Property and Equipment

12 Months Ended

Feb. 29, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 4 - Property and Equipment

A summary of property and equipment was as follows:

	Estimated Useful  Lives (Years)			Fiscal Years Ended Last Day of February,
(in thousands)				2024		2023
Land		—		$	16,687	$	20,632
Building and improvements	3	—	40	236,370		132,303
Computer, furniture and other equipment	3	—	20	166,230		101,567
Tooling, molds and other production equipment	3	—	7	77,358		67,184
Construction in progress		—		9,022		209,068
Property and equipment, gross				505,667		530,754
Less: accumulated depreciation				(169,021)		(178,961)
Property and equipment, net				$	336,646	$	351,793

We recorded $33.2 million, $26.4 million and $23.1 million of depreciation expense including $12.6 million, $13.0 million and $10.0 million in cost of goods sold and $20.6 million, $13.4 million and $13.1 million in SG&A in the consolidated statements of income for fiscal 2024, 2023 and 2022, respectively. In March 2023, we completed the construction of an additional distribution facility in Gallaway, Tennessee that became operational during the first quarter of fiscal 2024 and currently services some of our Home & Outdoor segment.

On September 28, 2023, we completed the sale of our distribution and office facilities in El Paso, Texas, for a sales price of $50.6 million, less transaction costs of $1.1 million. Concurrently, we entered into an agreement to leaseback the office facilities for a period of up to 18 months substantially rent free, which we estimated to have a fair value of approximately $1.9 million. The transaction qualified for sales recognition under the sale leaseback accounting requirements. Accordingly, we increased the sales price by the $1.9 million of prepaid rent and recognized a gain on the sale of $34.2 million within SG&A during fiscal 2024, of which $18.0 million and $16.2 million was recognized by our Beauty & Wellness and Home & Outdoor segments, respectively. The related property and equipment, totaling $17.2 million net of accumulated depreciation of $36.8 million, was derecognized from the consolidated balance sheet, and at lease commencement, we recorded an operating lease asset, which includes the imputed rent payments described above, and an operating lease liability. See Note 3 for additional information

regarding our leases. We used the proceeds from the sale to repay amounts outstanding under our long-term debt agreement.