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Goodwill

12 Months Ended

Mar. 31, 2025

Note 14: Goodwill

The Company has recast the March 31, 2024 and 2023 goodwill balances to be comparable with the current segment structure. As a result of the segment realignment in fiscal 2025, which is discussed in Note 22, the Company’s goodwill now resides entirely within the Climate Solutions segment. There was no impact to goodwill within the underlying reporting units as a result of the segment realignment. The following table presents a roll forward of the carrying value of goodwill from March 31, 2023 to March 31, 2025.


		Climate
		Solutions
Balance, March 31, 2023		$	165.6
Acquisitions (a)			66.2
Dispositions (b)			(0.7)
Effect of exchange rate changes			(0.2)
Balance, March 31, 2024			230.9
Acquisition adjustment (a)			7.4
Effect of exchange rate changes			(4.4)
Balance, March 31, 2025		$	233.9
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(a)

During fiscal 2024, the Company recorded $65.2 million and $1.0 million of goodwill in connection with its acquisitions of Scott Springfield Manufacturing and Napps, respectively. During fiscal 2025, the Company recorded a measurement period adjustment to reduce the fair value of the acquired Scott Springfield Manufacturing trade name. This purchase accounting adjustment resulted in a $7.4 million increase in goodwill. See Note 2 for additional information.

(b)	The Company wrote-off $0.7 million of goodwill in connection with the sale of two coatings facilities. See Note 2 for additional information.

The Company tests goodwill for impairment annually, or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value. During fiscal 2025, the Company voluntarily changed the date of its annual impairment test to February 28, from March 31, as it allows additional time for preparation and review of the annual impairment assessment. The Company determined the change in the goodwill impairment assessment date did not represent a material change to the method of applying the associated accounting guidance. The change in the date of the annual impairment test date did not result in the delay, acceleration or avoidance of an impairment charge.

To test goodwill for impairment, the Company determines the fair value of each reporting unit based upon the present value of estimated future cash flows and compares the fair value of each reporting unit with its carrying value. The Company’s determination of fair value involves judgment and the use of estimates and assumptions, including assumptions regarding the revenue growth rates and operating profit margins used to calculate estimated future cash flows and risk-adjusted discount rates.

As a result of its annual goodwill impairment tests performed as of February 28, 2025, the Company determined that the fair value of each of its reporting units exceeded their respective book values.

At both March 31, 2025 and 2024, accumulated goodwill impairment losses totaled $40.8 million within the Performance Technologies segment.