Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended September 30, 2016



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	26,013		$	171,791		$	17,358		$	(145	)	$	215,017
Other revenues	—			72			33			494			(564		)	35
Total revenues	—			26,085			171,824			17,852			(709		)	215,052

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			11,066			74,380			6,478			(837		)	91,087
Gross profit	—			15,019			97,444			11,374			128			123,965

Operating Expenses
Advertising and promotion	—			3,751			21,619			3,222			—			28,592
General and administrative	1,801			1,762			13,302			1,930			—			18,795
Depreciation and amortization	832			151			4,917			116			—			6,016
(Gain) loss on sale of assets				—			(496		)	—			—			(496		)
Total operating expenses	2,633			5,664			39,342			5,268			—			52,907
Operating income (loss)	(2,633		)	9,355			58,102			6,106			128			71,058

Other (income) expense
Interest income	(12,077		)	(21,459		)	(1,292		)	(156		)	34,938			(46		)
Interest expense	8,502			20,882			25,138			1,292			(34,938		)	20,876
Equity in (income) loss of subsidiaries	(32,028		)	(27,020		)	(3,601		)	—			62,649			—
Total other expense (income)	(35,603		)	(27,597		)	20,245			1,136			62,649			20,830
Income (loss) before income taxes	32,970			36,952			37,857			4,970			(62,521		)	50,228
Provision for income taxes	775			3,526			12,363			1,369			—			18,033
Net income (loss)	$	32,195		$	33,426		$	25,494		$	3,601		$	(62,521	)	$	32,195

Comprehensive (loss) income, net of tax:
Currency translation adjustments	2,703			2,703			2,703			2,703			(8,109		)	2,703
Total other comprehensive (loss) income	2,703			2,703			2,703			2,703			(8,109		)	2,703
Comprehensive (loss) income	$	34,898		$	36,129		$	28,197		$	6,304		$	(70,630	)	$	34,898

Condensed Consolidating Statements of Income and Comprehensive Income

Six Months Ended September 30, 2016



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	53,972		$	339,996		$	31,184		$	(1,365	)	$	423,787
Other revenues	—			147			834			980			(1,121		)	840
Total revenues	—			54,119			340,830			32,164			(2,486		)	424,627

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			23,152			145,842			12,478			(2,401		)	179,071
Gross profit	—			30,967			194,988			19,686			(85		)	245,556

Operating Expenses
Advertising and promotion	—			8,496			42,423			5,308			—			56,227
General and administrative	3,738			3,950			27,616			2,948			—			38,252
Depreciation and amortization	1,752			302			10,550			244			—			12,848
Loss on sale of assets				—			54,957			—			—			54,957
Total operating expenses	5,490			12,748			135,546			8,500			—			162,284
Operating income (loss)	(5,490		)	18,219			59,442			11,186			(85		)	83,272

Other (income) expense
Interest income	(24,044		)	(42,721		)	(2,566		)	(315		)	69,543			(103		)
Interest expense	16,942			42,056			50,039			2,566			(69,543		)	42,060
Equity in (income) loss of subsidiaries	(26,290		)	(13,761		)	(6,677		)	—			46,728			—
Total other expense (income)	(33,392		)	(14,426		)	40,796			2,251			46,728			41,957
Income (loss) before income taxes	27,902			32,645			18,646			8,935			(46,813		)	41,315
Provision for income taxes	1,238			6,704			4,451			2,258			—			14,651
Net income (loss)	$	26,664		$	25,941		$	14,195		$	6,677		$	(46,813	)	$	26,664

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(3,121		)	(3,121		)	(3,121		)	(3,121		)	9,363			(3,121		)
Total other comprehensive (loss) income	(3,121		)	(3,121		)	(3,121		)	(3,121		)	9,363			(3,121		)
Comprehensive (loss) income	$	23,543		$	22,820		$	11,074		$	3,556		$	(37,450	)	$	23,543

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended September 30, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	27,957		$	164,772		$	14,005		$	(1,472	)	$	205,262
Other revenues	—			79			798			543			(617		)	803
Total revenues	—			28,036			165,570			14,548			(2,089		)	206,065

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			10,868			72,120			4,952			(1,815		)	86,125
Gross profit	—			17,168			93,450			9,596			(274		)	119,940

Operating Expenses
Advertising and promotion	—			3,204			21,933			2,756			—			27,893
General and administrative	1,199			1,300			12,912			1,051			—			16,462
Depreciation and amortization	1,030			147			4,447			63			—			5,687
Total operating expenses	2,229			4,651			39,292			3,870			—			50,042
Operating income (loss)	(2,229		)	12,517			54,158			5,726			(274		)	69,898

Other (income) expense
Interest income	(12,161		)	(21,607		)	(1,169		)	(126		)	35,030			(33		)
Interest expense	8,964			20,303			25,294			1,169			(35,030		)	20,700
Equity in (income) loss of subsidiaries	(31,441		)	(19,746		)	(3,385		)	—			54,572			—
Total other (income) expense	(34,638		)	(21,050		)	20,740			1,043			54,572			20,667
Income (loss) before income taxes	32,409			33,567			33,418			4,683			(54,846		)	49,231
Provision for income taxes	606			4,892			10,632			1,298			—			17,428
Net income (loss)	$	31,803		$	28,675		$	22,786		$	3,385		$	(54,846	)	$	31,803

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(11,079		)	(11,079		)	(11,079		)	(11,079		)	33,237			(11,079		)
Total other comprehensive (loss) income	(11,079		)	(11,079		)	(11,079		)	(11,079		)	33,237			(11,079		)
Comprehensive income (loss)	$	20,724		$	17,596		$	11,707		$	(7,694	)	$	(21,609	)	$	20,724

Condensed Consolidating Statements of Income and Comprehensive Income

Six Months Ended September 30, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	55,840		$	317,296		$	25,613		$	(2,200	)	$	396,549
Other revenues	—			175			1,617			1,041			(1,185		)	1,648
Total revenues	—			56,015			318,913			26,654			(3,385		)	398,197

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			21,309			138,498			9,360			(3,146		)	166,021
Gross profit	—			34,706			180,415			17,294			(239		)	232,176

Operating Expenses
Advertising and promotion	—			5,721			43,161			5,433			—			54,315
General and administrative	2,514			3,855			24,863			2,819			—			34,051
Depreciation and amortization	2,019			293			8,892			203			—			11,407
Total operating expenses	4,533			9,869			76,916			8,455			—			99,773
Operating income (loss)	(4,533		)	24,837			103,499			8,839			(239		)	132,403

Other (income) expense
Interest income	(24,210		)	(43,015		)	(2,389		)	(238		)	69,792			(60		)
Interest expense	17,454			42,211			50,349			2,389			(69,792		)	42,611
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in (income) loss of subsidiaries	(56,747		)	(36,701		)	(4,835		)	—			98,283			—
Total other (income) expense	(63,503		)	(37,054		)	43,125			2,151			98,283			43,002
Income (loss) before income taxes	58,970			61,891			60,374			6,688			(98,522		)	89,401
Provision for income taxes	994			8,917			19,661			1,853			—			31,425
Net income (loss)	$	57,976		$	52,974		$	40,713		$	4,835		$	(98,522	)	$	57,976

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(11,484		)	(11,484		)	(11,484		)	(11,484		)	34,452			(11,484		)
Total other comprehensive (loss) income	(11,484		)	(11,484		)	(11,484		)	(11,484		)	34,452			(11,484		)
Comprehensive income (loss)	$	46,492		$	41,490		$	29,229		$	(6,649	)	$	(64,070	)	$	46,492

Condensed Consolidating Balance Sheet

September 30, 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	$	8,168		$	—		$	292		$	21,998		$	—		$	30,458
Accounts receivable, net	—			11,677			67,356			13,836			—			92,869
Inventories	—			12,910			75,088			10,578			(617		)	97,959
Deferred income tax assets	297			807			8,652			890			—			10,646
Prepaid expenses and other current assets	2,189			546			7,926			680			—			11,341
Assets held for sale	—			—			36,400			—			—			36,400
Total current assets	10,654			25,940			195,714			47,982			(617		)	279,673

Property and equipment, net	7,963			314			4,889			566			—			13,732
Goodwill	—			66,007			263,183			22,472			—			351,662
Intangible assets, net	—			191,521			1,901,899			87,708			—			2,181,128
Other long-term assets	2,500			2,283			—			—			—			4,783
Intercompany receivables	1,478,481			2,573,184			1,461,115			12,506			(5,525,286		)	—
Investment in subsidiary	1,665,764			1,538,358			83,983			—			(3,288,105		)	—
Total Assets	$	3,165,362		$	4,397,607		$	3,910,783		$	171,234		$	(8,814,008	)	$	2,830,978

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	2,643		$	9,422		$	24,097		$	2,879		$	—		$	39,041
Accrued interest payable	—			8,264			—			—			—			8,264
Other accrued liabilities	11,731			1,841			47,137			6,297			—			67,006
Total current liabilities	14,374			19,527			71,234			9,176			—			114,311

Long-term debt
Principal amount	—			1,502,000			—			—			—			1,502,000
Less unamortized debt costs	—			(22,337		)	—			—			—			(22,337		)
Long-term debt, net	—			1,479,663			—			—			—			1,479,663

Deferred income tax liabilities	—			61,046			398,108			373			—			459,527
Other long-term liabilities				—			2,682			155			—			2,837
Intercompany payables	2,376,348			1,246,668			1,821,773			80,497			(5,525,286		)	—
Total Liabilities	2,390,722			2,806,904			2,293,797			90,201			(5,525,286		)	2,056,338

Stockholders' Equity
Common stock	532			—			—			—			—			532
Additional paid-in capital	453,336			1,280,947			1,359,921			78,774			(2,719,642		)	453,336
Treasury stock, at cost	(6,558		)	—			—			—			—			(6,558		)
Accumulated other comprehensive (loss) income, net of tax	(26,646		)	(26,646		)	(26,646		)	(26,646		)	79,938			(26,646		)
Retained earnings (accumulated deficit)	353,976			336,402			283,711			28,905			(649,018		)	353,976
Total Stockholders' Equity	774,640			1,590,703			1,616,986			81,033			(3,288,722		)	774,640
Total Liabilities and Stockholders' Equity	$	3,165,362		$	4,397,607		$	3,910,783		$	171,234		$	(8,814,008	)	$	2,830,978

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 Statement of Cash Flows

Six Months Ended September 30, 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)	$	26,664		$	25,941		$	14,195		$	6,677		$	(46,813	)	$	26,664
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,752			302			10,550			244			—			12,848
Loss on sales of intangible assets and property and equipment				—			55,112			—			—			55,112
Deferred income taxes	19			603			(11,144		)	(80		)	—			(10,602		)
Amortization of debt origination costs	—			5,097			—			—			—			5,097
Stock-based compensation costs	3,933			—			—			—			—			3,933
Equity in income of subsidiaries	(26,290		)	(13,761		)	(6,677		)	—			46,728			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			348			7,090			(7,082		)	—			356
Inventories	—			(3,499		)	(6,596		)	(653		)	85			(10,663		)
Prepaid expenses and other current assets	10,622			(289		)	(735		)	514			—			10,112
Accounts payable	(297		)	1,779			(164		)	(498		)	—			820
Accrued liabilities	(554		)	(273		)	8,284			(852		)	—			6,605
Net cash provided by (used in) operating activities	15,849			16,248			69,915			(1,730		)	—			100,282

Investing Activities
Purchases of property and equipment	(395		)	(138		)	(785		)	(86		)	—			(1,404		)
Proceeds from sales of intangible assets	—			—			52,353			—			—			52,353
Proceeds from the sale of property and equipment	—			—			75			—			—			75
Net cash provided by (used in) investing activities	(395		)	(138		)	51,643			(86		)	—			51,024

Financing Activities
Term loan repayments	—			(130,500		)	—			—			—			(130,500		)
Borrowings under revolving credit agreement	—			20,000			—			—			—			20,000
Repayments under revolving credit agreement	—			(40,000		)	—			—			—			(40,000		)
Payments of debt origination costs	—			(9		)	—			—			—			(9		)
Proceeds from exercise of stock options	3,423			—			—			—			—			3,423
Excess tax benefits from share-based awards	800			—			—			—			—			800
Fair value of shares surrendered as payment of tax withholding	(1,395		)	—			—			—			—			(1,395		)
Intercompany activity, net	(14,554		)	134,399			(124,165		)	4,320			—			—
Net cash (used in) provided by financing activities	(11,726		)	(16,110		)	(124,165		)	4,320			—			(147,681		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(397		)	—			(397		)
Increase (decrease) in cash and cash equivalents	3,728			—			(2,607		)	2,107			—			3,228
Cash and cash equivalents - beginning of period	4,440			—			2,899			19,891			—			27,230
Cash and cash equivalents - end of period	$	8,168		$	—		$	292		$	21,998		$	—		$	30,458

Condensed Consolidating Statement of Cash Flows

Six Months Ended September 30, 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)	$	57,976		$	52,974		$	40,713		$	4,835		$	(98,522	)	$	57,976
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,019			293			8,892			203			—			11,407
Gain on sale of property and equipment	—			—			—			(36		)	—			(36		)
Deferred income taxes	171			254			21,506			54			—			21,985
Amortization of debt origination costs	—			4,055			—			—			—			4,055
Stock-based compensation costs	4,993			—			—			41			—			5,034
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in income of subsidiaries	(56,747		)	(36,701		)	(4,835		)	—			98,283			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			1,729			(3,550		)	(2,097		)	—			(3,918		)
Inventories	—			(1,017		)	(2,177		)	(883		)	239			(3,838		)
Prepaid expenses and other current assets	3,166			(402		)	660			12			—			3,436
Accounts payable	269			624			(3,343		)	(2,069		)	—			(4,519		)
Accrued liabilities	(2,503		)	(1,094		)	1,012			1,142			—			(1,443		)
Net cash provided by operating activities	9,344			21,166			58,878			1,202			—			90,590

Investing Activities
Purchases of property and equipment	(1,107		)	(93		)	(103		)	(380		)	—			(1,683		)
Proceeds from the sale of property and equipment	—			—			—			344			—			344
Net cash used in investing activities	(1,107		)	(93		)	(103		)	(36		)	—			(1,339		)

Financing Activities
Term loan repayments	—			(50,000		)	—			—			—			(50,000		)
Borrowings under revolving credit agreement	—			15,000			—			—			—			15,000
Repayments under revolving credit agreement	—			(55,000		)	—			—			—			(55,000		)
Payments of debt origination costs	—			(4,211		)	—			—			—			(4,211		)
Proceeds from exercise of stock options	6,398			—			—			—			—			6,398
Proceeds from restricted stock exercises	544			—			—			—			—			544
Excess tax benefits from share-based awards	1,850			—			—			—			—			1,850
Fair value of shares surrendered as payment of tax withholding	(2,187		)	—			—			—			—			(2,187		)
Intercompany activity, net	(15,675		)	73,138			(58,775		)	1,312			—			—
Net cash (used in) provided by financing activities	(9,070		)	(21,073		)	(58,775		)	1,312			—			(87,606		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(811		)	—			(811		)
Increase (decrease) in cash and cash equivalents	(833		)	—			—			1,667			—			834
Cash and cash equivalents - beginning of period	11,387			—			—			9,931			—			21,318
Cash and cash equivalents - end of period	$	10,554		$	—		$	—		$	11,598		$	—		$	22,152