Goodwill and Other Intangible Assets

12 Months Ended

Jan. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

8. Goodwill and Other Intangible Assets


	Weighted Average Life at 1/31/16		January 31, 2016							January 31, 2015
	Weighted Average Life at 1/31/16		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
					(in thousands)							(in thousands)
Goodwill			$	4,155						$	5,594

Proprietary rights		6.8	$	5,959	$	(2,645	)		3,314	$	6,121	$	(2,240	)		3,881
Customer relationships		5.8		4,633		(1,006	)		3,627		6,613		(1,583	)		5,030
Patents		6.8		1,592		(369	)		1,223		2,243		(505	)		1,738
Trade name		10.3		883		(17	)		866		284		(102	)		182
Customer backlog		0.9		20		(2	)		18		—		—			—
Developed technology		9.9		1,430		(12	)		1,418		—		—			—

Amortizable intangible assets			$	14,517	$	(4,051	)	$	10,466	$	15,261	$	(4,430	)	$	10,831

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 3 to our consolidated financial statements.

On January 31, 2016 the Company completed the annual review of goodwill and other intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the carrying value of our reporting units was greater than their fair value. Therefore a quantitative assessment was conducted using Level 3 inputs including projections of earnings and comparable multiples of earnings. The review indicated that the carrying value of the Seamap reporting unit, including goodwill, exceeded its fair value. This required the Company to perform step 2 of the impairment test on the Seamap reporting unit, which indicated that the goodwill associated with the Seamap reporting unit was impaired. Accordingly, the Company recorded an impairment of the goodwill associated with this 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.

Aggregate amortization expense was $1.7 million, $1.4 million and $660,000 for the fiscal years ended January 31, 2016, 2015 and 2014, respectively. As of January 31, 2016, future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands):


For fiscal years ending January 31:
2017	$	1,457
2018		1,418
2019		1,418
2020		1,418
2021		1,267
Thereafter		3,488

Total	$	10,466

- 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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