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Goodwill and intangible assets | 12 Months Ended
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Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and intangible assets | 5. Goodwill and intangible assets Goodwill Goodwill relates to the 2015 acquisition of Nextracker and the 2016 acquisition of BrightBox by Flex on behalf of Nextracker. As of March 31, 2023 and March 31, 2022, goodwill totaled $265.2 million, respectively and is not deductible for tax purposes. Other intangible assets Nextracker amortizes identifiable intangible assets consisting of developed technology, customer relationships, and trade names because these assets have finite lives. Nextracker’s intangible assets are amortized on a straight-line basis over the estimated useful lives. The basis of amortization approximates the pattern in which the assets are utilized over their estimated useful lives. No residual value is estimated for any intangible assets. The fair value of Nextracker’s intangible assets is determined based on management’s estimates of cash flows and recoverability. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. An impairment loss is recognized when the carrying amount of an intangible asset exceeds its fair value. Nextracker reviewed the carrying value of its intangible assets as of March 31, 2023 and 2022, and concluded that such amounts continued to be recoverable. The components of identifiable intangible assets are as follows:
|  | Weighted- average remaining useful life (in years) |  |  | As of March 31, 2023 |  |  | As of March 31, 2022 |
(In thousands) |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |  |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net carrying amount |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade name and other intangibles |  |  | 5 |  |  | $ | 2,500 |  |  | $ | (1,179 | ) |  | $ | 1,321 |  |  | $ | 15,900 |  |  | $ | (13,372 | ) |  | $ | 2,528 |
Total |  |  |  |  |  | $ | 2,500 |  |  | $ | (1,179 | ) |  | $ | 1,321 |  |  | $ | 15,900 |  |  | $ | (13,372 | ) |  | $ | 2,528 |
The gross carrying amount of intangible assets are removed when fully amortized. Total intangible asset amortization expense recognized in operations during the fiscal years ended March 31, 2023, 2022 and 2021 are as follows:
|  | Fiscal year ended March 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Cost of sales |  | $ | 250 |  |  | $ | 4,043 |  |  | $ | 8,082 |
Selling general and administrative expense |  |  | 957 |  |  |  | 4,422 |  |  |  | 6,931 |
Total amortization expense |  | $ | 1,207 |  |  | $ | 8,465 |  |  | $ | 15,013 |
Estimated future annual amortization expense for the above amortizable intangible assets are as follows:
(in thousands) |  | Amount |
Fiscal year ending March 31, |  |  |  |
2024 |  | $ | 250 |
2025 |  |  | 250 |
2026 |  |  | 250 |
2027 |  |  | 250 |
2028 |  |  | 250 |
Thereafter |  |  | 71 |
Total amortization expense |  | $ | 1,321 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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