Goodwill and Intangible Assets

6 Months Ended

Aug. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

We perform annual impairment tests each fiscal year during the fourth quarter and interim impairment tests, if and when necessary.

During the first quarter of fiscal 2018, we performed interim impairment testing for a certain brand in our Beauty segment due to a revised financial projection. As a result of our testing, we recorded a pre-tax non-cash asset impairment charge of $4.0 million ($3.6 million after tax). The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented:



	August 31, 2018										February 28, 2018
(in thousands)	Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value		Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value
Housewares:
Goodwill	$	282,056	$	—		$	—		$	282,056	$	282,056	$	—		$	—		$	282,056
Trademarks - indefinite	134,200		—			—			134,200		134,200		—			—			134,200
Other intangibles - finite	41,205		—			(18,476		)	22,729		40,828		—			(17,530		)	23,298
Subtotal	457,461		—			(18,476		)	438,985		457,084		—			(17,530		)	439,554

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		—			(15,300		)	—		15,300		—			(15,300		)	—
Licenses - indefinite	7,400		—			—			7,400		7,400		—			—			7,400
Other intangibles - finite	117,636		—			(82,536		)	35,100		117,586		—			(77,128		)	40,458
Subtotal	479,249		—			(97,836		)	381,413		479,199		—			(92,428		)	386,771

Beauty:
Goodwill	81,841		(46,490		)	—			35,351		81,841		(46,490		)	—			35,351
Trademarks - indefinite	30,407		—			—			30,407		30,407		—			—			30,407
Trademarks - finite	150		—			(100		)	50		150		—			(97		)	53
Licenses - indefinite	10,300		—			—			10,300		10,300		—			—			10,300
Licenses - finite	13,696		—			(12,324		)	1,372		13,696		—			(12,166		)	1,530
Other intangibles - finite	46,402		—			(46,095		)	307		46,402		—			(45,133		)	1,269
Subtotal	182,796		(46,490		)	(58,519		)	77,787		182,796		(46,490		)	(57,396		)	78,910
Total	$	1,119,506	$	(46,490	)	$	(174,831	)	$	898,185	$	1,119,079	$	(46,490	)	$	(167,354	)	$	905,235

The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2019 through 2024:



Aggregate Amortization Expense
For the three months ended (in thousands)
August 31, 2018	$	3,402
August 31, 2017	4,690



Aggregate Amortization Expense
For the six months ended (in thousands)
August 31, 2018	$	7,522
August 31, 2017	9,538



Estimated Amortization Expense (in thousands)
Fiscal 2019	$	14,050
Fiscal 2020	13,121
Fiscal 2021	10,461
Fiscal 2022	4,049
Fiscal 2023	3,974
Fiscal 2024	3,665

- 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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