0001166388-20-000118 | 10-Q | XBRL Viewer

Print Document View Excel Document

Cover Page - shares	6 Months Ended
Cover Page - shares	Jul. 31, 2020	Aug. 17, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2020
Document Transition Report	false
Entity File Number	001-34807
Entity Registrant Name	Verint Systems Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3200514
Entity Address, Address Line One	175 Broadhollow Road
Entity Address, City or Town	Melville,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	(631)
Local Phone Number	962-9600
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	VRNT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001166388
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		65,400,173

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Current Assets:
Cash and cash equivalents	$ 731,101	$ 379,146
Restricted cash and cash equivalents, and restricted bank time deposits	31,662	43,860
Short-term investments	82,443	20,215
Accounts receivable, net of allowance for doubtful accounts of $6.1 million and $5.3 million, respectively	309,355	382,435
Contract assets, net	60,387	64,961
Inventories	20,898	20,495
Prepaid expenses and other current assets	76,831	87,946
Total current assets	1,312,677	999,058
Property and equipment, net	113,394	116,111
Operating lease right-of-use assets	94,068	102,149
Goodwill	1,468,197	1,469,211
Intangible assets, net	172,246	197,764
Other assets	142,125	131,765
Total assets	3,302,707	3,016,058
Current Liabilities:
Accounts payable	69,638	71,604
Accrued expenses and other current liabilities	249,199	229,698
Current maturities of long-term debt	380,229	4,250
Contract liabilities	340,868	397,350
Total current liabilities	1,039,934	702,902
Long-term debt	603,875	832,798
Long-term contract liabilities	37,768	40,565
Operating lease liabilities	83,547	90,372
Other liabilities	101,453	106,984
Total liabilities	1,866,577	1,773,621
Preferred Stock - $0.001 par value; authorized 2,207,000 shares; Series A Preferred Stock; 200,000 shares issued and outstanding at July 31, 2020; no shares issued and outstanding at January 31, 2020; aggregate liquidation preference and current redemption value of $202,484 at July 31, 2020.	200,628	0
Commitments and Contingencies
Stockholders' Equity:
Common stock - $0.001 par value; authorized 120,000,000 shares. Issued 69,804,000 and 68,529,000 shares; outstanding 65,400,000 and 64,738,000 shares at July 31, 2020 and January 31, 2020, respectively.	70	68
Additional paid-in capital	1,689,388	1,660,889
Treasury stock, at cost - 4,404,000 and 3,791,000 shares at July 31, 2020 and January 31, 2020, respectively.	(208,124)	(174,134)
Accumulated deficit	(104,050)	(105,590)
Accumulated other comprehensive loss	(158,295)	(151,865)
Total Verint Systems Inc. stockholders' equity	1,218,989	1,229,368
Noncontrolling interests	16,513	13,069
Total stockholders' equity	1,235,502	1,242,437
Total liabilities, preferred stock, and stockholders' equity	$ 3,302,707	$ 3,016,058

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Allowance for doubtful accounts	$ 6,100	$ 5,300
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	2,207,000	2,207,000
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)	69,804,000	68,529,000
Common Stock, outstanding (in shares)	65,400,000	64,738,000
Treasury stock, at cost(in shares)	4,404,000	3,791,000
Series A Preferred Stock
Preferred stock, issued (in shares)	200,000	0
Preferred stock, outstanding (in shares)	200,000	0
Preferred stock, liquidation preference value	$ 202,484
Preferred stock, redemption value	$ 202,484

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Revenue:
Revenue	$ 309,109	$ 324,305	$ 596,404	$ 639,564
Cost of revenue:
Amortization of acquired technology	4,428	5,587	9,037	12,294
Total cost of revenue	98,099	116,441	200,425	230,629
Gross profit	211,010	207,864	395,979	408,935
Operating expenses:
Research and development, net	55,229	58,685	114,308	115,854
Selling, general and administrative	105,406	126,265	217,057	247,986
Amortization of other acquired intangible assets	8,058	7,639	16,123	15,352
Total operating expenses	168,693	192,589	347,488	379,192
Operating income	42,317	15,275	48,491	29,743
Other income (expense), net:
Interest income	839	1,687	1,856	3,113
Interest expense	(10,263)	(10,107)	(20,961)	(20,041)
Other (expense) income, net	(12,211)	909	(14,441)	119
Total other expense, net	(21,635)	(7,511)	(33,546)	(16,809)
Income before provision (benefit) for income taxes	20,682	7,764	14,945	12,934
Provision (benefit) for income taxes	10,095	(4,507)	8,333	(3,098)
Net income	10,587	12,271	6,612	16,032
Net income attributable to noncontrolling interests	2,093	1,713	4,132	3,898
Net income attributable to Verint Systems Inc.	8,494	10,558	2,480	12,134
Dividends on preferred stock	(2,484)	0	(2,484)	0
Net income (loss) attributable to Verint Systems Inc. common shares	$ 6,010	$ 10,558	$ (4)	$ 12,134
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ 0.09	$ 0.16	$ 0	$ 0.18
Diluted (in dollars per share)	$ 0.09	$ 0.16	$ 0	$ 0.18
Weighted-average common shares outstanding:
Basic (in shares)	64,954	66,272	64,670	65,870
Diluted (in shares)	65,849	67,519	64,670	67,338
Product
Revenue:
Revenue	$ 96,076	$ 109,983	$ 173,360	$ 214,207
Cost of revenue:
Cost of revenue	24,648	29,424	45,966	57,544
Service and support
Revenue:
Revenue	213,033	214,322	423,044	425,357
Cost of revenue:
Cost of revenue	$ 69,023	$ 81,430	$ 145,422	$ 160,791

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Net income	$ 10,587	$ 12,271	$ 6,612	$ 16,032
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation adjustments	18,624	(23,611)	(2,375)	(27,573)
(Provision) benefit for income taxes on net increase (decrease) from foreign exchange contracts and interest rate swap designated as hedges	(425)	790	1,123	1,084
Other comprehensive income (loss)	20,799	(25,725)	(6,469)	(30,129)
Comprehensive income (loss)	31,386	(13,454)	143	(14,097)
Comprehensive income attributable to noncontrolling interests	2,413	1,662	4,093	3,741
Comprehensive income (loss) attributable to Verint Systems Inc.	28,973	(15,116)	(3,950)	(17,838)
Foreign currency forward contracts
Other comprehensive income (loss), net of reclassification adjustments:
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, before tax	1,480	1,637	607	2,918
Interest Rate Swap
Other comprehensive income (loss), net of reclassification adjustments:
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, before tax	$ 1,120	$ (4,541)	$ (5,824)	$ (6,558)

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	Non-controlling Interests	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjustment Accumulated Deficit	Cumulative Effect, Period of Adoption, Adjustment Total Verint Systems Inc. Stockholders’ Equity
Balances (in shares) at Jan. 31, 2019		65,333,000
Beginning balances at Jan. 31, 2019	$ 1,260,804	$ 67	$ 1,586,266	$ (57,598)	$ (134,274)	$ (145,225)	$ 1,249,236	$ 11,568
Increase (Decrease) in Stockholders' Equity
Net (loss) income	3,761				1,576		1,576	2,185
Other comprehensive income (loss)	(4,404)					(4,298)	(4,298)	(106)
Stock-based-compensation- equity - classified awards	14,890		14,890				14,890
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)		448,000
Common stock issued for stock awards and stock bonuses	0
Treasury stock acquired (in shares)		(8,000)
Treasury stock acquired	(474)			(474)			(474)
Balances (in shares) at Apr. 30, 2019		65,773,000
Ending balances at Apr. 30, 2019	$ 1,274,577	$ 67	1,601,156	(58,072)	(132,698)	(149,523)	1,260,930	13,647
Accounting standards update [extensible list]	us-gaap:AccountingStandardsUpdate201613Member
Balances (in shares) at Jan. 31, 2019		65,333,000
Beginning balances at Jan. 31, 2019	$ 1,260,804	$ 67	1,586,266	(57,598)	(134,274)	(145,225)	1,249,236	11,568
Increase (Decrease) in Stockholders' Equity
Net (loss) income	16,032
Other comprehensive income (loss)	$ (30,129)
Treasury stock acquired (in shares)	(8,000)
Treasury stock acquired	$ (500)
Balances (in shares) at Jul. 31, 2019		66,771,000
Ending balances at Jul. 31, 2019	$ 1,287,978	$ 68	1,628,665	(58,072)	(122,140)	(175,197)	1,273,324	14,654
Accounting standards update [extensible list]	us-gaap:AccountingStandardsUpdate201613Member
Balances (in shares) at Jan. 31, 2019		65,333,000
Beginning balances at Jan. 31, 2019	$ 1,260,804	$ 67	1,586,266	(57,598)	(134,274)	(145,225)	1,249,236	11,568
Balances (in shares) at Jan. 31, 2020		64,738,000
Ending balances at Jan. 31, 2020	1,242,437	$ 68	1,660,889	(174,134)	(105,590)	(151,865)	1,229,368	13,069	$ (940)	$ (940)	$ (940)
Balances (in shares) at Apr. 30, 2019		65,773,000
Beginning balances at Apr. 30, 2019	1,274,577	$ 67	1,601,156	(58,072)	(132,698)	(149,523)	1,260,930	13,647
Increase (Decrease) in Stockholders' Equity
Net (loss) income	12,271				10,558		10,558	1,713
Other comprehensive income (loss)	(25,725)					(25,674)	(25,674)	(51)
Stock-based-compensation- equity - classified awards	17,966		17,966				17,966
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)		998,000
Common stock issued for stock awards and stock bonuses	9,544	$ 1	9,543				9,544
Distribution to noncontrolling interest	(655)							(655)
Balances (in shares) at Jul. 31, 2019		66,771,000
Ending balances at Jul. 31, 2019	1,287,978	$ 68	1,628,665	(58,072)	(122,140)	(175,197)	1,273,324	14,654
Balances (in shares) at Jan. 31, 2020		64,738,000
Beginning balances at Jan. 31, 2020	1,242,437	$ 68	1,660,889	(174,134)	(105,590)	(151,865)	1,229,368	13,069	(940)	(940)	(940)
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(3,975)				(6,014)		(6,014)	2,039
Other comprehensive income (loss)	(27,268)					(26,909)	(26,909)	(359)
Stock-based-compensation- equity - classified awards	15,029		15,029				15,029
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)		399,000
Common stock issued for stock awards and stock bonuses	1,846	$ 1	1,845				1,846
Exercises of stock options (in shares)		2,000
Exercises of stock options	12		12				12
Treasury stock acquired (in shares)		(613,000)
Treasury stock acquired	(33,990)			(33,990)			(33,990)
Distribution to noncontrolling interest	(245)							(245)
Balances (in shares) at Apr. 30, 2020		64,526,000
Ending balances at Apr. 30, 2020	1,192,906	$ 69	1,677,775	(208,124)	(112,544)	(178,774)	1,178,402	14,504
Balances (in shares) at Jan. 31, 2020		64,738,000
Beginning balances at Jan. 31, 2020	1,242,437	$ 68	1,660,889	(174,134)	(105,590)	(151,865)	1,229,368	13,069	$ (940)	$ (940)	$ (940)
Increase (Decrease) in Stockholders' Equity
Net (loss) income	6,612
Other comprehensive income (loss)	$ (6,469)
Treasury stock acquired (in shares)	(613,000)
Treasury stock acquired	$ (34,000)
Balances (in shares) at Jul. 31, 2020		65,400,000
Ending balances at Jul. 31, 2020	1,235,502	$ 70	1,689,388	(208,124)	(104,050)	(158,295)	1,218,989	16,513
Balances (in shares) at Apr. 30, 2020		64,526,000
Beginning balances at Apr. 30, 2020	1,192,906	$ 69	1,677,775	(208,124)	(112,544)	(178,774)	1,178,402	14,504
Increase (Decrease) in Stockholders' Equity
Net (loss) income	10,587				8,494		8,494	2,093
Other comprehensive income (loss)	20,799					20,479	20,479	320
Stock-based-compensation- equity - classified awards	13,420		13,420				13,420
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)		874,000
Common stock issued for stock awards and stock bonuses	1	$ 1					1
Preferred stock dividends	(1,589)		(1,589)				(1,589)
Reacquisition of equity component from convertible notes repurchases, net of taxes	(218)		(218)				(218)
Distribution to noncontrolling interest	(404)							(404)
Balances (in shares) at Jul. 31, 2020		65,400,000
Ending balances at Jul. 31, 2020	$ 1,235,502	$ 70	$ 1,689,388	$ (208,124)	$ (104,050)	$ (158,295)	$ 1,218,989	$ 16,513

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020	Jul. 31, 2020	Jan. 31, 2020	Jul. 31, 2019
Cash flows from operating activities:
Net income	$ 10,587	$ (3,975)	$ 12,271	$ 3,761	$ 6,612	$ 16,032
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					47,738	44,766
Stock-based compensation, excluding cash-settled awards					31,567	37,605
Change in fair value of future tranche right	13,610		0		13,610	0
Amortization of discount on convertible notes					6,400	6,163
Non-cash gains on derivative financial instruments, net					(550)	(728)
Other, net					250	3,305
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable					70,174	23,439
Contract assets					4,292	7,884
Inventories					(1,572)	(4,436)
Prepaid expenses and other assets					(1,982)	8,169
Accounts payable and accrued expenses					11,891	(8,291)
Contract liabilities					(57,753)	(24,460)
Other, net					6,054	(11,169)
Net cash provided by operating activities					136,731	98,279
Cash flows from investing activities:
Cash paid for business combinations, including adjustments, net of cash acquired					0	(49,258)
Purchases of property and equipment					(16,040)	(17,718)
Purchases of investments					(92,865)	(20,101)
Maturities and sales of investments					30,791	23,836
Cash paid for capitalized software development costs					(6,224)	(6,581)
Change in restricted bank time deposits, and other investing activities, net					15,850	3,807
Net cash used in investing activities					(68,488)	(66,015)
Cash flows from financing activities:
Proceeds from issuance of preferred stock and future tranche right, net of issuance costs					197,254	0
Proceeds from borrowings					155,000	0
Repayments of borrowings and other financing obligations					(3,794)	(3,194)
Payments to repurchase convertible notes					(13,032)	0
Payments of debt-related costs					(2,207)	(212)
Purchases of treasury stock					(36,836)	(474)
Distributions paid to noncontrolling interest					(649)	(655)
Payments of deferred purchase price and contingent consideration for business combinations (financing portion) and other financing activities					(11,834)	(22,601)
Net cash provided by (used in) financing activities					283,902	(27,136)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents					(796)	(1,890)
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents					351,349	3,238
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period		411,657		412,699	411,657	412,699	$ 412,699
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	763,006		415,937		763,006	415,937	411,657
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period to the condensed consolidated balance sheets:
Cash and cash equivalents								$ 731,101	$ 379,146	$ 388,546
Restricted cash and cash equivalents included in restricted cash and cash equivalents, and restricted bank time deposits								22,890		23,702
Restricted cash and cash equivalents included in other assets								9,015		3,689
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$ 763,006	$ 411,657	$ 415,937	$ 412,699	$ 763,006	$ 415,937	$ 412,699	$ 763,006	$ 411,657	$ 415,937

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jul. 31, 2020
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND 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. In a world of massive information growth, our solutions empower organizations with crucial, actionable insights and enable decision makers to anticipate, respond, and take action. Today, over 10,000 organizations in more than 180 countries, including over 85 percent of the Fortune 100, use Verint’s Actionable Intelligence solutions, deployed in the cloud and on-premises, to make more informed, timely, and effective decisions. Our Actionable Intelligence leadership is powered by innovative, enterprise-class software built with artificial intelligence, analytics, automation, and deep domain expertise established by working closely with some of the most sophisticated and forward-thinking organizations in the world. We believe we have one of the industry's strongest research and development (“R&D”) teams focused on actionable intelligence consisting of approximately 1,900 professionals. Our innovative solutions are backed-up by a strong IP portfolio with over 1,000 patents and patent applications worldwide across areas including data capture, artificial intelligence, machine learning, unstructured data analytics, predictive analytics and automation. On December 4, 2019, we announced our intention to separate into two independent publicly traded companies: one which will consist of our Customer Engagement Solutions business, and one which will consist of our Cyber Intelligence Solutions business. We expect to implement the separation through a pro-rata distribution of common stock of a new entity that will hold the Cyber Intelligence Solutions business to our stockholders (the “Spin-Off”) that is intended to be generally tax-free to our stockholders for U.S. federal income tax purposes. We currently expect to complete the Spin-Off shortly after the end of this fiscal year ending January 31, 2021, though this timeline may be impacted by the current business environment brought on by the COVID-19 pandemic. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Recent Developments” under Item 2 of this report for a more detailed discussion of the planned Spin-Off. On December 4, 2019, we also announced that Valor Parent LP (the “Apax Investor”), an affiliate of Apax Partners (“Apax”) would make an investment in us in an amount of up to $400.0 million. Under the terms of the Investment Agreement, dated as of December 4, 2019 (the “Investment Agreement”), the Apax Investor initially purchased $200.0 million of our Series A convertible preferred stock (“Series A Preferred Stock”), which closed on May 7, 2020. Shortly following the Spin-Off, the Apax Investor will purchase, subject to certain conditions, up to $200.0 million of Series B convertible preferred stock (“Series B Preferred Stock”) in the Company, as the entity holding the Customer Engagement Solutions business. Following the closing of the Series A investment, Apax’s ownership in us on an as-converted basis is approximately 5.5%. Following completion of the Spin-Off and assuming the issuance of the Series B Preferred Stock, Apax’s ownership in us on an as-converted basis will be between 11.5% and 15%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment. Headquartered in Melville, New York, we support our customers around the globe directly and with an extensive network of selling and support partners. Impact of COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The outbreak has reached all of the regions in which we do business, and governmental authorities around the world have implemented numerous measures attempting to contain and mitigate the effects of the virus, including travel bans and restrictions, border closings, quarantines, shelter-in-place orders, shutdowns, limitations or closures of non-essential businesses, and social distancing requirements. Companies around the world, including us, our customers, partners, and vendors, have implemented actions in response, including among others, office closings, site restrictions, and employee travel restrictions. The global spread of COVID-19 and actions taken in response have negatively affected us, our customers, partners, and vendors and caused significant economic and business disruption the extent and duration of which is not currently known. In response to these challenges, we quickly adjusted our operations to work from home and we believe our business continuity plan is working well. We are monitoring and assessing the impact of the COVID-19 pandemic daily, including recommendations and orders issued by government and public health authorities. We continue to work to help our customers meet their business continuity needs and help keep the world safe during this difficult time and are managing our operations with a view to resuming normal business activity as soon as possible. See Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Recent Developments” of this report for a more detailed discussion of the impact of COVID-19 on our business. 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, 2020 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 July 31, 2020 and 2019, and the condensed consolidated balance sheet as of July 31, 2020, 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, 2020 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2020. 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, 2020 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. 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. 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 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. In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts COVID-19 as of July 31, 2020 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Significant Accounting Policies There have been no material changes in our significant accounting policies during the six months ended July 31, 2020, as compared to the significant accounting policies described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2020. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company's financial instruments within the scope of this guidance primarily includes accounts receivable and contract assets. On February 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of ASU No. 2016-13 resulted in a $1.1 million increase in our allowance for expected credit losses related to accounts receivable and contract assets, a $0.2 million increase to deferred tax assets, and an impact of $0.9 million to our accumulated deficit. The new accounting standard did not have a material impact on our condensed consolidated financial statements, including accounting policies, given our limited historical write-off activity. In August 2018, the FASB issued ASU No. 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 requires customers in a hosting arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize and which costs to expense. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the condensed consolidated balance sheet as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the condensed consolidated income statement as the related fees of the arrangement. We adopted ASU No. 2018-15 prospectively to eligible costs incurred on or after February 1, 2020 and the implementation did not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 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. Since the standard affects only disclosure requirements, the adoption of the standard did not have an impact on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes, and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for interim and annual reporting periods beginning after December 15, 2020. We are currently reviewing this standard but do not expect that it will have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. This new standard will be effective for us in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We are currently assessing the impact of adopting this standard on our consolidated financial statements.

REVENUE RECOGNITION

6 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITIONWe derive our revenue primarily from the licensing of our software products and related services and support based on when control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-

added tax and other transaction taxes imposed on the related transaction, including mandatory government charges that are passed through to our customers.

We determine revenue recognition through the following five steps:

•Identification of the contract, or contracts, with a customer

•Identification of the performance obligations in the contract

•Determination of the transaction price

•Allocation of the transaction price to the performance obligations in the contract

•Recognition of revenue when, or as, performance obligations are satisfied.

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

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 we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions.

For our Customer Engagement segment:

•Recurring revenue primarily consists of cloud revenue and initial and renewal support revenue.

◦Cloud revenue consists primarily of software as a service (“SaaS”) revenue with some optional managed services revenue.

◦SaaS revenue consists predominately of bundled SaaS (software with standard managed services) with some unbundled SaaS (software licensing rights sold separately from managed services and accounted for as term-based licenses). Unbundled SaaS can be deployed in the cloud either by us or a cloud partner.

◦Bundled SaaS revenue is recognized over time and unbundled SaaS revenue is recognized at a point in time. Unbundled SaaS contracts are eligible for renewal after the initial fixed term, which in most cases is between a one- and three-year time frame.

•Nonrecurring revenue primarily consists of our perpetual licenses, consulting, implementation and installation services, and training.

For our Cyber Intelligence segment:

•Recurring revenue primarily consists of initial and renewal support, subscription software licenses, and SaaS in certain limited transactions.

•Nonrecurring revenue primarily consists of our perpetual licenses, long-term projects including software customizations 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 July 31, 2020										Three Months Ended July 31, 2019
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	45,891	$	50,185	$	96,076	$	54,468	$	55,515	$	109,983
Service and support	158,189		54,844		213,033		156,968		57,354		214,322
Total revenue	$	204,080	$	105,029	$	309,109	$	211,436	$	112,869	$	324,305

Revenue by recurrence:
Recurring revenue	$	139,267	$	51,651	$	190,918	$	129,332	$	46,171	$	175,503
Nonrecurring revenue	64,813		53,378		118,191		82,104		66,698		148,802
Total revenue	$	204,080	$	105,029	$	309,109	$	211,436	$	112,869	$	324,305


	Six Months Ended July 31, 2020										Six Months Ended July 31, 2019
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	79,888	$	93,472	$	173,360	$	108,470	$	105,737	$	214,207
Service and support	310,057		112,987		423,044		310,061		115,296		425,357
Total revenue	$	389,945	$	206,459	$	596,404	$	418,531	$	221,033	$	639,564

Recurring Revenue
Recurring revenue	$	268,337	$	107,689	$	376,026	$	252,690	$	92,988	$	345,678
Nonrecurring revenue	121,608		98,770		220,378		165,841		128,045		293,886
Total revenue	$	389,945	$	206,459	$	596,404	$	418,531	$	221,033	$	639,564

The following table provides a further disaggregation of revenue for our Customer Engagement segment.


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Customer Engagement revenue
Recurring revenue
Bundled SaaS revenue	$	35,818	$	27,208	$	69,211	$	54,412
Unbundled SaaS revenue	10,062		6,441		15,534		12,693
Optional managed services revenue	14,328		14,164		28,460		27,793
Total cloud revenue	60,208		47,813		113,205		94,898
Support revenue	79,059		81,519		155,132		157,792
Total recurring revenue	139,267		129,332		268,337		252,690
Nonrecurring revenue
Perpetual revenue	35,829		48,028		64,354		95,630
Professional services revenue	28,984		34,076		57,254		70,211
Total nonrecurring revenue	64,813		82,104		121,608		165,841
Total Customer Engagement revenue	$	204,080	$	211,436	$	389,945	$	418,531

Contract Balances

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


(in thousands)	July 31, 2020		January 31, 2020
Accounts receivable, net	$	309,355	$	382,435
Contract assets, net	$	60,387	$	64,961
Long-term contract assets (included in Other assets)	$	13,606	$	1,358
Contract liabilities	$	340,868	$	397,350
Long-term contract liabilities	$	37,768	$	40,565

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 multi-year unbundled SaaS contracts and arrangements where our 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 asset impairment charges related to contract assets were immaterial in the six months ended July 31, 2020 and 2019. There are two customers in our Cyber Intelligence segment that accounted for a combined $65.3 million and $51.7 million of our aggregated accounts receivable and contract assets at July 31, 2020 and January 31, 2020, respectively. These amounts result from both direct and indirect contracts with 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 six months ended July 31, 2020 and 2019 from amounts included in contract liabilities at the beginning of each period was $240.5 million and $231.4 million, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less.

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. The timing and amount of revenue recognition for our remaining performance obligations is influenced by several factors, including seasonality, the timing of support 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.

The following table provides information about remaining performance obligations for each of our operating segments:


	July 31, 2020										January 31, 2020
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
RPO:
Expected to be recognized within 1 year	$	362,764	$	383,983	$	746,747	$	374,982	$	356,677	$	731,659
Expected to be recognized in more than 1 year	123,779		170,626		294,405		117,497		225,056		342,553
Total RPO	$	486,543	$	554,609	$	1,041,152	$	492,479	$	581,733	$	1,074,212

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

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

6 Months Ended

Jul. 31, 2020

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 six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	10,587	$	12,271	$	6,612	$	16,032
Net income attributable to noncontrolling interests	2,093		1,713		4,132		3,898
Net income attributable to Verint Systems Inc.	8,494		10,558		2,480		12,134
Dividends on preferred stock	(2,484)		—		(2,484)		—
Net income (loss) attributable to Verint Systems Inc. for basic net income per common share	6,010		10,558		(4)		12,134
Dilutive effect of dividends on preferred stock	—		—		—		—
Net income (loss) attributable to Verint Systems Inc. for diluted net income per common share	$	6,010	$	10,558	$	(4)	$	12,134
Weighted-average shares outstanding:
Basic	64,954		66,272		64,670		65,870
Dilutive effect of employee equity award plans	895		1,247		—		1,468
Dilutive effect of 1.50% convertible senior notes	—		—		—		—
Dilutive effect of warrants	—		—		—		—
Dilutive effect of assumed conversion of preferred stock	—		—		—		—
Diluted	65,849		67,519		64,670		67,338
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic	$	0.09	$	0.16	$	—	$	0.18
Diluted	$	0.09	$	0.16	$	—	$	0.18

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 July 31,			Six Months Ended July 31,
(in thousands)	2020	2019	2020	2019
Common shares excluded from calculation:
Stock options and restricted stock-based awards	392	1,817	1,329	1,221
1.50% convertible senior notes	6,137	6,205	6,171	6,205
Warrants	6,205	6,205	6,205	6,205
Series A Preferred Stock	3,495	—	1,747	—

In periods for which we report a net loss attributable to Verint Systems Inc. common shares, 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 outstanding 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”.

On December 4, 2019, we announced that Valor Parent LP, an affiliate of Apax Partners, would invest up to $400.0 million in us, in the form of convertible preferred stock. On May 7, 2020, the initial purchase of $200.0 million of our Series A Preferred Stock closed. The weighted-average common shares underlying the assumed conversion of the Series A Preferred Stock, on an as-converted basis, were excluded from the calculation of diluted net income per common share as their effect would have been

anti-dilutive. Further details regarding the convertible preferred stock investment appear in Note 9, “Convertible Preferred Stock”.

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

6 Months Ended

Jul. 31, 2020

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 July 31, 2020 and January 31, 2020:


	July 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	386,286	$	—	$	—	$	386,286
Money market funds	344,815		—		—		344,815
Total cash and cash equivalents	$	731,101	$	—	$	—	$	731,101

Short-term investments:
Bank time deposits	$	82,443	$	—	$	—	$	82,443
Total short-term investments	$	82,443	$	—	$	—	$	82,443


	January 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	379,057	$	—	$	—	$	379,057
Money market funds	89		—		—		89
Total cash and cash equivalents	$	379,146	$	—	$	—	$	379,146

Short-term investments:
Bank time deposits	$	20,215	$	—	$	—	$	20,215
Total short-term investments	$	20,215	$	—	$	—	$	20,215

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 six months ended July 31, 2020 and 2019, proceeds from maturities and sales of short-term investments were $30.8 million and $23.8 million, respectively.

BUSINESS COMBINATIONS

6 Months Ended

Jul. 31, 2020

Business Combinations [Abstract]

BUSINESS COMBINATIONS

Six Months Ended July 31, 2020

We did not complete any business combinations during the six months ended July 31, 2020.

Year Ended January 31, 2020

During the year ended January 31, 2020, we completed four business combinations:

•On February 1, 2019, we completed the acquisition of a SaaS workforce optimization company focused on the small and medium-sized business (“SMB”) market as part of our strategy to expand our SMB portfolio. This company has been integrated into our Customer Engagement segment.

•On July 25, 2019, we completed the acquisition of a SaaS company focused on cloud-based knowledge management solutions as part of our strategy to add additional artificial intelligence and machine learning capabilities into our portfolio. This company has been integrated into our Customer Engagement segment.

•On December 18, 2019, we completed the acquisition of two software companies under common control focused on multi source intelligence and fusion analytics. These companies are being integrated into our Cyber Intelligence segment.

•On January 13, 2020, we completed the acquisition of a SaaS based company providing web and mobile session replay solutions. This company has been integrated into our Customer Engagement segment.

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

The combined consideration for these business combinations was approximately $89.3 million consisted of (i) $76.2 million of combined cash paid at closings or shortly thereafter, partially offset by $2.4 million of cash acquired, resulting in net cash consideration at closing of $73.8 million; and (ii) the fair value of the contingent consideration arrangements described below of $15.3 million; offset by (iii) $2.1 million of other purchase price adjustments. For three of the business combinations, we agreed to make potential additional cash payments to the respective former shareholders aggregating up to approximately $23.5 million, contingent upon the achievement of certain performance targets over periods extending through January 2022, the fair value of which was estimated to be $15.3 million at the acquisition date. 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 $50.4 million of goodwill associated with these business combinations, $39.1 million and $11.3 million was assigned to our Customer Engagement and Cyber Intelligence segments, respectively, and $15.7 million of which is deductible for income tax purposes.

Revenue and net income (loss) attributable to these acquisitions for the year ended January 31, 2020 were not material.

Transaction and related costs, consisting primarily of professional fees and integration expenses, directly related to these acquisitions, totaled $0.3 million and $2.1 million for the three months ended July 31, 2020 and 2019, respectively, and $1.4 million and $3.1 million for the six months ended July 31, 2020 and 2019, respectively. All transaction and related costs were expensed as incurred and are included in selling, general and administrative expenses.

The purchase price allocations for the business combinations completed subsequent to July 31, 2019 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, goodwill, 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, 2020 including adjustments identified subsequent to the valuation date, none of which were material:


(in thousands)	Amount
Components of Purchase Prices:
Cash	$	76,198
Fair value of contingent consideration	15,253
Other purchase price adjustments	(2,137)
Total purchase prices	$	89,314

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	3,950
Other current assets, including cash acquired	14,394
Other assets	6,556
Current and other liabilities	(8,531)
Contract liabilities - current and long-term	(3,794)
Deferred income taxes	(4,061)
Net tangible assets	8,514
Identifiable intangible assets:
Customer relationships	13,299
Developed technology	14,443
Trademarks and trade names	1,367
Non-compete agreements	1,307
Total identifiable intangible assets	30,416
Goodwill	50,384
Total purchase prices allocation	$	89,314

For these acquisitions, customer relationships, developed technology, trademarks and trade names, and non-compete agreements were assigned estimated useful lives of from five years to nine years, four years to five years, and three years to five years, and three years, respectively, the weighted average of which is approximately 6.1 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 July 31, 2020 and 2019, we recorded a charge of $1.1 million and a benefit of $0.8 million, respectively, and for the six months ended July 31, 2020 and 2019, we recorded a benefit of $3.7 million and a charge of $0.4 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 $22.0 million at July 31, 2020, of which $14.0 million was recorded within accrued expenses and other current liabilities, and $8.0 million was recorded within other liabilities.

Payments of contingent consideration earned under these agreements were $14.3 million and $17.4 million for the three months ended July 31, 2020 and 2019, respectively, and $17.4 million and $23.7 million for the six months ended July 31, 2020 and 2019, respectively.

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets consisted of the following as of July 31, 2020 and January 31, 2020:


	July 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	464,580	$	(341,559)	$	123,021
Acquired technology	294,682		(251,201)		43,481
Trade names	12,881		(8,178)		4,703
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(266)		1,041
Total intangible assets	$	777,890	$	(605,644)	$	172,246


	January 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	465,130	$	(328,069)	$	137,061
Acquired technology	294,841		(241,585)		53,256
Trade names	12,957		(6,783)		6,174
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(34)		1,273
Total intangible assets	$	778,675	$	(580,911)	$	197,764

We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic to assess whether a triggering event had occurred that would result in a potential impairment of our indefinite-lived intangible assets. Based on this assessment, we concluded that a triggering event has not occurred which would require further impairment testing to be performed.

The following table presents net acquisition-related intangible assets by reportable segment as of July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
Customer Engagement	$	165,522	$	189,896
Cyber Intelligence	6,724		7,868
Total	$	172,246	$	197,764

Total amortization expense recorded for acquisition-related intangible assets was $12.5 million and $13.2 million for the three months ended July 31, 2020 and 2019, respectively, and $25.2 million and $27.6 million for the six months ended July 31, 2020 and 2019, 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
2021 (remainder of year)	$	24,721
2022	46,503
2023	38,480
2024	28,235
2025	11,864
2026 and thereafter	22,443
Total	$	172,246

Goodwill activity for the six months ended July 31, 2020, in total and by reportable segment, was as follows:


			Reportable Segment
(in thousands)	Total		Customer Engagement		Cyber Intelligence
Six Months Ended July 31, 2020:
Goodwill, gross, at January 31, 2020	$	1,536,076	$	1,367,111	$	168,965
Accumulated impairment losses through January 31, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2020	1,469,211		1,311,068		158,143
Foreign currency translation and other	(657)		(386)		(271)
Business combinations, including adjustments to prior period acquisitions	(357)		—		(357)
Goodwill, net, at July 31, 2020	$	1,468,197	$	1,310,682	$	157,515

Balance at July 31, 2020:
Goodwill, gross, at July 31, 2020	$	1,535,062	$	1,366,725	$	168,337
Accumulated impairment losses through July 31, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at July 31, 2020	$	1,468,197	$	1,310,682	$	157,515

We evaluated whether there has been a change in circumstances as of July 31, 2020 and as of the date of this filing in response to the economic impacts seen globally from COVID-19. The valuation methodology to determine the fair value of the reporting units is sensitive to management's forecasts of future revenue, profitability and market conditions. At this time, the impact of COVID-19 on our forecasts is uncertain and increases the subjectivity that will be involved in evaluating goodwill for potential impairment. We do expect declines in our reporting unit fair values as a result of delayed or reduced demand for our products and services, driving lower revenue and operating income across our businesses. However, given the significant difference between the reporting unit fair values and their carrying values in the most recent quantitative analyses completed as of November 1, 2019, as well as expected long-term recovery within all reporting units, management does not believe that these events were severe enough to result in an impairment trigger. We will continue to monitor the environment to determine whether the impacts to our reporting units represent an event or change in circumstances that may trigger a need to assess for impairment.

LONG-TERM DEBT

6 Months Ended

Jul. 31, 2020

Long-term Debt, Unclassified [Abstract]

LONG-TERM DEBT

The following table summarizes our long-term debt at July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
1.50% Convertible Senior Notes	$	386,887	$	400,000
June 2017 Term Loan	412,250		414,375
Borrowings under 2017 Revolving Credit Facility	200,000		45,000
Less: Unamortized debt discounts and issuance costs	(15,033)		(22,327)
Total debt	984,104		837,048
Less: current maturities	380,229		4,250
Long-term debt	$	603,875	$	832,798

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 a prior credit agreement.

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. We currently expect to refinance the Notes at or prior to maturity with new convertible notes or other debt.

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. 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 July 31, 2020, 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, a component of stockholder’s equity.

During the three months ended July 31, 2020, we repurchased $13.1 million principal amount of our Notes (the “Repurchased Notes”) in open market transactions for an aggregate of $13.0 million in cash. As a result, we recorded a debt extinguishment loss of $0.1 million, representing the difference between the fair value of the liability component and carrying value of the Repurchased Notes at the repurchase dates. The remaining cash payments were allocated to the reacquisition of the equity component of the Repurchased Notes and were recorded as a charge to additional paid-in capital. The carrying amount of the equity component, net of issuance costs, was $78.0 million at July 31, 2020, inclusive of a $0.2 million reduction resulting from the repurchases during this period.

As of July 31, 2020, the carrying value of the debt component was $375.0 million, which is net of unamortized debt discount and issuance costs of $10.9 million and $1.0 million, respectively. Including the impact of the debt discount and related deferred debt issuance costs, the effective interest rate on the Notes was approximately 5.31% at July 31, 2020. If all Notes outstanding at July 31, 2020 were converted, it would result in the issuance of approximately 6,002,000 shares of common stock.

Based on the closing market price of our common stock on July 31, 2020, the if-converted value of the Notes was less than the aggregate principal amount of the Notes.

As the Notes are due June 1, 2021, they are classified as current maturities of long-term debt on our condensed consolidated balance sheet as of July 31, 2020.

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 July 31, 2020, we had not purchased any shares of our common stock under the Note Hedges.

The Note repurchases executed during the three months ended July 31, 2020 described above did not change the number of common shares subject to the Note Hedges. However, since a Note conversion is a prerequisite to exercising the call right under the Note Hedges, the number of common shares subject to call under the Note Hedges was effectively reduced since the repurchased Notes can no longer be converted.

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 July 31, 2020, 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

2017 Credit Agreement

On June 29, 2017, we entered into a credit agreement (the “2017 Credit Agreement”) with certain lenders and terminated a 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, unless such outstanding Notes are cash collateralized pursuant to the 2020 Amendment to the 2017 Credit Agreement, as further described below.

The majority of the proceeds from the 2017 Term Loan were used to repay all outstanding terms loans under our prior credit agreement.

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.

On June 8, 2020, we entered into a second amendment to the 2017 Credit Agreement (the “2020 Amendment”). Pursuant to the 2020 Amendment, we are permitted to effect the previously announced Spin-Off of our Cyber Intelligence business within the parameters set forth in the 2017 Credit Agreement, as amended, and our Notes will not be deemed to be outstanding if such Notes are cash collateralized in accordance with the 2017 Credit Agreement, as amended, for purposes of the determination of the maturity dates of the 2017 Term Loan and the 2017 Revolving Credit Facility discussed above. We currently intend to cash collateralize, or otherwise refinance or repurchase, the Notes prior to their maturity.

As of July 31, 2020, the interest rate on the 2017 Term Loan was 2.17%. 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 2.37% at July 31, 2020. As of January 31, 2020, the interest rate on 2017 Term Loan was 3.85%.

Borrowings under the 2017 Revolving Credit Facility were $200.0 million at July 31, 2020, which is included in long-term debt on our condensed consolidated balance sheet. For borrowings 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 July 31, 2020, the weighted average interest rate on our revolving credit facility borrowings was 2.17%. In addition, we are required to pay a commitment fee with respect to unused availability under the 2017 Revolving Credit Facility at rates per annum determined by reference to our Leverage Ratio. The proceeds of borrowings under the 2017 Revolving Credit Facility were used to fund a portion of our stock repurchase program or will be used for general corporate purposes. Please refer to Note 9, “Stockholders’ Equity”, for more information regarding the stock repurchase program.

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 and Amendment 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. We incurred $2.1 million of debt modification costs related to the 2020 Amendment, $1.2 million of which were expensed, and $0.9 million of which were deferred (comprised of $0.5 million associated with the 2017 Term Loan, and $0.4 million associated with the 2017 Revolving Credit Facility), and are being amortized along with the existing unamortized debt issuance costs. 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 July 31, 2020, future scheduled principal payments on the 2017 Term Loan were as follows:


(in thousands)
Years Ending January 31,	Amount
2021 (remainder of year)	$	2,125
2022	4,250
2023	4,250
2024	4,250
2025	397,375
Total	$	412,250

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 six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	1,486	$	1,500	$	2,986	$	3,000
Amortization of debt discount	3,174		3,102		6,400		6,163
Amortization of deferred debt issuance costs	300		292		604		581
Total Interest Expense - 1.50% Convertible Senior Notes	$	4,960	$	4,894	$	9,990	$	9,744

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	3,463	$	4,730	$	7,976	$	9,375
Impact of interest rate swap	1,121		—		1,712		—
Amortization of debt discounts	19		17		37		33
Amortization of deferred debt issuance costs	439		401		830		775
Total Interest Expense - Borrowings under Credit Agreements	$	5,042	$	5,148	$	10,555	$	10,183

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION

6 Months Ended

Jul. 31, 2020

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 July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
Raw materials	$	10,461	$	9,628
Work-in-process	5,525		4,749
Finished goods	4,912		6,118
Total inventories	$	20,898	$	20,495

Condensed Consolidated Statements of Operations

Other (expense) income, net consisted of the following for the three and six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Foreign currency gains (losses), net	$	3,032	$	774	$	(222)	$	(412)
(Losses) gains on derivative financial instruments, net	(463)		179		551		728
Change in fair value of future tranche right	(13,610)		—		(13,610)		—
Other, net	(1,170)		(44)		(1,160)		(197)
Total other (expense) income, net	$	(12,211)	$	909	$	(14,441)	$	119

Please refer to Note 9, “Convertible Preferred Stock” and Note 12, “Fair Value Measurements” for additional information regarding the future tranche right.

Condensed Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the six months ended July 31, 2020 and 2019:


	Six Months Ended July 31,
(in thousands)	2020		2019
Cash paid for interest	$	14,022	$	12,410
Cash payments of income taxes, net	$	9,684	$	16,419
Cash payments for operating leases	$	14,234	$	13,688
Non-cash investing and financing transactions:
Liabilities for contingent consideration in business combinations, including measurement period adjustments	$	—	$	5,200
Series A Preferred Stock dividends declared	$	1,589	$	—
Finance leases of property and equipment	$	841	$	377
Accrued but unpaid purchases of property and equipment	$	2,020	$	4,505
Inventory transfers to property and equipment	$	575	$	463

CONVERTIBLE PREFERRED STOCK	6 Months Ended
CONVERTIBLE PREFERRED STOCK	Jul. 31, 2020
Equity [Abstract]
CONVERTIBLE PREFERRED STOCK	CONVERTIBLE PREFERRED STOCK On December 4, 2019, we entered into an Investment Agreement with the Apax Investor, whereby, subject to certain closing conditions, the Apax Investor has agreed to make an investment in us in an amount up to $400.0 million as follows: •On May 7, 2020, (the “Series A Closing Date”) we issued a total of 200,000 shares of our Series A Convertible Perpetual Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), pursuant to a certificate of designation of preferences, rights, and limitations (the “Series A Certificate of Designation”) filed with the Delaware Secretary of State, for an aggregate purchase price of $200.0 million, or $1,000 per share (the “Series A Private Placement”) to the Apax Investor. In connection therewith, we incurred direct and incremental costs of $2.7 million, including financial advisory fees, closing costs, legal fees and other offering-related costs. These direct and incremental costs reduced the carrying amount of the Series A Preferred Stock. •Upon completion of the Spin-Off and certain customary closing conditions, we will issue up to 200,000 shares of Series B Convertible Perpetual Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock” and, together with the Series A Preferred Stock, the “Preferred Stock”) at a purchase price of $1,000 per share (the “Series B Private Placement”) to the Apax Investor, subject to certain conditions. The closing of the Series B Private Placement (the “Series B Closing Date”) is contingent on, among other conditions, completion of the Spin-Off and the respective enterprise values of our Customer Engagement Solutions business and Cyber Intelligence Solutions business at the time of the Spin-Off being above a specified floor, as well as satisfaction or waiver of certain customary closing conditions. The closing of the Series B Private Placement is expected to occur shortly after the consummation of the Spin-Off and determination of the relative enterprise values of the two businesses. Voting Rights Holders of the Series A Preferred Stock have the right to vote on matters submitted to a vote of the holders of our common stock, par value $0.001 per share (the “Common Stock”), on an as-converted basis; however, in no event will the holders of Preferred Stock have the right to vote shares of the Preferred Stock on an as-converted basis in excess of 19.9% of the voting power of the Common Stock outstanding immediately prior to December 4, 2019. Dividends and Liquidation Rights The Series A Preferred Stock ranks senior to the shares of our Common Stock, with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of our affairs. Shares of Series A Preferred Stock have a liquidation preference of the greater of $1,000 per share or the amount that would be received if the shares are converted at the then applicable conversion price at the time of such liquidation. Holders of the Series A Preferred Stock are entitled to a cumulative dividend at a rate of 5.2% per annum until the 48-month anniversary of the Series A Closing Date and thereafter at a rate of 4.0% per annum. Dividends on the Series A Preferred Stock are cumulative and payable semi-annually in arrears in cash. All dividends that are not paid in cash will remain accumulated dividends with respect to each share of Series A Preferred Stock. The applicable dividend rate is subject to increase (i) to 6.0% per annum in the event the number of shares of Common Stock into which the Preferred Stock could be converted exceeds 19.9% of the voting power of outstanding Common Stock on the Series A Closing Date (unless we obtain shareholder approval of the issuance of Common Stock upon conversion of the Preferred Stock) and (ii) by 1.0% each year, up to a maximum dividend rate of 10.0% per annum, in the event we fail to satisfy our obligations to redeem the Series A Preferred Stock in specified circumstances. As of July 31, 2020, we had declared and accrued dividends of $1.6 million associated with the Series A Preferred Stock. Conversion The Series A Preferred Stock is convertible into Common stock at the election of the holder, subject to certain conditions including conditions associated with the Spin-Off, at an initial conversion price of $53.50 per share. Assuming completion of the Spin-Off, the Series A Preferred Stock will not participate in the Spin-Off distribution of the shares of the company holding our Cyber Intelligence Solutions business, and instead, the conversion price of the Series A Preferred Stock will be adjusted based on the ratio of the trading prices of the two post-Spin-Off companies over a short period following the Spin-Off, subject to a collar. As of July 31, 2020, the maximum number of shares of Common Stock that could be required to be issued upon conversion of the outstanding shares of Series A Preferred Stock was 3.7 million shares. At any time after 36 months following the Series A Closing Date, we will have the option to require that all of the then-outstanding shares of Series A Preferred Stock convert into Common Stock if the volume-weighted average price per share of the Common Stock for at least 30 trading days in any 45 consecutive trading day period exceeds 175% of the then-applicable conversion price of the Series A Preferred Stock (a “Mandatory Conversion”). We may redeem any or all of the Series A Preferred Stock for cash at any time after the 72-month anniversary of the Series A Closing Date at a redemption price equal to 100% of the liquidation preference of the shares of the Series A Preferred Stock, plus any accrued and unpaid dividends to, but excluding, the redemption date, plus a make-whole amount designed to allow the Apax Investor to earn a total 8.0% internal rate of return on such shares. The Apax Investor has agreed to restrictions on its ability to dispose of shares of the Series A Preferred Stock until the earlier of (1) the 36-month anniversary of the Series A Closing Date or (2) the 24-month anniversary of the consummation of the Spin-Off (the “Preferred Stock Restricted Period”). Following the Preferred Stock Restricted Period, the Series A Preferred Stock may not be sold or transferred without the prior written consent of the Company. The Apax Investor has also agreed to restrictions on its ability to dispose of the Common Stock issued upon conversion of the Series A Preferred Stock. The Common Stock may not be disposed of until the earlier of (1) the 12-month anniversary of consummation of the Spin-Off or (2) the 24-month anniversary of the Series A Closing Date. These restrictions do not apply to certain transfers to one or more permitted co-investors or transfers or pledges of the Series A Preferred Stock or Common Stock pursuant to the terms of specified margin loans to be entered into by the Apax Investor as well as transfers effected pursuant to a merger, consolidation, or similar transaction consummated by us and transfers that are approved by our board of directors. At any time after the 102-month anniversary of the Series A Closing Date or upon the occurrence of a change of control triggering event (as set forth in the Series A Certificate of Designation), the holders of the Series A Preferred Stock will have the right to cause us to redeem all of the outstanding shares of Series A Preferred Stock for cash at a redemption price equal to 100% of the liquidation preference of the shares of Series A Preferred Stock, plus any accrued and unpaid dividends to, but excluding, the redemption date. Therefore, the Series A Preferred Stock has been classified as mezzanine equity on our condensed consolidated balance sheet as of July 31, 2020, separate from permanent equity, as the potential required repurchase of the Series A Preferred Stock, however remote in likelihood, is not solely under our control. As of July 31, 2020, the Series A Preferred Stock is not redeemable, and we have concluded that it is currently not probable of becoming redeemable, including from the occurrence of a change in control triggering event. The holders’ redemption rights which occur at the 102-month anniversary of the Series A Closing Date are not considered probable because there is a more than remote likelihood that the Mandatory Conversion may occur prior to such redemption rights. We therefore did not adjust the carrying amount of the Series A Preferred Stock to its current redemption amount, which was its liquidation preference, at July 31, 2020 plus accrued and unpaid dividends. As of July 31, 2020, the stated value of the Series A Preferred Stock liquidation preference was $200.0 million and cumulative, unpaid dividends on the Series A Preferred Stock were $2.5 million. Future Tranche Right We have determined that our obligation to issue and the Apax Investor’s obligation to purchase up to 200,000 shares of the Series B Preferred Stock upon the completion of the Spin-Off and other customary closing conditions (the “Future Tranche Right”) meets the definition of a freestanding financial instrument as the Future Tranche Right is legally detachable and separately exercisable from the Series A Preferred Stock. Since the Future Tranche Right is subject to fair value accounting, we allocated the proceeds from the issuance of the Series A Preferred Stock to the Future Tranche Right based upon its fair value at the date of issuance, with the remaining proceeds being allocated to the Series A Preferred Stock. The Future Tranche Right is remeasured at fair value each reporting period until settlement, and changes in its fair value are recognized as a component of other income (expense), net on the condensed consolidated statement of operations. At the Series A Closing Date, the Future Tranche Right was recorded as an asset of $3.4 million, as the purchase price of the Series B Preferred Stock was greater than its estimated fair value at the expected settlement date. This resulted in a $203.4 million carrying value, before direct and incremental issuance costs, for the Series A Preferred Stock. At July 31, 2020, the fair value of the Future Tranche Right was a liability of $10.2 million, due primarily to declining credit market interest rates associated with worsened and uncertain economic conditions occurring during the period. The $13.6 million change in fair value of the Future Tranche Right was recorded as an expense for the three months ended July 31, 2020 within other (expense) income, net. The $10.2 million fair value of the Future Tranche Right is included within accrued expenses and other liabilities on our condensed consolidated balance sheet at July 31, 2020. Please refer to Note 12, “Fair Value Measurements” for additional information regarding valuations of the Future Tranche Right.

STOCKHOLDERS' EQUITY

6 Months Ended

Jul. 31, 2020

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 six months ended July 31, 2020 and 2019. Under the terms of our 2017 Credit Agreement, we are subject to certain restrictions on declaring and paying dividends on our common stock.

Stock Repurchase Program

On December 4, 2019, we announced that our board of directors had authorized a stock repurchase program whereby we may repurchase up to $300.0 million of common stock over the period ending on February 1, 2021. We made $34.0 million in repurchases under the program during the six months ended July 31, 2020 and $116.1 million of repurchases during the year ended January 31, 2020. Due to the uncertainty surrounding the impact of the COVID-19 pandemic, we will consider further repurchases under the stock repurchase program based on economic and market conditions as they evolve.

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 six months ended July 31, 2020, we repurchased approximately 613,000 shares of treasury stock for a cost of $34.0 million under the share repurchase program described above. During the six months ended July 31, 2019, we repurchased approximately 8,000 shares of treasury stock for a cost of $0.5 million to facilitate income tax withholding and payment requirements upon vesting of equity awards.

At July 31, 2020, we held approximately 4,404,000 shares of treasury stock with a cost of $208.1 million. At January 31, 2020, we held approximately 3,791,000 shares of treasury stock with a cost of $174.1 million.

Issuance of Convertible Preferred Stock

On December 4, 2019, in conjunction with the planned separation of our businesses into two independent publicly traded companies, we announced that an affiliate of Apax Partners would invest up to $400.0 million in us, in the form of convertible preferred stock. Under the terms of the Investment Agreement, the Apax Investor initially purchased $200.0 million of our Series A Preferred Stock, which closed on May 7, 2020. Please refer to Note 9, “Convertible Preferred Stock” for additional information regarding the closing of the initial tranche.

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 six months ended July 31, 2020:


(in thousands)	Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges		Unrealized Loss on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive income (loss) at January 31, 2020	$	626	$	(10,528)	$	(141,963)	$	(151,865)
Other comprehensive income (loss) before reclassifications	496		(5,940)		(2,336)		(7,780)
Amounts reclassified out of accumulated other comprehensive income (loss)	(11)		(1,339)		—		(1,350)
Net other comprehensive income (loss)	507		(4,601)		(2,336)		(6,430)
Accumulated other comprehensive income (loss) at July 31, 2020	$	1,133	$	(15,129)	$	(144,299)	$	(158,295)

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 months ended July 31, 2020 and 2019 were as follows:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019		Location
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	2	$	—	$	(1)	$	(72)	Cost of product revenue
	4		—		(2)		(84)		Cost of service and support revenue
	20		—		(6)		(472)		Research and development, net
	13		—		(4)		(311)		Selling, general and administrative
	39		—		(13)		(939)		Total, before income taxes
	(4)		—		2		94		(Provision) benefit from income taxes
	$	35	$	—	$	(11)	$	(845)	Total, net of income taxes

Interest rate swap agreement	$	(1,120)	$	—	$	(1,711)	$	—	Interest expense
	(1,120)		—		(1,711)		—		Total, before income taxes
	244		—		372		—		Benefit from income taxes
	$	(876)	$	—	$	(1,339)	$	—	Total, net of income taxes

INCOME TAXES	6 Months Ended
INCOME TAXES	Jul. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	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. For the three months ended July 31, 2020, we recorded an income tax expense of $10.1 million on pre-tax income of $20.7 million, which represented an effective income tax rate of 48.8%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the impact of U.S. taxation of certain foreign activities and a change in the fair value of the Future Tranche Right associated with the Series A Preferred Stock, offset by lower statutory rates in several foreign jurisdictions. For the three months ended July 31, 2019, we recorded an income tax benefit of $4.5 million on pre-tax income of $7.8 million, which represented a negative effective income tax rate of 58.0%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to a net tax benefit of $6.7 million recorded in relation to changes in unrecognized income tax benefits and other items as a result of an audit settlement in a foreign jurisdiction and the impact of U.S. taxation of certain foreign activities, offset by lower statutory rates in several foreign jurisdictions. Excluding the income tax benefit attributable to the audit settlement, the result was an income tax provision of $2.2 million on pre-tax income of $7.8 million, resulting in an effective tax rate of 27.8%. For the six months ended July 31, 2020, we recorded an income tax provision of $8.3 million on pre-tax income of $14.9 million, which represented an effective income tax rate of 55.8%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the impact of U.S. taxation of certain foreign activities and a change in the fair value of the Future Tranche Right associated with the Series A Preferred Stock, offset by lower statutory rates in several foreign jurisdictions. For the six months ended July 31, 2019, we recorded an income tax benefit of $3.1 million on pre-tax income of $12.9 million, which represented a negative effective income tax rate of 24.0%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to a net tax benefit of $6.7 million recorded in relation to changes in unrecognized income tax benefits and other items as a result of an audit settlement in a foreign jurisdiction and the impact of U.S. taxation of certain foreign activities, offset by lower statutory rates in several foreign jurisdictions. Excluding the income tax benefit attributable to the audit settlement, the result was an income tax provision of $3.6 million on pre-tax income of $12.9 million, resulting in an effective tax rate of 27.6%. 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 certain state and foreign deferred income tax assets as a result of historical losses in the most recent three-year period in certain state and foreign jurisdictions. We intend to maintain valuation allowances until sufficient positive evidence exists to support a reversal. We had unrecognized income tax benefits of $93.0 million and $91.3 million (excluding interest and penalties) as of July 31, 2020 and January 31, 2020, respectively. The accrued liability for interest and penalties was $3.2 million and $2.9 million at July 31, 2020 and January 31, 2020, respectively. Interest and penalties are recorded as a component of the provision for income taxes in our condensed consolidated statements of operations. As of July 31, 2020 and January 31, 2020, the total amount of unrecognized income tax benefits that, if recognized, would impact our effective income tax rate were approximately $93.0 million and $91.3 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 July 31, 2020 could decrease by approximately $1.3 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. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The income tax provisions of the CARES Act do not have a significant impact on our current taxes, deferred taxes, or uncertain tax positions. However, we plan to defer the timing of employer payroll taxes and accelerate the refund of AMT credits as permitted by the CARES Act.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

FAIR VALUE MEASUREMENTS

6 Months Ended

Jul. 31, 2020

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 July 31, 2020 and January 31, 2020:


	July 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	344,815	$	—	$	—
Foreign currency forward contracts	—		1,467		—
Contingent consideration receivable	—		—		698
Total assets	$	344,815	$	1,467	$	698
Liabilities:
Foreign currency forward contracts	$	—	$	140	$	—
Interest rate swap agreement	—		19,188		—
Future tranche right	—		—		10,236
Contingent consideration - business combinations	—		—		22,012
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,050
Total liabilities	$	—	$	19,328	$	35,298


	January 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	89	$	—	$	—
Foreign currency forward contracts	—		812		—
Contingent consideration receivable	—		—		738
Total assets	$	89	$	812	$	738
Liabilities:
Foreign currency forward contracts	$	—	$	132	$	—
Interest rate swap agreements	—		13,501		—
Contingent consideration - business combinations	—		—		42,875
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		2,900
Total liabilities	$	—	$	13,633	$	45,775

On May 7, 2020, we issued a total of 200,000 shares of our Series A Preferred Stock, and upon completion of the Spin-Off, we will issue up to 200,000 shares of Series B Preferred Stock, subject to certain conditions. Please refer to Note 9, “Convertible Preferred Stock” for additional information regarding the preferred stock investment. The Future Tranche Right associated with the Series A Preferred Stock was initially recorded as an asset, as the purchase price of the Series B Preferred Stock was greater than its estimated value at the expected settlement date. As of July 31, 2020, the Future Tranche Right was recorded as a liability as the purchase price of the Series B Preferred Stock was less than its estimated value at the expected settlement date, and is included in accrued expenses and other liabilities on our condensed consolidated balance sheet. Due to the nature of and inputs in the model used to assess the fair value of the Future Tranche Right as described further below, we may experience significant fluctuations in its fair value during each remeasurement period.

The following table presents the changes in the estimated fair value of the Future Tranche Right measured using significant unobservable inputs (Level 3) for the six months ended July 31, 2020.



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	—	$	—
Fair value of future tranche right upon issuance of the Series A Preferred Stock	3,374		—
Change in fair values, recorded in other (expense) income, net	(13,610)		—
Fair value measurement at end of period	$	(10,236)	$	—

In January 2020, we completed the sale of an insignificant subsidiary in our Customer Engagement segment. In accordance with the terms of the sale agreement, 100% of the aggregate purchase price is contingent in nature based on a percentage of net sales of the former subsidiary’s products during the thirty-six month period following the transaction closing. We include the fair value of the contingent consideration receivable within prepaid expenses and other current assets and other assets on our consolidated balance sheet. The estimated fair value of this asset as of July 31, 2020, which is measured using Level 3 inputs, was $0.7 million. We did not receive any payments, and the change in the estimated fair value of this contingent receivable was not material, during the six months ended July 31, 2020.

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 six months ended July 31, 2020 and 2019:



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	42,875	$	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	—		5,200
Changes in fair values, recorded in operating expenses	(3,714)		370
Payments of contingent consideration	(17,375)		(23,712)
Foreign currency translation and other	226		(218)
Fair value measurement at end of period	$	22,012	$	42,980

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 six months ended July 31, 2020 and 2019:



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	2,900	$	3,000
Change in fair value, recorded in operating expenses	150		(50)
Fair value measurement at end of period	$	3,050	$	2,950

There were no transfers between levels of the fair value measurement hierarchy during the six months ended July 31, 2020 and 2019.

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.

Future Tranche Right - The fair value of the Future Tranche Right is classified within Level 3 of the fair value hierarchy because it is valued using pricing models that incorporate management assumptions that cannot be corroborated with observable market data. The fair value of the Future Tranche Right was estimated using a binomial tree model to estimate the value the Series B Preferred Stock and a Monte Carlo simulation to estimate the stock price of our Customer Engagement Solutions business post-Spin-Off, which we believe is reflective of all significant assumptions that market participants would likely consider in negotiating the transfer of the Future Tranche Right. The fair value of the Future Tranche Right also reflects the likelihood of the Series B Preferred Stock being issued, which management currently considers to be highly probable.

Significant inputs and assumptions used in the valuation model as of the issuance date, May 7, 2020, and July 31, 2020 are as follows:


	July 31,		May 7,
	2020		2020
Risk-free interest rate for preferred stock	1.19	%	1.31	%
Implied credit spread	7.78	%	10.78	%
Expected volatility	30.00	%	30.00	%

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 Asset or Liability - Business Combinations and Divestitures - The fair value of the contingent consideration related to business combinations and divestitures 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 1.9% to 5.5%, with a weighted average discount rate of 4.2%, in our calculations of the estimated fair values of our contingent consideration liabilities as of July 31, 2020. We utilized discount rates ranging from 2.1% to 4.9% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2020. We utilized discount rates ranging from 4.8% to 5.5%, with a weighted average discount rate of 5.2%, in our calculation of the estimated fair value of our contingent consideration asset as of July 31, 2020. We utilized discount rates ranging from 4.3% to 4.9%, in our calculation of the estimated fair value of our contingent consideration asset as of January 31, 2020.

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 a discount rate of 9.0% in our calculation of the estimated fair value of the option as of July 31, 2020 and January 31, 2020.

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 and our revolving credit borrowings at July 31, 2020 were $411 million and $198 million, respectively. The estimated fair values of our term loan and our revolving credit borrowings at January 31, 2020 were $417 million and $45 million, respectively. 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 participation in our term loans are traded. The indicative prices provided to us as at each of July 31, 2020 and January 31, 2020 did not significantly differ from par value. The estimated fair value of our revolving credit borrowings is based upon indicative market values provided by one of our lenders.

The estimated fair values of our Notes were approximately $385 million and $438 million at July 31, 2020 and January 31, 2020, 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, operating lease right-of-use 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.

As of July 31, 2020, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $3.8 million. There were no observable price changes in our investments in privately-held companies and we did not recognize any impairments or other adjustments during the six months ended July 31, 2020.

- 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

6 Months Ended

Jul. 31, 2020

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 $79.7 million and $89.0 million as of July 31, 2020 and January 31, 2020, 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 paid interest at a fixed rate of 4.143% and received 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 remained in effect until September 6, 2019, and served 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 occurred quarterly, and the 2016 Swap matured on September 6, 2019.

Prior to June 29, 2017, the 2016 Swap was designated as a cash flow hedge for accounting purposes and as such, changes in its fair value were recognized in accumulated other comprehensive income (loss) in the consolidated balance sheet and were reclassified into the statement of operations within interest expense in the period in which the hedged transaction affected earnings. Hedge ineffectiveness, if any, was recognized currently in the condensed consolidated statement of operations.

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 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 were 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 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 was September 6, 2019, and settlements with the counterparty began on November 1, 2019, and occur on a quarterly basis. The 2018 Swap will terminate on June 29, 2024.

Prior to May 1, 2020, the 2018 Swap was designated as a cash flow hedge for accounting purposes and as such, changes in its fair value were recognized in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet and were reclassified into the condensed consolidated statement of operations within interest expense in the periods in which the hedged transactions affected earnings.

On May 1, 2020, which was an interest rate reset date on our 2017 Term Loan, we selected an interest rate other than three-month LIBOR. As a result, the 2018 Swap, which was designated specifically to hedge three-month LIBOR interest payments, no longer qualified as a cash flow hedge. Subsequent to May 1, 2020, changes in fair value of the 2018 Swap are being accounted for as a component of other income (expense), net. Accumulated deferred losses on the 2018 Swap of $20.4 million, or $16.0 million after tax, at May 1, 2020 that were previously recorded as a component of accumulated other comprehensive loss, will be reclassified to the condensed consolidated statement of operations as interest expense over the remaining term of the 2018 Swap, as the previously hedged interest payments occur.

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 July 31, 2020 and January 31, 2020 were as follows:


		Fair Value at
		July 31,		January 31,
(in thousands)	Balance Sheet Classification	2020		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,321	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	146		102
Total derivative assets		$	1,467	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	20	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	120		116
Interest rate swap agreement:
Designated as a cash flow hedge	Accrued expenses and other current liabilities	—		2,060
Designated as a cash flow hedge	Other liabilities	—		11,441
Not designated as hedging instrument	Accrued expenses and other current liabilities	3,043		—
Not designated as hedging instrument	Other liabilities	16,145		—
Total derivative liabilities		$	19,328	$	13,633

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 six months ended July 31, 2020 and 2019 were as follows:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Net gains (losses) recognized in AOCL:
Foreign currency forward contracts	$	1,519	$	1,637	$	594	$	1,979
Interest rate swap agreement	—		(4,541)		(7,535)		(6,558)
	$	1,519	$	(2,904)	$	(6,941)	$	(4,579)

Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	39	$	—	$	(13)	$	(939)
Interest rate swap agreement	(1,120)		—		(1,711)		—
	$	(1,081)	$	—	$	(1,724)	$	(939)

For information regarding the line item locations of the net (losses) gains on derivative financial instruments reclassified out of AOCL into the condensed consolidated statements of operations, see Note 10, “Stockholders’ Equity”.

All of the foreign currency forward contracts underlying the $1.1 million of net unrealized gains recorded in our accumulated other comprehensive loss at July 31, 2020 mature within twelve months, and therefore we expect all such gains to be reclassified into earnings within the next twelve months. Approximately $4.1 million of the $15.1 million of net unrealized losses related to our interest rate swap agreement recorded in our accumulated other comprehensive loss at July 31, 2020 settle within twelve months, and therefore we expect those 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 six months ended months ended July 31, 2020 and 2019 were as follows:


	Classification in Condensed Consolidated Statements of Operations	Three Months Ended July 31,									Six Months Ended July 31,
(in thousands)				2020			2019			2020			2019
Foreign currency forward contracts	Other income (expense), net	$	(601)		$	212		$	413		$	776
Interest rate swap agreement	Other income (expense), net	137			(33)			137			(48)
		$	(464)		$	179		$	550		$	728

STOCK-BASED COMPENSATION

6 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Stock-Based Compensation Plan

On June 20, 2019, our stockholders approved the Verint Systems Inc. 2019 Long-Term Stock Incentive Plan (the “2019 Plan”). Upon approval of the 2019 Plan, additional awards are no longer permitted under our prior stock-based compensation plan (the “2017 Amended Plan”). Awards outstanding at June 20, 2019 under the 2017 Amended Plan or other previous stock-based compensation plans were not impacted by the approval of the 2019 Plan. Collectively, our stock-based compensation plans are referred to herein as the “Plans”.

The 2019 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 (“RSUs”), performance awards, other stock-based awards, and performance compensation awards. Subject to adjustment as provided in the 2019 Plan, up to an aggregate of (i) 9,475,000

shares of our common stock plus (ii) the number of shares of our common stock available for issuance under the 2017 Amended Plan as of June 20, 2019, plus (iii) the number of shares of our common stock that become available for issuance as a result of awards made under the 2017 Amended Plan or the 2019 Plan that are forfeited, cancelled, exchanged, or that terminate or expire, may be issued or transferred in connection with awards under the 2019 Plan. Each stock option or stock-settled stock appreciation right granted under the 2019 Plan will reduce the available plan capacity by one share and each other award denominated in shares that is granted under the 2019 Plan will reduce the available plan capacity by 2.38 shares.

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 six months ended months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Cost of revenue - product	$	410	$	488	$	720	$	822
Cost of revenue - service and support	1,328		1,546		1,985		2,616
Research and development, net	2,956		3,347		5,292		5,937
Selling, general and administrative	12,703		15,170		23,584		28,279
Total stock-based compensation expense	$	17,397	$	20,551	$	31,581	$	37,654

The following table summarizes stock-based compensation expense by type of award for the three and six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Restricted stock units and restricted stock awards	$	13,420	$	17,966	$	28,449	$	32,856
Stock bonus program and bonus share program	3,955		2,574		3,118		4,749
Total equity-settled awards	17,375		20,540		31,567		37,605
Phantom stock units (cash-settled awards)	22		11		14		49
Total stock-based compensation expense	$	17,397	$	20,551	$	31,581	$	37,654

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, which for awards under our stock bonus program is determined using a discounted average price of our common stock.

Restricted Stock Units and Performance Stock Units

We periodically award 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 six months ended July 31, 2020 and 2019:


	Six Months Ended July 31,
	2020				2019
(in thousands, except per share data)	Shares or Units	Weighted-Average Grant Date Fair Value		Shares or Units	Weighted-Average Grant Date Fair Value
Beginning balance	2,736	$	52.53	2,777	$	41.05
Granted	161	$	49.73	1,554	$	60.75
Released	(1,274)	$	47.94	(1,349)	$	40.36
Forfeited	(138)	$	52.56	(139)	$	42.56
Ending balance	1,485	$	56.17	2,843	$	52.22

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 July 31, 2020, 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 six months ended July 31, 2020 and 2019 (these amounts are already included in the Award Activity Table above for 2020 and 2019):


	Six Months Ended July 31,
(in thousands)	2020	2019
Beginning balance	526	512
Granted	107	286
Released	(231)	(233)
Forfeited	(25)	(30)
Ending balance	377	535

Excluding PSUs, we granted 54,000 RSUs during the six months ended July 31, 2020.

As of July 31, 2020, there was approximately $58.1 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 1.4 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 generally determined using a 5-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.

There was no activity under the stock bonus program during the six months ended July 31, 2020 and 2019.

For bonuses in respect of the year ending January 31, 2020, our board of directors approved the use of up to 200,000 shares of common stock, and a discount of 15%, under the stock bonus program. We currently expect to issue no more than 32,000 shares under the stock bonus program for the performance period ended January 31, 2020, which are expected to be issued during the three months ending October 31, 2020.

In March 2020, our board of directors approved up to 200,000 shares of common stock, and a discount of 15%, for awards under our stock bonus program for the performance period ended January 31, 2021.

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.

For bonuses in respect of the year ending January 31, 2020, our board of directors has approved the use of up to 305,000 shares of common stock under the bonus share program, reduced by any shares issued under the stock bonus program in respect of the same performance period. For the performance period ended January 31, 2020, we currently expect to issue no more than 32,000 shares under the stock bonus program, with the remaining 273,000 shares authorized by the board of directors available for use under the bonus share program for the same performance period. Awards under the bonus share program for the performance period ended January 31, 2020 are expected to be issued during the three months ending October 31, 2020.

For bonuses in respect of the year ending January 31, 2021, our 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 same performance period.

The combined accrued liabilities for the stock bonus program and the bonus share program were $18.5 million and $17.3 million at July 31, 2020 and January 31, 2020, respectively.

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our primary Israeli subsidiary, Verint Systems Limited (“VSL”) (Case Number 4186/09) and against our affiliate CTI (Case Number 1335/09). Also, in March 2009, a former employee of Comverse Limited (CTI’s primary Israeli subsidiary at the time), Ms. Roni Katriel, commenced similar legal actions in Israel against Comverse Limited (Case Number 3444/09). In these actions, the plaintiffs generally sought to certify class action suits against the defendants on behalf of current and former employees of VSL and Comverse Limited who had been granted stock options in Verint and/or CTI and who were allegedly damaged as a result of a suspension on option exercises during an extended filing delay period that is discussed in our and CTI’s historical public filings. On June 7, 2012, the Tel Aviv District Court, where the cases had been filed or transferred, allowed the plaintiffs to consolidate and amend their complaints against the three defendants: VSL, CTI, and Comverse Limited. On October 31, 2012, CTI distributed all of the outstanding shares of common stock of Comverse, Inc., its principal operating subsidiary and parent company of Comverse Limited, to CTI’s shareholders (the “Comverse Share Distribution”). In the period leading up to the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in Verint and in its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or to unaffiliated third parties. As the result of these transactions, Comverse, Inc. became an independent company and ceased to be affiliated with CTI, and CTI ceased to have any material assets other than its equity interests in Verint. Prior to the completion of the Comverse Share Distribution, the plaintiffs sought to compel CTI to set aside up to $150.0 million in assets to secure any future judgment, but the District Court did not rule on this motion. In February 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc. On February 4, 2013, Verint acquired the remaining CTI shell company in a merger transaction (the “CTI Merger”). As a result of the CTI Merger, Verint assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the foregoing legal actions. However, under the terms of a Distribution Agreement entered into in connection with the Comverse Share Distribution, we, as successor to CTI, are entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses we may suffer in our capacity as successor to CTI related to the foregoing legal actions. Following an unsuccessful mediation process, 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 part of Mavenir) or of VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case would be evaluated under New York law. As a result of this ruling (which excluded claims related to Verint stock options from the case), one of the original plaintiffs in the case, Ms. Deutsch, was replaced by a new representative plaintiff, Mr. David Vaaknin. CTI appealed portions of the District Court’s ruling to the Israeli Supreme Court. On August 8, 2017, the Israeli 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 under New York law based on the parties’ expert opinions. Following two unsuccessful rounds of mediation in mid to late 2018 and in mid-2019, the proceedings resumed. On April 16, 2020, the District Court accepted plaintiffs’ application to amend the motion to certify a class action and set deadlines for filing amended pleadings by the parties. CTI submitted a motion to appeal the District Court’s decision to the Supreme Court, as well as a motion to stay the proceedings in the District Court pending the resolution of the appeal. On July 6, 2020, the Supreme Court granted the motion for a stay. On July 27, 2020, the plaintiffs filed their response on the merits of the motion for leave to appeal, and the parties are waiting for further instructions or decisions from the Supreme Court. We are a party to various litigation matters and claims that arise from time to time in the ordinary course of our business. While we believe that the ultimate outcome of any such current matters will not have a material adverse effect on us, their outcomes are not determinable and negative outcomes may adversely affect our financial position, liquidity, or results of operations.

SEGMENT INFORMATION

6 Months Ended

Jul. 31, 2020

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 and 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 primarily 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. We share resources across our segments for efficiency and to avoid duplicative costs.

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 six months ended July 31, 2020 and 2019 were as follows:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Revenue:
Customer Engagement
Segment revenue	$	207,146	$	218,424	$	396,273	$	434,291
Revenue adjustments	(3,066)		(6,988)		(6,328)		(15,760)
	204,080		211,436		389,945		418,531
Cyber Intelligence
Segment revenue	106,267		112,893		208,789		221,184
Revenue adjustments	(1,238)		(24)		(2,330)		(151)
	105,029		112,869		206,459		221,033
Total revenue	$	309,109	$	324,305	$	596,404	$	639,564

Segment contribution:
Customer Engagement	$	90,302	$	78,788	$	156,099	$	157,606
Cyber Intelligence	35,675		31,571		60,639		58,861
Total segment contribution	125,977		110,359		216,738		216,467

Reconciliation of segment contribution to operating income:
Revenue adjustments	4,304		7,012		8,658		15,911
Shared support expenses	40,822		44,416		84,163		88,270
Amortization of acquired intangible assets	12,486		13,226		25,160		27,646
Stock-based compensation	17,397		20,551		31,581		37,654
Acquisition, integration, restructuring, and other unallocated expenses	8,651		9,879		18,685		17,243
Total reconciling items, net	83,660		95,084		168,247		186,724
Operating income	$	42,317	$	15,275	$	48,491	$	29,743

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”.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jul. 31, 2020
Accounting Policies [Abstract]
Preparation of Condensed Consolidated Financial Statements	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, 2020 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 July 31, 2020 and 2019, and the condensed consolidated balance sheet as of July 31, 2020, 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, 2020 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2020. 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, 2020 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results.
Principles of Consolidation	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. 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. 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	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. In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts COVID-19 as of July 31, 2020 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company's financial instruments within the scope of this guidance primarily includes accounts receivable and contract assets. On February 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of ASU No. 2016-13 resulted in a $1.1 million increase in our allowance for expected credit losses related to accounts receivable and contract assets, a $0.2 million increase to deferred tax assets, and an impact of $0.9 million to our accumulated deficit. The new accounting standard did not have a material impact on our condensed consolidated financial statements, including accounting policies, given our limited historical write-off activity. In August 2018, the FASB issued ASU No. 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 requires customers in a hosting arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize and which costs to expense. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the condensed consolidated balance sheet as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the condensed consolidated income statement as the related fees of the arrangement. We adopted ASU No. 2018-15 prospectively to eligible costs incurred on or after February 1, 2020 and the implementation did not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 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. Since the standard affects only disclosure requirements, the adoption of the standard did not have an impact on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes, and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for interim and annual reporting periods beginning after December 15, 2020. We are currently reviewing this standard but do not expect that it will have a material impact on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. This new standard will be effective for us in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We are currently assessing the impact of adopting this standard on our consolidated financial statements.
Revenue Recognition Policy	REVENUE RECOGNITIONWe derive our revenue primarily from the licensing of our software products and related services and support based on when control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value- added tax and other transaction taxes imposed on the related transaction, including mandatory government charges that are passed through to our customers. We determine revenue recognition through the following five steps: •Identification of the contract, or contracts, with a customer •Identification of the performance obligations in the contract •Determination of the transaction price •Allocation of the transaction price to the performance obligations in the contract •Recognition of revenue when, or as, performance obligations are satisfied. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=112272810&loc=SL108384541-122693

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=112272810&loc=d3e31137-122693

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)

+ Details

REVENUE RECOGNITION (Tables)

6 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

For our Customer Engagement segment:

•Recurring revenue primarily consists of cloud revenue and initial and renewal support revenue.

◦Cloud revenue consists primarily of software as a service (“SaaS”) revenue with some optional managed services revenue.

•Nonrecurring revenue primarily consists of our perpetual licenses, consulting, implementation and installation services, and training.

For our Cyber Intelligence segment:

•Recurring revenue primarily consists of initial and renewal support, subscription software licenses, and SaaS in certain limited transactions.


	Three Months Ended July 31, 2020										Three Months Ended July 31, 2019
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	45,891	$	50,185	$	96,076	$	54,468	$	55,515	$	109,983
Service and support	158,189		54,844		213,033		156,968		57,354		214,322
Total revenue	$	204,080	$	105,029	$	309,109	$	211,436	$	112,869	$	324,305

Revenue by recurrence:
Recurring revenue	$	139,267	$	51,651	$	190,918	$	129,332	$	46,171	$	175,503
Nonrecurring revenue	64,813		53,378		118,191		82,104		66,698		148,802
Total revenue	$	204,080	$	105,029	$	309,109	$	211,436	$	112,869	$	324,305


	Six Months Ended July 31, 2020										Six Months Ended July 31, 2019
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
Revenue:
Product	$	79,888	$	93,472	$	173,360	$	108,470	$	105,737	$	214,207
Service and support	310,057		112,987		423,044		310,061		115,296		425,357
Total revenue	$	389,945	$	206,459	$	596,404	$	418,531	$	221,033	$	639,564

Recurring Revenue
Recurring revenue	$	268,337	$	107,689	$	376,026	$	252,690	$	92,988	$	345,678
Nonrecurring revenue	121,608		98,770		220,378		165,841		128,045		293,886
Total revenue	$	389,945	$	206,459	$	596,404	$	418,531	$	221,033	$	639,564

The following table provides a further disaggregation of revenue for our Customer Engagement segment.


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Customer Engagement revenue
Recurring revenue
Bundled SaaS revenue	$	35,818	$	27,208	$	69,211	$	54,412
Unbundled SaaS revenue	10,062		6,441		15,534		12,693
Optional managed services revenue	14,328		14,164		28,460		27,793
Total cloud revenue	60,208		47,813		113,205		94,898
Support revenue	79,059		81,519		155,132		157,792
Total recurring revenue	139,267		129,332		268,337		252,690
Nonrecurring revenue
Perpetual revenue	35,829		48,028		64,354		95,630
Professional services revenue	28,984		34,076		57,254		70,211
Total nonrecurring revenue	64,813		82,104		121,608		165,841
Total Customer Engagement revenue	$	204,080	$	211,436	$	389,945	$	418,531

Schedule of 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)	July 31, 2020		January 31, 2020
Accounts receivable, net	$	309,355	$	382,435
Contract assets, net	$	60,387	$	64,961
Long-term contract assets (included in Other assets)	$	13,606	$	1,358
Contract liabilities	$	340,868	$	397,350
Long-term contract liabilities	$	37,768	$	40,565

Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table provides information about remaining performance obligations for each of our operating segments:


	July 31, 2020										January 31, 2020
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
RPO:
Expected to be recognized within 1 year	$	362,764	$	383,983	$	746,747	$	374,982	$	356,677	$	731,659
Expected to be recognized in more than 1 year	123,779		170,626		294,405		117,497		225,056		342,553
Total RPO	$	486,543	$	554,609	$	1,041,152	$	492,479	$	581,733	$	1,074,212

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

6 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Schedule of Calculation of Basic And Diluted 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 six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands, except per share amounts)	2020		2019		2020		2019
Net income	$	10,587	$	12,271	$	6,612	$	16,032
Net income attributable to noncontrolling interests	2,093		1,713		4,132		3,898
Net income attributable to Verint Systems Inc.	8,494		10,558		2,480		12,134
Dividends on preferred stock	(2,484)		—		(2,484)		—
Net income (loss) attributable to Verint Systems Inc. for basic net income per common share	6,010		10,558		(4)		12,134
Dilutive effect of dividends on preferred stock	—		—		—		—
Net income (loss) attributable to Verint Systems Inc. for diluted net income per common share	$	6,010	$	10,558	$	(4)	$	12,134
Weighted-average shares outstanding:
Basic	64,954		66,272		64,670		65,870
Dilutive effect of employee equity award plans	895		1,247		—		1,468
Dilutive effect of 1.50% convertible senior notes	—		—		—		—
Dilutive effect of warrants	—		—		—		—
Dilutive effect of assumed conversion of preferred stock	—		—		—		—
Diluted	65,849		67,519		64,670		67,338
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic	$	0.09	$	0.16	$	—	$	0.18
Diluted	$	0.09	$	0.16	$	—	$	0.18

Schedule of Anti-dilutive Securities


	Three Months Ended July 31,			Six Months Ended July 31,
(in thousands)	2020	2019	2020	2019
Common shares excluded from calculation:
Stock options and restricted stock-based awards	392	1,817	1,329	1,221
1.50% convertible senior notes	6,137	6,205	6,171	6,205
Warrants	6,205	6,205	6,205	6,205
Series A Preferred Stock	3,495	—	1,747	—

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

6 Months Ended

Jul. 31, 2020

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

Schedule of Cash, Cash Equivalents and Short-term Investments

The following tables summarize our cash, cash equivalents, and short-term investments as of July 31, 2020 and January 31, 2020:


	July 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	386,286	$	—	$	—	$	386,286
Money market funds	344,815		—		—		344,815
Total cash and cash equivalents	$	731,101	$	—	$	—	$	731,101

Short-term investments:
Bank time deposits	$	82,443	$	—	$	—	$	82,443
Total short-term investments	$	82,443	$	—	$	—	$	82,443


	January 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	379,057	$	—	$	—	$	379,057
Money market funds	89		—		—		89
Total cash and cash equivalents	$	379,146	$	—	$	—	$	379,146

Short-term investments:
Bank time deposits	$	20,215	$	—	$	—	$	20,215
Total short-term investments	$	20,215	$	—	$	—	$	20,215

BUSINESS COMBINATIONS (Tables)

6 Months Ended

Jul. 31, 2020

Individually Insignificant Business Combinations Year Ended January 31 2020

Business Acquisition

Schedule of Purchase Price Allocations for the Year Ended January 31, 2020


(in thousands)	Amount
Components of Purchase Prices:
Cash	$	76,198
Fair value of contingent consideration	15,253
Other purchase price adjustments	(2,137)
Total purchase prices	$	89,314

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	3,950
Other current assets, including cash acquired	14,394
Other assets	6,556
Current and other liabilities	(8,531)
Contract liabilities - current and long-term	(3,794)
Deferred income taxes	(4,061)
Net tangible assets	8,514
Identifiable intangible assets:
Customer relationships	13,299
Developed technology	14,443
Trademarks and trade names	1,367
Non-compete agreements	1,307
Total identifiable intangible assets	30,416
Goodwill	50,384
Total purchase prices allocation	$	89,314

INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquisition-Related Intangible Assets

Acquisition-related intangible assets consisted of the following as of July 31, 2020 and January 31, 2020:


	July 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	464,580	$	(341,559)	$	123,021
Acquired technology	294,682		(251,201)		43,481
Trade names	12,881		(8,178)		4,703
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(266)		1,041
Total intangible assets	$	777,890	$	(605,644)	$	172,246


	January 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	465,130	$	(328,069)	$	137,061
Acquired technology	294,841		(241,585)		53,256
Trade names	12,957		(6,783)		6,174
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(34)		1,273
Total intangible assets	$	778,675	$	(580,911)	$	197,764

Schedule of Net Acquisition-related Intangible Assets By Reportable Segment

The following table presents net acquisition-related intangible assets by reportable segment as of July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
Customer Engagement	$	165,522	$	189,896
Cyber Intelligence	6,724		7,868
Total	$	172,246	$	197,764

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
2021 (remainder of year)	$	24,721
2022	46,503
2023	38,480
2024	28,235
2025	11,864
2026 and thereafter	22,443
Total	$	172,246

Schedule of Goodwill Activity

Goodwill activity for the six months ended July 31, 2020, in total and by reportable segment, was as follows:


			Reportable Segment
(in thousands)	Total		Customer Engagement		Cyber Intelligence
Six Months Ended July 31, 2020:
Goodwill, gross, at January 31, 2020	$	1,536,076	$	1,367,111	$	168,965
Accumulated impairment losses through January 31, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2020	1,469,211		1,311,068		158,143
Foreign currency translation and other	(657)		(386)		(271)
Business combinations, including adjustments to prior period acquisitions	(357)		—		(357)
Goodwill, net, at July 31, 2020	$	1,468,197	$	1,310,682	$	157,515

Balance at July 31, 2020:
Goodwill, gross, at July 31, 2020	$	1,535,062	$	1,366,725	$	168,337
Accumulated impairment losses through July 31, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at July 31, 2020	$	1,468,197	$	1,310,682	$	157,515

LONG-TERM DEBT (Tables)

6 Months Ended

Jul. 31, 2020

Long-term Debt, Unclassified [Abstract]

Schedule of Long-Term Debt

The following table summarizes our long-term debt at July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
1.50% Convertible Senior Notes	$	386,887	$	400,000
June 2017 Term Loan	412,250		414,375
Borrowings under 2017 Revolving Credit Facility	200,000		45,000
Less: Unamortized debt discounts and issuance costs	(15,033)		(22,327)
Total debt	984,104		837,048
Less: current maturities	380,229		4,250
Long-term debt	$	603,875	$	832,798

Schedule of Future Scheduled Principal Payments on 2017 Term Loan

As of July 31, 2020, future scheduled principal payments on the 2017 Term Loan were as follows:


(in thousands)
Years Ending January 31,	Amount
2021 (remainder of year)	$	2,125
2022	4,250
2023	4,250
2024	4,250
2025	397,375
Total	$	412,250

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 six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	1,486	$	1,500	$	2,986	$	3,000
Amortization of debt discount	3,174		3,102		6,400		6,163
Amortization of deferred debt issuance costs	300		292		604		581
Total Interest Expense - 1.50% Convertible Senior Notes	$	4,960	$	4,894	$	9,990	$	9,744

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	3,463	$	4,730	$	7,976	$	9,375
Impact of interest rate swap	1,121		—		1,712		—
Amortization of debt discounts	19		17		37		33
Amortization of deferred debt issuance costs	439		401		830		775
Total Interest Expense - Borrowings under Credit Agreements	$	5,042	$	5,148	$	10,555	$	10,183

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

6 Months Ended

Jul. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories consisted of the following as of July 31, 2020 and January 31, 2020:


	July 31,		January 31,
(in thousands)	2020		2020
Raw materials	$	10,461	$	9,628
Work-in-process	5,525		4,749
Finished goods	4,912		6,118
Total inventories	$	20,898	$	20,495

Schedule of Other (Expense) Income, Net

Other (expense) income, net consisted of the following for the three and six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Foreign currency gains (losses), net	$	3,032	$	774	$	(222)	$	(412)
(Losses) gains on derivative financial instruments, net	(463)		179		551		728
Change in fair value of future tranche right	(13,610)		—		(13,610)		—
Other, net	(1,170)		(44)		(1,160)		(197)
Total other (expense) income, net	$	(12,211)	$	909	$	(14,441)	$	119

Schedule of Supplemental Information Regarding Condensed Consolidated Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the six months ended July 31, 2020 and 2019:


	Six Months Ended July 31,
(in thousands)	2020		2019
Cash paid for interest	$	14,022	$	12,410
Cash payments of income taxes, net	$	9,684	$	16,419
Cash payments for operating leases	$	14,234	$	13,688
Non-cash investing and financing transactions:
Liabilities for contingent consideration in business combinations, including measurement period adjustments	$	—	$	5,200
Series A Preferred Stock dividends declared	$	1,589	$	—
Finance leases of property and equipment	$	841	$	377
Accrued but unpaid purchases of property and equipment	$	2,020	$	4,505
Inventory transfers to property and equipment	$	575	$	463

STOCKHOLDERS' EQUITY (Tables)

6 Months Ended

Jul. 31, 2020

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 six months ended July 31, 2020:


(in thousands)	Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges		Unrealized Loss on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive income (loss) at January 31, 2020	$	626	$	(10,528)	$	(141,963)	$	(151,865)
Other comprehensive income (loss) before reclassifications	496		(5,940)		(2,336)		(7,780)
Amounts reclassified out of accumulated other comprehensive income (loss)	(11)		(1,339)		—		(1,350)
Net other comprehensive income (loss)	507		(4,601)		(2,336)		(6,430)
Accumulated other comprehensive income (loss) at July 31, 2020	$	1,133	$	(15,129)	$	(144,299)	$	(158,295)

Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) Into The Statement of Operations By Location


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019		Location
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	2	$	—	$	(1)	$	(72)	Cost of product revenue
	4		—		(2)		(84)		Cost of service and support revenue
	20		—		(6)		(472)		Research and development, net
	13		—		(4)		(311)		Selling, general and administrative
	39		—		(13)		(939)		Total, before income taxes
	(4)		—		2		94		(Provision) benefit from income taxes
	$	35	$	—	$	(11)	$	(845)	Total, net of income taxes

Interest rate swap agreement	$	(1,120)	$	—	$	(1,711)	$	—	Interest expense
	(1,120)		—		(1,711)		—		Total, before income taxes
	244		—		372		—		Benefit from income taxes
	$	(876)	$	—	$	(1,339)	$	—	Total, net of income taxes

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jul. 31, 2020

Fair Value Disclosures [Abstract]

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 July 31, 2020 and January 31, 2020:


	July 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	344,815	$	—	$	—
Foreign currency forward contracts	—		1,467		—
Contingent consideration receivable	—		—		698
Total assets	$	344,815	$	1,467	$	698
Liabilities:
Foreign currency forward contracts	$	—	$	140	$	—
Interest rate swap agreement	—		19,188		—
Future tranche right	—		—		10,236
Contingent consideration - business combinations	—		—		22,012
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,050
Total liabilities	$	—	$	19,328	$	35,298


	January 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	89	$	—	$	—
Foreign currency forward contracts	—		812		—
Contingent consideration receivable	—		—		738
Total assets	$	89	$	812	$	738
Liabilities:
Foreign currency forward contracts	$	—	$	132	$	—
Interest rate swap agreements	—		13,501		—
Contingent consideration - business combinations	—		—		42,875
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		2,900
Total liabilities	$	—	$	13,633	$	45,775

Schedule of Changes In The Estimated Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents the changes in the estimated fair value of the Future Tranche Right measured using significant unobservable inputs (Level 3) for the six months ended July 31, 2020.



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	—	$	—
Fair value of future tranche right upon issuance of the Series A Preferred Stock	3,374		—
Change in fair values, recorded in other (expense) income, net	(13,610)		—
Fair value measurement at end of period	$	(10,236)	$	—



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	42,875	$	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	—		5,200
Changes in fair values, recorded in operating expenses	(3,714)		370
Payments of contingent consideration	(17,375)		(23,712)
Foreign currency translation and other	226		(218)
Fair value measurement at end of period	$	22,012	$	42,980

The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the six months ended July 31, 2020 and 2019:



	Six Months Ended July 31,
(in thousands)	2020		2019
Fair value measurement at beginning of period	$	2,900	$	3,000
Change in fair value, recorded in operating expenses	150		(50)
Fair value measurement at end of period	$	3,050	$	2,950

Fair Value Measurement Inputs and Valuation Techniques

Significant inputs and assumptions used in the valuation model as of the issuance date, May 7, 2020, and July 31, 2020 are as follows:


	July 31,		May 7,
	2020		2020
Risk-free interest rate for preferred stock	1.19	%	1.31	%
Implied credit spread	7.78	%	10.78	%
Expected volatility	30.00	%	30.00	%

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jul. 31, 2020

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 July 31, 2020 and January 31, 2020 were as follows:


		Fair Value at
		July 31,		January 31,
(in thousands)	Balance Sheet Classification	2020		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,321	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	146		102
Total derivative assets		$	1,467	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	20	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	120		116
Interest rate swap agreement:
Designated as a cash flow hedge	Accrued expenses and other current liabilities	—		2,060
Designated as a cash flow hedge	Other liabilities	—		11,441
Not designated as hedging instrument	Accrued expenses and other current liabilities	3,043		—
Not designated as hedging instrument	Other liabilities	16,145		—
Total derivative liabilities		$	19,328	$	13,633

Schedule of The Effects of Derivative Financial Instruments Designated As Cash Flow Hedging Instruments


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Net gains (losses) recognized in AOCL:
Foreign currency forward contracts	$	1,519	$	1,637	$	594	$	1,979
Interest rate swap agreement	—		(4,541)		(7,535)		(6,558)
	$	1,519	$	(2,904)	$	(6,941)	$	(4,579)

Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	39	$	—	$	(13)	$	(939)
Interest rate swap agreement	(1,120)		—		(1,711)		—
	$	(1,081)	$	—	$	(1,724)	$	(939)

Schedule of Gains (Losses) Recognized on Derivative Financial Instruments Not Designated As Hedging Instruments


	Classification in Condensed Consolidated Statements of Operations	Three Months Ended July 31,									Six Months Ended July 31,
(in thousands)				2020			2019			2020			2019
Foreign currency forward contracts	Other income (expense), net	$	(601)		$	212		$	413		$	776
Interest rate swap agreement	Other income (expense), net	137			(33)			137			(48)
		$	(464)		$	179		$	550		$	728

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense by Line Item


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Cost of revenue - product	$	410	$	488	$	720	$	822
Cost of revenue - service and support	1,328		1,546		1,985		2,616
Research and development, net	2,956		3,347		5,292		5,937
Selling, general and administrative	12,703		15,170		23,584		28,279
Total stock-based compensation expense	$	17,397	$	20,551	$	31,581	$	37,654

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 six months ended July 31, 2020 and 2019:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Restricted stock units and restricted stock awards	$	13,420	$	17,966	$	28,449	$	32,856
Stock bonus program and bonus share program	3,955		2,574		3,118		4,749
Total equity-settled awards	17,375		20,540		31,567		37,605
Phantom stock units (cash-settled awards)	22		11		14		49
Total stock-based compensation expense	$	17,397	$	20,551	$	31,581	$	37,654

Summary of RSU Activity


	Six Months Ended July 31,
	2020				2019
(in thousands, except per share data)	Shares or Units	Weighted-Average Grant Date Fair Value		Shares or Units	Weighted-Average Grant Date Fair Value
Beginning balance	2,736	$	52.53	2,777	$	41.05
Granted	161	$	49.73	1,554	$	60.75
Released	(1,274)	$	47.94	(1,349)	$	40.36
Forfeited	(138)	$	52.56	(139)	$	42.56
Ending balance	1,485	$	56.17	2,843	$	52.22

Summary of Performance Share Activity


	Six Months Ended July 31,
(in thousands)	2020	2019
Beginning balance	526	512
Granted	107	286
Released	(231)	(233)
Forfeited	(25)	(30)
Ending balance	377	535

SEGMENT INFORMATION (Tables)

6 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

Schedule of Operating Results by Segment

Operating results by segment for the three and six months ended July 31, 2020 and 2019 were as follows:


	Three Months Ended July 31,						Six Months Ended July 31,
(in thousands)	2020		2019		2020		2019
Revenue:
Customer Engagement
Segment revenue	$	207,146	$	218,424	$	396,273	$	434,291
Revenue adjustments	(3,066)		(6,988)		(6,328)		(15,760)
	204,080		211,436		389,945		418,531
Cyber Intelligence
Segment revenue	106,267		112,893		208,789		221,184
Revenue adjustments	(1,238)		(24)		(2,330)		(151)
	105,029		112,869		206,459		221,033
Total revenue	$	309,109	$	324,305	$	596,404	$	639,564

Segment contribution:
Customer Engagement	$	90,302	$	78,788	$	156,099	$	157,606
Cyber Intelligence	35,675		31,571		60,639		58,861
Total segment contribution	125,977		110,359		216,738		216,467

Reconciliation of segment contribution to operating income:
Revenue adjustments	4,304		7,012		8,658		15,911
Shared support expenses	40,822		44,416		84,163		88,270
Amortization of acquired intangible assets	12,486		13,226		25,160		27,646
Stock-based compensation	17,397		20,551		31,581		37,654
Acquisition, integration, restructuring, and other unallocated expenses	8,651		9,879		18,685		17,243
Total reconciling items, net	83,660		95,084		168,247		186,724
Operating income	$	42,317	$	15,275	$	48,491	$	29,743

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - DESCRIPTION OF BUSINESS (Details)			6 Months Ended
	May 07, 2020 USD ($)	Dec. 04, 2019 USD ($)	Jul. 31, 2020 organization country patent
Description of Business
Number of organizations as customer \| organization			10,000
Number of countries customers located \| country			180
Percentage of fortune 100 companies as customers			85.00%
Number of professionals In R&D team			1,900
Number of parent and patent applications \| patent			1,000
Convertible Preferred Stock
Description of Business
Issuance of convertible preferred stock		$ 400,000,000.0
Series B Preferred Stock
Description of Business
Issuance of convertible preferred stock		$ 200,000,000.0
Series A Preferred Stock
Description of Business
Issuance of convertible preferred stock	$ 200,000,000.0
Percentage ownership of outstanding shares	5.50%
Minimum \| Convertible Preferred Stock
Description of Business
Percentage ownership of outstanding shares		11.50%
Maximum \| Convertible Preferred Stock
Description of Business
Percentage ownership of outstanding shares		15.00%

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CONSOLIDATION (Details)	6 Months Ended
	Jul. 31, 2020
Maximum
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 - ASU 2016-13 (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 31, 2019	Jan. 31, 2020	Jul. 31, 2020	Feb. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting standards update [extensible list]	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201613Member
Accumulated deficit		$ (105,590)	$ (104,050)
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, allowance for credit loss				$ 1,100
Deferred tax assets, net				200
Accumulated deficit				$ 900

- Definition

Indicates amendment to accounting standards.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 24: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)

+ Details

REVENUE RECOGNITION - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 309,109	$ 324,305	$ 596,404	$ 639,564
Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	190,918	175,503	376,026	345,678
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	118,191	148,802	220,378	293,886
Product
Disaggregation of Revenue [Line Items]
Revenue	96,076	109,983	173,360	214,207
Service and support
Disaggregation of Revenue [Line Items]
Revenue	213,033	214,322	423,044	425,357
Customer Engagement
Disaggregation of Revenue [Line Items]
Revenue	204,080	211,436	389,945	418,531
Customer Engagement \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	139,267	129,332	268,337	252,690
Customer Engagement \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	64,813	82,104	121,608	165,841
Customer Engagement \| Product
Disaggregation of Revenue [Line Items]
Revenue	45,891	54,468	79,888	108,470
Customer Engagement \| Service and support
Disaggregation of Revenue [Line Items]
Revenue	158,189	156,968	310,057	310,061
Cyber Intelligence
Disaggregation of Revenue [Line Items]
Revenue	105,029	112,869	206,459	221,033
Cyber Intelligence \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	51,651	46,171	107,689	92,988
Cyber Intelligence \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	53,378	66,698	98,770	128,045
Cyber Intelligence \| Product
Disaggregation of Revenue [Line Items]
Revenue	50,185	55,515	93,472	105,737
Cyber Intelligence \| Service and support
Disaggregation of Revenue [Line Items]
Revenue	$ 54,844	$ 57,354	$ 112,987	$ 115,296

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

REVENUE RECOGNITION - CUSTOMER ENGAGEMENT - ADDITIONAL DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 309,109	$ 324,305	$ 596,404	$ 639,564
Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	190,918	175,503	376,026	345,678
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	118,191	148,802	220,378	293,886
Customer Engagement
Disaggregation of Revenue [Line Items]
Revenue	204,080	211,436	389,945	418,531
Customer Engagement \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	139,267	129,332	268,337	252,690
Customer Engagement \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	64,813	82,104	121,608	165,841
Customer Engagement \| Bundled SaaS revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	35,818	27,208	69,211	54,412
Customer Engagement \| Unbundled SaaS revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	10,062	6,441	15,534	12,693
Customer Engagement \| Optional managed services revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	14,328	14,164	28,460	27,793
Customer Engagement \| Total cloud revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	60,208	47,813	113,205	94,898
Customer Engagement \| Support revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	79,059	81,519	155,132	157,792
Customer Engagement \| Perpetual revenue \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	35,829	48,028	64,354	95,630
Customer Engagement \| Professional services revenue \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 28,984	$ 34,076	$ 57,254	$ 70,211

REVENUE RECOGNITION - CONTRACT BALANCES (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 309,355	$ 382,435
Contract assets, net	60,387	64,961
Long-term contract assets (included in Other assets)	13,606	1,358
Contract liabilities	340,868	397,350
Long-term contract liabilities	$ 37,768	$ 40,565

REVENUE RECOGNITION - CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jan. 31, 2020
Cyber Intelligence \| Credit Concentration Risk
Concentration Risk [Line Items]
Aggregate contract assets & accounts receivable	$ 65.3	$ 51.7

REVENUE RECOGNITION - CONTRACT ASSET AND LIABILITY ROLLFORWARD (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Revenue from Contract with Customer [Abstract]
Current period revenue recognized from beginning balance of contract liabilities	$ 240.5	$ 231.4

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - CALCULATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019
Net (Loss) Income Attributable to Verint Systems Inc. [Abstract]
Net income	$ 10,587	$ (3,975)	$ 12,271	$ 3,761	$ 6,612	$ 16,032
Net income attributable to noncontrolling interests	2,093		1,713		4,132	3,898
Net income attributable to Verint Systems Inc.	8,494		10,558		2,480	12,134
Dividends on preferred stock	(2,484)		0		(2,484)	0
Net income (loss) attributable to Verint Systems Inc. for basic net income per common share	6,010		10,558		(4)	12,134
Dilutive effect of dividends on preferred stock	0		0		0	0
Net income (loss) attributable to Verint Systems Inc. for diluted net income per common share	$ 6,010		$ 10,558		$ (4)	$ 12,134
Weighted-average shares outstanding:
Basic (in shares)	64,954		66,272		64,670	65,870
Dilutive effect of employee equity award plans (in shares)	895		1,247		0	1,468
Dilutive effect of 1.50% convertiblesenior notes (in shares)	0		0		0	0
Dilutive effect of warrants (in shares)	0		0		0	0
Dilutive effect of assumed conversion of preferred stock (in shares)	0		0		0	0
Diluted (in shares)	65,849		67,519		64,670	67,338
Net income (loss) per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ 0.09		$ 0.16		$ 0	$ 0.18
Diluted (in dollars per share)	$ 0.09		$ 0.16		$ 0	$ 0.18

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - ANTIDILUTIVE SECURITIES (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
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)	392	1,817	1,329	1,221
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)	6,137	6,205	6,171	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
Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	3,495	0	1,747	0

NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - OTHER DETAILS (Details) - USD ($)	May 07, 2020	Dec. 04, 2019	Jul. 31, 2020
Class of Stock [Line Items]
Exercise price of warrants (in dollars per share)			$ 75.00
Warrants (in shares)			6,205,000
Convertible Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 400,000,000.0
Series A Preferred Stock \| Series A Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000.0
1.50% Convertible Senior Notes
Class of Stock [Line Items]
1.50% convertible notes - conversion price (in dollars per share)			$ 64.46

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	$ 731,101	$ 388,546	$ 379,146
Cash and cash equivalents, fair value	731,101		379,146
Maturities and sales of investments	30,791	$ 23,836
Bank time deposits
Schedule of Available-for-sale Securities
Cost Basis	82,443		20,215
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Estimated Fair Value	82,443		20,215
Total short-term investments
Schedule of Available-for-sale Securities
Cost Basis	82,443		20,215
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Estimated Fair Value	82,443		20,215
Cash and bank time deposits
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	386,286		379,057
Cash and cash equivalents, fair value	386,286		379,057
Money market funds
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	344,815		89
Cash and cash equivalents, fair value	$ 344,815		$ 89

BUSINESS COMBINATIONS - TWELVE MONTHS ENDED JANUARY 31, 2020 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020
Business Acquisition
Payments to acquire businesses, net of cash acquired			$ 0	$ 49,258
Goodwill	$ 1,468,197		1,468,197		$ 1,469,211
Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Total purchase prices					89,314
Cash					76,198
Cash acquired from acquisition					2,400
Payments to acquire businesses, net of cash acquired					73,800
Fair value of contingent consideration					15,253
Other purchase price adjustments					2,137
Business combination, contingent consideration, liability					23,500
Goodwill					50,384
Transaction and related costs, including integration costs	300	$ 2,100	1,400	$ 3,100
Customer Engagement
Business Acquisition
Goodwill	1,310,682		1,310,682		1,311,068
Customer Engagement \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Goodwill					39,100
Business acquisition, goodwill, expected tax deductible amount					15,700
Cyber Intelligence
Business Acquisition
Goodwill	$ 157,515		$ 157,515		158,143
Cyber Intelligence \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Goodwill					$ 11,300

BUSINESS COMBINATIONS - TWELVE MONTHS ENDED JANUARY 31, 2020 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2020	Jul. 31, 2020
Business Acquisition
Goodwill	$ 1,469,211	$ 1,468,197
Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Cash	76,198
Fair value of contingent consideration	15,253
Other purchase price adjustments	(2,137)
Total purchase prices	89,314
Accounts receivable	3,950
Other current assets, including cash acquired	14,394
Other assets	6,556
Current and other liabilities	(8,531)
Contract liabilities - current and long-term	(3,794)
Deferred income taxes	(4,061)
Net tangible assets	8,514
Identifiable intangible assets	30,416
Goodwill	50,384
Total purchase prices allocation	89,314
Customer relationships \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Identifiable intangible assets	13,299
Developed technology \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Identifiable intangible assets	14,443
Trademarks and trade names \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Identifiable intangible assets	1,367
Non-compete agreements \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Identifiable intangible assets	$ 1,307

BUSINESS COMBINATIONS - TWELVE MONTHS ENDED JANUARY 31, 2020 - INTANGIBLE ASSETS USEFUL LIVES (Details) - Individually Insignificant Business Combinations Year Ended January 31 2020	12 Months Ended
	Jan. 31, 2020
Business Acquisition
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years)	6 years 1 month 6 days
Non-compete agreements
Business Acquisition
Finite-lived intangible asset, useful life	3 years
Minimum \| Customer relationships
Business Acquisition
Finite-lived intangible asset, useful life	5 years
Minimum \| Developed technology
Business Acquisition
Finite-lived intangible asset, useful life	4 years
Minimum \| Trademarks and trade names
Business Acquisition
Finite-lived intangible asset, useful life	3 years
Maximum \| Customer relationships
Business Acquisition
Finite-lived intangible asset, useful life	9 years
Maximum \| Developed technology
Business Acquisition
Finite-lived intangible asset, useful life	5 years
Maximum \| Trademarks and trade names
Business Acquisition
Finite-lived intangible asset, useful life	5 years

BUSINESS COMBINATIONS - OTHER BUSINESS COMBINATION INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Business Acquisition
Changes in fair values of contingent consideration obligations associated with business combinations	$ 1.1	$ (0.8)	$ (3.7)	$ 0.4
Payments of contingent consideration	14.3	$ 17.4	17.4	$ 23.7
Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	22.0		22.0
Accrued expenses and other current liabilities \| Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	14.0		14.0
Other liabilities \| Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	$ 8.0		$ 8.0

INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 777,890	$ 778,675
Accumulated Amortization	(605,644)	(580,911)
Intangible assets with finite lives, Net	172,246	197,764
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	464,580	465,130
Accumulated Amortization	(341,559)	(328,069)
Intangible assets with finite lives, Net	123,021	137,061
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	294,682	294,841
Accumulated Amortization	(251,201)	(241,585)
Intangible assets with finite lives, Net	43,481	53,256
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	12,881	12,957
Accumulated Amortization	(8,178)	(6,783)
Intangible assets with finite lives, Net	4,703	6,174
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	4,440	4,440
Accumulated Amortization	(4,440)	(4,440)
Intangible assets with finite lives, Net	0	0
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	1,307	1,307
Accumulated Amortization	(266)	(34)
Intangible assets with finite lives, Net	$ 1,041	$ 1,273

INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS BY REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Finite-Lived Intangible Assets
Intangible assets, net	$ 172,246	$ 197,764
Customer Engagement
Finite-Lived Intangible Assets
Intangible assets, net	165,522	189,896
Cyber Intelligence
Finite-Lived Intangible Assets
Intangible assets, net	$ 6,724	$ 7,868

INTANGIBLE ASSETS AND GOODWILL - AMORTIZATION AND IMPAIRMENT (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of acquired intangible assets	$ 12.5	$ 13.2	$ 25.2	$ 27.6

INTANGIBLE ASSETS AND GOODWILL - FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Intangible Assets - Future Amortization [Abstract]
2021 (remainder of year)	$ 24,721
2022	46,503
2023	38,480
2024	28,235
2025	11,864
2026 and thereafter	22,443
Intangible assets with finite lives, Net	$ 172,246	$ 197,764

INTANGIBLE ASSETS AND GOODWILL - GOODWILL (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2020	Jan. 31, 2020
Goodwill activity
Goodwill, gross at the beginning of the period	$ 1,535,062	$ 1,536,076
Accumulated impairment losses	(66,865)	(66,865)
Goodwill, net at the beginning of the period	1,469,211
Foreign currency translation and other	(657)
Business combinations, including adjustments to prior period acquisitions	(357)
Goodwill, net, at the end of the period	1,468,197
Customer Engagement
Goodwill activity
Goodwill, gross at the beginning of the period	1,366,725	1,367,111
Accumulated impairment losses	(56,043)	(56,043)
Goodwill, net at the beginning of the period	1,311,068
Foreign currency translation and other	(386)
Business combinations, including adjustments to prior period acquisitions	0
Goodwill, net, at the end of the period	1,310,682
Cyber Intelligence
Goodwill activity
Goodwill, gross at the beginning of the period	168,337	168,965
Accumulated impairment losses	(10,822)	$ (10,822)
Goodwill, net at the beginning of the period	158,143
Foreign currency translation and other	(271)
Business combinations, including adjustments to prior period acquisitions	(357)
Goodwill, net, at the end of the period	$ 157,515

LONG-TERM DEBT - SUMMARY (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020	Jun. 29, 2017	Jun. 18, 2014
Debt Instrument
Less: Unamortized debt discounts and issuance costs	$ (15,033)	$ (22,327)
Total debt	984,104	837,048
Current maturities of long-term debt	380,229	4,250
Long-term debt	603,875	832,798
1.50% Convertible Senior Notes
Debt Instrument
1.50% Convertible Senior Notes	386,887	400,000		$ 400,000
2017 Term Loan
Debt Instrument
Long-term debt, gross	412,250	414,375	$ 425,000
2017 Revolving Credit Facility
Debt Instrument
Long-term debt, gross	$ 200,000	$ 45,000

LONG-TERM DEBT - 1.50% CONVERTIBLE SENIOR NOTES (Details)		3 Months Ended	6 Months Ended
	Jun. 18, 2014 USD ($) shares	Jul. 31, 2020 USD ($) $ / shares	Jul. 31, 2020 USD ($) $ / shares	Jan. 31, 2020 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	$ 400,000,000.0	$ 386,887,000	$ 386,887,000	$ 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 rate			15.5129
1.50% convertible notes - principal amount for conversion rate			$ 1,000
1.50% convertible notes - conversion price (in dollars per share) \| $ / shares		$ 64.46	$ 64.46
1.50% convertible notes - carrying value of debt component	319,900,000	$ 375,000,000.0	$ 375,000,000.0
1.50% convertible notes - carrying value of equity component	$ 80,100,000	78,000,000.0	78,000,000.0
Assumed non-convertible borrowing rate	5.00%
Debt component of convertible note issuance costs	$ 7,600,000
Adjustment to additional paid in capital debt issuance cost	$ 1,900,000
Repurchased amount in cash		13,100,000	13,100,000
Principal amount - repurchased notes		13,000,000.0	13,000,000.0
Debt extinguishment loss		100,000
Reduction on repurchase		200,000	200,000
Unamortized debt discount		10,900,000	10,900,000
Unamortized debt issuance expense		$ 1,000,000.0	$ 1,000,000.0
Effective interest rate (as a percent)		5.31%	5.31%
1.50% convertible notes - number of common shares (in shares)			6,002,000

LONG-TERM DEBT - NOTE HEDGES AND WARRANTS (Details) - USD ($) $ / shares in Units, $ in Millions		6 Months Ended
	Jun. 18, 2014	Jul. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Exercise price of warrants (in dollars per share)		$ 75.00
Option indexed to issuer's equity, shares		6,205,000
Option indexed to issuer's equity, strike price		$ 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 - 2017 CREDIT AGREEMENT - SUMMARY (Details) - USD ($)	Jul. 31, 2020	Jan. 31, 2020	Jun. 29, 2017
2017 Credit Agreement
Debt Instrument
Line of credit facility, maximum borrowing capacity			$ 725,000,000.0
2017 Term Loan
Debt Instrument
Long-term debt, gross	$ 412,250,000	$ 414,375,000	425,000,000.0
Unamortized debt discount			500,000
2017 Revolving Credit Facility
Debt Instrument
Line of credit facility, maximum borrowing capacity			$ 300,000,000.0
Long-term debt, gross	200,000,000	$ 45,000,000
Line of credit facility, fair value of amount outstanding	$ 200,000,000.0
Debt, weighted average interest rate	2.17%

LONG-TERM DEBT - 2017 CREDIT AGREEMENT - INTEREST RATE DETAILS (Details)	6 Months Ended
	Jul. 31, 2020	Jan. 31, 2020
2017 Term Loan
Debt Instrument
Interest rate at end of period (as a percent)	2.17%	3.85%
Effective interest rate (as a percent)	2.37%
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 - DEBT COVENANT (Details)	6 Months Ended
LONG-TERM DEBT - DEBT COVENANT (Details)	Jul. 31, 2020 numerator
2017 Revolving Credit Facility
Debt Instrument
Consolidated Total Debt to Consolidated EBITDA Ratio	4.50

LONG-TERM DEBT - 2017 CREDIT AGREEMENT ISSUANCE AND AMENDMENT COSTS (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Jun. 29, 2017	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019
Debt Instrument
Payments of debt-related costs			$ 2,207	$ 212
2017 Credit Agreement
Debt Instrument
Payments of debt-related costs	$ 6,800
Debt restructuring costs incurred during period		$ 2,100
Payments of debt restructuring costs		1,200
Deferred debt restructuring costs		900
2017 Term Loan
Debt Instrument
Payments of debt-related costs	4,100
Loss on early retirement of debt		200
Deferred debt restructuring costs		500
2017 Revolving Credit Facility
Debt Instrument
Payments of debt-related costs	$ 2,700
Deferred debt restructuring costs		$ 400

LONG-TERM DEBT - FUTURE AMORTIZATION (Details) - 2017 Term Loan - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2020	Jan. 31, 2020	Jun. 29, 2017
Debt Instrument
2021 (remainder of year)	$ 2,125
2022	4,250
2023	4,250
2024	4,250
2025	397,375
Total	412,250	$ 414,375	$ 425,000
Debt Instrument, Periodic Payment
Required quarterly principal payment	$ 1,100

LONG-TERM DEBT - INTEREST EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
1.50% Convertible Senior Notes
Debt Instrument
Interest expense at coupon or contractual rate	$ 1,486	$ 1,500	$ 2,986	$ 3,000
Amortization of debt discounts	3,174	3,102	6,400	6,163
Amortization of deferred debt issuance costs	300	292	604	581
Total interest expense	4,960	4,894	9,990	9,744
Credit Agreements
Debt Instrument
Interest expense at coupon or contractual rate	3,463	4,730	7,976	9,375
Impact of interest rate swap	1,121	0	1,712	0
Amortization of debt discounts	19	17	37	33
Amortization of deferred debt issuance costs	439	401	830	775
Total interest expense	$ 5,042	$ 5,148	$ 10,555	$ 10,183

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - INVENTORIES (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Raw materials	$ 10,461	$ 9,628
Work-in-process	5,525	4,749
Finished goods	4,912	6,118
Total inventories	$ 20,898	$ 20,495

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - OTHER (EXPENSE) INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Other Income and Expenses [Abstract]
Foreign currency gains (losses), net	$ 3,032	$ 774	$ (222)	$ (412)
(Losses) gains on derivative financial instruments, net	(463)	179	551	728
Change in fair value of future tranche right	(13,610)	0	(13,610)	0
Other, net	(1,170)	(44)	(1,160)	(197)
Total other (expense) income, net	$ (12,211)	$ 909	$ (14,441)	$ 119

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Cash paid for interest	$ 14,022	$ 12,410
Cash payments of income taxes, net	9,684	16,419
Cash payments for operating leases	14,234	13,688
Liabilities for contingent consideration in business combinations, including measurement period adjustments	0	5,200
Series A Preferred Stock dividends declared	1,589	0
Finance leases of property and equipment	841	377
Accrued but unpaid purchases of property and equipment	2,020	4,505
Inventory transfers to property and equipment	$ 575	$ 463

CONVERTIBLE PREFERRED STOCK (Details) - USD ($)			3 Months Ended		6 Months Ended
CONVERTIBLE PREFERRED STOCK (Details) - USD ($)	May 07, 2020	Dec. 04, 2019	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020	Dec. 03, 2019
Equity, Class of Treasury Stock [Line Items]
Common stock, par value (in dollars per share)			$ 0.001		$ 0.001		$ 0.001
Preferred stock, liquidation preference value			$ 200,000,000.0		$ 200,000,000.0
Future tranche right, fair value	$ 3,400,000
Future tranche right, fair value			10,200,000		10,200,000
Change in fair value of future tranche right			13,610,000	$ 0	13,610,000	$ 0
Carrying value of preferred stock			200,628,000		200,628,000		$ 0
Convertible Preferred Stock
Equity, Class of Treasury Stock [Line Items]
Sale of stock, consideration received on transaction		$ 400,000,000.0
Series A Preferred Stock
Equity, Class of Treasury Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
Voting rights, percent								19.90%
Preferred stock, liquidation preference (in dollars per share)	$ 1,000
Preferred stock, dividend payment terms, period	48 months
Dividends declared and accrued			$ 1,600,000		$ 1,600,000
Conversion price (in dollars per share)	$ 53.50
Shares issued upon conversion (in shares)			3,700,000		3,700,000
Convertible preferred stock, mandatory conversion term, period following close date with option to require all outstanding shares	36 months
Common stock, trading days	30 days
Common stock, consecutive trading days	45 days
Convertible preferred stock, threshold percentage of conversion trigger	175.00%
Convertible preferred stock, period following closing date for redemption	72 months
Preferred stock, redemption price in percentage	100.00%
Internal rate of return	8.00%
Convertible preferred stock, disposition term, number of months anniversary of consummation of Spin-Off	24 months
Preferred stock, redemption terms	102
Unpaid dividends on the preferred stock			$ 2,500,000		$ 2,500,000
Carrying value of preferred stock	$ 203,400,000
Series A Preferred Stock \| Dividend for the first 48-month anniversary of closing date
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate	5.20%
Series A Preferred Stock \| Dividend after the first 48-month anniversary of closing date
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate	4.00%
Series A Preferred Stock \| Dividend increase term in the event
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate	6.00%
Series A Preferred Stock \| Series A Private Placement
Equity, Class of Treasury Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000.0
Sale of stock, number of shares issued (in shares)	200,000
Preferred stock, par value (in dollars per share)	$ 0.001
Sale of stock, price per share (in dollars per share)	$ 1,000
Payments of stock issuance costs	$ 2,700,000
Series A Preferred Stock \| Minimum
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate, increase percentage each year	1.00%
Convertible preferred stock, disposition term, number of months anniversary of closing date	12 months
Series A Preferred Stock \| Maximum
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate, increase percentage each year	10.00%
Convertible preferred stock, disposition term, number of months anniversary of closing date	36 months
Series B Preferred Stock \| Series B Private Placement
Equity, Class of Treasury Stock [Line Items]
Preferred stock, par value (in dollars per share)	$ 0.001
Sale of stock, price per share (in dollars per share)	$ 1,000
Series B Preferred Stock \| Series B Private Placement \| Scenario, Plan
Equity, Class of Treasury Stock [Line Items]
Sale of stock, number of shares issued (in shares)	200,000

STOCKHOLDERS' EQUITY - DIVIDENDS ON COMMON STOCK (Details) - USD ($)	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Stockholders' Equity Note [Abstract]
Dividends on common stock	$ 0	$ 0

STOCKHOLDERS' EQUITY - SHARE REPURCHASE PROGRAMS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020	Dec. 04, 2019
Class of Stock [Line Items]
Stock repurchase program, authorized amount						$ 300,000
Treasury stock acquired	$ 33,990	$ 474	$ 34,000	$ 500
Apax Investment
Class of Stock [Line Items]
Treasury stock acquired			$ 34,000		$ 116,100

STOCKHOLDERS' EQUITY - TREASURY STOCK (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020
Stockholders' Equity Note [Abstract]
Treasury stock aquired (in shares)			613,000	8,000
Treasury stock acquired	$ 33,990	$ 474	$ 34,000	$ 500
Treasury stock, at cost(in shares)			4,404,000		3,791,000
Treasury stock, at cost			$ 208,124		$ 174,134

STOCKHOLDERS' EQUITY - ISSUANCE OF CONVERTIBLE PREFERRED STOCK (Details) - USD ($)	May 07, 2020	Dec. 04, 2019
Convertible Preferred Stock
Class of Stock [Line Items]
Issuance of convertible preferred stock		$ 400,000,000.0
Series A Preferred Stock
Class of Stock [Line Items]
Issuance of convertible preferred stock	$ 200,000,000.0

STOCKHOLDERS' EQUITY - SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands	6 Months Ended
	Jul. 31, 2020 USD ($)
Activity in Accumulated Other Comprehensive Loss
Beginning balances	$ 1,242,437
Other comprehensive income (loss) before reclassifications	(7,780)
Amounts reclassified out of accumulated other comprehensive income (loss)	(1,350)
Net other comprehensive income (loss)	(6,430)
Ending balances	1,235,502
Foreign Currency Translation Adjustments
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(141,963)
Other comprehensive income (loss) before reclassifications	(2,336)
Amounts reclassified out of accumulated other comprehensive income (loss)	0
Net other comprehensive income (loss)	(2,336)
Ending balances	(144,299)
AOCI Attributable to Parent
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(151,865)
Ending balances	(158,295)
Foreign Exchange Contract \| Unrealized gains (losses) on derivative financial instruments designated as hedges
Activity in Accumulated Other Comprehensive Loss
Beginning balances	626
Other comprehensive income (loss) before reclassifications	496
Amounts reclassified out of accumulated other comprehensive income (loss)	(11)
Net other comprehensive income (loss)	507
Ending balances	1,133
Interest Rate Swap \| Unrealized gains (losses) on derivative financial instruments designated as hedges
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(10,528)
Other comprehensive income (loss) before reclassifications	(5,940)
Amounts reclassified out of accumulated other comprehensive income (loss)	(1,339)
Net other comprehensive income (loss)	(4,601)
Ending balances	$ (15,129)

STOCKHOLDERS' EQUITY - AMOUNTS RECLASSIFIED OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Research and development, net	$ 55,229		$ 58,685		$ 114,308	$ 115,854
Selling, general and administrative	105,406		126,265		217,057	247,986
Interest expense	(10,263)		(10,107)		(20,961)	(20,041)
(Loss) income before (benefit) provision for income taxes	20,682		7,764		14,945	12,934
(Provision) benefit from income taxes	(10,095)		4,507		(8,333)	3,098
Net income	10,587	$ (3,975)	12,271	$ 3,761	6,612	16,032
Product
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	(24,648)		(29,424)		(45,966)	(57,544)
Service and support
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	(69,023)		(81,430)		(145,422)	(160,791)
Foreign Exchange Contract \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Research and development, net	20		0		(6)	(472)
Selling, general and administrative	13		0		(4)	(311)
(Loss) income before (benefit) provision for income taxes	39		0		(13)	(939)
(Provision) benefit from income taxes	(4)		0		2	94
Net income	35		0		(11)	(845)
Foreign Exchange Contract \| Product \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	2		0		(1)	(72)
Foreign Exchange Contract \| Service and support \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	4		0		(2)	(84)
Interest Rate Swap \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Interest expense	(1,120)		0		(1,711)	0
(Loss) income before (benefit) provision for income taxes	(1,120)		0		(1,711)	0
(Provision) benefit from income taxes	244		0		372	0
Net income	$ (876)		$ 0		$ (1,339)	$ 0

INCOME TAXES - PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 10,095	$ (4,507)	$ 8,333	$ (3,098)
(Loss) income before (benefit) provision for income taxes	$ 20,682	$ 7,764	$ 14,945	$ 12,934
Effective income tax rate (as a percent)	48.80%	(58.00%)	55.80%	(24.00%)
Other tax expense (benefit)		$ 6,700		$ 6,700
Income tax provision - excluding one time tax benefit		$ 2,200		$ 3,600
Effective tax rate-excluding one time tax benefit		27.80%		27.60%

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68072869&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jan. 31, 2020
Income Tax Disclosure [Abstract]
Unrecognized tax benefits (excluding interest and penalties)	$ 93.0	$ 91.3
Unrecognized tax benefits, income tax penalties and interest accrued	3.2	$ 2.9
Unrecognized tax benefits that would impact effective tax rate	93.0
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit	$ 1.3

FAIR VALUE MEASUREMENTS - FAIR VALUE TABLE (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Liabilities:
Future tranche right	$ 10,200
Recurring \| Level 1
Assets:
Money market funds	344,815	$ 89
Foreign currency forward contracts	0	0
Contingent consideration receivable	0	0
Total assets	344,815	89
Liabilities:
Foreign currency forward contracts	0	0
Interest rate swap agreement	0	0
Future tranche right	0
Contingent consideration - business combinations	0	0
Option to acquire noncontrolling interests of consolidated subsidiaries	0	0
Total liabilities	0	0
Recurring \| Level 2
Assets:
Money market funds	0	0
Foreign currency forward contracts	1,467	812
Contingent consideration receivable	0	0
Total assets	1,467	812
Liabilities:
Foreign currency forward contracts	140	132
Interest rate swap agreement	19,188	13,501
Future tranche right	0
Contingent consideration - business combinations	0	0
Option to acquire noncontrolling interests of consolidated subsidiaries	0	0
Total liabilities	19,328	13,633
Recurring \| Level 3
Assets:
Money market funds	0	0
Foreign currency forward contracts	0	0
Contingent consideration receivable	698	738
Total assets	698	738
Liabilities:
Foreign currency forward contracts	0	0
Interest rate swap agreement	0	0
Future tranche right	10,236
Contingent consideration - business combinations	22,012	42,875
Option to acquire noncontrolling interests of consolidated subsidiaries	3,050	2,900
Total liabilities	$ 35,298	$ 45,775

FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Details) $ in Thousands	May 07, 2020 shares	Jul. 31, 2020 USD ($)	Jan. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Noncontrollling equity investment in privately-held company		$ 3,800
Discount Rate \| Option to Acquire Noncontrolling Interests
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Rights outstanding, measurement input		0.090	0.090
Series A Preferred Stock \| Series A Private Placement
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Sale of stock, number of shares issued (in shares) \| shares	200,000
Series B Preferred Stock \| Series B Private Placement \| Scenario, Plan
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Sale of stock, number of shares issued (in shares) \| shares	200,000
Level 3 \| Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration receivable		$ 698	$ 738
Level 2 \| Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration receivable		0	0
Term Loans \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair value of term loans		411,000	417,000
2017 Revolving Credit Facility \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair value of term loans		198,000	45,000
1.50% Convertible Senior Notes \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair values of Notes		$ 385,000	$ 438,000
Minimum \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, liability, measurement input		0.019	0.021
Contingent consideration, asset, measurement input		0.048	0.043
Maximum \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, liability, measurement input		0.055	0.049
Contingent consideration, asset, measurement input		0.055	0.049
Weighted Average \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, liability, measurement input		0.042
Contingent consideration, asset, measurement input \| pURE		0.052

FAIR VALUE MEASUREMENTS - FUTURE TRANCHE RIGHT LIABILITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Change in fair values, recorded in other (expense) income, net	$ 1,100	$ (800)	$ (3,700)	$ 400
Future tranche right
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			0	0
Fair value of future tranche right upon issuance of the Series A Preferred Stock			3,374	0
Change in fair values, recorded in other (expense) income, net			(13,610)	0
Fair value measurement at the end of the period	$ (10,236)	$ 0	$ (10,236)	$ 0

FAIR VALUE MEASUREMENTS - CONTINGENT CONSIDERATION TABLE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Changes in fair values, recorded in operating expenses	$ 1,100	$ (800)	$ (3,700)	$ 400
Payments of contingent consideration	14,300	17,400	17,400	23,700
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			42,875	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments			0	5,200
Changes in fair values, recorded in operating expenses			(3,714)	370
Payments of contingent consideration			(17,375)	(23,712)
Foreign currency translation and other			226	(218)
Fair value measurement at the end of the period	$ 22,012	$ 42,980	$ 22,012	$ 42,980

FAIR VALUE MEASUREMENTS - OPTION TO ACQUIRE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Changes in fair values, recorded in operating expenses	$ 1,100	$ (800)	$ (3,700)	$ 400
Option to Acquire Noncontrolling Interests
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			2,900	3,000
Changes in fair values, recorded in operating expenses			150	(50)
Fair value measurement at the end of the period	$ 3,050	$ 2,950	$ 3,050	$ 2,950

FAIR VALUE MEASUREMENTS - FAIR VALUE INPUTS AND ASSUMPTIONS (Details) - Level 3 - Recurring - Future tranche right	Jul. 31, 2020	May 07, 2020
Risk-free interest rate for preferred stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.0119	0.0131
Implied credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.0778	0.1078
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.3000	0.3000

DERIVATIVE FINANCIAL INSTRUMENTS - INTEREST RATE SWAP AGREEMENTS (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
	May 01, 2020	Jul. 31, 2020	Jan. 31, 2018	Jan. 31, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
Reclassification of cash flow hedge gain (loss), after Tax	$ 16.0
Reclassification of cash flow hedge gain (loss), before Tax	$ 20.4
Foreign Exchange Contract
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative, remaining maturity		12 months
Derivative - notional amount		$ 79.7		$ 89.0
2016 Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative - notional amount		$ 200.0
Derivative - fixed interest rate		4.143%
Derivative - index interest rate floor		0.75%
Derivative - basis spread on variable rate		2.75%
Gain on discontinuation of cash flow hedge			$ 0.9
2018 Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative - notional amount		$ 200.0
Derivative - fixed interest rate		2.949%
Derivative - index interest rate floor		0.00%

DERIVATIVE FINANCIAL INSTRUMENTS - ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Fair Values of Derivative Financial Instruments
Assets, fair value	$ 1,467	$ 812
Liabilities, fair value	19,328	13,633
Prepaid expenses and other current assets \| Foreign Exchange Contract \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Assets, fair value	1,321	710
Prepaid expenses and other current assets \| Foreign Exchange Contract \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, fair value	146	102
Accrued expenses and other current liabilities \| Foreign Exchange Contract \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	20	16
Accrued expenses and other current liabilities \| Foreign Exchange Contract \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	120	116
Accrued expenses and other current liabilities \| Interest Rate Swap \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	0	2,060
Accrued expenses and other current liabilities \| Interest Rate Swap \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	3,043	0
Other liabilities \| Interest Rate Swap \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	0	11,441
Other liabilities \| Interest Rate Swap \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	$ 16,145	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	May 01, 2020	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
Reclassification of cash flow hedge gain (loss), before Tax	$ 20,400
Accumulated other comprehensive income (Loss), net of tax		$ (158,295)		$ (158,295)		$ (151,865)
Cash flow hedging \| Designated as cash flow hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in other comprehensive income (loss)		1,519	$ (2,904)	(6,941)	$ (4,579)
Reclassification of cash flow hedge gain (loss), before Tax		(1,081)	0	(1,724)	(939)
Foreign Exchange Contract \| Cash flow hedging \| Designated as cash flow hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in other comprehensive income (loss)		1,519	1,637	594	1,979
Reclassification of cash flow hedge gain (loss), before Tax		39	0	(13)	(939)
Foreign Exchange Contract \| Cash flow hedging \| Designated as cash flow hedges \| Unrealized gains (losses) on derivative financial instruments designated as hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains on foreign currency forward contracts expected to be reclassified to earnings during next 12 months		1,100		1,100
Interest Rate Swap \| Cash flow hedging \| Designated as cash flow hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in other comprehensive income (loss)		0	(4,541)	(7,535)	(6,558)
Reclassification of cash flow hedge gain (loss), before Tax		(1,120)	$ 0	(1,711)	$ 0
2018 Interest Rate Swap \| Cash flow hedging \| Designated as cash flow hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net losses on interest rate swaps expected to be reclassified to earnings during next 12 months		4,100		4,100
2018 Interest Rate Swap \| Cash flow hedging \| Designated as cash flow hedges \| Unrealized gains (losses) on derivative financial instruments designated as hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Accumulated other comprehensive income (Loss), net of tax		$ (15,100)		$ (15,100)

DERIVATIVE FINANCIAL INSTRUMENTS - NOT DESIGNATED AT HEDGING INSTRUMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ (463)	$ 179	$ 551	$ 728
Not designated as hedging instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	(464)	179	550	728
Not designated as hedging instruments \| Foreign currency forward contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	(601)	212	413	776
Not designated as hedging instruments \| Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ 137	$ (33)	$ 137	$ (48)

STOCK-BASED COMPENSATION - NEW STOCK-BASED COMPENSATION PLAN (Details) - 2019 Long-Term Stock Incentive Plan	Jul. 31, 2020 shares
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	9,475,000
Reduction in 2019 long-term stock incentive plan capacity from awards other than options or SARs	2.38

STOCK-BASED COMPENSATION - BY LINE ITEM (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Stock-Based Compensation Plans
Stock-based compensation	$ 17,397	$ 20,551	$ 31,581	$ 37,654
Cost of product revenue
Stock-Based Compensation Plans
Stock-based compensation	410	488	720	822
Cost of service and support revenue
Stock-Based Compensation Plans
Stock-based compensation	1,328	1,546	1,985	2,616
Research and development, net
Stock-Based Compensation Plans
Stock-based compensation	2,956	3,347	5,292	5,937
Selling, general and administrative
Stock-Based Compensation Plans
Stock-based compensation	$ 12,703	$ 15,170	$ 23,584	$ 28,279

STOCK-BASED COMPENSATION - BY TYPE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Stock-Based Compensation Plans
Stock-based compensation	$ 17,397	$ 20,551	$ 31,581	$ 37,654
Equity Settled Awards
Stock-Based Compensation Plans
Stock-based compensation	17,375	20,540	31,567	37,605
Equity Settled Awards \| Restricted stock units and restricted stock awards
Stock-Based Compensation Plans
Stock-based compensation	13,420	17,966	28,449	32,856
Equity Settled Awards \| Stock bonus program and bonus share program
Stock-Based Compensation Plans
Stock-based compensation	3,955	2,574	3,118	4,749
Cash Settled Awards \| Phantom stock units (cash-settled awards)
Stock-Based Compensation Plans
Stock-based compensation	$ 22	$ 11	$ 14	$ 49

STOCK-BASED COMPENSATION - RESTRICTED STOCK UNITS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Summary of award activity
Beginning balance (in shares)	2,736	2,777
Granted (in shares)	161	1,554
Released (in shares)	(1,274)	(1,349)
Forfeited (in shares)	(138)	(139)
Ending balance (in shares)	1,485	2,843
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share)	$ 52.53	$ 41.05
Granted (in dollars per share)	49.73	60.75
Released (in dollars per share)	47.94	40.36
Forfeited (in dollars per share)	52.56	42.56
Ending balance (in dollars per share)	$ 56.17	$ 52.22
Restricted Stock Units (RSUs)
Summary of award activity
Granted (in shares)	54
Additional disclosures
Unrecognized compensation expense	$ 58.1
Remaining weighted-average vesting period over which expense is expected to be recognized (in years)	1 year 4 months 24 days

STOCK-BASED COMPENSATION - PERFORMANCE RESTRICTED STOCK UNITS (Details) - shares shares in Thousands	6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Stock-Based Compensation Plans
Beginning balance (in shares)	2,736	2,777
Granted (in shares)	161	1,554
Released (in shares)	(1,274)	(1,349)
Forfeited (in shares)	(138)	(139)
Ending balance (in shares)	1,485	2,843
Performance- based RSU's
Stock-Based Compensation Plans
Beginning balance (in shares)	526	512
Granted (in shares)	107	286
Released (in shares)	(231)	(233)
Forfeited (in shares)	(25)	(30)
Ending balance (in shares)	377	535

STOCK-BASED COMPENSATION - STOCK BONUS PROGRAM - (Details) - Stock Bonus Program - shares		6 Months Ended
	Mar. 20, 2020	Jul. 31, 2020	Jan. 31, 2020
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, award vesting period		1 year
Share-based compensation arrangement by share-based payment award, determination of shares issuable trailing period of average price of common stock		5 days
2020 Plan
Stock-Based Compensation Plans
Discount from market price (as a percent)	15.00%	15.00%
Share-based compensation arrangement by share-based payment award, number of shares authorized	200,000		200,000
Shares expected to be issued under SBP		32,000

STOCK-BASED COMPENSATION - BONUS SHARE PROGRAM (Details) - USD ($) $ in Millions	Jan. 31, 2021	Jul. 31, 2020	Mar. 20, 2020	Jan. 31, 2020
Combined Stock Bonus Program and Bonus Share Program
Stock-Based Compensation Plans
Total accrued liability		$ 18.5		$ 17.3
2020 Plan \| Combined Stock Bonus Program and Bonus Share Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized				305,000
2020 Plan \| Stock Bonus Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized			200,000	200,000
Remaining authorized shares in performance period		273,000
Shares expected to be issued under SBP		32,000
2021 Plan \| Combined Stock Bonus Program and Bonus Share Program \| Forecast
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	300,000

COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) $ in Millions	6 Months Ended
	Jul. 31, 2020 USD ($)
Loss Contingency, Information about Litigation Matters [Abstract]
Loss contingency, damages sought, value	$ 150.0

SEGMENT INFORMATION - SEGMENT OVERVIEW (Details)	6 Months Ended
SEGMENT INFORMATION - SEGMENT OVERVIEW (Details)	Jul. 31, 2020 segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT INFORMATION - SEGMENT REVENUE AND SEGMENT CONTRIBUTION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 309,109	$ 324,305	$ 596,404	$ 639,564
Operating income	42,317	15,275	48,491	29,743
Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	204,080	211,436	389,945	418,531
Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	105,029	112,869	206,459	221,033
Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Operating income	125,977	110,359	216,738	216,467
Operating segments \| Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	207,146	218,424	396,273	434,291
Operating income	90,302	78,788	156,099	157,606
Operating segments \| Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	106,267	112,893	208,789	221,184
Operating income	35,675	31,571	60,639	58,861
Reconciling Items
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	(4,304)	(7,012)	(8,658)	(15,911)
Reconciling Items \| Customer Engagement
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	(3,066)	(6,988)	(6,328)	(15,760)
Reconciling Items \| Cyber Intelligence
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ (1,238)	$ (24)	$ (2,330)	$ (151)

- Definition

+ References

+ Details

SEGMENT INFORMATION - RECONCILATION OF SEGMENT CONTRIBUTION TO OPERATING INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	$ (309,109)	$ (324,305)	$ (596,404)	$ (639,564)
Amortization of acquired intangible assets	12,500	13,200	25,200	27,600
Stock-based compensation	17,397	20,551	31,581	37,654
Total reconciling items, net	168,693	192,589	347,488	379,192
Operating income	42,317	15,275	48,491	29,743
Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Revenue	4,304	7,012	8,658	15,911
Shared support expenses	40,822	44,416	84,163	88,270
Amortization of acquired intangible assets	12,486	13,226	25,160	27,646
Stock-based compensation	17,397	20,551	31,581	37,654
Acquisition, integration, restructuring, and other unallocated expenses	8,651	9,879	18,685	17,243
Total reconciling items, net	$ 83,660	$ 95,084	$ 168,247	$ 186,724

- Definition

+ References

+ Details

REVENUE RECOGNITION - REMAINING PERFORMANCE OBLIGATIONS (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jan. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 1,041,152	$ 1,074,212
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 731,659
Revenue performance obligation, period		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 746,747
Revenue performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 342,553
Revenue performance obligation, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 294,405
Revenue performance obligation, period
Customer Engagement
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 486,543	$ 492,479
Customer Engagement \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 374,982
Revenue performance obligation, period		1 year
Customer Engagement \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 362,764
Revenue performance obligation, period	1 year
Customer Engagement \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 117,497
Revenue performance obligation, period
Customer Engagement \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 123,779
Revenue performance obligation, period
Cyber Intelligence
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 554,609	$ 581,733
Cyber Intelligence \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 356,677
Revenue performance obligation, period		1 year
Cyber Intelligence \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 383,983
Revenue performance obligation, period	1 year
Cyber Intelligence \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations		$ 225,056
Revenue performance obligation, period
Cyber Intelligence \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 170,626
Revenue performance obligation, period