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Intangible Assets | 12 Months Ended
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Mar. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Intangible Assets | Intangible Assets A reconciliation of the activity affecting intangible assets, net for each of 2020 and 2019 is as follows:
| Year Ended March 31, 2020 |  |  |  |  |  |  |  |
(In thousands) | Indefinite- Lived Tradenames |  | Finite-Lived Tradenames and Customer Relationships |  |  |  |  |  | Totals
Gross Carrying Amounts |  |  |  |  |  |  |  |  |
Balance – March 31, 2019 | $ | 2,273,191 |  |  | $ | 390,283 |  |  |  |  |  |  | $ | 2,663,474 |
Additions (a) | 2,760 |  |  | — |  |  |  |  |  |  | 2,760 |
Effects of foreign currency exchange rates | (10,620) |  |  | (482) |  |  |  |  |  |  | (11,102) |
Balance – March 31, 2020 | $ | 2,265,331 |  |  | $ | 389,801 |  |  |  |  |  |  | $ | 2,655,132 |
Accumulated Amortization |  |  |  |  |  |  |  |  |  |  |  |
Balance – March 31, 2019 | $ | — |  |  | $ | 156,264 |  |  |  |  |  |  | $ | 156,264 |
Additions | — |  |  | 19,633 |  |  |  |  |  |  | 19,633 |
Effects of foreign currency exchange rates | — |  |  | (156) |  |  |  |  |  |  | (156) |
Balance – March 31, 2020 | $ | — |  |  |  | $ | 175,741 |  |  |  |  |  |  | $ | 175,741 |
Intangible assets, net – March 31, 2020 | $ | 2,265,331 |  |  | $ | 214,060 |  |  |  |  |  |  | $ | 2,479,391 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |  |  |  |  |
North American OTC Healthcare | $ | 2,195,617 |  |  |  | $ | 209,604 |  |  |  |  |  |  | $ | 2,405,221 |
International OTC Healthcare | 69,714 |  |  |  | 4,456 |  |  |  |  |  |  | 74,170 |
Intangible assets, net – March 31, 2020 | $ | 2,265,331 |  |  |  | $ | 214,060 |  |  |  |  |  |  | $ | 2,479,391 |
(a) Amount relates to the acquisition of additional rights to an existing tradename.
| 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 |
As discussed in Note 2, 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 needs or preferences, technological advances, changes in advertising and promotional expenses, or the potential impacts of COVID-19 we may be required to record impairment charges in the future. At February 29, 2020, in conjunction with the annual test for impairment of intangible assets, there were no indicators of impairment under the analysis and accordingly, no impairment charge was taken. 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, we began amortizing it prospectively over its estimated remaining useful life. 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 29, 2020, all indefinite-lived intangible assets tested had a fair value that exceeded their carrying value by at least 10%. 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 intangible assets would not have resulted in any of our indefinite-lived intangible assets' fair value being less than their carrying value. Additionally, a 50 basis point decrease in the terminal growth rate used for each of our indefinite-lived intangible assets' would also not have resulted in any of our indefinite-lived intangible assets' fair value being less than their carrying value. 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. The weighted average remaining life for finite-lived intangible assets at March 31, 2020 was approximately 10.9 years, and the amortization expense for the year ended March 31, 2020 was $19.6 million. At March 31, 2020, 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
2021 | 19,606 |
2022 | 19,605 |
2023 | 19,605 |
2024 | 19,578 |
2025 | 17,535 |
Thereafter | 118,131 |
| $ | 214,060 |

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