Prestige Consumer Healthcare Inc.PBH

Prestige Consumer Healthcare Inc. Goodwill & Intangibles Disclosure

10-KFiled May 14, 20263 min read
Goodwill
The following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2024, 2025 and 2026:
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Balance – March 31, 2024   
Goodwill$711,452 $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 
Additions (b)
52,772 — 52,772 
Effects of foreign currency exchange rates(721)1,633 912 
Balance – March 31, 2026   
Goodwill763,503 31,709 795,212 
Accumulated impairment losses(212,516)(1,587)(214,103)
Balance - March 31, 2026$550,987 $30,122 $581,109 
(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.
(b) As discussed in Note 2, on December 18, 2025, we acquired Pillar5, one of our Clear Eyes suppliers. In connection with this acquisition, we preliminarily allocated $52.8 million to goodwill.
At February 29, 2024, February 28, 2025, and February 28, 2026, 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, 2026, 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, 2026 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.

Historical Timeline

Fiscal YearFiled
2026May 14, 2026Showing above
2024May 15, 2024
2023May 5, 2023
2022May 6, 2022
2021May 7, 2021
2020May 8, 2020
2019May 13, 2019
2018May 10, 2018
2017May 17, 2017
2016May 17, 2016

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.

Other Available Disclosures

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