XML 246 R14.htm IDEA: XBRL DOCUMENT
v3.23.1

Intangible Assets | 12 Months Ended
--- | ---
Mar. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Intangible Assets | Intangible Assets A reconciliation of the activity affecting intangible assets, net for each of 2023 and 2022 is as follows:
| Year Ended March 31, 2023
(In thousands) | Indefinite- Lived Tradenames |  | Finite-Lived Tradenames and Customer Relationships |  | Totals
Gross Carrying Amounts |  |  |  |  |
Balance – March 31, 2022 | $ | 2,476,559 |  |  | $ | 436,174 |  |  | $ | 2,912,733 |
Tradename impairment | (298,664) |  |  | (22,748) |  |  | (321,412) |
Effects of foreign currency exchange rates | (8,993) |  |  | (2,308) |  |  | (11,301) |
Balance – March 31, 2023 | $ | 2,168,902 |  |  | $ | 411,118 |  |  | $ | 2,580,020 |
Accumulated Amortization |  |  |  |  |
Balance – March 31, 2022 | $ | — |  |  | $ | 216,098 |  |  | $ | 216,098 |
Additions | — |  |  | 22,266 |  |  | 22,266 |
Effects of foreign currency exchange rates | — |  |  | (237) |  |  | (237) |
Balance – March 31, 2023 | $ | — |  |  | $ | 238,127 |  |  | $ | 238,127 |
Intangible assets, net – March 31, 2023 | $ | 2,168,902 |  |  | $ | 172,991 |  |  | $ | 2,341,893 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |
North American OTC Healthcare | $ | 2,092,852 |  |  | $ | 154,552 |  |  | $ | 2,247,404 |
International OTC Healthcare | 76,050 |  |  | 18,439 |  |  | 94,489 |
Intangible assets, net – March 31, 2023 | $ | 2,168,902 |  |  | $ | 172,991 |  |  | $ | 2,341,893 |
| Year Ended March 31, 2022
(In thousands) | Indefinite- Lived Tradenames |  | Finite-Lived Tradenames and Customer Relationships |  |  | Totals
Gross Carrying Amounts |  |  |  |  |  |
Balance – March 31, 2021 | $ | 2,281,988 |  |  | $ | 389,347 |  |  |  | $ | 2,671,335 |
Additions (a) | 195,900 |  |  | 47,642 |  |  |  | 243,542 |
Tradename impairment | — |  |  | (1,700) |  |  |  | (1,700) |
Effects of foreign currency exchange rates | (1,329) |  |  | 885 |  |  |  | (444) |
Balance – March 31, 2022 | $ | 2,476,559 |  |  | $ | 436,174 |  |  |  | $ | 2,912,733 |
Accumulated Amortization |  |  |  |  |  |
Balance – March 31, 2021 | $ | — |  |  | $ | 195,606 |  |  |  | $ | 195,606 |
Additions | — |  |  | 21,499 |  |  |  | 21,499 |
Tradename impairment | — |  |  | (983) |  |  |  | (983) |
Effects of foreign currency exchange rates | — |  |  | (24) |  |  |  | (24) |
Balance – March 31, 2022 | $ | — |  |  | $ | 216,098 |  |  |  | $ | 216,098 |
Intangible assets, net – March 31, 2022 | $ | 2,476,559 |  |  | $ | 220,076 |  |  |  | $ | 2,696,635 |
Intangible Assets, net by Reportable Segment: |  |  |  |  |  |
North American OTC Healthcare | $ | 2,391,517 |  |  | $ | 198,353 |  |  |  | $ | 2,589,870 |
International OTC Healthcare | 85,042 |  |  | 21,723 |  |  |  | 106,765 |
Intangible assets, net – March 31, 2022 | $ | 2,476,559 |  |  | $ | 220,076 |  |  |  | $ | 2,696,635 |
(a) On July 1, 2021, we completed the acquisition of certain assets from Akorn (see Note 2) and on December 15, 2021, our Australian subsidiary acquired the rights to the Zaditen brand in certain territories from Novartis Pharma AG. In connection with these acquisitions, we allocated $225.4 million to intangible assets for Akorn and $18.1 million for Zaditen. 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 in the analysis include the discount rate, 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 supply chain constraints, labor shortages, or inflation, we may be required to record additional impairment charges in the future. 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. At February 28, 2022, in conjunction with the annual test for impairment of intangible assets, we recorded an impairment charge of $0.7 million. In connection with our long-term planning, two non-core brands in our North American OTC Healthcare segment were discontinued and therefore the related finite-lived intangible assets were written off. As a result of our annual impairment test at February 28, 2023, the fair values of three of our indefinite-lived intangible assets, Summer’s Eve, DenTek and TheraTears, did not exceed the carrying values and, as such, impairment charges totaling $298.7 million were recorded. The impairment charges were primarily a result of an overall increase in the discount rate used to value the brands, as well as in the case of Summer’s Eve, our reassessment of the long-term sales projections of this brand during our annual planning cycle. The indefinite-lived intangible assets impaired are all part of our North American OTC Healthcare segment. Our analysis at February 28, 2023 determined that all other indefinite-lived intangible assets tested had a fair value that exceeded their carrying value by at least 10%, with the exception of Monistat within our North American Women’s Health reporting unit. 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 all of our indefinite-lived intangible assets would have resulted in an additional impairment of $46.5 million. Additionally, a 50-basis point decrease in the terminal growth rate used for each of our indefinite-lived intangible assets' would have resulted in an additional impairment of $23.3 million. Our analysis at February 28, 2023 concluded that the fair value of several of our non-core finite-lived intangible assets did not exceed their carrying values, and as such, impairment charges of $22.7 million were recorded. The impairment charges were the result of our reassessment of the long-term sales projections for the associated non-core brands during our annual planning cycle, the largest of which pertains to the strategic exit of our DenTek private label business. The finite-lived trademarks impaired are all part of the North American OTC Healthcare segment. The weighted average remaining life for finite-lived intangible assets at March 31, 2023 was approximately 8.7 years, and the amortization expense for the year ended March 31, 2023 was $22.3 million. At March 31, 2023, finite-lived intangible assets are expected to be amortized over their estimated useful lives, which ranges from a period of 10 to 25 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
2024 | $ | 19,784 |
2025 | 18,099 |
2026 | 16,149 |
2027 | 14,557 |
2028 | 12,221 |
Thereafter | 92,181 |
| $ | 172,991 |

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IntangibleAssetsNetExcludingGoodwillAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration