Goodwill and Intangible Assets

6 Months Ended

Aug. 31, 2015

Note 8 – Goodwill and Intangible Assets

Annual Impairment Testing in the First Quarter of Fiscal Year 2016 - We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2016. As a result of our testing of indefinite-lived trademarks, we recorded a non-cash asset impairment charge of $3.00 million ($2.66 million after tax). The charge was related to a trademark in our Beauty segment, which was written down to its 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 2015 - We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2015. As a result of our testing of indefinite-lived trademarks and licenses, we recorded a non-cash asset impairment charge of $9.00 million ($8.16 million after tax). The charge was related to certain trademarks in our Beauty 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.

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

GOODWILL AND INTANGIBLE ASSETS

(in thousands)


	August 31, 2015								February 28, 2015
	Gross		Cumulative						Gross		Cumulative
	Carrying		Goodwill		Accumulated		Net Book		Carrying		Goodwill		Accumulated		Net Book
	Amount		Impairments		Amortization		Value		Amount		Impairments		Amortization		Value
Housewares:
Goodwill	$	166,132	$	-	$	-	$	166,132	$	166,132	$	-	$	-	$	166,132
Trademarks - indefinite		75,200		-		-		75,200		75,200		-		-		75,200
Other intangibles - finite		15,818		-		(12,958)		2,860		15,754		-		(12,331)		3,423
Total Housewares		257,150		-		(12,958)		244,192		257,086		-		(12,331)		244,755

Healthcare / Home Environment:
Goodwill		284,510		-		-		284,510		251,758		-		-		251,758
Trademarks - indefinite		58,400		-		-		58,400		54,000		-		-		54,000
Licenses - finite		15,300		-		(11,220)		4,080		15,300		-		(9,377)		5,923
Licenses - indefinite		3,000		-		-		3,000		-		-		-		-
Other intangibles - finite		116,373		-		(49,373)		67,000		113,727		-		(43,848)		69,879
Total Healthcare / Home Environment		477,583		-		(60,593)		416,990		434,785		-		(53,225)		381,560

Nutritional Supplements:
Goodwill		96,609		-		-		96,609		96,486		-		-		96,486
Brand assets - indefinite		65,500		-		-		65,500		65,500		-		-		65,500
Other intangibles - finite		43,800		-		(7,300)		36,500		43,800		-		(4,171)		39,629
Total Nutritional Supplements		205,909		-		(7,300)		198,609		205,786		-		(4,171)		201,615

Beauty:
Goodwill		81,841		(46,490)		-		35,351		81,841		(46,490)		-		35,351
Trademarks - indefinite		51,754		-		-		51,754		54,754		-		-		54,754
Trademarks - finite		150		-		(85)		65		150		-		(82)		68
Licenses - finite		13,696		-		(11,374)		2,322		13,696		-		(11,216)		2,480
Licenses - indefinite		10,300		-		-		10,300		10,300		-		-		10,300
Other intangibles - finite		46,403		-		(31,836)		14,567		47,876		-		(30,602)		17,274
Total Beauty		204,144		(46,490)		(43,295)		114,359		208,617		(46,490)		(41,900)		120,227

Total goodwill and intangible assets	$	1,144,786	$	(46,490)	$	(124,146)	$	974,150	$	1,106,274	$	(46,490)	$	(111,627)	$	948,157

The following table summarizes the amortization expense attributable to intangible assets for the periods covered in this quarterly report, as well as our estimated amortization expense for the fiscal years 2016 through 2021.

AMORTIZATION OF INTANGIBLE ASSETS

(in thousands)


Aggregate Amortization Expense
For the three months ended
August 31, 2015	$	7,208
August 31, 2014	$	6,315

Aggregate Amortization Expense
For the six months ended
August 31, 2015	$	14,022
August 31, 2014	$	11,574


Estimated Amortization Expense
For the fiscal years ended

February 2016	$	27,660
February 2017	$	26,559
February 2018	$	23,105
February 2019	$	18,398
February 2020	$	16,790
February 2021	$	14,767

- 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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