Goodwill and Other Intangibles

12 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLES

The Company's changes in goodwill at March 31, 2023 and 2022 consisted of the following:

(in thousands)	Fiscal Year Ended March 31,
	2023		2022
Balance at beginning of year	$	213,998	$	173,051
Acquisition of business(1)	—		41,061
Foreign currency translation adjustment	(76)		(114)
Balance at end of year	$	213,922	$	213,998

(1)     On October 4, 2021, the Company acquired 100% of the capital stock of Shank's for approximately $100 million in cash and $2.4 million of additional working capital on-hand at the date of acquisition. The Shank's acquisition resulted in $41.1 million of goodwill. See Note 2 for additional information.

The Company's intangible assets primarily consist of capitalized customer-related intangibles, trade names, proprietary developed technology and noncompetition agreements. The Company's intangible assets subject to amortization consisted of the following at March 31, 2023 and 2022:

(in thousands, except useful life)				Fiscal Year Ended March 31,
				2023						2022
	Useful Life (Years)			Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Customer relationships(1)	11	-	13	$	86,500	$	(17,693)	$	68,807	$	86,500	$	(9,963)	$	76,537
Trade names(1)		5		11,100		(6,045)		5,055		11,100		(3,825)		7,275
Developed technology(1)	3	-	13	9,300		(5,319)		3,981		9,300		(3,773)		5,527
Noncompetition agreements(1)	4	-	5	4,000		(1,775)		2,225		4,000		(825)		3,175
Other		5		721		(688)		33		736		(679)		57
Total intangible assets				$	111,621	$	(31,520)	$	80,101	$	111,636	$	(19,065)	$	92,571

(1)     The Shank's acquisition resulted in $31.5 million of intangibles. See Note 2 for additional information.

Intangible assets are amortized on a straight-line basis over the asset's estimated useful economic life as noted above.

The Company's amortization expense for intangible assets for the years ended March 31, 2023, 2022, and 2021:

(in thousands)	Fiscal Year Ended March 31,
	2023		2022		2021
Amortization Expense	$	12,455	$	11,209	$	6,460

Amortization expense for the developed technology intangible asset is recorded in cost of goods sold in the consolidated income statements of income. The amortization expense for the other intangible assets is recorded in selling, general, and administrative expenses in the consolidated income statements of income.

As of March 31, 2023, the expected future amortization expense for intangible assets is as follows:

Fiscal Year
(in thousands)
2024	$	11,263
2025	11,829
2026	8,452
2027	8,077
2028 and thereafter	40,480
Total expected future amortization expense	$	80,101