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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Feb. 28, 2014

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

NOTE 4 – GOODWILL AND INTANGIBLE ASSETS

We do not record amortization expense for goodwill or other intangible assets that have indefinite useful lives. Amortization expense is recorded for intangible assets with definite useful lives. We perform an annual impairment review of goodwill and other intangible assets during the first quarter of each fiscal year. We also perform interim testing, if necessary, as required by GAAP. We write down any asset deemed to be impaired to its fair value.

The Company’s traditional impairment test methodology uses primarily estimated future discounted cash flow models (“DCF Models”). The DCF Models use a number of assumptions including expected future cash flows from the assets, volatility, risk free rate, and the expected life of the assets, the determination of which require significant judgments from management. In determining the assumptions to be used, the Company considers the existing rates on Treasury Bills, yield spreads on assets with comparable expected lives, historical volatility of the Company’s common stock and that of comparable companies and general economic and industry trends, among other considerations. When stock market or other conditions warrant, the Company expands its traditional impairment test methodology to give weight to other methods that provide additional observable market information in order to better reflect the current risk level being incorporated into market prices and in order to corroborate the fair values of each of the Company’s reporting units. Management will place increased reliance on these additional methods in conjunction with its DCF Models in the event that the total market capitalization of its stock drops below its consolidated stockholders’ equity balance for a sustained period of time.

Considerable management judgment is necessary in reaching a conclusion regarding the reasonableness of fair value estimates, evaluating the most likely impact of a range of possible external conditions, considering the resulting operating changes and their impact on estimated future cash flows, determining the appropriate discount factors to use, and selecting and weighting appropriate comparable market level inputs.

Annual Impairment Testing in the First Quarter of Fiscal Year 2014 - The Company 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 Years 2013 and 2012 - The Company performed its annual evaluations of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal years 2013 and 2012. As a result of its testing, the Company concluded no impairment charges were required in either fiscal year as 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 dates of each evaluation.

The following tables summarize by operating segment the changes in our goodwill and intangible assets for fiscal years

2014 and 2013:

GOODWILL AND INTANGIBLE ASSETS

(in thousands)

				Balances at																		Balances at
		Weighted		February 28, 2013								Year Ended February 28, 2014										February 28, 2014
		Average		Gross			Cumulative												Acquisition			Gross				Cumulative
		Life		Carrying			Goodwill												and Retirement			Carrying				Goodwill			Accumulated			Net Book
Description		(Years)		Amount			Impairments					Additions				Impairments			Adjustments			Amount				Impairments			Amortization			Value
Housewares:
Goodwill				$	166,132		$	-				$		-		$	-		$	-		$		166,132		$	-		$	-		$	166,132
Trademarks - indefinite				75,200			-					-				-			-			75,200				-			-			75,200
Other intangibles - finite		2.7		15,609			-					339				-			(255)			15,693				-			(11,149)			4,544
Total Housewares				256,941			-					339				-			(255)			257,025				-			(11,149)			245,876
Healthcare / Home Environment:
Goodwill				251,758			-					-				-			-			251,758				-			-			251,758
Trademarks - indefinite				54,000			-					-				-			-			54,000				-			-			54,000
Licenses - finite		3.0		15,300			-					-				-			-			15,300				-			(6,416)			8,884
Other Intangibles - finite		7.6		114,490			-					-				-			-			114,490				-			(34,606)			79,884
Total Healthcare / Home Environment				435,548			-					-				-			-			435,548				-			(41,022)			394,526
Personal Care:
Goodwill				81,841			(46,490)					-				-			-			81,841				(46,490)			-			35,351
Trademarks - indefinite				75,803			-					-				(12,049)			-			63,754				-			-			63,754
Trademarks - finite		14.6		150			-					-				-			-			150				-			(77)			73
Licenses - indefinite				10,300			-					-				-			-			10,300				-			-			10,300
Licenses - finite		6.5		18,683			-					-				-			-			18,683				-			(15,887)			2,796
Other intangibles - finite		4.0		49,437			-					-				-			-			49,437				-			(26,563)			22,874
Total Personal Care				236,214			(46,490)					-				(12,049)			-			224,165				(46,490)			(42,527)			135,148
Total				$	928,703		$	(46,490)				$		339		$	(12,049)		$	(255)		$		916,738		$	(46,490)		$	(94,698)		$	775,550

GOODWILL AND INTANGIBLE ASSETS

(in thousands)

				Balances at															Balances at
		Weighted		February 29, 2012						Year Ended February 28, 2013									February 28, 2013
		Average		Gross			Cumulative									Acquisition			Gross			Cumulative
		Life		Carrying			Goodwill									and Retirement			Carrying			Goodwill			Accumulated			Net Book
Description / Life		(Years)		Amount			Impairments			Additions			Impairments			Adjustments			Amount			Impairments			Amortization			Value
Housewares:
Goodwill				$	166,132		$	-		$	-		$	-		$	-		$	166,132		$	-		$	-		$	166,132
Trademarks - indefinite				75,200			-			-			-			-			75,200			-			-			75,200
Other intangibles - finite		3.7		15,774			-			278			-			(443)			15,609			-			(10,070)			5,539
Total Housewares				257,106			-			278			-			(443)			256,941			-			(10,070)			246,871
Healthcare / Home Environment:
Goodwill				250,867			-			-			-			891			251,758			-			-			251,758
Trademarks - indefinite				54,000			-			-			-			-			54,000			-			-			54,000
Licenses - finite		4.0		14,900			-			-			-			400			15,300			-			(3,455)			11,845
Other Intangibles - finite		8.6		114,790			-			-			-			(300)			114,490			-			(23,220)			91,270
Total Healthcare / Home Environment				434,557			-			-			-			991			435,548			-			(26,675)			408,873
Personal Care:
Goodwill				81,841			(46,490)			-			-			-			81,841			(46,490)			-			35,351
Trademarks - indefinite				75,303			-			500			-			-			75,803			-			-			75,803
Trademarks - finite		15.6		150			-			-			-			-			150			-			(72)			78
Licenses - indefinite				10,300			-			-			-			-			10,300			-			-			10,300
Licenses - finite		7.2		19,564			-			-			-			(881)			18,683			-			(15,570)			3,113
Other intangibles - finite		5.0		49,437			-			-			-			-			49,437			-			(20,957)			28,480
Total Personal Care				236,595			(46,490)			500			-			(881)			236,214			(46,490)			(36,599)			153,125
Total				$	928,258		$	(46,490)		$	778		$	-		$	(333)		$	928,703		$	(46,490)		$	(73,344)		$	808,869

The following table summarizes the amortization expense attributable to intangible assets for the fiscal years 2014, 2013

and 2012, as well as estimated amortization expense for the fiscal years 2015 through 2019:

AMORTIZATION OF INTANGIBLE ASSETS
(in thousands)
Aggregate Amortization Expense
For the fiscal years ended
February 2014		$	21,612
February 2013		$	22,400
February 2012		$	20,069
Estimated Amortization Expense
For the fiscal years ended
February 2015		$	21,021
February 2016		$	20,838
February 2017		$	20,523
February 2018		$	16,704
February 2019		$	12,000

Many of the license agreements under which we sell or intend to sell products with trademarks owned by other entities require that we pay minimum royalties.  Some license agreements also require that we make minimum levels of advertising expenditures. For fiscal year 2015, estimated minimum royalties due and minimum advertising expenditures under these license agreements total $12.69 and $5.06 million, respectively.

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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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 30

-Section 50

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-URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 20

-Section 50

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-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267



Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 30

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275



Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 350

-SubTopic 30

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275



Reference 5: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Section 50

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-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267

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