Company: PBH
Filing Date: 2025-05-09
Form Type: 10-K
Source: 0001295947-25-000017
Chunk: 111

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-05-09
Form: 10-K
Item: Item 8
Chunk 111
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.As part of our annual impairment test conducted on February 28, 2025, we recognized impairment charges for indefinite-lived intangible assets totaling $6.6 million.  These charges pertain to non-strategic indefinite-lived intangible assets, reflecting a deliberate shift in sales toward other strategic brands within our portfolio.  Of the $6.6 million impairment, $4.1 million was 

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associated with our North American OTC Healthcare segment, while $2.4 million impacted our International OTC Healthcare segment.Additionally, our analysis as of February 28, 2025 confirmed that all other indefinite-lived intangible assets had a fair value exceeding their carrying value by at least 10%.Our analysis at February 28, 2025 concluded that the fair value of several non-strategic finite-lived intangible assets did not exceed their carrying values, and as such, impairment charges of $5.9 million were recorded. These charges relate to non-strategic finite-lived intangible assets, driven by a deliberate shift in sales toward other strategic brands within our portfolio.   The impairments were predominantly associated with our North American OTC Healthcare segment.We performed a sensitivity analysis of our weighted average cost of capital, and we determined that a 50-basis point increase in the weighted average cost of capital used to value all of our indefinite-lived intangible assets would have resulted in an additional impairment charge of $1.4 million.  Additionally, a 50-basis point decrease in the terminal growth rate used for each of our indefinite-lived intangible assets would have resulted in an additional impairment charge of $1.9 million.The weighted average remaining life for finite-lived intangible assets at March 31, 2025 was approximately 8.8 years, and the amortization expense for the year ended March 31, 2025 was $18.3 million.  At March 31, 2025, finite-lived intangible assets are expected to be amortized over their estimated useful lives, which ranges from a period of 10 to 24 years, and the estimated amortization expense for each of the five succeeding years and periods thereafter is as follows (in thousands):(In thousands)Year Ending March 31,Amount2026$17,192 202715,602 202813,277 202913,277 203013,277 Thereafter85,739  $158,364 

7.     Leases

The components of lease expense for