0001166388-21-000028 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 31, 2021	Mar. 15, 2021	Jul. 31, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 31, 2021
Current Fiscal Year End Date	--01-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2,908,529,000
Entity Common Stock, Shares Outstanding		65,786,509
Documents Incorporated by Reference [Text Block]	The information required by Part III of this report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Stockholders to be held in 2021, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
Entity Central Index Key	0001166388
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Current Assets:
Cash and cash equivalents	$ 663,843	$ 379,146
Restricted cash and cash equivalents, and restricted bank time deposits	27,057	43,860
Short-term investments	51,013	20,215
Accounts receivable, net of allowance for doubtful accounts of $6.2 million and $5.3 million, respectively	381,158	382,435
Contract assets, net	57,033	64,961
Inventories	20,083	20,495
Prepaid expenses and other current assets	77,555	87,946
Total current assets	1,277,742	999,058
Property and equipment, net	106,242	116,111
Operating lease right-of-use assets	88,889	102,149
Goodwill	1,485,590	1,469,211
Intangible assets, net	149,043	197,764
Deferred income taxes	14,489	13,802
Other assets	139,300	117,963
Total assets	3,261,295	3,016,058
Current Liabilities:
Accounts payable	76,975	71,604
Accrued expenses and other current liabilities	311,706	229,698
Current maturities of long-term debt	386,713	4,250
Contract liabilities	388,045	397,350
Total current liabilities	1,163,439	702,902
Long-term debt	402,781	832,798
Long-term contract liabilities	38,539	40,565
Operating lease liabilities	79,886	90,372
Deferred income taxes	36,976	39,829
Other liabilities	51,641	67,155
Total liabilities	1,773,262	1,773,621
Commitments and Contingencies
Temporary Equity:
Preferred stock - $0.001 par value; authorized 2,207,000; Series A Preferred Stock; 200,000 shares issued and outstanding at January 31, 2021; no shares issued and outstanding at January 31, 2020; aggregate liquidation preference and current redemption value of $206,067 at January 31, 2021.	200,628	0
Equity component of currently redeemable convertible notes	4,841	0
Total temporary equity	205,469	0
Stockholders' Equity:
Common stock - $0.001 par value; authorized 120,000,000 shares. Issued 70,177,000 and 68,529,000; outstanding 65,773,000 and 64,738,000 shares at January 31, 2021 and 2020, respectively	70	68
Additional paid-in capital	1,726,166	1,660,889
Treasury stock, at cost 4,404,000 and 3,791,000 shares at January 31, 2021 and 2020, respectively	(208,124)	(174,134)
Accumulated deficit	(113,797)	(105,590)
Accumulated other comprehensive loss	(136,878)	(151,865)
Total Verint Systems Inc. stockholders' equity	1,267,437	1,229,368
Noncontrolling interests	15,127	13,069
Total stockholders' equity	1,282,564	1,242,437
Total liabilities, temporary equity, and stockholders' equity	$ 3,261,295	$ 3,016,058

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Allowance for doubtful accounts	$ (6,200)	$ (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
Common stock, authorized (in shares)	120,000,000
Common stock, issued (in shares)	70,177,000	68,529,000
Common stock, outstanding (in shares)	65,773,000	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	$ 206,067
Preferred stock, redemption value	$ 206,067

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Revenue:
Revenue	$ 1,273,705	$ 1,303,634	$ 1,229,747
Cost of revenue:
Amortization of acquired technology	18,905	23,984	25,403
Total cost of revenue	415,594	463,766	449,213
Gross profit	858,111	839,868	780,534
Operating expenses:
Research and development, net	240,169	231,683	209,106
Selling, general and administrative	478,242	488,871	426,183
Amortization of other acquired intangible assets	30,995	31,458	31,010
Total operating expenses	749,406	752,012	666,299
Operating income	108,705	87,856	114,235
Other income (expense), net:
Interest income	2,808	5,620	4,777
Interest expense	(39,975)	(40,378)	(37,344)
Other (expense) income, net	(55,315)	205	(3,906)
Total other expense, net	(92,482)	(34,553)	(36,473)
Income before provision for income taxes	16,223	53,303	77,762
Provision for income taxes	16,330	17,620	7,542
Net (loss) income	(107)	35,683	70,220
Net income attributable to noncontrolling interests	7,160	6,999	4,229
Net (loss) income attributable to Verint Systems Inc.	(7,267)	28,684	65,991
Dividends on preferred stock	(7,656)	0	0
Net (loss) income attributable to Verint Systems Inc. common shares	$ (14,923)	$ 28,684	$ 65,991
Net (loss) income per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ (0.23)	$ 0.43	$ 1.02
Diluted (in dollars per share)	$ (0.23)	$ 0.43	$ 1.00
Weighted-average common shares outstanding:
Basic (in shares)	65,173	66,129	64,913
Diluted (in shares)	65,173	67,355	66,245
Product
Revenue:
Revenue	$ 406,254	$ 454,875	$ 454,650
Cost of revenue:
Cost of revenue	96,161	127,183	129,922
Service and support
Revenue:
Revenue	867,451	848,759	775,097
Cost of revenue:
Cost of revenue	$ 300,528	$ 312,599	$ 293,888

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Net (loss) income	$ (107)	$ 35,683	$ 70,220
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation adjustments	17,794	(772)	(34,485)
Benefit for income taxes on net increase (decrease) from foreign exchange contracts and interest rate swap designated as hedges	636	1,809	1,466
Other comprehensive income (loss)	15,299	(6,650)	(41,821)
Comprehensive income	15,192	29,033	28,399
Comprehensive income attributable to noncontrolling interests	7,472	6,989	4,173
Comprehensive income attributable to Verint Systems Inc.	7,720	22,044	24,226
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	37	1,786	(4,774)
Unrealized Gain on Interest Rate Swap Designated as Hedge
Other comprehensive income (loss), net of reclassification adjustments:
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, before tax	$ (3,168)	$ (9,473)	$ (4,028)

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss	Total Verint Systems Inc. Stockholders’ Equity	Total Verint Systems Inc. Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjustment	Non-controlling Interests
Balances (in shares) at Jan. 31, 2018			63,836
Balances at Jan. 31, 2018	$ 1,132,336	$ 38,047	$ 65	$ 1,519,724	$ (57,425)	$ (238,312)	$ 38,047	$ (103,460)	$ 1,120,592	$ 38,047	$ 11,744
Increase (Decrease) in Stockholders' Equity
Net (loss) income	70,220					65,991			65,991		4,229
Other comprehensive (loss) income	(41,821)							(41,765)	(41,765)		(56)
Stock-based compensation - equity-classified awards	57,659			57,659					57,659
Common stock issued for stock awards and stock bonuses (in shares)			1,501
Common stock issued for stock awards and stock bonuses	$ 8,885		$ 2	8,883					8,885
Treasury stock acquired (in shares)	(4)		(4)
Treasury stock acquired	$ (173)				(173)				(173)
Capital contributions by noncontrolling interest	60										60
Dividends to noncontrolling interest	(4,409)										(4,409)
Balances (in shares) at Jan. 31, 2019			65,333
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	35,683					28,684			28,684		6,999
Other comprehensive (loss) income	(6,650)							(6,640)	(6,640)		(10)
Stock-based compensation - equity-classified awards	65,080			65,080					65,080
Common stock issued for stock awards and stock bonuses (in shares)			1,531
Common stock issued for stock awards and stock bonuses	$ 9,544		$ 1	9,543					9,544
Treasury stock acquired (in shares)	(2,126)		(2,126)
Treasury stock acquired	$ (116,536)				(116,536)				(116,536)
Dividends to noncontrolling interest	$ (5,488)										(5,488)
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Balances (in shares) at Jan. 31, 2020			64,738
Balances at Jan. 31, 2020	$ 1,242,437	$ (940)	$ 68	1,660,889	(174,134)	(105,590)	$ (940)	(151,865)	1,229,368	$ (940)	13,069
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(107)					(7,267)			(7,267)		7,160
Other comprehensive (loss) income	15,299							14,987	14,987		312
Stock-based compensation - equity-classified awards	63,005			63,005					63,005
Common stock issued for stock awards and stock bonuses (in shares)			1,646
Common stock issued for stock awards and stock bonuses	14,110		$ 2	14,108					14,110
Exercises of stock options (in shares)			2
Exercises of stock options	$ 12			12					12
Treasury stock acquired (in shares)	(613)		(613)
Treasury stock acquired	$ (33,990)				(33,990)				(33,990)
Dividends to noncontrolling interest	(5,414)										(5,414)
Preferred stock dividends	(6,789)			(6,789)					(6,789)
Reacquisition of equity component from convertible notes repurchases, net of taxes	(218)			(218)					(218)
Temporary equity reclassification	(4,841)			(4,841)					(4,841)
Balances (in shares) at Jan. 31, 2021			65,773
Balances at Jan. 31, 2021	$ 1,282,564		$ 70	$ 1,726,166	$ (208,124)	$ (113,797)		$ (136,878)	$ 1,267,437		$ 15,127

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Cash flows from operating activities:
Net (loss) income	$ (107)	$ 35,683	$ 70,220
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	100,408	91,532	88,915
Provision for doubtful accounts	3,777	2,572	2,746
Stock-based compensation, excluding cash-settled awards	62,289	82,698	66,657
Change in fair value of future tranche right	56,146	0	0
Amortization of discount on convertible notes	12,883	12,490	11,850
(Benefit) provision from deferred income taxes	(3,735)	2,145	(3,017)
Non-cash losses (gains) on derivative financial instruments, net	1,362	(599)	(2,511)
Other non-cash items, net	(8,188)	4,544	(2,328)
Changes in operating assets and liabilities, net of effects of business combinations and divestitures:
Accounts receivable	(2,288)	(6,894)	(21,520)
Contract assets	8,379	(1,470)	5,751
Inventories	(1,508)	1,752	(8,208)
Prepaid expenses and other assets	(16,736)	13,523	(4,753)
Accounts payable and accrued expenses	49,430	(14,488)	(15,648)
Contract liabilities	(11,332)	27,575	32,919
Other liabilities	902	(13,290)	(7,328)
Other, net	2,164	131	1,506
Net cash provided by operating activities	253,846	237,904	215,251
Cash flows from investing activities:
Cash paid for business combinations, including adjustments, net of cash acquired	0	(74,096)	(90,022)
Purchases of property and equipment	(27,880)	(35,028)	(31,686)
Purchases of investments	(151,116)	(47,407)	(59,065)
Maturities and sales of investments	120,937	59,324	33,118
Settlements of derivative financial instruments not designated as hedges	159	3,093	1,335
Cash paid for capitalized software development costs	(12,444)	(17,222)	(7,320)
Change in restricted bank time deposits, including long-term portion	31,238	(14,215)	(21,304)
Other investing activities	1,863	(250)	(779)
Net cash used in investing activities	(37,243)	(125,801)	(175,723)
Cash flows from financing activities:
Proceeds from issuance of preferred stock and future tranche right, net of issuance costs	197,254	0	0
Proceeds from borrowings	155,000	45,000	0
Repayments of borrowings and other financing obligations	(207,165)	(6,478)	(5,983)
Payments to repurchase convertible notes	(13,032)	0	0
Payments of equity issuance, debt issuance, and other debt-related costs	(2,287)	(212)	(206)
Dividends or distributions paid to noncontrolling interests	(5,414)	(5,488)	(4,409)
Purchases of treasury stock	(36,836)	(113,690)	(173)
Preferred stock dividend payments	(1,589)	0	0
Payments of deferred purchase price and contingent consideration for business combinations (financing portion) and other financing activities	(13,998)	(30,454)	(11,110)
Net cash provided by (used in) financing activities	71,933	(111,322)	(21,881)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(60)	(1,823)	(3,158)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents	288,476	(1,042)	14,489
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year	411,657	412,699	398,210
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year	700,133	411,657	412,699
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of year to the consolidated balance sheets:
Cash and cash equivalents	663,843	379,146	369,975
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$ 700,133	$ 412,699	$ 398,210

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

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

On February 1, 2021, we completed the previously announced spin-off (the “Spin-Off”) of Cognyte Software Ltd. (“Cognyte”), a company limited by shares incorporated under the laws of the State of Israel whose business and operations consist of our former Cyber Intelligence Solutions business (the “Cognyte Business”). Cognyte is a global leader in security analytics software that empowers governments and enterprises with Actionable Intelligence® for a safer world. Please see “Recent Developments” section below for more details related to the Spin-Off.

Verint helps brands provide Boundless Customer Engagement™. For more than two decades, the world’s most iconic brands – including more than 85 of the Fortune 100 companies – have trusted Verint to provide the technology and domain expertise they require to effectively build enduring customer relationships. Through the Verint Cloud Platform, we offer our customers and partners solutions that are based on artificial intelligence (AI) and analytics to automate workflows across enterprise silos to optimize workforce expense and drive an elevated consumer experience. These solutions are used by approximately 10,000 organizations in 175 countries across a diverse set of verticals, including financial services, healthcare, utilities, technology, and government. Our customers include large enterprises with thousands of employees, as well as small to medium sized business (SMB) organizations.

Verint is headquartered in Melville, New York, and has more than 40 offices worldwide. We have approximately 4,300 passionate professionals around the globe exclusively focused on helping brands provide Boundless Customer Engagement™.

Recent Developments

On February 1, 2021, the spin-off of Cognyte was completed by way of a pro rata distribution in which each holder of Verint’s common stock, par value $0.001 per share, received one ordinary share of Cognyte, no par value, for every share of common stock of Verint held of record as of the close of business on January 25, 2021 (the “Record Date”). After the distribution, we do not beneficially own any ordinary shares of Cognyte and will no longer consolidate Cognyte into our financial results for periods ending after January 31, 2021. The Spin-Off is intended to be generally tax-free to our stockholders for U.S. federal income tax purposes. Please refer to Note 19, “Subsequent Events,” for a more detailed discussion of the Spin-Off.

On December 4, 2019, we 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”) in an issuance that closed on May 7, 2020. In connection with the completion of the Spin-Off, the Apax Investor will purchase, subject to certain conditions, $200.0 million of Series B convertible preferred stock (“Series B Preferred Stock”) in Verint, as the entity holding the Customer Engagement Solutions business. Following the closing of the Series A Preferred Stock investment, and after giving effect to the Spin-Off, Apax’s ownership in us on an as-converted basis is approximately 7.5%. Upon issuance of the Series B Preferred Stock, which is expected to occur during our first fiscal quarter ending April 30, 2021, Apax’s ownership in us on an as-converted basis is expected to be between 12% and 13%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment.

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. Notwithstanding the loosening of these restrictions in certain countries in certain periods since the onset of the pandemic, 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 continuously monitoring and assessing the impact of the COVID-19 pandemic, including recommendations and orders issued by government and public health authorities in countries where we operate. We continue to work to help our customers during this difficult time and are managing our operations with a view to resuming normal business activity as soon as possible.

Principles of Consolidation

The accompanying 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 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 U.S. generally accepted accounting principles (“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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

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 of COVID-19 as of January 31, 2021 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.

Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits

Restricted cash and cash equivalents, and restricted bank time deposits are pledged as collateral or otherwise restricted as to use for vendor payables, general liability insurance, workers’ compensation insurance, warranty programs, and other obligations.

Investments

Our investments generally consist of bank time deposits, and marketable debt securities of corporations, the U.S. government, and agencies of the U.S. government, all with remaining maturities in excess of 90 days at the time of purchase. We held no marketable debt securities at January 31, 2021 and 2020. Investments with maturities in excess of one year are included in other assets.

Accounts Receivable, Net

Trade accounts receivable are comprised of invoiced amounts due from customers for which we have an unconditional right to collect and are not interest-bearing. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, trade accounts receivable, and contract assets. We invest our cash in bank accounts, certificates of deposit, and money market accounts with major financial institutions, in U.S. government and agency obligations, and in debt securities of corporations. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities.

We grant credit terms to our customers in the ordinary course of business. Concentrations of credit risk with respect to trade accounts receivable and contract assets are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas. There were two customers in our Cyber Intelligence segment that combined accounted for $72.6 million and $51.7 million of our aggregated accounts receivable and contract assets, at January 31, 2021 and 2020, respectively. These amounts result from both direct and indirect contracts with governmental agencies outside of the United States., which we believe present insignificant credit risk.

Allowance for Doubtful Accounts

We adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments on February 1, 2021. ASU No. 2016-13 requires us to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. Our allowance for doubtful accounts or expected credit losses is estimated based on an analysis of the aging of our accounts receivable and contract assets, historical write-offs, customer payment patterns, individual customer creditworthiness, current economic trends, reasonable and supportable forecasts of future economic conditions, and/or establishment of specific reserves for customers in adverse financial condition. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. We assess the adequacy of the allowance for doubtful accounts on a quarterly basis.

The following table summarizes the activity in our allowance for doubtful accounts for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Allowance for doubtful accounts, beginning of year	$	5,324	$	3,777	$	2,217
Cumulative effect of adoption of ASU No. 2016-13	1,012		—		—
Provisions charged to expense	3,707		2,572		2,746
Amounts written off	(3,853)		(1,176)		(1,172)
Other, including fluctuations in foreign exchange rates	(22)		151		(14)
Allowance for doubtful accounts, end of year	$	6,168	$	5,324	$	3,777

Our estimated expected credit losses associated with contract assets were not material as historical write-offs have been insignificant.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method of inventory accounting. The valuation of our inventories requires us to make estimates regarding excess or obsolete inventories, including making estimates of the future demand for our products. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated changes in demand, price, or technological developments could have a significant impact on the value of our inventory and reported operating results. Charges for excess and obsolete inventories are included within cost of revenue.

Property and Equipment, net

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method based over the estimated useful lives of the assets. The vast majority of equipment, furniture and other is depreciated over periods ranging from three years to seven years. Software is typically depreciated over periods ranging from three years to four years. Buildings are depreciated over periods ranging from ten years to twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease term. Finance leased assets are amortized over the related lease term.

The cost of maintenance and repairs of property and equipment is charged to operations as incurred. When assets are retired or disposed of, the cost and accumulated depreciation or amortization thereon are removed from the consolidated balance sheet and any resulting gain or loss is recognized in the consolidated statement of operations.

Segment Reporting

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.

As of January 31, 2021, we conducted our business through two operating segments, which are also our reportable segments—Customer Engagement (“Customer Engagement”) and Cyber Intelligence (“Cyber Intelligence”). Organizing our business through two operating segments allowed us to align our resources and domain expertise to effectively address the Actionable Intelligence market. We determine our reportable segments based on a number of factors our management uses to evaluate and run our business operations, including similarities of customers, products, and technology. Our Chief Executive Officer is our CODM, who primarily reviews segment revenue and segment operating contribution when assessing the financial performance of our segments and allocating resources. On February 1, 2021, we completed the Spin-Off of Cognyte, whose business and operations consisted of our former Cyber Intelligence Solutions business, into an independent public company.

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” when reconciling segment contribution to operating income, 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.

Please refer to Note 18, “Segment, Geographic, and Significant Customer Information” for further details regarding our operating segments.

Goodwill and Other Acquired Intangible Assets

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

We test goodwill for impairment at the reporting unit level, which can be an operating segment or one level below an operating segment, on an annual basis as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. As of January 31, 2021, our reporting units were Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and Situational Intelligence, a component of our Cyber Intelligence operating segment.

In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. If our quantitative testing determines that the carrying value of a reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to that reporting unit.

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

Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, non-competition agreements, sales backlog, and in-process research and development. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 10 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Fair Value Measurements

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This fair value hierarchy consists of three levels of inputs that may be used to measure fair value:

•Level 1: quoted prices in active markets for identical assets or liabilities;

•Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or

•Level 3: unobservable inputs that are supported by little or no market activity.

We review the fair value hierarchy classification of our applicable assets and liabilities at each reporting period. Changes in the observability of valuation inputs may result in transfers within the fair value measurement hierarchy. We did not identify any transfers between levels of the fair value measurement hierarchy during the years ended January 31, 2021 and 2020.

Fair Values of Financial Instruments

Our recorded amounts of cash and cash equivalents, restricted cash and cash equivalents, and restricted bank time deposits, accounts receivable, contract assets, investments, and accounts payable approximate fair value, due to the short-term nature of these instruments. We measure certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.

Derivative Financial Instruments

As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts and interest rate swap agreements to hedge against certain foreign currency and interest rate exposures. Our intent is to mitigate gains and losses caused by the underlying exposures with offsetting gains and losses on the derivative contracts. By policy, we do not enter into speculative positions with derivative instruments.

We record all derivatives as assets or liabilities on our consolidated balance sheets at their fair values. Gains and losses from the changes in values of these derivatives are accounted for based on the use of the derivative and whether it qualifies for hedge accounting.

The counterparties to our derivative financial instruments consist of several major international financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.

Revenue Recognition

We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was adopted on February 1, 2018, using the modified retrospective transition method. For further discussion of our accounting policies related to revenue see Note 2, “Revenue Recognition.”

Cost of Revenue

Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, and related overhead costs. Costs that relate to satisfied (or partially satisfied) performance obligations in customer contracts (i.e. costs that relate to past performance) are expensed as incurred. Please refer to Note 2, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.

Research and Development, net

With the exception of certain software development costs, all research and development costs are expensed as incurred, and consist primarily of personnel and consulting costs, travel, depreciation of research and development equipment, and related overhead and other costs associated with research and development activities.

We receive non-refundable grants from the Israeli Innovation Authority (“IIA”), formerly the Israel Office of the Chief Scientist (“OCS”), that fund a portion of our research and development expenditures. We currently only enter into non-royalty-bearing arrangements with the IIA which do not require us to pay royalties. Funds received from the IIA are recorded as a reduction to research and development expense. Royalties, to the extent paid, are recorded as part of our cost of revenue.

We also periodically derive benefits from participation in certain government-sponsored programs in other jurisdictions, for the support of research and development activities conducted in those locations.

Software Development Costs

Costs incurred to acquire or develop software to be sold, leased or otherwise marketed are capitalized after technological feasibility is established, and continue to be capitalized through the general release of the related software product. Amortization of capitalized costs begins in the period in which the related product is available for general release to customers and is recorded on a straight-line basis, which approximates the pattern in which the economic benefits of the capitalized costs are expected to be realized, over the estimated economic lives of the related software products, generally four years.

Internal-Use Software

We capitalize costs associated with software that is acquired, internally developed or modified solely to meet our internal needs. Capitalization begins when the preliminary project stage has been completed and management with the relevant authority authorizes and commits to the funding of the project. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are generally amortized over estimated useful lives of four years on a straight-line basis, which best represents the pattern of the software’s use.

Income Taxes

We account for income taxes under the asset and liability method which includes the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our consolidated financial statements. Under this approach, deferred taxes are recorded for the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus deferred taxes. Deferred taxes result from differences between the financial statement and tax bases of our assets and liabilities, and are adjusted for changes in tax rates and tax laws when changes are enacted. The effects of future changes in income tax laws or rates are not anticipated.

We are subject to income taxes in the United States and numerous foreign jurisdictions. The calculation of our income tax provision involves the application of complex tax laws and requires significant judgment and estimates.

We evaluate the realizability of our deferred tax assets for each jurisdiction in which we operate at each reporting date, and establish valuation allowances when it is more likely than not that all or a portion of our deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. We consider all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. In circumstances where there is sufficient negative evidence indicating that our deferred tax assets are not more-likely-than-not realizable, we establish a valuation allowance.

We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that we believe is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets. Our policy is to include interest (expense and/or income) and penalties related to unrecognized income tax benefits as a component of the provision for income taxes.

Functional Currencies and Foreign Currency Transaction Gains and Losses

The functional currency for most of our foreign subsidiaries is the applicable local currency, although we have several subsidiaries with functional currencies that differ from their local currency, of which the most notable exceptions are our subsidiaries in Israel, whose functional currencies are the U.S. dollar.

Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within other income (expense), net in the consolidated statements of operations. We recorded net foreign currency gains of $0.1 million, and net foreign currency losses of $0.1 million and $5.5 million for the years ended January 31, 2021, 2020, and 2019, respectively.

For consolidated reporting purposes, in those instances where a foreign subsidiary has a functional currency other than the U.S. dollar, revenue and expenses are translated into U.S. dollars using average exchange rates for the reporting period, while assets and liabilities are translated into U.S. dollars using period-end rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated balance sheets.

Stock-Based Compensation

We recognize the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of the award. We recognize the fair value of the award as compensation expense over the period during which an employee is required to provide service in exchange for the award.

For performance stock units for which vesting is in part dependent on total shareholder return, the fair value of the award is estimated on the date of grant using a Monte Carlo Simulation. Expected volatility and expected term are input factors for that model and may require significant management judgment. Expected volatility is estimated utilizing daily historical volatility for Verint common stock price and the constituents of the specific comparator index over a period commensurate with the remaining award performance period. The risk-free interest rate used is equal to the implied daily yield of the zero-coupon U.S. Treasury bill that corresponds with the remaining performance period of the award as of the valuation date.

Net (Loss) Income Per Common Share Attributable to Verint Systems Inc.

Shares used in the calculation of basic net (loss) income per common share are based on the weighted-average number of common shares outstanding during the accounting period. Shares used in the calculation of basic net (loss) income per common share include vested but unissued shares underlying awards of restricted stock units when all necessary conditions for earning those shares have been satisfied at the award’s vesting date, but exclude unvested shares of restricted stock because they are contingent upon future service conditions.

Upon conversion of our 1.50% convertible senior notes due June 1, 2021 (the “Notes”), further details for which appear in Note 7, “Long-Term Debt,” we are currently obligated to settle the principal amount of the Notes in cash upon conversion and as a result, only the amounts payable in excess of the principal amounts of the Notes, if any, are assumed to be settled with shares of common stock for purposes of computing diluted net income per share.

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

Leases

We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our consolidated balance sheets. Finance lease assets are included in property and equipment, and corresponding finance lease liabilities are included within accrued expenses and other current liabilities (current portions), and other liabilities (long-term portions), on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which we account for as a single lease component. Some of our leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases on our ROU assets and lease liabilities was not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, we do not have any related party leases and our sublease transactions are de minimis.

Recent Accounting Pronouncements

New Accounting Pronouncements Recently Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued 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. Our 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 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 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 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 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 modified 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 consolidated financial statements.

New Accounting Pronouncements Not Yet Effective

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. ASU No. 2020-06 also eliminates the treasury stock method to calculate diluted earnings per share and requires the if-converted method. The provisions of ASU No. 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. We are required to adopt this standard in the first quarter of the year ending January 31, 2023. The update permits the use of either the modified retrospective or fully retrospective method of transition. We are currently reviewing this standard to assess the impact on our consolidated financial statements.

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.

REVENUE RECOGNITION

12 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. When an arrangement contains multiple performance obligations, we account for individual performance obligations separately if they are distinct. We recognize revenue through the application of the following five steps:

1) Identify the contract(s) with a customer

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

2) Identify the performance obligations in the contract

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

3) Determine the transaction price

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

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

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

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

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

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

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

Nature of Goods and Services

We derive and report our revenue in two categories: (a) product revenue, including licensing of software products, unbundled SaaS and the sale of hardware products (which include software that works together with the hardware to deliver the product’s essential functionality), and (b) service and support revenue, including revenue from cloud deployments, bundled SaaS, hosting services, optional managed services, installation services, initial and renewal support, project management, product warranties, and business advisory consulting, and training services.

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

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

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

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

non-usage based fees, the period of time over which we perform is commensurate with the contract term because that is the period during which we have an obligation to provide the service. The performance obligation is recognized on a time elapsed basis, by month for which the services are provided.

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

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

Disaggregation of Revenue

The following table provides information about disaggregated revenue for our Customer Engagement and Cyber Intelligence segments by product revenue and service and support revenue, as well as by the recurring or nonrecurring nature of revenue for each business segment. Recurring revenue is the portion of our revenue that 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 (comprised of software licensing rights accounted for as term-based licenses whereby customers use our software with related support for a specific period). 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, except for the related support which is recognized over 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.


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue by category:
Customer Engagement revenue
Product	$	199,426	$	223,397	$	221,721
Service and support	630,821		623,128		574,566
Total Customer Engagement revenue	830,247		846,525		796,287

Cyber Intelligence revenue
Product	206,828		231,478		232,929
Service and support	236,630		225,631		200,531
Total Cyber Intelligence revenue	443,458		457,109		433,460

Total
Product	406,254		454,875		454,650
Service and support	867,451		848,759		775,097
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Revenue by recurrence:
Customer Engagement revenue
Recurring revenue	$	575,624	$	534,378	$	465,671
Nonrecurring revenue	254,623		312,147		330,616
Total Customer Engagement revenue	830,247		846,525		796,287

Cyber Intelligence revenue
Recurring revenue	223,405		192,578		165,265
Nonrecurring revenue	220,053		264,531		268,195
Total Cyber Intelligence revenue	443,458		457,109		433,460

Total
Recurring revenue	799,029		726,956		630,936
Nonrecurring revenue	474,676		576,678		598,811
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

The following table provides a further disaggregation of revenue for our Customer Engagement segment. In order to conform with the presentation described above, unbundled SaaS revenue for the years ended January 31, 2020 and 2019 has been updated to reflect $4.7 million and $1.8 million, respectively, of unbundled SaaS support revenue which had previously been presented within support revenue.


	Year Ended January 31,
(in thousands)	2021		2020		2019
Customer Engagement revenue:
Recurring revenue
Bundled SaaS revenue	$	145,962	$	115,925	$	84,715
Unbundled SaaS revenue	71,990		48,018		26,732
Optional managed services revenue	59,459		56,534		41,103
Total cloud revenue	277,411		220,477		152,550
Support revenue	298,213		313,901		313,121
Total recurring revenue	575,624		534,378		465,671
Nonrecurring revenue
Perpetual revenue	141,840		179,882		196,125
Professional services revenue	112,783		132,265		134,491
Total nonrecurring revenue	254,623		312,147		330,616
Total Customer Engagement revenue	$	830,247	$	846,525	$	796,287

Contract Balances

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


	January 31,
(in thousands)	2021		2020
Accounts receivable, net	$	381,158	$	382,435
Contract assets, net	$	57,033	$	64,961
Long-term contract assets, net (included in other assets)	$	18,429	$	1,358
Contract liabilities	$	388,045	$	397,350
Long-term contract liabilities	$	38,539	$	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 for each of the years ended January 31, 2021, 2020, and 2019. There were two customers in our Cyber Intelligence segment that accounted for a combined $72.6 million and $51.7 million of our aggregated accounts receivable and contract assets at January 31, 2021 and 2020, respectively. These amounts result from both direct and indirect contracts with governmental agencies outside of the United States. which we believe present insignificant credit risk. During the years ended January 31, 2021 and 2020, we transferred $45.6 million and $49.1 million, respectively, to accounts receivable from contract assets recognized at the beginning of each period, as a result of the right to the transaction consideration becoming unconditional. We recognized $55.1 million and $48.8 million of contract assets during the years ended January 31, 2021 and 2020, respectively. Contract assets recognized during each year primarily related to multi-year unbundled SaaS contracts in our Customer Engagement segment that are invoiced annually with license revenue recognized upfront.

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 years ended January 31, 2021 and 2020 from amounts included in contract liabilities at the beginning of each period was $368.8 million and $331.6 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:


	January 31, 2021						January 31, 2020
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
RPO:
Expected to be recognized within 1 year	$	405,714	$	353,166	$	758,880	$	374,982	$	356,677	$	731,659
Expected to be recognized in more than 1 year	229,951		198,572		428,523		117,497		225,056		342,553
Total RPO	$	635,665	$	551,738	$	1,187,403	$	492,479	$	581,733	$	1,074,212

Costs to Obtain and Fulfill Contracts

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

Total capitalized costs to obtain contracts were $58.2 million as of January 31, 2021, of which $7.3 million is included in prepaid expenses and other current assets and $50.9 million is included in other assets on our consolidated balance sheet. Total capitalized costs to obtain contracts were $45.0 million as of January 31, 2020, of which $7.7 million is included in prepaid expenses and other current assets and $37.3 million is included in other assets on our consolidated balance sheet. During the years ended January 31, 2021, 2020, and 2019, we expensed $49.9 million, $54.4 million and $45.7 million, respectively, of sales and agent commissions, which are included in selling, general and administrative expenses and there were no impairment losses recognized for these capitalized costs.

We capitalize costs incurred to fulfill our contracts when the costs relate directly to the contract and are expected to generate resources that will be used to satisfy the performance obligation under the contract and are expected to be recovered through revenue generated under the contract. Costs to fulfill contracts are expensed to cost of revenue as we satisfy the related performance obligations. Total capitalized costs to fulfill contracts were $13.1 million as of January 31, 2021, of which $4.8 million is included in prepaid expenses and other current assets and $8.3 million is included in other assets on our consolidated balance sheet. Total capitalized costs to fulfill contracts were $14.7 million as of January 31, 2020, of which $8.4 million is included in prepaid expenses and other current assets and $6.3 million is included in other assets on our consolidated balance sheet. Deferred cost of revenue is classified in its entirety as current or long-term based on whether the related revenue will be recognized within twelve months of the origination date of the arrangement. The amounts capitalized primarily relate to nonrecurring costs incurred in the initial phase of our bundled SaaS arrangements (i.e., setup costs), which consist of costs related to the installation of systems and processes and prepaid third-party cloud infrastructure costs. Capitalized setup costs are amortized on a straight-line basis over the expected period of benefit, which includes anticipated contract renewals or extensions, consistent with the transfer to the customer of the services to which the asset relates. During the years ended January 31, 2021, 2020, and 2019, we amortized $16.6 million, $13.1 million, and $18.3 million, respectively, of contract fulfillment costs.

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

12 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

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

NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.The following table summarizes the calculation of basic and diluted net (loss) income per common share attributable to Verint Systems Inc. for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands, except per share amounts)	2021		2020		2019
Net (loss) income	$	(107)	$	35,683	$	70,220
Net income attributable to noncontrolling interests	7,160		6,999		4,229
Net (loss) income attributable to Verint Systems Inc.	(7,267)		28,684		65,991
Dividends on preferred stock	(7,656)		—		—
Net (loss) income attributable to Verint Systems Inc. for basic net (loss) income per common share	(14,923)		28,684		65,991
Dilutive effect of dividends on preferred stock	—		—		—
Net (loss) income attributable to Verint Systems Inc. for diluted net (loss) income per common share	$	(14,923)	$	28,684	$	65,991

Weighted-average shares outstanding:
Basic	65,173		66,129		64,913
Dilutive effect of employee equity award plans	—		1,226		1,332
Dilutive effect of 1.50% convertible senior notes	—		—		—
Dilutive effect of warrants	—		—		—
Dilutive effect of assumed conversion of preferred stock	—		—		—
Diluted	65,173		67,355		66,245
Net (loss) income per common share attributable to Verint Systems Inc.:
Basic	$	(0.23)	$	0.43	$	1.02
Diluted	$	(0.23)	$	0.43	$	1.00

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


	Year Ended January 31,
(in thousands)	2021	2020	2019
Stock options and restricted stock-based awards	1,337	900	276
1.50% convertible senior notes	6,002	6,205	6,205
Warrants	6,205	6,205	6,205
Preferred Stock	2,743	—	—

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

We use the treasury stock method for calculating any potential dilutive effect of the conversion spread on our 1.50% convertible senior notes on diluted net income per common share because upon conversion, we are currently obligated to settle the principal amount of our Notes in cash and intend to settle any excess in shares of our common stock. For the years ended January 31, 2021, 2020, and 2019, the Notes did not impact the calculation of diluted net income per share as the average price of our common stock, as calculated in accordance with the terms of the indenture governing the Notes, did not exceed the conversion price of $64.46 per share. Likewise, diluted net income per share did not include any effect from the Warrants (as defined in Note 7, “Long-Term Debt”) as the average price of our common stock, as calculated under the terms of the Warrants, did not exceed the exercise price of $75.00 per share for the years ended January 31, 2021, 2020, and 2019.

Upon completion of the previously mentioned Spin-Off on February 1, 2021, the strike prices of the conversion features of our Notes and Warrants were reduced to $40.55 per share and $47.18 per share, respectively. The Notes and Warrants will have a dilutive impact on net income per common share at any time when the average market price of our common stock for a reporting period exceeds these adjusted conversion prices.

Our Note Hedges (as defined in Note 7, “Long-Term Debt”) do not impact the calculation of diluted net income (loss) 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 stock that would be delivered to us under the Note Hedges would neutralize the dilutive effect of the common stock 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. As of January 31, 2021, up to 6,205,000 shares of common stock could be issued upon exercise of the Warrants. Further details regarding the Notes, Note Hedges, and the Warrants, including the impact of the Spin-Off on these instruments, 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 (loss) income per common share for the year ended January 31, 2021 as their effect would have been anti-dilutive. Further details regarding the convertible preferred stock investment appear in Note 9, “Convertible Preferred Stock”.

CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

12 Months Ended

Jan. 31, 2021

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

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

The following tables summarize our cash, cash equivalents, and short-term investments as of January 31, 2021 and 2020:


	January 31, 2021
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	321,753	$	—	$	—	$	321,753
Money market funds	342,090		—		—		342,090
Total cash and cash equivalents	$	663,843	$	—	$	—	$	663,843

Short-term investments:
Bank time deposits	$	51,013	$	—	$	—	$	51,013
Total short-term investments	$	51,013	$	—	$	—	$	51,013


	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 United States 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 years ended January 31, 2021, 2020, and 2019, proceeds from maturities and sales of available-for-sale securities were $120.9 million, $59.3 million, and $33.1 million, respectively.

BUSINESS COMBINATIONS AND DIVESTITURES

12 Months Ended

Jan. 31, 2021

Business Combinations [Abstract]

BUSINESS COMBINATIONS AND DIVESTITURES

Year Ended January 31, 2021

We did not complete any business combinations during the year ended January 31, 2021.

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 have been 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 consolidated financial statements.

The combined consideration for these business combinations was approximately $90.0 million, and 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) $1.5 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 values of which were estimated to be $15.3 million at the acquisition dates. Cash paid for these business combinations was funded by cash on hand.

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

Included among the factors contributing to the recognition of goodwill in these transactions were synergies in products and technologies, and the addition of skilled, assembled workforces. Of the $51.0 million of goodwill associated with these business combinations, $39.1 million and $11.9 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 business 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 business combinations, totaled $1.7 million and $5.7 million for the years ended January 31, 2021 and 2020, 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 during the year ended January 31, 2020 are final.

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	(1,480)
Total purchase prices	$	89,971

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	3,950
Other current assets, including cash acquired	14,511
Other assets	6,556
Current and other liabilities	(8,648)
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	51,041
Total purchase prices allocation	$	89,971

For these business 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, three years to five years, and three years, respectively, the weighted average of which is approximately 6.1 years.

Year Ended January 31, 2019

ForeSee Results, Inc.

On December 19, 2018, we completed the acquisition of all of the outstanding shares of ForeSee Results, Inc. and all of the outstanding membership interests of RSR Acquisition LLC (together, “ForeSee”), a leading cloud Voice of the Customer (“VOC”) vendor with software solutions designed to measure and benchmark a 360-degree view of the customer across every touch point. ForeSee is based in Ann Arbor, Michigan.

The purchase price of $65.2 million consisted of (i) $58.9 million of cash paid at closing, funded from cash on hand, partially offset by $0.4 million of ForeSee’s cash received in the acquisition, resulting in net cash consideration at closing of $58.5 million; (ii) a post-closing deferred purchase price adjustment of $6.0 million which was paid in April 2019; and (iii) $0.3 million of other purchase price adjustments. The acquired business has been integrated into our Customer Engagement operating segment.

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

Among the factors contributing to the recognition of goodwill as a component of the ForeSee purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. The $34.3 million of goodwill has been assigned to our Customer Engagement segment. For income tax purposes, $1.1 million of this goodwill is deductible and $33.2 million is not deductible.

In connection with the purchase price allocation for ForeSee, the estimated fair value of undelivered performance obligations under customer contracts assumed in the acquisition was determined utilizing a cost build-up approach. The cost build-up approach calculated fair value by estimating the costs required to fulfill the obligations plus a reasonable profit margin, which

approximates the amount that we believe would be required to pay a third party to assume the performance obligations. The estimated costs to fulfill the performance obligations were based on the historical direct costs for delivering similar services. As a result, in allocating the purchase price, we recorded $9.8 million of current and long-term contract liabilities, representing the estimated fair value of undelivered performance obligations for which payment had been received, which will be recognized as revenue as the underlying performance obligations are delivered. For undelivered performance obligations for which payment had not been received, we recorded a $10.2 million asset as a component of the purchase price allocation, representing the estimated fair value of these obligations, $5.5 million of which is included within prepaid expenses and other current assets, and $4.7 million of which is included in other assets. We are amortizing this asset over the underlying delivery periods, which adjusts the revenue we recognize for providing these services to its estimated fair value.

Transaction and related costs directly related to the acquisition of ForeSee, consisting primarily of professional fees and integration expenses, were $2.1 million, $3.5 million, and $3.3 million for the years ended January 31, 2021, 2020, and 2019, respectively, and were expensed as incurred and are included in selling, general and administrative expenses.

Revenue attributable to ForeSee included in our consolidated statement of operations for the year ended January 31, 2019 was not material. A loss before provision (benefit) for income taxes of $6.0 million attributable to ForeSee is included in our consolidated statement of operations for the year ended January 31, 2019.

The following table sets forth the components and the allocation of the purchase price for our acquisition of ForeSee, including adjustments identified subsequent to the valuation date, none of which were material:


(in thousands)	Amount
Components of Purchase Price:
Cash	$	58,901
Deferred purchase price consideration	6,000
Other purchase price adjustments	262
Total purchase price	$	65,163

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	7,245
Other current assets, including cash acquired	8,101
Other assets	6,075
Current and other liabilities	(12,710)
Contract liabilities - current and long-term	(9,821)
Deferred income taxes	(10,687)
Net tangible liabilities	(11,797)
Identifiable intangible assets:
Customer relationships	19,400
Developed technology	20,000
Trademarks and trade names	3,300
Total identifiable intangible assets	42,700
Goodwill	34,260
Total purchase price allocation	$	65,163

The acquired customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of five years and nine years, four years, and four years, respectively, the weighted average of which is approximately 6.1 years. The acquired identifiable intangible assets are being amortized on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Other Business Combinations

During the year ended January 31, 2019, we completed three other business combinations:

•On July 18, 2018, we completed the acquisition of a business that has been integrated into our Customer Engagement operating segment.

•On November 8, 2018, we completed the acquisition of a business that has been integrated into our Cyber Intelligence operating segment, in which we had a $2.2 million, or approximately 19%, noncontrolling equity investment prior to the acquisition.

•On November 9, 2018, we acquired certain technology and other assets for use in our Customer Engagement operating segment in a transaction that qualified as a business combination.

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

The combined consideration for these business combinations was approximately $51.3 million, including $33.1 million of combined cash paid at the closings. For two of these business combinations, we also agreed to make potential additional cash payments to the respective former stockholders aggregating up to approximately $35.5 million, contingent upon the achievement of certain performance targets over periods extending through January 2021. The fair values of these contingent consideration obligations was estimated to be $15.9 million at the applicable acquisition dates. The acquisition date fair value of our previously held equity interest was approximately $2.2 million and was included in the measurement of the consideration transferred. Cash paid for these business combinations was funded by cash on hand.

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 $25.1 million of goodwill associated with these business combinations, $14.3 million and $10.8 million was assigned to our Customer Engagement and Cyber Intelligence segments, respectively, and for income tax purposes is not deductible.

Revenue and net income (loss) attributable to these business combinations for the year ended January 31, 2019 were not material.

Transaction and related costs, consisting primarily of professional fees and integration expenses, directly related to these business combinations, totaled $0.9 million for each of the years ended January 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 during the year ended January 31, 2019 are final.

The following table sets forth the components and the allocations of the combined purchase prices for the business combinations, other than ForeSee, completed during the year ended January 31, 2019, including adjustments identified subsequent to the respective valuation dates, none of which were material:


(in thousands)	Amount
Components of Purchase Prices:
Cash	$	33,138
Fair value of contingent consideration	15,875
Fair value of previously held equity interest	2,239
Total purchase prices	$	51,252

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	1,897
Other current assets, including cash acquired	6,901
Other assets	9,432
Current and other liabilities	(2,151)
Contract liabilities - current and long-term	(771)
Deferred income taxes	(7,914)
Net tangible assets	7,394
Identifiable intangible assets:
Customer relationships	7,521
Developed technology	10,692
Trademarks and trade names	500
Total identifiable intangible assets	18,713
Goodwill	25,145
Total purchase prices allocation	$	51,252

For these business combinations, customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of from seven years to ten years, three years to five years, and four years, respectively, the weighted average of which is approximately 6.6 years.

Other Business Combination Information

The pro forma impact of all business combinations completed during the three years ended January 31, 2021 was not material to our historical consolidated operating results and is therefore not presented.

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 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 years ended January 31, 2021, 2020, and 2019, we recorded benefits of $4.5 million, $0.5 million, and $3.6 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 value of the remaining contingent consideration obligations associated with business combinations was $18.6 million at January 31, 2021, of which $12.5 million was recorded within accrued expenses and other current liabilities, and $6.1 million was recorded within other liabilities.

Payments of contingent consideration earned under these agreements were $20.1 million, $33.1 million, and $13.6 million for the years ended January 31, 2021, 2020, and 2019, respectively.

Divestiture

In January 2020, we completed the sale of an insignificant subsidiary in our Customer Engagement segment, which qualified as a separate business, as it no longer fit with our strategic direction or growth targets. In accordance with the terms of the sale agreement, the aggregate purchase price is equal to a percentage of net sales of the former subsidiary’s products during the thirty-six month period following the transaction closing date. We determined the estimated fair value of the contingent

consideration with the assistance of a third-party valuation specialist and estimates made by management. The transaction reduced goodwill by $1.1 million and intangible assets by $1.9 million. The transaction resulted in a loss of approximately $2.2 million, which was recorded as part of selling, general, and administrative expenses in our consolidated statement of operations for the year ended January 31, 2020. Please refer to Note 13, “Fair Value Measurements” for a more detailed discussion of changes in the estimated fair value of the contingent consideration.

Spin-Off

As more fully described in Note 19, “Subsequent Events”, on December 4, 2019, we announced our intent to spin off our Cyber Intelligence Solutions business into an independent publicly traded company through a pro rata distribution to our common stockholders. The Spin-Off was completed on February 1, 2021.

The results of operations for our Cyber Intelligence Solutions business have been included within continuing operations for all historical periods presented herein, as the held-for-sale criterion was not met until the Spin-Off occurred on February 1, 2021. Effective in the first quarter of the fiscal year ending January 31, 2022, the historical results of our Cyber Intelligence Solutions business will be presented as discontinued operations for all historical periods presented.

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets consisted of the following as of January 31, 2021 and 2020:


	January 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	469,423	$	(358,824)	$	110,599
Acquired technology	296,311		(262,035)		34,276
Trade names	10,575		(7,230)		3,345
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(484)		823
Total intangible assets	$	782,056	$	(633,013)	$	149,043


	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

The following table presents net acquisition-related intangible assets by reportable segment as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Customer Engagement	$	143,744	$	189,896
Cyber Intelligence	5,299		7,868
Total	$	149,043	$	197,764

Total amortization expense recorded for acquisition-related intangible assets was $49.9 million, $55.4 million, and $56.4 million for the years ended January 31, 2021, 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
2022	$	46,846
2023	38,806
2024	28,728
2025	11,987
2026	10,111
Thereafter	12,565
Total	$	149,043

We recorded $0.5 million of impairments for certain acquired technology assets, which is included within product cost of revenue, and $0.1 million of impairments for certain trade names, which is included within selling, general and administrative expenses for the years ended January 31, 2021 and 2020, respectively. No impairments of acquired intangible assets were recorded during the year ended January 31, 2019.

Goodwill activity for the years ended January 31, 2021, and 2020, in total and by reportable segment, was as follows:


			Reportable Segment
(in thousands)	Total		Customer Engagement		Cyber Intelligence
Year Ended January 31, 2020:
Goodwill, gross, at January 31, 2019	$	1,484,346	$	1,326,370	$	157,976
Accumulated impairment losses through January 31, 2019	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2019	1,417,481		1,270,327		147,154
Business combinations, including adjustments to prior period acquisitions	51,301		39,704		11,597
Foreign currency translation and other	429		1,037		(608)
Goodwill, net, at January 31, 2020	$	1,469,211	$	1,311,068	$	158,143

Year Ended January 31, 2021:
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
Adjustments to prior period business combinations	300		—		300
Foreign currency translation and other	16,079		16,339		(260)
Goodwill, net, at January 31, 2021	$	1,485,590	$	1,327,407	$	158,183

Balance at January 31, 2021
Goodwill, gross, at January 31, 2021	$	1,552,455	$	1,383,450	$	169,005
Accumulated impairment losses through January 31, 2021	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2021	$	1,485,590	$	1,327,407	$	158,183

For purposes of reviewing for potential goodwill impairment, as of January 31, 2021, we had three reporting units, consisting of Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and Situational Intelligence, a component of our Cyber Intelligence operating segment. Based on our November 1, 2020 and 2019 quantitative goodwill impairment reviews, we concluded that the estimated fair values of all of our reporting units significantly exceeded their carrying values, respectively.

We evaluated whether there has been a change in circumstances or indicators of potential impairment between November 1, 2020 and January 31, 2021 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 is involved in evaluating goodwill for potential impairment. Our reporting unit fair values may decline 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, 2020, as well as expected long-term recovery within all reporting units, management does not believe that these events were sufficiently severe to result in an impairment trigger. We will continue to monitor conditions to determine whether any events or changes in circumstances may trigger a need to assess for impairment. No changes in circumstances or indicators of potential impairment were identified between November 1 and January 31 in each of the years ended January 31, 2020 and 2019.

No goodwill impairment was identified for the years ended January 31, 2021, 2020, and 2019.

LONG-TERM DEBT

12 Months Ended

Jan. 31, 2021

Long-term Debt, Unclassified [Abstract]

LONG-TERM DEBT

The following table summarizes our long-term debt at January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
1.50% Convertible Senior Notes	$	386,887	$	400,000
June 2017 Term Loan	410,125		414,375
Borrowings under 2017 Revolving Credit Facility	—		45,000
Less: Unamortized debt discounts and issuance costs	(7,518)		(22,327)
Total debt	789,494		837,048
Less: current maturities	386,713		4,250
Long-term debt	$	402,781	$	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. 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 cash for the principal amount outstanding, with the incremental conversion value settled in shares. On February 26, 2021, we deposited approximately $390.0 million of cash, representing the full principal amount of the Notes then outstanding as well as the final interest payment on the Notes due at maturity, into an escrow account to cash collateralize the Notes. We currently expect to retire the Notes at or prior to maturity using our existing cash (including the amounts in escrow) and/or with proceeds from the issuance of new equity or debt.

As of January 31, 2021, the Notes had a conversion rate of 15.5129 shares of common stock per $1,000 principal amount of Notes, which represented an effective conversion price of approximately $64.46 per share of common stock and would have resulted in the issuance of approximately 6,002,000 shares if all of the Notes were converted. Based on the closing market price of our common stock on January 31, 2021, the if-converted value of the Notes was approximately $56.2 million greater than the aggregate principal amount of the Notes. As a result of the Spin-Off, the conversion rate was adjusted to 24.6622 shares of common stock per $1,000 principal amount of Notes, which represents an effective conversion price of $40.55 per share of common stock and would result in the issuance of approximately 9,541,000 shares if all of the Notes were converted. Upon adjustment of the conversion ratio on the date of Spin-Off, the if-converted value of the Notes continued to be greater than the aggregate principal amount of the Notes.

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 stockholders’ 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 January 31, 2021, inclusive of a $0.2 million reduction resulting from the repurchases during this period.

As of January 31, 2021, the carrying value of the debt component was $382.0 million, which is net of unamortized debt discount and issuance costs of $4.4 million and $0.4 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% for the year ended January 31, 2021, and 5.29% for each of the years ended January 31, 2020, and 2019, respectively.

Effective December 1, 2020 until the close of business on the second scheduled trading day immediately preceding the June 1, 2021 maturity date, holders may surrender their Notes for conversion regardless of whether any of the other specified conditions for conversion have been satisfied. To the extent that we could receive note conversion requests prior to the maturity of the Notes, a portion of the equity component is classified as temporary equity, which is measured as the difference between the principal and net carrying amount of the Notes that could be requested for conversion. We reclassified $4.8 million of the equity component into temporary equity on our consolidated balance sheet as of January 31, 2021.

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

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 served to increase the effective initial conversion price for the Notes to $75.00 per share. Subsequent to the Spin-Off, as a result of conversion rate adjustments, the Note Hedges and the Warrants will serve to increase the effective conversion price for the Notes to $47.18 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 had 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 equaled the initial conversion price of the Notes. As a result of the Spin-Off, on February 1, 2021, the call options on our stock were adjusted to allow us to purchase up to 9,541,000 shares of our common stock at a price of $40.55, which is equal to the adjusted 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. As we intend to settle the principal amount of the Notes in cash, the Note Hedges will be used to offset any potential dilution resulting from conversion if the market value per share of our common stock, as measured under the terms of the Note Hedges, is greater than the strike price of the Note Hedges. We paid $60.8 million for the Note Hedges, which was recorded as a reduction to additional paid-in capital. As of January 31, 2021, 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 initially provided 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. As a result of the Spin-Off, the Warrants

now provide the counterparties rights to acquire from us up to approximately 9,541,000 shares of our common stock at a price of $47.18 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 average 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 January 31, 2021, 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 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.

The maturity dates of the 2017 Term Loan and 2017 Revolving Credit Facility would have been accelerated to March 1, 2021 if on such date any Notes remained outstanding, unless such outstanding Notes are cash collateralized pursuant to a second amendment to the 2017 Credit Agreement (the “2020 Amendment”), entered into on June 8, 2020. Pursuant to the 2020 Amendment, we were 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 would 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. On February 26, 2021, we deposited approximately $390.0 million of cash, representing the full principal amount of the Notes then outstanding as well as the final interest payment on the Notes due at maturity on June 1, 2021, into an escrow account in satisfaction of the cash collateralization provisions of the 2020 Amendment. Accordingly, the maturity dates of the 2017 Term Loan and 2017 Revolving Credit Facility was not accelerated to March 1, 2021. We currently expect to retire the Notes at or prior to maturity using our existing cash (including the amounts in escrow) and/or with proceeds from the issuance of new equity or debt.

As of January 31, 2021, the interest rate on the 2017 Term Loan was 2.14%. 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 2.34% at January 31, 2021. As of January 31, 2020, the interest rate on the 2017 Term Loan was 3.85%.

During the three months ended October 31, 2020, we repaid in full $200.0 million of borrowings then outstanding under the 2017 Revolving Credit Facility using available cash on hand. 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 January 31, 2020, the interest rate on our revolving credit facility borrowings was 3.41%. 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 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 the Term Loan

As of January 31, 2021, future scheduled principal payments on the 2017 Term Loan were as follows:


(in thousands)
Years Ending January 31,	Amount
2022	$	4,250
2023	4,250
2024	4,250
2025	397,375
Total	$	410,125

Interest Expense

The following table presents the components of interest expense incurred on the Notes and on borrowings under our credit agreements for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	5,887	$	6,000	$	6,000
Amortization of debt discount	12,884		12,490		11,850
Amortization of deferred debt issuance costs	1,215		1,177		1,118
Total Interest Expense - 1.50% Convertible Senior Notes	$	19,986	$	19,667	$	18,968

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	13,018	$	18,021	$	17,741
Impact of interest rate swap agreement	4,368		792		—
Amortization of debt discounts	74		68		67
Amortization of deferred debt issuance costs	1,811		1,569		1,554
Total Interest Expense - Borrowings under Credit Agreements	$	19,271	$	20,450	$	19,362

On May 1, 2020, our interest rate swap agreement no longer qualified as a cash flow hedge for accounting purposes and as such, accumulated deferred losses on our interest rate swap that were previously recorded as a component of accumulated other comprehensive loss will be amortized to interest expense in the consolidated statement of operations over the remaining term of the interest rate swap, as the previously hedged interest payments occur. Please refer to Note 14, “Derivative Financial Instruments” for a more detailed discussion of our interest rate swap agreement.

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Jan. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Consolidated Balance Sheets

Inventories consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Raw materials	$	10,289	$	9,628
Work-in-process	5,186		4,749
Finished goods	4,608		6,118
Total inventories	$	20,083	$	20,495

Property and equipment, net consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Land and buildings	$	10,978	$	10,754
Leasehold improvements	35,907		35,463
Software	40,152		53,606
Equipment, furniture, and other	190,573		199,268
Total cost	277,610		299,091
Less: accumulated depreciation and amortization	(171,368)		(182,980)
Total property and equipment, net	$	106,242	$	116,111

Depreciation expense on property and equipment was $39.9 million, $28.5 million, and $25.5 million in the years ended January 31, 2021, 2020, and 2019, respectively.

Other assets consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Deferred commissions	$	50,838	$	37,263
Capitalized software development costs, net	30,564		27,030
Long-term contract assets, net	18,429		1,358
Long-term restricted cash and time deposits	15,712		26,362
Long-term deferred cost of revenue	8,276		6,345
Deferred debt issuance costs, net	1,449		2,005
Long-term security deposits	1,960		1,920
Other	12,072		15,680
Total other assets	$	139,300	$	117,963

Accrued expenses and other current liabilities consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Compensation and benefits	$	122,722	$	100,225
Fair value of future tranche right	52,772		—
Taxes other than income taxes	24,323		18,642
Operating lease obligations - current portion	20,936		22,656
Contingent consideration - current portion	12,518		22,859
Income taxes	5,789		15,084
Distributor and agent commissions	12,422		10,097
Professional and consulting fees	6,161		4,367
Other	54,063		35,768
Total accrued expenses and other current liabilities	$	311,706	$	229,698

Other liabilities consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Unrecognized tax benefits, including interest and penalties	$	21,284	$	22,355
Derivative financial instruments - long-term portion	13,565		11,441
Contingent consideration - long-term portion	6,109		20,017
Finance lease obligations - long-term portion	2,969		7,210
Obligations for severance compensation	2,273		2,627
Other	5,441		3,505
Total other liabilities	$	51,641	$	67,155

Consolidated Statements of Operations

Other (expense) income, net consisted of the following for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Foreign currency gains (losses), net	$	98	$	(56)	$	(5,519)
(Losses) gains on derivative financial instruments, net	(1,362)		599		2,511
Change in fair value of future tranche right	(56,146)		—		—
Other, net	2,095		(338)		(898)
Total other (expense) income, net	$	(55,315)	$	205	$	(3,906)

Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash paid for interest	$	24,650	$	23,232	$	22,258
Cash payments of income taxes, net	$	22,842	$	15,391	$	26,887
Non-cash investing and financing transactions:
Liabilities for contingent consideration in business combinations	$	—	$	15,253	$	15,944
Series A Preferred Stock dividends declared	$	5,200	$	—	$	—
Finance leases of property and equipment	$	903	$	6,404	$	1,137
Accrued but unpaid purchases of property and equipment	$	5,651	$	4,362	$	3,376
Accrued but unpaid purchases of treasury stock	$	—	$	2,846	$	—
Leasehold improvements funded by lease incentives	$	119	$	2,604	$	1,397
Inventory transfers to property and equipment	$	894	$	825	$	1,699
Contingent receivable in exchange for sale of subsidiary	$	—	$	738	$	—

CONVERTIBLE PREFERRED STOCK	12 Months Ended
CONVERTIBLE PREFERRED STOCK	Jan. 31, 2021
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 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. •In connection with the completion of the Spin-Off on February 1, 2021, we expect to issue 200,000 shares of Series B 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 is contingent on the satisfaction or waiver of certain customary closing conditions and is expected to occur during our first fiscal quarter ending April 30, 2021. 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, 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 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. For the year ended January 31, 2021, we had cumulative declared dividends on our Series A Preferred Stock of $6.8 million, of which $1.6 million was paid and $5.2 million was accrued, and we had $0.9 million of cumulative undeclared and unpaid preferred stock dividends. We reflected $7.7 million of preferred stock dividends in our consolidated results of operations, for purposes of computing net income attributable to Verint Systems Inc. commons shares, for the year ended January 31, 2021. Conversion As of January 31, 2021, the Series A Preferred Stock was 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. The initial conversion price represented a conversion premium of 17.1% over the volume-weighted average price per share of our common stock over the 45 consecutive trading days immediately prior to the signing date. In accordance with the Investment Agreement, the Series A Preferred Stock did not participate in the Spin-Off distribution of the Cognyte shares, which occurred on February 1, 2021, and the Series A conversion price was instead adjusted to $36.38 per share based on the ratio of the relative trading prices of Verint and Cognyte following the Spin-Off. Based on the adjusted conversion price, Apax’s ownership in us on an as-converted basis is currently approximately 7.5%. In connection with the completion of the Spin-Off, the Apax Investor will purchase, subject to certain conditions, $200.0 million of Series B Preferred Stock in Verint, which is expected to occur during the first fiscal quarter ending April 30, 2021. The Series B Preferred Stock will be convertible at a conversion price of $50.25, based in part on our trading price over the 20 day trading period following the Spin-Off. Following the issuance of the Series B Preferred Stock, Apax’s ownership in us on an as-converted basis is expected to be between 12% and 13%. As of January 31, 2021, 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. Upon adjustment of the Series A Preferred Stock conversion price shortly after the Spin-Off, the maximum number of shares of Common Stock that could be required to be issued upon conversion is 5.5 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 consolidated balance sheet as of January 31, 2021, 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 January 31, 2021, 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 January 31, 2021 plus accrued and unpaid dividends. As of January 31, 2021, 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 $6.1 million. Future Tranche Right We have determined that our obligation to issue and the Apax Investor’s obligation to purchase 200,000 shares of the Series B Preferred Stock in connection with the completion of the Spin-Off and the satisfaction of 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. At issuance, we allocated a portion of the proceeds from the issuance of the Series A Preferred Stock to the Future Tranche Right based upon its fair value at such time, 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 the settlement of the right (at the time of the issuance of the Series B Preferred Stock), and changes in its fair value are recognized as a non-cash charge or benefit within other income (expense), net on the 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 January 31, 2021, the fair value of the Future Tranche Right was a liability of $52.8 million, driven primarily by a significant increase in our stock price during the period. We recorded non-cash charges of $56.1 million related to the change in fair value of the Future Tranche Right for the year ended January 31, 2021, within other (expense) income, net. The Future Tranche Right will be remeasured at each reporting period until the redemption feature is exercised in connection with the sale and issuance of the Series B Preferred Stock. The $52.8 million fair value of the Future Tranche Right is included within accrued expenses and other current liabilities on our consolidated balance sheet at January 31, 2021. Please refer to Note 13, “Fair Value Measurements” for additional information regarding valuations of the Future Tranche Right.

STOCKHOLDERS' EQUITY

12 Months Ended

Jan. 31, 2021

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Common Stock Dividends

We did not declare or pay any dividends on our common stock during the years ended January 31, 2021, 2020, and 2019. Under the terms of our 2017 Credit Agreement, we are subject to certain restrictions on declaring and paying cash dividends on our common stock.

In connection with the Spin-Off, each holder of Verint’s common stock, par value $0.001 per share, received one ordinary share of Cognyte, no par value, for every share of common stock of Verint held of record as of the close of business on the Record Date. Please refer to Note 19, “Subsequent Events,” for a more detailed discussion of the Spin-Off.

Stock Repurchase Programs

On December 4, 2019, we announced that our board of directors had authorized a stock repurchase program whereby we were authorized to repurchase up to $300.0 million of common stock over the period ending on February 1, 2021. We made $34.0 million and $116.1 million in repurchases under the program during the years ended January 31, 2021 and 2020, respectively. This program expired on February 1, 2021.

On March 31, 2021, we announced that our board of directors had authorized a new stock repurchase program whereby we may repurchase up to a number of shares of common stock approximately equal to the number of shares to be issued as equity compensation during the fiscal year ending January 31, 2022. Repurchases are expected to be financed with available cash of up to 60% of our free cash flow during such period (as determined by management), subject to compliance with applicable laws, rules and regulations. Please refer to Note 19, “Subsequent Events”, for more information regarding this stock repurchase program.

Treasury Stock

Repurchased shares of common stock are recorded as treasury stock, at cost, but may from time to time be retired. At January 31, 2021, 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 and shares of treasury stock with a cost of $174.1 million.

During the year ended January 31, 2021, we acquired approximately 613,000 shares of our common stock for a cost of $34.0 million under the December 2019 stock repurchase program described above. During the year ended January 31, 2020 we acquired approximately 2,126,000 shares of our common stock for a cost of $116.5 million, which includes $116.1 million of share repurchases under the December 2019 stock repurchase program described above and other purchases to facilitate income tax withholding upon vesting of equity awards. During the year ended January 31, 2019, we acquired approximately 4,000 shares of our common stock for a cost of $0.2 million.

From time to time, our board of directors has approved limited programs to repurchase shares of our common stock from directors or officers in connection with the vesting of restricted stock or restricted stock units to facilitate required income tax withholding by us or the payment of required income taxes by such holders. In addition, the terms of some of our equity award agreements with all grantees provide for automatic repurchases by us for the same purpose if a vesting-related or delivery-related tax event occurs at a time when the holder is not permitted to sell shares in the market. Our stock bonus program contains similar terms. Any such repurchases of common stock occur at prevailing market prices and are recorded as treasury stock.

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. In connection with the completion of the Spin-Off on February 1, 2021, we expect to complete the second tranche of the investment through the issuance of $200.0 million of Series B Preferred Stock during our first fiscal quarter ending April 30, 2021.

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 consolidated balance sheets. Accumulated other comprehensive income (loss) items have no impact on our net (loss) income as presented in our consolidated statements of operations.

The following table summarizes changes in the components of our accumulated other comprehensive income (loss) by component for the years ended January 31, 2021 and 2020:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Unrealized Gain on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive loss at January 31, 2019	$	(981)	$	(3,043)	$	(141,201)	$	(145,225)
Other comprehensive income (loss) before reclassifications	2,015		(8,102)		(762)		(6,849)
Amounts reclassified out of accumulated other comprehensive loss	408		(617)		—		(209)
Net other comprehensive income (loss)	1,607		(7,485)		(762)		(6,640)
Accumulated other comprehensive income (loss) at January 31, 2020	626		(10,528)		(141,963)		(151,865)
Other comprehensive income (loss) before reclassifications	1,869		(5,916)		17,482		13,435
Amounts reclassified out of accumulated other comprehensive income (loss)	1,861		(3,413)		—		(1,552)
Net other comprehensive income (loss)	8		(2,503)		17,482		14,987
Accumulated other comprehensive income (loss) at January 31, 2021	$	634	$	(13,031)	$	(124,481)	$	(136,878)

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 consolidated statement of operations, with presentation location, for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,						Financial Statement Location
(in thousands)	2021		2020		2019
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	109	$	11	$	(350)	Cost of product revenue
	298		64		(388)		Cost of service and support revenue
	1,009		250		(2,138)		Research and development, net
	733		128		(1,343)		Selling, general and administrative
	2,149		453		(4,219)		Total, before income taxes
	(288)		(45)		429		(Provision) benefit for income taxes
	$	1,861	$	408	$	(3,790)	Total, net of income taxes

Interest rate swap agreement	$	(4,367)	$	(792)	$	—	Interest expense
	(4,367)		(792)		—		Total, before income taxes
	954		175		—		Benefit from income taxes
	$	(3,413)	$	(617)	$	—	Total, net of income taxes

RESEARCH AND DEVELOPMENT, NET

12 Months Ended

Jan. 31, 2021

Research and Development [Abstract]

RESEARCH AND DEVELOPMENT, NET

Our gross research and development expenses for the years ended January 31, 2021, 2020, and 2019, were $240.7 million, $233.1 million, and $211.0 million, respectively. Reimbursements from the IIA and other government grant programs amounted to $0.5 million, $1.4 million, and $1.9 million for the years ended January 31, 2021, 2020, and 2019, respectively, which were recorded as reductions of gross research and development expenses.

We capitalize certain costs incurred to develop our commercial software products, and we then recognize those costs within cost of product revenue as the products are sold. Activity for our capitalized software development costs for the years ended January 31, 2021, 2020, and 2019 was as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Capitalized software development costs, net, beginning of year	$	27,030	$	13,342	$	9,228
Software development costs capitalized during the year	12,444		17,222		7,320
Amortization of capitalized software development costs	(6,375)		(3,561)		(3,101)
Write-offs of capitalized software development costs	(2,373)		—		—
Foreign currency translation and other	(162)		27		(105)
Capitalized software development costs, net, end of year	$	30,564	$	27,030	$	13,342

During the year ended January 31, 2021, we recorded an impairment charge of $2.4 million in product cost of revenue, reflecting the write-off of previously capitalized software development costs that were deemed non-recoverable based on our expectations of future market conditions. There were no material impairments of such capitalized costs during the years ended January 31, 2020 and 2019.

INCOME TAXES

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income before provision for income taxes for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Domestic	$	(73,452)	$	(49,703)	$	(12,927)
Foreign	89,675		103,006		90,689
Total income before provision for income taxes	$	16,223	$	53,303	$	77,762

The provision for income taxes for the years ended January 31, 2021, 2020, and 2019 consisted of the following:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Current provision (benefit) for income taxes:
Federal	$	(2,006)	$	8,683	$	(1,582)
State	980		1,033		2,299
Foreign	21,091		5,759		9,842
Total current provision for income taxes	20,065		15,475		10,559
Deferred (benefit) provision for income taxes:
Federal	384		(4,096)		(4,099)
State	(417)		948		(2,687)
Foreign	(3,702)		5,293		3,769
Total deferred (benefit) provision for income taxes	(3,735)		2,145		(3,017)
Total provision for income taxes	$	16,330	$	17,620	$	7,542

The reconciliation of the U.S. federal statutory rate to our effective tax rate on income before provision for income taxes for the years ended January 31, 2021, 2020, and 2019 was as follows:


	Year Ended January 31,
(in thousands)	2021			2020			2019
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	3,407		$	11,193		$	16,330
State income tax provision	1,258			230			3,968
Foreign tax rate differential	(625)			11,700			9,516
Tax incentives	(1,514)			(8,395)			(7,377)
Valuation allowances	(3,807)			1,607			(24,099)
Stock-based and other compensation	2,474			(2,143)			678
Non-deductible expenses	(322)			2,752			(412)
Tax credits	875			260			(265)
Tax contingencies	(2,539)			(11,550)			(3,035)
Change in fair value of future tranche right	11,791			—			—
U.S. tax effects of foreign operations	4,536			11,963			11,559
Other, net	796			3			679
Total provision for income taxes	$	16,330		$	17,620		$	7,542
Effective income tax rate	100.7		%	33.1		%	9.7		%

Our operations in Israel have been granted “Approved Enterprise” (“AE”) status by the Investment Center of the Israeli Ministry of Industry, Trade and Labor, which makes us eligible for tax benefits under the Israeli Law for Encouragement of Capital Investments, 1959. Under the terms of the program, income attributable to an approved enterprise is exempt from income tax for a period of two years and is subject to a reduced income tax rate for the subsequent five years to eight years (generally 10% - 23%, depending on the percentage of foreign investment in the company). Our AE status expired between January 31, 2020 and January 31, 2021. Based on the current law, the company qualifies for an alternative tax incentive program as a Preferred Technological Enterprise (“PTE”). Pursuant to Amendment 73 to the Investment Law adopted in 2017, a company located in the Center of Israel that meets the conditions for PTE is subject to a 12% tax rate on eligible income. Income not eligible for PTE benefits is taxed at the regular corporate rate of 23%, excluding income derived from manufacturing activity which is entitled to tax benefits according to the “Preferred Enterprise” regime. Income eligible for tax benefits under the Preferred Enterprise regime is taxed at 16%.

In addition, certain operations in Cyprus qualify for favorable tax treatment under the Cypriot Intellectual Property Regime (“IP Regime”). This legislation exempts 80% of income and gains derived from patents, copyrights, and trademarks from taxation. In total, the Israel and Cyprus tax incentives increased our effective tax rate by 2.8% for the year ended January 31, 2021, and decreased our effective tax rate by 10.1%, and 9.0% for the years ended January 31, 2020, and 2019, respectively. The negative benefit is a result of a current year taxable loss in Israel, generating a net operating loss carryforward DTA at a lower effective tax rate.

Deferred tax assets and liabilities consisted of the following at January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Deferred tax assets:
Accrued expenses	$	5,772	$	3,979
Operating lease liabilities	11,402		15,716
Fair value of derivatives	4,149		3,332
Loss carryforwards	24,575		30,063
Tax credits	5,946		7,021
Stock-based and other compensation	14,171		14,087
Other, net	—		18
Total deferred tax assets	66,015		74,216
Deferred tax liabilities:
Deferred cost of revenue	(8,931)		(7,588)
Goodwill and other intangible assets	(30,751)		(36,989)
Unremitted earnings of foreign subsidiaries	(14,882)		(12,257)
Operating lease right-of-use assets	(8,864)		(12,401)
Other, net	(2,093)		(4,674)
Total deferred tax liabilities	(65,521)		(73,909)
Valuation allowance	(22,981)		(26,334)
Net deferred tax liabilities	$	(22,487)	$	(26,027)

Recorded as:
Deferred tax assets	$	14,489	$	13,802
Deferred tax liabilities	(36,976)		(39,829)
Net deferred tax liabilities	$	(22,487)	$	(26,027)

At January 31, 2021, we had U.S. federal NOL carryforwards of approximately $312.1 million. These loss carryforwards expire in various years ending from January 31, 2022 to January 31, 2039. We had state NOL carryforwards of approximately $175.1 million, expiring in years ending from January 31, 2022 to January 31, 2039. We had foreign NOL carryforwards of approximately $84.9 million. At January 31, 2021, all but $8.6 million of these foreign loss carryforwards had indefinite carryforward periods. Certain of these federal, state, and foreign loss carryforwards and credits are subject to Internal Revenue Code Section 382 or similar provisions, which impose limitations on their utilization following certain changes in ownership of the entity generating the loss carryforward. We had U.S. federal, state, and foreign tax credit carryforwards of approximately $10.0 million at January 31, 2021, the utilization of which is subject to limitation. At January 31, 2021, approximately $3.6 million of these tax credit carryforwards may be carried forward indefinitely. The balance of $6.4 million expires in various years ending from January 31, 2022 to January 31, 2037.

We currently intend to continue to indefinitely reinvest a portion of the earnings of our foreign subsidiaries to finance foreign activities. Except to the extent of the U.S. tax provided on earnings of our foreign subsidiaries as of January 31, 2021 and withholding taxes of $16.2 million accrued as of January 31, 2021 with respect to certain identified cash that may be repatriated to the United States, we have not provided tax on the outside basis difference of foreign subsidiaries nor have we provided for any additional withholding or other tax that may be applicable should a future distribution be made from any unremitted earnings of foreign subsidiaries. Due to complexities in the laws of the foreign jurisdictions and the assumptions that would have to be made, it is not practicable to estimate the total amount of income and withholding taxes that would have to be provided on such earnings.

As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes guidance requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, we establish a valuation allowance. We have recorded valuation allowances in the amounts of $23.0 million and $26.3 million at January 31, 2021 and 2020, respectively.

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2021 and 2020:


	Year Ended January 31,
(in thousands)	2021		2020
Valuation allowance, beginning of year	$	(26,334)	$	(24,526)
Income tax benefit (provision)	3,807		(1,607)
Currency translation adjustment and other	(454)		(201)
Valuation allowance, end of year	$	(22,981)	$	(26,334)

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements, determined by applying the prescribed methodologies of accounting for uncertainty in income taxes, represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets.

For the years ended January 31, 2021, 2020, and 2019, the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gross unrecognized tax benefits, beginning of year	$	91,279	$	109,066	$	115,709
Increases related to tax positions taken during the current year	3,445		2,464		8,843
Increases as a result of business combinations	—		286		1,032
Increases related to tax positions taken during prior years	19		147		10,305
Increases (decreases) related to foreign currency exchange rates	395		1,373		(2,253)
Reductions for tax positions of prior years	(445)		(17,388)		(23,415)
Reductions for settlements with tax authorities	—		(4,370)		(1,054)
Lapses of statutes of limitations	(1,414)		(299)		(101)
Gross unrecognized tax benefits, end of year	$	93,279	$	91,279	$	109,066

As of January 31, 2021, we had $93.3 million of unrecognized tax benefits, all of which, if recognized, would impact the effective income tax rate in future periods. We recorded $0.6 million, $1.9 million, and $0.7 million of tax expense for interest and penalties related to uncertain tax positions in our provision for income taxes for the years ended January 31, 2021, 2020, and 2019, respectively. Accrued liabilities for interest and penalties were $3.4 million and $2.9 million at January 31, 2021 and 2020, respectively. Interest and penalties (expense and/or benefit) are recorded as a component of the provision for income taxes in the consolidated financial statements.

Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. In Israel, we are no longer subject to income tax examination for years prior to January 31, 2018. In the United Kingdom, with the exception of years which are currently under examination, we are no longer subject to income tax examination for years prior to January 31, 2018. In the United States, our federal returns are no longer subject to income tax examination for years prior to January 31, 2018. However, to the extent we generated NOLs or tax credits in closed tax years, future use of the NOL or tax credit carry forward balance would be subject to examination within the relevant statute of limitations for the year in which utilized.

As of January 31, 2021, income tax returns are under examination in the following significant tax jurisdictions:


Jurisdiction						Tax Years
United Kingdom						December 31, 2006, January 31, 2008, January 31, 2018, January 31, 2019
India						March 31, 2007, March 31, 2008, March 31, 2010 - March 31, 2013, March 31, 2017
Israel						January 31, 2018

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 January 31, 2021 could decrease by approximately $1.7 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 deferred the timing of employer payroll taxes and accelerated 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

12 Months Ended

Jan. 31, 2021

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 January 31, 2021 and 2020:


	January 31, 2021
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	342,090	$	—	$	—
Foreign currency forward contracts	—		1,134		—
Contingent consideration receivable	—		—		565
Total assets	$	342,090	$	1,134	$	565
Liabilities:
Foreign currency forward contracts	$	—	$	726	$	—
Interest rate swap agreement	—		17,881		—
Future tranche right	—		—		52,772
Contingent consideration - business combinations	—		—		18,627
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,250
Total liabilities	$	—	$	18,607	$	74,649


	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 in connection with the completion of the Spin-Off, we will issue 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 January 31, 2021, 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 current liabilities on our 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. Following the closing of the Series B Preferred Stock issuance, which is expected to occur during our first fiscal quarter ending April 30, 2021, the Future Tranche Right will cease to exist, and no further charges (or benefits) will be recorded.

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 year ended January 31, 2021.


	Year Ended January 31,
(in thousands)	2021
Fair value measurement, beginning of year	$	—
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	(56,146)
Fair value measurement, end of year	$	(52,772)

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, which is measured using Level 3 inputs, as of January 31, 2021 and 2020 was $0.6 million and $0.7 million, respectively. We received payments of $0.1 million, and the change in the estimated fair value of this contingent receivable was not material, during the year ended January 31, 2021. Due to the timing of this transaction, there was no change to the estimated fair value of this receivable recorded in operating expenses for the year ended January 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 years ended January 31, 2021 and 2020:



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	42,875	$	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	—		15,253
Changes in fair values, recorded in operating expenses	(4,471)		(531)
Payments of contingent consideration	(20,103)		(33,088)
Foreign currency translation and other	326		(99)
Fair value measurement, end of year	$	18,627	$	42,875

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 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 accrued expenses and other current 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 years ended January 31, 2021 and 2020:



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	2,900	$	3,000
Change in fair value, recorded in operating expenses	350		(100)
Fair value measurement, end of year	$	3,250	$	2,900

There were no transfers between levels of the fair value measurement hierarchy during the years ended January 31, 2021 and 2020.

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 January 31, 2021 are as follows:


	January 31,			May 7,
	2021			2020
Risk-free interest rate for preferred stock	1.86		%	1.31		%
Implied credit spread	6.78		%	10.78		%
Expected volatility	30.00		%	30.00		%
Verint common stock price	$	73.83		$	45.44

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 0.4% to 3.8%, with a weighted average discount rate of 3.0%, in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2021. 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 3.3% to 4.0%, with a weighted average discount rate of 3.7%, in our calculation of the estimated fair value of our contingent consideration assets as of January 31, 2021. 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 discount rates of 8.5% and 9.0% in our calculations of the estimated fair value of the option as of January 31, 2021 and 2020, respectively.

Other Financial Instruments

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

The estimated fair values of our term loan borrowings were $409 million and $417 million at January 31, 2021 and 2020, respectively. The estimated fair value of our revolving credit borrowings at January 31, 2020 was $45 million. 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 January 31, 2021 and 2020 did not significantly differ from par value. The estimated fair value of our revolving credit borrowings, if any, is based upon indicative market values provided by one of our lenders.

The estimated fair values of our Notes were approximately $440 million and $438 million at January 31, 2021 and 2020, respectively. The estimated fair value of the Notes is 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. Further details regarding our regular impairment reviews appear in Note 1, “Summary of Significant Accounting Policies”.

As of January 31, 2021, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $6.7 million, of which $4.0 million was remeasured to fair value based on an observable transaction during the year ended January 31, 2021. These investments are included within other assets on the consolidated balance sheets. An unrealized gain of $3.2 million, which adjusted the carrying value of a noncontrolling equity investment, and a realized gain of $0.6 million upon the receipt of proceeds related to the partial sale of the same equity investment during the period was recorded in other income (expense), net on the consolidated statement of operations for the year ended January 31, 2021. As of January 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 during the year ended January 31, 2020. We did not recognize any impairments during the years ended January 31, 2021 and 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

12 Months Ended

Jan. 31, 2021

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 $61.4 million and $89.0 million as of January 31, 2021 and 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 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 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 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 consolidated balance sheet and were reclassified into the 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 amortized to interest expense in the consolidated statement of operations 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 consolidated balance sheets as of January 31, 2021 and 2020 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2021		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,134	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	—		102
Total derivative assets		$	1,134	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	403	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	323		116
Interest rate swap agreements:
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 a hedging instrument	Accrued expenses and other current liabilities	4,316		—
Not designated as a hedging instrument	Other liabilities	13,565		—
Total derivative liabilities		$	18,607	$	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 consolidated statement of operations for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	2,186	$	2,239	$	(981)
Interest rate swap agreement	(7,535)		(10,265)		(3,043)
	$	(5,349)	$	(8,026)	$	(4,024)
Net (losses) gains reclassified from AOCL to the consolidated statements of operations:
Foreign currency forward contracts	$	2,149	$	453	$	(4,219)
Interest rate swap agreement	(4,367)		(792)		—
	$	(2,218)	$	(339)	$	(4,219)

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

Effective with our February 1, 2018 adoption of ASU No. 2017-12, ineffectiveness of cash flow hedges is no longer recognized. All of the foreign currency forward contracts underlying the $0.6 million of net unrealized gains recorded in our accumulated other comprehensive loss at January 31, 2021 mature within twelve months, and therefore we expect all such gains to be reclassified into earnings within the next twelve months. Approximately $3.4 million of the $13.0 million of net unrealized losses related to our interest rate swap agreement recorded in our accumulated other comprehensive loss at January 31, 2021 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

(Losses) gains recognized on derivative financial instruments not designated as hedging instruments in our consolidated statements of operations for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2021		2020		2019
Foreign currency forward contracts	Other (expense) income, net	$	(95)	$	647	$	1,891
Interest rate swap agreements	Other (expense) income, net	(1,267)		(48)		620
		$	(1,362)	$	599	$	2,511

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

12 Months Ended

Jan. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

Stock-Based Compensation Plans

Plan Summaries

We issue stock-based incentive awards to eligible employees, directors and consultants, including restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options (both incentive and non-qualified), and other awards, under the terms of our outstanding stock benefit plans (the “Plans” or “Stock Plans”) and forms of equity award agreements approved by our board of directors.

Awards are generally subject to multi-year vesting periods. We recognize compensation expense for awards on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods, reduced by estimated forfeitures. Upon issuance of restricted stock, exercise of stock options, or issuance of shares under the Plans, we generally issue new shares of common stock, but may issue treasury shares.

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, new 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, 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 will reduce the available plan capacity by 2.38 shares.

In March 2021, our board of directors approved an adjustment of the available plan capacity to the 2019 Plan to 14,239,656 shares based on an adjustment ratio of approximately 1.45 as a result of the Spin-Off.

Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the consolidated statements of operations for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Component of income before provision for income taxes:
Cost of revenue - product	$	1,448	$	2,014	$	1,309
Cost of revenue - service and support	3,926		6,170		4,426
Research and development, net	9,536		13,426		9,870
Selling, general and administrative	47,523		61,088		51,052
Total stock-based compensation expense	62,433		82,698		66,657
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	8,783		12,651		10,377
Total stock-based compensation, net of taxes	$	53,650	$	70,047	$	56,280

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Restricted stock units and restricted stock awards	$	63,005	$	65,080	$	57,639
Stock bonus program and bonus share program	(716)		17,543		8,943
Total equity-settled awards	62,289		82,623		66,582
Phantom stock units (cash-settled awards)	144		75		75
Total stock-based compensation expense	$	62,433	$	82,698	$	66,657

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.

We recorded a $1.5 million net excess tax deficiency, and $2.4 million and $0.2 million of net excess tax benefits resulting from our Stock Plans as a component of income tax expense for the years ended January 31, 2021, 2020 and 2019, respectively.

Restricted Stock Units and Performance Stock Units

We periodically award RSUs to our directors, officers, and other employees. The fair value of these awards is equivalent to the market value of our common stock on the grant date. RSUs are not shares of our common stock and do not have any of the rights or privileges thereof, including voting or dividend rights. On the applicable vesting date, the holder of an RSU becomes entitled to a share of our common stock. RSUs are subject to certain restrictions and forfeiture provisions prior to vesting.

We periodically award PSUs to executive officers and certain employees that vest upon the achievement of specified performance goals or market conditions. We separately recognize compensation expense for each tranche of a PSU award as if it were a separate award with its own vesting date. For certain PSUs, an accounting grant date may be established prior to the requisite service period.

Once a performance vesting condition has been defined and communicated, and the requisite service period has begun, our estimate of the fair value of PSUs requires an assessment of the probability that the specified performance criteria will be achieved, which we update at each reporting date and adjust our estimate of the fair value of the PSUs, if necessary. All compensation expense for PSUs with market conditions is recognized if the requisite service period is fulfilled, even if the market condition is not satisfied.

RSUs and PSUs that are expected to settle with cash payments upon vesting, if any, are reflected as liabilities on our consolidated balance sheets. Such RSUs and PSUs were insignificant at January 31, 2021, 2020, and 2019.

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 years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
	2021			2020			2019
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		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	2,808	$	41.18
Granted	2,031	$	47.36	1,620	$	60.42	1,708	$	43.03
Released	(1,615)	$	47.64	(1,435)	$	40.59	(1,481)	$	43.67
Forfeited	(282)	$	52.65	(226)	$	45.57	(258)	$	41.07
Ending balance	2,870	$	51.61	2,736	$	52.53	2,777	$	41.05

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 January 31, 2021, 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.

In order to achieve an equitable modification of the existing awards following the Spin-Off, we converted unvested awards as of February 1, 2021 by a factor of approximately 1.45, resulting in additional awards being granted to remaining employees denominated solely in Verint common stock.

The following table summarizes PSU activity in isolation under the Plans for the years ended January 31, 2021, 2020, and 2019 (these amounts are also included in the Award Activity Table above):


	Year Ended January 31,
(in thousands)	2021	2020	2019
Beginning balance	526	512	506
Granted	381	291	228
Released	(233)	(245)	(139)
Forfeited	(32)	(32)	(83)
Ending balance	642	526	512

Excluding PSUs, we granted 1,650,000 RSUs during the year ended January 31, 2021.

As of January 31, 2021, there was approximately $89.7 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 1.28 years.

Stock Options

We did not grant stock options during the years ended January 31, 2021, 2020, and 2019, and activity from stock options awarded in prior periods was not material during these years.

Phantom Stock Units

We have periodically issued phantom stock units to certain employees that settle, or are expected to settle, with cash payments upon vesting. Like equity-settled awards, phantom stock units are awarded with vesting conditions and are subject to certain forfeiture provisions prior to vesting.

Phantom stock unit activity for the years ended January 31, 2021, 2020, and 2019 was not significant.

Adjustment in Connection with the Spin-Off

In accordance with the terms of our applicable equity incentive plans, following the completion of the Spin-Off on February 1, 2021, we equitably adjusted the number of shares underlying our remaining unvested awards by a factor of approximately 1.45 based on the ratio of the trading prices of our common stock prior to the Spin-Off to the trading prices of our common stock following the Spin-Off. The tables above reflect the pre-adjustment numbers as of January 31, 2021.

Stock Bonus Program

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

For bonuses in respect of the year ended 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 issued 32,000 shares under the stock bonus program for the performance period ended January 31, 2020 during the year ended January 31, 2021.

For bonuses in respect of the year ended January 31, 2021, our board of directors approved the use of up to 200,000 shares of common stock, and a discount of 15%, for awards under this program, however, the program was not used and no shares will be issued in respect of the performance period ended January 31, 2021.

The following table summarizes activity under the stock bonus program during the years ended January 31, 2021, 2020, and 2019 in isolation. Shares are issued in a given fiscal year in respect of the prior fiscal year’s program period. As noted above, shares issued in respect of the discount feature under the program reduce available plan capacity and are included in the Award Activity Table above. Other shares issued under the program do not reduce available plan capacity and are therefore excluded from the Award Activity Table above.


	Year Ended January 31,
(in thousands)	2021	2020	2019
Shares in lieu of cash bonus - granted and released (not included in the Award Activity Table above)	32	97	19
Shares in respect of discount (included in the Award Activity Table above):
Granted	—	16	—
Released	3	13	—

In March 2021, our board of directors approved up to 300,000 shares of common stock, and a discount of 15% for awards under our stock bonus program for the performance period ending January 31, 2022.

Bonus Share Program

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

During the year ended January 31, 2019, approximately 197,000 shares of common stock were awarded and released under the bonus share program in respect of the performance period ended January 31, 2018.

During the year ended January 31, 2020, approximately 59,000 shares of common stock were awarded and released under the bonus share program in respect of the performance period ended January 31, 2019.

During the year ended January 31, 2021, approximately 272,000 shares of common stock were awarded and released under the bonus share program in respect of the performance period ended January 31, 2020.

For bonuses in respect of the year ended January 31, 2021, the board of directors approved the use of up to 300,000 shares of common stock under this program, reduced by any shares used under the stock bonus program in respect of the performance period ended January 31, 2021. For example, assuming all 200,000 shares currently authorized for issuance under the stock bonus program for the performance period ended January 31, 2021 were issued, no more than 100,000 shares would be issued under the bonus share program for such performance period. We do not expect to utilize any of the shares authorized under the bonus share program for the performance period ended January 31, 2021.

For bonuses in respect of the year ending January 31, 2022, 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 $2.5 million and $17.3 million at January 31, 2021 and 2020, respectively. As noted above, we do not intend to grant awards under the stock bonus program or the bonus share program for the performance period ended January 31, 2021 and instead expect to pay bonuses for such period in cash.

Other Benefit Plans

401(k) Plan and Other Retirement Plans

We maintain a 401(k) Plan for our full-time employees in the United States. The plan allows eligible employees who attain the age of 21 beginning with the first of the month following their date of hire to elect to contribute up to 60% of their annual compensation, subject to the prescribed maximum amount. We match employee contributions at a rate of 50%, up to a maximum annual matched contribution of $2,000 per employee.

Employee contributions are always fully vested, while our matching contributions for each year vest on the last day of the calendar year provided the employee remains employed with us on that day.

Our matching contribution expenses for our 401(k) Plan were $2.7 million, $3.0 million, and $2.7 million for the years ended January 31, 2021, 2020, and 2019, respectively.

We provide retirement benefits for non-U.S. employees as required by local laws or to a greater extent as we deem appropriate through plans that function similar to 401(k) plans. Funding requirements for programs required by local laws are determined on an individual country and plan basis and are subject to local country practices and market circumstances.

Severance Pay

We are obligated to make severance payments for the benefit of certain employees of our foreign subsidiaries. Severance payments made to Israeli employees are considered significant compared to all other subsidiaries with severance payment arrangements. Under Israeli law, we are obligated to make severance payments to employees of our Israeli subsidiaries, subject to certain conditions. In most cases, our liability for these severance payments is fully provided for by regular deposits to funds administered by insurance providers and by an accrual for the amount of our liability which has not yet been deposited.

Severance expenses for our Israeli employees for the years ended January 31, 2021, 2020, and 2019 were $8.8 million, $8.7 million, and $13.3 million, respectively.

LEASES

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

LEASES

LEASESWe have entered into operating leases primarily for corporate offices, research and development facilities, datacenters, and

automobiles. Our finance leases primarily relate to infrastructure equipment. Our leases have remaining lease terms of 1 year to 11 years, some of which may include options to extend the leases for up to 10 years, and some of which may include options to terminate the leases within 1 year. As of January 31, 2021 and 2020, assets recorded under finance leases were $11.0 million and $13.3 million, respectively. As of January 31, 2021 and 2020, accumulated depreciation associated with finance leases was $2.7 million and $0.7 million, respectively.

The components of lease expenses for the years ended January 31, 2021 and 2020 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	32,811	$	29,898
Finance lease expenses:
Amortization of right-of-use assets	2,378		581
Interest on lease liabilities	414		226
Total finance lease expenses	2,792		807
Variable lease expenses	8,800		8,233
Short-term lease expenses	616		860
Sublease income	(966)		(908)
Total lease expenses	$	44,053	$	38,890

During the year ended January 31, 2021, we exited certain leased offices primarily due to our workforce operating under remote work environments in certain locations due to COVID-19, resulting in accelerated operating lease expenses of $2.8 million. In the year ended January 31, 2019, we recorded rent expense under all operating leases of $22.6 million under the previous lease accounting standard.

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,631		$	27,599
Operating cash flows from finance leases	414			226
Financing cash flows from finance leases	2,880			2,522
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	13,488		$	22,472
Finance leases	903			6,405
Weighted average remaining lease terms
Operating leases	6 years			6 years
Finance leases	3 years			4 years
Weighted average discount rates
Operating leases	5.4		%	6.0		%
Finance leases	4.0		%	5.2		%

Maturities of lease liabilities as of January 31, 2021 were as follows:


	January 31, 2021
(in thousands)	Operating Leases		Finance Leases
Year Ending January 31,
2022	$	25,859	$	2,480
2023	22,856		2,091
2024	20,517		700
2025	18,349		277
2026	13,792		—
Thereafter	16,927		—
Total future minimum lease payments	118,300		5,548
Less: imputed interest	(17,478)		(294)
Total	$	100,822	$	5,254

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	20,936	$	2,285
Operating lease liabilities	79,886		—
Other liabilities	—		2,969
Total	$	100,822	$	5,254

As of January 31, 2021, we have additional operating leases for office facilities that have not yet commenced with future lease obligations of $4.9 million. These operating leases will commence in 2021 with lease terms greater than 1 year to 5 years.

LEASES

LEASESWe have entered into operating leases primarily for corporate offices, research and development facilities, datacenters, and

The components of lease expenses for the years ended January 31, 2021 and 2020 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	32,811	$	29,898
Finance lease expenses:
Amortization of right-of-use assets	2,378		581
Interest on lease liabilities	414		226
Total finance lease expenses	2,792		807
Variable lease expenses	8,800		8,233
Short-term lease expenses	616		860
Sublease income	(966)		(908)
Total lease expenses	$	44,053	$	38,890

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,631		$	27,599
Operating cash flows from finance leases	414			226
Financing cash flows from finance leases	2,880			2,522
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	13,488		$	22,472
Finance leases	903			6,405
Weighted average remaining lease terms
Operating leases	6 years			6 years
Finance leases	3 years			4 years
Weighted average discount rates
Operating leases	5.4		%	6.0		%
Finance leases	4.0		%	5.2		%

Maturities of lease liabilities as of January 31, 2021 were as follows:


	January 31, 2021
(in thousands)	Operating Leases		Finance Leases
Year Ending January 31,
2022	$	25,859	$	2,480
2023	22,856		2,091
2024	20,517		700
2025	18,349		277
2026	13,792		—
Thereafter	16,927		—
Total future minimum lease payments	118,300		5,548
Less: imputed interest	(17,478)		(294)
Total	$	100,822	$	5,254

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	20,936	$	2,285
Operating lease liabilities	79,886		—
Other liabilities	—		2,969
Total	$	100,822	$	5,254

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations In the ordinary course of business, we enter into certain unconditional purchase obligations, which are agreements to purchase goods or services that are enforceable, legally binding, and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Our purchase orders are based on current needs and are typically fulfilled by our vendors within a relatively short time horizon. As of January 31, 2021, our unconditional purchase obligations totaled approximately $203.8 million. Licenses and Royalties We license certain technology and pay royalties under such licenses and other agreements entered into in connection with research and development activities. As discussed in Note 1, “Summary of Significant Accounting Policies”, we receive non-refundable grants from the IIA that fund a portion of our research and development expenditures. The Israeli law under which the IIA grants are made limits our ability to manufacture products, or transfer technologies, developed using these grants outside of Israel. If we were to seek approval to manufacture products, or transfer technologies, developed using these grants outside of Israel, we could be subject to additional royalty requirements or be required to pay certain redemption fees. If we were to violate these restrictions, we could be required to refund any grants previously received, together with interest and penalties, and may be subject to criminal penalties. Off-Balance Sheet Risk In the normal course of business, we provide certain customers with financial performance guarantees, which are generally backed by standby letters of credit or surety bonds. In general, we would only be liable for the amounts of these guarantees in the event that our nonperformance permits termination of the related contract by our customer, which we believe is remote. At January 31, 2021, we had approximately $72.1 million of outstanding letters of credit and surety bonds relating primarily to these performance guarantees. As of January 31, 2021, we believe we were in compliance with our performance obligations under all contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on our consolidated results of operations, financial position, or cash flows. Our historical non-compliance with our performance obligations has been insignificant. Indemnifications In the normal course of business, we provide indemnifications of varying scopes to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Historically, costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations. To the extent permitted under Delaware law or other applicable law, we indemnify our directors, officers, employees, and agents against claims they may become subject to by virtue of serving in such capacities for us. We also have contractual indemnification agreements with our directors, officers, and certain senior executives. The maximum amount of future payments we could be required to make under these indemnification arrangements and agreements is potentially unlimited; however, we have insurance coverage that limits our exposure and enables us to recover a portion of any future amounts paid. We are not able to estimate the fair value of these indemnification arrangements and agreements in excess of applicable insurance coverage, if any. Legal Proceedings In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our former Israeli subsidiary, Cognyte Technologies Israel Ltd. (formerly known as Verint Systems Limited or “VSL”) (Case Number 4186/09) and against our former 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, (ii) dismissed the motion to certify the suit against VSL and Comverse Limited, and (iii) approved the plaintiffs’ motion to certify the suit as a class action against CTI 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 Israeli 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 Israeli 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 Israeli Supreme Court. On February 1, 2021, we completed the Spin-Off. As a result of the Spin-Off, Cognyte is now an independent, publicly traded company. Under the terms of the Separation and Distribution Agreement entered into between Verint and Cognyte, Cognyte has agreed to indemnify Verint for Cognyte’s share of any losses that Verint may suffer related to the foregoing legal actions either in its capacity as successor to CTI, to the extent not indemnified by Mavenir, or due to its former ownership of Cognyte and VSL. 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, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION

12 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION

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 CODM, or decision making group, in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer is our CODM.

For the year ended January 31, 2021 and prior periods, we reported 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. As more fully disclosed in Note 19, “Subsequent Events” on December 4, 2019, we announced our intent to spin off our Cyber Intelligence business into an independent publicly traded company through a pro rata distribution to our common stockholders. The Spin-Off was completed on February 1, 2021.

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.

Revenue from transactions between our operating segments is not material.

Operating results by segment for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue:
Customer Engagement:
Segment revenue	$	840,583	$	873,200	$	811,346
Revenue adjustments	(10,336)		(26,675)		(15,059)
	830,247		846,525		796,287
Cyber Intelligence:
Segment revenue	447,027		462,817		433,753
Revenue adjustments	(3,569)		(5,708)		(293)
	443,458		457,109		433,460
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Segment contribution:
Customer Engagement	$	339,688	$	338,098	$	316,776
Cyber Intelligence	137,131		130,519		114,012
Total segment contribution	476,819		468,617		430,788

Reconciliation of segment contribution to operating income:
Revenue adjustments	13,905		32,383		15,352
Shared support expenses	180,033		177,308		163,893
Amortization of acquired intangible assets	49,900		55,442		56,413
Stock-based compensation	62,433		82,698		66,657
Separation expenses	47,707		5,288		—
Acquisition, integration, restructuring, and other unallocated expenses	14,136		27,642		14,238
Total reconciling items, net	368,114		380,761		316,553
Operating income	$	108,705	$	87,856	$	114,235

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. There were no material changes in the allocations of goodwill and acquired intangible assets by operating segment during the years ended January 31, 2021, 2020, and 2019. Further details regarding the allocations of goodwill and acquired intangible assets by operating segment appear in Note 6, “Intangible Assets and Goodwill”.

Geographic Information

Revenue by major geographic region is based upon the geographic location of the customers who purchase our products and services. The geographic locations of distributors, resellers, and systems integrators who purchase and resell our products may be different from the geographic locations of end customers.

Revenue in the Americas includes the United States, Canada, Mexico, Brazil, and other countries in the Americas. Revenue in Europe, the Middle East and Africa (“EMEA”) includes the United Kingdom, Germany, Israel, and other countries in EMEA. Revenue in the Asia-Pacific (“APAC”) region includes Australia, India, Singapore, and other Asia-Pacific countries.

The information below summarizes revenue from unaffiliated customers by geographic area for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Americas:
United States	$	555,458	$	590,602	$	555,365
Other	105,064		93,302		103,158
Total Americas	660,522		683,904		658,523
EMEA	358,879		374,721		321,723
APAC	254,304		245,009		249,501
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Our long-lived assets primarily consist of net property and equipment, operating lease right-of-use assets, goodwill and other intangible assets, and deferred income taxes. We believe that our tangible long-lived assets, which consist of our net property and equipment, are exposed to greater geographic area risks and uncertainties than intangible assets and long-term cost deferrals, because these tangible assets are difficult to move and are relatively illiquid.

Property and equipment, net by geographic area consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
United States	$	51,996	$	61,096
Israel	34,014		33,316
Other countries	20,232		21,699
Total property and equipment, net	$	106,242	$	116,111

Significant Customers

No single customer accounted for more than 10% of our revenue during the years ended January 31, 2021, 2020, and 2019.

- 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

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+ Details

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Spin-Off of Cognyte Software Ltd. On February 1, 2021, we completed the previously announced Spin-Off of the Cognyte Business into a separate, independent publicly traded company, Cognyte Software Ltd. The Spin-Off was completed by means of a distribution in which each holder of Verint’s common stock received one Cognyte ordinary share for every share of common stock of Verint held of record as of the close of business on January 25, 2021. After the distribution, we do not beneficially own any ordinary shares of Cognyte and will no longer consolidate Cognyte into our financial results for periods ending after January 31, 2021. The Spin-Off is intended to be generally tax-free to our stockholders for U.S. federal income tax purposes. Our consolidated financial statements for the year ended and as of January 31, 2021 include the financial position and results of Cognyte in continuing operations. However, effective in the first quarter of the year ending January 31, 2022, the historical financial results of Cognyte will be presented in our consolidated financial statements as a discontinued operation under GAAP for all historical periods presented. On February 1, 2021, in connection with the Spin-Off, we entered into certain agreements with Cognyte that govern the relationship between the Company and Cognyte following the Spin-Off, including each of the following: a Separation and Distribution Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a limited duration Transition Services Agreement, an Intellectual Property Cross License Agreement, and a Trademark Cross License Agreement. Cash Collateralization of 1.50% Convertible Senior Notes On February 26, 2021, we deposited approximately $390.0 million of cash, representing the full principal amount of the Notes then outstanding as well as the final interest payment on the Notes due at maturity on June 1, 2021, into an escrow account in satisfaction of the cash collateralization provisions of the 2020 Amendment. Accordingly, the maturity dates of the 2017 Term Loan and 2017 Revolving Credit Facility will not be accelerated to March 1, 2021. The $390.0 million escrow deposit will be reported within our restricted cash balance until the Notes are retired. Stock Repurchase Program On March 31, 2021, we announced that our board of directors had authorized a new stock repurchase program whereby we may repurchase up to a number of shares of common stock approximately equal to the number of shares to be issued as equity compensation during the fiscal year ending January 31, 2022. Repurchases are expected to be financed with available cash of up to 60% of our free cash flow during such period (as determined by management), subject to compliance with applicable laws, rules and regulations. We may utilize a number of different methods to effect the repurchases, including open market purchases, which may include, without limitation, round lot or block transactions, including through one or more accelerated stock repurchase plans or pursuant to the terms of one or more repurchase plans in accordance with Rule 10b5-1 or Rule 10b-18 under the Securities Exchange Act of 1934. The specific timing, price, and size of purchases will depend on prevailing stock prices, general market and economic conditions, and other considerations, including the amount of cash available in the U.S. and other potential uses of cash. The program may be extended, suspended, or discontinued at any time without prior notice and does not obligate us to acquire any particular amount of common stock.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jan. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying 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 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 U.S. generally accepted accounting principles (“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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 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 of COVID-19 as of January 31, 2021 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.
Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits	Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits Restricted cash and cash equivalents, and restricted bank time deposits are pledged as collateral or otherwise restricted as to use for vendor payables, general liability insurance, workers’ compensation insurance, warranty programs, and other obligations.
Investments	Investments Our investments generally consist of bank time deposits, and marketable debt securities of corporations, the U.S. government, and agencies of the U.S. government, all with remaining maturities in excess of 90 days at the time of purchase. We held no marketable debt securities at January 31, 2021 and 2020. Investments with maturities in excess of one year are included in other assets.
Accounts Receivable, Net	Accounts Receivable, NetTrade accounts receivable are comprised of invoiced amounts due from customers for which we have an unconditional right to collect and are not interest-bearing. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable.
Concentrations of Credit Risk	Concentrations of Credit RiskFinancial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, trade accounts receivable, and contract assets. We invest our cash in bank accounts, certificates of deposit, and money market accounts with major financial institutions, in U.S. government and agency obligations, and in debt securities of corporations. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities.We grant credit terms to our customers in the ordinary course of business. Concentrations of credit risk with respect to trade accounts receivable and contract assets are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas. There were two customers in our Cyber Intelligence segment that combined accounted for $72.6 million and $51.7 million of our aggregated accounts receivable and contract assets, at January 31, 2021 and 2020, respectively. These amounts result from both direct and indirect contracts with governmental agencies outside of the United States., which we believe present insignificant credit risk.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments on February 1, 2021. ASU No. 2016-13 requires us to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. Our allowance for doubtful accounts or expected credit losses is estimated based on an analysis of the aging of our accounts receivable and contract assets, historical write-offs, customer payment patterns, individual customer creditworthiness, current economic trends, reasonable and supportable forecasts of future economic conditions, and/or establishment of specific reserves for customers in adverse financial condition. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. We assess the adequacy of the allowance for doubtful accounts on a quarterly basis.
Inventories	Inventories Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method of inventory accounting. The valuation of our inventories requires us to make estimates regarding excess or obsolete inventories, including making estimates of the future demand for our products. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated changes in demand, price, or technological developments could have a significant impact on the value of our inventory and reported operating results. Charges for excess and obsolete inventories are included within cost of revenue.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method based over the estimated useful lives of the assets. The vast majority of equipment, furniture and other is depreciated over periods ranging from three years to seven years. Software is typically depreciated over periods ranging from three years to four years. Buildings are depreciated over periods ranging from ten years to twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease term. Finance leased assets are amortized over the related lease term. The cost of maintenance and repairs of property and equipment is charged to operations as incurred. When assets are retired or disposed of, the cost and accumulated depreciation or amortization thereon are removed from the consolidated balance sheet and any resulting gain or loss is recognized in the consolidated statement of operations.
Segment Reporting	Segment Reporting 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. As of January 31, 2021, we conducted our business through two operating segments, which are also our reportable segments—Customer Engagement (“Customer Engagement”) and Cyber Intelligence (“Cyber Intelligence”). Organizing our business through two operating segments allowed us to align our resources and domain expertise to effectively address the Actionable Intelligence market. We determine our reportable segments based on a number of factors our management uses to evaluate and run our business operations, including similarities of customers, products, and technology. Our Chief Executive Officer is our CODM, who primarily reviews segment revenue and segment operating contribution when assessing the financial performance of our segments and allocating resources. On February 1, 2021, we completed the Spin-Off of Cognyte, whose business and operations consisted of our former Cyber Intelligence Solutions business, into an independent public company. 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” when reconciling segment contribution to operating income, 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. Please refer to Note 18, “Segment, Geographic, and Significant Customer Information” for further details regarding our operating segments.
Goodwill and Other Acquired Intangible Assets	Goodwill and Other Acquired Intangible Assets For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. Goodwill is assigned, at the acquisition date, to those reporting units expected to benefit from the synergies of the combination. We test goodwill for impairment at the reporting unit level, which can be an operating segment or one level below an operating segment, on an annual basis as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. As of January 31, 2021, our reporting units were Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and Situational Intelligence, a component of our Cyber Intelligence operating segment. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. If our quantitative testing determines that the carrying value of a reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to that reporting unit. We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of each reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts. Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, non-competition agreements, sales backlog, and in-process research and development. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 10 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.
Fair Value Measurements	Fair Value Measurements Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This fair value hierarchy consists of three levels of inputs that may be used to measure fair value: •Level 1: quoted prices in active markets for identical assets or liabilities; •Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or •Level 3: unobservable inputs that are supported by little or no market activity. We review the fair value hierarchy classification of our applicable assets and liabilities at each reporting period. Changes in the observability of valuation inputs may result in transfers within the fair value measurement hierarchy. We did not identify any transfers between levels of the fair value measurement hierarchy during the years ended January 31, 2021 and 2020.
Fair Values of Financial Instruments	Fair Values of Financial InstrumentsOur recorded amounts of cash and cash equivalents, restricted cash and cash equivalents, and restricted bank time deposits, accounts receivable, contract assets, investments, and accounts payable approximate fair value, due to the short-term nature of these instruments. We measure certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.
Derivative Financial Instruments	Derivative Financial Instruments As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts and interest rate swap agreements to hedge against certain foreign currency and interest rate exposures. Our intent is to mitigate gains and losses caused by the underlying exposures with offsetting gains and losses on the derivative contracts. By policy, we do not enter into speculative positions with derivative instruments. We record all derivatives as assets or liabilities on our consolidated balance sheets at their fair values. Gains and losses from the changes in values of these derivatives are accounted for based on the use of the derivative and whether it qualifies for hedge accounting. The counterparties to our derivative financial instruments consist of several major international financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.
Revenue Recognition	Revenue Recognition We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was adopted on February 1, 2018, using the modified retrospective transition method. For further discussion of our accounting policies related to revenue see Note 2, “Revenue Recognition.” Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. When an arrangement contains multiple performance obligations, we account for individual performance obligations separately if they are distinct. We recognize revenue through the application of the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer, published credit and financial information pertaining to the customer. Our customary business practice is to enter into legally enforceable written contracts with our customers. The majority of our contracts are governed by a master agreement between us and the customer, which sets forth the general terms and conditions of any individual contract between the parties, which is then supplemented by a customer purchase order to specify the different goods and services, the associated prices, and any additional terms for an individual contract. Multiple contracts with a single counterparty entered into at the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain Cyber Intelligence customers require design, development, or significant customization of our products to meet their specific requirements, in which case the products and services are combined into one distinct performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. We assess the timing of transfer of goods and services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less, which is the case in the majority of our customer contracts. The primary purpose of our invoicing terms is not to receive or provide financing from or to customers. Our Cyber Intelligence contracts may require an advance payment to encourage customer commitment to the project and protect us from early termination of the contract. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price, if we assessed that a significant future reversal of cumulative revenue under the contract will not occur. Typically, our contracts do not provide our customers with any right of return or refund, and we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund. 4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct goods or services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, we must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. We allocate the variable amount to one or more distinct performance obligations but not all or to one or more distinct services that forms a part of a single performance obligation, when the payment terms of the variable amount relate solely to our efforts to satisfy that distinct performance obligation and it results in an allocation that is consistent with the overall allocation objective of ASU No. 2014-09. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. We determine standalone selling price (“SSP”) based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. 5) Recognize revenue when (or as) the entity satisfies a performance obligation We satisfy performance obligations either over time or at a point in time depending on the nature of the underlying promise. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. In the case of contracts that include customer acceptance criteria, revenue is not recognized until we can objectively conclude that the product or service meets the agreed-upon specifications in the contract. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to our customers. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer. Shipping and handling activities that are billed to the customer and occur after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. Historically, these expenses have not been material. Nature of Goods and Services We derive and report our revenue in two categories: (a) product revenue, including licensing of software products, unbundled SaaS and the sale of hardware products (which include software that works together with the hardware to deliver the product’s essential functionality), and (b) service and support revenue, including revenue from cloud deployments, bundled SaaS, hosting services, optional managed services, installation services, initial and renewal support, project management, product warranties, and business advisory consulting, and training services. Our software licenses either provide our customers a perpetual right to use our software or, in the case of unbundled SaaS, the right to use our software for only a fixed term, in most cases between a one- and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that the software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. We rarely sell our software licenses on a standalone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there are certain stratifications of the population with different pricing practices. Revenue for hardware is recognized at a point in time, generally upon shipment or delivery. In our Cyber Intelligence Solutions segment certain contracts require us to significantly customize our software and these contracts are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use the expected cost plus a margin approach to estimate the SSP of our significantly customized solutions. Professional services revenues primarily consist of fees for deployment and optimization services, as well as training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional services as the services are performed. Professional services that are billed on a time and materials basis are recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. We determine SSP for our professional services based on the price at which the performance obligation is sold separately, which is observable through past transactions. Our bundled SaaS contracts are typically comprised of a right to access our software, maintenance, hosting fees and standard managed services. We do not provide the customer the contractual right to take possession of the software at any time during the hosting period under these contracts. The customer can only benefit from the SaaS license, maintenance and standard managed services when combined with the hosting service as the hosting service is the only way for the customer to access the software and benefit from the maintenance and managed services. Accordingly, each of the license, maintenance, hosting and standard managed services is not considered a distinct performance obligation in the context of the contract, and are combined into a single performance obligation (“bundled SaaS services”) and recognized ratably over the contract period. Our bundled SaaS customer contracts can consist of fixed, variable, and usage based fees. Typically, we invoice a portion of the fees at the outset of the contract and then monthly or quarterly thereafter. Certain bundled SaaS contracts include a nonrefundable upfront fee for setup services, which are not distinct from the bundled SaaS services. Non-distinct setup services represent an advanced payment for future bundled SaaS services, and are recognized as revenue when those bundled SaaS services are satisfied, unless the nonrefundable fee is considered to be a material right, in which case the nonrefundable fee is recognized over the expected benefit period, which includes anticipated renewals. We determine SSP for our bundled SaaS services based on the price at which the performance obligation is sold separately, which is observable through past renewal transactions. We satisfy our bundled SaaS services by providing access to our software over time and processing transactions for usage based contracts. For non-usage based fees, the period of time over which we perform is commensurate with the contract term because that is the period during which we have an obligation to provide the service. The performance obligation is recognized on a time elapsed basis, by month for which the services are provided. Customer support revenue is derived from providing telephone technical support services, bug fixes and unspecified software updates and upgrades to customers on a when-and-if-available basis. Each of these performance obligations provide benefit to the customer on a standalone basis and are distinct in the context of the contract. Each of these distinct performance obligations represent a stand ready obligation to provide service to a customer, which is concurrently delivered and has the same pattern of transfer to the customer, which is why we account for these support services as a single performance obligation. We recognize support services ratably over the contractual term, which typically is one year, and develop SSP for support services based on standalone renewal contracts. Our Customer Engagement solutions are generally sold with a warranty of one year for hardware and 90 days for software. Our Cyber Intelligence solutions are generally sold with warranties that typically range from 90 days to three years and, in some cases, longer. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware complies with agreed-upon specifications are not provided.
Cost of Revenue	Cost of Revenue Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, and related overhead costs. Costs that relate to satisfied (or partially satisfied) performance obligations in customer contracts (i.e. costs that relate to past performance) are expensed as incurred. Please refer to Note 2, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.
Research and Development, net	Research and Development, net With the exception of certain software development costs, all research and development costs are expensed as incurred, and consist primarily of personnel and consulting costs, travel, depreciation of research and development equipment, and related overhead and other costs associated with research and development activities. We receive non-refundable grants from the Israeli Innovation Authority (“IIA”), formerly the Israel Office of the Chief Scientist (“OCS”), that fund a portion of our research and development expenditures. We currently only enter into non-royalty-bearing arrangements with the IIA which do not require us to pay royalties. Funds received from the IIA are recorded as a reduction to research and development expense. Royalties, to the extent paid, are recorded as part of our cost of revenue. We also periodically derive benefits from participation in certain government-sponsored programs in other jurisdictions, for the support of research and development activities conducted in those locations.
Software Development Costs	Software Development Costs Costs incurred to acquire or develop software to be sold, leased or otherwise marketed are capitalized after technological feasibility is established, and continue to be capitalized through the general release of the related software product. Amortization of capitalized costs begins in the period in which the related product is available for general release to customers and is recorded on a straight-line basis, which approximates the pattern in which the economic benefits of the capitalized costs are expected to be realized, over the estimated economic lives of the related software products, generally four years.
Internal-Use Software	Internal-Use Software We capitalize costs associated with software that is acquired, internally developed or modified solely to meet our internal needs. Capitalization begins when the preliminary project stage has been completed and management with the relevant authority authorizes and commits to the funding of the project. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are generally amortized over estimated useful lives of four years on a straight-line basis, which best represents the pattern of the software’s use.
Income Taxes	Income Taxes We account for income taxes under the asset and liability method which includes the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our consolidated financial statements. Under this approach, deferred taxes are recorded for the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus deferred taxes. Deferred taxes result from differences between the financial statement and tax bases of our assets and liabilities, and are adjusted for changes in tax rates and tax laws when changes are enacted. The effects of future changes in income tax laws or rates are not anticipated. We are subject to income taxes in the United States and numerous foreign jurisdictions. The calculation of our income tax provision involves the application of complex tax laws and requires significant judgment and estimates. We evaluate the realizability of our deferred tax assets for each jurisdiction in which we operate at each reporting date, and establish valuation allowances when it is more likely than not that all or a portion of our deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. We consider all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. In circumstances where there is sufficient negative evidence indicating that our deferred tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that we believe is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets. Our policy is to include interest (expense and/or income) and penalties related to unrecognized income tax benefits as a component of the provision for income taxes.
Functional Currencies and Foreign Currency Transaction Gains and Losses	Functional Currencies and Foreign Currency Transaction Gains and Losses The functional currency for most of our foreign subsidiaries is the applicable local currency, although we have several subsidiaries with functional currencies that differ from their local currency, of which the most notable exceptions are our subsidiaries in Israel, whose functional currencies are the U.S. dollar. Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within other income (expense), net in the consolidated statements of operations. We recorded net foreign currency gains of $0.1 million, and net foreign currency losses of $0.1 million and $5.5 million for the years ended January 31, 2021, 2020, and 2019, respectively. For consolidated reporting purposes, in those instances where a foreign subsidiary has a functional currency other than the U.S. dollar, revenue and expenses are translated into U.S. dollars using average exchange rates for the reporting period, while assets and liabilities are translated into U.S. dollars using period-end rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying consolidated balance sheets.
Stock-Based Compensation	Stock-Based Compensation We recognize the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of the award. We recognize the fair value of the award as compensation expense over the period during which an employee is required to provide service in exchange for the award. For performance stock units for which vesting is in part dependent on total shareholder return, the fair value of the award is estimated on the date of grant using a Monte Carlo Simulation. Expected volatility and expected term are input factors for that model and may require significant management judgment. Expected volatility is estimated utilizing daily historical volatility for Verint common stock price and the constituents of the specific comparator index over a period commensurate with the remaining award performance period. The risk-free interest rate used is equal to the implied daily yield of the zero-coupon U.S. Treasury bill that corresponds with the remaining performance period of the award as of the valuation date.
Net (Loss) Income Per Common Share Attributable to Verint Systems Inc.	Net (Loss) Income Per Common Share Attributable to Verint Systems Inc. Shares used in the calculation of basic net (loss) income per common share are based on the weighted-average number of common shares outstanding during the accounting period. Shares used in the calculation of basic net (loss) income per common share include vested but unissued shares underlying awards of restricted stock units when all necessary conditions for earning those shares have been satisfied at the award’s vesting date, but exclude unvested shares of restricted stock because they are contingent upon future service conditions. Upon conversion of our 1.50% convertible senior notes due June 1, 2021 (the “Notes”), further details for which appear in Note 7, “Long-Term Debt,” we are currently obligated to settle the principal amount of the Notes in cash upon conversion and as a result, only the amounts payable in excess of the principal amounts of the Notes, if any, are assumed to be settled with shares of common stock for purposes of computing diluted net income per share. In periods for which we report a net loss, basic net loss per common share and diluted net loss per common share are identical since the effect of potential common shares is anti-dilutive and therefore excluded.
Leases	Leases We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our consolidated balance sheets. Finance lease assets are included in property and equipment, and corresponding finance lease liabilities are included within accrued expenses and other current liabilities (current portions), and other liabilities (long-term portions), on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which we account for as a single lease component. Some of our leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases on our ROU assets and lease liabilities was not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, we do not have any related party leases and our sublease transactions are de minimis.
Recent Accounting Pronouncements	New Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued 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. Our 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 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 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 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 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 modified 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 consolidated financial statements. New Accounting Pronouncements Not Yet Effective In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. ASU No. 2020-06 also eliminates the treasury stock method to calculate diluted earnings per share and requires the if-converted method. The provisions of ASU No. 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. We are required to adopt this standard in the first quarter of the year ending January 31, 2023. The update permits the use of either the modified retrospective or fully retrospective method of transition. We are currently reviewing this standard to assess the impact on our consolidated financial statements. 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jan. 31, 2021

Accounting Policies [Abstract]

Summary of Activity in Allowance for Doubtful Accounts

The following table summarizes the activity in our allowance for doubtful accounts for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Allowance for doubtful accounts, beginning of year	$	5,324	$	3,777	$	2,217
Cumulative effect of adoption of ASU No. 2016-13	1,012		—		—
Provisions charged to expense	3,707		2,572		2,746
Amounts written off	(3,853)		(1,176)		(1,172)
Other, including fluctuations in foreign exchange rates	(22)		151		(14)
Allowance for doubtful accounts, end of year	$	6,168	$	5,324	$	3,777

REVENUE RECOGNITION (Tables)

12 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

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.


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue by category:
Customer Engagement revenue
Product	$	199,426	$	223,397	$	221,721
Service and support	630,821		623,128		574,566
Total Customer Engagement revenue	830,247		846,525		796,287

Cyber Intelligence revenue
Product	206,828		231,478		232,929
Service and support	236,630		225,631		200,531
Total Cyber Intelligence revenue	443,458		457,109		433,460

Total
Product	406,254		454,875		454,650
Service and support	867,451		848,759		775,097
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Revenue by recurrence:
Customer Engagement revenue
Recurring revenue	$	575,624	$	534,378	$	465,671
Nonrecurring revenue	254,623		312,147		330,616
Total Customer Engagement revenue	830,247		846,525		796,287

Cyber Intelligence revenue
Recurring revenue	223,405		192,578		165,265
Nonrecurring revenue	220,053		264,531		268,195
Total Cyber Intelligence revenue	443,458		457,109		433,460

Total
Recurring revenue	799,029		726,956		630,936
Nonrecurring revenue	474,676		576,678		598,811
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747


	Year Ended January 31,
(in thousands)	2021		2020		2019
Customer Engagement revenue:
Recurring revenue
Bundled SaaS revenue	$	145,962	$	115,925	$	84,715
Unbundled SaaS revenue	71,990		48,018		26,732
Optional managed services revenue	59,459		56,534		41,103
Total cloud revenue	277,411		220,477		152,550
Support revenue	298,213		313,901		313,121
Total recurring revenue	575,624		534,378		465,671
Nonrecurring revenue
Perpetual revenue	141,840		179,882		196,125
Professional services revenue	112,783		132,265		134,491
Total nonrecurring revenue	254,623		312,147		330,616
Total Customer Engagement revenue	$	830,247	$	846,525	$	796,287

Contracts with Customers - Assets and Liabilities

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


	January 31,
(in thousands)	2021		2020
Accounts receivable, net	$	381,158	$	382,435
Contract assets, net	$	57,033	$	64,961
Long-term contract assets, net (included in other assets)	$	18,429	$	1,358
Contract liabilities	$	388,045	$	397,350
Long-term contract liabilities	$	38,539	$	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:


	January 31, 2021						January 31, 2020
(in thousands)	Customer Engagement		Cyber Intelligence		Total		Customer Engagement		Cyber Intelligence		Total
RPO:
Expected to be recognized within 1 year	$	405,714	$	353,166	$	758,880	$	374,982	$	356,677	$	731,659
Expected to be recognized in more than 1 year	229,951		198,572		428,523		117,497		225,056		342,553
Total RPO	$	635,665	$	551,738	$	1,187,403	$	492,479	$	581,733	$	1,074,212

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

12 Months Ended

Jan. 31, 2021

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 (loss) income per common share attributable to Verint Systems Inc. for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands, except per share amounts)	2021		2020		2019
Net (loss) income	$	(107)	$	35,683	$	70,220
Net income attributable to noncontrolling interests	7,160		6,999		4,229
Net (loss) income attributable to Verint Systems Inc.	(7,267)		28,684		65,991
Dividends on preferred stock	(7,656)		—		—
Net (loss) income attributable to Verint Systems Inc. for basic net (loss) income per common share	(14,923)		28,684		65,991
Dilutive effect of dividends on preferred stock	—		—		—
Net (loss) income attributable to Verint Systems Inc. for diluted net (loss) income per common share	$	(14,923)	$	28,684	$	65,991

Weighted-average shares outstanding:
Basic	65,173		66,129		64,913
Dilutive effect of employee equity award plans	—		1,226		1,332
Dilutive effect of 1.50% convertible senior notes	—		—		—
Dilutive effect of warrants	—		—		—
Dilutive effect of assumed conversion of preferred stock	—		—		—
Diluted	65,173		67,355		66,245
Net (loss) income per common share attributable to Verint Systems Inc.:
Basic	$	(0.23)	$	0.43	$	1.02
Diluted	$	(0.23)	$	0.43	$	1.00

Schedule of anti-dilutive securities


	Year Ended January 31,
(in thousands)	2021	2020	2019
Stock options and restricted stock-based awards	1,337	900	276
1.50% convertible senior notes	6,002	6,205	6,205
Warrants	6,205	6,205	6,205
Preferred Stock	2,743	—	—

CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Tables)

12 Months Ended

Jan. 31, 2021

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 January 31, 2021 and 2020:


	January 31, 2021
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	321,753	$	—	$	—	$	321,753
Money market funds	342,090		—		—		342,090
Total cash and cash equivalents	$	663,843	$	—	$	—	$	663,843

Short-term investments:
Bank time deposits	$	51,013	$	—	$	—	$	51,013
Total short-term investments	$	51,013	$	—	$	—	$	51,013


	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 AND DIVESTITURES (Tables)

12 Months Ended

Jan. 31, 2021

Business Combinations [Abstract]

Schedule of Purchase Price Allocations


(in thousands)	Amount
Components of Purchase Prices:
Cash	$	76,198
Fair value of contingent consideration	15,253
Other purchase price adjustments	(1,480)
Total purchase prices	$	89,971

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	3,950
Other current assets, including cash acquired	14,511
Other assets	6,556
Current and other liabilities	(8,648)
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	51,041
Total purchase prices allocation	$	89,971


(in thousands)	Amount
Components of Purchase Price:
Cash	$	58,901
Deferred purchase price consideration	6,000
Other purchase price adjustments	262
Total purchase price	$	65,163

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	7,245
Other current assets, including cash acquired	8,101
Other assets	6,075
Current and other liabilities	(12,710)
Contract liabilities - current and long-term	(9,821)
Deferred income taxes	(10,687)
Net tangible liabilities	(11,797)
Identifiable intangible assets:
Customer relationships	19,400
Developed technology	20,000
Trademarks and trade names	3,300
Total identifiable intangible assets	42,700
Goodwill	34,260
Total purchase price allocation	$	65,163


(in thousands)	Amount
Components of Purchase Prices:
Cash	$	33,138
Fair value of contingent consideration	15,875
Fair value of previously held equity interest	2,239
Total purchase prices	$	51,252

Allocation of Purchase Prices:
Net tangible assets (liabilities):
Accounts receivable	$	1,897
Other current assets, including cash acquired	6,901
Other assets	9,432
Current and other liabilities	(2,151)
Contract liabilities - current and long-term	(771)
Deferred income taxes	(7,914)
Net tangible assets	7,394
Identifiable intangible assets:
Customer relationships	7,521
Developed technology	10,692
Trademarks and trade names	500
Total identifiable intangible assets	18,713
Goodwill	25,145
Total purchase prices allocation	$	51,252

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquisition-Related Intangible Assets

Acquisition-related intangible assets consisted of the following as of January 31, 2021 and 2020:


	January 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	469,423	$	(358,824)	$	110,599
Acquired technology	296,311		(262,035)		34,276
Trade names	10,575		(7,230)		3,345
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(484)		823
Total intangible assets	$	782,056	$	(633,013)	$	149,043


	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 January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Customer Engagement	$	143,744	$	189,896
Cyber Intelligence	5,299		7,868
Total	$	149,043	$	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
2022	$	46,846
2023	38,806
2024	28,728
2025	11,987
2026	10,111
Thereafter	12,565
Total	$	149,043

Schedule of Goodwill Activity

Goodwill activity for the years ended January 31, 2021, and 2020, in total and by reportable segment, was as follows:


			Reportable Segment
(in thousands)	Total		Customer Engagement		Cyber Intelligence
Year Ended January 31, 2020:
Goodwill, gross, at January 31, 2019	$	1,484,346	$	1,326,370	$	157,976
Accumulated impairment losses through January 31, 2019	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2019	1,417,481		1,270,327		147,154
Business combinations, including adjustments to prior period acquisitions	51,301		39,704		11,597
Foreign currency translation and other	429		1,037		(608)
Goodwill, net, at January 31, 2020	$	1,469,211	$	1,311,068	$	158,143

Year Ended January 31, 2021:
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
Adjustments to prior period business combinations	300		—		300
Foreign currency translation and other	16,079		16,339		(260)
Goodwill, net, at January 31, 2021	$	1,485,590	$	1,327,407	$	158,183

Balance at January 31, 2021
Goodwill, gross, at January 31, 2021	$	1,552,455	$	1,383,450	$	169,005
Accumulated impairment losses through January 31, 2021	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2021	$	1,485,590	$	1,327,407	$	158,183

LONG-TERM DEBT (Tables)

12 Months Ended

Jan. 31, 2021

Long-term Debt, Unclassified [Abstract]

Summary of Long-term Debt

The following table summarizes our long-term debt at January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
1.50% Convertible Senior Notes	$	386,887	$	400,000
June 2017 Term Loan	410,125		414,375
Borrowings under 2017 Revolving Credit Facility	—		45,000
Less: Unamortized debt discounts and issuance costs	(7,518)		(22,327)
Total debt	789,494		837,048
Less: current maturities	386,713		4,250
Long-term debt	$	402,781	$	832,798

Schedule of Future Scheduled Principal Payments on 2017 Term Loan

As of January 31, 2021, future scheduled principal payments on the 2017 Term Loan were as follows:


(in thousands)
Years Ending January 31,	Amount
2022	$	4,250
2023	4,250
2024	4,250
2025	397,375
Total	$	410,125

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 years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
1.50% Convertible Senior Notes:
Interest expense at 1.50% coupon rate	$	5,887	$	6,000	$	6,000
Amortization of debt discount	12,884		12,490		11,850
Amortization of deferred debt issuance costs	1,215		1,177		1,118
Total Interest Expense - 1.50% Convertible Senior Notes	$	19,986	$	19,667	$	18,968

Borrowings under Credit Agreements:
Interest expense at contractual rates	$	13,018	$	18,021	$	17,741
Impact of interest rate swap agreement	4,368		792		—
Amortization of debt discounts	74		68		67
Amortization of deferred debt issuance costs	1,811		1,569		1,554
Total Interest Expense - Borrowings under Credit Agreements	$	19,271	$	20,450	$	19,362

- 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

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+ Details

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

12 Months Ended

Jan. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Raw materials	$	10,289	$	9,628
Work-in-process	5,186		4,749
Finished goods	4,608		6,118
Total inventories	$	20,083	$	20,495

Schedule of Property and Equipment, net

Property and equipment, net consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Land and buildings	$	10,978	$	10,754
Leasehold improvements	35,907		35,463
Software	40,152		53,606
Equipment, furniture, and other	190,573		199,268
Total cost	277,610		299,091
Less: accumulated depreciation and amortization	(171,368)		(182,980)
Total property and equipment, net	$	106,242	$	116,111

Schedule of Other Assets

Other assets consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Deferred commissions	$	50,838	$	37,263
Capitalized software development costs, net	30,564		27,030
Long-term contract assets, net	18,429		1,358
Long-term restricted cash and time deposits	15,712		26,362
Long-term deferred cost of revenue	8,276		6,345
Deferred debt issuance costs, net	1,449		2,005
Long-term security deposits	1,960		1,920
Other	12,072		15,680
Total other assets	$	139,300	$	117,963

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Compensation and benefits	$	122,722	$	100,225
Fair value of future tranche right	52,772		—
Taxes other than income taxes	24,323		18,642
Operating lease obligations - current portion	20,936		22,656
Contingent consideration - current portion	12,518		22,859
Income taxes	5,789		15,084
Distributor and agent commissions	12,422		10,097
Professional and consulting fees	6,161		4,367
Other	54,063		35,768
Total accrued expenses and other current liabilities	$	311,706	$	229,698

Schedule of Other Liabilities

Other liabilities consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Unrecognized tax benefits, including interest and penalties	$	21,284	$	22,355
Derivative financial instruments - long-term portion	13,565		11,441
Contingent consideration - long-term portion	6,109		20,017
Finance lease obligations - long-term portion	2,969		7,210
Obligations for severance compensation	2,273		2,627
Other	5,441		3,505
Total other liabilities	$	51,641	$	67,155

Schedule of Other (Expense) Income, Net

Other (expense) income, net consisted of the following for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Foreign currency gains (losses), net	$	98	$	(56)	$	(5,519)
(Losses) gains on derivative financial instruments, net	(1,362)		599		2,511
Change in fair value of future tranche right	(56,146)		—		—
Other, net	2,095		(338)		(898)
Total other (expense) income, net	$	(55,315)	$	205	$	(3,906)

Schedule of Supplemental Information Regarding Consolidated Cash Flows

The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash paid for interest	$	24,650	$	23,232	$	22,258
Cash payments of income taxes, net	$	22,842	$	15,391	$	26,887
Non-cash investing and financing transactions:
Liabilities for contingent consideration in business combinations	$	—	$	15,253	$	15,944
Series A Preferred Stock dividends declared	$	5,200	$	—	$	—
Finance leases of property and equipment	$	903	$	6,404	$	1,137
Accrued but unpaid purchases of property and equipment	$	5,651	$	4,362	$	3,376
Accrued but unpaid purchases of treasury stock	$	—	$	2,846	$	—
Leasehold improvements funded by lease incentives	$	119	$	2,604	$	1,397
Inventory transfers to property and equipment	$	894	$	825	$	1,699
Contingent receivable in exchange for sale of subsidiary	$	—	$	738	$	—

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jan. 31, 2021

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 years ended January 31, 2021 and 2020:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Unrealized Gain on Interest Rate Swap Designated as Hedge		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive loss at January 31, 2019	$	(981)	$	(3,043)	$	(141,201)	$	(145,225)
Other comprehensive income (loss) before reclassifications	2,015		(8,102)		(762)		(6,849)
Amounts reclassified out of accumulated other comprehensive loss	408		(617)		—		(209)
Net other comprehensive income (loss)	1,607		(7,485)		(762)		(6,640)
Accumulated other comprehensive income (loss) at January 31, 2020	626		(10,528)		(141,963)		(151,865)
Other comprehensive income (loss) before reclassifications	1,869		(5,916)		17,482		13,435
Amounts reclassified out of accumulated other comprehensive income (loss)	1,861		(3,413)		—		(1,552)
Net other comprehensive income (loss)	8		(2,503)		17,482		14,987
Accumulated other comprehensive income (loss) at January 31, 2021	$	634	$	(13,031)	$	(124,481)	$	(136,878)

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


	Year Ended January 31,						Financial Statement Location
(in thousands)	2021		2020		2019
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	109	$	11	$	(350)	Cost of product revenue
	298		64		(388)		Cost of service and support revenue
	1,009		250		(2,138)		Research and development, net
	733		128		(1,343)		Selling, general and administrative
	2,149		453		(4,219)		Total, before income taxes
	(288)		(45)		429		(Provision) benefit for income taxes
	$	1,861	$	408	$	(3,790)	Total, net of income taxes

Interest rate swap agreement	$	(4,367)	$	(792)	$	—	Interest expense
	(4,367)		(792)		—		Total, before income taxes
	954		175		—		Benefit from income taxes
	$	(3,413)	$	(617)	$	—	Total, net of income taxes

RESEARCH AND DEVELOPMENT, NET (Tables)

12 Months Ended

Jan. 31, 2021

Research and Development [Abstract]

Activity of Capitalized Software Development Costs

Activity for our capitalized software development costs for the years ended January 31, 2021, 2020, and 2019 was as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Capitalized software development costs, net, beginning of year	$	27,030	$	13,342	$	9,228
Software development costs capitalized during the year	12,444		17,222		7,320
Amortization of capitalized software development costs	(6,375)		(3,561)		(3,101)
Write-offs of capitalized software development costs	(2,373)		—		—
Foreign currency translation and other	(162)		27		(105)
Capitalized software development costs, net, end of year	$	30,564	$	27,030	$	13,342

INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Before Provision For Income Taxes

The components of income before provision for income taxes for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Domestic	$	(73,452)	$	(49,703)	$	(12,927)
Foreign	89,675		103,006		90,689
Total income before provision for income taxes	$	16,223	$	53,303	$	77,762

Schedule of Provision for Income Taxes

The provision for income taxes for the years ended January 31, 2021, 2020, and 2019 consisted of the following:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Current provision (benefit) for income taxes:
Federal	$	(2,006)	$	8,683	$	(1,582)
State	980		1,033		2,299
Foreign	21,091		5,759		9,842
Total current provision for income taxes	20,065		15,475		10,559
Deferred (benefit) provision for income taxes:
Federal	384		(4,096)		(4,099)
State	(417)		948		(2,687)
Foreign	(3,702)		5,293		3,769
Total deferred (benefit) provision for income taxes	(3,735)		2,145		(3,017)
Total provision for income taxes	$	16,330	$	17,620	$	7,542

Reconciliation of the U.S. Federal Statutory Rate to the Entity's Effective Tax Rate on Income (Loss) Before Income Taxes

The reconciliation of the U.S. federal statutory rate to our effective tax rate on income before provision for income taxes for the years ended January 31, 2021, 2020, and 2019 was as follows:


	Year Ended January 31,
(in thousands)	2021			2020			2019
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	3,407		$	11,193		$	16,330
State income tax provision	1,258			230			3,968
Foreign tax rate differential	(625)			11,700			9,516
Tax incentives	(1,514)			(8,395)			(7,377)
Valuation allowances	(3,807)			1,607			(24,099)
Stock-based and other compensation	2,474			(2,143)			678
Non-deductible expenses	(322)			2,752			(412)
Tax credits	875			260			(265)
Tax contingencies	(2,539)			(11,550)			(3,035)
Change in fair value of future tranche right	11,791			—			—
U.S. tax effects of foreign operations	4,536			11,963			11,559
Other, net	796			3			679
Total provision for income taxes	$	16,330		$	17,620		$	7,542
Effective income tax rate	100.7		%	33.1		%	9.7		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following at January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Deferred tax assets:
Accrued expenses	$	5,772	$	3,979
Operating lease liabilities	11,402		15,716
Fair value of derivatives	4,149		3,332
Loss carryforwards	24,575		30,063
Tax credits	5,946		7,021
Stock-based and other compensation	14,171		14,087
Other, net	—		18
Total deferred tax assets	66,015		74,216
Deferred tax liabilities:
Deferred cost of revenue	(8,931)		(7,588)
Goodwill and other intangible assets	(30,751)		(36,989)
Unremitted earnings of foreign subsidiaries	(14,882)		(12,257)
Operating lease right-of-use assets	(8,864)		(12,401)
Other, net	(2,093)		(4,674)
Total deferred tax liabilities	(65,521)		(73,909)
Valuation allowance	(22,981)		(26,334)
Net deferred tax liabilities	$	(22,487)	$	(26,027)

Recorded as:
Deferred tax assets	$	14,489	$	13,802
Deferred tax liabilities	(36,976)		(39,829)
Net deferred tax liabilities	$	(22,487)	$	(26,027)

Schedule of Valuation Allowance

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2021 and 2020:


	Year Ended January 31,
(in thousands)	2021		2020
Valuation allowance, beginning of year	$	(26,334)	$	(24,526)
Income tax benefit (provision)	3,807		(1,607)
Currency translation adjustment and other	(454)		(201)
Valuation allowance, end of year	$	(22,981)	$	(26,334)

Schedule of Aggregate Changes in the Balance of Gross Unrecognized Tax Benefits

For the years ended January 31, 2021, 2020, and 2019, the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gross unrecognized tax benefits, beginning of year	$	91,279	$	109,066	$	115,709
Increases related to tax positions taken during the current year	3,445		2,464		8,843
Increases as a result of business combinations	—		286		1,032
Increases related to tax positions taken during prior years	19		147		10,305
Increases (decreases) related to foreign currency exchange rates	395		1,373		(2,253)
Reductions for tax positions of prior years	(445)		(17,388)		(23,415)
Reductions for settlements with tax authorities	—		(4,370)		(1,054)
Lapses of statutes of limitations	(1,414)		(299)		(101)
Gross unrecognized tax benefits, end of year	$	93,279	$	91,279	$	109,066

Schedule of Income Tax Returns Under Examination in Major Tax Jurisdictions

As of January 31, 2021, income tax returns are under examination in the following significant tax jurisdictions:


Jurisdiction						Tax Years
United Kingdom						December 31, 2006, January 31, 2008, January 31, 2018, January 31, 2019
India						March 31, 2007, March 31, 2008, March 31, 2010 - March 31, 2013, March 31, 2017
Israel						January 31, 2018

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 31, 2021

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 January 31, 2021 and 2020:


	January 31, 2021
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	342,090	$	—	$	—
Foreign currency forward contracts	—		1,134		—
Contingent consideration receivable	—		—		565
Total assets	$	342,090	$	1,134	$	565
Liabilities:
Foreign currency forward contracts	$	—	$	726	$	—
Interest rate swap agreement	—		17,881		—
Future tranche right	—		—		52,772
Contingent consideration - business combinations	—		—		18,627
Option to acquire noncontrolling interests of consolidated subsidiaries	—		—		3,250
Total liabilities	$	—	$	18,607	$	74,649


	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 year ended January 31, 2021.


	Year Ended January 31,
(in thousands)	2021
Fair value measurement, beginning of year	$	—
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	(56,146)
Fair value measurement, end of year	$	(52,772)



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	42,875	$	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	—		15,253
Changes in fair values, recorded in operating expenses	(4,471)		(531)
Payments of contingent consideration	(20,103)		(33,088)
Foreign currency translation and other	326		(99)
Fair value measurement, end of year	$	18,627	$	42,875

The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the years ended January 31, 2021 and 2020:



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	2,900	$	3,000
Change in fair value, recorded in operating expenses	350		(100)
Fair value measurement, end of year	$	3,250	$	2,900

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 January 31, 2021 are as follows:


	January 31,			May 7,
	2021			2020
Risk-free interest rate for preferred stock	1.86		%	1.31		%
Implied credit spread	6.78		%	10.78		%
Expected volatility	30.00		%	30.00		%
Verint common stock price	$	73.83		$	45.44

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jan. 31, 2021

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 consolidated balance sheets as of January 31, 2021 and 2020 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2021		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,134	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	—		102
Total derivative assets		$	1,134	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	403	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	323		116
Interest rate swap agreements:
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 a hedging instrument	Accrued expenses and other current liabilities	4,316		—
Not designated as a hedging instrument	Other liabilities	13,565		—
Total derivative liabilities		$	18,607	$	13,633

Schedule of the Effects of Derivative Financial Instruments Designated as Cash Flow Hedging Instruments


	Year Ended January 31,
(in thousands)	2021		2020		2019
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	2,186	$	2,239	$	(981)
Interest rate swap agreement	(7,535)		(10,265)		(3,043)
	$	(5,349)	$	(8,026)	$	(4,024)
Net (losses) gains reclassified from AOCL to the consolidated statements of operations:
Foreign currency forward contracts	$	2,149	$	453	$	(4,219)
Interest rate swap agreement	(4,367)		(792)		—
	$	(2,218)	$	(339)	$	(4,219)

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


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2021		2020		2019
Foreign currency forward contracts	Other (expense) income, net	$	(95)	$	647	$	1,891
Interest rate swap agreements	Other (expense) income, net	(1,267)		(48)		620
		$	(1,362)	$	599	$	2,511

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS (Tables)

12 Months Ended

Jan. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Recognized Stock-based Compensation Expense on the Consolidated Statements of Operations

We recognized stock-based compensation expense in the following line items on the consolidated statements of operations for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Component of income before provision for income taxes:
Cost of revenue - product	$	1,448	$	2,014	$	1,309
Cost of revenue - service and support	3,926		6,170		4,426
Research and development, net	9,536		13,426		9,870
Selling, general and administrative	47,523		61,088		51,052
Total stock-based compensation expense	62,433		82,698		66,657
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	8,783		12,651		10,377
Total stock-based compensation, net of taxes	$	53,650	$	70,047	$	56,280

Summary of Stock-based Compensation Expense by Type of Award

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Restricted stock units and restricted stock awards	$	63,005	$	65,080	$	57,639
Stock bonus program and bonus share program	(716)		17,543		8,943
Total equity-settled awards	62,289		82,623		66,582
Phantom stock units (cash-settled awards)	144		75		75
Total stock-based compensation expense	$	62,433	$	82,698	$	66,657

Summary of RSU and RSA Activity Under the Plans


	Year Ended January 31,
	2021			2020			2019
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		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	2,808	$	41.18
Granted	2,031	$	47.36	1,620	$	60.42	1,708	$	43.03
Released	(1,615)	$	47.64	(1,435)	$	40.59	(1,481)	$	43.67
Forfeited	(282)	$	52.65	(226)	$	45.57	(258)	$	41.07
Ending balance	2,870	$	51.61	2,736	$	52.53	2,777	$	41.05

Summary of Performance RSU Activity Under the Plans

The following table summarizes PSU activity in isolation under the Plans for the years ended January 31, 2021, 2020, and 2019 (these amounts are also included in the Award Activity Table above):


	Year Ended January 31,
(in thousands)	2021	2020	2019
Beginning balance	526	512	506
Granted	381	291	228
Released	(233)	(245)	(139)
Forfeited	(32)	(32)	(83)
Ending balance	642	526	512

Summary of Key Data for Stock Bonus Program


	Year Ended January 31,
(in thousands)	2021	2020	2019
Shares in lieu of cash bonus - granted and released (not included in the Award Activity Table above)	32	97	19
Shares in respect of discount (included in the Award Activity Table above):
Granted	—	16	—
Released	3	13	—

LEASES (Tables)

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Schedule of Lease Expenses

The components of lease expenses for the years ended January 31, 2021 and 2020 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	32,811	$	29,898
Finance lease expenses:
Amortization of right-of-use assets	2,378		581
Interest on lease liabilities	414		226
Total finance lease expenses	2,792		807
Variable lease expenses	8,800		8,233
Short-term lease expenses	616		860
Sublease income	(966)		(908)
Total lease expenses	$	44,053	$	38,890

Schedule of Supplemental Cash Flow Information Related to Leases

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	29,631		$	27,599
Operating cash flows from finance leases	414			226
Financing cash flows from finance leases	2,880			2,522
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	13,488		$	22,472
Finance leases	903			6,405
Weighted average remaining lease terms
Operating leases	6 years			6 years
Finance leases	3 years			4 years
Weighted average discount rates
Operating leases	5.4		%	6.0		%
Finance leases	4.0		%	5.2		%

Schedule of Maturities of Operating and Finance Lease Liabilities

Maturities of lease liabilities as of January 31, 2021 were as follows:


	January 31, 2021
(in thousands)	Operating Leases		Finance Leases
Year Ending January 31,
2022	$	25,859	$	2,480
2023	22,856		2,091
2024	20,517		700
2025	18,349		277
2026	13,792		—
Thereafter	16,927		—
Total future minimum lease payments	118,300		5,548
Less: imputed interest	(17,478)		(294)
Total	$	100,822	$	5,254

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	20,936	$	2,285
Operating lease liabilities	79,886		—
Other liabilities	—		2,969
Total	$	100,822	$	5,254

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION (Tables)

12 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Operating Results by Segment

Operating results by segment for the years ended January 31, 2021, 2020, and 2019 were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue:
Customer Engagement:
Segment revenue	$	840,583	$	873,200	$	811,346
Revenue adjustments	(10,336)		(26,675)		(15,059)
	830,247		846,525		796,287
Cyber Intelligence:
Segment revenue	447,027		462,817		433,753
Revenue adjustments	(3,569)		(5,708)		(293)
	443,458		457,109		433,460
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Segment contribution:
Customer Engagement	$	339,688	$	338,098	$	316,776
Cyber Intelligence	137,131		130,519		114,012
Total segment contribution	476,819		468,617		430,788

Reconciliation of segment contribution to operating income:
Revenue adjustments	13,905		32,383		15,352
Shared support expenses	180,033		177,308		163,893
Amortization of acquired intangible assets	49,900		55,442		56,413
Stock-based compensation	62,433		82,698		66,657
Separation expenses	47,707		5,288		—
Acquisition, integration, restructuring, and other unallocated expenses	14,136		27,642		14,238
Total reconciling items, net	368,114		380,761		316,553
Operating income	$	108,705	$	87,856	$	114,235

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The information below summarizes revenue from unaffiliated customers by geographic area for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Americas:
United States	$	555,458	$	590,602	$	555,365
Other	105,064		93,302		103,158
Total Americas	660,522		683,904		658,523
EMEA	358,879		374,721		321,723
APAC	254,304		245,009		249,501
Total revenue	$	1,273,705	$	1,303,634	$	1,229,747

Property and equipment, net by geographic area consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
United States	$	51,996	$	61,096
Israel	34,014		33,316
Other countries	20,232		21,699
Total property and equipment, net	$	106,242	$	116,111

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Description of Business (Details) organization in Thousands	12 Months Ended
	Jan. 31, 2021 organization country office professional
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of fortune 100 companies as customers	85.00%
Number of organizations as customer \| organization	10
Number of countries customers located \| country	175
Number Of Offices \| office	40
Number of professionals in r&d team \| professional	4,300

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECENT DEVELOPMENTS (Details) - USD ($)	Feb. 01, 2021	May 07, 2020	Dec. 04, 2019	Apr. 30, 2021	Jan. 31, 2021
Description of Business [Line Items]
Common stock, par value (in dollars per share)					$ 0.001
Subsequent Event
Description of Business [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
Spin-off transaction, number of shares received (in shares)	1
Apax Investment \| Verint
Description of Business [Line Items]
Ownership percentage					7.50%
Convertible Preferred Stock
Description of Business [Line Items]
Sale of stock, consideration received on transaction			$ 400,000,000.0
Series A Preferred Stock
Description of Business [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000.0
Series B Preferred Stock
Description of Business [Line Items]
Sale of stock, consideration received on transaction			$ 200,000,000.0
Minimum \| Apax Investment \| Verint \| Forecast
Description of Business [Line Items]
Ownership percentage				12.00%
Maximum \| Apax Investment \| Verint \| Forecast
Description of Business [Line Items]
Ownership percentage				13.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS (Details)	12 Months Ended
	Jan. 31, 2021
Investments [Abstract]
Minimum maturity period of short term investments in time deposits (in days)	90 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) $ in Millions	Jan. 31, 2021	Jan. 31, 2020
Credit Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, after allowance for credit loss	$ 72.6	$ 51.7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts, beginning of year	$ 5,324	$ 3,777	$ 2,217
Provision for doubtful accounts	3,707	2,572	2,746
Amounts written off	(3,853)	(1,176)	(1,172)
Other, including fluctuations in foreign exchange rates	(22)	151	(14)
Allowance for doubtful accounts, end of year	6,168	5,324	3,777
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts, beginning of year	1,012	0	0
Allowance for doubtful accounts, end of year	$ 1,100	$ 1,012	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT, NET (Details)	12 Months Ended
	Jan. 31, 2021
Property, Plant and Equipment [Line Items]
Estimated useful lives of finite-lived intangible assets (in years)	10 years
Equipment, furniture, and other \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	3 years
Equipment, furniture, and other \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	7 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	4 years
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	10 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives, (in years)	25 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENT REPORTING (Details)	12 Months Ended
	Jan. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS (Details)	12 Months Ended
	Jan. 31, 2021
Accounting Policies [Abstract]
Estimated useful lives of finite-lived intangible assets (in years)	10 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE DEVELOPMENT COSTS (Details)	12 Months Ended
	Jan. 31, 2021
Software Development Costs
Software Development Costs
Estimated useful lives, (in years)	4 years
Internal-Use Software
Software Development Costs
Estimated useful lives, (in years)	4 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOREIGN CURRENCY TRANSACTION GAINS AND LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Foreign Currency Transaction Gain (Loss), before Tax [Abstract]
Foreign currency gains (losses), net	$ 98	$ (56)	$ (5,519)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NET (LOSS) INCOME PER COMMON SHARE (Details)	Jan. 31, 2021	Jun. 18, 2014
1.50% convertible senior notes
Debt Conversion
Coupon interest rate	1.50%	1.50%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, allowance for credit loss	$ 6,168	$ 5,324	$ 3,777	$ 2,217
Impact of accumulated deficit	113,797	105,590
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, allowance for credit loss	1,100	$ 1,012	$ 0	$ 0
Deferred tax assets, net	200
Impact of accumulated deficit	$ 900

REVENUE RECOGNITION - ADDITIONAL INFORMATION (Details)	12 Months Ended
REVENUE RECOGNITION - ADDITIONAL INFORMATION (Details)	Jan. 31, 2021
Disaggregation of Revenue [Line Items]
Software maintenance, period	1 year
Hardware \| Customer Engagement
Disaggregation of Revenue [Line Items]
Warranty period (in days/years)	1 year
Software \| Customer Engagement
Disaggregation of Revenue [Line Items]
Warranty period (in days/years)	90 days
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Minimum \| Cyber Intelligence
Disaggregation of Revenue [Line Items]
Warranty period (in days/years)	90 days
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years
Maximum \| Cyber Intelligence
Disaggregation of Revenue [Line Items]
Warranty period (in days/years)	3 years

REVENUE RECOGNITION - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 1,273,705	$ 1,303,634	$ 1,229,747
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years
Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 799,029	726,956	630,936
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	474,676	576,678	598,811
Product
Disaggregation of Revenue [Line Items]
Revenue	406,254	454,875	454,650
Service and support
Disaggregation of Revenue [Line Items]
Revenue	867,451	848,759	775,097
Customer Engagement
Disaggregation of Revenue [Line Items]
Revenue	830,247	846,525	796,287
Customer Engagement \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	575,624	534,378	465,671
Customer Engagement \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	254,623	312,147	330,616
Customer Engagement \| Product
Disaggregation of Revenue [Line Items]
Revenue	199,426	223,397	221,721
Customer Engagement \| Service and support
Disaggregation of Revenue [Line Items]
Revenue	630,821	623,128	574,566
Customer Engagement \| Bundled SaaS revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	145,962	115,925	84,715
Customer Engagement \| Unbundled SaaS revenue
Disaggregation of Revenue [Line Items]
Revenue	4,700	1,800
Customer Engagement \| Unbundled SaaS revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	71,990	48,018	26,732
Customer Engagement \| Optional managed services revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	59,459	56,534	41,103
Customer Engagement \| Total cloud revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	277,411	220,477	152,550
Customer Engagement \| Support revenue \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	298,213	313,901	313,121
Customer Engagement \| Perpetual revenue \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	141,840	179,882	196,125
Customer Engagement \| Professional services revenue \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	112,783	132,265	134,491
Cyber Intelligence
Disaggregation of Revenue [Line Items]
Revenue	443,458	457,109	433,460
Cyber Intelligence \| Recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	223,405	192,578	165,265
Cyber Intelligence \| Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	220,053	264,531	268,195
Cyber Intelligence \| Product
Disaggregation of Revenue [Line Items]
Revenue	206,828	231,478	232,929
Cyber Intelligence \| Service and support
Disaggregation of Revenue [Line Items]
Revenue	$ 236,630	$ 225,631	$ 200,531

REVENUE RECOGNITION - CONTRACT BALANCES (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 381,158	$ 382,435
Contract assets, net	57,033	64,961
Long-term contract assets, net (included in other assets)	18,429	1,358
Contract liabilities	388,045	397,350
Long-term contract liabilities	$ 38,539	$ 40,565

REVENUE RECOGNITION - CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Millions	Jan. 31, 2021	Jan. 31, 2020
Cyber Intelligence \| Credit Concentration Risk
Concentration Risk [Line Items]
Aggregate contract assets & accounts receivable	$ 72.6	$ 51.7

REVENUE RECOGNITION - CONTRACT ASSET AND LIABILITY ROLLFORWARD (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Revenue from Contract with Customer [Abstract]
Amount reclassified to Accounts Receivable from beginning balance of Contract Asset	$ 45.6	$ 49.1
Contract Assets recognized in current period	55.1	48.8
Current period revenue recognized from beginning balance of Contract Liabilities	$ 368.8	$ 331.6

REVENUE RECOGNITION - COSTS TO OBTAIN AND FULFILL CONTRACTS (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Maximum
Capitalized Contract Cost [Line Items]
Customer engagement contracts renewal period	6 years
Minimum
Capitalized Contract Cost [Line Items]
Customer engagement contracts renewal period	4 years
Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 58.2	$ 45.0
Capitalized contract cost, amortization	49.9	54.4	$ 45.7
Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	13.1	14.7
Capitalized contract cost, amortization	16.6	13.1	$ 18.3
Prepaid expenses and other current assets \| Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	7.3	7.7
Prepaid expenses and other current assets \| Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	4.8	8.4
Other Assets \| Sales Commission
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	50.9	37.3
Other Assets \| Costs to Fulfill
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 8.3	$ 6.3

NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC - CALCULATION (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jun. 18, 2014
Net Income (Loss) Attributable to Verint Systems Inc. [Abstract]
Net (loss) income	$ (107)	$ 35,683	$ 70,220
Net income attributable to noncontrolling interests	7,160	6,999	4,229
Net (loss) income attributable to Verint Systems Inc.	(7,267)	28,684	65,991
Dividends on preferred stock	(7,656)	0	0
Net (loss) income attributable to Verint Systems Inc. for basic net (loss) income per common share	(14,923)	28,684	65,991
Dilutive effect of dividends on preferred stock	0	0	0
Net (loss) income attributable to Verint Systems Inc. for diluted net (loss) income per common share	$ (14,923)	$ 28,684	$ 65,991
Weighted-average shares outstanding:
Basic (in shares)	65,173,000	66,129,000	64,913,000
Dilutive effect of employee equity award plans (in shares)	0	1,226,000	1,332,000
Dilutive effect of 1.50% convertible senior notes (in shares)	0	0	0
Dilutive effect of warrants (in shares)	0	0	0
Dilutive effect of assumed conversion of preferred stock (in shares)	0	0	0
Diluted (in shares)	65,173,000	67,355,000	66,245,000
Net (loss) income per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ (0.23)	$ 0.43	$ 1.02
Diluted (in dollars per share)	$ (0.23)	$ 0.43	$ 1.00
1.50% convertible senior notes
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Coupon interest rate	1.50%			1.50%

NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC - ANTIDILUTIVE SECURITIES (Details) - shares shares in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock options and restricted stock-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, (in shares)	1,337	900	276
1.50% convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, (in shares)	6,002	6,205	6,205
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, (in shares)	6,205	6,205	6,205
Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, (in shares)	2,743	0	0

NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC - OTHER DETAILS (Details) - USD ($) $ / shares in Units, shares in Thousands	May 07, 2020	Dec. 04, 2019	Feb. 01, 2021	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jun. 18, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of warrants (in dollars per share)				$ 75.00	$ 75.00	$ 75.00
Warrants (in shares)			9,541	6,205
Subsequent Event
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exercise price of warrants (in dollars per share)			$ 47.18
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Sale of stock, consideration received on transaction		$ 400,000,000.0
Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000.0
1.50% convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Coupon interest rate				1.50%			1.50%
Conversion price (in dollars per share)				$ 64.46
1.50% convertible senior notes \| Subsequent Event
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion price (in dollars per share)			$ 40.55

CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents, cost basis	$ 663,843	$ 379,146	$ 369,975
Cash and cash equivalents, fair value	663,843	379,146
Maturities and sales of investments	120,900	59,300	$ 33,100
Bank time deposits
Debt Securities, Available-for-sale [Line Items]
Cost Basis	51,013	20,215
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	51,013	20,215
Total short-term investments
Debt Securities, Available-for-sale [Line Items]
Cost Basis	51,013	20,215
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	51,013	20,215
Cash and bank time deposits
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents, cost basis	321,753	379,057
Cash and cash equivalents, fair value	321,753	379,057
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents, cost basis	342,090	89
Cash and cash equivalents, fair value	$ 342,090	$ 89

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2020 (Details) $ in Thousands		12 Months Ended
	Dec. 18, 2019 business_combination	Jan. 31, 2021 USD ($) business_combination	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($)	Dec. 19, 2018 USD ($)
Business Acquisition
Number of businesses acquired \| business_combination	2	4
Payments to acquire businesses, net of cash acquired		$ 0	$ 74,096	$ 90,022
Number of business combinations, with potential additional cash payments to former shareholders \| business_combination		3
Goodwill		$ 1,485,590	1,469,211	1,417,481	$ 34,260
Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Total purchase prices		89,971
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		1,480
Business combination, contingent consideration, liability		23,500
Goodwill		51,041
Transaction and related costs, including integration costs		1,700	5,700
Customer Engagement
Business Acquisition
Goodwill		1,327,407	1,311,068	1,270,327
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		158,183	$ 158,143	$ 147,154
Cyber Intelligence \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Goodwill		$ 11,900

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2020 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Dec. 19, 2018
Business Acquisition
Goodwill	$ 1,485,590	$ 1,469,211	$ 1,417,481	$ 34,260
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	1,480
Total purchase prices	89,971
Accounts receivable	3,950
Other current assets, including cash acquired	14,511
Other assets	6,556
Current and other liabilities	(8,648)
Contract liabilities - current and long-term	(3,794)
Deferred income taxes	(4,061)
Net tangible assets	8,514
Identifiable intangible assets	30,416
Goodwill	51,041
Total purchase prices allocation	89,971
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 AND DIVESTITURES - YEAR ENDED JANUARY 31, 2020 - INTANGIBLE ASSETS USEFUL LIVES (Details)	12 Months Ended
	Jan. 31, 2021
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	10 years
Individually Insignificant Business Combinations Year Ended January 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 \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	3 years
Minimum \| Customer relationships \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	5 years
Minimum \| Developed technology \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	4 years
Minimum \| Trademarks and trade names \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	3 years
Maximum \| Customer relationships \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	9 years
Maximum \| Developed technology \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	5 years
Maximum \| Trademarks and trade names \| Individually Insignificant Business Combinations Year Ended January 31 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	5 years

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2019 - FORESEE (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 19, 2018	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Business Acquisition
Payments to acquire businesses, net of cash acquired		$ 0	$ 74,096	$ 90,022
Goodwill	$ 34,260	1,485,590	1,469,211	1,417,481
Total, before income taxes		16,223	53,303	77,762
Customer Engagement
Business Acquisition
Goodwill		1,327,407	1,311,068	1,270,327
Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Total purchase prices	65,163
Cash	58,901
Cash acquired from acquisition	400
Payments to acquire businesses, net of cash acquired	58,500
Deferred purchase price consideration	6,000
Other purchase price adjustments	262
Goodwill	34,300
Business acquisition, goodwill, expected tax deductible amount	1,100
Business acquisition, purchase price allocation, goodwill, tax not deductible amount	33,200
Contract liabilities - current and long-term	9,821
Intangible asset - undelivered performance obligations	10,200
Transaction and related costs, including integration costs		$ 2,100	$ 3,500	3,300
Total, before income taxes				$ 6,000
Customer Engagement \| ForeSee Results, Inc. \| Prepaid expenses and other current assets
Business Acquisition
Intangible asset - undelivered performance obligations	5,500
Customer Engagement \| ForeSee Results, Inc. \| Other Assets
Business Acquisition
Intangible asset - undelivered performance obligations	$ 4,700

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2019 - PURCHASE PRICE ALLOCATIONS OF FORESEE (Details) - USD ($) $ in Thousands	Dec. 19, 2018	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Business Acquisition
Goodwill	$ 34,260	$ 1,485,590	$ 1,469,211	$ 1,417,481
Customer Engagement
Business Acquisition
Goodwill		$ 1,327,407	$ 1,311,068	$ 1,270,327
Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Cash	58,901
Deferred purchase price consideration	6,000
Other purchase price adjustments	(262)
Total purchase prices	65,163
Accounts receivable	7,245
Other current assets, including cash acquired	8,101
Other assets	6,075
Current and other liabilities	(12,710)
Contract liabilities - current and long-term	(9,821)
Deferred income taxes	(10,687)
Net tangible assets	(11,797)
Identifiable intangible assets	42,700
Goodwill	34,300
Total purchase prices allocation	65,163
Customer relationships \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Identifiable intangible assets	19,400
Developed technology \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Identifiable intangible assets	20,000
Trademarks and trade names \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Identifiable intangible assets	$ 3,300

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 13, 2019 - INTANGIBLE ASSETS USEFUL LIVES (Details)		12 Months Ended
	Dec. 19, 2018	Jan. 31, 2021	Jan. 31, 2020
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)		10 years
Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years)			6 years 7 months 6 days
Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years)	6 years 1 month 6 days
Developed technology \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	4 years
Trademarks and trade names \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)			4 years
Trademarks and trade names \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	4 years
Minimum \| Customer relationships \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)			7 years
Minimum \| Customer relationships \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	5 years
Minimum \| Developed technology \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)			3 years
Maximum \| Customer relationships \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)			10 years
Maximum \| Customer relationships \| Customer Engagement \| ForeSee Results, Inc.
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)	9 years
Maximum \| Developed technology \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Estimated useful lives of finite-lived intangible assets (in years)			5 years

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2019 - OTHER BUSINESS COMBINATIONS (Details) $ in Thousands		12 Months Ended
	Dec. 18, 2019 business_combination	Jan. 31, 2021 USD ($) business_combination	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($) business_combination	Dec. 19, 2018 USD ($)
Business Acquisition
Number of businesses acquired \| business_combination	2	4
Goodwill		$ 1,485,590	$ 1,469,211	$ 1,417,481	$ 34,260
Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Number of businesses acquired \| business_combination				3
Noncontrolling equity investment			$ 2,200
Noncontrolling equity investment percentage			19.00%
Total purchase prices			$ 51,252
Cash			33,138
Business Acquisition Contingent Consideration Fair Value Disclosure			35,500
Fair value of contingent consideration			15,875
Fair value of previously held equity interest			2,239
Goodwill			25,145
Transaction and related costs, including integration costs			900	$ 900
Customer Engagement
Business Acquisition
Goodwill		1,327,407	1,311,068	1,270,327
Customer Engagement \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Goodwill			14,300
Cyber Intelligence
Business Acquisition
Goodwill		$ 158,183	158,143	$ 147,154
Cyber Intelligence \| Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Goodwill			$ 10,800

BUSINESS COMBINATIONS AND DIVESTITURES - YEAR ENDED JANUARY 31, 2019 - OTHER BUSINESS COMBINATIONS PURCHASE PRICE ALLOCATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2019	Dec. 19, 2018
Business Acquisition
Goodwill	$ 1,469,211	$ 1,485,590	$ 1,417,481	$ 34,260
Individually Insignificant Business Combinations - Year Ended January 31, 2019
Business Acquisition
Cash	33,138
Fair value of contingent consideration	15,875
Fair value of previously held equity interest	2,239
Total purchase prices	51,252
Accounts receivable	1,897
Other current assets, including cash acquired	6,901
Other assets	9,432
Current and other liabilities	(2,151)
Contract liabilities - current and long-term	(771)
Deferred income taxes	(7,914)
Net tangible assets	7,394
Identifiable intangible assets	18,713
Goodwill	25,145
Total purchase prices allocation	51,252
Individually Insignificant Business Combinations - Year Ended January 31, 2019 \| Customer relationships
Business Acquisition
Identifiable intangible assets	7,521
Individually Insignificant Business Combinations - Year Ended January 31, 2019 \| Developed technology
Business Acquisition
Identifiable intangible assets	10,692
Individually Insignificant Business Combinations - Year Ended January 31, 2019 \| Trademarks and trade names
Business Acquisition
Identifiable intangible assets	$ 500

BUSINESS COMBINATIONS AND DIVESTITURES - OTHER BUSINESS COMBINATION INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Business Acquisition
Change in fair values, recorded in other (expense) income, net	$ (4.5)	$ (0.5)	$ (3.6)
Payments of contingent consideration	(20.1)	$ (33.1)	$ (13.6)
Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	18.6
Accrued expenses and other current liabilities \| Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	12.5
Other liabilities \| Recurring \| Level 3
Business Acquisition
Business combination, contingent consideration, liability	$ 6.1

BUSINESS COMBINATIONS AND DIVESTITURES - DIVESTITURE (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2020	Jan. 31, 2021
Business Combinations [Abstract]
Sale of business agreement terms, period following transaction closing date	36 months
Goodwill, written off related to sale of business unit		$ 1.1
Definite-lived intangible assets, written off related to sale of business unit		1.9
Proceeds from divestiture of businesses		$ 2.2

INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 782,056	$ 778,675
Finite-Lived Intangible Assets, Accumulated Amortization	(633,013)	(580,911)
Finite-Lived Intangible Assets, Net	149,043
Intangible assets, net	149,043	197,764
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	469,423	465,130
Finite-Lived Intangible Assets, Accumulated Amortization	(358,824)	(328,069)
Finite-Lived Intangible Assets, Net	110,599	137,061
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	296,311	294,841
Finite-Lived Intangible Assets, Accumulated Amortization	(262,035)	(241,585)
Finite-Lived Intangible Assets, Net	34,276	53,256
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	10,575	12,957
Finite-Lived Intangible Assets, Accumulated Amortization	(7,230)	(6,783)
Finite-Lived Intangible Assets, Net	3,345	6,174
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	4,440	4,440
Finite-Lived Intangible Assets, Accumulated Amortization	(4,440)	(4,440)
Finite-Lived Intangible Assets, Net	0	0
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,307	1,307
Finite-Lived Intangible Assets, Accumulated Amortization	(484)	(34)
Finite-Lived Intangible Assets, Net	$ 823	$ 1,273

INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS BY REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 149,043	$ 197,764
Customer Engagement
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	143,744	189,896
Cyber Intelligence
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 5,299	$ 7,868

INTANGIBLE ASSETS AND GOODWILL - AMORTIZATION AND IMPAIRMENT (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived			$ 0
Amortization of acquired intangible assets	$ 49,900,000	$ 55,400,000	$ 56,400,000
Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived	500,000	500,000
Trade names
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived	$ 100,000	$ 100,000

INTANGIBLE ASSETS AND GOODWILL - FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) $ in Thousands	Jan. 31, 2021 USD ($)
Intangible Assets - Future Amortization [Abstract]
2022	$ 46,846
2023	38,806
2024	28,728
2025	11,987
2026	10,111
Thereafter	12,565
Finite-Lived Intangible Assets, Net	$ 149,043

INTANGIBLE ASSETS AND GOODWILL - GOODWILL (Details)	12 Months Ended
INTANGIBLE ASSETS AND GOODWILL - GOODWILL (Details)	Jan. 31, 2021 USD ($) reportingUnit	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($)
Goodwill activity
Goodwill, gross at the beginning of the period	$ 1,552,455,000	$ 1,536,076,000	$ 1,484,346,000
Accumulated impairment losses	(66,865,000)	(66,865,000)	(66,865,000)
Goodwill, net at the beginning of the period	1,469,211,000	1,417,481,000
Business combinations, including adjustments to prior period acquisitions	300,000	51,301,000
Foreign currency translation and other	16,079,000	429,000
Goodwill, net, at the end of the period	$ 1,485,590,000	1,469,211,000	1,417,481,000
Goodwill Impairments
Number of reporting units \| reportingUnit	3
Impairments of goodwill	$ 0	0	0
Customer Engagement
Goodwill activity
Goodwill, gross at the beginning of the period	1,383,450,000	1,367,111,000	1,326,370,000
Accumulated impairment losses	(56,043,000)	(56,043,000)	(56,043,000)
Goodwill, net at the beginning of the period	1,311,068,000	1,270,327,000
Business combinations, including adjustments to prior period acquisitions	0	39,704,000
Foreign currency translation and other	16,339,000	1,037,000
Goodwill, net, at the end of the period	1,327,407,000	1,311,068,000	1,270,327,000
Cyber Intelligence
Goodwill activity
Goodwill, gross at the beginning of the period	169,005,000	168,965,000	157,976,000
Accumulated impairment losses	(10,822,000)	(10,822,000)	(10,822,000)
Goodwill, net at the beginning of the period	158,143,000	147,154,000
Business combinations, including adjustments to prior period acquisitions	300,000	11,597,000
Foreign currency translation and other	(260,000)	(608,000)
Goodwill, net, at the end of the period	$ 158,183,000	$ 158,143,000	$ 147,154,000

LONG-TERM DEBT - SUMMARY OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jun. 29, 2017
Debt Instrument [Line Items]
Less: Unamortized debt discounts and issuance costs	$ (7,518)	$ (22,327)
Total debt	789,494	837,048
Less: current maturities	386,713	4,250
Long-term debt	402,781	832,798
1.50% convertible senior notes
Debt Instrument [Line Items]
Long-term debt, gross	386,887	400,000
June 2017 Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	410,125	414,375	$ 425,000
Borrowings under 2017 Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 0	$ 45,000

LONG-TERM DEBT - 1.50% CONVERTIBLE SENIOR NOTES (Details) $ / shares in Units, shares in Thousands				12 Months Ended
	Feb. 01, 2021 USD ($) $ / shares shares	Jul. 31, 2020 USD ($)	Jun. 18, 2014 USD ($) shares	Jan. 31, 2021 USD ($) $ / shares shares	Feb. 26, 2021 USD ($)	Jan. 31, 2020 USD ($)	Jan. 31, 2019
Debt Instrument [Line Items]
Equity component of currently redeemable convertible notes				$ 4,841,000		$ 0
Temporary equity reclassification				$ 4,841,000
1.50% convertible senior notes
Debt Instrument [Line Items]
Coupon interest rate			1.50%	1.50%
Debt principal amount			$ 400,000,000.0
Proceeds from issuance of convertible notes, net of issuance costs			$ 391,900,000
Common stock issued (in shares) \| shares			5,750
Conversion rate				15.5129
Principal amount for conversion rate				$ 1,000
Conversion price (in dollars per share) \| $ / shares				$ 64.46
Number of shares issued upon debt conversion \| shares				6,002
If-converted value greater than aggregate principal amount				$ 56,200,000
Carrying value of debt component			$ 319,900,000
Equity component of currently redeemable convertible notes			$ 80,100,000	78,000,000.0
Assumed non-convertible borrowing rate			5.00%
Debt component of convertible note issuance costs			$ 7,600,000
Adjustments to additional paid in capital, stock issued, issuance costs			$ 1,900,000
Repurchased amount in cash		$ 13,100,000
Principal amount - repurchased notes		13,000,000.0
Loss on early retirement of debt		$ 100,000
Reduction on repurchase				200,000
1.50% convertible notes - carrying value of debt component				382,000,000.0
Unamortized debt discount				4,400,000
Unamortized debt issuance expense				$ 400,000
Effective interest rate (as a percent)				5.31%		5.29%	5.29%
1.50% convertible senior notes \| Subsequent Event
Debt Instrument [Line Items]
Escrow deposit					$ 390,000,000.0
Conversion rate	24.6622
Principal amount for conversion rate	$ 1,000
Conversion price (in dollars per share) \| $ / shares	$ 40.55
Number of shares issued upon debt conversion \| shares	9,541

LONG-TERM DEBT - NOTE HEDGES AND WARRANTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions			12 Months Ended
	Feb. 01, 2021	Jun. 18, 2014	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share)			$ 75.00	$ 75.00	$ 75.00
Option indexed to issuer's equity (in shares)			6,205
Note Hedges - Strike Price (in dollars per share)			$ 64.46
Payments for convertible note hedges		$ 60.8
Warrants (in shares)	9,541		6,205
Proceeds from issuance of warrants			$ 45.2
Subsequent Event
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share)	$ 47.18
Option indexed to issuer's equity (in shares)	9,541
Note Hedges - Strike Price (in dollars per share)	$ 40.55

LONG-TERM DEBT - 2017 CREDIT AGREEMENT - SUMMARY (Details)		3 Months Ended	12 Months Ended
	Jul. 31, 2020 USD ($)	Oct. 31, 2020 USD ($)	Jan. 31, 2021 USD ($)	Jan. 31, 2018 USD ($)	Feb. 26, 2021 USD ($)	Jan. 31, 2020 USD ($)	Jun. 29, 2017 USD ($)
2017 Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 725,000,000.0
June 2017 Term Loan
Debt Instrument [Line Items]
Long-term debt, gross			$ 410,125,000			$ 414,375,000	425,000,000.0
Unamortized debt discount							500,000
Loss on early retirement of debt				$ 200,000
Required quarterly principal payment			1,100,000
Borrowings under 2017 Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 300,000,000.0
Long-term debt, gross			$ 0			45,000,000
Repayments of lines of credit		$ 200,000,000.0
Consolidated total debt to consolidated EBITDA ratio			4.50
1.50% convertible senior notes
Debt Instrument [Line Items]
Long-term debt, gross			$ 386,887,000			$ 400,000,000
Unamortized debt discount			$ 4,400,000
Loss on early retirement of debt	$ 100,000
1.50% convertible senior notes \| Subsequent Event
Debt Instrument [Line Items]
Escrow deposit					$ 390,000,000.0

LONG-TERM DEBT - 2017 CREDIT AGREEMENT - INTEREST RATE DETAILS (Details)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Borrowings under 2017 Revolving Credit Facility
Debt Instrument [Line Items]
Coupon interest rate		3.41%
June 2017 Term Loan
Debt Instrument [Line Items]
Coupon interest rate	2.14%	3.85%
Effective interest rate (as a percent)	2.34%
Variable Rate Based on Eurodollar Rate \| 2017 Credit Agreement \| Eurodollar loans
Debt Instrument [Line Items]
Variable rate basis	Eurodollar Rate
Variable Rate Based on Eurodollar Rate \| June 2017 Term Loan \| Eurodollar loans
Debt Instrument [Line Items]
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 [Line Items]
Interest rate margin (as a percent)	2.00%
Variable Rate Based on ABR Rate \| 2017 Credit Agreement \| ABR Rate Loans
Debt Instrument [Line Items]
Variable rate basis	ABR rate
Variable Rate Based on ABR Rate \| June 2017 Term Loan \| ABR Rate Loans
Debt Instrument [Line Items]
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 [Line Items]
Interest rate margin (as a percent)	1.00%

LONG-TERM DEBT - 2017 CREDIT AGREEMENT ISSUANCE COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Debt Instrument [Line Items]
Payments of debt issuance costs	$ 2,287	$ 212	$ 206
2017 Credit Agreement
Debt Instrument [Line Items]
Payments of debt issuance costs	6,800
Debt restructuring costs incurred during period	2,100
Payments of debt restructuring costs	1,200
Deferred debt restructuring costs	900
June 2017 Term Loan
Debt Instrument [Line Items]
Payments of debt issuance costs	4,100
Loss on early retirement of debt				$ 200
Deferred debt restructuring costs	500
Borrowings under 2017 Revolving Credit Facility
Debt Instrument [Line Items]
Payments of debt issuance costs	2,700
Deferred debt restructuring costs	$ 400

LONG-TERM DEBT - FUTURE AMORTIZATION (Details) - June 2017 Term Loan - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jun. 29, 2017
Debt Instrument [Line Items]
2022	$ 4,250
2023	4,250
2024	4,250
2025	397,375
Total	$ 410,125	$ 414,375	$ 425,000

LONG-TERM DEBT - INTEREST EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jun. 18, 2014
1.50% convertible senior notes
Debt Instrument [Line Items]
Coupon interest rate	1.50%			1.50%
Interest expense at coupon or contractual rate	$ 5,887	$ 6,000	$ 6,000
Amortization of debt discounts	12,884	12,490	11,850
Amortization of deferred debt issuance costs	1,215	1,177	1,118
Total interest expense	19,986	19,667	18,968
Credit Agreements
Debt Instrument [Line Items]
Interest expense at coupon or contractual rate	13,018	18,021	17,741
Impact of interest rate swap agreement	4,368	792	0
Amortization of debt discounts	74	68	67
Amortization of deferred debt issuance costs	1,811	1,569	1,554
Total interest expense	$ 19,271	$ 20,450	$ 19,362

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Inventories
Raw materials	$ 10,289	$ 9,628
Work-in-process	5,186	4,749
Finished goods	4,608	6,118
Total inventories	20,083	20,495
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	277,610	299,091
Less: accumulated depreciation and amortization	(171,368)	(182,980)
Total property and equipment, net	106,242	116,111
Depreciation [Abstract]
Depreciation expense	39,900	28,500	$ 25,500
Other Assets [Abstract]
Deferred commissions	50,838	37,263
Capitalized software development costs, net	30,564	27,030	13,342	$ 9,228
Long-term contract assets, net	18,429	1,358
Long-term restricted cash and time deposits	15,712	26,362
Long-term deferred cost of revenue	8,276	6,345
Deferred debt issuance costs, net	1,449	2,005
Long-term security deposits	1,960	1,920
Other	12,072	15,680
Total other assets	139,300	117,963
Accounts Payable and Accrued Liabilities, Current [Abstract]
Compensation and benefits	122,722	100,225
Fair value of future tranche right	52,772	0
Taxes other than income taxes	24,323	18,642
Operating lease obligations - current portion	$ 20,936	$ 22,656
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Contingent consideration - current portion	$ 12,518	$ 22,859
Income taxes	5,789	15,084
Distributor and agent commissions	12,422	10,097
Professional and consulting fees	6,161	4,367
Other	54,063	35,768
Total accrued expenses and other current liabilities	311,706	229,698
Other Liabilities [Abstract]
Unrecognized tax benefits, including interest and penalties	21,284	22,355
Derivative financial instruments - long-term portion	13,565	11,441
Contingent consideration - long-term portion	6,109	20,017
Finance lease liability, noncurrent	2,969	7,210
Obligations for severance compensation	2,273	2,627
Other	5,441	3,505
Total other liabilities	51,641	67,155
Other income (expense), net:
Foreign currency gains (losses), net	98	(56)	(5,519)
(Losses) gains on derivative financial instruments, net	(1,362)	599	2,511
Change in fair value of future tranche right	(56,146)	0	0
Other, net	2,095	(338)	(898)
Total other (expense) income, net	(55,315)	205	(3,906)
Supplemental information regarding consolidated cash flows
Cash paid for interest	24,650	23,232	22,258
Cash payments of income taxes, net	22,842	15,391	26,887
Non-cash investing and financing transactions:
Liabilities for contingent consideration in business combinations	0	15,253	15,944
Series A Preferred Stock dividends declared	5,200	0	0
Finance leases of property and equipment	903	6,404	1,137
Accrued but unpaid purchases of property and equipment	5,651	4,362	3,376
Accrued but unpaid purchases of treasury stock	0	2,846	0
Leasehold improvements funded by lease incentives	119	2,604	1,397
Inventory transfers to property and equipment	894	825	1,699
Contingent receivable in exchange for sale of subsidiary	0	738	$ 0
Land and buildings
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	10,978	10,754
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	35,907	35,463
Software
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	40,152	53,606
Equipment, furniture, and other
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	$ 190,573	$ 199,268

CONVERTIBLE PREFERRED STOCK - ADDITIONAL INFORMATION (Details) - USD ($)			3 Months Ended
	May 07, 2020	Dec. 04, 2019	Apr. 30, 2021	Feb. 01, 2021
Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 400,000,000.0
Series A Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000.0
Series A Preferred Stock \| Series A Private Placement
Subsidiary, Sale of 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
Sale of stock, price per share (in dollars per share)	$ 1,000
Payments of stock issuance costs	$ 2,700,000
Series B Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000.0
Series B Preferred Stock \| Series B Private Placement \| Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share (in dollars per share)				$ 1,000
Series B Preferred Stock \| Series B Private Placement \| Forecast
Subsidiary, Sale of 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

CONVERTIBLE PREFERRED STOCK - VOTING RIGHTS AND DIVIDENDS AND LIQUIDATION RIGHTS (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	May 07, 2020	Dec. 04, 2019	Jan. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Accrued dividends			$ 5,200
Preferred stock dividends			6,789
Series A Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Voting rights, percent		19.90%
Preferred stock, liquidation preference (in dollars per share)	$ 1,000
Preferred stock, dividend payment terms, period	48 months
Dividend preferred stock, declared			6,800
Dividends declared and paid			1,600
Dividends, preferred stock, unpaid and undeclared			900
Preferred stock dividends			$ 7,700
Series A Preferred Stock \| Dividend for the first 48-month anniversary of closing date
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	5.20%
Series A Preferred Stock \| Dividend after the first 48-month anniversary of closing date
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	4.00%
Series A Preferred Stock \| Dividend increase term in event
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	6.00%
Series A Preferred Stock \| Minimum
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate, increase percentage each year	1.00%
Series A Preferred Stock \| Maximum
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	10.00%

CONVERTIBLE PREFERRED STOCK - CONVERSION AND FUTUER TRANCHE RIGHT (Details) - USD ($)				3 Months Ended	12 Months Ended
	Feb. 01, 2021	May 07, 2020	Dec. 04, 2019	Apr. 30, 2021	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Class of Stock [Line Items]
Shares issued upon conversion (in shares)					5,500,000
Preferred stock, liquidation preference value					$ 200,000,000.0
Future tranche right, fair value disclosure		$ 3,400,000
Future tranche right, liability, fair value disclosure					52,800,000
Total temporary equity					205,469,000	$ 0
Change in fair value of future tranche right					$ 56,146,000	$ 0	$ 0
Apax Investment
Class of Stock [Line Items]
Common stock, disposition term, number of months anniversary of consummation of spin-off		12 months
Common stock, disposition term, number of months anniversary of closing date		24 months
Verint \| Apax Investment
Class of Stock [Line Items]
Ownership percentage					7.50%
Verint \| Apax Investment \| Forecast \| Minimum
Class of Stock [Line Items]
Ownership percentage				12.00%
Verint \| Apax Investment \| Forecast \| Maximum
Class of Stock [Line Items]
Ownership percentage				13.00%
Series A Preferred Stock
Class of Stock [Line Items]
Conversion price (in dollars per share)					$ 53.50
Conversion premium					17.10%
Common stock, consecutive trading days		45 days
Sale of stock, consideration received on transaction		$ 200,000,000.0
Shares issued upon conversion (in shares)					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
Convertible preferred stock, threshold percentage of conversion trigger		175.00%
Convertible preferred stock, period following closing date for redemption		72 months
Convertible preferred stock, redemption price as percentage of liquidation preference		100.00%
Convertible preferred stock, redemption term, internal rate of return earned by shareholders		8.00%
Convertible preferred stock, redemption term		102 months
Dividends, preferred stock, unpaid and undeclared					$ 900,000
Cumulative unpaid dividends					$ 6,100,000
Total temporary equity		$ 203,400,000
Series A Preferred Stock \| Subsequent Event
Class of Stock [Line Items]
Conversion price (in dollars per share)	$ 36.38
Series A Preferred Stock \| Apax Investment
Class of Stock [Line Items]
Convertible preferred stock, disposition term, number of months anniversary of closing date		36 months
Convertible preferred stock, disposition term, number of months anniversary of consummation of spin-off		24 months
Series B Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 200,000,000.0
Series B Preferred Stock \| Forecast
Class of Stock [Line Items]
Conversion price (in dollars per share)				$ 50.25
Conversion price, trading days				20 days
Series B Preferred Stock \| Forecast \| Series B Private Placement
Class of 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

STOCKHOLDERS' EQUITY - DIVIDENDS ON COMMON STOCK (Details) - USD ($)		12 Months Ended
	Feb. 01, 2021	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Class of Stock [Line Items]
Dividends on common stock		$ 0	$ 0	$ 0
Common stock, par value (in dollars per share)		$ 0.001
Subsequent Event
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.001
Spin-off transaction, number of shares received (in shares)	1

STOCKHOLDERS' EQUITY - STOCK REPURCHASE PROGRAM (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Mar. 31, 2021	Dec. 04, 2019
Class of Stock [Line Items]
Stock repurchase program, authorized amount					$ 300,000,000.0
Treasury stock acquired	$ 33,990,000	$ 116,536,000	$ 173,000
Subsequent Event
Class of Stock [Line Items]
Stock repurchase program, available cash percentage of free cash flow during period				60.00%
Apax Investment
Class of Stock [Line Items]
Treasury stock acquired	$ 34,000,000.0	$ 116,100,000

STOCKHOLDERS' EQUITY - TREASURY STOCK (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Class of Stock [Line Items]
Treasury stock, at cost (in shares)	4,404	3,791
Treasury stock acquired	$ 208,124	$ 174,134
Treasury shares acquired (in shares)	613	2,126	4
Cost of treasury stock acquired	$ 33,990	$ 116,536	$ 173
Apax Investment
Class of Stock [Line Items]
Cost of treasury stock acquired	$ 34,000	$ 116,100

STOCKHOLDERS' EQUITY - ISSUANCE OF CONVERTIBLE PREFERRED STOCK (Details) - USD ($)			3 Months Ended
	May 07, 2020	Dec. 04, 2019	Apr. 30, 2021
Convertible Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 400,000,000.0
Series A Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000.0
Series B Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000.0
Series B Preferred Stock \| Forecast \| Series B Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 200,000,000.0

STOCKHOLDERS' EQUITY - SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Class of Stock [Line Items]
Beginning balance	$ (151,865)
Ending balance	(136,878)	$ (151,865)
Foreign Currency Translation Adjustments
Class of Stock [Line Items]
Beginning balance	(141,963)	(141,201)
Other comprehensive income (loss) before reclassifications	17,482	(762)
Amounts reclassified out of accumulated other comprehensive income (loss)	0	0
Net other comprehensive income (loss)	17,482	(762)
Ending balance	(124,481)	(141,963)
AOCI Attributable to Parent
Class of Stock [Line Items]
Beginning balance	(151,865)	(145,225)
Other comprehensive income (loss) before reclassifications	13,435	(6,849)
Amounts reclassified out of accumulated other comprehensive income (loss)	(1,552)	(209)
Net other comprehensive income (loss)	14,987	(6,640)
Ending balance	(136,878)	(151,865)
Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges \| Unrealized gains (losses) on derivative financial instruments designated as hedges
Class of Stock [Line Items]
Beginning balance	626	(981)
Other comprehensive income (loss) before reclassifications	1,869	2,015
Amounts reclassified out of accumulated other comprehensive income (loss)	1,861	408
Net other comprehensive income (loss)	8	1,607
Ending balance	634	626
Unrealized Gain on Interest Rate Swap Designated as Hedge \| Unrealized gains (losses) on derivative financial instruments designated as hedges
Class of Stock [Line Items]
Beginning balance	(10,528)	(3,043)
Other comprehensive income (loss) before reclassifications	(5,916)	(8,102)
Amounts reclassified out of accumulated other comprehensive income (loss)	(3,413)	(617)
Net other comprehensive income (loss)	(2,503)	(7,485)
Ending balance	$ (13,031)	$ (10,528)

STOCKHOLDERS' EQUITY - AMOUNTS RECLASSIFIED OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Class of Stock [Line Items]
Research and development, net	$ (240,169)	$ (231,683)	$ (209,106)
Selling, general and administrative	(478,242)	(488,871)	(426,183)
Interest Expense	(39,975)	(40,378)	(37,344)
Total, before income taxes	16,223	53,303	77,762
(Provision) benefit for income taxes	(16,330)	(17,620)	(7,542)
Net (loss) income	(107)	35,683	70,220
Product
Class of Stock [Line Items]
Cost of revenue	(96,161)	(127,183)	(129,922)
Service and support
Class of Stock [Line Items]
Cost of revenue	(300,528)	(312,599)	(293,888)
Foreign currency forward contracts \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Research and development, net	1,009	250	(2,138)
Selling, general and administrative	733	128	(1,343)
Total, before income taxes	2,149	453	(4,219)
(Provision) benefit for income taxes	(288)	(45)	429
Net (loss) income	1,861	408	(3,790)
Foreign currency forward contracts \| Product \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	109	11	(350)
Foreign currency forward contracts \| Service and support \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	298	64	(388)
Interest rate swap agreement \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Interest Expense	(4,367)	(792)	0
Total, before income taxes	(4,367)	(792)	0
(Provision) benefit for income taxes	954	175	0
Net (loss) income	$ (3,413)	$ (617)	$ 0

RESEARCH AND DEVELOPMENT, NET - R&D EXPENSES AND GRANTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Research and Development Expense [Abstract]
Gross research and development expenses	$ 240,700	$ 233,100	$ 211,000
Reimbursements from the IIA and other government grant programs	500	1,400	1,900
Capitalized computer software, impairments	$ 2,373	$ 0	$ 0

RESEARCH AND DEVELOPMENT, NET - CAPITALIZED SOFTWARE DEVELOPMENT COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Movement in Capitalized Computer Software, Net [Roll Forward]
Beginning of the period	$ 27,030	$ 13,342	$ 9,228
Software development costs capitalized during the year	12,444	17,222	7,320
Amortization of capitalized software development costs	(6,375)	(3,561)	(3,101)
Write-offs of capitalized software development costs	(2,373)	0	0
Foreign currency translation and other	(162)	27	(105)
End of the period	$ 30,564	$ 27,030	$ 13,342

INCOME TAXES - INCOME BEFORE TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]
Domestic	$ (73,452)	$ (49,703)	$ (12,927)
Foreign	89,675	103,006	90,689
Total income before provision for income taxes	$ 16,223	$ 53,303	$ 77,762

INCOME TAXES - PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Current provision (benefit) for income taxes:
Federal	$ (2,006)	$ 8,683	$ (1,582)
State	980	1,033	2,299
Foreign	21,091	5,759	9,842
Total current provision for income taxes	20,065	15,475	10,559
Deferred (benefit) provision for income taxes:
Federal	384	(4,096)	(4,099)
State	(417)	948	(2,687)
Foreign	(3,702)	5,293	3,769
Total deferred (benefit) provision for income taxes	(3,735)	2,145	(3,017)
Total provision for income taxes	$ 16,330	$ 17,620	$ 7,542

INCOME TAXES - EFFECTIVE TAX RATE RECONCILIATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Income tax provision at the U.S. federal statutory rate	$ 3,407	$ 11,193	$ 16,330
State income tax provision	1,258	230	3,968
Foreign tax rate differential	(625)	11,700	9,516
Tax incentives	(1,514)	(8,395)	(7,377)
Valuation allowances	(3,807)	1,607	(24,099)
Stock-based and other compensation	2,474	(2,143)	678
Non-deductible expenses	(322)	2,752	(412)
Tax credits	875	260	(265)
Tax contingencies	(2,539)	(11,550)	(3,035)
Change in fair value of future tranche right	11,791	0	0
U.S. tax effects of foreign operations	4,536	11,963	11,559
Other, net	796	3	679
Total provision for income taxes	$ 16,330	$ 17,620	$ 7,542
Effective income tax rate	100.70%	33.10%	9.70%

INCOME TAXES - SPECIAL TAX RATES (Details)	12 Months Ended
INCOME TAXES - SPECIAL TAX RATES (Details)	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Cyprus
Income Tax Contingency [Line Items]
Effective income tax rate decrease due to tax incentive	2.80%	10.10%	9.00%

INCOME TAXES - DEFERRED INCOME TAXES (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Components of Deferred Tax Assets [Abstract]
Accrued expenses	$ 5,772	$ 3,979
Operating lease liabilities	11,402	15,716
Fair value of derivatives	4,149	3,332
Loss carryforwards	24,575	30,063
Tax credits	5,946	7,021
Stock-based and other compensation	14,171	14,087
Other, net	0	18
Total deferred tax assets	66,015	74,216
Deferred tax liabilities:
Deferred cost of revenue	(8,931)	(7,588)
Goodwill and other intangible assets	(30,751)	(36,989)
Unremitted earnings of foreign subsidiaries	(14,882)	(12,257)
Operating lease right-of-use assets	(8,864)	(12,401)
Other, net	(2,093)	(4,674)
Total deferred tax liabilities	(65,521)	(73,909)
Valuation allowance	(22,981)	(26,334)
Net deferred tax liabilities	(22,487)	(26,027)
Recorded as:
Deferred tax assets	14,489	13,802
Deferred tax liabilities	(36,976)	(39,829)
Net deferred tax liabilities	$ (22,487)	$ (26,027)

INCOME TAXES - DEFERRED INCOME TAX INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Income Tax Contingency [Line Items]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Reduction in Deferred Tax Asset Valuation Allowance	$ (3,807)	$ 1,607	$ (24,099)

INCOME TAXES - CARRYFORWARDS (Details) $ in Millions	Jan. 31, 2021 USD ($)
Operating Loss Carryforwards [Line Items]
Tax credit carryforward, amount	$ 10.0
Tax credit carryforward amount indefinite carryforward	3.6
Tax credit carryforward amount subject to expiration	6.4
Internal Revenue Service (IRS)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	312.1
State and Local Jurisdictions
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	175.1
Foreign Countries
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	84.9
Operating loss carry forwards subject to expiration	$ 8.6

INCOME TAXES - FOREIGN WITHHOLDING TAXES (Details) $ in Millions	12 Months Ended
	Jan. 31, 2021 USD ($)
Impact of 2017 Tax Act
Income Tax Contingency [Line Items]
Provisional deferred income taxes	$ 16.2

INCOME TAXES - VALUATION ALLOWANCES (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Recorded valuation allowance
Balance at beginning of year	$ (26,334)	$ (24,526)
Adjustments to Valuation Allowances	(454)	(201)
Balance at end of year	(22,981)	(26,334)
Income tax benefit (provision)
Recorded valuation allowance
Adjustments to Valuation Allowances	$ 3,807	$ (1,607)

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Changes in the balance of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 91,279	$ 109,066	$ 115,709
Increases related to tax positions taken during the current year	3,445	2,464	8,843
Increases as a result of business combinations	0	286	1,032
Increases related to tax positions taken during prior years	19	147	10,305
Increases (decreases) related to foreign currency exchange rates	395	1,373	(2,253)
Reductions for tax positions of prior years	(445)	(17,388)	(23,415)
Reductions for settlements with tax authorities	0	(4,370)	(1,054)
Lapses of statutes of limitations	(1,414)	(299)	(101)
Gross unrecognized tax benefits, end of year	$ 93,279	$ 91,279	$ 109,066

INCOME TAXES - UNRECOGNIZED TAX BENEFITS - INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 93,279	$ 91,279	$ 109,066	$ 115,709
Unrecognized tax benefits, income tax penalties and interest expense	600	1,900	$ 700
Unrecognized tax benefits, income tax penalties and interest accrued	3,400	$ 2,900
Decrease in unrecognized tax benefits is reasonably possible	$ 1,700

FAIR VALUE MEASUREMENTS - FAIR VALUE TABLE (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Assets:
Money market funds	$ 663,843	$ 379,146
Liabilities:
Future tranche right	52,800
Recurring \| Level 1
Assets:
Money market funds	342,090	89
Foreign currency forward contracts	0	0
Contingent consideration receivable, fair value	0	0
Total assets	342,090	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	1,134	812
Contingent consideration receivable, fair value	0	0
Total assets	1,134	812
Liabilities:
Foreign currency forward contracts	726	132
Interest rate swap agreement	17,881	13,501
Future tranche right	0
Contingent consideration - business combinations	0	0
Option to acquire noncontrolling interests of consolidated subsidiaries	0	0
Total liabilities	18,607	13,633
Recurring \| Level 3
Assets:
Money market funds	0	0
Foreign currency forward contracts	0	0
Contingent consideration receivable, fair value	565	738
Total assets	565	738
Liabilities:
Foreign currency forward contracts	0	0
Interest rate swap agreement	0	0
Future tranche right	52,772
Contingent consideration - business combinations	18,627	42,875
Option to acquire noncontrolling interests of consolidated subsidiaries	3,250	2,900
Total liabilities	$ 74,649	$ 45,775

FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Details) $ in Thousands		1 Months Ended	3 Months Ended	12 Months Ended
	May 07, 2020 shares	Jan. 31, 2020 USD ($)	Apr. 30, 2021 shares	Jan. 31, 2021 USD ($)	Jan. 31, 2017 subsidiary
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration, measurement period		36 months
Number of majority owned subsidiaries acquired \| subsidiary					2
Noncontrollling equity investment in privately-held companies without readily determinable fair values		$ 3,800		$ 6,700
Noncontrollling equity investment in privately-held companies without readily determinable fair values, remeasured to fair value				4,000
Unrealized gain on noncontrolling equity investment				3,200
Realized gain on partial sale of equity investment				$ 600
Option to acquire noncontrolling interests
Assets and Liabilities Measured at Fair Value on Recurring Basis
Rights outstanding, measurement input		0.090		0.085
Measurement Input, Discount Rate
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration, liability, measurement input				0.030
Contingent consideration, asset, measurement input				0.037
Minimum \| Measurement Input, Discount Rate
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration, liability, measurement input		0.021		0.004
Contingent consideration, asset, measurement input		0.043		0.033
Maximum \| Measurement Input, Discount Rate
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration, liability, measurement input		0.049		0.038
Contingent consideration, asset, measurement input		0.049		0.040
Level 3 \| Term loans
Assets and Liabilities Measured at Fair Value on Recurring Basis
Long-term debt		$ 417,000		$ 409,000
Level 3 \| Borrowings under 2017 Revolving Credit Facility
Assets and Liabilities Measured at Fair Value on Recurring Basis
Long-term debt		45,000
Level 3 \| Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration receivable, fair value		738		565
Contingent consideration received				100
Level 2
Assets and Liabilities Measured at Fair Value on Recurring Basis
Fair value of term loans		438,000		440,000
Level 2 \| Recurring
Assets and Liabilities Measured at Fair Value on Recurring Basis
Contingent consideration receivable, fair value		$ 0		$ 0
Series A Preferred Stock \| Series A Private Placement
Assets and Liabilities Measured at Fair Value on Recurring Basis
Sale of stock, number of shares issued (in shares) \| shares	200,000
Series B Preferred Stock \| Series B Private Placement \| Forecast
Assets and Liabilities Measured at Fair Value on Recurring Basis
Sale of stock, number of shares issued (in shares) \| shares			200,000

FAIR VALUE MEASUREMENTS - CHANGES IN FAIR VALUE OF FUTURE TRANCHE RIGHT (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Change in fair values, recorded in other (expense) income, net	$ (4,500)	$ (500)	$ (3,600)
Future tranche right
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement, beginning of year	0
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	56,146
Fair value measurement, end of year	$ (52,772)	$ 0

FAIR VALUE MEASUREMENTS - CONTINGENT CONSIDERATION TABLE (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 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	$ (4,500)	$ (500)	$ (3,600)
Payments of contingent consideration	(20,100)	(33,100)	(13,600)
Liability for contingent consideration
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement, beginning of year	42,875	61,340
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments	0	15,253
Changes in fair values, recorded in operating expenses	(4,471)	(531)
Payments of contingent consideration	(20,103)	(33,088)
Foreign currency translation and other	326	(99)
Fair value measurement, end of year	$ 18,627	$ 42,875	$ 61,340

FAIR VALUE MEASUREMENTS - OPTION TO ACQUIRE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 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	$ (4,500)	$ (500)	$ (3,600)
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, beginning of year	2,900	3,000
Changes in fair values, recorded in operating expenses	350	(100)
Fair value measurement, end of year	$ 3,250	$ 2,900	$ 3,000

FAIR VALUE MEASUREMENTS - FAIR VALUE INPUTS AND ASSUMPTIONS (Details) - Level 3 - Recurring - Future tranche right	Jan. 31, 2021	May 07, 2020
Risk-free interest rate for preferred stock
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.0186	0.0131
Implied credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.0678	0.1078
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	0.3000	0.3000
Verint common stock price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Rights outstanding, measurement input	73.83	45.44

DERIVATIVE FINANCIAL INSTRUMENTS - INTEREST RATE SWAP AGREEMENTS (Details) - USD ($) $ in Millions			12 Months Ended
	May 01, 2020	Jun. 29, 2017	Jan. 31, 2021	Jan. 31, 2020
Derivative [Line Items]
Reclassification of cash flow hedge gain (loss), before Tax	$ 20.4
Reclassification of cash flow hedge gain (loss), after Tax	$ 16.0
2016 Interest Rate Swap
Derivative [Line Items]
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 [Line Items]
Derivative - notional amount			$ 200.0
Derivative - fixed interest rate			2.949%
Derivative - index interest rate floor			0.00%
Foreign currency forward contracts
Derivative [Line Items]
Term to maturity of derivative contracts is generally less than this period (in months)			12 months
Derivative - notional amount			$ 61.4	$ 89.0

DERIVATIVE FINANCIAL INSTRUMENTS - ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Fair Values of Derivative Financial Instruments
Assets, fair value	$ 1,134	$ 812
Liabilities, fair value	18,607	13,633
Prepaid expenses and other current assets \| Foreign currency forward contracts \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Assets, fair value	1,134	710
Prepaid expenses and other current assets \| Foreign currency forward contracts \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Assets, fair value	0	102
Accrued expenses and other current liabilities \| Foreign currency forward contracts \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	403	16
Accrued expenses and other current liabilities \| Foreign currency forward contracts \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	323	116
Accrued expenses and other current liabilities \| Interest rate swap agreement \| 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 agreement \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	4,316	0
Other liabilities \| Interest rate swap agreement \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	0	11,441
Other liabilities \| Interest rate swap agreement \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Liabilities, fair value	$ 13,565	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) - USD ($) $ in Thousands		12 Months Ended
	May 01, 2020	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations	$ 20,400
Accumulated other comprehensive loss		$ (136,878)	$ (151,865)
Unrealized loss on derivatives		1,362	(599)	$ (2,511)
Designated as cash flow hedges \| Cash flow hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in Accumulated other comprehensive (loss) income		(5,349)	(8,026)	(4,024)
Net gains (losses) reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations		(2,218)	(339)	(4,219)
Net losses on interest rate swaps expected to be reclassified to earnings during next 12 months		3,400
Foreign currency forward contracts \| Designated as cash flow hedges
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains on foreign currency forward contracts expected to be reclassified to earnings during next 12 months			600
Foreign currency forward contracts \| Designated as cash flow hedges \| Cash flow hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in Accumulated other comprehensive (loss) income		2,186	2,239	(981)
Net gains (losses) reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations		2,149	453	(4,219)
Interest rate swap agreement \| Designated as cash flow hedges \| Cash flow hedging
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in Accumulated other comprehensive (loss) income		(7,535)	(10,265)	(3,043)
Net gains (losses) reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations		(4,367)	$ (792)	$ 0
Unrealized loss on derivatives		$ 13,000

DERIVATIVE FINANCIAL INSTRUMENTS - NOT DESIGNATED AT HEDGING INSTRUMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (1,362)	$ 599	$ 2,511
Not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	(1,362)	599	2,511
Foreign currency forward contracts \| Not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	(95)	647	1,891
Interest rate swap agreement \| Not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (1,267)	$ (48)	$ 620

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - 2019 LONG-TERM STOCK INCENTIVE PLAN (Details)	Mar. 31, 2021 shares	Feb. 01, 2021	Jan. 31, 2021 shares
Subsequent Event
Stock-Based Compensation Plans
Unvested awards conversion factor		1.45
2019 Long-Term Stock Incentive Plan
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized			9,475,000
Reduction of available plan capacity for each stock option or stock-settled stock appreciation right (in shares)			1
Reduction of available plan capacity for each other award (in shares)			2.38
2019 Long-Term Stock Incentive Plan \| Subsequent Event
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	14,239,656

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK-BASED COMPENSATION - BY LINE ITEM (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock-Based Compensation Plans
Stock-based compensation	$ 62,433	$ 82,698	$ 66,657
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	8,783	12,651	10,377
Total stock-based compensation, net of taxes	53,650	70,047	56,280
Cost of revenue - product
Stock-Based Compensation Plans
Stock-based compensation	1,448	2,014	1,309
Cost of revenue - service and support
Stock-Based Compensation Plans
Stock-based compensation	3,926	6,170	4,426
Research and development, net
Stock-Based Compensation Plans
Stock-based compensation	9,536	13,426	9,870
Selling, general and administrative
Stock-Based Compensation Plans
Stock-based compensation	$ 47,523	$ 61,088	$ 51,052

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK-BASED COMPENSATION - BY CLASSIFICATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock-based compensation expense
Stock-based compensation	$ 62,433	$ 82,698	$ 66,657
Net excess tax deficiency (benefit) resulting from Stock Plans	1,500	(2,400)	(200)
Total equity-settled awards
Stock-based compensation expense
Stock-based compensation	62,289	82,623	66,582
Restricted stock units and restricted stock awards \| Total equity-settled awards
Stock-based compensation expense
Stock-based compensation	63,005	65,080	57,639
Stock Bonus Program \| Total equity-settled awards
Stock-based compensation expense
Stock-based compensation	(716)	17,543	8,943
Phantom stock units (cash-settled awards) \| Phantom stock units (cash-settled awards)
Stock-based compensation expense
Stock-based compensation	$ 144	$ 75	$ 75

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - RESTRICTED STOCK UNITS (Details) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Jan. 31, 2021 USD ($) $ / shares shares	Jan. 31, 2020 $ / shares shares	Jan. 31, 2019 $ / shares shares	Feb. 01, 2021
Summary of award activity
Beginning balance (in shares)	2,736	2,777	2,808
Granted (in shares)	2,031	1,620	1,708
Released (in shares)	(1,615)	(1,435)	(1,481)
Forfeited (in shares)	(282)	(226)	(258)
Ending balance (in shares)	2,870	2,736	2,777
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 52.53	$ 41.05	$ 41.18
Granted (in dollars per share) \| $ / shares	47.36	60.42	43.03
Released (in dollars per share) \| $ / shares	47.64	40.59	43.67
Forfeited (in dollars per share) \| $ / shares	52.65	45.57	41.07
Ending balance (in dollars per share) \| $ / shares	$ 51.61	$ 52.53	$ 41.05
Subsequent Event
Additional disclosures
Unvested awards conversion factor				1.45
RSUs
Summary of award activity
Granted (in shares)	1,650
Additional disclosures
Unrecognized compensation expense \| $	$ 89.7
Remaining weighted-average vesting period over which expense is expected to be recognized (in years)	1 year 3 months 10 days

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - PERFORMANCE RESTRICTED STOCK UNITS (Details) - shares shares in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Summary of award activity
Beginning balance (in shares)	2,736	2,777	2,808
Granted (in shares)	2,031	1,620	1,708
Released (in shares)	(1,615)	(1,435)	(1,481)
Forfeited (in shares)	(282)	(226)	(258)
Ending balance (in shares)	2,870	2,736	2,777
Performance based RSU's
Summary of award activity
Beginning balance (in shares)	526	512	506
Granted (in shares)	381	291	228
Released (in shares)	(233)	(245)	(139)
Forfeited (in shares)	(32)	(32)	(83)
Ending balance (in shares)	642	526	512

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - ADJUSTMENT IN CONNECTION WITH THE SPIN-OFF AND STOCK BONUS PROGRAM (Details)	1 Months Ended	12 Months Ended
	Mar. 31, 2021 shares	Jan. 31, 2021 shares	Jan. 31, 2020 shares	Jan. 31, 2019 shares	Feb. 01, 2021
Subsequent Event
Stock-Based Compensation Plans
Unvested awards conversion factor					1.45
Stock Bonus Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, award vesting period		1 year
Trailing period of average price of common stock to determine the number of shares to be issued (in days)		5 days
Number of shares issued under Stock Bonus Program (in shares)		32,000	97,000	19,000
Stock Bonus Program \| Subsequent Event
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	300,000
Discount from market price (as a percent)	15.00%
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
Discount from market price (as a percent)			15.00%
Number of shares issued under Stock Bonus Program (in shares)		32,000
2021 Plan \| Stock Bonus Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized		200,000
Discount from market price (as a percent)		15.00%
Number of shares issued under Stock Bonus Program (in shares)		0

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - ACTIVITIES OF STOCK BONUS PROGRAM (Details) - Stock Bonus Program - shares shares in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released	32	97	19
Shares granted in respect of discount	0	16	0
Shares released in respect of discount	3	13	0

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - BONUS SHARE PROGRAM (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2022
Stock Bonus Program
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released	32,000	97,000	19,000
Stock bonus program and bonus share program
Stock-Based Compensation Plans
Total accrued liability	$ 2.5	$ 17.3
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
2018 Plan \| Bonus Share Program
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released			197,000
2019 Plan \| Bonus Share Program
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released		59,000
2020 Plan \| Stock Bonus Program
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released	32,000
Share-based compensation arrangement by share-based payment award, number of shares authorized	200,000	200,000
2020 Plan \| Bonus Share Program
Stock-Based Compensation Plans
Shares in lieu of cash bonus - granted and released	272,000
Shares expected to be issued under SBP	100,000
2020 Plan \| Stock bonus program and bonus share program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	300,000

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - OTHER BENEFIT PLANS (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
401(k) Plan and Other Retirement Plans
Employee contribution limit (as a percentage of compensation)	60.00%
Company's matching contribution as percentage of employee's annual compensation (as a percentage of compensation)	50.00%
Defined Contribution Plan Employer Matching Contribution Per Employee Maximum Amount	$ 2,000
Matching contribution expense	2,700,000	$ 3,000,000.0	$ 2,700,000
Liability for Severance Pay
Severance expenses	$ 8,800,000	$ 8,700,000	$ 13,300,000

LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2019	Jan. 31, 2020
Lessee, Lease, Description [Line Items]
Lessee operating and finance leases options to extend lease terms	10 years
Lessee operating and finance leases options to terminate leases term	1 year
Finance lease, right-of-use asset	$ 11.0		$ 13.3
Finance lease, accumulated depreciation	2.7		$ 0.7
Accelerated operating lease expenses	2.8
Operating leases, rent expense		$ 22.6
Operating leases, not yet commenced with future lease obligations, amount	$ 4.9
Minimum
Lessee, Lease, Description [Line Items]
Lessee operating and finance leases remaining lease term	1 year
Operating leases, not yet commenced with future lease obligations, term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee operating and finance leases remaining lease term	11 years
Operating leases, not yet commenced with future lease obligations, term	5 years

LEASES - COMPONENT OF LEASE EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Leases [Abstract]
Operating lease expenses	$ 32,811	$ 29,898
Amortization of right-of-use assets	2,378	581
Interest on lease liabilities	414	226
Total finance lease expenses	2,792	807
Variable lease expenses	8,800	8,233
Short-term lease expenses	616	860
Sublease income	(966)	(908)
Total lease expenses	$ 44,053	$ 38,890

LEASES - SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Leases [Abstract]
Operating cash flows from operating leases	$ 29,631	$ 27,599
Operating cash flows from finance leases	414	226
Financing cash flows from finance leases	2,880	2,522
Operating leases	13,488	22,472
Finance leases	$ 903	$ 6,405
Operating leases	6 years	6 years
Finance leases	3 years	4 years
Operating leases	5.40%	6.00%
Finance leases	4.00%	5.20%

LEASES - MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands	Jan. 31, 2021 USD ($)
Operating Leases
2022	$ 25,859
2023	22,856
2024	20,517
2025	18,349
2026	13,792
Thereafter	16,927
Total future minimum lease payments	118,300
Less: imputed interest	(17,478)
Total	100,822
Finance Leases
2022	2,480
2023	2,091
2024	700
2025	277
2026	0
Thereafter	0
Total future minimum lease payments	5,548
Less: imputed interest	(294)
Total	$ 5,254

LEASES - SUPPLEMENTAL BALANCE SHEET INFO (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Operating Leases
Operating lease liabilities, current	$ 20,936	$ 22,656
Operating lease liabilities, noncurrent	79,886	90,372
Total	100,822
Finance Leases
Finance lease liability, current	2,285
Finance lease liability, noncurrent	2,969	$ 7,210
Total	$ 5,254

COMMITMENTS AND CONTINGENCIES - PURCHASE OBLIGATIONS AND OFF-BALANCE SHEET RISK (Details) $ in Millions	Jan. 31, 2021 USD ($)
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract]
Unconditional purchase obligations	$ 203.8
Concentration Risks, Types, No Concentration Percentage [Abstract]
Outstanding letters of credit and surety bonds	$ 72.1

COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) $ in Millions		12 Months Ended
	Jun. 07, 2012 defendant	Jan. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of defendants \| defendant	3
Loss contingency, damages sought, value \| $		$ 150.0

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - REPORTABLE OPERATING SEGMENTS (Details)	12 Months Ended
	Jan. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - SEGMENT REVENUE AND SEGMENT CONTRIBUTION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 1,273,705	$ 1,303,634	$ 1,229,747
Operating income	108,705	87,856	114,235
Customer Engagement
Segment Reporting Information [Line Items]
Revenue	830,247	846,525	796,287
Cyber Intelligence
Segment Reporting Information [Line Items]
Revenue	443,458	457,109	433,460
Segment revenue
Segment Reporting Information [Line Items]
Operating income	476,819	468,617	430,788
Segment revenue \| Customer Engagement
Segment Reporting Information [Line Items]
Revenue	840,583	873,200	811,346
Operating income	339,688	338,098	316,776
Segment revenue \| Cyber Intelligence
Segment Reporting Information [Line Items]
Revenue	447,027	462,817	433,753
Operating income	137,131	130,519	114,012
Revenue adjustments
Segment Reporting Information [Line Items]
Revenue	13,905	32,383	15,352
Revenue adjustments \| Customer Engagement
Segment Reporting Information [Line Items]
Revenue	(10,336)	(26,675)	(15,059)
Revenue adjustments \| Cyber Intelligence
Segment Reporting Information [Line Items]
Revenue	$ (3,569)	$ (5,708)	$ (293)

- 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
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
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+ Details

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - RECONCILIATION OF SEGMENT CONTRIBUTION TO OPERATING INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 1,273,705	$ 1,303,634	$ 1,229,747
Amortization of acquired intangible assets	49,900	55,400	56,400
Stock-based compensation	62,433	82,698	66,657
Total operating expenses	749,406	752,012	666,299
Operating income	108,705	87,856	114,235
Reconciling Items
Segment Reporting Information [Line Items]
Revenue	13,905	32,383	15,352
Shared support expenses	180,033	177,308	163,893
Amortization of acquired intangible assets	49,900	55,442	56,413
Stock-based compensation	62,433	82,698	66,657
Separation expenses	47,707	5,288	0
Acquisition, integration, restructuring, and other unallocated expenses	14,136	27,642	14,238
Total operating expenses	$ 368,114	$ 380,761	$ 316,553

SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - REVENUE AND LONG-LIVED ASSETS BY GEOGRAPHY (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Revenues from External Customers and Long-Lived Assets
Revenue	$ 1,273,705	$ 1,303,634	$ 1,229,747
Property and equipment, net	106,242	116,111
United States
Revenues from External Customers and Long-Lived Assets
Revenue	555,458	590,602	555,365
Property and equipment, net	51,996	61,096
Other
Revenues from External Customers and Long-Lived Assets
Revenue	105,064	93,302	103,158
Total Americas
Revenues from External Customers and Long-Lived Assets
Revenue	660,522	683,904	658,523
EMEA
Revenues from External Customers and Long-Lived Assets
Revenue	358,879	374,721	321,723
APAC
Revenues from External Customers and Long-Lived Assets
Revenue	254,304	245,009	$ 249,501
Israel
Revenues from External Customers and Long-Lived Assets
Property and equipment, net	34,014	33,316
Other countries
Revenues from External Customers and Long-Lived Assets
Property and equipment, net	$ 20,232	$ 21,699

SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions	Feb. 01, 2021	Mar. 31, 2021	Feb. 26, 2021	Jan. 31, 2021	Jun. 18, 2014
Subsequent Event
Subsequent Event [Line Items]
Spin-off transaction, number of shares received (in shares)	1
Stock repurchase program, available cash percentage of free cash flow during period		60.00%
1.50% convertible senior notes
Subsequent Event [Line Items]
Coupon interest rate				1.50%	1.50%
1.50% convertible senior notes \| Subsequent Event
Subsequent Event [Line Items]
Escrow deposit			$ 390.0

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 25,910,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	24,513,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	40,152,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	10,380,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	7,998,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 2,572,000
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201409Member

- Definition

Indicates amendment to accounting standards.

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+ Details

REVENUE RECOGNITION - REMAINING PERFORMANCE OBLIGATIONS (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 1,187,403	$ 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]
Revenue performance obligation		$ 731,659
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]
Revenue performance obligation	$ 758,880	$ 342,553
Revenue performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 428,523
Revenue performance obligation, period
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period	3 years
Customer Engagement
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 635,665	$ 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]
Revenue performance obligation		$ 374,982
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]
Revenue performance obligation	$ 405,714	$ 117,497
Revenue performance obligation, period	1 year
Customer Engagement \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 229,951
Revenue performance obligation, period
Cyber Intelligence
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 551,738	$ 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]
Revenue performance obligation		$ 356,677
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]
Revenue performance obligation	$ 353,166	$ 225,056
Revenue performance obligation, period	1 year
Cyber Intelligence \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 198,572
Revenue performance obligation, period