Company: PBH
Filing Date: 2025-05-09
Form Type: 10-K
Source: 0001295947-25-000017
Chunk: 98

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-05-09
Form: 10-K
Item: Item 8
Chunk 98
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 Consolidated Financial Statements or notes to a year (e.g., “2025”) mean our fiscal year ended on March 31st of that year.Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period.  Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates.  As discussed below, our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence and accounting for income taxes and related uncertain tax positions.

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Cash and Cash EquivalentsWe consider all short-term deposits and investments with original maturities of three months or less to be cash equivalents.  At March 31, 2025, approximately 11% of our cash is held by a bank in Australia and approximately 1% is held by a bank in Singapore.  Substantially all of our remaining cash is held by a large U.S. domestic bank.  We do not believe that, as a result of this concentration, we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships.  Substantially all of the Company's cash balances at March 31, 2025 are uninsured. Accounts ReceivableWe extend non-interest-bearing trade credit to our customers in the ordinary course of business.  We maintain an allowance for credit losses based upon historical collection experience and expected collectability of the accounts receivable.  In an effort to reduce credit risk, we (i) have established credit limits for all of our customer relationships, (ii) perform ongoing credit evaluations of customers’ financial condition, (iii) monitor the payment history and aging of customers’ receivables and (iv) monitor open orders against an individual customer’s outstanding receivable balance.  Included within Accounts Receivable is also a short-term interest-bearing loan receivable from one of our suppliers.  InventoriesInventories are stated at the lower of cost or net realizable value, where cost is determined by using the first-in, first-out method.  We reduce inventories for the diminution of value resulting from product obsolescence, damage or other issues