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Revenue Recognition | 6 Months Ended
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Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Nature of Goods and Services We recognize revenue from product sales. We primarily ship finished goods to our customers and operate in three segments: North American OTC Healthcare, International OTC Healthcare, and Household Cleaning (this segment was sold on July 2, 2018). The segments are based on differences in the nature of products and geographical area. The North America and International OTC Healthcare segments market a variety of personal care and over-the-counter products in the following product groups: Analgesics, Cough & Cold, Women's Health, Gastrointestinal, Eye & Ear Care, Dermatologicals, and Oral Care. Prior to its sale, the Household Cleaning segment focused on the sale of cleaning products. Our products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. We sell consumer products under a variety of brands through a broad distribution platform that includes mass merchandisers and drug, food, dollar, convenience and club stores and e-commerce channels, all of which sell our products to consumers. See Note 18 for disaggregated revenue information. Satisfaction of Performance Obligations Revenue is recognized when control of a promised good is transferred to a customer, in an amount that reflects the consideration that we expect to be entitled to receive in exchange for that good. This occurs either when finished goods are transferred to a common carrier for delivery to the customer or when product is picked up by the customer or the customer’s carrier. This represents a change in the timing of revenue recognition for some sales. Refer to the table above in Note 1 for disclosure of the adoption date impacts. Once a product has transferred to the common carrier or been picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the product. It is at this point that we have a right to payment and the customer has legal title. Variable Consideration Provisions for certain rebates, customer promotional programs, product returns, and discounts to customers are accounted for as variable consideration and recorded as a reduction in sales. We record an estimate of future product returns concurrent with recording sales, which is made using the most likely amount method which incorporates (i) historical return rates, (ii) current economic trends, (iii) changes in customer demand, (iv) product acceptance, (v) seasonality of our product offerings, and (vi) the impact of changes in product formulation, packaging and advertising. We participate in the promotional programs of our customers to enhance the sale of our products. These promotional programs consist of direct-to-consumer incentives, such as coupons and temporary price reductions, as well as incentives to our customers, such as allowances for new distribution, including slotting fees, and cooperative advertising. The costs of such activities are recorded as a reduction to revenue when the related sale takes place. Estimates of the costs of these promotional programs are derived using the most likely amount method, which incorporates (i) historical sales experience, (ii) the current promotional offering, (iii) forecasted data, (iv) current market conditions, and (v) communication with customer purchasing/marketing personnel. At the completion of the promotional program, the estimated amounts are adjusted to actual results. Practical Expedients Due to the nature (short duration) of our contracts with customers, we apply the practical expedient related to remaining performance obligations disclosure. Remaining performance obligations relate to contracts with a duration of less than one year, in which we have the right to invoice the customer at the time the performance obligation is satisfied for the amount of revenue recognized at that time. Accordingly, we have elected the practical expedient available under ASC 606 not to disclose remaining performance obligations for our contracts. The period between when control of the promised products transfers to the customer and when the customer pays for the products is one year or less. As such, we do not adjust product consideration for the effects of a significant financing component. The amortization period of any asset resulting from incremental costs of obtaining a contract would be one year or less. We expense incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. We account for shipping and handling costs as fulfillment activities and therefore recognize them upon shipment of goods. The impact of adopting ASC 606 on our Condensed Consolidated Statements of Income and Comprehensive Income is as follows:
| Three Months Ended September 30, 2018 |  | Six Months Ended September 30, 2018
(In thousands) | As Reported |  | Impact of Change |  | Without Adoption of ASC 606 |  | As Reported |  | Impact of Change |  | Without Adoption of ASC 606
Total revenues | $ | 239,357 |  |  | $ | (16,165 | ) |  | $ | 223,192 |  |  | $ | 493,337 |  |  | $ | (22,110 | ) |  | $ | 471,227 |
Cost of sales | $ | 101,885 |  |  | $ | (6,204 | ) |  | $ | 95,681 |  |  | $ | 215,242 |  |  | $ | (8,396 | ) |  | $ | 206,846 |
Total operating expenses | $ | 66,548 |  |  | $ | (440 | ) |  | $ | 66,108 |  |  | $ | 134,684 |  |  | $ | (579 | ) |  | $ | 134,105 |
Income before income taxes | $ | 43,519 |  |  | $ | (9,521 | ) |  | $ | 33,998 |  |  | $ | 89,979 |  |  | $ | (13,135 | ) |  | $ | 76,844 |
Provision for income taxes | $ | 12,678 |  |  | $ | (2,771 | ) |  | $ | 9,907 |  |  | $ | 24,672 |  |  | $ | (3,752 | ) |  | $ | 20,920 |
Net income | $ | 30,841 |  |  | $ | (6,750 | ) |  | $ | 24,091 |  |  | $ | 65,307 |  |  | $ | (9,383 | ) |  | $ | 55,924 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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