Intangible Assets, net

6 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

A reconciliation of the activity affecting intangible assets, net is as follows:


(In thousands)	Indefinite- Lived Trademarks		Finite-Lived Trademarks and Customer Relationships		Totals
Gross Carrying Amounts
Balance — March 31, 2021	$	2,281,988	$	389,347	$	2,671,335

Additions	204,100		24,870		228,970


Effects of foreign currency exchange rates	(4,498)		(139)		(4,637)
Balance — September 30, 2021	2,481,590		414,078		2,895,668

Accumulated Amortization
Balance — March 31, 2021	—		195,606		195,606

Additions	—		10,228		10,228

Effects of foreign currency exchange rates	—		(86)		(86)
Balance — September 30, 2021	—		205,748		205,748

Intangible assets, net - September 30, 2021	$	2,481,590	$	208,330	$	2,689,920

Amortization expense was $5.3 million and $10.2 million for the three and six months ended September 30, 2021, respectively, and $4.9 million and $9.8 million for the three and six months ended September 30, 2020, respectively.

As discussed in Note 2, on July 1, 2021, we completed the acquisition of Akorn. In connection with this acquisition, we allocated $229.0 million to intangible assets based on our preliminary analysis.

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 the periods thereafter is as follows (in thousands):


(In thousands)
Year Ending March 31,	Amount
2022 (remaining six months ended March 31, 2022)	$	10,721
2023	21,413
2024	21,379
2025	19,287
2026	16,904
Thereafter	118,626
	$	208,330

Under accounting guidelines, indefinite-lived assets are not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below the carrying amount. On February 28, 2021, the date of our annual impairment review, there were no indicators of impairment as a result of the analysis and, accordingly, no additional impairment charge was taken on our March 31, 2021 financial statements. Additionally, at each reporting period, an evaluation must be made to determine whether events and circumstances continue to support an indefinite useful life. Intangible assets with finite lives are amortized over their respective estimated useful lives and are also tested for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and exceeds its fair value.

We utilize 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.

As of September 30, 2021, no events have occurred that would indicate potential impairment of intangible assets.