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GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
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.
Reporting units are determined based on the components of a Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. Through the first half of fiscal year 2020, the Company had two reporting units: (1) Service Assurance and (2) Security. As part of its continued integration efforts, effective during the third quarter of fiscal year 2020, the Company reorganized its business units. As a result of this change, the Company reduced the number of reporting units from two reporting units to one reporting unit. The former Service Assurance and Security reporting units were combined as result of organizational changes made to fully integrate the resources and assets of the Service Assurance and Security business units.
The Company completed an assessment of any potential impairment for all reporting units immediately prior to and after the reporting unit change and determined that no impairment existed. As such, no impairment charges were recognized during the nine months ended December 31, 2019.
At December 31, 2019 and March 31, 2019, the carrying amount of goodwill was $1.7 billion. The change in the carrying amount of goodwill for the nine months ended December 31, 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 following table summarizes the changes in the carrying amount of goodwill for the nine months ended December 31, 2019 as follows (in thousands):
Balance at March 31, 2019
$
1,715,485

Goodwill attributed to the Eastwind acquisition
1,003

Foreign currency translation impact
2,008

Balance at December 31, 2019
$
1,718,496


Intangible Assets
The net carrying amounts of intangible assets were $602.9 million and $669.1 million at December 31, 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 nine months ended December 31, 2018.  The impairment charge was recorded within a separate operating expense line item in the Company's consolidated statements of operations during the nine months ended December 31, 2018.
Intangible assets include the indefinite-lived trade name with a carrying value of $18.6 million and the following amortizable intangible assets at December 31, 2019 (in thousands):

Cost

Accumulated
Amortization

Net
Developed technology
$
245,850

 
$
(186,356
)
 
$
59,494

Customer relationships
770,696

 
(261,595
)
 
509,101

Distributor relationships and technology licenses
6,843

 
(6,104
)
 
739

Definite-lived trademark and trade name
39,205

 
(24,894
)
 
14,311

Core technology
7,192

 
(7,016
)
 
176

Net beneficial leases
336

 
(336
)
 
—

Non-compete agreements
292

 
(292
)
 
—

Leasehold interest
500

 
(500
)
 
—

Backlog
16,327

 
(16,327
)
 
—

Capitalized software
3,317

 
(3,152
)
 
165

Other
1,208

 
(938
)
 
270

 
$
1,091,766

 
$
(507,510
)
 
$
584,256

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 nine months ended December 31, 2019 and 2018, respectively (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
Amortization of intangible assets included as:
 
 
 
 
 
 
 
    Cost of product revenue
$
6,564

 
$
8,176

 
20,043

 
25,858

    Operating expense
16,125

 
16,438

 
48,410

 
57,894

 
$
22,689

 
$
24,614

 
$
68,453

 
$
83,752


The following is the expected future amortization expense at December 31, 2019 for the fiscal years ending March 31 (in thousands):
2020 (remaining three months)
$
22,682

2021
79,857

2022
69,462

2023
61,758

2024
53,667

Thereafter
296,830


$
584,256


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.