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Business Segments
12 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Business Segments
Business Segments

Segment information has been prepared in accordance with Segment Reporting topic of the FASB ASC 280 and includes certain information that our chief operating decision maker, the Company's Chief Executive Officer, reviews, including contribution margin, which is a non-GAAP financial measure. Contribution margin is defined as gross profit less advertising and promotional expenses. Our general and administrative expenses and other corporate-level activity is not allocated to our segments, including costs of: employee-related costs; legal; finance; information technology; corporate development; legal settlements; depreciation and amortization; and facility and insurance costs. Our current operating and reportable segments consist of (i) OTC Healthcare and (ii) Household Cleaning.

There were no inter-segment sales or transfers during any of the periods presented.  We evaluate the performance of our operating segments and allocate resources to them based primarily on contribution margin.  

The table below summarizes information about our operating and reportable segments.
 
 
Year Ended March 31, 2014
 
 
OTC
Healthcare
 
Household
Cleaning
 
Consolidated
(In thousands)
 
 
 
 
 
 
Net sales
 
$
513,056

 
$
83,898

 
$
596,954

Other revenues
 
791

 
4,136

 
4,927

Total revenues
 
513,847

 
88,034

 
601,881

Cost of sales
 
197,442

 
64,388

 
261,830

Gross profit
 
316,405

 
23,646

 
340,051

Advertising and promotion
 
86,578

 
2,890

 
89,468

Contribution margin
 
$
229,827

 
$
20,756

 
250,583

Other operating expenses
 
 

 
 

 
61,967

Operating income
 
 

 
 

 
188,616

Other expense
 
 

 
 

 
86,868

Income before income taxes
 
 
 
 
 
101,748

Provision for income taxes
 
 

 
 

 
29,133

Net income
 
 
 
 
 
$
72,615


 
 
Year Ended March 31, 2013
 
 
OTC
Healthcare
 
Household
Cleaning
 
Consolidated
(In thousands)
 
 
 
 
 
 
Net sales
 
$
536,247

 
$
84,147

 
$
620,394

Other revenues
 
684

 
2,519

 
3,203

Total revenues
 
536,931

 
86,666

 
623,597

Cost of sales
 
211,654

 
64,727

 
276,381

Gross profit
 
325,277

 
21,939

 
347,216

Advertising and promotion
 
84,537

 
6,093

 
90,630

Contribution margin
 
$
240,740

 
$
15,846

 
256,586

Other operating expenses
 
 

 
 

 
64,702

Operating income
 
 

 
 

 
191,884

Other expense
 
 

 
 

 
85,850

Income before income taxes
 
 
 
 
 
106,034

Provision for income taxes
 
 

 
 

 
40,529

Net income
 
 

 
 

 
$
65,505

 
 
Year Ended March 31, 2012
 
 
OTC
Healthcare
 
Household
Cleaning
 
Consolidated
(In thousands)
 
 
 
 
 
 
Net sales
 
$
344,282

 
$
93,556

 
$
437,838

Other revenues
 
719

 
2,528

 
3,247

Total revenues
 
345,001

 
96,084

 
441,085

Cost of sales
 
143,151

 
70,550

 
213,701

Gross profit
 
201,850

 
25,534

 
227,384

Advertising and promotion
 
51,895

 
5,232

 
57,127

Contribution margin
 
$
149,955

 
$
20,302

 
170,257

Other operating expenses
 
 

 
 

 
67,434

Operating income
 
 

 
 

 
102,823

Other expense
 
 

 
 

 
41,666

Income before income taxes
 
 
 
 
 
61,157

Provision for income taxes
 
 

 
 

 
23,945

Net income
 
 

 
 

 
$
37,212



 
 
Year Ended March 31,
(In thousands)
 
2014

2013

2012

Analgesics
 
$
110,604

$
108,144

$
18,930

Cough & Cold
 
115,241

126,974

116,669

Gastrointestinal
 
83,971

97,940

29,489

Eye & Ear Care
 
86,390

86,380

74,363

Dermatologicals
 
52,363

52,401

52,592

Oral Care
 
48,774

49,617

46,551

Other OTC
 
16,504

15,475

6,407

Total OTC Healthcare Segment
 
513,847

536,931

345,001

Household Cleaning Segment
 
88,034

86,666

96,084

Consolidated Net Revenues
 
$
601,881

$
623,597

$
441,085



During 2014, 2013, and 2012, approximately 86.9%, 89.9%, and 90.2%, respectively of our sales were made to customers in the United States. Other than the United States, no individual geographical area accounted for more than 10% of net sales in any of the periods presented. Sales to Canada accounted for 7.7%, 7.4%, and 6.3% of our total revenues for 2014, 2013, and 2012, respectively. At March 31, 2014, substantially all of our long-term assets were located in the United States of America and have been allocated to the operating segments as follows:

(In thousands)
 
OTC Healthcare
 
Household Cleaning
 
Consolidated
Goodwill
 
$
183,522

 
$
7,389

 
$
190,911

 
 
 
 
 
 
 
Intangible assets
 
 
 
 
 
 
Indefinite-lived
 
1,154,058

 
119,820

 
1,273,878

Finite-lived
 
94,772

 
26,167

 
120,939

 
 
1,248,830

 
145,987

 
1,394,817

 
 
 
 
 
 
 
 
 
$
1,432,352

 
$
153,376

 
$
1,585,728