XML 38 R25.htm IDEA: XBRL DOCUMENT v3.22.1
Goodwill and Other Intangible Assets, Net
12 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net
The following summarizes the changes in the Company's goodwill and other intangible assets, net: 

Amortizable Intangibles
GoodwillCustomer RelationshipsProduction and Supply ContractsTechnologyLicensesTrade NamesTotal
Weighted average remaining useful life in years as of March 31, 202210.300.005.800.0012.42
March 31, 2020 (Predecessor)
Gross carrying amount$— $30,931 $3,676 $3,303 $27,664 $374 $65,948 
Additions6,120 — — — — — 6,120 
Amortization expense— (1,675)(71)(497)(980)(25)(3,248)
Impact of foreign currency translation— — — 41 2,183 — 2,224 
Fresh Start Adjustment(6,120)(29,256)(3,605)(2,847)(28,867)(349)(71,044)
August 31, 2020 (Predecessor)$— $— $— $— $— $— $— 
September 1, 2020 (Successor)$37,935 $29,200 $— $11,000 $19,000 $11,800 $108,935 
Additions— — — 4,080 — — 4,080 
Amortization expense— (1,470)— (2,222)(924)(497)(5,113)
Deconsolidation of Canadian Cannabis Subsidiaries— — — — (18,076)(474)(18,550)
Impairment(1,082)— — — — — (1,082)
Net March 31, 2021 (Successor)$36,853 $27,730 $— $12,858 $— $10,829 $88,270 
Additions— — — 840 — — 840 
Amortization expense— (2,427)— (2,227)— (807)(5,461)
Disposition of Humble Juice (1)
(4,667)(1,735)— — — — (6,402)
Impairment (2)
(32,186)— — — — — (32,186)
March 31, 2022 (Successor)$— $23,568 $— $11,471 $— $10,022 $45,061 
(1) See "Note 13. Acquisitions and Dispositions" for additional information.
(2) $372 of the impairment occurred during the three-month period ended December 31, 2021. The remaining $31,814 of impairment occurred during the three-month period ended March 31, 2022.

Goodwill
As of January 1, 2022, the Company performed its annual assessment of goodwill for its reporting units. The assessment of qualitative factors indicated that it was more likely than not that the fair value of each reporting unit was less than its carrying value primarily due to a sustained decline in the implied value of the Company's long-term debt and equity based on public trading since the emergence from the Chapter 11 Cases on August 24, 2020, as well as uncertainty in the Company's estimate of timing for future operating results due to the recent economic effects of the COVID-19 pandemic, including related variants. As a result, the Company performed a quantitative impairment test by comparing the fair value of each reporting unit to its carrying value. The fair value for each reporting unit was determined using the DCF method of the income approach. The quantitative impairment test conducted for each reporting unit concluded that the fair value of each reporting unit was less than its carrying value. The excess of carrying value over fair value for each reporting unit exceeded the amount of goodwill that was allocated to the reporting unit, leading the Company to record a full impairment of goodwill at each reporting unit as follows:
Three months ended
March 31, 2022
Leaf - Africa$8,341 
Leaf - Asia6,311 
Leaf - Europe5,566 
Leaf - North America3,901 
Leaf - South America5,730 
E-liquids1,965 
Total$31,814 

Other Intangible Assets, Net
The following summarizes the estimated intangible asset amortization expense for the next five years and beyond:

For Fiscal Years EndedCustomer Relationships
Technology(1)
Trade NamesTotal
2023$2,298 $1,970 $807 $5,075 
20242,298 2,138 807 5,243 
20252,298 1,987 807 5,092 
20262,298 1,713 807 4,818 
20272,298 1,546 807 4,651 
Thereafter12,078 2,117 5,987 20,182 
$23,568 $11,471 $10,022 $45,061 
(1) Estimated amortization expense for technology is based on costs accumulated as of March 31, 2022. These estimates will change as new costs are incurred and until the software is placed into service.