Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Oct. 31, 2018	Nov. 15, 2018
Document And Entity Information
Entity Registrant Name	VERINT SYSTEMS INC
Entity Central Index Key	0001166388
Current Fiscal Year End Date	--01-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		65,271,648

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Current Assets:
Cash and cash equivalents	$ 353,422	$ 337,942
Restricted cash and cash equivalents, and restricted time deposits	32,457	33,303
Short-term investments	49,434	6,566
Accounts receivable, net of allowance for doubtful accounts of $2.9 million and $2.2 million, respectively	311,492	296,324
Contract assets	70,076	0
Inventories	21,737	19,871
Deferred cost of revenue	9,651	6,096
Prepaid expenses and other current assets	85,310	82,090
Total current assets	933,579	782,192
Property and equipment, net	95,875	89,089
Goodwill	1,364,452	1,388,299
Intangible assets, net	192,186	226,093
Capitalized software development costs, net	11,557	9,228
Long-term deferred cost of revenue	4,283	2,804
Other assets	101,643	82,915
Total assets	2,703,575	2,580,620
Current Liabilities:
Accounts payable	79,372	84,639
Accrued expenses and other current liabilities	181,452	224,765
Contract liabilities	306,240	196,107
Total current liabilities	567,064	505,511
Long-term debt	775,342	768,484
Long-term contract liabilities	27,512	24,519
Other liabilities	120,158	149,770
Total liabilities	1,490,076	1,448,284
Commitments and Contingencies
Stockholders' Equity:
Preferred stock - $0.001 par value; authorized 2,207,000 shares at October 31, 2018 and January 31, 2018, respectively; none issued.	0	0
Common stock - $0.001 par value; authorized 120,000,000 shares. Issued 66,937,000 and 65,497,000 shares; outstanding 65,272,000 and 63,836,000 shares at October 31, 2018 and January 31, 2018, respectively.	67	65
Additional paid-in capital	1,572,806	1,519,724
Treasury stock, at cost - 1,665,000 and 1,661,000 shares at October 31, 2018 and January 31, 2018, respectively.	(57,598)	(57,425)
Accumulated deficit	(161,580)	(238,312)
Accumulated other comprehensive loss	(154,148)	(103,460)
Total Verint Systems Inc. stockholders' equity	1,199,547	1,120,592
Noncontrolling interests	13,952	11,744
Total stockholders' equity	1,213,499	1,132,336
Total liabilities and stockholders' equity	$ 2,703,575	$ 2,580,620

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts	$ 2,856	$ 2,217
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	2,207,000	2,207,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	120,000,000	120,000,000
Common stock, issued (in shares)	66,937,000	65,497,000
Common stock, outstanding (in shares)	65,272,000	63,836,000
Treasury stock, (in shares)	1,665,000	1,661,000

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Revenue:
Product	$ 111,670	$ 94,827	$ 327,576	$ 279,056
Service and support	192,313	185,899	571,941	537,442
Total revenue	303,983	280,726	899,517	816,498
Cost of revenue:
Product	33,124	32,840	100,917	98,708
Service and support	72,182	69,383	218,842	205,928
Amortization of acquired technology	5,933	9,182	18,879	28,246
Total cost of revenue	111,239	111,405	338,638	332,882
Gross profit	192,744	169,321	560,879	483,616
Operating expenses:
Research and development, net	51,587	47,157	155,993	141,911
Selling, general and administrative	99,902	97,304	311,482	302,605
Amortization of other acquired intangible assets	7,585	7,048	22,721	26,727
Total operating expenses	159,074	151,509	490,196	471,243
Operating income	33,670	17,812	70,683	12,373
Other income (expense), net:
Interest income	1,319	654	3,246	1,793
Interest expense	(8,686)	(8,891)	(27,670)	(26,997)
Loss on early retirement of debt	0	0	0	(1,934)
Other (expense) income, net	(489)	(565)	(2,194)	2,529
Total other expense, net	(7,856)	(8,802)	(26,618)	(24,609)
Income (loss) before (benefit) provision for income taxes	25,814	9,010	44,065	(12,236)
Provision for income taxes	5,601	5,944	2,153	9,504
Net income (loss)	20,213	3,066	41,912	(21,740)
Net income attributable to noncontrolling interest	1,293	577	3,227	1,984
Net income (loss) attributable to Verint Systems Inc.	$ 18,920	$ 2,489	$ 38,685	$ (23,724)
Net income (loss) per common share attributable to Verint Systems Inc.
Basic (in dollars per share)	$ 0.29	$ 0.04	$ 0.60	$ (0.38)
Diluted (in dollars per share)	$ 0.29	$ 0.04	$ 0.59	$ (0.38)
Weighted-average common shares outstanding
Basic (in shares)	65,122	63,759	64,690	63,152
Diluted (in shares)	66,200	64,588	65,885	63,152

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Net income (loss)	$ 20,213	$ 3,066	$ 41,912	$ (21,740)
Other comprehensive (loss) income, net of reclassification adjustments:
Foreign currency translation adjustments	(11,780)	779	(45,509)	21,883
Benefit (provision) for income taxes on net increase (decrease) from foreign exchange contracts and interest rate swap designated as hedges	27	29	823	(242)
Other comprehensive (loss) income	(10,749)	(21)	(51,007)	22,892
Comprehensive income (loss)	9,464	3,045	(9,095)	1,152
Comprehensive income attributable to noncontrolling interests	1,144	688	2,908	2,383
Comprehensive income (loss) attributable to Verint Systems Inc.	8,320	2,357	(12,003)	(1,231)
Foreign currency forward contracts
Other comprehensive (loss) income, net of reclassification adjustments:
Net (decrease) increase from on derivative instruments designated as hedges	(262)	(829)	(8,199)	2,272
Interest rate swap
Other comprehensive (loss) income, net of reclassification adjustments:
Net (decrease) increase from on derivative instruments designated as hedges	$ 1,266	$ 0	$ 1,878	$ (1,021)

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Verint Systems Inc. Stockholders' Equity	Noncontrolling Interests
Balances at Jan. 31, 2017	$ 1,015,040	$ 64	$ 1,449,335	$ (57,147)	$ (230,816)	$ (154,856)	$ 1,006,580	$ 8,460
Balances (in shares) at Jan. 31, 2017		62,419,000
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(21,740)	$ 0	0	0	(23,724)	0	(23,724)	1,984
Other comprehensive income (loss)	22,892	0	0	0	0	22,493	22,493	399
Stock-based compensation - equity-classified awards	43,182	0	43,182	0	0	0	43,182	0
Common stock issued for stock awards and stock bonuses	12,976	$ 1	12,975	0	0	0	12,976	0
Common stock issued for stock awards and stock bonuses (in shares)		1,369,000
Treasury stock acquired	$ (278)	$ 0	0	278	0	0	(278)	0
Treasury stock acquired (in shares)	(7,000)	(7,000)
Initial noncontrolling interest related to business combination	$ 2,300	$ 0	0	0	0	0	0	2,300
Capital contributions by noncontrolling interest	580	0	0	0	0	0	0	580
Dividends to noncontrolling interest	(716)	0	0	0	0	0	0	(716)
Balances at Oct. 31, 2017	1,073,367	$ 65	1,505,492	(57,425)	(255,409)	(132,363)	1,060,360	13,007
Balances (in shares) at Oct. 31, 2017		63,781,000
Increase (Decrease) in Stockholders' Equity
Cumulative effect of new accounting principle in period of adoption \| Accounting Standards Update 2016-16	(869)	$ 0	0	0	(869)	0	(869)	0
Balances at Jan. 31, 2018	1,132,336	$ 65	1,519,724	(57,425)	(238,312)	(103,460)	1,120,592	11,744
Balances (in shares) at Jan. 31, 2018		63,836,000
Increase (Decrease) in Stockholders' Equity
Net (loss) income	41,912	$ 0	0	0	38,685	0	38,685	3,227
Other comprehensive income (loss)	(51,007)	0	0	0	0	(50,688)	(50,688)	(319)
Stock-based compensation - equity-classified awards	44,199	0	44,199	0	0	0	44,199	0
Common stock issued for stock awards and stock bonuses	8,885	$ 2	8,883	0	0	0	8,885	0
Common stock issued for stock awards and stock bonuses (in shares)		1,440,000
Treasury stock acquired	$ (173)	$ 0	0	173	0	0	(173)	0
Treasury stock acquired (in shares)	(4,000)	(4,000)
Capital contributions by noncontrolling interest	$ 60	$ 0	0	0	0	0	0	60
Dividends to noncontrolling interest	(760)	0	0	0	0	0	0	(760)
Balances at Oct. 31, 2018	1,213,499	$ 67	1,572,806	(57,598)	(161,580)	(154,148)	1,199,547	13,952
Balances (in shares) at Oct. 31, 2018		65,272,000
Increase (Decrease) in Stockholders' Equity
Cumulative effect of new accounting principle in period of adoption \| Accounting Standards Update 2014-09	$ 38,047	$ 0	$ 0	$ 0	$ 38,047	$ 0	$ 38,047	$ 0

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 41,912	$ (21,740)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	66,231	79,879
Stock-based compensation, excluding cash-settled awards	50,509	50,397
Amortization of discount on convertible notes	8,829	8,377
Non-cash gains on derivative financial instruments, net	(3,760)	(292)
Loss on early retirement of debt	0	1,934
Other non-cash items, net	(1,972)	307
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	35,879	(15,824)
Contract assets	(999)	0
Inventories	(4,404)	(2,232)
Deferred cost of revenue	2,184	1,503
Prepaid expenses and other assets	(8,443)	(12,947)
Accounts payable and accrued expenses	(17,841)	13,145
Contract liabilities	(29,940)	(14,129)
Other, net	(6,535)	7,796
Net cash provided by operating activities	131,650	96,174
Cash flows from investing activities:
Cash paid for business combinations, including adjustments, net of cash acquired	(27,370)	(28,071)
Purchases of property and equipment	(22,933)	(26,445)
Purchases of investments	(53,868)	(8,305)
Maturities and sales of investments	10,620	5,244
Cash paid for capitalized software development costs	(4,767)	(909)
Change in restricted cash and bank time deposits, and other investing activities, net	(21,128)	(111)
Net cash used in investing activities	(119,446)	(58,597)
Cash flows from financing activities:
Proceeds from borrowings, net of original issuance discount	0	424,469
Repayments of borrowings and other financing obligations	(4,317)	(410,536)
Payments of debt-related costs	(206)	(7,107)
Purchases of treasury stock	(173)	0
Dividends paid to noncontrolling interest	(760)	(716)
Payments of contingent consideration for business combinations (financing portion)	(10,681)	(7,210)
Other financing activities, net	(429)	(320)
Net cash provided used in financing activities	(16,566)	(1,420)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(3,864)	447
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents	(8,226)	36,604
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period	398,210	369,329
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period	389,984	405,933
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period to balance sheet [Abstract]
Cash and cash equivalents	353,422	312,666
Restricted cash and cash equivalents included in restricted cash and cash equivalents, and restricted bank time deposits	32,212	62,664
Restricted cash and cash equivalents included in other assets	4,350	30,603
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period	$ 389,984	$ 405,933

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Oct. 31, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Unless the context otherwise requires, the terms “Verint”, “we”, “us”, and “our” in these notes to condensed consolidated financial statements refer to Verint Systems Inc. and its consolidated subsidiaries.

Verint is a global leader in Actionable Intelligence solutions. Actionable Intelligence is a necessity in a dynamic world of massive information growth because it empowers organizations with crucial insights and enables decision makers to anticipate, respond, and take action. With Verint solutions and value-added services, organizations of all sizes and across many industries can make more informed, timely, and effective decisions. Today, over 10,000 organizations in more than 180 countries, including over 85 percent of the Fortune 100, use Verint solutions to optimize customer engagement and make the world a safer place.

Verint delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions (“Customer Engagement”) and Cyber Intelligence Solutions (“Cyber Intelligence”). Please refer to Note 15, "Segment Information" for further details regarding our operating segments.

We have established leadership positions in Actionable Intelligence by developing highly-scalable, enterprise-class software and services with advanced, integrated analytics for both structured and unstructured information. Our innovative solutions are developed by a large research and development (“R&D”) team comprised of approximately 1,800 professionals and backed by close to 1,000 patents and patent applications worldwide.

To help our customers maximize the benefits of our technology over the solution lifecycle and provide a high degree of flexibility, we offer a broad range of services, such as strategic consulting, managed services, implementation services, training, maintenance, and 24x7 support. Additionally, we offer a broad range of deployment options, including cloud, on-premises, and hybrid, and software licensing and delivery models that include perpetual and term-based licenses and software as a service (“SaaS”).

Headquartered in Melville, New York, we support our customers around the globe directly and with an extensive network of selling and support partners.

Preparation of Condensed Consolidated Financial Statements

The condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2018 filed with the U.S. Securities and Exchange Commission (“SEC”), except for the recently adopted accounting pronouncements described below. The condensed consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the periods ended October 31, 2018 and 2017, and the condensed consolidated balance sheet as of October 31, 2018, are not audited but reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown. The condensed consolidated balance sheet as of January 31, 2018 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2018. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2018 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Verint Systems Inc., our wholly owned or otherwise controlled subsidiaries, and a joint venture in which we hold a 50% equity interest. The joint venture is a variable interest entity in which we are the primary beneficiary. Noncontrolling interests in less than wholly owned subsidiaries are reflected within stockholders’ equity on our condensed consolidated balance sheet, but separately from our stockholders’ equity. We hold an option to acquire the noncontrolling interests in two majority owned subsidiaries and we account for the option as an in-substance investment in the noncontrolling common stock of each such subsidiary. We include the fair value of the option within other liabilities and do not recognize noncontrolling interests in these subsidiaries.

We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated.

Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Significant Accounting Policies

There have been no material changes in our significant accounting policies during the nine months ended October 31, 2018, other than the impacts of adopting the accounting pronouncements described below, as compared to the significant accounting policies described in Note 1, “Summary of Significant Accounting Policies” to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2018.

Goodwill, Other Acquired Intangible Assets, and Long-Lived Assets

For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. Goodwill is assigned, at the acquisition date, to those reporting units expected to benefit from the synergies of the combination.

We test goodwill for impairment at the reporting unit level, which can be an operating segment or one level below an operating segment, on an annual basis as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. As of October 31, 2018, our reporting units are Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and Situational Intelligence, which is a component of our Cyber Intelligence operating segment.

In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. For quantitative impairment testing performed prior to February 1, 2018, we performed a two-step test by first comparing the carrying value of the reporting unit to its fair value. If the carrying value exceeded the fair value, a second step was performed to compute the goodwill impairment. Effective with our February 1, 2018 adoption of Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, if our quantitative testing determines that the carrying value of a reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to that reporting unit, eliminating the need for the second step.

We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of each reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts.

Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, non-competition agreements, sales backlog, and in-process research and development. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of ten years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Other Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted ASU No. 2014-09 as of February 1, 2018 using the modified retrospective transition method. Please refer to Note 2, “Revenue Recognition” for further details.

In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, associated with the recognition and measurement of financial assets and liabilities, with further clarifications made in February 2018 with the issuance of ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amended guidance requires certain equity investments that are not consolidated and not accounted for under the equity method to be measured at fair value with changes in fair value recognized in net income rather than as a component of accumulated other comprehensive income (loss). It further states that an entity may choose to measure equity investments that do not have readily determinable fair values using a quantitative approach, or measurement alternative, which is equal to its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. We adopted this amended guidance on February 1, 2018, using a prospective transition approach, which did not have an impact on our condensed consolidated financial statements.

We concluded that all equity investments within the scope of ASU No. 2016-01, previously accounted for under the cost method, do not have readily determinable fair values. Accordingly, the value of these investments beginning February 1, 2018 has been measured using the measurement alternative, as noted above. As of October 31, 2018, the carrying amount of our equity investments without readily determinable fair values was $6.0 million. During the nine months ended October 31, 2018, we did not recognize any impairments or other adjustments.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance with the intent of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The clarifications provided by this guidance did not have a material impact on our condensed consolidated statement of cash flows.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We retrospectively adopted ASU No. 2016-18 on February 1, 2018 and as a result, we now include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the condensed consolidated statements of cash flows. Prior to adoption of this new guidance, we reported changes in restricted cash and restricted cash equivalents as cash flows from investing activities. We typically have restrictions on certain amounts of cash and cash equivalents, primarily consisting of amounts used to secure bank guarantees in connection with sales contract performance obligations, and expect to continue to have similar restrictions in the future.

As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the nine months ended October 31, 2017 as follows:



	Nine Months Ended October 31, 2017
(in thousands)	As previously reported			Adjustments		As Adjusted
Net cash provided by operating activities	$	96,174		$	—	$	96,174
Net cash used in investing activities	(88,693		)	30,096		(58,597		)
Net cash used in financing activities	(1,420		)	—		(1,420		)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(758		)	1,205		447
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	5,303			31,301		36,604
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	307,363			61,966		369,329
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	312,666		$	93,267	$	405,933

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If an entity determines that substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If this threshold is not met, in order to be considered a business the set of transferred assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. Our February 1, 2018 prospective adoption of this standard will require future transactions to be evaluated under the new framework.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities. This update better aligns risk management activities and financial reporting for hedging relationships, simplifies hedge accounting requirements, and improves disclosures of hedging arrangements. We early adopted this standard on February 1, 2018 on a prospective basis. The effects of this standard on our condensed consolidated financial statements were not material.

New Accounting Pronouncements Not Yet Effective

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation costs in cloud computing arrangements. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently reviewing this standard to assess the impact on our condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to

The Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently reviewing this standard to assess the impact on our condensed consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, to simplify the accounting for nonemployee share-based payment transactions by expanding the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Under the new standard, most of the guidance on stock compensation payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods, with early adoption permitted. While we continue to assess the potential impact of this standard, we do not expect the adoption of this standard to have a material impact on our condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. We are currently reviewing this standard to assess the impact on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will require both types of leases to be recognized on the balance sheet. The ASU is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the entity must recast its comparative period financial statements and provide disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on February 1, 2019 using the effective date as our date of initial application. Consequently, financial information will not be updated and disclosures required under the new standard will not be provided for dates and periods before February 1, 2019.

The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us.

We currently anticipate that the adoption of this new standard will materially affect our consolidated balance sheets by recognizing new right-of-use assets and lease liabilities for operating leases. The impact on our results of operations and cash flows is not expected to be material. We are implementing a new lease accounting system and updating our processes in preparation for the adoption of the new standard, including the requirement to provide significant new disclosures about our leasing activities. Please refer to Note 14, “Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended January 31, 2018 for additional information about our leases, including the future minimum lease payments for our operating leases at January 31, 2018.

REVENUE RECOGNITION REVENUE RECOGNITION

9 Months Ended

Oct. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customer [Text Block]

REVENUE RECOGNITION

On February 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts that were not completed as of February 1, 2018. Results for reporting periods beginning after February 1, 2018 are presented under ASU No. 2014-09, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under prior guidance. For contracts that were modified before the effective date of ASU No. 2014-09, we recorded the aggregate effect of all modifications when identifying performance obligations and allocating the transaction price in accordance with the practical expedient provided for under the new guidance, which permits an entity to record the aggregate effect of all contract modifications that occur before the beginning of the earliest period presented in accordance with the new standard when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations.

Under the new standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of new standard, we perform the following five steps:

1) Identify the contract(s) with a customer

A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer, published credit and financial information pertaining to the customer. Our customary business practice is to enter into legally enforceable written contracts with our customers. The majority of our contracts are governed by a master agreement between us and the customer, which sets forth the general terms and conditions of any individual contract between the parties, which is then supplemented by a customer purchase order to specify the different goods and services, the associated prices, and any additional terms for an individual contract. Multiple contracts with a single counterparty entered into at the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract.

2) Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain Cyber Intelligence customers require design, development, or significant customization of our products to meet their specific requirements, in which case the products and services are combined into one distinct performance obligation.

3) Determine the transaction price

The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. We assess the timing of transfer of goods and services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less, which is the case in the majority of our customer contracts. The primary purpose of our invoicing terms is not to receive or provide financing from or to customers. Our Cyber Intelligence contracts may require an advance payment to encourage customer commitment to the project and protect us from early termination of the contract. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price, if we assessed that a significant future reversal of cumulative revenue under the contract will not occur. Typically, our contracts do not provide our customers with any right of return or refund, and we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund.

4) Allocate the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct goods or services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, we must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. We allocate the variable amount to one or more distinct performance obligations but not all or to one or more distinct services that forms a part of a single performance obligation, when the payment terms of the variable amount relate solely to our efforts to satisfy that distinct performance obligation and it results in an allocation that is consistent with the overall allocation objective of ASU No. 2014-09. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. We determine standalone selling price (“SSP”) based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation.

5) Recognize revenue when (or as) the entity satisfies a performance obligation

We satisfy performance obligations either over time or at a point in time depending on the nature of the underlying promise. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. In the case of contracts that include customer acceptance criteria, revenue is not recognized until we can objectively conclude that the product or service meets the agreed-upon specifications in the contract.

We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to our customers. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer.

Shipping and handling activities that are billed to the customer and occur after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. Historically, these expenses have not been material.

Nature of Goods and Services

We derive and report our revenue in two categories: (a) product revenue, including licensing of software products, and the sale of hardware products, and (b) service and support revenue, including revenue from installation services, post-contract customer support (“PCS”), project management, hosting services, cloud deployments, SaaS, application managed services, product warranties, business advisory consulting, and training services.

Our software licenses typically provide for a perpetual right to use our software, though we also sell term-based software licenses that provide our customers with the right to use our software for only a fixed term, in most cases between a one- and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that the software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. We rarely sell our software licenses on a standalone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there are certain stratifications of the population with different pricing practices. Revenue for hardware is recognized at a point in time, generally upon shipment or delivery.

Contracts that require us to significantly customize our software are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use the expected cost plus a margin approach to estimate the SSP of our significantly customized solutions.

Professional services revenues primarily consist of fees for deployment and optimization services, as well as training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional services as the services are performed. Professional services that are billed on a time and materials basis are recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. We determine SSP for our professional services based on the price at which the performance obligation is sold separately, which is observable through past transactions.

Our SaaS contracts are typically comprised of a right to access our software, maintenance, and hosting fees. We do not provide the customer the contractual right to take possession of the software at any time during the hosting period under these contracts. The customer can only benefit from the SaaS license and the maintenance when combined with the hosting service as the hosting service is the only way for the customer to access the software and benefit from the maintenance services. Accordingly, each of the license, maintenance, and hosting services is not considered a distinct performance obligation in the context of the contract, and should be combined into a single performance obligation (“SaaS services”) and recognized ratably over the contract period. Our SaaS customer contracts can consist of fixed, variable, and usage based fees. Typically, we invoice a portion of the fees at the outset of the contract and then monthly or quarterly thereafter. Certain SaaS contracts include a nonrefundable upfront fee for setup services, which are not distinct from the SaaS services. Non-distinct setup services represent an advanced payment for future SaaS services, and are recognized as revenue when those SaaS services are satisfied, unless the nonrefundable fee is considered to be a material right, in which case the nonrefundable fee is recognized over the expected benefit period, which includes anticipated SaaS renewals. We determine SSP for our SaaS services based on the price at which the performance obligation is sold separately, which is observable through past SaaS renewal transactions. We satisfy our SaaS services by providing access to our software over time and processing transactions for usage based contracts. For non-usage based fees, the period of time over which we perform is commensurate with the contract term because that is the period during which we have an obligation to provide the service. The performance obligation is recognized on a time elapsed basis, by month for which the services are provided.

Customer support revenue is derived from providing telephone technical support services, bug fixes and unspecified software updates and upgrades to customers on a when-and-if-available basis. Each of these performance obligations provide benefit to the customer on a standalone basis and are distinct in the context of the contract. Each of these distinct performance obligations represent a stand ready obligation to provide service to a customer, which is concurrently delivered and has the same pattern of transfer to the customer, which is why we account for these support services as a single performance obligation. We recognize support services ratably over the contractual term, which typically is one year, and develop SSP for support services based on standalone renewal contracts.

Our Customer Engagement solutions are generally sold with a warranty of one year for hardware and 90 days for software. Our Cyber Intelligence solutions are generally sold with warranties that typically range from 90 days to three years and, in some cases, longer. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware complies with agreed-upon specifications are not provided.

Disaggregation of Revenue

The following table provides information about disaggregated revenue for our Customer Engagement and Cyber Intelligence segments by product revenue and service and support revenue, as well as by the recurring or nonrecurring nature of revenue for each business segment. Recurring revenue is the portion of our revenue that is highly likely to continue in the future, and primarily consists of initial and renewal PCS, SaaS, application managed services, sales-and-usage based royalties, and subscription licenses recognized over time. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. Nonrecurring revenue primarily consists of our perpetual and term-based licenses, which are recognized at a point in time, long-term customization projects that are recognized over time as control transfers to the customer using a percentage of completion (“POC”) method, consulting, implementation and installation services, training, and hardware.



	Three Months Ended October 31, 2018						Nine Months Ended October 31, 2018
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	52,353	$	59,317	$	111,670	$	156,245	$	171,331	$	327,576
Service and support	145,114		47,199		192,313		428,485		143,456		571,941
Total revenue	$	197,467	$	106,516	$	303,983	$	584,730	$	314,787	$	899,517

Revenue by recurrence:
Recurring revenue	$	112,274	$	40,349	$	152,623	$	330,890	$	119,238	$	450,128
Nonrecurring revenue	85,193		66,167		151,360		253,840		195,549		449,389
Total revenue	$	197,467	$	106,516	$	303,983	$	584,730	$	314,787	$	899,517

Contract Balances

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:



(in thousands)	October 31, 2018
Accounts receivable, net	$	311,492
Contract assets	70,076
Long-term contract assets (included in other assets)	1,289
Contract liabilities	306,240
Long-term contract liabilities	27,512

We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to our significantly customized solutions as the right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of a majority of our contract assets to occur within the next twelve months and had no asset impairment related to contract assets in the period. There are two customers in our Cyber Intelligence segment that accounted for a combined $43.3 million and $62.3 million of our contract assets (unbilled amounts previously included in accounts receivable) at October 31, 2018 and January 31, 2018, respectively. These customers are governmental agencies outside of the U.S. which we believe present insignificant credit risk. Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract.

Revenue recognized during the three and nine months ended October 31, 2018 from amounts included in contract liabilities at February 1, 2018 was $51.0 million and $258.8 million, respectively. During the three and nine months ended October 31, 2018, we transferred $19.8 million and $42.2 million to accounts receivable from contract assets recognized at February 1, 2018, as a result of the right to the transaction consideration becoming unconditional. We recognized $11.5 million and $53.2 million of contract assets during the three and nine months ended October 31, 2018, respectively. Contract assets recognized during the period, primarily related to our rights to consideration for work completed but not billed on long-term Cyber Intelligence contracts.

Remaining Performance Obligations

The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less. We had $936.4 million of remaining performance obligations as of October 31, 2018. We elected to exclude amounts of variable consideration attributable to sales- or usage-based royalties in exchange for a license of our IP from the remaining performance obligations. We currently expect to recognize approximately 64% of our remaining revenue backlog over the next twelve months and the remainder thereafter. The timing and amount of revenue recognition for our remaining performance obligations is influenced by several factors, including seasonality, the timing of PCS renewals, and the revenue recognition for certain projects, particularly in our Cyber Intelligence segment, that can extend over longer periods of time, delivery under which, for various reasons, may be delayed, modified, or canceled. Further, we have historically generated a large portion of our business each quarter by orders that are sold and fulfilled within the same reporting period. Therefore, the amount of remaining obligations may not be a meaningful indicator of future results.

Costs to Obtain and Fulfill Contracts

We capitalize commission expenses paid to internal sales personnel and agent commission expenses that are incremental to obtaining customer contracts. We have determined that these commission expenses are in fact incremental and would not have occurred absent the customer contract. Capitalized sales and agent commissions are amortized on a straight-line basis over the period the goods or services are transferred to the customer to which the assets relate, which ranges from immediate to as long as six years, if commission amounts paid upon renewal are not commensurate with amounts paid on the initial contract. A portion of the initial commission payable on the majority of Customer Engagement contracts is amortized over the anticipated PCS renewal period, which is generally four to six years, due to the commissions being paid on PCS renewal contracts not being commensurate with amounts paid on the initial contract.

Total capitalized costs to obtain contracts were $29.1 million as of October 31, 2018, of which $5.1 million is included in prepaid expenses and other current assets and $24.0 million is included in other assets on our condensed consolidated balance sheet. During the three and nine months ended October 31, 2018, we expensed $10.8 million and $32.4 million, respectively, of sales and agent commissions, which are included in selling, general and administrative expenses and there was no impairment loss recognized for these capitalized costs.

We capitalize costs incurred to fulfill our contracts when the costs relate directly to the contract and are expected to generate resources that will be used to satisfy the performance obligation under the contract and are expected to be recovered through revenue generated under the contract. Costs to fulfill contracts are expensed to cost of revenue as we satisfy the related performance obligations. Total capitalized costs to fulfill contracts were $14.0 million as of October 31, 2018, of which $9.7 million is included in deferred cost of revenue and $4.3 million is included in long-term deferred cost of revenue on our condensed consolidated balance sheet. The amounts capitalized primarily relate to direct costs that enhance resources under our SaaS arrangements. During the three and nine months ended October 31, 2018, we amortized $6.0 million and $13.8 million, respectively, of fulfillment costs.

Financial Statement Impact of Adoption

We adopted ASU No. 2014-09 utilizing the modified retrospective method. The cumulative impact of applying the new guidance to all contracts with customers that were not completed as of February 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new standard, the following adjustments were made to accounts on the consolidated balance sheet as of February 1, 2018:



(in thousands)	Balance at January 31, 2018		Adjustments from Adopting ASU No. 2014-09			Balance at February 1, 2018
Assets:
Accounts receivable, net	$	296,324	$	53,682		$	350,006
Contract assets	—		69,217			69,217
Deferred cost of revenue	6,096		2,056			8,152
Prepaid expenses and other current assets	82,090		(829		)	81,261
Long-term deferred cost of revenue	2,804		2,193			4,997
Deferred income taxes	30,878		(2,248		)	28,630
Other assets	52,037		14,912			66,949

Liabilities:
Accrued expenses and other current liabilities	220,265		(46,062		)	174,203
Contract liabilities	196,107		139,517			335,624
Long-term contract liabilities	24,519		6,518			31,037
Deferred income taxes	35,305		963			36,268

Stockholders' Equity:
Total stockholders' equity	1,132,336		38,047			1,170,383

In connection with the adoption of the new revenue recognition accounting standard, we decreased our accumulated deficit by $38.0 million, due to uncompleted contracts at February 1, 2018, for which $17.2 million of revenue will not be recognized in future periods under the new standard. Upon adoption, we deferred $4.2 million of previously expensed contract costs and reversed $2.9 million of expenses due to the new standard precluding the recognition or deferral of costs to simply obtain an even profit margin over the contract term, which was acceptable under prior contract accounting guidance. We capitalized $16.9 million of incremental sales commission costs at the adoption date directly related to obtaining customer contracts and are amortizing these costs as we satisfy the underlying performance obligations, which for certain contracts can include anticipated renewal periods. The acceleration of revenue that was deferred under prior guidance as of February 1, 2018, was primarily attributable to being able to recognize minimum guaranteed amounts upon delivery of our software rather than over the term of the arrangement, the ability to recognize professional services revenue in advance of achieving billing milestones, no longer requiring the separation of promised goods or services, such as software licenses, technical support, or unspecified update rights on the basis of vendor specific objective evidence, and the impact of allocating the transaction price to the performance obligations in the contract on a relative basis using SSP rather than allocating under the residual method, which allocates the entire arrangement discount to the delivered performance obligations.

The net change in deferred income taxes of $3.2 million is primarily due to the deferred tax effects resulting from the adjustment to accumulated deficit for the cumulative effect of applying ASU No. 2014-09 to active contracts as of the adoption date.

We made certain presentation changes to our condensed consolidated balance sheet on February 1, 2018 to comply with ASU No. 2014-09. Prior to adoption of the new standard, we offset accounts receivable and contract liabilities (previously presented as deferred revenue on our consolidated balance sheet) for unpaid deferred performance obligations included in contract liabilities. Under the new standard, we record accounts receivable and related contract liabilities for noncancelable contracts with customers when the right to consideration is unconditional. Upon adoption, the right to consideration in exchange for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time were reclassified from accounts receivable to contract assets. In addition, we reclassified amounts related to billings in excess of costs and estimated earnings on uncompleted contracts, which under prior guidance was included in accrued expenses and other liabilities on our condensed consolidated balance sheet to contract liabilities upon adoption.

Impact of ASU No. 2014-09 on Financial Statement Line Items

The impact of adoption of ASU No. 2014-09 on our condensed consolidated balance sheet as of October 31, 2018 and on our condensed consolidated statement of operations for the three and nine months ended October 31, 2018 was as follows:



	As of October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Balance Sheet
Assets:
Accounts receivable, net	$	311,492	$	266,497	$	44,995
Contract assets	70,076		—		70,076
Deferred cost of revenue	9,651		11,170		(1,519		)
Prepaid expenses and other current assets	85,310		86,462		(1,152		)
Long-term deferred cost of revenue	4,283		1,214		3,069
Other assets	101,643		79,330		22,313

Liabilities:
Accrued expenses and other current liabilities	181,452		216,637		(35,185		)
Contract liabilities	306,240		207,199		99,041
Long-term contract liabilities	27,512		26,700		812
Other liabilities	120,158		119,236		922

Stockholders' Equity:
Total stockholders' equity	1,213,499		1,141,307		72,192

While the tables below indicate that calculated revenue for the three and nine months ended October 31, 2018 without the adoption of ASU No. 2014-09 would have been lower than the revenue we are reporting under the new accounting guidance, this lower calculated revenue results not only from the impact of the new accounting guidance, but also from changes we made to our business practices in anticipation and as a result of the new accounting guidance. These business practice changes adversely impact the calculation of revenue under the prior accounting guidance and include, among other things, the way we manage our professional services projects, offer and deploy our solutions, structure certain customer contracts, and make pricing decisions. While the many variables, required assumptions, and other complexities associated with these business practice changes make it impractical to precisely quantify the impact of these changes, we believe that calculated revenue under the prior accounting guidance, but absent these business practice changes, would have been closer to the revenue we are reporting under the new accounting guidance.



	Three Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	111,670	$	109,224	$	2,446
Service and support	192,313		192,849		(536		)

Cost of revenue:
Product	33,124		30,315		2,809
Service and support	72,182		72,847		(665		)

Expenses and Other:
Selling, general and administrative	99,902		102,463		(2,561		)
Provision (benefit) for income taxes	5,601		5,401		200
Net income	20,213		18,086		2,127



	Nine Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09			Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	327,576	$	300,116		$	27,460
Service and support	571,941		562,701			9,240

Cost of revenue:
Product	100,917		94,243			6,674
Service and support	218,842		219,319			(477		)

Expenses and Other:
Selling, general and administrative	311,482		319,481			(7,999		)
Provision (benefit) for income taxes	2,153		(1,647		)	3,800
Net income	41,912		7,210			34,702

The adoption of ASU No. 2014-09 had no impact to cash provided by or used in operating, investing, or financing activities on our condensed consolidated statement of cash flows.

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

9 Months Ended

Oct. 31, 2018

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

The following table summarizes the calculation of basic and diluted net income (loss) per common share attributable to Verint Systems Inc. for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands, except per share amounts)	2018		2017		2018		2017
Net income (loss)	$	20,213	$	3,066	$	41,912	$	(21,740	)
Net income attributable to noncontrolling interests	1,293		577		3,227		1,984
Net income (loss) attributable to Verint Systems Inc.	$	18,920	$	2,489	$	38,685	$	(23,724	)
Weighted-average shares outstanding:
Basic	65,122		63,759		64,690		63,152
Dilutive effect of employee equity award plans	1,078		829		1,195		—
Dilutive effect of 1.50% convertible senior notes	—		—		—		—
Dilutive effect of warrants	—		—		—		—
Diluted	66,200		64,588		65,885		63,152
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic	$	0.29	$	0.04	$	0.60	$	(0.38	)
Diluted	$	0.29	$	0.04	$	0.59	$	(0.38	)

We excluded the following weighted-average potential common shares from the calculations of diluted net income (loss) per common share during the applicable periods because their inclusion would have been anti-dilutive:



	Three Months Ended October 31,		Nine Months Ended October 31,
(in thousands)	2018	2017	2018	2017
Common shares excluded from calculation:
Stock options and restricted stock-based awards	546	600	432	1,205
1.50% convertible senior notes	6,205	6,205	6,205	6,205
Warrants	6,205	6,205	6,205	6,205

In periods for which we report a net loss attributable to Verint Systems Inc., basic net loss per common share and diluted net loss per common share are identical since the effect of all potential common shares is anti-dilutive and therefore excluded.

Our 1.50% convertible senior notes (“Notes”) will not impact the calculation of diluted net income per share unless the average price of our common stock, as calculated in accordance with the terms of the indenture governing the Notes, exceeds the conversion price of $64.46 per share. Likewise, diluted net income per share will not include any effect from the Warrants (as defined in Note 7, “Long-Term Debt”) unless the average price of our common stock, as calculated under the terms of the Warrants, exceeds the exercise price of $75.00 per share.

Our Note Hedges (as defined in Note 7, “Long-Term Debt”) do not impact the calculation of diluted net income per share under the treasury stock method, because their effect would be anti-dilutive. However, in the event of an actual conversion of any or all of the Notes, the common shares that would be delivered to us under the Note Hedges would neutralize the dilutive effect of the common shares that we would issue under the Notes. As a result, actual conversion of any or all of the Notes would not increase our outstanding common stock. Up to 6,205,000 common shares could be issued upon exercise of the Warrants. Further details regarding the Notes, Note Hedges, and the Warrants appear in Note 7, “Long-Term Debt”.

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

9 Months Ended

Oct. 31, 2018

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, Cash Equivalents and Short-term Investments

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

The following tables summarize our cash, cash equivalents, and short-term investments as of October 31, 2018 and January 31, 2018:



	October 31, 2018
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	297,540	$	—	$	—	$	297,540
Money market funds	52,640		—		—		52,640
Commercial paper	3,242		—		—		3,242
Total cash and cash equivalents	$	353,422	$	—	$	—	$	353,422

Short-term investments:
Bank time deposits	$	49,434	$	—	$	—	$	49,434
Total short-term investments	$	49,434	$	—	$	—	$	49,434



	January 31, 2018
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	337,756	$	—	$	—	$	337,756
Money market funds	186		—		—		186
Total cash and cash equivalents	$	337,942	$	—	$	—	$	337,942

Short-term investments:
Corporate debt securities (available-for-sale)	$	2,002	$	—	$	—	$	2,002
Bank time deposits	4,564		—		—		4,564
Total short-term investments	$	6,566	$	—	$	—	$	6,566

Bank time deposits which are reported within short-term investments consist of deposits held outside of the U.S. with maturities of greater than 90 days, or without specified maturity dates which we intend to hold for periods in excess of 90 days. All other bank deposits are included within cash and cash equivalents.

During the nine months ended October 31, 2018 and 2017, proceeds from maturities and sales of short-term investments were $10.6 million and $5.2 million, respectively.

BUSINESS COMBINATIONS

9 Months Ended

Oct. 31, 2018

Business Combinations [Abstract]

BUSINESS COMBINATIONS

Nine Months Ended October 31, 2018

During the nine months ended October 31, 2018, we completed one transaction which qualified as a business combination in our Customer Engagement segment, which was not material to our condensed consolidated financial statements.

Year Ended January 31, 2018

During the year ended January 31, 2018, we completed seven business combinations:


•	On February 1, March 20, October 3, November 3, December 19, and December 21, 2017, we completed acquisitions of businesses in our Customer Engagement operating segment. One of the transactions was an asset acquisition that qualified as a business combination, and in another, the sellers retained a noncontrolling interest.


•	On July 1, 2017, we completed the acquisition of a business in our Cyber Intelligence operating segment.

These business combinations were not individually material to our consolidated financial statements.

The combined consideration for these business combinations was approximately $134.8 million, including $106.0 million of combined cash paid at the closings. For five of these business combinations, we also agreed to make potential additional cash payments to the respective former shareholders aggregating up to approximately $47.3 million, contingent upon the achievement of certain performance targets over periods extending through January 2022. The fair value of these contingent consideration obligations was estimated to be $25.9 million at the applicable acquisition dates. Cash paid for these business combinations was funded by cash on hand.

The purchase prices for these business combinations were allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. The fair value assigned to identifiable intangible assets acquired were determined primarily by using the income approach, which discounts expected future cash flows to present value using estimates and assumptions determined by management.

Included among the factors contributing to the recognition of goodwill in these transactions were synergies in products and technologies, and the addition of skilled, assembled workforces. Of the $81.4 million of goodwill associated with these business combinations, $77.6 million and $3.8 million was assigned to our Customer Engagement and Cyber Intelligence segments, respectively. For income tax purposes, $14.5 million of this goodwill is deductible and $66.9 million is not deductible.

Transaction and related costs, consisting primarily of professional fees and integration expenses, directly related to these acquisitions, totaled $0.7 million and $2.0 million for the three months ended October 31, 2018 and 2017, respectively, and $2.4 million and $3.2 million for the nine months ended October 31, 2018 and 2017, respectively. All transaction and related costs were expensed as incurred and are included in selling, general and administrative expenses.

The purchase price allocations for those business combinations completed subsequent to October 31, 2017 have been prepared on a preliminary basis and changes to those allocations may occur as additional information becomes available during the respective measurement periods (up to one year from the respective acquisition dates). Fair values still under review include values assigned to identifiable intangible assets, deferred income taxes and reserves for uncertain income tax positions.

The following table sets forth the components and the allocations of the combined purchase prices for the business combinations completed during the year ended January 31, 2018, including adjustments identified subsequent to the respective valuation dates, none of which were material:



(in thousands)	Amount
Components of Purchase Prices:
Cash	$	106,049
Fair value of contingent consideration	25,874
Other purchase price adjustments	2,897
Total purchase prices	$	134,820

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	4,184
Other current assets, including cash acquired	15,108
Other assets	2,765
Current and other liabilities	(12,512		)
Deferred revenue - current and long-term	(4,424		)
Deferred income taxes	(8,550		)
Net tangible liabilities	(3,429		)
Identifiable intangible assets:
Customer relationships	24,812
Developed technology	29,614
Trademarks and trade names	2,456
Total identifiable intangible assets	56,882
Goodwill	81,367
Total purchase price allocations	$	134,820

For these acquisitions, customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives ranging from two years to ten years, from three years to five years, and from one year to seven years, respectively, the weighted average of which is approximately 6.3 years.

Other Business Combination Information

The acquisition date fair values of contingent consideration obligations associated with business combinations are estimated based on probability adjusted present values of the consideration expected to be transferred using significant inputs that are not observable in the market. Key assumptions used in these estimates include probability assessments with respect to the likelihood of achieving the performance targets and discount rates consistent with the level of risk of achievement. At each reporting date, we revalue the contingent consideration obligations to their fair values and record increases and decreases in fair value within selling, general and administrative expenses in our condensed consolidated statements of operations. Changes in the fair value of the contingent consideration obligations result from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets.

For the three months ended October 31, 2018 and 2017, we recorded a charge of $0.5 million and a benefit of $6.7 million, respectively, and for the nine months ended October 31, 2018 and 2017, we recorded benefits of $4.2 million and $3.8 million, respectively, within selling, general and administrative expenses for changes in the fair values of contingent consideration obligations associated with business combinations. The aggregate fair values of the remaining contingent consideration obligations associated with business combinations was $53.7 million at October 31, 2018, of which $25.2 million was recorded within accrued expenses and other current liabilities, and $28.5 million was recorded within other liabilities.

Payments of contingent consideration earned under these agreements were $1.6 million and $0.1 million for the three months ended October 31, 2018 and 2017, respectively, and $13.6 million and $9.4 million for the nine months ended October 31, 2018 and 2017, respectively.

INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31, 2018
(in thousands)	Cost		Accumulated Amortization			Net
Intangible assets, with finite lives:
Customer relationships	$	431,235	$	(292,419	)	$	138,816
Acquired technology	273,456		(225,886		)	47,570
Trade names	26,486		(20,761		)	5,725
Non-competition agreements	3,047		(2,972		)	75
Distribution network	4,440		(4,440		)	—
Total intangible assets	$	738,664	$	(546,478	)	$	192,186



	January 31, 2018
(in thousands)	Cost		Accumulated Amortization			Net
Intangible assets, with finite lives:
Customer relationships	$	438,664	$	(281,592	)	$	157,072
Acquired technology	273,156		(212,571		)	60,585
Trade names	26,820		(18,570		)	8,250
Non-competition agreements	3,047		(2,861		)	186
Distribution network	4,440		(4,440		)	—
Total intangible assets	$	746,127	$	(520,034	)	$	226,093

The following table presents net acquisition-related intangible assets by reportable segment as of October 31, 2018 and January 31, 2018:



	October 31,		January 31,
(in thousands)	2018		2018
Customer Engagement	$	186,549	$	213,963
Cyber Intelligence	5,637		12,130
Total	$	192,186	$	226,093

Total amortization expense recorded for acquisition-related intangible assets was $13.5 million and $16.2 million for the three months ended October 31, 2018 and 2017, respectively, and $41.6 million and $55.0 million for the nine months ended October 31, 2018 and 2017, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars.

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:



(in thousands)
Years Ending January 31,	Amount
2019 (remainder of year)	$	13,265
2020	44,390
2021	36,255
2022	32,370
2023	25,323
2024 and thereafter	40,583
Total	$	192,186

Goodwill activity for the nine months ended October 31, 2018, in total and by reportable segment, was as follows:



				Reportable Segment
(in thousands)	Total			Customer Engagement			Cyber Intelligence
Year Ended January 31, 2018:
Goodwill, gross, at January 31, 2018	$	1,455,164		$	1,307,136		$	148,028
Accumulated impairment losses through January 31, 2018	(66,865		)	(56,043		)	(10,822		)
Goodwill, net, at January 31, 2018	1,388,299			1,251,093			137,206
Business combinations, including adjustments to prior period acquisitions	14,526			14,526			—
Foreign currency translation and other	(38,373		)	(37,405		)	(968		)
Goodwill, net, at October 31, 2018	$	1,364,452		$	1,228,214		$	136,238

Balance at October 31, 2018:
Goodwill, gross, at October 31, 2018	$	1,431,317		$	1,284,257		$	147,060
Accumulated impairment losses through October 31, 2018	(66,865		)	(56,043		)	(10,822		)
Goodwill, net, at October 31, 2018	$	1,364,452		$	1,228,214		$	136,238

No events or circumstances indicating the potential for goodwill impairment were identified during the nine months ended October 31, 2018.

- 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

LONG-TERM DEBT

9 Months Ended

Oct. 31, 2018

Long-term Debt, Unclassified [Abstract]

LONG-TERM DEBT

The following table summarizes our long-term debt at October 31, 2018 and January 31, 2018:



	October 31,			January 31,
(in thousands)	2018			2018

1.50% Convertible Senior Notes	$	400,000		$	400,000
2017 Term Loan	419,688			422,875
Other debt	131			250
Less: Unamortized debt discounts and issuance costs	(40,095		)	(50,141		)
Total debt	779,724			772,984
Less: current maturities	4,382			4,500
Long-term debt	$	775,342		$	768,484

Current maturities of long-term debt are reported within accrued expenses and other current liabilities on our condensed consolidated balance sheet.

1.50% Convertible Senior Notes

On June 18, 2014, we issued $400.0 million in aggregate principal amount of 1.50% convertible senior notes due June 1, 2021 (“Notes”), unless earlier converted by the holders pursuant to their terms. Net proceeds from the Notes after underwriting discounts were $391.9 million. The Notes pay interest in cash semiannually in arrears at a rate of 1.50% per annum.

The Notes were issued concurrently with our public issuance of 5,750,000 shares of common stock, the majority of the combined net proceeds of which were used to partially repay certain indebtedness under our Prior Credit Agreement, as defined and further described below.

The Notes are unsecured and are convertible into, at our election, cash, shares of common stock, or a combination of both, subject to satisfaction of specified conditions and during specified periods. If converted, we currently intend to pay cash in respect of the principal amount of the Notes.

The Notes have a conversion rate of 15.5129 shares of common stock per $1,000 principal amount of Notes, which represents an effective conversion price of approximately $64.46 per share of common stock and would result in the issuance of approximately 6,205,000 shares if all of the Notes were converted. The conversion rate has not changed since issuance of the Notes, although throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events.

On or after December 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may surrender their Notes for conversion regardless of whether any of the other specified conditions for conversion have been satisfied.

As of October 31, 2018, the Notes were not convertible.

In accordance with accounting guidance for convertible debt with a cash conversion option, we separately accounted for the debt and equity components of the Notes in a manner that reflected our estimated nonconvertible debt borrowing rate. We estimated the debt and equity components of the Notes to be $319.9 million and $80.1 million, respectively, at the issuance date, assuming a 5.00% non-convertible borrowing rate. The equity component was recorded as an increase to additional paid-in capital. The excess of the principal amount of the debt component over its carrying amount (the “debt discount”) is being amortized as interest expense over the term of the Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.

We allocated transaction costs related to the issuance of the Notes, including underwriting discounts, of $7.6 million and $1.9 million to the debt and equity components, respectively. Issuance costs attributable to the debt component of the Notes are presented as a reduction of long-term debt and are being amortized as interest expense over the term of the Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. The carrying amount of the equity component, net of issuance costs, was $78.2 million at October 31, 2018.

As of October 31, 2018, the carrying value of the debt component was $363.6 million, which is net of unamortized debt discount and issuance costs of $33.2 million and $3.1 million, respectively. Including the impact of the debt discount and related deferred debt issuance costs, the effective interest rate on the Notes was approximately 5.29% at October 31, 2018.

Based on the closing market price of our common stock on October 31, 2018, the if-converted value of the Notes was less than the aggregate principal amount of the Notes.

Note Hedges and Warrants

Concurrently with the issuance of the Notes, we entered into convertible note hedge transactions (the “Note Hedges”) and sold warrants (the “Warrants”). The combination of the Note Hedges and the Warrants serves to increase the effective initial conversion price for the Notes to $75.00 per share. The Note Hedges and Warrants are each separate instruments from the Notes.

Note Hedges

Pursuant to the Note Hedges, we purchased call options on our common stock, under which we have the right to acquire from the counterparties up to approximately 6,205,000 shares of our common stock, subject to customary anti-dilution adjustments, at a price of $64.46, which equals the initial conversion price of the Notes. Our exercise rights under the Note Hedges generally trigger upon conversion of the Notes and the Note Hedges terminate upon maturity of the Notes, or the first day the Notes are no longer outstanding. The Note Hedges may be settled in cash, shares of our common stock, or a combination thereof, at our option, and are intended to reduce our exposure to potential dilution upon conversion of the Notes. We paid $60.8 million for the Note Hedges, which was recorded as a reduction to additional paid-in capital. As of October 31, 2018, we had not purchased any shares of our common stock under the Note Hedges.

Warrants

We sold the Warrants to several counterparties. The Warrants provide the counterparties rights to acquire from us up to approximately 6,205,000 shares of our common stock at a price of $75.00 per share. The Warrants expire incrementally on a series of expiration dates beginning in August 2021. At expiration, if the market price per share of our common stock exceeds the strike price of the Warrants, we will be obligated to issue shares of our common stock having a value equal to such excess. The Warrants could have a dilutive effect on net income per share to the extent that the market value of our common stock exceeds the strike price of the Warrants. Proceeds from the sale of the Warrants were $45.2 million and were recorded as additional paid-in capital. As of October 31, 2018, no Warrants had been exercised and all Warrants remained outstanding.

The Note Hedges and Warrants both meet the requirements for classification within stockholders’ equity, and their respective fair values are not remeasured and adjusted as long as these instruments continue to qualify for stockholders’ equity classification.

Credit Agreements

Prior Credit Agreement

In April 2011, we entered into a credit agreement with certain lenders, which was amended and restated in March 2013, and further amended in February, March, and June 2014 (as amended, the “Prior Credit Agreement”). The Prior Credit Agreement provided for senior secured credit facilities, comprised of $943.5 million of term loans, of which $300.0 million was borrowed in February 2014 and $643.5 million was borrowed in March 2014 (together, the “2014 Term Loans”), the outstanding portion of which was scheduled to mature in September 2019, and a $300.0 million revolving credit facility (the “Prior Revolving Credit Facility”), scheduled to mature in September 2018, subject to increase and reduction from time to time, in accordance with the terms of the Prior Credit Agreement.

In June 2014, we utilized the majority of the combined net proceeds from the issuance of the Notes and the concurrent issuance of 5,750,000 shares of common stock to retire $530.0 million of the 2014 Term Loans and all $106.0 million of then-outstanding borrowings under the Prior Revolving Credit Facility.

The 2014 Term Loans incurred interest at our option at either a base rate plus a margin of 1.75% or an Adjusted LIBOR Rate, as defined in the Prior Credit Agreement, plus a margin of 2.75%.

2017 Credit Agreement

On June 29, 2017, we entered into a new credit agreement (the “2017 Credit Agreement”) with certain lenders and terminated the Prior Credit Agreement.

The 2017 Credit Agreement provides for $725.0 million of senior secured credit facilities, comprised of a $425.0 million term loan maturing on June 29, 2024 (the “2017 Term Loan”) and a $300.0 million revolving credit facility maturing on June 29, 2022 (the “2017 Revolving Credit Facility”), subject to increase and reduction from time to time according to the terms of the 2017 Credit Agreement. The maturity dates of the 2017 Term Loan and 2017 Revolving Credit Facility will be accelerated to March 1, 2021 if on such date any Notes remain outstanding.

The majority of the proceeds from the 2017 Term Loan were used to repay all $406.9 million that remained outstanding under the 2014 Term Loans at June 29, 2017 upon termination of the Prior Credit Agreement. There were no borrowings under the Prior Revolving Credit Facility at June 29, 2017.

The 2017 Term Loan was subject to an original issuance discount of approximately $0.5 million. This discount is being amortized as interest expense over the term of the 2017 Term Loan using the effective interest method.

Interest rates on loans under the 2017 Credit Agreement are periodically reset, at our option, at either a Eurodollar Rate or an ABR rate (each as defined in the 2017 Credit Agreement), plus in each case a margin.

On January 31, 2018, we entered into an amendment to the 2017 Credit Agreement (the “2018 Amendment”) providing for, among other things, a reduction of the interest rate margins on the 2017 Term Loan from 2.25% to 2.00% for Eurodollar loans, and from 1.25% to 1.00% for ABR loans. The vast majority of the impact of the 2018 Amendment was accounted for as a debt modification. For the portion of the 2017 Term Loan which was considered extinguished and replaced by new loans, we wrote off $0.2 million of unamortized deferred debt issuance costs as a loss on early retirement of debt during the three months ended January 31, 2018. The remaining unamortized deferred debt issuance costs and discount are being amortized over the remaining term of the 2017 Term Loan.

For loans under the 2017 Revolving Credit Facility, the margin is determined by reference to our Consolidated Total Debt to Consolidated EBITDA (each as defined in the 2017 Credit Agreement) leverage ratio (the “Leverage Ratio”).

As of October 31, 2018, the interest rate on the 2017 Term Loan was 4.27%. Taking into account the impact of the original issuance discount and related deferred debt issuance costs, the effective interest rate on the 2017 Term Loan was approximately 4.45% at October 31, 2018. As of January 31, 2018 the interest rate on 2017 Term Loan was 3.58%.

We are required to pay a commitment fee with respect to unused availability under the 2017 Revolving Credit Facility at a rate per annum determined by reference to our Leverage Ratio.

The 2017 Term Loan requires quarterly principal payments of approximately $1.1 million, which commenced on August 1, 2017, with the remaining balance due on June 29, 2024. Optional prepayments of loans under the 2017 Credit Agreement are generally permitted without premium or penalty.

Our obligations under the 2017 Credit Agreement are guaranteed by each of our direct and indirect existing and future material domestic wholly owned restricted subsidiaries, and are secured by a security interest in substantially all of our assets and the assets of the guarantor subsidiaries, subject to certain exceptions.

The 2017 Credit Agreement contains certain customary affirmative and negative covenants for credit facilities of this type. The 2017 Credit Agreement also contains a financial covenant that, solely with respect to the 2017 Revolving Credit Facility, requires us to maintain a Leverage Ratio of no greater than 4.50 to 1. The limitations imposed by the covenants are subject to certain exceptions as detailed in the 2017 Credit Agreement.

The 2017 Credit Agreement provides for events of default with corresponding grace periods that we believe are customary for credit facilities of this type. Upon an event of default, all of our obligations owed under the 2017 Credit Agreement may be declared immediately due and payable, and the lenders’ commitments to make loans under the 2017 Credit Agreement may be terminated.

2017 Credit Agreement Issuance Costs

We incurred debt issuance costs of approximately $6.8 million in connection with the 2017 Credit Agreement, of which $4.1 million were associated with the 2017 Term Loan, and $2.7 million were associated with the 2017 Revolving Credit Facility, which were deferred and are being amortized as interest expense over the terms of the facilities under the 2017 Credit Agreement. As noted previously, during the three months ended January 31, 2018, we wrote off $0.2 million of deferred debt issuance costs associated with the 2017 Term Loan as a result of the 2018 Amendment. Deferred debt issuance costs associated with the 2017 Term Loan are being amortized using the effective interest rate method, and deferred debt issuance costs associated with the 2017 Revolving Credit Facility are being amortized on a straight-line basis.

Future Principal Payments on Term Loan

As of October 31, 2018, future scheduled principal payments on the 2017 Term Loan were as follows:



(in thousands)
Years Ending January 31,	Amount
2019 (remainder of year)	$	1,063
2020	4,250
2021	4,250
2022	4,250
2023	4,250
2024 and thereafter	401,625
Total	$	419,688

Interest Expense

The following table presents the components of interest expense incurred on the Notes and on borrowings under our credit agreements for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2018		2017		2018		2017
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	1,500	$	1,500	$	4,500	$	4,500
Amortization of debt discount	2,982		2,829		8,829		8,377
Amortization of deferred debt issuance costs	281		267		833		790
Total Interest Expense - 1.50% Convertible Senior Notes	$	4,763	$	4,596	$	14,162	$	13,667

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	4,448	$	3,858	$	13,047	$	11,493
Impact of interest rate swap agreement	—		—		—		254
Amortization of debt discounts	17		17		50		48
Amortization of deferred debt issuance costs	392		396		1,162		1,451
Total Interest Expense - Borrowings under Credit Agreements	$	4,857	$	4,271	$	14,259	$	13,246

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION

9 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Condensed Consolidated Balance Sheets

Inventories consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31,		January 31,
(in thousands)	2018		2018
Raw materials	$	9,517	$	9,870
Work-in-process	6,018		6,269
Finished goods	6,202		3,732
Total inventories	$	21,737	$	19,871

Condensed Consolidated Statements of Operations

Other (expense) income, net consisted of the following for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017
Foreign currency (losses) gains, net	$	(1,458	)	$	(1,474	)	$	(5,372	)	$	2,384
Gains on derivative financial instruments, net	1,051			834			3,760			292
Other, net	(82		)	75			(582		)	(147		)
Total other (expense) income, net	$	(489	)	$	(565	)	$	(2,194	)	$	2,529

Condensed Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018		2017
Cash paid for interest	$	14,736	$	13,618
Cash payments of income taxes, net	$	22,324	$	18,344
Non-cash investing and financing transactions:
Accrued but unpaid purchases of property and equipment	$	4,443	$	3,487
Inventory transfers to property and equipment	$	1,334	$	1,265
Liabilities for contingent consideration in business combinations, including measurement period adjustments	$	8,969	$	9,100
Capital leases of property and equipment	$	473	$	1,929

STOCKHOLDERS' EQUITY

9 Months Ended

Oct. 31, 2018

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Dividends on Common Stock

We did not declare or pay any dividends on our common stock during the nine months ended October 31, 2018 and 2017. Under the terms of our 2017 Credit Agreement, we are subject to certain restrictions on declaring and paying dividends on our common stock.

Share Repurchase Program

On March 29, 2016, we announced that our board of directors had authorized a common stock repurchase program of up to $150.0 million over two years. This program expired on March 29, 2018. We made a total of $46.9 million in repurchases under the program.

Treasury Stock

Repurchased shares of common stock are recorded as treasury stock, at cost, but may from time to time be retired. We periodically purchase treasury stock from directors, officers, and other employees to facilitate income tax withholding by us or the payment of required income taxes by such holders in connection with the vesting of equity awards.

During the nine months ended October 31, 2018, we acquired approximately 4,000 shares of treasury stock for a cost of $0.2 million. During the nine months ended October 31, 2017, we received approximately 7,000 shares of stock in a nonmonetary transaction valued at $0.3 million.

At October 31, 2018, we held approximately 1,665,000 shares of treasury stock with a cost of $57.6 million. At January 31, 2018, we held approximately 1,661,000 shares of treasury stock with a cost of $57.4 million.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) includes items such as foreign currency translation adjustments and unrealized gains and losses on certain marketable securities and derivative financial instruments designated as hedges. Accumulated other comprehensive income (loss) is presented as a separate line item in the stockholders’ equity section of our condensed consolidated balance sheets. Accumulated other comprehensive income (loss) items have no impact on our net income (loss) as presented in our condensed consolidated statements of operations.

The following table summarizes changes in the components of our accumulated other comprehensive income (loss) by component for the nine months ended October 31, 2018:



(in thousands)	Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges			Unrealized Gain on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments			Total
Accumulated other comprehensive income (loss) at January 31, 2018	$	3,312		$	—	$	(106,772	)	$	(103,460	)
Other comprehensive (loss) income before reclassifications	(9,452		)	1,878		(45,190		)	(52,764		)
Losses reclassified out of accumulated other comprehensive (loss) income	(2,076		)	—		—			(2,076		)
Net other comprehensive (loss) income, current period	(7,376		)	1,878		(45,190		)	(50,688		)
Accumulated other comprehensive (loss) income at October 31, 2018	$	(4,064	)	$	1,878	$	(151,962	)	$	(154,148	)

All amounts presented in the table above are net of income taxes, if applicable. The accumulated net losses in foreign currency translation adjustments primarily reflect the strengthening of the U.S. dollar against the British pound sterling, which has resulted in lower U.S. dollar-translated balances of British pound sterling-denominated goodwill and intangible assets.

The amounts reclassified out of accumulated other comprehensive income (loss) into the condensed consolidated statement of operations, with presentation location, for the three and nine months ended October 31, 2018 and 2017 were as follows:



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017			Location
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(108	)	$	141		$	(196	)	$	407		Cost of product revenue
	(120		)	145			(214		)	378			Cost of service and support revenue
	(676		)	825			(1,168		)	2,339			Research and development, net
	(424		)	461			(730		)	1,322			Selling, general and administrative
	(1,328		)	1,572			(2,308		)	4,446			Total, before income taxes
	134			(252		)	232			(539		)	Benefit (provision) for income taxes
	$	(1,194	)	$	1,320		$	(2,076	)	$	3,907		Total, net of income taxes

Interest rate swap agreement	$	—		$	—		$	—		$	(254	)	Interest expense
	—			—			—			934			Other income (expense), net
	—			—			—			680			Total, before income taxes
	—			—			—			(389		)	Provision for income taxes
	$	—		$	—		$	—		$	291		Total, net of income taxes

INCOME TAXES	9 Months Ended
INCOME TAXES	Oct. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	Our interim provision (benefit) for income taxes is measured using an estimated annual effective income tax rate, adjusted for discrete items that occur within the periods presented. On December 22, 2017, the Tax Cuts and Jobs Acts (“2017 Tax Act”) was enacted in the United States. The 2017 Tax Act significantly revises the Internal Revenue Code of 1986, as amended, and it includes fundamental changes to taxation of U.S. multinational corporations. The key provisions impacting our January 31, 2019 year include a reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, new limitations on the tax deductions for interest expense and executive compensation, elimination of the alternative minimum tax (AMT) and the ability to refund unused AMT credits over a four-year period, and new rules related to uses and limitations of net operating loss carryforwards. New international provisions add a new category of deemed income from our foreign operations, eliminate U.S. tax on foreign dividends (subject to certain restrictions), and add a minimum tax on certain payments made to foreign related parties. Our estimated annual effective tax rate for the three and nine months ended October 31, 2018 includes provisional amounts for certain 2017 Tax Act provisions related to our foreign operations. We expect to utilize a portion of our net operating loss carryforward and release the valuation allowance on the deferred tax asset for that net operating loss carryforward for a net impact of $0. Compliance with the 2017 Tax Act will require significant complex computations not previously required by U.S. tax law. It is unclear how certain provisions of the 2017 Tax Act will be applied absent further legislative, regulatory, or accounting clarification and guidance. Also, on December 22, 2017, the staff of the SEC issued Staff Accounting Bulletin No. 118 (“SAB No. 118”). SAB No. 118 provides guidance on accounting for the tax effects of the 2017 Tax Act and allows registrants to record provisional amounts for a period of up to one year from the date of enactment of the 2017 Tax Act. We considered amounts related to the 2017 Tax Act to be reasonably estimated as of January 31, 2018 and, as of October 31, 2018, we did not have any significant adjustments to provisional amounts recorded as of January 31, 2018. We expect to refine and complete the accounting for the 2017 Tax Act during the year ending January 31, 2019 as we obtain, prepare, and analyze additional information and as additional legislative, regulatory, and accounting guidance and interpretations become available. For the three months ended October 31, 2018, we recorded an income tax provision of $5.6 million on pre-tax income of $25.8 million, which represented an effective income tax rate of 21.7%. We maintain valuation allowances on our net U.S. deferred income tax assets related to federal and certain state jurisdictions. The income tax provision does not include income tax benefits on losses incurred by certain domestic and foreign operations where we maintain valuation allowances. Our pre-tax losses in domestic and foreign jurisdictions where we maintain valuation allowances and do not record tax benefits were significantly less than the pre-tax income in jurisdictions where we record tax provisions. For the three months ended October 31, 2017, we recorded an income tax provision of $5.9 million on pre-tax income of $9.0 million, which represented an effective income tax rate of 66.0%. The income tax provision does not include income tax benefits on losses incurred by certain domestic and foreign operations where we maintain valuation allowances. Our pre-tax income in profitable jurisdictions, where we record income tax provisions, was higher than the pre-tax losses in domestic and foreign jurisdictions where we maintain valuation allowances and do not record tax benefits. For the nine months ended October 31, 2018, we recorded an income tax provision of $2.2 million on pre-tax income of $44.1 million, which represented an effective income tax rate of 4.9%. In connection with an acquisition in our Customer Engagement segment completed in our second quarter we recorded deferred income tax liabilities primarily attributable to acquired intangible assets to the extent the amortization will not be deductible for income tax purposes. Under accounting guidelines, because the amortization of the intangible assets in future periods provides a source of taxable income, we expect to realize a portion of our existing deferred income tax assets. As such, we reduced the valuation allowance recorded on our deferred income tax assets to the extent of the deferred income tax liabilities recorded. Because the valuation allowance related to existing Verint deferred income tax assets, the impact of the release was reflected as a discrete income tax benefit of $7.3 million and not as a component of the acquisition accounting. The income tax provision does not include income tax benefits on losses incurred by certain domestic and foreign operations where we maintain valuation allowances. Our pre-tax losses in domestic and foreign jurisdictions where we maintain valuation allowances and do not record tax benefits were significantly less than the pre-tax income in jurisdictions where we record tax provisions. For the nine months ended October 31, 2017, we recorded an income tax provision of $9.5 million on a pre-tax loss of $12.2 million, which represented a negative effective income tax rate of 77.7%. The income tax provision does not include income tax benefits on losses incurred by certain domestic and foreign operations where we maintain valuation allowances. Our pre-tax income in profitable jurisdictions, where we record income tax provisions, was lower than the pre-tax losses in domestic and foreign jurisdictions where we maintain valuation allowances and do not record income tax benefits. As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred income tax assets on a jurisdictional basis at each reporting date. Accounting guidance for income taxes requires that a valuation allowance be established when it is more-likely-than-not that all or a portion of the deferred income tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred income tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We determined that there is sufficient negative evidence to maintain the valuation allowances against our federal and certain state and foreign deferred income tax assets as a result of historical losses in the most recent three-year period in the U.S. and in certain foreign jurisdictions. We intend to maintain valuation allowances until sufficient positive evidence exists to support a reversal. We had unrecognized income tax benefits of $114.9 million and $115.7 million (excluding interest and penalties) as of October 31, 2018 and January 31, 2018, respectively. The accrued liability for interest and penalties was $5.6 million at October 31, 2018 and January 31, 2018, respectively. Interest and penalties are recorded as a component of the provision for income taxes in our condensed consolidated statements of operations. As of October 31, 2018 and January 31, 2018, the total amount of unrecognized income tax benefits that, if recognized, would impact our effective income tax rate were approximately $108.3 million and $105.4 million, respectively. We regularly assess the adequacy of our provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As a result, we may adjust the reserves for unrecognized income tax benefits for the impact of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities, and lapses of statutes of limitation. Further, we believe that it is reasonably possible that the total amount of unrecognized income tax benefits at October 31, 2018 could decrease by approximately $4.2 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional income taxes, the adjustment of deferred income taxes including the need for additional valuation allowances, and the recognition of income tax benefits. Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. We also believe that it is reasonably possible that new issues may be raised by tax authorities or developments in tax audits may occur which would require increases or decreases to the balance of reserves for unrecognized income tax benefits; however, an estimate of such changes cannot reasonably be made.

FAIR VALUE MEASUREMENTS

9 Months Ended

Oct. 31, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31, 2018
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	52,640	$	—	$	—
Commercial paper	3,242		—		—
Foreign currency forward contracts	—		1,401		—
Interest rate swap agreements	—		4,747		—
Total assets	$	55,882	$	6,148	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	4,518	$	—
Contingent consideration - business combinations	—		—		53,674
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,000
Total liabilities	$	—	$	4,518	$	56,674



	January 31, 2018
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	186	$	—	$	—
Short-term investments, classified as available-for-sale	—		2,002		—
Foreign currency forward contracts	—		3,682		—
Interest rate swap agreement	—		2,580		—
Total assets	$	186	$	8,264	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	1,308	$	—
Contingent consideration - business combinations	—		—		62,829
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		2,950
Total liabilities	$	—	$	1,308	$	65,779

The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018			2017
Fair value measurement at beginning of period	$	62,829		$	52,733
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	8,969			9,100
Changes in fair values, recorded in operating expenses	(4,184		)	(3,769		)
Payments of contingent consideration	(13,600		)	(9,412		)
Foreign currency translation and other	(340		)	—
Fair value measurement at end of period	$	53,674		$	48,652

Our estimated liability for contingent consideration represents potential payments of additional consideration for business combinations, payable if certain defined performance goals are achieved. Changes in fair value of contingent consideration are recorded in the condensed consolidated statements of operations within selling, general and administrative expenses.

During the year ended January 31, 2017, we acquired two majority owned subsidiaries for which we hold an option to acquire the noncontrolling interests. We account for the option as an in-substance investment in the noncontrolling common stock of each such subsidiary. We include the fair value of the option within other liabilities and do not recognize noncontrolling interests in these subsidiaries. The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018		2017
Fair value measurement at beginning of period	$	2,950	$	3,550
Change in fair value, recorded in operating expenses	50		(450		)
Fair value measurement at end of period	$	3,000	$	3,100

There were no transfers between levels of the fair value measurement hierarchy during the nine months ended October 31, 2018 and 2017.

Fair Value Measurements

Money Market Funds - We value our money market funds using quoted active market prices for such funds.

Short-term Investments, Corporate Debt Securities, and Commercial Paper - The fair values of short-term investments, as well as corporate debt securities and commercial paper classified as cash equivalents, are estimated using observable market prices for identical securities that are traded in less-active markets, if available. When observable market prices for identical securities are not available, we value these short-term investments using non-binding market price quotes from brokers which we review for reasonableness using observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model.

Foreign Currency Forward Contracts - The estimated fair value of foreign currency forward contracts is based on quotes received from the counterparties thereto. These quotes are reviewed for reasonableness by discounting the future estimated cash flows under the contracts, considering the terms and maturities of the contracts and market foreign currency exchange rates using readily observable market prices for similar contracts.

Interest Rate Swap Agreements - The fair value of our interest rate swap agreements are based in part on data received from the counterparty, and represents the estimated amount we would receive or pay to settle the agreements, taking into consideration current and projected future interest rates as well as the creditworthiness of the parties, all of which can be validated through readily observable data from external sources.

Contingent Consideration - Business Combinations - The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. We remeasure the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within selling, general, and administrative expenses. Increases or decreases in discount rates would have inverse impacts on the related fair value measurements, while favorable or unfavorable changes in expectations of achieving performance targets would result in corresponding increases or decreases in the related fair value measurements. We utilized discount rates ranging from 3.0% to 6.0% in our calculations of the estimated fair values of our contingent consideration liabilities as of October 31, 2018. We utilized discount rates ranging from 3.0% to 5.0% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2018.

Option to Acquire Noncontrolling Interests of Consolidated Subsidiaries - The fair value of the option is determined primarily by using the income approach, which discounts expected future cash flows to present value using estimates and assumptions determined by management. This fair value measurement is based upon significant inputs not observable in the market. We remeasure the fair value of the option at each reporting period, and any changes in fair value are recorded within selling, general, and administrative expenses. We utilized discount rates of 13.0% and 13.5% in our calculation of the estimated fair value of the option as of October 31, 2018 and January 31, 2018, respectively.

Other Financial Instruments

The carrying amounts of accounts receivable, contract assets, accounts payable, and accrued liabilities and other current liabilities approximate fair value due to their short maturities.

The estimated fair values of our term loan borrowings were $421 million and $425 million at October 31, 2018 and January 31, 2018. The estimated fair values of the term loans are based upon indicative bid and ask prices as determined by the agent responsible for the syndication of our term loans. We consider these inputs to be within Level 3 of the fair value hierarchy because we cannot reasonably observe activity in the limited market in which participations in our term loans are traded. The indicative prices provided to us as at each of October 31, 2018 and January 31, 2018 did not significantly differ from par value. The estimated fair value of our revolving credit borrowings, if any, is based upon indicative market values provided by one of our lenders. We had no revolving credit borrowings at October 31, 2018 and January 31, 2018.

The estimated fair values of our Notes were approximately $398 million and $389 million at October 31, 2018 and January 31, 2018, respectively. The estimated fair values of the Notes are determined based on quoted bid and ask prices in the over-the-counter market in which the Notes trade. We consider these inputs to be within Level 2 of the fair value hierarchy.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Oct. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Our primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk, when deemed appropriate. We enter into these contracts in the normal course of business to mitigate risks and not for speculative purposes.

Foreign Currency Forward Contracts

Under our risk management strategy, we periodically use foreign currency forward contracts to manage our short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. These cash flow exposures result from portions of our forecasted operating expenses, primarily compensation and related expenses, which are transacted in currencies other than the U.S. dollar, most notably the Israeli shekel. We also periodically utilize foreign currency forward contracts to manage exposures resulting from forecasted customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. These foreign currency forward contracts generally have maturities of no longer than twelve months, although occasionally we will execute a contract that extends beyond twelve months, depending upon the nature of the underlying risk.

We held outstanding foreign currency forward contracts with notional amounts of $113.1 million and $153.5 million as of October 31, 2018 and January 31, 2018, respectively.

Interest Rate Swap Agreements

To partially mitigate risks associated with the variable interest rates on the term loan borrowings under the Prior Credit Agreement, in February 2016 we executed a pay-fixed, receive-variable interest rate swap agreement with a multinational financial institution under which we pay interest at a fixed rate of 4.143% and receive variable interest of three-month LIBOR (subject to a minimum of 0.75%), plus a spread of 2.75%, on a notional amount of $200.0 million (the “2016 Swap”). Although the Prior Credit Agreement was terminated on June 29, 2017, the 2016 Swap agreement remains in effect, and serves as an economic hedge to partially mitigate the risk of higher borrowing costs under our 2017 Credit Agreement resulting from increases in market interest rates. Settlements with the counterparty under the 2016 Swap occur quarterly, and the 2016 Swap will terminate on September 6, 2019.

Prior to June 29, 2017, the 2016 Swap was designated as a cash flow hedge for accounting purposes. On June 29, 2017, concurrent with the execution of the 2017 Credit Agreement and termination of the Prior Credit Agreement, the 2016 Swap was no longer designated as a cash flow hedge for accounting purposes and, because occurrence of the specific forecasted variable cash flows which had been hedged by the 2016 Swap agreement was no longer probable, the $0.9 million fair value of the 2016 Swap at that date was reclassified from accumulated other comprehensive income (loss) into the condensed consolidated statement of operations as income within other income (expense), net. Ongoing changes in the fair value of the 2016 Swap agreement are now recognized within other income (expense), net in the condensed consolidated statement of operations.

In April 2018, we executed a pay-fixed, receive-variable interest rate swap agreement with a multinational financial institution to partially mitigate risks associated with the variable interest rate on our 2017 Term Loan for periods following the termination of the 2016 Swap in September 2019, under which we will pay interest at a fixed rate of 2.949% and receive variable interest of three-month LIBOR (subject to a minimum of 0.00%), on a notional amount of $200.0 million (the “2018 Swap”). The effective date of the 2018 Swap is September 6, 2019, and settlements with the counterparty will occur on a quarterly basis, beginning on November 1, 2019. The 2018 Swap will terminate on June 29, 2024.

During the operating term of the 2018 Swap, if we elect three-month LIBOR at the periodic interest rate reset dates for at least $200.0 million of our 2017 Term Loan, the annual interest rate on that amount of the 2017 Term Loan will be fixed at 4.949% (including the impact of our current 2.00% interest rate margin on Eurodollar loans) for the applicable interest rate period.

The 2018 Swap is designated as a cash flow hedge and as such, changes in its fair value are recognized in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet and are reclassified into the condensed statement of operations within interest expense in the periods in which the hedged transactions affect earnings.

Fair Values of Derivative Financial Instruments

The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of October 31, 2018 and January 31, 2018 were as follows:



		Fair Value at
		October 31,		January 31,
(in thousands)	Balance Sheet Classification	2018		2018
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	—	$	3,682
Not designated as hedging instruments	Prepaid expenses and other current assets	1,401		—
Interest rate swap agreements:
Designated as cash flow hedge	Other assets	1,878		—
Not designated as hedging instrument	Prepaid expenses and other current assets	2,869		1,330
	Other assets	—		1,250
Total derivative assets		$	6,148	$	6,262

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	4,518	$	—
Not designated as hedging instruments	Accrued expenses and other current liabilities	—		1,061
	Other liabilities	—		247
Total derivative liabilities		$	4,518	$	1,308

Derivative Financial Instruments in Cash Flow Hedging Relationships

The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive loss (“AOCL”) and on the condensed consolidated statements of operations for the three and nine months ended October 31, 2018 and 2017 were as follows:



	Three Months Ended October 31,					Nine Months Ended October 31,
(in thousands)	2018			2017		2018			2017
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(1,591	)	$	743	$	(10,507	)	$	6,329
Interest rate swap agreement	1,266			—		1,878			(341		)
	$	(325	)	$	743	$	(8,629	)	$	5,988

Net (losses) gains reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	(1,328	)	$	1,572	$	(2,308	)	$	4,446
Interest rate swap agreement	—			—		—			(254		)
	$	(1,328	)	$	1,572	$	(2,308	)	$	4,192

For information regarding the line item locations of the net gains reclassified out of AOCL into the condensed consolidated condensed statements of operations, see Note 9, “Stockholders’ Equity”.

There were no gains or losses from ineffectiveness of these cash flow hedges recorded for the nine months ended October 31, 2017. Effective with our February 1, 2018 adoption of ASU No. 2017-12, ineffectiveness of cash flow hedges is no longer recognized. All of the foreign currency forward contracts underlying the $4.1 million of net unrealized losses recorded in our accumulated other comprehensive loss at October 31, 2018 mature within twelve months, and therefore we expect all such losses to be reclassified into earnings within the next twelve months.

Derivative Financial Instruments Not Designated as Hedging Instruments

Gains (losses) recognized on derivative financial instruments not designated as hedging instruments in our condensed consolidated statements of operations for the three and nine months ended October 31, 2018 and 2017 were as follows:



	Classification in Condensed Consolidated Statements of Operations	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)		2018		2017		2018		2017
Foreign currency forward contracts	Other income (expense), net	$	930	$	257	$	2,828	$	(1,025	)
Interest rate swap agreements	Other income (expense), net	121		577		932		1,317
		$	1,051	$	834	$	3,760	$	292

STOCK-BASED COMPENSATION

9 Months Ended

Oct. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Amended and Restated Stock-Based Compensation Plan

On June 22, 2017, our stockholders approved the Verint Systems Inc. Amended and Restated 2015 Long-Term Stock Incentive Plan (the “2017 Amended Plan”), which amended and restated the Verint Systems Inc. 2015 Long-Term Stock Incentive Plan (the “2015 Plan”). As with the 2015 Plan, the 2017 Amended Plan authorizes our board of directors to provide equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, other stock-based awards, and performance compensation awards.

The 2017 Amended Plan amended and restated the 2015 Plan to, among other things, increase the number of shares available for issuance thereunder. Subject to adjustment as provided in the 2017 Amended Plan, up to an aggregate of (i) 7,975,000 shares of our common stock (on an option-equivalent basis), plus (ii) the number of shares of our common stock available for issuance under the 2015 Plan as of June 22, 2017, plus (iii) the number of shares of our common stock that become available for issuance as a result of awards made under the 2015 Plan or the 2017 Amended Plan that are forfeited, cancelled, exchanged, withheld or surrendered or terminate or expire, may be issued or transferred in connection with awards under the 2017 Amended Plan. Each stock option or stock-settled stock appreciation right granted under the 2017 Amended Plan will reduce the available plan capacity by one share and each other award will reduce the available plan capacity by 2.47 shares.

The 2017 Amended Plan expires on June 22, 2027.

Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2018		2017		2018		2017
Cost of revenue - product	$	410	$	384	$	915	$	1,090
Cost of revenue - service and support	957		1,813		3,243		4,778
Research and development, net	2,746		3,181		7,294		9,322
Selling, general and administrative	12,482		10,588		39,057		35,263
Total stock-based compensation expense	$	16,595	$	15,966	$	50,509	$	50,453

The following table summarizes stock-based compensation expense by type of award for the three and nine months ended October 31, 2018, and 2017:



	Three Months Ended October 31,					Nine Months Ended October 31,
(in thousands)	2018		2017			2018		2017
Restricted stock units and restricted stock awards	$	14,187	$	14,201		$	44,179	$	42,951
Stock bonus program and bonus share program	2,394		1,840			6,273		7,446
Total equity-settled awards	16,581		16,041			50,452		50,397
Phantom stock units (cash-settled awards)	14		(75		)	57		56
Total stock-based compensation expense	$	16,595	$	15,966		$	50,509	$	50,453

Awards under our stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of our common stock.

Restricted Stock Units

We periodically award restricted stock units (“RSUs”) to our directors, officers, and other employees. These awards contain various vesting conditions and are subject to certain restrictions and forfeiture provisions prior to vesting. Some of these awards to executive officers and certain employees vest upon the achievement of specified performance goals or market conditions (performance stock units or “PSUs”).

The following table (“Award Activity Table”) summarizes activity for RSUs, PSUs, and other stock awards that reduce available Plan capacity under the Plans for the nine months ended October 31, 2018:



(in thousands, except per share data)	Shares or Units		Weighted-Average Grant Date Fair Value
Outstanding, January 31, 2018	2,808		$	41.18
Granted	1,710		$	43.11
Released	(1,440	)	$	43.88
Forfeited	(222	)	$	40.98
Outstanding, October 31, 2018	2,856		$	41.03

With respect to our stock bonus program, activity presented in the table above only includes shares earned and released in consideration of the discount provided under that program. Consistent with the provisions of the Plans under which such shares are issued, other shares issued under the stock bonus program are not included in the table above because they do not reduce available plan capacity (since such shares are deemed to be purchased by the grantee at fair value in lieu of receiving an earned cash bonus). Activity presented in the table above includes all shares awarded and released under the bonus share program. Further details appear below under “Stock Bonus Program” and “Bonus Share Program”.

Our RSU awards may include a provision which allows the awards to be settled with cash payments upon vesting, rather than with delivery of common stock, at the discretion of our board of directors. As of October 31, 2018, for such awards that are outstanding, settlement with cash payments was not considered probable, and therefore these awards have been accounted for as equity-classified awards and are included in the table above.

The following table summarizes PSU activity in isolation under the Plans for the nine months ended October 31, 2018 and 2017 (these amounts are already included in the Award Activity Table above for 2018):



	Nine Months Ended October 31,
(in thousands)	2018		2017
Beginning balance	506		438
Granted	228		204
Released	(139	)	(50	)
Forfeited	(83	)	(86	)
Ending balance	512		506

Excluding PSUs, we granted 1,482,000 RSUs during the nine months ended October 31, 2018.

As of October 31, 2018, there was approximately $78.5 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 1.8 years.

Stock Bonus Program

Our stock bonus program permits eligible employees to receive a portion of their earned bonuses, otherwise payable in cash, in the form of discounted shares of our common stock. Executive officers are eligible to participate in this program to the extent that shares remain available for awards following the enrollment of all other participants. Shares awarded to executive officers with respect to the discount feature of the program are subject to a one-year vesting period. This program is subject to annual funding approval by our board of directors and an annual cap on the number of shares that can be issued. Subject to these limitations, the number of shares to be issued under the program for a given year is determined using a five-day trailing average price of our common stock when the awards are calculated, reduced by a discount determined by the board of directors each year (the “discount”). To the extent that this program is not funded in a given year or the number of shares of common stock needed to fully satisfy employee enrollment exceeds the annual cap, the applicable portion of the employee bonuses will generally revert to being paid in cash. Obligations under this program are accounted for as liabilities, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of common stock determined using a discounted average price of our common stock.

The following table summarizes activity under the stock bonus program during the nine months ended October 31, 2018 and 2017 in isolation. As noted above, shares issued in respect of the discount feature under the program reduce available plan capacity and are included in the Award Activity Table above. Other shares issued under the program do not reduce available plan capacity and are therefore excluded from the Award Activity Table above.



	Nine Months Ended October 31,
(in thousands)	2018	2017
Shares in lieu of cash bonus - granted and released	19	21
Shares in respect of discount:
Granted	—	—
Released	—	—

Awards under the stock bonus program for the performance period ended January 31, 2018 consisted of shares earned in respect of executive officer incentive plans without a discount, and were issued during the three months ended October 31, 2018.

In March 2018, our board of directors approved up to 125,000 shares of common stock, and a discount of 15%, for awards under our stock bonus program for the year ending January 31, 2019.

Bonus Share Program

Under our bonus share program, we may provide discretionary bonuses to employees or pay earned bonuses that are outside the stock bonus program in the form of shares of common stock. Unlike the stock bonus program, there is no enrollment for this program and no discount feature. Similar to the accounting for the stock bonus program, obligations for these bonuses are accounted for as liabilities, because the obligations are based predominantly on fixed monetary amounts that are generally known, to be settled with a variable number of shares of common stock.

For bonuses in respect of the year ended January 31, 2018, the board of directors approved the use of up to 300,000 shares of common stock under this program, reduced by any shares used under the stock bonus program in respect of the performance period ended January 31, 2018. Some of the shares awarded in respect of the bonus share program for the year ended January 31, 2018 were issued during the three months ended July 31, 2018. The remaining shares awarded were issued during the three months ended October 31, 2018.

For bonuses in respect of the year ending January 31, 2019, the board of directors has approved the use of up to 300,000 shares of common stock under this program, reduced by any shares used under the stock bonus program in respect of the performance period ending January 31, 2019.

The combined accrued liabilities for the stock bonus program and the bonus share program were $6.6 million and $9.2 million at October 31, 2018 and January 31, 2018, respectively.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Oct. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Warranty Liability

The following table summarizes the activity in our warranty liability, which is included in accrued expenses and other liabilities in the condensed consolidated balance sheets, for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018			2017
Warranty liability at beginning of period	$	551		$	962
Provision charged (credited) to expenses	103			(84		)
Warranty charges	(202		)	(219		)
Foreign currency translation and other	(11		)	—
Warranty liability at end of period	$	441		$	659

Legal Proceedings

On March 26, 2009, legal actions were commenced by Ms. Orit Deutsch, a former employee of our subsidiary, Verint Systems Limited (“VSL”), against VSL in the Tel Aviv Regional Labor Court (Case Number 4186/09) (the “Deutsch Labor Action”) and against CTI in the Tel Aviv District Court (Case Number 1335/09) (the “Deutsch District Action”). In the Deutsch Labor Action, Ms. Deutsch filed a motion to approve a class action lawsuit on the grounds that she purported to represent a class of our employees and former employees who were granted Verint and CTI stock options and were allegedly damaged as a result of the suspension of option exercises during the period from March 2006 through March 2010, during which we did not make periodic filings with the SEC as a result of certain internal and external investigations and reviews of accounting matters discussed in our prior public filings. In the Deutsch District Action, in addition to a small amount of individual damages, Ms. Deutsch was seeking to certify a class of plaintiffs who were allegedly damaged due to their inability to exercise Verint and CTI stock options as a result of alleged negligence by CTI in its financial reporting. The class certification motions did not specify an amount of damages. On February 8, 2010, the Deutsch Labor Action was dismissed for lack of material jurisdiction and was transferred to the Tel Aviv District Court and consolidated with the Deutsch District Action.

On March 16, 2009 and March 26, 2009, respectively, legal actions were commenced by Ms. Roni Katriel, a former employee of CTI’s former subsidiary, Comverse Limited, against Comverse Limited in the Tel Aviv Regional Labor Court (Case Number 3444/09) (the “Katriel Labor Action”) and against CTI in the Tel Aviv District Court (Case Number 1334/09) (the “Katriel District Action”). In the Katriel Labor Action, Ms. Katriel was seeking to certify a class of plaintiffs who were granted CTI stock options and were allegedly damaged as a result of the suspension of option exercises during an extended filing delay period affecting CTI’s periodic reporting discussed in CTI’s historical SEC filings. In the Katriel District Action, in addition to a small amount of individual damages, Ms. Katriel was seeking to certify a class of plaintiffs who were allegedly damaged due to their inability to exercise CTI stock options as a result of alleged negligence by CTI in its financial reporting. The class certification motions did not specify an amount of damages. On March 2, 2010, the Katriel Labor Action was transferred to the Tel Aviv District Court, based on an agreed motion filed by the parties requesting such transfer.

On April 4, 2012, Ms. Deutsch and Ms. Katriel filed an uncontested motion to consolidate and amend their claims and on June 7, 2012, the District Court allowed Ms. Deutsch and Ms. Katriel to file the consolidated class certification motion and an amended consolidated complaint against VSL, CTI, and Comverse Limited. Following CTI’s announcement of its intention to effect the distribution of all of the issued and outstanding shares of capital stock of its former subsidiary, Comverse, Inc. (the “Comverse Share Distribution”), on July 12, 2012, the plaintiffs filed a motion requesting that the District Court order CTI to set aside up to $150.0 million in assets to secure any future judgment. The District Court ruled at such time that it would not decide this motion until the Deutsch and Katriel class certification motion was heard. Plaintiffs initially filed a motion to appeal this ruling in August 2012, but subsequently withdrew it in July 2014.

Prior to the consummation of the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in us and its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or unaffiliated third parties. On October 31, 2012, CTI completed the Comverse Share Distribution, in which it distributed all of the outstanding shares of common stock of Comverse, Inc. to CTI’s shareholders. As a result of the Comverse Share Distribution, Comverse, Inc. became an independent company and ceased to be a wholly owned subsidiary of CTI, and CTI ceased to have any material assets other than its equity interest in us. As of February 28, 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc.

On February 4, 2013, we merged with CTI. As a result of the merger, we have assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the Deutsch District Action and the Katriel District Action. However, under the terms of the Distribution Agreement between CTI and Comverse, Inc. relating to the Comverse share distribution, we, as successor to CTI, are entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses we suffer in our capacity as successor-in-interest to CTI in connection with the Deutsch District Action and the Katriel District Action.

Following an unsuccessful mediation process, the proceeding before the District Court resumed. On August 28, 2016, the District Court (i) denied the plaintiffs’ motion to certify the suit as a class action with respect to all claims relating to Verint stock options and (ii) approved the plaintiffs’ motion to certify the suit as a class action with respect to claims of current or former employees of Comverse Limited (now Mavenir) or VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case and any calculation of damages would be evaluated under New York law.

On December 15, 2016, CTI filed with the Supreme Court a motion for leave to appeal the District Court’s August 28, 2016 ruling. The plaintiffs did not file an appeal of the District Court’s August 28, 2016 ruling. On February 5, 2017, the District Court approved the plaintiffs’ motion to appoint a new representative plaintiff, Mr. David Vaaknin, for the current or former employees of VSL who held unexercised CTI stock options at the time CTI suspended option exercises in replacement of Ms. Deutsch.

On August 8, 2017, the Supreme Court partially allowed CTI’s appeal and ordered the case to be returned to the District Court to determine whether a cause of action exists in this case under New York law, based on CTI’s previously submitted expert opinion and the opinion of any expert the plaintiffs elect to introduce.

On November 28, 2017, the plaintiffs submitted an expert opinion regarding New York law. On January 3, 2018, CTI filed a motion to dismiss the motion to certify the class action on the basis that the New York law opinion submitted by the plaintiffs did not directly address the causes of action in question, or alternatively, to dismiss the portions of the opinion that did not specifically relate to CTI’s expert opinion. On January 22, 2018, the court ruled that the plaintiffs should submit a motion to amend their class certification motion and that CTI’s motion to dismiss would remain pending. Based on input from the court, the parties have agreed to enter into a further round of mediation in an effort to settle the matter, which remains ongoing.

From time to time we or our subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of our business. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any current claims will have a material effect on our consolidated financial position, results of operations, or cash flows.

SEGMENT INFORMATION

9 Months Ended

Oct. 31, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer is our CODM.

We report our results in two operating segments—Customer Engagement Solutions (“Customer Engagement”) and Cyber Intelligence Solutions (“Cyber Intelligence”). Our Customer Engagement solutions help customer-centric organizations optimize customer engagement, increase customer loyalty, and maximize revenue opportunities, while generating operational efficiencies, reducing cost, and mitigating risk. Our Cyber Intelligence solutions are used for a wide range of applications, including predictive intelligence, advanced and complex investigations, security threat analysis, and electronic data and physical assets protection, as well as for generating legal evidence and preventing criminal activity and terrorism.

We measure the performance of our operating segments based on segment revenue and segment contribution.

Segment revenue includes adjustments associated with revenue of acquired companies which are not recognizable within GAAP revenue. These adjustments primarily relate to the acquisition-date excess of the historical carrying value over the fair value of acquired companies’ future maintenance and service performance obligations. As the obligations are satisfied, we report our segment revenue using the historical carrying values of these obligations, which we believe better reflects our ongoing maintenance and service revenue streams, whereas GAAP revenue is reported using the obligations’ acquisition-date fair values. Segment revenue adjustments can also result from aligning an acquired company’s historical revenue recognition policies to our policies.

Segment contribution includes segment revenue and expenses incurred directly by the segment, including material costs, service costs, research and development, selling, marketing, and certain administrative expenses. When determining segment contribution, we do not allocate certain operating expenses which are provided by shared resources or are otherwise generally not controlled by segment management. These expenses are reported as “Shared support expenses” in our table of segment operating results, the majority of which are expenses for administrative support functions, such as information technology, human resources, finance, legal, and other general corporate support, and for occupancy expenses. These unallocated expenses also include procurement, manufacturing support, and logistics expenses.

In addition, segment contribution does not include amortization of acquired intangible assets, stock-based compensation, and other expenses that either can vary significantly in amount and frequency, are based upon subjective assumptions, or in certain cases are unplanned for or difficult to forecast, such as restructuring expenses and business combination transaction and integration expenses, all of which are not considered when evaluating segment performance.

Revenue from transactions between our operating segments is not material.

Operating results by segment for the three and nine months ended October 31, 2018 and 2017 were as follows:



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017
Revenue:
Customer Engagement
Segment revenue	$	201,448		$	184,506		$	593,556		$	542,708
Revenue adjustments	(3,981		)	(2,916		)	(8,826		)	(11,065		)
	197,467			181,590			584,730			531,643
Cyber Intelligence
Segment revenue	106,540			99,254			314,880			285,024
Revenue adjustments	(24		)	(118		)	(93		)	(169		)
	106,516			99,136			314,787			284,855
Total revenue	$	303,983		$	280,726		$	899,517		$	816,498

Segment contribution:
Customer Engagement	$	79,593		$	70,768		$	225,154		$	195,756
Cyber Intelligence	29,193			23,160			74,964			62,402
Total segment contribution	108,786			93,928			300,118			258,158

Reconciliation of segment contribution to operating income (loss):
Revenue adjustments	4,005			3,034			8,919			11,234
Shared support expenses	39,585			38,150			121,390			114,022
Amortization of acquired intangible assets	13,518			16,230			41,600			54,973
Stock-based compensation	16,595			15,966			50,509			50,453
Acquisition, integration, restructuring, and other unallocated expenses	1,413			2,736			7,017			15,103
Total reconciling items, net	75,116			76,116			229,435			245,785
Operating income (loss)	$	33,670		$	17,812		$	70,683		$	12,373

With the exception of goodwill and acquired intangible assets, we do not identify or allocate our assets by operating segment. Consequently, it is not practical to present assets by operating segment. The allocations of goodwill and acquired intangible assets by operating segment appear in Note 6, “Intangible Assets and Goodwill”.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Oct. 31, 2018

Accounting Policies [Abstract]

Preparation of Condensed Consolidated Financial Statements

Principles of Consolidation

We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated.

Use of Estimates

Significant Accounting Policies

Goodwill, Other Acquired Intangible Assets, and Long-Lived Assets

Recent Accounting Pronouncements

Other Recently Adopted Accounting Pronouncements

As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the nine months ended October 31, 2017 as follows:



	Nine Months Ended October 31, 2017
(in thousands)	As previously reported			Adjustments		As Adjusted
Net cash provided by operating activities	$	96,174		$	—	$	96,174
Net cash used in investing activities	(88,693		)	30,096		(58,597		)
Net cash used in financing activities	(1,420		)	—		(1,420		)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(758		)	1,205		447
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	5,303			31,301		36,604
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	307,363			61,966		369,329
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	312,666		$	93,267	$	405,933

New Accounting Pronouncements Not Yet Effective

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to

REVENUE RECOGNITION REVENUE RECOGNITION - SIGNIFICANT ACCOUNTING POLICY (Policies)	9 Months Ended
	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition, Policy [Policy Text Block]	On February 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective method applied to those contracts that were not completed as of February 1, 2018. Results for reporting periods beginning after February 1, 2018 are presented under ASU No. 2014-09, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under prior guidance. For contracts that were modified before the effective date of ASU No. 2014-09, we recorded the aggregate effect of all modifications when identifying performance obligations and allocating the transaction price in accordance with the practical expedient provided for under the new guidance, which permits an entity to record the aggregate effect of all contract modifications that occur before the beginning of the earliest period presented in accordance with the new standard when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. Under the new standard, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of new standard, we perform the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer, published credit and financial information pertaining to the customer. Our customary business practice is to enter into legally enforceable written contracts with our customers. The majority of our contracts are governed by a master agreement between us and the customer, which sets forth the general terms and conditions of any individual contract between the parties, which is then supplemented by a customer purchase order to specify the different goods and services, the associated prices, and any additional terms for an individual contract. Multiple contracts with a single counterparty entered into at the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain Cyber Intelligence customers require design, development, or significant customization of our products to meet their specific requirements, in which case the products and services are combined into one distinct performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. We assess the timing of transfer of goods and services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less, which is the case in the majority of our customer contracts. The primary purpose of our invoicing terms is not to receive or provide financing from or to customers. Our Cyber Intelligence contracts may require an advance payment to encourage customer commitment to the project and protect us from early termination of the contract. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price, if we assessed that a significant future reversal of cumulative revenue under the contract will not occur. Typically, our contracts do not provide our customers with any right of return or refund, and we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund. 4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct goods or services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, we must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. We allocate the variable amount to one or more distinct performance obligations but not all or to one or more distinct services that forms a part of a single performance obligation, when the payment terms of the variable amount relate solely to our efforts to satisfy that distinct performance obligation and it results in an allocation that is consistent with the overall allocation objective of ASU No. 2014-09. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. We determine standalone selling price (“SSP”) based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. 5) Recognize revenue when (or as) the entity satisfies a performance obligation We satisfy performance obligations either over time or at a point in time depending on the nature of the underlying promise. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. In the case of contracts that include customer acceptance criteria, revenue is not recognized until we can objectively conclude that the product or service meets the agreed-upon specifications in the contract. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to our customers. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer. Shipping and handling activities that are billed to the customer and occur after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. Historically, these expenses have not been material. Nature of Goods and Services We derive and report our revenue in two categories: (a) product revenue, including licensing of software products, and the sale of hardware products, and (b) service and support revenue, including revenue from installation services, post-contract customer support (“PCS”), project management, hosting services, cloud deployments, SaaS, application managed services, product warranties, business advisory consulting, and training services. Our software licenses typically provide for a perpetual right to use our software, though we also sell term-based software licenses that provide our customers with the right to use our software for only a fixed term, in most cases between a one- and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that the software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. We rarely sell our software licenses on a standalone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there are certain stratifications of the population with different pricing practices. Revenue for hardware is recognized at a point in time, generally upon shipment or delivery. Contracts that require us to significantly customize our software are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use the expected cost plus a margin approach to estimate the SSP of our significantly customized solutions. Professional services revenues primarily consist of fees for deployment and optimization services, as well as training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional services as the services are performed. Professional services that are billed on a time and materials basis are recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. We determine SSP for our professional services based on the price at which the performance obligation is sold separately, which is observable through past transactions. Our SaaS contracts are typically comprised of a right to access our software, maintenance, and hosting fees. We do not provide the customer the contractual right to take possession of the software at any time during the hosting period under these contracts. The customer can only benefit from the SaaS license and the maintenance when combined with the hosting service as the hosting service is the only way for the customer to access the software and benefit from the maintenance services. Accordingly, each of the license, maintenance, and hosting services is not considered a distinct performance obligation in the context of the contract, and should be combined into a single performance obligation (“SaaS services”) and recognized ratably over the contract period. Our SaaS customer contracts can consist of fixed, variable, and usage based fees. Typically, we invoice a portion of the fees at the outset of the contract and then monthly or quarterly thereafter. Certain SaaS contracts include a nonrefundable upfront fee for setup services, which are not distinct from the SaaS services. Non-distinct setup services represent an advanced payment for future SaaS services, and are recognized as revenue when those SaaS services are satisfied, unless the nonrefundable fee is considered to be a material right, in which case the nonrefundable fee is recognized over the expected benefit period, which includes anticipated SaaS renewals. We determine SSP for our SaaS services based on the price at which the performance obligation is sold separately, which is observable through past SaaS renewal transactions. We satisfy our SaaS services by providing access to our software over time and processing transactions for usage based contracts. For non-usage based fees, the period of time over which we perform is commensurate with the contract term because that is the period during which we have an obligation to provide the service. The performance obligation is recognized on a time elapsed basis, by month for which the services are provided. Customer support revenue is derived from providing telephone technical support services, bug fixes and unspecified software updates and upgrades to customers on a when-and-if-available basis. Each of these performance obligations provide benefit to the customer on a standalone basis and are distinct in the context of the contract. Each of these distinct performance obligations represent a stand ready obligation to provide service to a customer, which is concurrently delivered and has the same pattern of transfer to the customer, which is why we account for these support services as a single performance obligation. We recognize support services ratably over the contractual term, which typically is one year, and develop SSP for support services based on standalone renewal contracts. Our Customer Engagement solutions are generally sold with a warranty of one year for hardware and 90 days for software. Our Cyber Intelligence solutions are generally sold with warranties that typically range from 90 days to three years and, in some cases, longer. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware complies with agreed-upon specifications are not provided.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Oct. 31, 2018

Accounting Policies [Abstract]

Schedule of Changes in Prior Period Statement of Cash Flows Resulting from New Accounting Standard

As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the nine months ended October 31, 2017 as follows:



	Nine Months Ended October 31, 2017
(in thousands)	As previously reported			Adjustments		As Adjusted
Net cash provided by operating activities	$	96,174		$	—	$	96,174
Net cash used in investing activities	(88,693		)	30,096		(58,597		)
Net cash used in financing activities	(1,420		)	—		(1,420		)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(758		)	1,205		447
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	5,303			31,301		36,604
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	307,363			61,966		369,329
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	312,666		$	93,267	$	405,933



	As of October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Balance Sheet
Assets:
Accounts receivable, net	$	311,492	$	266,497	$	44,995
Contract assets	70,076		—		70,076
Deferred cost of revenue	9,651		11,170		(1,519		)
Prepaid expenses and other current assets	85,310		86,462		(1,152		)
Long-term deferred cost of revenue	4,283		1,214		3,069
Other assets	101,643		79,330		22,313

Liabilities:
Accrued expenses and other current liabilities	181,452		216,637		(35,185		)
Contract liabilities	306,240		207,199		99,041
Long-term contract liabilities	27,512		26,700		812
Other liabilities	120,158		119,236		922

Stockholders' Equity:
Total stockholders' equity	1,213,499		1,141,307		72,192



	Three Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	111,670	$	109,224	$	2,446
Service and support	192,313		192,849		(536		)

Cost of revenue:
Product	33,124		30,315		2,809
Service and support	72,182		72,847		(665		)

Expenses and Other:
Selling, general and administrative	99,902		102,463		(2,561		)
Provision (benefit) for income taxes	5,601		5,401		200
Net income	20,213		18,086		2,127



	Nine Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09			Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	327,576	$	300,116		$	27,460
Service and support	571,941		562,701			9,240

Cost of revenue:
Product	100,917		94,243			6,674
Service and support	218,842		219,319			(477		)

Expenses and Other:
Selling, general and administrative	311,482		319,481			(7,999		)
Provision (benefit) for income taxes	2,153		(1,647		)	3,800
Net income	41,912		7,210			34,702

REVENUE RECOGNITION REVENUE RECOGNITION (Tables)

9 Months Ended

Oct. 31, 2018

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Disaggregation of Revenue



	Three Months Ended October 31, 2018						Nine Months Ended October 31, 2018
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	52,353	$	59,317	$	111,670	$	156,245	$	171,331	$	327,576
Service and support	145,114		47,199		192,313		428,485		143,456		571,941
Total revenue	$	197,467	$	106,516	$	303,983	$	584,730	$	314,787	$	899,517

Revenue by recurrence:
Recurring revenue	$	112,274	$	40,349	$	152,623	$	330,890	$	119,238	$	450,128
Nonrecurring revenue	85,193		66,167		151,360		253,840		195,549		449,389
Total revenue	$	197,467	$	106,516	$	303,983	$	584,730	$	314,787	$	899,517

Contracts with Customers - Assets and Liabilities

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:



(in thousands)	October 31, 2018
Accounts receivable, net	$	311,492
Contract assets	70,076
Long-term contract assets (included in other assets)	1,289
Contract liabilities	306,240
Long-term contract liabilities	27,512

Schedule of Impact of ASU No. 2014-09 on Current Period Balance Sheet and Operating Results

As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the nine months ended October 31, 2017 as follows:



	Nine Months Ended October 31, 2017
(in thousands)	As previously reported			Adjustments		As Adjusted
Net cash provided by operating activities	$	96,174		$	—	$	96,174
Net cash used in investing activities	(88,693		)	30,096		(58,597		)
Net cash used in financing activities	(1,420		)	—		(1,420		)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(758		)	1,205		447
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	5,303			31,301		36,604
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	307,363			61,966		369,329
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$	312,666		$	93,267	$	405,933



	As of October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Balance Sheet
Assets:
Accounts receivable, net	$	311,492	$	266,497	$	44,995
Contract assets	70,076		—		70,076
Deferred cost of revenue	9,651		11,170		(1,519		)
Prepaid expenses and other current assets	85,310		86,462		(1,152		)
Long-term deferred cost of revenue	4,283		1,214		3,069
Other assets	101,643		79,330		22,313

Liabilities:
Accrued expenses and other current liabilities	181,452		216,637		(35,185		)
Contract liabilities	306,240		207,199		99,041
Long-term contract liabilities	27,512		26,700		812
Other liabilities	120,158		119,236		922

Stockholders' Equity:
Total stockholders' equity	1,213,499		1,141,307		72,192



	Three Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09		Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	111,670	$	109,224	$	2,446
Service and support	192,313		192,849		(536		)

Cost of revenue:
Product	33,124		30,315		2,809
Service and support	72,182		72,847		(665		)

Expenses and Other:
Selling, general and administrative	99,902		102,463		(2,561		)
Provision (benefit) for income taxes	5,601		5,401		200
Net income	20,213		18,086		2,127



	Nine Months Ended October 31, 2018
(in thousands)	As Reported		Balances without Adoption of ASU No. 2014-09			Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
Revenue:
Product	$	327,576	$	300,116		$	27,460
Service and support	571,941		562,701			9,240

Cost of revenue:
Product	100,917		94,243			6,674
Service and support	218,842		219,319			(477		)

Expenses and Other:
Selling, general and administrative	311,482		319,481			(7,999		)
Provision (benefit) for income taxes	2,153		(1,647		)	3,800
Net income	41,912		7,210			34,702

Accounting Standards Update 2014-09

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Schedule of Impact of ASU No. 2014-09 on Current Period Balance Sheet and Operating Results

As a result of applying the modified retrospective method to adopt the new standard, the following adjustments were made to accounts on the consolidated balance sheet as of February 1, 2018:



(in thousands)	Balance at January 31, 2018		Adjustments from Adopting ASU No. 2014-09			Balance at February 1, 2018
Assets:
Accounts receivable, net	$	296,324	$	53,682		$	350,006
Contract assets	—		69,217			69,217
Deferred cost of revenue	6,096		2,056			8,152
Prepaid expenses and other current assets	82,090		(829		)	81,261
Long-term deferred cost of revenue	2,804		2,193			4,997
Deferred income taxes	30,878		(2,248		)	28,630
Other assets	52,037		14,912			66,949

Liabilities:
Accrued expenses and other current liabilities	220,265		(46,062		)	174,203
Contract liabilities	196,107		139,517			335,624
Long-term contract liabilities	24,519		6,518			31,037
Deferred income taxes	35,305		963			36,268

Stockholders' Equity:
Total stockholders' equity	1,132,336		38,047			1,170,383

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. (Tables)

9 Months Ended

Oct. 31, 2018

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted net income (loss) per common share attributable to Verint Systems Inc.



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands, except per share amounts)	2018		2017		2018		2017
Net income (loss)	$	20,213	$	3,066	$	41,912	$	(21,740	)
Net income attributable to noncontrolling interests	1,293		577		3,227		1,984
Net income (loss) attributable to Verint Systems Inc.	$	18,920	$	2,489	$	38,685	$	(23,724	)
Weighted-average shares outstanding:
Basic	65,122		63,759		64,690		63,152
Dilutive effect of employee equity award plans	1,078		829		1,195		—
Dilutive effect of 1.50% convertible senior notes	—		—		—		—
Dilutive effect of warrants	—		—		—		—
Diluted	66,200		64,588		65,885		63,152
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic	$	0.29	$	0.04	$	0.60	$	(0.38	)
Diluted	$	0.29	$	0.04	$	0.59	$	(0.38	)

Schedule of anti-dilutive securities



	Three Months Ended October 31,		Nine Months Ended October 31,
(in thousands)	2018	2017	2018	2017
Common shares excluded from calculation:
Stock options and restricted stock-based awards	546	600	432	1,205
1.50% convertible senior notes	6,205	6,205	6,205	6,205
Warrants	6,205	6,205	6,205	6,205

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)

9 Months Ended

Oct. 31, 2018

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Schedule of Cash, Cash Equivalents and Short-term Investments [Table Text Block]

The following tables summarize our cash, cash equivalents, and short-term investments as of October 31, 2018 and January 31, 2018:



	October 31, 2018
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	297,540	$	—	$	—	$	297,540
Money market funds	52,640		—		—		52,640
Commercial paper	3,242		—		—		3,242
Total cash and cash equivalents	$	353,422	$	—	$	—	$	353,422

Short-term investments:
Bank time deposits	$	49,434	$	—	$	—	$	49,434
Total short-term investments	$	49,434	$	—	$	—	$	49,434



	January 31, 2018
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	337,756	$	—	$	—	$	337,756
Money market funds	186		—		—		186
Total cash and cash equivalents	$	337,942	$	—	$	—	$	337,942

Short-term investments:
Corporate debt securities (available-for-sale)	$	2,002	$	—	$	—	$	2,002
Bank time deposits	4,564		—		—		4,564
Total short-term investments	$	6,566	$	—	$	—	$	6,566

BUSINESS COMBINATIONS (Tables)

9 Months Ended

Oct. 31, 2018

Business Combinations [Abstract]

Schedule of Business Acquisitions



(in thousands)	Amount
Components of Purchase Prices:
Cash	$	106,049
Fair value of contingent consideration	25,874
Other purchase price adjustments	2,897
Total purchase prices	$	134,820

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	4,184
Other current assets, including cash acquired	15,108
Other assets	2,765
Current and other liabilities	(12,512		)
Deferred revenue - current and long-term	(4,424		)
Deferred income taxes	(8,550		)
Net tangible liabilities	(3,429		)
Identifiable intangible assets:
Customer relationships	24,812
Developed technology	29,614
Trademarks and trade names	2,456
Total identifiable intangible assets	56,882
Goodwill	81,367
Total purchase price allocations	$	134,820

INTANGIBLE ASSETS AND GOODWILL (Tables)

9 Months Ended

Oct. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of acquisition-related intangible assets

Acquisition-related intangible assets consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31, 2018
(in thousands)	Cost		Accumulated Amortization			Net
Intangible assets, with finite lives:
Customer relationships	$	431,235	$	(292,419	)	$	138,816
Acquired technology	273,456		(225,886		)	47,570
Trade names	26,486		(20,761		)	5,725
Non-competition agreements	3,047		(2,972		)	75
Distribution network	4,440		(4,440		)	—
Total intangible assets	$	738,664	$	(546,478	)	$	192,186



	January 31, 2018
(in thousands)	Cost		Accumulated Amortization			Net
Intangible assets, with finite lives:
Customer relationships	$	438,664	$	(281,592	)	$	157,072
Acquired technology	273,156		(212,571		)	60,585
Trade names	26,820		(18,570		)	8,250
Non-competition agreements	3,047		(2,861		)	186
Distribution network	4,440		(4,440		)	—
Total intangible assets	$	746,127	$	(520,034	)	$	226,093

Schedule of net acquisition-related intangible assets by reportable segment

The following table presents net acquisition-related intangible assets by reportable segment as of October 31, 2018 and January 31, 2018:



	October 31,		January 31,
(in thousands)	2018		2018
Customer Engagement	$	186,549	$	213,963
Cyber Intelligence	5,637		12,130
Total	$	192,186	$	226,093

Schedule of estimated future amortization expense on finite-lived acquisition-related intangible assets

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:



(in thousands)
Years Ending January 31,	Amount
2019 (remainder of year)	$	13,265
2020	44,390
2021	36,255
2022	32,370
2023	25,323
2024 and thereafter	40,583
Total	$	192,186

Schedule of goodwill activity

Goodwill activity for the nine months ended October 31, 2018, in total and by reportable segment, was as follows:



				Reportable Segment
(in thousands)	Total			Customer Engagement			Cyber Intelligence
Year Ended January 31, 2018:
Goodwill, gross, at January 31, 2018	$	1,455,164		$	1,307,136		$	148,028
Accumulated impairment losses through January 31, 2018	(66,865		)	(56,043		)	(10,822		)
Goodwill, net, at January 31, 2018	1,388,299			1,251,093			137,206
Business combinations, including adjustments to prior period acquisitions	14,526			14,526			—
Foreign currency translation and other	(38,373		)	(37,405		)	(968		)
Goodwill, net, at October 31, 2018	$	1,364,452		$	1,228,214		$	136,238

Balance at October 31, 2018:
Goodwill, gross, at October 31, 2018	$	1,431,317		$	1,284,257		$	147,060
Accumulated impairment losses through October 31, 2018	(66,865		)	(56,043		)	(10,822		)
Goodwill, net, at October 31, 2018	$	1,364,452		$	1,228,214		$	136,238

LONG-TERM DEBT (Tables)

9 Months Ended

Oct. 31, 2018

Long-term Debt, Unclassified [Abstract]

Summary of long-term debt

The following table summarizes our long-term debt at October 31, 2018 and January 31, 2018:



	October 31,			January 31,
(in thousands)	2018			2018

1.50% Convertible Senior Notes	$	400,000		$	400,000
2017 Term Loan	419,688			422,875
Other debt	131			250
Less: Unamortized debt discounts and issuance costs	(40,095		)	(50,141		)
Total debt	779,724			772,984
Less: current maturities	4,382			4,500
Long-term debt	$	775,342		$	768,484

Summary of future scheduled principal payments on 2017 Term Loan

As of October 31, 2018, future scheduled principal payments on the 2017 Term Loan were as follows:



(in thousands)
Years Ending January 31,	Amount
2019 (remainder of year)	$	1,063
2020	4,250
2021	4,250
2022	4,250
2023	4,250
2024 and thereafter	401,625
Total	$	419,688

Schedule of components of interest expense

The following table presents the components of interest expense incurred on the Notes and on borrowings under our credit agreements for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2018		2017		2018		2017
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	1,500	$	1,500	$	4,500	$	4,500
Amortization of debt discount	2,982		2,829		8,829		8,377
Amortization of deferred debt issuance costs	281		267		833		790
Total Interest Expense - 1.50% Convertible Senior Notes	$	4,763	$	4,596	$	14,162	$	13,667

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	4,448	$	3,858	$	13,047	$	11,493
Impact of interest rate swap agreement	—		—		—		254
Amortization of debt discounts	17		17		50		48
Amortization of deferred debt issuance costs	392		396		1,162		1,451
Total Interest Expense - Borrowings under Credit Agreements	$	4,857	$	4,271	$	14,259	$	13,246

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.5-02.22)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 505
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

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-Name Accounting Standards Codification
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

9 Months Ended

Oct. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31,		January 31,
(in thousands)	2018		2018
Raw materials	$	9,517	$	9,870
Work-in-process	6,018		6,269
Finished goods	6,202		3,732
Total inventories	$	21,737	$	19,871

Schedule of Other (Expense) Income, Net

Other (expense) income, net consisted of the following for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017
Foreign currency (losses) gains, net	$	(1,458	)	$	(1,474	)	$	(5,372	)	$	2,384
Gains on derivative financial instruments, net	1,051			834			3,760			292
Other, net	(82		)	75			(582		)	(147		)
Total other (expense) income, net	$	(489	)	$	(565	)	$	(2,194	)	$	2,529

Schedule of Supplemental Information Regarding Condensed Consolidated Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018		2017
Cash paid for interest	$	14,736	$	13,618
Cash payments of income taxes, net	$	22,324	$	18,344
Non-cash investing and financing transactions:
Accrued but unpaid purchases of property and equipment	$	4,443	$	3,487
Inventory transfers to property and equipment	$	1,334	$	1,265
Liabilities for contingent consideration in business combinations, including measurement period adjustments	$	8,969	$	9,100
Capital leases of property and equipment	$	473	$	1,929

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Oct. 31, 2018

Stockholders' Equity Note [Abstract]

Summary of components of accumulated other comprehensive income (loss)

The following table summarizes changes in the components of our accumulated other comprehensive income (loss) by component for the nine months ended October 31, 2018:



(in thousands)	Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges			Unrealized Gain on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments			Total
Accumulated other comprehensive income (loss) at January 31, 2018	$	3,312		$	—	$	(106,772	)	$	(103,460	)
Other comprehensive (loss) income before reclassifications	(9,452		)	1,878		(45,190		)	(52,764		)
Losses reclassified out of accumulated other comprehensive (loss) income	(2,076		)	—		—			(2,076		)
Net other comprehensive (loss) income, current period	(7,376		)	1,878		(45,190		)	(50,688		)
Accumulated other comprehensive (loss) income at October 31, 2018	$	(4,064	)	$	1,878	$	(151,962	)	$	(154,148	)

Schedule of amounts reclassified out of accumulated other comprehensive income (loss) into the statement of operations by location



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017			Location
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(108	)	$	141		$	(196	)	$	407		Cost of product revenue
	(120		)	145			(214		)	378			Cost of service and support revenue
	(676		)	825			(1,168		)	2,339			Research and development, net
	(424		)	461			(730		)	1,322			Selling, general and administrative
	(1,328		)	1,572			(2,308		)	4,446			Total, before income taxes
	134			(252		)	232			(539		)	Benefit (provision) for income taxes
	$	(1,194	)	$	1,320		$	(2,076	)	$	3,907		Total, net of income taxes

Interest rate swap agreement	$	—		$	—		$	—		$	(254	)	Interest expense
	—			—			—			934			Other income (expense), net
	—			—			—			680			Total, before income taxes
	—			—			—			(389		)	Provision for income taxes
	$	—		$	—		$	—		$	291		Total, net of income taxes

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Oct. 31, 2018

Liability for contingent consideration measured using significant unobservable inputs (Level 3)

Schedule of assets and liabilities measured at fair value on recurring basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of October 31, 2018 and January 31, 2018:



	October 31, 2018
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	52,640	$	—	$	—
Commercial paper	3,242		—		—
Foreign currency forward contracts	—		1,401		—
Interest rate swap agreements	—		4,747		—
Total assets	$	55,882	$	6,148	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	4,518	$	—
Contingent consideration - business combinations	—		—		53,674
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,000
Total liabilities	$	—	$	4,518	$	56,674



	January 31, 2018
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	186	$	—	$	—
Short-term investments, classified as available-for-sale	—		2,002		—
Foreign currency forward contracts	—		3,682		—
Interest rate swap agreement	—		2,580		—
Total assets	$	186	$	8,264	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	1,308	$	—
Contingent consideration - business combinations	—		—		62,829
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		2,950
Total liabilities	$	—	$	1,308	$	65,779

Liability for contingent consideration

Liability for contingent consideration measured using significant unobservable inputs (Level 3)

Schedule of changes in the estimated fair value using significant unobservable inputs (Level 3)



	Nine Months Ended October 31,
(in thousands)	2018			2017
Fair value measurement at beginning of period	$	62,829		$	52,733
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	8,969			9,100
Changes in fair values, recorded in operating expenses	(4,184		)	(3,769		)
Payments of contingent consideration	(13,600		)	(9,412		)
Foreign currency translation and other	(340		)	—
Fair value measurement at end of period	$	53,674		$	48,652

Option to Acquire Noncontrolling Interests

Liability for contingent consideration measured using significant unobservable inputs (Level 3)

Schedule of changes in the estimated fair value using significant unobservable inputs (Level 3)

The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the nine months ended October 31, 2018 and 2017:



	Nine Months Ended October 31,
(in thousands)	2018		2017
Fair value measurement at beginning of period	$	2,950	$	3,550
Change in fair value, recorded in operating expenses	50		(450		)
Fair value measurement at end of period	$	3,000	$	3,100

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Oct. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair values of derivative financial instruments

The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of October 31, 2018 and January 31, 2018 were as follows:



		Fair Value at
		October 31,		January 31,
(in thousands)	Balance Sheet Classification	2018		2018
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	—	$	3,682
Not designated as hedging instruments	Prepaid expenses and other current assets	1,401		—
Interest rate swap agreements:
Designated as cash flow hedge	Other assets	1,878		—
Not designated as hedging instrument	Prepaid expenses and other current assets	2,869		1,330
	Other assets	—		1,250
Total derivative assets		$	6,148	$	6,262

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	4,518	$	—
Not designated as hedging instruments	Accrued expenses and other current liabilities	—		1,061
	Other liabilities	—		247
Total derivative liabilities		$	4,518	$	1,308

Schedule of the effects of derivative financial instruments designated as cash flow hedging instruments



	Three Months Ended October 31,					Nine Months Ended October 31,
(in thousands)	2018			2017		2018			2017
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(1,591	)	$	743	$	(10,507	)	$	6,329
Interest rate swap agreement	1,266			—		1,878			(341		)
	$	(325	)	$	743	$	(8,629	)	$	5,988

Net (losses) gains reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	(1,328	)	$	1,572	$	(2,308	)	$	4,446
Interest rate swap agreement	—			—		—			(254		)
	$	(1,328	)	$	1,572	$	(2,308	)	$	4,192

Schedule of gains (losses) recognized on derivative financial instruments not designated as hedging instruments



	Classification in Condensed Consolidated Statements of Operations	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)		2018		2017		2018		2017
Foreign currency forward contracts	Other income (expense), net	$	930	$	257	$	2,828	$	(1,025	)
Interest rate swap agreements	Other income (expense), net	121		577		932		1,317
		$	1,051	$	834	$	3,760	$	292

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Oct. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock-Based Compensation Expense by Line Item

We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three and nine months ended October 31, 2018 and 2017:



	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands)	2018		2017		2018		2017
Cost of revenue - product	$	410	$	384	$	915	$	1,090
Cost of revenue - service and support	957		1,813		3,243		4,778
Research and development, net	2,746		3,181		7,294		9,322
Selling, general and administrative	12,482		10,588		39,057		35,263
Total stock-based compensation expense	$	16,595	$	15,966	$	50,509	$	50,453

Schedule of Stock-Based Compensation Expense by Type of Award

The following table summarizes stock-based compensation expense by type of award for the three and nine months ended October 31, 2018, and 2017:



	Three Months Ended October 31,					Nine Months Ended October 31,
(in thousands)	2018		2017			2018		2017
Restricted stock units and restricted stock awards	$	14,187	$	14,201		$	44,179	$	42,951
Stock bonus program and bonus share program	2,394		1,840			6,273		7,446
Total equity-settled awards	16,581		16,041			50,452		50,397
Phantom stock units (cash-settled awards)	14		(75		)	57		56
Total stock-based compensation expense	$	16,595	$	15,966		$	50,509	$	50,453

Summary of RSU Activity



(in thousands, except per share data)	Shares or Units		Weighted-Average Grant Date Fair Value
Outstanding, January 31, 2018	2,808		$	41.18
Granted	1,710		$	43.11
Released	(1,440	)	$	43.88
Forfeited	(222	)	$	40.98
Outstanding, October 31, 2018	2,856		$	41.03

Summary of Performance Share Activity



	Nine Months Ended October 31,
(in thousands)	2018		2017
Beginning balance	506		438
Granted	228		204
Released	(139	)	(50	)
Forfeited	(83	)	(86	)
Ending balance	512		506

Stock Bonus Program Certain Key Data



	Nine Months Ended October 31,
(in thousands)	2018	2017
Shares in lieu of cash bonus - granted and released	19	21
Shares in respect of discount:
Granted	—	—
Released	—	—

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Oct. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability



	Nine Months Ended October 31,
(in thousands)	2018			2017
Warranty liability at beginning of period	$	551		$	962
Provision charged (credited) to expenses	103			(84		)
Warranty charges	(202		)	(219		)
Foreign currency translation and other	(11		)	—
Warranty liability at end of period	$	441		$	659

SEGMENT INFORMATION (Tables)

9 Months Ended

Oct. 31, 2018

Segment Reporting [Abstract]

Operating results by segment

Operating results by segment for the three and nine months ended October 31, 2018 and 2017 were as follows:



	Three Months Ended October 31,						Nine Months Ended October 31,
(in thousands)	2018			2017			2018			2017
Revenue:
Customer Engagement
Segment revenue	$	201,448		$	184,506		$	593,556		$	542,708
Revenue adjustments	(3,981		)	(2,916		)	(8,826		)	(11,065		)
	197,467			181,590			584,730			531,643
Cyber Intelligence
Segment revenue	106,540			99,254			314,880			285,024
Revenue adjustments	(24		)	(118		)	(93		)	(169		)
	106,516			99,136			314,787			284,855
Total revenue	$	303,983		$	280,726		$	899,517		$	816,498

Segment contribution:
Customer Engagement	$	79,593		$	70,768		$	225,154		$	195,756
Cyber Intelligence	29,193			23,160			74,964			62,402
Total segment contribution	108,786			93,928			300,118			258,158

Reconciliation of segment contribution to operating income (loss):
Revenue adjustments	4,005			3,034			8,919			11,234
Shared support expenses	39,585			38,150			121,390			114,022
Amortization of acquired intangible assets	13,518			16,230			41,600			54,973
Stock-based compensation	16,595			15,966			50,509			50,453
Acquisition, integration, restructuring, and other unallocated expenses	1,413			2,736			7,017			15,103
Total reconciling items, net	75,116			76,116			229,435			245,785
Operating income (loss)	$	33,670		$	17,812		$	70,683		$	12,373

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONSOLIDATION (Details)	9 Months Ended
	Oct. 31, 2018
Less than
Basis of Presentation
Maximum ownership interest in cost method investments (as a percent)	20.00%
Joint venture, variable interest entity in which entity is primary beneficiary
Basis of Presentation
Equity interest in a joint venture (as a percent)	50.00%

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - GOODWILL, INTANGIBLE ASSETS, AND OTHER LONG_LIVED ASSETS (Details) - Maximum	9 Months Ended
	Oct. 31, 2018
Goodwill Impairment Testing
Impairment Test Number of Primary Approaches to Assess Fair Value	3
Finite-Lived Intangible Asset, Useful Life	10 years

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - EQUITY INVESTMENTS (Details) $ in Millions	Oct. 31, 2018 USD ($)
Accounting Policies [Abstract]
Cost Method Investments	$ 6.0

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - IMPACT OF ASU 2016-18 (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Cash Provided by Operating Activities		$ 96,174
Net Cash Used in Investing Activities		(58,597)
Net Cash Provided By Financing Activities		(1,420)
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations		447
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents	$ (8,226)	36,604
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period	398,210	369,329
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period	$ 389,984	405,933
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Cash Provided by Operating Activities		96,174
Net Cash Used in Investing Activities		(88,693)
Net Cash Provided By Financing Activities		(1,420)
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations		(758)
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents		5,303
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period		307,363
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period		312,666
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Cash Provided by Operating Activities		0
Net Cash Used in Investing Activities		30,096
Net Cash Provided By Financing Activities		0
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations		1,205
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents		31,301
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period		61,966
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period		$ 93,267

REVENUE RECOGNITION REVENUE RECOGNITION - WARRANTY PERIOD (Details)	9 Months Ended
	Oct. 31, 2018
Customer Engagement \| Hardware
Loss Contingencies [Line Items]
Product Warranty Period	1 year
Customer Engagement \| Software Products
Loss Contingencies [Line Items]
Product Warranty Period	90 days
Cyber Intelligence \| Minimum
Loss Contingencies [Line Items]
Product Warranty Period	90 days
Cyber Intelligence \| Maximum
Loss Contingencies [Line Items]
Product Warranty Period	3 years

REVENUE RECOGNITION REVENUE RECOGNITION - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 303,983	$ 280,726	$ 899,517	$ 816,498
Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	152,623		450,128
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	151,360		449,389
Product revenue
Disaggregation of Revenue [Line Items]
Revenue	111,670		327,576
Service and support revenue
Disaggregation of Revenue [Line Items]
Revenue	192,313		571,941
Customer Engagement
Disaggregation of Revenue [Line Items]
Revenue	197,467	181,590	584,730	531,643
Customer Engagement \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	112,274		330,890
Customer Engagement \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	85,193		253,840
Customer Engagement \| Product revenue
Disaggregation of Revenue [Line Items]
Revenue	52,353		156,245
Customer Engagement \| Service and support revenue
Disaggregation of Revenue [Line Items]
Revenue	145,114		428,485
Cyber Intelligence
Disaggregation of Revenue [Line Items]
Revenue	106,516	$ 99,136	314,787	$ 284,855
Cyber Intelligence \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	40,349		119,238
Cyber Intelligence \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	66,167		195,549
Cyber Intelligence \| Product revenue
Disaggregation of Revenue [Line Items]
Revenue	59,317		171,331
Cyber Intelligence \| Service and support revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 47,199		$ 143,456

REVENUE RECOGNITION REVENUE RECOGNITION - CONTRACT BALANCES (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Feb. 01, 2018	Jan. 31, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 311,492	$ 350,006	$ 296,324
Contract assets	70,076	69,217	0
Long-term contract assets (included in Other Assets)	1,289
Contract liabilities	306,240	335,624	196,107
Long-term contract liabilities	$ 27,512	$ 31,037	$ 24,519

REVENUE RECOGNITION REVENUE RECOGNITION - CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Millions	Oct. 31, 2018	Jan. 31, 2018
Cyber Intelligence \| Credit Concentration Risk
Concentration Risk [Line Items]
Contract asset	$ 43.3	$ 62.3

REVENUE RECOGNITION REVENUE RECOGNITION - CONTRACT ASSET AND LIABILITY ROLLFORWARD (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Current period revenue recognized from beginning balance of Contract Liabilities	$ 51.0	$ 258.8
Amount reclassified to Accounts Receivable from beginning balance of Contract Asset	19.8	42.2
Contract Assets recognized in current period	$ 11.5	$ 53.2

REVENUE RECOGNITION REVENUE RECOGNITION - REMAINING PERFORMANCE OBLIGATIONS (Details) $ in Millions	9 Months Ended
	Oct. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining Performance Obligations	$ 936.4
Percent of Remaining Performance Obligation to be Recognized	64.00%
Period of Expected Timing of Recognition of Performance Obligation	12 months

REVENUE RECOGNITION REVENUE RECOGNITION - COSTS TO OBTAIN AND FULFILL CONTRACTS (Details) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2018 USD ($)	Oct. 31, 2018 USD ($)
Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	$ 29.1	$ 29.1
Capitalized Contract Cost, Amortization	10.8	32.4
Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	14.0	14.0
Capitalized Contract Cost, Amortization	6.0	13.8
Prepaid Expenses and Other Current Assets \| Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	5.1	5.1
Other Assets \| Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	24.0	24.0
Deferred cost of revenue \| Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	9.7	9.7
Long-term deferred cost of revenue \| Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net	$ 4.3	$ 4.3

REVENUE RECOGNITION REVENUE RECOGNITION - ASU NO. 2014-09 ADOPTION BALANCE SHEET (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Feb. 01, 2018	Jan. 31, 2018	Oct. 31, 2017	Jan. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 311,492	$ 350,006	$ 296,324
Contract assets	70,076	69,217	0
Deferred cost of revenue	9,651	8,152	6,096
Prepaid expenses and other current assets	85,310	81,261	82,090
Long-term deferred cost of revenue	4,283	4,997	2,804
Deferred income taxes		28,630
Other assets	101,643	66,949	82,915
Accrued expenses and other current liabilities	181,452	174,203	224,765
Contract liabilities	306,240	335,624	196,107
Long-term contract liabilities	27,512	31,037	24,519
Deferred income taxes		36,268
Total stockholders' equity	1,213,499	1,170,383	1,132,336	$ 1,073,367	$ 1,015,040
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	44,995	53,682
Contract assets	70,076	69,217
Deferred cost of revenue	(1,519)	2,056
Prepaid expenses and other current assets	(1,152)	(829)
Long-term deferred cost of revenue	3,069	2,193
Deferred income taxes		(2,248)
Other assets	22,313	14,912
Accrued expenses and other current liabilities	(35,185)	(46,062)
Contract liabilities	99,041	139,517
Long-term contract liabilities	812	6,518
Deferred income taxes		963
Total stockholders' equity	$ 72,192	$ 38,047
As Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes			30,878
Other assets			52,037
Accrued expenses and other current liabilities			220,265
Deferred income taxes			35,305
Total stockholders' equity			$ 1,132,336

REVENUE RECOGNITION REVENUE RECOGNITION - IMPACT OF ADOPTION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Feb. 01, 2018	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total stockholders' equity	$ 1,170,383	$ 1,213,499	$ 1,073,367	$ 1,213,499	$ 1,073,367	$ 1,132,336	$ 1,015,040
Revenue		303,983	280,726	899,517	816,498
Cost of Revenue		111,239	$ 111,405	338,638	$ 332,882
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total stockholders' equity	38,047	$ 72,192		$ 72,192
Revenue	17,200
Deferred Costs	4,200
Cost of Revenue	2,900
Capitalized Contract Cost, Net	16,900
Deferred income taxes	$ 3,200

REVENUE RECOGNITION REVENUE RECOGNITION - CURRENT PERIOD BALANCE SHEET - IMPACT OF ADOPTION (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Feb. 01, 2018	Jan. 31, 2018	Oct. 31, 2017	Jan. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 311,492	$ 350,006	$ 296,324
Contract assets	70,076	69,217	0
Deferred cost of revenue	9,651	8,152	6,096
Prepaid expenses and other current assets	85,310	81,261	82,090
Long-term deferred cost of revenue	4,283	4,997	2,804
Other assets	101,643	66,949	82,915
Accrued expenses and other current liabilities	181,452	174,203	224,765
Contract liabilities	306,240	335,624	196,107
Long-term contract liabilities	27,512	31,037	24,519
Other liabilities	120,158		149,770
Total stockholders' equity	1,213,499	1,170,383	$ 1,132,336	$ 1,073,367	$ 1,015,040
Calculated under Revenue Guidance in Effect before Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	266,497
Contract assets	0
Deferred cost of revenue	11,170
Prepaid expenses and other current assets	86,462
Long-term deferred cost of revenue	1,214
Other assets	79,330
Accrued expenses and other current liabilities	216,637
Contract liabilities	207,199
Long-term contract liabilities	26,700
Other liabilities	119,236
Total stockholders' equity	1,141,307
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	44,995	53,682
Contract assets	70,076	69,217
Deferred cost of revenue	(1,519)	2,056
Prepaid expenses and other current assets	(1,152)	(829)
Long-term deferred cost of revenue	3,069	2,193
Other assets	22,313	14,912
Accrued expenses and other current liabilities	(35,185)	(46,062)
Contract liabilities	99,041	139,517
Long-term contract liabilities	812	6,518
Other liabilities	922
Total stockholders' equity	$ 72,192	$ 38,047

REVENUE RECOGNITION REVENUE RECOGNITION - CURRENT PERIOD STATEMENT OF OPERATIONS - IMPACT OF ADOPTION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product revenue	$ 111,670	$ 94,827	$ 327,576	$ 279,056
Service and support revenue	192,313	185,899	571,941	537,442
Cost of product revenue	33,124	32,840	100,917	98,708
Cost of service and support revenue	72,182	69,383	218,842	205,928
Selling, general and administrative	99,902	97,304	311,482	302,605
Provision for income taxes	5,601	5,944	2,153	9,504
Net income (loss)	20,213	$ 3,066	41,912	$ (21,740)
Calculated under Revenue Guidance in Effect before Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product revenue	109,224		300,116
Service and support revenue	192,849		562,701
Cost of product revenue	30,315		94,243
Cost of service and support revenue	72,847		219,319
Selling, general and administrative	102,463		319,481
Provision for income taxes	5,401		(1,647)
Net income (loss)	18,086		7,210
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product revenue	2,446		27,460
Service and support revenue	(536)		9,240
Cost of product revenue	2,809		6,674
Cost of service and support revenue	(665)		(477)
Selling, general and administrative	(2,561)		(7,999)
Provision for income taxes	200		3,800
Net income (loss)	$ 2,127		$ 34,702

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - CALCULATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Net Loss Attributable to Verint Systems Inc. [Abstract]
Net income (loss)	$ 20,213	$ 3,066	$ 41,912	$ (21,740)
Net income attributable to noncontrolling interest	1,293	577	3,227	1,984
Net income (loss) attributable to Verint Systems Inc.	$ 18,920	$ 2,489	$ 38,685	$ (23,724)
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Basic (in shares)	65,122,000	63,759,000	64,690,000	63,152,000
Dilutive effect of employee equity award plans (in shares)	1,078,000	829,000	1,195,000	0
Dilutive effect of 1.50% convertible senior notes (in shares)	0	0	0	0
Dilutive effect of warrants (in shares)	0	0	0	0
Diluted (in shares)	66,200,000	64,588,000	65,885,000	63,152,000
Net Income (Loss) Per Common Share Attributable to Verint Systems Inc. [Abstract]
Basic (in dollars per share)	$ 0.29	$ 0.04	$ 0.60	$ (0.38)
Diluted (in dollars per share)	$ 0.29	$ 0.04	$ 0.59	$ (0.38)

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - ANTIDILUTIVE SECURITIES (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Stock options and restricted stock-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares)	546	600	432	1,205
1.50% convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares)	6,205	6,205	6,205	6,205
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares)	6,205	6,205	6,205	6,205

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - OTHER DETAILS (Details)	Oct. 31, 2018 $ / shares shares
Net Income (Loss) Per Common Share Attributable to Verint Systems Inc. [Abstract]
Exercise Price of Warrants (in dollars per share)	$ 75.00
Warrants (in shares) \| shares	6,205,000
1.50% Convertible Senior Notes
Net Income (Loss) Per Common Share Attributable to Verint Systems Inc. [Abstract]
1.50% Convertible Notes - Conversion Price (in dollars per share)	$ 64.46

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
Schedule of Available-for-sale Securities
Maturities and sales of investments	$ 10,620	$ 5,244
Corporate debt securities (available-for-sale)
Schedule of Available-for-sale Securities
Cost basis			$ 2,002
Gross unrealized gains			0
Gross unrealized losses			0
Estimated Fair Value			2,002
Bank time deposits
Schedule of Available-for-sale Securities
Cost basis	49,434		4,564
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Estimated Fair Value	49,434		4,564
Total short-term investments
Schedule of Available-for-sale Securities
Cost basis	49,434		6,566
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Estimated Fair Value	49,434		6,566
Cash and bank time deposits
Schedule of Available-for-sale Securities
Cost basis	297,540		337,756
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Estimated Fair Value	297,540		337,756
Money market funds
Schedule of Available-for-sale Securities
Cost basis	52,640		186
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Estimated Fair Value	52,640		186
Commercial Paper
Schedule of Available-for-sale Securities
Cost basis	3,242
Gross unrealized gains	0
Gross unrealized losses	0
Estimated Fair Value	3,242
Total cash and cash equivalents
Schedule of Available-for-sale Securities
Cost basis	353,422		337,942
Gross unrealized gains	0		0
Gross unrealized losses	0		0
Estimated Fair Value	$ 353,422		$ 337,942

BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2018 - SUMMARY (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 1,364,452		$ 1,364,452		$ 1,388,299
Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross					134,800
Cash payment made at closing					106,049
Business Acquisition Contingent Consideration Fair Value Disclosure					47,300
Fair value of contingent consideration					25,874
Goodwill					81,367
Business Acquisition, Goodwill, Expected Tax Deductible Amount					14,500
Business Acquisition, Purchase Price Allocation, Goodwill, Tax Not Deductible Amount					66,900
Transaction and Related Costs, Including Integration Costs	700	$ 2,000	2,400	$ 3,200
Enterprise Intelligence \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Goodwill					77,600
Cyber Intelligence
Business Acquisition [Line Items]
Goodwill	$ 136,238		$ 136,238		137,206
Cyber Intelligence \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Goodwill					$ 3,800

BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2018 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2018	Oct. 31, 2018
Schedule of Purchase Price Allocations for the Year Ended January 31, 2018 [Line Items]
Goodwill	$ 1,388,299	$ 1,364,452
Individually Insignificant Business Combinations - Year Ended January 31, 2018
Schedule of Purchase Price Allocations for the Year Ended January 31, 2018 [Line Items]
Cash payment made at closing	106,049
Fair value of contingent consideration	25,874
Post-closing purchase price adjustment	2,897
Total purchase prices	134,820
Accounts receivable	4,184
Other current assets, including cash acquired	15,108
Other assets	2,765
Current and other liabilities	12,512
Deferred revenue - current and long-term	4,424
Deferred income taxes	8,550
Net tangible liabilities	(3,429)
Identifiable Intangible Assets	56,882
Goodwill	81,367
Total Purchase Price Allocations	134,820
Customer Relationships \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Schedule of Purchase Price Allocations for the Year Ended January 31, 2018 [Line Items]
Identifiable Intangible Assets	24,812
Developed Technology \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Schedule of Purchase Price Allocations for the Year Ended January 31, 2018 [Line Items]
Identifiable Intangible Assets	29,614
Trademarks and Trade Names \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Schedule of Purchase Price Allocations for the Year Ended January 31, 2018 [Line Items]
Identifiable Intangible Assets	$ 2,456

BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2018 - INTANGIBLE ASSETS USEFUL LIVES (Details)	9 Months Ended	12 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		6 years 4 months
Minimum \| Customer Relationships \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		2 years
Minimum \| Developed Technology \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Minimum \| Trademarks and Trade Names \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		1 year
Maximum
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum \| Customer Relationships \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		10 years
Maximum \| Developed Technology \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		5 years
Maximum \| Trademarks and Trade Names \| Individually Insignificant Business Combinations - Year Ended January 31, 2018
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		7 years

BUSINESS COMBINATIONS BUSINESS COMBINATIONS - OTHER BUSINESS COMBINATION INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
Business Acquisition [Line Items]
Payments of contingent consideration	$ (1,600)	$ (100)	$ (13,600)	$ (9,400)
Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Changes in fair values, recorded in operating expenses	(500)	$ 6,700	4,200	$ 3,800
Level 3 \| Recurring
Business Acquisition [Line Items]
Business Acquisition Contingent Consideration Fair Value Disclosure	53,674		53,674		$ 62,829
Accrued expenses and other current liabilities \| Level 3 \| Recurring
Business Acquisition [Line Items]
Business Acquisition Contingent Consideration Fair Value Disclosure	25,200		25,200
Other liabilities \| Level 3 \| Recurring
Business Acquisition [Line Items]
Business Acquisition Contingent Consideration Fair Value Disclosure	$ 28,500		$ 28,500

INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 738,664	$ 746,127
Finite-Lived Intangible Assets, Accumulated Amortization	(546,478)	(520,034)
Intangible assets with finite lives, Net	192,186	226,093
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	431,235	438,664
Finite-Lived Intangible Assets, Accumulated Amortization	(292,419)	(281,592)
Intangible assets with finite lives, Net	138,816	157,072
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	273,456	273,156
Finite-Lived Intangible Assets, Accumulated Amortization	(225,886)	(212,571)
Intangible assets with finite lives, Net	47,570	60,585
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	26,486	26,820
Finite-Lived Intangible Assets, Accumulated Amortization	(20,761)	(18,570)
Intangible assets with finite lives, Net	5,725	8,250
Non-competition Agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	3,047	3,047
Finite-Lived Intangible Assets, Accumulated Amortization	(2,972)	(2,861)
Intangible assets with finite lives, Net	75	186
Distribution Network
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	4,440	4,440
Finite-Lived Intangible Assets, Accumulated Amortization	(4,440)	(4,440)
Intangible assets with finite lives, Net	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS BY REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Finite-Lived Intangible Assets
Intangible assets, net	$ 192,186	$ 226,093
Customer Engagement
Finite-Lived Intangible Assets
Intangible assets, net	186,549	213,963
Cyber Intelligence
Finite-Lived Intangible Assets
Intangible assets, net	$ 5,637	$ 12,130

INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - AMORTIZATION AND IMPAIRMENT (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Finite-Lived Intangible Assets
Amortization of intangible assets	$ 13,500,000	$ 16,200,000	$ 41,600,000	$ 55,000,000
Impairment of goodwill			0	0
Impairment of acquired intangible assets			$ 0	$ 0

INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Intangible Assets - Future Amortization [Abstract]
2019 (remainder of year)	$ 13,265
2020	44,390
2021	36,255
2022	32,370
2023	25,323
2024 and thereafter	40,583
Intangible assets with finite lives, Net	$ 192,186	$ 226,093

INTANGIBLE ASSETS AND GOODWILL - GOODWILL (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
Goodwill activity
Goodwill, gross at the beginning of the period	$ 1,431,317	$ 1,455,164
Accumulated impairment losses	(66,865)	(66,865)
Goodwill, net at the beginning of the period	1,388,299
Adjustments of prior period business combinations	14,526
Foreign currency translation and other	(38,373)
Goodwill, net, at the end of the period	1,364,452
Customer Engagement
Goodwill activity
Goodwill, gross at the beginning of the period	1,284,257	1,307,136
Accumulated impairment losses	(56,043)	(56,043)
Goodwill, net at the beginning of the period	1,251,093
Adjustments of prior period business combinations	14,526
Foreign currency translation and other	(37,405)
Goodwill, net, at the end of the period	1,228,214
Cyber Intelligence
Goodwill activity
Goodwill, gross at the beginning of the period	147,060	148,028
Accumulated impairment losses	(10,822)	$ (10,822)
Goodwill, net at the beginning of the period	137,206
Adjustments of prior period business combinations	0
Foreign currency translation and other	(968)
Goodwill, net, at the end of the period	$ 136,238

LONG-TERM DEBT - SUMMARY (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018	Jun. 29, 2017	Jun. 18, 2014
Debt Instrument
Unamortized debt discounts and issuance costs	$ 40,095	$ 50,141
Total debt	779,724	772,984
Current maturities of long-term debt	4,382	4,500
Long-term debt	775,342	768,484
1.50% Convertible Senior Notes
Debt Instrument
Principal Amount - 1.50% Convertible Senior Notes	400,000	400,000		$ 400,000
2017 Term Loan
Debt Instrument
Gross term loan borrowings	419,688	422,875	$ 425,000
Other debt
Debt Instrument
Other debt	$ 131	$ 250

LONG-TERM DEBT - 1.50% CONVERTIBLE SENIOR NOTES (Details)		9 Months Ended
	Jun. 18, 2014 USD ($) shares	Oct. 31, 2018 USD ($) $ / shares	Jan. 31, 2018 USD ($)
Debt Instrument
Common Stock Issued (in shares) \| shares	5,750,000
1.50% Convertible Senior Notes
Debt Instrument
Principal Amount - 1.50% Convertible Senior Notes	$ 400,000,000	$ 400,000,000	$ 400,000,000
Coupon Interest Rate	1.50%
Proceeds from issuance of convertible notes, net of underwriting discounts	$ 391,900,000
1.50% Convertible Notes - Conversion Ratio		15.5129
1.50% Convertible Notes - Base Principal Amount For Conversion Rate		$ 1,000
1.50% Convertible Notes - Conversion Price (in dollars per share) \| $ / shares		$ 64.46
1.50% Convertible Notes - Number of Common Shares (in shares)		6,205,000
1.50% Convertible Notes - Carrying Value of Debt Component	319,900,000	$ 363,600,000
1.50% Convertible Notes - Carrying Value of Equity Component	$ 80,100,000	78,200,000
Assumed Nonconvertible Debt Interest Rate	5.00%
Unamortized Debt Discount		33,200,000
Unamortized Debt Issuance Expense		$ 3,100,000
Effective interest rate (as a percent)		5.29%
Debt Component of Convertible Note Issuance Costs	$ 7,600,000
Adjustment To Additional Paid In Capital Debt Issuance Cost	$ 1,900,000

LONG-TERM DEBT - NOTE HEDGES AND WARRANTS (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended
	Jun. 18, 2014	Oct. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Exercise Price of Warrants (in dollars per share)		$ 75.00
Note Hedges - Shares (in shares)		6,205,000
Note Hedges - Strike Price (in dollars per share)		$ 64.46
Payments for convertible note hedges	$ 60.8
Warrants (in shares)		6,205,000
Proceeds from issuance of warrants	$ 45.2

LONG-TERM DEBT - PRIOR CREDIT AGREEMENT - SUMMARY (Details) - USD ($)	Jun. 29, 2017	Jun. 18, 2014	Oct. 31, 2018	Mar. 07, 2014	Feb. 03, 2014
Debt Instrument
Common Stock Issued (in shares)		5,750,000
Prior Credit Agreement (as amended)
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity			$ 943,500,000
February 2014 Term Loans
Debt Instrument
Long-term Debt, Gross					$ 300,000,000
March 2014 Term Loans
Debt Instrument
Long-term Debt, Gross				$ 643,500,000
Prior Revolving Credit Facility
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity			$ 300,000,000
Proceeds from (Repayments of) Secured Debt		$ 106,000,000
2014 Term Loans
Debt Instrument
Proceeds from (Repayments of) Secured Debt	$ 406,900,000	$ 530,000,000

LONG-TERM DEBT - PRIOR CREDIT AGREEMENT - INTEREST RATE DETAILS (Details) - Prior Credit Agreement (as amended)	9 Months Ended
	Oct. 31, 2018
Adjusted LIBO Rate \| Eurodollar loans
Debt Instrument
Variable rate basis	Adjusted LIBOR Rate
Interest rate margin (as a percent)	2.75%
Base Rate \| Base Rate loans
Debt Instrument
Variable rate basis	base rate
Interest rate margin (as a percent)	1.75%

LONG-TERM DEBT LONG-TERM DEBT - 2017 CREDIT AGREEMENT - SUMMARY (Details) - USD ($)	Jun. 29, 2017	Jun. 18, 2014	Oct. 31, 2018	Jan. 31, 2018
2017 Credit Agreement
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity			$ 725,000,000
2017 Term Loan
Debt Instrument
Long-term Debt, Gross	$ 425,000,000		419,688,000	$ 422,875,000
Unamortized Debt Discount	500,000
2017 Revolving Credit Facility
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity			$ 300,000,000
2014 Term Loans
Debt Instrument
Proceeds from (Repayments of) Secured Debt	$ 406,900,000	$ 530,000,000

LONG-TERM DEBT LONG-TERM DEBT - 2017 CREDIT AGREEMENT - INTEREST RATE DETAILS (Details)	9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
2017 Term Loan
Debt Instrument
Interest rate at end of period (as a percent)	4.27%	3.58%
Variable Rate Based on Eurodollar Rate \| 2017 Credit Agreement \| Eurodollar loans
Debt Instrument
Variable rate basis	Eurodollar Rate
Variable Rate Based on Eurodollar Rate \| 2017 Term Loan \| Eurodollar loans
Debt Instrument
Interest rate margin (as a percent)	2.25%
Variable Rate Based on Eurodollar Rate \| 2017 Term Loan - Following January 2018 Amendment \| Eurodollar loans
Debt Instrument
Interest rate margin (as a percent)	2.00%
Variable Rate Based on ABR Rate \| 2017 Credit Agreement \| ABR Rate Loans
Debt Instrument
Variable rate basis	ABR rate
Variable Rate Based on ABR Rate \| 2017 Term Loan \| ABR Rate Loans
Debt Instrument
Interest rate margin (as a percent)	1.25%
Variable Rate Based on ABR Rate \| 2017 Term Loan - Following January 2018 Amendment \| ABR Rate Loans
Debt Instrument
Interest rate margin (as a percent)	1.00%

LONG-TERM DEBT LONG-TERM DEBT - INTEREST RATES (Details) - 2017 Term Loan	Oct. 31, 2018	Jan. 31, 2018
Debt Instrument
Interest rate at end of period (as a percent)	4.27%	3.58%
Effective interest rate (as a percent)	4.45%

LONG-TERM DEBT LONG-TERM DEBT - 2017 CREDIT AGREEMENT ISSUANCE COSTS (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Debt Instrument
Loss on early retirement of debt	$ 0		$ 0	$ 0	$ (1,934)
Amortization of Debt Issuance Costs				206	$ 7,107
2017 Credit Agreement
Debt Instrument
Amortization of Debt Issuance Costs				6,800
2017 Term Loan
Debt Instrument
Loss on early retirement of debt		$ 200
Amortization of Debt Issuance Costs				4,100
2017 Revolving Credit Facility
Debt Instrument
Amortization of Debt Issuance Costs				$ 2,700

LONG-TERM DEBT - FUTURE AMORTIZATION (Details) - 2017 Term Loan - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018	Jun. 29, 2017
Debt Instrument
2019 (remainder of year)	$ 1,063
2020	4,250
2021	4,250
2022	4,250
2023	4,250
2024 and thereafter	401,625
Total	419,688	$ 422,875	$ 425,000
Debt Instrument, Periodic Payment
Required quarterly principal payment	$ 1,100

LONG-TERM DEBT - INTEREST EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
1.50% Convertible Senior Notes
Debt Instrument
Interest Expense at Coupon or Contractual Rate	$ 1,500	$ 1,500	$ 4,500	$ 4,500
Amortization of Debt Discount	2,982	2,829	8,829	8,377
Amortization of Deferred Debt Issuance Costs	281	267	833	790
Total Interest Expense	4,763	4,596	14,162	13,667
Credit Agreements
Debt Instrument
Interest Expense at Coupon or Contractual Rate	4,448	3,858	13,047	11,493
Amortization of Debt Discount	17	17	50	48
Amortization of Deferred Debt Issuance Costs	392	396	1,162	1,451
Total Interest Expense	4,857	4,271	14,259	13,246
Interest rate swap
Debt Instrument
Impact of Interest Rate Swap	0	0	0	680
Interest rate swap \| Credit Agreements
Debt Instrument
Impact of Interest Rate Swap	$ 0	$ 0	$ 0	$ 254

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - INVENTORIES (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Inventories
Raw materials	$ 9,517	$ 9,870
Work-in-process	6,018	6,269
Finished goods	6,202	3,732
Total inventories	$ 21,737	$ 19,871

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - OTHER (EXPENSE) INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Other Income and Expenses [Abstract]
Foreign currency (losses) gains, net	$ (1,458)	$ (1,474)	$ (5,372)	$ 2,384
Gains on derivative financial instruments, net	1,051	834	3,760	292
Other nonoperating income and expense, net	(82)	75	(582)	(147)
Total other (expense) income, net	$ (489)	$ (565)	$ (2,194)	$ 2,529

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 14,736	$ 13,618
Cash payments of income taxes, net	22,324	18,344
Accrued but unpaid purchases of property and equipment	4,443	3,487
Inventory transfers to property and equipment	1,334	1,265
Liabilities for contingent consideration in business combinations, including measurement period adjustments	8,969	9,100
Capital leases of property and equipment	$ 473	$ 1,929

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - DIVIDENDS ON COMMON STOCK (Details) - USD ($)	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Stockholders' Equity Note [Abstract]
Dividends on common stock	$ 0	$ 0
Treasury stock aquired (in shares)	4,000	7,000
Treasury stock acquired (in dollars)	$ 173,000	$ 278,000

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - SHARE REPURCHASE PROGRAM (Details) - USD ($) $ in Thousands	9 Months Ended		24 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Mar. 29, 2018	Mar. 29, 2016
Treasury stock acquired (in dollars)	$ 173	$ 278
Stock Repurchase Program, Authorized Amount				$ 150,000
2016 Share Repurchase Program
Treasury stock acquired (in dollars)			$ 46,900

STOCKHOLDERS' EQUITY - TREASURY STOCK (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
Stockholders' Equity Note [Abstract]
Treasury stock aquired (in shares)	4,000	7,000
Treasury stock acquired (in dollars)	$ 173	$ 278
Treasury stock, (in shares)	1,665,000		1,661,000
Treasury stock (in dollars)	$ 57,598		$ 57,425

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Activity in Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss) - beginning balance			$ (103,460)
Other comprehensive (loss) income before reclassifications			(52,764)
Losses reclassified out of accumulated other comprehensive income (loss)			(2,076)
Net other comprehensive (loss) income, current period			(50,688)
Accumulated other comprehensive (loss) income - ending balance	$ (154,148)		(154,148)
Foreign Exchange Contract
Activity in Accumulated Other Comprehensive Loss
Losses reclassified out of accumulated other comprehensive income (loss)	(1,194)	$ 1,320	(2,076)	$ 3,907
Interest rate swap
Activity in Accumulated Other Comprehensive Loss
Losses reclassified out of accumulated other comprehensive income (loss)	0	$ 0	0	$ 291
Unrealized gains (losses) on derivative financial instruments designated as hedges \| Foreign Exchange Contract
Activity in Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss) - beginning balance			3,312
Other comprehensive (loss) income before reclassifications			(9,452)
Losses reclassified out of accumulated other comprehensive income (loss)			(2,076)
Net other comprehensive (loss) income, current period			(7,376)
Accumulated other comprehensive (loss) income - ending balance	(4,064)		(4,064)
Unrealized gains (losses) on derivative financial instruments designated as hedges \| Interest rate swap
Activity in Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss) - beginning balance			0
Other comprehensive (loss) income before reclassifications			1,878
Losses reclassified out of accumulated other comprehensive income (loss)			0
Net other comprehensive (loss) income, current period			1,878
Accumulated other comprehensive (loss) income - ending balance	1,878		1,878
Foreign currency translation adjustments
Activity in Accumulated Other Comprehensive Loss
Accumulated other comprehensive income (loss) - beginning balance			(106,772)
Other comprehensive (loss) income before reclassifications			(45,190)
Losses reclassified out of accumulated other comprehensive income (loss)			0
Net other comprehensive (loss) income, current period			(45,190)
Accumulated other comprehensive (loss) income - ending balance	$ (151,962)		$ (151,962)

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - AMOUNTS RECLASSIFIED OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Amounts reclassified out of accumulated other comprehensive income (loss)			$ (2,076)
Foreign Exchange Contract
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (1,328)	$ 1,572	(2,308)	$ 4,446
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Income Taxes	(134)	252	(232)	539
Amounts reclassified out of accumulated other comprehensive income (loss)	(1,194)	1,320	(2,076)	3,907
Foreign Exchange Contract \| Cost of revenue - product
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(108)	141	(196)	407
Foreign Exchange Contract \| Cost of revenue - service and support
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(120)	145	(214)	378
Foreign Exchange Contract \| Research and development, net
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(676)	825	(1,168)	2,339
Foreign Exchange Contract \| Selling, general and administrative
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(424)	461	(730)	1,322
Interest rate swap
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	0	0	680
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Income Taxes	0	0	0	389
Amounts reclassified out of accumulated other comprehensive income (loss)	0	0	0	291
Interest rate swap \| Interest expense
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	0	0	(254)
Interest rate swap \| Other income (expense), net
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ 0	$ 0	$ 0	$ 934

INCOME TAXES INCOME TAXES - PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 5,601	$ 5,944	$ 2,153	$ 9,504
Income (loss) before provision (benefit) for income taxes	$ 25,814	$ 9,010	$ 44,065	$ (12,236)
Effective Income Tax Rate (as a percent)	21.70%	66.00%	4.90%	(77.70%)
Tax Adjustments, Settlements, and Unusual Provisions			$ 7,300

INCOME TAXES INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits	$ 114,900	$ 115,700
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	5,600	5,600
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	108,300	$ 105,400
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ 4,200

INCOME TAXES INCOME TAXES - IMPACT OF 2017 TAX ACT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Provision (benefit) for income taxes	$ 5,601	$ 5,944	$ 2,153	$ 9,504
Prior to Enactment of 2017 Tax Act
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			35.00%
Subsequent to Enactment of 2017 Tax Act
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
Net Impact of Transition Tax
Provision (benefit) for income taxes			$ 0

FAIR VALUE MEASUREMENTS - FAIR VALUE TABLE (Details) - Recurring - USD ($) $ in Thousands	Oct. 31, 2018	Jan. 31, 2018
Level 1
Assets:
Money market funds	$ 52,640	$ 186
Commercial Paper, at Carrying Value	3,242
Short-term investments, classified as available for sale		0
Foreign currency forward contracts	0	0
Total assets	55,882	186
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration - business combinations	0	0
Option to acquire noncontrolling interests of consolidated subsidiaries	0	0
Total liabilities	0	0
Level 2
Assets:
Money market funds	0	0
Commercial Paper, at Carrying Value	0
Short-term investments, classified as available for sale		2,002
Foreign currency forward contracts	1,401	3,682
Total assets	6,148	8,264
Liabilities:
Foreign currency forward contracts	4,518	1,308
Contingent consideration - business combinations	0	0
Option to acquire noncontrolling interests of consolidated subsidiaries	0	0
Total liabilities	4,518	1,308
Level 3
Assets:
Money market funds	0	0
Commercial Paper, at Carrying Value	0
Short-term investments, classified as available for sale		0
Foreign currency forward contracts	0	0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration - business combinations	53,674	62,829
Option to acquire noncontrolling interests of consolidated subsidiaries	3,000	2,950
Total liabilities	56,674	65,779
Interest rate swap \| Level 1
Assets:
Interest rate swap agreements	0	0
Interest rate swap \| Level 2
Assets:
Interest rate swap agreements	4,747	2,580
Interest rate swap \| Level 3
Assets:
Interest rate swap agreements	$ 0	$ 0

FAIR VALUE MEASUREMENTS - CONTINGENT CONSIDERATION TABLE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Payments of contingent consideration	$ (1,600)	$ (100)	$ (13,600)	$ (9,400)
Liability for contingent consideration
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement at the beginning of the period			62,829	52,733
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments			8,969	9,100
Changes in fair values, recorded in operating expenses			(4,184)	(3,769)
Payments of contingent consideration			(13,600)	(9,412)
Foreign currency translation and other			(340)	0
Fair value measurement at the end of the period	$ 53,674	$ 48,652	$ 53,674	$ 48,652

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - OPTION TO ACQUIRE NONCONTROLLING INTERESTS (Details) - Option to Acquire Noncontrolling Interests - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement at the beginning of the period	$ 2,950	$ 3,550
Change in fair value, recorded in operating expenses	50	(450)
Fair value measurement at the end of the period	$ 3,000	$ 3,100

FAIR VALUE MEASUREMENTS - OTHER FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
Term Loans \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Term Loans - Fair Value	$ 421	$ 425
1.50% Convertible Senior Notes \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
1.50% Convertible Senior Notes - Fair Value	$ 398	$ 389
Option to Acquire Noncontrolling Interests
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair Value Inputs, Discount Rate	13.00%	13.50%
Minimum \| Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair Value Inputs, Discount Rate	3.00%	3.00%
Maximum \| Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair Value Inputs, Discount Rate	6.00%	5.00%

DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS - INTEREST RATE SWAP AGREEMENTS (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
2016 Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative - Fixed Interest Rate	4.143%
Derivative - Index Interest Rate Floor	0.75%
Derivative - Basis Spread on Variable Rate	2.75%
Derivative - Notional Amount	$ 200.0
Gain on Discontinuation of Cash Flow Hedge		$ 0.9
2018 Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative - Fixed Interest Rate	2.949%
Derivative - Index Interest Rate Floor	0.00%
Derivative - Notional Amount	$ 200.0
Fixed Interest Rate, Including Impact of Margin	4.949%
2017 Term Loan - Following January 2018 Amendment \| Variable Rate Based on Eurodollar Rate \| Eurodollar loans
DERIVATIVE FINANCIAL INSTRUMENTS
Interest rate margin (as a percent)	2.00%

DERIVATIVE FINANCIAL INSTRUMENTS - ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Jan. 31, 2018
Fair Values of Derivative Financial Instruments
Assets, Fair Value	$ 6,148	$ 6,262
Liabilities, Fair Value	$ 4,518	1,308
Foreign Exchange Contract
Fair Values of Derivative Financial Instruments
Term to maturity of derivative contracts is generally less than this period (in months)	12 months
Notional amounts of derivative financial instruments	$ 113,100	153,500
Prepaid Expenses and Other Current Assets \| Foreign Exchange Contract \| Derivative designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, Fair Value	0	3,682
Prepaid Expenses and Other Current Assets \| Foreign Exchange Contract \| Derivative not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, Fair Value	1,401	0
Prepaid Expenses and Other Current Assets \| Interest rate swap \| Derivative not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, Fair Value	2,869	1,330
Other Assets \| Interest rate swap \| Derivative designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, Fair Value	1,878	0
Other Assets \| Interest rate swap \| Derivative not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, Fair Value	0	1,250
Accrued expenses and other current liabilities \| Foreign Exchange Contract \| Derivative designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, Fair Value	4,518	0
Accrued expenses and other current liabilities \| Foreign Exchange Contract \| Derivative not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, Fair Value	0	1,061
Other liabilities \| Foreign Exchange Contract \| Derivative not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, Fair Value	$ 0	$ 247

DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Jan. 31, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (154,148,000)		$ (154,148,000)		$ (103,460,000)
Net losses on foreign currency forward contracts expected to be reclassified to earnings during next 12 months	(4,064,000)		(4,064,000)
Cash flow hedging \| Derivative designated as hedging instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Net (losses) gains recognized in accumulated other comprehensive loss	(325,000)	$ 743,000	(8,629,000)	$ 5,988,000
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1,328,000)	1,572,000	(2,308,000)	4,192,000
Gains (losses) from ineffectiveness				0
Foreign Exchange Contract
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1,328,000)	1,572,000	(2,308,000)	4,446,000
Foreign Exchange Contract \| Cash flow hedging \| Derivative designated as hedging instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Net (losses) gains recognized in accumulated other comprehensive loss	(1,591,000)	743,000	(10,507,000)	6,329,000
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(1,328,000)	1,572,000	(2,308,000)	4,446,000
Interest rate swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	0	0	680,000
Interest rate swap \| Cash flow hedging \| Derivative designated as hedging instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Net (losses) gains recognized in accumulated other comprehensive loss	1,266,000	0	1,878,000	(341,000)
Derivative Instruments, gains (losses) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0	$ 0	0	$ (254,000)
Unrealized gains (losses) on derivative financial instruments designated as hedges \| Foreign Exchange Contract
DERIVATIVE FINANCIAL INSTRUMENTS
Accumulated Other Comprehensive Income (Loss), Net of Tax	(4,064,000)		(4,064,000)		3,312,000
Unrealized gains (losses) on derivative financial instruments designated as hedges \| Interest rate swap
DERIVATIVE FINANCIAL INSTRUMENTS
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 1,878,000		$ 1,878,000		$ 0

DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS - NOT DESIGNATED AT HEDGING INSTRUMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ 1,051	$ 834	$ 3,760	$ 292
Derivative not designated as hedging instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	1,051	834	3,760	292
Derivative not designated as hedging instruments \| Foreign Exchange Contract
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	930	257	2,828	(1,025)
Derivative not designated as hedging instruments \| Interest rate swap
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ 121	$ 577	$ 932	$ 1,317

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - AMENDED AND RESTATED PLAN (Details) - 2017 Amended Plan	Oct. 31, 2018 shares
Stock-Based Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	7,975,000
Reduction in Amended 2017 Plan Capacity From Awards Other Than Options or SARs	2.47

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION - BY LINE ITEM (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Stock-Based Compensation Plans
Stock-based compensation expense	$ 16,595	$ 15,966	$ 50,509	$ 50,453
Cost of revenue - product
Stock-Based Compensation Plans
Stock-based compensation expense	410	384	915	1,090
Cost of revenue - service and support
Stock-Based Compensation Plans
Stock-based compensation expense	957	1,813	3,243	4,778
Research and development, net
Stock-Based Compensation Plans
Stock-based compensation expense	2,746	3,181	7,294	9,322
Selling, general and administrative
Stock-Based Compensation Plans
Stock-based compensation expense	$ 12,482	$ 10,588	$ 39,057	$ 35,263

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION - BY TYPE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Stock-Based Compensation Plans
Stock-based compensation expense	$ 16,595	$ 15,966	$ 50,509	$ 50,453
Equity Settled Awards
Stock-Based Compensation Plans
Stock-based compensation expense	16,581	16,041	50,452	50,397
Equity Settled Awards \| Restricted stock units and restricted stock awards
Stock-Based Compensation Plans
Stock-based compensation expense	14,187	14,201	44,179	42,951
Equity Settled Awards \| Stock Bonus Program and Bonus Share Program
Stock-Based Compensation Plans
Stock-based compensation expense	2,394	1,840	6,273	7,446
Cash Settled Awards \| Phantom stock units (cash settled awards)
Stock-Based Compensation Plans
Stock-based compensation expense	$ 14	$ (75)	$ 57	$ 56

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - RESTRICTED STOCK UNITS (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Oct. 31, 2018 USD ($) $ / shares shares
Restricted Stock Units (RSUs)
Summary of award activity
Beginning balance (in shares)	2,808,000
Granted (in shares)	1,710,000
Released (in shares)	(1,440,000)
Forfeited (in shares)	(222,000)
Ending balance (in shares)	2,856,000
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 41.18
Granted (in dollars per share) \| $ / shares	43.11
Released (in dollars per share) \| $ / shares	43.88
Forfeited (in dollars per share) \| $ / shares	40.98
Ending balance (in dollars per share) \| $ / shares	$ 41.03
Additional disclosures
Unrecognized compensation expense \| $	$ 78.5
Remaining weighted-average vesting period over which expense is expected to be recognized (in years)	1 year 292 days
RSUs, Excluding PSUs
Summary of award activity
Granted (in shares)	1,482,000

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - PERFORMANCE RESTRICTED STOCK UNITS (Details) - shares shares in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Restricted Stock Units (RSUs)
Stock-Based Compensation Plans
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 292 days
Beginning balance (in shares)	2,808
Granted (in shares)	1,710
Released (in shares)	(1,440)
Forfeited (in shares)	(222)
Ending balance (in shares)	2,856
Performance- based RSU's
Stock-Based Compensation Plans
Beginning balance (in shares)	506	438
Granted (in shares)	228	204
Released (in shares)	(139)	(50)
Forfeited (in shares)	(83)	(86)
Ending balance (in shares)	512	506

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - STOCK BONUS PROGRAM - (Details) - Stock Bonus Program - shares	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Stock-Based Compensation Plans
Vesting period for executive officers (in years)	1 year
Trailing period of average price of common stock to determine the number of shares to be issued (in days)	5 days
Stock Issued During Period, Shares, Issued for Services	19,000	21,000
Shares Granted In Respect of Discount	0	0
Shares Released In Respect of Discount	0	0
2019 Plan
Stock-Based Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	125,000
Discount from market price (as a percent)	15.00%

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - BONUS SHARE PROGRAM (Details) - USD ($) $ in Millions	Oct. 31, 2018	Jan. 31, 2018
Combined Stock Bonus Program and Bonus Share Program
Stock-Based Compensation Plans
Total accrued liability	$ 6.6	$ 9.2
2018 Plan \| Bonus Share Program
Stock-Based Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	300,000
2019 Plan \| Bonus Share Program
Stock-Based Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	300,000

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES - WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
Movement in Standard Product Warranty Accrual
Warranty liability, beginning of period	$ 551	$ 962
Provision charged (credited) to expenses	103	(84)
Warranty charges	(202)	(219)
Foreign currency translation and other	(11)	0
Warranty liability, end of period	$ 441	$ 659

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) $ in Millions	9 Months Ended
	Oct. 31, 2018 USD ($)
Loss Contingency, Information about Litigation Matters [Abstract]
Loss Contingency, Damages Sought, Value	$ 150.0

SEGMENT INFORMATION SEGMENT INFORMATION - SEGMENT REVENUE AND SEGMENT CONTRIBUTION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 303,983	$ 280,726	$ 899,517	$ 816,498
Operating Income (Loss)	33,670	17,812	70,683	12,373
Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	197,467	181,590	584,730	531,643
Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	106,516	99,136	314,787	284,855
Segment Amount \| Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	201,448	184,506	593,556	542,708
Operating Income (Loss)	79,593	70,768	225,154	195,756
Segment Amount \| Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	106,540	99,254	314,880	285,024
Operating Income (Loss)	29,193	23,160	74,964	62,402
Reconciling Items \| Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Segment Revenue Adjustments	(3,981)	(2,916)	(8,826)	(11,065)
Reconciling Items \| Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Segment Revenue Adjustments	$ (24)	$ (118)	$ (93)	$ (169)

SEGMENT INFORMATION SEGMENT INFORMATION - RECONCILATION OF SEGMENT CONTRIBUTION TO OPERATING INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Amortization of intangible assets	$ 13,500	$ 16,200	$ 41,600	$ 55,000
Stock-based compensation expense	16,595	15,966	50,509	50,453
Total reconciling items, net	159,074	151,509	490,196	471,243
Operating Income (Loss)	33,670	17,812	70,683	12,373
Segment Amount
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating Income (Loss)	108,786	93,928	300,118	258,158
Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Revenue Adjustments	4,005	3,034	8,919	11,234
Amortization of intangible assets	13,518	16,230	41,600	54,973
Stock-based compensation expense	16,595	15,966	50,509	50,453
Acquisition, integration, restructuring, and other unallocated expenses	1,413	2,736	7,017	15,103
Total reconciling items, net	75,116	76,116	229,435	245,785
Shared Support Expenses
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Shared Support Expenses	$ 39,585	$ 38,150	$ 121,390	$ 114,022

REVENUE RECOGNITION REVENUE RECOGNITION - POLICY INFORMATION (Details)	9 Months Ended
	Oct. 31, 2018
Revenue from Contract with Customer [Abstract]
Software Maintenance, Period	1 year

LONG-TERM DEBT - DEBT COVENANT (Details)	9 Months Ended
LONG-TERM DEBT - DEBT COVENANT (Details)	Oct. 31, 2018 numerator
2017 Revolving Credit Facility
Debt Instrument
Consolidated Total Debt to Consolidated EBITDA Ratio	4.50

SEGMENT INFORMATION SEGMENT INFORMATION - SEGMENT OVERVIEW (Details)	9 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
Number of Reportable Segments	2