Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended March 31, 2016



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	111,747		$	643,330		$	50,672		$	(2,661	)	$	803,088
Other revenues	—			347			3,116			1,776			(2,080		)	3,159
Total revenues	—			112,094			646,446			52,448			(4,741		)	806,247

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			45,763			280,169			18,459			(5,355		)	339,036
Gross profit	—			66,331			366,277			33,989			614			467,211

Operating Expenses
Advertising and promotion	—			9,465			90,353			10,984			—			110,802
General and administrative	5,737			9,098			51,198			6,385			—			72,418
Depreciation and amortization	4,050			594			18,617			415			—			23,676
Total operating expenses	9,787			19,157			160,168			17,784			—			206,896
Operating income (loss)	(9,787		)	47,174			206,109			16,205			614			260,315

Other (income) expense
Interest income	(48,342		)	(85,882		)	(5,087		)	(531		)	139,680			(162		)
Interest expense	34,553			84,822			100,540			5,087			(139,680		)	85,322
Loss on extinguishment of debt	—			17,970			—			—			—			17,970
Equity in (income) loss of subsidiaries	(98,803		)	(70,953		)	(8,564		)	—			178,320			—
Total other (income) expense	(112,592		)	(54,043		)	86,889			4,556			178,320			103,130
Income (loss) before income taxes	102,805			101,217			119,220			11,649			(177,706		)	157,185
Provision for income taxes	2,898			11,016			40,279			3,085			—			57,278
Net income (loss)	$	99,907		$	90,201		$	78,941		$	8,564		$	(177,706	)	$	99,907

Comprehensive income, net of tax:
Currency translation adjustments	(113		)	(113		)	(113		)	(113		)	339			(113		)
Total other comprehensive income (loss)	(113		)	(113		)	(113		)	(113		)	339			(113		)
Comprehensive income (loss)	$	99,794		$	90,088		$	78,828		$	8,451		$	(177,367	)	$	99,794

Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended March 31, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	106,439		$	555,388		$	51,630		$	(3,387	)	$	710,070
Other revenues	—			385			4,452			1,497			(1,781		)	4,553
Total revenues	—			106,824			559,840			53,127			(5,168		)	714,623

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			39,637			254,670			19,127			(5,034		)	308,400
Gross profit	—			67,187			305,170			34,000			(134		)	406,223

Operating Expenses
Advertising and promotion	—			8,828			79,944			10,879			—			99,651
General and administrative	4,571			9,090			55,209			12,403			—			81,273
Depreciation and amortization	3,381			592			12,752			1,015			—			17,740
Total operating expenses	7,952			18,510			147,905			24,297			—			198,664
Operating income (loss)	(7,952		)	48,677			157,265			9,703			(134		)	207,559

Other (income) expense
Interest income	(48,543		)	(73,755		)	(5,373		)	(456		)	128,035			(92		)
Interest expense	34,198			81,326			88,464			5,373			(128,035		)	81,326
Gain on sale of asset	—			—			(1,133		)	—			—			(1,133		)
Equity in (income) loss of subsidiaries	(76,383		)	(51,573		)	(2,013		)	—			129,969			—
Total other expense (income)	(90,728		)	(44,002		)	79,945			4,917			129,969			80,101
Income (loss) before income taxes	82,776			92,679			77,320			4,786			(130,103		)	127,458
Provision for income taxes	4,516			14,798			27,111			2,773			—			49,198
Net income (loss)	$	78,260		$	77,881		$	50,209		$	2,013		$	(130,103	)	$	78,260

Comprehensive income, net of tax:
Currency translation adjustments	(24,151		)	(24,151		)	(24,151		)	(24,151		)	72,453			(24,151		)
Total other comprehensive income (loss)	(24,151		)	(24,151		)	(24,151		)	(24,151		)	72,453			(24,151		)
Comprehensive income (loss)	$	54,109		$	53,730		$	26,058		$	(22,138	)	$	(57,650	)	$	54,109

Condensed Consolidating Statement of Income and Comprehensive Income

Year Ended March 31, 2014



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	97,509		$	474,338		$	23,286		$	(2,679	)	$	592,454
Other revenues	—			295			4,886			1,639			(1,893		)	4,927
Total revenues	—			97,804			479,224			24,925			(4,572		)	597,381

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			37,272			218,692			9,428			(3,562		)	261,830
Gross profit	—			60,532			260,532			15,497			(1,010		)	335,551

Operating Expenses
Advertising and promotion	—			10,223			69,583			5,162			—			84,968
General and administrative	3,140			8,026			34,469			2,846			—			48,481
Depreciation and amortization	2,994			577			9,715			200			—			13,486
Total operating expenses	6,134			18,826			113,767			8,208			—			146,935
Operating Income (loss)	(6,134		)	41,706			146,765			7,289			(1,010		)	188,616

Other (income) expense
Interest income	(48,730		)	(57,446		)	(2,327		)	(382		)	108,825			(60		)
Interest expense	34,436			68,642			72,064			2,325			(108,825		)	68,642
Loss on extinguishment of debt	—			18,286			—			—			—			18,286
Equity in (income) loss of subsidiaries	(66,739		)	(53,836		)	(4,052		)	—			124,627			—
Total other expense (income)	(81,033		)	(24,354		)	65,685			1,943			124,627			86,868
Income (loss) before income taxes	74,899			66,060			81,080			5,346			(125,637		)	101,748
Provision for income taxes	2,284			3,500			22,055			1,294			—			29,133
Net income (loss)	$	72,615		$	62,560		$	59,025		$	4,052		$	(125,637	)	$	72,615

Comprehensive income, net of tax:
Currency translation adjustments	843			843			843			843			(2,529		)	843
Total other comprehensive income (loss)	843			843			843			843			(2,529		)	843
Comprehensive income (loss)	$	73,458		$	63,403		$	59,868		$	4,895		$	(128,166	)	$	73,458

Condensed Consolidating Balance Sheet

March 31, 2016



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	4,440		$	—		$	2,899		$	19,891		$	—		$	27,230
Accounts receivable, net	—			12,025			74,446			8,776			—			95,247
Inventories	—			9,411			72,296			10,088			(532		)	91,263
Deferred income tax assets	316			681			8,293			818			—			10,108
Prepaid expenses and other current assets	15,311			257			8,379			1,218			—			25,165
Total current assets	20,067			22,374			166,313			40,791			(532		)	249,013

Property and equipment, net	9,166			210			5,528			636			—			15,540
Goodwill	—			66,007			271,409			22,775			—			360,191
Intangible assets, net	—			191,789			2,042,640			88,294			—			2,322,723
Other long-term assets	—			1,324			—			—			—			1,324
Intercompany receivables	1,457,011			2,703,192			1,083,488			10,738			(5,254,429		)	—
Investment in subsidiary	1,641,477			1,527,718			81,545						(3,250,740		)	—
Total Assets	$	3,127,721		$	4,512,614		$	3,650,923		$	163,234		$	(8,505,701	)	$	2,948,791

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	2,914		$	7,643		$	24,437		$	3,302		$	—		$	38,296
Accrued interest payable	—			8,664			—			—			—			8,664
Other accrued liabilities	12,285			1,714			38,734			6,991			—			59,724
Total current liabilities	15,199			18,021			63,171			10,293			—			106,684

Long-term debt
Principal amount	—			1,652,500			—			—			—			1,652,500
Less unamortized debt costs	—			(27,191		)	—			—			—			(27,191		)
Long-term debt, net	—			1,625,309			—			—			—			1,625,309

Deferred income tax liabilities	—			60,317			408,893			412			—			469,622
Other long-term liabilities	—			—			2,682			158			—			2,840
Intercompany payables	2,368,186			1,241,084			1,570,265			74,894			(5,254,429		)	—
Total Liabilities	2,383,385			2,944,731			2,045,011			85,757			(5,254,429		)	2,204,455

Stockholders' Equity
Common stock	530			—			—			—			—			530
Additional paid-in capital	445,182			1,280,947			1,359,921			78,774			(2,719,642		)	445,182
Treasury stock, at cost	(5,163		)	—			—			—			—			(5,163		)
Accumulated other comprehensive income (loss), net of tax	(23,525		)	(23,525		)	(23,525		)	(23,525		)	70,575			(23,525		)
Retained earnings (accumulated deficit)	327,312			310,461			269,516			22,228			(602,205		)	327,312
Total Stockholders' Equity	744,336			1,567,883			1,605,912			77,477			(3,251,272		)	744,336
Total Liabilities and Stockholders' Equity	$	3,127,721		$	4,512,614		$	3,650,923		$	163,234		$	(8,505,701	)	$	2,948,791

Condensed Consolidating Balance Sheet

March 31, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	11,387		$	—		$	—		$	9,931		$	—		$	21,318
Accounts receivable, net	—			14,539			66,523			6,796			—			87,858
Inventories	—			8,667			60,297			6,182			(1,146		)	74,000
Deferred income tax assets	452			674			6,497			474			—			8,097
Prepaid expenses and other current assets	5,731			141			3,804			758			—			10,434
Total current assets	17,570			24,021			137,121			24,141			(1,146		)	201,707

Property and equipment, net	10,726			175			2,207			636			—			13,744
Goodwill	—			66,007			204,205			20,439			—			290,651
Intangible assets, net	—			192,325			1,854,798			87,577			—			2,134,700
Other long-term assets	—			1,165			—			—			—			1,165
Intercompany receivables	1,210,017			2,607,054			668,169			8,764			(4,494,004		)	—
Investment in subsidiary	1,545,575			1,228,535			65,564			—			(2,839,674		)	—
Total Assets	$	2,783,888		$	4,119,282		$	2,932,064		$	141,557		$	(7,334,824	)	$	2,641,967

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	1,959		$	6,829		$	32,898		$	4,429		$	—		$	46,115
Accrued interest payable	—			11,974			—			—			—			11,974
Other accrued liabilities	10,378			1,153			25,795			3,622			—			40,948
Total current liabilities	12,337			19,956			58,693			8,051			—			99,037

Long-term debt
Principal amount	—			1,593,600			—			—			—			1,593,600
Less unamortized debt costs	—			(32,327		)	—			—			—			(32,327		)
Long-term debt, net	—			1,561,273			—			—			—			1,561,273

Deferred income tax liabilities	—			59,038			292,504			27			—			351,569
Other long-term liabilities	—			—			2,293			171			—			2,464
Intercompany payables	2,143,927			1,001,219			1,279,833			69,025			(4,494,004		)	—
Total Liabilities	2,156,264			2,641,486			1,633,323			77,274			(4,494,004		)	2,014,343

Stockholders' Equity
Common Stock	525			—			—			—			—			525
Additional paid-in capital	426,584			1,280,948			1,131,578			74,031			(2,486,557		)	426,584
Treasury stock, at cost	(3,478		)	—			—			—			—			(3,478		)
Accumulated other comprehensive income (loss), net of tax	(23,412		)	(23,412		)	(23,412		)	(23,412		)	70,236			(23,412		)
Retained earnings (accumulated deficit)	227,405			220,260			190,575			13,664			(424,499		)	227,405
Total Stockholders' Equity	627,624			1,477,796			1,298,741			64,283			(2,840,820		)	627,624
Total Liabilities and Stockholders’ Equity	$	2,783,888		$	4,119,282		$	2,932,064		$	141,557		$	(7,334,824	)	$	2,641,967

Condensed Consolidating Statement of Cash Flows

Year Ended March 31, 2016



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	99,907		$	90,201		$	78,941		$	8,564		$	(177,706	)	$	99,907
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,050			594			18,617			415			—			23,676
Deferred income taxes	136			1,272			45,070			(326		)	—			46,152
Long term income taxes payable	—			—			(332		)	—			—			(332		)
Amortization of debt origination costs	—			8,994			—			—			—			8,994
Stock-based compensation costs	9,794			—			—			160			—			9,954
Loss on extinguishment of debt	—			17,970			—			—			—			17,970
Premium payment on 2012 Senior Notes	—			(10,158		)	—			—			—			(10,158		)
(Gain) loss on sale or disposal of property and equipment	—			—			1			(36		)	—			(35		)
Equity in income of subsidiaries	(98,803		)	(70,953		)	(8,564		)	—			178,320			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			2,514			(388		)	(302		)	—			1,824
Inventories	—			(744		)	213			(1,860		)	(614		)	(3,005		)
Prepaid expenses and other current assets	(9,580		)	(116		)	1,977			(202		)	—			(7,921		)
Accounts payable	929			814			(11,284		)	(1,807		)	—			(11,348		)
Accrued liabilities	1,907			(2,749		)	(1,943		)	1,457			—			(1,328		)
Net cash provided by operating activities	8,340			37,639			122,308			6,063			—			174,350

Investing Activities
Purchases of property and equipment	(2,460		)	(93		)	(521		)	(494		)	—			(3,568		)
Proceeds from the sale of property and equipment	—			—			—			344			—			344
Proceeds from Insight Pharmaceuticals working capital arbitration settlement	—			—			7,237			—			—			7,237
Acquisition of DenTek, less cash acquired	—			—			(226,984		)	—			—			(226,984		)
Intercompany activity, net	—			(228,343		)	228,343			—			—			—
Net cash (used in) provided by investing activities	(2,460		)	(228,436		)	8,075			(150		)	—			(222,971		)

Financing Activities
Proceeds from issuance of 2016 Senior Notes	—			350,000			—			—			—			350,000
Repayment of 2012 Senior Notes	—			(250,000		)	—			—			—			(250,000		)
Borrowings under Bridge term loans	—			80,000			—			—			—			80,000
Repayments under Bridge term loans	—			(80,000		)	—			—			—			(80,000		)
Term loan repayments	—			(60,000		)	—			—			—			(60,000		)
Borrowings under revolving credit agreement	—			115,000			—			—			—			115,000
Repayments under revolving credit agreement	—			(96,100		)	—			—			—			(96,100		)
Payments of debt origination costs	—			(11,828		)	—			—			—			(11,828		)
Proceeds from exercise of stock options	6,689			—			—			—			—			6,689
Proceeds from restricted stock exercises	544			—			—			—			—			544
Excess tax benefits from share-based awards	1,960			—			—			—			—			1,960
Fair value of shares surrendered as payment of tax withholding	(2,229		)	—			—			—			—			(2,229		)
Intercompany activity, net	(19,791		)	143,725			(127,484		)	3,550			—			—
Net cash provided by (used in) financing activities	(12,827		)	190,797			(127,484		)	3,550			—			54,036

Effects of exchange rate changes on cash and cash equivalents	—			—			—			497			—			497
Increase (decrease) in cash and cash equivalents	(6,947		)	—			2,899			9,960			—			5,912
Cash and cash equivalents - beginning of year	11,387			—			—			9,931			—			21,318
Cash and cash equivalents - end of year	$	4,440		$	—		$	2,899		$	19,891		$	—		$	27,230

Condensed Consolidating Statement of Cash Flows

Year Ended March 31, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	78,260		$	77,881		$	50,209		$	2,013		$	(130,103	)	$	78,260
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,381			592			12,752			1,015			—			17,740
Gain on sale of asset	—			—			(1,133		)	—			—			(1,133		)
Deferred income taxes	(192		)	2,462			26,795			(143		)	—			28,922
Long-term income taxes payable	—			—			2,294			—			—			2,294
Amortization of debt origination costs	—			8,821			—			—			—			8,821
Stock-based compensation costs	6,918			—			—			—			—			6,918
Lease termination costs	—			—			785			—			—			785
Loss on sale or disposal of equipment	—			—			—			321			—			321
Equity in income of subsidiaries	(76,383		)	(51,573		)	(2,013		)	—			129,969			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	473			(294		)	5,146			(3,717		)	—			1,608
Inventories	—			5,690			8,981			555			134			15,360
Prepaid expenses and other current assets	2,273			(28		)	2,631			(212		)	—			4,664
Accounts payable	(2,457		)	(829		)	(16,734		)	2,383			—			(17,637		)
Accrued liabilities	2,650			1,384			3,560			1,738			—			9,332
Net cash provided by operating activities	14,923			44,106			93,273			3,953			—			156,255

Investing Activities
Purchases of property and equipment	(5,029		)	(119		)	(739		)	(214		)	—			(6,101		)
Proceeds from sale of business	—			—			18,500			—			—			18,500
Proceeds from sale of asset	—			—			10,000			—			—			10,000
Acquisition of Insight Pharmaceuticals, less cash acquired	—			—			(749,666		)	—			—			(749,666		)
Acquisition of the Hydralyte brand	—			—			—			(77,991		)	—			(77,991		)
Intercompany activity, net	—			(809,157		)	731,166			77,991			—			—
Net cash (used in) provided by investing activities	(5,029		)	(809,276		)	9,261			(214		)	—			(805,258		)

Financing Activities
Term loan borrowings	—			720,000			—			—			—			720,000
Term loan repayments	—			(130,000		)	—			—			—			(130,000		)
Borrowings under revolving credit agreement	—			124,600			—			—			—			124,600
Repayments under revolving credit agreement	—			(58,500		)	—			—			—			(58,500		)
Payments of debt origination costs	—			(16,072		)	—			—			—			(16,072		)
Proceeds from exercise of stock options	3,954			—			—			—			—			3,954
Proceeds from restricted stock exercises	57			—			—			—			—			57
Excess tax benefits from share-based awards	1,330			—			—			—			—			1,330
Fair value of shares surrendered as payment of tax withholding	(2,104		)	—			—			—			—			(2,104		)
Intercompany activity, net	(26,388		)	125,142			(102,534		)	3,780			—			—
Net cash provided by (used in) financing activities	(23,151		)	765,170			(102,534		)	3,780			—			643,265

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(1,275		)	—			(1,275		)
(Decrease) Increase in cash and cash equivalents	(13,257		)	—			—			6,244			—			(7,013		)
Cash and cash equivalents - beginning of year	24,644			—			—			3,687			—			28,331
Cash and cash equivalents - end of year	$	11,387		$	—		$	—		$	9,931		$	—		$	21,318

Condensed Consolidating Statement of Cash Flows

Year Ended March 31, 2014



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	72,615		$	62,560		$	59,025		$	4,052		$	(125,637	)	$	72,615
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	2,994			577			9,715			200			—			13,486
Deferred income taxes	(42		)	1,466			17,765			(177		)	—			19,012
Amortization of debt origination costs	—			10,512			—			—			—			10,512
Stock-based compensation costs	5,146			—			—			—			—			5,146
Loss on extinguishment of debt	—			18,286			—			—			—			18,286
Premium payment on 2010 Senior Notes	—			(15,527		)	—			—			—			(15,527		)
Gain on disposal of equipment	—			—			(3		)	—			—			(3		)
Equity in income of subsidiaries	(66,739		)	(53,836		)	(4,052		)	—			124,627			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(452		)	(370		)	12,460			(1,903		)	—			9,735
Inventories	—			(3,193		)	2,165			(2,832		)	1,010			(2,850		)
Prepaid expenses and other current assets	(3,062		)	(20		)	711			241			—			(2,130		)
Accounts payable	1,815			(2,942		)	(4,142		)	628			—			(4,641		)
Accrued liabilities	(4,966		)	(3,835		)	(2,664		)	(594		)	—			(12,059		)
Net cash provided by (used in) operating activities	7,309			13,678			90,980			(385		)	—			111,582

Investing Activities
Purchases of property and equipment	(2,351		)	(119		)	(108		)	(186		)	—			(2,764		)
Proceeds from sale of property and equipment	—			—			3			—			—			3
Acquisition of Care Pharmaceuticals, less cash acquired	—			—			—			(55,215		)	—			(55,215		)
Intercompany activity, net	—			(55,215		)	—			55,215			—			—
Net cash used in investing activities	(2,351		)	(55,334		)	(105		)	(186		)	—			(57,976		)

Financing Activities
Proceeds from issuance of 2013 Senior Notes	—			400,000			—			—			—			400,000
Repayment of 2010 Senior Notes	—			(250,000		)	—			—			—			(250,000		)
Term loan repayments	—			(157,500		)	—			—			—			(157,500		)
Borrowings under revolving credit agreement	—			50,000			—			—			—			50,000
Repayment under revolving credit agreement	—			(83,000		)	—			—			—			(83,000		)
Payments of debt origination costs	—			(7,466		)	—			—			—			(7,466		)
Proceeds from exercise of stock options	5,907			—			—			—			—			5,907
Excess tax benefits from share-based awards	1,650			—			—			—			—			1,650
Fair value of shares surrendered as payment of tax withholding	(744		)	—			—			—			—			(744		)
Intercompany activity, net	(1,847		)	89,622			(90,875		)	3,100			—			—
Net cash (used in) provided by financing activities	4,966			41,656			(90,875		)	3,100			—			(41,153		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			208			—			208
Increase in cash and cash equivalents	9,924			—			—			2,737			—			12,661
Cash and cash equivalents - beginning of year	14,720			—			—			950			—			15,670
Cash and cash equivalents - end of year	$	24,644		$	—		$	—		$	3,687		$	—		$	28,331