XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.2.u1
GOODWILL AND OTHER INTANGIBLE ASSETS
 3 Months Ended
Jun. 30, 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 for the three months ended June 30, 2024 (in thousands):

 
  
Product
    
Professional Services
    
Managed Services
    
Total
  
Balance, March 31, 2024 (1)
  
$
129,108
    
$
22,497
    
$
9,898
    
$
161,503
  
Acquisitions
    
-
      
-
      
-
    

-
  
Foreign currency translations
    
4
      
1
      
-
    

5
  
Balance, June 30, 2024 (1)
  
$
129,112
    
$
22,498
    
$
9,898
    
$
161,508
  

(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.

The only activity in our goodwill balance over the three months ended June 30, 2024 was foreign currency translation adjustments.

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, 2023, 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. Our conclusions would not be impacted by a ten percent change in our estimate of the fair value of the reporting unit.

OTHER INTANGIBLE ASSETS

Our other intangible assets consist of the following on June 30, 2024, and March 31, 2024 (in thousands):

 
June 30, 2024
    
March 31, 2024
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
    
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
  
Purchased intangibles
  
$
120,485
    
$
(80,350
)
  
$
40,135
    
$
120,480
    
$
(76,595
)
  
$
43,885
  
Capitalized software development
    
10,159
      
(10,002
)
    
157
      
10,516
      
(10,308
)
    
208
  
Total
  
$
130,644
    
$
(90,352
)
  
$
40,292
    
$
130,996
    
$
(86,903
)
  
$
44,093
  

Purchased intangibles, consisting mainly of customer relationships, are generally amortized between 5 to 10 years. Capitalized software development is generally amortized over 5 years.

Total amortization expense for purchased intangibles was $3.8 million and $3.5 million for the three months ended June 30, 2024, and June 30, 2023, respectively.