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

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

5.	Goodwill and Intangible Assets

Goodwill

Changes in the carrying amount of goodwill for the six months ended July 31, 2015 were as follows:


	Goodwill
	(Amounts in thousands)
Balance at January 31, 2015	$	41,008
Acquisition of Timeline Labs		17,246
Cumulative translation adjustment		(622	)

Balance at July 31, 2015	$	57,632

We are required to perform impairment tests related to our goodwill annually on August 1^st, which we perform during the third quarter of each fiscal year or sooner if an indicator of impairment occurs. There was no impairment of goodwill determined as a result of the annual impairment test analysis completed during the third quarter of fiscal 2015. While no impairment charges resulted from our annual test, impairment charges may occur in the future as a result of changes in projected growth and other factors.

Intangible Assets

Intangible assets, net, consisted of the following at July 31, 2015 and January 31, 2015:


			As of July 31, 2015							As of January 31, 2015
	Weighted average remaining life (Years)		Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(Amounts in thousands)
Finite-life intangible assets:
Customer contracts		6.3	$	34,828	$	(25,705	)	$	9,123	$	30,397	$	(24,160	)	$	6,237
Non-compete agreements		2.0		2,552		(2,425	)		127		2,433		(2,433	)		—
Completed technology		5.1		11,303		(9,493	)		1,810		10,307		(9,230	)		1,077
Trademarks, patents and other		7.1		7,692		(7,116	)		576		7,082		(7,082	)		—

Total finite-life intangible assets			$	56,375	$	(44,739	)	$	11,636	$	50,219	$	(42,905	)	$	7,314

As of July 31, 2015, the estimated future amortization expense for our finite-life intangible assets for the remainder of fiscal 2016, the four succeeding fiscal years and thereafter is as follows (amounts in thousands):


	Estimated
	Amortization
Fiscal Year Ended January 31,	Expense
2016 (for the remaining six months)	$	2,255
2017		3,187
2018		2,330
2019		1,647
2020		1,065
2021 and thereafter		1,152

Total	$	11,636

- 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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