James Hardie Industries plc Goodwill & Intangibles Disclosure
| (Millions of US dollars) | Europe | Siding & Trim | Deck, Rail & Accessories | Total | |||||||||||||||||||
Balance - March 31, 2024 | $ | 192.6 | $ | — | $ | — | $ | 192.6 | |||||||||||||||
| Foreign exchange impact | 1.1 | — | — | 1.1 | |||||||||||||||||||
Balance - March 31, 2025 | $ | 193.7 | $ | — | $ | — | $ | 193.7 | |||||||||||||||
| Foreign exchange impact | 11.3 | — | — | 11.3 | |||||||||||||||||||
| Acquisition of The AZEK Company | — | 1,141.2 | 3,434.2 | 4,575.4 | |||||||||||||||||||
Balance - March 31, 2026 | $ | 205.0 | $ | 1,141.2 | $ | 3,434.2 | $ | 4,780.4 | |||||||||||||||
| March 31 | |||||||||||
| (Millions of US dollars) | 2026 | 2025 | |||||||||
| Trade names | $ | 118.2 | $ | 111.6 | |||||||
| Other | 7.4 | 7.4 | |||||||||
| Total | $ | 125.6 | $ | 119.0 | |||||||
March 31, 2026 | ||||||||||||||||||||
| (Millions of US dollars) | Lives in Years | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||
| Customer Relationships | 2 to 18 | $ | 2,880.3 | $ | (165.8) | $ | 2,714.5 | |||||||||||||
| Trade Names | 5 to 15 | $ | 330.0 | $ | (19.6) | $ | 310.4 | |||||||||||||
| Technology | 10 | $ | 210.0 | $ | (20.4) | $ | 189.6 | |||||||||||||
| Total | $ | 3,420.3 | $ | (205.8) | $ | 3,214.5 | ||||||||||||||
March 31, 2025 | ||||||||||||||||||||
| (Millions of US dollars) | Lives in Years | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||
| Customer Relationships | 2 to 13 | $ | 47.5 | $ | (20.9) | $ | 26.6 | |||||||||||||
| Total | $ | 47.5 | $ | (20.9) | $ | 26.6 | ||||||||||||||
Years ended March 31 (Millions of US dollars): | |||||
Fiscal 2027 | $ | 315.4 | |||
Fiscal 2028 | 332.2 | ||||
Fiscal 2029 | 345.5 | ||||
Fiscal 2030 | 332.5 | ||||
Fiscal 2031 | 295.2 | ||||
| Thereafter | 1,593.7 | ||||
| Total | $ | 3,214.5 | |||
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.