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GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Mar. 31, 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 years ended March 31, 2024, and March 31, 2023, respectively (in thousands):

    Technology          
Professional
    
Managed
        
    Segment
    
Product
    
Services
    
Services
    
Total
  
Balance, March 31, 2022 (1)
   $ 126,543     $ -     $ -     $ -     $ 126,543  
Acquisitions
     9,694       -       -       -       9,694  
Foreign currency translations
     (132 )     -       -       -       (132 )
Reporting unit change
     (136,105 )     106,497       19,712       9,896       -  
Balance, March 31, 2023 (1)
   $ -     $ 106,497     $ 19,712     $ 9,896     $ 136,105  
Acquisitions
     -       22,586       2,780       -       25,366  
Foreign currency translations
     -       25       5       2       32  
Balance, March 31, 2024 (1)
   $ -     $ 129,108     $ 22,497     $ 9,898     $ 161,503  

(1)
 Balance is net of $8,673 thousand in accumulated impairments that were recorded in segments that precede 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 $25.4 million for the year ended March 31, 2024, due to $22.1 and $3.2 million in goodwill additions from our acquisitions of Network Solutions Group (“NSG”) and Peak Resources, Inc. (“Peak”), respectively. Please refer to Note 16, “Business Combinations” for details of our acquisitions.

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.

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 reassigned 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.

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 as of March 31, 2024, and March 31, 2023 (in thousands):

 
March 31, 2024
    
March 31, 2023
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
    
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Net
Carrying
Amount
  
Purchased intangibles
  
$
120,480
    
$
(76,595
)
  
$
43,885
    
$
85,449
    
$
(61,376
)
  
$
24,073
  
Capitalized software development
    
10,516
      
(10,308
)
    
208
      
10,516
      
(9,544
)
    
972
  
Total
  
$
130,996
    
$
(86,903
)
  
$
44,093
    
$
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 purchased intangibles was $15.2 million, $9.3 million, and $10.1 million for the years ended March 31, 2024, 2023 and 2022, respectively.

The following table provides the future amortization expense for purchased intangibles as of March 31, 2024 (in thousands):

Year ending March 31, 2025
  
$
13,972
  
2026
    
10,936
  
2027
    
8,120
  
2028
    
5,646
  
2029
    
3,384
  
2030 and thereafter
    
1,827
  
Total
  
$
43,885