10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ..... to …..

Commission file number: 001-14669

HELEN OF TROY LIMITED

(Exact name of registrant as specified in its charter)

Bermuda     74-2692550

(State or other jurisdiction of incorporation or organization)    (I.R.S. Employer Identification No.)                

Clarendon House, 2 Church Street, Hamilton, Bermuda                                    

(Address of principal executive offices)            

1 Helen of Troy Plaza, El Paso, Texas             79912

(Registrant’s United States Mailing Address)            (Zip Code)

(915) 225-8000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Shares, $0.10 par value per share	HELE	The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).       Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒                            Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of January 3, 2020 there were 25,169,734 shares of common stock of the registrant, $0.10 par value per share, outstanding.

HELEN OF TROY LIMITED AND SUBSIDIARIES

FORM 10‐Q

TABLE OF CONTENTS

		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Note 1 - Basis of Presentation and Related Information	7
	Note 2   - New Accounting Pronouncements	8
	Note 3   - Revenue Recognition	8
	Note 4   - Leases	9
	Note 5   - Discontinued Operations	10
	Note 6   - Supplemental Balance Sheet Information	11
	Note 7   - Goodwill and Intangible Assets	11
	Note 8   - Share-Based Compensation Plans	13
	Note 9   - Repurchase of Helen of Troy Common Stock	14
	Note 10 - Restructuring Plan	15
	Note 11 - Commitments and Contingencies	15
	Note 12 - Long-Term Debt	16
	Note 13 - Fair Value	17
	Note 14 - Financial Instruments and Risk Management	18
	Note 15 - Accumulated Other Comprehensive Income (Loss)	21
	Note 16 - Segment Information	21
	Note 17 - Income Taxes	22
	Note 18 - Earnings Per Share	23
	Note 19 - Subsequent events	24
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	48
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	50
SIGNATURES		51

1

PART I.   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except shares and par value)	November 30, 2019			February 28, 2019
Assets
Assets, current:
Cash and cash equivalents	$	19,637		$	11,871
Receivables - principally trade, less allowances of $1,486 and $2,032	365,543			280,280
Inventory	333,656			302,339
Prepaid expenses and other current assets	10,403			10,369
Total assets, current	729,239			604,859
Property and equipment, net of accumulated depreciation of $133,764 and $123,744	131,179			130,338
Goodwill	602,320			602,320
Other intangible assets, net of accumulated amortization of $194,562 and $181,463	279,028			291,526
Operating lease assets	33,528			—
Deferred tax assets, net	12,926			7,991
Other assets, net of accumulated amortization of $2,167 and $2,115	2,869			12,501
Total assets	$	1,791,089		$	1,649,535
Liabilities and Stockholders' Equity
Liabilities, current:
Accounts payable, principally trade	$	141,523		$	143,560
Accrued expenses and other current liabilities	171,269			165,160
Income taxes payable	3,223			1,427
Long-term debt, current maturities	1,884			1,884
Total liabilities, current	317,899			312,031
Long-term debt, excluding current maturities	242,363			318,900
Lease liabilities, non-current	41,760			—
Deferred tax liabilities, net	8,439			5,748
Other liabilities, non-current	18,944			16,219
Total liabilities	629,405			652,898
Commitments and contingencies
Stockholders' equity:
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued	—			—
Common stock, $0.10 par. Authorized 50,000,000 shares; 25,166,771 and 24,946,046 shares issued and outstanding	2,517			2,495
Additional paid in capital	262,731			246,585
Accumulated other comprehensive income (loss)	(4,885		)	1,191
Retained earnings	901,321			746,366
Total stockholders' equity	1,161,684			996,637
Total liabilities and stockholders' equity	$	1,791,089		$	1,649,535

See accompanying notes to condensed consolidated financial statements.

2

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited) 

	Three Months Ended November 30,						Nine Months Ended November 30,
(in thousands, except per share data)	2019			2018			2019			2018
Sales revenue, net	$	474,737		$	431,081		$	1,265,067		$	1,179,308
Cost of goods sold	264,764			249,236			723,216			695,732
Gross profit	209,973			181,845			541,851			483,576
Selling, general and administrative expense ("SG&A")	130,692			120,524			359,794			325,684
Restructuring charges	12			25			1,061			2,609
Operating income	79,269			61,296			180,996			155,283
Non-operating income, net	92			15			313			175
Interest expense	(2,767		)	(2,971		)	(9,291		)	(8,413		)
Income before income tax	76,594			58,340			172,018			147,045
Income tax expense	7,895			4,020			16,530			10,535
Income from continuing operations	68,699			54,320			155,488			136,510
Loss from discontinued operations, net of tax	—			(4,850		)	—			(5,231		)
Net income	$	68,699		$	49,470		$	155,488		$	131,279
Earnings (loss) per share - basic:
Continuing operations	$	2.73		$	2.08		$	6.19		$	5.19
Discontinued operations	—			(0.19		)	—			(0.20		)
Total earnings per share - basic	$	2.73		$	1.90		$	6.19		$	4.99
Earnings (loss) per share - diluted:
Continuing operations	$	2.71		$	2.06		$	6.15		$	5.15
Discontinued operations	—			(0.18		)	—			(0.20		)
Total earnings per share - diluted	$	2.71		$	1.88		$	6.15		$	4.95
Weighted average shares of common stock used in computing earnings per share:
Basic	25,161			26,057			25,099			26,321
Diluted	25,396			26,366			25,295			26,520

See accompanying notes to condensed consolidated financial statements.

3

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited) 

	Three Months Ended November 30,					Nine Months Ended November 30,
(in thousands)	2019			2018		2019			2018
Net income	$	68,699		$	49,470	$	155,488		$	131,279
Other comprehensive income (loss), net of tax:
Cash flow hedge activity - interest rate swaps	1,599			46		(5,562		)	251
Cash flow hedge activity - foreign currency contracts	(1,729		)	514		(514		)	4,325
Total other comprehensive income (loss), net of tax	(130		)	560		(6,076		)	4,576
Comprehensive income	$	68,569		$	50,030	$	149,412		$	135,855

See accompanying notes to condensed consolidated financial statements.

4

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

	Common Stock					Additional Paid in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Shareholders' Equity
(in thousands, including shares)	Shares		Par Value
Balances at August 31, 2018	26,380		$	2,635		$	241,633		$	4,647		$	826,825		$	1,075,740
Income from continuing operations	—		—			—			—			54,320			54,320
Loss from discontinued operations	—		—			—			—			(4,850		)	(4,850		)
Other comprehensive income, net of tax	—		—			—			560			—			560
Exercise of stock options	10		1			565			—			—			566
Net issuance and settlement of restricted stock	4		—			—			—			—			—
Issuance of common stock related to stock purchase plan	14		1			1,076			—			—			1,077
Common stock repurchased and retired	(815	)	(81		)	(4,396		)	—			(95,698		)	(100,175		)
Share-based compensation	—		—			6,016			—			—			6,016
Cumulative effect of accounting change	—		(22		)	(6		)	—			32			4
Balances at November 30, 2018	25,593		$	2,534		$	244,888		$	5,207		$	780,629		$	1,033,258
Balances at February 28, 2018	26,576		$	2,658		$	230,676		$	631		$	780,494		$	1,014,459
Income from continuing operations	—		—			—			—			136,510			136,510
Loss from discontinued operations	—		—			—			—			(5,231		)	(5,231		)
Other comprehensive income, net of tax	—		—			—			4,576			—			4,576
Exercise of stock options	121		12			6,069			—			—			6,081
Net issuance and settlement of restricted stock	144		14			(14		)	—			—			—
Issuance of common stock related to stock purchase plan	31		3			2,409			—			—			2,412
Common stock repurchased and retired	(1,279	)	(127		)	(11,273		)	—			(131,015		)	(142,415		)
Share-based compensation	—		—			17,029			—			—			17,029
Cumulative effect of accounting change	—		(26		)	(8		)	—			(129		)	(163		)
Balances at November 30, 2018	25,593		$	2,534		$	244,888		$	5,207		$	780,629		$	1,033,258
Balances at August 31, 2019	25,130		$	2,513		$	256,995		$	(4,755	)	$	832,622		$	1,087,375
Income from continuing operations	—		—			—			—			68,699			68,699
Other comprehensive loss, net of tax	—		—			—			(130		)	—			(130		)
Exercise of stock options	7		1			556			—			—			557
Net issuance and settlement of restricted stock	21		3			(3		)	—			—			—
Issuance of common stock related to stock purchase plan	15		1			1,426			—			—			1,427
Common stock repurchased and retired	(6	)	(1		)	(1,001		)	—			—			(1,002		)
Share-based compensation	—		—			4,758			—			—			4,758
Balances at November 30, 2019	25,167		$	2,517		$	262,731		$	(4,885	)	$	901,321		$	1,161,684
Balances at February 28, 2019	24,946		$	2,495		$	246,585		$	1,191		$	746,366		$	996,637
Income from continuing operations	—		—			—			—			155,488			155,488
Other comprehensive loss, net of tax	—		—			—			(6,076		)	—			(6,076		)
Exercise of stock options	69		7			4,183			—			—			4,190
Net issuance and settlement of restricted stock	199		21			(21		)	—			—			—
Issuance of common stock related to stock purchase plan	30		2			2,833			—			—			2,835
Common stock repurchased and retired	(77	)	(8		)	(9,592		)	—			(533		)	(10,133		)
Share-based compensation	—		—			18,743			—			—			18,743
Balances at November 30, 2019	25,167		$	2,517		$	262,731		$	(4,885	)	$	901,321		$	1,161,684

See accompanying notes to condensed consolidated financial statements.

5

HELEN OF TROY LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended November 30,
(in thousands)	2019			2018
Cash provided by operating activities:
Net income	$	155,488		$	131,279
Less: Loss from discontinued operations	—			(5,231		)
Income from continuing operations	155,488			136,510
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	24,876			22,490
Amortization of financing costs	763			761
Non-cash operating lease asset amortization	1,371			—
Provision for doubtful receivables	484			725
Non-cash share-based compensation	18,743			17,029
Gain on the sale or disposal of property and equipment	(14		)	(536		)
Deferred income taxes and tax credits	(511		)	4,060
Changes in operating capital, net of effects of acquisition of businesses:
Receivables	(85,747		)	(64,284		)
Inventories	(31,317		)	(49,137		)
Prepaid expenses and other current assets	(1,269		)	(1,149		)
Other assets and liabilities, net	21,091			5,554
Accounts payable	(2,037		)	16,694
Accrued expenses and other current liabilities	477			17,809
Accrued income taxes	(980		)	2,969
Net cash provided by operating activities - continuing operations	101,418			109,495
Net cash used by operating activities - discontinued operations	—			(5,231		)
Net cash provided by operating activities	101,418			104,264
Cash used by investing activities:
Capital and intangible asset expenditures	(13,247		)	(22,166		)
Proceeds from the sale of property and equipment	3			1,125
Net cash used by investing activities - continuing operations	(13,244		)	(21,041		)
Net cash used by investing activities - discontinued operations	—			—
Net cash used by investing activities	(13,244		)	(21,041		)
Cash used by financing activities:
Proceeds from line of credit	406,600			462,350
Repayment of line of credit	(482,000		)	(411,350		)
Repayment of long-term debt	(1,900		)	(1,900		)
Proceeds from share issuances under share-based compensation plans	7,025			8,490
Payments for repurchases of common stock	(10,133		)	(142,415		)
Net cash used by financing activities - continuing operations	(80,408		)	(84,825		)
Net cash used by financing activities - discontinued operations	—			—
Net cash used by financing activities	(80,408		)	(84,825		)
Net increase (decrease) in cash and cash equivalents	7,766			(1,602		)
Cash and cash equivalents, beginning balance	11,871			20,738
Cash and cash equivalents, ending balance	19,637			19,136
Less: Cash and cash equivalents of discontinued operations, ending balance	—			—
Cash and cash equivalents of continuing operations, ending balance	$	19,637		$	19,136
Supplemental non-cash items not included above resulting from the adoption of ASC 842
Initial recognition of operating lease asset	$	(37,082	)	$	—
Initial recognition of lease liabilities	47,223			—
Accrued expenses and other current liabilities	(2,873		)	—
Other assets and liabilities, net	(7,311		)	—
Prepaid expenses and other current assets	43			—

See accompanying notes to condensed consolidated financial statements.

6

HELEN OF TROY LIMITED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

November 30, 2019

Note 1 - Basis of Presentation and Related Information

The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of November 30, 2019 and February 28, 2019, and the results of our consolidated operations for the interim periods presented.  We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 28, 2019, and our other reports on file with the Securities and Exchange Commission (“SEC”).

When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to the "FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to United States (“U.S.”) generally accepted accounting principles.  References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB.  References to "ASC" refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB.

We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994.  We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products.  We have three segments: Housewares, Health & Home, and Beauty.  Our Housewares segment provides a broad range of innovative consumer products for the home.  Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage, food containers and coolers.  The Health & Home segment focuses on health care devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices.  Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products.

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC.  The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements.  For more information, see Note 5 to these condensed consolidated financial statements.  All other notes present results from continuing operations.

Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30^th.  We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States.

Our condensed consolidated financial statements are prepared in U.S. Dollars.  All intercompany accounts and transactions are eliminated in consolidation.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

7

We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation.

Note 2 - New Accounting Pronouncements

Except for the changes discussed below, there have been no changes in the information provided in our Form 10-K for the fiscal year ended February 28, 2019.  

Adopted in Fiscal 2020

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million, respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4).

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements.

Note 3 - Revenue Recognition

We adopted the provisions of ASU 2014-9 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 

Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized was not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance did however impact the classification of certain consideration paid to our customers. We therefore reclassified an immaterial

8

amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented.  We elected to adopt the guidance using the full retrospective method. 

We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods.  Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration.  In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration.  In accordance with the guidance, most variable consideration is classified as a reduction to net sales.

Sales taxes and other similar taxes are excluded from revenue.  We elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance.  We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time.

Note 4 - Leases

Adoption of the new lease standard resulted in the recording of lease assets and lease liabilities of approximately $37.1 million and $47.2 million, respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. The new standard did not materially impact our consolidated statements of income or cash flows.

The Company primarily has leases for office space, which are classified as operating leases. Operating leases are included in operating lease assets, accrued expenses and other current liabilities, and lease liabilities, non-current in our consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use an estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

We include options to extend or terminate the lease in the lease term for accounting considerations, when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of less than one to 13 years.  Lease expense for lease payments is recognized on a straight-line basis over the lease term in a manner similar to previous accounting guidance. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the condensed consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under the new guidance, operating lease expense recognized in the condensed consolidated statements of income during the three and nine month periods ended November 30, 2019 was $1.5 million and $4.8 million, respectively.  Short-term lease expense is excluded from this amount and is not material.  The non-cash component of lease expense is included as an adjustment to reconcile income from continuing operations to net cash provided by operating activities in the condensed consolidated statements of cash flows.

9

A summary of supplemental lease information is as follows:

	November 30, 2019
Weighted average remaining lease term (years)	10.9
Weighted average discount rate	6.11		%
Year-to-date cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,310

A summary of our estimated lease payments, imputed interest and liabilities are as follows:

(in thousands)
Fiscal 2020 (balance for remainder of fiscal year)	$	1,272
Fiscal 2021	6,082
Fiscal 2022	5,959
Fiscal 2023	5,601
Fiscal 2024	5,102
Thereafter	40,132
Total future lease payments	64,148
Less: imputed interest	(19,057		)
Present value of lease liability	$	45,091

	November 30, 2019
Lease liabilities, current (1)	$	3,331
Lease liabilities, non-current	41,760
Total lease liability	$	45,091

(1) Included as part of "Accrued expenses and other current liabilities" on the condensed consolidated balance sheet.

Note 5 - Discontinued Operations

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million, payable on or before August 1, 2019.  During fiscal 2019, the final amount of the supplemental payment was adjusted to $10.8 million based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018.  The adjustment resulted in a corresponding pre-tax charge of $5.8 million ($4.4 million after tax) to discontinued operations. The supplemental payment of $10.8 million was received during the second quarter of fiscal 2020. Also, during fiscal 2019, we recorded an additional charge of $1.5 million ($1.3 million after tax) to discontinued operations, resulting from the resolution of certain contingencies. In conjunction with the sale of the business, we provided certain transition services that ceased during the second quarter of fiscal 2020.

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Note 6 - Supplemental Balance Sheet Information

PROPERTY AND EQUIPMENT

(in thousands)	Estimated Useful Lives (Years)			November 30, 2019			February 28, 2019
Land				$	12,644		$	12,644
Building and improvements	3	-	40	113,608			113,820
Computer, software, furniture and other equipment	3	-	15	86,888			84,711
Tools, molds and other production equipment	3	-	7	37,756			36,378
Construction in progress				14,047			6,529
Property and equipment, gross				264,943			254,082
Less accumulated depreciation				(133,764		)	(123,744		)
Property and equipment, net				$	131,179		$	130,338

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 

(in thousands)	November 30, 2019		February 28, 2019
Accrued compensation, benefits and payroll taxes	$	37,410	$	36,782
Accrued sales discounts and allowances	31,661		28,655
Accrued sales returns	24,159		23,316
Accrued advertising	30,970		26,549
Other	47,069		49,858
Total accrued expenses and other current liabilities	$	171,269	$	165,160

Note 7 - Goodwill and Intangible Assets

We perform annual impairment tests each fiscal year during the fourth quarter and also perform interim impairment tests, if and when necessary. We did not record any impairment charges for the nine month periods ended November 30, 2019 or 2018, respectively.

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The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented:

	November 30, 2019										February 28, 2019
(in thousands)	Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value		Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value
Housewares:
Goodwill	$	282,056	$	—		$	—		$	282,056	$	282,056	$	—		$	—		$	282,056
Trademarks - indefinite	134,200		—			—			134,200		134,200		—			—			134,200
Other intangibles - finite	41,846		—			(20,881		)	20,965		41,417		—			(19,398		)	22,019
Subtotal	458,102		—			(20,881		)	437,221		457,673		—			(19,398		)	438,275
Health & Home:
Goodwill	284,913		—			—			284,913		284,913		—			—			284,913
Trademarks - indefinite	54,000		—			—			54,000		54,000		—			—			54,000
Licenses - finite	17,050		—			(15,665		)	1,385		17,050		—			(15,402		)	1,648
Licenses - indefinite	7,400		—			—			7,400		7,400		—			—			7,400
Other intangibles - finite	118,139		—			(95,776		)	22,363		117,967		—			(87,953		)	30,014
Subtotal	481,502		—			(111,441		)	370,061		481,330		—			(103,355		)	377,975
Beauty:
Goodwill	81,841		(46,490		)	—			35,351		81,841		(46,490		)	—			35,351
Trademarks - indefinite	—		—			—			—		30,407		—			—			30,407
Trademarks - finite	30,557		—			(3,347		)	27,210		150		—			(102		)	48
Licenses - indefinite	10,300		—			—			10,300		10,300		—			—			10,300
Licenses - finite	13,696		—			(12,721		)	975		13,696		—			(12,482		)	1,214
Other intangibles - finite	46,402		—			(46,172		)	230		46,402		—			(46,126		)	276
Subtotal	182,796		(46,490		)	(62,240		)	74,066		182,796		(46,490		)	(58,710		)	77,596
Total	$	1,122,400	$	(46,490	)	$	(194,562	)	$	881,348	$	1,121,799	$	(46,490	)	$	(181,463	)	$	893,846

After discontinuing the formal sale process and revising the strategic initiatives for our Personal Care business during the first quarter of fiscal year 2020, we changed trademarks related to the business with a net book value of $30.4 million from indefinite lived to finite lived assets. The amortization of these trademarks is now included in amortization expense for the nine months ended November 30, 2019, and these assets are expected to be fully amortized by the end of fiscal year 2027.

The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2020 through 2025:

Aggregate Amortization Expense
For the three months ended (in thousands)
November 30, 2019	$	4,790
November 30, 2018	3,300

Aggregate Amortization Expense
For the nine months ended (in thousands)
November 30, 2019	$	13,129
November 30, 2018	10,822

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Estimated Amortization Expense (in thousands)
Fiscal 2020	$	17,557
Fiscal 2021	16,437
Fiscal 2022	9,530
Fiscal 2023	9,261
Fiscal 2024	7,386
Fiscal 2025	6,854

Note 8 - Share-Based Compensation Plans

We have equity awards outstanding under several share-based compensation plans. During the three and nine months ended November 30, 2019, we had the following share-based compensation activity:

• We issued 904 and 3,208 shares to non-employee Board members with a total grant date fair value of $0.1 and $0.3 million, respectively, and weighted average share prices of $155.13 and $131.33, respectively.

• We granted time-vested restricted stock units ("RSUs") that may be settled for 390 and 3,669 shares of common stock, respectively. The RSU grants have a weighted average grant price of $153.75 and $116.00 per share, respectively, for a total award value at date of grant of $0.1 and $0.4 million, respectively.

• We granted time-vested restricted stock awards ("RSAs") that may be settled for 506 and 46,278 shares of common stock, respectively. The RSA grants have a weighted average grant price of $147.61 and $114.35 per share, respectively, for a total award fair value at date of grant of $0.1 million and $5.3 million, respectively.

• There were no grants of performance-based stock units ("PSUs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSUs that may be settled for 6,088 shares of common stock at target. The PSU grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $0.7 million.

• There were no grants of performance-based restricted stock awards ("PSAs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSAs that are targeted to be settled for 122,402 shares of common stock. The PSA grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $13.6 million.

• RSUs for 20,449 and 86,778 shares vested and settled, respectively, with a total fair value at settlement of $3.1 and $10.7 million and a weighted average share price of $153.63 and $123.79, respectively.  

• There were no PSUs shares that vested and settled during the three months ended November 30, 2019. For the nine months ended November 30, 2019, there were 108,572 shares vested and settled with a total fair value at settlement of $14.7 million, and a weighted average share price of $135.85.

• RSAs for 44 shares vested and settled with an immaterial fair value amount and a weighted average share price of $150.86 during the three months ended November 30, 2019. RSAs for 972 shares vested and settled with a fair value amount of $0.1 million and a weighted average share price of $150.86 during the nine month period ended November 30, 2019.

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• Employees exercised stock options to purchase 6,892 and 68,657 shares of common stock, respectively.

• There were 15,013 and 29,803 purchases of common stock under the employee stock purchase plan at an average price of $95.03 and $95.16, respectively.

We recorded the following share-based compensation expense in SG&A for the periods shown below: 

	Three Months Ended November 30,						Nine Months Ended November 30,
(in thousands, except per share data)	2019			2018			2019			2018
Stock options	$	21		$	128		$	172		$	655
Directors stock compensation	140			140			421			386
Performance based and other stock awards	4,138			5,419			17,366			15,337
Employee stock purchase plan	459			329			784			651
Share-based compensation expense	4,758			6,016			18,743			17,029
Less income tax benefits	(343		)	(398		)	(1,434		)	(1,009		)
Share-based compensation expense, net of income tax benefits	$	4,415		$	5,618		$	17,309		$	16,020
Impact of share-based compensation on earnings per share from continuing operations:
Basic	$	0.18		$	0.22		$	0.69		$	0.61
Diluted	$	0.17		$	0.21		$	0.68		$	0.60

Note 9 - Repurchase of Helen of Troy Common Stock

In May 2019, we announced that our Board of Directors had authorized the repurchase of up to $400 million of our outstanding common stock.  The authorization is effective May 8, 2019 for a period of three years and replaced Helen of Troy's previous repurchase authorization, of which approximately $107.4 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities.  As of November 30, 2019, our repurchase authorization allowed for the purchase of $393.0 million of common stock. 

Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants.  In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the equity holder can be paid for by having the equity holder tender back to the Company a number of shares at fair value equal to the amounts due.  Net exercises are treated as purchases and retirements of shares.

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The following table summarizes our share repurchase activity for the periods shown:

	Three Months Ended November 30,				Nine Months Ended November 30,
(in thousands, except share and per share data)	2019		2018		2019		2018
Common stock repurchased on the open market:
Number of shares	—		813,696		—		1,220,721
Aggregate value of shares	$	—	$	100,000	$	—	$	137,067
Average price per share	$	—	$	122.90	$	—	$	112.28
Common stock received in connection with share-based compensation:
Number of shares	6,509		1,398		77,067		58,470
Aggregate value of shares	$	1,002	$	175	$	10,133	$	5,348
Average price per share	$	153.88	$	125.03	$	131.48	$	91.47

Note 10 - Restructuring Plan

In October 2017, we announced that we had approved a restructuring plan (referred to as “Project Refuel”). Project Refuel includes a reduction-in-force and the elimination of certain contracts and operating expenses.  We are targeting total annualized profit improvements of approximately $8.0 to $10.0 million over the duration of the plan.  We estimate the plan will be completed during fiscal 2020, and expect to incur total restructuring charges of approximately $7.0 million over the duration of the plan. Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically.

For the three month period ended November 30, 2019, we incurred an insignificant amount of pre-tax restructuring charges. For the nine month period ended November 30, 2019, we incurred $1.1 million of pre-tax restructuring charges related primarily to employee severance and termination benefits and lease termination costs. Since implementing Project Refuel, we have incurred $6.5 million of pre-tax restructuring costs as of November 30, 2019.  During the three and nine month periods ended November 30, 2019, we made total cash restructuring payments of $0.3 million and $1.8 million, respectively. Since implementing Project Refuel, we have made total cash restructuring payments of $6.0 million. We had a remaining liability of $0.5 million as of November 30, 2019.

Note 11 - Commitments and Contingencies

Legal Matters – In May 2018, we settled a patent infringement dispute related to two forehead thermometer models sold by our subsidiary, Kaz USA, Inc., in the United States and made a settlement payment of $15.0 million, which was accrued in prior periods along with related legal fees and other costs.      

We are involved in various other legal claims and proceedings in the normal course of operations.  We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

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Lease Commitments – The implementation of the new lease guidance (ASC 842) using the effective date method requires the disclosure of our lease commitments from our latest annual report on Form 10-K for the interim periods during the first year of adoption (see Note 4). The lease commitments as of February 28, 2019 were as follows:

	Fiscal Years Ended the Last Day of February:
			2020		2021		2022		2023		2024		After
(in thousands)	Total		1 year		2 years		3 years		4 years		5 years		5 years
Operating leases	$	69,482	$	5,171	$	6,678	$	6,411	$	5,743	$	5,078	$	40,401

The minimum rental payments for operating leases presented above were determined in accordance with the previous lease guidance (ASC 840). Note 4 presents a summary of our estimated lease payments, imputed interest and liabilities as of November 30, 2019, in accordance with the new lease guidance (ASC 842).

Note 12 - Long-Term Debt

We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provided for an unsecured total revolving commitment of $1.0 billion as of November 30, 2019. The commitment under the Credit Agreement terminates and the Credit Agreement matures on December 7, 2021. Borrowings accrue interest under one of two alternative methods (based upon a base rate of LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time.  We also incur loan commitment fees and letter of credit fees under the Credit Agreement.  Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis.  As of November 30, 2019, the outstanding revolving loan principal balance was $225.8 million (excluding prepaid financing fees) and the face amount of outstanding letters of credit was $9.0 million. For the three and nine month periods ended November 30, 2019, borrowings under the Credit Agreement incurred interest charges at rates ranging from 2.7% to 5.3% and 2.7% to 5.5%, respectively. For the three and nine month periods ended November 30, 2018, borrowings under the Credit Agreement incurred interest charges at rates ranging from 3.1% to 5.3% and 2.8% to 5.3%, respectively. As of November 30, 2019, the amount available for borrowings under the Credit Agreement was $765.2 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur.  As of November 30, 2019, these covenants effectively limited our ability to incur more than $730.5 million of additional debt from all sources, including our Credit Agreement, or $765.2 million in the event a qualified acquisition is consummated. 

The following table summarizes our long-term debt as of the end of the periods shown:

(in thousands)	November 30, 2019			February 28, 2019
Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1)	$	20,447		$	22,335
Credit Agreement (2)	223,800			298,449
Total long-term debt	244,247			320,784
Less current maturities of long-term debt	(1,884		)	(1,884		)
Long-term debt, excluding current maturities	$	242,363		$	318,900

(1) The MBFC Loan is unsecured and bears floating interest based on applicable LIBOR plus a margin of up to 2.0%, or a Base Rate plus a margin of up to 1.0%, as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime.  The loan can be prepaid without penalty.  The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023.  Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.

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(2) The Credit Agreement matures on December 7, 2021. The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement.  Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps.

At November 30, 2019 and February 28, 2019, our long-term debt has floating interest rates, and its book value approximates its fair value. 

All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries.  Our debt agreements require the maintenance of certain financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio (as each of these terms is defined in the agreements).  Our debt agreements also contain other customary covenants.  We were in compliance with the terms of these agreements as of November 30, 2019.

Note 13 - Fair Value 

We classify our various assets and liabilities recorded or reported at fair value under a hierarchy prescribed by GAAP that prioritizes inputs to fair value measurement techniques into three broad levels:

Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Assets and liabilities subject to classification are classified upon acquisition.  When circumstances dictate the transfer of an asset or liability to a different level, our policy is to recognize the transfer at the beginning of the reporting period in which the event resulting in the transfer occurred.

The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the end of the periods shown:

	Fair Values at
	November 30, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	653
Interest rate swaps	—
Foreign currency contracts	1,353
Total assets	$	2,006
Liabilities:
Floating rate debt	$	244,247
Interest rate swaps	7,068
Foreign currency contracts	372
Total liabilities	$	251,687

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	Fair Values at
	February 28, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	915
Interest rate swaps	512
Foreign currency contracts	1,692
Total assets	$	3,119
Liabilities:
Floating rate debt	$	320,784
Interest rate swaps	339
Foreign currency contracts	563
Total liabilities	$	321,686

(1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.

The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items.

We use derivatives for hedging purposes and our derivatives are primarily interest rate swaps, foreign currency contracts and cross-currency debt swaps.  See Notes 12 and 14 to these condensed consolidated financial statements for more information on our hedging activities.

We classify our floating rate debt as a Level 2 item because the estimation of the fair market value requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms.  Such comparable rates are considered significant other observable market inputs.  The book value of the floating rate debt approximates its fair value as of the reporting date.

Our other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items.  These assets are measured at fair value on a non-recurring basis as part of our impairment testing.  Note 7 to these condensed consolidated financial statements contains additional information related to intangible asset impairments.

Note 14 - Financial Instruments and Risk Management

Foreign Currency Risk - Our functional currency is the U.S. Dollar.  By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”).  Such transactions include sales, certain inventory purchases and operating expenses.  As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies.  During the three and nine month periods ended November 30, 2019, approximately 17% and 14%, respectively, of our net sales revenue was in foreign currencies. For both the three and nine month periods ended November 30, 2018, approximately 13% of our net sales revenue was in foreign currencies. These sales were primarily denominated in Euros, British Pounds, Canadian Dollars, and Mexican Pesos. We make most of our inventory purchases from the Far East and primarily use the U.S. Dollar for such purchases.

In our condensed consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A.  During the three and nine month periods ended November 30, 2019, we recorded net foreign exchange gains and (losses) from remeasurement, including the impact of currency hedges

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and the cross-currency debt swaps, of $0.6 million and $2.2 million, respectively, in SG&A compared to $0.3 million and $(0.8) million, respectively.

We hedge against certain foreign currency exchange rate-risk by using a series of forward contracts and zero-cost collars designated as cash flow hedges and mark-to-market derivatives to protect against the foreign currency exchange risk inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. We do not enter into any forward exchange contracts or similar instruments for trading or other speculative purposes. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A in the same period they are settled. The ineffective portion, which is not material for any year presented, is immediately recognized in SG&A.

Interest Rate Risk - Interest on our outstanding debt as of November 30, 2019 is based on floating interest rates.  If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225.0 million of the outstanding principal balance under the Credit Agreement, which totaled $225.8 million (excluding prepaid finance fees) as of November 30, 2019.

The following table summarizes the fair values of our derivative instruments as of the end of the periods shown:

(in thousands)	November 30, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2021	€	14,000	$	134	$	13	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	2/2021	€	22,375	431		119		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	01/2021	$	15,500	82		5		—		—
Zero-cost collar - Pound	Cash flow	02/2021	£	9,500	—		—		185		89
Foreign currency contracts - sell Pound	Cash flow	02/2020	£	15,500	148		—		—		8
Foreign currency contracts - sell Mexican Pesos	Cash flow	02/2020	$	20,000	—		—		15		—
Interest rate swaps	Cash flow	1/2024	$	225,000	—		—		2,058		5,010
Subtotal					795		137		2,258		5,107
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	421		—		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		75		—
Subtotal					421		—		75		—
Total fair value					$	1,216	$	137	$	2,333	$	5,107

(in thousands)	February 28, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2020	€	9,500	$	11	$	—	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	01/2020	€	29,000	1,047		—		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	02/2020	$	16,000	168		—		—		—
Zero-cost collar - Pound	Cash flow	05/2020	£	4,500	—		—		200		—
Foreign currency contracts - sell Pound	Cash flow	05/2020	£	19,500	248		—		—		13
Foreign currency contracts - sell Mexican Pesos	Cash flow	09/2019	$	30,000	—		—		58		—
Interest rate swaps	Cash flow	01/2024	$	225,000	512		—		—		339
Subtotal					1,986		—		258		352
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	—		218		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		—		292
Subtotal					—		218		—		292
Total fair value					$	1,986	$	218	$	258	$	644

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(1) These are foreign currency contracts for which we have not elected hedge accounting.  We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. 

The following table summarizes the pre-tax effect of derivative instruments for the periods shown:

	Three Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018			Location	2019			2018			Location	2019			2018
Currency contracts - cash flow hedges	$	(2,739	)	$	(563	)	SG&A	$	(630	)	$	(1,178	)		$	—		$	—
Interest rate swaps - cash flow hedges	2,084			(4		)	Interest expense	—			—			Interest expense	(162		)	136
Cross-currency debt swaps - principal	—			—				—			—			SG&A	(389		)	228
Cross-currency debt swaps - interest	—			—				—			—			Interest Expense	73			73
Total	$	(655	)	$	(567	)		$	(630	)	$	(1,178	)		$	(478	)	$	437

	Nine Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018		Location	2019			2018			Location	2019		2018
Currency contracts - cash flow hedges	$	(3,407	)	$	3,962	SG&A	$	(2,840	)	$	(1,101	)		$	—	$	—
Interest rate swaps - cash flow hedges	(7,242		)	72		Interest expense	—			—			Interest expense	69		347
Cross-currency debt swaps - principal	—			—			—			—			SG&A	419		894
Cross-currency debt swaps - interest	—			—			—			—			Interest expense	147		147
Total	$	(10,649	)	$	4,034		$	(2,840	)	$	(1,101	)		$	635	$	1,388

We expect pre-tax losses of $1.5 million associated with foreign currency contracts and interest rate swaps currently reported in accumulated other comprehensive income, to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates vary and the underlying contracts settle. 

Counterparty Credit Risk - Financial instruments, including foreign currency contracts and cross currency debt swaps, expose us to counterparty credit risk for non-performance. We manage our exposure to counterparty credit risk by only dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit losses is remote.

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Note 15 - Accumulated Other Comprehensive Income (Loss)

The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown:

(in thousands)	Interest Rate Swaps			Foreign Currency Contracts			Total
Balance at February 28, 2018	$	1,705		$	(1,074	)	$	631
Other comprehensive income (loss) before reclassification	72			3,962			4,034
Amounts reclassified out of accumulated other comprehensive income	—			1,101			1,101
Tax effects	179			(738		)	(559		)
Other comprehensive income (loss)	251			4,325			4,576
Balance at November 30, 2018	$	1,956		$	3,251		$	5,207
Balance at February 28, 2019	$	132		$	1,059		$	1,191
Other comprehensive income (loss) before reclassification	(7,242		)	(3,407		)	(10,649		)
Amounts reclassified out of accumulated other comprehensive income	—			2,840			2,840
Tax effects	1,680			53			1,733
Other comprehensive income (loss)	(5,562		)	(514		)	(6,076		)
Balance at November 30, 2019	$	(5,430	)	$	545		$	(4,885	)

See Notes 12, 13 and 14 to these condensed consolidated financial statements for additional information regarding our hedging activities.

Note 16 - Segment Information

The following tables present segment information included in continuing operations for the periods shown:

	Three Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	183,211	$	185,810	$	105,716	$	474,737
Restructuring charges	—		—		12		12
Operating income	42,272		24,372		12,625		79,269
Capital and intangible asset expenditures	2,272		1,917		197		4,386
Depreciation and amortization	2,263		3,740		2,757		8,760

	Three Months Ended November 30, 2018
(in thousands)	Housewares			Health & Home		Beauty		Total
Sales revenue, net	$	142,937		$	187,863	$	100,281	$	431,081
Restructuring charges	(20		)	—		45		25
Operating income	29,839			19,213		12,244		61,296
Capital and intangible asset expenditures	5,534			3,128		443		9,105
Depreciation and amortization	1,408			4,326		1,461		7,195

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	Nine Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	496,017	$	499,543	$	269,507	$	1,265,067
Restructuring charges	90		—		971		1,061
Operating income	109,170		51,836		19,990		180,996
Capital and intangible asset expenditures	8,354		4,115		778		13,247
Depreciation and amortization	5,292		12,322		7,262		24,876

	Nine Months Ended November 30, 2018
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	397,738	$	527,077	$	254,493	$	1,179,308
Restructuring charges	740		358		1,511		2,609
Operating income	80,351		52,501		22,431		155,283
Capital and intangible asset expenditures	12,830		7,783		1,553		22,166
Depreciation and amortization	4,414		12,703		5,373		22,490

We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, restructuring charges, and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment.  We do not allocate non-operating income and expense, including interest or income taxes, to operating segments.

Note 17 - Income Taxes

Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items.

For the three months ended November 30, 2019, income tax expense as a percentage of income before income tax was 10.3% compared to 6.9% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions and increases in certain statutory tax rates.

For the nine months ended November 30, 2019, income tax expense as a percentage of income before income tax was 9.6%, which included $1.0 million of tax benefits from share-based compensation settlements, $1.7 million of expense from the remeasurement of deferred taxes due to tax rate changes, and a $2.8 million benefit from the resolution of an uncertain tax position. Income tax expense as a percentage of income before income tax was 7.2% for the same period last year, which included $0.7 million tax benefits from share-based compensation settlements and a $0.8 million benefit from the lapse of the statute of limitations related to an uncertain tax position. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions, increases in certain statutory tax rates and the comparative impact of discrete benefits recorded in the same period last year.

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During fiscal 2017, we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure.  We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state.  We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity.

Our Macau subsidiary generates income from the sale of the goods that it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We currently have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. The Macau Offshore Law and its supplementary regulations that grant tax incentives to approved offshore institutions will be abolished on January 1, 2021. Existing approved offshore institutions such as ours can continue to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, we believe our Macau subsidiary will become subject to a statutory corporate income tax of approximately 12%. The ultimate impact of this change, if any, on our overall effective tax rate will depend on a variety of factors including our mix of income by jurisdiction, transfer pricing considerations and the specific tax regulations applicable to us when we are no longer under the Macau Offshore regime. It is not practicable for us to determine the potential impact on our financial statements until the tax changes in Macau are fully established and our transfer pricing analysis is complete. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau.

Note 18 - Earnings Per Share

We compute basic earnings per share using the weighted average number of shares of common stock

outstanding during the period.  We compute diluted earnings per share using the weighted average

number of shares of common stock outstanding plus the effect of dilutive securities.  Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested RSUs, PSUs, RSAs, PSAs and other stock based awards.  See Note 8 to these condensed consolidated financial statements for more information regarding stock-based awards.  Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. 

The following table presents our weighted average basic and diluted shares for the periods shown:

	Three Months Ended November 30,		Nine Months Ended November 30,
(in thousands)	2019	2018	2019	2018
Weighted average shares outstanding, basic	25,161	26,057	25,099	26,321
Incremental shares from share-based compensation arrangements	235	309	196	199
Weighted average shares outstanding, diluted	25,396	26,366	25,295	26,520
Anti-dilutive securities	134	137	217	281

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Note 19 - Subsequent Events

On December 19, 2019, we entered into a definitive agreement to acquire Drybar Products LLC, which includes the Drybar trademark and other intellectual property assets associated with Drybar’s products, as well as certain related production assets and working capital. As part of the transaction, we will grant a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Helen of Troy’s Drybar products globally. The total purchase consideration is $255.0 million in cash, subject to certain customary closing adjustments. We expect to finance the acquisition with cash on hand and borrowings from our existing revolving credit facility. The acquisition is expected to close by January 31, 2020, subject to customary closing conditions, including regulatory approvals.

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ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains a number of forward-looking statements, all of which are based on current expectations. Actual results may differ materially due to a number of factors, including those discussed in Part I, Item 3 of this report. “Quantitative and Qualitative Disclosures about Market Risk” and “Information Regarding Forward-Looking Statements” in this report and “Risk Factors” in the Company’s most recent annual report on Form 10-K for the fiscal year ended February 28, 2019 (“Form 10-K”) and its other filings with the Securities and Exchange Commission (the “SEC”). This discussion should be read in conjunction with our condensed consolidated financial statements included under Part I, Item 1 of this report. When used in the MD&A, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. Throughout MD&A, we refer to our Leadership Brands, which are brands that have number-one and number-two positions in their respective categories and consist of the OXO, Honeywell, Braun, PUR, Hydro Flask, Vicks, and Hot Tools brands.

This MD&A, including the tables under the headings “Operating income, operating margin, adjusted operating income (non-GAAP) and adjusted operating margin (non-GAAP) by segment" and “Income from continuing operations, diluted earnings per share ("EPS") from continuing operations, adjusted income from continuing operations (non-GAAP), and adjusted diluted EPS from continuing operations (non-GAAP),” respectively, reports operating income, operating margin, income from continuing operations and diluted EPS from continuing operations without the impact of non-cash asset impairment charges, acquisition-related expenses, restructuring charges, amortization of intangible assets, and non-cash share-based compensation for the periods presented, as applicable. These measures may be considered non-GAAP financial information as set forth in SEC Regulation G, Rule 100. The tables reconcile these measures to their corresponding GAAP-based measures presented in our condensed consolidated statements of income. We believe that adjusted operating income, adjusted operating margin, adjusted income from continuing operations, and adjusted diluted EPS from continuing operations provide useful information to management and investors regarding financial and business trends relating to our financial condition and results of operations. We believe that these non-GAAP financial measures, in combination with our financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of such charges on applicable income, margin and earnings per share measures. We also believe that these non-GAAP measures facilitate a more direct comparison of our performance to our competitors. We further believe that including the excluded charges would not accurately reflect the underlying performance of our continuing operations for the period in which the charges are incurred, even though such charges may be incurred and reflected in our GAAP financial results in the near future. The material limitation associated with the use of the non-GAAP financial measures is that the non-GAAP measures do not reflect the full economic impact of our activities. Our adjusted operating income, adjusted operating margin, adjusted income from continuing operations, and adjusted diluted EPS from continuing operations are not prepared in accordance with GAAP, are not an alternative to GAAP financial information and may be calculated differently than non-GAAP financial information disclosed by other companies. Accordingly, undue reliance should not be placed on non-GAAP information.

These measures are discussed further and reconciled to their applicable GAAP based measures contained in this MD&A beginning on page 36. 

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OVERVIEW

We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994.  We are a leading global consumer products company offering creative products and solutions for our customers through a diversified portfolio of well-recognized and widely-trusted brands.  We have built leading market positions through new product innovation, product quality and competitive pricing.  We currently operate in three segments consisting of Housewares, Health & Home, and Beauty.  

In fiscal 2015, we launched a five-year transformational strategy designed to improve the performance of our business segments and strengthen our shared service capabilities.  Fiscal 2019 marked the completion of Phase I of our multi-year transformation strategy, which delivered performance across a wide range of measures. We improved core sales growth by focusing on our Leadership Brands, made strategic acquisitions, became a more efficient operating company with strong global shared services, upgraded our organization and culture, improved inventory turns and return on invested capital, and returned capital to shareholders.

Fiscal 2020 began Phase II of our transformation and is designed to drive the next five years of progress. The long-term objectives of Phase II include improved organic sales growth, continued margin expansion, and strategic and effective capital deployment. We expect Phase II will include continued investment in our Leadership Brands, with a focus on growing them through consumer-centric innovation, expanding them more aggressively outside the United States, and adding new brands through acquisition. We anticipate building further shared service capability and operating efficiency, as well as attracting, retaining, unifying and training the best people.

On December 19, 2019, we entered into a definitive agreement to acquire Drybar Products LLC, which includes the Drybar trademark and other intellectual property assets associated with Drybar’s products, as well as certain related production assets and working capital. As part of the transaction, we will grant a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Helen of Troy’s Drybar products globally. The total cash consideration is $255.0 million, subject to certain customary closing adjustments. We expect to finance the acquisition with cash on hand and borrowings from our existing revolving credit facility. The acquisition is expected to close by January 31, 2020, subject to customary closing conditions, including regulatory approvals.

In fiscal 2018, we announced that we had approved a restructuring plan (“Project Refuel”). Project Refuel includes a reduction-in-force and the elimination of certain contracts and operating expenses. We are targeting total annualized profit improvements of approximately $8.0 to $10.0 million over the duration of the plan.  We estimate the plan will be completed during fiscal 2020, and expect to incur total restructuring charges of approximately $7.0 million over the duration of the plan. Since implementing Project Refuel, we have incurred $6.5 million of pre-tax restructuring costs as of November 30, 2019. For additional information regarding Project Refuel, see Note 10 to the accompanying condensed consolidated financial statements.

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million, payable on or before August 1, 2019. The final amount of the supplemental payment was adjusted based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018. During fiscal 2019, we reduced the estimated value of the supplemental payment to $10.8 million and recorded a corresponding pre-tax charge of $5.8 million ($4.4 million after tax) to discontinued operations. The supplemental payment of $10.8 million was received during the second quarter of fiscal 2020. Also, during fiscal 2019,

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we recorded an additional charge of $1.5 million ($1.3 million after tax) to discontinued operations, resulting from the resolution of certain contingencies. In conjunction with the sale of the business, we provided certain transition services that ceased during the second quarter of fiscal 2020. Following the sale, we no longer consolidate our former Nutritional Supplements segment's operating results. Unless otherwise indicated, all results presented are from continuing operations.

Significant Trends Impacting the Business

Impact of Tariffs

During fiscal years 2019 and 2020, the Office of the U.S. Trade Representative (‘‘USTR’’) has imposed, and in certain cases subsequently reduced or removed, additional tariffs on products imported from China. We purchase a high concentration of our products from unaffiliated manufacturers located in China. This concentration exposes us to risks associated with doing business globally, including changes in tariffs.

The tariff increases that have been implemented by the USTR began to impact our cost of goods sold in the third quarter of fiscal 2019 and will continue to do so, as long as these tariff increases remain in effect. In December 2019, the U.S. and China announced an interim trade agreement to halt additional tariff increases that were due to become effective before the end of the year and reverse some tariff increases that became effective in September 2019. The specific details of the interim trade agreement are unclear, as is the ultimate outcome of the broader trade negotiations. At this time, we expect to mitigate the impact of tariff increases primarily through pricing actions and product cost reductions in our supply chain. Although our pricing actions are intended to offset the gross profit dollar impact of tariff increases, there are no assurances that the pricing actions will be successful in fully offsetting this impact or will not reduce retail consumption or customer orders in the short-term.

Since July 2018, the USTR has periodically issued lists of products that are excluded from tariffs on Chinese imports. Under the USTR exclusion process, companies have the opportunity to seek to have particular products excluded from the tariff lists and apply for a refund.

Potential Impact of Brexit and Offshore Receipts in Respect of Intangible Property Tax

The potential exit of the United Kingdom (the "U.K.") from European Union ("E.U.") membership (commonly referred to as "Brexit") could cause disruptions to and create uncertainty surrounding our business, including affecting our relationships with our existing and future customers, suppliers and employees, which could have an adverse effect on our business, financial results and operations. Negotiations are ongoing to determine the future terms of the U.K.’s relationship with the E.U., including the terms of trade between the U.K. and the E.U. The effects of Brexit will depend on any agreements the U.K. makes to retain access to E.U. markets either during a transitional period or more permanently. These measures could potentially disrupt the markets we serve and the tax jurisdictions in which we operate, adversely change tax benefits or liabilities in these or other jurisdictions, and may cause us to lose customers, suppliers, and employees. In addition, Brexit could lead to legal uncertainty and potentially divergent national laws and regulations as the U.K. determines which E.U. laws to replace or replicate.

The U.K.’s Offshore Receipts in respect of Intangible Property ("ORIP") rules were introduced by the Finance Act 2019 and came into effect on April 6, 2019. Under the ORIP rules, where intangible property ("IP") is held in offshore companies, in a territory with which the U.K. does not have a full double taxation arrangement and the IP is used directly or indirectly to enable, facilitate or promote U.K. sales, income derived from that IP could be subject to a U.K. gross receipts tax at 20% of the gross amounts. Based on currently available information, we intend to treat this tax as a transactional tax included in operating expenses. Certain aspects of this legislation and its implementation remain unclear at this time and we expect that additional regulations or guidance may be issued and the accounting treatment of the new tax may be clarified.

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While we do not believe the ORIP tax will have a material adverse impact on our consolidated operating results, we do believe that it could be material to the profitability of our EMEA operating unit. As a result, the ORIP tax could cause us to evaluate different strategic choices with respect to our EMEA operating unit, including a rationalization of the product portfolio sold in the U.K. or an exit from the market, which could adversely impact our net sales revenue.

Foreign Currency Exchange Rate Fluctuations 

Due to the nature of our operations, we have exposure to the impact of fluctuations in exchange rates from transactions that are denominated in a currency other than our reporting currency (the U.S. Dollar). The most significant currencies affecting our operating results are the British Pound, Euro, Canadian Dollar, and Mexican Peso.  

For the three months ended November 30, 2019, changes in foreign currency exchange rates had an unfavorable impact on consolidated U.S. Dollar reported net sales revenue of approximately $2.3 million, or 0.5%, compared to an unfavorable impact of $1.8 million, or 0.4% for the same period last year. For the nine months ended November 30, 2019, changes in foreign currency exchange rates had an unfavorable impact on consolidated U.S. dollar reported net sales revenue of approximately $6.8 million, or 0.6%, compared to a favorable impact of $1.4 million, or 0.1% for the same period last year.

Consumer Spending and Changes in Shopping Preferences

Our business depends upon discretionary consumer demand for most of our products and primarily operates within mature and highly developed consumer markets. The principal driver of our operating performance is the strength of the U.S. retail economy. For the three month periods ended November 30, 2019 and 2018, U.S. shipments were approximately 80% of our net sales. For the nine months ended November 30, 2019 and 2018, U.S. shipments were approximately 79% and 78% of our net sales, respectively.

Additionally, the shift in consumer shopping preferences to online or multichannel shopping experiences has changed the concentration of our sales. For the three and nine month periods ended November 30, 2019, our net sales to retail customers fulfilling end-consumer online orders and online sales directly to consumers comprised approximately 24% of our total consolidated net sales revenue, and grew approximately 30% and 28%, respectively, over the same periods last year.

For the three and nine month periods ended November 30, 2018, our net sales to retail customers fulfilling end-consumer online orders and online sales directly to consumers comprised approximately 20% of our total consolidated net sales revenue, and grew approximately 9% and 25%, respectively, over the same periods last year.

With the continued growth in online sales across the retail landscape, many brick and mortar retailers are aggressively looking for ways to improve their customer delivery capabilities to be able to meet customer expectations.  As a result, it will become increasingly important for us to leverage our distribution capabilities in order to meet the changing demands of our customers, as well as to increase our online capabilities to support our direct-to-consumer sales channels and online channel sales by our retail customers. 

Variability of the Cough/Cold/Flu Season 

Sales in several of our Health & Home segment categories are highly correlated to the severity of winter weather and cough/cold/flu incidence. In the U.S., the cough/cold/flu season historically runs from November through March, with peak activity normally in January to March. For the 2018-2019 season, fall and winter weather was generally milder than historical averages and cough/cold/flu incidence was significantly lower than the 2017-2018 season, which was an above average season.

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RESULTS OF OPERATIONS

The following tables provide selected operating data, in U.S. Dollars, as a percentage of net sales

revenue, and as a year-over-year percentage change:

	Three Months Ended November 30,											% of Sales Revenue, net
(in thousands)	2019			2018			$ Change			% Change		2019		2018
Sales revenue by segment, net
Housewares	$	183,211		$	142,937		$	40,274		28.2	%	38.6	%	33.2	%
Health & Home	185,810			187,863			(2,053		)	(1.1	)%	39.1	%	43.6	%
Beauty	105,716			100,281			5,435			5.4	%	22.3	%	23.3	%
Total sales revenue, net	474,737			431,081			43,656			10.1	%	100.0	%	100.0	%
Cost of goods sold	264,764			249,236			15,528			6.2	%	55.8	%	57.8	%
Gross profit	209,973			181,845			28,128			15.5	%	44.2	%	42.2	%
Selling, general and administrative expense ("SG&A")	130,692			120,524			10,168			8.4	%	27.5	%	28.0	%
Restructuring charges	12			25			(13		)	(52.0	)%	—	%	—	%
Operating income	79,269			61,296			17,973			29.3	%	16.7	%	14.2	%
Non-operating income, net	92			15			77			*		—	%	—	%
Interest expense	(2,767		)	(2,971		)	204			(6.9	)%	(0.6	)%	(0.7	)%
Income before income tax	76,594			58,340			18,254			31.3	%	16.1	%	13.5	%
Income tax expense	7,895			4,020			3,875			96.4	%	1.7	%	0.9	%
Income from continuing operations	68,699			54,320			14,379			26.5	%	14.5	%	12.6	%
Loss from discontinued operations (1)	—			(4,850		)	4,850			*		—	%	(1.1	)%
Net income	$	68,699		$	49,470		$	19,229		38.9	%	14.5	%	11.5	%

	Nine Months Ended November 30,											% of Sales Revenue, net
(in thousands)	2019			2018			$ Change			% Change		2019		2018
Sales revenue by segment, net
Housewares	$	496,017		$	397,738		$	98,279		24.7	%	39.2	%	33.7	%
Health & Home	499,543			527,077			(27,534		)	(5.2	)%	39.5	%	44.7	%
Beauty	269,507			254,493			15,014			5.9	%	21.3	%	21.6	%
Total sales revenue, net	1,265,067			1,179,308			85,759			7.3	%	100.0	%	100.0	%
Cost of goods sold	723,216			695,732			27,484			4.0	%	57.2	%	59.0	%
Gross profit	541,851			483,576			58,275			12.1	%	42.8	%	41.0	%
SG&A	359,794			325,684			34,110			10.5	%	28.4	%	27.6	%
Restructuring charges	1,061			2,609			(1,548		)	(59.3	)%	0.1	%	0.2	%
Operating income	180,996			155,283			25,713			16.6	%	14.3	%	13.2	%
Non-operating income, net	313			175			138			78.9	%	—	%	—	%
Interest expense	(9,291		)	(8,413		)	(878		)	10.4	%	(0.7	)%	(0.7	)%
Income before income tax	172,018			147,045			24,973			17.0	%	13.6	%	12.5	%
Income tax expense	16,530			10,535			5,995			56.9	%	1.3	%	0.9	%
Income from continuing operations	155,488			136,510			18,978			13.9	%	12.3	%	11.6	%
Loss from discontinued operations (1)	—			(5,231		)	5,231			*		—	%	(0.4	)%
Net income	$	155,488		$	131,279		$	24,209		18.4	%	12.3	%	11.1	%

(1) During fiscal 2018, we divested our Nutritional Supplements segment, which is reported as discontinued operations for all periods presented. For more information see Note 5 to the accompanying condensed consolidated financial statements.

* Calculation is not meaningful.

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Third Quarter Fiscal 2020 Financial Results

• Consolidated net sales revenue increased 10.1%, or $43.7 million, to $474.7 million for the three months ended November 30, 2019, compared to $431.1 million for the same period last year.

• Consolidated operating income increased 29.3%, or $18.0 million, to $79.3 million for the three months ended November 30, 2019, compared to $61.3 million for the same period last year. Consolidated operating margin increased 2.5 percentage points to 16.7% of consolidated net sales revenue for the three months ended November 30, 2019, compared to 14.2% for the same period last year. The three months ended November 30, 2019 included pre-tax acquisition-related expenses of $1.5 million with no comparative expenses for the same period last year.

• Consolidated adjusted operating income increased 27.8%, or $19.7 million, to $90.3 million for the three months ended November 30, 2019, compared to $70.6 million for the same period last year. Consolidated adjusted operating margin increased 2.6 percentage points to 19.0% of consolidated net sales revenue for the three months ended November 30, 2019, compared to 16.4% for the same period last year.

• Income from continuing operations increased 26.5%, or $14.4 million, to $68.7 million for the three months ended November 30, 2019, compared to $54.3 million for the same period last year. Diluted EPS from continuing operations increased 31.6% to $2.71 for the three months ended November 30, 2019, compared to $2.06 for the same period last year.

• Adjusted income from continuing operations increased 25.2%, or $15.9 million, to $79.1 million for the three months ended November 30, 2019, compared to $63.2 million for the same period last year. Adjusted diluted EPS from continuing operations increased 30.0% to $3.12 for the three months ended November 30, 2019, compared to $2.40 for the same period last year.

• There were no results from discontinued operations for the three months ended November 30, 2019, compared to a loss from discontinued operations of $4.9 million, or $0.18 per diluted share, for the three months ended November 30, 2018.

• Net income increased 38.9%, or $19.2 million, to $68.7 million for the three months ended November 30, 2019 compared to $49.5 million for the same period last year. Diluted EPS increased 44.1% to $2.71 for the three months ended November 30, 2019 compared to $1.88 for the same period last year.

Year-To-Date Fiscal 2020 Financial Results

• Consolidated net sales revenue increased 7.3%, or $85.8 million, to $1,265.1 million for the nine months ended November 30, 2019, compared to $1,179.3 million for the same period last year.

• Consolidated operating income increased 16.6%, or $25.7 million, to $181.0 million for the nine months ended November 30, 2019, compared to $155.3 million for the same period last year. Consolidated operating margin increased 1.1 percentage points to 14.3% of consolidated net sales revenue for the nine months ended November 30, 2019, compared to 13.2% for the same period last year. The nine months ended November 30, 2019 included pre-tax acquisition-related expenses and pre-tax restructuring charges of $1.5 million and $1.1 million, respectively, compared to zero pre-tax acquisition-related expenses and pre-tax restructuring charges of $2.6 million for the same period last year.

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• Consolidated adjusted operating income increased 16.0%, or $29.7 million, to $215.4 million for the nine months ended November 30, 2019, compared to $185.7 million for the same period last year. Consolidated adjusted operating margin increased 1.2 percentage points to 17.0% of consolidated net sales revenue for the nine months ended November 30, 2019, compared to 15.8% for the same period last year.

• Income from continuing operations increased 13.9%, or $19.0 million, to $155.5 million for the nine months ended November 30, 2019, compared to $136.5 million for the same period last year. Diluted EPS from continuing operations increased 19.4% to $6.15 for the nine months ended November 30, 2019, compared to $5.15 for the same period last year.

• Adjusted income from continuing operations increased 13.4%, or $22.2 million, to $187.8 million for the nine months ended November 30, 2019, compared to $165.5 million for the same period last year. Adjusted diluted EPS from continuing operations increased 18.9% to $7.42 for the nine months ended November 30, 2019, compared to $6.24 for the same period last year.

• There were no results from discontinued operations for the nine months ended November 30, 2019, compared to a loss from discontinued operations, net of tax of $5.2 million, or $0.20 per diluted share for the same period last year.

• Net income increased 18.4%, or $24.2 million, to $155.5 million for the nine months ended November 30, 2019, compared to $131.3 million for the same period last year. Diluted EPS increased 24.2%, to $6.15 for the nine months ended November 30, 2019, compared to $4.95 for the same period last year.

Consolidated and Segment Net Sales

The following tables summarize the impact that core business, foreign exchange and acquisitions, as applicable, had on our net sales revenue by segment: 

	Three Months Ended November 30,
(in thousands)	Housewares			Health & Home			Beauty			Total
Fiscal 2019 sales revenue, net	$	142,937		$	187,863		$	100,281		$	431,081
Core business growth (decline)	40,768			(996		)	6,232			46,004
Impact of foreign currency	(494		)	(1,057		)	(797		)	(2,348		)
Change in sales revenue, net	40,274			(2,053		)	5,435			43,656
Fiscal 2020 sales revenue, net	$	183,211		$	185,810		$	105,716		$	474,737
Total net sales revenue growth (decline)	28.2		%	(1.1		)%	5.4		%	10.1		%
Core business growth (decline)	28.5		%	(0.5		)%	6.2		%	10.7		%
Impact of foreign currency	(0.3		)%	(0.6		)%	(0.8		)%	(0.5		)%

	Nine Months Ended November 30,
(in thousands)	Housewares			Health & Home			Beauty			Total
Fiscal 2019 sales revenue, net	$	397,738		$	527,077		$	254,493		$	1,179,308
Core business growth (decline)	99,535			(23,532		)	16,566			92,569
Impact of foreign currency	(1,256		)	(4,002		)	(1,552		)	(6,810		)
Change in sales revenue, net	98,279			(27,534		)	15,014			85,759
Fiscal 2020 sales revenue, net	$	496,017		$	499,543		$	269,507		$	1,265,067
Total net sales revenue growth (decline)	24.7		%	(5.2		)%	5.9		%	7.3		%
Core business growth (decline)	25.0		%	(4.5		)%	6.5		%	7.8		%
Impact of foreign currency	(0.3		)%	(0.8		)%	(0.6		)%	(0.6		)%

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In the above tables, core business refers to our net sales revenue associated with product lines or brands after the first twelve months from the date the product line or brand is acquired, excluding the impact that foreign currency had on reported net sales. Net sales revenue from internally developed brands or product lines is considered core business activity.

Leadership Brand and Other Net Sales

The following tables summarize our Leadership Brand and other net sales:

	Three Months Ended November 30,
(in thousands)	2019		2018		$ Change		% Change
Leadership Brand sales revenue, net	$	379,604	$	343,364	$	36,240	10.6	%
All other sales revenue, net	95,133		87,717		7,416		8.5	%
Total sales revenue, net	$	474,737	$	431,081	$	43,656	10.1	%

	Nine Months Ended November 30,
(in thousands)	2019		2018		$ Change		% Change
Leadership Brand sales revenue, net	$	1,012,346	$	943,168	$	69,178	7.3	%
All other sales revenue, net	252,721		236,140		16,581		7.0	%
Total sales revenue, net	$	1,265,067	$	1,179,308	$	85,759	7.3	%

Consolidated Net Sales Revenue

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Consolidated net sales revenue increased $43.7 million, or 10.1%, to $474.7 million, compared to $431.1 million. The growth was driven by a core business increase of $46.0 million, or 10.7%, primarily reflecting:

• growth in consolidated online sales;

• an increase in brick and mortar sales in our Housewares segment;

• higher international sales; and

• an increase in sales in the appliance category in the Beauty segment.

These factors were partially offset by:

• lower sales in our Health & Home segment;

• the unfavorable impact from foreign currency fluctuations of approximately $2.3 million, or 0.5%; and

• a decline in the personal care category in the Beauty segment.

Net sales from our Leadership Brands were $379.6 million, compared to $343.4 million for the same period last year, representing growth of 10.6%.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Consolidated net sales revenue increased $85.8 million, or 7.3%, to $1,265.1 million, compared to $1,179.3 million. The growth was driven by a core business increase of $92.6 million, or 7.8%, primarily reflecting:

• growth in consolidated online sales;

• an increase in brick and mortar sales in our Housewares segment; and

• an increase in sales in the appliance category in the Beauty segment.

These factors were partially offset by:

• lower sales in our Health & Home segment;

• a decline in the personal care category within the Beauty segment; and

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• the unfavorable impact from net foreign currency fluctuations of approximately $6.8 million, or 0.6%.

Net sales from our Leadership Brands were $1,012.3 million compared to $943.2 million for the same period last year, representing growth of 7.3%.

Segment Net Sales Revenue 

Housewares

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Net sales revenue increased $40.3 million, or 28.2%, to $183.2 million, compared to $142.9 million. Growth was driven by a core business increase of $40.8 million, or 28.5%, primarily due to:

• point of sale growth with existing domestic brick and mortar customers;

• an increase in online sales;

• an increase in international sales;

• higher club sales; and

• new product introductions.

These factors were partially offset by the unfavorable impact of net foreign currency fluctuations of approximately $0.5 million, or 0.3%.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Net sales revenue increased $98.3 million, or 24.7%, to $496.0 million, compared to $397.7 million. Growth was primarily driven by a core business increase of $99.5 million, or 25.0%, due to:

• point of sale growth and incremental distribution with existing domestic brick and mortar customers;

• an increase in online sales;

• higher club and closeout sales; and

• new product introductions.

These factors were partially offset by the unfavorable impact of net foreign currency fluctuations of approximately $1.3 million, or 0.3%.

Health & Home

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Net sales revenue decreased $2.1 million, or 1.1%, to $185.8 million, compared to $187.9 million. The decline was driven by a core business decline of $1.0 million, or 0.5% due to lower domestic sales driven by the unfavorable comparative impact from more wildfire activity in the same period last year and net distribution changes year-over-year. These factors were partially offset by revenue from new product introductions and growth in international sales.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Net sales revenue decreased $27.5 million, or 5.2%, to $499.5 million compared to $527.1 million. The decline was primarily driven by a core business decline of $23.5 million, or 4.5%, due to:

• lower domestic sales driven by net distribution changes year-over-year, the unfavorable comparative impacts of a strong cough/cold/flu season and more wildfire activity in the same period last year; and

• lower international sales.

These factors were partially offset by revenue from new product introductions.

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Beauty

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Net sales revenue increased $5.4 million, or 5.4%, to $105.7 million, compared to $100.3 million. The increase was driven by an increase in core business sales of $6.2 million, or 6.2%, primarily due to:

• increased demand and new product introductions in the appliance category;

• growth in the online channel; and

• an increase in international sales.

These factors were partially offset by a decline in net sales in the personal care category and the unfavorable impact of net foreign currency fluctuations of approximately $0.8 million, or 0.8%.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Net sales revenue increased $15.0 million, or 5.9%, to $269.5 million, compared to $254.5 million. The growth was driven by a core business increase of $16.6 million, or 6.5%, primarily due to:

• increased demand and new product introductions in the appliance category;

• growth in the online channel; and

• an increase in international sales.

These factors were partially offset by a decrease in net sales in the personal care category and the unfavorable impact of net foreign currency fluctuations of approximately $1.6 million, or 0.6%.

Consolidated Gross Profit Margin

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Consolidated gross profit margin increased 2.0 percentage points to 44.2%, compared to 42.2%. The increase in consolidated gross profit margin was primarily due to:

• a higher mix of Housewares sales at a higher overall gross profit margin; and

• a favorable product and channel mix within the Housewares segment.

These factors were partially offset by a lower mix of personal care sales in the Beauty segment.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Consolidated gross profit margin increased 1.8 percentage points to 42.8%, compared to 41.0%. The increase in consolidated gross profit margin was primarily due to:

• a higher mix of Housewares sales at a higher overall gross profit margin;

• a favorable product mix within the Housewares segment;

• a lower mix of shipments made on a direct import basis; and

• tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and the first quarter of fiscal 2020.

These factors were partially offset by:

• the net margin dilutive impact from tariffs and related pricing actions;

• unfavorable foreign currency fluctuations;

• a lower mix of personal care sales in the Beauty segment; and

• higher inbound freight expense.

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Consolidated SG&A

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Consolidated SG&A ratio decreased 0.5 percentage points to 27.5%, compared to 28.0%. The decrease in the consolidated SG&A ratio was primarily due to:

• lower advertising expense;

• the impact from tariff related pricing actions taken with retail customers;

• the impact that higher overall sales had on net operating leverage; and

• the favorable impact of foreign currency exchange and forward contract settlements.

These factors were partially offset by:

• higher annual incentive compensation expense;

• acquisition-related expenses associated with the definitive agreement to acquire Drybar Products LLC;

• higher amortization expense; and

• higher freight and distribution expense.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Consolidated SG&A ratio increased 0.8 percentage points to 28.4%, compared to 27.6%. The increase in the consolidated SG&A ratio was primarily due to:

• higher annual incentive compensation expense;

• the unfavorable impact of a lower mix of shipments made on a direct import basis;

• acquisition-related expenses;

• higher freight and distribution expense; and

•higher amortization expense.

These factors were partially offset by:

•the impact from tariff related pricing actions taken with retail customers;

•the impact that higher overall sales had on net operating leverage;

•lower advertising expense; and

•the favorable impact of foreign currency exchange and forward contract settlements.

Restructuring Charges

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

We incurred insignificant restructuring charges for both periods.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

We incurred $1.1 million of pre-tax restructuring charges, compared to $2.6 million. The charges related primarily to employee severance and termination benefits and contract termination costs.

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Operating income, operating margin, adjusted operating income (non-GAAP), and adjusted operating margin (non-GAAP) by segment

In order to provide a better understanding of the comparative impact of certain items on operating income, the tables that follow report the comparative before tax impact of non-cash asset impairment charges, acquisition-related expenses, restructuring charges, amortization of intangible assets, and non‐cash share‐based compensation, as applicable, on operating income and operating margin for each segment and in total for the periods covered below.  Adjusted operating income and adjusted operating margin may be considered non-GAAP financial measures as contemplated by SEC Regulation G, Rule 100.  For additional information regarding management’s decision to present this non-GAAP financial information, see the introduction to this Item 2., “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

	Three Months Ended November 30, 2019
(In thousands)	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	42,272	23.1	%	$	24,372	13.1	%	$	12,625	11.9	%	$	79,269	16.7	%
Acquisition-related expenses	—		—	%	—		—	%	1,475		1.4	%	1,475		0.3	%
Restructuring charges	—		—	%	—		—	%	12		—	%	12		—	%
Subtotal	42,272		23.1	%	24,372		13.1	%	14,112		13.3	%	80,756		17.0	%
Amortization of intangible assets	815		0.4	%	2,492		1.3	%	1,483		1.4	%	4,790		1.0	%
Non-cash share-based compensation	1,510		0.8	%	1,946		1.0	%	1,302		1.2	%	4,758		1.0	%
Adjusted operating income (non-GAAP)	44,597		24.3	%	28,810		15.5	%	16,897		16.0	%	90,304		19.0	%

	Three Months Ended November 30, 2018
(In thousands)	Housewares					Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	29,839		20.9	%	$	19,213	10.2	%	$	12,244	12.2	%	$	61,296	14.2	%
Restructuring charges	(20		)	—	%	—		—	%	45		—	%	25		—	%
Subtotal	29,819			20.9	%	19,213		10.2	%	12,289		12.3	%	61,321		14.2	%
Amortization of intangible assets	489			0.3	%	2,721		1.4	%	90		0.1	%	3,300		0.8	%
Non-cash share-based compensation	2,293			1.6	%	2,548		1.4	%	1,175		1.2	%	6,016		1.4	%
Adjusted operating income (non-GAAP)	32,601			22.8	%	24,482		13.0	%	13,554		13.5	%	70,637		16.4	%

	Nine Months Ended November 30, 2019
(In thousands)	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	109,170	22.0	%	$	51,836	10.4	%	$	19,990	7.4	%	$	180,996	14.3	%
Acquisition-related expenses	—		—	%	—		—	%	1,475		0.5	%	1,475		0.1	%
Restructuring charges	90		—	%	—		—	%	971		0.4	%	1,061		0.1	%
Subtotal	109,260		22.0	%	51,836		10.4	%	22,436		8.3	%	183,532		14.5	%
Amortization of intangible assets	1,512		0.3	%	8,088		1.6	%	3,529		1.3	%	13,129		1.0	%
Non-cash share-based compensation	5,853		1.2	%	7,839		1.6	%	5,051		1.9	%	18,743		1.5	%
Adjusted operating income (non-GAAP)	$	116,625	23.5	%	$	67,763	13.6	%	$	31,016	11.5	%	$	215,404	17.0	%

	Nine Months Ended November 30, 2018
(In thousands)	Housewares				Health & Home				Beauty				Total
Operating income, as reported (GAAP)	$	80,351	20.2	%	$	52,501	10.0	%	$	22,431	8.8	%	$	155,283	13.2	%
Restructuring charges	740		0.2	%	358		0.1	%	1,511		0.6	%	2,609		0.2	%
Subtotal	81,091		20.4	%	52,859		10.0	%	23,942		9.4	%	157,892		13.4	%
Amortization of intangible assets	1,474		0.4	%	8,129		1.5	%	1,219		0.5	%	10,822		0.9	%
Non-cash share-based compensation	6,273		1.6	%	7,030		1.3	%	3,726		1.5	%	17,029		1.4	%
Adjusted operating income (non-GAAP)	$	88,838	22.3	%	$	68,018	12.9	%	$	28,887	11.4	%	$	185,743	15.8	%

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Consolidated Operating Income

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Consolidated operating income was $79.3 million, or 16.7% of net sales, compared to $61.3 million, or 14.2% of net sales, for the same period last year.  The increase was driven by the following factors:

• a higher mix of Housewares sales at a higher overall operating margin;

• a favorable product and channel mix within the Housewares segment;

• the favorable impact that higher overall net sales had on operating expense leverage; and

• lower advertising expense.

These factors were partially offset by:

• higher annual incentive compensation expense;

• acquisition-related expenses;

• higher amortization expense; and

• higher freight and distribution expense.

Consolidated adjusted operating income increased 27.8% to $90.3 million, or 19.0% of net sales, compared to $70.6 million, or 16.4% of net sales, in the same period last year. 

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Consolidated operating income was $181.0 million, or 14.3% of net sales, compared to $155.3 million, or 13.2% of net sales, for the same period last year.  The increase was driven by the following factors:

• tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and the first quarter of fiscal 2020;

• a higher mix of Housewares sales at a higher overall operating margin;

• a favorable product mix within the Housewares segment;

• the favorable impact that higher overall net sales had on operating expense leverage;

• lower advertising expense; and

• the net favorable comparative impact of pre-tax restructuring charges of $1.5 million.

These factors were partially offset by:

• higher annual incentive compensation expense;

• higher freight and distribution expense;

• acquisition-related expenses in the current period;

• higher amortization expense; and

• the net unfavorable impact of foreign currency fluctuations.

Consolidated adjusted operating income increased 16.0% to $215.4 million, or 17.0% of net sales, compared to $185.7 million, or 15.8% of net sales, for the same period last year. 

Housewares

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Operating income was $42.3 million, or 23.1% of segment net sales, compared to $29.8 million, or 20.9% of segment net sales, for the same period last year. The 2.2 percentage point increase in segment operating margin was primarily due to:

• the margin impact of a more favorable product and channel mix;

• the impact that higher sales had on operating leverage; and

• lower advertising expense.

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These factors were partially offset by higher freight and distribution expense to support increased retail customer shipments and strong direct-to-consumer demand.

Adjusted operating income increased 36.8% to $44.6 million, or 24.3% of segment net sales, compared to $32.6 million, or 22.8% of segment net sales, in the same period last year.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Operating income was $109.2 million, or 22.0% of segment net sales, for the nine months ended November 30, 2019, compared to $80.4 million, or 20.2% of segment net sales, in the same period last year. The 1.8 percentage point increase in segment operating margin was primarily due to:

• the margin impact of a more favorable product and channel mix;

• the impact that higher sales had on operating leverage; and

• the net favorable comparative impact of pre-tax restructuring charges of $0.7 million.

These factors were partially offset by:

• higher annual incentive compensation expense;

• higher advertising expense; and

• higher freight and distribution center expense to support increased retail customer shipments and strong direct-to-consumer demand.

Adjusted operating income increased 31.3% to $116.6 million, or 23.5% of segment net sales, compared to $88.8 million, or 22.3% of segment net sales, in the same period last year.

Health & Home

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Operating income was $24.4 million, or 13.1% of segment net sales, compared to $19.2 million, or 10.2% of segment net sales in the same period last year. The 2.9 percentage point increase in segment operating margin was primarily due to:

• lower advertising expense; and

• the margin impact of a more favorable product mix.

These factors were offset by unfavorable operating leverage from the decline in sales.

Adjusted operating income increased 17.7% to $28.8 million, or 15.5% of segment net sales, compared to $24.5 million, or 13.0% of segment net sales, in the same period last year.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Operating income was $51.8 million, or 10.4% of segment net sales, compared to $52.5 million, or 10.0% of segment net sales, in the same period last year. The 0.4 percentage point increase in segment operating margin was primarily due to:

• tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and first quarter of fiscal 2020;

• lower advertising expense; and

• lower product liability claim expense.

These factors were partially offset by the net unfavorable impact of foreign currency fluctuations, and unfavorable operating leverage from the decline in sales.

Adjusted operating income decreased 0.4% to $67.8 million, or 13.6% of segment net sales, compared to $68.0 million, or 12.9% of segment net sales, in the same period last year.

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Beauty

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Operating income was $12.6 million, or 11.9% of segment net sales, compared to $12.2 million, or 12.2% of segment net sales, in the same period last year. The 0.3 percentage point decrease in segment operating margin was primarily due to:

• higher annual incentive compensation expense;

• acquisition-related expenses;

• higher amortization expense; and

• the unfavorable margin impact of a lower mix of personal care sales.

These factors were partially offset by lower advertising expense.

Adjusted operating income increased 24.7% to $16.9 million, or 16.0% of segment net sales, compared to $13.6 million, or 13.5% of segment net sales, in the same period last year.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Operating income was $20.0 million, or 7.4% of segment net sales, compared to operating income of $22.4 million, or 8.8% of segment net sales, in the same period last year. The 1.4 percentage point decrease in segment operating margin was primarily due to:

• the impact of higher freight expense to meet strong demand in the appliance category;

• higher annual incentive and share-based compensation expense related to short- and long-term performance;

• higher amortization expense;

• acquisition-related expenses; and

• the unfavorable margin impact of a lower mix of personal care sales.

These factors were partially offset by lower advertising expense and the net favorable comparative impact of pre-tax restructuring charges of $0.5 million.

Adjusted operating income increased 7.4% to $31.0 million, or 11.5% of segment net sales, compared to $28.9 million, or 11.4% of segment net sales, in the same period last year.

Interest Expense

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Interest expense was $2.8 million, compared to $3.0 million. The decrease in interest expense was primarily due to lower average levels of debt outstanding and lower average interest rates.

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Interest expense was $9.3 million, compared to $8.4 million. The increase in interest expense was primarily due to higher average interest rates.

Income Tax Expense

The period-over-period comparison of our effective tax rate is impacted by the mix of taxable income in our various tax jurisdictions. Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in

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proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate.

For the three months ended November 30, 2019, income tax expense as a percentage of income before income tax was 10.3% compared to 6.9% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions and increases in certain statutory tax rates.

For the nine months ended November 30, 2019, income tax expense as a percentage of income before income tax was 9.6%, which included $1.0 million of tax benefits from share-based compensation settlements, $1.7 million of expense from the remeasurement of deferred taxes due to tax rate changes, and a $2.8 million benefit from the resolution of an uncertain tax position. Income tax expense as a percentage of income before income tax was 7.2% for the same period last year, which included $0.7 million tax benefits from share-based compensation settlements and a $0.8 million benefit from the lapse of the statute of limitations related to an uncertain tax position. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions, increases in certain statutory tax rates and the comparative impact of discrete benefits recorded in the same period last year.

During fiscal 2017, we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure.  We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state.  We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity.

Our Macau subsidiary generates income from the sale of the goods it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We currently have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. The Macau Offshore Law and its supplementary regulations that grant tax incentives to approved offshore institutions will be abolished on January 1, 2021. Existing approved offshore institutions such as ours can continue to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, we believe our Macau subsidiary will become subject to a statutory corporate income tax of approximately 12%. The ultimate impact of this change, if any, on our overall effective tax rate will depend on a variety of factors including our mix of income by jurisdiction, transfer pricing considerations and the specific tax regulations applicable to us when we are no longer under the Macau Offshore regime. It is not practicable for us to determine the potential impact on our financial statements until the tax changes in Macau are fully established and our transfer pricing analysis is complete. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau.

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Income from continuing operations, diluted EPS from continuing operations, adjusted income from continuing operations (non-GAAP), and adjusted diluted EPS from continuing operations (non-GAAP)

In order to provide a better understanding of the impact of certain items on our income and EPS from continuing operations, the analysis that follows reports the comparative after tax impact of non-cash asset impairment charges, acquisition-related expenses, restructuring charges, amortization of intangible assets, and non-cash share‐based compensation, as applicable, on income from continuing operations, and diluted EPS from continuing operations for the periods covered below. For additional information regarding management’s decision to present this non-GAAP financial information, see the introduction to this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

	Three Months Ended November 30, 2019
	Income From Continuing Operations						Diluted EPS From Continuing Operations
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	76,594	$	7,895	$	68,699	$	3.02	$	0.31	$	2.71
Acquisition-related expenses	1,475		22		1,453		0.06		—		0.06
Restructuring charges	12		—		12		—		—		—
Subtotal	78,081		7,917		70,164		3.07		0.31		2.76
Amortization of intangible assets	4,790		252		4,538		0.19		0.01		0.18
Non-cash share-based compensation	4,758		343		4,415		0.19		0.01		0.17
Adjusted (non-GAAP)	$	87,629	$	8,512	$	79,117	$	3.45	$	0.34	$	3.12
Weighted average shares of common stock used in computing diluted EPS											25,396

	Three Months Ended November 30, 2018
	Income From Continuing Operations						Diluted EPS From Continuing Operations
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	58,340	$	4,020	$	54,320	$	2.21	$	0.15	$	2.06
Restructuring charges	25		2		23		—		—		—
Subtotal	58,365		4,022		54,343		2.21		0.15		2.06
Amortization of intangible assets	3,300		46		3,254		0.13		—		0.12
Non-cash share-based compensation	6,016		415		5,601		0.23		0.02		0.21
Adjusted (non-GAAP)	$	67,681	$	4,483	$	63,198	$	2.57	$	0.17	$	2.40
Weighted average shares of common stock used in computing diluted EPS											26,366

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	Nine Months Ended November 30, 2019
	Income From Continuing Operations						Diluted EPS From Continuing Operations
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	172,018	$	16,530	$	155,488	$	6.80	$	0.65	$	6.15
Acquisition-related expenses	1,475		22		1,453		0.06		—		0.06
Restructuring charges	1,061		68		993		0.04		—		0.04
Subtotal	174,554		16,620		157,934		6.90		0.66		6.24
Amortization of intangible assets	13,129		621		12,508		0.52		0.02		0.49
Non-cash share-based compensation	18,743		1,434		17,309		0.74		0.06		0.68
Adjusted (non-GAAP)	$	206,426	$	18,675	$	187,751	$	8.16	$	0.74	$	7.42
Weighted average shares of common stock used in computing diluted EPS											25,295

	Nine Months Ended November 30, 2018
	Income From Continuing Operations						Diluted EPS From Continuing Operations
(in thousands, except per share data)	Before Tax		Tax		Net of Tax		Before Tax		Tax		Net of Tax
As reported (GAAP)	$	147,045	$	10,535	$	136,510	$	5.54	$	0.40	$	5.15
Restructuring charges	2,609		185		2,424		0.10		0.01		0.09
Subtotal	149,654		10,720		138,934		5.64		0.40		5.24
Amortization of intangible assets	10,822		236		10,586		0.41		0.01		0.40
Non-cash share-based compensation	17,029		1,021		16,008		0.64		0.04		0.60
Adjusted (non-GAAP)	$	177,505	$	11,977	$	165,528	$	6.69	$	0.45	$	6.24
Weighted average shares of common stock used in computing diluted EPS											26,520

Comparison of Third Quarter Fiscal 2020 to Third Quarter Fiscal 2019

Income from continuing operations was $68.7 million, compared to $54.3 million.  Diluted EPS from continuing operations was $2.71, compared to $2.06. Diluted EPS increased primarily due to higher operating income in the Housewares segment and the impact of lower weighted average diluted shares outstanding compared to the same period last year. This was partially offset by higher income tax expense.

Adjusted income from continuing operations increased $15.9 million, or 25.2%, to $79.1 million, compared to $63.2 million the same period last year.  Adjusted diluted EPS from continuing operations increased 30.0% to $3.12, compared to $2.40.  

Comparison of First Nine Months of Fiscal 2020 to First Nine Months of Fiscal 2019

Income from continuing operations was $155.5 million, compared to $136.5 million.  Diluted EPS from continuing operations was $6.15, compared to $5.15. Diluted EPS increased primarily due to the impact of higher operating income in our Housewares segment and lower weighted average diluted shares outstanding compared to the same period last year. This was partially offset by lower operating income in our Beauty segment, higher interest expense and higher income tax expense.

Adjusted income from continuing operations increased $22.2 million, or 13.4%, to $187.8 million, compared to $165.5 million.  Adjusted diluted EPS from continuing operations increased 18.9% to $7.42, compared to $6.24.  

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Financial Condition, Liquidity and Capital Resources

Selected measures of our liquidity and capital resources are shown for the periods below:  

	Nine Months Ended November 30,
	2019			2018
Accounts Receivable Turnover (Days) (1)	68.9			69.4
Inventory Turnover (Times) (1)	2.9			3.4
Working Capital (in thousands)	$	411,340		$	338,008
Current Ratio	2.3:1			2.0:1
Ending Debt to Ending Equity Ratio	21.0		%	32.9		%
Return on Average Equity (1)	18.2		%	14.1		%

_____________________

(1) Accounts receivable turnover, inventory turnover and return on average equity computations use 12 month trailing net sales revenue, cost of goods sold or net income components as required by the particular measure. The current and four prior quarters' ending balances of accounts receivable, inventory and equity are used for the purposes of computing the average balance component as required by the particular measure.

We rely principally on cash flows from operations and borrowings under our credit facility to finance our operations, acquisitions, and capital expenditures.  We believe our cash flows from operations and availability under our credit facility are sufficient to meet our working capital and capital expenditure needs. 

Operating Activities

Operating activities from continuing operations provided net cash of $101.4 million for the nine months ended November 30, 2019, compared to $109.5 million for the same period last year.  The decrease is primarily due to an increase in cash used for accounts receivable, accounts payable and accrued expenses and was partially offset by increased income from continuing operations.

Investing Activities

During the nine months ended November 30, 2019, we invested in capital and intangible asset expenditures of $13.2 million, compared to $22.2 million for the same period last year. The decrease is primarily due to the comparative impact of leasehold improvement expenditures in the same period last year.  

Financing Activities

Financing activities from continuing operations used $80.4 million of cash during the nine months ended November 30, 2019, compared to $84.8 million for the same period last year.  A reduction in repurchases of common stock was offset by higher net repayments on our line of credit for the first nine months of fiscal 2020 compared to the same period last year.

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Credit and Other Debt Agreements

Credit Agreement

We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provides for an unsecured total revolving commitment of $1.0 billion as of November 30, 2019. The commitment under the Credit Agreement terminates and the Credit Agreement matures on December 7, 2021. Borrowings accrue interest under one of two alternative methods (based on a base rate or LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time. We also incur loan commitment and letter of credit fees under the Credit Agreement. Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis. As of November 30, 2019, the outstanding revolving loan principal balance was $225.8 million (excluding prepaid financing fees) and the balance of outstanding letters of credit was $9.0 million. As of November 30, 2019, the amount available for borrowings under the Credit Agreement was $765.2 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur.  As of November 30, 2019, these covenants effectively limited our ability to incur more than $730.5 million of additional debt from all sources, including our Credit Agreement, or $765.2 million in the event a qualified acquisition is consummated. 

Other Debt Agreements

We have an aggregate principal balance of $20.5 million (excluding prepaid financing fees) under a loan agreement with the Mississippi Business Finance Corporation (the “MBFC Loan”) as of November 30, 2019. The borrowings were used to fund construction of our Olive Branch, Mississippi distribution facility. Since March 2018, the MBFC Loan can be called by the holder at any time. The remaining loan balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.

All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries. Our debt agreements require the maintenance of certain key financial covenants, defined in the table below. Our debt agreements also contain other customary covenants, including, among other things, covenants restricting or limiting us, except under certain conditions set forth therein, from (1) incurring debt, (2) incurring liens on our properties, (3) making certain types of investments, (4) selling certain assets or making other fundamental changes relating to mergers and consolidations, and (5) repurchasing shares of our common stock and paying dividends. Our debt agreements also contain customary events of default, including failure to pay principal or interest when due, among others. Our debt agreements are cross-defaulted to each other. Upon an event of default under our debt agreements, the holders or lenders may, among other things, accelerate the maturity of any amounts outstanding under our debt agreements. The commitments of the lenders to make loans to us under the Credit Agreement are several and not joint. Accordingly, if any lender fails to make loans to us, our available liquidity could be reduced by an amount up to the aggregate amount of such lender’s commitments under the Credit Agreement.

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The table below provides the formulas currently in effect for certain key financial covenants as defined under our debt agreements:

Applicable Financial Covenant	Credit Agreement and MBFC Loan
Interest Coverage Ratio	EBIT (1) ÷ Interest Expense (1)
	Minimum Required:  3.00 to 1.00
Maximum Leverage Ratio	Total Current and Long Term Debt (2) ÷
	EBITDA (1) + Pro Forma Effect of Acquisitions
	Maximum Currently Allowed:  3.50 to 1.00 (3)

Key Definitions:

EBIT:                 Earnings Before Non-Cash Charges, Interest Expense and Taxes

EBITDA:                EBIT + Depreciation and Amortization Expense + Share-based Compensation

Pro Forma Effect of Acquisitions:    For any acquisition, pre-acquisition EBITDA of the acquired business is included so that the

EBITDA of the acquired business included in the computation equals its twelve month trailing total.

Notes:

(1) Computed using totals for the latest reported four consecutive fiscal quarters.  

(2) Computed using the ending balances as of the latest reported fiscal quarter. 

(3) In the event a qualified acquisition is consummated, the maximum leverage ratio is 4.25 to 1.00. 

Contractual Obligations

As of November 30, 2019, there have been no material changes from the information provided in our latest annual report on Form 10-K.  Additional information regarding contractual obligations can be found in Notes 11, 12 and 19 to the accompanying condensed consolidated financial statements.

Off-Balance Sheet Arrangements

We have no existing activities involving special purpose entities or off-balance sheet financing.

Current and Future Capital Needs

Based on our current financial condition and current operations, we believe that cash flows from operations and available financing sources will continue to provide sufficient capital resources to fund our foreseeable short- and long-term liquidity requirements, including our pending acquisition of Drybar Products LLC. Other than the Drybar Products LLC acquisition, we expect our capital needs to stem primarily from the need to purchase sufficient levels of inventory and to carry normal levels of accounts receivable on our balance sheet. In addition, we continue to evaluate acquisition opportunities on a regular basis. We may finance acquisition activity with available cash, the issuance of shares of common stock, additional debt, or other sources of financing, depending upon the size and nature of any such transaction and the status of the capital markets at the time of such acquisition. We may also elect to repurchase additional shares of common stock under our Board authorization, subject to limitations contained in our debt agreements and based upon our assessment of a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. We may finance share repurchases with available cash, additional debt or other sources of financing. For additional information, see Part II, Item 5, “Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities” in our latest annual report on form 10-K and Part II, Item 2, "Unregistered Sales of Equity Securities and

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Use of Proceeds" in this report. As of November 30, 2019, the amount of cash and cash equivalents held by our foreign subsidiaries was $18.1 million, of which, $0.6 million was held in foreign countries where the funds may not be readily convertible into other currencies.  

New Accounting Guidance

For information on recently adopted and issued accounting pronouncements, see Note 2 to the accompanying condensed consolidated financial statements.

Information Regarding Forward-Looking Statements

Certain written and oral statements may constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this report, in other filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in certain other oral and written presentations. Generally, the words "anticipates", "believes", "expects", "plans", "may", "will", "should", "seeks", "estimates", "project", "predict", "potential", "continue", "intends", and other similar words identify forward-looking statements. All statements that address operating results, events or developments that may occur in the future, including statements related to sales, earnings per share results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon our current expectations and various assumptions.  We believe there is a reasonable basis for our expectations and assumptions, but there can be no assurance that we will realize our expectations or that our assumptions will prove correct.  Forward-looking statements are subject to risks that could cause them to differ materially from actual results.  Accordingly, we caution readers not to place undue reliance on forward-looking statements.  We believe that these risks include but are not limited to the risks described in this report and that are otherwise described from time to time in our SEC reports as filed. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

Such risks are not limited to, but may include:

• our ability to deliver products to our customers in a timely manner and according to their fulfillment standards;

• the costs of complying with the business demands and requirements of large sophisticated customers;

• our relationships with key customers and licensors;

• our dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn;

• our dependence on sales to several large customers and the risks associated with any loss or substantial decline in sales to top customers;

• expectations regarding Project Refuel and any other proposed restructuring;

• expectations regarding recent, pending and future acquisitions or divestitures, including our ability to realize anticipated cost savings, synergies and other benefits along with our ability to effectively integrate acquired businesses or separate divested businesses;

• circumstances which may contribute to future impairment of goodwill, intangible or other long-lived assets;

• the retention and recruitment of key personnel;

• foreign currency exchange rate fluctuations;

• risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors;

• our dependence on foreign sources of supply and foreign manufacturing, and associated operational risks including, but not limited to, long lead times, consistent local labor availability and capacity, and timely availability of sufficient shipping carrier capacity;

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• the impact of changing costs of raw materials, labor and energy on cost of goods sold and certain operating expenses;

• the risks associated with significant tariffs or other restrictions on imports from China or any retaliatory trade measures taken by China;

• the geographic concentration and peak season capacity of certain U.S. distribution facilities increases our exposure to significant shipping disruptions and added shipping and storage costs;

• our projections of product demand, sales and net income are highly subjective in nature and future sales and net income could vary in a material amount from such projections;

• the risks associated with the use of trademarks licensed from and to third parties;

• our ability to develop and introduce a continuing stream of new products to meet changing consumer preferences;

• trade barriers, exchange controls, expropriations, and other risks associated with U.S. and foreign operations;

• the risks to our liquidity as a result of changes to capital market conditions and other constraints or events that impose constraints on our cash resources and ability to operate our business;

• the costs, complexity and challenges of upgrading and managing our global information systems;

• the risks associated with cybersecurity and information security breaches;

• the risks associated with global legal developments regarding privacy and data security could result in changes to our business practices, penalties, increased cost of operations, or otherwise harm our business;

• the risks associated with product recalls, product liability, other claims, and related litigation against us;

• the risks associated with accounting for tax positions, tax audits and related disputes with taxing authorities;

• the risks of potential changes in laws in the U.S. or abroad, including tax laws, regulations or treaties, employment and health insurance laws and regulations, laws relating to environmental policy, personal data, financial regulation, transportation policy and infrastructure policy along with the costs and complexities of compliance with such laws; and

• our ability to continue to avoid classification as a controlled foreign corporation.  

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the information provided in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in our Form 10-K.  Additional information regarding risk management activities can be found in Notes 12, 13 and 14 to the accompanying condensed consolidated financial statements.

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ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

Our management, under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), maintains disclosure controls and procedures as defined in Rules 13a-15(e) under the Securities Exchange Act of 1934 ("Exchange Act") that are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosures. Because of inherent limitations, disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of disclosure controls and procedures are met.

Our management, including our CEO and CFO, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended November 30, 2019. Based upon that evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective at a reasonable level of assurance as of November 30, 2019, the end of the period covered by this quarterly report on Form 10-Q.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

In connection with the evaluation described above, we identified no change in our internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act that occurred during our fiscal quarter ended November 30, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS 

We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.  

ITEM 1A. RISK FACTORS  

The ownership of our common stock involves a number of risks and uncertainties. When evaluating the Company and our business before making an investment decision regarding our securities, potential investors should carefully consider the risk factors and uncertainties described in Part 1, Item 1A. “Risk Factors” of our annual report on Form 10-K for the fiscal year ended February 28, 2019.  Since the filing of our annual report on Form 10-K, there have been no material changes in our risk factors from those disclosed therein.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS  

On May 8, 2019, our Board of Directors authorized the repurchase of up to $400 million of our outstanding common stock. The authorization is effective until May 2022 and replaced our former repurchase authorization, of which $107.4 million was outstanding at the time the new authorization was approved. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The

48

number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities. See Note 9 to the accompanying condensed consolidated financial statements for additional information.

Our current equity-based compensation plans include provisions that allow for the "net exercise" of share settled awards by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option or other share-based award holders are settled by having the holder tender back to us a number of shares at fair value equal to the amounts due. Net exercises are treated as purchases and retirements of shares.

The following table summarizes our share repurchase activity for the periods shown:

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in thousands) (2)
September 1 to September 30, 2019	6,350	$	153.83	6,350	$	393,038
October 1 to October 31, 2019	116	156.05		116	393,020
November 1 to November 30, 2019	43	155.34		43	393,013
Total	6,509	$	153.88	6,509

(1) The number of shares above includes shares of common stock acquired from employees who tendered shares to: (i) satisfy the tax withholding on equity awards as part of our long-term incentive plans or (ii) satisfy the exercise price on stock option exercises. For the three months ended November 30, 2019, 6,509 shares were acquired at a weighted average per share price of $153.88.

(2) Reflects the remaining dollar value of shares that could be purchased under our current stock repurchase authorization through the expiration or termination of the plan. For additional information, see Note 9 to the accompanying condensed consolidated financial statements.

n

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ITEM 6.	EXHIBITS
		(a)	Exhibits
			31.1*	Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			31.2*	Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
			32**	Joint certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			101	Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended November 30, 2019, formatted in Inline eXtensible Business Reporting Language ("iXBRL"): (i) Condensed Consolidated Balance Sheet, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Stockholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements.
			104	Cover Page, formatted in iXBRL and contained in Exhibit 101.
			*     Filed herewith.
			**   Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

		HELEN OF TROY LIMITED
		(Registrant)
Date:	January 9, 2020	/s/ Julien R. Mininberg
		Julien R. Mininberg
		Chief Executive Officer,   Director and Principal Executive Officer
Date:	January 9, 2020	/s/ Brian L. Grass
		Brian L. Grass
		Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Julien R. Mininberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended November 30, 2019 of Helen of Troy Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: January 9, 2020

/s/ Julien R. Mininberg

Julien R. Mininberg

Chief Executive Officer,

Director and Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brian L. Grass, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended November 30, 2019 of Helen of Troy Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: January 9, 2020

/s/ Brian L. Grass

Brian L. Grass

Chief Financial Officer, Principal Financial

Officer and Principal Accounting Officer

EX-32

EXHIBIT 32

CERTIFICATION

In connection with the quarterly report of Helen of Troy Limited (the “Company”) on Form 10-Q for the fiscal quarter ended November 30, 2019, as filed with the Securities and Exchange Commission (the “Report”), and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned, the Chief Executive Officer and Chief Financial Officer of the Company, hereby certifies that to the best of their knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: January 9, 2020

/s/ Julien R. Mininberg

Julien R. Mininberg

Chief Executive Officer,

Director and Principal Executive Officer

/s/ Brian L. Grass

Brian L. Grass

Chief Financial Officer, Principal Financial Officer

and Principal Accounting Officer

This certification is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. This certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, except to the extent that the Company specifically incorporates it by reference.

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Financial Instruments and Risk Management (Tables)

9 Months Ended

Nov. 30, 2019

Financial Instruments, Owned, at Fair Value [Abstract]

Schedule of fair values of derivative instruments

The following table summarizes the fair values of our derivative instruments as of the end of the periods shown:

(in thousands)	November 30, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2021	€	14,000	$	134	$	13	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	2/2021	€	22,375	431		119		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	01/2021	$	15,500	82		5		—		—
Zero-cost collar - Pound	Cash flow	02/2021	£	9,500	—		—		185		89
Foreign currency contracts - sell Pound	Cash flow	02/2020	£	15,500	148		—		—		8
Foreign currency contracts - sell Mexican Pesos	Cash flow	02/2020	$	20,000	—		—		15		—
Interest rate swaps	Cash flow	1/2024	$	225,000	—		—		2,058		5,010
Subtotal					795		137		2,258		5,107
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	421		—		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		75		—
Subtotal					421		—		75		—
Total fair value					$	1,216	$	137	$	2,333	$	5,107

(in thousands)	February 28, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2020	€	9,500	$	11	$	—	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	01/2020	€	29,000	1,047		—		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	02/2020	$	16,000	168		—		—		—
Zero-cost collar - Pound	Cash flow	05/2020	£	4,500	—		—		200		—
Foreign currency contracts - sell Pound	Cash flow	05/2020	£	19,500	248		—		—		13
Foreign currency contracts - sell Mexican Pesos	Cash flow	09/2019	$	30,000	—		—		58		—
Interest rate swaps	Cash flow	01/2024	$	225,000	512		—		—		339
Subtotal					1,986		—		258		352
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	—		218		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		—		292
Subtotal					—		218		—		292
Total fair value					$	1,986	$	218	$	258	$	644

(1)

These are foreign currency contracts for which we have not elected hedge accounting.  We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements.

Schedule of pre-tax effect of derivative instruments

The following table summarizes the pre-tax effect of derivative instruments for the periods shown:

	Three Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018			Location	2019			2018			Location	2019			2018
Currency contracts - cash flow hedges	$	(2,739	)	$	(563	)	SG&A	$	(630	)	$	(1,178	)		$	—		$	—
Interest rate swaps - cash flow hedges	2,084			(4		)	Interest expense	—			—			Interest expense	(162		)	136
Cross-currency debt swaps - principal	—			—				—			—			SG&A	(389		)	228
Cross-currency debt swaps - interest	—			—				—			—			Interest Expense	73			73
Total	$	(655	)	$	(567	)		$	(630	)	$	(1,178	)		$	(478	)	$	437

	Nine Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018		Location	2019			2018			Location	2019		2018
Currency contracts - cash flow hedges	$	(3,407	)	$	3,962	SG&A	$	(2,840	)	$	(1,101	)		$	—	$	—
Interest rate swaps - cash flow hedges	(7,242		)	72		Interest expense	—			—			Interest expense	69		347
Cross-currency debt swaps - principal	—			—			—			—			SG&A	419		894
Cross-currency debt swaps - interest	—			—			—			—			Interest expense	147		147
Total	$	(10,649	)	$	4,034		$	(2,840	)	$	(1,101	)		$	635	$	1,388

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Repurchase of Helen of Troy Common Stock (Tables)

9 Months Ended

Nov. 30, 2019

Equity [Abstract]

Summary of share repurchase activity

The following table summarizes our share repurchase activity for the periods shown:

	Three Months Ended November 30,				Nine Months Ended November 30,
(in thousands, except share and per share data)	2019		2018		2019		2018
Common stock repurchased on the open market:
Number of shares	—		813,696		—		1,220,721
Aggregate value of shares	$	—	$	100,000	$	—	$	137,067
Average price per share	$	—	$	122.90	$	—	$	112.28
Common stock received in connection with share-based compensation:
Number of shares	6,509		1,398		77,067		58,470
Aggregate value of shares	$	1,002	$	175	$	10,133	$	5,348
Average price per share	$	153.88	$	125.03	$	131.48	$	91.47

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Long-Term Debt

9 Months Ended

Nov. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Note 12 - Long-Term Debt

We have a credit agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and other lenders that provided for an unsecured total revolving commitment of $1.0 billion as of November 30, 2019. The commitment under the Credit Agreement terminates and the Credit Agreement matures on December 7, 2021. Borrowings accrue interest under one of two alternative methods (based upon a base rate of LIBOR) as described in the Credit Agreement. With each borrowing against our credit line, we can elect the interest rate method based on our funding needs at the time.  We also incur loan commitment fees and letter of credit fees under the Credit Agreement.  Outstanding letters of credit reduce the borrowing availability under the Credit Agreement on a dollar-for-dollar basis.  As of November 30, 2019, the outstanding revolving loan principal balance was $225.8 million (excluding prepaid financing fees) and the face amount of outstanding letters of credit was $9.0 million. For the three and nine month periods ended November 30, 2019, borrowings under the Credit Agreement incurred interest charges at rates ranging from 2.7% to 5.3% and 2.7% to 5.5%, respectively. For the three and nine month periods ended November 30, 2018, borrowings under the Credit Agreement incurred interest charges at rates ranging from 3.1% to 5.3% and 2.8% to 5.3%, respectively. As of November 30, 2019, the amount available for borrowings under the Credit Agreement was $765.2 million. Covenants in our debt agreements limit the amount of total indebtedness we can incur.  As of November 30, 2019, these covenants effectively limited our ability to incur more than $730.5 million of additional debt from all sources, including our Credit Agreement, or $765.2 million in the event a qualified acquisition is consummated. 

The following table summarizes our long-term debt as of the end of the periods shown:

(in thousands)	November 30, 2019			February 28, 2019
Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1)	$	20,447		$	22,335
Credit Agreement (2)	223,800			298,449
Total long-term debt	244,247			320,784
Less current maturities of long-term debt	(1,884		)	(1,884		)
Long-term debt, excluding current maturities	$	242,363		$	318,900

(1) The MBFC Loan is unsecured and bears floating interest based on applicable LIBOR plus a margin of up to 2.0%, or a Base Rate plus a margin of up to 1.0%, as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime.  The loan can be prepaid without penalty.  The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023.  Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.

(2) The Credit Agreement matures on December 7, 2021. The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement.  Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps.

At November 30, 2019 and February 28, 2019, our long-term debt has floating interest rates, and its book value approximates its fair value. 

All of our debt is unconditionally guaranteed, on a joint and several basis, by the Company and certain of its subsidiaries.  Our debt agreements require the maintenance of certain financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio (as each of these terms is defined in the agreements).  Our debt agreements also contain other customary covenants.  We were in compliance with the terms of these agreements as of November 30, 2019.

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Leases

9 Months Ended

Nov. 30, 2019

Leases [Abstract]

Leases

Note 4 - Leases

Adoption of the new lease standard resulted in the recording of lease assets and lease liabilities of approximately $37.1 million and $47.2 million, respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. The new standard did not materially impact our consolidated statements of income or cash flows.

The Company primarily has leases for office space, which are classified as operating leases. Operating leases are included in operating lease assets, accrued expenses and other current liabilities, and lease liabilities, non-current in our consolidated balance sheets. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use an estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

We include options to extend or terminate the lease in the lease term for accounting considerations, when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of less than one to 13 years.  Lease expense for lease payments is recognized on a straight-line basis over the lease term in a manner similar to previous accounting guidance. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the condensed consolidated statements of income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under the new guidance, operating lease expense recognized in the condensed consolidated statements of income during the three and nine month periods ended November 30, 2019 was $1.5 million and $4.8 million, respectively.  Short-term lease expense is excluded from this amount and is not material.  The non-cash component of lease expense is included as an adjustment to reconcile income from continuing operations to net cash provided by operating activities in the condensed consolidated statements of cash flows.

A summary of supplemental lease information is as follows:

	November 30, 2019
Weighted average remaining lease term (years)	10.9
Weighted average discount rate	6.11		%
Year-to-date cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,310

A summary of our estimated lease payments, imputed interest and liabilities are as follows:

(in thousands)
Fiscal 2020 (balance for remainder of fiscal year)	$	1,272
Fiscal 2021	6,082
Fiscal 2022	5,959
Fiscal 2023	5,601
Fiscal 2024	5,102
Thereafter	40,132
Total future lease payments	64,148
Less: imputed interest	(19,057		)
Present value of lease liability	$	45,091

	November 30, 2019
Lease liabilities, current (1)	$	3,331
Lease liabilities, non-current	41,760
Total lease liability	$	45,091

(1) Included as part of "Accrued expenses and other current liabilities" on the condensed consolidated balance sheet.

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Share-Based Compensation Plans

9 Months Ended

Nov. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation Plans

Note 8 - Share-Based Compensation Plans

We have equity awards outstanding under several share-based compensation plans. During the three and nine months ended November 30, 2019, we had the following share-based compensation activity:

• We issued 904 and 3,208 shares to non-employee Board members with a total grant date fair value of $0.1 and $0.3 million, respectively, and weighted average share prices of $155.13 and $131.33, respectively.

• We granted time-vested restricted stock units ("RSUs") that may be settled for 390 and 3,669 shares of common stock, respectively. The RSU grants have a weighted average grant price of $153.75 and $116.00 per share, respectively, for a total award value at date of grant of $0.1 and $0.4 million, respectively.

• We granted time-vested restricted stock awards ("RSAs") that may be settled for 506 and 46,278 shares of common stock, respectively. The RSA grants have a weighted average grant price of $147.61 and $114.35 per share, respectively, for a total award fair value at date of grant of $0.1 million and $5.3 million, respectively.

• There were no grants of performance-based stock units ("PSUs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSUs that may be settled for 6,088 shares of common stock at target. The PSU grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $0.7 million.

• There were no grants of performance-based restricted stock awards ("PSAs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSAs that are targeted to be settled for 122,402 shares of common stock. The PSA grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $13.6 million.

• RSUs for 20,449 and 86,778 shares vested and settled, respectively, with a total fair value at settlement of $3.1 and $10.7 million and a weighted average share price of $153.63 and $123.79, respectively.  

• There were no PSUs shares that vested and settled during the three months ended November 30, 2019. For the nine months ended November 30, 2019, there were 108,572 shares vested and settled with a total fair value at settlement of $14.7 million, and a weighted average share price of $135.85.

• RSAs for 44 shares vested and settled with an immaterial fair value amount and a weighted average share price of $150.86 during the three months ended November 30, 2019. RSAs for 972 shares vested and settled with a fair value amount of $0.1 million and a weighted average share price of $150.86 during the nine month period ended November 30, 2019.

• Employees exercised stock options to purchase 6,892 and 68,657 shares of common stock, respectively.

• There were 15,013 and 29,803 purchases of common stock under the employee stock purchase plan at an average price of $95.03 and $95.16, respectively.

We recorded the following share-based compensation expense in SG&A for the periods shown below: 

	Three Months Ended November 30,						Nine Months Ended November 30,
(in thousands, except per share data)	2019			2018			2019			2018
Stock options	$	21		$	128		$	172		$	655
Directors stock compensation	140			140			421			386
Performance based and other stock awards	4,138			5,419			17,366			15,337
Employee stock purchase plan	459			329			784			651
Share-based compensation expense	4,758			6,016			18,743			17,029
Less income tax benefits	(343		)	(398		)	(1,434		)	(1,009		)
Share-based compensation expense, net of income tax benefits	$	4,415		$	5,618		$	17,309		$	16,020
Impact of share-based compensation on earnings per share from continuing operations:
Basic	$	0.18		$	0.22		$	0.69		$	0.61
Diluted	$	0.17		$	0.21		$	0.68		$	0.60

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Subsequent Events (Details) $ in Millions	1 Months Ended
	Jan. 31, 2020 USD ($)
Scenario, Forecast | Drybar Products LLC | Subsequent Event
Subsequent Event [Line Items]
Total purchase consideration	$ 255.0

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Basis of Presentation and Related Information

9 Months Ended

Nov. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Related Information

Note 1 - Basis of Presentation and Related Information

The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly our consolidated financial position as of November 30, 2019 and February 28, 2019, and the results of our consolidated operations for the interim periods presented.  We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K for the fiscal year ended February 28, 2019, and our other reports on file with the Securities and Exchange Commission (“SEC”).

When used in these notes, unless otherwise indicated or the context suggests otherwise, references to “the Company”, “our Company”, “Helen of Troy”, “we”, “us”, or “our” refer to Helen of Troy Limited and its subsidiaries. We refer to our common shares, par value $0.10 per share, as “common stock.” References to the "FASB” refer to the Financial Accounting Standards Board. References to “GAAP” refer to United States (“U.S.”) generally accepted accounting principles.  References to “ASU” refer to the codification of GAAP in the Accounting Standards Updates issued by the FASB.  References to "ASC" refer to the codification of GAAP in the Accounting Standards Codification issued by the FASB.

We incorporated as Helen of Troy Corporation in Texas in 1968 and were reorganized as Helen of Troy Limited in Bermuda in 1994.  We are a global designer, developer, importer, marketer, and distributor of an expanding portfolio of brand-name consumer products.  We have three segments: Housewares, Health & Home, and Beauty.  Our Housewares segment provides a broad range of innovative consumer products for the home.  Product offerings include food preparation tools and storage containers; cleaning, bath and garden tools and accessories; infant and toddler care products; and insulated beverage, food containers and coolers.  The Health & Home segment focuses on health care devices such as thermometers, humidifiers, blood pressure monitors, and heating pads; water filtration systems; and small home appliances such as portable heaters, fans, air purifiers, and insect control devices.  Our Beauty segment products include electric hair care, beauty care and wellness appliances; grooming tools and accessories; and liquid-, solid- and powder-based personal care and grooming products.

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries to Direct Digital, LLC.  The results of the Nutritional Supplements operations have been reported as discontinued operations for all periods presented in the consolidated financial statements.  For more information, see Note 5 to these condensed consolidated financial statements.  All other notes present results from continuing operations.

Our business is seasonal due to different calendar events, holidays and seasonal weather patterns. Historically, our highest sales volume and operating income occur in our third fiscal quarter ending November 30^th.  We purchase our products from unaffiliated manufacturers, most of which are located in China, Mexico and the United States.

Our condensed consolidated financial statements are prepared in U.S. Dollars.  All intercompany accounts and transactions are eliminated in consolidation.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation.

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Consolidated Condensed Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Sales revenue, net	$ 474,737	$ 431,081	$ 1,265,067	$ 1,179,308
Cost of goods sold	264,764	249,236	723,216	695,732
Gross profit	209,973	181,845	541,851	483,576
Selling, general and administrative expense (SG&A)	130,692	120,524	359,794	325,684
Restructuring charges	12	25	1,061	2,609
Operating income	79,269	61,296	180,996	155,283
Non-operating income, net	92	15	313	175
Interest expense	(2,767)	(2,971)	(9,291)	(8,413)
Income before income tax	76,594	58,340	172,018	147,045
Income tax expense	7,895	4,020	16,530	10,535
Income from continuing operations	68,699	54,320	155,488	136,510
Loss from discontinued operations, net of tax	0	(4,850)	0	(5,231)
Net income	$ 68,699	$ 49,470	$ 155,488	$ 131,279
Earnings (loss) per share - basic:
Continuing operations (in dollars per share)	$ 2.73	$ 2.08	$ 6.19	$ 5.19
Discontinued operations (in dollars per share)	0	(0.19)	0	(0.20)
Total earnings per share - basic (in dollars per share)	2.73	1.90	6.19	4.99
Earnings (loss) per share - diluted:
Continuing operations (in dollars per share)	2.71	2.06	6.15	5.15
Discontinued operations (in dollars per share)	0	(0.18)	0	(0.20)
Total earnings per share - diluted (in dollars per share)	$ 2.71	$ 1.88	$ 6.15	$ 4.95
Weighted average shares of common stock used in computing earnings per share:
Basic (in shares)	25,161	26,057	25,099	26,321
Diluted (in shares)	25,396	26,366	25,295	26,520

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Share-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Nov. 30, 2019	Nov. 30, 2019
Share-based compensation plans
Exercise of stock options (in shares)	6,892	68,657
Employee purchases of common stock (in shares)	15,013	29,803
Average purchase price (in dollars per share)	$ 95.03	$ 95.16
Directors stock compensation
Share-based compensation plans
Number of awards granted (in shares)	904	3,208
Grant date fair value	$ 0.1	$ 0.3
Grant date fair value of shares granted in period (in dollars per share)	$ 155.13	$ 131.33
Restricted Stock Units (RSU)
Share-based compensation plans
Grant date fair value	$ 3.1	$ 10.7
Shares vested and settled (in shares)	20,449	86,778
Grant date fair value of shares settled in period (in dollars per share)	$ 153.63	$ 123.79
Shares vested (in shares)	20,449	86,778
Restricted Stock Awards (RSA)
Share-based compensation plans
Shares vested (in shares)	44,000	972,000
Performance Restricted Stock Units (PSU)
Share-based compensation plans
Number of awards granted (in shares)	0	6,088
Grant date fair value		$ 0.7
Grant date fair value of shares granted in period (in dollars per share)		$ 110.85
Shares vested (in shares)	0	108,572
Performance Based Restricted Stock Awards (PSA)
Share-based compensation plans
Number of awards granted (in shares)	0	122,402
Grant date fair value		$ 13.6
Grant date fair value of shares settled in period (in dollars per share)		$ 110.85
Time-Vested | Restricted Stock Units (RSU)
Share-based compensation plans
Number of awards granted (in shares)	390	3,669
Grant date fair value	$ 0.1	$ 0.4
Grant date fair value of shares granted in period (in dollars per share)	$ 153.75	$ 116.00
Time-Vested | Restricted Stock Awards (RSA)
Share-based compensation plans
Number of awards granted (in shares)	506	46,278
Grant date fair value	$ 0.1	$ 5.3
Grant date fair value of shares granted in period (in dollars per share)	$ 147.61	$ 114.35
Vested and settled performance shares | Restricted Stock Awards (RSA)
Share-based compensation plans
Grant date fair value		$ 0.1
Grant date fair value of shares granted in period (in dollars per share)	$ 150.86
Shares vested and settled (in shares)	44	972
Vested and settled performance shares | Performance Restricted Stock Units (PSU)
Share-based compensation plans
Grant date fair value		$ 14.7
Grant date fair value of shares granted in period (in dollars per share)		$ 135.85
Shares vested and settled (in shares)	0	108,572

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Commitments and Contingencies (Details) $ in Millions	1 Months Ended
	May 31, 2018 USD ($)
Thermometer Patent Litigation | Settled Litigation
Commitments and contingencies
Settlement payment	$ 15.0

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Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Weighted average diluted securities
Weighted average shares outstanding, basic (in shares)	25,161	26,057	25,099	26,321
Incremental shares from share-based payment arrangements (in shares)	235	309	196	199
Weighted average shares outstanding, diluted (in shares)	25,396	26,366	25,295	26,520
Stock options
Weighted average diluted securities
Antidilutive securities (in shares)	134	137	217	281

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Fair Value (Details) - Recurring - Fair Values - Significant other observable market inputs (Level 2) - USD ($) $ in Thousands	Nov. 30, 2019	Feb. 28, 2019
Assets:
Total assets	$ 2,006	$ 3,119
Liabilities:
Total liabilities	251,687	321,686
Interest rate swap
Assets:
Derivative assets	0	512
Liabilities:
Derivative assets	7,068	339
Foreign currency contracts
Assets:
Derivative assets	1,353	1,692
Liabilities:
Derivative assets	372	563
Floating rate debt
Liabilities:
Floating rate debt	244,247	320,784
Money market accounts
Assets:
Money market accounts	$ 653	$ 915

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Financial Instruments and Risk Management - Derivative tax effect (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in OCI (effective portion)	$ (655)		$ (10,649)
Gain (Loss) Recognized in OCI (effective portion)		$ (567)		$ 4,034
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	(630)		(2,840)
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income		(1,178)		(1,101)
Gain (Loss) Recognized As Income	(478)		635
Gain (Loss) Recognized As Income		437		1,388
Foreign currency contracts | SG&A
Pre-tax effect of derivative instruments
Gain (Loss) Recognized As Income	0		0
Gain (Loss) Recognized As Income		0		0
Foreign currency contracts | Cash flow hedges
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in OCI (effective portion)	(2,739)		(3,407)
Gain (Loss) Recognized in OCI (effective portion)		(563)		3,962
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income			$ 1,500
Net loss currently reported in accumulated other comprehensive income, to be reclassified into income, period of time to transfer			12 months
Foreign currency contracts | Cash flow hedges | SG&A
Pre-tax effect of derivative instruments
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	(630)		$ (2,840)
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income		(1,178)		(1,101)
Interest rate swaps | Interest expense
Pre-tax effect of derivative instruments
Gain (Loss) Recognized As Income	(162)		69
Gain (Loss) Recognized As Income		136		347
Interest rate swaps | Cash flow hedges
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in OCI (effective portion)	2,084		(7,242)
Gain (Loss) Recognized in OCI (effective portion)		(4)		72
Interest rate swaps | Cash flow hedges | Interest expense
Pre-tax effect of derivative instruments
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	0		0
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income		0		0
Cross currency debt swaps
Pre-tax effect of derivative instruments
Gain (Loss) Recognized in OCI (effective portion)	0		0
Gain (Loss) Recognized in OCI (effective portion)		0		0
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	0		0
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income		0		0
Cross currency debt swaps | SG&A
Pre-tax effect of derivative instruments
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income	0		0
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income		0		0
Gain (Loss) Recognized As Income	(389)		419
Gain (Loss) Recognized As Income		228		894
Cross currency debt swaps | Interest expense
Pre-tax effect of derivative instruments
Gain (Loss) Recognized As Income	$ 73		$ 147
Gain (Loss) Recognized As Income		$ 73		$ 147

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Discontinued Operation (Details) - Discontinued Operations - Healthy Directions LLC - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Feb. 28, 2019	Aug. 31, 2019	Dec. 31, 2017
Discontinued Operations
Purchase price from sale					$ 46.0
Supplemental payment					$ 25.0
Final adjusted supplemental payment			$ 10.8	$ 10.8
Reduction of supplemental payment			5.8
Reduction of supplemental payment after tax			$ 4.4
Resolution of certain contingencies		$ 1.5
Resolution of certain contingencies after tax	$ 0.5	$ 1.3

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Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 30, 2019	Nov. 30, 2019	Mar. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 33,528	$ 33,528
Present value of lease liability	45,091	45,091	$ 47,223
Operating lease expense	$ 1,500	$ 4,800
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease assets			37,100
Present value of lease liability			$ 47,200
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms		13 years

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Segment Information

9 Months Ended

Nov. 30, 2019

Segment Reporting [Abstract]

Segment Information

Note 16 - Segment Information

The following tables present segment information included in continuing operations for the periods shown:

	Three Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	183,211	$	185,810	$	105,716	$	474,737
Restructuring charges	—		—		12		12
Operating income	42,272		24,372		12,625		79,269
Capital and intangible asset expenditures	2,272		1,917		197		4,386
Depreciation and amortization	2,263		3,740		2,757		8,760

	Three Months Ended November 30, 2018
(in thousands)	Housewares			Health & Home		Beauty		Total
Sales revenue, net	$	142,937		$	187,863	$	100,281	$	431,081
Restructuring charges	(20		)	—		45		25
Operating income	29,839			19,213		12,244		61,296
Capital and intangible asset expenditures	5,534			3,128		443		9,105
Depreciation and amortization	1,408			4,326		1,461		7,195

	Nine Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	496,017	$	499,543	$	269,507	$	1,265,067
Restructuring charges	90		—		971		1,061
Operating income	109,170		51,836		19,990		180,996
Capital and intangible asset expenditures	8,354		4,115		778		13,247
Depreciation and amortization	5,292		12,322		7,262		24,876

	Nine Months Ended November 30, 2018
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	397,738	$	527,077	$	254,493	$	1,179,308
Restructuring charges	740		358		1,511		2,609
Operating income	80,351		52,501		22,431		155,283
Capital and intangible asset expenditures	12,830		7,783		1,553		22,166
Depreciation and amortization	4,414		12,703		5,373		22,490

We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, restructuring charges, and any asset impairment charges associated with the segment. The SG&A used to compute each segment’s operating income is directly associated with the segment, plus shared service and corporate overhead expenses that are allocable to the segment.  We do not allocate non-operating income and expense, including interest or income taxes, to operating segments.

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Basis of Presentation and Related Information (Policies)

9 Months Ended

Nov. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Presentation of financial statements

Our condensed consolidated financial statements are prepared in U.S. Dollars.  All intercompany accounts and transactions are eliminated in consolidation.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Actual results may differ materially from those estimates.

Reclassification

We have reclassified, combined or separately disclosed certain amounts in the prior years’ condensed consolidated financial statements and accompanying footnotes to conform with the current period’s presentation.

New accounting pronouncements

Adopted in Fiscal 2020

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million, respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4).

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements.

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Long-Term Debt - Summary of long-term debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 30, 2019	Feb. 28, 2019
Debt Instrument [Line Items]
Total long-term debt	$ 244,247	$ 320,784
Less current maturities of long-term debt	(1,884)	(1,884)
Long-term debt, excluding current maturities	242,363	318,900
MBFC loan
Debt Instrument [Line Items]
Total long-term debt	20,447	22,335
Remaining principal balance due on March 1, 2020	1,900
Remaining principal balance due on March 1, 2021	1,900
Remaining principal balance due on March 1, 2022	1,900
Remaining principal balance due on March 1, 2023	$ 14,800
MBFC loan | LIBOR | Maximum
Debt Instrument [Line Items]
Interest rate	2.00%
MBFC loan | Base rate
Debt Instrument [Line Items]
Interest rate	1.00%
Credit agreement
Debt Instrument [Line Items]
Total long-term debt	$ 223,800	$ 298,449
Amount of interest rate swap hedge	$ 225,000

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Financial Instruments and Risk Management - Derivative FV (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Nov. 30, 2019 USD ($)	Nov. 30, 2019 CAD ($)	Nov. 30, 2019 MXN ($)	Nov. 30, 2019 EUR (€)	Nov. 30, 2019 GBP (£)	Feb. 28, 2019 USD ($)	Feb. 28, 2019 CAD ($)	Feb. 28, 2019 MXN ($)	Feb. 28, 2019 EUR (€)	Feb. 28, 2019 GBP (£)
Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	$ 1,216					$ 1,986
Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	137					218
Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	2,333					258
Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	5,107					644
Derivatives designated as hedging instruments | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	795					1,986
Derivatives designated as hedging instruments | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	137					0
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	2,258					258
Derivatives designated as hedging instruments | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	5,107					352
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | €				€ 22,375					€ 29,000
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	431					1,047
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	119					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Euros | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars
Fair values of derivative instruments in the consolidated balance sheet
Notional amount		$ 15,500					$ 16,000
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	82					168
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	5					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Canadian Dollars | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | £					£ 15,500					£ 19,500
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	148					248
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Pounds | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	8					13
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos
Fair values of derivative instruments in the consolidated balance sheet
Notional amount			$ 20,000					$ 30,000
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	15					58
Derivatives designated as hedging instruments | Foreign currency contracts | Sell | Mexican Pesos | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | €				14,000					9,500
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	134					11
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	13					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Euros | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | £					9,500					4,500
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	185					200
Derivatives designated as hedging instruments | Zero-cost collar contract | Sell | Pounds | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	89					0
Derivatives designated as hedging instruments | Interest rate swaps
Fair values of derivative instruments in the consolidated balance sheet
Notional amount	225,000					225,000
Derivatives designated as hedging instruments | Interest rate swaps | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					512
Derivatives designated as hedging instruments | Interest rate swaps | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives designated as hedging instruments | Interest rate swaps | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	2,058					0
Derivatives designated as hedging instruments | Interest rate swaps | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	5,010					339
Derivatives not designated under hedge accounting | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	421					0
Derivatives not designated under hedge accounting | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					218
Derivatives not designated under hedge accounting | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	75					0
Derivatives not designated under hedge accounting | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					292
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | €				€ 5,280					€ 5,280
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	421					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					218
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Euros | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	0					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds
Fair values of derivative instruments in the consolidated balance sheet
Notional amount | £					£ 6,395					£ 6,395
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Prepaid expenses and other current assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Other assets
Fair values of derivative instruments in the consolidated balance sheet
Derivative assets	0					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Accrued expenses and other current liabilities
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	75					0
Derivatives not designated under hedge accounting | Cross currency debt swaps | Pounds | Other liabilities, non-current
Fair values of derivative instruments in the consolidated balance sheet
Derivative liabilities	$ 0					$ 292

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit) as a percent of income before income taxes	10.30%	6.90%	9.60%	7.20%
Tax benefit recorded related to the recognition of excess tax benefits from share-based compensation			$ 1.0	$ 0.7
Expense for remeasurement of deferred taxes			1.7
Unrecognized tax benefit from favorable resolution of uncertain tax position			$ 2.8	$ 0.8

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Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 30, 2019	Feb. 28, 2019
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 264,943	$ 254,082
Less accumulated depreciation	(133,764)	(123,744)
Property and equipment, net	131,179	130,338
Land
PROPERTY AND EQUIPMENT
Property and equipment, gross	12,644	12,644
Building and improvements
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 113,608	113,820
Building and improvements | Minimum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	3 years
Building and improvements | Maximum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	40 years
Computer, software, furniture and other equipment
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 86,888	84,711
Computer, software, furniture and other equipment | Minimum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	3 years
Computer, software, furniture and other equipment | Maximum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	15 years
Tools, molds and other production equipment
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 37,756	36,378
Tools, molds and other production equipment | Minimum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	3 years
Tools, molds and other production equipment | Maximum
PROPERTY AND EQUIPMENT
Estimated Useful Lives (Years)	7 years
Construction in progress
PROPERTY AND EQUIPMENT
Property and equipment, gross	$ 14,047	$ 6,529

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Leases - Additional Lease Information (Details) $ in Thousands	9 Months Ended
	Nov. 30, 2019 USD ($)
Leases [Abstract]
Weighted average remaining lease term (years)	10 years 10 months 24 days
Weighted average discount rate	6.11%
Year-to-date cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 3,310

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Accumulated Other Comprehensive income (Loss)

9 Months Ended

Nov. 30, 2019

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 15 - Accumulated Other Comprehensive Income (Loss)

The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown:

(in thousands)	Interest Rate Swaps			Foreign Currency Contracts			Total
Balance at February 28, 2018	$	1,705		$	(1,074	)	$	631
Other comprehensive income (loss) before reclassification	72			3,962			4,034
Amounts reclassified out of accumulated other comprehensive income	—			1,101			1,101
Tax effects	179			(738		)	(559		)
Other comprehensive income (loss)	251			4,325			4,576
Balance at November 30, 2018	$	1,956		$	3,251		$	5,207
Balance at February 28, 2019	$	132		$	1,059		$	1,191
Other comprehensive income (loss) before reclassification	(7,242		)	(3,407		)	(10,649		)
Amounts reclassified out of accumulated other comprehensive income	—			2,840			2,840
Tax effects	1,680			53			1,733
Other comprehensive income (loss)	(5,562		)	(514		)	(6,076		)
Balance at November 30, 2019	$	(5,430	)	$	545		$	(4,885	)

See Notes 12, 13 and 14 to these condensed consolidated financial statements for additional information regarding our hedging activities.

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Subsequent Events

9 Months Ended

Nov. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 19 - Subsequent Events

On December 19, 2019, we entered into a definitive agreement to acquire Drybar Products LLC, which includes the Drybar trademark and other intellectual property assets associated with Drybar’s products, as well as certain related production assets and working capital. As part of the transaction, we will grant a worldwide license to Drybar Holdings LLC, the owner and long-time operator of Drybar blowout salons, to use the Drybar trademark in their continued operation of Drybar salons. The salons will exclusively use, promote, and sell Helen of Troy’s Drybar products globally. The total purchase consideration is $255.0 million in cash, subject to certain customary closing adjustments. We expect to finance the acquisition with cash on hand and borrowings from our existing revolving credit facility. The acquisition is expected to close by January 31, 2020, subject to customary closing conditions, including regulatory approvals.

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Nov. 30, 2019

Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]

Summary of changes in accumulated other comprehensive income (loss)

The following table summarizes changes in accumulated other comprehensive income (loss) by component and related tax effects for periods shown:

(in thousands)	Interest Rate Swaps			Foreign Currency Contracts			Total
Balance at February 28, 2018	$	1,705		$	(1,074	)	$	631
Other comprehensive income (loss) before reclassification	72			3,962			4,034
Amounts reclassified out of accumulated other comprehensive income	—			1,101			1,101
Tax effects	179			(738		)	(559		)
Other comprehensive income (loss)	251			4,325			4,576
Balance at November 30, 2018	$	1,956		$	3,251		$	5,207
Balance at February 28, 2019	$	132		$	1,059		$	1,191
Other comprehensive income (loss) before reclassification	(7,242		)	(3,407		)	(10,649		)
Amounts reclassified out of accumulated other comprehensive income	—			2,840			2,840
Tax effects	1,680			53			1,733
Other comprehensive income (loss)	(5,562		)	(514		)	(6,076		)
Balance at November 30, 2019	$	(5,430	)	$	545		$	(4,885	)

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Commitment and Contingencies (Tables)

9 Months Ended

Nov. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Lease commitments

The lease commitments as of February 28, 2019 were as follows:

	Fiscal Years Ended the Last Day of February:
			2020		2021		2022		2023		2024		After
(in thousands)	Total		1 year		2 years		3 years		4 years		5 years		5 years
Operating leases	$	69,482	$	5,171	$	6,678	$	6,411	$	5,743	$	5,078	$	40,401

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Revenue Recognition

9 Months Ended

Nov. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3 - Revenue Recognition

We adopted the provisions of ASU 2014-9 in the first quarter of fiscal 2019, and we elected to adopt the standard using the retrospective method. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. 

Our revenue is primarily generated from the sale of non-customized consumer products to customers. Revenue is recognized when control of, and title to, the product sold transfers to the customer. Therefore, the timing and amount of revenue recognized was not materially impacted by the new guidance. We have thus concluded that the adoption of the guidance did not have a material impact on our consolidated financial statements. The provisions of the new guidance did however impact the classification of certain consideration paid to our customers. We therefore reclassified an immaterial

amount of such payments from SG&A to a reduction of net sales revenue for all periods presented. Also, in accordance with the guidance, we reclassified an immaterial amount of estimated sales returns from a reduction of receivables to accrued expenses and other current liabilities for all periods presented.  We elected to adopt the guidance using the full retrospective method. 

We measure revenue as the amount of consideration for which we expect to be entitled, in exchange for transferring goods.  Certain customers may receive cash incentives such as customer discounts (including volume or trade discounts), advertising discounts and other customer-related programs which are accounted for as variable consideration.  In some cases, we apply judgment, such as contractual rates and historical payment trends, when estimating variable consideration.  In accordance with the guidance, most variable consideration is classified as a reduction to net sales.

Sales taxes and other similar taxes are excluded from revenue.  We elected to account for shipping and handling activities as a fulfillment cost as permitted by the guidance.  We do not have unsatisfied performance obligations since our performance obligations are satisfied at a single point in time.

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Goodwill and Intangible Assets

9 Months Ended

Nov. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7 - Goodwill and Intangible Assets

We perform annual impairment tests each fiscal year during the fourth quarter and also perform interim impairment tests, if and when necessary. We did not record any impairment charges for the nine month periods ended November 30, 2019 or 2018, respectively.

The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented:

	November 30, 2019										February 28, 2019
(in thousands)	Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value		Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value
Housewares:
Goodwill	$	282,056	$	—		$	—		$	282,056	$	282,056	$	—		$	—		$	282,056
Trademarks - indefinite	134,200		—			—			134,200		134,200		—			—			134,200
Other intangibles - finite	41,846		—			(20,881		)	20,965		41,417		—			(19,398		)	22,019
Subtotal	458,102		—			(20,881		)	437,221		457,673		—			(19,398		)	438,275
Health & Home:
Goodwill	284,913		—			—			284,913		284,913		—			—			284,913
Trademarks - indefinite	54,000		—			—			54,000		54,000		—			—			54,000
Licenses - finite	17,050		—			(15,665		)	1,385		17,050		—			(15,402		)	1,648
Licenses - indefinite	7,400		—			—			7,400		7,400		—			—			7,400
Other intangibles - finite	118,139		—			(95,776		)	22,363		117,967		—			(87,953		)	30,014
Subtotal	481,502		—			(111,441		)	370,061		481,330		—			(103,355		)	377,975
Beauty:
Goodwill	81,841		(46,490		)	—			35,351		81,841		(46,490		)	—			35,351
Trademarks - indefinite	—		—			—			—		30,407		—			—			30,407
Trademarks - finite	30,557		—			(3,347		)	27,210		150		—			(102		)	48
Licenses - indefinite	10,300		—			—			10,300		10,300		—			—			10,300
Licenses - finite	13,696		—			(12,721		)	975		13,696		—			(12,482		)	1,214
Other intangibles - finite	46,402		—			(46,172		)	230		46,402		—			(46,126		)	276
Subtotal	182,796		(46,490		)	(62,240		)	74,066		182,796		(46,490		)	(58,710		)	77,596
Total	$	1,122,400	$	(46,490	)	$	(194,562	)	$	881,348	$	1,121,799	$	(46,490	)	$	(181,463	)	$	893,846

After discontinuing the formal sale process and revising the strategic initiatives for our Personal Care business during the first quarter of fiscal year 2020, we changed trademarks related to the business with a net book value of $30.4 million from indefinite lived to finite lived assets. The amortization of these trademarks is now included in amortization expense for the nine months ended November 30, 2019, and these assets are expected to be fully amortized by the end of fiscal year 2027.

The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2020 through 2025:

Aggregate Amortization Expense
For the three months ended (in thousands)
November 30, 2019	$	4,790
November 30, 2018	3,300

Aggregate Amortization Expense
For the nine months ended (in thousands)
November 30, 2019	$	13,129
November 30, 2018	10,822

Estimated Amortization Expense (in thousands)
Fiscal 2020	$	17,557
Fiscal 2021	16,437
Fiscal 2022	9,530
Fiscal 2023	9,261
Fiscal 2024	7,386
Fiscal 2025	6,854

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Commitments and Contingencies

9 Months Ended

Nov. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11 - Commitments and Contingencies

Legal Matters – In May 2018, we settled a patent infringement dispute related to two forehead thermometer models sold by our subsidiary, Kaz USA, Inc., in the United States and made a settlement payment of $15.0 million, which was accrued in prior periods along with related legal fees and other costs.      

We are involved in various other legal claims and proceedings in the normal course of operations.  We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

Lease Commitments – The implementation of the new lease guidance (ASC 842) using the effective date method requires the disclosure of our lease commitments from our latest annual report on Form 10-K for the interim periods during the first year of adoption (see Note 4). The lease commitments as of February 28, 2019 were as follows:

	Fiscal Years Ended the Last Day of February:
			2020		2021		2022		2023		2024		After
(in thousands)	Total		1 year		2 years		3 years		4 years		5 years		5 years
Operating leases	$	69,482	$	5,171	$	6,678	$	6,411	$	5,743	$	5,078	$	40,401

The minimum rental payments for operating leases presented above were determined in accordance with the previous lease guidance (ASC 840). Note 4 presents a summary of our estimated lease payments, imputed interest and liabilities as of November 30, 2019, in accordance with the new lease guidance (ASC 842).

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Cover page - shares	9 Months Ended
	Nov. 30, 2019	Jan. 03, 2020
Entity Addresses [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2019
Document Transition Report	false
Entity File Number	001-14669
Entity Registrant Name	HELEN OF TROY LIMITED
Entity Incorporation, State or Country Code	D0
Entity Tax Identification Number	74-2692550
Entity Address, Address Line One	1 Helen of Troy Plaza
Entity Address, City or Town	El Paso
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79912
City Area Code	915
Local Phone Number	225-8000
Title of 12(b) Security	Common Shares, $0.10 par value per share
Trading Symbol	HELE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,169,734
Entity Central Index Key	0000916789
Current Fiscal Year End Date	--02-28
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Other Address
Entity Addresses [Line Items]
Entity Address, Address Line One	Clarendon House, 2 Church Street
Entity Address, City or Town	Hamilton
Entity Address, Country	BM

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Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 68,699	$ 49,470	$ 155,488	$ 131,279
Other comprehensive income (loss), net of tax:
Cash flow hedge activity - interest rate swaps	1,599		(5,562)
Cash flow hedge activity - interest rate swaps		46		251
Cash flow hedge activity - foreign currency contracts	(1,729)	514	(514)	4,325
Total other comprehensive income (loss), net of tax	(130)	560	(6,076)	4,576
Comprehensive income	$ 68,569	$ 50,030	$ 149,412	$ 135,855

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New Accounting Pronouncements

9 Months Ended

Nov. 30, 2019

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

Note 2 - New Accounting Pronouncements

Except for the changes discussed below, there have been no changes in the information provided in our Form 10-K for the fiscal year ended February 28, 2019.  

Adopted in Fiscal 2020

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842).  The new guidance requires the recognition of lease liabilities, representing future minimum lease payments, on a discounted basis, and corresponding right-of-use assets on a balance sheet for most leases, along with requirements for enhanced disclosures to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued guidance which permits application of the new guidance at the beginning of the year of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented. We adopted the standard in the first quarter of fiscal 2020 using the transition method introduced by ASU 2018-11, which does not require revisions to comparative periods. We elected to implement the transition package of practical expedients permitted within the new standard, which included (i) not reassessing whether expired or existing contracts contain leases, (ii) not reassessing lease classification, and (iii) not revaluing initial direct costs for existing leases. Adoption of the new standard resulted in the recording of initial lease assets and lease liabilities of approximately $37.1 million and $47.2 million, respectively, as of March 1, 2019. The difference between the lease assets and lease liabilities primarily relates to deferred rent and unamortized lease incentives recorded in accordance with the previous lease guidance. The new standard did not materially impact our condensed consolidated statements of income or cash flows (see Note 4).

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (Topic 815), which amends and simplifies hedge accounting with the intent of better aligning financial reporting for hedging relationships with an entity's risk management activities. In April 2019, the FASB issued ASU 2019-04, which provides clarifications and minor improvements related to Topic 815. Adoption of this guidance in the first quarter of fiscal 2020 did not have a material impact on our consolidated financial statements.

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Goodwill and Intangible Assets - Schedule of estimated amortization expense of intangible assets (Details) $ in Thousands	Nov. 30, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Fiscal 2020	$ 17,557
Fiscal 2021	16,437
Fiscal 2022	9,530
Fiscal 2023	9,261
Fiscal 2024	7,386
Fiscal 2025	$ 6,854

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Restructuring Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	Feb. 29, 2020
Restructuring Plan
Restructuring charges	$ 12	$ 25	$ 1,061	$ 2,609
Cash restructuring payments for the reporting period	300		1,800
Project Refuel
Restructuring Plan
Restructuring charges			1,100
Incurred pre-tax restructuring costs	6,500		6,500
Cash restructuring payments to date			6,000
Restructuring liability	$ 500		500
Minimum | Project Refuel
Restructuring Plan
Targeted annualized profit improvement			8,000
Maximum | Project Refuel
Restructuring Plan
Targeted annualized profit improvement			$ 10,000
Scenario, Forecast | Project Refuel
Restructuring Plan
Restructuring charges					$ 7,000

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Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Mar. 01, 2019
Leases [Abstract]
Lease liabilities, current	$ 3,331
Lease liabilities, non-current	41,760
Total lease liability	$ 45,091	$ 47,223

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New Accounting Pronouncements - Adopted (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Mar. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets	$ 33,528
Initial recognition of lease liabilities	$ 45,091	$ 47,223
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets		37,100
Initial recognition of lease liabilities		$ 47,200

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Goodwill and Intangible Assets - Schedule of carrying amounts and associated accumulated amortization for all intangible assets by operating segment (Details) - USD ($) $ in Thousands	Nov. 30, 2019	May 31, 2019	Feb. 28, 2019
Changes in Goodwill
Cumulative goodwill impairments	$ (46,490)		$ (46,490)
Goodwill net book value	602,320		602,320
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, accumulated amortization	(194,562)		(181,463)
Goodwill and intangible assets
Gross carrying amount	1,122,400		1,121,799
Net book value	881,348		893,846
Housewares
Changes in Goodwill
Goodwill gross carrying amount	282,056		282,056
Cumulative goodwill impairments	0		0
Goodwill net book value	282,056		282,056
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, accumulated amortization	(20,881)		(19,398)
Goodwill and intangible assets
Gross carrying amount	458,102		457,673
Net book value	437,221		438,275
Housewares | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	41,846		41,417
Intangible assets - finite-lived, accumulated amortization	(20,881)		(19,398)
Intangible assets - finite-lived, net book value	20,965		22,019
Housewares | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, gross carrying amount	134,200		134,200
Health and Home
Changes in Goodwill
Goodwill gross carrying amount	284,913		284,913
Cumulative goodwill impairments	0		0
Goodwill net book value	284,913		284,913
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, accumulated amortization	(111,441)		(103,355)
Goodwill and intangible assets
Gross carrying amount	481,502		481,330
Net book value	370,061		377,975
Health and Home | Licenses
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	17,050		17,050
Intangible assets - finite-lived, accumulated amortization	(15,665)		(15,402)
Intangible assets - finite-lived, net book value	1,385		1,648
Health and Home | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	118,139		117,967
Intangible assets - finite-lived, accumulated amortization	(95,776)		(87,953)
Intangible assets - finite-lived, net book value	22,363		30,014
Health and Home | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, gross carrying amount	54,000		54,000
Health and Home | Licenses
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, gross carrying amount	7,400		7,400
Beauty
Changes in Goodwill
Goodwill gross carrying amount	81,841		81,841
Cumulative goodwill impairments	(46,490)		(46,490)
Goodwill net book value	35,351		35,351
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, accumulated amortization	(62,240)		(58,710)
Goodwill and intangible assets
Gross carrying amount	182,796		182,796
Net book value	74,066		77,596
Beauty | Trademarks
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	30,557		150
Intangible assets - finite-lived, accumulated amortization	(3,347)		(102)
Intangible assets - finite-lived, net book value	27,210	$ 30,400	48
Beauty | Licenses
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	13,696		13,696
Intangible assets - finite-lived, accumulated amortization	(12,721)		(12,482)
Intangible assets - finite-lived, net book value	975		1,214
Beauty | Other intangible assets
Changes in intangible assets - finite-lived
Intangible assets - finite-lived, gross carrying amount	46,402		46,402
Intangible assets - finite-lived, accumulated amortization	(46,172)		(46,126)
Intangible assets - finite-lived, net book value	230		276
Beauty | Trademarks
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, gross carrying amount	0		30,407
Beauty | Licenses
Changes in intangible assets - indefinite-lived
Intangible assets - indefinite-lived, gross carrying amount	$ 10,300		$ 10,300

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Financial Instruments and Risk Management (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
SG&A
Foreign Currency Risk and Currency Exchange Uncertainties
Net foreign exchange gains (losses), including the impact of currency hedges and currency swaps	$ 0.6	$ 0.3	$ 2.2	$ (0.8)
Net sales revenue | Geographic concentration | International operations - transactions denominated in foreign currencies
Foreign Currency Risk and Currency Exchange Uncertainties
Concentration risk percentage	17.00%	13.00%	14.00%	13.00%

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,087,375	$ 1,075,740	$ 996,637	$ 1,014,459
Other comprehensive income (loss) before reclassification			(10,649)	4,034
Amounts reclassified out of accumulated other comprehensive income			2,840	1,101
Tax effects			1,733	(559)
Total other comprehensive income (loss), net of tax	(130)	560	(6,076)	4,576
Ending balance	1,161,684	1,033,258	1,161,684	1,033,258
Interest Rate Swaps
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			132	1,705
Other comprehensive income (loss) before reclassification			(7,242)	72
Amounts reclassified out of accumulated other comprehensive income			0	0
Tax effects			1,680	179
Total other comprehensive income (loss), net of tax			(5,562)	251
Ending balance	(5,430)	1,956	(5,430)	1,956
Foreign Currency Contracts
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			1,059	(1,074)
Other comprehensive income (loss) before reclassification			(3,407)	3,962
Amounts reclassified out of accumulated other comprehensive income			2,840	1,101
Tax effects			53	(738)
Total other comprehensive income (loss), net of tax			(514)	4,325
Ending balance	545	3,251	545	3,251
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4,755)	4,647	1,191	631
Total other comprehensive income (loss), net of tax	(130)	560	(6,076)	4,576
Ending balance	$ (4,885)	$ 5,207	$ (4,885)	$ 5,207

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Leases (Tables)

9 Months Ended

Nov. 30, 2019

Leases [Abstract]

Additional Lease Information

A summary of supplemental lease information is as follows:

	November 30, 2019
Weighted average remaining lease term (years)	10.9
Weighted average discount rate	6.11		%
Year-to-date cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,310

Schedule of Operating Lease Maturities

A summary of our estimated lease payments, imputed interest and liabilities are as follows:

(in thousands)
Fiscal 2020 (balance for remainder of fiscal year)	$	1,272
Fiscal 2021	6,082
Fiscal 2022	5,959
Fiscal 2023	5,601
Fiscal 2024	5,102
Thereafter	40,132
Total future lease payments	64,148
Less: imputed interest	(19,057		)
Present value of lease liability	$	45,091

Schedule of Lease Liabilities

	November 30, 2019
Lease liabilities, current (1)	$	3,331
Lease liabilities, non-current	41,760
Total lease liability	$	45,091

(1) Included as part of "Accrued expenses and other current liabilities" on the condensed consolidated balance sheet.

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Fair Value

9 Months Ended

Nov. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value

Note 13 - Fair Value 

We classify our various assets and liabilities recorded or reported at fair value under a hierarchy prescribed by GAAP that prioritizes inputs to fair value measurement techniques into three broad levels:

Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Assets and liabilities subject to classification are classified upon acquisition.  When circumstances dictate the transfer of an asset or liability to a different level, our policy is to recognize the transfer at the beginning of the reporting period in which the event resulting in the transfer occurred.

The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the end of the periods shown:

	Fair Values at
	November 30, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	653
Interest rate swaps	—
Foreign currency contracts	1,353
Total assets	$	2,006
Liabilities:
Floating rate debt	$	244,247
Interest rate swaps	7,068
Foreign currency contracts	372
Total liabilities	$	251,687

	Fair Values at
	February 28, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	915
Interest rate swaps	512
Foreign currency contracts	1,692
Total assets	$	3,119
Liabilities:
Floating rate debt	$	320,784
Interest rate swaps	339
Foreign currency contracts	563
Total liabilities	$	321,686

(1) Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.

The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items.

We use derivatives for hedging purposes and our derivatives are primarily interest rate swaps, foreign currency contracts and cross-currency debt swaps.  See Notes 12 and 14 to these condensed consolidated financial statements for more information on our hedging activities.

We classify our floating rate debt as a Level 2 item because the estimation of the fair market value requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms.  Such comparable rates are considered significant other observable market inputs.  The book value of the floating rate debt approximates its fair value as of the reporting date.

Our other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items.  These assets are measured at fair value on a non-recurring basis as part of our impairment testing.  Note 7 to these condensed consolidated financial statements contains additional information related to intangible asset impairments.

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Income Taxes

9 Months Ended

Nov. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 - Income Taxes

Due to our organization in Bermuda and the ownership structure of our foreign subsidiaries, many of which are not owned directly or indirectly by a U.S. parent company, an immaterial amount of our foreign income is subject to U.S. taxation on a permanent basis under current law. Additionally, our intellectual property is largely owned by our foreign subsidiaries, resulting in proportionally higher earnings in jurisdictions with lower statutory tax rates, which decreases our overall effective tax rate.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions and other items.

For the three months ended November 30, 2019, income tax expense as a percentage of income before income tax was 10.3% compared to 6.9% for the same period last year. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions and increases in certain statutory tax rates.

For the nine months ended November 30, 2019, income tax expense as a percentage of income before income tax was 9.6%, which included $1.0 million of tax benefits from share-based compensation settlements, $1.7 million of expense from the remeasurement of deferred taxes due to tax rate changes, and a $2.8 million benefit from the resolution of an uncertain tax position. Income tax expense as a percentage of income before income tax was 7.2% for the same period last year, which included $0.7 million tax benefits from share-based compensation settlements and a $0.8 million benefit from the lapse of the statute of limitations related to an uncertain tax position. The year-over-year increase in the effective tax rate is primarily due to shifts in the mix of taxable income in our various tax jurisdictions, increases in certain statutory tax rates and the comparative impact of discrete benefits recorded in the same period last year.

During fiscal 2017, we received an assessment from a state tax authority which adjusted taxable income applicable to the particular state resulting from interpretations of certain state income tax provisions applicable to our legal structure.  We believe we have accurately reported our taxable income and are vigorously protesting the assessment through administrative processes with the state.  We believe it is unlikely that the outcome of these matters will have a material adverse effect on our consolidated financial position, results of operations, or liquidity.

Our Macau subsidiary generates income from the sale of the goods that it has sourced and procured. This subsidiary is responsible for the sourcing and procurement of a large portion of the products that we sell. We currently have an indefinite tax holiday in Macau conditioned on the subsidiary meeting certain employment and investment thresholds. The Macau Offshore Law and its supplementary regulations that grant tax incentives to approved offshore institutions will be abolished on January 1, 2021. Existing approved offshore institutions such as ours can continue to operate under the offshore regime until the end of the calendar year 2020. Beginning in calendar year 2021, we believe our Macau subsidiary will become subject to a statutory corporate income tax of approximately 12%. The ultimate impact of this change, if any, on our overall effective tax rate will depend on a variety of factors including our mix of income by jurisdiction, transfer pricing considerations and the specific tax regulations applicable to us when we are no longer under the Macau Offshore regime. It is not practicable for us to determine the potential impact on our financial statements until the tax changes in Macau are fully established and our transfer pricing analysis is complete. Because our Macau subsidiary is not directly or indirectly owned by a U.S. parent, there is no U.S. tax liability associated with the income generated in Macau.

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Label	Element	Value
Non-Cash Increase (Decrease) In Other Accrued Liabilities	hele_NonCashIncreaseDecreaseInOtherAccruedLiabilities	$ (2,873,000)
Non-Cash Increase (Decrease) In Prepaid Expense And Other Assets	hele_NonCashIncreaseDecreaseInPrepaidExpenseAndOtherAssets	43,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	4,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	(163,000)
Non-Cash Increase (Decrease) In Other Current Assets And Liabilities, Net	hele_NonCashIncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet	(7,311,000)
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	us-gaap_RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability	37,082,000
Retained Earnings [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	(129,000)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	32,000
Common Stock [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	(22,000)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	(26,000)
Additional Paid-in Capital [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	(8,000)
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1	$ (6,000)

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Discontinued Operations

9 Months Ended

Nov. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 5 - Discontinued Operations

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million, payable on or before August 1, 2019.  During fiscal 2019, the final amount of the supplemental payment was adjusted to $10.8 million based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018.  The adjustment resulted in a corresponding pre-tax charge of $5.8 million ($4.4 million after tax) to discontinued operations. The supplemental payment of $10.8 million was received during the second quarter of fiscal 2020. Also, during fiscal 2019, we recorded an additional charge of $1.5 million ($1.3 million after tax) to discontinued operations, resulting from the resolution of certain contingencies. In conjunction with the sale of the business, we provided certain transition services that ceased during the second quarter of fiscal 2020.

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Repurchases of Helen of Troy Common Stock

9 Months Ended

Nov. 30, 2019

Equity [Abstract]

Repurchase of Helen of Troy Common Stock

Note 9 - Repurchase of Helen of Troy Common Stock

In May 2019, we announced that our Board of Directors had authorized the repurchase of up to $400 million of our outstanding common stock.  The authorization is effective May 8, 2019 for a period of three years and replaced Helen of Troy's previous repurchase authorization, of which approximately $107.4 million remained. These repurchases may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, working capital requirements, general business conditions, financial conditions, any applicable contractual limitations, and other factors, including alternative investment opportunities.  As of November 30, 2019, our repurchase authorization allowed for the purchase of $393.0 million of common stock. 

Our current equity-based compensation plans include provisions that allow for the “net exercise” of share-settled awards by all plan participants.  In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the equity holder can be paid for by having the equity holder tender back to the Company a number of shares at fair value equal to the amounts due.  Net exercises are treated as purchases and retirements of shares.

The following table summarizes our share repurchase activity for the periods shown:

	Three Months Ended November 30,				Nine Months Ended November 30,
(in thousands, except share and per share data)	2019		2018		2019		2018
Common stock repurchased on the open market:
Number of shares	—		813,696		—		1,220,721
Aggregate value of shares	$	—	$	100,000	$	—	$	137,067
Average price per share	$	—	$	122.90	$	—	$	112.28
Common stock received in connection with share-based compensation:
Number of shares	6,509		1,398		77,067		58,470
Aggregate value of shares	$	1,002	$	175	$	10,133	$	5,348
Average price per share	$	153.88	$	125.03	$	131.48	$	91.47

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Fair Value (Tables)

9 Months Ended

Nov. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy of financial assets and liabilities presented at fair value and measured on a recurring basis

The following tables present the fair value of our financial assets and liabilities measured on a recurring basis as of the end of the periods shown:

	Fair Values at
	November 30, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	653
Interest rate swaps	—
Foreign currency contracts	1,353
Total assets	$	2,006
Liabilities:
Floating rate debt	$	244,247
Interest rate swaps	7,068
Foreign currency contracts	372
Total liabilities	$	251,687

	Fair Values at
	February 28, 2019
(in thousands)	(Level 2) (1)
Assets:
Money market accounts	$	915
Interest rate swaps	512
Foreign currency contracts	1,692
Total assets	$	3,119
Liabilities:
Floating rate debt	$	320,784
Interest rate swaps	339
Foreign currency contracts	563
Total liabilities	$	321,686

(1)

Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.

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Share-Based Compensation Plans (Tables)

9 Months Ended

Nov. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based compensation expense in SG&A

We recorded the following share-based compensation expense in SG&A for the periods shown below: 

	Three Months Ended November 30,						Nine Months Ended November 30,
(in thousands, except per share data)	2019			2018			2019			2018
Stock options	$	21		$	128		$	172		$	655
Directors stock compensation	140			140			421			386
Performance based and other stock awards	4,138			5,419			17,366			15,337
Employee stock purchase plan	459			329			784			651
Share-based compensation expense	4,758			6,016			18,743			17,029
Less income tax benefits	(343		)	(398		)	(1,434		)	(1,009		)
Share-based compensation expense, net of income tax benefits	$	4,415		$	5,618		$	17,309		$	16,020
Impact of share-based compensation on earnings per share from continuing operations:
Basic	$	0.18		$	0.22		$	0.69		$	0.61
Diluted	$	0.17		$	0.21		$	0.68		$	0.60

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Earnings Per Share (Tables)

9 Months Ended

Nov. 30, 2019

Earnings Per Share [Abstract]

Schedule of components of basic and diluted shares

The following table presents our weighted average basic and diluted shares for the periods shown:

	Three Months Ended November 30,		Nine Months Ended November 30,
(in thousands)	2019	2018	2019	2018
Weighted average shares outstanding, basic	25,161	26,057	25,099	26,321
Incremental shares from share-based compensation arrangements	235	309	196	199
Weighted average shares outstanding, diluted	25,396	26,366	25,295	26,520
Anti-dilutive securities	134	137	217	281

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Commitments and Contingencies - Lease Commitments (Details) - Lease Agreements $ in Thousands	Nov. 30, 2019 USD ($)
Other Commitments [Line Items]
Total	$ 69,482
2020	5,171
2021	6,678
2022	6,411
2023	5,743
2024	5,078
After 5 years	$ 40,401

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Goodwill and Intangible Assets - Additional information (Details) - USD ($) $ in Thousands	Nov. 30, 2019	May 31, 2019	Feb. 28, 2019
Trademarks | Beauty
Finite-Lived Intangible Assets [Line Items]
Net book value transferred from indefinite lived to finite lived assets	$ 27,210	$ 30,400	$ 48

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Share-Based Compensation Plans Share Based Compensation Expense in SG&A (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense, net of income tax benefits	$ 4,415	$ 5,618	$ 17,309	$ 16,020
Share Based Compensation Effect on Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 0.18	$ 0.22	$ 0.69	$ 0.61
Diluted (in dollars per share)	$ 0.17	$ 0.21	$ 0.68	$ 0.60
SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4,758	$ 6,016	$ 18,743	$ 17,029
Less income tax benefits	(343)	(398)	(1,434)	(1,009)
Stock options | SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	21	128	172	655
Performance based and other stock awards | SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	4,138	5,419	17,366	15,337
Employee stock purchase plan | SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	459	329	784	651
Directors stock compensation | SG&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 140	$ 140	$ 421	$ 386

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Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2019	Feb. 28, 2019
Statement of Financial Position [Abstract]
Receivables - principally trade, allowances (in dollars)	$ 1,486	$ 2,032
Property and equipment, accumulated depreciation (in dollars)	133,764	123,744
Other intangible assets, accumulated amortization (in dollars)	194,562	181,463
Other assets, accumulated amortization (in dollars)	$ 2,167	$ 2,115
Cumulative preferred stock, non-voting, par (in dollars per share)	$ 1	$ 1
Cumulative preferred stock, non-voting, authorized shares (in shares)	2,000,000	2,000,000
Cumulative preferred stock, non-voting, issued shares (in shares)	0	0
Common stock, par (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized shares (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	25,166,771	24,946,046
Common stock, shares outstanding (in shares)	25,166,771	24,946,046

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Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Cash provided by operating activities:
Net income	$ 155,488	$ 131,279
Less: Loss from discontinued operations	0	(5,231)
Income from continuing operations	155,488	136,510
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	24,876	22,490
Amortization of financing costs	763	761
Non-cash operating lease asset amortization	1,371
Provision for doubtful receivables	484	725
Non-cash share-based compensation	18,743	17,029
Gain on the sale or disposal of property and equipment	(14)	(536)
Deferred income taxes and tax credits	(511)	4,060
Changes in operating capital, net of effects of acquisition of businesses:
Receivables	(85,747)	(64,284)
Inventories	(31,317)	(49,137)
Prepaid expenses and other current assets	(1,269)	(1,149)
Other assets and liabilities, net	21,091	5,554
Accounts payable	(2,037)	16,694
Accrued expenses and other current liabilities	477	17,809
Accrued income taxes	(980)	2,969
Net cash provided by operating activities - continuing operations	101,418	109,495
Net cash used by operating activities - discontinued operations	0	(5,231)
Net cash provided by operating activities	101,418	104,264
Cash used by investing activities:
Capital and intangible asset expenditures	(13,247)	(22,166)
Proceeds from the sale of property and equipment	3	1,125
Net cash used by investing activities - continuing operations	(13,244)	(21,041)
Net cash used by investing activities - discontinued operations	0	0
Net cash used by investing activities	(13,244)	(21,041)
Cash used by financing activities:
Proceeds from line of credit	406,600	462,350
Repayment of line of credit	(482,000)	(411,350)
Repayment of long-term debt	(1,900)	(1,900)
Proceeds from share issuances under share-based compensation plans	7,025	8,490
Payments for repurchases of common stock	(10,133)	(142,415)
Net cash used by financing activities - continuing operations	(80,408)	(84,825)
Net cash used by financing activities - discontinued operations	0	0
Net cash used by financing activities	(80,408)	(84,825)
Net increase (decrease) in cash and cash equivalents	7,766	(1,602)
Cash and cash equivalents, beginning balance	11,871	20,738
Cash and cash equivalents, ending balance	19,637	19,136
Less: Cash and cash equivalents of discontinued operations, ending balance	0	0
Cash and cash equivalents of continuing operations, ending balance	19,637	$ 19,136
Supplemental non-cash items not included above resulting from the adoption of ASC 842
Initial recognition of lease liabilities	$ 45,091

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Supplemental Balance Sheet Information

9 Months Ended

Nov. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Note 6 - Supplemental Balance Sheet Information

PROPERTY AND EQUIPMENT

(in thousands)	Estimated Useful Lives (Years)			November 30, 2019			February 28, 2019
Land				$	12,644		$	12,644
Building and improvements	3	-	40	113,608			113,820
Computer, software, furniture and other equipment	3	-	15	86,888			84,711
Tools, molds and other production equipment	3	-	7	37,756			36,378
Construction in progress				14,047			6,529
Property and equipment, gross				264,943			254,082
Less accumulated depreciation				(133,764		)	(123,744		)
Property and equipment, net				$	131,179		$	130,338

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 

(in thousands)	November 30, 2019		February 28, 2019
Accrued compensation, benefits and payroll taxes	$	37,410	$	36,782
Accrued sales discounts and allowances	31,661		28,655
Accrued sales returns	24,159		23,316
Accrued advertising	30,970		26,549
Other	47,069		49,858
Total accrued expenses and other current liabilities	$	171,269	$	165,160

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Restructuring Plan

9 Months Ended

Nov. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring Plan

Note 10 - Restructuring Plan

In October 2017, we announced that we had approved a restructuring plan (referred to as “Project Refuel”). Project Refuel includes a reduction-in-force and the elimination of certain contracts and operating expenses.  We are targeting total annualized profit improvements of approximately $8.0 to $10.0 million over the duration of the plan.  We estimate the plan will be completed during fiscal 2020, and expect to incur total restructuring charges of approximately $7.0 million over the duration of the plan. Restructuring provisions are determined based on estimates prepared at the time the restructuring actions are approved by management and are revised periodically.

For the three month period ended November 30, 2019, we incurred an insignificant amount of pre-tax restructuring charges. For the nine month period ended November 30, 2019, we incurred $1.1 million of pre-tax restructuring charges related primarily to employee severance and termination benefits and lease termination costs. Since implementing Project Refuel, we have incurred $6.5 million of pre-tax restructuring costs as of November 30, 2019.  During the three and nine month periods ended November 30, 2019, we made total cash restructuring payments of $0.3 million and $1.8 million, respectively. Since implementing Project Refuel, we have made total cash restructuring payments of $6.0 million. We had a remaining liability of $0.5 million as of November 30, 2019.

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Segment Information (Tables)

9 Months Ended

Nov. 30, 2019

Segment Reporting [Abstract]

Schedule of segment information

The following tables present segment information included in continuing operations for the periods shown:

	Three Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	183,211	$	185,810	$	105,716	$	474,737
Restructuring charges	—		—		12		12
Operating income	42,272		24,372		12,625		79,269
Capital and intangible asset expenditures	2,272		1,917		197		4,386
Depreciation and amortization	2,263		3,740		2,757		8,760

	Three Months Ended November 30, 2018
(in thousands)	Housewares			Health & Home		Beauty		Total
Sales revenue, net	$	142,937		$	187,863	$	100,281	$	431,081
Restructuring charges	(20		)	—		45		25
Operating income	29,839			19,213		12,244		61,296
Capital and intangible asset expenditures	5,534			3,128		443		9,105
Depreciation and amortization	1,408			4,326		1,461		7,195

	Nine Months Ended November 30, 2019
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	496,017	$	499,543	$	269,507	$	1,265,067
Restructuring charges	90		—		971		1,061
Operating income	109,170		51,836		19,990		180,996
Capital and intangible asset expenditures	8,354		4,115		778		13,247
Depreciation and amortization	5,292		12,322		7,262		24,876

	Nine Months Ended November 30, 2018
(in thousands)	Housewares		Health & Home		Beauty		Total
Sales revenue, net	$	397,738	$	527,077	$	254,493	$	1,179,308
Restructuring charges	740		358		1,511		2,609
Operating income	80,351		52,501		22,431		155,283
Capital and intangible asset expenditures	12,830		7,783		1,553		22,166
Depreciation and amortization	4,414		12,703		5,373		22,490

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Long-Term Debt (Tables)

9 Months Ended

Nov. 30, 2019

Debt Disclosure [Abstract]

Summary of long-term debt

The following table summarizes our long-term debt as of the end of the periods shown:

(in thousands)	November 30, 2019			February 28, 2019
Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1)	$	20,447		$	22,335
Credit Agreement (2)	223,800			298,449
Total long-term debt	244,247			320,784
Less current maturities of long-term debt	(1,884		)	(1,884		)
Long-term debt, excluding current maturities	$	242,363		$	318,900

(1) The MBFC Loan is unsecured and bears floating interest based on applicable LIBOR plus a margin of up to 2.0%, or a Base Rate plus a margin of up to 1.0%, as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime.  The loan can be prepaid without penalty.  The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023.  Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.

(2) The Credit Agreement matures on December 7, 2021. The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement.  Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps.

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Nov. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of carrying amounts and associated accumulated amortization for all intangible assets by operating segment

The following table summarizes the carrying amounts and accumulated amortization for all intangible assets by segment as of the end of the periods presented:

	November 30, 2019										February 28, 2019
(in thousands)	Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value		Gross Carrying Amount		Cumulative Goodwill Impairments			Accumulated Amortization			Net Book Value
Housewares:
Goodwill	$	282,056	$	—		$	—		$	282,056	$	282,056	$	—		$	—		$	282,056
Trademarks - indefinite	134,200		—			—			134,200		134,200		—			—			134,200
Other intangibles - finite	41,846		—			(20,881		)	20,965		41,417		—			(19,398		)	22,019
Subtotal	458,102		—			(20,881		)	437,221		457,673		—			(19,398		)	438,275
Health & Home:
Goodwill	284,913		—			—			284,913		284,913		—			—			284,913
Trademarks - indefinite	54,000		—			—			54,000		54,000		—			—			54,000
Licenses - finite	17,050		—			(15,665		)	1,385		17,050		—			(15,402		)	1,648
Licenses - indefinite	7,400		—			—			7,400		7,400		—			—			7,400
Other intangibles - finite	118,139		—			(95,776		)	22,363		117,967		—			(87,953		)	30,014
Subtotal	481,502		—			(111,441		)	370,061		481,330		—			(103,355		)	377,975
Beauty:
Goodwill	81,841		(46,490		)	—			35,351		81,841		(46,490		)	—			35,351
Trademarks - indefinite	—		—			—			—		30,407		—			—			30,407
Trademarks - finite	30,557		—			(3,347		)	27,210		150		—			(102		)	48
Licenses - indefinite	10,300		—			—			10,300		10,300		—			—			10,300
Licenses - finite	13,696		—			(12,721		)	975		13,696		—			(12,482		)	1,214
Other intangibles - finite	46,402		—			(46,172		)	230		46,402		—			(46,126		)	276
Subtotal	182,796		(46,490		)	(62,240		)	74,066		182,796		(46,490		)	(58,710		)	77,596
Total	$	1,122,400	$	(46,490	)	$	(194,562	)	$	881,348	$	1,121,799	$	(46,490	)	$	(181,463	)	$	893,846

Summary of amortization expense attributable to intangible assets

The following table summarizes the amortization expense attributable to intangible assets recorded in SG&A in the condensed consolidated statements of income for the periods shown below, as well as our estimated amortization expense for fiscal 2020 through 2025:

Aggregate Amortization Expense
For the three months ended (in thousands)
November 30, 2019	$	4,790
November 30, 2018	3,300

Aggregate Amortization Expense
For the nine months ended (in thousands)
November 30, 2019	$	13,129
November 30, 2018	10,822

Schedule of estimated amortization expense of intangible assets

Estimated Amortization Expense (in thousands)
Fiscal 2020	$	17,557
Fiscal 2021	16,437
Fiscal 2022	9,530
Fiscal 2023	9,261
Fiscal 2024	7,386
Fiscal 2025	6,854

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Goodwill and Intangible Assets - Summary of amortization expense attributable to intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate Amortization Expense	$ 4,790	$ 3,300	$ 13,129	$ 10,822

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Repurchase of Helen of Troy Common Stock (Details) - USD ($)		3 Months Ended		9 Months Ended
	May 08, 2019	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Repurchase of common stock
Amount of shares authorized for purchase						$ 400,000,000
Period for stock repurchase	3 years
Remaining share repurchase amount - prior program	$ 107,400,000
Remaining share repurchase amount		$ 393,000,000.0		$ 393,000,000.0
Repurchase of common stock
Aggregate value of shares (in USD)		$ 1,002,000	$ 100,175,000	$ 10,133,000	$ 142,415,000
Open market or tender offer
Repurchase of common stock
Number of shares (in shares)		0	813,696,000	0	1,220,721,000
Aggregate value of shares (in USD)		$ 0	$ 100,000,000	$ 0	$ 137,067,000
Average price per share (in dollars per share)		$ 0	$ 122.90	$ 0	$ 112.28
Stock Compensation Plan
Repurchase of common stock
Number of shares (in shares)		6,509,000	1,398,000	77,067,000	58,470,000
Aggregate value of shares (in USD)		$ 1,002,000	$ 175,000	$ 10,133,000	$ 5,348,000
Average price per share (in dollars per share)		$ 153.88	$ 125.03	$ 131.48	$ 91.47

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Long-Term Debt - Schedule (Details)	3 Months Ended		9 Months Ended
	Nov. 30, 2019 USD ($)	Nov. 30, 2018	Nov. 30, 2019 USD ($) method	Nov. 30, 2018
Minimum | Credit agreement
Long-term debt
Interest rate range during each year (as a percent)	2.70%	3.10%	2.70%	2.80%
Maximum | Credit agreement
Long-term debt
Interest rate range during each year (as a percent)	5.30%	5.30%	5.50%	5.30%
Credit agreement
Long-term debt
Maximum revolving commitment	$ 1,000,000,000.0		$ 1,000,000,000.0
Number of alternative methods under which interest on borrowings accrue | method			2
Amount available for borrowings	765,200,000		$ 765,200,000
Maximum additional debt allowed under debt covenants	730,500,000		730,500,000
Revolving loan | Credit agreement
Long-term debt
Amount outstanding	225,800,000		225,800,000
Letter of credit | Credit agreement
Long-term debt
Amount outstanding	$ 9,000,000.0		$ 9,000,000.0

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Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Nov. 30, 2019	Feb. 28, 2019
Assets, current:
Cash and cash equivalents	$ 19,637	$ 11,871
Receivables - principally trade, less allowances of $1,486 and $2,032	365,543	280,280
Inventory	333,656	302,339
Prepaid expenses and other current assets	10,403	10,369
Total assets, current	729,239	604,859
Property and equipment, net of accumulated depreciation of $133,764 and $123,744	131,179	130,338
Goodwill	602,320	602,320
Other intangible assets, net of accumulated amortization of $194,562 and $181,463	279,028	291,526
Operating lease assets	33,528
Deferred tax assets, net	12,926	7,991
Other assets, net of accumulated amortization of $2,167 and $2,115	2,869	12,501
Total assets	1,791,089	1,649,535
Liabilities, current:
Accounts payable, principally trade	141,523	143,560
Accrued expenses and other current liabilities	171,269	165,160
Income taxes payable	3,223	1,427
Long-term debt, current maturities	1,884	1,884
Total liabilities, current	317,899	312,031
Long-term debt, excluding current maturities	242,363	318,900
Lease liabilities, non-current	41,760
Deferred tax liabilities, net	8,439	5,748
Other liabilities, non-current	18,944	16,219
Total liabilities	629,405	652,898
Commitments and contingencies
Stockholders' equity:
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued	0	0
Common stock, $0.10 par. Authorized 50,000,000 shares; 25,166,771 and 24,946,046 shares issued and outstanding	2,517	2,495
Additional paid in capital	262,731	246,585
Accumulated other comprehensive income (loss)	(4,885)	1,191
Retained earnings	901,321	746,366
Total stockholders' equity	1,161,684	996,637
Total liabilities and stockholders' equity	$ 1,791,089	$ 1,649,535

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Feb. 28, 2018		26,576,000
Beginning balance at Feb. 28, 2018	$ 1,014,459	$ 2,658	$ 230,676	$ 631	$ 780,494
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income from continuing operations	136,510				136,510
Loss from discontinued operations	(5,231)				(5,231)
Other comprehensive income, net of tax	4,576			4,576
Exercise of stock options (in shares)		121,000
Exercise of stock options	6,081	$ 12	6,069
Net issuance and settlement of restricted stock (in shares)		144,000
Net issuance and settlement of restricted stock	0	$ 14	(14)
Issuance of common stock related to stock purchase plan (in shares)		31,000
Issuance of common stock related to stock purchase plan	2,412	$ 3	2,409
Common stock repurchased and retired (in shares)		(1,279,000)
Common stock repurchased and retired	(142,415)	$ (127)	(11,273)		(131,015)
Share-based compensation	17,029		17,029
Ending balance (in shares) at Nov. 30, 2018		25,593,000
Ending balance at Nov. 30, 2018	1,033,258	$ 2,534	244,888	5,207	780,629
Beginning balance (in shares) at Aug. 31, 2018		26,380,000
Beginning balance at Aug. 31, 2018	1,075,740	$ 2,635	241,633	4,647	826,825
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income from continuing operations	54,320				54,320
Loss from discontinued operations	(4,850)
Other comprehensive income, net of tax	560			560
Exercise of stock options (in shares)		10,000
Exercise of stock options	566	$ 1	565
Net issuance and settlement of restricted stock (in shares)		4,000
Net issuance and settlement of restricted stock	0
Issuance of common stock related to stock purchase plan (in shares)		14,000
Issuance of common stock related to stock purchase plan	1,077	$ 1	1,076
Common stock repurchased and retired (in shares)		(815,000)
Common stock repurchased and retired	(100,175)	$ (81)	(4,396)		(95,698)
Share-based compensation	6,016		6,016
Ending balance (in shares) at Nov. 30, 2018		25,593,000
Ending balance at Nov. 30, 2018	1,033,258	$ 2,534	244,888	5,207	780,629
Beginning balance (in shares) at Feb. 28, 2019		24,946,000
Beginning balance at Feb. 28, 2019	996,637	$ 2,495	246,585	1,191	746,366
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income from continuing operations	155,488				155,488
Other comprehensive income, net of tax	$ (6,076)			(6,076)
Exercise of stock options (in shares)	68,657	69,000
Exercise of stock options	$ 4,190	$ 7	4,183
Net issuance and settlement of restricted stock (in shares)		199,000
Net issuance and settlement of restricted stock	0	$ 21	(21)
Issuance of common stock related to stock purchase plan (in shares)		30,000
Issuance of common stock related to stock purchase plan	2,835	$ 2	2,833
Common stock repurchased and retired (in shares)		(77,000)
Common stock repurchased and retired	(10,133)	$ (8)	(9,592)		(533)
Share-based compensation	18,743		18,743
Ending balance (in shares) at Nov. 30, 2019		25,167,000
Ending balance at Nov. 30, 2019	1,161,684	$ 2,517	262,731	(4,885)	901,321
Beginning balance (in shares) at Aug. 31, 2019		25,130,000
Beginning balance at Aug. 31, 2019	1,087,375	$ 2,513	256,995	(4,755)	832,622
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income from continuing operations	68,699				68,699
Loss from discontinued operations					(4,850)
Other comprehensive income, net of tax	$ (130)			(130)
Exercise of stock options (in shares)	6,892	7,000
Exercise of stock options	$ 557	$ 1	556
Net issuance and settlement of restricted stock (in shares)		21,000
Net issuance and settlement of restricted stock	0	$ 3	(3)
Issuance of common stock related to stock purchase plan (in shares)		15,000
Issuance of common stock related to stock purchase plan	1,427	$ 1	1,426
Common stock repurchased and retired (in shares)		(6,000)
Common stock repurchased and retired	(1,002)	$ (1)	(1,001)
Share-based compensation	4,758		4,758
Ending balance (in shares) at Nov. 30, 2019		25,167,000
Ending balance at Nov. 30, 2019	$ 1,161,684	$ 2,517	$ 262,731	$ (4,885)	$ 901,321

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Supplemental Balance Sheet Information - Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Feb. 28, 2019
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued compensation, benefits and payroll taxes	$ 37,410	$ 36,782
Accrued sales discounts and allowances	31,661	28,655
Accrued sales returns	24,159	23,316
Accrued advertising	30,970	26,549
Other	47,069	49,858
Total accrued expenses and other current liabilities	$ 171,269	$ 165,160

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Leases - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Mar. 01, 2019
Leases [Abstract]
Fiscal 2020 (balance for remainder of fiscal year)	$ 1,272
Fiscal 2021	6,082
Fiscal 2022	5,959
Fiscal 2023	5,601
Fiscal 2024	5,102
Thereafter	40,132
Total future lease payments	64,148
Less: imputed interest	(19,057)
Present value of lease liability	$ 45,091	$ 47,223

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Basis of Presentation and Related Information (Details)	9 Months Ended
	Nov. 30, 2019 Segment $ / shares	Feb. 28, 2019 $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common shares, par value (in dollars per share) | $ / shares	$ 0.10	$ 0.10
Number of segments | Segment	3

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Financial Instruments and Risk Management - Interest Rate Risk (Details) - Credit agreement $ in Millions	Nov. 30, 2019 USD ($)
Financial instruments and risk management
Fixed rate debt	$ 225.0
Floating rate debt	$ 225.8

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Segment information
Sales revenue, net	$ 474,737	$ 431,081	$ 1,265,067	$ 1,179,308
Restructuring charges	12	25	1,061	2,609
Operating income	79,269	61,296	180,996	155,283
Capital and intangible asset expenditures	4,386	9,105	13,247	22,166
Depreciation and amortization	8,760	7,195	24,876	22,490
Housewares
Segment information
Sales revenue, net	183,211	142,937	496,017	397,738
Restructuring charges	0	(20)	90	740
Operating income	42,272	29,839	109,170	80,351
Capital and intangible asset expenditures	2,272	5,534	8,354	12,830
Depreciation and amortization	2,263	1,408	5,292	4,414
Health and Home
Segment information
Sales revenue, net	185,810	187,863	499,543	527,077
Restructuring charges	0	0	0	358
Operating income	24,372	19,213	51,836	52,501
Capital and intangible asset expenditures	1,917	3,128	4,115	7,783
Depreciation and amortization	3,740	4,326	12,322	12,703
Beauty
Segment information
Sales revenue, net	105,716	100,281	269,507	254,493
Restructuring charges	12	45	971	1,511
Operating income	12,625	12,244	19,990	22,431
Capital and intangible asset expenditures	197	443	778	1,553
Depreciation and amortization	$ 2,757	$ 1,461	$ 7,262	$ 5,373

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Financial Instruments and Risk Management

9 Months Ended

Nov. 30, 2019

Financial Instruments, Owned, at Fair Value [Abstract]

Financial Instruments and Risk Management

Note 14 - Financial Instruments and Risk Management

Foreign Currency Risk - Our functional currency is the U.S. Dollar.  By operating internationally, we are subject to foreign currency risk from transactions denominated in currencies other than the U.S. Dollar (“foreign currencies”).  Such transactions include sales, certain inventory purchases and operating expenses.  As a result of such transactions, portions of our cash, trade accounts receivable and trade accounts payable are denominated in foreign currencies.  During the three and nine month periods ended November 30, 2019, approximately 17% and 14%, respectively, of our net sales revenue was in foreign currencies. For both the three and nine month periods ended November 30, 2018, approximately 13% of our net sales revenue was in foreign currencies. These sales were primarily denominated in Euros, British Pounds, Canadian Dollars, and Mexican Pesos. We make most of our inventory purchases from the Far East and primarily use the U.S. Dollar for such purchases.

In our condensed consolidated statements of income, exchange gains and losses resulting from the remeasurement of foreign taxes receivable, taxes payable, deferred tax assets, and deferred tax liabilities are recognized in their respective income tax lines, and all other foreign exchange gains and losses are recognized in SG&A.  During the three and nine month periods ended November 30, 2019, we recorded net foreign exchange gains and (losses) from remeasurement, including the impact of currency hedges

and the cross-currency debt swaps, of $0.6 million and $2.2 million, respectively, in SG&A compared to $0.3 million and $(0.8) million, respectively.

We hedge against certain foreign currency exchange rate-risk by using a series of forward contracts and zero-cost collars designated as cash flow hedges and mark-to-market derivatives to protect against the foreign currency exchange risk inherent in our forecasted transactions denominated in currencies other than the U.S. Dollar. We do not enter into any forward exchange contracts or similar instruments for trading or other speculative purposes. The effective portion of the changes in fair value of these instruments is reported in OCI and reclassified into SG&A in the same period they are settled. The ineffective portion, which is not material for any year presented, is immediately recognized in SG&A.

Interest Rate Risk - Interest on our outstanding debt as of November 30, 2019 is based on floating interest rates.  If short-term interest rates increase, we will incur higher interest expense on any future outstanding balances of floating rate debt. Floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225.0 million of the outstanding principal balance under the Credit Agreement, which totaled $225.8 million (excluding prepaid finance fees) as of November 30, 2019.

The following table summarizes the fair values of our derivative instruments as of the end of the periods shown:

(in thousands)	November 30, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2021	€	14,000	$	134	$	13	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	2/2021	€	22,375	431		119		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	01/2021	$	15,500	82		5		—		—
Zero-cost collar - Pound	Cash flow	02/2021	£	9,500	—		—		185		89
Foreign currency contracts - sell Pound	Cash flow	02/2020	£	15,500	148		—		—		8
Foreign currency contracts - sell Mexican Pesos	Cash flow	02/2020	$	20,000	—		—		15		—
Interest rate swaps	Cash flow	1/2024	$	225,000	—		—		2,058		5,010
Subtotal					795		137		2,258		5,107
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	421		—		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		75		—
Subtotal					421		—		75		—
Total fair value					$	1,216	$	137	$	2,333	$	5,107

(in thousands)	February 28, 2019
Derivatives designated as hedging instruments	Hedge Type	Final Settlement Date	Notional Amount		Prepaid Expenses and Other Current Assets		Other Assets		Accrued Expenses and Other Current Liabilities		Other Liabilities, Non- current
Zero-cost collar - Euro	Cash flow	02/2020	€	9,500	$	11	$	—	$	—	$	—
Foreign currency contracts - sell Euro	Cash flow	01/2020	€	29,000	1,047		—		—		—
Foreign currency contracts - sell Canadian Dollars	Cash flow	02/2020	$	16,000	168		—		—		—
Zero-cost collar - Pound	Cash flow	05/2020	£	4,500	—		—		200		—
Foreign currency contracts - sell Pound	Cash flow	05/2020	£	19,500	248		—		—		13
Foreign currency contracts - sell Mexican Pesos	Cash flow	09/2019	$	30,000	—		—		58		—
Interest rate swaps	Cash flow	01/2024	$	225,000	512		—		—		339
Subtotal					1,986		—		258		352
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	04/2020	€	5,280	—		218		—		—
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	04/2020	£	6,395	—		—		—		292
Subtotal					—		218		—		292
Total fair value					$	1,986	$	218	$	258	$	644

(1) These are foreign currency contracts for which we have not elected hedge accounting.  We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements. 

The following table summarizes the pre-tax effect of derivative instruments for the periods shown:

	Three Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)						Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018			Location	2019			2018			Location	2019			2018
Currency contracts - cash flow hedges	$	(2,739	)	$	(563	)	SG&A	$	(630	)	$	(1,178	)		$	—		$	—
Interest rate swaps - cash flow hedges	2,084			(4		)	Interest expense	—			—			Interest expense	(162		)	136
Cross-currency debt swaps - principal	—			—				—			—			SG&A	(389		)	228
Cross-currency debt swaps - interest	—			—				—			—			Interest Expense	73			73
Total	$	(655	)	$	(567	)		$	(630	)	$	(1,178	)		$	(478	)	$	437

	Nine Months Ended November 30,
	Gain (Loss) Recognized in OCI (effective portion)					Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income							Gain (Loss) Recognized As Income
(in thousands)	2019			2018		Location	2019			2018			Location	2019		2018
Currency contracts - cash flow hedges	$	(3,407	)	$	3,962	SG&A	$	(2,840	)	$	(1,101	)		$	—	$	—
Interest rate swaps - cash flow hedges	(7,242		)	72		Interest expense	—			—			Interest expense	69		347
Cross-currency debt swaps - principal	—			—			—			—			SG&A	419		894
Cross-currency debt swaps - interest	—			—			—			—			Interest expense	147		147
Total	$	(10,649	)	$	4,034		$	(2,840	)	$	(1,101	)		$	635	$	1,388

We expect pre-tax losses of $1.5 million associated with foreign currency contracts and interest rate swaps currently reported in accumulated other comprehensive income, to be reclassified into income over the next twelve months. The amount ultimately realized, however, will differ as exchange rates vary and the underlying contracts settle. 

Counterparty Credit Risk - Financial instruments, including foreign currency contracts and cross currency debt swaps, expose us to counterparty credit risk for non-performance. We manage our exposure to counterparty credit risk by only dealing with counterparties who are substantial international financial institutions with significant experience using such derivative instruments. Although our theoretical credit risk is the replacement cost at the then-estimated fair value of these instruments, we believe that the risk of incurring credit losses is remote.

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Earnings Per Share

9 Months Ended

Nov. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Note 18 - Earnings Per Share

We compute basic earnings per share using the weighted average number of shares of common stock

outstanding during the period.  We compute diluted earnings per share using the weighted average

number of shares of common stock outstanding plus the effect of dilutive securities.  Dilutive securities at any given point in time may consist of outstanding options to purchase common stock and issued and contingently issuable unvested RSUs, PSUs, RSAs, PSAs and other stock based awards.  See Note 8 to these condensed consolidated financial statements for more information regarding stock-based awards.  Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method. 

The following table presents our weighted average basic and diluted shares for the periods shown:

	Three Months Ended November 30,		Nine Months Ended November 30,
(in thousands)	2019	2018	2019	2018
Weighted average shares outstanding, basic	25,161	26,057	25,099	26,321
Incremental shares from share-based compensation arrangements	235	309	196	199
Weighted average shares outstanding, diluted	25,396	26,366	25,295	26,520
Anti-dilutive securities	134	137	217	281

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Supplemental Balance Sheet Information (Tables)

9 Months Ended

Nov. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Schedule of property and equipment

PROPERTY AND EQUIPMENT

(in thousands)	Estimated Useful Lives (Years)			November 30, 2019			February 28, 2019
Land				$	12,644		$	12,644
Building and improvements	3	-	40	113,608			113,820
Computer, software, furniture and other equipment	3	-	15	86,888			84,711
Tools, molds and other production equipment	3	-	7	37,756			36,378
Construction in progress				14,047			6,529
Property and equipment, gross				264,943			254,082
Less accumulated depreciation				(133,764		)	(123,744		)
Property and equipment, net				$	131,179		$	130,338

Schedule of accrued expenses and other current liabilities

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 

(in thousands)	November 30, 2019		February 28, 2019
Accrued compensation, benefits and payroll taxes	$	37,410	$	36,782
Accrued sales discounts and allowances	31,661		28,655
Accrued sales returns	24,159		23,316
Accrued advertising	30,970		26,549
Other	47,069		49,858
Total accrued expenses and other current liabilities	$	171,269	$	165,160