EnerSys
For the period ended Mar 31, 2024. Filed May 22, 2024.
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FY2024 · Filed May 22, 2024
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7. Goodwill and Other Intangible Assets
- Goodwill and Other Intangible Assets
Other Intangible Assets
Information regarding the Company’s other intangible assets are as follows:
| March 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| GrossAmount | AccumulatedAmortization | NetAmount | GrossAmount | AccumulatedAmortization | NetAmount | |
| Indefinite-lived intangible assets: | ||||||
| Trademarks | $131,167 | $(953) | $130,214 | $144,702 | $(953) | $143,749 |
| Finite-lived intangible assets: | ||||||
| Customer relationships | 295,215 | (147,833) | 147,382 | 295,293 | (130,262) | 165,031 |
| Non-compete | 2,825 | (2,825) | — | 2,825 | (2,825) | — |
| Technology | 96,708 | (55,969) | 40,739 | 96,713 | (47,585) | 49,128 |
| Trademarks | 9,554 | (8,482) | 1,072 | 8,946 | (6,442) | 2,504 |
| Licenses | 1,196 | (1,196) | — | 1,196 | (1,196) | — |
| Total | $536,665 | $(217,258) | $319,407 | $549,675 | $(189,263) | $360,412 |
The Company’s amortization expense related to finite-lived intangible assets was $27,993, $30,748, and $33,294, for the years ended March 31, 2024, 2023 and 2022, respectively. The expected amortization expense based on the finite-lived intangible assets as of March 31, 2024, is $26,574 in fiscal 2025, $25,646 in fiscal 2026, $24,844 in fiscal 2027, $24,280 in fiscal 2028 and $22,451 in fiscal 2029.
Goodwill
The following table presents the changes in the carrying amount of goodwill by segment during fiscal 2023 and 2024:
| Energy Systems | Motive Power | Specialty | Total | |
|---|---|---|---|---|
| Balance at March 31, 2022 | $279,461 | $323,303 | $97,876 | $700,640 |
| Foreign currency translation adjustment | (21,257) | (1,773) | (895) | (23,925) |
| Balance at March 31, 2023 | $258,204 | $321,530 | $96,981 | $676,715 |
| Acquisitions | — | 4,390 | — | 4,390 |
| Foreign currency translation adjustment | 807 | 798 | 224 | 1,829 |
| Balance at March 31, 2024 | $259,011 | $326,718 | $97,205 | $682,934 |
Impairment of goodwill, finite and indefinite-lived intangibles
Goodwill is tested annually for impairment during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances that indicate goodwill is more likely than not impaired. The Company did not record any impairment relating to its goodwill during fiscal 2024, 2023, and 2022.
During the fiscal year 2024 and 2023, the Company recorded non-cash charges of $13,619 and $480, respectively, related to impairment of indefinite-lived trademarks under the caption “Impairment of indefinite-lived intangibles” in the Consolidated Statements of Income. Management completed its evaluation of key inputs used to estimate the fair value of its indefinite-lived trademarks and determined that an impairment charge was appropriate.
The Company estimated tax-deductible goodwill to be approximately $78,147 and $86,709 as of March 31, 2024 and 2023, respectively.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.