Assets and Liabilities Held for Sale

12 Months Ended

Feb. 28, 2022

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

Note 4 - Assets and Liabilities 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 and accordingly, we classified the identified net assets of the disposal group as held for sale. During the fourth quarter of fiscal 2020, we recorded 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 an 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.

On June 7, 2021, we completed the sale of our North America Personal Care business to HRB Brands LLC, for $44.7 million in cash and recognized a gain on the sale in SG&A totaling $0.5 million. The net assets sold included intangible assets, inventory, certain net trade receivables, fixed assets and certain accrued sales discounts and allowances relating to our Personal Care business. Accordingly, we continued to classify the identified net assets of the Latin America and Caribbean Personal Care businesses as held for sale in our fiscal 2022 consolidated balance sheet.

Subsequent to our fiscal 2022 year end, on March 25, 2022, we completed the sale of the Latin America and Caribbean Personal Care businesses to HRB Brands LLC, for $1.8 million in cash.

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



(in thousands)	February 28, 2022		February 28, 2021

Receivables, net of allowance of $23 and $30	$	1,265	$	7,979
Inventory	611		12,667
Property and equipment, net of accumulated depreciation of $152 and $403	66		100
Goodwill (1)	—		1,397
Other intangible assets (1)	—		17,724
Assets held for sale	$	1,942	$	39,867

Accrued sales discounts and allowances	$	235	$	—
Liabilities held for sale	$	235	$	—

(1)Goodwill and other intangible assets as of February 28, 2021 are presented net of accumulated impairment and accumulated amortization of $80,445 and $4,474, respectively.

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


	Fiscal Years Ended Last Day of February,
(in thousands)	2022		2021		2020
Income (loss) before income tax	$	5,546	$	8,705	$	(29,760)

Income (loss) before income taxes includes 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 for fiscal 2020. No impairment charges were recorded in fiscal 2022. No amortization of intangible assets was recorded in fiscal 2022 or 2021 for our Personal Care business. Income (loss) before income taxes also includes corporate overhead expenses that are allocable to the business.