Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Apr. 21, 2022 | Aug. 31, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 28, 2022 | ||
Current Fiscal Year End Date | --02-28 | ||
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, City or Town | 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,726.4 | ||
Entity Common Stock, Shares Outstanding | 23,841,808 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2022 Annual General Meeting of Shareholders to be filed within one hundred and twenty days of the fiscal year ended February 28, 2022 (2022 Proxy Statement) are incorporated by reference into Part III of this report to the extent described herein. | ||
Entity Central Index Key | 0000916789 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Other Address | |||
Entity Information [Line Items] | |||
Entity Address, Address Line One | Clarendon House | ||
Entity Address, Address Line Two | 2 Church Street | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Country | BM |
Audit Information
Audit Information | 12 Months Ended |
Feb. 28, 2022 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 248 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Assets, current: | ||
Cash and cash equivalents | $ 33,381 | $ 45,120 |
Receivables - principally trade, less allowances of $843 and $998 | 457,623 | 382,449 |
Inventory | 557,992 | 481,611 |
Prepaid expenses and other current assets | 25,712 | 16,170 |
Income taxes receivable | 5,430 | 6,720 |
Assets held for sale | 1,942 | 39,867 |
Total assets, current | 1,082,080 | 971,937 |
Property and equipment, net of accumulated depreciation of $161,006 and $140,379 | 205,378 | 136,535 |
Goodwill | 948,873 | 739,901 |
Other intangible assets, net of accumulated amortization of $150,309 and $151,240 | 537,846 | 357,264 |
Operating lease assets | 37,759 | 32,533 |
Deferred tax assets, net | 3,628 | 21,748 |
Other assets | 7,887 | 3,570 |
Total assets | 2,823,451 | 2,263,488 |
Liabilities, current: | ||
Accounts payable, principally trade | 308,178 | 334,807 |
Accrued expenses and other current liabilities | 271,675 | 271,179 |
Income taxes payable | 20,718 | 7,022 |
Long-term debt, current maturities | 1,884 | 1,884 |
Liabilities held for sale | 235 | 0 |
Total liabilities, current | 602,690 | 614,892 |
Long-term debt, excluding current maturities | 811,332 | 341,746 |
Lease liabilities, non-current | 43,745 | 38,352 |
Deferred tax liabilities, net | 21,582 | 5,735 |
Other liabilities, non-current | 16,763 | 23,416 |
Total liabilities | 1,496,112 | 1,024,141 |
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; 23,800,305 and 24,405,921 shares issued and outstanding | 2,380 | 2,441 |
Additional paid in capital | 303,740 | 283,396 |
Accumulated other comprehensive income (loss) | 202 | (11,656) |
Retained earnings | 1,021,017 | 965,166 |
Total stockholders' equity | 1,327,339 | 1,239,347 |
Total liabilities and stockholders' equity | $ 2,823,451 | $ 2,263,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables allowance | $ (843) | $ (998) |
Less: accumulated depreciation | (161,006) | (140,379) |
Accumulated amortization | $ (150,309) | $ (151,240) |
Cumulative preferred stock, par value (usd 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 value (usd per share) | $ 0.10 | $ 0.10 |
Common stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 23,800,305 | 24,405,921 |
Common stock, shares outstanding (in shares) | 23,800,305 | 24,405,921 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Income Statement [Abstract] | |||
Sales revenue, net | $ 2,223,355,000 | $ 2,098,799,000 | $ 1,707,432,000 |
Cost of goods sold | 1,270,168,000 | 1,171,497,000 | 972,966,000 |
Gross profit | 953,187,000 | 927,302,000 | 734,466,000 |
Selling, general and administrative expense (“SG&A”) | 680,257,000 | 637,012,000 | 511,902,000 |
Asset impairment charges | 0 | 8,452,000 | 41,000,000 |
Restructuring charges | 380,000 | 350,000 | 3,313,000 |
Operating income | 272,550,000 | 281,488,000 | 178,251,000 |
Non-operating income, net | 260,000 | 559,000 | 394,000 |
Interest expense | 12,844,000 | 12,617,000 | 12,705,000 |
Income before income tax | 259,966,000 | 269,430,000 | 165,940,000 |
Income tax expense | 36,202,000 | 15,484,000 | 13,607,000 |
Net income | $ 223,764,000 | $ 253,946,000 | $ 152,333,000 |
Earnings per share (“EPS”): | |||
Basic (in dollars per share) | $ 9.27 | $ 10.16 | $ 6.06 |
Diluted (in dollars per share) | $ 9.17 | $ 10.08 | $ 6.02 |
Weighted average shares used in computing EPS: | |||
Basic (in shares) | 24,142 | 24,985 | 25,118 |
Diluted (in shares) | 24,410 | 25,196 | 25,322 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 223,764 | $ 253,946 | $ 152,333 |
Other comprehensive income (loss), net of tax: | |||
Cash flow hedge activity - interest rate swaps | 5,450 | 623 | (8,331) |
Cash flow hedge activity - foreign currency contracts | 6,408 | (5,274) | 135 |
Total other comprehensive income (loss), net of tax | 11,858 | (4,651) | (8,196) |
Comprehensive income | $ 235,622 | $ 249,295 | $ 144,137 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Feb. 28, 2019 | 24,946 | ||||
Beginning balance at Feb. 28, 2019 | $ 996,637 | $ 2,495 | $ 246,585 | $ 1,191 | $ 746,366 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 152,333 | 152,333 | |||
Other comprehensive loss, net of tax | (8,196) | (8,196) | |||
Exercise of stock options (in shares) | 93 | ||||
Exercise of stock options | 5,353 | $ 9 | 5,344 | ||
Issuance and settlement of restricted stock (in shares) | 202 | ||||
Issuance and settlement of restricted stock | 0 | $ 20 | (20) | ||
Issuance of common stock related to stock purchase plan (in shares) | 30 | ||||
Issuance of common stock related to stock purchase plan | 2,836 | $ 3 | 2,833 | ||
Common stock repurchased and retired (in shares) | (77) | ||||
Common stock repurchased and retired | (10,169) | $ (8) | (9,628) | (533) | |
Share-based compensation | 22,929 | 22,929 | |||
Ending balance (in shares) at Feb. 29, 2020 | 25,194 | ||||
Ending balance at Feb. 29, 2020 | 1,161,723 | $ 2,519 | 268,043 | (7,005) | 898,166 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 253,946 | 253,946 | |||
Other comprehensive loss, net of tax | (4,651) | (4,651) | |||
Exercise of stock options (in shares) | 21 | ||||
Exercise of stock options | 1,594 | $ 2 | 1,592 | ||
Issuance and settlement of restricted stock (in shares) | 194 | ||||
Issuance and settlement of restricted stock | 0 | $ 20 | (20) | ||
Issuance of common stock related to stock purchase plan (in shares) | 27 | ||||
Issuance of common stock related to stock purchase plan | 3,611 | $ 3 | 3,608 | ||
Common stock repurchased and retired (in shares) | (1,030) | ||||
Common stock repurchased and retired | (203,294) | $ (103) | (16,245) | (186,946) | |
Share-based compensation | 26,418 | 26,418 | |||
Ending balance (in shares) at Feb. 28, 2021 | 24,406 | ||||
Ending balance at Feb. 28, 2021 | 1,239,347 | $ 2,441 | 283,396 | (11,656) | 965,166 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 223,764 | 223,764 | |||
Other comprehensive loss, net of tax | 11,858 | 11,858 | |||
Exercise of stock options (in shares) | 23 | ||||
Exercise of stock options | 1,695 | $ 2 | 1,693 | ||
Issuance and settlement of restricted stock (in shares) | 202 | ||||
Issuance and settlement of restricted stock | 0 | $ 20 | (20) | ||
Issuance of common stock related to stock purchase plan (in shares) | 24 | ||||
Issuance of common stock related to stock purchase plan | 4,261 | $ 2 | 4,259 | ||
Common stock repurchased and retired (in shares) | (855) | ||||
Common stock repurchased and retired | (188,204) | $ (85) | (20,206) | (167,913) | |
Share-based compensation | 34,618 | 34,618 | |||
Ending balance (in shares) at Feb. 28, 2022 | 23,800 | ||||
Ending balance at Feb. 28, 2022 | $ 1,327,339 | $ 2,380 | $ 303,740 | $ 202 | $ 1,021,017 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Cash provided by operating activities: | |||
Net income | $ 223,764,000 | $ 253,946,000 | $ 152,333,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,829,000 | 37,718,000 | 37,409,000 |
Amortization of financing costs | 986,000 | 1,021,000 | 1,620,000 |
Non-cash operating lease expense | 9,580,000 | 6,895,000 | 6,269,000 |
Provision for credit losses | 312,000 | 2,093,000 | 529,000 |
Non-cash share-based compensation | 34,618,000 | 26,418,000 | 22,929,000 |
Asset impairment charges | 0 | 8,452,000 | 41,000,000 |
Gain on sale of North America Personal Care business | (513,000) | 0 | 0 |
(Gain) loss on the sale or disposal of property and equipment | (2,243,000) | 193,000 | 188,000 |
Deferred income taxes and tax credits | (8,871,000) | (4,400,000) | (5,696,000) |
Changes in operating capital, net of effects of acquisition of business: | |||
Receivables | (66,834,000) | (38,149,000) | (60,562,000) |
Inventory | (45,913,000) | (220,817,000) | 45,482,000 |
Prepaid expenses and other current assets | (5,589,000) | (2,033,000) | 863,000 |
Other assets and liabilities, net | (6,595,000) | (6,613,000) | 19,488,000 |
Accounts payable | (43,745,000) | 175,784,000 | 7,166,000 |
Accrued expenses and other current liabilities | (3,593,000) | 73,010,000 | 5,296,000 |
Accrued income taxes | 19,630,000 | 588,000 | (3,021,000) |
Net cash provided by operating activities | 140,823,000 | 314,106,000 | 271,293,000 |
Cash used by investing activities: | |||
Capital and intangible asset expenditures | (78,039,000) | (98,668,000) | (17,759,000) |
Payments to acquire businesses, net of cash acquired | (410,880,000) | 0 | (255,861,000) |
Proceeds from sale of North America Personal Care business | 44,700,000 | 0 | 0 |
Proceeds from the sale of property and equipment | 5,305,000 | 0 | 3,000 |
Net cash used by investing activities | (438,914,000) | (98,668,000) | (273,617,000) |
Cash provided (used) by financing activities: | |||
Proceeds from line of credit | 998,200,000 | 937,400,000 | 771,300,000 |
Repayment of line of credit | (527,700,000) | (928,400,000) | (752,500,000) |
Repayment of long-term debt | (1,900,000) | (1,900,000) | (1,900,000) |
Payment of financing costs | 0 | (3,796,000) | 0 |
Proceeds from share issuances under share-based compensation plans | 5,956,000 | 5,205,000 | 8,189,000 |
Payments for repurchases of common stock | (188,204,000) | (203,294,000) | (10,169,000) |
Net cash provided (used) by financing activities | 286,352,000 | (194,785,000) | 14,920,000 |
Net cash provided (used) by financing activities | (11,739,000) | 20,653,000 | 12,596,000 |
Cash and cash equivalents, beginning balance | 45,120,000 | 24,467,000 | 11,871,000 |
Cash and cash equivalents, ending balance | 33,381,000 | 45,120,000 | 24,467,000 |
Supplemental cash flow information: | |||
Interest paid | 11,694,000 | 11,640,000 | 12,777,000 |
Income taxes paid, net of refunds | 22,831,000 | 19,692,000 | 23,279,000 |
Supplemental non-cash investing activity: | |||
Capital expenditures included in accounts payable | $ 6,858,000 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Related Information | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Related Information | Note 1 - Summary of Significant Accounting Policies and Related Information Corporate Overview When used in these notes within this Annual Report on Form 10-K (the “Annual Report”), 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, which are all wholly-owned. 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 accounting principles generally accepted in the United States of America (the “U.S.”). 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 leading consumer products company offering creative products and solutions for our customers through a diversified portfolio of brands. As of February 28, 2022, we operated three segments: Home & Outdoor, Health & Wellness, and Beauty. In the fourth quarter of fiscal 2022, we changed the names of two of our segments to align with the growth in certain product offerings and brands within our portfolio. Our previously named “Housewares” segment was changed to “Home & Outdoor,” and our previously named “Health & Home” segment was changed to “Health & Wellness.” There were no changes to the products or brands included within our reportable segments as part of these name changes. The Osprey brand and products were added to the Home & Outdoor segment upon the completion of the acquisition of Osprey Packs, Inc. (“Osprey”), discussed further below. Our Home & Outdoor segment provides a broad range of innovative consumer products for home activities such as food preparation, cooking, cleaning, and organization; as well as products for outdoor and on the go activities such as hydration, food storage, backpacks, and travel gear. The Health & Wellness segment provides health and wellness products including healthcare devices, thermometers, water and air filtration systems, humidifiers, and fans. Our Beauty segment provides mass and prestige market beauty appliances including hair styling appliances, grooming tools, decorative hair accessories, and prestige market liquid-based hair and personal care products. Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Our fiscal reporting period ends on the last day in February. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico, Vietnam and the U.S. During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our Beauty segment's mass channel personal care business, which included liquid, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium (“Personal Care”). On June 7, 2021, we completed the sale of our North America Personal Care business to HRB Brands LLC, for $44.7 million in cash and recognized a gain on the sale in SG&A totaling $0.5 million. Subsequent to our fiscal 2022 year end, on March 25, 2022, we completed the sale of the Latin America and Caribbean Personal Care businesses to HRB Brands LLC, for $1.8 million in cash. The net assets sold included intangible assets, inventory, certain net trade receivables, fixed assets and certain accrued sales discounts and allowances relating to our Personal Care business. Accordingly, we continued to classify the identified net assets of the Latin America and Caribbean Personal Care businesses as held for sale in our fiscal 2022 consolidated balance sheet. See Note 4 for additional information. On December 29, 2021, we completed the acquisition of Osprey, a longtime U.S. leader in technical and everyday packs, for $410.9 million in cash, net of a preliminary closing net working capital adjustment and cash acquired. Osprey is highly respected in the outdoor industry with a product lineup that includes a wide range of backpacks and daypacks for hiking, mountaineering, skiing, climbing, mountain biking, trail running, commuting, and school, as well as rugged adventure travel packs, wheeled luggage, and travel accessories. On January 23, 2020, we completed the acquisition of Drybar Products LLC (“Drybar Products”), for approximately $255.9 million in cash. Drybar is an innovative, trendsetting prestige hair care and styling brand in the multibillion-dollar beauty industry. See Note 7 for additional information. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) to be a pandemic. COVID-19 has spread throughout the U.S. and the world. COVID-19 is impacting consumer shopping patterns and demand for goods in certain product categories. Additionally, COVID-19 has disrupted certain parts of our supply chain, which in certain cases, limited our ability to fulfill demand and may limit our ability to fulfill demand in the future. Surges in demand and shifts in shopping patterns related to COVID-19, as well as other factors, have strained the global freight network, which is resulting in higher costs, less capacity, and longer lead times for our products. During fiscal 2021, the COVID-19 related impact on our business included the effect of temporary closures of certain customer stores or limited hours of operation and materially lower store traffic which shifted consumer shopping preferences from brick and mortar to more online purchases. In addition, we saw high demand for healthcare products as well as cooking, storage and related product lines as consumer spent more time at home. We also experienced disruptions to our supply chain due to shifting consumer purchasing patterns, limited capacity of shipping containers, and COVID-19 related work stoppages in the global supply chain. During fiscal 2022, we were adversely impacted by COVID-19 related global supply chain disruptions and cost increases. We also saw recovery of our product lines and brands that were unfavorably impacted in fiscal 2021 as a result of the pandemic. Additionally, as customers have been able to return to more brick and mortar shopping, our mix of online sales has been negatively impacted compared to fiscal 2021. The extent of COVID-19’s impact on the demand for certain of our product lines in the future will depend on future developments, including the continued surges in the spread of COVID-19, our continued ability to source and distribute our products, the impact of COVID-19 on capital and financial markets, and the related impact on consumer confidence and spending, all of which are uncertain and difficult to predict considering the continuously evolving landscape. Accordingly, our liquidity and financial results could be impacted in ways that we are not able to predict today. Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with GAAP and include all of our subsidiaries. Our consolidated financial statements are prepared in U.S. Dollars. All intercompany balances and transactions are eliminated in consolidation. The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. Reclassifications We have reclassified, combined or separately disclosed certain amounts in the prior years’ accompanying footnotes to conform to the current year’s presentation. Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts to be cash equivalents. Receivables Our receivables are principally comprised of trade receivables from customers, primarily in the retail industry, offset by an allowance for credit losses. Our allowance for credit losses reflects our best estimate of expected credit losses over the receivables' term, determined principally based on historical experience, specific allowances for known at-risk accounts, and consideration of current economic conditions and management’s expectations of future economic conditions. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for credit losses and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. We have a significant concentration of credit risk with three major customers at February 28, 2022 representing approximately 23%, 17%, and 9% of our gross trade receivables, respectively. As of February 28, 2021, our significant concentration of credit risk with three major customers represented approximately 18%, 16%, and 15% of our gross trade receivables, respectively. In addition, as of February 28, 2022 and February 28, 2021, approximately 55% and 58%, respectively, of our gross trade receivables were due from our five top customers. Foreign Currency Transactions and Related Derivative Financial Instruments The U.S. Dollar is the functional currency for the Company and all of its subsidiaries and is also the reporting currency for the Company; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions denominated in other currencies have been remeasured into U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, foreign currency exchange rate 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 currency exchange rate gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward contracts and cross-currency debt swaps to exchange foreign currencies for U.S. Dollars at specified rates. Derivatives for which we have elected and qualify for hedge accounting include our forward contracts (“foreign currency contracts”). Our foreign currency contracts are designated as cash flow hedges and are recorded on the balance sheet at fair value with changes in fair value recorded in Other Comprehensive (Loss) Income (“OCI”) until the hedged forecasted transaction affects earnings, at which point amounts are reclassified from Accumulated Other Comprehensive (Loss) Income (“AOCI”) to our consolidated statements of income. Derivatives for which we have not elected or do not qualify for hedge accounting include our cross-currency debt swaps and any changes in the fair value of the derivatives are recorded in our consolidated statements of income. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness. Any material ineffectiveness is recorded in our consolidated statements of income. We do not enter into any derivatives or similar instruments for trading or other speculative purposes. Inventory and Cost of Goods Sold Our inventory consists almost entirely of finished goods. Inventories are stated at the lower of average cost or net realizable value. We write down a portion of our inventory to net realizable value based on the historical sales trends of products and estimates about future demand and market conditions, among other factors. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. General and administrative expenses directly attributable to acquiring inventory include all the expenses of operating our sourcing activities and expenses incurred for packaging. We capitalized $26.0 million, $33.9 million, and $44.6 million of such general and administrative expenses into inventory during fiscal 2022, 2021 and 2020, respectively. We estimate that $17.6 million and $15.1 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2022 and February 28, 2021, respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. For fiscal 2022, 2021 and 2020, finished goods purchased from vendors in Asia comprised approximately 88%, 80%, and 76%, respectively, of total finished goods purchased. During fiscal 2022, we had one vendor (located in China) who fulfilled approximately 9% of our product requirements compared to 11% and 7% for fiscal 2021 and 2020, respectively. Additionally, during fiscal 2022, we had one vendor (located in Mexico) who fulfilled approximately 7% of our product requirements compared to 9% in both fiscal 2021 and fiscal 2020. For fiscal 2022, 2021 and 2020, our top two manufacturers combined fulfilled approximately 16%, 20%, and 18% of our product requirements, respectively. Over the same periods, our top five suppliers fulfilled approximately 36%, 38%, and 39% of our product requirements, respectively. Property and Equipment These assets are recorded at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. License Agreements, Trademarks, Patents, and Other Intangible Assets A significant portion of our sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. We capitalize costs incurred to renew or extend the term of a license agreement and amortize such costs on a straight-line basis over the remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our consolidated statements of income in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 30%, 41%, and 43% of consolidated net sales revenue for fiscal 2022, 2021 and 2020, respectively. During fiscal 2022, two license agreements accounted for net sales revenue subject to royalty payments of approximately 13% and 10% of consolidated net sales revenue. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire through acquisition from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In some instances, we have determined that such acquired assets have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through acquisition, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 12 to 14 years. Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either by a third-party appraisal or the term of any controlling agreements. Goodwill, Intangible and Other Long-Lived Assets and Related Impairment Testing Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors, and when appropriate, valuations performed by independent third-party appraisers. We review goodwill and indefinite-lived intangible assets for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We consider whether circumstances or conditions exist which suggest that the carrying value of our goodwill and indefinite-lived intangible assets might be impaired. If such circumstances or conditions exist, we perform a qualitative assessment to determine whether it is more likely than not that the assets are impaired. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). If the results of the qualitative assessment indicate that it is more likely than not that the assets are impaired, further steps are required in order to determine whether the carrying value of each reporting unit and indefinite-lived intangible assets exceeds its fair market value. An impairment charge is recognized to the extent the goodwill or indefinite-lived intangible asset recorded exceeds the reporting unit’s or asset's fair value. We perform our annual impairment testing for goodwill and indefinite-lived intangible assets as of the beginning of the fourth quarter of our fiscal year (see Note 8). We review intangible assets with definite lives and long-lived assets held and used if a triggering event occurs during the reporting period. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If our analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. We evaluate long-lived assets held for sale quarterly to determine if estimated fair value less cost to sell has changed during the reporting period. See Note 4 for additional information on our assets held for sale impairment analysis. The assumptions and estimates used in our impairment testing involve significant elements of subjective judgment and analysis. While we believe that the assumptions we use are reasonable at the time made, changes in business conditions or other unanticipated events and circumstances may occur that cause actual results to differ materially from projected results and this could potentially require future adjustments to our asset valuations. Economic Useful Lives and Amortization of Intangible Assets Intangible assets consist primarily of license agreements, trademarks, brand assets, customer lists, distribution rights, patents, patent rights, and non-compete agreements. We amortize intangible assets over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset’s economic useful life is deemed indefinite, that asset is not amortized. When we acquire an intangible asset, we consider factors such as the asset's history, our plans for that asset and the market for products associated with the asset. We consider these same factors when reviewing the economic useful lives of our previously acquired intangible assets as well. We review the economic useful lives of our intangible assets at least annually. The determination of the economic useful life of an intangible asset requires a significant amount of judgment and entails significant subjectivity and uncertainty. We complete our analysis of the remaining useful economic lives of our intangible assets during the fourth quarter of each fiscal year or when a triggering event occurs. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 5 to 40 years for licenses, 15 to 30 years for trademarks and 4.5 to 24 years for other definite-lived intangible assets (see Note 8). Financial Instruments The carrying amounts of cash, accounts payable, accrued expenses and other current liabilities and income taxes payable approximate fair value because of the short maturity of these items. The carrying amounts of receivables approximate fair value due to the effect of the related allowance for credit losses. The carrying amount of our floating rate long-term debt approximates its fair value. We use derivatives to manage our exposure to changes in foreign currency exchange rates, which include foreign currency forward contracts and cross-currency debt swaps. In addition, we use interest rate swaps to manage our exposure to changes in interest rates. All of our derivative assets and liabilities are recorded at fair value. See Notes 15, 16 and 17 for more information on our fair value measurements and derivatives. Income Taxes and Uncertain Tax Positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on its technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount that has greater than a 50 percent likelihood of being realized upon ultimate settlement. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, historical experience with similar tax matters, guidance from our tax advisors, and new audit activity. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed and disclose as a separate liability in our financial statements, including related accrued interest and penalties. Revenue Recognition Our revenue is primarily generated from the sale of non-customized consumer products to customers. These products are promised goods that are distinct performance obligations. Revenue is recognized when control of, and title to, the product sold transfers to the customer in accordance with applicable shipping terms, which can occur on the date of shipment or the date of receipt by the customer, depending on the customer and the agreed upon shipping terms. Payment terms from the sale of our products are typically due to us in thirty to ninety days after the date of sale. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. We allow for sales returns for defects in material and workmanship for periods ranging from two Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs, which are also accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. Most of our variable consideration is classified as a reduction to net sales. In instances when we purchase a distinct good or service from our customer and fair value can be reasonably estimated, these amounts are expensed in our consolidated statements of income in SG&A. The amount of consideration granted to customers recorded in SG&A was $39.0 million, $27.1 million, and $20.9 million for fiscal 2022, 2021 and 2020, respectively. Sales taxes and other similar taxes are excluded from revenue. We have elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. Advertising Advertising costs include cooperative retail advertising with our customers, traditional and digital media advertising and production expenses, and expenses associated with other promotional product messaging and consumer awareness programs. Advertising costs are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. We incurred total advertising costs of $96.4 million, $110.7 million, and $71.4 million during fiscal 2022, 2021 and 2020, respectively. Research and Development Expense Research and development expenses consist primarily of salary and employee benefit expenses and contracted development efforts and expenses associated with development of products. Expenditures for research activities relating to product design, engineering, development and improvement are generally charged to expense as incurred and are included in our consolidated statements of income in SG&A. We incurred total research and development expenses of $37.2 million, $30.6 million, and $17.8 million during fiscal 2022, 2021 and 2020, respectively. Shipping and Handling Revenue and Expense Shipping and handling revenue and expense are included in our consolidated statements of income in SG&A. This includes distribution center costs, third-party logistics costs and outbound transportation costs we incur. Our net expense for shipping and handling was $173.4 million, $140.1 million, and $102.7 million during fiscal 2022, 2021 and 2020, respectively. Share-Based Compensation Plans We grant share-based compensation awards to non-employee directors and certain associates under our equity plans. We measure the cost of services received in exchange for equity awards, which include grants of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock awards (“PSAs”), and performance stock units (“PSUs”), based on the fair value of the awards on the grant date. These awards may be subject to attainment of certain service conditions, performance conditions and/or market conditions. Share-based compensation expense is recognized over the requisite service period during which the employee is required to provide service in exchange for the award, unless the awards are subject to performance conditions (“Performance Condition Awards”), in which case we recognize compensation expense over the requisite service period to the extent performance conditions are considered probable. Estimating the number of shares of Performance Condition Awards that are probable of vesting requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment to share-based compensation expense in the period estimates are revised. Share-based compensation expense is recorded ratably for PSAs and PSUs subject to attainment of market conditions (“Market Condition Awards”) during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. The grant date fair value of RSAs, RSUs, PSAs, and PSUs is determined using the closing price of our common stock on the date of grant, except for Market Condition Awards, in which case we use a Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved and is applied to the closing price of our common stock on the date of grant. See Note 9 for further information on our share-based compensation plans. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | Note 2 - New Accounting Pronouncements We did not adopt any new accounting pronouncements during fiscal 2022. Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers . Prior to the issuance of this guidance, contract assets and contract liabilities were recognized by the acquirer at fair value on the acquisition date. The amendments in ASU 2021-08 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted and should be applied prospectively to acquisitions occurring on or after the effective date. This ASU will be effective for us in the first quarter of fiscal 2024. We believe that the adoption of this ASU will not have a material impact on our consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy to other accounting guidance due to the lack of specific authoritative guidance in GAAP (for example, a grant model within International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance , or Subtopic 958-605, Not-For-Profit Entities - Revenue Recognition ). This guidance excludes transactions in the scope of specific GAAP, such as tax incentives accounted for under ASC 740, Income Taxes . This new ASU is effective for annual periods beginning after December 15, 2021, with early adoption and retrospective or prospective application permitted. This ASU will be effective for us in our Form 10-K for fiscal 2023. We believe that the adoption of this ASU will not have a material impact on our consolidated financial statement disclosures. |
Leases
Leases | 12 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Leases | Note 3 - Leases We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We primarily have leases for office space, which are classified as operating leases. Operating leases are included in operating lease assets, accrued expenses and other current liabilities 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 less than 1 year to 11 years. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 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. Operating lease expense recognized within SG&A in the consolidated statements of income was $9.6 million, $7.0 million, and $6.4 million for fiscal 2022, 2021, and 2020, respectively. Short-term lease expense is excluded from this amount and is not material. Rent expense related to all our operating leases was $13.3 million, $9.5 million, and $7.8 million for fiscal 2022, 2021 and 2020, respectively. The non-cash component of lease expense is included as an adjustment to reconcile net income to net cash provided by operating activities in the consolidated statements of cash flows. A summary of supplemental lease information is as follows: February 28, 2022 February 28, 2021 Weighted average remaining lease term (years) 9.5 9.6 Weighted average discount rate 5.52% 6.03% Cash paid for amounts included in the measurement of lease liabilities $ 9,715 $ 6,951 Operating lease assets obtained in exchange for operating lease liabilities $ 12,213 $ 4,163 A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) February 28, 2022 Fiscal 2023 $ 8,320 Fiscal 2024 6,621 Fiscal 2025 6,665 Fiscal 2026 5,361 Fiscal 2027 5,966 Thereafter 32,178 Total future lease payments 65,111 Less: imputed interest (15,611) Present value of lease liability $ 49,500 (in thousands) February 28, 2022 February 28, 2021 Lease liabilities, current (1) $ 5,755 $ 5,972 Lease liabilities, non-current 43,745 38,352 Total lease liability $ 49,500 $ 44,324 (1) Included as part of “ Accrued expenses and other current liabilities |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 12 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Assets and Liabilities Held for Sale | Note 4 - Assets and Liabilities Held for Sale We record assets held for sale in accordance with ASC 360 “Property, Plant, and Equipment,” and present them as single asset amounts in our consolidated financial statements. Assets held for sale consist of assets that we expect to sell within the next year. The assets are reported at the lower of carrying amount or fair value less costs to sell. We cease recording depreciation on assets that are classified as held for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of held for sale. We review assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values less costs to sell. During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our Personal Care business and accordingly, we classified the identified net assets of the disposal group as held for sale. During the fourth quarter of fiscal 2020, we recorded asset impairment charges of $41.0 million ($36.4 million after tax) related to goodwill and intangible assets. During the fourth quarter of fiscal 2021, our quarterly impairment evaluation of long-lived assets held for sale resulted in an asset impairment charge of $8.5 million ($7.4 million after tax) to reduce the goodwill of our Personal Care business to reflect the disposal group at fair value less cost to sell. On June 7, 2021, we completed the sale of our North America Personal Care business to HRB Brands LLC, for $44.7 million in cash and recognized a gain on the sale in SG&A totaling $0.5 million. The net assets sold included intangible assets, inventory, certain net trade receivables, fixed assets and certain accrued sales discounts and allowances relating to our Personal Care business. Accordingly, we continued to classify the identified net assets of the Latin America and Caribbean Personal Care businesses as held for sale in our fiscal 2022 consolidated balance sheet. Subsequent to our fiscal 2022 year end, on March 25, 2022, we completed the sale of the Latin America and Caribbean Personal Care businesses to HRB Brands LLC, for $1.8 million in cash. The carrying amounts of the major classes of assets and liabilities for our Personal Care business that were classified as held for sale are as follows: (in thousands) February 28, 2022 February 28, 2021 Receivables, net of allowance of $23 and $30 $ 1,265 $ 7,979 Inventory 611 12,667 Property and equipment, net of accumulated depreciation of $152 and $403 66 100 Goodwill (1) — 1,397 Other intangible assets (1) — 17,724 Assets held for sale $ 1,942 $ 39,867 Accrued sales discounts and allowances $ 235 $ — Liabilities held for sale $ 235 $ — (1) Goodwill and other intangible assets as of February 28, 2021 are presented net of accumulated impairment and accumulated amortization of $80,445 and $4,474, respectively. The following table summarizes income (loss) before income tax for our Personal Care business: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Income (loss) before income tax $ 5,546 $ 8,705 $ (29,760) Income (loss) before income taxes includes asset impairment charges of $8.5 million and $41.0 million for fiscal 2021 and 2020, respectively, and amortization of intangible assets of $7.8 million for fiscal 2020. No impairment charges were recorded in fiscal 2022. No amortization of intangible assets was recorded in fiscal 2022 or 2021 for our Personal Care business. Income (loss) before income taxes also includes corporate overhead expenses that are allocable to the business. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5 - Property and Equipment A summary of property and equipment is as follows: Estimated Useful Lives (Years) Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Land — $ 20,632 $ 12,644 Building and improvements 3 — 40 126,093 116,652 Computer, furniture and other equipment 3 — 15 102,566 97,810 Tools, molds and other production equipment 3 — 7 55,925 42,729 Construction in progress — 61,168 7,079 Property and equipment, gross 366,384 276,914 Less: accumulated depreciation (161,006) (140,379) Property and equipment, net $ 205,378 $ 136,535 We recorded $23.1 million, $20.1 million and $16.1 million of depreciation expense including $10.0 million, $6.8 million and $4.3 million in cost of goods sold and $13.1 million, $13.3 million and $11.8 million in SG&A in the consolidated statements of income for fiscal 2022, 2021 and 2020, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Feb. 28, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 6 - Accrued Expenses and Other Current Liabilities A summary of accrued expenses and other current liabilities is as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Accrued compensation, benefits and payroll taxes $ 55,405 $ 66,385 Accrued sales discounts and allowances 69,120 59,426 Accrued sales returns 33,384 29,434 Accrued advertising 55,775 50,923 Other 57,991 65,011 Total accrued expenses and other current liabilities $ 271,675 $ 271,179 |
Acquisitions
Acquisitions | 12 Months Ended |
Feb. 28, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Note 7 - Acquisitions Osprey On December 29, 2021, we completed the acquisition of Osprey, a longtime U.S. leader in technical and everyday packs. Osprey is highly respected in the outdoor industry with a product lineup that includes a wide range of backpacks and daypacks for hiking, mountaineering, skiing, climbing, mountain biking, trail running, commuting, and school, as well as rugged adventure travel packs, wheeled luggage, and travel accessories. The total purchase consideration, net of cash acquired, was $410.9 million in cash, including the impact of a preliminary $9.1 million favorable customary closing net working capital adjustment. The acquisition was funded with cash on hand and borrowings under our existing revolving credit facility. We incurred pre-tax acquisition-related expenses of $2.4 million during fiscal 2022, which were recognized in SG&A within our consolidated statements of income. We accounted for the acquisition as a purchase of a business and recorded the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed as goodwill. The goodwill recognized is attributable primarily to expected synergies including leveraging our information systems, shared service capabilities and international footprint. The goodwill is not expected to be deductible for income tax purposes. We have provisionally determined the appropriate fair values of the acquired intangible assets and completed our analysis of the economic lives of the assets acquired. We assigned $170.0 million to trade names which were determined to have an indefinite life. We assigned $22.0 million to customer relationships and are amortizing over a 4.5 year expected life, based on historical attrition rates. The following table presents the preliminary net assets recorded upon acquisition of Osprey at December 29, 2021: (in thousands) Assets: Receivables $ 11,758 Inventory 30,056 Prepaid expenses and other current assets 3,699 Income taxes receivable 4,197 Property and equipment 11,386 Goodwill 208,972 Trade names - indefinite 170,000 Customer relationships - definite 22,000 Operating lease assets 2,155 Total assets 464,223 Liabilities: Accounts payable 4,487 Accrued expenses and other current liabilities 7,345 Lease liabilities, non-current 1,719 Deferred tax liabilities, net 39,792 Total liabilities 53,343 Net assets recorded $ 410,880 The fair value of receivables acquired is $11.8 million, with the gross contractual amount being $11.9 million and $0.1 million expected to be uncollectible. The impact of the acquisition of Osprey on our consolidated statements of income for fiscal 2022 is as follows: December 29, 2021 (acquisition date) through February 28, 2022 (in thousands, except earnings per share data) Fiscal Year Ended February 28, 2022 Sales revenue, net $ 24,373 Net income 696 EPS: Basic $ 0.03 Diluted $ 0.03 The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Osprey had occurred on March 1, 2020. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred if the acquisition had been completed on March 1, 2020, and this information is not intended to be indicative of future results: Fiscal Years Ended the Last Day of February, (in thousands, except earnings per share data) 2022 2021 Sales revenue, net $ 2,361,906 $ 2,224,196 Net income 202,507 259,311 EPS: Basic $ 8.39 $ 10.38 Diluted $ 8.30 $ 10.29 These amounts have been calculated after applying our accounting policies and adjusting the results of Osprey to reflect the effect of definite-lived intangible assets recognized as part of the business combination on amortization expense as if the acquisition had occurred on March 1, 2020. Drybar Products On January 23, 2020, we completed the acquisition of Drybar Products for approximately $255.9 million in cash. The purchase price was funded by borrowings under the Company's revolving credit agreement. We accounted for the acquisition as a purchase of a business and recorded the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed as goodwill. Acquisition-related expenses incurred during fiscal 2020 were approximately $2.5 million before tax. Drybar is an innovative, trend setting prestige hair care and styling brand in the multibillion-dollar beauty industry. As part of the transaction, we granted a worldwide license to Drybar Holdings LLC, which has subsequently been assumed by WellBiz Brands, Inc., as successor owner of Drybar blowout salons, to use the Drybar trademark in relation to the franchising and operation of Drybar salons. The salons exclusively use, promote, and sell Drybar products globally. The following table presents the net assets recorded upon acquisition of Drybar Products at January 23, 2020: (in thousands) Assets: Receivables $ 7,710 Inventory 16,603 Prepaid expenses and other current assets 190 Property and equipment 1,472 Goodwill 172,933 Trade names - definite 30,000 Other intangible assets - definite 33,000 Subtotal - assets 261,908 Liabilities: Accounts payable 1,948 Accrued expenses 4,099 Subtotal - liabilities 6,047 Net assets recorded $ 255,861 The impact of the acquisition of Drybar Products on our consolidated statements of income for fiscal 2020 is as follows: January 23, 2020 (acquisition date) through February 29, 2020 (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 6,039 Net income 1,483 EPS: Basic $ 0.06 Diluted $ 0.06 The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Drybar Products had occurred on March 1, 2018. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred as if the acquisition had been completed on March 1, 2018, and this information is not intended to be indicative of future results: (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 1,773,592 Net income 162,114 EPS: Basic $ 6.45 Diluted $ 6.40 |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Feb. 28, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Note 8 - Goodwill and Intangibles Amortization expense is recorded for intangible assets with definite useful lives and is reported within SG&A in our consolidated statements of income. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in some of those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Accordingly, the majority of our goodwill is not deductible for tax purposes. We perform annual impairment testing each fiscal year and interim impairment testing, if necessary. We write down any asset deemed to be impaired to its fair value. Impairment Testing in Fiscal 2022 - We did not record any impairment charges related to goodwill or intangible assets. Impairment Testing in Fiscal 2021 - During the fourth quarter of fiscal 2021, our quarterly impairment evaluation of long-lived assets held for sale resulted in an asset impairment charge of $8.5 million ($7.4 million after tax) to reduce the goodwill of our Personal Care business to reflect the disposal group at fair value less cost to sell. See Note 4 for additional information. Impairment Testing in Fiscal 2020 - We recorded asset impairment charges related to goodwill and intangible assets of $41.0 million ($36.4 million after tax). The charges were related to our Personal Care business, which was written down to its estimated fair value, and classified as held for sale. There were no changes to the gross carrying amount or accumulated impairment of our goodwill associated with our assets held and used during fiscal 2021. The following table summarizes the changes in our goodwill by segment for fiscal 2022: (in thousands) Home & Outdoor Health & Wellness Beauty Total Gross carrying amount as of February 28, 2021 $ 282,056 $ 284,913 $ 172,932 $ 739,901 Accumulated impairment as of February 28, 2021 — — — — Acquisitions (1) 208,972 — — 208,972 Gross carrying amount as of February 28, 2022 491,028 284,913 172,932 948,873 Accumulated impairment as of February 28, 2022 — — — — Net carrying amount as of February 28, 2022 $ 491,028 $ 284,913 $ 172,932 $ 948,873 (1) Reflects the goodwill recorded in connection with the acquisition of Osprey on December 29, 2021. For additional information see Note 7. The following table summarizes the components of our other intangible assets as follows: February 28, 2022 (1) February 28, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived: Licenses $ 7,400 $ — $ 7,400 $ 7,400 $ — $ 7,400 Trademarks 358,200 — 358,200 188,200 — 188,200 Definite-lived: Licenses 74,250 (3,267) 70,983 87,946 (14,800) 73,146 Trademarks 30,150 (4,332) 25,818 30,150 (2,327) 27,823 Other Intangibles 218,155 (142,710) 75,445 194,808 (134,113) 60,695 Total $ 688,155 $ (150,309) $ 537,846 $ 508,504 $ (151,240) $ 357,264 (1) Balances as of February 28, 2022 include intangible assets recorded in connection with the acquisition of Osprey on December 29, 2021. For additional information see Note 7. The following tables summarize amortization expense related to our other intangible assets as follows: Aggregate Amortization Expense (in thousands) Fiscal 2022 $ 12,764 Fiscal 2021 17,643 Fiscal 2020 21,271 Estimated Amortization Expense (in thousands) Fiscal 2023 $ 16,860 Fiscal 2024 16,738 Fiscal 2025 16,248 Fiscal 2026 14,072 Fiscal 2027 9,609 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Feb. 28, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Note 9 - Share-Based Compensation Plans During the fiscal year, we had equity activity under one expired and two active share-based compensation plans. The expired plan consists of the 2008 Stock Incentive Plan (the “2008 Plan”). The active plans consist of the 2018 Stock Incentive Plan (the “2018 Plan”) and the 2018 Employee Stock Purchase Plan (the “2018 ESPP”). The plans are administered by the Compensation Committee of the Board of Directors, which consists of non-employee directors who are independent under the applicable listing standards for companies traded on the NASDAQ Stock Market LLC. 2018 Plan On August 22, 2018, our shareholders approved the 2018 Plan. The 2018 Plan permits the granting of stock options, stock appreciation rights, RSAs, RSUs, PSAs, PSUs, and other stock-based awards. The aggregate number of shares for issuance under the 2018 Plan will not exceed 2,000,000 shares. A summary of shares available for issue under the 2018 Plan follows: Shares originally authorized 2,000,000 Less share awards issued (12,911) Plus forfeitures 147,853 Less RSUs, RSAs, PSUs and PSAs issued and issuable upon vesting (612,312) Less maximum PSUs and PSAs issued and issuable upon vesting (1) (281,361) Shares available for issuance at February 28, 2022 1,241,269 (1) Reflects incremental PSUs and PSAs issuable upon vesting between achievement of plan target at 100% and maximum achievement of 200% of plan target, adjusted for actual forfeitures to date. 2018 ESPP On August 22, 2018, our shareholders approved the 2018 ESPP. The aggregate number of shares of common stock that may be purchased under the 2018 ESPP will not exceed 750,000 shares. Under the terms of the plan, associates may authorize the withholding of up to 15% of their wages or salaries to purchase our shares of common stock, not to exceed $25,000 of the fair market value of such shares for any calendar year. The purchase price for shares acquired under the 2018 ESPP is equal to the lower of 85% of the share's fair market value on either the first day of each option period or the last day of each period. The plan will expire by its terms on September 1, 2028. Shares of common stock purchased under the 2018 ESPP vest immediately at the time of purchase. Accordingly, the fair value award associated with their discounted purchase price is expensed at the time of purchase. During fiscal 2022, there were 23,524 shares purchased under the plan. Share-Based Compensation Expense We recorded share-based compensation expense in SG&A as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Stock options $ — $ 19 $ 189 Directors stock compensation 644 685 604 Service Condition Awards 11,177 7,941 8,419 Performance Condition Awards 17,260 16,796 12,932 Market Condition Awards 4,234 — — Employee stock purchase plan 1,303 977 785 Share-based compensation expense 34,618 26,418 22,929 Less: income tax benefits (2,965) (1,926) (1,803) Share-based compensation expense, net of income tax benefits $ 31,653 $ 24,492 $ 21,126 Stock Options There have been no new grants of options since fiscal 2017 and all options outstanding at February 28, 2021 and 2022 were exercisable. A summary of stock option activity under our 2008 plan is as follows: (in thousands, except contractual term and per share data) Options Weighted Average Exercise Price (per share) Weighted Intrinsic Value Outstanding at February 28, 2021 48 $ 70.42 2.5 $ 6,866 Exercises (23) 72.58 3,560 Outstanding at February 28, 2022 25 $ 68.27 1.6 $ 3,232 Exercisable at February 28, 2022 25 $ 68.27 1.6 $ 3,232 The total intrinsic value of options exercised during fiscal 2022, 2021, and 2020, was $3.6 million, $2.8 million, and $9.1 million, respectively. Director Restricted Stock Awards During fiscal 2022 we issued under the 2018 Plan, 2,828 RSAs to non-employee members of the Board of Directors with a total grant date fair value of $0.6 million or $226.50 per share. The RSAs vested immediately, and accordingly, were expensed immediately. The total fair value of RSAs granted to our non-employee members of the Board of Directors that vested immediately on grant dates in fiscal 2021 and 2020 was $0.7 million and $0.6 million, respectively. Service Condition Awards We grant RSAs and RSUs to associates, which primarily vest ratably over four years or have specified graded vesting terms over 3 years, “Service Condition Awards”. A summary of Service Condition Awards activity during fiscal 2022 follows: (in thousands, except per share data) Number of Weighted Average Outstanding at February 28, 2021 126 $ 129.52 Granted 93 218.35 Vested (65) 116.22 Forfeited (16) 192.26 Outstanding at February 28, 2022 138 $ 188.11 The total fair value of Service Condition Awards that vested in fiscal 2022, 2021, and 2020 was $14.3 million, $14.0 million, and $10.8 million, respectively. The weighted average grant date fair value of Service Condition Awards granted during fiscal 2022, 2021 and 2020 was $218.35, $179.30, and $118.76, respectively. Performance Condition Awards We grant Performance Condition Awards to certain officers and associates, which cliff vest after three years. The vesting of these awards is contingent upon meeting one or more defined operational performance metrics over a three year performance period. The quantity of shares ultimately awarded can range from 0% to 200% of “Target”, as defined in the award agreement as 100%, based on the level of achievement against the defined operational performance metrics. A summary of Performance Condition Awards activity during fiscal 2022 follows: (in thousands, except per share data) Number of Performance Condition Awards Weighted Average Outstanding at February 28, 2021 (1) 470 $ 129.53 Granted (1) (2) 140 216.20 Vested (1) (2) (134) 86.25 Forfeited (25) 148.16 Outstanding at February 28, 2022 451 $ 148.66 (1) Includes PSUs granted during fiscal 2019 at Target and PSAs granted during fiscal 2020, 2021 and 2022 at maximum achievement of 200% of Target. (2) Includes an additional 68 shares, which resulted from the performance of the fiscal 2019 awards exceeding Target. The total fair value of Performance Condition Awards that vested in fiscal 2022, 2021, and 2020 was $29.9 million, $18.6 million, and $15.0 million, respectively. The weighted average grant date fair value of Performance Condition Awards granted during fiscal 2022, 2021 and 2020 was $216.20, $170.27 and $111.98, respectively. Market Condition Awards We grant Market Condition Awards to certain officers and associates, which cliff vest after three years. The vesting of these awards is contingent upon meeting specified stock price return targets compared to a pre-determined peer group over a three year period. The quantity of shares ultimately awarded can range from 0% to 200% of “Target”, as defined in the award agreement as 100%, based on the level of achievement against the defined TSR targets. A summary of Market Condition Awards activity during fiscal 2022 follows: (in thousands, except per share data) Number of Market Condition Awards Weighted Average Outstanding at February 28, 2021 — 129.53 $ — Granted (1) 72 170.27 156.08 Vested — 97.05 — Forfeited (4) $ 155.62 156.08 Outstanding at February 28, 2022 68 $ 129.53 $ 156.08 (1) Includes PSAs granted during fiscal 2022 at maximum achievement of 200% of Target. The weighted average grant date fair value of Market Condition Awards granted during fiscal 2022 was $156.08. The fair value of our Market Condition Awards are estimated using a Monte Carlo simulation valuation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved and is applied to the closing price of our common stock on the date of grant. The input variables utilized are included in the table below: Fiscal Year Ended February 28, 2022 Expected term in years 3 Risk free interest rate 0.3 % Expected volatility 38.9 % Expected dividend yield (1) — % (1) The Monte Carlo method assumes a reinvestment of dividends. The expected term is consistent with the explicit service period and the risk free interest rate is based on U.S. Treasury securities with maturities equal to the expected term of the awards. Expected volatility is based on the historical volatility of our stock prices over the expected term of the awards. Unrecognized Share-Based Compensation Expense As of February 28, 2022, our total unrecognized share-based compensation for all awards was $28.8 million, which will be recognized over a weighted average amortization period of 2.0 years. The total unrecognized share-based compensation reflects an estimate of Target achievement for Performance Condition Awards granted during fiscal 2022 and fiscal 2021, and a weighted average estimate of 175% of Target achievement for Performance Condition Awards granted in fiscal 2020. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Feb. 28, 2022 | |
Retirement Benefits, Description [Abstract] | |
Defined Contribution Plans | Note 10 - Defined Contribution Plans We sponsor defined contribution savings plans in the U.S. and other countries where we have associates. Total company matching contributions made to these plans for fiscal 2022, 2021 and 2020 were $5.6 million, $5.0 million and $4.3 million, respectively. |
Repurchases of Common Stock
Repurchases of Common Stock | 12 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Repurchases of Common Stock | Note 11 - Repurchases of Common Stock In August 2021, our Board of Directors authorized the repurchase of up to $500 million of our outstanding common stock. The authorization became effective August 25, 2021, for a period of three years, and replaced our former repurchase authorization, of which approximately $79.5 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. As of February 28, 2022, our repurchase authorization allowed for the purchase of $422.0 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 option or other share-based award holders are settled by having the holder tender back to us 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: Fiscal Years Ended Last Day of February, (in thousands, except share and per share data) 2022 2021 2020 Common stock repurchased on the open market: Number of shares 776,601 960,829 — Aggregate value of shares $ 170,712 $ 191,606 $ — Average price per share $ 219.82 $ 199.42 $ — Common stock received in connection with share-based compensation: Number of shares 78,358 69,194 77,272 Aggregate value of shares $ 17,492 $ 11,688 $ 10,169 Average price per share $ 223.23 $ 168.92 $ 131.61 |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Feb. 28, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Note 12 - Restructuring Plan In October 2017, we announced a restructuring plan (referred to as “Project Refuel”) intended to enhance performance primarily in the Beauty and former Nutritional Supplements segments. Project Refuel includes charges for a reduction-in-force and the elimination of certain contracts. During the first quarter of fiscal 2019, we expanded Project Refuel to include the realignment and streamlining of our supply chain structure. We incurred $0.4 million, $0.4 million and $3.3 million of pre-tax restructuring costs related to employee severance and termination benefits during fiscal 2022, 2021 and 2020, respectively, which are recorded as “Restructuring charges” in the consolidated statements of income. Restructuring costs incurred in fiscal 2021 and 2020 also included contract termination costs. During fiscal 2022, we made total cash restructuring payments of $0.5 million. During the fourth quarter of fiscal 2022, we completed the plan, which resulted in total restructuring charges and payments of $9.6 million and total annualized profit improvements of approximately $12.5 million over the duration of the plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies Indemnity Agreements Under agreements with customers, licensors and parties from whom we have acquired assets or entered into business combinations, we indemnify these parties against liability associated with our products. Additionally, we are party to a number of agreements under leases where we indemnify the lessor for liabilities attributable to our actions or conduct. The indemnity agreements to which we are a party do not, in general, increase our liability for claims related to our products or actions and have not materially affected our consolidated financial statements. Legal Matters We are involved in various other legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity, except as described below. On December 23, 2021, Brita LP filed a complaint against Kaz USA, Inc. and Helen of Troy Limited in the United States District Court for the Western District of Texas (the “Patent Litigation”), alleging patent infringement by the Company relating to its PUR gravity-fed water filtration systems. In the Patent Litigation, Brita LP seeks monetary damages and injunctive relief relating to the alleged infringement. Brita LP simultaneously filed a complaint with the United States International Trade Commission (“ITC”) against Kaz USA, Inc., Helen of Troy Limited and five other companies that sell water filtration systems (the “ITC Action”). The complaint in the ITC Action also alleges patent infringement by the Company with respect to its PUR gravity-fed water filtration systems. In the ITC Action, Brita LP requested the ITC to initiate an unfair import investigation relating to the filtration systems. This action seeks injunctive relief to prevent entry of PUR products (and certain other products) into the U.S. and removal of existing inventory that is already in the U.S. On January 25, 2022, the ITC instituted the investigation requested by the ITC Action. The Patent Litigation has been stayed pending resolution of the ITC Action. We intend to vigorously pursue our claims and defenses in these proceedings. However, we cannot predict the outcome of these proceedings, the amount or range of any potential loss, or when the proceedings will be resolved. Litigation is inherently unpredictable, and the resolution or disposition of these proceedings could, if adversely determined, have a material and adverse impact on our financial position and results of operations. Regulatory Matters Our operations are subject to national, state, local, and provincial jurisdictions’ environmental, health and safety laws and regulations and industry-specific product certifications. Many of the products we sell are subject to product safety laws and regulations in various jurisdictions. These laws and regulations specify the maximum allowable levels of certain materials that may be contained in our products, provide statutory prohibitions against misbranded and adulterated products, establish ingredients and manufacturing procedures for certain products, specify product safety testing requirements, and set product identification, labeling and claim requirements. For example, some of our Beauty segment’s customers require that our Beauty appliances comply with various safety certifications, including UL certifications. Similarly, thermometers distributed by our Health & Wellness segment must comply with various regulations governing the production and distribution of medical devices. Additionally, some product lines within our Health & Wellness segment are subject to product identification, labeling and claim requirements, which are monitored and enforced by regulatory agencies, such as the U.S. Environmental Protection Agency (the “EPA”), U.S. Customs and Border Protection, the U.S. Food and Drug Administration, and the U.S. Consumer Product Safety Commission. During fiscal 2022, we were in discussions with the EPA regarding the compliance of packaging claims on certain of our products in the air and water filtration categories and a limited subset of humidifier products within the Health & Wellness segment that are sold in the U.S. The EPA did not raise any product quality, safety or performance issues. As a result of these packaging compliance discussions, we voluntarily implemented a temporary stop shipment action on the impacted products as we worked with the EPA towards an expedient resolution. The EPA approved modest changes to our labeling claims on packaging of the air and water filtration impacted products, which we implemented, and subsequently resumed shipping during fiscal 2022. Our fiscal 2022 consolidated, and Health & Wellness segment’s, net sales revenue, gross profit, SG&A, and operating income was materially and adversely impacted by the stop shipment actions and the time needed to execute repackaging plans after changes were approved by the EPA. While we have resumed normalized levels of shipping of the affected inventory, we are still in process of repackaging our existing inventory of impacted products. Additionally, as a result of continuing dialogue with the EPA, we are executing further repackaging and relabeling plans on certain additional humidifier products and certain additional air filtration products. If we are not able to execute our repackaging plans on schedule to meet demand, our net sales revenue, gross profit and operating income could continue to be materially and adversely impacted. At this time, we are not aware of any fines or penalties related to this matter imposed against us by the EPA. While we do not anticipate material fines or penalties, there can be no assurances that such fines or penalties will not be imposed. During fiscal 2022, we recorded a $13.1 million charge to cost of goods sold to write-off the obsolete packaging for the affected products in our inventory on-hand and in-transit as of the end of the first quarter of fiscal 2022. During fiscal 2022, we incurred additional compliance costs of $19.3 million, comprised of $14.6 million of incremental warehouse storage costs and legal fees, which were recognized in SG&A, and $4.7 million of storage, obsolete packaging and other charges from vendors, which were recognized in cost of goods sold. We refer to these charges as “EPA compliance costs.” In addition, during fiscal 2022, we incurred and capitalized into inventory costs to repackage a portion of our existing inventory of the affected products and expect to continue to incur and capitalize such costs as we continue to repackage inventory. We also expect to incur additional compliance costs, which may include incremental freight, warehouse storage costs, charges from vendors, and legal fees, among other things. Such potential incremental EPA compliance costs will be expensed as incurred and could materially and adversely impact our consolidated and Health & Wellness segment’s gross profit and operating income. In addition, our net sales revenue could be materially and adversely impacted by customer returns, an increase in sales discounts and allowances and by the potential impact of distribution losses at certain retailers. For additional information refer to Item 1A., “Risk Factors,” and to Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “EPA Compliance Costs” included within this Annual Report. Commitments We sell certain of our products under trademarks licensed from third parties. Some of these trademark license agreements require us to pay minimum royalties. As of February 28, 2022, we estimate future minimum annual royalty payments over the noncancellable term of these arrangements to be approximately $7.4 million, $7.3 million, $7.0 million, $5.6 million, and $2.9 million per year, during the next five fiscal years, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 14 - Long-Term Debt A summary of our long-term debt follows: (in thousands) February 28, 2022 February 28, 2021 Mississippi Business Finance Corporation Loan (the “MBFC Loan”) (1) $ 16,707 $ 18,607 Credit Agreement (2) 799,500 329,000 Subtotal 816,207 347,607 Unamortized prepaid financing fees (2,991) (3,977) Total long-term debt 813,216 343,630 Less: current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 811,332 $ 341,746 (1) The MBFC Loan is unsecured and bears floating interest based on either 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 Net Leverage Ratio defined in the Indenture (defined below). (2) The Credit Agreement (defined below) is unsecured and bears floating interest at either the Base Rate or LIBOR, plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.0% and 1.0% to 2.0% for Base Rate and LIBOR borrowings, respectively. These floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $125 million and $225 million of the outstanding principal balance under the Credit Agreement as of February 28, 2022 and February 28, 2021, respectively (see Notes 15, 16, and 17 for additional information regarding interest rate swaps). Aggregate annual maturities of our long-term debt as of February 28, 2022 are as follows: (in thousands) Fiscal 2023 $ 1,900 Fiscal 2024 14,807 Fiscal 2025 — Fiscal 2026 799,500 Fiscal 2027 — Thereafter — Total $ 816,207 Credit Agreement We have an amended credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for an unsecured total revolving commitment of $1.25 billion and matures on March 13, 2025. Borrowings accrue interest under one of two alternative methods (based upon a Base Rate or 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 and letter of credit fees under the Credit Agreement. The Credit Agreement includes a $300 million accordion, which can be used for term loan commitments. The accordion permits the Company to request to increase its borrowing capacity, not to exceed the $300 million commitment in the aggregate, provided certain conditions are met, including lender approval. Any increase to term loan commitments and revolving loan commitments must be made on terms identical to the revolving loans under the Credit Agreement and must have a maturity date of no earlier than March 13, 2025. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. We are able to repay amounts borrowed at any time without penalty. As of February 28, 2022, the outstanding revolving loan principal balance was $799.5 million (excluding prepaid financing fees) and the balance of outstanding letters of credit was $32.7 million. As of February 28, 2022, the amount available for borrowings under the Credit Agreement was $417.8 million. Covenants in the Credit Agreement limit the amount of total indebtedness we can incur. As of February 28, 2022, these covenants did not limit our ability to incur $417.8 million of additional debt under the Credit Agreement. Other Debt Agreements As of February 28, 2022, we have an aggregate principal balance of $16.7 million (excluding prepaid financing fees) under an unsecured loan agreement with the Mississippi Business Finance Corporation (the “MBFC”), which was entered into in connection with the issuance by MBFC of taxable industrial development revenue bonds (the “Bonds”). The borrowings were used to fund construction of our Olive Branch, Mississippi distribution facility. Since March 2018, the MBFC Loan can be called by the holder at any time. The loan can be prepaid without penalty. The remaining loan principal balance is payable as follows: $1.9 million on March 1, 2022 and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023. On May 14, 2020, Helen of Troy Limited and certain of its subsidiaries entered into the Sixth Amendment to Guaranty Agreement (the “Amended Guaranty”) in favor of Bank of America, N.A. The Amended Guaranty amends the Guaranty Agreement (as amended, the “Guaranty Agreement”), dated March 1, 2013, made by the Company and certain of its subsidiaries in favor of Bank of America, N.A. and other lenders. Certain of the representations and warranties, and covenants in the Guaranty Agreement were amended by the Amended Guaranty to include or modify certain baskets, exceptions and other customary provisions. The Bonds were issued under a Trust Indenture, dated as of March 1, 2013 (as supplemented, the “Indenture”), by and between MBFC and U.S. Bank National Association, as trustee (the “Trustee”). On May 14, 2020, MBFC and U.S. Bank National Association, as Trustee, entered into the Fifth Supplemental Trust Indenture, effective May 14, 2020 (the “Fifth Supplemental Indenture”), with the consent of Kaz USA, Inc. (“Kaz USA”) and Bank of America, N.A., the purchaser of the Bonds. As amended by the Fifth Supplemental Indenture, the Bonds and the related loans to Kaz USA will bear interest at a Base Rate or LIBOR plus a margin based on the Net Leverage Ratio (as defined in the Fifth Supplemental Indenture). The Fifth Supplemental Indenture amended the pricing grid for the LIBOR and Base Rate margins. Debt Covenants 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 key financial covenants defined in the accompanying Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources - Credit Agreement and Other Debt Agreements . Our debt agreements also contain other customary covenants, including, among other things, covenants restricting or limiting us, except under certain conditions set forth therein, from (1) incurring debt, (2) incurring liens on our properties, (3) making certain types of investments, (4) selling certain assets or making other fundamental changes relating to mergers and consolidations, and (5) repurchasing shares of our common stock and paying dividends. Our debt agreements also contain customary events of default, including failure to pay principal or interest when due, among others. Our debt agreements are cross-defaulted to each other. Upon an event of default under our debt agreements, the holders or lenders may, among other things, accelerate the maturity of any amounts outstanding under our debt agreements. The commitments of the lenders to make loans to us under the Credit Agreement are several and not joint. Accordingly, if any lender fails to make loans to us, our available liquidity could be reduced by an amount up to the aggregate amount of such lender’s commitments under the Credit Agreement. As of February 28, 2022, we were in compliance with all covenants as defined under the terms of the Credit Agreement and our other debt agreements. The following table contains information about interest rates and the related weighted average borrowings outstanding under our Credit Agreement and the MBFC Loan for the periods presented below: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Credit Agreement: Average borrowings outstanding (1) $ 503,900 $ 334,400 $ 286,640 Average effective interest rate (2) 1.1% 1.7% 3.2% Interest rate range 1.1% - 3.3% 1.1% - 4.8% 2.6% - 5.5% Weighted average interest rates on borrowings outstanding at year end 1.2% 1.1% 2.7% MBFC Loan: Average borrowings outstanding (1) $ 17,087 $ 18,987 $ 20,887 Average effective interest rate (2) 1.1% 1.4% 3.1% Interest rate range 1.1% - 1.2% 1.1% - 2.6% 2.6% - 3.5% Weighted average interest rates on borrowings outstanding at year end 1.2% 1.1% 2.6% (1) Average borrowings outstanding is computed as the average of the current and four prior quarters ending balances outstanding. (2) The average effective interest rate during each year is computed by dividing the total interest expense associated with the borrowing for a fiscal year by the average borrowings outstanding for the same fiscal year. |
Fair Value
Fair Value | 12 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 15 - Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. These inputs are classified into the following hierarchy: Level 1: 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. When circumstances dictate the transfer of an asset or liability to a different level, we report the transfer at the beginning of the reporting period in which the facts and circumstances resulting in the transfer occurred. There were no transfers between the fair value hierarchy levels during the periods presented. 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 following tables present the carrying amount and fair value of our financial assets and liabilities measured and recorded at fair value on a recurring basis and classified as Level 2 as follows: Carrying Amount and Fair Value (in thousands) February 28, 2022 February 28, 2021 Assets: Cash equivalents (money market accounts) $ 438 $ 1,631 Foreign currency derivatives 2,918 33 Total assets $ 3,356 $ 1,664 Liabilities: Interest rate swaps $ 2,781 $ 9,941 Foreign currency derivatives 825 6,550 Total liabilities $ 3,606 $ 16,491 The carrying amounts of cash, accounts payable, accrued expenses and other current liabilities and income taxes payable approximate fair value because of the short maturity of these items. The carrying amounts of receivables approximate fair value due to the effect of the related allowance for credit losses. The carrying amount of our floating rate long-term debt approximates its fair value. We use derivatives to manage our exposure to changes in foreign currency exchange rates, which include foreign currency forward contracts and cross-currency debt swaps. In addition, we use interest rate swaps to manage our exposure to changes in interest rates. All of our derivative assets and liabilities are recorded at fair value. See Notes 1, 16 and 17 for more information on our derivatives. We did not remeasure any assets to fair value on a non-recurring basis during fiscal 2022. Assets remeasured to fair value on a non-recurring basis during fiscal 2021 represent long-lived assets held for sale related to our Personal Care business, which were impaired. During the fourth quarter of fiscal 2021, our quarterly impairment evaluation of long-lived assets held for sale resulted in an asset impairment charge to reduce the goodwill of our Personal Care business to reflect the disposal group at fair value less cost to sell. The fair value of the long-lived assets held for sale presented in the table below represent the remaining carrying value of the disposal group and was estimated based on current market values less costs to sell. Refer to Note 4 for additional information on assets held for sale. Fair Value Measurements Fiscal 2021 Asset Impairment Charges (in thousands) February 28, 2021 Level 1 Level 2 Level 3 Held for sale $ 39,867 $ — $ — $ 39,867 $ (8,452) Total $ 39,867 $ — $ — $ 39,867 $ (8,452) |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Feb. 28, 2022 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments and Risk Management | Note 16 - Financial Instruments and Risk Management Foreign Currency Risk The U.S. Dollar is the functional currency for the Company and all of its subsidiaries and is also the reporting currency for the Company. 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. Approximately 10%, 12%, and 14% of our net sales revenue was denominated in foreign currencies during fiscal 2022, 2021 and 2020, respectively. These sales were primarily denominated in Euros, Canadian Dollars, British Pounds and Mexican Pesos. We make most of our inventory purchases from manufacturers in Asia and primarily use the U.S. Dollar for such purchases. In our consolidated statements of income, foreign currency exchange rate 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 currency exchange rate gains and losses are recognized in SG&A. We recorded in SG&A foreign currency exchange rate net losses of $0.2 million and $0.6 million during fiscal 2022 and 2021, respectively, and net gains of $2.2 million during fiscal 2020. We mitigate certain foreign currency exchange rate risk by using forward contracts (“foreign currency contracts”) and mark-to-market cross-currency debt swaps to protect against the foreign currency exchange rate risk inherent in our transactions denominated in foreign currencies. We do not enter into any derivatives or similar instruments for trading or other speculative purposes. Our foreign currency contracts are designated as cash flow hedges and are recorded on the balance sheet at fair value with changes in fair value recorded in OCI until the hedge transaction is settled, at which point amounts are reclassified from AOCI to our consolidated statements of income. Derivatives for which we have not elected hedge accounting consist of our cross-currency debt swaps, and any changes in the fair value of the derivatives are recorded in our consolidated statements of income. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness. Any ineffectiveness, which is not material for any year presented, is immediately recognized in our consolidated statements of income. Interest Rate Risk Interest on our outstanding debt as of February 28, 2022 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 a portion of our outstanding principal balance under the Credit Agreement. As of February 28, 2022 and February 28, 2021, $125 million and $225 million of the outstanding principal balance under the Credit Agreement, respectively, was hedged with interest rate swaps to fix the interest rate we pay. Our interest rate swaps are designated as cash flow hedges and are recorded on the balance sheet at fair value with changes in fair value recorded in OCI until the hedge transaction is settled, at which point amounts are reclassified from AOCI to our consolidated statements of income. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness. Any ineffectiveness, which is not material for any year presented, is immediately recognized in our consolidated statements of income. The following tables summarize the fair values of our derivative instruments at the end of fiscal 2022 and 2021: (in thousands) February 28, 2022 Derivatives designated as hedging instruments Hedge Final Notional Amount Prepaid Other Accrued Other Forward contracts - sell Euro Cash flow 2/2023 €17,000 $ 1,224 $ — $ — $ — Forward contracts - sell Canadian Dollars Cash flow 2/2023 $40,000 475 — — — Forward contracts - sell Pounds Cash flow 2/2023 £24,000 1,219 — — — Forward contracts - sell Australian Dollars Cash flow 12/2022 A$5,700 — — 113 — Interest rate swaps Cash flow 1/2024 $125,000 — — 1,446 1,335 Subtotal 2,918 — 1,559 1,335 Derivatives not designated under hedge accounting Cross-currency debt swaps - Euro (1) 04/2022 €6,000 — — 244 — Cross-currency debt swaps - Pounds (1) 04/2022 £4,500 — — 468 — Subtotal — — 712 — Total fair value $ 2,918 $ — $ 2,271 $ 1,335 (in thousands) February 28, 2021 Derivatives designated as hedging instruments Hedge Final Notional Amount Prepaid Other Accrued Other Forward contracts - sell Euro Cash flow 2/2022 €39,000 $ — $ — $ 1,851 $ — Forward contracts - sell Canadian Dollars Cash flow 2/2023 $34,000 — 33 1,061 — Forward contracts - sell Pounds Cash flow 2/2023 £34,500 — — 2,026 21 Forward contracts - sell Australian Dollars Cash flow 11/2021 A$4,000 — — 18 — Interest rate swaps Cash flow 1/2024 $225,000 — — 4,407 5,534 Subtotal — 33 9,363 5,555 Derivatives not designated under hedge accounting Cross-currency debt swaps - Euro (1) 4/2022 €6,000 — — — 817 Cross-currency debt swaps - Pounds (1) 4/2022 £4,500 — — — 756 Subtotal — — — 1,573 Total fair value $ — $ 33 $ 9,363 $ 7,128 (1) These cross-currency debt swaps, for which we have not elected hedge accounting, 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 pre-tax effects of derivative instruments designated as cash flow hedges for fiscal 2022 and 2021 were as follows: Fiscal Year Ended Last Day of February, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified (in thousands) 2022 Location 2022 Foreign currency contracts - cash flow hedges $ 5,509 Sales revenue, net $ (2,240) Interest rate swaps - cash flow hedges 2,403 Interest expense (4,757) Total $ 7,912 $ (6,997) Fiscal Year Ended Last Day of February, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified (in thousands) 2021 Location 2021 Foreign currency contracts - cash flow hedges $ (7,932) SG&A $ (1,564) Interest rate swaps - cash flow hedges (3,673) Interest expense (4,449) Total $ (11,605) $ (6,013) The pre-tax effects of derivative instruments not designated under hedge accounting for fiscal 2022 and 2021 were as follows: Fiscal Years Ended Last Day of February, Gain (Loss) (in thousands) Location 2022 2021 Cross-currency debt swaps - principal SG&A $ 861 $ (1,432) Cross-currency debt swaps - interest Interest Expense (3) 72 Total $ 858 $ (1,360) We expect a net gain of $1.4 million associated with foreign currency contracts and interest rate swaps currently recorded in AOCI to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates and interest rates change and the underlying contracts settle. See Notes 1, 15 and 17 to these consolidated financial statements for more information. Counterparty Credit Risk Financial instruments, including foreign currency contracts, cross-currency debt swaps and interest rate 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. We believe that the risk of incurring credit losses is remote. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Feb. 28, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 17 - Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component and related tax effects for fiscal 2022 and 2021 were as follows: (in thousands) Interest Foreign Total Balance at February 29, 2020 $ (8,199) $ 1,194 $ (7,005) Other comprehensive loss before reclassification (3,673) (7,932) (11,605) Amounts reclassified out of AOCI 4,449 1,564 6,013 Tax effects (153) 1,094 941 Other comprehensive income (loss) 623 (5,274) (4,651) Balance at February 28, 2021 $ (7,576) $ (4,080) $ (11,656) Other comprehensive income before reclassification 2,403 5,509 7,912 Amounts reclassified out of AOCI 4,757 2,240 6,997 Tax effects (1,710) (1,341) (3,051) Other comprehensive income 5,450 6,408 11,858 Balance at February 28, 2022 $ (2,126) $ 2,328 $ 202 See Notes 1, 15 and 16 to these consolidated financial statements for additional information regarding our cash flow hedges. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Note 18 - Segment and Geographic Information Segment Information We currently operate in three segments consisting of Home & Outdoor, Health & Wellness and Beauty. In the fourth quarter of fiscal 2022, we changed the names of two of our segments to align with the growth in certain product offerings and brands within our portfolio. Our previously named “Housewares” segment was changed to “Home & Outdoor,” and our previously named “Health & Home” segment was changed to “Health & Wellness.” There were no changes to the products or brands included within our reportable segments as part of these name changes. The Osprey brand and products were added to the Home & Outdoor segment upon the completion of the acquisition of Osprey. The following tables summarize segment information for the periods presented: Fiscal Year Ended February 28, 2022 (in thousands) Home & Outdoor (1) Health & Wellness Beauty (2) Total Sales revenue, net $ 865,844 $ 777,080 $ 580,431 $ 2,223,355 Restructuring charges 369 — 11 380 Operating income 134,925 39,217 98,408 272,550 Capital and intangible asset expenditures 67,732 7,688 2,619 78,039 Depreciation and amortization 12,112 10,691 13,026 35,829 Fiscal Year Ended February 28, 2021 (in thousands) Home & Outdoor Health & Wellness Beauty (2) Total Sales revenue, net $ 727,354 $ 890,191 $ 481,254 $ 2,098,799 Asset impairment charges — — 8,452 8,452 Restructuring charges 249 (6) 107 350 Operating income 122,487 94,103 64,898 281,488 Capital and intangible asset expenditures 10,369 12,854 75,445 98,668 Depreciation and amortization 9,333 15,453 12,932 37,718 Fiscal Year Ended February 29, 2020 (in thousands) Home & Outdoor Health & Wellness Beauty (2) Total Sales revenue, net $ 640,965 $ 685,397 $ 381,070 $ 1,707,432 Asset impairment charges — — 41,000 41,000 Restructuring charges 1,351 93 1,869 3,313 Operating income (loss) 123,135 68,166 (13,050) 178,251 Capital and intangible asset expenditures 10,602 5,853 1,304 17,759 Depreciation and amortization 7,298 16,113 13,998 37,409 (1) Fiscal 2022 includes approximately nine weeks of operating results from Osprey, acquired on December 29, 2021. For additional information see Note 7 to the accompanying consolidated financial statements. (2) Fiscal 2020 includes approximately five weeks of operating results from Drybar Products, acquired on January 23, 2020, and fiscal 2022 and 2021 include a full year of operating results. For additional information see Note 7 to the accompanying consolidated financial statements. We compute segment operating income (loss) 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. Our chief operating decision maker reviews balance sheet information at a consolidated level. Geographic Information The following table presents net sales revenue by geographic region, in U.S. Dollars: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 1,738,099 78.2 % $ 1,666,324 79.4 % $ 1,357,345 79.5 % Canada 101,617 4.6 % 92,150 4.4 % 71,417 4.2 % EMEA 214,583 9.6 % 183,398 8.7 % 138,858 8.1 % Asia Pacific 109,750 4.9 % 118,000 5.6 % 99,378 5.8 % Latin America 59,306 2.7 % 38,927 1.9 % 40,434 2.4 % Total sales revenue, net $ 2,223,355 100.0 % $ 2,098,799 100.0 % $ 1,707,432 100.0 % Worldwide sales to our largest customer, Amazon.com Inc., accounted for approximately 19%, 20% and 18% of our consolidated net sales revenue in fiscal 2022, 2021 and 2020, respectively. Sales to our second largest customer, Walmart, Inc., including worldwide affiliates, accounted for approximately 11%, 13% and 14% of our consolidated net sales revenue in fiscal 2022, 2021 and 2020, respectively. Sales to our third largest customer, Target Corporation, accounted for approximately 11%, 11% and 9% of our consolidated net sales revenue in fiscal 2022, 2021, and 2020, respectively. No other customers accounted for 10% or more of consolidated net sales revenue during these fiscal years. Sales to our top five customers accounted for approximately 49%, 52% and 50% of our consolidated net sales revenue in fiscal 2022, 2021 and 2020, respectively. Sales to these largest customers include sales across all of our business segments. Our domestic and international long-lived assets were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 211,484 $ 145,798 $ 147,806 International: Barbados 22,486 18,254 11,969 Other international 9,167 5,016 4,977 Subtotal 31,653 23,270 16,946 Total $ 243,137 $ 169,068 $ 164,752 |
Income Taxes
Income Taxes | 24 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19 - Income Taxes We reorganized the Company in Bermuda in 1994 and many of our foreign subsidiaries are not directly or indirectly owned by a U.S. parent. As such, a large portion of our foreign income is not subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate. The taxable income earned in each jurisdiction, whether U.S. or foreign, is determined by the subsidiary's operating results and transfer pricing and tax regulations in the related jurisdictions. On March 11, 2021, the American Rescue Plan Act (the “ARP”) was enacted and signed into law. The ARP is an economic stimulus package in response to the COVID-19 outbreak, which contains tax provisions that did not have a material impact to our consolidated financial statements. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act is an emergency economic stimulus package in response to the COVID-19 outbreak that contains numerous tax provisions. Among other things, the CARES Act included technical corrections to the effective date language in the Tax Cuts and Jobs Act, enacted into law on December 22, 2017 (the “Tax Act”), related to net operating loss carrybacks. Upon the enactment of the Tax Act in fiscal 2018, there was a net operating loss on our balance sheet, which was measured using the U.S. statutory tax rate in effect prior to enactment. As a result of the Tax Act, we were required to record a one-time charge of $17.9 million in fiscal 2018, which included a charge of $9.4 million to remeasure the net operating loss at the reduced rate at which it was expected to reverse in the future. The CARES Act effectively reversed the impact of the Tax Act on our net operating loss, resulting in a corresponding tax benefit of $9.4 million recorded in the first quarter of fiscal 2021. The Tax Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The Company continues to elect to account for the tax on GILTI as a period cost and therefore has not recorded deferred taxes related to GILTI on its foreign subsidiaries. In connection with the Tax Act, we repatriated $48.3 million of cash held in our U.S. owned foreign subsidiaries without such funds being subject to further U.S. federal income tax. As of February 28, 2022, we had approximately $38.4 million of undistributed earnings in U.S. owned foreign subsidiaries. While U.S. federal tax expense has been recognized as a result of the Tax Act, no deferred tax liabilities with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes or state taxes have been recognized. No deferred taxes have been provided on the undistributed earnings of our foreign owned subsidiaries since these earnings will continue to be permanently reinvested. Due to the number of legal entities and jurisdictions involved, our legal entity structure, and the tax laws in the relevant jurisdictions, we believe it is not practicable to estimate the amount of additional taxes which may be payable upon distribution of these undistributed earnings. Our components of income before income tax expense are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 63,653 $ 48,693 $ 40,146 Non-U.S. 196,313 220,737 125,794 Total $ 259,966 $ 269,430 $ 165,940 Our components of income tax expense (benefit) are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Current: U.S. federal $ 20,907 $ 4,340 $ 12,551 State 6,283 5,892 4,181 Non-U.S. 17,883 9,652 2,571 45,073 19,884 19,303 Deferred: U.S. federal (5,269) (3,828) (4,376) State (1,766) (1,795) (413) Non-U.S. (1,836) 1,223 (907) (8,871) (4,400) (5,696) Total $ 36,202 $ 15,484 $ 13,607 Our total income tax expense differs from the amounts computed by applying the U.S. statutory tax rate to income before income taxes. An income tax rate reconciliation of these differences are as follows: Fiscal Years Ended Last Day of February, 2022 2021 2020 Effective income tax rate at the U.S. statutory rate 21.0 % 21.0 % 21.0 % Impact of U.S. state income taxes 1.4 % 0.6 % 1.6 % Effect of statutory tax rate in Macau 0.1 % (0.7) % (13.6) % Effect of statutory tax rate in Barbados (11.0) % (15.4) % (5.5) % Effect of statutory tax rate in Switzerland (1.2) % (1.5) % (0.4) % Effect of income from other non-U.S. operations subject to varying rates 1.2 % 1.1 % 2.3 % Effect of foreign exchange fluctuations 0.5 % (0.1) % 0.7 % Effect of asset impairment charges — % 0.3 % 2.4 % Effect of U.S. tax reform — % (3.5) % — % Effect of uncertain tax positions 0.6 % 3.2 % (1.7) % Effect of non-deductible executive compensation 1.1 % 1.0 % 1.4 % Effect of base erosion and anti-abuse tax — % (0.6) % — % Other items 0.2 % 0.3 % — % Effective income tax rate 13.9 % 5.7 % 8.2 % 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 previously had 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 was abolished on January 1, 2021. Existing approved offshore institutions such as ours continued to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, our Macau subsidiary transitioned to onshore status and became subject to a statutory corporate income tax of approximately 12%. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau. Each year there are significant transactions or events that are incidental to our core businesses and that by a combination of their nature and jurisdiction, can have a disproportionate impact on our reported effective tax rates. Without these transactions or events, the trend in our effective tax rates would follow a more normalized pattern. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Deferred tax assets, gross: Operating loss carryforwards $ 13,195 $ 14,785 Accounts receivable 11,144 8,905 Inventories 19,619 12,432 Operating lease liabilities 11,494 10,388 Accrued expenses and other 10,364 10,731 Total gross deferred tax assets 65,816 57,241 Valuation allowance (11,673) (15,021) Deferred tax liabilities: Operating lease assets (8,635) (7,500) Depreciation (10,589) (11,828) Amortization (52,873) (6,879) Total deferred tax (liabilities) assets, net $ (17,954) $ 16,013 In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the scheduled reversal of deferred tax liabilities, expected future taxable income and tax planning strategies in assessing the ultimate realization of deferred tax assets. If recovery is not likely, we must increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not be recoverable. In fiscal 2022, the $3.3 million net decrease in our valuation allowance was principally due to changes in the operating loss carryforwards available to be used in the future. The composition of our operating loss carryforwards at the end of fiscal 2022 is as follows: February 28, 2022 (in thousands) Tax Year Deferred Operating U.S. federal operating loss carryforwards Indefinite $ 2,936 $ 13,979 U.S. state operating loss carryforwards 2032-2042 732 18,504 Non-U.S. operating loss carryforwards with definite carryover periods 2022-2039 4,483 18,072 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 5,044 15,921 Subtotal 13,195 $ 66,476 Less portion of valuation allowance established for operating loss carryforwards (9,522) Total $ 3,673 Any future amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income during any carryforward periods are reduced. At February 28, 2022, we had net operating loss carryforwards for U.S. federal income tax purposes as a result of the Osprey acquisition on December 29, 2021. The acquisition was a change in ownership for purposes of Section 382 of the Internal Revenue Code. Therefore, the amount of acquired net operating loss carryforwards that are available to offset future taxable income are subject to an annual limitation. We expect that all of the Osprey acquired net operating loss carryforwards that will be available to us will be utilized during the applicable carryforward period. During fiscal 2022 and 2021, changes in the total amount of unrecognized tax benefits (excluding interest and penalties) were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Total unrecognized tax benefits, beginning balance $ 5,436 $ 113 Tax positions taken during the current period 949 1,542 Changes in tax positions taken during a prior period 1,409 4,280 Impact of foreign currency re-measurement 50 — Settlements (2,221) (499) Total unrecognized tax benefits, ending balance 5,623 5,436 Less current unrecognized tax benefits — — Non-current unrecognized tax benefits $ 5,623 $ 5,436 If we are able to sustain our positions with the relevant taxing authorities, approximately $5.6 million (excluding interest and penalties) of uncertain tax position liabilities as of February 28, 2022 would favorably impact our effective tax rate in future periods. We do not expect any significant changes to our existing unrecognized tax benefits during the next twelve months resulting from any issues currently pending with tax authorities. We classify interest and penalties on uncertain tax positions as income tax expense. At the end of fiscal 2022 and 2021, the liability for tax-related interest and penalties associated with unrecognized tax benefits was $3.2 million and $2.9 million, respectively. Additionally, during fiscal 2022 and 2021, we recognized tax expense from tax-related interest and penalties of $0.3 million and $2.9 million, respectively, in the consolidated statements of income. We file income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. As of February 28, 2022, tax years under examination or still subject to examination by material tax jurisdictions are as follows: Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2021 — 2022 U.S. 2017-2018 2017 — 2022 Switzerland - None - 2018 — 2022 Hong Kong 2014-2016 2014 — 2022 China 2009-2018 2009 — 2022 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 20 - 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 9). 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 outstanding for the periods shown: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Weighted average shares outstanding, basic 24,142 24,985 25,118 Incremental shares from share-based compensation arrangements 268 211 204 Weighted average shares outstanding, diluted 24,410 25,196 25,322 Anti-dilutive securities 17 112 197 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 28, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21 - Subsequent Events Curlsmith Acquisition On April 22, 2022, we completed the acquisition of Recipe Products Ltd., a producer of innovative prestige hair care products for all types of curly and wavy hair under the Curlsmith brand (“Curlsmith”). The total purchase consideration, net of cash acquired, was $150.0 million in cash, subject to certain customary closing adjustments. The acquisition was funded with cash on hand and a $150.0 million borrowing under our existing revolving credit facility. After giving effect to the borrowing on April 20, 2022, the remaining amount available for borrowings under our Credit Agreement was $192.8 million. The initial accounting for this business combination is in process. Weather-Related Incident |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 28, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | HELEN OF TROY LIMITED AND SUBSIDIARIES Schedule II - Valuation and Qualifying Accounts (in thousands) Beginning Balance Additions (1) Deductions (2) Ending Balance Allowance for credit losses: Year Ended February 28, 2022 $ 998 $ 312 $ 467 $ 843 Year Ended February 28, 2021 $ 1,461 $ 2,093 $ 2,556 $ 998 Year Ended February 29, 2020 $ 2,032 $ 529 $ 1,100 $ 1,461 Deferred tax asset valuation allowance: Year Ended February 28, 2022 $ 15,021 $ — $ 3,348 $ 11,673 Year Ended February 28, 2021 $ 14,073 $ 948 $ — $ 15,021 Year Ended February 29, 2020 $ 17,086 $ — $ 3,013 $ 14,073 (1) Additions to the allowance for credit losses represent periodic net charges to the provision for doubtful receivables, inclusive of any recoveries of receivables previously written off. In fiscal 2021, the addition to the deferred tax asset valuation allowance was principally due to changes in estimates of the operating loss carryforwards to be used in the future. (2) Deductions to the allowance for credit losses represent uncollectible balances written off. Deductions to the deferred tax asset valuation allowance in fiscal 2020 and fiscal 2022 were primarily due to changes in estimates of the operating loss carryforwards to be used in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Related Information (Policies) | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Corporate Overview and Principles of Consolidation | Corporate Overview When used in these notes within this Annual Report on Form 10-K (the “Annual Report”), 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, which are all wholly-owned. 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 accounting principles generally accepted in the United States of America (the “U.S.”). 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 leading consumer products company offering creative products and solutions for our customers through a diversified portfolio of brands. As of February 28, 2022, we operated three segments: Home & Outdoor, Health & Wellness, and Beauty. In the fourth quarter of fiscal 2022, we changed the names of two of our segments to align with the growth in certain product offerings and brands within our portfolio. Our previously named “Housewares” segment was changed to “Home & Outdoor,” and our previously named “Health & Home” segment was changed to “Health & Wellness.” There were no changes to the products or brands included within our reportable segments as part of these name changes. The Osprey brand and products were added to the Home & Outdoor segment upon the completion of the acquisition of Osprey Packs, Inc. (“Osprey”), discussed further below. Our Home & Outdoor segment provides a broad range of innovative consumer products for home activities such as food preparation, cooking, cleaning, and organization; as well as products for outdoor and on the go activities such as hydration, food storage, backpacks, and travel gear. The Health & Wellness segment provides health and wellness products including healthcare devices, thermometers, water and air filtration systems, humidifiers, and fans. Our Beauty segment provides mass and prestige market beauty appliances including hair styling appliances, grooming tools, decorative hair accessories, and prestige market liquid-based hair and personal care products. Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Our fiscal reporting period ends on the last day in February. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30th. We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico, Vietnam and the U.S. During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our Beauty segment's mass channel personal care business, which included liquid, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium (“Personal Care”). On June 7, 2021, we completed the sale of our North America Personal Care business to HRB Brands LLC, for $44.7 million in cash and recognized a gain on the sale in SG&A totaling $0.5 million. Subsequent to our fiscal 2022 year end, on March 25, 2022, we completed the sale of the Latin America and Caribbean Personal Care businesses to HRB Brands LLC, for $1.8 million in cash. The net assets sold included intangible assets, inventory, certain net trade receivables, fixed assets and certain accrued sales discounts and allowances relating to our Personal Care business. Accordingly, we continued to classify the identified net assets of the Latin America and Caribbean Personal Care businesses as held for sale in our fiscal 2022 consolidated balance sheet. See Note 4 for additional information. On December 29, 2021, we completed the acquisition of Osprey, a longtime U.S. leader in technical and everyday packs, for $410.9 million in cash, net of a preliminary closing net working capital adjustment and cash acquired. Osprey is highly respected in the outdoor industry with a product lineup that includes a wide range of backpacks and daypacks for hiking, mountaineering, skiing, climbing, mountain biking, trail running, commuting, and school, as well as rugged adventure travel packs, wheeled luggage, and travel accessories. On January 23, 2020, we completed the acquisition of Drybar Products LLC (“Drybar Products”), for approximately $255.9 million in cash. Drybar is an innovative, trendsetting prestige hair care and styling brand in the multibillion-dollar beauty industry. See Note 7 for additional information. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) to be a pandemic. COVID-19 has spread throughout the U.S. and the world. COVID-19 is impacting consumer shopping patterns and demand for goods in certain product categories. Additionally, COVID-19 has disrupted certain parts of our supply chain, which in certain cases, limited our ability to fulfill demand and may limit our ability to fulfill demand in the future. Surges in demand and shifts in shopping patterns related to COVID-19, as well as other factors, have strained the global freight network, which is resulting in higher costs, less capacity, and longer lead times for our products. During fiscal 2021, the COVID-19 related impact on our business included the effect of temporary closures of certain customer stores or limited hours of operation and materially lower store traffic which shifted consumer shopping preferences from brick and mortar to more online purchases. In addition, we saw high demand for healthcare products as well as cooking, storage and related product lines as consumer spent more time at home. We also experienced disruptions to our supply chain due to shifting consumer purchasing patterns, limited capacity of shipping containers, and COVID-19 related work stoppages in the global supply chain. During fiscal 2022, we were adversely impacted by COVID-19 related global supply chain disruptions and cost increases. We also saw recovery of our product lines and brands that were unfavorably impacted in fiscal 2021 as a result of the pandemic. Additionally, as customers have been able to return to more brick and mortar shopping, our mix of online sales has been negatively impacted compared to fiscal 2021. The extent of COVID-19’s impact on the demand for certain of our product lines in the future will depend on future developments, including the continued surges in the spread of COVID-19, our continued ability to source and distribute our products, the impact of COVID-19 on capital and financial markets, and the related impact on consumer confidence and spending, all of which are uncertain and difficult to predict considering the continuously evolving landscape. Accordingly, our liquidity and financial results could be impacted in ways that we are not able to predict today. Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with GAAP and include all of our subsidiaries. Our consolidated financial statements are prepared in U.S. Dollars. All intercompany balances and transactions are eliminated in consolidation. The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates. |
Reclassifications | Reclassifications We have reclassified, combined or separately disclosed certain amounts in the prior years’ accompanying footnotes to conform to the current year’s presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. We consider money market accounts to be cash equivalents. |
Receivables | Receivables Our receivables are principally comprised of trade receivables from customers, primarily in the retail industry, offset by an allowance for credit losses. Our allowance for credit losses reflects our best estimate of expected credit losses over the receivables' term, determined principally based on historical experience, specific allowances for known at-risk accounts, and consideration of current economic conditions and management’s expectations of future economic conditions. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for credit losses and any recoveries of previous write-offs are netted against bad debt expense in the period recovered. |
Foreign Currency Transactions and Related Derivative Financial Instruments | Foreign Currency Transactions and Related Derivative Financial Instruments The U.S. Dollar is the functional currency for the Company and all of its subsidiaries and is also the reporting currency for the Company; therefore, we do not have a translation adjustment recorded through accumulated other comprehensive income. All our non-U.S. subsidiaries' transactions denominated in other currencies have been remeasured into U.S. Dollars using exchange rates in effect on the date each transaction occurred. In our consolidated statements of income, foreign currency exchange rate 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 currency exchange rate gains and losses are recognized in SG&A. In order to manage our exposure to changes in foreign currency exchange rates, we use forward contracts and cross-currency debt swaps to exchange foreign currencies for U.S. Dollars at specified rates. Derivatives for which we have elected and qualify for hedge accounting include our forward contracts (“foreign currency contracts”). Our foreign currency contracts are designated as cash flow hedges and are recorded on the balance sheet at fair value with changes in fair value recorded in Other Comprehensive (Loss) Income (“OCI”) until the hedged forecasted transaction affects earnings, at which point amounts are reclassified from Accumulated Other Comprehensive (Loss) Income (“AOCI”) to our consolidated statements of income. Derivatives for which we have not elected or do not qualify for hedge accounting include our cross-currency debt swaps and any changes in the fair value of the derivatives are recorded in our consolidated statements of income. We evaluate our derivatives designated as cash flow hedges each quarter to assess hedge effectiveness. Any material ineffectiveness is recorded in our consolidated statements of income. We do not enter into any derivatives or similar instruments for trading or other speculative purposes. |
Inventory and Cost of Goods Sold | Inventory and Cost of Goods Sold Our inventory consists almost entirely of finished goods. Inventories are stated at the lower of average cost or net realizable value. We write down a portion of our inventory to net realizable value based on the historical sales trends of products and estimates about future demand and market conditions, among other factors. Our average costs include the amounts we pay manufacturers for product, tariffs and duties associated with transporting product across national borders, freight costs associated with transporting the product from our manufacturers to our distribution centers, and general and administrative expenses directly attributable to acquiring inventory, as applicable. General and administrative expenses directly attributable to acquiring inventory include all the expenses of operating our sourcing activities and expenses incurred for packaging. We capitalized $26.0 million, $33.9 million, and $44.6 million of such general and administrative expenses into inventory during fiscal 2022, 2021 and 2020, respectively. We estimate that $17.6 million and $15.1 million of general and administrative expenses directly attributable to the procurement of inventory were included in our inventory balances on hand at February 28, 2022 and February 28, 2021, respectively. The “Cost of goods sold” line item in the consolidated statements of income is comprised of the book value of inventory sold to customers during the reporting period. When circumstances dictate that we use net realizable value as the basis for recording inventory, we base our estimates on expected future selling prices less expected disposal costs. |
Property and Equipment | Property and Equipment These assets are recorded at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets. Expenditures for repair and maintenance of property and equipment are expensed as incurred. For tax purposes, accelerated depreciation methods are used where allowed by tax laws. |
License Agreements, Trademarks, Patents, and Other Intangible Assets | License Agreements, Trademarks, Patents, and Other Intangible Assets A significant portion of our sales are made subject to trademark license agreements with various licensors. Our license agreements are reported on our consolidated balance sheets at cost, less accumulated amortization. The cost of our license agreements represent amounts paid to licensors to acquire the license or to alter the terms of the license in a manner that we believe to be in our best interest. Certain licenses have extension terms that may require additional payments to the licensor as part of the terms of renewal. We capitalize costs incurred to renew or extend the term of a license agreement and amortize such costs on a straight-line basis over the remaining term or economic life of the agreement, whichever is shorter. Royalty payments are not included in the cost of license agreements. Royalty expense under our license agreements is recognized as incurred and is included in our consolidated statements of income in SG&A. Net sales revenue subject to trademark license agreements requiring royalty payments comprised approximately 30%, 41%, and 43% of consolidated net sales revenue for fiscal 2022, 2021 and 2020, respectively. During fiscal 2022, two license agreements accounted for net sales revenue subject to royalty payments of approximately 13% and 10% of consolidated net sales revenue. No other license agreements had associated net sales revenue subject to royalty payments that accounted for 10% or more of consolidated net sales revenue. We also sell products under trademarks and brand assets that we own. Trademarks and brand assets that we acquire through acquisition from other entities are generally recorded on our consolidated balance sheets based upon the appraised fair value of the acquired asset, net of any accumulated amortization and impairment charges. Costs associated with developing trademarks internally are recorded as expenses in the period incurred. In certain instances where trademarks or brand assets have readily determinable useful lives, we amortize their costs on a straight-line basis over such lives. In some instances, we have determined that such acquired assets have an indefinite useful life. In these cases, no amortization is recorded. Patents acquired through acquisition, if material, are recorded on our consolidated balance sheets based upon the appraised value of the acquired patents and amortized over the remaining life of the patent. Additionally, we incur certain costs in connection with the design and development of products to be covered by patents, which are capitalized as incurred and amortized on a straight-line basis over the life of the patent in the jurisdiction filed, typically 12 to 14 years. Other intangible assets include customer lists, distribution rights, patent rights, and non-compete agreements that we acquired. These are recorded on our consolidated balance sheets based upon the fair value of the acquired asset and amortized on a straight-line basis over the remaining life of the asset as determined either by a third-party appraisal or the term of any controlling agreements. |
Goodwill, Intangible and Other Long-Lived Assets and Related Impairment Testing | Goodwill, Intangible and Other Long-Lived Assets and Related Impairment Testing Goodwill is recorded as the difference, if any, between the aggregate consideration paid and the fair value of the net tangible and intangible assets received in the acquisition of a business. The estimates of the fair value of the assets acquired and liabilities assumed are based upon assumptions believed to be reasonable using established valuation techniques that consider a number of factors, and when appropriate, valuations performed by independent third-party appraisers. We review goodwill and indefinite-lived intangible assets for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We consider whether circumstances or conditions exist which suggest that the carrying value of our goodwill and indefinite-lived intangible assets might be impaired. If such circumstances or conditions exist, we perform a qualitative assessment to determine whether it is more likely than not that the assets are impaired. We evaluate goodwill at the reporting unit level (operating segment or one level below an operating segment). If the results of the qualitative assessment indicate that it is more likely than not that the assets are impaired, further steps are required in order to determine whether the carrying value of each reporting unit and indefinite-lived intangible assets exceeds its fair market value. An impairment charge is recognized to the extent the goodwill or indefinite-lived intangible asset recorded exceeds the reporting unit’s or asset's fair value. We perform our annual impairment testing for goodwill and indefinite-lived intangible assets as of the beginning of the fourth quarter of our fiscal year (see Note 8). We review intangible assets with definite lives and long-lived assets held and used if a triggering event occurs during the reporting period. If such circumstances or conditions exist, further steps are required in order to determine whether the carrying value of each of the individual assets exceeds its fair market value. If our analysis indicates that an individual asset’s carrying value does exceed its fair market value, the next step is to record a loss equal to the excess of the individual asset’s carrying value over its fair value. We evaluate long-lived assets held for sale quarterly to determine if estimated fair value less cost to sell has changed during the reporting period. See Note 4 for additional information on our assets held for sale impairment analysis. |
Economic Useful Lives and Amortization of Intangible Assets | Economic Useful Lives and Amortization of Intangible AssetsIntangible assets consist primarily of license agreements, trademarks, brand assets, customer lists, distribution rights, patents, patent rights, and non-compete agreements. We amortize intangible assets over their economic useful lives, unless those assets' economic useful lives are indefinite. If an intangible asset’s economic useful life is deemed indefinite, that asset is not amortized. When we acquire an intangible asset, we consider factors such as the asset's history, our plans for that asset and the market for products associated with the asset. We consider these same factors when reviewing the economic useful lives of our previously acquired intangible assets as well. We review the economic useful lives of our intangible assets at least annually. The determination of the economic useful life of an intangible asset requires a significant amount of judgment and entails significant subjectivity and uncertainty. We complete our analysis of the remaining useful economic lives of our intangible assets during the fourth quarter of each fiscal year or when a triggering event occurs. For certain intangible assets subject to amortization, we use the straight-line method over appropriate periods ranging from 5 to 40 years for licenses, 15 to 30 years for trademarks and 4.5 to 24 years for other definite-lived intangible assets |
Financial Instruments | Financial Instruments The carrying amounts of cash, accounts payable, accrued expenses and other current liabilities and income taxes payable approximate fair value because of the short maturity of these items. The carrying amounts of receivables approximate fair value due to the effect of the related allowance for credit losses. The carrying amount of our floating rate long-term debt approximates its fair value. |
Income Taxes and Uncertain Tax Positions | Income Taxes and Uncertain Tax Positions The provision for income tax expense is calculated on reported income before income taxes based on current tax law and includes, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Tax laws may require items to be included in the determination of taxable income at different times from when the items are reflected in the financial statements. Deferred tax balances reflect the effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases, as well as from net operating losses and tax credit carryforwards, and are stated at enacted tax rates in effect for the year taxes are expected to be paid or recovered. Deferred tax assets represent tax benefits for tax deductions or credits available in future years and require certain estimates and assumptions to determine whether it is more likely than not that all or a portion of the benefit will not be realized. The recoverability of these future tax deductions and credits is determined by assessing the adequacy of future expected taxable income from all sources, including the future reversal of existing taxable temporary differences, taxable income in carryback years, estimated future taxable income and available tax planning strategies. Should a change in facts or circumstances lead to a change in judgment about the ultimate recoverability of a deferred tax asset, we record or adjust the related valuation allowance in the period that the change in facts and circumstances occurs, along with a corresponding increase or decrease in income tax expense. We record tax benefits for uncertain tax positions based upon management’s evaluation of the information available at the reporting date. To be recognized in the financial statements, the tax position must meet the more-likely-than-not threshold that the position will be sustained upon examination by the tax authority based on its technical merits assuming the tax authority has full knowledge of all relevant information. For positions meeting this recognition threshold, the benefit is measured as the largest amount that has greater than a 50 percent likelihood of being realized upon ultimate settlement. We reevaluate these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, historical experience with similar tax matters, guidance from our tax advisors, and new audit activity. For tax positions that do not meet the threshold requirement, we record liabilities for unrecognized tax benefits as a tax expense or benefit in the period recognized or reversed and disclose as a separate liability in our financial statements, including related accrued interest and penalties. |
Revenue Recognition | Revenue Recognition Our revenue is primarily generated from the sale of non-customized consumer products to customers. These products are promised goods that are distinct performance obligations. Revenue is recognized when control of, and title to, the product sold transfers to the customer in accordance with applicable shipping terms, which can occur on the date of shipment or the date of receipt by the customer, depending on the customer and the agreed upon shipping terms. Payment terms from the sale of our products are typically due to us in thirty to ninety days after the date of sale. We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods. We allow for sales returns for defects in material and workmanship for periods ranging from two Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs, which are also accounted for as variable consideration. In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration. Most of our variable consideration is classified as a reduction to net sales. In instances when we purchase a distinct good or service from our customer and fair value can be reasonably estimated, these amounts are expensed in our consolidated statements of income in SG&A. The amount of consideration granted to customers recorded in SG&A was $39.0 million, $27.1 million, and $20.9 million for fiscal 2022, 2021 and 2020, respectively. Sales taxes and other similar taxes are excluded from revenue. We have elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance. We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time. |
Advertising | AdvertisingAdvertising costs include cooperative retail advertising with our customers, traditional and digital media advertising and production expenses, and expenses associated with other promotional product messaging and consumer awareness programs. Advertising costs are expensed in the period in which they are incurred and included in our consolidated statements of income in SG&A. |
Research and Development Expense | Research and Development ExpenseResearch and development expenses consist primarily of salary and employee benefit expenses and contracted development efforts and expenses associated with development of products. Expenditures for research activities relating to product design, engineering, development and improvement are generally charged to expense as incurred and are included in our consolidated statements of income in SG&A. |
Share-Based Compensation Plans | Share-Based Compensation Plans We grant share-based compensation awards to non-employee directors and certain associates under our equity plans. We measure the cost of services received in exchange for equity awards, which include grants of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock awards (“PSAs”), and performance stock units (“PSUs”), based on the fair value of the awards on the grant date. These awards may be subject to attainment of certain service conditions, performance conditions and/or market conditions. Share-based compensation expense is recognized over the requisite service period during which the employee is required to provide service in exchange for the award, unless the awards are subject to performance conditions (“Performance Condition Awards”), in which case we recognize compensation expense over the requisite service period to the extent performance conditions are considered probable. Estimating the number of shares of Performance Condition Awards that are probable of vesting requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment to share-based compensation expense in the period estimates are revised. Share-based compensation expense is recorded ratably for PSAs and PSUs subject to attainment of market conditions (“Market Condition Awards”) during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. All share-based compensation expense is recorded net of forfeitures in our consolidated statements of income. |
New Accounting Pronouncements | We did not adopt any new accounting pronouncements during fiscal 2022. Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers . Prior to the issuance of this guidance, contract assets and contract liabilities were recognized by the acquirer at fair value on the acquisition date. The amendments in ASU 2021-08 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted and should be applied prospectively to acquisitions occurring on or after the effective date. This ASU will be effective for us in the first quarter of fiscal 2024. We believe that the adoption of this ASU will not have a material impact on our consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy to other accounting guidance due to the lack of specific authoritative guidance in GAAP (for example, a grant model within International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance , or Subtopic 958-605, Not-For-Profit Entities - Revenue Recognition ). This guidance excludes transactions in the scope of specific GAAP, such as tax incentives accounted for under ASC 740, Income Taxes . This new ASU is effective for annual periods beginning after December 15, 2021, with early adoption and retrospective or prospective application permitted. This ASU will be effective for us in our Form 10-K for fiscal 2023. We believe that the adoption of this ASU will not have a material impact on our consolidated financial statement disclosures. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Additional lease information | A summary of supplemental lease information is as follows: February 28, 2022 February 28, 2021 Weighted average remaining lease term (years) 9.5 9.6 Weighted average discount rate 5.52% 6.03% Cash paid for amounts included in the measurement of lease liabilities $ 9,715 $ 6,951 Operating lease assets obtained in exchange for operating lease liabilities $ 12,213 $ 4,163 |
Schedule of operating lease maturities | A summary of our estimated lease payments, imputed interest and liabilities are as follows: (in thousands) February 28, 2022 Fiscal 2023 $ 8,320 Fiscal 2024 6,621 Fiscal 2025 6,665 Fiscal 2026 5,361 Fiscal 2027 5,966 Thereafter 32,178 Total future lease payments 65,111 Less: imputed interest (15,611) Present value of lease liability $ 49,500 |
Schedule of lease liabilities | (in thousands) February 28, 2022 February 28, 2021 Lease liabilities, current (1) $ 5,755 $ 5,972 Lease liabilities, non-current 43,745 38,352 Total lease liability $ 49,500 $ 44,324 (1) Included as part of “ Accrued expenses and other current liabilities |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Schedule of carrying amounts of major classes of assets | The carrying amounts of the major classes of assets and liabilities for our Personal Care business that were classified as held for sale are as follows: (in thousands) February 28, 2022 February 28, 2021 Receivables, net of allowance of $23 and $30 $ 1,265 $ 7,979 Inventory 611 12,667 Property and equipment, net of accumulated depreciation of $152 and $403 66 100 Goodwill (1) — 1,397 Other intangible assets (1) — 17,724 Assets held for sale $ 1,942 $ 39,867 Accrued sales discounts and allowances $ 235 $ — Liabilities held for sale $ 235 $ — (1) Goodwill and other intangible assets as of February 28, 2021 are presented net of accumulated impairment and accumulated amortization of $80,445 and $4,474, respectively. The following table summarizes income (loss) before income tax for our Personal Care business: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Income (loss) before income tax $ 5,546 $ 8,705 $ (29,760) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | A summary of property and equipment is as follows: Estimated Useful Lives (Years) Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Land — $ 20,632 $ 12,644 Building and improvements 3 — 40 126,093 116,652 Computer, furniture and other equipment 3 — 15 102,566 97,810 Tools, molds and other production equipment 3 — 7 55,925 42,729 Construction in progress — 61,168 7,079 Property and equipment, gross 366,384 276,914 Less: accumulated depreciation (161,006) (140,379) Property and equipment, net $ 205,378 $ 136,535 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses and other liabilities | A summary of accrued expenses and other current liabilities is as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Accrued compensation, benefits and payroll taxes $ 55,405 $ 66,385 Accrued sales discounts and allowances 69,120 59,426 Accrued sales returns 33,384 29,434 Accrued advertising 55,775 50,923 Other 57,991 65,011 Total accrued expenses and other current liabilities $ 271,675 $ 271,179 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Business Combinations [Abstract] | |
Schedule of net assets recorded upon acquisition | The following table presents the preliminary net assets recorded upon acquisition of Osprey at December 29, 2021: (in thousands) Assets: Receivables $ 11,758 Inventory 30,056 Prepaid expenses and other current assets 3,699 Income taxes receivable 4,197 Property and equipment 11,386 Goodwill 208,972 Trade names - indefinite 170,000 Customer relationships - definite 22,000 Operating lease assets 2,155 Total assets 464,223 Liabilities: Accounts payable 4,487 Accrued expenses and other current liabilities 7,345 Lease liabilities, non-current 1,719 Deferred tax liabilities, net 39,792 Total liabilities 53,343 Net assets recorded $ 410,880 The following table presents the net assets recorded upon acquisition of Drybar Products at January 23, 2020: (in thousands) Assets: Receivables $ 7,710 Inventory 16,603 Prepaid expenses and other current assets 190 Property and equipment 1,472 Goodwill 172,933 Trade names - definite 30,000 Other intangible assets - definite 33,000 Subtotal - assets 261,908 Liabilities: Accounts payable 1,948 Accrued expenses 4,099 Subtotal - liabilities 6,047 Net assets recorded $ 255,861 |
Schedule of supplemental pro forma impact on consolidated condensed statements of income | The impact of the acquisition of Osprey on our consolidated statements of income for fiscal 2022 is as follows: December 29, 2021 (acquisition date) through February 28, 2022 (in thousands, except earnings per share data) Fiscal Year Ended February 28, 2022 Sales revenue, net $ 24,373 Net income 696 EPS: Basic $ 0.03 Diluted $ 0.03 The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Osprey had occurred on March 1, 2020. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred if the acquisition had been completed on March 1, 2020, and this information is not intended to be indicative of future results: Fiscal Years Ended the Last Day of February, (in thousands, except earnings per share data) 2022 2021 Sales revenue, net $ 2,361,906 $ 2,224,196 Net income 202,507 259,311 EPS: Basic $ 8.39 $ 10.38 Diluted $ 8.30 $ 10.29 The impact of the acquisition of Drybar Products on our consolidated statements of income for fiscal 2020 is as follows: January 23, 2020 (acquisition date) through February 29, 2020 (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 6,039 Net income 1,483 EPS: Basic $ 0.06 Diluted $ 0.06 The following supplemental unaudited pro forma information presents our financial results as if the acquisition of Drybar Products had occurred on March 1, 2018. This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred as if the acquisition had been completed on March 1, 2018, and this information is not intended to be indicative of future results: (in thousands, except earnings per share data) Fiscal Year Ended February 29, 2020 Sales revenue, net $ 1,773,592 Net income 162,114 EPS: Basic $ 6.45 Diluted $ 6.40 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table summarizes the changes in our goodwill by segment for fiscal 2022: (in thousands) Home & Outdoor Health & Wellness Beauty Total Gross carrying amount as of February 28, 2021 $ 282,056 $ 284,913 $ 172,932 $ 739,901 Accumulated impairment as of February 28, 2021 — — — — Acquisitions (1) 208,972 — — 208,972 Gross carrying amount as of February 28, 2022 491,028 284,913 172,932 948,873 Accumulated impairment as of February 28, 2022 — — — — Net carrying amount as of February 28, 2022 $ 491,028 $ 284,913 $ 172,932 $ 948,873 (1) Reflects the goodwill recorded in connection with the acquisition of Osprey on December 29, 2021. For additional information see Note 7. |
Schedule of other intangible assets and related amortization | The following table summarizes the components of our other intangible assets as follows: February 28, 2022 (1) February 28, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived: Licenses $ 7,400 $ — $ 7,400 $ 7,400 $ — $ 7,400 Trademarks 358,200 — 358,200 188,200 — 188,200 Definite-lived: Licenses 74,250 (3,267) 70,983 87,946 (14,800) 73,146 Trademarks 30,150 (4,332) 25,818 30,150 (2,327) 27,823 Other Intangibles 218,155 (142,710) 75,445 194,808 (134,113) 60,695 Total $ 688,155 $ (150,309) $ 537,846 $ 508,504 $ (151,240) $ 357,264 (1) Balances as of February 28, 2022 include intangible assets recorded in connection with the acquisition of Osprey on December 29, 2021. For additional information see Note 7. |
Summary of amortization expense attributable to intangible assets | The following tables summarize amortization expense related to our other intangible assets as follows: Aggregate Amortization Expense (in thousands) Fiscal 2022 $ 12,764 Fiscal 2021 17,643 Fiscal 2020 21,271 |
Schedule of estimated amortization expense of intangible assets | Estimated Amortization Expense (in thousands) Fiscal 2023 $ 16,860 Fiscal 2024 16,738 Fiscal 2025 16,248 Fiscal 2026 14,072 Fiscal 2027 9,609 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of shares available for issue under the 2018 Plan | A summary of shares available for issue under the 2018 Plan follows: Shares originally authorized 2,000,000 Less share awards issued (12,911) Plus forfeitures 147,853 Less RSUs, RSAs, PSUs and PSAs issued and issuable upon vesting (612,312) Less maximum PSUs and PSAs issued and issuable upon vesting (1) (281,361) Shares available for issuance at February 28, 2022 1,241,269 (1) Reflects incremental PSUs and PSAs issuable upon vesting between achievement of plan target at 100% and maximum achievement of 200% of plan target, adjusted for actual forfeitures to date. |
Schedule of share-based compensation expense in SG&A | We recorded share-based compensation expense in SG&A as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Stock options $ — $ 19 $ 189 Directors stock compensation 644 685 604 Service Condition Awards 11,177 7,941 8,419 Performance Condition Awards 17,260 16,796 12,932 Market Condition Awards 4,234 — — Employee stock purchase plan 1,303 977 785 Share-based compensation expense 34,618 26,418 22,929 Less: income tax benefits (2,965) (1,926) (1,803) Share-based compensation expense, net of income tax benefits $ 31,653 $ 24,492 $ 21,126 |
Summary of option activity | A summary of stock option activity under our 2008 plan is as follows: (in thousands, except contractual term and per share data) Options Weighted Average Exercise Price (per share) Weighted Intrinsic Value Outstanding at February 28, 2021 48 $ 70.42 2.5 $ 6,866 Exercises (23) 72.58 3,560 Outstanding at February 28, 2022 25 $ 68.27 1.6 $ 3,232 Exercisable at February 28, 2022 25 $ 68.27 1.6 $ 3,232 |
Summary of award activity | A summary of Service Condition Awards activity during fiscal 2022 follows: (in thousands, except per share data) Number of Weighted Average Outstanding at February 28, 2021 126 $ 129.52 Granted 93 218.35 Vested (65) 116.22 Forfeited (16) 192.26 Outstanding at February 28, 2022 138 $ 188.11 (in thousands, except per share data) Number of Performance Condition Awards Weighted Average Outstanding at February 28, 2021 (1) 470 $ 129.53 Granted (1) (2) 140 216.20 Vested (1) (2) (134) 86.25 Forfeited (25) 148.16 Outstanding at February 28, 2022 451 $ 148.66 (1) Includes PSUs granted during fiscal 2019 at Target and PSAs granted during fiscal 2020, 2021 and 2022 at maximum achievement of 200% of Target. (2) Includes an additional 68 shares, which resulted from the performance of the fiscal 2019 awards exceeding Target. (in thousands, except per share data) Number of Market Condition Awards Weighted Average Outstanding at February 28, 2021 — 129.53 $ — Granted (1) 72 170.27 156.08 Vested — 97.05 — Forfeited (4) $ 155.62 156.08 Outstanding at February 28, 2022 68 $ 129.53 $ 156.08 (1) Includes PSAs granted during fiscal 2022 at maximum achievement of 200% of Target. |
Fair value measurement inputs and valuation techniques | The input variables utilized are included in the table below: Fiscal Year Ended February 28, 2022 Expected term in years 3 Risk free interest rate 0.3 % Expected volatility 38.9 % Expected dividend yield (1) — % (1) The Monte Carlo method assumes a reinvestment of dividends. |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Summary of share repurchase activity | The following table summarizes our share repurchase activity for the periods shown: Fiscal Years Ended Last Day of February, (in thousands, except share and per share data) 2022 2021 2020 Common stock repurchased on the open market: Number of shares 776,601 960,829 — Aggregate value of shares $ 170,712 $ 191,606 $ — Average price per share $ 219.82 $ 199.42 $ — Common stock received in connection with share-based compensation: Number of shares 78,358 69,194 77,272 Aggregate value of shares $ 17,492 $ 11,688 $ 10,169 Average price per share $ 223.23 $ 168.92 $ 131.61 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | A summary of our long-term debt follows: (in thousands) February 28, 2022 February 28, 2021 Mississippi Business Finance Corporation Loan (the “MBFC Loan”) (1) $ 16,707 $ 18,607 Credit Agreement (2) 799,500 329,000 Subtotal 816,207 347,607 Unamortized prepaid financing fees (2,991) (3,977) Total long-term debt 813,216 343,630 Less: current maturities of long-term debt (1,884) (1,884) Long-term debt, excluding current maturities $ 811,332 $ 341,746 (1) The MBFC Loan is unsecured and bears floating interest based on either 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 Net Leverage Ratio defined in the Indenture (defined below). (2) The Credit Agreement (defined below) is unsecured and bears floating interest at either the Base Rate or LIBOR, plus a margin based on the Net Leverage Ratio (as defined in the Credit Agreement) of 0% to 1.0% and 1.0% to 2.0% for Base Rate and LIBOR borrowings, respectively. These floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $125 million and $225 million of the outstanding principal balance under the Credit Agreement as of February 28, 2022 and February 28, 2021, respectively (see Notes 15, 16, and 17 for additional information regarding interest rate swaps). |
Aggregate annual maturities of long-term debt | Aggregate annual maturities of our long-term debt as of February 28, 2022 are as follows: (in thousands) Fiscal 2023 $ 1,900 Fiscal 2024 14,807 Fiscal 2025 — Fiscal 2026 799,500 Fiscal 2027 — Thereafter — Total $ 816,207 |
Schedule of interest rates on credit agreement | The following table contains information about interest rates and the related weighted average borrowings outstanding under our Credit Agreement and the MBFC Loan for the periods presented below: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Credit Agreement: Average borrowings outstanding (1) $ 503,900 $ 334,400 $ 286,640 Average effective interest rate (2) 1.1% 1.7% 3.2% Interest rate range 1.1% - 3.3% 1.1% - 4.8% 2.6% - 5.5% Weighted average interest rates on borrowings outstanding at year end 1.2% 1.1% 2.7% MBFC Loan: Average borrowings outstanding (1) $ 17,087 $ 18,987 $ 20,887 Average effective interest rate (2) 1.1% 1.4% 3.1% Interest rate range 1.1% - 1.2% 1.1% - 2.6% 2.6% - 3.5% Weighted average interest rates on borrowings outstanding at year end 1.2% 1.1% 2.6% (1) Average borrowings outstanding is computed as the average of the current and four prior quarters ending balances outstanding. (2) The average effective interest rate during each year is computed by dividing the total interest expense associated with the borrowing for a fiscal year by the average borrowings outstanding for the same fiscal year. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of the carrying amount and fair value of financial assets and liabilities measured and recorded at fair value | The following tables present the carrying amount and fair value of our financial assets and liabilities measured and recorded at fair value on a recurring basis and classified as Level 2 as follows: Carrying Amount and Fair Value (in thousands) February 28, 2022 February 28, 2021 Assets: Cash equivalents (money market accounts) $ 438 $ 1,631 Foreign currency derivatives 2,918 33 Total assets $ 3,356 $ 1,664 Liabilities: Interest rate swaps $ 2,781 $ 9,941 Foreign currency derivatives 825 6,550 Total liabilities $ 3,606 $ 16,491 |
Fair value of long lived assets held-for-sale | The fair value of the long-lived assets held for sale presented in the table below represent the remaining carrying value of the disposal group and was estimated based on current market values less costs to sell. Refer to Note 4 for additional information on assets held for sale. Fair Value Measurements Fiscal 2021 Asset Impairment Charges (in thousands) February 28, 2021 Level 1 Level 2 Level 3 Held for sale $ 39,867 $ — $ — $ 39,867 $ (8,452) Total $ 39,867 $ — $ — $ 39,867 $ (8,452) |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule of fair values of derivative instruments | The following tables summarize the fair values of our derivative instruments at the end of fiscal 2022 and 2021: (in thousands) February 28, 2022 Derivatives designated as hedging instruments Hedge Final Notional Amount Prepaid Other Accrued Other Forward contracts - sell Euro Cash flow 2/2023 €17,000 $ 1,224 $ — $ — $ — Forward contracts - sell Canadian Dollars Cash flow 2/2023 $40,000 475 — — — Forward contracts - sell Pounds Cash flow 2/2023 £24,000 1,219 — — — Forward contracts - sell Australian Dollars Cash flow 12/2022 A$5,700 — — 113 — Interest rate swaps Cash flow 1/2024 $125,000 — — 1,446 1,335 Subtotal 2,918 — 1,559 1,335 Derivatives not designated under hedge accounting Cross-currency debt swaps - Euro (1) 04/2022 €6,000 — — 244 — Cross-currency debt swaps - Pounds (1) 04/2022 £4,500 — — 468 — Subtotal — — 712 — Total fair value $ 2,918 $ — $ 2,271 $ 1,335 (in thousands) February 28, 2021 Derivatives designated as hedging instruments Hedge Final Notional Amount Prepaid Other Accrued Other Forward contracts - sell Euro Cash flow 2/2022 €39,000 $ — $ — $ 1,851 $ — Forward contracts - sell Canadian Dollars Cash flow 2/2023 $34,000 — 33 1,061 — Forward contracts - sell Pounds Cash flow 2/2023 £34,500 — — 2,026 21 Forward contracts - sell Australian Dollars Cash flow 11/2021 A$4,000 — — 18 — Interest rate swaps Cash flow 1/2024 $225,000 — — 4,407 5,534 Subtotal — 33 9,363 5,555 Derivatives not designated under hedge accounting Cross-currency debt swaps - Euro (1) 4/2022 €6,000 — — — 817 Cross-currency debt swaps - Pounds (1) 4/2022 £4,500 — — — 756 Subtotal — — — 1,573 Total fair value $ — $ 33 $ 9,363 $ 7,128 (1) These cross-currency debt swaps, for which we have not elected hedge accounting, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. |
Schedule of pre-tax effect of derivative instruments | The pre-tax effects of derivative instruments designated as cash flow hedges for fiscal 2022 and 2021 were as follows: Fiscal Year Ended Last Day of February, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified (in thousands) 2022 Location 2022 Foreign currency contracts - cash flow hedges $ 5,509 Sales revenue, net $ (2,240) Interest rate swaps - cash flow hedges 2,403 Interest expense (4,757) Total $ 7,912 $ (6,997) Fiscal Year Ended Last Day of February, Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified (in thousands) 2021 Location 2021 Foreign currency contracts - cash flow hedges $ (7,932) SG&A $ (1,564) Interest rate swaps - cash flow hedges (3,673) Interest expense (4,449) Total $ (11,605) $ (6,013) The pre-tax effects of derivative instruments not designated under hedge accounting for fiscal 2022 and 2021 were as follows: Fiscal Years Ended Last Day of February, Gain (Loss) (in thousands) Location 2022 2021 Cross-currency debt swaps - principal SG&A $ 861 $ (1,432) Cross-currency debt swaps - interest Interest Expense (3) 72 Total $ 858 $ (1,360) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The changes in AOCI by component and related tax effects for fiscal 2022 and 2021 were as follows: (in thousands) Interest Foreign Total Balance at February 29, 2020 $ (8,199) $ 1,194 $ (7,005) Other comprehensive loss before reclassification (3,673) (7,932) (11,605) Amounts reclassified out of AOCI 4,449 1,564 6,013 Tax effects (153) 1,094 941 Other comprehensive income (loss) 623 (5,274) (4,651) Balance at February 28, 2021 $ (7,576) $ (4,080) $ (11,656) Other comprehensive income before reclassification 2,403 5,509 7,912 Amounts reclassified out of AOCI 4,757 2,240 6,997 Tax effects (1,710) (1,341) (3,051) Other comprehensive income 5,450 6,408 11,858 Balance at February 28, 2022 $ (2,126) $ 2,328 $ 202 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables summarize segment information for the periods presented: Fiscal Year Ended February 28, 2022 (in thousands) Home & Outdoor (1) Health & Wellness Beauty (2) Total Sales revenue, net $ 865,844 $ 777,080 $ 580,431 $ 2,223,355 Restructuring charges 369 — 11 380 Operating income 134,925 39,217 98,408 272,550 Capital and intangible asset expenditures 67,732 7,688 2,619 78,039 Depreciation and amortization 12,112 10,691 13,026 35,829 Fiscal Year Ended February 28, 2021 (in thousands) Home & Outdoor Health & Wellness Beauty (2) Total Sales revenue, net $ 727,354 $ 890,191 $ 481,254 $ 2,098,799 Asset impairment charges — — 8,452 8,452 Restructuring charges 249 (6) 107 350 Operating income 122,487 94,103 64,898 281,488 Capital and intangible asset expenditures 10,369 12,854 75,445 98,668 Depreciation and amortization 9,333 15,453 12,932 37,718 Fiscal Year Ended February 29, 2020 (in thousands) Home & Outdoor Health & Wellness Beauty (2) Total Sales revenue, net $ 640,965 $ 685,397 $ 381,070 $ 1,707,432 Asset impairment charges — — 41,000 41,000 Restructuring charges 1,351 93 1,869 3,313 Operating income (loss) 123,135 68,166 (13,050) 178,251 Capital and intangible asset expenditures 10,602 5,853 1,304 17,759 Depreciation and amortization 7,298 16,113 13,998 37,409 (1) Fiscal 2022 includes approximately nine weeks of operating results from Osprey, acquired on December 29, 2021. For additional information see Note 7 to the accompanying consolidated financial statements. (2) Fiscal 2020 includes approximately five weeks of operating results from Drybar Products, acquired on January 23, 2020, and fiscal 2022 and 2021 include a full year of operating results. For additional information see Note 7 to the accompanying consolidated financial statements. |
Net sales by geographic region | The following table presents net sales revenue by geographic region, in U.S. Dollars: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 1,738,099 78.2 % $ 1,666,324 79.4 % $ 1,357,345 79.5 % Canada 101,617 4.6 % 92,150 4.4 % 71,417 4.2 % EMEA 214,583 9.6 % 183,398 8.7 % 138,858 8.1 % Asia Pacific 109,750 4.9 % 118,000 5.6 % 99,378 5.8 % Latin America 59,306 2.7 % 38,927 1.9 % 40,434 2.4 % Total sales revenue, net $ 2,223,355 100.0 % $ 2,098,799 100.0 % $ 1,707,432 100.0 % |
Schedule of domestic and international long-lived assets | Our domestic and international long-lived assets were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 211,484 $ 145,798 $ 147,806 International: Barbados 22,486 18,254 11,969 Other international 9,167 5,016 4,977 Subtotal 31,653 23,270 16,946 Total $ 243,137 $ 169,068 $ 164,752 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before taxes | Our components of income before income tax expense are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 U.S. $ 63,653 $ 48,693 $ 40,146 Non-U.S. 196,313 220,737 125,794 Total $ 259,966 $ 269,430 $ 165,940 |
Schedule of components of income tax expense (benefit) | Our components of income tax expense (benefit) are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Current: U.S. federal $ 20,907 $ 4,340 $ 12,551 State 6,283 5,892 4,181 Non-U.S. 17,883 9,652 2,571 45,073 19,884 19,303 Deferred: U.S. federal (5,269) (3,828) (4,376) State (1,766) (1,795) (413) Non-U.S. (1,836) 1,223 (907) (8,871) (4,400) (5,696) Total $ 36,202 $ 15,484 $ 13,607 |
Schedule of effective income tax rate reconciliation | An income tax rate reconciliation of these differences are as follows: Fiscal Years Ended Last Day of February, 2022 2021 2020 Effective income tax rate at the U.S. statutory rate 21.0 % 21.0 % 21.0 % Impact of U.S. state income taxes 1.4 % 0.6 % 1.6 % Effect of statutory tax rate in Macau 0.1 % (0.7) % (13.6) % Effect of statutory tax rate in Barbados (11.0) % (15.4) % (5.5) % Effect of statutory tax rate in Switzerland (1.2) % (1.5) % (0.4) % Effect of income from other non-U.S. operations subject to varying rates 1.2 % 1.1 % 2.3 % Effect of foreign exchange fluctuations 0.5 % (0.1) % 0.7 % Effect of asset impairment charges — % 0.3 % 2.4 % Effect of U.S. tax reform — % (3.5) % — % Effect of uncertain tax positions 0.6 % 3.2 % (1.7) % Effect of non-deductible executive compensation 1.1 % 1.0 % 1.4 % Effect of base erosion and anti-abuse tax — % (0.6) % — % Other items 0.2 % 0.3 % — % Effective income tax rate 13.9 % 5.7 % 8.2 % |
Schedule of components of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Deferred tax assets, gross: Operating loss carryforwards $ 13,195 $ 14,785 Accounts receivable 11,144 8,905 Inventories 19,619 12,432 Operating lease liabilities 11,494 10,388 Accrued expenses and other 10,364 10,731 Total gross deferred tax assets 65,816 57,241 Valuation allowance (11,673) (15,021) Deferred tax liabilities: Operating lease assets (8,635) (7,500) Depreciation (10,589) (11,828) Amortization (52,873) (6,879) Total deferred tax (liabilities) assets, net $ (17,954) $ 16,013 |
Schedule of operating loss carryforwards | The composition of our operating loss carryforwards at the end of fiscal 2022 is as follows: February 28, 2022 (in thousands) Tax Year Deferred Operating U.S. federal operating loss carryforwards Indefinite $ 2,936 $ 13,979 U.S. state operating loss carryforwards 2032-2042 732 18,504 Non-U.S. operating loss carryforwards with definite carryover periods 2022-2039 4,483 18,072 Non-U.S. operating loss carryforwards with indefinite carryover periods Indefinite 5,044 15,921 Subtotal 13,195 $ 66,476 Less portion of valuation allowance established for operating loss carryforwards (9,522) Total $ 3,673 |
Schedule of unrecognized tax benefits | During fiscal 2022 and 2021, changes in the total amount of unrecognized tax benefits (excluding interest and penalties) were as follows: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 Total unrecognized tax benefits, beginning balance $ 5,436 $ 113 Tax positions taken during the current period 949 1,542 Changes in tax positions taken during a prior period 1,409 4,280 Impact of foreign currency re-measurement 50 — Settlements (2,221) (499) Total unrecognized tax benefits, ending balance 5,623 5,436 Less current unrecognized tax benefits — — Non-current unrecognized tax benefits $ 5,623 $ 5,436 |
Schedule of material tax years under examination or still subject to examination by major tax jurisdictions | As of February 28, 2022, tax years under examination or still subject to examination by material tax jurisdictions are as follows: Jurisdiction Tax Years Under Examination Open Tax Years United Kingdom - None - 2021 — 2022 U.S. 2017-2018 2017 — 2022 Switzerland - None - 2018 — 2022 Hong Kong 2014-2016 2014 — 2022 China 2009-2018 2009 — 2022 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of components of basic and diluted shares | The following table presents our weighted average basic and diluted shares outstanding for the periods shown: Fiscal Years Ended Last Day of February, (in thousands) 2022 2021 2020 Weighted average shares outstanding, basic 24,142 24,985 25,118 Incremental shares from share-based compensation arrangements 268 211 204 Weighted average shares outstanding, diluted 24,410 25,196 25,322 Anti-dilutive securities 17 112 197 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Related Information - Corporate Overview and Principles of Consolidation (Details) $ / shares in Units, $ in Thousands | Mar. 25, 2022USD ($) | Dec. 29, 2021USD ($) | Jun. 07, 2021USD ($) | Feb. 28, 2022USD ($)segment$ / shares | Feb. 28, 2021USD ($)$ / shares | Feb. 29, 2020USD ($) |
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Common stock, par value (usd per share) | $ / shares | $ 0.10 | $ 0.10 | ||||
Number of segments | segment | 3 | |||||
Proceeds from sale of North America Personal Care business | $ 44,700 | $ 44,700 | $ 0 | $ 0 | ||
Gain on sale of North American Personal Care business | $ 513 | $ 0 | $ 0 | |||
Latin America and Caribbean Personal Care Business | Subsequent Event | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Proceeds from sale of North America Personal Care business | $ 1,800 | |||||
Osprey Packs, Inc. | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Purchase price | $ 410,900 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Related Information - Receivables (Details) - Gross trade receivables - Customer concentration risk | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Customer One | ||
Receivables | ||
Concentration risk percentage | 23.00% | 18.00% |
Customer Two | ||
Receivables | ||
Concentration risk percentage | 17.00% | 16.00% |
Customer Three | ||
Receivables | ||
Concentration risk percentage | 9.00% | 15.00% |
Five top customers | ||
Receivables | ||
Concentration risk percentage | 55.00% | 58.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Related Information - Inventory and Cost of Goods Sold (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Summary of significant accounting policies | |||
General and administrative expenses charged to inventory | $ 26 | $ 33.9 | $ 44.6 |
General and administrative expenses directly attributable to the procurement of inventory included in inventory balances | $ 17.6 | $ 15.1 | |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Vendors in Far East | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 88.00% | 80.00% | 76.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top two manufacturers | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 16.00% | 20.00% | 18.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Top five suppliers | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 36.00% | 38.00% | 39.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Vendor located in Hong Kong | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 9.00% | 11.00% | 7.00% |
Cost of goods sold manufactured by vendors | Supplier concentration risk | Vendor located in Mexico | |||
Summary of significant accounting policies | |||
Concentration risk percentage | 7.00% | 9.00% | 9.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Related Information - License Agreements, Trademarks, Patents, and Other Intangible Assets (Details) - agreement | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Number of license agreements | 2 | ||
Patents | Maximum | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Weighted average life (in years) | 14 years | ||
Patents | Minimum | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Weighted average life (in years) | 12 years | ||
Net sales revenue | Net sales revenue subject to trademark license agreements | Trademark, Licensing, And Royalty Agreements | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Concentration risk percentage | 30.00% | 41.00% | 43.00% |
Net sales revenue | Net sales revenue subject to trademark license agreements | Licensor One | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Concentration risk percentage | 13.00% | ||
Net sales revenue | Net sales revenue subject to trademark license agreements | Licensor Two | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Concentration risk percentage | 10.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Related Information - Economic Useful Lives and Amortization of Intangible Assets (Details) | 12 Months Ended |
Feb. 28, 2022 | |
Minimum | Other Intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 4 years 6 months |
Minimum | License | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 5 years |
Minimum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 15 years |
Maximum | Other Intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 24 years |
Maximum | License | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 40 years |
Maximum | Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average life (in years) | 30 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Related Information - Revenue Recognition and Costs and Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Product Liability Contingency [Line Items] | |||
Customer incentives in SG&A | $ 39,000 | $ 27,100 | $ 20,900 |
Advertising costs in SG&A | 96,400 | 110,700 | 71,400 |
Research and development expenses | 37,200 | 30,600 | 17,800 |
Shipping and handling expenses in SG&A | $ 1,270,168 | 1,171,497 | 972,966 |
Minimum | |||
Product Liability Contingency [Line Items] | |||
Term of allowable sales returns | 2 years | ||
Maximum | |||
Product Liability Contingency [Line Items] | |||
Term of allowable sales returns | 5 years | ||
Shipping and Handling | |||
Product Liability Contingency [Line Items] | |||
Shipping and handling expenses in SG&A | $ 173,400 | $ 140,100 | $ 102,700 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Location of current operating lease liabilities on financial statement | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Operating lease expense | $ 9.6 | $ 7 | $ 6.4 |
Rental expense related to operating leases | $ 13.3 | $ 9.5 | $ 7.8 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 11 years |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Leases [Abstract] | ||
Weighted average remaining lease term (years) | 9 years 6 months | 9 years 7 months 6 days |
Weighted average discount rate | 5.52% | 6.03% |
Cash Flow, Operating Activities, Lessee [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 9,715 | $ 6,951 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 12,213 | $ 4,163 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Information (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Leases [Abstract] | ||
Fiscal 2023 | $ 8,320 | |
Fiscal 2024 | 6,621 | |
Fiscal 2025 | 6,665 | |
Fiscal 2026 | 5,361 | |
Fiscal 2027 | 5,966 | |
Thereafter | 32,178 | |
Total future lease payments | 65,111 | |
Less: imputed interest | (15,611) | |
Present value of lease liability | $ 49,500 | $ 44,324 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Leases [Abstract] | ||
Lease liabilities, current | $ 5,755 | $ 5,972 |
Lease liabilities, non-current | 43,745 | 38,352 |
Total lease liability | $ 49,500 | $ 44,324 |
Location of current operating lease liabilities on financial statement | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale - Narrative (Details) - USD ($) | Mar. 25, 2022 | Jun. 07, 2021 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Long Lived Assets Held-for-sale [Line Items] | |||||||
Impairment charge on held-for-sale assets | $ 0 | $ 8,500,000 | $ 41,000,000 | ||||
Proceeds from sale of North America Personal Care business | $ 44,700,000 | 44,700,000 | 0 | 0 | |||
Gain on sale of North American Personal Care business | 513,000 | 0 | 0 | ||||
Amortization of intangible assets held-for-sale | 12,764,000 | 17,643,000 | 21,271,000 | ||||
Personal Care | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Impairment charge on held-for-sale assets | $ 8,500,000 | $ 41,000,000 | |||||
Impairment charge on held-for-sale assets (after tax) | $ 7,400,000 | $ 36,400,000 | |||||
Proceeds from sale of North America Personal Care business | 44,700,000 | ||||||
Gain on sale of North American Personal Care business | $ 500,000 | ||||||
Amortization of intangible assets held-for-sale | $ 0 | $ 0 | $ 7,800,000 | ||||
Latin America and Caribbean Personal Care Business | Subsequent Event | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Proceeds from sale of North America Personal Care business | $ 1,800,000 |
Assets and Liabilities Held f_4
Assets and Liabilities Held for Sale - Carrying Amounts of Major Classes of Assets Classified as Held-for-Sale (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities held for sale | $ 235 | $ 0 |
Receivables allowance | 843 | 998 |
Property and equipment, accumulated depreciation | 161,006 | 140,379 |
Goodwill, accumulated impairment | 0 | 0 |
Accumulated amortization | 150,309 | 151,240 |
Other intangible assets | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Accumulated amortization | 142,710 | 134,113 |
Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 1,942 | 39,867 |
Liabilities held for sale | 235 | 0 |
Receivables allowance | 23 | 30 |
Goodwill, accumulated impairment | 80,445 | |
Personal Care | Accrued sales discounts and allowances | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities held for sale | 235 | 0 |
Personal Care | Other intangible assets | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Accumulated amortization | 4,474 | 4,474 |
Property, Plant and Equipment, Held-for-Sale | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Property and equipment, accumulated depreciation | 152 | 403 |
Receivables, net of allowance of $23 and $30 | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 1,265 | 7,979 |
Inventory | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 611 | 12,667 |
Property and equipment, net of accumulated depreciation of $152 and $403 | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 66 | 100 |
Goodwill | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | 0 | 1,397 |
Other intangible assets | Personal Care | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | $ 0 | $ 17,724 |
Assets and Liabilities Held f_5
Assets and Liabilities Held for Sale - Income (Loss) before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Personal Care | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Income (loss) before income tax | $ 5,546 | $ 8,705 | $ (29,760) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 366,384 | $ 276,914 | |
Less: accumulated depreciation | (161,006) | (140,379) | |
Property and equipment, net | 205,378 | 136,535 | |
Depreciation expense | 23,100 | 20,100 | $ 16,100 |
Cost of goods sold | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Depreciation expense | 10,000 | 6,800 | 4,300 |
SG&A | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Depreciation expense | 13,100 | 13,300 | $ 11,800 |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 20,632 | 12,644 | |
Building and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 126,093 | 116,652 | |
Building and improvements | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 40 years | ||
Computer, furniture and other equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 102,566 | 97,810 | |
Computer, furniture and other equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Computer, furniture and other equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 15 years | ||
Tools, molds and other production equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 55,925 | 42,729 | |
Tools, molds and other production equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 3 years | ||
Tools, molds and other production equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated Useful Lives (Years) | 7 years | ||
Construction in progress | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $ 61,168 | $ 7,079 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation, benefits and payroll taxes | $ 55,405 | $ 66,385 |
Accrued sales discounts and allowances | 69,120 | 59,426 |
Accrued sales returns | 33,384 | 29,434 |
Accrued advertising | 55,775 | 50,923 |
Other | 57,991 | 65,011 |
Total accrued expenses and other current liabilities | $ 271,675 | $ 271,179 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Dec. 29, 2021 | Jan. 23, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Purchase consideration, net of cash acquired | $ 410,880 | $ 0 | $ 255,861 | ||
Gross contractual amount of receivables acquired | $ 11,900 | ||||
Osprey | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Purchase consideration, net of cash acquired | 410,900 | ||||
Preliminary favorable net capital adjustment | 9,100 | ||||
Acquisition related costs | $ 2,400 | ||||
Trade names - indefinite | 170,000 | ||||
Intangible assets, assigned value | $ 22,000 | ||||
Amortization period of intangible assets | 4 years 6 months | ||||
Osprey | Trade names | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Trade names - indefinite | $ 170,000 | ||||
Osprey | Customer relationships | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Intangible assets, assigned value | $ 22,000 | ||||
Drybar | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Acquisition related costs | $ 2,500 | ||||
Purchase price | $ 255,900 |
Acquisitions - Schedule of Net
Acquisitions - Schedule of Net Assets Recorded Upon Acquisition (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Dec. 29, 2021 | Feb. 28, 2021 | Jan. 23, 2020 |
Assets | ||||
Goodwill | $ 948,873 | $ 739,901 | ||
Osprey | ||||
Assets | ||||
Receivables | $ 11,758 | |||
Inventory | 30,056 | |||
Prepaid expenses and other current assets | 3,699 | |||
Income taxes receivable | 4,197 | |||
Property and equipment | 11,386 | |||
Goodwill | 208,972 | |||
Trade names - indefinite | 170,000 | |||
Customer relationships, trade names and other intangible assets - definite | 22,000 | |||
Operating lease assets | 2,155 | |||
Total assets | 464,223 | |||
Liabilities: | ||||
Accounts payable | 4,487 | |||
Accrued expenses | 7,345 | |||
Lease liabilities, non-current | 1,719 | |||
Deferred tax liabilities, net | 39,792 | |||
Subtotal - liabilities | 53,343 | |||
Net assets recorded | 410,880 | |||
Allowance for credit losses | $ (100) | |||
Drybar | ||||
Assets | ||||
Receivables | $ 7,710 | |||
Inventory | 16,603 | |||
Prepaid expenses and other current assets | 190 | |||
Property and equipment | 1,472 | |||
Goodwill | 172,933 | |||
Total assets | 261,908 | |||
Liabilities: | ||||
Accounts payable | 1,948 | |||
Accrued expenses | 4,099 | |||
Subtotal - liabilities | 6,047 | |||
Net assets recorded | 255,861 | |||
Drybar | Trade names | ||||
Assets | ||||
Customer relationships, trade names and other intangible assets - definite | 30,000 | |||
Drybar | Other intangible assets | ||||
Assets | ||||
Customer relationships, trade names and other intangible assets - definite | $ 33,000 |
Acquisitions - Impact of Acquis
Acquisitions - Impact of Acquisition on Consolidated Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 29, 2020 | Feb. 28, 2022 | |
Osprey | ||
Business Acquisition [Line Items] | ||
Sales revenue, net | $ 24,373 | |
Net income | $ 696 | |
EPS: | ||
Basic (in dollars per share) | $ 0.03 | |
Diluted (in dollars per share) | $ 0.03 | |
Drybar | ||
Business Acquisition [Line Items] | ||
Sales revenue, net | $ 6,039 | |
Net income | $ 1,483 | |
EPS: | ||
Basic (in dollars per share) | $ 0.06 | |
Diluted (in dollars per share) | $ 0.06 |
Acquisitions - Supplemental Pro
Acquisitions - Supplemental Pro Forma Impact on Consolidated Income Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Osprey | |||
Business Acquisition [Line Items] | |||
Sales revenue, net | $ 2,361,906 | $ 2,224,196 | |
Net income | $ 202,507 | $ 259,311 | |
EPS: | |||
Basic (in dollars per share) | $ 8.39 | $ 10.38 | |
Diluted (in dollars per share) | $ 8.30 | $ 10.29 | |
Drybar | |||
Business Acquisition [Line Items] | |||
Sales revenue, net | $ 1,773,592 | ||
Net income | $ 162,114 | ||
EPS: | |||
Basic (in dollars per share) | $ 6.45 | ||
Diluted (in dollars per share) | $ 6.40 |
Goodwill and Intangibles - Narr
Goodwill and Intangibles - Narrative (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Asset impairment charges | $ 0 | $ 8,452,000 | $ 41,000,000 |
Impairment charge on held-for-sale assets | $ 0 | 8,500,000 | $ 41,000,000 |
Beauty | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charge on held-for-sale assets (after tax) | $ 7,400,000 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | $ 948,873 | $ 739,901 |
Accumulated impairment | 0 | 0 |
Acquisitions | 208,972 | |
Net carrying amount, ending balance | 948,873 | 739,901 |
Home & Outdoor | ||
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | 491,028 | 282,056 |
Net carrying amount, ending balance | 491,028 | 282,056 |
Health & Wellness | ||
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | 284,913 | 284,913 |
Net carrying amount, ending balance | 284,913 | 284,913 |
Beauty | ||
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | 172,932 | 172,932 |
Net carrying amount, ending balance | $ 172,932 | $ 172,932 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Intangible Assets and Amortization (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 688,155 | $ 508,504 |
Accumulated Amortization | (150,309) | (151,240) |
Net Carrying Amount | 537,846 | 357,264 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 74,250 | 87,946 |
Accumulated Amortization | (3,267) | (14,800) |
Net Carrying Amount | 70,983 | 73,146 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,150 | 30,150 |
Accumulated Amortization | (4,332) | (2,327) |
Net Carrying Amount | 25,818 | 27,823 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 218,155 | 194,808 |
Accumulated Amortization | (142,710) | (134,113) |
Net Carrying Amount | 75,445 | 60,695 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Infinite lived intangible assets | 7,400 | 7,400 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Infinite lived intangible assets | $ 358,200 | $ 188,200 |
Goodwill and Intangibles - Amor
Goodwill and Intangibles - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets continued operations | $ 12,764 | $ 17,643 | $ 21,271 |
Estimated Amortization Expense | |||
Fiscal 2023 | 16,860 | ||
Fiscal 2024 | 16,738 | ||
Fiscal 2025 | 16,248 | ||
Fiscal 2026 | 14,072 | ||
Fiscal 2027 | $ 9,609 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Details) $ / shares in Units, $ in Millions | Aug. 22, 2018shares | Feb. 28, 2022USD ($)plan$ / sharesshares | Feb. 28, 2021USD ($)$ / sharesshares | Feb. 29, 2020USD ($)$ / sharesshares | Feb. 28, 2019shares |
Share-based compensation plans | |||||
Number of expired share based compensation plans | plan | 1 | ||||
Number of active share-based compensation plans | plan | 2 | ||||
New grants of options (in shares) | 0 | 0 | 0 | 0 | |
Exercises (in shares) | $ | $ 3.6 | $ 2.8 | $ 9.1 | ||
Target achievement as a percentage | 175.00% | ||||
Unrecognized compensation expense | $ | $ 28.8 | ||||
Weighted average period of recognition (in years) | 2 years | ||||
The 2018 Plan | |||||
Share-based compensation plans | |||||
Number of shares of common stock covered for issuance under share-based compensation plan (in shares) | 2,000,000 | ||||
Shares issued under plan (in shares) | 12,911 | ||||
Employee Stock | |||||
Share-based compensation plans | |||||
Shares purchased for 2018 ESPP (in shares) | 23,524 | ||||
Maximum withholding percentage of employee wages or salaries for the purchase of shares of common stock | 15.00% | ||||
Purchase price for shares acquired under the plan as a percentage of the share's fair market value | 85.00% | ||||
Restricted Stock | Directors | The 2018 Plan | |||||
Share-based compensation plans | |||||
Shares issued under plan (in shares) | 2,828 | ||||
Aggregate grant date fair value of shares issued (in dollars per share) | $ | $ 0.6 | $ 0.7 | $ 0.6 | ||
Grant date fair value (in dollars per share) | $ / shares | $ 226.50 | ||||
Restricted Stock Awards and Restricted Stock Units | |||||
Share-based compensation plans | |||||
Award vesting period | 4 years | ||||
Restricted Stock Awards and Restricted Stock Units | Specified Grading Vesting Terms | |||||
Share-based compensation plans | |||||
Award vesting period | 3 years | ||||
Restricted Stock Awards and Restricted Stock Units | The 2018 Plan | |||||
Share-based compensation plans | |||||
Grant date fair value (in dollars per share) | $ / shares | $ 218.35 | $ 179.30 | $ 118.76 | ||
Fair value of awards vested | $ | $ 14.3 | $ 14 | $ 10.8 | ||
Performance Stock Awards | |||||
Share-based compensation plans | |||||
Performance period for PSU awards | 3 years | ||||
Target percentage for performance stock awards | 100.00% | ||||
Performance Stock Awards | The 2018 Plan | |||||
Share-based compensation plans | |||||
Fair value of awards vested | $ | $ 29.9 | $ 18.6 | $ 15 | ||
Market Condition Awards | |||||
Share-based compensation plans | |||||
Grant date fair value (in dollars per share) | $ / shares | $ 156.08 | ||||
Performance period for PSU awards | 3 years | ||||
Target achievement as a percentage | 100.00% | ||||
Market Condition Awards | Cliff Vest | |||||
Share-based compensation plans | |||||
Award vesting period | 3 years | ||||
Minimum | Performance Stock Awards | |||||
Share-based compensation plans | |||||
Target percentage for performance stock awards | 0.00% | ||||
Minimum | Market Condition Awards | |||||
Share-based compensation plans | |||||
Target achievement as a percentage | 0.00% | ||||
Maximum | Employee Stock | |||||
Share-based compensation plans | |||||
Shares purchased for 2018 ESPP (in shares) | 750,000 | ||||
Maximum | Performance Stock Awards | |||||
Share-based compensation plans | |||||
Target percentage for performance stock awards | 200.00% | ||||
Maximum | Market Condition Awards | |||||
Share-based compensation plans | |||||
Target achievement as a percentage | 200.00% |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Shares Available for Issue (Details) - shares | 12 Months Ended | |
Feb. 28, 2022 | Aug. 22, 2018 | |
Minimum | ||
Share-based compensation plans | ||
Incremental shares issuable based on achievement of plan target, as a percentage | 100.00% | |
The 2018 Plan | ||
Share-based compensation plans | ||
Shares originally authorized (in shares) | 2,000,000 | |
Less share awards issued (in shares) | (12,911) | |
Plus forfeitures (in shares) | 147,853 | |
Shares available for issuance (in shares) | 1,241,269 | |
The 2018 Plan | Restricted Stock Units (RSU) | ||
Share-based compensation plans | ||
Less awards issued and issuable upon vesting (in shares) | (612,312) | |
The 2018 Plan | Performance Stock Awards | ||
Share-based compensation plans | ||
Less awards issued and issuable upon vesting (in shares) | (281,361) | |
The 2018 Plan | Performance Stock Awards | Maximum | ||
Share-based compensation plans | ||
Incremental shares issuable based on achievement of plan target, as a percentage | 200.00% |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Included in SG&A (Details) - SG&A - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 34,618 | $ 26,418 | $ 22,929 |
Less: income tax benefits | (2,965) | (1,926) | (1,803) |
Share-based compensation expense, net of income tax benefits | 31,653 | 24,492 | 21,126 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 0 | 19 | 189 |
Service Condition Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 11,177 | 7,941 | 8,419 |
Performance Condition Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 17,260 | 16,796 | 12,932 |
Market Condition Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 4,234 | 0 | 0 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 1,303 | 977 | 785 |
Directors | Directors stock compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 644 | $ 685 | $ 604 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Intrinsic Value | |||
Exercises (in shares) | $ 3,600 | $ 2,800 | $ 9,100 |
Stock options | |||
Options | |||
Outstanding at the beginning of the period (in shares) | 48 | ||
Exercises (in shares) | (23) | ||
Outstanding at the end of the period (in shares) | 25 | 48 | |
Exercisable at the end of the period (in shares) | 25 | ||
Weighted Average Exercise Price (per share) | |||
Outstanding at the beginning of the period (in dollars per share) | $ 70.42 | ||
Exercises (in dollars per share) | 72.58 | ||
Outstanding at the end of the period (in dollars per share) | 68.27 | $ 70.42 | |
Exercisable at the end of the period (in dollars per share) | $ 68.27 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Weighted average remaining contractual term (in years) | 1 year 7 months 6 days | 2 years 6 months | |
Exercisable at the end of the period (in shares) | 1 year 7 months 6 days | ||
Intrinsic Value | |||
Outstanding at the beginning of the period (in shares) | $ 6,866 | ||
Exercises (in shares) | 3,560 | ||
Outstanding at the end of the period (in shares) | 3,232 | $ 6,866 | |
Exercisable at the end of the period (in shares) | $ 3,232 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | |
Number of Service Condition Awards | ||||
Granted (in shares) | 68 | |||
Weighted Average Grant Date Fair Value (per share) | ||||
Target achievement as a percentage | 175.00% | |||
Restricted Stock Awards and Restricted Stock Units | ||||
Number of Service Condition Awards | ||||
Forfeited (in shares) | (16) | |||
Weighted Average Grant Date Fair Value (per share) | ||||
Forfeited (in dollars per share) | $ 192.26 | |||
Performance Shares | ||||
Number of Service Condition Awards | ||||
Outstanding at the beginning of the period (in shares) | 470 | |||
Granted (in shares) | 140 | |||
Vested (in shares) | (134) | |||
Forfeited (in shares) | (25) | |||
Outstanding at the end of the period (in shares) | 451 | 470 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 129.53 | |||
Granted (in dollars per share) | 216.20 | $ 170.27 | $ 111.98 | |
Vested (in dollars per share) | 86.25 | |||
Forfeited (in dollars per share) | 148.16 | |||
Outstanding at the end of the period (in dollars per share) | $ 148.66 | $ 129.53 | ||
Target percentage for performance stock awards | 200.00% | 200.00% | 200.00% | |
Market Condition Awards | ||||
Number of Service Condition Awards | ||||
Outstanding at the beginning of the period (in shares) | 0 | |||
Granted (in shares) | 72 | |||
Forfeited (in shares) | (4) | |||
Outstanding at the end of the period (in shares) | 68 | 0 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | |||
Granted (in dollars per share) | 156.08 | |||
Forfeited (in dollars per share) | 156.08 | |||
Outstanding at the end of the period (in dollars per share) | $ 156.08 | $ 0 | ||
Target achievement as a percentage | 100.00% | |||
2008 Stock Incentive Plan | Restricted Stock Awards and Restricted Stock Units | ||||
Number of Service Condition Awards | ||||
Outstanding at the beginning of the period (in shares) | 126 | |||
Granted (in shares) | 93 | |||
Vested (in shares) | (65) | |||
Outstanding at the end of the period (in shares) | 138 | 126 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 129.52 | |||
Granted (in dollars per share) | 218.35 | |||
Vested (in dollars per share) | 116.22 | |||
Outstanding at the end of the period (in dollars per share) | $ 188.11 | $ 129.52 | ||
2008 Stock Incentive Plan | Performance Shares | ||||
Number of Service Condition Awards | ||||
Vested (in shares) | (68) | |||
2008 Stock Incentive Plan | Market Condition Awards | ||||
Number of Service Condition Awards | ||||
Vested (in shares) | 0 | |||
Weighted Average Grant Date Fair Value (per share) | ||||
Vested (in dollars per share) | $ 0 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans - Fair Value Assumptions (Details) - Market Condition Awards | 12 Months Ended |
Feb. 28, 2022 | |
Share-based compensation plans | |
Expected term in years | 3 years |
Risk free interest rate | 0.30% |
Expected volatility | 38.90% |
Expected dividend yield | 0.00% |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Retirement Benefits, Description [Abstract] | |||
Total matching contributions to saving plans | $ 5.6 | $ 5 | $ 4.3 |
Repurchases of Common Stock - N
Repurchases of Common Stock - Narrative (Details) - USD ($) | Aug. 25, 2021 | Feb. 28, 2022 | Aug. 31, 2021 | Aug. 24, 2021 |
Equity [Abstract] | ||||
Amount of shares authorized for purchase (in shares) | $ 500,000,000 | |||
Period for stock repurchase | 3 years | |||
Remaining share repurchase amount | $ 422,000,000 | $ 79,500,000 |
Repurchases of Common Stock - S
Repurchases of Common Stock - Summary of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Repurchase of common stock | |||
Aggregate value of shares (in USD) | $ 188,204 | $ 203,294 | $ 10,169 |
Number of shares (in shares) | 78,358 | 69,194 | 77,272 |
Aggregate value of shares (in USD) | $ 17,492 | $ 11,688 | $ 10,169 |
Average price per share (in dollars per share) | $ 223.23 | $ 168.92 | $ 131.61 |
Open market or tender offer | |||
Repurchase of common stock | |||
Number of shares (in shares) | 776,601 | 960,829 | 0 |
Aggregate value of shares (in USD) | $ 170,712 | $ 191,606 | $ 0 |
Average price per share (in dollars per share) | $ 219.82 | $ 199.42 | $ 0 |
Restructuring Plan (Details)
Restructuring Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | 53 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2022 | |
Restructuring Plan | ||||
Restructuring charges | $ 380 | $ 350 | $ 3,313 | |
Accumulated costs incurred through period end | 9,600 | $ 9,600 | ||
Project Refuel | ||||
Restructuring Plan | ||||
Cash restructuring payments | $ 500 | |||
Targeted annualized profit improvement | $ 12,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Feb. 28, 2022USD ($) | |
EPA Remediation Costs | Health & Wellness | Cost of goods sold | |
Other Commitments [Line Items] | |
Production related impairments or charges | $ 13.1 |
EPA Remediation Costs | Health & Wellness | SG&A | |
Other Commitments [Line Items] | |
Production related impairments or charges | 19.3 |
Incremental Warehouse Storage Costs and Legal Fees | Health & Wellness | SG&A | |
Other Commitments [Line Items] | |
Production related impairments or charges | 14.6 |
Storage and Obsolete Packaging | Health & Wellness | Cost of goods sold | |
Other Commitments [Line Items] | |
Production related impairments or charges | 4.7 |
Royalty agreements | |
Contractual obligations and commercial commitments | |
2023, 1 year | 7.4 |
2024, 2 years | 7.3 |
2025, 3 years | 7 |
2026, 4 years | 5.6 |
2027, 5 years | $ 2.9 |
Long-Term Debt - Schedule (Deta
Long-Term Debt - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Subtotal, long-term debt | $ 816,207 | $ 347,607 |
Unamortized prepaid financing fees | (2,991) | (3,977) |
Total long-term debt | 813,216 | 343,630 |
Less: current maturities of long-term debt | (1,884) | (1,884) |
Long-term debt, excluding current maturities | 811,332 | 341,746 |
MBFC loan | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Subtotal, long-term debt | $ 16,707 | 18,607 |
MBFC loan | Base rate | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 1.00% | |
MBFC loan | LIBOR | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 2.00% | |
Credit agreement | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Subtotal, long-term debt | $ 799,500 | 329,000 |
Credit agreement | Base rate | Minimum | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 0.00% | |
Credit agreement | Base rate | Maximum | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 1.00% | |
Credit agreement | LIBOR | Minimum | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 1.00% | |
Credit agreement | LIBOR | Maximum | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Margin (as a percent) | 2.00% | |
Senior notes | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Fixed rate debt | $ 125,000 | $ 225,000 |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Debt Disclosure [Abstract] | |
Fiscal 2023 | $ 1,900 |
Fiscal 2024 | 14,807 |
Fiscal 2025 | 0 |
Fiscal 2026 | 799,500 |
Fiscal 2027 | 0 |
Thereafter | 0 |
Total | $ 816,207 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Long-term debt | ||
Maximum allowable increase due to accordion feature | $ 300,000,000 | |
Long-term debt, gross | 816,207,000 | $ 347,607,000 |
Outstanding letters of credit | 32,700,000 | |
Maximum line of credit debt allowed under covenant | 417,800,000 | |
Remaining borrowing capacity on line of credit | 417,800,000 | |
Fiscal 2023 | 1,900,000 | |
Fiscal 2024 | 14,807,000 | |
Credit agreement | ||
Long-term debt | ||
Unsecured total revolving commitment | 1,250,000,000 | |
Long-term debt, gross | 799,500,000 | 329,000,000 |
MBFC loan | ||
Long-term debt | ||
Long-term debt, gross | $ 16,707,000 | $ 18,607,000 |
Long-Term Debt - Interest Rates
Long-Term Debt - Interest Rates (Details) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022USD ($)quarter | Feb. 28, 2021USD ($) | Feb. 29, 2020USD ($) | |
Credit agreement | |||
Revolving Line of Credit | |||
Average borrowings outstanding | $ 503,900 | $ 334,400 | $ 286,640 |
Average interest rates during each year (as a percent) | 1.10% | 1.70% | 3.20% |
Weighted average interest rates on borrowings outstanding at year end (as a percent) | 1.20% | 1.10% | 2.70% |
Number of prior quarters used in calculation of average borrowings outstanding | quarter | 4 | ||
Credit agreement | Minimum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 1.10% | 1.10% | 2.60% |
Credit agreement | Maximum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 3.30% | 4.80% | 5.50% |
MBFC loan | |||
Revolving Line of Credit | |||
Average borrowings outstanding | $ 17,087 | $ 18,987 | $ 20,887 |
Average interest rates during each year (as a percent) | 1.10% | 1.40% | 3.10% |
Weighted average interest rates on borrowings outstanding at year end (as a percent) | 1.20% | 1.10% | 2.60% |
MBFC loan | Minimum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 1.10% | 1.10% | 2.60% |
MBFC loan | Maximum | |||
Revolving Line of Credit | |||
Interest rate range during each year (as a percent) | 1.20% | 2.60% | 3.50% |
Fair Value - Carrying Value and
Fair Value - Carrying Value and Fair Value (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Liabilities: | |||
Impairment charge on held-for-sale assets | $ 0 | $ 8,500,000 | $ 41,000,000 |
Asset Impairment Charges | 0 | 8,452,000 | $ 41,000,000 |
Recurring | Level 2 | |||
Assets: | |||
Total assets | 3,356,000 | 1,664,000 | |
Liabilities: | |||
Total liabilities | 3,606,000 | 16,491,000 | |
Recurring | Level 2 | Interest rate swaps | |||
Liabilities: | |||
Derivative liabilities | 2,781,000 | 9,941,000 | |
Recurring | Level 2 | Foreign currency derivatives | |||
Assets: | |||
Derivative assets | 2,918,000 | 33,000 | |
Liabilities: | |||
Derivative liabilities | 825,000 | 6,550,000 | |
Recurring | Level 2 | Cash equivalents (money market accounts) | |||
Assets: | |||
Cash equivalents (money market accounts) | $ 438,000 | $ 1,631,000 |
Fair Value - Assets Held-for-sa
Fair Value - Assets Held-for-sale (Details) - Personal Care $ in Thousands | 12 Months Ended |
Feb. 28, 2021USD ($) | |
Fair Value | |
Held for sale | $ 39,867 |
Fiscal 2021 Asset Impairment Charges | (8,452) |
Level 1 | |
Fair Value | |
Held for sale | 0 |
Level 2 | |
Fair Value | |
Held for sale | 0 |
Level 3 | |
Fair Value | |
Held for sale | $ 39,867 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Foreign currency derivatives | Cash flow hedges | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Net gain currently reported in accumulated other comprehensive income, to be reclassified into income | $ 1.4 | ||
Senior notes | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Fixed rate debt | 125 | $ 225 | |
SG&A | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps | $ (0.2) | $ (0.6) | $ 2.2 |
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies | |||
Foreign Currency Risk and Currency Exchange Uncertainties | |||
Concentration risk percentage | 10.00% | 12.00% | 14.00% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Feb. 28, 2022EUR (€) | Feb. 28, 2022USD ($) | Feb. 28, 2022CAD ($) | Feb. 28, 2022GBP (£) | Feb. 28, 2022AUD ($) | Feb. 28, 2021EUR (€) | Feb. 28, 2021USD ($) | Feb. 28, 2021CAD ($) | Feb. 28, 2021GBP (£) | Feb. 28, 2021AUD ($) |
Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | $ 2,918 | $ 0 | ||||||||
Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 33 | ||||||||
Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 2,271 | 9,363 | ||||||||
Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,335 | 7,128 | ||||||||
Designated as hedging instruments | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 2,918 | 0 | ||||||||
Designated as hedging instruments | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 33 | ||||||||
Designated as hedging instruments | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,559 | 9,363 | ||||||||
Designated as hedging instruments | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,335 | 5,555 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Euros | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | € | € 17,000 | € 39,000 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Euros | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 1,224 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Euros | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Euros | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 1,851 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Euros | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Canadian dollars | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | $ 40,000 | $ 34,000 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Canadian dollars | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 475 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Canadian dollars | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 33 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Canadian dollars | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 1,061 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Canadian dollars | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Pounds | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | £ | £ 24,000 | £ 34,500 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Pounds | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 1,219 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Pounds | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Pounds | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 2,026 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Pounds | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 21 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Australian dollars | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | $ 5,700 | $ 4,000 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Australian dollars | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Australian dollars | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Australian dollars | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 113 | 18 | ||||||||
Designated as hedging instruments | Foreign currency derivatives | Sell | Australian dollars | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 0 | ||||||||
Designated as hedging instruments | Interest rate swaps | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | 125,000 | 225,000 | ||||||||
Designated as hedging instruments | Interest rate swaps | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Designated as hedging instruments | Interest rate swaps | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
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 | 1,446 | 4,407 | ||||||||
Designated as hedging instruments | Interest rate swaps | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 1,335 | 5,534 | ||||||||
Not designated under hedge accounting | Prepaid expenses and other current assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Not designated under hedge accounting | Other assets | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative assets | 0 | 0 | ||||||||
Not designated under hedge accounting | Accrued expenses and other current liabilities | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 712 | 0 | ||||||||
Not designated under hedge accounting | Other liabilities, non-current | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Derivative liabilities | 0 | 1,573 | ||||||||
Not designated under hedge accounting | Cross currency debt swaps | Euros | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | € | € 6,000 | € 6,000 | ||||||||
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 | 0 | 0 | ||||||||
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 | 0 | ||||||||
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 | 244 | 0 | ||||||||
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 | 817 | ||||||||
Not designated under hedge accounting | Cross currency debt swaps | Pounds | ||||||||||
Fair values of derivative instruments in the consolidated balance sheet | ||||||||||
Notional Amount | £ | £ 4,500 | £ 4,500 | ||||||||
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 | 0 | 0 | ||||||||
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 | 0 | ||||||||
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 | 468 | 0 | ||||||||
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 | $ 756 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative Tax Effect (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in AOCI | $ 7,912 | $ (11,605) |
Gain (Loss) Reclassified from AOCI into Income | (6,997) | (6,013) |
Gain (Loss) Recognized in Income | 858 | (1,360) |
Foreign currency derivatives | Cash flow hedges | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in AOCI | 5,509 | (7,932) |
Foreign currency derivatives | Cash flow hedges | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Reclassified from AOCI into Income | (2,240) | (1,564) |
Interest rate swaps | Cash flow hedges | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in AOCI | 2,403 | (3,673) |
Interest rate swaps | Cash flow hedges | Interest expense | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Reclassified from AOCI into Income | (4,757) | (4,449) |
Cross currency debt swaps | SG&A | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in Income | 861 | (1,432) |
Cross currency debt swaps | Interest expense | ||
Pre-tax effect of derivative instruments | ||
Gain (Loss) Recognized in Income | $ (3) | $ 72 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 1,239,347 | $ 1,161,723 |
Other comprehensive loss before reclassification | 7,912 | (11,605) |
Amounts reclassified out of AOCI | 6,997 | 6,013 |
Tax effects | (3,051) | 941 |
Total other comprehensive income (loss), net of tax | 11,858 | (4,651) |
Ending balance | 1,327,339 | 1,239,347 |
Total | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (11,656) | (7,005) |
Ending balance | 202 | (11,656) |
Interest Rate Swaps | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (7,576) | (8,199) |
Other comprehensive loss before reclassification | 2,403 | (3,673) |
Amounts reclassified out of AOCI | 4,757 | 4,449 |
Tax effects | (1,710) | (153) |
Total other comprehensive income (loss), net of tax | 5,450 | 623 |
Ending balance | (2,126) | (7,576) |
Foreign Currency Contracts | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (4,080) | 1,194 |
Other comprehensive loss before reclassification | 5,509 | (7,932) |
Amounts reclassified out of AOCI | 2,240 | 1,564 |
Tax effects | (1,341) | 1,094 |
Total other comprehensive income (loss), net of tax | 6,408 | (5,274) |
Ending balance | $ 2,328 | $ (4,080) |
Segment and Geographic Inform_3
Segment and Geographic Information - Reporting Information by Segment (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Segment information | |||
Sales revenue, net | $ 2,223,355,000 | $ 2,098,799,000 | $ 1,707,432,000 |
Asset impairment charges | 0 | 8,452,000 | 41,000,000 |
Restructuring charges | 380,000 | 350,000 | 3,313,000 |
Operating income | 272,550,000 | 281,488,000 | 178,251,000 |
Capital and intangible asset expenditures | 78,039,000 | 98,668,000 | 17,759,000 |
Depreciation and amortization | 35,829,000 | 37,718,000 | 37,409,000 |
Home & Outdoor | |||
Segment information | |||
Sales revenue, net | 865,844,000 | 727,354,000 | 640,965,000 |
Asset impairment charges | 0 | 0 | |
Restructuring charges | 369,000 | 249,000 | 1,351,000 |
Operating income | 134,925,000 | 122,487,000 | 123,135,000 |
Capital and intangible asset expenditures | 67,732,000 | 10,369,000 | 10,602,000 |
Depreciation and amortization | 12,112,000 | 9,333,000 | 7,298,000 |
Health & Wellness | |||
Segment information | |||
Sales revenue, net | 777,080,000 | 890,191,000 | 685,397,000 |
Asset impairment charges | 0 | 0 | |
Restructuring charges | 0 | (6,000) | 93,000 |
Operating income | 39,217,000 | 94,103,000 | 68,166,000 |
Capital and intangible asset expenditures | 7,688,000 | 12,854,000 | 5,853,000 |
Depreciation and amortization | 10,691,000 | 15,453,000 | 16,113,000 |
Beauty | |||
Segment information | |||
Sales revenue, net | 580,431,000 | 481,254,000 | 381,070,000 |
Asset impairment charges | 8,452,000 | 41,000,000 | |
Restructuring charges | 11,000 | 107,000 | 1,869,000 |
Operating income | 98,408,000 | 64,898,000 | (13,050,000) |
Capital and intangible asset expenditures | 2,619,000 | 75,445,000 | 1,304,000 |
Depreciation and amortization | $ 13,026,000 | $ 12,932,000 | $ 13,998,000 |
Segment and Geographic Inform_4
Segment and Geographic Information - Net Sales Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Segment information | |||
Sales revenue, net | $ 2,223,355 | $ 2,098,799 | $ 1,707,432 |
U.S. | |||
Segment information | |||
Sales revenue, net | 1,738,099 | 1,666,324 | 1,357,345 |
Canada | |||
Segment information | |||
Sales revenue, net | 101,617 | 92,150 | 71,417 |
EMEA | |||
Segment information | |||
Sales revenue, net | 214,583 | 183,398 | 138,858 |
Asia Pacific | |||
Segment information | |||
Sales revenue, net | 109,750 | 118,000 | 99,378 |
Latin America | |||
Segment information | |||
Sales revenue, net | $ 59,306 | $ 38,927 | $ 40,434 |
Geographic concentration | Revenue from Contract with Customer | U.S. | |||
Segment information | |||
Concentration risk percentage | 78.20% | 79.40% | 79.50% |
Geographic concentration | Revenue from Contract with Customer | Canada | |||
Segment information | |||
Concentration risk percentage | 4.60% | 4.40% | 4.20% |
Geographic concentration | Revenue from Contract with Customer | EMEA | |||
Segment information | |||
Concentration risk percentage | 9.60% | 8.70% | 8.10% |
Geographic concentration | Revenue from Contract with Customer | Asia Pacific | |||
Segment information | |||
Concentration risk percentage | 4.90% | 5.60% | 5.80% |
Geographic concentration | Revenue from Contract with Customer | Latin America | |||
Segment information | |||
Concentration risk percentage | 2.70% | 1.90% | 2.40% |
Geographic concentration | Revenue from Contract with Customer | US, Canada, EMEA, Asia Pacific and Latin America | |||
Segment information | |||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Segment and Geographic Inform_5
Segment and Geographic Information - Narrative (Details) - segment | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenue, Major Customer [Line Items] | |||
Number of operating segments | 3 | ||
Revenue from Contract with Customer | Customer concentration risk | First largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 19.00% | 20.00% | 18.00% |
Revenue from Contract with Customer | Customer concentration risk | Second largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 11.00% | 13.00% | 14.00% |
Revenue from Contract with Customer | Customer concentration risk | Third largest customer | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 11.00% | 11.00% | 9.00% |
Revenue from Contract with Customer | Customer concentration risk | Five top customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 49.00% | 52.00% | 50.00% |
Segment and Geographic Inform_6
Segment and Geographic Information - Domestic and International Long-Lived Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | $ 243,137 | $ 169,068 | $ 164,752 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 211,484 | 145,798 | 147,806 |
Barbados | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 22,486 | 18,254 | 11,969 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | 9,167 | 5,016 | 4,977 |
Subtotal | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Domestic and international long-lived assets | $ 31,653 | $ 23,270 | $ 16,946 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
May 31, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2018 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||||
Income tax expense | $ 36,202,000 | $ 15,484,000 | $ 13,607,000 | |||
Foreign earnings repatriated | $ 48,300,000 | |||||
Undistributed earnings of foreign subsidiaries | 38,400,000 | |||||
U S tax liability for income generated in Macau | 0 | |||||
Net decrease in valuation allowance | 3,300,000 | |||||
Unrecognized tax benefits that would affect effective tax rate if recognized | 5,600,000 | |||||
Liability for tax-related interest and penalties included in unrecognized tax benefits | 3,200,000 | 2,900,000 | ||||
Tax-related interest and penalties expense included in provisions for income tax | $ 300,000 | $ 2,900,000 | ||||
Tax Year 2018 | ||||||
Income Tax Contingency [Line Items] | ||||||
One-time income tax benefit | $ 17,900,000 | |||||
Income tax expense | $ 9,400,000 | |||||
COVID-19 | ||||||
Income Tax Contingency [Line Items] | ||||||
One-time income tax benefit, CARES Act | $ 9,400,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax and Deferred Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Components of income (loss) before income tax expense | |||
U.S. | $ 63,653 | $ 48,693 | $ 40,146 |
Non-U.S. | 196,313 | 220,737 | 125,794 |
Income before income tax | 259,966 | 269,430 | 165,940 |
Current: | |||
U.S. federal | 20,907 | 4,340 | 12,551 |
State | 6,283 | 5,892 | 4,181 |
Non-U.S. | 17,883 | 9,652 | 2,571 |
Total current tax expense (benefit) | 45,073 | 19,884 | 19,303 |
Deferred: | |||
U.S. federal | (5,269) | (3,828) | (4,376) |
State | (1,766) | (1,795) | (413) |
Non-U.S. | (1,836) | 1,223 | (907) |
Total deferred tax expense (benefit) | (8,871) | (4,400) | (5,696) |
Total | $ 36,202 | $ 15,484 | $ 13,607 |
Effective income tax rate reconciliation | |||
Effective income tax rate at the U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Impact of U.S. state income taxes | 1.40% | 0.60% | 1.60% |
Effect of statutory tax rate in Macau | 0.10% | (0.70%) | (13.60%) |
Effect of statutory tax rate in Barbados | (11.00%) | (15.40%) | (5.50%) |
Effect of statutory tax rate in Switzerland | (1.20%) | (1.50%) | (0.40%) |
Effect of income from other non-U.S. operations subject to varying rates | 1.20% | 1.10% | 2.30% |
Effect of foreign exchange fluctuations | 0.50% | (0.10%) | 0.70% |
Effect of asset impairment charges | 0.00% | 0.30% | 2.40% |
Effect of U.S. tax reform | 0.00% | (3.50%) | 0.00% |
Effect of uncertain tax positions | 0.60% | 3.20% | (1.70%) |
Effect of non-deductible executive compensation | 1.10% | 1.00% | 1.40% |
Effect of base erosion and anti-abuse tax | 0.00% | (0.60%) | 0.00% |
Other items | 0.20% | 0.30% | 0.00% |
Effective income tax rate | 13.90% | 5.70% | 8.20% |
Deferred tax assets, gross: | |||
Operating loss carryforwards | $ 13,195 | $ 14,785 | |
Accounts receivable | 11,144 | 8,905 | |
Inventories | 19,619 | 12,432 | |
Operating lease liabilities | 11,494 | 10,388 | |
Accrued expenses and other | 10,364 | 10,731 | |
Total gross deferred tax assets | 65,816 | 57,241 | |
Valuation allowance | (11,673) | (15,021) | |
Deferred tax liabilities: | |||
Operating lease assets | (8,635) | (7,500) | |
Depreciation | (10,589) | (11,828) | |
Amortization | (52,873) | (6,879) | |
Deferred tax liabilities, net | $ (17,954) | ||
Deferred tax assets, net | $ 16,013 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Deferred Tax Assets | ||
Subtotal | $ 13,195 | $ 14,785 |
Less portion of valuation allowance established for operating loss carryforwards | (9,522) | |
Total | 3,673 | |
Operating Loss Carryforward | ||
Subtotal | 66,476 | |
State | ||
Deferred Tax Assets | ||
Operating loss carryforwards with definite carryover periods | 732 | |
Operating Loss Carryforward | ||
Required future taxable income - operating loss carryforwards with definite carryover periods | 18,504 | |
Non-U.S. | ||
Deferred Tax Assets | ||
Operating loss carryforwards with indefinite carryover periods | 5,044 | |
Operating loss carryforwards with definite carryover periods | 4,483 | |
Operating Loss Carryforward | ||
Required future taxable income - operating loss carryforwards with indefinite carryover periods | 15,921 | |
Required future taxable income - operating loss carryforwards with definite carryover periods | 18,072 | |
Domestic Tax Authority | ||
Deferred Tax Assets | ||
Operating loss carryforwards with indefinite carryover periods | $ 2,936 | |
Operating Loss Carryforward | ||
Required future taxable income - operating loss carryforwards with indefinite carryover periods | $ 13,979 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Unrecognized Tax Benefits | ||
Total unrecognized tax benefits, beginning balance | $ 5,436 | $ 113 |
Tax positions taken during the current period | 949 | 1,542 |
Changes in tax positions taken during a prior period | 1,409 | 4,280 |
Impact of foreign currency re-measurement | 50 | 0 |
Settlements | (2,221) | (499) |
Total unrecognized tax benefits, ending balance | 5,623 | 5,436 |
Less current unrecognized tax benefits | 0 | 0 |
Non-current unrecognized tax benefits | $ 5,623 | $ 5,436 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Weighted average diluted securities (in shares) | |||
Weighted average shares outstanding, basic (in shares) | 24,142 | 24,985 | 25,118 |
Incremental shares from share-based compensation arrangements (in shares) | 268 | 211 | 204 |
Weighted average shares outstanding, diluted (in shares) | 24,410 | 25,196 | 25,322 |
Anti-dilutive securities (in shares) | 17 | 112 | 197 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Apr. 22, 2022 | Apr. 20, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Subsequent Event [Line Items] | |||||
Purchase consideration, net of cash acquired | $ 410,880 | $ 0 | $ 255,861 | ||
Remaining borrowing capacity on line of credit | 417,800 | ||||
Proceeds from line of credit | $ 998,200 | $ 937,400 | $ 771,300 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Remaining borrowing capacity on line of credit | $ 192,800 | ||||
Subsequent Event | Recipe Products Ltd. (Curlsmith Acquisition) | |||||
Subsequent Event [Line Items] | |||||
Purchase consideration, net of cash acquired | $ 150,000 | ||||
Proceeds from line of credit | $ 150,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Dec. 29, 2021 | |
Osprey Packs, Inc. | ||||
Valuation and Qualifying Accounts | ||||
Allowance for credit losses | $ (11,800) | |||
Allowance for credit losses | ||||
Valuation and Qualifying Accounts | ||||
Beginning Balance | $ 998 | $ 1,461 | $ 2,032 | |
Additions | 312 | 2,093 | 529 | |
Deductions | 467 | 2,556 | 1,100 | |
Ending Balance | 843 | 998 | 1,461 | |
Deferred tax asset valuation allowance | ||||
Valuation and Qualifying Accounts | ||||
Beginning Balance | 15,021 | 14,073 | 17,086 | |
Additions | 0 | 948 | 0 | |
Deductions | 3,348 | 0 | 3,013 | |
Ending Balance | $ 11,673 | $ 15,021 | $ 14,073 |