Goodwill

Goodwill relates to the 2015 acquisition of Nextracker and the 2016 acquisition of BrightBox by Flex on behalf of Nextracker. As of March 31, 2023 and March 31, 2022, goodwill totaled $265.2 million, respectively and is not deductible for tax purposes.

Other intangible assets

Nextracker amortizes identifiable intangible assets consisting of developed technology, customer relationships, and trade names because these assets have finite lives. Nextracker’s intangible assets are amortized on a straight-

line basis over the estimated useful lives. The basis of amortization approximates the pattern in which the assets are utilized over their estimated useful lives. No residual value is estimated for any intangible assets. The fair value of Nextracker’s intangible assets is determined based on management’s estimates of cash flows and recoverability.

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. An impairment loss is recognized when the carrying amount of an intangible asset exceeds its fair value. Nextracker reviewed the carrying value of its intangible assets as of March 31, 2023 and 2022, and concluded that such amounts continued to be recoverable.

The components of identifiable intangible assets are as follows:


	As of March 31, 2023									As of March 31, 2022
(In thousands)	Weighted- average remaining useful life (in years)		Gross carrying amount		Accumulated amortization			Net carrying amount		Gross carrying amount		Accumulated amortization			Net carrying amount
Intangible assets:
Trade name and other intangibles		5	$	2,500	$	(1,179	)	$	1,321	$	15,900	$	(13,372	)	$	2,528

Total			$	2,500	$	(1,179	)	$	1,321	$	15,900	$	(13,372	)	$	2,528

The gross carrying amount of intangible assets are removed when fully amortized. Total intangible asset amortization expense recognized in operations during the fiscal years ended March 31, 2023, 2022 and 2021 are as follows:


	Fiscal year ended March 31,
(In thousands)	2023		2022		2021

Cost of sales	$	250	$	4,043	$	8,082
Selling general and administrative expense		957		4,422		6,931

Total amortization expense	$	1,207	$	8,465	$	15,013

Estimated future annual amortization expense for the above amortizable intangible assets are as follows:


	Amount
	(in thousands)
Fiscal year ending March 31,
2024	$	250
2025		250
2026		250
2027		250
2028		250
Thereafter		71

Total amortization expense	$	1,321