SeaChange International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Oct. 31, 2015

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of October 31, 2015 and January 31, 2015:


			Fair Value at October 31, 2015 Using
			Quoted
			Prices in		Significant
			Active		Other		Significant
			Markets for		Observable		Unobservable
	October 31,		Identical Assets		Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Financial assets:
Money market accounts (a)	$	3,129	$	3,129	$	—	$	—
Available for sale marketable securities:
Current marketable securities:
U.S. treasury notes and bonds - conventional		2,004		2,004		—		—
U.S. government agency issues		2,504		—		2,504		—
Non-current marketable securities:
U.S. treasury notes and bonds - conventional		6,765		6,765		—		—
U.S. government agency issues		1,501		—		1,501		—

Total	$	15,903	$	11,898	$	4,005	$	—

Financial liabilities:
Contingent consideration (b)	$	1,979	$	—	$	—	$	1,979


			Fair Value at January 31, 2015 Using
			Quoted
			Prices in		Significant
			Active		Other		Significant
			Markets for		Observable		Unobservable
	January 31,		Identical Assets		Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Financial assets:
Money market accounts (a)	$	1,575	$	1,575	$	—	$	—
Available for sale marketable securities:
Current marketable securities:
U.S. treasury notes and bonds - conventional		1,501		1,501		—		—
U.S. government agency issues		6,015		—		6,015		—
Non-current marketable securities:
U.S. treasury notes and bonds - conventional		4,286		4,286
U.S. government agency issues		2,507		—		2,507		—

Total	$	15,884	$	7,362	$	8,522	$	—

(a)	Money market funds and U.S. treasury bills are included in cash and cash equivalents on the accompanying consolidated balance sheet and are valued at quoted market prices for identical instruments in active markets.

(b)

The fair value of our contingent consideration arrangement is determined based on management’s evaluation as to the probability of achieving certain defined performance criteria based on the expected future performance of the acquired entity, as well as the fair value of the estimated shares of the Company’s common stock to be issued.

Reconciliation of Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth a reconciliation of liabilities measured at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the nine months ended October 31, 2015 (amounts in thousands):


	Level 3
	Accrued Contingent
	Consideration
Balance at January 31, 2015	$	—
Timeline Labs acquisition		504
Contingent consideration expense		1,475

Balance at October 31, 2015	$	1,979

Summary of Available-for-Sale Securities

The following is a summary of cash, cash equivalents and available-for-sale securities, including the cost basis, aggregate fair value and gross unrealized gains and losses, for short- and long-term marketable securities portfolio as of October 31, 2015 and January 31, 2015:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(Amounts in thousands)
October 31, 2015:
Cash	$	54,901	$	—	$	—	$	54,901
Cash equivalents		3,129		—		—		3,129

Cash and cash equivalents		58,030		—		—		58,030

U.S. treasury notes and bonds - short-term		2,003		1				2,004
U.S. treasury notes and bonds - long-term		6,761		4		—		6,765
U.S, government agency issues - short-term		2,502		2		—		2,504
U.S, government agency issues - long-term		1,487		14				1,501

Total cash, cash equivalents and marketable securities	$	70,783	$	21	$	—	$	70,804

January 31, 2015:
Cash	$	88,444	$	—	$	—	$	88,444
Cash equivalents		1,575		—		—		1,575

Cash and cash equivalents		90,019		—		—		90,019

U.S. treasury notes and bonds - short-term		1,500		1				1,501
U.S. treasury notes and bonds - long-term		4,268		18		—		4,286
U.S, government agency issues - short-term		6,008		7		—		6,015
U.S, government agency issues - long-term		2,490		17				2,507

Total cash, cash equivalents and marketable securities	$	104,285	$	43	$	—	$	104,328

Schedule of Contractual Maturities Available-for-Sale Debt Securities

The following is a schedule of the contractual maturities of available-for-sale investments as of October 31, 2015 (amounts in thousands):


	Estimated
	Fair Value
Maturity of one year or less	$	4,508
Maturity between one and five years		8,266

Total	$	12,774