GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company has one reporting unit. 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, 2022 using the qualitative assessment as the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying value.

At September 30, 2022 and March 31, 2022, the carrying amount of goodwill was $1.7 billion. The change in the carrying amount of goodwill for the six months ended September 30, 2022 was due to 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 six months ended September 30, 2022 as follows (in thousands):

Balance at March 31, 2022	$	1,723,156
Foreign currency translation impact	10,186
Balance at September 30, 2022	$	1,733,342

Intangible Assets

The net carrying amounts of intangible assets were $393.7 million and $433.4 million at September 30, 2022 and March 31, 2022, 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 acquired intangible assets over their estimated useful lives.

Intangible assets include the following amortizable intangible assets at September 30, 2022 (in thousands):

	Estimated Useful Life in Years	Cost		Accumulated Amortization		Net
Developed technology	3 - 13 years	$	247,023	$	(226,092)	$	20,931
Customer relationships	8 - 18 years	757,925		(404,426)		353,499
Distributor relationships and technology licenses	1 - 6 years	11,371		(9,341)		2,030
Definite-lived trademark and trade name	2 - 9 years	57,245		(40,270)		16,975
Core technology	10 years	7,192		(7,192)		—
Non-compete agreements	3 years	292		(292)		—
Capitalized software	3 years	3,317		(3,317)		—
Other	1 - 20 years	1,208		(993)		215
		$	1,085,573	$	(691,923)	$	393,650

Intangible assets include the following amortizable intangible assets at March 31, 2022 (in thousands):

	Estimated Useful Life in Years	Cost		Accumulated Amortization		Net
Developed technology	3 - 13 years	$	250,247	$	(224,426)	$	25,821
Customer relationships	8 - 18 years	769,404		(384,347)		385,057
Distributor relationships and technology licenses	1 - 6 years	11,408		(8,896)		2,512
Definite-lived trademark and trade name	2 - 9 years	57,748		(37,944)		19,804
Core technology	10 years	7,192		(7,192)		—
Non-compete agreements	3 years	292		(292)		—
Capitalized software	3 years	3,317		(3,317)		—
Other	1 - 20 years	1,208		(983)		225
		$	1,100,816	$	(667,397)	$	433,419

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, 2022 and 2021, respectively (in thousands):

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Amortization of intangible assets included as:
Cost of product revenue	$	2,628	$	3,654	$	5,281	$	7,316
Operating expense	13,806		14,975		27,692		29,986
	$	16,434	$	18,629	$	32,973	$	37,302

The following is the expected future amortization expense at September 30, 2022 for the fiscal years ending March 31 (in thousands):

2023 (remaining six months)	$	32,700
2024	57,268
2025	50,167
2026	45,852
2027	42,995
Thereafter	164,668
	$	393,650