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Intangible Assets | 12 Months Ended
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Mar. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Intangible Assets | Intangible Assets A reconciliation of the activity affecting intangible assets, net for each of 2019 and 2018 is as follows:
| Year Ended March 31, 2019
(In thousands) | Indefinite- Lived Tradenames |  | Finite-Lived Tradenames and Customer Relationships |  | Totals
Gross Carrying Amounts |  |  |  |  |
Balance – March 31, 2018 | $ | 2,490,303 |  |  | $ | 441,314 |  |  | $ | 2,931,617 |
Reclassifications | (25,152 | ) |  | 25,152 |  |  | — |
Reductions | (30,562 | ) |  | (34,889 | ) |  | (65,451 | )
Tradename impairment | (154,967 | ) |  | (40,953 | ) |  | (195,920 | )
Effects of foreign currency exchange rates | (6,431 | ) |  | (341 | ) |  | (6,772 | )
Balance – March 31, 2019 | $ | 2,273,191 |  |  | $ | 390,283 |  |  | $ | 2,663,474 |
Accumulated Amortization |  |  |  |  |  |  |  |
Balance – March 31, 2018 | $ | — |  |  | $ | 150,701 |  |  | $ | 150,701 |
Additions | — |  |  | 21,767 |  |  | 21,767 |
Reductions | — |  |  | (16,136 | ) |  | (16,136 | )
Effects of foreign currency exchange rates | — |  |  | (68 | ) |  | (68 | )
Balance – March 31, 2019 | $ | — |  |  | $ | 156,264 |  |  | $ | 156,264 |
Intangible assets, net – March 31, 2019 | $ | 2,273,191 |  |  | $ | 234,019 |  |  | $ | 2,507,210 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |
North American OTC Healthcare | $ | 2,195,617 |  |  | $ | 228,743 |  |  | $ | 2,424,360 |
International OTC Healthcare | 77,574 |  |  | 5,276 |  |  | 82,850 |
Intangible assets, net – March 31, 2019 | $ | 2,273,191 |  |  | $ | 234,019 |  |  | $ | 2,507,210 |
| Year Ended March 31, 2018
(In thousands) | Indefinite- Lived Tradenames |  | Finite-Lived Tradenames and Customer Relationships |  | Totals
Gross Carrying Amounts |  |  |  |  |
Balance – March 31, 2017 | $ | 2,589,155 |  |  | $ | 441,801 |  |  | $ | 3,030,956 |
Tradename impairment | (99,300 | ) |  | (624 | ) |  | (99,924 | )
Effects of foreign currency exchange rates | 448 |  |  | 137 |  |  | 585 |
Balance – March 31, 2018 | $ | 2,490,303 |  |  | $ | 441,314 |  |  | $ | 2,931,617 |
Accumulated Amortization |  |  |  |  |  |  |  |
Balance – March 31, 2017 | $ | — |  |  | $ | 127,343 |  |  | $ | 127,343 |
Additions | — |  |  | 23,349 |  |  | 23,349 |
Effects of foreign currency exchange rates | — |  |  | 9 |  |  | 9 |
Balance – March 31, 2018 | $ | — |  |  | $ | 150,701 |  |  | $ | 150,701 |
Intangible assets, net – March 31, 2018 | $ | 2,490,303 |  |  | $ | 290,613 |  |  | $ | 2,780,916 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |
North American OTC Healthcare | $ | 2,375,736 |  |  | $ | 265,356 |  |  | $ | 2,641,092 |
International OTC Healthcare | 84,006 |  |  | 6,068 |  |  | 90,074 |
Household Cleaning | 30,561 |  |  | 19,189 |  |  | 49,750 |
Intangible assets, net – March 31, 2018 | $ | 2,490,303 |  |  | $ | 290,613 |  |  | $ | 2,780,916 |
As discussed in Note 3, on July 2, 2018, we sold our Household Cleaning segment. As a result, we decreased our indefinite-lived intangibles by $30.5 million and our net finite-lived trademarks by $18.8 million. During the fourth quarter of each fiscal year in conjunction with our strategic planning process, we perform our annual impairment analysis. We utilized the excess earnings method to estimate the fair value of our individual indefinite-lived intangible assets. The discount rate utilized in the analyses, as well as future cash flows, may be influenced by such factors as changes in interest rates and rates of inflation. Additionally, should the related fair values of intangible assets be adversely affected as a result of declining sales or margins caused by competition, changing consumer preferences, technological advances or changes in advertising and promotional expenses, we may be required to record impairment charges in the future. As a result of our analysis at February 28, 2019, the fair values of three of our indefinite-lived intangible assets, Fleet, DenTek and Efferdent/Effergrip, did not exceed the carrying values and as such, impairment charges of $155.0 million were recorded. In addition, in connection with the impairment analysis, the Efferdent/Effergrip intangible asset was determined to have a finite life, and as such it will be amortized prospectively over its estimated remaining useful life of 15 years as we believe this life best reflects the period over which we believe this brand will contribute to our cash flows. The impairment charges were the result of our reassessment of the long-term sales projections for these brands during our annual planning cycle as well as an overall increase in the discount rate used to value the brands. As a result of our analysis at February 28, 2019, all other indefinite-lived intangible assets tested had a fair value that exceeded their carrying value by at least 10%, with the exception of one of the significant tradenames within our North American Women's Health reporting unit. We performed a sensitivity analysis of our weighted average cost of capital and we determined that a 50 basis point increase in the weighted average cost of capital used to value the indefinite-lived intangibles would have resulted in an additional impairment of $17.4 million. Additionally, a 50 basis point decrease in the terminal growth rate used for each of our indefinite-lived intangibles would have resulted in an additional impairment of $8.9 million. Also as a result of our analysis at February 28, 2019, the fair value of several of our non-core finite-lived trademarks did not exceed their carrying values, and as such, impairment charges of $41.0 million were recorded. The impairment charges were the result of our reassessment of the long-term sales projections for the associated brands during our annual planning cycle, in certain instances the discontinuance of brands, as well as an overall increase in the discount rate used to value the brands. The assets impaired in 2019 are all part of our North America OTC segment. As a result of our analysis at February 28, 2018, the fair values of two of our indefinite-lived intangible assets, Beano and Comet®, did not exceed the carrying values and as such, impairment charges of $28.6 million and $70.7 million, respectively, were recorded in 2018 relating to these two tradenames. We also recorded an impairment charge on one of our finite-lived trademarks in 2018 of $0.6 million. Beano and the finite-lived intangible are part of our North American OTC Healthcare segment and Comet ® was part of our Household Cleaning segment (prior to the sale of our Household Cleaning segment as discussed in Note 3). The weighted average remaining life for finite-lived intangible assets at March 31, 2019 was approximately 11.9 years, and the amortization expense for the year ended March 31, 2019 was $21.8 million. At March 31, 2019, finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 30 years, and the estimated amortization expense for each of the five succeeding years and periods thereafter is as follows (in thousands):
(In thousands) |
Year Ending March 31, | Amount
2020 | 19,642 |
2021 | 19,646 |
2022 | 19,644 |
2023 | 19,644 |
2024 | 19,614 |
Thereafter | 135,829 |
| $ | 234,019 |

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