In the year ended March 31, 2026, the Company recorded a loss on asset impairment and restructuring which primarily related to the non-cash impairment of the Storz & Bickel goodwill and Storz & Bickel brand. Employee-related restructuring costs were also incurred throughout the year.


	Year ended March 31, 2026
Costs recorded in cost of goods sold:
Inventory write-downs and other charges	$	9,878

Costs recorded in operating expenses:
Impairment of property, plant and equipment, net		1,715
Impairment of intangible assets		8,028
Impairment of goodwill		47,491
Employee-related, other asset impairment and other restructuring costs		9,845
Asset impairment and restructuring costs		67,079

Total restructuring, asset impairments and related costs	$	76,957

In the year ended March 31, 2025, the Company recorded a loss on asset impairment and restructuring which primarily related to the non-cash impairment of divestiture-related assets, employee restructuring costs and other costs associated with previous restructuring actions. This was partially offset by a gain related to the Lease Renegotiation and reversal of a previous restructuring charge.


	Year ended March 31, 2025
Costs recorded in cost of goods sold:
Inventory write-downs and other charges	$	1,991

Costs recorded in operating expenses:
Impairment of property, plant and equipment, net		13,523
Contractual and other settlement obligations		(1,942	)
Employee-related, other asset impairment and other restructuring costs		19,652
Asset impairment and restructuring costs		31,233

Total restructuring, asset impairments and related costs	$	33,224

In the year ended March 31, 2024, the Company recorded charges associated with operational changes resulting from its continuing strategic review of its business. Charges relate to various incremental impairment losses and other costs associated with the restructuring of the Company’s Canadian cannabis operations that were initiated in the three months ended March 31, 2023, in addition to continued evaluation of the Company’s overall operations throughout fiscal 2024. The Company also recognized impairment charges associated with the This Works Divestiture (as defined below), as described in Note 29(a) below.

Offsetting the charges above was a gain on the sale of the Company’s production facility at 1 Hershey Drive in Smiths Falls, Ontario. The gain was due to the sale proceeds exceeding the carrying value that was previously impaired at March 31, 2023.

The other impairment charges described below related to goodwill and intangible assets are in addition to the restructuring and impairment costs described above.

In the year ended March 31, 2024, the Company recognized goodwill impairment charges totaling $42,081 relating to the Company’s Storz & Bickel reporting unit. Refer to Note 16 for further details.

In the year ended March 31, 2024, the Company recognized asset impairment losses totaling $17,266 relating primarily to This Works prior to divestiture and the Storz & Bickel’s acquired brand intangible asset.

A summary of the pre-tax charges totaling $65,001 recognized in connection with the Company’s restructuring actions and other impairments is as follows:


	Year ended March 31, 2024
	Restructuring and other charges			Other impairments		Total
Costs recorded in cost of goods sold:
Reversal of inventory write-downs and other charges	$	(986	)	$	-	$	(986	)

Costs recorded in operating expenses:
(Gain) impairment of property, plant and equipment, net		(40,578	)		-		(40,578	)
Impairment of intangible assets		-			17,266		17,266
Impairment of goodwill		-			42,081		42,081
Contractual and other settlement obligations		(2,129	)		-		(2,129	)
Employee-related and other restructuring costs		29,193			20,154		49,347
Asset impairment and restructuring costs		(13,514	)		79,501		65,987

Total restructuring, asset impairments and related costs	$	(14,500	)	$	79,501	$	65,001