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GOODWILL & INTANGIBLE ASSETS | 12 Months Ended
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Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL & INTANGIBLE ASSETS | GOODWILL & INTANGIBLE ASSETS Goodwill The Company has one reporting unit. Goodwill is tested for impairment at a reporting unit level at least annually, as of January 31, or on an interim basis if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. At March 31, 2022 and 2021, the carrying amount of goodwill was $1.7 billion. During fiscal years 2022 and 2021, the Company's annual impairment tests indicated that goodwill was not impaired. The Company completed its annual goodwill impairment test at January 31, 2022, using the qualitative (Step 0) assessment, and the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying value. The change in the carrying amount of goodwill for the fiscal year ended March 31, 2022 is due to the impact of foreign currency translation adjustments related to asset balances that are recorded in currencies other than the U.S. Dollar. The changes in the carrying amount of goodwill for the fiscal years ended March 31, 2022 and 2021 are as follows (in thousands):
Balance at March 31, 2020 | $ | 1,725,680 |
Foreign currency translation impact | (8,126) |
Balance at March 31, 2021 | $ | 1,717,554 |
Foreign currency translation impact | 5,602 |
Balance at March 31, 2022 | $ | 1,723,156 |
Intangible Assets The net carrying amounts of intangible assets were $433.4 million and $511.9 million at March 31, 2022 and 2021, respectively. Intangible assets acquired in a business combination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes intangible assets over their estimated useful lives. During the first quarter of fiscal year 2022, in conjunction with the renewal process of an acquired indefinite-lived trade name and the Company's focus on advancing new product lines, the Company reassessed the estimated economic life of the acquired indefinite-lived trade name. As a result, the Company began amortizing the acquired trade name over 8 years. Prior to reclassifying the acquired trade name to a finite-lived intangible asset, the Company tested the acquired trade name for impairment and determined the fair value of the asset exceeded the carrying value. This change in estimate does not materially impact the Company's income statement. During the fiscal years ended March 31, 2022 and 2021, the Company acquired $50 thousand and $4.5 million of technology licenses, respectively. These amounts are included within distributor relationships and are being amortizing using the economic benefit method over useful lives of between one and four years. The Company did not acquire any technology licenses during the fiscal year ended March 31, 2020. Intangible assets include the following amortizable intangible assets at March 31, 2022 (in thousands):
| Estimated Useful Life in Years |  | Cost |  | Accumulated Amortization |  | Net
Developed technology | 3 - 13 years |  | $ | 250,247 |  |  | $ | (224,426) |  |  | $ | 25,821 |
Customer relationships | 8 - 18 years |  | 769,404 |  |  | (384,347) |  |  | 385,057 |
Distributor relationships and technology licenses | 1 - 6 years |  | 11,408 |  |  | (8,896) |  |  | 2,512 |
Definite-lived trademark and trade name (a) | 2 - 9 years |  | 57,748 |  |  | (37,944) |  |  | 19,804 |
Core technology | 10 years |  | 7,192 |  |  | (7,192) |  |  | — |
Non-compete agreements | 3 years |  | 292 |  |  | (292) |  |  | — |
Capitalized software | 3 years |  | 3,317 |  |  | (3,317) |  |  | — |
Other | 1 - 20 years |  | 1,208 |  |  | (983) |  |  | 225 |
|  |  | $ | 1,100,816 |  |  | $ | (667,397) |  |  | $ | 433,419 |
(a) The Company's $18.6 million acquired trade name changed from indefinite-lived during the first quarter of fiscal year 2022. Intangible assets include the indefinite lived trade name with a carrying value of $18.6 million and the following amortizable intangible assets at March 31, 2021 (in thousands):
| Estimated Useful Life in Years |  | Cost |  | Accumulated Amortization |  | Net
Developed technology | 3 - 13 years |  | $ | 252,071 |  |  | $ | (212,688) |  |  | $ | 39,383 |
Customer relationships | 8 - 18 years |  | 775,898 |  |  | (333,903) |  |  | 441,995 |
Distributor relationships and technology licenses | 1 - 6 years |  | 11,469 |  |  | (7,829) |  |  | 3,640 |
Definite-lived trademark and trade name | 2 - 9 years |  | 39,434 |  |  | (31,467) |  |  | 7,967 |
Core technology | 10 years |  | 7,192 |  |  | (7,192) |  |  | — |
Net beneficial leases | 3 - 4 years |  | 336 |  |  | (336) |  |  | — |
Non-compete agreements | 3 years |  | 292 |  |  | (292) |  |  | — |
Capitalized software | 3 years |  | 3,317 |  |  | (3,281) |  |  | 36 |
Other | 1 - 20 years |  | 1,208 |  |  | (963) |  |  | 245 |
|  |  | $ | 1,091,217 |  |  | $ | (597,951) |  |  | $ | 493,266 |
Amortization included as cost of product revenue consists of amortization of developed technology, distributor relationships and technology licenses, core technology and software. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense during the fiscal years ended March 31, 2022, 2021, and 2020 (in thousands).
| Years Ended March 31,
| 2022 |  | 2021 |  | 2020
Amortization of intangible assets included as: |  |  |  |  |
Cost of product revenue | 14,600 |  |  | 20,457 |  |  | 26,664 |
Operating expense | 59,761 |  |  | 61,151 |  |  | 64,525 |
| $ | 74,361 |  |  | $ | 81,608 |  |  | $ | 91,189 |
The following is the expected future amortization expense at March 31, 2022 for the fiscal years ended March 31 (in thousands):
2023 | $ | 66,252 |
2024 | 58,019 |
2025 | 50,841 |
2026 | 46,517 |
2027 | 43,634 |
Thereafter | 168,156 |
Total | $ | 433,419 |

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