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Goodwill and Intangibles | 12 Months Ended
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Feb. 28, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangibles | Goodwill and Intangibles We do not record amortization expense for goodwill or other intangible assets that have indefinite useful lives. Amortization expense is recorded for intangible assets with definite useful lives. Some of our goodwill is held in jurisdictions that allow deductions for tax purposes, however, in some of those jurisdictions we have no tax basis for the associated goodwill recorded for book purposes. Accordingly, the majority of our goodwill is not deductible for tax purposes. We perform annual impairment testing each fiscal year and interim impairment testing, if necessary. We write down any asset deemed to be impaired to its fair value. Our impairment test methodology uses primarily estimated future discounted cash flow models (“DCF Models”). The DCF Models use a number of assumptions including expected future cash flows from the assets, volatility, risk free rate, and the expected life of the assets, the determination of which require significant judgments from management. In determining the assumptions to be used, we consider the existing rates on Treasury Bills, yield spreads on assets with comparable expected lives, historical volatility of our common stock and that of comparable companies, and general economic and industry trends, among other considerations. When stock market or other conditions warrant, we expand our traditional impairment test methodology to give weight to other methods that provide additional observable market information in order to better reflect the current risk level being incorporated into market prices and in order to corroborate the fair values of each of our reporting units. Management will place increased reliance on these additional methods in conjunction with its DCF Models in the event that the total market capitalization of its stock drops below its consolidated stockholders’ equity balance for a sustained period. Considerable management judgment is necessary in reaching a conclusion regarding the reasonableness of fair value estimates, evaluating the most likely impact of a range of possible external conditions, considering the resulting operating changes and their impact on estimated future cash flows, determining the appropriate discount factors to use, and selecting and weighting appropriate comparable market level inputs. The fair values used in our impairment tests are determined using estimated future discounted cash flows and relative market-based data. The valuation techniques utilized assumptions we believed to be appropriate in the circumstances; however, future circumstances attributable to a strategic change in our business could result in changes to those assumptions and other charges or losses relating our segments may be recorded and could be material. We are unable to project the amount of any expense, charge or loss that may be incurred in future periods. Impairment Testing in Fiscal 2019 - We did not record any impairment charges related to goodwill or intangible assets during fiscal 2019. Impairment Testing in Fiscal 2018 - As a result of our testing of indefinite-lived trademarks, we recorded non-cash asset impairment charges of $15.4 million ($13.8 million after tax) during fiscal 2018. The charges were related to trademarks in our Beauty segment, which were written down to their estimated fair values, determined on the basis of our estimated future discounted cash flows using the relief from royalty valuation method. Impairment Testing in Fiscal 2017 - As a result of our testing of indefinite-lived trademarks, we recorded non-cash impairment charges of $2.9 million ($2.5 million after tax) during fiscal 2017. The charges were related to certain trademarks in our Beauty segment, which were written down to estimated fair value, determined on the basis of estimated future discounted cash flows using the relief from royalty valuation method. The following tables summarize the changes in our goodwill and intangible assets by segment for fiscal 2019 and 2018:
|  |  | Balances at February 28, 2018 |  | Year Ended February 28, 2019 |  | Balances at February 28, 2019
(in thousands) | Weighted Average Life |  | Gross Carrying Amount | Cumulative Goodwill Impairments |  | Additions | Impairments | Retirement Adjustments |  | Gross Carrying Amount | Cumulative Goodwill Impairments | Accumulated Amortization | Net Book Value
Housewares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | $ | 282,056 |  | $ | — |  |  | $ | — |  | $ | — |  | $ | — |  |  | $ | 282,056 |  | $ | — |  | $ | — |  | $ | 282,056 |
Trademarks - indefinite |  |  | 134,200 |  | — |  |  | — |  | — |  | — |  |  | 134,200 |  | — |  | — |  | 134,200 |
Other intangibles - finite | 14.7 |  | 40,828 |  | — |  |  | 684 |  | — |  | (95 | ) |  | 41,417 |  | — |  | (19,398 | ) | 22,019 |
Subtotal |  |  | 457,084 |  | — |  |  | 684 |  | — |  | (95 | ) |  | 457,673 |  | — |  | (19,398 | ) | 438,275 |
Health & Home: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 284,913 |  | — |  |  | — |  | — |  | — |  |  | 284,913 |  | — |  | — |  | 284,913 |
Trademarks - indefinite |  |  | 54,000 |  | — |  |  | — |  | — |  | — |  |  | 54,000 |  | — |  | — |  | 54,000 |
Licenses - finite | 4.7 |  | 15,300 |  | — |  |  | 1,750 |  | — |  | — |  |  | 17,050 |  | — |  | (15,402 | ) | 1,648 |
Licenses - indefinite |  |  | 7,400 |  | — |  |  | — |  | — |  | — |  |  | 7,400 |  | — |  | — |  | 7,400 |
Other Intangibles - finite | 5.5 |  | 117,586 |  | — |  |  | 381 |  | — |  | — |  |  | 117,967 |  | — |  | (87,953 | ) | 30,014 |
Subtotal |  |  | 479,199 |  | — |  |  | 2,131 |  | — |  | — |  |  | 481,330 |  | — |  | (103,355 | ) | 377,975 |
Beauty: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 81,841 |  | (46,490 | ) |  | — |  | — |  | — |  |  | 81,841 |  | (46,490 | ) | — |  | 35,351 |
Trademarks - indefinite |  |  | 30,407 |  | — |  |  | — |  | — |  | — |  |  | 30,407 |  | — |  | — |  | 30,407 |
Trademarks - finite | 9.6 |  | 150 |  | — |  |  | — |  | — |  | — |  |  | 150 |  | — |  | (102 | ) | 48 |
Licenses - indefinite |  |  | 10,300 |  | — |  |  | — |  | — |  | — |  |  | 10,300 |  | — |  | — |  | 10,300 |
Licenses - finite | 3.8 |  | 13,696 |  | — |  |  | — |  | — |  | — |  |  | 13,696 |  | — |  | (12,482 | ) | 1,214 |
Other intangibles - finite | 4.6 |  | 46,402 |  | — |  |  | — |  | — |  | — |  |  | 46,402 |  | — |  | (46,126 | ) | 276 |
Subtotal |  |  | 182,796 |  | (46,490 | ) |  | — |  | — |  | — |  |  | 182,796 |  | (46,490 | ) | (58,710 | ) | 77,596 |
Total |  |  | $ | 1,119,079 |  | $ | (46,490 | ) |  | $ | 2,815 |  | $ | — |  | $ | (95 | ) |  | $ | 1,121,799 |  | $ | (46,490 | ) | $ | (181,463 | ) | $ | 893,846 |
(in thousands) | Weighted Average Life (Years) |  | Balances at February 28, 2017 |  | Year Ended February 28, 2018 |  | Balances at February 28, 2018
| Gross Carrying Amount | Cumulative Goodwill Impairments |  | Additions | Impairments | Retirement Adjustments |  | Gross Carrying Amount | Cumulative Goodwill Impairments | Accumulated Amortization | Net Book Value
Housewares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | $ | 282,056 |  | $ | — |  |  | $ | — |  | $ | — |  | $ | — |  |  | $ | 282,056 |  | $ | — |  | $ | — |  | $ | 282,056 |
Trademarks - indefinite |  |  | 134,200 |  | — |  |  | — |  | — |  | — |  |  | 134,200 |  | — |  | — |  | 134,200 |
Other intangibles - finite | 15.7 |  | 40,393 |  | — |  |  | 607 |  | — |  | (173 | ) |  | 40,828 |  | — |  | (17,530 | ) | 23,298 |
Subtotal |  |  | 456,649 |  | — |  |  | 607 |  | — |  | (173 | ) |  | 457,084 |  | — |  | (17,530 | ) | 439,554 |
Health & Home: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 284,913 |  | — |  |  | — |  | — |  | — |  |  | 284,913 |  | — |  | — |  | 284,913 |
Trademarks - indefinite |  |  | 54,000 |  | — |  |  | — |  | — |  | — |  |  | 54,000 |  | — |  | — |  | 54,000 |
Licenses - finite |  |  | 15,300 |  | — |  |  | — |  | — |  | — |  |  | 15,300 |  | — |  | (15,300 | ) | — |
Licenses - indefinite |  |  | 7,400 |  | — |  |  | — |  | — |  | — |  |  | 7,400 |  | — |  | — |  | 7,400 |
Other Intangibles - finite | 5.8 |  | 116,982 |  | — |  |  | 605 |  | — |  | — |  |  | 117,586 |  | — |  | (77,128 | ) | 40,458 |
Subtotal |  |  | 478,595 |  | — |  |  | 605 |  | — |  | — |  |  | 479,199 |  | — |  | (92,428 | ) | 386,771 |
Beauty: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 81,841 |  | (46,490 | ) |  | — |  | — |  | — |  |  | 81,841 |  | (46,490 | ) | — |  | 35,351 |
Trademarks - indefinite |  |  | 45,854 |  | — |  |  | — |  | (15,447 | ) | — |  |  | 30,407 |  | — |  | — |  | 30,407 |
Trademarks - finite | 10.6 |  | 150 |  | — |  |  | — |  | — |  | — |  |  | 150 |  | — |  | (97 | ) | 53 |
Licenses - indefinite |  |  | 10,300 |  | — |  |  | — |  | — |  | — |  |  | 10,300 |  | — |  | — |  | 10,300 |
Licenses - finite | 4.8 |  | 13,696 |  | — |  |  | — |  | — |  | — |  |  | 13,696 |  | — |  | (12,166 | ) | 1,530 |
Other intangibles - finite | 1.7 |  | 46,402 |  | — |  |  | — |  | — |  | — |  |  | 46,402 |  | — |  | (45,133 | ) | 1,269 |
Subtotal |  |  | 198,243 |  | (46,490 | ) |  | — |  | (15,447 | ) | — |  |  | 182,796 |  | (46,490 | ) | (57,396 | ) | 78,910 |
Total |  |  | $ | 1,133,487 |  | $ | (46,490 | ) |  | $ | 1,212 |  | $ | (15,447 | ) | $ | (173 | ) |  | $ | 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 consolidated statements of income for fiscal 2019, 2018 and 2017, as well as estimated amortization expense for fiscal 2020 through 2024:
Aggregate Amortization Expense (in thousands) |
Fiscal 2019 | $ | 14,204 |
Fiscal 2018 | 18,854 |
Fiscal 2017 | 22,024 |
Estimated Amortization Expense (in thousands) |  |
Fiscal 2020 | $ | 13,142 |
Fiscal 2021 | 10,563 |
Fiscal 2022 | 4,057 |
Fiscal 2023 | 3,986 |
Fiscal 2024 | 3,679 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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