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GOODWILL AND OTHER INTANGIBLE ASSETS
 3 Months Ended
Jun. 30, 2023
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, 2023 (in thousands):

   
Technology Segment
    
Product
    
Professional Services
    
Managed Services
    
Total
  
Balance March 31, 2023
                              
Goodwill
  
$
144,778
    
$
-
      
-
      
-
      
144,778
  
Accumulated impairment losses
    
(8,673
)
    
-
      
-
      
-
      
(8,673
)
Net carrying amount
  
$
136,105
    
$
-
    
$
-
    
$
-
    
$
136,105
  
 
                                        
Reporting unit change
    
(136,105
)
    
106,497
      
19,712
      
9,896
      
-
  
Acquisitions
    
-
      
19,672
      
2,456
      
-
      
22,128
  
Impairment losses
    
-
      
-
      
-
      
-
      
-
  
Foreign currency translations
    
-
      
37
      
7
      
3
      
47
  
Balance June 30, 2023
                                        
Goodwill
  
$
-
    
$
134,879
    
$
22,175
    
$
9,899
    
$
166,953
  
Accumulated impairment losses
    
-
      
(6,787
)
    
(1,256
)
    
(630
)
    
(8,673
)
Net carrying amount
  
$
-
    
$
128,092
    
$
20,919
    
$
9,269
    
$
158,280
  

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. As of March 31, 2023, our entire balance related to our technology segment, which we had also determined to be one reporting unit. During the first quarter ended June 30, 2023, we separated our technology segment into three different reporting units: product, professional services, and managed services. As such, we allocated our goodwill and impairment losses to the reporting units affected using a relative fair value.

The carrying value of goodwill was $158.3 million and $136.1 million as of June 30, 2023, and March 31, 2023, respectively. Our goodwill balance increased by $22.2 million over the three months ended June 30, 2023, due to $22.1 million in goodwill additions from our acquisition of Network Solutions Group (“NSG”), and from foreign currency translations of $0.1 million. Please refer to Note 15, “Business Combinations” for details of our 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, 2022, we performed a quantitative assessment of goodwill and concluded that the fair value of our technology reporting unit exceeded its 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, 2023, and March 31, 2023 (in thousands):

 
June 30, 2023
    
March 31, 2023
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
    
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net Carrying
Amount
  
Purchased intangibles
  
$
115,463
    
$
(64,897
)
  
$
50,566
    
$
85,449
    
$
(61,376
)
  
$
24,073
  
Capitalized software development
    
10,516
      
(9,829
)
    
687
      
10,516
      
(9,544
)
    
972
  
Total
  
$
125,979
    
$
(74,726
)
  
$
51,253
    
$
95,965
    
$
(70,920
)
  
$
25,045
  

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 customer relationships and other intangible assets was $3.5 million and $2.2 million for the three months ended June 30, 2023, and June 30, 2022, respectively.