XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Intangible Assets | 6 Months Ended
--- | ---
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets A reconciliation of the activity affecting intangible assets is as follows:
(In thousands) | Indefinite Lived Trademarks |  | Finite Lived Trademarks and Customer Relationships |  | Totals
Gross Carrying Amounts |  |  |  |  |
Balance — March 31, 2016 | $ | 2,020,046 |  |  | $ | 417,880 |  |  | $ | 2,437,926 |
Reductions | (77,248 | ) |  | (60,103 | ) |  | (137,351 | )
Effects of foreign currency exchange rates | (380 | ) |  | (103 | ) |  | (483 | )
Balance — September 30, 2016 | 1,942,418 |  |  | 357,674 |  |  | 2,300,092 |
Accumulated Amortization |  |  |  |  |  |  |  |
Balance — March 31, 2016 | — |  |  | 115,203 |  |  | 115,203 |
Additions | — |  |  | 9,865 |  |  | 9,865 |
Reductions | — |  |  | (6,102 | ) |  | (6,102 | )
Effects of foreign currency exchange rates | — |  |  | (2 | ) |  | (2 | )
Balance — September 30, 2016 | — |  |  | 118,964 |  |  | 118,964 |
Intangible assets, net - September 30, 2016 | $ | 1,942,418 |  |  | $ | 238,710 |  |  | $ | 2,181,128 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |
North American OTC Healthcare | $ | 1,755,636 |  |  | $ | 215,817 |  |  | $ | 1,971,453 |
International OTC Healthcare | 85,520 |  |  | 1,087 |  |  | 86,607 |
Household Cleaning | 101,262 |  |  | 21,806 |  |  | 123,068 |
Intangible assets, net - September 30, 2016 | $ | 1,942,418 |  |  | $ | 238,710 |  |  | $ | 2,181,128 |
Historically, we received royalty income from the licensing of the names of certain of our brands in geographic areas or markets in which we do not directly compete. We have had royalty agreements for our Comet brand for several years, which included options on behalf of the licensee to purchase license rights in certain geographic areas and markets in perpetuity. In December 2014, we amended these agreements and we sold rights to use of the Comet brand in certain Eastern European countries to a third-party licensee in exchange for $10.0 million as a partial early buyout. The amended agreement provided that we would continue to receive royalty payments of $1.0 million per quarter for the remaining geographic areas and also granted the licensee an option to acquire the license rights in the remaining geographic areas anytime after June 30, 2016. In July 2016, the licensee elected to exercise its option. In August 2016, we received $11.0 million for the purchase of the remaining license rights and, as a result, we recorded a pre-tax gain of $1.2 million and reduced our indefinite-lived trademarks by $9.0 million. Furthermore, the licensee is no longer required to make additional royalty payments to us, and as a result, our future royalty income will be reduced accordingly. On July 7, 2016, we completed the sale of Pediacare, New Skin and Fiber Choice (see Note 3 above for further details) brands for $40.0 million plus the cost of inventory and received $40.1 million including the cost of preliminary inventory, less certain immaterial holdbacks, and reduced our indefinite and finite-lived trademarks by $37.2 million and $54.0 million, respectively. During the six months ended September 30, 2016, we recorded a preliminary pre-tax loss of $56.2 million on the sale of these brands. In addition, as discussed in Note 3, in connection with this sale, the buyer has exercised its option and notified us of its intention to purchase Dermoplast. As such, we have reclassified $31.0 million of indefinite-lived intangible assets to assets held for sale as of September 30, 2016. Under accounting guidelines, indefinite-lived assets are not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below the carrying amount. Additionally, at each reporting period, an evaluation must be made to determine whether events and circumstances continue to support an indefinite useful life. Intangible assets with finite lives are amortized over their respective estimated useful lives and are also tested for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and exceeds its fair value. On an annual basis during the fourth fiscal quarter, or more frequently if conditions indicate that the carrying value of the asset may not be recoverable, management performs a review of both the values and, if applicable, useful lives assigned to intangible assets and tests for impairment. We utilize the excess earnings method to estimate the fair value of our individual indefinite-lived intangible assets. We also considered our market capitalization at February 29, 2016, which was the date of our annual review. The estimates and assumptions made in assessing the fair value of our reporting units and the valuation of the underlying assets and liabilities are inherently subject to significant uncertainties. Consequently, changing rates of interest and inflation, declining sales or margins, increases in competition, changing consumer preferences, technical advances, or reductions in advertising and promotion may require an impairment charge to be recorded in the future. The weighted average remaining life for finite-lived intangible assets at September 30, 2016 was approximately 13.1 years, and the amortization expense for the three and six months ended September 30, 2016 was $4.6 million and $9.9 million, respectively. At September 30, 2016, finite-lived intangible assets are being amortized over a period of 10 to 30 years, and the associated amortization expense is expected to be as follows:
(In thousands) |  |
Year Ending March 31, |  | Amount
2017 (Remaining six months ending March 31, 2017) | $ | 9,113 |
2018 | 18,062 |
2019 | 18,062 |
2020 | 18,062 |
2021 | 17,640 |
Thereafter | 157,771 |
| $ | 238,710 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration