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Goodwill and Intangible Assets | 9 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill Disclosure | 7. Goodwill and Intangible Assets Goodwill and indefinite lived trademarks are not amortized but are tested for impairment at least annually, in accordance with the provisions of ASC Topic 350-20-35-1. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. The fair value of a reporting unit is determined using a discounted cash flow methodology. The Company’s reporting units are determined based upon whether discrete financial information is available and reviewed regularly, whether those units constitute a business, and the extent of economic similarities between those reporting units for purposes of aggregation. The Company’s reporting units identified under ASC Topic 350-20-35-33 are at the component level, or one level below the operating segment level as defined under ASC Topic 280-10-50-10 “Segment Reporting - Disclosure.” The Company has three reporting units as of December 31, 2022 and March 31, 2022. The Duff-Norton reporting unit (which designs, manufactures and sources mechanical and electromechanical actuators and rotary unions) had goodwill of $9,699,000 at December 31, 2022 and March 31, 2022. The Rest of Products reporting unit (representing the hoist, chain, forgings, digital power, motion control, manufacturing, and distribution businesses) had goodwill of $304,778,000 and $310,793,000 at December 31, 2022 and March 31, 2022, respectively. The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $327,953,000 and $328,357,000 at December 31, 2022 and March 31, 2022, respectively. Refer to the 2022 10-K for information regarding our annual goodwill and indefinite lived trademark impairment evaluation. Future impairment indicators, such as declines in forecasted cash flows, may cause impairment charges. Impairment charges could be based on such factors as the Company’s stock price, forecasted cash flows, assumptions used, control premiums or other variables. There were no such indicators during the three and nine months ended December 31, 2022. A summary of changes in goodwill during the nine months ended December 31, 2022 is as follows (in thousands):
Balance at April 1, 2022 | $ | 648,849 |
Working capital adjustment for Garvey (Refer to Note 2) | 1,616 |
Garvey contingent payment reclassification (Refer to Note 2) | (2,000) |
Currency translation | (6,035) |
Balance at December 31, 2022 | 642,430 |
Goodwill is recognized net of accumulated impairment losses of $113,174,000 as of December 31, 2022 and March 31, 2022, respectively. Identifiable intangible assets acquired in a business combination are amortized over their estimated useful lives. Identifiable intangible assets are summarized as follows (in thousands):
|  | December 31, 2022 |  | March 31, 2022
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Net |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Trademark |  | $ | 19,406 |  |  | $ | (5,926) |  |  | $ | 13,480 |  |  | $ | 19,529 |  |  | $ | (5,032) |  |  | $ | 14,497 |
Indefinite lived trademark |  | 46,100 |  |  | — |  |  | 46,100 |  |  | 46,721 |  |  | — |  |  | 46,721 |
Customer relationships |  | 320,938 |  |  | (83,427) |  |  | 237,511 |  |  | 325,431 |  |  | (71,202) |  |  | 254,229 |
Acquired technology |  | 96,339 |  |  | (26,387) |  |  | 69,952 |  |  | 96,433 |  |  | (21,789) |  |  | 74,644 |
Other |  | 3,519 |  |  | (2,903) |  |  | 616 |  |  | 3,476 |  |  | (2,779) |  |  | 697 |
Total |  | $ | 486,302 |  |  | $ | (118,643) |  |  | $ | 367,659 |  |  | $ | 491,590 |  |  | $ | (100,802) |  |  | $ | 390,788 |
The Company’s intangible assets that are considered to have finite lives are amortized. The weighted-average amortization periods are 14 years for trademarks, 17 years for customer relationships, 16 years for acquired technology, 5 years for other, and 17 years in total. Trademarks with a carrying value of $46,100,000 as of December 31, 2022 have an indefinite useful life and are therefore not being amortized. Total amortization expense was $6,459,000 and $6,254,000 for the three months ended December 31, 2022 and 2021, respectively. Total amortization expense was $19,442,000 and $18,648,000 for the nine months ended December 31, 2022 and 2021, respectively. Based on the current amount of identifiable intangible assets and current exchange rates, the estimated annual amortization expense for each of the succeeding five years is expected to be approximately $25,900,000.

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