Goodwill

12 Months Ended

Mar. 31, 2022

Goodwill [Abstract]

Goodwill

Note 14:  Goodwill

Effective July 1, 2021, the Company aligned the data center businesses previously managed by and reported within the CIS segment under the BHVAC segment; see Note 22 for additional information.  As a result of this segment realignment, the Company reassigned a total of $32.5 million of goodwill from a reporting unit within the CIS segment to the reporting units within the BHVAC segment using the relative fair value approach.  To determine the amount of goodwill to be reassigned, the Company compared the estimated fair values of the businesses transferred to the BHVAC segment with the CIS reporting unit immediately prior to the segment change.  The Company estimated the fair values of the affected businesses based upon the present value of their estimated future cash flows.  The Company’s determination of fair value involved judgment and the use of significant estimates and assumptions, including assumptions regarding the revenue growth rates and operating profit margins used to calculate estimated future cash flows and risk-adjusted discount rates. In addition, in conjunction with the goodwill reassignment evaluation, the Company tested its reporting units for potential impairment during the second quarter of fiscal 2022 and concluded that the estimated fair value of each reporting unit exceeded its respective carrying value.

The following table presents a rollforward of the carrying value of goodwill from March 31, 2020 to March 31, 2022.  The Company has revised the March 31, 2021 and 2020 goodwill balances to be comparable with the current segment structure.

	BHVAC			CIS			Total
Balance, March 31, 2020	$	44.7		$	121.4		$	166.1
Effect of exchange rate changes		2.3			2.3			4.6
Balance, March 31, 2021		47.0			123.7			170.7
Effect of exchange rate changes		(1.6	)		(1.0	)		(2.6	)
Balance, March 31, 2022	$	45.4		$	122.7		$	168.1

The Company tests goodwill for impairment annually, as of March 31, or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value.  To test goodwill for impairment, the Company determines the fair value of each reporting unit based upon the present value of estimated future cash flows and compares the fair value of each reporting unit with its carrying value.  The Company’s determination of fair value involves judgment and the use of significant estimates and assumptions, including assumptions regarding the revenue growth rates and operating profit margins used to calculate estimated future cash flows and risk-adjusted discount rates.

As a result of its annual goodwill impairment tests performed as of March 31, 2022, the Company determined that the fair value of each of the reporting units within its BHVAC and CIS segments exceeded their respective book values.

In fiscal 2020, the Company determined that the goodwill recorded within its Automotive segment was fully impaired and recorded a $0.5 million impairment charge as a result.

At both March 31, 2022 and 2021, accumulated goodwill impairment losses totaled $31.6 million and $9.2 million, within the HDE and Automotive segments, respectively.