Goodwill and Intangible Assets, Net
Changes in the carrying amount of goodwill on a consolidated basis for fiscal 2026 consists of the following (in thousands):
| | | | | | | |
| | | |
| March 31, 2026 | | |
| Balance, beginning of year | $ | 1,336,435 | | | |
| Goodwill from acquisitions | 5,961 | | | |
| Foreign currency impact | 7,860 | | | |
| Balance, end of year | $ | 1,350,256 | | | |
Intangible assets, net, excluding goodwill, consists of the following (in thousands):
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| | March 31, 2026 (1) |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Weighted Average Useful Life (in months) |
| Capitalized software | | $ | 35,710 | | | $ | (13,057) | | | $ | 22,653 | | | 78 |
| Customer relationships | | 312 | | | (115) | | | 197 | | | 48 |
| | | | | | | | |
| Total intangible assets | | $ | 36,022 | | | $ | (13,172) | | | $ | 22,850 | | | |
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| | March 31, 2025 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Weighted Average Useful Life (in months) |
| Capitalized software | | $ | 221,966 | | | $ | (196,582) | | | $ | 25,384 | | | 103 |
| Customer relationships | | 351,761 | | | (351,611) | | | 150 | | | 120 |
| Trademarks and tradenames | | 55,003 | | | (55,003) | | | — | | | 120 |
| Total intangible assets | | $ | 628,730 | | | $ | (603,196) | | | $ | 25,534 | | | |
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(1) Fully amortized intangible assets related to prior acquisitions are no longer presented as of March 31, 2026.
Amortization of intangible assets totaled $5.6 million, $28.9 million, and $39.4 million for the years ended March 31, 2026, 2025, and 2024, respectively.
As of March 31, 2026, the estimated future amortization expense of the Company’s intangible assets is as follows (in thousands):
| | | | | | | | |
| Fiscal Years Ending March 31, | | Amount |
| 2027 | | $ | 5,835 | |
| 2028 | | 5,831 | |
| 2029 | | 4,922 | |
| 2030 | | 3,655 | |
| 2031 | | 1,957 | |
| Thereafter | | 650 | |
| Total | | $ | 22,850 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.