Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.22.4
Goodwill and Other Intangible Assets
 9 Months Ended
Dec. 31, 2022
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 December 31, 2022, is as follows:
  United States and Latin America Canada Europe, Middle East and Africa Asia-Pacific Total
Balance as of March 31, 2022 $ 62,725  $ 122,318  $ 19,087  $ 8,624  $ 212,754 
Goodwill acquired(1)
18,620  —  —  —  18,620 
Foreign currency translation impact —  (9,465) (714) —  (10,179)
Balance as of December 31, 2022 $ 81,345  $ 112,853  $ 18,373  $ 8,624  $ 221,195 
(1) - Refer to Note 2, "Acquisition," for more information on the goodwill acquired through our recent acquisition of Powerblanket.
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 2022, we identified the disruptions to our business from the ongoing Russo-Ukrainian war as an indicator of potential impairments in our EMEA reporting unit. We performed our annual goodwill, intangible and tangible impairment assessments including our indefinite life trademarks. Based on the goodwill impairment assessment, there was no impairment of goodwill, intangible or tangible assets or our indefinite life trademarks as of the respective reporting periods.
In the third quarter of fiscal 2023, we identified a triggering event in our EMEA reportable segment. The depressed economic conditions resulting from the Russo-Ukrainian war as well as the related sanctions were contributing factors in our decision to test our EMEA reportable segment under ASC 350 and ASC 360. Based on the results of our quantitative goodwill impairment assessment, there was no impairment of goodwill or intangible assets. We did, however, segregate our Russian subsidiary as a new asset group for long-lived asset impairment-testing purposes and determined that the assets relating to our Russian subsidiary were not recoverable under ASC 360. We recorded an impairment charge of $756, which includes Property, plant and equipment, net as well as Operating lease right-of-use assets. Refer to Note 4," Restructuring and Other Charges/(Income)," for more information.
Separately, in the first quarter of fiscal 2023, we added $18,620 of goodwill as part of our recent acquisition of Powerblanket, which is discussed further in Note 2, "Acquisition." The newly acquired goodwill is allocated to our US-LAM segment. We believe the goodwill acquired in this recent acquisition represents synergies from combining operations in addition to the already identifiable assets. We anticipate being able to deduct goodwill for tax purposes.
We will continue to monitor our reporting units' goodwill and asset valuations and test for potential impairments, as appropriate. 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.
Our total intangible assets consisted of the following:
Gross Carrying Amount at December 31, 2022 Accumulated Amortization Net Carrying Amount at December 31, 2022 Gross Carrying Amount at March 31, 2022 Accumulated Amortization Net Carrying Amount at March 31, 2022
Products $ 61,510  $ (31,780) $ 29,730  $ 66,669  $ (29,445) $ 37,224 
Trademarks 47,288  (1,888) 45,400  45,222  (1,517) 43,705 
Developed technology 14,831  (6,297) 8,534  9,946  (5,933) 4,013 
Customer relationships 113,041  (102,105) 10,936  113,413  (103,900) 9,513 
Certifications 439  —  439  453  —  453 
Contract-based 1,280  (157) 1,123  —  —  — 
Total $ 238,389  $ (142,227) $ 96,162  $ 235,703  $ (140,795) $ 94,908