XML 24 R13.htm IDEA: XBRL DOCUMENT v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Dec. 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 in each segment for the nine months ended December 31, 2024 (in thousands):
 
  
Product
 
Professional
Services
 
Managed
Services
 
Total
Balance, March 31, 2024 (1)
 
$
129,108
  
$
22,497
  
$
9,898
  
$
161,503
 
Acquisitions
  
30
   
41,275
   
-
   
41,305
 
Foreign currency translations
  
(11
)
  
(2
)
  
(1
)
  
(14
)
Balance, December 31, 2024 (1)
 
$
129,127
  
$
63,770
  
$
9,897
  
$
202,794
 
 
(1)
Balance is net of $8,673 thousand in accumulated impairments that were recorded in segments that preceded 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.
 
We added $41.3 million in goodwill from our acquisition of Bailiwick Services, LLC (“Bailiwick”) that closed on August 19, 2024. Please refer to Note 15, “Business Combinations” for details of the Bailiwick 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, 2024, 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.
 
OTHER INTANGIBLE ASSETS
 
Our other intangible assets consist of purchased intangible assets and capitalized software development. The following table provides the composition of our purchased intangible assets on December 31, 2024, and March 31, 2024 (in thousands):
 
  
December 31, 2024
 
March 31, 2024
  
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Customer relationships
 
$
167,033
  
$
(87,596
)
 
$
79,437
  
$
117,682
  
$
(73,870
)
 
$
43,812
 
Trade names and other
  
11,446
   
(3,168
)
  
8,278
   
2,798
   
(2,725
)
  
73
 
Total
 
$
178,479
  
$
(90,764
)
 
$
87,715
  
$
120,480
  
$
(76,595
)
 
$
43,885
 
 
Our customer relationships, trade names, and other purchased intangibles are generally amortized between 5 to 10 years.
 
Total amortization expense for purchased intangibles was $6.0 million and $3.9 million for the three months ended December 31, 2024, and 2023, respectively, and $14.2 million and $11.3 million for the nine months ended December 31, 2024, and 2023, respectively.
 
Our capitalized software development had a carrying value of $0.1 million and $0.2 million on December 31, 2024, and March 31, 2024, respectively.