Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The Company conducts its impairment analysis of goodwill and indefinite life intangible assets annually at December 31 or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting unit may be less than its carrying amount. The Company conducted its annual impairment analysis of goodwill and indefinite life intangible assets as of December 31, 2021 by performing a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeded its carrying amount. In assessing the qualitative factors, the Company considered the impact of these key factors: change in industry and competitive environment, growth in market capitalization, and budgeted-to-actual revenue performance for the twelve months ended December 31, 2021. There have been no triggering events identified affecting the valuation of goodwill and indefinite life intangible assets subsequent to the annual impairment test.

The following table summarizes the activities in the Company's goodwill balance (in thousands):


	Years Ended March 31,
	2022		2021
Beginning of the period	$	429,604	$	400,917
Acquisitions (1)	20,721		28,667
Effects of foreign currency translation	(2,150)		20
End of the period	$	448,175	$	429,604

(1) See Note 3 for more information related to acquisitions.

The Company's acquired intangible assets were as follows (in thousands):


	March 31,
	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks and trade names	$	36,790	$	(22,295)	$	14,495	$	46,070	$	(25,153)	$	20,917
Developed technology	119,407		(83,540)		35,867		134,406		(90,450)		43,956
Customer contracts/relationships	71,110		(40,971)		30,139		91,010		(44,261)		46,749
In-process R&D	3,826		—		3,826		3,526		—		3,526
Effects of foreign currency translation (1)	(634)		86		(548)		—		—		—
	$	230,499	$	(146,720)	$	83,779	$	275,012	$	(159,864)	$	115,148

(1) Related to a technology acquisition in May 2021. See Note 3 for more information related to the acquisition.

During the third quarter of fiscal year 2022, the Company decided to discontinue Jaybird-branded products. As a result of this decision, the Company performed an analysis to compare the fair value of Jaybird-related intangible assets to their carrying amount. As the fair value using estimated discounted cash flows was less than the carrying amount, the Company recognized a pre-tax impairment charge in the consolidated statement of operations of $7.0 million, which was primarily related to customer contracts and relationships. See Note 16 for further information regarding the exit plan.

For fiscal years 2022, 2021 and 2020, amortization expense for intangible assets was, $30.2 million, $31.8 million and $30.9 million, respectively. The Company expects that annual amortization expense for fiscal years 2023, 2024, 2025, 2026 and 2027 will be $23.2 million, $19.9 million, $17.7 million, $10.7 million and $4.5 million, respectively, and $4.0 million thereafter.

The intangible assets as of March 31, 2022 and 2021 include IPR&D $3.8 million and $3.5 million, respectively, from asset acquisitions. IPR&D is capitalized at fair value and the amortization commences upon completion of the underlying projects. Once research and development efforts are completed, the corresponding amount of IPR&D is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. As of March 31, 2022 and 2021, there was no IPR&D amortized.