Goodwill and Other Intangible Assets

9 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The Company conducts its impairment analysis of goodwill and indefinite life intangible assets annually at December 31 and as necessary, 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 asset 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 exceeds its carrying amount. In assessing the qualitative factors, the Company considered the impact of change in industry and competitive environment, growth in the Company's market capitalization and budgeted-to-actual revenue performance for the last twelve months.

The following table summarizes the activities in the Company’s goodwill balance during the nine months ended December 31, 2021 (in thousands):


As of March 31, 2021	$	429,604

Acquisition	20,721
Effects of foreign currency translation	(1,594)
As of December 31, 2021	$	448,731

During the third quarter of fiscal 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 condensed consolidated statement of operations of $7.0 million, which was primarily related to customer contracts and relationships. See Note 13 for further information regarding the exit plan.

On May 19, 2021, the Company made an immaterial technology acquisition for a total cash consideration of $25.6 million, including up to $10.0 million earn-out payable in cash upon the achievement of three technical development milestones required to be completed as of December 31, 2021, June 30, 2022, and June 30, 2023, which was accounted for using the acquisition method. The Company retained 6% of the total consideration for the purpose of ensuring seller's representations and warranties.

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


	December 31, 2021						March 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademark and trade names	$	36,790	$	(21,112)	$	15,678	$	46,070	$	(25,153)	$	20,917
Developed technology	119,707		(80,545)		39,162		134,406		(90,450)		43,956
Customer contracts/relationships	71,110		(39,172)		31,938		91,010		(44,261)		46,749
In-process R&D	3,526		—		3,526		3,526		—		3,526
Effects of foreign currency translation	(475)		49		(426)		—		—		—
Total	$	230,658	$	(140,780)	$	89,878	$	275,012	$	(159,864)	$	115,148