Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.21.2
Goodwill and Other Intangible Assets
 6 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The carrying amount of goodwill by operating segment as of September 30, 2021 is as follows:
  United States and Latin America Canada Europe, Middle East and Africa Asia-Pacific Total
Balance as of March 31, 2021 $ 62,725  $ 121,550  $ 20,139  $ 8,624  $ 213,038 
Foreign currency translation impact —  (1,584) (237) —  (1,821)
Balance as of September 30, 2021 $ 62,725  $ 119,966  $ 19,902  $ 8,624  $ 211,217 
Goodwill is tested for impairment on an annual basis and between annual tests if indicators of potential impairment exist. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If required, we also perform a quantitative analysis using the income approach, based on discounted future cash flows, which are derived from internal forecasts and economic expectations, and the market approach, which is based on market multiples of guideline public companies. The most significant inputs in the Company's quantitative goodwill impairment tests are projected financial information, the weighted average cost of capital and market multiples for similar transactions. Our annual impairment test is performed during the fourth quarter of our fiscal year.
In the fourth quarter of fiscal 2021, we identified the prolonged economic effects of the COVID-19 pandemic to be an indicator of potential asset impairments in our reporting units. We performed our annual goodwill, intangible and tangible impairment assessments including our indefinite life trademarks. We analyzed our reporting units utilizing the income approach, based on discounted future cash flows, which are derived from internal forecasts and economic expectations, and the market approach, based on market multiples of guideline public companies. The impairment test for indefinite life trademarks utilized a relief from royalty analysis based on the cash flow streams attributable to the Thermon trademark. Based on the goodwill impairment assessment, the estimated fair value of our reporting units exceeded the carrying value. As such, there was no impairment of goodwill, intangible or tangible assets or our indefinite life trademarks as of the respective reporting periods. The most significant inputs in the Company's impairment test are the projected financial information, the weighted average cost of capital and market multiples for similar transactions. If overall economic conditions, our key end markets, or factors specific to the Company deteriorate significantly, it could negatively impact the Company's future impairment tests. We will continue to monitor our reporting units' goodwill and asset valuations and test for potential impairments.
No triggering events were identified during the three month period ended September 30, 2021 which would indicate that the fair value of any of our reporting units was less than its carrying amount.

Our total intangible assets consisted of the following:
Gross Carrying Amount at September 30, 2021 Accumulated Amortization Net Carrying Amount at September 30, 2021 Gross Carrying Amount at March 31, 2021 Accumulated Amortization Net Carrying Amount at March 31, 2021
Products $ 65,387  $ (25,610) $ 39,777  $ 66,250  $ (22,635) $ 43,615 
Trademarks 45,308  (1,403) 43,905  45,581  (1,289) 44,292 
Developed technology 9,966  (5,697) 4,269  10,028  (5,486) 4,542 
Customer relationships 113,103  (103,049) 10,054  113,789  (102,911) 10,878 
Certifications 454  —  454  457  —  457 
Total $ 234,218  $ (135,759) $ 98,459  $ 236,105  $ (132,321) $ 103,784