Goodwill

9 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

A reconciliation of the activity affecting goodwill by operating segment is as follows:


(In thousands)		North American OTC Healthcare		International OTC Healthcare		Consolidated
Balance - March 31, 2022
	Goodwill	$	712,002	$	32,272	$	744,274
	Accumulated impairment loss	(163,711)		(1,587)		(165,298)
Balance - March 31, 2022		548,291		30,685		578,976


	Adjustment related to acquisition	(550)		—		(550)

	Effects of foreign currency exchange rates	—		(1,824)		(1,824)
Balance - December 31, 2022
	Goodwill	711,452		30,448		741,900
	Accumulated impairment loss	(163,711)		(1,587)		(165,298)
Balance - December 31, 2022		$	547,741	$	28,861	$	576,602

As discussed in Note 2, on July 1, 2021, we completed the acquisition of certain assets from Akorn. In connection with this acquisition, we recorded goodwill of $1.1 million based on the amount by which the purchase price exceeded the estimate of the fair value of the net assets acquired.

On an annual basis during the fourth quarter of each fiscal year, or more frequently if conditions indicate that the carrying value of the asset may not be recoverable, management performs a review of the values assigned to goodwill and tests for impairment. The date of our annual impairment review was February 28, 2022, and we recorded impairment charges to goodwill of $0.3 million in our March 31, 2022 financial statements. We utilized the discounted cash flow method to estimate the fair value of our reporting units as part of the goodwill impairment test. We also considered our market capitalization at February 28, 2022 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, supply chain constraints, labor shortages, and inflation. 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. For example, the significant increase in interest rates over the last fiscal year, if sustained at year-end, will significantly impact the discount rate we use in our year-end analysis, impacting the final analysis of many of our brands. If these assumptions are adversely affected, we may be required to record impairment charges in the future. We continuously monitor events that could trigger an interim impairment analysis, which included the impact of COVID-19, supply chain constraints, labor shortages, and inflation for the period ended December 31, 2022.

As of December 31, 2022, we determined no events have occurred that would indicate potential impairment of goodwill.