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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Mar. 31, 2024
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 years ended March 31, 2024, and March 31, 2023, respectively (in thousands):
|  | Technology |  |  |  |  |  | Professional |  |  | Managed |  |  |  |
|  | Segment |  |  | Product |  |  | Services |  |  | Services |  |  | Total |
Balance, March 31, 2022 (1) |  | $ | 126,543 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 126,543 |
Acquisitions |  |  | 9,694 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,694 |
Foreign currency translations |  |  | (132 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (132 | )
Reporting unit change |  |  | (136,105 | ) |  |  | 106,497 |  |  |  | 19,712 |  |  |  | 9,896 |  |  |  | - |
Balance, March 31, 2023 (1) |  | $ | - |  |  | $ | 106,497 |  |  | $ | 19,712 |  |  | $ | 9,896 |  |  | $ | 136,105 |
Acquisitions |  |  | - |  |  |  | 22,586 |  |  |  | 2,780 |  |  |  | - |  |  |  | 25,366 |
Foreign currency translations |  |  | - |  |  |  | 25 |  |  |  | 5 |  |  |  | 2 |  |  |  | 32 |
Balance, March 31, 2024 (1) |  | $ | - |  |  | $ | 129,108 |  |  | $ | 22,497 |  |  | $ | 9,898 |  |  | $ | 161,503 |
(1) | Balance is net of $8,673 thousand in accumulated impairments that were recorded in segments that precede our current segment organization.
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. Our goodwill balance increased by $25.4 million for the year ended March 31, 2024, due to $22.1 and $3.2 million in goodwill additions from our acquisitions of Network Solutions Group (“NSG”) and Peak Resources, Inc. (“Peak”), respectively. Please refer to Note 16, “Business Combinations” for details of our acquisitions. 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, 2023, we performed a qualitative assessment of goodwill and concluded that, more likely than not, the fair value of our product, professional services, and managed services reporting units continued to exceed their carrying value. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit. During the first quarter ended June 30, 2023, we separated our technology segment into three new segments: product, professional services, and managed services. We concluded that each segment was one reporting unit. At that time, we reassigned our goodwill to the reporting units affected using a relative fair value approach. We concluded that the fair value of each new 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. 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 as of March 31, 2024, and March 31, 2023 (in thousands):
|  | March 31, 2024 |  |  | March 31, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Purchased intangibles |  | $ | 120,480 |  |  | $ | (76,595 | ) |  | $ | 43,885 |  |  | $ | 85,449 |  |  | $ | (61,376 | ) |  | $ | 24,073 |
Capitalized software development |  |  | 10,516 |  |  |  | (10,308 | ) |  |  | 208 |  |  |  | 10,516 |  |  |  | (9,544 | ) |  |  | 972 |
Total |  | $ | 130,996 |  |  | $ | (86,903 | ) |  | $ | 44,093 |  |  | $ | 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 purchased intangibles was $15.2 million, $9.3 million, and $10.1 million for the years ended March 31, 2024, 2023 and 2022, respectively. The following table provides the future amortization expense for purchased intangibles as of March 31, 2024 (in thousands):
Year ending March 31, 2025 |  | $ | 13,972 |
2026 |  |  | 10,936 |
2027 |  |  | 8,120 |
2028 |  |  | 5,646 |
2029 |  |  | 3,384 |
2030 and thereafter |  |  | 1,827 |
Total |  | $ | 43,885 |

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