Assets Held for Sale

12 Months Ended

Feb. 28, 2021

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]

Note 4 - Assets Held for Sale

We record assets held for sale in accordance with ASC 360 “Property, Plant, and Equipment,” and present them as single asset amounts in our consolidated financial statements. Assets held for sale consist of assets that we expect to sell within the next year. The assets are reported at the lower of carrying amount or fair value less costs to sell. We cease recording depreciation on assets that are classified as held for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of held for sale. We review assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values less costs to sell.

During the fourth quarter of fiscal 2020, we committed to a plan to divest certain assets within our Personal Care business. The assets to be disposed of include intangible assets, inventory, certain net trade receivables and fixed assets relating to our mass channel liquids, powder and aerosol products under brands such as Pert, Brut, Sure and Infusium. Accordingly, we classified the identified assets of the disposal group as held for sale during the fourth quarter of fiscal 2020. During the fourth quarter of fiscal 2020, we recorded non-cash asset impairment charges of $41.0 million ($36.4 million after tax) related to goodwill and intangible assets.

During the fourth quarter of fiscal 2021, our quarterly impairment evaluation of long-lived assets held for sale resulted in a non-cash asset impairment charge of $8.5 million ($7.4 million after tax) to reduce the goodwill of our Personal Care business to reflect the disposal group at fair value less cost to sell. We expect the divestiture to occur during the first quarter of fiscal 2022.

The carrying amounts of the major classes of assets for our Personal Care business that were classified as held for sale are as follows:



(in thousands)	February 28, 2021		February 29, 2020

Receivables, net of allowance of $30	$	7,979	$	—
Inventory	12,667		17,150
Property and equipment, net of accumulated depreciation of $403	100		83
Goodwill, net of accumulated impairment of $80,445 and $71,993	1,397		9,849
Other intangible assets, net of accumulated amortization of $4,474	17,724		17,724
Assets held for sale	$	39,867	$	44,806

The following table summarizes income (loss) before income tax for our Personal Care business:


	Fiscal Years Ended Last Day of February,
(in thousands)	2021		2020		2019
Income (loss) before income tax	$	8,705	$	(29,760)	$	23,190

Income (loss) before income taxes includes non-cash asset impairment charges of $8.5 million and $41.0 million for fiscal 2021 and 2020, respectively, and amortization of intangible assets of $7.8 million and $1.0 million for fiscal 2020 and 2019, respectively. No asset impairment charges were recorded in fiscal 2019 and no amortization of intangible assets was recorded in fiscal 2021 for our Personal Care business. Income (loss) before income taxes also includes corporate overhead expenses that are allocable to the business.