciation and amortization 1,416 4,269 2,664 8,349 Three Months Ended August 31, 2018 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 137,498 $ 175,783 $ 80,267 $ 393,548 Restructuring charges — — 859 859 Operating income 28,329 13,631 8,700 50,660 Capital and intangible asset expenditures 5,642 2,466 771 8,879 Depreciation and amortization 1,522 4,229 1,562 7,313 Six Months Ended August 31, 2019 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 312,806 $ 313,733 $ 163,791 $ 790,330 Restructuring charges 90 — 959 1,049 Operating income 66,898 27,464 7,365 101,727 Capital and intangible asset expenditures 6,082 2,198 581 8,861 Depreciation and amortization 3,029 8,582 4,505 16,116 Six Months Ended August 31, 2018 (in thousands) Housewares Health & Home Beauty Total Sales revenue, net $ 254,801 $ 339,214 $ 154,212 $ 748,227 Restructuring charges 760 358 1,466 2,584 Operating income 50,512 33,288 10,187 93,987 Capital and intangible asset expenditures 7,296 4,655 1,110 13,061 Depreciation and amortization 3,006 8,377 3,912 15,295 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of components of basic and diluted shares | The following table presents our weighted average basic and diluted shares for the periods shown: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Weighted average shares outstanding, basic 25,116 26,359 25,068 26,467 Incremental shares from share-based compensation arrangements 129 198 177 145 Weighted average shares outstanding, diluted 25,245 26,557 25,245 26,612 Antidilutive securities 166 194 259 352 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Aug. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown: (in thousands) Interest Rate Swaps Foreign Currency Contracts Total Balance at February 28, 2018 $ 1,705 $ (1,074 ) $ 631 Other comprehensive income (loss) before reclassification 76 4,525 4,601 Amounts reclassified out of accumulated other comprehensive income — (77 ) (77 ) Tax effects 129 (637 ) (508 ) Other comprehensive income (loss) 205 3,811 4,016 Balance at August 31, 2018 $ 1,910 $ 2,737 $ 4,647 Balance at February 28, 2019 $ 132 $ 1,059 $ 1,191 Other comprehensive income (loss) before reclassification (9,326 ) (668 ) (9,994 ) Amounts reclassified out of accumulated other comprehensive income — 2,210 2,210 Tax effects 2,165 (327 ) 1,838 Other comprehensive income (loss) (7,161 ) 1,215 (5,946 ) Balance at August 31, 2019 $ (7,029 ) $ 2,274 $ (4,755 ) |
Basis of Presentation and Rel_2
Basis of Presentation and Related Information (Details) | 6 Months Ended | |
Aug. 31, 2019Segment$ / shares | Feb. 28, 2019$ / shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Common shares, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 |
Number of segments | Segment | 3 |
New Accounting Pronouncements -
New Accounting Pronouncements - Adopted (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Mar. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 34,429 | |
Initial recognition of lease liabilities | $ (45,625) | $ (47,223) |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | 37,100 | |
Initial recognition of lease liabilities | $ (47,200) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2019 | Mar. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 34,429 | $ 34,429 | |
Present value of lease liability | 45,625 | 45,625 | $ 47,223 |
Operating lease expense | $ 1,700 | $ 3,300 | |
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 37,100 | ||
Present value of lease liability | $ 47,200 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 14 years |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) $ in Thousands | 6 Months Ended |
Aug. 31, 2019USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 11 years 1 month 6 days |
Weighted average discount rate | 6.09% |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 2,112 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Mar. 01, 2019 |
Leases [Abstract] | ||
Fiscal 2020 (balance for remainder of fiscal year) | $ 2,470 | |
Fiscal 2021 | 6,082 | |
Fiscal 2022 | 5,959 | |
Fiscal 2023 | 5,601 | |
Fiscal 2024 | 5,102 | |
Thereafter | 40,132 | |
Total future lease payments | 65,346 | |
Less: imputed interest | (19,721) | |
Present value of lease liability | $ 45,625 | $ 47,223 |
Leases - Schedule of Lease Lia
Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Mar. 01, 2019 |
Leases [Abstract] | ||
Lease liabilities, current | $ 3,155 | |
Lease liabilities, non-current | 42,470 | |
Total lease liability | $ 45,625 | $ 47,223 |
Discontinued Operation (Details
Discontinued Operation (Details) - Discontinued Operations - Healthy Directions LLC - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Feb. 28, 2019 | Feb. 28, 2018 | Dec. 31, 2017 | |
Discontinued Operations | ||||
Purchase price from sale | $ 46 | |||
Supplemental payment | $ 25 | |||
Final adjusted supplemental payment | $ 10.8 | $ 10.8 | ||
Reduction of supplemental payment | 5.8 | |||
Reduction of supplemental payment after tax | $ 4.4 | |||
Resolution of certain contingencies | $ 1.5 | |||
Resolution of certain contingencies after tax | $ 1.3 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 31, 2019 | Feb. 28, 2019 | |
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 261,223 | $ 254,082 |
Less accumulated depreciation | (130,059) | (123,744) |
Property and equipment, net | 131,164 | 130,338 |
Land | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 12,644 | 12,644 |
Building and improvements | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 113,619 | 113,820 |
Building and improvements | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Building and improvements | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 40 years | |
Computer, software, furniture and other equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 86,699 | 84,711 |
Computer, software, furniture and other equipment | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Computer, software, furniture and other equipment | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 15 years | |
Tools, molds and other production equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 37,000 | 36,378 |
Tools, molds and other production equipment | Minimum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 3 years | |
Tools, molds and other production equipment | Maximum | ||
PROPERTY AND EQUIPMENT | ||
Estimated Useful Lives (Years) | 7 years | |
Construction in progress | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 11,261 | $ 6,529 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Feb. 28, 2019 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Accrued compensation, benefits and payroll taxes | $ 29,159 | $ 36,782 |
Accrued sales discounts and allowances | 28,924 | 28,655 |
Accrued sales returns | 21,359 | 23,316 |
Accrued advertising | 28,060 | 26,549 |
Other | 41,769 | 49,858 |
Total accrued expenses and other current liabilities | $ 149,271 | $ 165,160 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of carrying amounts and associated accumulated amortization for all intangible assets by operating segment (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 |
Changes in Goodwill | |||
Cumulative goodwill impairments | $ (46,490) | $ (46,490) | |
Goodwill net book value | 602,320 | 602,320 | |
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, accumulated amortization | (189,771) | (181,463) | |
Goodwill and intangible assets | |||
Gross carrying amount | 1,121,767 | 1,121,799 | |
Net book value | 885,506 | 893,846 | |
Housewares | |||
Changes in Goodwill | |||
Goodwill gross carrying amount | 282,056 | 282,056 | |
Cumulative goodwill impairments | 0 | 0 | |
Goodwill net book value | 282,056 | 282,056 | |
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, accumulated amortization | (20,066) | (19,398) | |
Goodwill and intangible assets | |||
Gross carrying amount | 457,584 | 457,673 | |
Net book value | 437,518 | 438,275 | |
Housewares | Other intangible assets | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 41,328 | 41,417 | |
Intangible assets - finite-lived, accumulated amortization | (20,066) | (19,398) | |
Intangible assets - finite-lived, net book value | 21,262 | 22,019 | |
Housewares | Trademarks | |||
Changes in intangible assets - indefinite-lived | |||
Intangible assets - indefinite-lived, gross carrying amount | 134,200 | 134,200 | |
Health and Home | |||
Changes in Goodwill | |||
Goodwill gross carrying amount | 284,913 | 284,913 | |
Cumulative goodwill impairments | 0 | 0 | |
Goodwill net book value | 284,913 | 284,913 | |
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, accumulated amortization | (108,950) | (103,355) | |
Goodwill and intangible assets | |||
Gross carrying amount | 481,387 | 481,330 | |
Net book value | 372,437 | 377,975 | |
Health and Home | Licenses | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 17,050 | 17,050 | |
Intangible assets - finite-lived, accumulated amortization | (15,577) | (15,402) | |
Intangible assets - finite-lived, net book value | 1,473 | 1,648 | |
Health and Home | Other intangible assets | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 118,024 | 117,967 | |
Intangible assets - finite-lived, accumulated amortization | (93,373) | (87,953) | |
Intangible assets - finite-lived, net book value | 24,651 | 30,014 | |
Health and Home | Trademarks | |||
Changes in intangible assets - indefinite-lived | |||
Intangible assets - indefinite-lived, gross carrying amount | 54,000 | 54,000 | |
Health and Home | Licenses | |||
Changes in intangible assets - indefinite-lived | |||
Intangible assets - indefinite-lived, gross carrying amount | 7,400 | 7,400 | |
Beauty | |||
Changes in Goodwill | |||
Goodwill gross carrying amount | 81,841 | 81,841 | |
Cumulative goodwill impairments | (46,490) | (46,490) | |
Goodwill net book value | 35,351 | 35,351 | |
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, accumulated amortization | (60,755) | (58,710) | |
Goodwill and intangible assets | |||
Gross carrying amount | 182,796 | 182,796 | |
Net book value | 75,551 | 77,596 | |
Beauty | Trademarks | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 30,557 | 150 | |
Intangible assets - finite-lived, accumulated amortization | (1,956) | (102) | |
Intangible assets - finite-lived, net book value | 28,601 | $ 30,400 | 48 |
Beauty | Licenses | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 13,696 | 13,696 | |
Intangible assets - finite-lived, accumulated amortization | (12,641) | (12,482) | |
Intangible assets - finite-lived, net book value | 1,055 | 1,214 | |
Beauty | Other intangible assets | |||
Changes in intangible assets - finite-lived | |||
Intangible assets - finite-lived, gross carrying amount | 46,402 | 46,402 | |
Intangible assets - finite-lived, accumulated amortization | (46,158) | (46,126) | |
Intangible assets - finite-lived, net book value | 244 | 276 | |
Beauty | Trademarks | |||
Changes in intangible assets - indefinite-lived | |||
Intangible assets - indefinite-lived, gross carrying amount | 0 | 30,407 | |
Beauty | Licenses | |||
Changes in intangible assets - indefinite-lived | |||
Intangible assets - indefinite-lived, gross carrying amount | $ 10,300 | $ 10,300 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional information (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 |
Trademarks | Beauty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net book value transferred from indefinite lived to finite lived assets | $ 28,601 | $ 30,400 | $ 48 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of amortization expense attributable to intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Aggregate Amortization Expense | $ 4,463 | $ 3,402 | $ 8,339 | $ 7,522 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of estimated amortization expense of intangible assets (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Fiscal 2020 | $ 17,691 |
Fiscal 2021 | 16,135 |
Fiscal 2022 | 9,037 |
Fiscal 2023 | 8,847 |
Fiscal 2024 | 8,441 |
Fiscal 2025 | $ 6,977 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 31, 2019USD ($)$ / sharesshares | Aug. 31, 2019USD ($)$ / sharesshares | |
Share-based compensation plans | ||
Exercise of stock options (in shares) | 26,368 | 61,765 |
Employee purchases of common stock (in shares) | 0 | 14,790 |
Employee purchases of common stock, average price (in dollars per share) | $ / shares | $ 95.29 | $ 95.29 |
Directors stock compensation | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 1,048 | 2,304 |
Grant date fair value | $ | $ 0.1 | $ 0.2 |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 134.21 | $ 121.99 |
Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Grant date fair value | $ | $ 0.5 | $ 7.6 |
Shares vested and settled (in shares) | 3,489 | 66,329 |
Grant date fair value of shares settled in period (in dollars per share) | $ / shares | $ 146.26 | $ 114.58 |
Shares vested (in shares) | 3,489 | 66,329 |
Performance Restricted Stock Units (PSU) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 0 | 6,088 |
Grant date fair value | $ | $ 0.7 | |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 110.85 | |
Shares vested (in shares) | 0 | 108,572 |
Performance Based Restricted Stock Awards (PSA) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 0 | 122,402 |
Grant date fair value | $ | $ 13.6 | |
Grant date fair value of shares settled in period (in dollars per share) | $ / shares | $ 110.85 | |
Time-Vested | Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 8 | 3,279 |
Grant date fair value | $ | $ 0.4 | |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 150.86 | $ 111.51 |
Time-Vested | Restricted Stock Awards (RSA) | ||
Share-based compensation plans | ||
Number of awards granted (in shares) | 4,920 | 45,772 |
Grant date fair value | $ | $ 0.7 | $ 5.2 |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 138.86 | $ 113.98 |
Vested and settled performance shares | Restricted Stock Awards (RSA) | ||
Share-based compensation plans | ||
Grant date fair value | $ | $ 0.1 | $ 0.1 |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 150.86 | $ 150.86 |
Shares vested and settled (in shares) | 928 | 928 |
Vested and settled performance shares | Performance Restricted Stock Units (PSU) | ||
Share-based compensation plans | ||
Grant date fair value | $ | $ 14.7 | |
Grant date fair value of shares granted in period (in dollars per share) | $ / shares | $ 135.85 | |
Shares vested and settled (in shares) | 0 | 108,572 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans Share Based Compensation Expense in SG&A (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense, net of income tax benefits | $ 5,867 | $ 4,348 | $ 12,894 | $ 10,402 |
Share Based Compensation Effect on Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ 0.23 | $ 0.16 | $ 0.51 | $ 0.39 |
Diluted (in dollars per share) | $ 0.23 | $ 0.16 | $ 0.51 | $ 0.39 |
SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 6,381 | $ 4,689 | $ 13,985 | $ 11,013 |
Less income tax benefits | (514) | (341) | (1,091) | (611) |
Stock options | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 35 | 219 | 151 | 527 |
Performance based and other stock awards | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 6,205 | 4,347 | 13,228 | 9,918 |
Employee stock purchase plan | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 0 | 0 | 325 | 322 |
Directors stock compensation | SG&A | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 141 | $ 123 | $ 281 | $ 246 |
Repurchase of Helen of Troy C_2
Repurchase of Helen of Troy Common Stock (Details) - USD ($) | May 08, 2019 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | May 20, 2019 |
Repurchase of common stock | ||||||
Amount of shares authorized for purchase | $ 400,000,000 | |||||
Period for stock repurchase | 3 years | |||||
Remaining share repurchase amount - prior program | $ 107,400,000 | |||||
Remaining share repurchase amount | $ 394,000,000 | $ 394,000,000 | ||||
Repurchase of common stock | ||||||
Number of shares (in shares) | 2,354,000 | 7,477,000 | 70,558,000 | 57,072,000 | ||
Aggregate value of shares (in USD) | $ 343,000 | $ 692,000 | $ 9,131,000 | $ 42,240,000 | ||
Average price per share (in dollars per share) | $ 145.96 | $ 92.55 | $ 129.42 | $ 90.65 | ||
Open market or tender offer | ||||||
Repurchase of common stock | ||||||
Number of shares (in shares) | 0 | 0 | 0 | 407,025,000 | ||
Aggregate value of shares (in USD) | $ 0 | $ 0 | $ 0 | $ 37,067,000 | ||
Average price per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 91.07 | ||
Stock Compensation Plan | ||||||
Repurchase of common stock | ||||||
Aggregate value of shares (in USD) | $ 344,000 | $ 692,000 | $ 9,131,000 | $ 5,173,000 |
Restructuring Plan (Details)
Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Feb. 29, 2020 | |
Restructuring Plan | |||||
Restructuring charges | $ 430 | $ 859 | $ 1,049 | $ 2,584 | |
Cash restructuring payments for the reporting period | 900 | 1,500 | |||
Project Refuel | |||||
Restructuring Plan | |||||
Restructuring charges | 400 | 1,000 | |||
Incurred pre-tax restructuring costs | 6,400 | 6,400 | |||
Cash restructuring payments to date | 5,800 | ||||
Restructuring liability | $ 700 | 700 | |||
Minimum | Project Refuel | |||||
Restructuring Plan | |||||
Targeted annualized profit improvement | 8,000 | ||||
Maximum | Project Refuel | |||||
Restructuring Plan | |||||
Targeted annualized profit improvement | $ 10,000 | ||||
Scenario, Forecast | Project Refuel | |||||
Restructuring Plan | |||||
Restructuring charges | $ 7,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | May 31, 2018USD ($) |
Thermometer Patent Litigation | Settled Litigation | |
Commitments and contingencies | |
Settlement payment | $ 15 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) - Lease Agreements $ in Thousands | Aug. 31, 2019USD ($) |
Other Commitments [Line Items] | |
Total | $ 69,482 |
2020 | 5,171 |
2021 | 6,678 |
2022 | 6,411 |
2023 | 5,743 |
2024 | 5,078 |
After 5 years | $ 40,401 |
Long-Term Debt - Schedule (Deta
Long-Term Debt - Schedule (Details) | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2019USD ($)method | Aug. 31, 2018 | |
Minimum | Credit agreement | |||
Long-term debt | |||
Interest rate range during each year (as a percent) | 2.90% | 3.10% | 2.80% |
Maximum | Credit agreement | |||
Long-term debt | |||
Interest rate range during each year (as a percent) | 5.00% | 5.50% | 5.00% |
MBFC loan | |||
Long-term debt | |||
Remaining principal balance due on March 1, 2023 | $ 14,800,000 | ||
Credit agreement | |||
Long-term debt | |||
Maximum revolving commitment | $ 1,000,000,000 | ||
Number of alternative methods under which interest on borrowings accrue | method | 2 | ||
Amount available for borrowings | $ 708,000,000 | ||
Maximum additional debt allowed under debt covenants | 609,000,000 | ||
Revolving loan | Credit agreement | |||
Long-term debt | |||
Amount outstanding | 283,000,000 | ||
Letter of credit | Credit agreement | |||
Long-term debt | |||
Amount outstanding | $ 9,000,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long-term debt (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2019 | Feb. 28, 2019 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 301,193,000 | $ 320,784,000 |
Less current maturities of long-term debt | (1,884,000) | (1,884,000) |
Long-term debt, excluding current maturities | 299,309,000 | 318,900,000 |
MBFC loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 20,443,000 | 22,335,000 |
MBFC Loan original balance | 37,600,000 | |
Remaining principal balance due on March 1, 2020 | 1,900,000 | |
Remaining principal balance due on March 1, 2021 | 1,900,000 | |
Remaining principal balance due on March 1, 2022 | 1,900,000 | |
Remaining principal balance due on March 1, 2023 | $ 14,800,000 | |
MBFC loan | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.00% | |
MBFC loan | Base rate | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.00% | |
Credit agreement | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 280,750,000 | $ 298,449,000 |
Amount of interest rate swap hedge | $ 225,000,000 |
Fair Value (Details)
Fair Value (Details) - Recurring - Fair Values - Significant other observable market inputs (Level 2) - USD ($) $ in Thousands | Aug. 31, 2019 | Feb. 28, 2019 |
Assets: | ||
Total assets | $ 4,714 | $ 3,119 |
Liabilities: | ||
Total liabilities | 310,345 | 321,686 |
Interest rate swap | ||
Assets: | ||
Derivative assets | 0 | 512 |
Liabilities: | ||
Derivative assets | 9,152 | 339 |
Foreign currency contracts | ||
Assets: | ||
Derivative assets | 3,482 | 1,692 |
Liabilities: | ||
Derivative assets | 0 | 563 |
Floating rate debt | ||
Liabilities: | ||
Floating rate debt | 301,193 | 320,784 |
Money market accounts | ||
Assets: | ||
Money market accounts | $ 1,232 | $ 915 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
SG&A | ||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | $ 0.8 | $ 0.5 | $ 1.6 | $ (1.2) |
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | ||||
Foreign Currency Risk and Currency Exchange Uncertainties | ||||
Concentration risk percentage | 14.00% | 11.00% | 13.00% | 13.00% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Interest Rate Risk (Details) - Credit agreement $ in Millions | Aug. 31, 2019USD ($) |
Financial instruments and risk management | |
Fixed rate debt | $ 225 |
Floating rate debt | $ 283 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Aug. 31, 2019USD ($) | Aug. 31, 2019CAD ($) | Aug. 31, 2019MXN ($) | Aug. 31, 2019EUR (€) | Aug. 31, 2019GBP (£) | Aug. 31, 2019AUD ($) | May 31, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2019CAD ($) | Feb. 28, 2019MXN ($) | Feb. 28, 2019EUR (€) | Feb. 28, 2019GBP (£) |
Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | $ 3,110,000 | $ 1,986,000 | ||||||||||
Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 372,000 | 218,000 | ||||||||||
Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 2,513,000 | 258,000 | ||||||||||
Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 6,639,000 | 644,000 | ||||||||||
Derivatives designated as hedging instruments | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 2,375,000 | 1,986,000 | ||||||||||
Derivatives designated as hedging instruments | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 372,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 2,513,000 | 258,000 | ||||||||||
Derivatives designated as hedging instruments | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 6,639,000 | 352,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | € | € 12,750 | € 29,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 661,000 | 1,047,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 89,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | $ 14,250 | $ 16,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 125,000 | 168,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 8,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | £ | £ 13,500 | £ 19,500 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 1,086,000 | 248,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 195,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 13,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | $ 40,000 | $ 30,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 13,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 58,000 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Australia, Dollars | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | $ 2,000 | |||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Australia, Dollars | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 46,000 | |||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Australia, Dollars | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | |||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Australia, Dollars | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | |||||||||||
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Australia, Dollars | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | |||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Euros | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | $ 207,000 | 11,000 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Euros | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 31,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Euros | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Euros | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | $ 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Pounds | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | 16,000 | 10,250 | 9,500 | 4,500 | ||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Pounds | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 237,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Pounds | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 49,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Pounds | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 200,000 | ||||||||||
Derivatives designated as hedging instruments | Zero-Cost Collar Contract | Sell | Pounds | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Interest rate swaps | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | 225,000,000 | 225,000,000 | ||||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | 512,000 | ||||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | 0 | ||||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 2,513,000 | 0 | ||||||||||
Derivatives designated as hedging instruments | Interest rate swaps | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 6,639,000 | 339,000 | ||||||||||
Derivatives not designated under hedge accounting | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 735,000 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | 218,000 | ||||||||||
Derivatives not designated under hedge accounting | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 292,000 | ||||||||||
Derivatives not designated under hedge accounting | Euros | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 218,000 | |||||||||||
Derivatives not designated under hedge accounting | Pounds | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | |||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | € | € 5,280 | € 5,280 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 431,000 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | |||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Notional amount | £ | £ 6,395 | £ 6,395 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Prepaid expenses and other current assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 304,000 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Other assets | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative assets | 0 | |||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Accrued expenses and other current liabilities | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | 0 | 0 | ||||||||||
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Other liabilities, non-current | ||||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||||
Derivative liabilities | $ 0 | $ 292,000 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in OCI (effective portion) | $ (4,608) | $ (9,994) | ||
Gain (Loss) Recognized in OCI (effective portion) | $ 86 | $ 4,601 | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (992) | (2,210) | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (610) | 77 | ||
Gain (Loss) Recognized As Income | 421 | 1,113 | ||
Gain (Loss) Recognized As Income | 379 | 951 | ||
Foreign currency contracts | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized As Income | 0 | 0 | ||
Gain (Loss) Recognized As Income | 0 | 0 | ||
Foreign currency contracts | Cash flow hedges | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in OCI (effective portion) | (482) | (668) | ||
Gain (Loss) Recognized in OCI (effective portion) | (51) | 4,525 | ||
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income | $ 100 | |||
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income, period of time to transfer | 12 months | |||
Foreign currency contracts | Cash flow hedges | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (992) | $ (2,210) | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (610) | 77 | ||
Interest rate swaps | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized As Income | 77 | 231 | ||
Gain (Loss) Recognized As Income | 136 | 211 | ||
Interest rate swaps | Cash flow hedges | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in OCI (effective portion) | (4,126) | (9,326) | ||
Gain (Loss) Recognized in OCI (effective portion) | 137 | 76 | ||
Interest rate swaps | Cash flow hedges | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Cross currency debt swaps | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized in OCI (effective portion) | 0 | 0 | ||
Gain (Loss) Recognized in OCI (effective portion) | 0 | 0 | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Cross currency debt swaps | SG&A | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 0 | 0 | ||
Gain (Loss) Recognized As Income | 344 | 808 | ||
Gain (Loss) Recognized As Income | 243 | 666 | ||
Cross currency debt swaps | Interest expense | ||||
Pre-tax effect of derivative instruments | ||||
Gain (Loss) Recognized As Income | $ 0 | $ 74 | ||
Gain (Loss) Recognized As Income | $ 0 | $ 74 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment information | ||||
Sales revenue, net | $ 413,995 | $ 393,548 | $ 790,330 | $ 748,227 |
Restructuring charges | 430 | 859 | 1,049 | 2,584 |
Operating income | 54,520 | 50,660 | 101,727 | 93,987 |
Capital and intangible asset expenditures | 5,143 | 8,879 | 8,861 | 13,061 |
Depreciation and amortization | 8,349 | 7,313 | 16,116 | 15,295 |
Housewares | ||||
Segment information | ||||
Sales revenue, net | 167,864 | 137,498 | 312,806 | 254,801 |
Restructuring charges | 2 | 0 | 90 | 760 |
Operating income | 35,698 | 28,329 | 66,898 | 50,512 |
Capital and intangible asset expenditures | 3,215 | 5,642 | 6,082 | 7,296 |
Depreciation and amortization | 1,416 | 1,522 | 3,029 | 3,006 |
Health and Home | ||||
Segment information | ||||
Sales revenue, net | 158,790 | 175,783 | 313,733 | 339,214 |
Restructuring charges | 0 | 0 | 0 | 358 |
Operating income | 12,408 | 13,631 | 27,464 | 33,288 |
Capital and intangible asset expenditures | 1,518 | 2,466 | 2,198 | 4,655 |
Depreciation and amortization | 4,269 | 4,229 | 8,582 | 8,377 |
Beauty | ||||
Segment information | ||||
Sales revenue, net | 87,341 | 80,267 | 163,791 | 154,212 |
Restructuring charges | 428 | 859 | 959 | 1,466 |
Operating income | 6,414 | 8,700 | 7,365 | 10,187 |
Capital and intangible asset expenditures | 410 | 771 | 581 | 1,110 |
Depreciation and amortization | $ 2,664 | $ 1,562 | $ 4,505 | $ 3,912 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) as a percent of income before income taxes | 10.30% | 8.30% | 9.00% | 7.30% |
Tax benefit recorded related to the recognition of excess tax benefits from share-based compensation | $ 0.8 | $ 0.5 | ||
Expense for remeasurement of deferred taxes | 1.7 | |||
Unrecognized tax benefit from favorable resolution of uncertain tax position | $ 2.8 | $ 0.8 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
Weighted average diluted securities | ||||
Weighted average shares outstanding, basic (in shares) | 25,116 | 26,359 | 25,068 | 26,467 |
Incremental shares from share-based payment arrangements (in shares) | 129 | 198 | 177 | 145 |
Weighted average shares outstanding, diluted (in shares) | 25,245 | 26,557 | 25,245 | 26,612 |
Stock options | ||||
Weighted average diluted securities | ||||
Antidilutive securities (in shares) | 166 | 194 | 259 | 352 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,036,179 | $ 1,023,697 | $ 996,637 | $ 1,014,459 |
Total other comprehensive income (loss), net of tax | (2,744) | 579 | (5,946) | 4,016 |
Ending balance | 1,087,375 | 1,075,740 | 1,087,375 | 1,075,740 |
Interest Rate Swaps | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 132 | 1,705 | ||
Other comprehensive income (loss) before reclassification | (9,326) | 76 | ||
Amounts reclassified out of accumulated other comprehensive income | 0 | 0 | ||
Tax effects | 2,165 | 129 | ||
Total other comprehensive income (loss), net of tax | (7,161) | 205 | ||
Ending balance | (7,029) | 1,910 | (7,029) | 1,910 |
Foreign Currency Contracts | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,059 | (1,074) | ||
Other comprehensive income (loss) before reclassification | (668) | 4,525 | ||
Amounts reclassified out of accumulated other comprehensive income | 2,210 | (77) | ||
Tax effects | (327) | (637) | ||
Total other comprehensive income (loss), net of tax | 1,215 | 3,811 | ||
Ending balance | 2,274 | 2,737 | 2,274 | 2,737 |
Total | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,011) | 4,068 | 1,191 | 631 |
Other comprehensive income (loss) before reclassification | (9,994) | 4,601 | ||
Amounts reclassified out of accumulated other comprehensive income | 2,210 | (77) | ||
Tax effects | 1,838 | (508) | ||
Total other comprehensive income (loss), net of tax | (2,744) | 579 | (5,946) | 4,016 |
Ending balance | $ (4,755) | $ 4,647 | $ (4,755) | $ 4,647 |
Uncategorized Items - fy20q2hel
Label | Element | Value |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | us-gaap_RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability | $ 37,082,000 |
Non-Cash Increase (Decrease) In Other Accrued Liabilities | hele_NonCashIncreaseDecreaseInOtherAccruedLiabilities | (2,873,000) |
Non-Cash Increase (Decrease) In Other Current Assets And Liabilities, Net | hele_NonCashIncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet | (7,311,000) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (9,000) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (167,000) |
Non-Cash Increase (Decrease) In Prepaid Expense And Other Assets | hele_NonCashIncreaseDecreaseInPrepaidExpenseAndOtherAssets | 43,000 |
Additional Paid-in Capital [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (2,000) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 1,000 |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (161,000) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (9,000) |
Common Stock [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (4,000) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ (1,000) |