Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets that have indefinite useful lives are recorded at cost and are not amortized but, instead, tested at least annually for impairment. The Company assesses the impairment of goodwill on an annual basis or whenever events or changes in circumstances indicate that the fair value of these assets is less than the carrying value.

The Company performs annual goodwill impairment test as of July 1, and tested goodwill recognized in connection with the acquisitions of Mediasite, Sonic Foundry International and Mediasite KK and determined it was not impaired. For purposes of the test, goodwill on the Company’s books is evaluated within three separate reporting units.

The changes in the carrying amount of goodwill for the years ended September 30, 2016 and 2015, respectively, are as follows:



Balance as of September 30, 2014	$	11,185
Foreign currency translation adjustment	(332		)
Balance as of September 30, 2015	10,853
Foreign currency translation adjustment	457
Balance as of September 30, 2016	$	11,310

The following tables present details of the Company’s total intangible assets at September 30, 2016 and 2015:



(in thousands)	Life (years)	Gross		Accumulated Amortization at September 30, 2016		Balance at September 30, 2016
Amortizable:
Loan origination fees	3	$	312	$	236	$	76
Customer relationships	10	2,605		723		1,882
Software development costs	3	533		533		—
Product rights	6	672		287		385
		4,122		1,779		2,343
Non-amortizable goodwill		11,310		—		11,310
Total		$	15,432	$	1,779	$	13,653



(in thousands)	Life (years)	Gross		Accumulated Amortization at September 30, 2015		Balance at September 30, 2015
Amortizable:
Loan origination fees	3	$	302	$	190	$	112
Customer relationships	10	2,329		457		1,872
Software development costs	3	533		429		104
Product rights	6	672		164		508
		3,836		1,240		2,596
Non-amortizable goodwill		10,853		—		10,853
Total		$	14,689	$	1,240	$	13,449

Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands):



Fiscal Year (in thousands)
2017	$	449
2018	406
2019	362
2020	302
2021	273
Thereafter	551
Total	$	2,343

- 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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