Goodwill and Other Intangible Assets

3 Months Ended

Apr. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

7.	Goodwill and Other Intangible Assets


	Weighted Average Life at 4/30/16		April 30, 2016							January 31, 2016
	Weighted Average Life at 4/30/16		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
					(in thousands)							(in thousands)
Goodwill			$	4,226						$	4,155

Proprietary rights		6.6	$	6,156	$	(2,818	)		3,338	$	5,959	$	(2,645	)		3,314
Customer relationships		5.6		4,896		(1,233	)		3,663		4,633		(1,006	)		3,627
Patents		6.6		1,684		(449	)		1,235		1,592		(369	)		1,223
Trade name		10.1		890		(20	)		870		883		(17	)		866
Customer backlog		0.7		20		(7	)		13		20		(2	)		18
Developed technology		9.7		1,430		(48	)		1,382		1,430		(12	)		1,418

Amortizable intangible assets			$	15,076	$	(4,575	)	$	10,501	$	14,517	$	(4,051	)	$	10,466

In December of 2015, the Company acquired $1.7 million in goodwill and $2.4 million in other intangible assets in connection with the purchase of Klein. See note 5 to our consolidated financial statements. The remaining $2.6 million of goodwill is allocated to Seamap.

On January 31, 2016 the Company completed the annual review of goodwill and other intangible assets. Based on a review of qualitative factors, the Company recorded an impairment of the goodwill associated with its Seamap reporting unit in the amount of $3.0 million. Also at January 31, 2016, the Company recorded impairment of approximately $600,000 related to certain identifiable intangible assets related to its leasing reporting unit. There have been no significant changes to the environment to indicate additional impairment is necessary as of April 30, 2016.

Amortizable intangible assets are amortized over their estimated useful lives of three to 15 years using the straight-line method (for customer relationships, the straight-line method is not materially different from other methods that estimate run off of the underlying customer base). Aggregate amortization expense was $401,000 and $423,000 for the three months ended April 30, 2016 and 2015, respectively. As of April 30, 2016, future estimated amortization expense related to amortizable intangible assets was estimated to be:


For fiscal years ending January 31 (in thousands):
2017	$	1,178
2018		1,480
2019		1,480
2020		1,480
2021		1,327
2022 and thereafter		3,556

Total	$	10,501

- 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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