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Business Segments | 9 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Business Segments | Business Segments Segment information has been prepared in accordance with the Segment Reporting topic of the FASB ASC 280. Our current reportable segments consist of (i) North American OTC Healthcare, (ii) International OTC Healthcare and (iii) Household Cleaning. We evaluate the performance of our operating segments and allocate resources to these segments based primarily on contribution margin, which we define as gross profit less advertising and promotional expenses. The tables below summarize information about our reportable segments.
| Three Months Ended December 31, 2017
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Total segment revenues* | $ | 225,695 |  |  | $ | 25,717 |  |  | $ | 19,203 |  |  | $ | 270,615 |
Cost of sales | 95,164 |  |  | 10,511 |  |  | 17,266 |  |  | 122,941 |
Gross profit | 130,531 |  |  | 15,206 |  |  | 1,937 |  |  | 147,674 |
Advertising and promotion | 30,794 |  |  | 4,544 |  |  | 497 |  |  | 35,835 |
Contribution margin | $ | 99,737 |  |  | $ | 10,662 |  |  | $ | 1,440 |  |  | 111,839 |
Other operating expenses |  |  |  |  |  |  |  |  | 28,336 |
Operating income |  |  |  |  |  |  |  |  | 83,503 |
Other expense |  |  |  |  |  |  |  |  | 25,864 |
Income before income taxes |  |  |  |  |  |  |  |  | 57,639 |
Benefit for income taxes |  |  |  |  |  |  |  |  | (257,154 | )
Net income |  |  |  |  |  |  |  |  | $ | 314,793 |
* Intersegment revenues of $1.9 million were eliminated from the North America OTC Healthcare segment.
| Nine Months Ended December 31, 2017
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Total segment revenues* | $ | 656,812 |  |  | $ | 67,572 |  |  | $ | 60,830 |  |  | $ | 785,214 |
Cost of sales | 268,849 |  |  | 29,757 |  |  | 51,360 |  |  | 349,966 |
Gross profit | 387,963 |  |  | 37,815 |  |  | 9,470 |  |  | 435,248 |
Advertising and promotion | 98,666 |  |  | 11,827 |  |  | 1,474 |  |  | 111,967 |
Contribution margin | $ | 289,297 |  |  | $ | 25,988 |  |  | $ | 7,996 |  |  | 323,281 |
Other operating expenses |  |  |  |  |  |  |  |  |  | 84,592 |
Operating income |  |  |  |  |  |  |  |  |  | 238,689 |
Other expense |  |  |  |  |  |  |  |  |  | 79,041 |
Income before income taxes |  |  |  |  |  |  |  |  |  | 159,648 |
Benefit for income taxes |  |  |  |  |  |  |  |  |  | (219,609 | )
Net income |  |  |  |  |  |  |  |  |  | $ | 379,257 |
* Intersegment revenues of $5.6 million were eliminated from the North American OTC Healthcare segment.
| Three Months Ended December 31, 2016
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Total segment revenues* | $ | 177,273 |  |  | $ | 18,459 |  |  | $ | 21,031 |  |  | $ | 216,763 |
Cost of sales | 68,378 |  |  | 7,678 |  |  | 16,160 |  |  | 92,216 |
Gross profit | 108,895 |  |  | 10,781 |  |  | 4,871 |  |  | 124,547 |
Advertising and promotion | 26,800 |  |  | 3,502 |  |  | 380 |  |  | 30,682 |
Contribution margin | $ | 82,095 |  |  | $ | 7,279 |  |  | $ | 4,491 |  |  | 93,865 |
Other operating expenses** |  |  |  |  |  |  |  |  | 24,578 |
Operating income |  |  |  |  |  |  |  |  | 69,287 |
Other expense |  |  |  |  |  |  |  |  | 18,554 |
Income before income taxes |  |  |  |  |  |  |  |  | 50,733 |
Provision for income taxes |  |  |  |  |  |  |  |  | 19,092 |
Net income |  |  |  |  |  |  |  |  | $ | 31,641 |
* Intersegment revenues of $0.8 million were eliminated from the North American OTC Healthcare segment. **Other operating expenses for the three months ended December 31, 2016 includes a pre-tax net gain on divestitures of $3.4 million related primarily to e.p.t and Dermoplast. The assets and corresponding contribution margin associated with the pre-tax net gain on these divestitures are included within the North American OTC Healthcare segment.
| Nine Months Ended December 31, 2016
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Total segment revenues* | $ | 521,800 |  |  | $ | 53,067 |  |  | $ | 66,523 |  |  | $ | 641,390 |
Cost of sales | 198,014 |  |  | 21,722 |  |  | 51,551 |  |  | 271,287 |
Gross profit | 323,786 |  |  | 31,345 |  |  | 14,972 |  |  | 370,103 |
Advertising and promotion | 76,651 |  |  | 8,870 |  |  | 1,388 |  |  | 86,909 |
Contribution margin | $ | 247,135 |  |  | $ | 22,475 |  |  | $ | 13,584 |  |  | 283,194 |
Other operating expenses** |  |  |  |  |  |  |  |  | 130,635 |
Operating income |  |  |  |  |  |  |  |  | 152,559 |
Other expense |  |  |  |  |  |  |  |  | 60,511 |
Income before income taxes |  |  |  |  |  |  |  |  | 92,048 |
Provision for income taxes |  |  |  |  |  |  |  |  | 33,743 |
Net income |  |  |  |  |  |  |  |  | $ | 58,305 |
* Intersegment revenues of $2.2 million were eliminated from the North American OTC Healthcare segment. **Other operating expenses for the nine months ended December 31, 2016 includes a pre-tax net loss of $51.6 million related to divestitures. These divestitures include Pediacare, New Skin, Fiber Choice, e.p.t and Dermoplast and license rights in certain geographic areas pertaining to Comet. The assets and corresponding contribution margin associated with the pre-tax net loss on divestitures related to Pediacare, New Skin, Fiber Choice, e.p.t and Dermoplast are included within the North American OTC Healthcare segment, while the pre-tax gain on sale of license rights related to Comet is included in the Household Cleaning segment. The tables below summarize information about our segment revenues from similar product groups.
| Three Months Ended December 31, 2017
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Analgesics | $ | 31,293 |  |  | $ | 160 |  |  | $ | — |  |  | $ | 31,453 |
Cough & Cold | 28,761 |  |  | 4,331 |  |  | — |  |  | 33,092 |
Women's Health | 63,107 |  |  | 2,940 |  |  | — |  |  | 66,047 |
Gastrointestinal | 29,392 |  |  | 11,251 |  |  | — |  |  | 40,643 |
Eye & Ear Care | 21,631 |  |  | 3,205 |  |  | — |  |  | 24,836 |
Dermatologicals | 22,736 |  |  | 562 |  |  | — |  |  | 23,298 |
Oral Care | 27,144 |  |  | 3,267 |  |  | — |  |  | 30,411 |
Other OTC | 1,631 |  |  | 1 |  |  | — |  |  | 1,632 |
Household Cleaning | — |  |  | — |  |  | 19,203 |  |  | 19,203 |
Total segment revenues | $ | 225,695 |  |  | $ | 25,717 |  |  | $ | 19,203 |  |  | $ | 270,615 |
| Nine Months Ended December 31, 2017
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Analgesics | $ | 89,931 |  |  | $ | 709 |  |  | $ | — |  |  | $ | 90,640 |
Cough & Cold | 67,738 |  |  | 13,603 |  |  | — |  |  | 81,341 |
Women's Health | 187,688 |  |  | 8,440 |  |  | — |  |  | 196,128 |
Gastrointestinal | 88,145 |  |  | 25,123 |  |  | — |  |  | 113,268 |
Eye & Ear Care | 69,437 |  |  | 8,850 |  |  | — |  |  | 78,287 |
Dermatologicals | 72,688 |  |  | 1,587 |  |  | — |  |  | 74,275 |
Oral Care | 77,026 |  |  | 9,256 |  |  | — |  |  | 86,282 |
Other OTC | 4,159 |  |  | 4 |  |  | — |  |  | 4,163 |
Household Cleaning | — |  |  | — |  |  | 60,830 |  |  | 60,830 |
Total segment revenues | $ | 656,812 |  |  | $ | 67,572 |  |  | $ | 60,830 |  |  | $ | 785,214 |
| Three Months Ended December 31, 2016
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Analgesics | $ | 32,439 |  |  | $ | 444 |  |  | $ | — |  |  | $ | 32,883 |
Cough & Cold | 29,803 |  |  | 4,166 |  |  | — |  |  | 33,969 |
Women's Health | 30,896 |  |  | 580 |  |  | — |  |  | 31,476 |
Gastrointestinal | 15,109 |  |  | 6,701 |  |  | — |  |  | 21,810 |
Eye & Ear Care | 23,571 |  |  | 2,997 |  |  | — |  |  | 26,568 |
Dermatologicals | 19,948 |  |  | 479 |  |  | — |  |  | 20,427 |
Oral Care | 24,129 |  |  | 3,083 |  |  | — |  |  | 27,212 |
Other OTC | 1,378 |  |  | 9 |  |  | — |  |  | 1,387 |
Household Cleaning | — |  |  | — |  |  | 21,031 |  |  | 21,031 |
Total segment revenues | $ | 177,273 |  |  | $ | 18,459 |  |  | $ | 21,031 |  |  | $ | 216,763 |
| Nine Months Ended December 31, 2016
(In thousands) | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
Analgesics | $ | 90,558 |  |  | $ | 1,515 |  |  | $ | — |  |  | $ | 92,073 |
Cough & Cold | 68,876 |  |  | 13,718 |  |  | — |  |  | 82,594 |
Women's Health | 97,051 |  |  | 2,151 |  |  | — |  |  | 99,202 |
Gastrointestinal | 50,495 |  |  | 17,045 |  |  | — |  |  | 67,540 |
Eye & Ear Care | 72,512 |  |  | 8,782 |  |  | — |  |  | 81,294 |
Dermatologicals | 65,598 |  |  | 1,717 |  |  | — |  |  | 67,315 |
Oral Care | 72,308 |  |  | 8,120 |  |  | — |  |  | 80,428 |
Other OTC | 4,402 |  |  | 19 |  |  | — |  |  | 4,421 |
Household Cleaning | — |  |  | — |  |  | 66,523 |  |  | 66,523 |
Total segment revenues | $ | 521,800 |  |  | $ | 53,067 |  |  | $ | 66,523 |  |  | $ | 641,390 |
During the three months ended December 31, 2017 and 2016, approximately 85.9% and 86.7%, respectively, of our total segment revenues were from customers in the United States. During the nine months ended December 31, 2017 and 2016, approximately 87.0% and 86.7%, respectively, of our total segment revenues were from customers in the United States. Other than the United States, no individual geographical area accounted for more than 10% of net sales in any of the periods presented. During the three months ended December 31, 2017, our Canada and Australia sales accounted for approximately 4.5% and 5.5%, respectively, of our total segment revenues, while during the three months ended December 31, 2016, our Canada and Australia sales accounted for approximately 4.7% and 5.3%, respectively, of our total segment revenues. During the nine months ended December 31, 2017, our Canada and Australia sales accounted for approximately 4.3% and 4.7%, respectively, of our total segment revenues, while during the nine months ended December 31, 2016, our Canada and Australia sales accounted for approximately 4.9% and 5.4%, respectively, of our total segment revenues. At December 31, 2017 and March 31, 2017, approximately 96.4% of our consolidated goodwill and intangible assets were located in the United States and approximately 3.6% were located in Australia, the United Kingdom and Singapore. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:
December 31, 2017 | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
(In thousands) |  |  |  |  |  |  |
Goodwill | $ | 580,934 |  |  | $ | 33,154 |  |  | $ | 6,245 |  |  | $ | 620,333 |
Intangible assets |  |  |  |  |  |  |  |
Indefinite-lived | 2,404,336 |  |  | 85,329 |  |  | 101,261 |  |  | 2,590,926 |
Finite-lived, net | 271,240 |  |  | 6,206 |  |  | 19,625 |  |  | 297,071 |
Intangible assets, net | 2,675,576 |  |  | 91,535 |  |  | 120,886 |  |  | 2,887,997 |
Total | $ | 3,256,510 |  |  | $ | 124,689 |  |  | $ | 127,131 |  |  | $ | 3,508,330 |
March 31, 2017 | North American OTC Healthcare |  | International OTC Healthcare |  | Household Cleaning |  | Consolidated
(In thousands) |  |  |  |  |  |  |
Goodwill | $ | 576,453 |  |  | $ | 32,554 |  |  | $ | 6,245 |  |  | $ | 615,252 |
Intangible assets |  |  |  |  |  |  |  |
Indefinite-lived | 2,404,336 |  |  | 83,558 |  |  | 101,261 |  |  | 2,589,155 |
Finite-lived, net | 287,056 |  |  | 6,468 |  |  | 20,934 |  |  | 314,458 |
Intangible assets, net | 2,691,392 |  |  | 90,026 |  |  | 122,195 |  |  | 2,903,613 |
Total | $ | 3,267,845 |  |  | $ | 122,580 |  |  | $ | 128,440 |  |  | $ | 3,518,865 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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