XML 27 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Goodwill
 12 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2023, 2024 and 2025:
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Balance – March 31, 2023   
Goodwill$711,452 $30,204 $741,656 
Accumulated impairment losses(212,516)(1,587)(214,103)
Balance - March 31, 2023$498,936 $28,617 $527,553 
Additions (a)
— 621 621 
Effects of foreign currency exchange rates— (441)(441)
Balance – March 31, 2024   
Goodwill711,452 30,384 741,836 
Accumulated impairment losses(212,516)(1,587)(214,103)
Balance - March 31, 2024$498,936 $28,797 $527,733 
Adjustment related to acquisition (a)
— 309 309 
Effects of foreign currency exchange rates— (617)(617)
Balance – March 31, 2025   
Goodwill711,452 30,076 741,528 
Accumulated impairment losses(212,516)(1,587)(214,103)
Balance - March 31, 2025$498,936 $28,489 $527,425 
(a) On January 8, 2024, our Australian subsidiary acquired one of its suppliers. In connection with this acquisition, we preliminarily allocated $0.6 million to goodwill in fiscal 2024 and made an adjustment of $0.3 million to the preliminary amount in fiscal 2025.
At February 28, 2023, in conjunction with the annual test for goodwill impairment, which coincided with our annual strategic planning process, we recorded an impairment charge of $48.8 million to adjust the carrying amount of goodwill related to our North American Women's Health and North American Oral Care reporting units. The impairment charges were primarily a result of increased discount rates due to macroeconomic conditions.

At February 29, 2024 and February 28, 2025, in conjunction with the annual tests for goodwill impairment, which coincided with our annual strategic planning process, the estimated fair value exceeded the carrying value for all reporting units and accordingly, no impairment charge was taken in either period.

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. 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, 2025 and February 29, 2024, 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, 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. If these assumptions are adversely affected, we may be required to record additional impairment charges in the future.

Our analysis at February 28, 2025 determined that all reporting units 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 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 not have resulted in any of our reporting units' fair value being less than their carrying value.