Business Segments

3 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Business Segments

Business Segments

Beginning April 1, 2014, we began managing and reporting certain of our businesses separately and have therefore realigned our reportable segments to align with how we manage and evaluate the results of our business. These reportable segments consist of (i) North American OTC Healthcare (ii) International OTC Healthcare and (iii) Household Cleaning. The results of our previously reported OTC Healthcare segment is now separated into two reporting segments, the North American OTC Healthcare segment and the International OTC Healthcare segment, largely to reflect our international expansion due to recent acquisitions. Prior year amounts were reclassified to conform to the current reportable segments discussed above. Segment information has been prepared in accordance with the Segment Reporting topic of the FASB ASC 280. We evaluate the performance of our operating segments and allocate resources to these segments based primarily on contribution margin, which we define as gross profit less advertising and promotional expenses.

The tables below summarize information about our reportable segments.

	Three Months Ended June 30, 2014
(In thousands)	North American OTC Healthcare			International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	110,973		$	13,692	$	20,593	$	145,258
Elimination of intersegment revenues	(717		)	—		—		(717		)
Third-party segment revenues	110,256			13,692		20,593		144,541
Other revenues	177			35		949		1,161
Total segment revenues	110,433			13,727		21,542		145,702
Cost of sales	42,340			5,078		16,418		63,836
Gross profit	68,093			8,649		5,124		81,866
Advertising and promotion	16,353			2,339		404		19,096
Contribution margin	$	51,740		$	6,310	$	4,720	62,770
Other operating expenses								19,967
Operating income								42,803
Other expense								14,653
Income before income taxes								28,150
Provision for income taxes								11,418
Net income								$	16,732

	Three Months Ended June 30, 2013
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Gross segment revenues	$	118,936	$	3,414	$	19,292	$	141,642
Elimination of intersegment revenues	—		—		—		—
Third-party segment revenues	118,936		3,414		19,292		141,642
Other revenues	150		7		713		870
Total segment revenues	119,086		3,421		20,005		142,512
Cost of sales	43,546		1,465		14,477		59,488
Gross profit	75,540		1,956		5,528		83,024
Advertising and promotion	17,551		263		867		18,681
Contribution margin	$	57,989	$	1,693	$	4,661	64,343
Other operating expenses							14,902
Operating income							49,441
Other expense							15,905
Income before income taxes							33,536
Provision for income taxes							12,844
Net income							$	20,692

The tables below summarize information about our segment revenues from similar product groups.

	Three Months Ended June 30, 2014
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	25,031	$	665	$	—	$	25,696
Cough & Cold	20,041		4,759		—		24,800
Gastrointestinal	20,638		2,897		—		23,535
Eye & Ear Care	20,726		4,642		—		25,368
Dermatologicals	11,418		142		—		11,560
Oral Care	10,198		62		—		10,260
Other OTC	2,381		560		—		2,941
Household Cleaning	—		—		21,542		21,542
Total segment revenues	$	110,433	$	13,727	$	21,542	$	145,702

	Three Months Ended June 30, 2013
(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Analgesics	$	28,137	$	29	$	—	$	28,166
Cough & Cold	20,499		983		—		21,482
Gastrointestinal	21,758		10		—		21,768
Eye & Ear Care	20,332		2,260		—		22,592
Dermatologicals	13,786		91		—		13,877
Oral Care	11,085		48		—		11,133
Other OTC	3,489		—		—		3,489
Household Cleaning	—		—		20,005		20,005
Total segment revenues	$	119,086	$	3,421	$	20,005	$	142,512

During the three months ended June 30, 2014 and June 30, 2013, approximately 84.5% and 89.0%, respectively of our total segment revenues 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. During the three months ended June 30, 2014, our Canada and Australia sales accounted for approximately 5.6% and 5.2%, respectively, of our total segment revenues, while during the three months ended June 30, 2013 approximately 8.2% of our total segment revenues was attributable to sales to Canada.

At June 30, 2014, approximately 92.0% of our consolidated goodwill and intangible assets were located in the United States and approximately 8.0% were located in Australia. These consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:

(In thousands)	North American OTC Healthcare		International OTC Healthcare		Household Cleaning		Consolidated
Goodwill	$	160,157	$	25,086	$	7,389	$	192,632
Intangible assets
Indefinite-lived	1,123,898		105,721		119,820		1,349,439
Finite-lived	91,407		1,596		25,730		118,733
Intangible assets, net	1,215,305		107,317		145,550		1,468,172
Total	$	1,375,462	$	132,403	$	152,939	$	1,660,804