2. BALANCE SHEET ITEMS

Inventories

The components of inventories, net of applicable lower of cost or market write-downs, were as follows:

	As of		As of
	December 31, 2014		March 31, 2014
	(In thousands)
Raw materials	$	2,336,860	$	2,349,278
Work-in-progress	549,732		608,284
Finished goods	673,048		641,446
	$	3,559,640	$	3,599,008

Goodwill and Other Intangibles

The following table summarizes the activity in the Company’s goodwill account during the nine-month period ended December 31, 2014:

	Amount
	(In thousands)
Balance, beginning of the year	$	292,758
Additions (1)	36,467
Purchase accounting adjustments (2)	8,651
Foreign currency translation adjustments	(3,393		)
Balance, end of the period	$	334,483

(1)

The goodwill generated from the Company’s business combinations completed during the nine-month period ended December 31, 2014 is primarily related to value placed on the acquired employee workforces, service offerings and capabilities of the acquired businesses and expected synergies. The goodwill is not deductible for income tax purposes. See note 12 to the condensed consolidated financial statements for additional information.

(2)

Fair value adjustment made to certain assets acquired in connection with the Company’s acquisition of Riwisa AG during the three-month ended December 31, 2013.

The components of acquired intangible assets are as follows:

	As of December 31, 2014							As of March 31, 2014
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
	(In thousands)
Intangible assets:
Customer-related intangibles	$	126,712	$	(73,867	)	$	52,845	$	204,369	$	(140,713	)	$	63,656
Licenses and other intangibles	39,793		(9,589		)	30,204		32,564		(11,760		)	20,804
Total	$	166,505	$	(83,456	)	$	83,049	$	236,933	$	(152,473	)	$	84,460

The gross carrying amounts of intangible assets are removed when the recorded amounts have been fully amortized. During the nine-month period ended December 31, 2014, the value of customer-related intangible assets increased by $8.5 million in connection with the Company’s acquisitions, and licenses and other intangibles increased by $15.7 million primarily as a result of the purchase of certain technology rights. The estimated future annual amortization expense for intangible assets is as follows:

Fiscal Year Ending March 31,	Amount
	(In thousands)
2015 (1)	$	7,496
2016	26,582
2017	18,404
2018	12,564
2019	8,326
Thereafter	9,677
Total amortization expense	$	83,049

(1)

Represents estimated amortization for the remaining three-month period ending March 31, 2015.

Other Current Assets / Liabilities

In connection with a prior year acquisition, the Company entered into an agreement with a customer and a third party banking institution to procure certain manufacturing equipment that was financed by the third party banking institution, acting as an agent of the customer. The manufacturing equipment was used exclusively for the benefit of this customer. The Company has the ability to settle the obligation related to these financed assets by returning the equipment to the customer and cannot be required to pay cash by either the customer or the third party banking institution. During the current fiscal year, the Company ceased manufacturing of the product related to the financed equipment. As a result, the Company as an agent on behalf of the customer is in the process of dispositioning the equipment and forwarding the proceeds to the third party banking institution reducing the outstanding obligation. The value of the equipment financed by the third party was $272.0 million and $267.5 million as of December 31, 2014 and March 31, 2014, respectively and is included in other current assets. The outstanding balance due to the third party banking institution related to the financed equipment was $263.7 million and $286.5 million as of December 31, 2014 and March 31, 2014, respectively and is included in other current liabilities.

Other current liabilities also includes deferred revenue of $287.0 million and $296.3 million, and customer working capital advances of $213.0 million and $754.7 million as of December 31, 2014 and March 31, 2014, respectively. The customer working capital advances are not interest bearing, do not have fixed repayment dates and are generally reduced as the underlying working capital is consumed in production.