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Intangible Assets
9 Months Ended
Nov. 30, 2011
Intangible Assets  
Intangible Assets

Note 8 – Intangible Assets

 

Annual Impairment Testing in the First Quarter of Fiscal 2012 - The Company performed its annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal 2012.  As a result of its testing, the Company concluded no impairment charges were required as the estimated fair value of the indefinite-lived trademarks and licenses, reporting unit net assets and the Company’s estimated enterprise value exceeded their respective carrying values as of the date of the evaluation.

 

Annual Impairment Testing in the First Quarter of Fiscal 2011 - The Company performed its annual evaluation of goodwill and indefinite-lived intangible assets for impairment during the first quarter of fiscal 2011.  As a result of its testing, the Company recorded a non-cash impairment charge of $0.50 million ($0.49 million after tax).  The charge was related to an indefinite-lived trademark in our Personal Care segment that was written down to its fair value, determined on the basis of future discounted cash flows using the relief from royalty method.

 

A summary of the carrying amounts and associated accumulated amortization for all intangible assets by operating segment is as follows:

 

GOODWILL AND INTANGIBLE ASSETS

(in thousands)

 

 

 

 

 

 

 

 

 

November 30, 2011

 

 

February 28, 2011

 

 

 

Gross

 

Cumulative

 

 

 

 

 

 

Gross

 

Cumulative

 

 

 

 

 

 

 

Carrying

 

Goodwill

 

Accumulated

 

Net Book

 

 

Carrying

 

Goodwill

 

Accumulated

 

Net Book

 

Description

 

Amount

 

Impairments

 

Amortization

 

Value

 

 

Amount

 

Impairments

 

Amortization

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Care:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

81,841

 

$

(46,490)

 

$

-     

 

$

35,351

 

 

$

81,901

 

$

(46,490

)

$

-    

 

$

35,411

 

Trademarks - indefinite

 

75,303

 

-     

 

-     

 

75,303

 

 

75,303

 

-    

 

-    

 

75,303

 

Trademarks - finite

 

150

 

-     

 

(66)

 

84

 

 

150

 

-    

 

(62

)

88

 

Licenses - indefinite

 

10,300

 

-     

 

-     

 

10,300

 

 

10,300

 

-    

 

-    

 

10,300

 

Licenses - finite

 

19,564

 

-     

 

(15,838)

 

3,726

 

 

19,564

 

-    

 

(15,450

)

4,114

 

Other intangibles - finite

 

49,437

 

-     

 

(13,521)

 

35,916

 

 

49,401

 

-    

 

(9,048

)

40,353

 

Total Personal Care

 

236,595

 

(46,490)

 

(29,425)

 

160,680

 

 

236,619

 

(46,490

)

(24,560

)

165,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housewares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

166,131

 

-     

 

-     

 

166,131

 

 

166,131

 

-    

 

-    

 

166,131

 

Trademarks - indefinite

 

75,200

 

-     

 

-     

 

75,200

 

 

75,200

 

-    

 

-    

 

75,200

 

Other intangibles - finite

 

18,149

 

-     

 

(10,231)

 

7,918

 

 

19,320

 

-    

 

(9,893

)

9,427

 

Total Housewares

 

259,480

 

-     

 

(10,231)

 

249,249

 

 

260,651

 

-    

 

(9,893

)

250,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare / Home Environment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

165,927

 

-     

 

-     

 

165,927

 

 

154,700

 

-    

 

-    

 

154,700

 

Other Intangibles - finite

 

91,850

 

-     

 

(8,989)

 

82,861

 

 

91,550

 

-    

 

(1,630

)

89,920

 

Total Healthcare / Home Environment

 

257,777

 

-     

 

(8,989)

 

248,788

 

 

246,250

 

-    

 

(1,630

)

244,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

753,852

 

$

(46,490)

 

$

(48,645)

 

$

658,717

 

 

$

743,520

 

$

(46,490

)

$

(36,083

)

$

660,947

 

 

During the fiscal quarter ended November 30, 2011, the Company recorded a $11.20 million net increase to goodwill related to certain Kaz pre-acquisition tax positions.

 

The following table summarizes the amortization expense attributable to intangible assets for the three- and nine- month periods ended November 30, 2011 and 2010, as well as our estimated amortization expense for the fiscal years ending the last day of each February 2012 through 2017.

 

AMORTIZATION OF INTANGIBLE ASSETS

(in thousands)

 

Aggregate Amortization Expense

 

 

 

For the three months ended

 

 

 

 

 

 

 

November 30, 2011

 

$

4,952

 

November 30, 2010

 

$

2,086

 

 

 

 

 

Aggregate Amortization Expense

 

 

 

For the nine months ended

 

 

 

 

 

 

 

November 30, 2011

 

$

14,001

 

November 30, 2010

 

$

6,177

 

 

 

 

 

Estimated Amortization Expense

 

 

 

For the fiscal years ended

 

 

 

 

 

 

 

February 2012

 

$

18,443

 

February 2013

 

$

18,035

 

February 2014

 

$

17,424

 

February 2015

 

$

16,889

 

February 2016

 

$

16,667

 

February 2017

 

$

16,107