Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended December 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	$	—		$	29,156		$	172,216		$	16,184		$	(824	)	$	216,732
Other revenues	—			76			31			329			(405		)	31
Total revenues	—			29,232			172,247			16,513			(1,229		)	216,763

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			12,179			74,494			6,684			(1,141		)	92,216
Gross profit	—			17,053			97,753			9,829			(88		)	124,547

Operating Expenses
Advertising and promotion	—			3,009			24,266			3,407			—			30,682
General and administrative	2,486			2,004			15,644			1,997			—			22,131
Depreciation and amortization	722			154			4,860			116			—			5,852
Gain on divestitures	—			—			(3,405		)	—			—			(3,405		)
Total operating expenses	3,208			5,167			41,365			5,520			—			55,260
Operating income (loss)	(3,208		)	11,886			56,388			4,309			(88		)	69,287

Other (income) expense
Interest income	(12,056		)	(21,422		)	(1,299		)	(160		)	34,891			(46		)
Interest expense	8,495			18,598			25,099			1,299			(34,891		)	18,600
Equity in (income) loss of subsidiaries	(32,821		)	(23,629		)	(2,089		)	—			58,539			—
Total other expense (income)	(36,382		)	(26,453		)	21,711			1,139			58,539			18,554
Income (loss) before income taxes	33,174			38,339			34,677			3,170			(58,627		)	50,733
Provision for income taxes	1,533			5,087			11,391			1,081			—			19,092
Net income (loss)	$	31,641		$	33,252		$	23,286		$	2,089		$	(58,627	)	$	31,641

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(8,736		)	(8,736		)	(8,736		)	(8,736		)	26,208			(8,736		)
Total other comprehensive (loss) income	(8,736		)	(8,736		)	(8,736		)	(8,736		)	26,208			(8,736		)
Comprehensive (loss) income	$	22,905		$	24,516		$	14,550		$	(6,647	)	$	(32,419	)	$	22,905

Condensed Consolidating Statements of Income and Comprehensive Income

Nine Months Ended December 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	$	—		$	83,128		$	512,212		$	47,368		$	(2,189	)	$	640,519
Other revenues	—			223			865			1,309			(1,526		)	871
Total revenues	—			83,351			513,077			48,677			(3,715		)	641,390

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			35,331			220,336			19,162			(3,542		)	271,287
Gross profit	—			48,020			292,741			29,515			(173		)	370,103

Operating Expenses
Advertising and promotion	—			11,505			66,689			8,715			—			86,909
General and administrative	6,224			5,954			43,260			4,945			—			60,383
Depreciation and amortization	2,474			456			15,410			360			—			18,700
Loss on divestitures	—			—			51,552			—			—			51,552
Total operating expenses	8,698			17,915			176,911			14,020			—			217,544
Operating income (loss)	(8,698		)	30,105			115,830			15,495			(173		)	152,559

Other (income) expense
Interest income	(36,100		)	(64,143		)	(3,865		)	(475		)	104,434			(149		)
Interest expense	25,437			60,654			75,138			3,865			(104,434		)	60,660
Equity in (income) loss of subsidiaries	(59,111		)	(37,390		)	(8,766		)	—			105,267			—
Total other expense (income)	(69,774		)	(40,879		)	62,507			3,390			105,267			60,511
Income (loss) before income taxes	61,076			70,984			53,323			12,105			(105,440		)	92,048
Provision for income taxes	2,771			11,791			15,842			3,339			—			33,743
Net income (loss)	$	58,305		$	59,193		$	37,481		$	8,766		$	(105,440	)	$	58,305

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(11,857		)	(11,857		)	(11,857		)	(11,857		)	35,571			(11,857		)
Total other comprehensive (loss) income	(11,857		)	(11,857		)	(11,857		)	(11,857		)	35,571			(11,857		)
Comprehensive (loss) income	$	46,448		$	47,336		$	25,624		$	(3,091	)	$	(69,869	)	$	46,448

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended December 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	$	—		$	27,598		$	159,783		$	12,332		$	(228	)	$	199,485
Other revenues	—			98			700			356			(444		)	710
Total revenues	—			27,696			160,483			12,688			(672		)	200,195

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			11,796			68,148			4,448			(981		)	83,411
Gross profit	—			15,900			92,335			8,240			309			116,784

Operating Expenses
Advertising and promotion	—			1,881			25,251			2,803			—			29,935
General and administrative	1,370			1,789			13,463			1,513			—			18,135
Depreciation and amortization	1,013			151			4,794			113			—			6,071
Total operating expenses	2,383			3,821			43,508			4,429			—			54,141
Operating income (loss)	(2,383		)	12,079			48,827			3,811			309			62,643

Other (income) expense
Interest income	(12,141		)	(21,569		)	(1,124		)	(128		)	34,931			(31		)
Interest expense	8,602			19,443			25,255			1,124			(34,931		)	19,493
Equity in (income) loss of subsidiaries	(27,711		)	(15,898		)	(2,033		)	—			45,642			—
Total other (income) expense	(31,250		)	(18,024		)	22,098			996			45,642			19,462
Income (loss) before income taxes	28,867			30,103			26,729			2,815			(45,333		)	43,181
Provision for income taxes	872			4,950			8,582			782			—			15,186
Net income (loss)	$	27,995		$	25,153		$	18,147		$	2,033		$	(45,333	)	$	27,995

Comprehensive (loss) income, net of tax:
Currency translation adjustments	4,922			4,922			4,922			4,922			(14,766		)	4,922
Total other comprehensive (loss) income	4,922			4,922			4,922			4,922			(14,766		)	4,922
Comprehensive income (loss)	$	32,917		$	30,075		$	23,069		$	6,955		$	(60,099	)	$	32,917

Condensed Consolidating Statements of Income and Comprehensive Income

Nine Months Ended December 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	$	—		$	83,438		$	477,079		$	37,945		$	(2,428	)	$	596,034
Other revenues	—			273			2,317			1,397			(1,629		)	2,358
Total revenues	—			83,711			479,396			39,342			(4,057		)	598,392

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			33,105			206,646			13,808			(4,127		)	249,432
Gross profit	—			50,606			272,750			25,534			70			348,960

Operating Expenses
Advertising and promotion	—			7,602			68,412			8,236			—			84,250
General and administrative	3,884			5,644			38,326			4,332			—			52,186
Depreciation and amortization	3,032			444			13,686			316			—			17,478
Total operating expenses	6,916			13,690			120,424			12,884			—			153,914
Operating income (loss)	(6,916		)	36,916			152,326			12,650			70			195,046

Other (income) expense
Interest income	(36,351		)	(64,584		)	(3,513		)	(366		)	104,723			(91		)
Interest expense	26,056			61,654			75,604			3,513			(104,723		)	62,104
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in (income) loss of subsidiaries	(84,458		)	(52,599		)	(6,868		)	—			143,925			—
Total other (income) expense	(94,753		)	(55,078		)	65,223			3,147			143,925			62,464
Income (loss) before income taxes	87,837			91,994			87,103			9,503			(143,855		)	132,582
Provision for income taxes	1,866			13,867			28,243			2,635			—			46,611
Net income (loss)	$	85,971		$	78,127		$	58,860		$	6,868		$	(143,855	)	$	85,971

Comprehensive (loss) income, net of tax:
Currency translation adjustments	(6,562		)	(6,562		)	(6,562		)	(6,562		)	19,686			(6,562		)
Total other comprehensive (loss) income	(6,562		)	(6,562		)	(6,562		)	(6,562		)	19,686			(6,562		)
Comprehensive income (loss)	$	79,409		$	71,565		$	52,298		$	306		$	(124,169	)	$	79,409

Condensed Consolidating Balance Sheet

December 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	$	36,821		$	—		$	202		$	26,266		$	—		$	63,289
Accounts receivable, net	—			12,291			79,927			12,170			—			104,388
Inventories	—			16,758			75,522			9,351			(705		)	100,926
Deferred income tax assets	2,372			918			8,624			688			—			12,602
Prepaid expenses and other current assets	1,611			158			7,464			772			—			10,005
Total current assets	40,804			30,125			171,739			49,247			(705		)	291,210

Property and equipment, net	7,595			315			4,478			477			—			12,865
Goodwill	—			66,007			258,252			21,226			—			345,485
Intangible assets, net	—			191,387			1,882,242			82,749			—			2,156,378
Other long-term assets	2,500			2,414			—			—			—			4,914
Intercompany receivables	1,451,328			2,518,756			1,670,364			14,432			(5,654,880		)	—
Investment in subsidiary	1,690,523			1,553,251			76,662			—			(3,320,436		)	—
Total Assets	$	3,192,750		$	4,362,255		$	4,063,737		$	168,131		$	(8,976,021	)	$	2,810,852

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	2,822		$	9,418		$	29,964		$	3,046		$	—		$	45,250
Accrued interest payable	—			8,399			—			—			—			8,399
Other accrued liabilities	13,722			2,721			55,162			7,070			—			78,675
Total current liabilities	16,544			20,538			85,126			10,116			—			132,324

Long-term debt
Principal amount	—			1,437,000			—			—			—			1,437,000
Less unamortized debt costs	—			(21,421		)	—			—			—			(21,421		)
Long-term debt, net	—			1,415,579			—			—			—			1,415,579

Deferred income tax liabilities	—			61,047			398,380			353			—			459,780
Other long-term liabilities	—			—			3,264			48			—			3,312
Intercompany payables	2,376,349			1,249,872			1,945,431			83,228			(5,654,880		)	—
Total Liabilities	2,392,893			2,747,036			2,432,201			93,745			(5,654,880		)	2,010,995

Stockholders' Equity
Common stock	532			—			—			—			—			532
Additional paid-in capital	455,684			1,280,947			1,359,921			78,774			(2,719,642		)	455,684
Treasury stock, at cost	(6,594		)	—			—			—			—			(6,594		)
Accumulated other comprehensive (loss) income, net of tax	(35,382		)	(35,382		)	(35,382		)	(35,382		)	106,146			(35,382		)
Retained earnings (accumulated deficit)	385,617			369,654			306,997			30,994			(707,645		)	385,617
Total Stockholders' Equity	799,857			1,615,219			1,631,536			74,386			(3,321,141		)	799,857
Total Liabilities and Stockholders' Equity	$	3,192,750		$	4,362,255		$	4,063,737		$	168,131		$	(8,976,021	)	$	2,810,852

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

Nine Months Ended December 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)	$	58,305		$	59,193		$	37,481		$	8,766		$	(105,440	)	$	58,305
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,474			456			15,410			360			—			18,700
Loss on divestitures and sales of property and equipment				—			51,807			—			—			51,807
Deferred income taxes	(2,056		)	493			(11,101		)	134			—			(12,530		)
Amortization of debt origination costs	—			6,129			—			—			—			6,129
Stock-based compensation costs	6,260			—			—			—			—			6,260
Equity in income of subsidiaries	(59,111		)	(37,390		)	(8,766		)	—			105,267			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			(266		)	(5,481		)	(6,627		)	—			(12,374		)
Inventories	—			(7,347		)	(9,409		)	(6		)	173			(16,589		)
Prepaid expenses and other current assets	11,200			99			(525		)	375			—			11,149
Accounts payable	(118		)	1,775			5,981			(470		)	—			7,168
Accrued liabilities	1,437			742			20,995			(851		)	—			22,323
Net cash provided by operating activities	18,391			23,884			96,392			1,681			—			140,348

Investing Activities
Purchases of property and equipment	(890		)	(158		)	(785		)	(102		)	—			(1,935		)
Proceeds from divestitures	—			—			110,717			—			—			110,717
Proceeds from the sales of property and equipment	—			—			85			—			—			85
Proceeds from DenTek working capital arbitration settlement	—			—			1,419			—			—			1,419
Net cash provided by (used in) investing activities	(890		)	(158		)	111,436			(102		)	—			110,286

Financing Activities
Term loan repayments	—			(130,500		)	—			—			—			(130,500		)
Borrowings under revolving credit agreement	—			20,000			—			—			—			20,000
Repayments under revolving credit agreement	—			(105,000		)	—			—			—			(105,000		)
Payments of debt origination costs	—			(9		)	—			—			—			(9		)
Proceeds from exercise of stock options	3,444			—			—			—			—			3,444
Excess tax benefits from share-based awards	800			—			—			—			—			800
Fair value of shares surrendered as payment of tax withholding	(1,431		)	—			—			—			—			(1,431		)
Intercompany activity, net	12,067			191,783			(210,525		)	6,675			—			—
Net cash (used in) provided by financing activities	14,880			(23,726		)	(210,525		)	6,675			—			(212,696		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(1,879		)	—			(1,879		)
Increase (decrease) in cash and cash equivalents	32,381			—			(2,697		)	6,375			—			36,059
Cash and cash equivalents - beginning of period	4,440			—			2,899			19,891			—			27,230
Cash and cash equivalents - end of period	$	36,821		$	—		$	202		$	26,266		$	—		$	63,289

Condensed Consolidating Statement of Cash Flows

Nine Months Ended December 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)	$	85,971		$	78,127		$	58,860		$	6,868		$	(143,855	)	$	85,971
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	3,032			444			13,686			316			—			17,478
Deferred income taxes	148			164			31,301			(22		)	—			31,591
Amortization of debt origination costs	—			5,433			—			—			—			5,433
Stock-based compensation costs	7,057			—			—			41			—			7,098
Loss on extinguishment of debt	—			451			—			—			—			451
Gain on sale or disposal of property and equipment	—			—			—			(36		)	—			(36		)
Equity in income of subsidiaries	(84,458		)	(52,599		)	(6,868		)	—			143,925			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			1,158			2,188			(893		)	—			2,453
Inventories	—			(2,519		)	(3,014		)	(1,511		)	(70		)	(7,114		)
Prepaid expenses and other current assets	3,557			(305		)	2,752			(532		)	—			5,472
Accounts payable	(33		)	(1,161		)	(14,613		)	(1,746		)	—			(17,553		)
Accrued liabilities	(102		)	(1,636		)	5,439			1,506			—			5,207
Net cash provided by operating activities	15,172			27,557			89,731			3,991			—			136,451

Investing Activities
Purchases of property and equipment	(1,741		)	(93		)	(212		)	(494		)	—			(2,540		)
Proceeds from the sale of property and equipment	—			—			—			344			—			344
Proceeds from Insight Pharmaceuticals working capital arbitration settlement	—			—			7,237			—			—			7,237
Net cash provided by (used in) investing activities	(1,741		)	(93		)	7,025			(150		)	—			5,041

Financing Activities
Term loan repayments	—			(50,000		)	—			—			—			(50,000		)
Borrowings under revolving credit agreement	—			15,000			—			—			—			15,000
Repayments under revolving credit agreement	—			(81,100		)	—			—			—			(81,100		)
Payments of debt origination costs	—			(4,211		)	—			—			—			(4,211		)
Proceeds from exercise of stock options	6,600			—			—			—			—			6,600
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	2,127			92,847			(96,756		)	1,782			—			—
Net cash (used in) provided by financing activities	8,934			(27,464		)	(96,756		)	1,782			—			(113,504		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(333		)	—			(333		)
Increase in cash and cash equivalents	22,365			—			—			5,290			—			27,655
Cash and cash equivalents - beginning of period	11,387			—			—			9,931			—			21,318
Cash and cash equivalents - end of period	$	33,752		$	—		$	—		$	15,221		$	—		$	48,973