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Goodwill and Intangible Assets | 3 Months Ended
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May 31, 2016
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | Note 8 – Goodwill and Intangible Assets Annual Impairment Testing in the First Quarter of Fiscal Year 2017 - We performed our annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal year 2017. As a result of our testing of indefinite-lived trademarks, we recorded non-cash asset impairment charges of $7.40 million ($5.10 million after tax). The charges were related to certain brand assets and trademarks in our Beauty and Nutritional Supplements segments, which were written down to their estimated fair values, determined on the basis of future discounted cash flows using the relief from royalty valuation method. Impairments in the Fourth Quarter of Fiscal Year 2016 – We performed certain interim impairment testing in the fourth quarter of fiscal year 2016 for certain of our brands as a result of revised growth outlooks. As a result of our testing, we recorded a non-cash 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 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 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. 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, 2016 |  | February 29, 2016
|  | Gross |  | Cumulative |  |  |  |  |  |  |  | Gross |  | Cumulative |  |  |  |  |  |
|  | Carrying |  | Goodwill |  | Accumulated |  | Net Book |  | Carrying |  | Goodwill |  | Accumulated |  | Net Book
|  | Amount |  | Impairments |  | Amortization |  | Value |  | Amount |  | Impairments |  | Amortization |  | Value
Housewares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (1) |  | $ | 281,621 |  | $ | - |  | $ | - |  | $ | 281,621 |  | $ | 166,132 |  | $ | - |  | $ | - |  | $ | 166,132
Trademarks - indefinite (1) |  |  | 134,200 |  |  | - |  |  | - |  |  | 134,200 |  |  | 75,200 |  |  | - |  |  | - |  |  | 75,200
Other intangibles - finite (1) |  |  | 40,078 |  |  | - |  |  | (13,553) |  |  | 26,525 |  |  | 15,448 |  |  | - |  |  | (12,916) |  |  | 2,532
Total Housewares |  |  | 455,899 |  |  | - |  |  | (13,553) |  |  | 442,346 |  |  | 256,780 |  |  | - |  |  | (12,916) |  |  | 243,864
Health & Home: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 284,913 |  |  | - |  |  | - |  |  | 284,913 |  |  | 284,913 |  |  | - |  |  | - |  |  | 284,913
Trademarks - indefinite |  |  | 54,000 |  |  | - |  |  | - |  |  | 54,000 |  |  | 54,000 |  |  | - |  |  | - |  |  | 54,000
Licenses - finite |  |  | 15,300 |  |  | - |  |  | (13,515) |  |  | 1,785 |  |  | 15,300 |  |  | - |  |  | (12,750) |  |  | 2,550
Licenses - indefinite |  |  | 7,400 |  |  | - |  |  | - |  |  | 7,400 |  |  | 7,400 |  |  | - |  |  | - |  |  | 7,400
Other intangibles - finite |  |  | 116,669 |  |  | - |  |  | (57,687) |  |  | 58,982 |  |  | 116,575 |  |  | - |  |  | (54,913) |  |  | 61,662
Total Health & Home |  |  | 478,282 |  |  | - |  |  | (71,202) |  |  | 407,080 |  |  | 478,188 |  |  | - |  |  | (67,663) |  |  | 410,525
Nutritional Supplements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 96,609 |  |  | - |  |  | - |  |  | 96,609 |  |  | 96,609 |  |  | - |  |  | - |  |  | 96,609
Brand assets - indefinite |  |  | 60,520 |  |  | - |  |  | - |  |  | 60,520 |  |  | 65,520 |  |  | - |  |  | - |  |  | 65,520
Other intangibles - finite |  |  | 44,180 |  |  | - |  |  | (12,002) |  |  | 32,178 |  |  | 44,180 |  |  | - |  |  | (10,431) |  |  | 33,749
Total Nutritional Supplements |  |  | 201,309 |  |  | - |  |  | (12,002) |  |  | 189,307 |  |  | 206,309 |  |  | - |  |  | (10,431) |  |  | 195,878
Beauty: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 81,841 |  |  | (46,490) |  |  | - |  |  | 35,351 |  |  | 81,841 |  |  | (46,490) |  |  | - |  |  | 35,351
Trademarks - indefinite |  |  | 46,354 |  |  | - |  |  | - |  |  | 46,354 |  |  | 48,754 |  |  | - |  |  | - |  |  | 48,754
Trademarks - finite |  |  | 150 |  |  | - |  |  | (88) |  |  | 62 |  |  | 150 |  |  | - |  |  | (87) |  |  | 63
Licenses - finite |  |  | 13,696 |  |  | - |  |  | (11,612) |  |  | 2,084 |  |  | 13,696 |  |  | - |  |  | (11,532) |  |  | 2,164
Licenses - indefinite |  |  | 10,300 |  |  | - |  |  | - |  |  | 10,300 |  |  | 10,300 |  |  | - |  |  | - |  |  | 10,300
Other intangibles - finite |  |  | 46,402 |  |  | - |  |  | (35,899) |  |  | 10,503 |  |  | 46,402 |  |  | - |  |  | (34,545) |  |  | 11,857
Total Beauty |  |  | 198,743 |  |  | (46,490) |  |  | (47,599) |  |  | 104,654 |  |  | 201,143 |  |  | (46,490) |  |  | (46,164) |  |  | 108,489
Total goodwill and intangible assets |  | $ | 1,334,233 |  | $ | (46,490) |  | $ | (144,356) |  | $ | 1,143,387 |  | $ | 1,142,420 |  | $ | (46,490) |  | $ | (137,174) |  | $ | 958,756
(1) Includes goodwill of $116.05 million, trade names of $59.00 million, and other finite lived intangible assets totaling $24.50 million from the acquisition of Hydro Flask on March 18, 2016. See Note 9 to these consolidated condensed financial statements for further information regarding the acquisition. 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 2017 through 2022. AMORTIZATION OF INTANGIBLE ASSETS (in thousands)
Aggregate Amortization Expense |  |  |
For the three months ended
May 31, 2016 |  | $ | 7,204
May 31, 2015 |  | $ | 6,814
Estimated Amortization Expense |  |  |
For the fiscal years ended
February 2017 |  | $ | 28,197
February 2018 |  | $ | 24,986
February 2019 |  | $ | 20,423
February 2020 |  | $ | 19,183
February 2021 |  | $ | 16,282
February 2022 |  | $ | 5,972

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- 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. + References Reference 1: 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 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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