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GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended
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Jun. 30, 2023
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS |
6. | GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL The following table summarizes the changes in the carrying amount of goodwill for the three months ended June 30, 2023 (in thousands):
|  | Technology Segment |  |  | Product |  |  | Professional Services |  |  | Managed Services |  |  | Total |
Balance March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 144,778 |  |  | $ | - |  |  |  | - |  |  |  | - |  |  |  | 144,778 |
Accumulated impairment losses |  |  | (8,673 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (8,673 | )
Net carrying amount |  | $ | 136,105 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 136,105 |
Reporting unit change |  |  | (136,105 | ) |  |  | 106,497 |  |  |  | 19,712 |  |  |  | 9,896 |  |  |  | - |
Acquisitions |  |  | - |  |  |  | 19,672 |  |  |  | 2,456 |  |  |  | - |  |  |  | 22,128 |
Impairment losses |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Foreign currency translations |  |  | - |  |  |  | 37 |  |  |  | 7 |  |  |  | 3 |  |  |  | 47 |
Balance June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | - |  |  | $ | 134,879 |  |  | $ | 22,175 |  |  | $ | 9,899 |  |  | $ | 166,953 |
Accumulated impairment losses |  |  | - |  |  |  | (6,787 | ) |  |  | (1,256 | ) |  |  | (630 | ) |  |  | (8,673 | )
Net carrying amount |  | $ | - |  |  | $ | 128,092 |  |  | $ | 20,919 |  |  | $ | 9,269 |  |  | $ | 158,280 |
Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. As of March 31, 2023, our entire balance related to our technology segment, which we had also determined to be one reporting unit. During the first quarter ended June 30, 2023, we separated our technology segment into three different reporting units: product, professional services, and managed services. As such, we allocated our goodwill and impairment losses to the reporting units affected using a relative fair value. The carrying value of goodwill was $158.3 million and $136.1 million as of June 30, 2023, and March 31, 2023, respectively. Our goodwill balance increased by $22.2 million over the three months ended June 30, 2023, due to $22.1 million in goodwill additions from our acquisition of Network Solutions Group (“NSG”), and from foreign currency translations of $0.1 million. Please refer to Note 15, “Business Combinations” for details of our acquisition. We test goodwill for impairment on an annual basis, as of the first day of our third fiscal quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. In our annual test as of October 1, 2022, we performed a quantitative assessment of goodwill and concluded that the fair value of our technology reporting unit exceeded its carrying value. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. OTHER INTANGIBLE ASSETS Our other intangible assets consist of the following on June 30, 2023, and March 31, 2023 (in thousands):
|  | June 30, 2023 |  |  | March 31, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Purchased intangibles |  | $ | 115,463 |  |  | $ | (64,897 | ) |  | $ | 50,566 |  |  | $ | 85,449 |  |  | $ | (61,376 | ) |  | $ | 24,073 |
Capitalized software development |  |  | 10,516 |  |  |  | (9,829 | ) |  |  | 687 |  |  |  | 10,516 |  |  |  | (9,544 | ) |  |  | 972 |
Total |  | $ | 125,979 |  |  | $ | (74,726 | ) |  | $ | 51,253 |  |  | $ | 95,965 |  |  | $ | (70,920 | ) |  | $ | 25,045 |
Purchased intangibles, consisting mainly of customer relationships, are generally amortized between 5 to 10 years. Capitalized software development is generally amortized over 5 years. Total amortization expense for customer relationships and other intangible assets was $3.5 million and $2.2 million for the three months ended June 30, 2023, and June 30, 2022, respectively.

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