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PROPERTY AND EQUIPMENT
 12 Months Ended
Feb. 28, 2014
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 3 – PROPERTY AND EQUIPMENT

 

A summary of property and equipment is as follows:

 

PROPERTY AND EQUIPMENT

(in thousands)

 

 

 

 

 

Estimated

 

 

 

Useful Lives

Last Day of February,

 

(Years)

2014

2013

 

 

 

 

 Land

-

  $

12,800

  $

12,800

 Building and improvements

3 - 40

98,660

66,994

 Computer, furniture and other equipment

3 - 15

60,291

58,284

 Tools, molds and other production equipment

1 - 10

23,017

29,264

 Construction in progress

-

5,865

9,149

 Property and equipment, gross

 

200,633

176,491

 Less accumulated depreciation

 

(71,516)

(74,775)

 Property and equipment, net

 

  $

129,117

  $

101,716

 

We recorded $12.23, $12.03 and $9.14 million of depreciation expense for fiscal years 2014, 2013 and 2012, respectively.

Capital expenditures for property and equipment totaled $40.12, $13.61 and $15.38 million in fiscal years 2014, 2013 and

2012, respectively.

 

We lease certain facilities, equipment and vehicles under operating leases, which expire at various dates through fiscal year 2019. Certain of the leases contain escalation clauses and renewal or purchase options. Rent expense related to our operating leases was $5.68, $6.39 and $5.59 million for fiscal years 2014, 2013 and 2012, respectively.  During the third quarter of fiscal year 2014, in connection with our move to a new distribution facility discussed below, we terminated a previously leased distribution facility in Memphis, Tennessee as of October 31, 2013.

 

During fiscal year 2014, the Company completed construction of a new 1.3 million square foot distribution facility on approximately 84 acres of land in Olive Branch, Mississippi. Capital expenditures for fiscal years 2014 and 2013 include $34.03 million and $4.03 million, respectively, in connection with this project. The new facility will consolidate the distribution operations of our U.S. based Personal Care and Healthcare / Home Environment segment’s appliance businesses. We commenced shipments out of the new facility during the first week of September 2013. We are in the process of completing the transition of our domestic Personal Care segment appliance distribution operation to the new facility, which we expect to complete in the first quarter of fiscal year 2015. Remaining capital expenditure commitments in connection with the Personal Care segment appliance transition are not expected to be material. See Note (9) to these consolidated financial statements for related information regarding the debt incurred to fund the construction of the new distribution facility.