Property and Equipment

12 Months Ended

Feb. 28, 2017

Note 5 – Property and Equipment

A summary of property and equipment is as follows:

PROPERTY AND EQUIPMENT


	Estimated
	Useful Lives			February 28,		February 29,
(in thousands)	(Years)			2017		2016
Land		-		$	12,800	$	12,800
Building and improvements	3	-	40		109,026		108,509
Computer, furniture and other equipment	3	-	15		81,122		70,778
Tools, molds and other production equipment	1	-	10		31,157		28,254
Construction in progress		-			7,391		4,050
Property and equipment, gross					241,496		224,391
Less accumulated depreciation					(106,561)		(93,926)
Property and equipment, net				$	134,935	$	130,465

We recorded $16.0, $15.0 and $14.3 million of depreciation expense including $4.6, $4.3 and $3.8 million in cost of goods sold and $11.4, $10.7 and $10.5 million in SG&A in the consolidated statements of income for fiscal 2017, 2016 and 2015, respectively.

We lease certain facilities, equipment and vehicles under operating leases, which expire at various dates through fiscal 2027. Certain of the leases contain escalation clauses and renewal or purchase options. Rent expense related to our operating leases was $6.1, $5.9 and $5.0 million for fiscal 2017, 2016 and 2015, respectively.

As of February 29, 2016, we recorded non-cash impairment charges totaling $0.1 million, before and after tax, to reflect Venezuelan property and equipment at its estimated fair value. See Note 3 to these consolidated financial statements for additional information regarding the impairment of assets as a result of recent developments in Venezuela.

During the second quarter of fiscal 2016, we substantially completed the transition of our Nutritional Supplements segment’s distribution operation from a third party logistics provider to our Southaven, Mississippi facility in order to better control its operations, more efficiently utilize our facilities and reduce overall distribution costs. Capital expenditures for fiscal 2016 included $1.7 million in connection with this project.