GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Sep. 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 six months ended September 30, 2024 (in thousands):

			Professional		Managed
	Product		Services		Services		Total
Balance, March 31, 2024 (1)	$	129,108	$	22,497	$	9,898	$	161,503
Acquisitions		30		41,580		-		41,610
Foreign currency translations		94		17		9		120
Balance, September 30, 2024 (1)	$	129,232	$	64,094	$	9,907	$	203,233

(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.

We added $41.6 million in goodwill from our acquisition of Bailiwick Services, LLC (“Bailiwick”) on August 19, 2024. Please refer to Note 15, “Business Combinations” for details of the Bailiwick acquisition.

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.

OTHER INTANGIBLE ASSETS

Our other intangible assets consist of purchased intangible assets and capitalized software development. The following table provides the composition of our purchased intangible assets on September 30, 2024, and March 31, 2024 (in thousands):

	September 30, 2024							March 31, 2024
	Gross Carrying		Accumulated			Net Carrying		Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Customer relationships	$	167,515	$	(82,054	)	$	85,461	$	117,682	$	(73,870	)	$	43,812
Trade name and other		11,474		(2,873	)		8,601		2,798		(2,725	)		73
Total	$	178,989	$	(84,927	)	$	94,062	$	120,480	$	(76,595	)	$	43,885

Our customer relationships, trade names and other purchased intangibles are generally amortized between 5 to 10 years.

Total amortization expense for purchased intangibles was $4.4 million and $4.0 million for the three months ended September 30, 2024, and 2023, respectively, and $8.2 million and $7.5 million for the six months ended September 30, 2024, and 2023, respectively.

Our capitalized software development had a carrying value of $0.1 million and $0.2 million on September 30, 2024, and March 31, 2024, respectively.