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GOODWILL AND INTANGIBLE ASSETS
 6 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
The Company has two reporting units: (1) Service Assurance and (2) Security. The Company assesses goodwill for impairment at the reporting unit level at least annually, or on an interim basis if an event occurs or circumstances change that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. The Company completed its annual impairment test on January 31, 2019.
At September 30, 2019 goodwill attributable to our Service Assurance and Security reporting units was $1.2 billion and $555.8 million, respectively. At March 31, 2019, goodwill attributable to our Service Assurance and Security reporting units was $1.2 billion and $555.1 million, respectively.
The change in the carrying amount of goodwill for the six months ended September 30, 2019 is due to the acquisition of Eastwind and the impact of foreign currency translation adjustments related to asset balances that are recorded in currencies other than the U.S. Dollar.
The changes in the carrying amount of goodwill for the six months ended September 30, 2019 are as follows (in thousands):
Balance at March 31, 2019
$
1,715,485

Goodwill attributed to the Eastwind acquisition
1,003

Foreign currency translation impact
2,874

Balance at September 30, 2019
$
1,719,362


Intangible Assets
The net carrying amounts of intangible assets were $624.8 million and $669.1 million at September 30, 2019 and March 31, 2019, respectively. Intangible assets acquired in a business combination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes intangible assets over their estimated useful lives, except for the acquired trade name which resulted from the Network General acquisition, which has an indefinite life and thus is not amortized. The carrying value of the indefinite-lived trade name is evaluated for potential impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company completed its annual impairment test on January 31, 2019.
During the three months ended June 30, 2018, the Company performed a quantitative analysis on certain intangible assets related to the HNT tools business, which has since been divested. The fair value for the intangible assets related to the HNT tools business was calculated considering a range of potential transaction prices which the Company considers to be a Level 3 measurement. The fair value of these intangible assets was determined to be less than the carrying value, and as a result, the
Company recognized an impairment charge of $35.9 million in the six months ended September 30, 2018.  The impairment charge was recorded within a separate operating expense line item in the Company's consolidated statements of operations during the six months ended September 30, 2018.
Intangible assets include the indefinite-lived trade name with a carrying value of $18.6 million and the following amortizable intangible assets at September 30, 2019 (in thousands):

Cost

Accumulated
Amortization

Net
Developed technology
$
245,601

 
$
(180,008
)
 
$
65,593

Customer relationships
769,809

 
(246,711
)
 
523,098

Distributor relationships and technology licenses
6,827

 
(5,814
)
 
1,013

Definite-lived trademark and trade name
39,166

 
(23,414
)
 
15,752

Core technology
7,192

 
(6,959
)
 
233

Net beneficial leases
336

 
(336
)
 
—

Non-compete agreements
292

 
(292
)
 
—

Leasehold interest
500

 
(500
)
 
—

Backlog
16,299

 
(16,299
)
 
—

Capitalized software
3,317

 
(3,083
)
 
234

Other
1,208

 
(932
)
 
276

 
$
1,090,547

 
$
(484,348
)
 
$
606,199

Intangible assets include the indefinite-lived trade name with a carrying value of $18.6 million and the following amortizable intangible assets at March 31, 2019 (in thousands):

Cost

Accumulated
Amortization

Net
Developed technology
$
242,259

 
$
(168,289
)
 
$
73,970

Customer relationships
772,969

 
(218,043
)
 
554,926

Distributor relationships and technology licenses
6,882

 
(5,237
)
 
1,645

Definite-lived trademark and trade name
39,304

 
(20,586
)
 
18,718

Core technology
7,192

 
(6,845
)
 
347

Net beneficial leases
336

 
(336
)
 
—

Non-compete agreements
292

 
(292
)
 
—

Leasehold interest
500

 
(500
)
 
—

Backlog
16,397

 
(16,397
)
 
—

Capitalized software
3,317

 
(2,690
)
 
627

Other
1,208

 
(923
)
 
285


$
1,090,656

 
$
(440,138
)

$
650,518


Amortization included as cost of product revenue consists of amortization of developed technology, distributor relationships and technology licenses, core technology and software. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense for the three and six months ended September 30, 2019 and 2018, respectively (in thousands):
 
Three Months Ended
 
Six Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Amortization of intangible assets included as:
 
 
 
 
 
 
 
    Cost of product revenue
$
6,677

 
$
8,491

 
13,479

 
17,682

    Operating expense
16,137

 
17,986

 
32,285

 
41,456

 
$
22,814

 
$
26,477

 
$
45,764

 
$
59,138


The following is the expected future amortization expense at September 30, 2019 for the fiscal years ending March 31 (in thousands):
2020 (remaining six months)
$
45,337

2021
79,776

2022
69,388

2023
61,690

2024
53,605

Thereafter
296,403


$
606,199


The weighted-average amortization period of developed technology and core technology is 11.3 years. The weighted-average amortization period for customer and distributor relationships is 15.9 years. The weighted-average amortization period for trademarks and trade names is 8.6 years. The weighted-average amortization period for capitalized software is 3.0 years. The weighted-average amortization period for amortizing all intangible assets is 14.6 years.