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PROPERTY AND EQUIPMENT
 12 Months Ended
Feb. 28, 2015
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 4 – PROPERTY AND EQUIPMENT

 

A summary of property and equipment is as follows:

 

 

PROPERTY AND EQUIPMENT

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

 

 

Useful Lives

 

Balances at February 28, 

 

    

(Years)

    

2015

    

2014

Land

 

 

 -

 

 

$
12,800 

 

$
12,800 

Building and improvements

 
3 

 -

40

 

 
102,058 

 

 
98,660 

Computer, furniture and other equipment

 
3 

 -

15

 

 
64,464 

 

 
60,291 

Tools, molds and other production equipment

 
1 

 -

10

 

 
25,861 

 

 
23,017 

Construction in progress

 

 

 -

 

 

 
3,039 

 

 
5,865 

Property and equipment, gross

 

 

 

 

 

 
208,222 

 

 
200,633 

Less accumulated depreciation

 

 

 

 

 

 
(82,154)

 

 
(71,516)

Property and equipment, net

 

 

 

 

 

$
126,068 

 

$
129,117 

 

We recorded $14.33,  $12.23 and $12.03 million of depreciation expense for fiscal years 2015,  2014 and 2013, respectively.  Capital expenditures for property and equipment totaled $5.36,  $40.12 and $13.61 million in fiscal years 2015,  2014 and 2013, respectively.

 

We lease certain facilities, equipment and vehicles under operating leases, which expire at various dates through fiscal year 2025. Certain of the leases contain escalation clauses and renewal or purchase options. Rent expense related to our operating leases was $5.01,  $5.68 and $6.39 million for fiscal years 2015,  2014 and 2013, respectively.  During the third quarter of fiscal year 2014, in connection with our move to a new distribution facility discussed below, we terminated the lease of our previous 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 consolidated 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.

 

During the first quarter of fiscal year 2015, we completed the transition of our domestic Personal Care appliance distribution operation to the new facility. The capital expenditures made in connection with the Personal Care appliance transition were not material. See Note (10) to these consolidated financial statements for related information regarding the debt incurred to fund the construction of the new distribution facility.