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Restructuring Plan | 12 Months Ended
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Feb. 28, 2025
Restructuring and Related Activities [Abstract] |
Restructuring Plan | Note 11 - Restructuring Plan As part of our global restructuring plan, Project Pegasus, we incur severance and employee related costs, professional fees, contract termination costs and other exit and disposal costs which are recorded as “Restructuring charges” in the consolidated statements of income. Severance and employee related costs consist primarily of salary continuation benefits, prorated annual incentive compensation (based on eligibility), outplacement services and continuation of health benefits. Severance and employee related benefits are pursuant to our severance plan and are accounted for in accordance with ASC 712, Compensation - Nonretirement Postemployment Benefits, based upon the characteristics of the termination benefits pursuant to our severance plan. Severance and employee related costs are recognized when the benefits are determined to be probable of being paid and reasonably estimable. Professional fees, contract termination costs and other exit and disposal costs are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations and are recognized as incurred. Restructuring accruals are based upon management estimates at the time and are subject to change depending upon changes in facts and circumstances subsequent to the date the original liability was recorded. During fiscal 2023, we initiated Project Pegasus, a global restructuring plan intended to expand operating margins through initiatives designed to improve efficiency and effectiveness and reduce costs. Project Pegasus includes initiatives to further optimize our brand portfolio, streamline and simplify the organization, accelerate and amplify cost of goods savings projects, enhance the efficiency of our supply chain network, optimize our indirect spending and improve our cash flow and working capital, as well as other activities. These initiatives have created operating efficiencies, as well as provided a platform to fund growth investments. During the fourth quarter of fiscal 2023, we made changes to the structure of our organization, which resulted in our previous Health & Wellness and Beauty operating segments being combined into a single reportable segment. As part of our initiative focused on streamlining and simplifying the organization, we made further changes to the structure of our organization, which included the creation of a North America Regional Market Organization (“RMO”) responsible for sales and go-to-market strategies for all categories and channels in the U.S. and Canada, and further centralization of certain functions under shared services, particularly in operations and finance to better support our business segments and RMOs. This new structure reduced the size of our global workforce by approximately 10%. We believe that these changes better focus business segment resources on brand development, consumer-centric innovation and marketing, the RMOs on sales and go-to-market strategies, and shared services on their respective areas of expertise while also creating a more efficient and effective organizational structure. During the second quarter of fiscal 2024, we announced plans to geographically consolidate the U.S. Beauty business, located in El Paso, Texas, and Irvine, California, and co-locate it with our Wellness business in the Boston, Massachusetts area. This geographic consolidation and relocation aligns with our initiative to streamline and simplify the organization and was completed during the third quarter of fiscal 2025. We expect these changes to enable a greater opportunity to capture synergies and enhance collaboration and innovation within the Beauty & Wellness segment. During the fourth quarter of fiscal 2025, we completed Project Pegasus, which resulted in total pre-tax restructuring charges of $60.9 million, of which $18.7 million were recognized in Home & Outdoor and $42.2 million in Beauty & Wellness. Total pre-tax restructuring charges were slightly above the high end of our range previously disclosed of $55 million primarily due to incurring higher severance and employee related costs, but well below our original expectations of $85 million to $95 million when the project was initiated. Pre-tax restructuring charges represented primarily cash expenditures and were substantially paid by the end of fiscal 2025, with a remaining liability of $7.7 million as of February 28, 2025, which is expected to be paid during fiscal 2026. For information regarding Project Pegasus savings, refer to Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “Project Pegasus” included within this Annual Report. During fiscal 2025, 2024 and 2023, we incurred $14.8 million, $18.7 million, and $27.4 million of pre-tax restructuring costs, respectively, in connection with Project Pegasus, which were recorded as “Restructuring charges” in the consolidated statements of income. The following tables summarize restructuring charges recorded as a result of Project Pegasus for the periods presented:
| Fiscal Year Ended February 28, 2025 |  | Total Incurred Since Inception
(in thousands) | Home & Outdoor |  |  |  |  |  | Beauty & Wellness |  | Total |
Severance and employee related costs | $ | 3,244 |  |  |  |  |  |  | $ | 6,140 |  |  | $ | 9,384 |  |  | $ | 24,660 |
Professional fees | 1,030 |  |  |  |  |  |  | 1,749 |  |  | 2,779 |  |  | 29,656 |
Contract termination | — |  |  |  |  |  |  | 1,747 |  |  | 1,747 |  |  | 3,078 |
Other | 581 |  |  |  |  |  |  | 331 |  |  | 912 |  |  | 3,502 |
Total restructuring charges | $ | 4,855 |  |  |  |  |  |  | $ | 9,967 |  |  | $ | 14,822 |  |  | $ | 60,896 |
| Fiscal Year Ended February 29, 2024
(in thousands) | Home & Outdoor |  |  |  |  |  | Beauty & Wellness |  | Total
Severance and employee related costs | $ | 1,046 |  |  |  |  |  |  | $ | 4,777 |  |  | $ | 5,823 |
Professional fees | 4,049 |  |  |  |  |  |  | 6,079 |  |  | 10,128 |
Contract termination | — |  |  |  |  |  |  | 796 |  |  | 796 |
Other (1) | 49 |  |  |  |  |  |  | 1,916 |  |  | 1,965 |
Total restructuring charges | $ | 5,144 |  |  |  |  |  |  | $ | 13,568 |  |  | $ | 18,712 |
(1)Includes a $1.8 million charge to write-off inventory, tooling and other production equipment as a result of abandoning a new product prior to its initial launch.
| Fiscal Year Ended February 28, 2023
(in thousands) | Home & Outdoor |  |  |  |  |  | Beauty & Wellness |  | Total
Severance and employee related costs | $ | 1,984 |  |  |  |  |  |  | $ | 7,469 |  |  | $ | 9,453 |
Professional fees | 6,674 |  |  |  |  |  |  | 10,075 |  |  | 16,749 |
Contract termination | — |  |  |  |  |  |  | 535 |  |  | 535 |
Other | 31 |  |  |  |  |  |  | 594 |  |  | 625 |
Total restructuring charges | $ | 8,689 |  |  |  |  |  |  | $ | 18,673 |  |  | $ | 27,362 |
The tables below present a rollforward of our accruals related to Project Pegasus, which are included in accounts payable and accrued expenses and other current liabilities:
(in thousands) | Balance at February 29, 2024 |  | Charges |  | Payments |  | Balance at February 28, 2025
Severance and employee related costs | $ | 4,493 |  |  | $ | 9,384 |  |  | $ | (6,749) |  |  | $ | 7,128 |
Professional fees | 272 |  |  | 2,779 |  |  | (2,538) |  |  | 513 |
Contract termination | — |  |  | 1,747 |  |  | (1,735) |  |  | 12 |
Other | — |  |  | 912 |  |  | (912) |  |  | — |
Total | $ | 4,765 |  |  | $ | 14,822 |  |  | $ | (11,934) |  |  | $ | 7,653 |
(in thousands) | Balance at February 28, 2023 |  | Charges |  | Payments |  | Balance at February 29, 2024
Severance and employee related costs | $ | 3,173 |  |  | $ | 5,823 |  |  | $ | (4,503) |  |  | $ | 4,493 |
Professional fees | 3,201 |  |  | 10,128 |  |  | (13,057) |  |  | 272 |
Contract termination | 160 |  |  | 796 |  |  | (956) |  |  | — |
Other | 34 |  |  | 194 |  |  | (228) |  |  | — |
Total | $ | 6,568 |  |  | $ | 16,941 |  |  | $ | (18,744) |  |  | $ | 4,765 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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