Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangible Assets

Information regarding the Company’s other intangible assets are as follows:


	March 31,
	2021						2020
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Indefinite-lived intangible assets:
Trademarks	$	148,164	$	(953)	$	147,211	$	147,352	$	(953)	$	146,399
Finite-lived intangible assets:
Customer relationships	298,576		(87,308)		211,268		292,155		(64,855)		227,300
Non-compete	2,825		(2,825)		—		3,021		(2,817)		204
Technology	97,349		(29,561)		67,788		96,047		(20,349)		75,698
Trademarks	8,012		(3,381)		4,631		8,012		(1,928)		6,084
Licenses	1,196		(1,196)		—		1,196		(1,196)		—
Total	$	556,122	$	(125,224)	$	430,898	$	547,783	$	(92,098)	$	455,685

The Company’s amortization expense related to finite-lived intangible assets was $33,126, $31,013, and $14,730, for the years ended March 31, 2021, 2020 and 2019, respectively. The expected amortization expense based on the finite-lived intangible assets as of March 31, 2021, is $32,624 in fiscal 2022, $30,399 in fiscal 2023, $27,545 in fiscal 2024, $26,552 in fiscal 2025 and $25,618 in fiscal 2026.

Goodwill

Concurrent with the change in operating segments effective April 1, 2020, goodwill was reassigned to the affected reporting units that have been identified within each operating segment, using a relative fair value approach outlined in ASC 350, Intangibles - Goodwill and Other.

The following table presents the amount of goodwill that has been reassigned to each of the Company's reporting units as of April 1, 2020, using the relative fair value approach, as well as changes in the carrying amount of goodwill by segment during fiscal 2020 and 2021:


	Energy Systems		Motive Power		Specialty		Americas(2)		EMEA		Asia(2)		Total
Balance at April 1, 2019	$	—	$	—	$	—	$	470,194	$	143,269	$	42,936	$	656,399
Acquisitions during the year	—		—		—		72,056		1,732		—		73,788
Measurement period adjustments	—		—		—		(1,390)		—		—		(1,390)
Goodwill impairment charge	—		—		—		—		—		(39,713)		(39,713)
Foreign currency translation adjustment	—		—		—		(16,704)		(5,221)		(3,223)		(25,148)
Balance at March 31, 2020	—		—		—		524,156		139,780		—		663,936
Reallocation to new Reporting Units(1)	263,150		308,497		92,289		(524,156)		(139,780)		—		—
Balance at April 1, 2020	263,150		308,497		92,289		—		—		—		663,936
Measurement period adjustments	1,348		—		1,648		—		—		—		2,996
Foreign currency translation adjustment	15,178		18,558		4,925		—		—		—		38,661
Balance at March 31, 2021	$	279,676	$	327,055	$	98,862	$	—	$	—	$	—	$	705,593

(1)Represents the reallocation of goodwill as a result of the Company reorganizing its segments as described in Note 1.

(2)Goodwill is net of accumulated impairment charges of $57,845 and $44,892 in the legacy Americas and Asia reporting units, respectively, as of March 31, 2020.

Impairment of goodwill, finite and indefinite-lived intangibles

Goodwill is tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. The Company did not record any impairment relating to its goodwill and intangible assets during fiscal 2021 and 2019.

In the fourth quarter of fiscal 2020, the Company conducted its annual goodwill impairment test which indicated that the fair value of its legacy Asia reporting unit was less than its carrying value. The Company recorded a non-cash charge of $39,713 related to goodwill impairment in Asia under the caption “Impairment of goodwill” in the Consolidated Statements of Income. The Company also recorded a non-cash charge of $4,549 related to impairment of indefinite-lived trademarks in its legacy EMEA reportable segment under the caption “Impairment of indefinite-lived intangibles” in the Consolidated Statements of Income. The key factors contributing to the impairment in Asia was the increasing pressure on organic sales growth that the Company began to experience in fiscal 2019 due to a slowdown in telecom spending in the People's Republic of China (“PRC”) amidst growing trade tensions between the U.S.A and China. The impact of these trade tensions on the Company's ability to capture market share in the PRC accelerated in the second half of the fiscal year. Throughout fiscal 2020, there was a general slowdown in the Chinese economy which was further exacerbated by the outbreak of the COVID -19 pandemic, causing disruption to two of the Company's plants in China in the fourth quarter. Also contributing to the poor performance of the Asia region was a general softening of demand in Australia, that began in fiscal 2019 and continued throughout fiscal 2020. The Company monitored the performance of its Asia reporting unit for interim impairment indicators throughout fiscal 2020, but the emergence of COVID-19 in China in December 2019 coupled with the totality of economic headwinds in the region resulted in the recognition of a goodwill impairment loss in connection with its annual impairment test.

During the fourth quarter of fiscal 2020, management completed its evaluation of key inputs used to estimate the fair value of its indefinite-lived trademarks and determined that an impairment charge relating to two of its trademarks in EMEA, that were acquired through legacy acquisitions was appropriate, as it plans to phase out these trademarks.

The Company estimated tax-deductible goodwill to be approximately $110,063 and $120,708 as of March 31, 2021 and 2020, respectively.