Goodwill and Intangibles

12 Months Ended

Feb. 28, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Note 9 - 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 and is reported within SG&A in our consolidated statements of income. 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.

Impairment Testing in Fiscal 2021 - 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. See Note 4 for additional information.

Impairment Testing in Fiscal 2020 - We recorded non-cash asset impairment charges related to goodwill and intangible assets of $41.0 million ($36.4 million after tax). The charges were related to Personal Care, which was written down to its estimated fair value, and classified as held for sale.

Impairment Testing in Fiscal 2019 - We did not record any impairment charges.

The following table summarizes the changes in our goodwill by segment for fiscal 2020:


(in thousands)	Housewares		Health & Home		Beauty		Total
Gross carrying amount as of February 28, 2019	$	282,056	$	284,913	$	81,841	$	648,810
Accumulated impairment as of February 28, 2019	—		—		(46,490)		(46,490)
Acquisitions	—		—		172,933		172,933

Impairment charges	—		—		(25,503)		(25,503)
Reclassification to held for sale (1)	—		—		(9,849)		(9,849)
Gross carrying amount as of February 29, 2020	282,056		284,913		172,932		739,901
Accumulated impairment as of February 29, 2020	—		—		—		—




Net carrying amount as of February 29, 2020	$	282,056	$	284,913	$	172,932	$	739,901

(1)In fiscal 2020, we reclassified the remaining goodwill associated with our Personal Care business of $9.8 million, including the related accumulated impairment of $72.0 million to assets held for sale. See Note 4 for additional information.

There were no changes to the gross carrying amount or accumulated impairment of our goodwill associated with our assets held and used during fiscal 2021.

The following table summarizes the components of our other intangible assets as follows:


	February 28, 2021						February 29, 2020
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived:
Licenses	$	7,400	$	—	$	7,400	$	7,400	$	—	$	7,400
Trademarks	188,200		—		188,200		188,200		—		188,200

Definite-lived:
Licenses	87,946		(14,800)		73,146		30,747		(28,552)		2,195
Trademarks	30,150		(2,327)		27,823		30,150		(322)		29,828
Other Intangibles	194,808		(134,113)		60,695		193,346		(120,017)		73,329
Total	$	508,504	$	(151,240)	$	357,264	$	449,843	$	(148,891)	$	300,952

On December 22, 2020, we entered into an amended and extended Trademark License Agreement with Revlon to license Revlon’s trademark for hair care appliances and tools (the “Revlon License”). The Revlon License grants us an exclusive, global, fully paid-up license to use the licensed trademark to manufacture, sell and distribute licensed merchandise in accordance with the terms of the agreement. The Revlon License has an initial term of 40 years, which will automatically renew at the end of the initial term for three consecutive additional 20-year periods unless we give notice of non-renewal. The Revlon License amends and restates the existing Revlon trademark licensing agreements entirely, and eliminates ongoing royalties we have historically paid and recognized as expense within SG&A in accordance with such agreements. In exchange for this exclusive global license, we paid a one-time, up-front license fee of $72.5 million, which was recorded as an intangible asset at cost and is being amortized on a straight-line basis over a useful life of 40 years, representing the initial term.

The following tables summarize amortization expense related to intangible assets as follows:


Aggregate Amortization Expense (in thousands)
Fiscal 2021	$	17,643
Fiscal 2020	21,271
Fiscal 2019	14,204


Estimated Amortization Expense (in thousands)
Fiscal 2022	$	11,881
Fiscal 2023	11,860
Fiscal 2024	11,739
Fiscal 2025	11,134
Fiscal 2026	9,086