Intangible Assets

12 Months Ended

Mar. 31, 2021

Intangible Assets, Net (Excluding Goodwill) [Abstract]

A reconciliation of the activity affecting intangible assets, net for each of 2021 and 2020 is as follows:


	Year Ended March 31, 2021
(In thousands)	Indefinite- Lived Tradenames		Finite-Lived Tradenames and Customer Relationships		Totals
Gross Carrying Amounts
Balance – March 31, 2020	$	2,265,331	$	389,801	$	2,655,132



Tradename impairment	—		(1,186)		(1,186)
Effects of foreign currency exchange rates	16,657		732		17,389
Balance – March 31, 2021	$	2,281,988	$	389,347	$	2,671,335

Accumulated Amortization
Balance – March 31, 2020	$	—	$	175,741	$	175,741
Additions	—		19,580		19,580

Effects of foreign currency exchange rates	—		285		285
Balance – March 31, 2021	$	—	$	195,606	$	195,606

Intangible assets, net – March 31, 2021	$	2,281,988	$	193,741	$	2,475,729

Intangible Assets, net by Reportable Segment:
North American OTC Healthcare	$	2,195,617	$	190,462	$	2,386,079
International OTC Healthcare	86,371		3,279		89,650

Intangible assets, net – March 31, 2021	$	2,281,988	$	193,741	$	2,475,729


	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.

During the third quarter of 2021, we determined that the fair value of one of our finite-lived intangible assets in our International OTC Healthcare segment, Painstop, did not exceed its carrying amount. As such, we recorded an impairment charge of $1.2 million. The decline in the fair value of Painstop was primarily related to a decline in expected future sales due to a regulatory change that now requires Painstop to be prescribed by physicians rather than sold over-the-counter direct to consumers.

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 assumptions subject to significant uncertainties include the discount rate utilized in the analyses, as well as future sales, gross margins and advertising and marketing expenses. 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. 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 marketing expenses, or the potential impacts of COVID-19, we may be required to record impairment charges in the future.

At February 28, 2021, in conjunction with the annual test for impairment of intangible assets, there were no additional indicators of impairment under the analysis, and accordingly, no additional 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 28, 2021, 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, 2021 was approximately 10.0 years, and the amortization expense for the year ended March 31, 2021 was $19.6 million. At March 31, 2021, finite-lived intangible assets are expected to be amortized over their estimated useful lives, 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
2022	$	19,667
2023	19,667
2024	19,634
2025	17,589
2026	15,317
Thereafter	101,867
	$	193,741