{"url_path":"/sec/pbh/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1295947/0001295947-26-000016-index.html","accession_number":"0001295947-26-000016","cik":"0001295947","ticker":"PBH","issuer_name":"Prestige Consumer Healthcare Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1295947/0001295947-26-000016-index.html","primary_entity_key":"0001295947","primary_entity_name":"Prestige Consumer Healthcare Inc."},"word_count":15450,"has_tables":true,"body_markdown":"ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA\n\n                   \n\nThe supplementary data required by this Item are described in Part IV, Item 15 of this Annual Report on Form 10-K and are presented beginning on page 87.\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\nPrestige Consumer Healthcare Inc.\n\nAudited Financial Statements\n\nMarch 31, 2026\n\nReport of Independent Registered Public Accounting Firm\nPricewaterhouseCoopers LLP ID 238\n[47](#if8a76e8349b147f082cbcbef00ff4c66_67)\n\nConsolidated Statements of Income and Comprehensive Income for each of the three years in the period ended March 31, 2026\n[50](#if8a76e8349b147f082cbcbef00ff4c66_70)\n\nConsolidated Balance Sheets at March 31, 2026 and 2025\n[51](#if8a76e8349b147f082cbcbef00ff4c66_73)\n\nConsolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended March 31, 2026\n[52](#if8a76e8349b147f082cbcbef00ff4c66_76)\n\nConsolidated Statements of Cash Flows for each of the three years in the period ended March 31, 2026\n[53](#if8a76e8349b147f082cbcbef00ff4c66_79)\n\nNotes to Consolidated Financial Statements\n[54](#if8a76e8349b147f082cbcbef00ff4c66_82)\n\nSchedule II—Valuation and Qualifying Accounts for the years ended March 31, 2026, 2025 and 2024\n[84](#if8a76e8349b147f082cbcbef00ff4c66_148)\n\nManagement's Annual Report on Internal Control over Financial Reporting\n\nManagement of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act).  Internal control over financial reporting is a process designed by, or under the supervision of the Chief Executive Officer and Chief Financial Officer and effected by the Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable, not absolute, assurance that the control objectives will be met.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate over time.\n\nManagement, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's internal control over financial reporting as of March 31, 2026.  In making its evaluation, management has used the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013 Framework).\n\nBased on management's assessment utilizing the 2013 Framework, management concluded that the Company's internal control over financial reporting was effective as of March 31, 2026.\n\nOn December 18, 2025, the Company acquired Pillar5 Pharma Inc. (\"Pillar5\"). The Company has excluded Pillar5's internal control over financial reporting as of March 31, 2026 from its assessment of and conclusion on the effectiveness of its internal control over financial reporting. Pillar5 is a wholly-owned subsidiary whose total assets and total revenues represent approximately 2.0% and 0.2%, respectively, of the related consolidated financial statement amounts as of and for the year ended March 31, 2026.\n\nPricewaterhouseCoopers LLP, an independent registered public accounting firm, has issued a report on the effectiveness of the Company's internal control over financial reporting as of March 31, 2026, which appears below.\n\nPrestige Consumer Healthcare Inc.\n\nMay 14, 2026\n\n46\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Board of Directors and Stockholders of\n\nPrestige Consumer Healthcare Inc.\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of Prestige Consumer Healthcare Inc. and its subsidiaries (the “Company”) as of March 31, 2026 and 2025, and the related consolidated statements of income and comprehensive income, of changes in stockholders’ equity and of cash flows for each of the three years in the period ended March 31, 2026, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 8. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nAs described in Management’s Report on Internal Control over Financial Reporting, management has excluded Pillar5 Pharma Inc. (“Pillar5”) from its assessment of and conclusion on the effectiveness of its internal control over financial reporting as of March 31, 2026, because it was acquired by the Company in a purchase business combination during 2026. We have also excluded Pillar5 from our audit of internal control over financial reporting. Pillar5 is a wholly-owned subsidiary whose total assets and total revenues represent approximately 2% and 0.2%, respectively, of the related consolidated financial statement amounts as of and for the year ended March 31, 2026.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally\n\n47\n\naccepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\nIndefinite-Lived Tradename Impairment Assessments – Summer’s Eve and Monistat\n\nAs described in Notes 1 and 7 to the consolidated financial statements, the Company’s consolidated indefinite-lived tradenames, net balance was $2,144 million as of March 31, 2026, of which a portion relates to the carrying values for Summer’s Eve and Monistat indefinite-lived tradenames. Indefinite-lived intangible assets are tested for impairment at the individual asset level at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Management utilized the excess earnings method to estimate the fair value of individual indefinite-lived intangible assets. The assumptions subject to significant uncertainties include the discount rate, as well as future sales, gross margins, and advertising and marketing expenses.\n\nThe principal considerations for our determination that performing procedures relating to the indefinite-lived tradename impairment assessments of the Summer’s Eve and Monistat tradenames is a critical audit matter are (i) the significant judgment by management when developing the fair value of the Summer’s Eve and Monistat indefinite-lived tradenames; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the discount rate, future sales, gross margins, and advertising and marketing expenses; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s indefinite-lived tradename impairment assessments, including controls over the valuation of the Summer’s Eve and Monistat indefinite-lived tradenames. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the Summer’s Eve and Monistat indefinite-lived tradenames; (ii) evaluating the appropriateness of the excess earnings method used by management; (iii) testing the completeness and accuracy of underlying data used in the excess earnings method; and (iv) evaluating the reasonableness of the significant assumptions used by management related to the discount rate, future sales, gross margins, and advertising and marketing expenses. Evaluating management’s assumptions related to future sales, gross margins, and advertising and marketing expenses involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the brands; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the excess earnings method and (ii) the reasonableness of the discount rate assumption.\n\nGoodwill Impairment Assessment – North American Women’s Health Reporting Unit\n\nAs described in Notes 1 and 6 to the consolidated financial statements, the Company’s consolidated goodwill balance was $581.1 million as of March 31, 2026, of which a significant portion relates to the carrying value for the North American Women’s Health reporting unit. Goodwill is tested for impairment at the reporting unit level, which is one level below the operating segment level. Goodwill is not amortized, although the carrying value is tested for impairment at least annually in the\n\n48\n\nfourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. An impairment loss is recognized if the carrying amount of the reporting unit exceeds its fair value. Management utilized the discounted cash flow method to estimate the fair value of its reporting units. The estimates and assumptions made in assessing the fair value of the reporting units are subject to significant uncertainties related to future sales, gross margins, advertising and marketing expenses, and the discount rate.\n\nThe principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the North American Women’s Health reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the North American Women’s Health reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to future sales, gross margin, advertising and marketing expenses, and the discount rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of the North American Women’s Health reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the North American Women’s Health reporting unit; (ii) evaluating the appropriateness of the discounted cash flow method used by management; (iii) testing the completeness and accuracy of underlying data used in the discounted cash flow method; and (iv) evaluating the reasonableness of the significant assumptions used by management related to future sales, gross margin, advertising and marketing expenses, and the discount rate. Evaluating management’s assumptions related to future sales, gross margin, and advertising and marketing expenses involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the North American Women’s Health reporting unit; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the discounted cash flow method and (ii) the reasonableness of the discount rate assumption.\n\n/s/ PricewaterhouseCoopers LLP\n\nStamford, Connecticut\n\nMay 14, 2026\n\nWe have served as the Company’s auditor since at least 1999. We have not been able to determine the specific year we began serving as auditor of the Company.\n\n49\n\nPrestige Consumer Healthcare Inc.\n\nConsolidated Statements of Income and Comprehensive Income\n\n Year Ended March 31,\n\n(In thousands, except per share data)202620252024\n\nRevenues   \n\nNet sales$1,084,744 $1,136,581 $1,125,046 \n\nOther revenues3,961 1,181 311 \n\nTotal revenues1,088,705 1,137,762 1,125,357 \n\nCost of Sales   \n\nCost of sales excluding depreciation482,794 494,416 492,786 \n\nCost of sales depreciation10,333 8,883 8,123 \n\nCost of sales493,127 503,299 500,909 \n\nGross profit595,578 634,463 624,448 \n\nOperating Expenses   \n\nAdvertising and marketing148,782 155,723 153,315 \n\nGeneral and administrative116,447 108,209 106,152 \n\nDepreciation and amortization20,940 21,290 22,552 \n\nGoodwill and tradename impairment— 12,466 — \n\nTotal operating expenses286,169 297,688 282,019 \n\nOperating income 309,409 336,775 342,429 \n\nOther expense (income)   \n\nInterest expense, net42,339 47,632 67,160 \n\nOther expense (income), net9,574 4,954 (756)\n\nTotal other expense, net51,913 52,586 66,404 \n\nIncome before income taxes257,496 284,189 276,025 \n\nProvision for income taxes67,195 69,584 66,686 \n\nNet income $190,301 $214,605 $209,339 \n\nEarnings per share:   \n\nBasic$3.93 $4.32 $4.21 \n\nDiluted$3.91 $4.29 $4.17 \n\nWeighted average shares outstanding:   \n\nBasic48,456 49,697 49,757 \n\nDiluted48,720 50,080 50,178 \n\nComprehensive income, net of tax:\n\nCurrency translation adjustments9,387 (3,083)(2,940)\n\nUnrecognized net (loss) gain on pension plans(96)(81)9 \n\nTotal other comprehensive income (loss) 9,291 (3,164)(2,931)\n\nComprehensive income $199,592 $211,441 $206,408 \n\nSee accompanying notes.\n\n50\n\nPrestige Consumer Healthcare Inc.\n\nConsolidated Balance Sheets\n\n(In thousands)March 31,\n\nAssets20262025\n\nCurrent assets  \n\nCash and cash equivalents$63,868 $97,884 \n\n   Accounts receivable, net of allowance of $18,187 and $16,314, respectively\n191,920 194,293 \n\nInventories159,132 147,709 \n\nPrepaid expenses and other current assets16,564 8,442 \n\nTotal current assets431,484 448,328 \n\nProperty, plant and equipment, net121,689 74,548 \n\nOperating lease right-of-use assets27,780 28,238 \n\nFinance lease right-of-use assets, net21,776 25,056 \n\nGoodwill581,109 527,425 \n\nIntangible assets, net2,299,605 2,295,350 \n\nOther long-term assets10,870 3,273 \n\nTotal Assets$3,494,313 $3,402,218 \n\nLiabilities and Stockholders’ Equity  \n\nCurrent liabilities  \n\nAccounts payable$22,791 $18,925 \n\nAccrued interest payable15,578 15,703 \n\nOperating lease liabilities, current portion6,910 6,047 \n\nFinance lease liabilities, current portion2,656 2,490 \n\nOther accrued liabilities72,989 63,458 \n\nTotal current liabilities120,924 106,623 \n\nLong-term debt, net993,953 992,357 \n\nDeferred income tax liabilities447,417 419,594 \n\nLong-term operating lease liabilities, net of current portion20,955 22,732 \n\nLong-term finance lease liabilities, net of current portion17,968 20,624 \n\nOther long-term liabilities5,580 5,391 \n\nTotal Liabilities1,606,797 1,567,321 \n\nCommitments and Contingencies – Note 17\n\nStockholders’ Equity  \n\nPreferred stock – $0.01 par value\n  \n\nAuthorized – 5,000 shares\n  \n\nIssued and outstanding – None\n— — \n\nCommon stock – $0.01 par value\n  \n\nAuthorized – 250,000 shares\n  \n\nIssued – 56,211 shares at March 31, 2026 and 56,010 shares at March 31, 2025\n562 560 \n\nAdditional paid-in capital608,520 593,402 \n\nTreasury stock, at cost – 8,892 shares at March 31, 2026 and 6,501 shares at March 31, 2025\n(439,301)(277,208)\n\nAccumulated other comprehensive loss, net of tax(28,368)(37,659)\n\nRetained earnings1,746,103 1,555,802 \n\nTotal Stockholders’ Equity1,887,516 1,834,897 \n\nTotal Liabilities and Stockholders’ Equity$3,494,313 $3,402,218 \n\nSee accompanying notes.\n\n51\n\nPrestige Consumer Healthcare Inc.\n\nConsolidated Statements of Changes in Stockholders’ Equity\n\nCommon StockAdditional Paid-in CapitalTreasury StockAccumulated\nOther\nComprehensive Income (Loss)Retained\nEarnings Total\n\n(In thousands)SharesPar\nValueSharesAmount\n\nBalances at March 31, 202354,857 $548 $535,356 5,165 $(189,114)$(31,564)$1,131,858 $1,447,084 \n\nStock-based compensation— — 14,010 — — — — 14,010 \n\nExercise of stock options441 5 18,084 — — — — 18,089 \n\nIssuance of shares related to restricted stock203 2 (2)— — — — — \n\nTreasury share repurchases— — — 515 (30,507)— — (30,507)\n\nNet income— — — — — — 209,339 209,339 \n\nOther comprehensive loss— — — — — (2,931)— (2,931)\n\nBalances at March 31, 202455,501 $555 $567,448 5,680 $(219,621)$(34,495)$1,341,197 $1,655,084 \n\nStock-based compensation— — 11,157 — — — — 11,157 \n\nExercise of stock options303 3 14,799 — — — — 14,802 \n\nIssuance of shares related to restricted stock206 2 (2)— — — — — \n\nTreasury share repurchases— — — 821 (57,587)— — (57,587)\n\nNet income— — — — — — 214,605 214,605 \n\nOther comprehensive loss— — — — — (3,164)— (3,164)\n\nBalances at March 31, 202556,010 $560 $593,402 6,501 $(277,208)$(37,659)$1,555,802 $1,834,897 \n\nStock-based compensation— — 10,835 — — — — 10,835 \n\nExercise of stock options80 1 4,284 — — — — 4,285 \n\nIssuance of shares related to restricted stock121 1 (1)— — — — — \n\nTreasury share repurchases— — — 2,391 (162,093)— — (162,093)\n\nNet income— — — — — — 190,301 190,301 \n\nOther comprehensive income— — — — — 9,291 — 9,291 \n\nBalances at March 31, 202656,211 $562 $608,520 8,892 $(439,301)$(28,368)$1,746,103 $1,887,516 \n\nSee accompanying notes.\n\n52\n\nPrestige Consumer Healthcare Inc.\n\nConsolidated Statements of Cash Flows\n\n Year Ended March 31,\n\n(In thousands)202620252024\n\nOperating Activities   \n\nNet income $190,301 $214,605 $209,339 \n\nAdjustments to reconcile net income to net cash provided by operating activities:   \n\nDepreciation and amortization31,273 30,173 30,675 \n\nLoss on sale or disposal of property and equipment165 234 274 \n\nDeferred and other income taxes22,697 14,409 23,070 \n\nAmortization of debt origination costs1,797 1,754 5,240 \n\nStock-based compensation costs10,835 11,157 14,010 \n\nNon-cash operating lease cost7,850 7,247 6,149 \n\nWrite-off of supplier loan10,332 — — \n\nImpairment loss— 12,466 — \n\nOther — 1,411 — \n\nChanges in operating assets and liabilities, net of effects from acquisition:   \n\nAccounts receivable(3,685)(16,327)(6,322)\n\nInventories(1,597)(9,314)24,439 \n\nPrepaid expenses and other current assets(6,968)4,655 (8,214)\n\nAccounts payable(151)(19,411)(24,971)\n\nAccrued liabilities2,527 6,984 (16,217)\n\nOperating lease liabilities(7,781)(7,630)(7,134)\n\nOther32 (898)(1,412)\n\nNet cash provided by operating activities257,627 251,515 248,926 \n\nInvesting Activities   \n\nPurchases of property, plant and equipment(11,178)(8,224)(9,550)\n\nAcquisitions, net of cash acquired(123,736)(8,250)(10,561)\n\nOther(1,927)(978)— \n\nNet cash used in investing activities(136,841)(17,452)(20,111)\n\nFinancing Activities   \n\nTerm Loan repayments— (135,000)(225,000)\n\nBorrowings under revolving credit agreement40,000 — — \n\nRepayments under revolving credit agreement(40,000)— — \n\nNet increase in line of credit2,986 — — \n\nPayment of debt costs— — (769)\n\nPayments of finance leases(2,482)(4,536)(2,827)\n\nProceeds from exercise of stock options4,285 14,802 18,089 \n\nFair value of shares surrendered as payment of tax withholding(4,322)(5,832)(5,508)\n\nRepurchase of common stock(156,283)(51,509)(25,000)\n\nOther(246)— — \n\nNet cash used in financing activities(156,062)(182,075)(241,015)\n\nEffects of exchange rate changes on cash and cash equivalents1,260 (573)180 \n\n(Decrease) increase in cash and cash equivalents(34,016)51,415 (12,020)\n\nCash and cash equivalents - beginning of year97,884 46,469 58,489 \n\nCash and cash equivalents - end of year$63,868 $97,884 $46,469 \n\nInterest paid$43,843 $47,804 $63,248 \n\nIncome taxes paid$45,944 $52,117 $59,637 \n\nSee accompanying notes.\n\n53\n\nPrestige Consumer Healthcare Inc.\n\nNotes to Consolidated Financial Statements\n\n1.    Business and Basis of Presentation\n\nNature of Business\n\nPrestige Consumer Healthcare Inc. (referred to herein as the “Company” or “we”, which reference shall, unless the context requires otherwise, be deemed to refer to Prestige Consumer Healthcare Inc. and all of its direct and indirect 100% owned subsidiaries on a consolidated basis) is engaged in the development, manufacturing, marketing, sales and distribution of over-the-counter (“OTC”) healthcare products to mass merchandisers, drug/drug wholesale, food, dollar, convenience and club stores and e-commerce channels in North America (the United States and Canada) and in Australia and certain other international markets.  Prestige Consumer Healthcare Inc. is a holding company with no operations and is also the parent guarantor of the senior credit facility and the senior notes described in Note 10 to these Consolidated Financial Statements.\n\nEconomic Environment\n\nThere has been economic uncertainty in the United States and globally due to several factors, including evolving fiscal policy, global supply chain constraints, changes in interest rates, a high inflationary environment, geopolitical events, including conflicts in the Middle East, and evolving U.S. and international trade restrictions and tariffs. We expect economic conditions will continue to be highly volatile and uncertain, put pressure on prices and supply, and could affect demand for our products. We have continued to see changes in the purchasing patterns of our consumers, including a shift in many markets to purchasing our products online, and have and may continue to see changes in retailer purchasing patterns due to these consumer patterns and the volatile economic environment.\n\nThe volatile environment has impacted the supply of labor and raw materials and exacerbated rising input costs. We have and may continue to experience shortages, delays and backorders for certain ingredients and products, difficulty scheduling shipping for our products, as well as price increases from many of our suppliers for both shipping and product costs. We and our manufacturers are currently having, and have had in the past, difficulty meeting demand, which is and has caused shortages of some of our products, particularly eye care products. These shortages have negatively impacted our results of operations, and we expect further shortages will continue to have a negative impact on our sales. If conditions cause further disruption in the global supply chain, the availability of labor and materials or otherwise further increase costs, it may materially affect our operations and those of third parties on which we rely, including causing material disruptions in the supply and distribution of our products. The extent to which these conditions impact our results of operations and liquidity will depend on future developments, which are highly uncertain and cannot be predicted, including global supply chain constraints, inflation, tariffs, global conflicts and trade actions/disputes. These effects could have a material adverse impact on our business, liquidity, capital resources and results of operations and those of the third parties on which we rely.\n\nBasis of Presentation\n\nOur Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (\"GAAP\"). All significant intercompany transactions and balances have been eliminated in consolidation.  Our fiscal year ends on March 31st of each year.  References in these Consolidated Financial Statements or notes to a year (e.g., “2026”) mean our fiscal year ended on March 31st of that year.\n\nUse of Estimates\n\nThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period.  Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates.  As discussed below, our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence and accounting for income taxes and related uncertain tax positions.\n\n54\n\nCash and Cash Equivalents\n\nWe consider all short-term deposits and investments with original maturities of three months or less to be cash equivalents.  At March 31, 2026, approximately 18% of our cash is held by a bank in Australia and approximately 4% is held by a bank in Singapore. Substantially all of our remaining cash is held by a large U.S. domestic bank.  We do not believe that, as a result of this concentration, we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. Substantially all of the Company's cash balances at March 31, 2026 are uninsured.\n\nAccounts Receivable\n\nWe extend non-interest-bearing trade credit to our customers in the ordinary course of business.  We maintain an allowance for credit losses based upon historical collection experience and expected collectability of the accounts receivable.  In an effort to reduce credit risk, we (i) have established credit limits for all of our customer relationships, (ii) perform ongoing credit evaluations of customers’ financial condition, (iii) monitor the payment history and aging of customers’ receivables and (iv) monitor open orders against an individual customer’s outstanding receivable balance.\n\nInventories\n\nInventories are stated at the lower of cost or net realizable value, where cost is determined by using the first-in, first-out method.  We reduce inventories for the diminution in value resulting from product obsolescence, damage or other issues affecting marketability, equal to the difference between the cost of the inventory and its estimated net realizable value.  Factors utilized in the determination of estimated net realizable value include (i) product expiration dates, (ii) current sales data and historical return rates, (iii) estimates of future demand, (iv) competitive pricing pressures, (v) new product introductions and (vi) component and packaging obsolescence.\n\nProperty, Plant and Equipment\n\nProperty, plant and equipment are stated at cost and are depreciated using the straight-line method based on the following estimated useful lives:\n\n Years\n\nBuilding\n5 to 40\n\nMachinery\n1 to 15\n\nComputer equipment and software\n1 to 6\n\nFurniture and fixtures\n6 to 10\n\nLeasehold improvements*\n\n*Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the related assets.\n\nExpenditures for maintenance and repairs are charged to expense as incurred.  When an asset is sold or otherwise disposed of, we remove the cost and associated accumulated depreciation from the respective accounts and recognize the resulting gain or loss in the Consolidated Statements of Income and Comprehensive Income.\n\n \n\nProperty, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.  An impairment loss is recognized if the carrying amount of the asset exceeds its fair value.\n\nGoodwill\n\nThe excess of the purchase price over the fair market value of assets acquired and liabilities assumed in business combinations is classified as goodwill.  Goodwill is not amortized, although the carrying value is tested for impairment at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired.  Goodwill is tested for impairment at the reporting unit level, which is one level below the operating segment level. An impairment loss is recognized if the carrying amount of the reporting unit exceeds its fair value.\n\nIntangible Assets\n\nIntangible assets generally represent tradenames, brand names and patents and are stated at cost less accumulated amortization.  For intangible assets with finite lives, amortization is computed using the straight-line method over estimated useful lives, typically ranging from 10 to 24 years.\n\nIndefinite-lived intangible assets are tested for impairment at the individual asset level at least annually in the fourth fiscal quarter of each year, or more frequently if events or changes in circumstances indicate that the asset may be impaired.  Intangible assets with finite lives are reviewed for impairment on an annual basis, or whenever events or changes in circumstances indicate that their carrying amount may exceed their fair values and may not be recoverable.  An impairment loss is recognized if the carrying amount of the asset exceeds its fair value.\n\n55\n\nDebt Origination Costs\n\nWe have incurred debt origination costs in connection with the issuance of long-term debt.  These costs are amortized over the term of the related debt, using the effective interest method for our senior notes and our term loan facility and the straight-line method for our revolving credit facility. Costs associated with our revolving credit facility are reported as a long-term asset and costs related to our senior notes and the term loan facility are recorded as a reduction of debt.\n\nRevenue Recognition\n\nNature of Goods and Services\n\nWe recognize revenue from product sales. We primarily ship finished goods to our customers and operate in two segments: North American OTC Healthcare and International OTC Healthcare. The segments are based on differences in geographical area. The North American and International OTC Healthcare segments market a variety of personal care and OTC healthcare products in the following product groups: Analgesics, Cough & Cold, Women's Health, Gastrointestinal, Eye & Ear Care, Dermatologicals and Oral Care. Our products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation.\n\nWe sell consumer products under a variety of brands through a broad distribution platform that includes mass merchandisers, drug/drug wholesale, food, dollar, convenience and club stores and e-commerce channels, all of which sell our products to consumers.\n\nSee Note 19 for disaggregated revenue information.\n\nSatisfaction of Performance Obligations\n\nUnder Financial Accounting Standards Board (\"FASB\") Accounting Standards Codification (\"ASC\") 606, revenue is recognized when control of a promised good is transferred to a customer, in an amount that reflects the consideration that we expect to be entitled to receive in exchange for that good. This occurs either when finished goods are transferred to a common carrier for delivery to the customer or when product is picked up by the customer or the customer’s carrier.\n\nOnce a product has transferred to the common carrier or been picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the product. It is at this point that we have a right to payment and the customer has legal title.\n\nVariable Consideration\n\nProvisions for certain rebates, customer promotional programs, product returns and discounts to customers are accounted for as variable consideration and recorded as a reduction in sales.\n\nWe record an estimate of future product returns, chargebacks and logistics deductions concurrent with recording sales, which is made using the most likely amount method, which incorporates (i) historical return rates, (ii) current economic trends, (iii) changes in customer demand, (iv) product acceptance, (v) seasonality of our product offerings and (vi) the impact of changes in product formulation, packaging and advertising.\n\nWe participate in the promotional programs of our customers to enhance the sale of our products. These promotional programs consist of direct-to-consumer incentives, such as coupons and temporary price reductions, as well as incentives to our customers, such as allowances for new distribution including slotting fees, and cooperative advertising. The costs of such activities are recorded as a reduction to revenue when the related sale takes place. Estimates of the costs of these promotional programs are derived using the most likely amount method, which incorporates (i) historical sales experience, (ii) the current promotional offering, (iii) forecasted data, (iv) current market conditions and (v) communication with customer purchasing/marketing personnel. At the completion of the promotional program, the estimated amounts are adjusted to actual results.\n\nPractical Expedients\n\nDue to the nature (short duration) of our contracts with customers, we apply the practical expedient related to the disclosure of remaining performance obligations. Remaining performance obligations relate to contracts with a duration of less than one year, in which we have the right to invoice the customer at the time the performance obligation is satisfied for the amount of revenue recognized at that time. Accordingly, we have elected the practical expedient available under ASC 606 not to disclose remaining performance obligations for our contracts. The period between when control of the promised products transfers to the customer and when the customer pays for the products is one year or less. As such, we do not adjust product consideration for the effects of a significant financing component. The amortization period of any asset resulting from incremental costs of obtaining a contract would be one year or less.\n\n56\n\nWe expense incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place.\n\nWe account for shipping and handling costs as fulfillment activities and therefore recognize them upon shipment of goods.\n\nCost of Sales\n\nCost of sales includes costs related to the manufacturing of our products, including raw materials, direct labor and indirect plant costs (including depreciation), warehousing costs, inbound and outbound shipping costs and handling and storage costs.  Warehousing, shipping and handling and storage costs were $68.3 million for 2026, $62.3 million for 2025 and $68.3 million for 2024.\n\nAdvertising and Marketing Costs\n\nAdvertising and marketing costs are expensed as incurred.  Allowances for distribution costs associated with products, including slotting fees, are recognized as a reduction of sales.  \n\nStock-based Compensation\n\nWe recognize stock-based compensation expense by measuring the cost of services to be rendered based on the grant-date fair value of the equity award.  Compensation expense is recognized over the period a grantee is required to provide service in exchange for the award, generally referred to as the requisite service period.\n\nPension Expense\n\nCertain employees of our Lynchburg manufacturing facility are covered by an unfunded non-qualified pension plan.\n\nIncome Taxes\n\nDeferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized.\n\nThe Income Taxes topic of the FASB ASC 740 prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The guidance only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the various taxing authorities. As a result, we have applied such guidance in determining our tax uncertainties.\n\nWe are subject to taxation in the United States and various state and foreign jurisdictions.  \n\nWe classify penalties and interest related to unrecognized tax benefits as income tax expense in the Consolidated Statements of Income and Comprehensive Income.\n\nEarnings Per Share\nBasic earnings per share is computed based on income available to common stockholders and the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on income available to common stockholders and the weighted average number of shares of common stock outstanding plus the effect of potentially dilutive common shares outstanding during the period using the treasury stock method, which includes stock options and restricted stock units (\"RSUs\"). Potential common shares, composed of the incremental common shares issuable upon the exercise of outstanding stock options and unvested RSUs, are included in the diluted earnings per share calculation to the extent that they are dilutive. In loss periods, the assumed exercise of in-the-money stock options and RSUs has an antidilutive effect, and therefore these instruments are excluded from the computation of diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:\n\n57\n\nYear Ended March 31,\n\n (In thousands, except per share data)202620252024\n\nNumerator   \n\nNet income $190,301 $214,605 $209,339 \n\nDenominator   \n\nDenominator for basic earnings per share - weighted average shares outstanding48,456 49,697 49,757 \n\nDilutive effect of unvested restricted stock units and options issued to employees and directors264 383 421 \n\nDenominator for diluted earnings per share48,720 50,080 50,178 \n\nEarnings per Common Share:   \n\nBasic net earnings per share$3.93 $4.32 $4.21 \n\nDiluted net earnings per share$3.91 $4.29 $4.17 \n\nFor 2026, 2025 and 2024 there were 0.2 million, 0.1 million and 0.2 million shares, respectively, attributable to outstanding stock-based awards that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.\n\nLeases\n\nWe lease real estate and equipment for use in our operations. These leases have lease terms of 1 to 10 years, some of which include options to terminate or extend leases for up to 1 to 8 years or on a month-to-month basis. The exercise of lease renewal options is at our sole discretion and our lease right-of-use (\"ROU\") assets and liabilities reflect only the options we are reasonably certain that we will exercise.\n\nWe determine if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether we have the right to control the identified asset. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable.\n\nVariable lease payments that do not vary based on an index or rate are excluded from the ROU asset and lease liability determination. Variable lease payments are typically usage-based and are recorded in the period in which the obligation for those payments is incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.\n\nAs the implicit rate in our leases is unknown, we used our incremental borrowing rate based on the information available at the date of adoption for existing leases and at the lease commencement date for new leases in determining the present value of future lease payments. We give consideration to our credit risk, term of the lease, total lease payments and adjust for the impacts of collateral, as necessary, when calculating our incremental borrowing rates. Rent expense for our operating leases is recognized on a straight-line basis over the lease term.\n\nFor the measurement and classification of our lease agreements, we group lease and non-lease components into a single lease component for all underlying asset classes. We have also elected to exclude any leases within our existing classes of assets with a term of 12 months or less.\n\n58\n\nRecently Adopted Accounting Pronouncements\n\nIn December 2023, the FASB issued Accounting Standards Update (\"ASU\") ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update require that entities disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require disclosure, on an annual basis, of income taxes paid, disaggregated by federal, state and foreign taxes and disaggregated by individual jurisdictions in which income taxes paid are equal to or greater than 5% of total income taxes paid. In addition, the amendments in this update also require that income before income taxes be disaggregated between domestic and foreign and income tax expense be disaggregated by federal, state and foreign. This ASU is effective for annual periods beginning after December 15, 2024. We adopted this standard prospectively for our fiscal year ended March 31, 2026. The adoption of this ASU is reflected in our income tax disclosures in Note 15.\n\nRecently Issued Accounting Pronouncements\n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires entities to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Required disclosures include, among other things, the amount of purchases of inventory, employee compensation, depreciation, and intangible asset amortization. In addition, entities will be required to disclose the total amount of selling expenses and, in annual reporting periods, their definition of selling expenses. This ASU is effective for entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact that this ASU may have on our Consolidated Financial Statement disclosures.\n\n59\n\n2.    Acquisition\n\nPillar5\n\nOn December 18, 2025, we completed the acquisition of Pillar5, which was funded through a combination of cash on hand and our existing asset-based revolving credit facility.\n\nBased in Arnprior Ontario, Canada, Pillar5 is a leading sterile ophthalmic manufacturer and was one of our Clear Eyes suppliers.\n\nThis acquisition was accounted for in accordance with the Business Combinations topic of the FASB ASC 805, which requires that the total cost of an acquisition be allocated to the tangible and intangible assets acquired and liabilities assumed based upon their respective fair values at the date of acquisition.\n\nWe prepared a preliminary analysis of the fair values of the assets acquired and liabilities assumed as of the acquisition date. The following table summarizes our preliminary allocation of the fair value of assets acquired and liabilities assumed as of December 18, 2025.  During the three months ended March 31, 2026, we recorded measurement period adjustments to the provisional fair values of certain assets acquired and liabilities assumed in connection with the Pillar5 acquisition. These adjustments were based on new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these changes was recorded as an adjustment to goodwill. This allocation continues to be provisional and reflects the information available to management as of the reporting date. The final allocation may differ materially from the amounts presented below as we complete our valuation procedures, primarily related to finalizing our assessment of identifiable assets.\n\n(In thousands)\n\nDecember 18, 2025\n\nCash acquired$688 \n\nAccounts receivable2,256 \n\nInventories8,434 \n\nPrepaid expenses and other current assets1,179 \n\nProperty, plant and equipment, net46,132 \n\nOperating lease right-of-use assets4,448 \n\nGoodwill52,772 \n\nOther long-term assets5,231 \n\nTotal assets acquired121,140 \n\nAccounts payable4,047 \n\nOperating lease liabilities, current portion534 \n\nOther accrued liabilities3,254 \n\nLong-term operating lease liabilities, net of current portion3,410 \n\nTotal liabilities assumed11,245 \n\nNet assets acquired$109,895 \n\nWe recorded goodwill of $52.8 million based on the amount by which the purchase price exceeded the preliminary fair value of the net assets acquired. Goodwill is not deductible for income tax purposes.\n\nThe pro-forma effect of this acquisition on revenues and earnings was not material.\n\n60\n\n3.    Accounts Receivable\n\nAccounts receivable consist of the following:\n\nMarch 31,\n\n(In thousands)20262025\n\nComponents of Accounts Receivable\n\nTrade accounts receivable$208,569 $202,043 \n\nShort-term loan receivable, including interest— 7,796 \n\nOther receivables1,538 768 \n\n 210,107 210,607 \n\nLess allowances for discounts, returns and uncollectible accounts(18,187)(16,314)\n\nAccounts receivable, net$191,920 $194,293 \n\nIn 2026, we wrote off the supplier loan included in short-term loan receivable.\n\n4.    Inventories\n\nInventories consist of the following:\n\nMarch 31,\n\n(In thousands)20262025\n\nComponents of Inventories\n\nPackaging and raw materials$22,853 $26,562 \n\nWork in process2,079 2,880 \n\nFinished goods134,200 118,267 \n\nInventories$159,132 $147,709 \n\nInventories are carried and depicted above at the lower of cost or net realizable value, which includes a reduction in inventory values of $6.6 million and $4.0 million at March 31, 2026 and 2025, respectively, related to obsolete and slow-moving inventory.\n\n5.     Property, Plant and Equipment\n\nProperty, plant and equipment, net consist of the following:\n\nMarch 31,\n\n(In thousands)20262025\n\nComponents of Property, Plant and Equipment\n\nLand$2,136 $550 \n\nBuilding48,859 31,353 \n\nMachinery83,751 74,621 \n\nComputer equipment33,279 31,958 \n\nFurniture and fixtures3,485 3,341 \n\nLeasehold improvements10,806 10,610 \n\nConstruction in progress28,241 3,350 \n\n 210,557 155,783 \n\nAccumulated depreciation(88,868)(81,235)\n\nProperty, plant and equipment, net$121,689 $74,548 \n\nWe recorded depreciation expense of $10.1 million, $9.7 million and $8.2 million for 2026, 2025 and 2024, respectively.\n\n61\n\n6.     Goodwill\n\nThe following table summarizes the changes in the carrying value of goodwill by operating segment for each of 2024, 2025 and 2026:\n\n(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated\n\nBalance – March 31, 2024   \n\nGoodwill$711,452 $30,384 $741,836 \n\nAccumulated impairment losses(212,516)(1,587)(214,103)\n\nBalance - March 31, 2024$498,936 $28,797 $527,733 \n\nAdjustment related to acquisition (a)\n— 309 309 \n\nEffects of foreign currency exchange rates— (617)(617)\n\nBalance – March 31, 2025   \n\nGoodwill711,452 30,076 741,528 \n\nAccumulated impairment losses(212,516)(1,587)(214,103)\n\nBalance - March 31, 2025$498,936 $28,489 $527,425 \n\nAdditions (b)\n52,772 — 52,772 \n\nEffects of foreign currency exchange rates(721)1,633 912 \n\nBalance – March 31, 2026   \n\nGoodwill763,503 31,709 795,212 \n\nAccumulated impairment losses(212,516)(1,587)(214,103)\n\nBalance - March 31, 2026$550,987 $30,122 $581,109 \n\n(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.\n\n(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.\n\nAt 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.\n\nWe 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.\n\nOur 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.\n\n62\n\n7.    Intangible Assets\n\nA reconciliation of the activity affecting intangible assets, net for each of 2026 and 2025 is as follows:\n\nYear Ended March 31, 2026\n\n(In thousands)Indefinite-\nLived\nTradenamesFinite-Lived\nTradenames and Customer RelationshipsTotals\n\nGross Carrying Amounts   \n\nBalance – March 31, 2025$2,136,986 $434,500 $2,571,486 \n\nAdditions (a)\n— 13,865 13,865 \n\nEffects of foreign currency exchange rates6,689 1,765 8,454 \n\nBalance – March 31, 2026$2,143,675 $450,130 $2,593,805 \n\nAccumulated Amortization   \n\nBalance – March 31, 2025$— $276,136 $276,136 \n\nAdditions— 17,919 17,919 \n\nEffects of foreign currency exchange rates— 145 145 \n\nBalance – March 31, 2026$— $294,200 $294,200 \n\nIntangible assets, net – March 31, 2026$2,143,675 $155,930 $2,299,605 \n\nIntangible Assets, net by Reportable Segment:\n\nNorth American OTC Healthcare$2,068,752 $138,903 $2,207,655 \n\nInternational OTC Healthcare74,923 17,027 91,950 \n\nIntangible assets, net – March 31, 2026$2,143,675 $155,930 $2,299,605 \n\n(a)On October 31, 2025, we completed the acquisition of Feminax. In connection with this asset acquisition, we allocated the entire purchase price of $13.9 million to intangible assets.\n\n63\n\nYear Ended March 31, 2025\n\n(In thousands)Indefinite-\nLived\nTradenamesFinite-Lived\nTradenames and Customer RelationshipsTotals\n\nGross Carrying Amounts   \n\nBalance – March 31, 2024$2,167,162 $411,258 $2,578,420 \n\nAdditions (a)\n6,850 1,400 8,250 \n\nReclassifications (b)\n(28,982)28,982 — \n\nTradename impairment(6,552)(5,914)(12,466)\n\nEffects of foreign currency exchange rates(1,492)(1,226)(2,718)\n\nBalance – March 31, 2025$2,136,986 $434,500 $2,571,486 \n\nAccumulated Amortization   \n\nBalance – March 31, 2024$— $257,837 $257,837 \n\nAdditions— 18,263 18,263 \n\nEffects of foreign currency exchange rates— 36 36 \n\nBalance – March 31, 2025$— $276,136 $276,136 \n\nIntangible assets, net – March 31, 2025$2,136,986 $158,364 $2,295,350 \n\nIntangible Assets, net by Reportable Segment:\n\nNorth American OTC Healthcare$2,068,752 $141,234 $2,209,986 \n\nInternational OTC Healthcare68,234 17,130 85,364 \n\nIntangible assets, net – March 31, 2025$2,136,986 $158,364 $2,295,350 \n\n(a) Amounts relate to our acquisition of Hydralyte intellectual property on October 1, 2024, giving us the rights to the Hydralyte intellectual property in all remaining jurisdictions with the exception of the United States.\n\n(b) In connection with our annual impairment test at February 28, 2025, certain indefinite-lived intangible assets were moved to finite-lived to better reflect our long-term projections for these brands.\n\nDuring the fourth quarter of each fiscal year, in conjunction with our strategic planning process, we perform our annual impairment analysis for intangible assets. We utilized the excess earnings method to estimate the fair value of our individual indefinite-lived intangible assets. The assumptions subject to significant uncertainties in the analysis include the discount rate, as well as future sales, gross margins and advertising and marketing expenses. 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. Additionally, should the related fair values of intangible assets be adversely affected as a result of declining sales or margins caused by competition, changing consumer needs or preferences, technological advances, changes in advertising and marketing expenses, or the potential impacts of supply chain constraints, labor shortages, or inflation, we may be required to record additional impairment charges in the future.\n\nAt February 29, 2024, in conjunction with the annual test for impairment of intangible assets, the estimated fair value exceeded the carrying value for all intangible assets and accordingly, no impairment charge was taken.\n\nAs 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 associated with our North American OTC Healthcare segment, while $2.4 million impacted our International OTC Healthcare segment.\n\nAt February 28, 2026, in conjunction with the annual test for impairment of intangible assets, the estimated fair value exceeded the carrying value for all intangible assets and accordingly, no impairment charge was taken.\n\nOur analysis as of February 28, 2026 confirmed that all indefinite-lived intangible assets had a fair value exceeding their carrying value by at least 10%, with the exception of Monistat within our North American Women's Health reporting unit. We performed a sensitivity analysis of our weighted average cost of capital, and we determined that a 50-basis point increase in the\n\n64\n\nweighted average cost of capital used to value all of our indefinite-lived intangible assets would have resulted in an impairment charge of $16.6 million. Additionally, a 50-basis point decrease in the terminal growth rate used for each of our indefinite-lived intangible assets would have not have resulted in any of our indefinite-lived intangible assets' fair value being less than their carrying value.\n\nThe weighted average remaining life for finite-lived intangible assets at March 31, 2026 was approximately 9.0 years, and the amortization expense for the year ended March 31, 2026 was $17.9 million. At March 31, 2026, finite-lived intangible assets are expected to be amortized over their estimated useful lives, which range 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):\n\n(In thousands)\n\nYear Ending March 31,Amount\n\n2027$16,481 \n\n202814,157 \n\n202914,144 \n\n203014,005 \n\n203113,975 \n\nThereafter83,168 \n\n $155,930 \n\n8.     Leases\n\nThe components of lease expense for the years ended March 31, 2026 and 2025 are as follows:\n\nMarch 31,\n\n(In thousands)20262025\n\nFinance lease cost:\n\n     Amortization of right-of-use assets$3,279 $2,230 \n\n     Interest on lease liabilities1,375 375 \n\nOperating lease cost7,923 7,332 \n\nShort-term lease cost140 139 \n\nVariable lease cost19,387 55,399 \n\nTotal net lease cost$32,104 $65,475 \n\nAs of March 31, 2026, the maturities of lease liabilities are as follows:\n\n(In thousands)\n\nYear Ending March 31,Operating LeasesFinancing LeasesTotal\n\n2027$8,340 $3,875 $12,215 \n\n20287,957 3,875 11,832 \n\n20296,687 3,869 10,556 \n\n20306,025 3,366 9,391 \n\n20311,123 2,664 3,787 \n\nThereafter1,619 7,993 9,612 \n\nTotal undiscounted lease payments31,751 25,642 57,393 \n\nLess amount of lease payments representing interest(3,886)(5,018)(8,904)\n\nTotal present value of lease payments$27,865 $20,624 $48,489 \n\n65\n\nThe weighted average remaining lease term and weighted average discount rate are as follows:\n\nMarch 31, 2026\n\nWeighted average remaining lease term (years)\n\nOperating leases4.28\n\nFinancing leases7.18\n\nWeighted average discount rate\n\nOperating leases6.42 %\n\nFinancing leases6.31 %\n\nOn October 1, 2024, we entered into Amendments 3 and 4 extending the Master Logistics Services Agreement with GEODIS Logistics LLC (\"GEODIS\") as our third-party logistics provider. Under this agreement, we have extended our May 2019 agreement that authorized GEODIS to lease a facility and equipment for an additional 65 month term. The lease and non-lease components were recorded in our fiscal 2025 financial statements. The ROU asset and operating lease liability at lease commencement was $23.0 million. The GEODIS amendments also included a new finance lease and the renewal of previous finance leases for assets purchased by GEODIS for our use under the Master Logistics Agreement. The ROU asset and finance lease liability at lease commencement was $4.7 million.\n\n9.     Other Accrued Liabilities\n\nOther accrued liabilities consist of the following:\n\nMarch 31,\n\n(In thousands)20262025\n\nAccrued marketing costs$31,631 $26,324 \n\nAccrued compensation costs12,127 14,205 \n\nAccrued broker commissions1,476 1,462 \n\nIncome taxes payable733 830 \n\nAccrued professional fees8,290 8,026 \n\nAccrued production costs6,018 6,416 \n\nLine of credit2,986 — \n\nOther accrued liabilities9,728 6,195 \n\n $72,989 $63,458 \n\n10.     Long-Term Debt\n\nLong-term debt consists of the following, as of the dates indicated:\n\n(In thousands, except percentages)March 31,\n2026March 31,\n2025\n\n2021 Senior Notes bearing interest at 3.750%, with interest payable on April 1 and October 1 of each year. The 2021 Senior Notes mature on April 1, 2031.\n$600,000 $600,000 \n\n2019 Senior Notes bearing interest at 5.125%, with interest payable on January 15 and July 15 of each year. The 2019 Senior Notes mature on January 15, 2028.\n400,000 400,000 \n\nLong-term debt1,000,000 1,000,000 \n\nLess: unamortized debt costs(6,047)(7,643)\n\nLong-term debt, net$993,953 $992,357 \n\nAt March 31, 2026, we had no balance outstanding on the 2012 ABL Revolver and a borrowing capacity of $182.9 million.\n\n2012 Term Loan and 2012 ABL Revolver:\n\nOn January 31, 2012, Prestige Brands, Inc. (the “Borrower\") entered into a senior secured credit facility, which originally consisted of (i) a $660.0 million term loan with a 7-year maturity (the \"2012 Term Loan\") and (ii) a $50.0 million asset-based revolving line of credit with a 5-year maturity (the \"2012 ABL Revolver\"). In subsequent years, we have utilized portions of our accordion feature to increase the amount of our borrowing capacity under the 2012 ABL Revolver to the current amount of\n\n66\n\n$200.0 million, reduced our borrowing rate on the 2012 ABL Revolver and made several other changes to the 2012 ABL Revolver. We have also amended the 2012 Term Loan several times.\n\nOn June 12, 2023, we entered Amendment No. 7 to the 2012 Term Loan (\"Term Loan Amendment No. 7\"), effective July 1, 2023. Term Loan Amendment No. 7 provided for the replacement of LIBOR with SOFR as our reference rate for the 2012 Term Loan.\n\nOn April 4, 2023, we entered into Amendment No. 8 (\"ABL Amendment No. 8\") to the 2012 ABL Revolver. ABL Amendment No. 8 provides for the replacement of LIBOR with SOFR as our reference rate for the 2012 ABL Revolver.\n\nOn December 8, 2023, we entered into Amendment No. 9 (\"ABL Amendment No. 9\") to the 2012 ABL Revolver. ABL Amendment No. 9 provides for (i) an increase in the aggregate revolving commitment of the facility from $175.0 million to $200.0 million, (ii) an extension of the maturity date of the 2012 ABL Revolver to December 8, 2028 and (iii) increased flexibility under the credit agreement governing the 2012 ABL Revolver, including increased flexibility related to restricted payments, debt incurrence and borrowing base calculations. There were no changes to interest terms as a result of this amendment.\n\n2019 Senior Notes:\n\nOn December 2, 2019, the Borrower issued $400.0 million aggregate principal amount of 5.125% senior notes due January 15, 2028 (the \"2019 Senior Notes\"), pursuant to an indenture dated December 2, 2019, among the Borrower, the guarantors party thereto (including the Company) and U.S. Bank National Association, as trustee. We used the net proceeds from the 2019 Senior Notes, together with cash on hand, to redeem all $400.0 million of our then-outstanding senior notes issued on December 17, 2013 that were due in 2021, and to pay related fees and expenses.\n\n2021 Senior Notes:\n\nOn March 1, 2021, the Borrower issued $600.0 million aggregate principal amount of 3.750% senior notes due April 1, 2031 (the \"2021 Senior Notes\"), pursuant to an indenture dated March 1, 2021, among the Borrower, the guarantors party thereto (including the Company) and U.S. Bank National Association, as trustee. We used the net proceeds from the 2021 Senior Notes to redeem all $600.0 million of our then-outstanding 2016 senior notes issued on February 19, 2016 and March 21, 2018, which were due in 2024, and to pay related fees and expenses.\n\nInterest, Redemptions and Restrictions:\n\nDuring fiscal 2025, we repaid the balance of our 2012 Term Loan and terminated all related commitments. For the year ended March 31, 2025, during the period it was outstanding, the average interest rate on the 2012 Term Loan was 7.1%. For the year ended March 31, 2026, the average interest rate on amounts borrowed under the 2012 ABL Revolver was 3.9%. There were no borrowings under the 2012 ABL Revolver at any time during 2025.\n\nWe have the option to redeem all or a portion of the 2019 Senior Notes at any time on or after January 15, 2023 at the redemption prices set forth in the indenture governing the 2019 Senior Notes, plus accrued and unpaid interest, if any. Subject to certain limitations, in the event of a change of control (as defined in the indenture governing the 2019 Senior Notes), the Borrower will be required to make an offer to purchase the 2019 Senior Notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest, if any, to the date of repurchase.\n\nWe have the option to redeem all or a portion of the 2021 Senior Notes at any time on or after April 1, 2026 at the redemption prices set forth in the indenture governing the 2021 Senior Notes, plus accrued and unpaid interest, if any. Subject to certain limitations, in the event of a change of control (as defined in the indenture governing the 2021 Senior Notes), the Borrower will be required to make an offer to purchase the 2021 Senior Notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest, if any, to the date of repurchase.\n\nThe credit agreement governing the 2012 ABL Revolver and the indentures governing the 2021 Senior Notes and the 2019 Senior Notes contain provisions that restrict us from undertaking specified corporate actions, such as asset dispositions, acquisitions, dividend payments, repurchases of common shares outstanding, changes of control, incurrences of indebtedness, issuance of equity, creation of liens, making of loans and transactions with affiliates. Additionally, the credit agreement governing the 2012 ABL Revolver and the indentures governing the 2021 Senior Notes and the 2019 Senior Notes contain cross-default provisions, whereby a default pursuant to the terms and conditions of certain indebtedness will cause a default on the remaining indebtedness under the credit agreement governing the 2012 ABL Revolver and the indentures governing the 2021 Senior Notes and the 2019 Senior Notes. At March 31, 2026, we were in compliance with the covenants under our long-term indebtedness.\n\n67\n\nAs of March 31, 2026, aggregate future principal payments required in accordance with the terms of the indentures governing the 2021 Senior Notes and the 2019 Senior Notes are as follows:\n\n(In thousands)\n\nYear Ending March 31,Amount\n\n2027$— \n\n2028400,000 \n\n2029— \n\n2030— \n\n2031— \n\nThereafter600,000 \n\n$1,000,000 \n\n11.     Fair Value Measurements\n\nFor certain of our financial instruments, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their respective fair values due to the relatively short maturity of these amounts.\n\nThe Fair Value Measurements and Disclosures topic of the FASB ASC 820 requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market assuming an orderly transaction between market participants. The Fair Value Measurements and Disclosures topic established market (observable inputs) as the preferred source of fair value, to be followed by the Company's assumptions of fair value based on hypothetical transactions (unobservable inputs) in the absence of observable market inputs. Based upon the above, the following fair value hierarchy was created:\n\nLevel 1 - Quoted market prices for identical instruments in active markets;\n\nLevel 2 - Quoted prices for similar instruments in active markets, as well as quoted prices for identical or similar instruments in markets that are not considered active; and\n\nLevel 3 - Unobservable inputs developed by the Company using estimates and assumptions reflective of those that would be utilized by a market participant.\n\nThe market values have been determined based on market values for similar instruments adjusted for certain factors. As such, the 2021 Senior Notes and the 2019 Senior Notes are measured in Level 2 of the above hierarchy (see summary below detailing the carrying amounts and estimated fair values of these instruments at March 31, 2026 and 2025).\n\nMarch 31, 2026March 31, 2025\n\n(In thousands)Carrying ValueFair ValueCarrying ValueFair Value\n\n2019 Senior Notes$400,000 $399,000 $400,000 $392,000 \n\n2021 Senior Notes600,000 550,500 600,000 537,750 \n\nAt March 31, 2026 and 2025, we did not have any assets or liabilities measured in Level 1 or 3. During 2026, 2025 and 2024, there were no transfers of assets or liabilities between Levels 1, 2 and 3.\n\n12.     Stockholders' Equity\n\nThe Company is authorized to issue 250.0 million shares of common stock, $0.01 par value per share, and 5.0 million shares of preferred stock, $0.01 par value per share.  The Board of Directors may direct the issuance of the undesignated preferred stock in one or more series and determine preferences, privileges and restrictions thereof.\n\nEach share of common stock has the right to one vote on all matters submitted to a vote of stockholders.  The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to prior rights of holders of all classes of stock outstanding having priority rights as to dividends.  No dividends have been declared or paid on the Company's common stock through March 31, 2026.\n\n68\n\nDuring the years ended March 31, 2026 and 2025, we repurchased shares of our common stock and recorded them as treasury stock. Our share repurchases consisted of the following:\n\nYear Ended March 31,\n\n20262025\n\nShares repurchased pursuant to the provisions of the various employee restricted stock awards:\n\nNumber of shares52,425 83,124 \n\nAverage price per share$82.45$70.16\n\nTotal amount repurchased$4.3 million$5.8 million\n\nShares repurchased in conjunction with our share repurchase program:\n\nNumber of shares2,338,547 737,672 \n\nAverage price per share$66.83$69.83\n\nTotal amount repurchased$156.3 million$51.5 million\n\n13.     Share-Based Compensation\n\nIn connection with our initial public offering, the Board of Directors adopted the 2005 Long-Term Equity Incentive Plan (the “2005 Plan”), which provided for grants of up to a maximum of 5.0 million shares of restricted stock, stock options, RSUs and other equity-based awards. In June 2014, the Board of Directors approved, and in July 2014, our stockholders ratified, an increase of an additional 1.8 million shares of our common stock for issuance under the 2005 Plan, an increase of the maximum number of shares subject to stock options that could be awarded to any one participant under the 2005 Plan during any fiscal 12-month period from 1.0 million to 2.5 million shares, and an extension of the term of the 2005 Plan by ten years to February 2025.  Directors, officers and other employees of the Company and its subsidiaries, as well as others performing services for the Company, were eligible for grants under the 2005 Plan.  \n\nOn June 23, 2020, the Board of Directors adopted the Prestige Consumer Healthcare Inc. 2020 Long-Term Incentive Plan (the “2020 Plan”). The 2020 Plan became effective on August 4, 2020, upon the approval of the 2020 Plan by our stockholders. On June 23, 2020, a total of 2,827,210 shares were available for issuance under the 2020 Plan (comprised of 2,000,000 new shares plus 827,210 shares that were unissued under the 2005 Plan). All future equity awards will be made from the 2020 Plan, and the Company will not grant any additional awards under the 2005 Plan.\n\nThe following table provides information regarding our stock-based compensation:\n\nMarch 31,\n\n(In thousands)202620252024\n\nPre-tax share-based compensation costs charged against income$10,835 $11,157 $14,010 \n\nIncome tax benefit recognized on compensation costs$1,212 $1,267 $1,190 \n\nTotal fair value of options and RSUs vested during the period$10,744 $12,185 $12,213 \n\nCash received from the exercise of stock options$4,285 $14,802 $18,089 \n\nTax benefits realized from tax deductions resulting from RSU issuances and stock option exercises$1,074 $2,273 $2,161 \n\nAt March 31, 2026, there were $2.4 million of unrecognized compensation costs related to unvested stock options under the 2020 Plan, excluding an estimate for forfeitures which may occur.  We expect to recognize such costs over a weighted average period of 1.6 years. At March 31, 2026, there were $11.7 million of unrecognized compensation costs related to unvested RSUs and performance-based stock units (\"PSUs\") under the 2020 Plan, excluding an estimate for forfeitures that may occur. We expect to recognize such costs over a weighted average period of 1.8 years.\n\nAt March 31, 2026, there were 1.4 million shares available for issuance under the 2020 Plan.\n\nRestricted Stock Units\n\n69\n\nRSUs granted to employees under the 2005 Plan and the 2020 Plan generally vest in three years, primarily upon the attainment of certain time vesting thresholds, and, in the case of PSUs, are also contingent on the attainment of certain performance goals of the Company, including revenue and earnings before interest, income taxes, depreciation and amortization targets.  The RSUs provide for accelerated vesting if there is a change of control, as defined in the 2005 Plan and the 2020 Plan.  The RSUs granted to employees generally vest either ratably over three years or in their entirety on the three-year anniversary of the date of the grant. Upon vesting, the units will be settled in shares of our common stock. Termination of employment prior to vesting will result in forfeiture of the RSUs, unless otherwise accelerated by the Compensation Committee or, in the case of RSUs granted in May 2017 and later, subject to pro-rata vesting in the event of death, disability or retirement. The RSUs granted to directors prior to fiscal 2020 vest immediately upon grant and will be settled by delivery to the director of one share of our common stock for each vested RSU promptly following the earliest of (i) the director's death, (ii) the director's disability or (iii) the six-month anniversary of the date on which the director's Board membership ceases for reasons other than death or disability. The RSUs granted to directors in fiscal 2020 through fiscal 2022 vest immediately upon grant and will be settled by delivery to the director of one share of our common stock for each vested RSU promptly following the earliest of (i) the director's death, (ii) the director's separation from service or (iii) a change in control of the Company. The RSUs granted to directors in fiscal 2023 through fiscal 2026 fully vest one year after receipt of the award, subject to the continued service of the director on such vesting date and will be settled by delivery to each director of one share of our common stock for each vested RSU either (a) at the election of the director prior to the grant date, immediately upon vesting, or (b) promptly following the earliest of (i) such director's death, (ii) such director's separation from service or (iii) a change in control of the Company.\n\nThe fair value of the RSUs is determined using the closing price of our common stock on the date of the grant.\n\nA summary of the Company’s RSUs granted under the 2005 Plan and 2020 Plan is presented below:\n\n \n\n \n\n \n\nRSUs\nShares\n(in thousands)Weighted Average\nGrant Date\nFair Value\n\nUnvested at March 31, 2023409.0 $47.17 \n\nGranted157.1 62.06 \n\nIncremental performance shares41.4— \n\nVested (205.0)43.17 \n\nForfeited(10.6)52.68 \n\nUnvested at March 31, 2024391.9 54.43 \n\nVested at March 31, 2024110.2 38.77 \n\nGranted166.8 70.31 \n\nIncremental performance shares41.1 — \n\nVested (192.7)47.60 \n\nForfeited(4.9)59.31 \n\nUnvested at March 31, 2025402.2 63.20 \n\nVested at March 31, 202597.6 39.90 \n\nGranted138.1 80.66 \n\nVested(133.4)57.76 \n\nForfeited(27.8)65.00 \n\nUnvested at March 31, 2026379.1 71.34 \n\nVested at March 31, 2026110.2 43.14 \n\n70\n\nOptions\n\nThe 2005 Plan and the 2020 Plan provide that the exercise price of options granted shall be no less than the fair market value of the Company's common stock on the date the options are granted.  Options granted have a term of no greater than ten years from the date of grant and vest in accordance with a schedule determined at the time the option is granted, generally three years.  The option awards provide for accelerated vesting in the event of a change in control, as defined in the 2005 Plan and the 2020 Plan. Except in the case of death, disability or retirement, termination of employment prior to vesting will result in forfeiture of the unvested stock options. Vested stock options will remain exercisable by the employee after termination of employment, subject to the terms in the 2005 Plan and the 2020 Plan.\n\nThe fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions noted in the table below.  Expected volatilities are based on the historical volatility of our common stock and other factors, including the historical volatilities of comparable companies.  We use appropriate historical data, as well as current data, to estimate option exercise and employee termination behaviors.  Employees that are expected to exhibit similar exercise or termination behaviors are grouped together for the purposes of valuation.  The expected terms of the options granted are derived from our historical experience, management’s estimates and consideration of information derived from the public filings of companies similar to us, and represent the period of time that options granted are expected to be outstanding.  The risk-free rate represents the yield on U.S. Treasury bonds with a maturity equal to the expected term of the granted options. \n\n Year Ended March 31,\n\n 202620252024\n\nExpected volatility\n28.4% - 30.1%\n\n30.4% - 30.8%\n\n30.2% to 31.6%\n\nExpected dividends———\n\nExpected term in years\n6.0 to 7.0\n\n6.0 to 7.0\n\n6.0 to 7.0\n\nRisk-free rate\n4.0% to 4.1%\n\n4.5%\n\n3.6% to 4.1%\n\nWeighted average grant date fair value of options granted$30.52$27.97$23.79\n\n71\n\nA summary of option activity under the 2005 Plan and 2020 Plan is as follows:\n\nOptionsShares\n(in thousands)Weighted Average\nExercise\nPriceWeighted\nAverage\nRemaining\nContractual TermAggregate\nIntrinsic\nValue\n(in thousands)\n\nOutstanding at March 31, 20231,081.0 $43.96 \n\nGranted131.1 61.81 \n\nExercised(440.3)41.08 \n\nForfeited(41.0)54.15 \n\nExpired(2.8)54.47 \n\nOutstanding at March 31, 2024728.0 48.30 \n\nGranted109.7 69.94 \n\nExercised(303.4)48.77 \n\nForfeited(15.6)60.87 \n\nOutstanding at March 31, 2025518.7 52.22 \n\nGranted111.6 82.30 \n\nExercised(80.3)53.36 \n\nForfeited(46.0)76.62 \n\nExpired(3.7)65.56 \n\nOutstanding at March 31, 2026500.3 56.40 6.0$4,342 \n\nExercisable at March 31, 2026335.8 47.44 4.8$4,342 \n\nThe aggregate intrinsic value of options exercised during 2026, 2025 and 2024 was $2.1 million, $9.3 million and $10.0 million, respectively.\n\n14.     Accumulated Other Comprehensive Loss\n\nThe table below presents accumulated other comprehensive income (loss) (“AOCI”), which affects equity and results from recognized transactions and other economic events, other than transactions with owners in their capacity as owners.\n\nAOCI consisted of the following at March 31, 2026 and 2025:\n\nMarch 31,\n\n(In thousands)2026 2025\n\nComponents of Accumulated Other Comprehensive Loss \n\nCumulative translation adjustment$(28,916) $(38,303)\n\nUnrecognized net gain on pension plans, net of tax of $(163) and $(192), respectively\n548 644 \n\nAccumulated other comprehensive loss, net of tax$(28,368) $(37,659)\n\n72\n\n15.    Income Taxes\n\nRecent U.S. tax legislation\n\nOn July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. We evaluated the provisions of the OBBBA effective during fiscal year ended March 31, 2026 and determined that there was no material impact on our estimated annual effective tax rate.\n\nIncome before income taxes consists of the following:\n\nYear Ended March 31,\n\n(In thousands)202620252024\n\nUnited States$237,057 $249,803 $239,405 \n\nForeign20,439 34,386 36,620 \n\nTotal income before income taxes$257,496 $284,189 $276,025 \n\nThe provision for income taxes consists of the following:\n\nYear Ended March 31,\n\n (In thousands)202620252024\n\nCurrent   \n\nFederal$31,573 $34,156 $28,302 \n\nState4,455 5,914 3,662 \n\nForeign8,614 11,092 11,652 \n\nDeferred   \n\nFederal17,297 12,237 20,582 \n\nState8,004 5,210 3,034 \n\nForeign(2,748)975 (546)\n\nTotal provision for income taxes$67,195 $69,584 $66,686 \n\n73\n\nThe principal components of our deferred tax balances are as follows:\n\nMarch 31,\n\n(In thousands)20262025\n\nDeferred Tax Assets  \n\nAllowance for credit losses and sales returns$3,404 $2,920 \n\nInventory capitalization1,941 2,069 \n\nInventory reserves2,432 1,221 \n\nNet operating loss carryforwards9,225 — \n\nState income taxes11,759 9,631 \n\nAccrued liabilities3,810 1,275 \n\nAccrued compensation3,067 3,653 \n\nStock compensation3,746 3,506 \n\nResearch and development1,692 6,231 \n\nLease liability11,732 12,086 \n\nUnrealized foreign exchange loss401 245 \n\nOther8,705 11,268 \n\nTotal deferred tax assets$61,914 $54,105 \n\nDeferred Tax Liabilities  \n\nProperty, plant and equipment$(11,692)$(9,081)\n\nIntangible assets(476,973)(451,368)\n\nRight-of-use asset(12,009)(12,413)\n\nTotal deferred tax liabilities$(500,674)$(472,862)\n\nNet deferred tax liability$(438,760)$(418,757)\n\nThe total net deferred tax liability shown above is net of $8.7 million and $0.8 million of deferred tax assets which are included in Other long-term assets on the Consolidated Balance Sheets as of March 31, 2026 and 2025, respectively.\n\nWe had no valuation allowance as of March 31, 2026 and March 31, 2025.\n\n74\n\nFor the year ended March 31, 2026, we adopted ASU 2023-09 on a prospective basis. Differences between the provision for income taxes at the U.S. federal statutory income tax rate and the provision in the consolidated statements of operations are as follows:\n\n Year Ended March 31,\n\n2026\n\n(In thousands) %\n\nIncome tax provision at statutory rate$54,074 21.0 %\n\nState income taxes (net of Federal income tax benefit) (a)\n11,526 4.5 %\n\nForeign tax effects:\n\n     Australia:\n\n          Statutory tax rate difference between Australia and the U.S.2,457 1.0 %\n\n     Other foreign jurisdictions(964)(0.5)%\n\nEffect of cross-border tax laws:\n\n     Global intangible low taxed income211 0.1 %\n\n     Foreign derived intangible income(1,032)(0.4)%\n\n     Subpart F130 0.1 %\n\nTax credits:\n\n     Research and Development(736)(0.3)%\n\nNontaxable or nondeductible items:\n\n     Compensation limitations1,229 0.5 %\n\n     Stock compensation(149)(0.1)%\n\nChanges in unrecognized tax liabilities241 0.1 %\n\nOther208 0.1 %\n\nTotal provision for income taxes$67,195 26.1 %\n\n(a) During the year ended March 31, 2026, the state of California comprised more than 50% of the tax effect in this category.\n\nDifferences between the provision for income taxes at the U.S. federal statutory income tax rates and the provision prior to the adoption of ASU 2023-09 are as follows:\n\n Year Ended March 31,\n\n20252024\n\n(In thousands) % %\n\nIncome tax provision at statutory rate$59,680 21.0 $57,965 21.0 \n\nForeign tax provision4,691 1.7 3,164 1.1 \n\nState income taxes provision, net of federal income tax benefit10,187 3.6 6,004 2.2 \n\nResearch and development(600)(0.2)(700)(0.3)\n\nCompensation limitations1,312 0.5 1,910 0.7 \n\nForeign tax credit(622)(0.2)(889)(0.3)\n\nUncertain tax positions(3,694)(1.3)390 0.1 \n\nOther(1,370)(0.6)(1,158)(0.3)\n\nTotal provision for income taxes$69,584 24.5 $66,686 24.2 \n\n75\n\nThe components of Income taxes paid, net of refunds received, consists of the following:\n\n(In thousands)Year Ended March 31, 2026\n\nFederal$28,100 \n\nState6,143 \n\nForeign:\n\n     Australia10,512 \n\n     Other foreign1,189 \n\nIncome taxes paid, net of refunds$45,944 \n\nUncertain tax liability activity is as follows:\n\n 202620252024\n\n(In thousands)  \n\nBalance – beginning of year$1,066 $3,325 $3,295 \n\nReductions based on lapse of statute of limitations(228)(2,649)(417)\n\nPayments and other movements428 390 447 \n\nBalance – end of year$1,266 $1,066 $3,325 \n\nWe recognize interest and penalties related to uncertain tax positions as a component of income tax expense. We did not incur any material interest or penalties related to income taxes in 2026, 2025 or 2024. We are subject to taxation in the United States and various state and foreign jurisdictions, and we are generally open to examination from the year ended March 31, 2022 forward. We are currently under audit with the California state taxing authority for the years ended March 31, 2023 and 2024.\n\nWe have made the assessment that the undistributed after-tax earnings from our foreign subsidiaries through March 31, 2026 were not indefinitely reinvested and can be remitted to the U.S. parent in a tax-neutral transaction under either the subsidiary countries' relevant income tax treaties or their internal tax law. Accordingly, we have not recorded a deferred tax liability related to these undistributed earnings.\n\n16.     Employee Retirement Plans\n\nWe have a defined contribution plan in which all U.S. full-time employees are eligible to participate. The participants may contribute from 1% to 70% of their compensation, as defined in the plan. We match 100% of the first 3%, plus 50% of the next 3%, of each participant's base compensation with full vesting immediately. We may also make additional contributions to the plan as determined by the Board of Directors. The total expense for the defined contribution plan was $2.1 million, $2.0 million and $2.0 million for 2026, 2025 and 2024, respectively.\n\nIn connection with the acquisition of Pillar5 in December 2025, certain eligible employees in Canada participate in a defined contribution pension plan. The Company’s obligation under this plan is limited to specified employer contributions in accordance with the plan’s terms. \n\nCertain employees of our Lynchburg manufacturing facility are covered by an unfunded non-qualified plan.\n\nBenefit Obligations and Plan Assets\n\nThe following table summarizes the changes in the U.S. pension plan obligations and includes a statement of the plan's funded status as of March 31, 2026 and 2025:\n\n76\n\nMarch 31,\n\n (In thousands)20262025\n\nChange in benefit obligation:\n\nProjected benefit obligation at beginning of period$3,232 $3,381 \n\nInterest cost141 155 \n\nActuarial gain89 66 \n\nBenefits paid(370)(370)\n\nProjected benefit obligations at end of year$3,092 $3,232 \n\nChange in plan assets:\n\nFair value of plan assets at beginning of period$— $— \n\nEmployer contribution370 370 \n\nBenefits paid(370)(370)\n\nSettlements paid with termination of qualified plan— — \n\nFair value of plan assets at end of year$— $— \n\nFunded status at end of year$(3,092)$(3,232)\n\nAmounts recognized in the balance sheet at the end of the period consist of the following:\n\nMarch 31,\n\n (In thousands)20262025\n\nCurrent liability$361 $362 \n\nLong-term liability2,731 2,870 \n\nTotal liabilities$3,092 $3,232 \n\nThe primary components of Net Periodic Benefit Cost consist of the following:\n\nYear Ended March 31,\n\n (In thousands)202620252024\n\nInterest cost$141 $155 $152 \n\nNet periodic benefit cost $141 $155 $152 \n\nThe following table provides information regarding the accumulated benefit obligation of our pension plan:\n\nMarch 31,\n\n (In thousands)20262025\n\nAccumulated benefit obligation$3,092 $3,232 \n\nProjected benefit obligations$3,092 $3,232 \n\nThe following table includes amounts that are expected to be contributed to the unfunded plan by the Company. It reflects benefit payments that are made directly from the Company's assets. The amounts in the table are actuarially determined and reflect the Company's best estimate given its current knowledge; actual amounts could be materially different.\n\n77\n\n (In thousands)Pension Benefits\n\nEmployer contributions:\n\n2027 (expectation) to participant benefits$361 \n\nExpected benefit payments year ending March 31,\n\n2027$361 \n\n2028347 \n\n2029332 \n\n2030316 \n\n2031301 \n\n2032-20351,260 \n\nSince our plan is unfunded, there were no plan assets as of March 31, 2025 or 2026.\n\nThe following tables show the unrecognized actuarial gain included in accumulated other comprehensive income (loss) at March 31, 2026, 2025 and 2024:\n\n (In thousands)\n\nBalances in accumulated other comprehensive loss as of March 31, 2024:\n\nUnrecognized actuarial (gain)$(942)\n\nBalances in accumulated other comprehensive loss as of March 31, 2025:\n\nUnrecognized actuarial (gain)$(836)\n\nBalances in accumulated other comprehensive loss as of March 31, 2026:\n\nUnrecognized actuarial (gain)$(711)\n\nThere was no unrecognized prior service credit for any of the periods presented.\n\nAssumptions used in determining the actuarial present value of the net periodic benefit cost (income) for the fiscal years ended March 31, 2026, 2025 and 2024 were as follows:\n\nMarch 31,\n\n202620252024\n\nKey assumptions:\n\nDiscount rate\n  5.02%\n\n  4.97%\n\n4.88%\n\nAssumptions used in determining the actuarial present value of the benefit obligation as of March 31, 2026 and 2025 were as follows:\n\nMarch 31,\n\n20262025\n\nKey assumptions:\n\nDiscount rate\n5.02%\n\n4.97%\n\n17.     Commitments and Contingencies\n\nWe are involved from time to time in routine legal matters and other claims incidental to our business.  We review outstanding claims and proceedings internally and with external counsel as necessary to assess probability and amount of potential loss.  These assessments are re-evaluated at each reporting period and as new information becomes available to determine whether a reserve should be established or if any existing reserve should be adjusted.  The actual cost of resolving a claim or proceeding ultimately may be substantially different than the amount of the recorded reserve.  In addition, because it is not\n\n78\n\npermissible under GAAP to establish a litigation reserve until the loss is both probable and estimable, in some cases there may be insufficient time to establish a reserve prior to the actual incurrence of the loss (upon verdict and judgment at trial, for example, or in the case of a quickly negotiated settlement).  We believe the resolution of routine legal matters and other claims incidental to our business, taking our reserves into account, will not be material to our financial condition or results of operations.\n\nLease Commitments\n\nSee Note 8 for a description of our operating and finance leases.\n\nPurchase Commitments\n\nWe have supply agreements for the manufacture of some of our products. The following table shows the minimum amounts that we are committed to pay under these agreements:\n\n(In thousands) \n\nYear Ending March 31,Amount\n\n2027$6,135 \n\n20285,640 \n\n20293,164 \n\n2030102 \n\n2031— \n\nThereafter— \n\n $15,041 \n\n18.     Concentrations of Risk\n\nOur revenues are concentrated in the area of OTC Healthcare.  We sell our products to mass merchandisers, drug/drug wholesale, food, dollar, convenience and club stores and e-commerce channels.  During 2026, 2025 and 2024, approximately 38%, 37% and 38%, respectively, of our gross revenues were derived from our five top selling brands.  Two customers, Walmart and Amazon, accounted for more than 10% of our gross revenues during 2026. During 2026, 2025 and 2024, Walmart accounted for approximately 20%, 19% and 20%, respectively, of our gross revenues. During 2026, 2025 and 2024, Amazon accounted for approximately 15%, 14%, and 11% respectively, of our gross revenues. At March 31, 2026, approximately 18% of our accounts receivable were owed by Walmart and Amazon.\n\nOur product distribution in the United States is managed by a third-party through one primary distribution center in Clayton, Indiana. We also operate three manufacturing facilities in the United States, Canada and Australia which manufacture products representing 21% of our gross revenues. A natural disaster, such as tornado, earthquake, flood, or fire at our distribution center or our own or a third-party manufacturing facility could damage our inventory and/or materially impair our ability to distribute our products to customers in a timely manner or at a reasonable cost. In addition, a serious disruption caused by performance or contractual issues with our third-party distribution manager, or labor shortages or contagious disease outbreaks or other public health emergencies at our distribution center or manufacturing facilities could also materially impact our product distribution. Any disruption could result in increased costs, expense and/or shipping times, and could harm our reputation and cause us to incur customer fees and penalties. We could also incur significantly higher costs and experience longer lead times should we be required to replace our distribution center, the third-party distribution manager or the manufacturing facilities. As a result, any serious disruption could have a material adverse effect on our business, financial condition and results of operations.\n\nAt March 31, 2026, we had relationships with 95 third-party manufacturers.  Of those, we had long-term contracts with 18 manufacturers that produced items that accounted for approximately 60% of gross sales for 2026, compared to 16 manufacturers with long-term contracts that accounted for approximately 58% of gross sales in 2025.  One of our suppliers, a privately owned pharmaceutical manufacturer with whom we have a long-term supply agreement, produced products that accounted for more than 10% of our gross revenues during 2026, 2025 and 2024. This manufacturer accounted for approximately 21% of our gross revenues in each of 2026 and 2025 and 20% of our gross revenues in 2024, while we accounted for a significant portion of their gross revenues over that time period. No other single third-party supplier produces products that account for 10% or more of our gross revenues.  The fact that we do not have long-term contracts with certain manufacturers means that they could cease manufacturing our products at any time and for any reason or initiate arbitrary and costly price increases, which could have a material adverse effect on our business and results of operations. Although we are continually in the process of negotiating long-term contracts with certain key manufacturers, we may not be able to reach a timely agreement, which could have a material adverse effect on our business and results of operations.\n\n79\n\n19.     Business Segments\n\nSegment information has been prepared in accordance with the Segment Reporting topic of FASB ASC 280. Our reportable segments consist of (i) North American OTC Healthcare and (ii) International OTC Healthcare. The primary measure used by our chief operating decision maker (\"CODM\") to evaluate the performance of our operating segments and allocate resources to these segments is contribution margin, which we define as gross profit less advertising and marketing expenses. Information regarding total assets by operating segment is not provided to our CODM. Our CODM is our President and Chief Executive Officer.\n\n  \n\nThe tables below summarize information about our operating and reportable segments.\n\n Year Ended March 31, 2026\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nTotal segment revenues*$913,576 $175,129 $1,088,705 \n\nCost of sales412,699 80,428 493,127 \n\nGross profit500,877 94,701 595,578 \n\nAdvertising and marketing120,847 27,935 148,782 \n\nContribution margin$380,030 $66,766 446,796 \n\nOther operating expenses 137,387 \n\nOperating income $309,409 \n\n*Intersegment revenues of $3.8 million were eliminated from the North American OTC Healthcare segment.\n\n Year Ended March 31, 2025\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nTotal segment revenues*$960,010 $177,752 $1,137,762 \n\nCost of sales428,871 74,428 503,299 \n\nGross profit531,139 103,324 634,463 \n\nAdvertising and marketing129,431 26,292 155,723 \n\nContribution margin$401,708 $77,032 478,740 \n\nOther operating expenses**141,965 \n\nOperating income$336,775 \n\n* Intersegment revenues of $3.9 million were eliminated from the North American OTC Healthcare segment.\n\n**Other operating expenses for the year ended March 31, 2025 includes a tradename impairment charge of $12.5 million\n\n Year Ended March 31, 2024\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nTotal segment revenues* $958,260 $167,097 $1,125,357 \n\nCost of sales429,361 71,548 500,909 \n\nGross profit528,899 95,549 624,448 \n\nAdvertising and marketing131,494 21,821 153,315 \n\nContribution margin$397,405 $73,728 471,133 \n\nOther operating expenses128,704 \n\nOperating loss$342,429 \n\n*Intersegment revenues of $3.7 million were eliminated from the North American OTC Healthcare segment.\n\n80\n\nThe tables below summarize information about our segment revenues from similar product groups.\n\nYear Ended March 31, 2026\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nAnalgesics$108,300 $5,636 $113,936 \n\nCough & Cold76,878 25,031 101,909 \n\nWomen's Health205,053 22,712 227,765 \n\nGastrointestinal179,300 80,488 259,788 \n\nEye & Ear Care126,132 16,807 142,939 \n\nDermatologicals116,618 9,313 125,931 \n\nOral Care86,958 14,093 101,051 \n\nOther OTC14,337 1,049 15,386 \n\nTotal segment revenues$913,576 $175,129 $1,088,705 \n\nYear Ended March 31, 2025\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nAnalgesics$112,173 $5,524 $117,697 \n\nCough & Cold82,533 23,681 106,214 \n\nWomen's Health216,335 20,496 236,831 \n\nGastrointestinal174,891 81,052 255,943 \n\nEye & Ear Care158,858 24,464 183,322 \n\nDermatologicals120,770 8,177 128,947 \n\nOral Care81,868 13,162 95,030 \n\nOther OTC12,582 1,196 13,778 \n\nTotal segment revenues$960,010 $177,752 $1,137,762 \n\nYear Ended March 31, 2024\n\n(In thousands)North American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nAnalgesics$111,996 $5,455 $117,451 \n\nCough & Cold93,575 25,445 119,020 \n\nWomen's Health217,103 23,318 240,421 \n\nGastrointestinal160,889 70,721 231,610 \n\nEye & Ear Care156,553 22,870 179,423 \n\nDermatologicals123,288 5,814 129,102 \n\nOral Care83,212 13,093 96,305 \n\nOther OTC11,644 381 12,025 \n\nTotal segment revenues$958,260 $167,097 $1,125,357 \n\nOur total segment revenues by geographic area are as follows:\n\nYear Ended March 31,\n\n202620252024\n\nUnited States$850,414 $897,540 $886,470 \n\nRest of world238,291 240,222 238,887 \n\nTotal$1,088,705 $1,137,762 $1,125,357 \n\n81\n\nOur consolidated goodwill and intangible assets have been allocated to the reportable segments as follows:\n\nMarch 31, 2026\n\n(In thousands)\nNorth American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nGoodwill$550,987 $30,122 $581,109 \n\nIntangible assets \n\nIndefinite-lived2,068,752 74,923 2,143,675 \n\nFinite-lived138,903 17,027 155,930 \n\nIntangible assets, net2,207,655 91,950 2,299,605 \n\nTotal$2,758,642 $122,072 $2,880,714 \n\nMarch 31, 2025\n\n(In thousands)\nNorth American OTC\nHealthcareInternational OTC\nHealthcareConsolidated\n\nGoodwill$498,936 $28,489 $527,425 \n\nIntangible assets \n\nIndefinite-lived2,068,752 68,234 2,136,986 \n\nFinite-lived141,234 17,130 158,364 \n\nIntangible assets, net2,209,986 85,364 2,295,350 \n\nTotal$2,708,922 $113,853 $2,822,775 \n\nOur goodwill and intangible assets by geographic area are as follows:\n\nYear Ended March 31,\n\n20262025\n\nUnited States$2,706,591 $2,708,922 \n\nRest of world174,123 113,853 \n\nTotal$2,880,714 $2,822,775 \n\n82\n\n20.    Subsequent Event\n\nShare Based Compensation\n\nOn May 4, 2026, the Compensation Committee granted 101,022 PSUs, 94,112 time-based RSUs and stock options to acquire 179,093 shares of our common stock to certain executive officers and employees under the 2020 Plan. PSUs are earned based on achievement of the performance objectives set by the Compensation Committee and, if earned, vest in their entirety on the three-year anniversary of the date of grant. Time-based RSUs vest either 33.3% per year over three years or in their entirety on the three-year or four-year anniversary of the date of grant. Upon vesting, both PSUs and RSUs will be settled in shares of our common stock. Executives of the Company may elect to defer settlement of a self-defined percentage of vested shares to a specified date or six months after the executive is separated from service to the Company or on a change in control of the Company. The stock options will vest 33.3% per year over three years and are exercisable for up to ten years from the date of grant. These stock options were granted at an exercise price of $55.31 per share, which is equal to the closing price for our common stock on the date of the grant. Except in cases of death, disability or retirement, termination of employment prior to vesting will result in forfeiture of the unvested PSUs, RSUs and the stock options. Vested stock options will remain exercisable by the employee after termination, subject to the terms of the 2020 Plan.\n\nAcquisition of LaCorium Health\n\nWe have entered into a definitive agreement to acquire LaCorium Health (\"LaCorium\") for approximately $150.0 million. The transaction, subject to customary conditions, is expected to close in the second quarter of fiscal 2027. Founded in Australia and introduced in 1998, LaCorium is a leader in Australian therapeutic skin care designed to treat individual skin ailments. Products are sold under the Dermal Therapy®, Flexitol®, and Crampeze® brands in need-state categories such as lip care (cold sores), skin care (eczema & acne), foot care (heel balm, antifungal), hair & scalp (eczema), and more. Globally, products are sold in approximately 20 countries across North America, Asia, and the Middle East, under the Flexitol® and Crampeze® brand names.\n\n83\n\nSCHEDULE II\n\nVALUATION AND QUALIFYING ACCOUNTS\n\n(In thousands)Balance at\nBeginning of\nYearAmounts\nCharged to\nExpense (Income) \n \n\nDeductions\n\n \n\nOther\nBalance at\nEnd of\nYear\n\nYear Ended March 31, 2026     \n\nReserves for sales returns and allowance$10,835 $73,132  $(73,768)$— $10,199 \n\nReserve for cash discounts3,133 20,392 (20,439)— 3,086 \n\nAllowance for credit losses2,346 2,710  (154)— 4,902 \n\nYear Ended March 31, 2025     \n\nReserves for sales returns and allowance11,162 69,972  (70,299)— 10,835 \n\nReserve for cash discounts2,869 21,804 (21,540)— 3,133 \n\nAllowance for credit losses2,346 9  (9)— 2,346 \n\nYear Ended March 31, 2024     \n\nReserves for sales returns and allowance15,382 58,094 (62,314)— 11,162 \n\nReserve for cash discounts3,025 21,173 (21,329)— 2,869 \n\nAllowance for credit losses1,798 703  (155)— 2,346 \n\n84"}