Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

Goodwill

The following table presents the Company’s goodwill balance as of July 31, 2012 and October 31, 2011 (in thousands):



	Net Carrying Amount as of
	July 31, 2012		October 31, 2011

Versant Europe	$	241	$	241
Poet Holdings, Inc.	5,752		5,752
FastObjects, Inc.	677		677
JDO Genie (PTY), Ltd	50		50
db4o	1,869		1,869
Total	$	8,589	$	8,589

Goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company's impairment evaluation for goodwill is conducted annually or more frequently if events or changes in circumstances indicate that an asset might be impaired. Versant conducted its annual impairment test in October 2011 and determined there was no impairment.

The process of evaluating goodwill for impairment involves the determination of the fair value of the Company's single reporting unit. Inherent in such a fair value determination are certain judgments and estimates, including the interpretation of current economic indicators and market valuations, and assumptions about the Company's strategic plans with regard to its operations. The Company believes at this time that the carrying value of its remaining goodwill is appropriate, although to the extent additional information arises, it is possible that the Company's conclusions regarding impairment of the remaining goodwill could change and result in a material effect on its financial position and results of operations. No events or circumstances occurred during the nine months ended July 31, 2012 that would more likely than not reduce the fair value of the Company below its carrying amount. The Company intends to conduct its next annual impairment evaluation as of October 31, 2012.

Intangible Assets

The Company’s intangible asset balances as of July 31, 2012 and October 31, 2011 are as follows (in thousands):



	July 31, 2012						October 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
db4o-Developed Technology (Amortized over 5 years)	$	300	$	220	$	80	$	300	$	175	$	125
db4o-Customer Relationships (Amortized over 9 years)	210		86		124		210		68		142
db4o-Trade Name (Amortized over 5 years)	100		73		27		100		58		42
Total	$	610	$	379	$	231	$	610	$	301	$	309

Aggregate amortization expense for intangible assets was $26,000 and $78,000 for the three and nine months ended July 31, 2012, and $26,000 and $164,000 for the three and nine months ended July 31, 2011.

The projected amortization of the Company’s existing intangible assets as of July 31, 2012 is as follows (in thousands):



	Amortization
Three months ending October 31, 2012	$	26
Fiscal year ending October 31,
2013	103
2014	30
2015	23
2016	23
Thereafter	26
Total	$	231

- 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.

+ References+ Details