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GOODWILL AND OTHER INTANGIBLE ASSETS
 6 Months Ended
Sep. 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 six months ended September 30, 2023 (in thousands):

         
Professional
    
Managed
        
   
Product
    
Services
    
Services
    
Total
  
Balance March 31, 2023 (1)
  
$
106,497
    
$
19,712
    
$
9,896
    
$
136,105
  
Acquisitions
    
19,672
      
2,456
      
-
      
22,128
  
Foreign currency translations
    
(27
)
    
(5
)
    
(2
)
    
(34
)
Balance September 30, 2023 (1)
  
$
126,142
    
$
22,163
    
$
9,894
    
$
158,199
  

(1)
Balance is net of $8,673 thousand in accumulated impairments that were recorded in segments that proceed 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.


Our goodwill balance increased by $22.1 million over the six months ended September 30, 2023, due to $22.1 million in goodwill additions from our acquisition of Network Solutions Group (“NSG”). 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.


During the first quarter ended June 30, 2023, we separated our technology segment into three new segments: product, professional services, and managed services. We concluded that each segment was one reporting unit. At that time, we allocated our goodwill to the reporting units affected using a relative fair value approach. We concluded that the fair value of each new 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 September 30, 2023, and March 31, 2023 (in thousands):

 
September 30, 2023
  
March 31, 2023
  
 
Gross
          
Gross
          
 
Carrying
  
Accumulated
  
Net Carrying
  
Carrying
  
Accumulated
  
Net Carrying
  
 
Amount
  
Amortization
  
Amount
  
Amount
  
Amortization
  
Amount
  
Purchased intangibles
  
$
115,372
    
$
(68,832
)
  
$
46,540
    
$
85,449
    
$
(61,376
)
  
$
24,073
  
Capitalized software development
    
10,516
      
(10,114
)
    
402
      
10,516
      
(9,544
)
    
972
  
Total
  
$
125,888
    
$
(78,946
)
  
$
46,942
    
$
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 $4.0 million for the three months ended September 30, 2023, and $2.5 million for the three months ended September 30, 2022, and $7.5 million and $4.7 million for the six months ended September 30, 2023, and 2022, respectively.