Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Condensed Consolidating Statements of Operations and Comprehensive Income

Three Months Ended June 30, 2016

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	27,959		$	168,205		$	13,826		$	(1,220	)	$	208,770
Other revenues	—			75			801			486			(557		)	805
Total revenues	—			28,034			169,006			14,312			(1,777		)	209,575
Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			12,086			71,462			6,000			(1,564		)	87,984
Gross profit	—			15,948			97,544			8,312			(213		)	121,591
Operating Expenses
Advertising and promotion	—			4,745			20,804			2,086			—			27,635
General and administrative	1,937			2,188			14,314			1,018			—			19,457
Depreciation and amortization	920			151			5,633			128			—			6,832
Loss on sale of assets	—			—			55,453			—			—			55,453
Total operating expenses	2,857			7,084			96,204			3,232			—			109,377
Operating income (loss)	(2,857		)	8,864			1,340			5,080			(213		)	12,214
Other (income) expense
Interest income	(11,967		)	(21,262		)	(1,274		)	(159		)	34,605			(57		)
Interest expense	8,440			21,174			24,901			1,274			(34,605		)	21,184
Equity in (income) loss of subsidiaries	5,738			(31,333		)	(3,076		)	—			28,671			—
Total other expense (income)	2,211			(31,421		)	20,551			1,115			28,671			21,127
(Loss) income before income taxes	(5,068		)	40,285			(19,211		)	3,965			(28,884		)	(8,913		)
(Benefit) provision for income taxes	463			3,178			(7,912		)	889			—			(3,382		)
Net (loss) income	$	(5,531	)	$	37,107		$	(11,299	)	$	3,076		$	(28,884	)	$	(5,531	)
Comprehensive (loss) income, net of tax:
Currency translation adjustments	(5,824		)	(5,824		)	(5,824		)	(5,824		)	17,472			(5,824		)
Total other comprehensive (loss) income	(5,824		)	(5,824		)	(5,824		)	(5,824		)	17,472			(5,824		)
Comprehensive (loss) income	$	(11,355	)	$	31,283		$	(17,123	)	$	(2,748	)	$	(11,412	)	$	(11,355	)

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended June 30, 2015

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	27,883		$	152,524		$	11,608		$	(728	)	$	191,287
Other revenues	—			96			819			498			(568		)	845
Total revenues	—			27,979			153,343			12,106			(1,296		)	192,132
Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			10,441			66,378			4,408			(1,331		)	79,896
Gross profit	—			17,538			86,965			7,698			35			112,236
Operating Expenses
Advertising and promotion	—			2,517			21,228			2,677			—			26,422
General and administrative	1,315			2,555			11,951			1,768			—			17,589
Depreciation and amortization	989			146			4,445			140			—			5,720
Total operating expenses	2,304			5,218			37,624			4,585			—			49,731
Operating income (loss)	(2,304		)	12,320			49,341			3,113			35			62,505
Other (income) expense
Interest income	(12,049		)	(21,408		)	(1,220		)	(112		)	34,762			(27		)
Interest expense	8,490			21,908			25,055			1,220			(34,762		)	21,911
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in (income) loss of subsidiaries	(25,306		)	(16,955		)	(1,450		)	—			43,711			—
Total other (income) expense	(28,865		)	(16,004		)	22,385			1,108			43,711			22,335
Income (loss) before income taxes	26,561			28,324			26,956			2,005			(43,676		)	40,170
Provision for income taxes	388			4,025			9,029			555			—			13,997
Net income (loss)	$	26,173		$	24,299		$	17,927		$	1,450		$	(43,676	)	$	26,173
Comprehensive income, net of tax:
Currency translation adjustments	(405		)	(405		)	(405		)	(405		)	1,215			(405		)
Total other comprehensive income (loss)	(405		)	(405		)	(405		)	(405		)	1,215			(405		)
Comprehensive income (loss)	$	25,768		$	23,894		$	17,522		$	1,045		$	(42,461	)	$	25,768

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

June 30, 2016

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	5,311		$	—		$	2,278		$	21,288		$	—		$	28,877
Accounts receivable, net	—			10,167			69,646			8,624			—			88,437
Inventories	—			10,017			73,711			9,884			(745		)	92,867
Deferred income tax assets	325			826			8,812			739			—			10,702
Prepaid expenses and other current assets	9,012			538			8,365			815			—			18,730
Assets held for sale	—			—			41,745			—			—			41,745
Total current assets	14,648			21,548			204,557			41,350			(745		)	281,358
Property and equipment, net	8,624			216			5,641			599			—			15,080
Goodwill	—			66,007			268,490			22,028			—			356,525
Intangible assets, net	—			191,655			1,946,309			85,595			—			2,223,559
Other long-term assets	—			1,918			—			—			—			1,918
Intercompany receivables	1,460,733			2,664,832			1,249,875			11,046			(5,386,486		)	—
Investment in subsidiary	1,631,033			1,553,227			77,679			—			(3,261,939		)	—
Total Assets	$	3,115,038		$	4,499,403		$	3,752,551		$	160,618		$	(8,649,170	)	$	2,878,440
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	1,384		$	6,922		$	24,731		$	1,975		$	—		$	35,012
Accrued interest payable	—			9,216			—			—			—			9,216
Other accrued liabilities	7,991			2,137			39,617			6,168			—			55,913
Total current liabilities	9,375			18,275			64,348			8,143			—			100,141
Long-term debt
Principal amount	—			1,602,500			—			—			—			1,602,500
Less unamortized debt costs	—			(25,086		)	—			—			—			(25,086		)
Long-term debt, net	—			1,577,414			—			—			—			1,577,414
Deferred income tax liabilities	—			60,847			399,323			387			—			460,557
Other long-term liabilities	—			—			2,682			165			—			2,847
Intercompany payables	2,368,182			1,243,701			1,697,409			77,194			(5,386,486		)	—
Total Liabilities	2,377,557			2,900,237			2,163,762			85,889			(5,386,486		)	2,140,959
Stockholders' Equity
Common stock	532			—			—			—			—			532
Additional paid-in capital	451,075			1,280,947			1,359,921			78,774			(2,719,642		)	451,075
Treasury stock, at cost	(6,558		)	—			—			—			—			(6,558		)
Accumulated other comprehensive (loss) income, net of tax	(29,349		)	(29,349		)	(29,349		)	(29,349		)	88,047			(29,349		)
Retained earnings (accumulated deficit)	321,781			347,568			258,217			25,304			(631,089		)	321,781
Total Stockholders' Equity	737,481			1,599,166			1,588,789			74,729			(3,262,684		)	737,481
Total Liabilities and Stockholders' Equity	$	3,115,038		$	4,499,403		$	3,752,551		$	160,618		$	(8,649,170	)	$	2,878,440

Condensed Consolidating Balance Sheet

March 31, 2016

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	4,440		$	—		$	2,899		$	19,891		$	—		$	27,230
Accounts receivable, net	—			12,025			74,446			8,776			—			95,247
Inventories	—			9,411			72,296			10,088			(532		)	91,263
Deferred income tax assets	316			681			8,293			818			—			10,108
Prepaid expenses and other current assets	15,311			257			8,379			1,218			—			25,165
Total current assets	20,067			22,374			166,313			40,791			(532		)	249,013
Property and equipment, net	9,166			210			5,528			636			—			15,540
Goodwill	—			66,007			271,409			22,775			—			360,191
Intangible assets, net	—			191,789			2,042,640			88,294			—			2,322,723
Other long-term assets	—			1,324			—			—			—			1,324
Intercompany receivables	1,457,011			2,703,192			1,083,488			10,738			(5,254,429		)	—
Investment in subsidiary	1,641,477			1,527,718			81,545			—			(3,250,740		)	—
Total Assets	$	3,127,721		$	4,512,614		$	3,650,923		$	163,234		$	(8,505,701	)	$	2,948,791
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	2,914		$	7,643		$	24,437		$	3,302		$	—		$	38,296
Accrued interest payable	—			8,664			—			—			—			8,664
Other accrued liabilities	12,285			1,714			38,734			6,991			—			59,724
Total current liabilities	15,199			18,021			63,171			10,293			—			106,684
Long-term debt
Principal amount	—			1,652,500			—			—			—			1,652,500
Less unamortized debt costs	—			(27,191		)	—			—			—			(27,191		)
Long-term debt, net	—			1,625,309			—			—			—			1,625,309
Deferred income tax liabilities	—			60,317			408,893			412			—			469,622
Other long-term liabilities	—			—			2,682			158			—			2,840
Intercompany payables	2,368,186			1,241,084			1,570,265			74,894			(5,254,429		)	—
Total Liabilities	2,383,385			2,944,731			2,045,011			85,757			(5,254,429		)	2,204,455
Stockholders' Equity
Common stock	530			—			—			—			—			530
Additional paid-in capital	445,182			1,280,947			1,359,921			78,774			(2,719,642		)	445,182
Treasury stock, at cost	(5,163		)	—			—			—			—			(5,163		)
Accumulated other comprehensive income (loss), net of tax	(23,525		)	(23,525		)	(23,525		)	(23,525		)	70,575			(23,525		)
Retained earnings (accumulated deficit)	327,312			310,461			269,516			22,228			(602,205		)	327,312
Total Stockholders' Equity	744,336			1,567,883			1,605,912			77,477			(3,251,272		)	744,336
Total Liabilities and Stockholders' Equity	$	3,127,721		$	4,512,614		$	3,650,923		$	163,234		$	(8,505,701	)	$	2,948,791

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Three Months Ended June 30, 2016

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net (loss) income	$	(5,531	)	$	37,107		$	(11,299	)	$	3,076		$	(28,884	)	$	(5,531	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	920			151			5,633			128			—			6,832
Loss on sale of assets	—			—			55,453			—			—			55,453
Deferred income taxes	(9		)	385			(10,089		)	53			—			(9,660		)
Amortization of debt origination costs	—			2,231			—			—			—			2,231
Stock-based compensation costs	1,940			—			—			—			—			1,940
Equity in income of subsidiaries	5,738			(31,333		)	(3,076		)	—			28,671			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			1,858			4,800			(1,507		)	—			5,151
Inventories	—			(606		)	(3,835		)	(99		)	213			(4,327		)
Prepaid expenses and other current assets	6,299			(281		)	(697		)	376			—			5,697
Accounts payable	(1,556		)	(721		)	109			(1,233		)	—			(3,401		)
Accrued liabilities	(4,294		)	975			261			(576		)	—			(3,634		)
Net cash provided by operating activities	3,507			9,766			37,260			218			—			50,751
Investing Activities
Purchases of property and equipment	(225		)	(23		)	(596		)	(51		)	—			(895		)
Net cash used in investing activities	(225		)	(23		)	(596		)	(51		)	—			(895		)
Financing Activities
Term loan repayments	—			(50,000		)	—			—			—			(50,000		)
Payments of debt origination costs	—			(9		)	—			—			—			(9		)
Proceeds from exercise of stock options	3,405			—			—			—			—			3,405
Excess tax benefits from share-based awards	550			—			—			—			—			550
Fair value of shares surrendered as payment of tax withholding	(1,395		)	—			—			—			—			(1,395		)
Intercompany activity, net	(4,971		)	40,266			(37,285		)	1,990			—			—
Net cash (used in) provided by financing activities	(2,411		)	(9,743		)	(37,285		)	1,990			—			(47,449		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(760		)	—			(760		)
Increase (decrease) in cash and cash equivalents	871			—			(621		)	1,397			—			1,647
Cash and cash equivalents - beginning of period	4,440			—			2,899			19,891			—			27,230
Cash and cash equivalents - end of period	$	5,311		$	—		$	2,278		$	21,288		$	—		$	28,877

Condensed Consolidating Statement of Cash Flows

Three Months Ended June 30, 2015

(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	26,173		$	24,299		$	17,927		$	1,450		$	(43,676	)	$	26,173
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	989			146			4,445			140			—			5,720
Gain on sale of asset	—			—			—			(36		)	—			(36		)
Deferred income taxes	141			395			10,866			134			—			11,536
Amortization of debt origination costs	—			2,138			—			—			—			2,138
Stock-based compensation costs	3,047			—			—			—			—			3,047
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in income of subsidiaries	(25,306		)	(16,955		)	(1,450		)	—			43,711			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			3,171			735			(1,328		)	—			2,578
Inventories	—			1,175			(1,457		)	106			(35		)	(211		)
Prepaid expenses and other current assets	(2,152		)	(102		)	722			10			—			(1,522		)
Accounts payable	861			(325		)	880			(633		)	—			783
Accrued liabilities	(5,668		)	(2,368		)	975			(75		)	—			(7,136		)
Net cash provided by (used in) operating activities	(1,915		)	12,025			33,643			(232		)	—			43,521
Investing Activities
Purchases of property and equipment	(648		)	—			(27		)	(105		)	—			(780		)
Proceeds from the sale of property and equipment	—			—			—			344			—			344
Net cash (used in) provided by investing activities	(648		)	—			(27		)	239			—			(436		)
Financing Activities
Term loan repayments	—			(25,000		)	—			—			—			(25,000		)
Borrowings under revolving credit agreement	—			15,000			—			—			—			15,000
Repayments under revolving credit agreement	—			(35,000		)	—			—			—			(35,000		)
Payments of debt origination costs	—			(4,172		)	—			—			—			(4,172		)
Proceeds from exercise of stock options	6,328			—			—			—			—			6,328
Proceeds from restricted stock exercises	544			—			—			—			—			544
Excess tax benefits from share-based awards	1,600			—			—			—			—			1,600
Fair value of shares surrendered as payment of tax withholding	(2,187		)	—			—			—			—			(2,187		)
Intercompany activity, net	(4,277		)	37,147			(33,616		)	746			—			—
Net cash (used in) provided by financing activities	2,008			(12,025		)	(33,616		)	746			—			(42,887		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			82			—			82
Increase (decrease) in cash and cash equivalents	(555		)	—			—			835			—			280
Cash and cash equivalents - beginning of period	11,387			—			—			9,931			—			21,318
Cash and cash equivalents - end of period	$	10,832		$	—		$	—		$	10,766		$	—		$	21,598