Intangible Assets and Software Development Costs

6 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Software Development Costs

The following table summarizes our intangible assets and software development costs:



	September 30, 2017							March 31, 2017
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In thousands)	amount		amortization			amount		amount		amortization			amount
Amortized intangible assets:
Customer relationships	$	10,775	$	(10,775	)	$	—	$	10,775	$	(10,775	)	$	—
Non-competition agreements	2,700		(2,700		)	—		2,700		(2,700		)	—
Developed technology	10,055		(10,055		)	—		10,055		(10,055		)	—
Trade names	230		(123		)	107		230		(100		)	130
Patented technology	80		(80		)	—		80		(80		)	—
	23,840		(23,733		)	107		23,840		(23,710		)	130
Unamortized intangible assets:
Trade names	8,400		N/A			8,400		8,400		N/A			8,400
Total intangible assets	$	32,240	$	(23,733	)	$	8,507	$	32,240	$	(23,710	)	$	8,530

Software development costs	$	53,415	$	(15,083	)	$	38,332	$	46,598	$	(10,356	)	$	36,242
Project expenditures not yet in use	8,853		—			8,853		10,757		—			10,757
Total software development costs	$	62,268	$	(15,083	)	$	47,185	$	57,355	$	(10,356	)	$	46,999

During the second quarter of fiscal 2018, we announced general availability of our rGuest Buy point of sale solution and placed into service $6.8 million of related software development costs in the last month of the quarter. Amortization of this internally developed technology is included in Products cost of goods sold and was $0.1 million for the three and six months ended September 30, 2017. The useful life of the asset is 5 years.

The following table summarizes our remaining estimated amortization expense relating to in service intangible assets and software development costs.



	Estimated
	Amortization
(In thousands)	Expense
Fiscal year ending March 31,
2018	$	5,318
2019	10,513
2020	9,774
2021	9,689
2022	2,576
2023	569
Total	$	38,439

Amortization expense related to software development costs related to assets to be sold, leased, or otherwise marketed was $2.4 million and $2.1 million for the three months ended September 30, 2017 and 2016, and $4.7 million and $3.4 million for the six months ended September 30, 2017 and 2016, respectively. These charges are included as Products cost of goods sold within the Condensed Consolidated Statements of Operations.

Amortization expense relating to other definite-lived intangible assets was $11,500 for the three months ended September 30, 2017 and 2016, and $23,000 for the six months ended September 30, 2017 and 2016. These charges are classified as operating expenses within the Condensed Consolidated Statements of Operations.

Capitalized software development costs for software internally developed to be sold, leased, or otherwise marketed, are carried on our balance sheet at net carrying value, net of accumulated amortization. We capitalized approximately $2.2 million and $3.0 million during the three months ended September 30, 2017 and 2016, and $4.9 million and $5.9 million during the six months ended September 30, 2017 and 2016, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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