Goodwill

12 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2018, 2019, and 2020:


(In thousands)	North American OTC Healthcare			International OTC Healthcare			Household Cleaning			Consolidated
Balance – March 31, 2018
Goodwill	$	711,104		$	32,919		$	71,405		$	815,428
Accumulated impairment losses	(130,170)			—			(65,160)			(195,330)
Balance - March 31, 2018	580,934			32,919			6,245			620,098


2019 Reductions:
Goodwill ^(a)	—			—			(71,405)			(71,405)
Accumulated impairment loss^(a)	—			—			65,160			65,160
Effects of foreign currency exchange rates	—			(1,729)			—			(1,729)
Impairment loss	(33,541)			—			—			(33,541)

Balance – March 31, 2019
Goodwill	711,104			31,190			—			742,294
Accumulated impairment losses	(163,711)		—	—		—	—		—	(163,711)
Balance - March 31, 2019	$	547,393		$	31,190		$	—		$	578,583


2020 Reductions:				—			—			—
Goodwill ^(b)	(750)			—			—			(750)

Effects of foreign currency exchange rates	—			(2,654)			—			(2,654)


Balance – March 31, 2020
Goodwill	710,354			28,536			—			738,890
Accumulated impairment losses	(163,711)			—			—			(163,711)
Balance - March 31, 2020	$	546,643		$	28,536		$	—		$	575,179

(a) As discussed in Note 2, on July 2, 2018, we sold our Household Cleaning segment. As a result, we decreased goodwill by $6.2 million, net of accumulated impairment charges.

(b) Amount relates to cash received from escrow associated with our acquisition of Fleet.

At February 29, 2020, in conjunction with the annual test for goodwill impairment, which coincides with our annual strategic planning process, there were no indicators of impairment under the analysis and accordingly, no impairment charge was taken.

At February 28, 2019, in conjunction with our annual test for goodwill impairment, we recorded an impairment charge of $33.5 million relating to our North American Oral Care reporting unit. The goodwill impairment was primarily a result of the DenTek and Efferdent/Effergrip tradename impairments discussed in Note 7.

We identify our reporting units in accordance with the FASB ASC Subtopic 280. The carrying value and fair value for intangible assets and goodwill for a reporting unit are calculated based on key assumptions and valuation methodologies previously discussed. The discounted cash flow methodology is a widely-accepted valuation technique utilized by market participants in the transaction evaluation process and has been applied consistently. We also considered our market capitalization at February 29, 2020 and February 28, 2019, as compared to the aggregate fair values of our reporting units, to assess the reasonableness of our estimates pursuant to the discounted cash flow methodology. 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, reductions in advertising and promotion, or the potential impacts of COVID-19 may require an impairment charge to be recorded in the future.

As a result of our analysis at February 29, 2020, all reporting units tested had a fair value that exceeded their carrying value by at least 10%. We performed a sensitivity analysis on our weighted average cost of capital and we determined that a 50 basis point increase in the weighted average cost of capital would not have resulted in any of our reporting unit’s fair value being less than their carrying value. Additionally, a 50 basis point decrease in the terminal growth rate used for each reporting unit would also not have resulted in any of our reporting unit's fair value being less than their carrying value.