INTANGIBLE ASSETS

12 Months Ended

Mar. 31, 2023


			Capitalized						Technology,			Other
(amounts in millions)			development		Customer				software		intangible
	Goodwill			costs	relationships		Licenses		and ERP			assets		Total
Net book value as at March 31, 2021	$	1,173.2	$	215.7	$	297.5	$	279.4	$	71.5	$	18.5	$	2,055.8
Additions – internal development		—		55.6		—		—		35.0		—		90.6

Business combinations (Note 2)		1,316.8		2.2		323.7		—		169.7		—		1,812.4


Amortization		—		(32.7)		(40.7)		(16.0)		(18.3)		(1.8)		(109.5)
Impairment		—		(4.2)		—		—		—		—		(4.2)
Cloud computing transition adjustment (Note 5)		—		—		—		—		(13.4)		—		(13.4)
Transfers and others		—		(2.1)		(0.1)		(0.1)		0.4		—		(1.9)
Foreign currency exchange differences		(25.7)		(0.1)		(5.4)		(0.5)		(1.2)		(0.6)		(33.5)
Net book value as at March 31, 2022	$	2,464.3	$	234.4	$	575.0	$	262.8	$	243.7	$	16.1	$	3,796.3
Additions – internal development		—		87.1		—		—		39.3		—		126.4

Business combinations (Note 2)		35.8		—		(11.8)		—		3.0		—		27.0
Amortization		—		(31.1)		(44.4)		(16.1)		(29.5)		(1.8)		(122.9)
Impairment reversal – net		—		6.3		—		—		—		—		6.3

Transfers and others		—		(3.7)		(1.3)		—		(0.9)		0.4		(5.5)
Foreign currency exchange differences		163.2		1.7		36.8		6.7		14.0		0.8		223.2
Net book value as at March 31, 2023	$	2,663.3	$	294.7	$	554.3	$	253.4	$	269.6	$	15.5	$	4,050.8



			Capitalized						Technology,			Other
			development		Customer				software		intangible
	Goodwill			costs	relationships		Licenses			and ERP		assets		Total
Cost	$	2,501.8	$	480.9	$	794.7	$	312.8	$	445.4	$	51.1	$	4,586.7
Accumulated amortization and impairment		(37.5)		(246.5)		(219.7)		(50.0)		(201.7)		(35.0)		(790.4)
Net book value as at March 31, 2022	$	2,464.3	$	234.4	$	575.0	$	262.8	$	243.7	$	16.1	$	3,796.3
Cost	$	2,699.7	$	573.3	$	829.6	$	320.9	$	513.2	$	54.0	$	4,990.7
Accumulated amortization and impairment		(36.4)		(278.6)		(275.3)		(67.5)		(243.6)		(38.5)		(939.9)
Net book value as at March 31, 2023	$	2,663.3	$	294.7	$	554.3	$	253.4	$	269.6	$	15.5	$	4,050.8

During the year ended March 31, 2023, amortization of $92.9 million (2022 – $77.2 million) has been recorded in cost of sales, $29.0 million (2022 – $30.6 million) in research and development expenses and $1.0 million (2022 – $1.7 million) in selling, general and administrative expenses.

Goodwill

The carrying amount of goodwill allocated to the Company's CGUs per operating segment is as follows:


			Defense
	Civil Aviation		and Security		Healthcare			Total
Net book value as at March 31, 2021	$	789.2	$	279.3	$	104.7	$	1,173.2
Business combinations (Note 2)		283.4		1,025.6		7.8		1,316.8

Foreign currency exchange differences		(25.8)		0.9		(0.8)		(25.7)
Net book value as at March 31, 2022	$	1,046.8	$	1,305.8	$	111.7	$	2,464.3
Business combinations (Note 2)		25.6		10.2		—		35.8

Foreign currency exchange differences		53.2		101.3		8.7		163.2
Net book value as at March 31, 2023	$	1,125.6	$	1,417.3	$	120.4	$	2,663.3

Goodwill is allocated to CGUs or a group of CGUs, which generally corresponds to the Company’s operating segments or one level below.

The Company performed its annual impairment test for goodwill during the fourth quarter of fiscal 2023. The Company determined the recoverable amount of the Civil Aviation, Defense and Security and Healthcare CGUs based on fair value less costs of disposal calculations. The recoverable amount of each CGU is calculated using estimated cash flows derived from the Company's five-year strategic plan as approved by the Board of Directors. The cash flows derived from the Company's five-year strategic plan are based on management’s expectations of market growth, industry reports and trends, and past performance. Cash flows subsequent to the five‑year period were extrapolated using a constant growth rate of 2% to 3%. These growth rates were consistent with forecasts included in industry reports specific to the industry in which each CGU operates. The discount rates used to calculate the recoverable amounts reflect each CGUs’ specific risks and market conditions and range from 8% to 15%.

During the year ended March 31, 2023, the estimated recoverable amount of each CGU exceeded their carrying amount. As a result, there was no impairment identified.

Variations in the Company assumptions and estimates, particularly in the expected growth rates embedded in its cash flow projections and the discount rate could have a significant impact on fair value. For the year ended March 31, 2023, an increase of 1% in the discount rate or a decrease of 1% in the growth rate would not have resulted in an impairment charge in any of our CGUs or group of CGUs.