Goodwill and Intangible Assets

3 Months Ended

May 31, 2013

Note 8 – Goodwill and Intangible Assets

Annual Impairment Testing in the First Quarter of Fiscal Year 2014 - We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2014. As a result of our testing of indefinite-lived trademarks and licenses, we recorded a non-cash asset impairment charge of $12.05 million ($12.03 million after tax). The charge was related to certain trademarks in our Personal Care segment, which were written down to their estimated fair value, determined on the basis of future discounted cash flows using the relief from royalty valuation method.

Annual Impairment Testing in the First Quarter of Fiscal Year 2013 - We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2013. As a result, we concluded no asset impairment charges were required. For fiscal year 2013, the estimated fair value of the indefinite-lived trademarks and licenses, reporting unit net assets, and the Company’s estimated enterprise value exceeded their respective carrying values as of the date of the evaluation.

A summary of the carrying amounts and associated accumulated amortization for all intangible assets by operating segment follows:

GOODWILL AND INTANGIBLE ASSETS

(in thousands)


	May 31, 2013								February 28, 2013
	Gross		Cumulative						Gross		Cumulative
	Carrying		Goodwill		Accumulated		Net Book		Carrying		Goodwill		Accumulated		Net Book
Description	Amount		Impairments		Amortization		Value		Amount		Impairments		Amortization		Value

Personal Care:
Goodwill	$	81,842	$	(46,490)	$	-	$	35,352	$	81,842	$	(46,490)	$	-	$	35,352
Trademarks - indefinite	63,254		-		-		63,254		75,303		-		-		75,303
Trademarks - finite	150		-		(73)		77		150		-		(72)		78
Licenses - indefinite	10,800		-		-		10,800		10,800		-		-		10,800
Licenses - finite	18,683		-		(15,649)		3,034		18,683		-		(15,570)		3,113
Other intangibles - finite	49,437		-		(22,359)		27,078		49,437		-		(20,955)		28,482
Total Personal Care	224,166		(46,490)		(38,081)		139,595		236,215		(46,490)		(36,597)		153,128

Housewares:
Goodwill	166,131		-		-		166,131		166,131		-		-		166,131
Trademarks - indefinite	75,200		-		-		75,200		75,200		-		-		75,200
Other intangibles - finite	15,608		-		(10,325)		5,283		15,609		-		(10,070)		5,539
Total Housewares	256,939		-		(10,325)		246,614		256,940		-		(10,070)		246,870

Healthcare / Home Environment:
Goodwill	251,758		-		-		251,758		251,758		-		-		251,758
Trademarks - indefinite	54,000		-		-		54,000		54,000		-		-		54,000
Licenses - finite	15,300		-		(4,195)		11,105		15,300		-		(3,455)		11,845
Other Intangibles - finite	114,490		-		(26,091)		88,399		114,490		-		(23,222)		91,268
Total Healthcare / Home Environment	435,548		-		(30,286)		405,262		435,548		-		(26,677)		408,871

Total	$	916,653	$	(46,490)	$	(78,692)	$	791,471	$	928,703	$	(46,490)	$	(73,344)	$	808,869

The following table summarizes the amortization expense attributable to intangible assets for the periods covered in the accompanying consolidated condensed statements of income, as well as our estimated amortization expense for the fiscal years 2014 through 2019.

AMORTIZATION OF INTANGIBLE ASSETS
*(in thousands)*
Aggregate Amortization Expense
For the three months ended

May 31, 2013	$	5,431
May 31, 2012	$	5,636

Estimated Amortization Expense
For the fiscal years ended

February 2014	$	21,545
February 2015	$	21,010
February 2016	$	20,830
February 2017	$	20,506
February 2018	$	16,691
February 2019	$	11,880

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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