Goodwill

12 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2019, 2020, and 2021:


(In thousands)	North American OTC Healthcare		International OTC Healthcare		Consolidated
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 (a)	(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





Effects of foreign currency exchange rates	—		4,057		4,057
Impairment loss	—		(1,157)		(1,157)

Balance – March 31, 2021
Goodwill	710,354		32,593		742,947
Accumulated impairment losses	(163,711)		(1,157)		(164,868)
Balance - March 31, 2021	$	546,643	$	31,436	$	578,079

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

At February 28, 2021, in conjunction with the annual test for goodwill impairment, which coincides with our annual strategic planning process, we recorded an impairment charge of $1.2 million to adjust the carrying amount of goodwill related to our International Analgesics reporting unit in our International OTC Healthcare segment to its fair value. The goodwill impairment was a result of the Painstop tradename impairment discussed in Note 7.

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 28, 2021 and February 29, 2020, 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 related to future sales, gross margins, and advertising and marketing expenses, which can be impacted by increases in competition, changing consumer preferences, technical advances, or the potential impacts of COVID-19. The discount rate assumption may be influenced by such factors as changes in interest rates and rates of inflation, which can have an impact on the determination of fair value. If these assumptions are adversely affected, we may be required to record impairment charges in the future.

As a result of our analysis at February 28, 2021, all reporting units, other than our International Analgesics reporting unit as discussed above, 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 other reporting units' 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 other reporting units' fair value being less than their carrying value.