Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Mar. 15, 2017 | Jul. 29, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | VERINT SYSTEMS INC | ||
Entity Central Index Key | 1,166,388 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 2,172,714 | ||
Entity Common Stock, Shares Outstanding | 62,418,926 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 307,363 | $ 352,105 |
Restricted cash and bank time deposits | 9,198 | 11,820 |
Short-term investments | 3,184 | 55,982 |
Accounts receivable, net of allowance for doubtful accounts of $1.8 million and $1.2 million, respectively | 266,590 | 256,419 |
Inventories | 17,537 | 18,312 |
Deferred cost of revenue | 3,621 | 1,876 |
Prepaid expenses and other current assets | 64,561 | 57,598 |
Total current assets | 672,054 | 754,112 |
Property and equipment, net | 77,551 | 68,904 |
Goodwill | 1,264,818 | 1,207,176 |
Intangible assets, net | 235,259 | 246,682 |
Capitalized software development costs, net | 9,509 | 11,992 |
Long-term deferred cost of revenue | 5,463 | 13,117 |
Deferred income taxes | 21,510 | 17,528 |
Other assets | 76,620 | 36,224 |
Total assets | 2,362,784 | 2,355,735 |
Current Liabilities: | ||
Accounts payable | 62,049 | 65,447 |
Accrued expenses and other current liabilities | 213,224 | 206,967 |
Current maturities of long-term debt | 4,611 | 2,104 |
Deferred revenue | 182,515 | 167,912 |
Total current liabilities | 462,399 | 442,430 |
Long-term debt | 744,260 | 735,983 |
Long-term deferred revenue | 20,912 | 20,488 |
Deferred income taxes | 25,814 | 27,042 |
Other liabilities | 94,359 | 61,628 |
Total liabilities | 1,347,744 | 1,287,571 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred Stock - $0.001 par value; authorized 2,207,000 shares at January 31, 2017 and 2016, respectively; none issued. | 0 | 0 |
Common stock - $0.001 par value; authorized 120,000,000 shares. Issued 64,073,000 and 62,614,000 shares; outstanding 62,419,000 and 62,266,000 shares at January 31, 2017 and 2016, respectively. | 64 | 63 |
Additional paid-in capital | 1,449,335 | 1,387,955 |
Treasury stock, at cost - 1,654,000 and 348,000 shares at January 31, 2017 and 2016, respectively. | (57,147) | (10,251) |
Accumulated deficit | (230,816) | (201,436) |
Accumulated other comprehensive loss | (154,856) | (116,194) |
Total Verint Systems Inc. stockholders' equity | 1,006,580 | 1,060,137 |
Noncontrolling interest | 8,460 | 8,027 |
Total stockholders' equity | 1,015,040 | 1,068,164 |
Total liabilities and stockholders' equity | $ 2,362,784 | $ 2,355,735 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 1,800 | $ 1,200 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 2,207,000 | 2,207,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 64,073,000 | 62,614,000 |
Common stock, outstanding (in shares) | 62,419,000 | 62,266,000 |
Treasury stock, (in shares) | 1,654,000 | 348,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue: | |||
Product | $ 378,504 | $ 455,406 | $ 487,617 |
Service and support | 683,602 | 674,860 | 640,819 |
Total revenue | 1,062,106 | 1,130,266 | 1,128,436 |
Cost of revenue: | |||
Product | 123,279 | 145,071 | 144,870 |
Service and support | 261,978 | 248,061 | 239,274 |
Amortization of acquired technology and backlog | 37,372 | 35,774 | 31,004 |
Total cost of revenue | 422,629 | 428,906 | 415,148 |
Gross profit | 639,477 | 701,360 | 713,288 |
Operating expenses: | |||
Research and development, net | 171,070 | 177,650 | 173,748 |
Selling, general and administrative | 406,952 | 412,728 | 415,266 |
Amortization of other acquired intangible assets | 44,089 | 43,130 | 45,163 |
Total operating expenses | 622,111 | 633,508 | 634,177 |
Operating income | 17,366 | 67,852 | 79,111 |
Other income (expense), net: | |||
Interest income | 1,048 | 1,490 | 1,070 |
Interest expense | (34,962) | (33,885) | (36,661) |
Losses on early retirements of debt | 0 | 0 | (12,546) |
Other expense, net | (6,926) | (12,277) | (9,571) |
Total other expense, net | (40,840) | (44,672) | (57,708) |
(Loss) income before provision (benefit) for income taxes | (23,474) | 23,180 | 21,403 |
Provision (benefit) for income taxes | 2,772 | 952 | (14,999) |
Net (loss) income | (26,246) | 22,228 | 36,402 |
Net income attributable to noncontrolling interest | 3,134 | 4,590 | 5,471 |
Net (loss) income attributable to Verint Systems Inc. | $ (29,380) | $ 17,638 | $ 30,931 |
Net (loss) income per common share attributable to Verint Systems Inc. | |||
Basic (in dollars per share) | $ (0.47) | $ 0.29 | $ 0.53 |
Diluted (in dollars per share) | $ (0.47) | $ 0.28 | $ 0.52 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 62,593 | 61,813 | 58,096 |
Diluted (in shares) | 62,593 | 62,921 | 59,374 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Net (loss) income | $ (26,246) | $ 22,228 | $ 36,402 |
Other comprehensive loss, net of reclassification adjustments: | |||
Foreign currency translation adjustments | (42,130) | (28,180) | (45,600) |
Net unrealized gains (losses) on available-for-sale securities | 110 | (211) | 92 |
(Provision) benefit for income taxes on net unrealized gains (losses) on derivative financial instruments and interest rate swap designated as hedges | (693) | (798) | 1,070 |
Other comprehensive loss | (38,942) | (22,270) | (54,985) |
Comprehensive loss | (65,188) | (42) | (18,583) |
Comprehensive income attributable to noncontrolling interest | 2,854 | 4,179 | 5,096 |
Comprehensive loss attributable to Verint Systems Inc. | (68,042) | (4,221) | (23,679) |
Foreign currency forward contracts | |||
Other comprehensive loss, net of reclassification adjustments: | |||
Net unrealized gains (losses) on derivative financial instruments designated as hedges | 2,750 | 6,919 | (10,547) |
Interest Rate Swap | |||
Other comprehensive loss, net of reclassification adjustments: | |||
Net unrealized gains (losses) on derivative financial instruments designated as hedges | $ 1,021 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Total Verint Systems Inc. Stockholders' Equity | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | $ 36,402 | $ 30,931 | $ 30,931 | $ 5,471 | ||||
Other comprehensive loss | (54,985) | (54,610) | $ (54,610) | (375) | ||||
Common stock issued in public offering, net of issuance costs | 264,933 | 264,933 | $ 6 | $ 264,927 | ||||
Common stock issued in public offering, net of issuance costs (in shares) | 5,750,000 | |||||||
Equity component of convertible notes, net of issuance costs | 78,209 | 78,209 | 78,209 | |||||
Purchase of convertible note hedges | (60,800) | (60,800) | (60,800) | |||||
Issuance of warrants | 45,188 | 45,188 | 45,188 | |||||
Stock-based compensation - equity portion | 46,963 | 46,963 | 46,963 | |||||
Exercises of stock options | $ 17,520 | 17,520 | 17,520 | |||||
Exercises of stock options (in shares) | 505,000 | 505,000 | ||||||
Common stock issued for stock awards and stock bonuses | $ 4,532 | 4,532 | $ 1 | 4,531 | ||||
Common stock issued for stock awards and stock bonuses (in shares) | 1,091,000 | |||||||
Purchases of treasury stock | (2,238) | (2,238) | $ (2,238) | |||||
Purchases of treasury stock (in shares) | (46,000) | |||||||
Dividends to noncontrolling interest | (4,193) | (4,193) | ||||||
Tax effects from stock award plans | 254 | 254 | 254 | |||||
Balances at Jan. 31, 2014 | 633,118 | 626,974 | $ 54 | 924,663 | (8,013) | (250,005) | (39,725) | 6,144 |
Balances (in shares) at Jan. 31, 2014 | 53,605,000 | |||||||
Balances at Jan. 31, 2015 | 1,004,903 | 997,856 | $ 61 | 1,321,455 | (10,251) | (219,074) | (94,335) | 7,047 |
Balances (in shares) at Jan. 31, 2015 | 60,905,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | 22,228 | 17,638 | 17,638 | 4,590 | ||||
Other comprehensive loss | (22,270) | (21,859) | (21,859) | (411) | ||||
Stock-based compensation - equity portion | 58,028 | 58,028 | 58,028 | |||||
Exercises of stock options | $ 232 | 232 | 232 | |||||
Exercises of stock options (in shares) | 6,000 | 6,000 | ||||||
Common stock issued for stock awards and stock bonuses | $ 7,745 | 7,745 | $ 2 | 7,743 | ||||
Common stock issued for stock awards and stock bonuses (in shares) | 1,355,000 | |||||||
Dividends to noncontrolling interest | (3,199) | (3,199) | ||||||
Tax effects from stock award plans | 497 | 497 | 497 | |||||
Balances at Jan. 31, 2016 | 1,068,164 | 1,060,137 | $ 63 | 1,387,955 | (10,251) | (201,436) | (116,194) | 8,027 |
Balances (in shares) at Jan. 31, 2016 | 62,266,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | (26,246) | (29,380) | (29,380) | 3,134 | ||||
Other comprehensive loss | (38,942) | (38,662) | (38,662) | (280) | ||||
Stock-based compensation - equity portion | 55,123 | 55,123 | 55,123 | |||||
Exercises of stock options | $ 7 | 7 | 7 | |||||
Exercises of stock options (in shares) | 1,000 | 1,000 | ||||||
Common stock issued for stock awards and stock bonuses | $ 6,953 | 6,953 | $ 1 | 6,952 | ||||
Common stock issued for stock awards and stock bonuses (in shares) | 1,458,000 | |||||||
Purchases of treasury stock | (46,896) | (46,896) | (46,896) | |||||
Purchases of treasury stock (in shares) | (1,306,000) | |||||||
Dividends to noncontrolling interest | (2,421) | (2,421) | ||||||
Tax effects from stock award plans | (702) | (702) | (702) | |||||
Balances at Jan. 31, 2017 | $ 1,015,040 | $ 1,006,580 | $ 64 | $ 1,449,335 | $ (57,147) | $ (230,816) | $ (154,856) | $ 8,460 |
Balances (in shares) at Jan. 31, 2017 | 62,419,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (26,246) | $ 22,228 | $ 36,402 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 114,257 | 106,300 | 99,464 |
Provision for doubtful accounts | 1,791 | 669 | 423 |
Stock-based compensation, excluding cash-settled awards | 65,421 | 64,387 | 54,314 |
Amortization of discount on convertible notes | 10,668 | 10,123 | 6,014 |
Benefit for deferred income taxes | (16,941) | (5,640) | (47,331) |
Excess tax benefits from stock award plans | (6) | (523) | (298) |
Non-cash losses (gains) on derivative financial instruments, net | 323 | (394) | (3,986) |
Losses on early retirements of debt | 0 | 0 | 12,546 |
Other non-cash items, net | 7,666 | 12,343 | 8,928 |
Changes in operating assets and liabilities, net of effects of business combinations: | |||
Accounts receivable | (353) | 3,433 | (54,921) |
Inventories | (286) | (3,258) | (4,223) |
Deferred cost of revenue | 7,124 | 6,187 | (677) |
Prepaid expenses and other assets | 4,941 | (2,886) | 21,412 |
Accounts payable and accrued expenses | (9,521) | (15,260) | 33,412 |
Deferred revenue | 8,705 | (12,364) | 24,057 |
Other liabilities | 4,987 | (28,515) | 8,356 |
Other, net | (115) | 73 | (167) |
Net cash provided by operating activities | 172,415 | 156,903 | 193,725 |
Cash flows from investing activities: | |||
Cash paid for business combinations, including adjustments, net of cash acquired | (141,803) | (31,358) | (605,279) |
Purchases of property and equipment | (27,540) | (25,265) | (23,134) |
Purchases of investments | (36,761) | (92,808) | (21,175) |
Maturities and sales of investments | 89,342 | 71,457 | 13,653 |
Settlements of derivative financial instruments not designated as hedges | (349) | 766 | 3,858 |
Cash paid for capitalized software development costs | (2,338) | (5,027) | (6,083) |
Change in restricted cash and bank time deposits, including long-term portion | (36,579) | 11,133 | (36,291) |
Other investing activities | 0 | (4,498) | (2,384) |
Net cash used in investing activities | (156,028) | (75,600) | (676,835) |
Cash flows from financing activities: | |||
Proceeds from borrowings, net of original issuance discount | 0 | 0 | 1,526,750 |
Repayments of borrowings and other financing obligations | (3,308) | (309) | (1,361,852) |
Proceeds from public issuance of common stock | 0 | 0 | 274,563 |
Proceeds from issuance of warrants | 0 | 0 | 45,188 |
Payments for convertible note hedges | 0 | 0 | (60,800) |
Payments of equity issuance, debt issuance and other debt-related costs | (249) | (239) | (29,164) |
Proceeds from exercises of stock options | 7 | 232 | 17,606 |
Dividends paid to noncontrolling interest | (2,421) | (3,199) | (4,193) |
Purchases of treasury stock | (46,896) | 0 | (2,238) |
Excess tax benefits from stock award plans | 6 | 523 | 298 |
Payments of contingent consideration for business combinations (financing portion) and other financing activities | (4,058) | (7,212) | (10,445) |
Net cash (used in) provided by financing activities | (56,919) | (10,204) | 395,713 |
Effect of exchange rate changes on cash and cash equivalents | (4,210) | (4,066) | (6,149) |
Net (decrease) increase in cash and cash equivalents | (44,742) | 67,033 | (93,546) |
Cash and cash equivalents, beginning of year | 352,105 | 285,072 | 378,618 |
Cash and cash equivalents, end of year | $ 307,363 | $ 352,105 | $ 285,072 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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. Verint is a global leader in Actionable Intelligence solutions. Actionable Intelligence is a necessity in a dynamic world of massive information growth because it empowers organizations with crucial insights and enables decision makers to anticipate, respond, and take action. With Verint solutions and value-added services, organizations of all sizes and across many industries can make more informed, timely, and effective decisions. Today, over 10,000 organizations in more than 180 countries, including over 80 percent of the Fortune 100, use Verint solutions to optimize customer engagement and make the world a safer place. Verint delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions and Cyber Intelligence Solutions. We have established leadership positions in Actionable Intelligence by developing highly-scalable, enterprise-class software and services with advanced, integrated analytics for both unstructured and structured information. Our innovative solutions are developed by a large research and development (“R&D”) team comprised of approximately 1,400 professionals and backed by more than 800 patents and patent applications worldwide. To help our customers maximize the benefits of our technology over the solution lifecycle and provide a high degree of flexibility, we offer a broad range of services, such as strategic consulting, managed services, implementation services, training, maintenance, and 24x7 support. Additionally, we offer a broad range of deployment options, including cloud, on-premises, and hybrid, and software licensing and delivery models that include perpetual licenses and software as a service (“SaaS”). Headquartered in Melville, New York, we support our customers around the globe directly and with an extensive network of selling and support partners. Recasting of Historical Segment Information Through July 31, 2016, we were organized and had reported our operating results in three operating segments. In August 2016, we reorganized into two businesses and now report our results in two operating segments, as further discussed in Note 16, "Segment, Geographic, and Customer Information". Comparative segment financial information for prior periods appearing in Note 5, "Intangible Assets and Goodwill" and Note 16, "Segment, Geographic, and Customer Information", has been recast to conform to this revised segment structure. Reclassification Within Consolidated Statements of Cash Flows 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. The noncontrolling interest in this joint venture is reflected within stockholders’ equity on our consolidated balance sheet, but separately from our equity. We have two majority owned subsidiaries for which we hold an option to acquire the noncontrolling interests. We account for the option as an in-substance investment in the noncontrolling common stock of each such subsidiary. We include the fair value of the option within other liabilities and do not recognize noncontrolling interests in these subsidiaries. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated. Investments in companies in which we have less than a 20% ownership interest and can not exercise significant influence are accounted for at cost. 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. Restricted Cash and Restricted Bank Time Deposits Restricted cash 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. As of January 31, 2017, we held no marketable debt securities. As of January 31, 2016, all of our marketable debt securities were classified as “available-for-sale” and were reported at fair value, with unrealized gains and losses reported in stockholders’ equity until disposition or maturity. Investments with maturities in excess of one year are included in other assets. Accounts Receivable, Net Trade accounts receivable are recorded at the invoiced amount and are not interest-bearing. Accounts receivable, net, includes unbilled accounts receivable on arrangements recognized under contract accounting methods, representing revenue recognized on contracts for which billing will occur in subsequent periods, in accordance with the terms of the contracts. Unbilled accounts receivable on such contracts were $39.7 million and $46.6 million at January 31, 2017 and 2016, respectively. Substantially all unbilled accounts receivable at January 31, 2017 are expected to be collected during the year ending January 31, 2018. Under most contracts, unbilled accounts receivable are typically billed and collected within one year of revenue recognition. However, as of January 31 2017, we had unbilled accounts receivable on certain complex projects with a long-standing customer for which the underlying billing milestones are still in progress and have remained unbilled for periods in excess of one year, and in some cases, for several years. We have no history of uncollectible accounts with this customer and believe that collection of such amounts is still reasonably assured. We expect billing and collection of these unbilled accounts receivable to occur within the next year. The application of our revenue recognition policies sometimes results in circumstances for which we are unable to recognize revenue relating to sales transactions that have been billed, but the related account receivable has not been collected. For consolidated balance sheet presentation purposes, we do not recognize the deferred revenue or the related account receivable and no amounts appear in our consolidated balance sheets for such transactions. Only to the extent that we have received cash for a given deferred revenue transaction is the amount included in deferred revenue on the consolidated balance sheets. 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, and trade accounts receivable. 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 are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas. One customer accounted for $63.5 million and $70.9 million of our accounts receivable (including both billed and unbilled amounts), at January 31, 2017 and 2016, respectively. This customer is a governmental agency outside of the U.S. which we believe presents insignificant credit risk. Allowance for Doubtful Accounts We estimate the collectability of our accounts receivable balances each accounting period and adjust our allowance for doubtful accounts accordingly. Considerable judgment is required in assessing the collectability of accounts receivable, including consideration of the creditworthiness of each customer, their collection history, and the related aging of past due accounts receivable balances. We evaluate specific accounts when we learn that a customer may be experiencing a deteriorating financial condition due to lower credit ratings, bankruptcy, or other factors that may affect its ability to render payment. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. The following table summarizes the activity in our allowance for doubtful accounts for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Allowance for doubtful accounts, beginning of year $ 1,170 $ 1,099 $ 1,187 Provisions charged to expense 1,791 669 423 Amounts written off (1,484 ) (933 ) (461 ) Other, including fluctuations in foreign exchange rates 365 335 (50 ) Allowance for doubtful accounts, end of year $ 1,842 $ 1,170 $ 1,099 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 to seven years. Software is depreciated over periods ranging from three to four years. Buildings are depreciated over periods ranging from ten to twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or 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 regularly evaluated by the enterprise’s chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate resources and in assessing performance. We conduct our business through two operating segments, which are also our reportable segments, Customer Engagement Solutions ("Customer Engagement") and Cyber Intelligence Solutions ("Cyber Intelligence"). Organizing our business through two operating segments allows 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 regularly reviews segment revenue and segment operating contribution when assessing financial results of segments and allocating resources. We measure the performance of our operating segments based upon segment revenue and segment contribution. Segment contribution includes segment revenue and expenses incurred directly by the segment, including material costs, service costs, research and development and selling, marketing, and administrative expenses. We do not allocate certain expenses, which include the majority of general and administrative expenses, facilities and communication expenses, purchasing expenses, manufacturing support and logistic expenses, depreciation and amortization, amortization of capitalized software development costs, stock-based compensation, and special charges such as restructuring costs when calculating segment contribution. These expenses are included within unallocated expenses in our presentation of segment operating results. Revenue from transactions between our operating segments is not material. Goodwill, Other Acquired Intangible Assets, and Long-Lived Assets For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. Goodwill is assigned, at the acquisition date, to those reporting units expected to benefit from the synergies of the combination. We test goodwill for impairment at the reporting unit level, which can be an operating segment or one level below an operating segment, on an annual basis as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. As of January 31, 2017, our reporting units are Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and the Situational Intelligence business of our former Video Intelligence segment, which is now 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 our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference. For reporting units where we perform the two-step process, we utilize some or all of three primary approaches to assess fair value: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using multiples of comparable companies, and (c) a transaction-based approach, using multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of each reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts. Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, non-competition agreements, sales backlog, and in-process research and development. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of ten years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives. 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, 2017 and 2016. Fair Values of Financial Instruments Our recorded amounts of cash and cash equivalents, restricted cash and restricted bank time deposits, accounts receivable, 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 derive and report our revenue in two categories: (a) product revenue, including sale of hardware products (which include software that works together with the hardware to deliver the product's essential functionality) and licensing of software products, and (b) service and support revenue, including revenue from installation services, post-contract customer support ("PCS"), project management, hosting services, software-as-a-service ("SaaS"), application managed services, product warranties, business advisory consulting and training services. Our revenue recognition policy is a critical component of determining our operating results and is based on a complex set of accounting rules that require us to make significant judgments and estimates. Our customer arrangements typically include several elements, including products, services, and support. Revenue recognition for a particular arrangement is dependent upon such factors as the level of customization within the solution and the contractual delivery, acceptance, payment, and support terms with the customer. Significant judgment is required to conclude whether collectability of fees is reasonably assured and whether fees are fixed or determinable. For arrangements that do not require significant modification or customization of the underlying products, we recognize revenue when we have persuasive evidence of an arrangement, the product has been delivered or the services have been provided to the customer, the sales price is fixed or determinable and collectability is reasonably assured. In addition, our multiple-element arrangements must be carefully reviewed to determine the selling price of each element. Our multiple-element arrangements consist of a combination of our product and service offerings that may be delivered at various points in time. For arrangements within the scope of the multiple-deliverable accounting guidance, a deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. For multiple-element arrangements comprised only of hardware products containing software components and non-software components and related services, we allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The total transaction revenue is allocated to the multiple elements based on each element's relative selling price compared to the total selling price. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. Our policy for establishing VSOE for installation, consulting, and training is based upon an analysis of separate sales of services. We utilize either the substantive renewal rate approach or the bell-shaped curve approach to establish VSOE for our PCS offerings, depending upon the business segment, geographical region, or product line. TPE of selling price is established by evaluating largely similar and interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as most of our products contain a significant element of proprietary technology offering substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as we are unable to reliably determine what competitors products' selling prices are on a stand-alone basis, we are typically not able to determine TPE. If we are unable to determine the selling price because VSOE or TPE does not exist, we determine ESP for the purposes of allocating the arrangement's revenue by considering several external and internal factors including, but not limited to, pricing practices, similar product offerings, margin objectives, geographies in which we offer our products and services, internal costs, competition, and product life cycle. The determination of ESP is made through consultation with and approval by our management, taking into consideration our go-to-market strategies. We have established processes to update ESP for each element, when appropriate, to ensure that it reflects recent pricing experience. For multiple-element arrangements comprised only of software products and related services, a portion of the total purchase price is allocated to the undelivered elements, primarily installation services, PCS, application managed services, business advisory consulting and training services, using VSOE of fair value of the undelivered elements. The remaining portion of the total transaction value is allocated to the delivered software, referred to as the residual method. If we are unable to establish VSOE for the undelivered elements of the arrangement, revenue recognition is deferred for the entire arrangement until all elements of the arrangement are delivered, unless the only undelivered element is PCS, in which case, we recognize the arrangement fee ratably over the PCS period. For multiple-element arrangements that contain software and software-related elements for which we are unable to establish VSOE of one or more elements, we use various available indicators of fair value and apply our best judgment to reasonably classify the arrangement's revenue into product revenue and service revenue for financial reporting purposes. For multiple-element arrangements that are comprised of a combination of software and non-software deliverables, the total transaction value is bifurcated between the software deliverables and non-software deliverables based on the relative selling prices of the software and non-software deliverables as a group. Revenue is then recognized for the software and software-related services following the residual method or ratably over the PCS period if VSOE for PCS does not exist, and for the non-software deliverables following the revenue recognition methodology outlined above for multiple-element arrangements that contain tangible products and other non-software related services. PCS revenue is derived from providing technical software support services and unspecified software updates and upgrades to customers on a when-and-if-available basis. PCS revenue is recognized ratably over the term of the maintenance period, which in most cases is one year. Under the substantive renewal rate approach, we believe it is necessary to evaluate whether both the support renewal rate and term are substantive and whether the renewal rate is being consistently applied to subsequent renewals for a particular customer. We establish VSOE under this approach through analyzing the renewal rate stated in the customer agreement and determining whether that rate is above the minimum substantive VSOE renewal rate established for that particular PCS offering. The minimum substantive VSOE rate is determined based upon an analysis of renewal rates associated with historical PCS contracts. For multiple-element software arrangements that do not contain a stated renewal rate, revenue associated with the entire bundled arrangement is recognized ratably over the PCS term. Multiple-element software arrangements that have a renewal rate below the minimum substantive VSOE rate are deemed to contain a more than insignificant discount element, for which VSOE cannot be established. We recognize aggregate contractual revenue for these arrangements over the period that the customer is entitled to renew its PCS at the discounted rate, but not to exceed the estimated economic life of the product. We evaluate many factors in determining the estimated economic life of our products, including the support period of the product, technological obsolescence, and customer expectations. We have concluded that our software products have estimated economic lives ranging from five to seven years. Under the bell-shaped curve approach of establishing VSOE, we perform VSOE compliance tests to ensure that a substantial majority of our actual PCS renewals are within a narrow range of pricing. Some of our arrangements require significant customization of the product to meet the particular requirements of the customer. For these arrangements, revenue is recognized under contract accounting principles, typically using the percentage-of-completion ("POC") method. Under the POC method, revenue recognition is generally based upon the ratio of hours incurred to date to the total estimated hours required to complete the contract. Profit estimates on long-term contracts are revised periodically based on changes in circumstances, and any losses on contracts are recognized in the period that such losses become evident. If the range of profitability cannot be estimated, but some level of profit is assured, revenue is recognized to the extent of costs incurred, until such time that the project's profitability can be estimated or the services have been completed. In the event some level of profitability on a contract cannot be assured, the completed-contract method of revenue recognition is applied. Our SaaS multiple-element arrangements are typically comprised of subscription and support fees from customers accessing our software, set-up fees, and fees for consultation 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 arrangements. We recognize revenue for subscription and support services over the contract period originating when the subscription service is made available to the customer and the contractual hosting period has commenced. The initial set-up fees are recognized over the longer of the initial contract period or the period the customer is expected to benefit from payment of the up-front fees. Revenue from consultation services is generally recognized as services are completed. Our application managed services revenue is derived from providing services that enhance our customers IT processes and maximize the business benefits of our solutions. Application managed services revenue is recognized ratably over the applicable term which, in most cases, is at least one year. When application managed services is included within a multiple-element arrangement, we utilize the substantive renewal rate approach to establish VSOE. In addition, we perform a budget versus actual time analysis to support our initial estimate of effort required to provide these services. If an arrangement includes customer acceptance criteria, revenue is not recognized until we can objectively demonstrate that the software or services meet the acceptance criteria, or the acceptance period lapses, whichever occurs earlier. If an arrangement containing software elements obligates us to deliver specified future software products or upgrades, revenue related to the software elements under the arrangement is initially deferred and is recognized only when the specified future software products or upgrades are delivered, or when the obligation to deliver specified future software products expires, whichever occurs earlier. We record provisions for estimated product returns in the same period in which the associated revenue is recognized. We base these estimates of product returns upon historical levels of sales returns and other known factors. Actual product returns could be different from our estimates, and current or future provisions for product returns may differ from historical provisions. Concessions granted to customers are recorded as reductions to revenue in the period in which they were granted. The vast majority of our contracts are successfully completed, and concessions granted to customers are minimal in both dollar value and frequency. Product revenue derived from shipments to resellers and original equipment manufacturers ("OEMs") who purchase our products for resale are generally recognized when such products are shipped (on a "sell-in" basis) since we do not expect our resellers or OEMs to carry inventory of our products. We have historically experienced insignificant product return |
NET (LOSS) INCOME PER COMMON SH
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. | 12 Months Ended |
Jan. 31, 2017 | |
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, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands, except per share amounts) 2017 2016 2015 Net (loss) income $ (26,246 ) $ 22,228 $ 36,402 Net income attributable to noncontrolling interest 3,134 4,590 5,471 Net (loss) income attributable to Verint Systems Inc. $ (29,380 ) $ 17,638 $ 30,931 Weighted-average shares outstanding: Basic 62,593 61,813 58,096 Dilutive effect of employee equity award plans — 1,108 1,278 Dilutive effect of 1.50% convertible senior notes — — — Dilutive effect of warrants — — — Diluted 62,593 62,921 59,374 Net (loss) income per common share attributable to Verint Systems Inc.: Basic $ (0.47 ) $ 0.29 $ 0.53 Diluted $ (0.47 ) $ 0.28 $ 0.52 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) 2017 2016 2015 Stock options and restricted stock-based awards 1,097 596 226 1.50% convertible senior notes 6,205 6,205 3,876 Warrants 6,205 6,205 3,876 In periods for which we report a net loss attributable to Verint Systems Inc., basic net loss per common share and diluted net loss per common share are identical since the effect of all potential common shares is anti-dilutive and therefore excluded. Our 1.50% convertible senior notes will not impact the calculation of diluted net income per share unless the average price of our common stock, as calculated in accordance with the terms of the indenture governing the Notes, exceeds the conversion price of $64.46 per share. Likewise, diluted net income per share will not include any effect from the Warrants (as defined in Note 6, "Long-Term Debt") unless the average price of our common stock, as calculated under the terms of the Warrants, exceeds the exercise price of $75.00 per share. Our Note Hedges (as defined in Note 6, "Long-Term Debt") do not impact the calculation of diluted net income per share under the treasury stock method, because their effect would be anti-dilutive. However, in the event of an actual conversion of any or all of the Notes, the common shares that would be delivered to us under the Note Hedges would neutralize the dilutive effect of the common shares that we would issue under the Notes. As a result, actual conversion of any or all of the Notes would not increase our outstanding common stock. Up to 6,205,000 common shares could be issued upon exercise of the Warrants. Further details regarding the Notes, Note Hedges, and the Warrants appear in Note 6, "Long-Term Debt". |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 12 Months Ended |
Jan. 31, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS The following tables summarize our cash, cash equivalents, and short-term investments as of January 31, 2017 and 2016: January 31, 2017 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 307,188 $ — $ — $ 307,188 Money market funds 175 — — 175 Total cash and cash equivalents $ 307,363 $ — $ — $ 307,363 Short-term investments: Bank time deposits $ 3,184 $ — $ — $ 3,184 Total short-term investments $ 3,184 $ — $ — $ 3,184 January 31, 2016 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 334,938 $ — $ — $ 334,938 Money market funds 12,137 — — 12,137 Commercial paper and corporate debt securities 5,054 — (24 ) 5,030 Total cash and cash equivalents $ 352,129 $ — $ (24 ) $ 352,105 Short-term investments: Commercial paper and corporate debt securities (available-for-sale) $ 53,018 $ — $ (86 ) $ 52,932 Bank time deposits 3,050 — — 3,050 Total short-term investments $ 56,068 $ — $ (86 ) $ 55,982 Bank time deposits which are reported within short-term investments consist of deposits held outside of the U.S. with maturities of greater than 90 days, or without specified maturity dates which we intend to hold for periods in excess of 90 days. All other bank deposits are included within cash and cash equivalents. As of January 31, 2016, all of our available-for-sale investments had contractual maturities of less than one year. Gains and losses on sales of available-for-sale securities during the years ended January 31, 2017, 2016, and 2015 were not significant. During the years ended January 31, 2017, 2016, and 2015, proceeds from maturities and sales of available-for-sale securities were $52.8 million , $71.5 million , and $13.7 million , respectively. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Year Ended January 31, 2017 Contact Solutions, LLC On February 19, 2016, we completed the acquisition of Contact Solutions, LLC ("Contact Solutions"), a provider of real-time, contextual self-service solutions, based in Reston, Virginia. The purchase price consisted of $66.9 million of cash paid at closing, and a $2.5 million post-closing purchase price adjustment based upon a determination of Contact Solutions' acquisition-date working capital, which was paid during the three months ended July 31, 2016. The cash paid for this acquisition was funded with cash on hand. The purchase price for Contact Solutions was 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 price 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. Among the factors contributing to the recognition of goodwill as a component of the Contact Solutions purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. This goodwill has been assigned to our Customer Engagement segment and is deductible for income tax purposes. In connection with the purchase price allocation for Contact Solutions, 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 calculates 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 $0.6 million of current and long-term deferred revenue, 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 yet been received, we recorded a $2.9 million asset as a component of the purchase price allocation, representing the estimated fair value of these obligations, $1.2 million of which is included within prepaid expenses and other current assets, and $1.7 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 Contact Solutions, consisting primarily of professional fees and integration expenses, were $1.4 million and $0.1 million for the years ended January 31, 2017 and 2016, respectively, and were expensed as incurred and are included in selling, general and administrative expenses. Revenue attributable to Contact Solutions included in our consolidated statement of operations for the year ended January 31, 2017 was not material. Contact Solutions reported a loss before provision (benefit) for income taxes of $8.5 million for the year ended January 31, 2017. OpinionLab, Inc. On November 16, 2016, we completed the acquisition of all of the outstanding shares of OpinionLab, Inc. ("OpinionLab"), a leading SaaS provider of omnichannel Voice of Customer (“VoC”) feedback solutions which help organizations collect, understand, and leverage customer insights, helping drive smarter, real-time business action. OpinionLab is based in Chicago, Illinois. The purchase price consisted of $56.4 million of cash paid at the closing, funded from cash on hand, partially offset by $6.4 million of OpinionLab's cash received in the acquisition, resulting in net cash consideration at closing of $50.0 million , and we agreed to pay potential additional future cash consideration of up to $28.0 million , contingent upon the achievement of certain performance targets over the period from closing through January 31, 2021, the acquisition date fair value of which was estimated to be $15.0 million . The purchase price is subject to customary purchase price adjustments related to the final determination of OpinionLab's cash, net working capital, transaction expenses, and taxes as of November 16, 2016. The acquired business is being integrated into our Customer Engagement operating segment. The purchase price for OpinionLab was 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 price 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. Among the factors contributing to the recognition of goodwill as a component of the OpinionLab purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. This goodwill has been assigned to our Customer Engagement segment and is not deductible for income tax purposes. In connection with the purchase price allocation for OpinionLab, 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 calculates 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 $3.1 million of current and long-term deferred revenue, 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 yet been received, we recorded a $5.4 million asset as a component of the purchase price allocation, representing the estimated fair value of these obligations, $3.4 million of which is included within prepaid expenses and other current assets, and $2.0 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. The purchase price allocation for OpinionLab has been prepared on a preliminary basis and changes to the allocation may occur as additional information becomes available during the measurement period (up to one year from the acquisition date). Fair values still under review include values assigned to identifiable intangible assets and certain pre-acquisition loss contingencies. Transaction and related costs directly related to the acquisition of OpinionLab, consisting primarily of professional fees and integration expenses, were $0.6 million for the year ended January 31, 2017, and were expensed as incurred and are included in selling, general and administrative expenses. Revenue and (loss) income before provision (benefit) for income taxes attributable to OpinionLab included in our consolidated statement of operations for the year ended January 31, 2017 were not material. The following table sets forth the components and the allocation of the purchase price for our acquisitions of Contact Solutions and OpinionLab. (in thousands) Contact Solutions OpinionLab Components of Purchase Price: Cash paid at closing $ 66,915 $ 56,355 Fair value of contingent consideration — 15,000 Other purchase price adjustments 2,518 — Total purchase price $ 69,433 $ 71,355 Allocation of Purchase Price: Net tangible assets (liabilities): Accounts receivable $ 8,102 $ 748 Other current assets, including cash acquired 2,392 10,625 Property and equipment, net 7,007 298 Other assets 1,904 2,036 Current and other liabilities (4,943 ) (1,600 ) Deferred revenue - current and long-term (642 ) (3,082 ) Deferred Income Taxes - current and long-term — (9,995 ) Net tangible assets (liabilities) 13,820 (970 ) Identifiable intangible assets: Customer relationships 18,000 19,100 Developed technology 13,100 10,400 Trademarks and trade names 2,400 1,800 Total identifiable intangible assets 33,500 31,300 Goodwill 22,113 41,025 Total purchase price allocation $ 69,433 $ 71,355 For the acquisition of Contact Solutions, the acquired customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of ten years , four years , and five years , respectively, the weighted average of which is approximately 7.3 years. For the acquisition of OpinionLab, the acquired customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of ten years , six years , and four years , respectively, the weighted average of which is approximately 8.3 years. The weighted-average estimated useful life of all finite-lived identifiable intangible assets acquired during the year ended January 31, 2017 is 7.8 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, 2017, we completed two transactions that qualified as business combinations in our Customer Engagement segment. These business combinations were not material to our consolidated financial statements individually or in the aggregate. Year Ended January 31, 2016 During the year ended January 31, 2016, we completed three business combinations: • On February 12, 2015, we completed the acquisition of a business that has been integrated into our Customer Engagement operating segment. • On May 1, 2015, we completed the acquisition of a business that has been integrated into our Cyber Intelligence operating segment. • On August 11, 2015, we acquired certain technology and other assets for use in our Customer Engagement operating segment in a transaction that qualified as a business combination. The combined consideration for these business combinations was approximately $49.5 million , including $33.2 million of combined cash paid at the closings. For one of these business combinations, we also agreed to make potential additional cash payments to the respective former shareholders aggregating up to approximately $30.5 million , contingent upon the achievement of certain performance targets over periods extending through April 2020. The fair value of these contingent consideration obligations was estimated to be $16.2 million at the applicable acquisition date. 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 $28.7 million of goodwill associated with these business combinations, $7.7 million and $21.0 million was assigned to our Customer Engagement and Cyber Intelligence segments, respectively. For income tax purposes, $5.1 million of this goodwill is deductible and $23.6 million is not deductible. $0.6 million and $1.4 million for the years ended January 31, 2017 and 2016, respectively. All transaction and related costs were expensed as incurred and are included in selling, general and administrative expenses. The purchase price allocations for business combinations completed during the year ended January 31, 2016 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, 2016, including adjustments identified subsequent to the respective valuation dates, none of which were material: (in thousands) Amount Components of Purchase Prices: Cash $ 33,222 Fair value of contingent consideration 16,237 Total purchase prices $ 49,459 Allocation of Purchase Prices: Net tangible assets (liabilities): Accounts receivable $ 992 Other current assets, including cash acquired 4,274 Other assets 395 Current and other liabilities (3,037 ) Deferred revenue - current and long-term (1,872 ) Deferred income taxes - current and long-term (2,922 ) Net tangible liabilities (2,170 ) Identifiable intangible assets: Customer relationships 1,212 Developed technology 20,300 Trademarks and trade names 300 In-process research and development 1,100 Total identifiable intangible assets 22,912 Goodwill 28,717 Total purchase price allocations $ 49,459 five years to ten years, from four years to five years, and three years, respectively, the weighted average of which is approximately 4.4 years. Year Ended January 31, 2015 KANA Software, Inc. On February 3, 2014, we completed the acquisition of Sunnyvale, California-based KANA Software, Inc. and its subsidiaries ("KANA"), a leading global provider of on-premises and cloud-based solutions which create differentiated, personalized, and integrated customer experiences for large enterprises and mid-market organizations. The purchase price consisted of $542.4 million of cash paid at the closing, partially offset by $25.1 million of KANA’s cash received in the acquisition, and a $0.7 million post-closing purchase price adjustment, resulting in net cash consideration of $516.6 million . The merger consideration was funded by a combination of cash on hand, $300.0 million of incremental term loans incurred in connection with an amendment to our Credit Agreement, and $125.0 million of borrowings under our 2013 Revolving Credit Facility (further details for which appear in Note 6, "Long-Term Debt"). KANA has been integrated into our Customer Engagement operating segment. Among the factors contributing to the recognition of goodwill as a component of the KANA purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. This goodwill has been assigned to our Customer Engagement segment and while generally not deductible for income tax purposes, certain goodwill related to previous business combinations by KANA is deductible for income tax purposes. In connection with the purchase price allocation for KANA, the estimated fair value of undelivered performance obligations under customer contracts assumed in the merger was determined utilizing a cost build-up approach. The cost build-up approach calculates 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 $7.9 million of current and long-term deferred revenue, 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 yet been received, we recorded an $18.6 million asset within prepaid expenses and other current assets as a component of the purchase price allocation. We are amortizing this asset over the underlying delivery periods for these obligations as a reduction to revenue, which reduces the revenue we recognize for providing these services to its estimated fair value. Transaction and related costs directly related to the acquisition of KANA, consisting primarily of professional fees and integration expenses, were $0.6 million , $3.2 million , and $10.0 million for the years ended January 31, 2017, 2016, and 2015, respectively. All transaction and related costs were expensed as incurred and are included in selling, general and administrative expenses. UTX Technologies Limited On March 31, 2014, we completed the acquisition of all of the outstanding shares of UTX Technologies Limited (“UTX”), a provider of certain mobile device tracking solutions for security applications, from UTX Limited. UTX Limited was the supplier of these products to our Cyber Intelligence operating segment prior to the acquisition. The purchase price consisted of $82.9 million of cash paid at closing, and up to $1.5 million of potential future contingent consideration payments to UTX Limited, the acquisition date fair value of which was estimated to be $1.3 million . During the year ended January 31, 2015, $1.5 million of contingent consideration was paid to UTX Limited. UTX is based in the Europe, the Middle East and Africa (“EMEA”) region and has been integrated into our Cyber Intelligence operating segment. Among the factors contributing to the recognition of goodwill as a component of the UTX purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. This goodwill has been assigned to our Cyber Intelligence segment and is not deductible for income tax purposes. Transaction and related costs directly related to the acquisition of UTX, consisting primarily of professional fees, integration expenses and related adjustments, were $2.5 million for the year ended January 31, 2015 and not material for the years ended January 31, 2017 and 2016. Such costs were expensed as incurred and are included in selling, general and administrative expenses. As a result of the UTX acquisition, we recorded a $2.6 million charge for the impairment of certain capitalized software development costs during the year ended January 31, 2015, reflecting strategy changes in certain product development initiatives. This charge is reflected within cost of product revenue. Purchase Price Allocations The following table sets forth the components and the allocations of the purchase prices for our acquisitions of KANA and UTX, including adjustments identified subsequent to the respective acquisition dates: (in thousands) KANA UTX Components of Purchase Prices: Cash, including post-closing adjustments $ 541,685 $ 82,901 Fair value of contingent consideration — 1,347 Total purchase prices $ 541,685 $ 84,248 Allocation of Purchase Prices: Net tangible assets (liabilities): Accounts receivable $ 18,473 $ — Other current assets, including cash acquired 49,707 3,799 Other assets 14,494 924 Current and other liabilities (17,851 ) (263 ) Deferred revenue - current and long-term (7,932 ) (340 ) Deferred income taxes - current and long-term (60,879 ) (4,882 ) Net tangible liabilities (3,988 ) (762 ) Identifiable intangible assets: Customer relationships 152,700 2,000 Developed technology 55,500 37,400 Trademarks and trade names 11,500 — Other intangible assets — 1,100 Total identifiable intangible assets 219,700 40,500 Goodwill 325,973 44,510 Total purchase price allocations $ 541,685 $ 84,248 For the acquisition of KANA, the acquired customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of five to ten years, three to five years, and five years, respectively, the weighted average of which is approximately 8.1 years. For the acquisition of UTX, the acquired customer relationships, developed technology and other intangible assets were assigned estimated useful lives of three years, four years, and four years, respectively, the weighted average of which is approximately 4.0 years. The weighted-average estimated useful life of all finite-lived identifiable intangible assets acquired during the year ended January 31, 2015 is 7.4 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. Pro Forma Information The following table provides unaudited pro forma operating results for the year ended January 31, 2015, as if KANA and UTX had been acquired on February 1, 2014. These unaudited pro forma results reflect certain adjustments related to these acquisitions, including amortization expense on finite-lived intangible assets acquired from KANA and UTX, interest expense and fees associated with additional long-term debt incurred to partially fund the acquisition of KANA, and adjustments to recognize the fair value of revenue associated with performance obligations assumed in the acquisition of KANA. The unaudited pro forma results do not include any operating efficiencies or potential cost savings associated with these business combinations. Accordingly, such unaudited pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on February 1, 2014, nor are they indicative of future operating results. (in thousands, except per share amounts) Year Ended January 31, 2015 Revenue $ 1,158,141 Net income $ 29,644 Net income attributable to Verint Systems Inc. $ 24,173 Net income per common share attributable to Verint Systems Inc.: Basic $ 0.42 Diluted $ 0.41 Other Business Combination Information The acquisition date fair values of contingent consideration obligations associated with business combinations are estimated based on probability adjusted present values of the consideration expected to be transferred using significant inputs that are not observable in the market. Key assumptions used in these estimates include probability assessments with respect to the likelihood of achieving the performance targets and discount rates consistent with the level of risk of achievement. At each reporting date, we revalue the contingent consideration obligations to their fair values and record increases and decreases in fair value within selling, general and administrative expenses in our 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, 2017, 2016, and 2015, we recorded a charge of $7.3 million , a benefit of $0.9 million , and a charge of $0.9 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 $52.7 million at January 31, 2017, of which $10.0 million was recorded within accrued expenses and other current liabilities, and $42.7 million was recorded within other liabilities. Payments of contingent consideration earned under these agreements were $3.3 million , $7.4 million , and $12.0 million for the years ended January 31, 2017, 2016, and 2015, respectively. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Acquisition-related intangible assets consisted of the following as of January 31, 2017 and 2016 : January 31, 2017 (in thousands) Cost Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $ 403,657 $ (244,792 ) $ 158,865 Acquired technology 233,982 (168,653 ) 65,329 Trade names 23,493 (14,187 ) 9,306 Non-competition agreements 3,047 (2,499 ) 548 Distribution network 4,440 (4,329 ) 111 Total intangible assets with finite lives 668,619 (434,460 ) 234,159 In-process research and development, with indefinite lives 1,100 — 1,100 Total intangible assets $ 669,719 $ (434,460 ) $ 235,259 January 31, 2016 (in thousands) Cost Accumulated Amortization Net Intangible assets, all with finite lives: Customer relationships $ 371,722 $ (211,824 ) $ 159,898 Acquired technology 211,388 (134,391 ) 76,997 Trade names 18,457 (11,570 ) 6,887 Non-competition agreements 3,047 (2,137 ) 910 Distribution network 4,440 (3,550 ) 890 Total intangible assets with finite lives 609,054 (363,472 ) 245,582 In-process research and development, with indefinite lives 1,100 — 1,100 Total intangible assets $ 610,154 $ (363,472 ) $ 246,682 The following table presents net acquisition-related intangible assets by reportable segment as of January 31, 2017 and 2016 : January 31, (in thousands) 2017 2016 Customer Engagement $ 207,436 $ 201,503 Cyber Intelligence 27,823 45,179 Total $ 235,259 $ 246,682 Total amortization expense recorded for acquisition-related intangible assets was $81.5 million , $78.9 million , and $76.2 million for the years ended January 31, 2017 , 2016 , and 2015 , 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 2018 $ 68,227 2019 41,246 2020 31,888 2021 24,716 2022 21,626 Thereafter 46,456 Total $ 234,159 During the year ended January 31, 2016, we recorded a $3.2 million impairment of an acquired technology asset, which is included within cost of product revenue. No impairments of acquired intangible assets were recorded during the years ended January 31, 2017 and 2015. As discussed in Note 16, "Segment Information", effective in August 2016, we reorganized into two businesses and now present our results in two reportable segments. We reallocated $51.8 million of goodwill, net of $25.3 million of accumulated impairment losses, from our former Video Intelligence segment to our Customer Engagement segment, and $22.2 million of goodwill, net of $10.8 million of accumulated impairment losses, to our Cyber Intelligence segment, using a relative fair value approach. In addition, we completed an assessment for potential impairment of the goodwill previously allocated to our former Video Intelligence segment immediately prior to the reallocation and determined that no impairment existed. Goodwill activity for the years ended January 31, 2017 , and 2016 , in total and by reportable segment, was as follows: Reportable Segment (in thousands) Total Customer Engagement Cyber Intelligence Year Ended January 31, 2016: Goodwill, gross, at January 31, 2015 $ 1,267,682 $ 1,144,188 $ 123,494 Accumulated impairment losses through January 31, 2015 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2015 1,200,817 1,088,145 112,672 Business combinations 28,717 7,695 21,022 Foreign currency translation and other (22,358 ) (20,634 ) (1,724 ) Goodwill, net, at January 31, 2016 $ 1,207,176 $ 1,075,206 $ 131,970 Year Ended January 31, 2017: Goodwill, gross, at January 31, 2016 $ 1,274,041 $ 1,131,249 $ 142,792 Accumulated impairment losses through January 31, 2016 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2016 1,207,176 1,075,206 131,970 Business combinations 91,209 91,209 — Foreign currency translation and other (33,567 ) (34,436 ) 869 Goodwill, net, at January 31, 2017 $ 1,264,818 $ 1,131,979 $ 132,839 Balance at January 31, 2017: Goodwill, gross, at January 31, 2017 $ 1,331,683 $ 1,188,022 $ 143,661 Accumulated impairment losses through January 31, 2017 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2017 $ 1,264,818 $ 1,131,979 $ 132,839 As a result of the segment reorganization discussed above, we concluded that, for purposes of reviewing for potential goodwill impairment, we have three reporting units, consisting of Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and the Situational Intelligence business of our former Video Intelligence segment, which is now a component of our Cyber Intelligence operating segment. Based upon our November 1, 2016 goodwill impairment reviews, we concluded that the estimated fair values of all of our reporting units significantly exceeded their carrying values. 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, 2017 and 2016 . No goodwill impairment was identified for the years ended January 31, 2017 , 2016 , and 2015 . |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jan. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table summarizes our long-term debt at January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 1.50% Convertible Senior Notes $ 400,000 $ 400,000 February 2014 Term Loans 130,060 130,729 March 2014 Term Loans 278,978 280,413 Other debt 404 — Less: Unamortized debt discounts and issuance costs (60,571 ) (73,055 ) Total debt 748,871 738,087 Less: current maturities 4,611 2,104 Long-term debt $ 744,260 $ 735,983 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, unless earlier converted by the holders pursuant to their terms. Net proceeds from the Notes after underwriting discounts were $391.9 million . The Notes pay interest in cash semiannually in arrears at a rate of 1.50% per annum. The Notes were issued concurrently with our public issuance of 5,750,000 shares of common stock, the majority of the combined net proceeds of which were used to partially repay certain indebtedness under our Credit Agreement, as further described below. Additional details regarding our June 18, 2014 issuance of common stock appear in Note 8, “Stockholders’ Equity”. The Notes are unsecured and rank senior in right of payment to our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to our indebtedness that is not so subordinated; effectively subordinated in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to indebtedness and other liabilities of our subsidiaries. The Notes are convertible into, at our election, cash, shares of common stock, or a combination of both, subject to satisfaction of specified conditions and during specified periods, as described below. If converted, we currently intend to pay cash in respect of the principal amount of the Notes. The Notes have a conversion rate of 15.5129 shares of common stock per $1,000 principal amount of Notes, which represents an effective conversion price of approximately $64.46 per share of common stock and would result in the issuance of approximately 6,205,000 shares if all of the Notes were converted. The conversion rate has not changed since issuance of the Notes, although throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Holders may surrender their Notes for conversion at any time prior to the close of business on the business day immediately preceding December 1, 2020, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter which ended on September 30, 2014, if the closing sale price of our common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter, is more than 130% of the conversion price of the Notes in effect on each applicable trading day; • during the ten consecutive trading-day period following any five consecutive trading-day period in which the trading price for the Notes for each such trading day was less than 98% of the closing sale price of our common stock on such date multiplied by the then-current conversion rate; or • upon the occurrence of specified corporate events, as described in the indenture governing the Notes, such as a consolidation, merger, or binding share exchange. On or after December 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may surrender their Notes for conversion regardless of whether any of the foregoing conditions have been satisfied. As of January 31, 2017, the Notes were not convertible. In accordance with accounting guidance for convertible debt with a cash conversion option, we separately accounted for the debt and equity components of the Notes in a manner that reflected our estimated nonconvertible debt borrowing rate. We estimated the debt and equity components of the Notes to be $319.9 million and $80.1 million respectively, at the issuance date assuming a 5.00% non-convertible borrowing rate. The equity component was recorded as an increase to additional paid-in capital. The excess of the principal amount of the debt component over its carrying amount (the “debt discount”) is being amortized as interest expense over the term of the Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the Notes, including underwriting discounts, of $7.6 million and $1.9 million to the debt and equity components, respectively. Issuance costs attributable to the debt component of the Notes are presented as a reduction of long-term debt and are being amortized as interest expense over the term of the Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. The carrying amount of the equity component, net of issuance costs, was $78.2 million at January 31, 2017. As of January 31, 2017, the carrying value of the debt component was $341.7 million , which is net of unamortized debt discount and issuance costs of $53.3 million and $5.0 million , respectively. Including the impact of the debt discount and related deferred debt issuance costs, the effective interest rate on the Notes was approximately 5.29% for each of the years ended January 31, 2017, 2016, and 2015. Based on the closing market price of our common stock on January 31, 2017, the if-converted value of the Notes was less than the aggregate principal amount of the Notes. Note Hedges and Warrants Concurrently with the issuance of the Notes, we entered into convertible note hedge transactions (the “Note Hedges”) and sold warrants (the “Warrants”). The combination of the Note Hedges and the Warrants serves to increase the effective initial conversion price for the Notes to $75.00 per share. The Note Hedges and Warrants are each separate instruments from the Notes. Note Hedges Pursuant to the Note Hedges, we purchased call options on our common stock, under which we have the right to acquire from the counterparties up to approximately 6,205,000 shares of our common stock, subject to customary anti-dilution adjustments, at a price of $64.46 , which equals the initial conversion price of the Notes. Our exercise rights under the Note Hedges generally trigger upon conversion of the Notes and the Note Hedges terminate upon maturity of the Notes, or the first day the Notes are no longer outstanding. The Note Hedges may be settled in cash, shares of our common stock, or a combination thereof, at our option, and are intended to reduce our exposure to potential dilution upon conversion of the Notes. We paid $60.8 million for the Note Hedges, which was recorded as a reduction to additional paid-in capital. As of January 31, 2017, we had not purchased any shares of our common stock under the Note Hedges. Warrants We sold the Warrants to several counterparties. The Warrants provide the counterparties rights to acquire from us up to approximately 6,205,000 shares of our common stock at a price of $75.00 per share. The Warrants expire incrementally on a series of expiration dates beginning in August 2021. At expiration, if the market price per share of our common stock exceeds the strike price of the Warrants, we will be obligated to issue shares of our common stock having a value equal to such excess. The Warrants could have a dilutive effect on net income per share to the extent that the market value of our common stock exceeds the strike price of the Warrants. Proceeds from the sale of the Warrants were $45.2 million and were recorded as additional paid-in capital. As of January 31, 2017, 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 Agreement In April 2011, we terminated a prior credit agreement and entered into a credit agreement with our lenders, which was amended and restated in March 2013, and further amended in February, March and June 2014 (the “Credit Agreement"). The Credit Agreement, as amended and restated, provides for senior secured credit facilities, currently comprised of $300.0 million of term loans borrowed in February 2014 (the “February 2014 Term Loans”), and $643.5 million of term loans borrowed in March 2014 (the "March 2014 Term Loans"), all of which matures in September 2019, and a $300.0 million revolving credit facility maturing in September 2018 (the "Revolving Credit Facility"), subject to increase and reduction from time to time as described in the Credit Agreement. Debt issuance and debt modification costs, as well as original issuance discounts, incurred in connection with the Credit Agreement are deferred and amortized as adjustments to interest expense over the remaining contractual life of the associated borrowing. The February 2014 Term Loans were borrowed in connection with our February 2014 acquisition of KANA. The March 2014 Term Loans were borrowed as part of a refinancing of previously outstanding term loans under the Credit Agreement, which was accounted for as an early retirement of the previously outstanding term loans. As a result, $4.3 million of unamortized deferred debt issuance costs and a $2.8 million unamortized discount associated with the previously outstanding term loans were written off as a $7.1 million loss on early retirement of debt during the year ended January 31, 2015. In June 2014, we utilized the majority of the combined net proceeds from the issuance of the Notes and the concurrent issuance of 5,750,000 shares of common stock to retire $530.0 million of the February 2014 Term Loans and March 2014 Term Loans, and all $106.0 million of then-outstanding borrowings under the Revolving Credit Facility. As a result, $3.8 million and $1.3 million of deferred debt issuance costs associated with the February 2014 Term Loans and March 2014 Term Loans, respectively, and a $0.4 million unamortized discount associated with the February 2014 Term Loans, were written off as a $5.5 million loss on early retirement of debt during the year ended January 31, 2015. The outstanding February 2014 Term Loans and March 2014 Term Loans incur interest at our option at either a base rate plus a spread of 1.75% or an Adjusted LIBOR Rate , as defined in the Credit Agreement, plus a spread of 2.75% . As of January 31, 2017, the weighted-average interest rate on both the February 2014 Term Loans and the March 2014 Term Loans was 3.58% . Taking into account the impact of original issuance discounts, if any, and related deferred debt issuance costs, the effective interest rates on the February 2014 Term Loans and March 2014 Term Loans were approximately 4.11% and 3.66% , respectively, at January 31, 2017. During the year ended January 31, 2017, 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 term loans, further details for which appear in Note 12, "Derivative Financial Instruments". We are required to pay a commitment fee equal to 0.50% per annum of the undrawn portion on the Revolving Credit Facility, payable quarterly, and customary administrative agent and letter of credit fees. Loans under the Credit Agreement are subject to mandatory prepayment requirements with respect to certain asset sales, excess cash flows (as defined in the Credit Agreement), and certain other events. Optional prepayments of the term loans are permitted without premium or penalty, other than customary breakage costs associated with the prepayment of loans bearing interest based on LIBOR. Our obligations under the Credit Agreement are guaranteed by substantially all of our domestic subsidiaries and certain foreign subsidiaries, and are secured by security interests in substantially all of our and the aforementioned subsidiaries' assets, subject to certain exceptions. The Credit Agreement contains certain customary affirmative and negative covenants for credit facilities of this type. The Revolving Credit Facility also contains a financial covenant that requires us to maintain a ratio of Consolidated Total Debt to Consolidated EBITDA (each as defined in the Credit Agreement) of no greater than 4.50 to 1 (the "Leverage Ratio Covenant"). The limitations imposed by the covenants are subject to certain exceptions as detailed in the Credit Agreement. Future Principal Payments on Term Loans As of January 31, 2017, future scheduled principal payments on the February 2014 Term Loans and March 2014 Term Loans are presented in the following table: (in thousands) February 2014 March 2014 Years Ending January 31, Term Loans Term Loans 2018 $ 1,337 $ 2,869 2019 1,337 2,869 2020 127,386 273,240 Total $ 130,060 $ 278,978 Interest Expense The following table presents the components of interest expense incurred on the Notes and on borrowings under our Credit Agreement for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 1.50% Convertible Senior Notes: Interest expense at 1.50% coupon rate $ 6,000 $ 6,000 $ 3,717 Amortization of debt discount 10,669 10,123 6,014 Amortization of deferred debt issuance costs 1,007 955 566 Total - 1.50% Convertible Senior Notes $ 17,676 $ 17,078 $ 10,297 Borrowings under Credit Agreement: Interest expense at contractual rates $ 14,682 $ 14,590 $ 23,236 Impact of interest rate swap agreement 259 — — Amortization of debt discounts 58 56 116 Amortization of deferred debt issuance costs 2,211 2,166 2,435 Total - Borrowings under Credit Agreement $ 17,210 $ 16,812 $ 25,787 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 12 Months Ended |
Jan. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION Consolidated Balance Sheets Inventories consisted of the following as of January 31, 2017 and 2016 : January 31, (in thousands) 2017 2016 Raw materials $ 9,074 $ 7,177 Work-in-process 4,355 6,668 Finished goods 4,108 4,467 Total inventories $ 17,537 $ 18,312 Property and equipment, net consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Land and buildings $ 9,543 $ 10,276 Leasehold improvements 29,247 28,538 Software 61,810 47,615 Equipment, furniture, and other 93,968 79,545 194,568 165,974 Less: accumulated depreciation and amortization (117,017 ) (97,070 ) Total property and equipment, net $ 77,551 $ 68,904 Depreciation expense on property and equipment was $25.2 million , $20.3 million , and $17.7 million the years ended January 31, 2017, 2016, and 2015, respectively. Other assets consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Long-term restricted cash and time deposits $ 54,566 $ 15,359 Deferred debt issuance costs, net 1,929 3,142 Long-term security deposits 4,123 4,112 Other 16,002 13,611 Total other assets $ 76,620 $ 36,224 Accrued expenses and other current liabilities consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Compensation and benefits $ 73,998 $ 69,895 Billings in excess of costs and estimated earnings on uncompleted contracts 59,810 54,873 Income taxes 11,410 18,707 Professional and consulting fees 8,020 7,094 Derivative financial instruments - current portion 1,655 2,347 Distributor and agent commissions 10,384 8,471 Taxes other than income taxes 8,564 8,430 Interest on indebtedness 3,712 4,597 Contingent consideration - current portion 9,725 3,691 Other 25,946 28,862 Total accrued expenses and other current liabilities $ 213,224 $ 206,967 Other liabilities consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Unrecognized tax benefits, including interest and penalties $ 28,204 $ 25,315 Contingent consideration - long-term portion 42,708 18,401 Deferred rent expense 13,805 12,553 Obligations for severance compensation 2,880 2,712 Other 6,762 2,647 Total other liabilities $ 94,359 $ 61,628 Consolidated Statements of Operations Other expense, net consisted of the following for the years ended January 31, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Foreign currency losses, net $ (2,743 ) $ (8,037 ) $ (13,402 ) (Losses) gains on derivative financial instruments, net (322 ) 394 3,986 Other, net (3,861 ) (4,634 ) (155 ) Total other expense, net $ (6,926 ) $ (12,277 ) $ (9,571 ) Consolidated Statements of Cash Flows The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Cash paid for interest $ 21,892 $ 20,734 $ 29,296 Cash payments of income taxes, net $ 29,582 $ 17,165 $ 15,362 Non-cash investing and financing transactions: Accrued but unpaid purchases of property and equipment $ 2,868 $ 4,562 $ 4,258 Inventory transfers to property and equipment $ 552 $ 1,142 $ 630 Liabilities for contingent consideration in business combinations $ 26,400 $ 16,238 $ 8,347 Leasehold improvements funded by lease incentives $ 82 $ 1,721 $ 2,242 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Issuance of Common Stock On June 18, 2014, we completed a public offering of our common stock pursuant to which we issued and sold 5,750,000 shares of common stock at a price of $47.75 per share. We received aggregate proceeds of $265.6 million from the offering, net of underwriters’ discounts and commissions, but before deducting approximately $0.7 million of other offering expenses. Common Stock Dividends We did not declare or pay any dividends on our common stock during the years ended January 31, 2017, 2016, and 2015. Under the terms of our Credit Agreement, we are subject to certain restrictions on declaring and paying dividends on our common stock. Share Repurchase Program On March 29, 2016, we announced that our board of directors had authorized a share repurchase program whereby we may make up to $150 million in purchases of our outstanding shares of common stock over the two years following the date of announcement. Under the share repurchase program, purchases can be made from time to time using a variety of methods, which may include open market purchases. The specific timing, price and size of purchases depends on prevailing stock prices, general market and economic conditions, and other considerations, including the amount of cash generated in the U.S. and other potential uses of cash, such as acquisitions. Purchases may be made through a Rule 10b5-1 plan pursuant to pre-determined metrics set forth in such plan. The authorization of the share repurchase program does not obligate us to acquire any particular amount of common stock, and the program may be suspended or discontinued at any time. 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, 2017, we held approximately 1,654,000 shares of treasury stock with a cost of $57.1 million . At January 31, 2016, we held approximately 348,000 and shares of treasury stock with a cost of $10.3 million . During the year ended January 31, 2017 we acquired approximately 1,306,000 shares of treasury stock with a cost of $46.9 million under the aforementioned share repurchase program. We did not acquire any shares of treasury stock during the year ended January 31, 2016. During the year ended January 31, 2015, we acquired approximately 46,000 shares of treasury stock from directors, executive officers, and other employees at a cost of $2.2 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. 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 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, 2017 and 2016: (in thousands) Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges Unrealized Gain on Interest Rate Swap Designated as Hedge Unrealized Gains (Losses) on Available-for-Sale Investments Foreign Currency Translation Adjustments Total Accumulated other comprehensive (loss) income at January 31, 2015 $ (7,992 ) $ — $ 101 $ (86,444 ) $ (94,335 ) Other comprehensive loss before reclassifications (992 ) — (211 ) (27,769 ) (28,972 ) Amounts reclassified out of accumulated other comprehensive income (loss) 7,113 — — — 7,113 Net other comprehensive income (loss) 6,121 — (211 ) (27,769 ) (21,859 ) Accumulated other comprehensive loss at January 31, 2016 (1,871 ) — (110 ) (114,213 ) (116,194 ) Other comprehensive income (loss) before reclassifications 3,585 632 110 (41,850 ) (37,523 ) Amounts reclassified out of accumulated other comprehensive income (loss) (1,139 ) — — — (1,139 ) Net other comprehensive income (loss) 2,446 632 110 (41,850 ) (38,662 ) Accumulated other comprehensive income (loss) at January 31, 2017 $ 575 $ 632 $ — $ (156,063 ) $ (154,856 ) 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, 2017 , 2016, and 2015 were as follows: Year Ended January 31, Financial Statement Location (in thousands) 2017 2016 2015 Unrealized (gains) losses on derivative financial instruments: Foreign currency forward contracts $ (108 ) $ 718 $ 190 Cost of product revenue (115 ) 672 159 Cost of service and support revenue (651 ) 4,556 1,050 Research and development, net (383 ) 2,205 458 Selling, general and administrative (1,257 ) 8,151 1,857 Total, before income taxes 118 (1,038 ) (299 ) Provision (benefit) for income taxes $ (1,139 ) $ 7,113 $ 1,558 Total, net of income taxes |
RESEARCH AND DEVELOPMENT, NET
RESEARCH AND DEVELOPMENT, NET | 12 Months Ended |
Jan. 31, 2017 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT, NET | RESEARCH AND DEVELOPMENT, NET Our gross research and development expenses for the years ended January 31, 2017 , 2016 , and 2015 , were $174.6 million , $181.7 million , and $178.7 million , respectively. Reimbursements from the OCS and other government grant programs amounted to $3.5 million , $4.0 million , and $5.0 million for the years ended January 31, 2017 , 2016 , and 2015 , 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, 2017 , 2016 , and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Capitalized software development costs, net, beginning of year $ 11,992 $ 10,112 $ 8,483 Software development costs capitalized during the year 2,338 5,027 6,083 Amortization of capitalized software development costs (3,341 ) (2,976 ) (1,666 ) Impairments, foreign currency translation and other (1,480 ) (171 ) (2,788 ) Capitalized software development costs, net, end of year $ 9,509 $ 11,992 $ 10,112 During the years ended January 31, 2017 and 2015, we recorded impairments of capitalized software development costs of $1.3 million and $2.6 million , respectively, reflecting strategy changes in certain product development initiatives, due in part to acquisition of technology associated with business combinations. There were no impairments of such costs during the year ended January 31, 2016. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of (loss) income before provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Domestic $ (60,722 ) $ (43,471 ) $ (53,877 ) Foreign 37,248 66,651 75,280 Total (loss) income before provision (benefit) for income taxes $ (23,474 ) $ 23,180 $ 21,403 The provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 consisted of the following: Year Ended January 31, (in thousands) 2017 2016 2015 Current provision (benefit) for income taxes: Federal $ 604 $ (2,997 ) $ 342 State 989 1,300 1,575 Foreign 18,120 8,289 30,415 Total current provision for income taxes 19,713 6,592 32,332 Deferred (benefit) provision for income taxes: Federal (8,179 ) 2,244 (40,007 ) State (842 ) 12 (2,610 ) Foreign (7,920 ) (7,896 ) (4,714 ) Total deferred benefit for income taxes (16,941 ) (5,640 ) (47,331 ) Total provision (benefit) for income taxes $ 2,772 $ 952 $ (14,999 ) We identified misstatements in certain income tax disclosures included in the footnotes to our previously issued consolidated financial statements as of and for the years ended January 31, 2016 and 2015. The misstatements impacted certain components of the income tax rate reconciliation, deferred income tax, and valuation allowance tables, but had no effect on our consolidated statements of operations, comprehensive loss, stockholders’ equity, or cash flows for the years ended January 31, 2016 and 2015, or on our consolidated balance sheet as of January 31, 2016. We assessed the materiality of the misstatements, in accordance with guidance provided in SEC Staff Accounting Bulletin No. 99, and concluded that the misstatements were not material to the applicable consolidated financial statements. The comparative financial information presented in the applicable tables included in this footnote reflects the correction of these immaterial misstatements, details for which appear following those tables. The reconciliation of the U.S. federal statutory rate to our effective tax rate on (loss) income before provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Income tax (benefit) provision at the U.S. federal statutory rate $ (8,215 ) $ 8,115 $ 7,489 State income tax (benefit) provision (312 ) (79 ) (1,739 ) Foreign tax rate differential (5,794 ) (3,068 ) (9,650 ) Tax incentives (3,507 ) (12,293 ) (14,865 ) Valuation allowances (3,640 ) (7,767 ) (15,793 ) Stock-based and other compensation 2,522 3,562 4,222 Non-deductible expenses 5,315 6,061 2,156 Tax credits (112 ) (482 ) (2,461 ) Tax contingencies 5,566 (6,281 ) 14,762 Tax effects of reorganizations and liquidations 975 6,136 — U.S. tax effects of foreign operations 9,542 7,574 1,451 Other, net 432 (526 ) (571 ) Total provision (benefit) for income taxes $ 2,772 $ 952 $ (14,999 ) Effective income tax rate (11.8 )% 4.1 % (70.1 )% The table above reflects the correction of certain amounts previously presented for the years ended January 31, 2016 and 2015. For the year ended January 31, 2016, the favorable impact of valuation allowances was increased by $4.3 million , and the favorable impact of tax contingencies was reduced by $4.3 million . For the year ended January 31, 2015, the favorable impact of valuation allowances was increased by $4.9 million , and the unfavorable impact of tax contingencies was increased by $4.9 million . The effective income tax rates for the years ended January 31, 2016 and 2015 were unchanged. 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 to eight years (generally 10% - 25% , depending on the percentage of foreign investment in the company). 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. These tax incentives decreased our effective tax rate by 12.4% , 51.0% , and 64.0% for the years ended January 31, 2017, 2016, and 2015, respectively. The current year benefit is lower than in prior years as a result of the Company’s taxable loss position in the Cyprus entity. At the lower IP Regime tax rate, the deferred tax benefit of the net operating losses generated by those companies is less than it would be under the higher statutory tax rate. Deferred tax assets and liabilities consisted of the following at January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Deferred tax assets: Accrued expenses $ 10,627 $ 9,553 Deferred revenue 3,953 7,819 Loss carryforwards 125,986 127,718 Tax credits 7,972 8,308 Stock-based and other compensation 20,187 20,213 Capitalized research and development expenses 4,146 4,125 Other, net 2,672 3,783 Total deferred tax assets 175,543 181,519 Deferred tax liabilities: Goodwill and other intangible assets (50,679 ) (53,354 ) Unremitted earnings of foreign subsidiaries (18,215 ) (18,870 ) Other, net (2,344 ) (3,053 ) Total deferred tax liabilities (71,238 ) (75,277 ) Valuation allowance (108,609 ) (115,756 ) Net deferred tax liabilities $ (4,304 ) $ (9,514 ) Recorded as: Long-term deferred tax assets $ 21,510 $ 17,528 Long-term deferred tax liabilities (25,814 ) (27,042 ) Net deferred tax liabilities $ (4,304 ) $ (9,514 ) The table above reflects the correction of certain amounts previously presented as of January 31, 2016. Deferred tax assets resulting from loss carryforwards and total deferred tax assets were both reduced by $12.4 million , with a corresponding $12.4 million decrease to the valuation allowance. Net deferred tax liabilities as of January 31, 2016 were unchanged. At January 31, 2017, we had U.S. federal net operating loss ("NOL") carryforwards of approximately $661.0 million . These loss carryforwards expire in various years ending from January 31, 2019 to January 31, 2036. We had state NOL carryforwards of approximately $248.6 million , expiring in years ending from January 31, 2018 to January 31, 2035. We had foreign NOL carryforwards of approximately $53.8 million . At January 31, 2017, all but $8.8 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. The NOL carryforwards for tax return purposes are different from the NOL carryforwards for financial statement purposes, primarily due to the reduction of NOL carryforwards for financial statement purposes under the authoritative guidance on accounting for uncertainty in income taxes. We had U.S. federal, state, and foreign tax credit carryforwards of approximately $12.1 million at January 31, 2017, the utilization of which is subject to limitation. At January 31, 2017, approximately $3.0 million of these tax credit carryforwards may be carried forward indefinitely. The balance of $9.1 million expires in various years ending from January 31, 2019 to January 31, 2034. As of January 31, 2017, we have not provided for deferred taxes on the excess of financial reporting over the tax basis of investments in certain foreign subsidiaries in the amount of $479.8 million because we plan to reinvest such earnings indefinitely outside the United States. If these earnings were repatriated in the future, additional income and withholding tax expense would be incurred. 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 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 $108.6 million and $115.8 million at January 31, 2017 and 2016, respectively. Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2017 and 2016: Year Ended January 31, (in thousands) 2017 2016 Valuation allowance, beginning of year $ (115,756 ) $ (123,837 ) Provision (benefit) for income taxes 3,640 7,767 Additional paid-in capital 3,204 (59 ) Currency translation adjustment 303 373 Valuation allowance, end of year $ (108,609 ) $ (115,756 ) The table above reflects the correction of certain amounts previously presented for the year ended January 31, 2016. The valuation allowance at January 31, 2015 year was reduced by $8.1 million , and the reduction in the valuation allowance resulting from the provision for income taxes for the year ended January 31, 2016 was increased by $4.3 million , resulting in a $12.4 million net decrease to the valuation allowance as of January 31, 2016. In accordance with the authoritative guidance for accounting for stock-based compensation, we use a "with-and-without" approach to applying the intra-period allocation rules in accordance with accounting for income taxes. Under this approach, the windfall tax benefit is calculated based on the incremental tax benefit received from deductions related to stock-based compensation. The amount is measured by calculating the tax benefit both "with" and "without" the excess tax deduction; the resulting difference between the two calculations is considered the windfall. We did not recognize windfall benefits in our U.S. federal income tax (benefit) provisions for the years ended January 31, 2017, 2016, and 2015. 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, 2017, 2016, and 2015, the aggregate changes in the balance of gross unrecognized tax benefits were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Gross unrecognized tax benefits, beginning of year $ 142,271 $ 159,648 $ 145,408 Increases related to tax positions taken during the current year 11,034 9,465 15,522 Increases as a result of business combinations — 985 4,744 Increases related to tax positions taken during prior years 585 2,514 1,927 Increases (decreases) related to foreign currency exchange rates 648 (741 ) (3,900 ) Reductions for tax positions of prior years (5,094 ) (13,613 ) (3,440 ) Reductions for settlements with tax authorities (145 ) (13,811 ) — Lapses of statutes of limitations (660 ) (2,176 ) (613 ) Gross unrecognized tax benefits, end of year $ 148,639 $ 142,271 $ 159,648 As of January 31, 2017, we had $148.6 million of unrecognized tax benefits, of which $143.0 million represents the amount that, if recognized, would impact the effective income tax rate in future periods. We recorded $0.5 million of tax expense, $4.4 million of tax benefit, and $1.9 million of tax expense for interest and penalties related to uncertain tax positions in our provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015, respectively. Accrued liabilities for interest and penalties were $3.9 million and $3.3 million at January 31, 2017 and 2016, respectively. Interest and penalties (expense and/or benefit) are recorded as a component of the provision (benefit) 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, 2014. 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, 2015. In the U.S., our federal returns are no longer subject to income tax examination for years prior to January 31, 2014. 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, 2017, income tax returns are under examination in the following significant tax jurisdictions: Jurisdiction Tax Years Canada January 31, 2011 - January 31, 2012 United Kingdom December 31, 2006; January 31, 2008 India March 31, 2006 - March 31, 2008; March 31, 2010 - March 31, 2013, March 31, 2015 Israel January 31, 2014 - January 31, 2016 We regularly assess the adequacy of our provisions for income tax contingencies. As a result, we may adjust the reserves for unrecognized 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 expiration. We believe that it is reasonably possible that the total amount of unrecognized tax benefits at January 31, 2017 could decrease by approximately $3.2 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional taxes, the adjustment of certain deferred taxes including the need for additional valuation allowances and the recognition of tax benefits. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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, 2017 and 2016: January 31, 2017 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 175 $ — $ — Foreign currency forward contracts — 1,646 — Interest rate swap agreement — 1,429 — Total assets $ 175 $ 3,075 $ — Liabilities: Foreign currency forward contracts $ — $ 1,246 $ — Interest rate swap agreement — 408 — Contingent consideration - business combinations — — 52,733 Option to acquire noncontrolling interests of consolidated subsidiaries — — 3,550 Total liabilities $ — $ 1,654 $ 56,283 January 31, 2016 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 12,137 $ — $ — Commercial paper and corporate debt securities, classified as cash and cash equivalents — 5,030 — Short-term investments, classified as available-for-sale — 52,932 — Foreign currency forward contracts — 113 — Total assets $ 12,137 $ 58,075 $ — Liabilities: Foreign currency forward contracts $ — $ 2,377 $ — Contingent consideration - business combinations — — 22,391 Total liabilities $ — $ 2,377 $ 22,391 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, 2017 and 2016 : Year Ended January 31, (in thousands) 2017 2016 Fair value measurement, beginning of year $ 22,391 $ 14,507 Contingent consideration liabilities recorded for business combinations 26,400 16,238 Changes in fair values, recorded in operating expenses 7,255 (910 ) Payments of contingent consideration (3,313 ) (7,444 ) Fair value measurement, end of year $ 52,733 $ 22,391 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 other liabilities and do not recognize noncontrolling interests in these subsidiaries. The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the year ended January 31, 2017 : (in thousands) Year Ended Fair value measurement, beginning of year $ — Acquisition of option to acquire noncontrolling interests of consolidated subsidiaries 3,134 Change in fair value, recorded in operating expenses 416 Fair value measurement, end of year $ 3,550 There were no transfers between levels of the fair value measurement hierarchy during the years ended January 31, 2017 and 2016. Fair Value Measurements Money Market Funds - We value our money market funds using quoted active market prices for such funds. Short-term Investments, Corporate Debt Securities, and Commercial Paper - The fair values of short-term investments, as well as corporate debt securities and commercial paper classified as cash equivalents, are estimated using observable market prices for identical securities that are traded in less-active markets, if available. When observable market prices for identical securities are not available, we value these short-term investments using non-binding market price quotes from brokers which we review for reasonableness using observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model. Foreign Currency Forward Contracts - The estimated fair value of foreign currency forward contracts is based on quotes received from the counterparties thereto. These quotes are reviewed for reasonableness by discounting the future estimated cash flows under the contracts, considering the terms and maturities of the contracts and market foreign currency exchange rates using readily observable market prices for similar contracts. Interest Rate Swap Agreement - The fair value of our interest rate swap agreement is based in part on data received from the counterparty, and represents the estimated amount we would receive or pay to settle the agreement, taking into consideration current and projected future interest rates as well as the creditworthiness of the parties, all of which can be validated through readily observable data from external sources. Contingent Consideration - Business Combinations - The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. We remeasure the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within selling, general, and administrative expenses. Increases or decreases in discount rates would have inverse impacts on the related fair value measurements, while favorable or unfavorable changes in expectations of achieving performance targets would result in corresponding increases or decreases in the related fair value measurements. We utilized discount rates ranging from 3.0% to 20.0% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2017 . We utilized discount rates ranging from 3.0% to 41.7% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2016 . Option to Acquire Noncontrolling Interests of Consolidated Subsidiaries - The fair value of the option is determined primarily by using the income approach, which discounts expected future cash flows to present value using estimates and assumptions determined by management. This fair value measurement is based upon significant inputs not observable in the market. We remeasure the fair value of the option at each reporting period, and any changes in fair value are recorded within selling, general, and administrative expenses. We utilized a discount rate of 14.0% in our calculation of the estimated fair value of the option as of January 31, 2017 . Other Financial Instruments The carrying amounts of accounts receivable, 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 $410 million and $411 million at January 31, 2017 and 2016, respectively. The estimated fair values of the term loans are based upon indicative bid and ask prices as determined by the agent responsible for the syndication of our term loans. We consider these inputs to be within Level 3 of the fair value hierarchy because we cannot reasonably observe activity in the limited market in which participations in our term loans are traded. The indicative prices provided to us as at each of January 31, 2017 and 2016 did not significantly differ from par value. The estimated fair value of our revolving credit borrowings, if any, is based upon indicative market values provided by one of our lenders. We had no revolving credit borrowings at January 31, 2017 and 2016. The estimated fair values of our Notes were approximately $381 million and $367 million at January 31, 2017 and 2016, 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 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". |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 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. Our joint venture, which has a Singapore dollar functional currency, also utilizes foreign exchange forward contracts to manage its exposure to exchange rate fluctuations related to settlements of liabilities denominated in U.S. dollars. 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. Our outstanding foreign currency forward contracts had notional amounts of $144.0 million and $136.4 million as of January 31, 2017 and 2016, respectively. Interest Rate Swap Agreement 4.143% and receive variable interest of three-month LIBOR (subject to a minimum of 0.75% ), plus a spread of 2.75% , on a notional amount of $200.0 million . The effective date of the agreement was November 1, 2016 , and settlements with the counterparty occur on a quarterly basis, beginning on February 1, 2017. The agreement will terminate on September 6, 2019 . Throughout the term of the interest rate swap agreement, if we elect three-month LIBOR at the term loans' periodic interest rate reset dates for at least $200.0 million of our term loans, as we did on November 1, 2016 and February 1, 2017, the annual interest rate on $200.0 million of our term loans will be fixed at 4.143% for the applicable interest rate period. 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, 2017 and 2016 were as follows: January 31, (in thousands) Balance Sheet Classification 2017 2016 Derivative assets: Foreign currency forward contracts: Designated as cash flow hedges Prepaid expenses and other current assets $ 927 $ — Not designated as hedging instruments Prepaid expenses and other current assets 719 113 Interest rate swap agreement, designated as a cash flow hedge Other assets 1,429 — Total derivative assets $ 3,075 $ 113 Derivative liabilities: Foreign currency forward contracts: Designated as cash flow hedges Accrued expenses and other current liabilities $ 288 $ 2,108 Not designated as hedging instruments Accrued expenses and other current liabilities 958 239 Other liabilities — 30 Interest rate swap agreement, designated as a cash flow hedge Accrued expenses and other current liabilities 408 — Total derivative liabilities $ 1,654 $ 2,377 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, 2017 , 2016 , and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Net gains (losses) recognized in Other comprehensive (loss) income: Foreign currency forward contracts $ 575 $ (1,871 ) $ (7,992 ) Interest rate swap agreement 632 — — $ 1,207 $ (1,871 ) $ (7,992 ) Net gains (losses) reclassified from Other comprehensive (loss) income to the consolidated statements of operations: Foreign currency forward contracts $ 1,257 $ (8,151 ) $ (1,857 ) For information regarding the line item locations of the net gains (losses) on foreign currency forward contracts reclassified out of Other comprehensive (loss) income into the consolidated statements of operations, see Note 8, "Stockholders' Equity". There were no gains or losses from ineffectiveness of these cash flow hedges recorded for the years ended January 31, 2017 , 2016, and 2015. 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, 2017 mature within twelve months, and therefore we expect all such gains to be reclassified into earnings within the next twelve months. The $0.6 million net unrealized gain recorded in our accumulated other comprehensive loss at January 31, 2017 for the interest rate swap agreement includes $0.4 million of net losses expected 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, 2017 , 2016 , and 2015 were as follows: Classification in Consolidated Statements of Operations Year Ended January 31, (in thousands) 2017 2016 2015 Foreign currency forward contracts Other income (expense), net $ (323 ) $ 394 $ 3,986 |
STOCK-BASED COMPENSATION AND OT
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS | 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”), restricted stock awards (“RSAs”), performance awards, 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/or 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 occasionally may issue treasury shares. 2015 Stock-Based Compensation Plan On June 25, 2015, our stockholders approved the Verint Systems Inc. 2015 Long-Term Stock Incentive Plan (the "2015 Plan"). which authorizes our board of directors to provide equity-based compensation in various forms, including RSUs, RSAs, performance awards, and other stock-based awards. Subject to adjustment as provided in the 2015 Plan, an aggregate of up to 9,700,000 shares of our common stock may be issued or transferred in connection with awards under the 2015 Plan. Each stock option or stock-settled stock appreciation right granted under the 2015 Plan will reduce the available plan capacity by one share and each other award denominated in shares that is granted under the 2015 Plan will reduce the available plan capacity by 2.29 shares. Upon approval of the 2015 Plan, additional awards were no longer permitted under our other stock-based compensation plans. Awards outstanding at June 25, 2015 under our prior stock-based compensation plans were not impacted by approval of the 2015 Plan. 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, 2017 , 2016 , and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Component of (loss) income before provision (benefit) for income taxes: Cost of revenue - product $ 1,290 $ 1,466 $ 1,228 Cost of revenue - service and support 7,297 5,719 5,028 Research and development, net 11,637 9,195 6,421 Selling, general and administrative 45,384 48,169 41,781 Total stock-based compensation expense 65,608 64,549 54,458 Income tax benefits related to stock-based compensation (before consideration of valuation allowances) 15,752 14,385 12,364 Total stock-based compensation, net of taxes $ 49,856 $ 50,164 $ 42,094 Total stock-based compensation expense by type of award was as follows for the years ended January 31, 2017 , 2016 , and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Restricted stock units and restricted stock awards $ 55,123 $ 58,028 $ 46,634 Stock bonus program and bonus share program 10,298 6,359 7,680 Total equity-settled awards 65,421 64,387 54,314 Phantom stock units (cash-settled awards) 187 162 144 Total stock-based compensation expense $ 65,608 $ 64,549 $ 54,458 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. Net excess tax benefits resulting from our Stock Plans were $0.7 million , $0.5 million , and $0.3 million for the years ended January 31, 2017, 2016, and 2015, respectively. Excess tax benefits represent a reduction in income taxes, otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits, and are recorded as increases to additional paid-in capital. Restricted Stock Units and Restricted Stock Awards We periodically award RSUs and RSAs 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. The principal difference between these instruments is that 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. Both RSAs and RSUs are subject to certain restrictions and forfeiture provisions prior to vesting. We periodically award RSUs to executive officers and certain employees that vest upon the achievement of specified performance goals or market conditions (“PRSUs”). An accounting grant date for PRSUs is generally not established until the performance vesting condition has been defined and communicated and for some PRSUs, the performance goals are established by our board subsequent to the award date. We separately recognize compensation expense for each tranche of a PRSU award as if it were a separate award with its own vesting date. For certain PRSUs, 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 PRSUs 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 PRSUs, if necessary. All compensation expense for PRSUs with market conditions is recognized if the requisite service period is fulfilled, even if the market condition is not satisfied. RSUs that are expected to settle with cash payments upon vesting, if any, are reflected as liabilities on our consolidated balance sheets. Such RSU's were insignificant at January 31, 2017 and 2016. The following table summarizes activity for RSUs (including PRSUs) and RSAs under the Plans for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, 2017 2016 2015 (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 2,649 $ 54.57 2,545 $ 40.96 2,250 $ 33.77 Granted 1,870 $ 35.33 1,729 $ 62.62 1,504 $ 46.11 Released (1,433 ) $ 47.98 (1,312 ) $ 39.75 (1,009 ) $ 33.11 Forfeited (344 ) $ 52.20 (313 ) $ 50.56 (200 ) $ 38.46 Ending balance 2,742 $ 45.20 2,649 $ 54.57 2,545 $ 40.96 With respect of 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). Further details appear below under “Stock Bonus Program”. Activity for performance awards under the Plans for the years ended January 31, 2017, 2016, and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Beginning balance 332 497 477 Granted 312 195 250 Released (159 ) (239 ) (189 ) Forfeited (47 ) (121 ) (41 ) Ending balance 438 332 497 As of January 31, 2017, unrecognized compensation expense related to unvested RSUs expected to vest subsequent to January 31, 2017 was approximately $70.2 million , with remaining weighted-average vesting periods of approximately 1.7 years , over which such expense is expected to be recognized. The unrecognized compensation expense does not include compensation expense of up to $2.1 million , related to shares for which a grant date has been established but the requisite service period has not begun. The total fair values of RSUs vested during the years ended January 31, 2017, 2016, and 2015 were $68.7 million , $52.2 million , and $33.4 million , respectively. Stock Options We did not grant stock options during the years ended January 31, 2017 , 2016 , and 2015 . The following table summarizes stock option activity under the Plans for the years ended January 31, 2017 , 2016 , and 2015 : Year Ended January 31, 2017 2016 2015 (in thousands, except exercise prices) Stock Options Weighted-Average Exercise Price Stock Options Weighted-Average Exercise Price Stock Options Weighted-Average Exercise Price Beginning balance 3 $ 9.59 9 $ 28.74 516 $ 34.60 Exercised (1 ) $ 8.71 (6 ) $ 36.10 (505 ) $ 34.71 Expired — $ — — $ — (2 ) $ 23.13 Ending balance 2 $ 10.09 3 $ 9.59 9 $ 28.74 Stock options exercisable 2 $ 10.09 3 $ 9.59 9 $ 28.74 The following table summarizes certain key data for exercised options: Year Ended January 31, (in thousands) 2017 2016 2015 Intrinsic value of options exercised $ 24 $ 164 $ 8,759 Cash received from the exercise of stock options $ 8 $ 232 $ 17,606 Tax benefits realized from stock options exercised $ 6 $ 107 $ 2,306 Fair value of options vested $ 35 $ 56 $ 178 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, 2017, 2016, and 2015 was not significant. Stock Bonus Program Under the terms of our stock bonus program, eligible employees may elect 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 remained 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 to be 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, as described above. The following table summarizes certain key data for the stock bonus program for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands, except discount) 2017 2016 2015 Maximum stock bonus program shares — 125 125 Discount — % — % 15 % Shares in lieu of earned cash bonus - granted and released 25 43 82 Shares in respect of discount: Granted — 7 12 Released — 5 9 Shares granted in a particular year, as presented in the table above, represent the shares earned under the prior year's stock bonus program authorization. Awards under the stock bonus program for the performance period ended January 31, 2017 will consist of shares earned in respect of executive officer incentive plans and will be awarded without a discount, and are expected to be issued during the first half of the year ending January 31, 2018. In March 2017, our board of directors approved up to 125,000 shares of common stock, and a discount of 15% , for awards under our stock bonus program for the year ending January 31, 2018. Executive officers will be permitted to participate in this program for the year ending January 31, 2018, but only 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 15% discount will be subject to a one-year vesting period. Bonus Share Program In February 2015, the board of directors authorized an additional program under which we may provide discretionary year-end bonuses to employees in the form of shares of common stock. Unlike the stock bonus program, there is no enrollment for this program and no discount feature. Similar to the accounting for the stock bonus program, obligations for these bonuses are accounted for as liabilities, because the obligations are based predominantly on fixed monetary amounts that are generally known, to be settled with a variable number of shares of common stock. For bonuses in respect of the year ended January 31, 2015, the board of directors authorized the use of up to approximately $4.7 million in shares for bonuses under this program to employees other than executive officers, subject to certain limitations on the aggregate number of shares that may be issued. During the year ended January 31, 2016, approximately 74,000 shares of common stock were awarded and released under the bonus share program in respect of the performance period ended January 31, 2015. For bonuses in respect of the year ended January 31, 2016, the board of directors approved the use of up to 75,000 shares of common stock, plus any shares not used under the stock bonus program in respect of the year ended January 31, 2016, for awards under this program (not to exceed 200,000 shares in aggregate between the two programs). During the year ended January 31, 2017, approximately 171,000 shares of common stock were awarded and released under the bonus share program in respect of the performance period ended January 31, 2016. Our board of directors has authorized up to 300,000 shares of common stock for awards under this program in respect of the performance period ended January 31, 2017. The combined accrued liabilities for the stock bonus program and the bonus share program were $10.0 million and $6.6 million at January 31, 2017 and 2016, respectively. 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 $2.6 million , $2.2 million , and $2.1 million for the years ended January 31, 2017, 2016, and 2015, 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 the years ended January 31, 2017, 2016, and 2015 were $6.4 million , $7.2 million , and $6.8 million , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jan. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the years ended January 31, 2016 and 2015, our joint venture incurred certain operating expenses, including office rent and other administrative costs, under arrangements with one of its then noncontrolling shareholders. These expenses totaled $0.4 million and $0.5 million for the years ended January 31, 2016 and 2015, respectively. Revenue recognized by our joint venture from this noncontrolling shareholder was $0.3 million for the year ended January 31, 2016, and was not significant for the year ended January 31, 2015. The counterparty to these transactions is no longer a noncontrolling shareholder of our joint venture. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating and Capital Leases We lease office, manufacturing, and warehouse space, as well as certain equipment, under non-cancelable operating lease agreements. We have also periodically entered into capital leases. Terms of the leases, including renewal options and escalation clauses, vary by lease. Rent expense incurred under all operating leases was $25.6 million , $19.4 million , and $17.2 million for the years ended January 31, 2017, 2016, and 2015, respectively. As of January 31, 2017, our minimum future rent obligations under non-cancelable operating leases with initial or remaining terms in excess of one year were as follows: (in thousands) Operating Years Ending January 31, Leases 2018 $ 25,447 2019 24,138 2020 17,865 2021 15,460 2022 14,335 Thereafter 56,945 Total $ 154,190 We sublease certain space in our facilities to third parties. As of January 31, 2017, total expected future sublease income was $0.6 million and will range from $0.2 million to $0.4 million on an annual basis through August 2018. 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, 2017, our unconditional purchase obligations totaled approximately $109.8 million , the majority of which were scheduled to occur within the subsequent twelve months. Due to the relatively short life of the obligations, the carrying value approximates the fair value of these obligations at January 31, 2017. Warranty Liability The following table summarizes the activity in our warranty liability, which is included in accrued expenses and other current liabilities in the consolidated balance sheets, for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Warranty liability, beginning of year $ 826 $ 633 $ 706 Provision charged to (credited against) expenses 797 473 (60 ) Warranty charges (658 ) (278 ) — Foreign currency translation and other (3 ) (2 ) (13 ) Warranty liability, end of year $ 962 $ 826 $ 633 We accrue for warranty costs as part of our cost of revenue based on associated product costs, labor costs, and associated overhead. Our Customer Engagement solutions are sold with a warranty of generally one year on hardware and 90 days for software. Our Cyber Intelligence solutions are sold with warranties that typically range in duration from 90 days to three years , and in some cases longer. 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 OCS that fund a portion of our research and development expenditures. The Israeli law under which the OCS 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, 2017, we had approximately $92.6 million of outstanding letters of credit and surety bonds relating primarily to these performance guarantees. As of January 31, 2017, 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 On March 26, 2009, legal actions were commenced by Ms. Orit Deutsch, a former employee of our subsidiary, Verint Systems Limited ("VSL"), against VSL in the Tel Aviv Regional Labor Court (Case Number 4186/09) (the “Deutsch Labor Action”) and against CTI in the Tel Aviv District Court (Case Number 1335/09) (the “Deutsch District Action”). In the Deutsch Labor Action, Ms. Deutsch filed a motion to approve a class action lawsuit on the grounds that she purports to represent a class of our employees and former employees who were granted Verint and CTI stock options and were allegedly damaged as a result of the suspension of option exercises during the period from March 2006 through March 2010, during which we did not make periodic filings with the SEC as a result of certain internal and external investigations and reviews of accounting matters discussed in our prior public filings. In the Deutsch District Action, in addition to a small amount of individual damages, Ms. Deutsch is seeking to certify a class of plaintiffs who were allegedly damaged due to their inability to exercise Verint and CTI stock options as a result of alleged negligence by CTI in its financial reporting. The class certification motions do not specify an amount of damages. On February 8, 2010, the Deutsch Labor Action was dismissed for lack of material jurisdiction and was transferred to the Tel Aviv District Court and consolidated with the Deutsch District Action. On March 16, 2009 and March 26, 2009, respectively, legal actions were commenced by Ms. Roni Katriel, a former employee of CTI's former subsidiary, Comverse Limited, against Comverse Limited in the Tel Aviv Regional Labor Court (Case Number 3444/09) (the “Katriel Labor Action”) and against CTI in the Tel Aviv District Court (Case Number 1334/09) (the “Katriel District Action”). In the Katriel Labor Action, Ms. Katriel is seeking to certify a class of plaintiffs who were granted CTI stock options and were allegedly damaged as a result of the suspension of option exercises during an extended filing delay period affecting CTI's periodic reporting discussed in CTI's historical SEC filings. In the Katriel District Action, in addition to a small amount of individual damages, Ms. Katriel is seeking to certify a class of plaintiffs who were allegedly damaged due to their inability to exercise CTI stock options as a result of alleged negligence by CTI in its financial reporting. The class certification motions do not specify an amount of damages. On March 2, 2010, the Katriel Labor Action was transferred to the Tel Aviv District Court, based on an agreed motion filed by the parties requesting such transfer. On April 4, 2012, Ms. Deutsch and Ms. Katriel filed an uncontested motion to consolidate and amend their claims and on June 7, 2012, the District Court allowed Ms. Deutsch and Ms. Katriel to file the consolidated class certification motion and an amended consolidated complaint against VSL, CTI, and Comverse Limited. Following CTI's announcement of its intention to effect the Comverse Share Distribution, on July 12, 2012, the plaintiffs filed a motion requesting that the District Court order CTI to set aside up to $150.0 million in assets to secure any future judgment. The District Court ruled that it would not decide this motion until the Deutsch and Katriel class certification motion was heard. Plaintiffs initially filed a motion to appeal this ruling in August 2012, but subsequently withdrew it in July 2014. Prior to the consummation of the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in us and Comverse) to Comverse or unaffiliated third parties. On October 31, 2012, CTI completed the Comverse Share Distribution, in which it distributed all of the outstanding shares of common stock of Comverse to CTI's shareholders. As a result of the Comverse Share Distribution, Comverse became an independent public company and ceased to be a wholly owned subsidiary of CTI, and CTI ceased to have any material assets other than its equity interest in us. On September 9, 2015, Comverse changed its name to Xura, Inc. On February 4, 2013, we completed the CTI Merger. As a result of the CTI Merger, we have assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the Deutsch District Action and the Katriel District Action. However, under the terms of the Distribution Agreement between CTI and Comverse relating to the Comverse Share Distribution, we, as successor to CTI, are entitled to indemnification from Comverse (now Xura) for any losses we suffer in our capacity as successor-in-interest to CTI in connection with the Deutsch District Action and the Katriel District Action. Following an unsuccessful mediation process, the proceeding before the District Court resumed. On August 28, 2016, the District Court (i) denied the plaintiffs' motion to certify the suit as a class action with respect to all claims relating to Verint stock options and (ii) approved the plaintiffs' motion to certify the suit as a class action with respect to claims of current or former employees of Comverse Limited (now Xura) or VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case and any calculation of damages would be evaluated under New York law. On December 15, 2016, CTI filed with the Supreme Court a motion for leave to appeal the District Court's August 28, 2016 ruling. The plaintiffs filed their response to the motion on February 26, 2017. The plaintiffs did not file an appeal of the District Court's August 28, 2016 ruling. On December 13, 2016, the plaintiffs filed a notice with the District Court regarding the appointment of a new representative plaintiff, David Vaknin, for the current or former employees of VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The plaintiffs must now file an amended statement of claims by May 1, 2017. From time to time we or our subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of our business. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any current claims will have a material effect on our consolidated financial position, results of operations, or cash flows. |
SEGMENT, GEOGRAPHIC, AND SIGNIF
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION | 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 chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer is our CODM. three operating segments: Enterprise Intelligence, Video Intelligence, and Cyber Intelligence. In August 2016, we reorganized into two businesses and, now report our results in two operating segments, Customer Engagement Solutions ("Customer Engagement") and Cyber Intelligence Solutions ("Cyber Intelligence"). Comparative segment financial information provided for prior periods has been recast to conform to this revised segment structure. Operating results by segment for the years ended January 31, 2017 , 2016 , and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Revenue: Customer Engagement: Segment revenue $ 716,163 $ 698,298 $ 742,537 Revenue adjustments (10,266 ) (3,441 ) (29,032 ) 705,897 694,857 713,505 Cyber Intelligence: Segment revenue 356,533 436,343 415,626 Revenue adjustments (324 ) (934 ) (695 ) 356,209 435,409 414,931 Total revenue $ 1,062,106 $ 1,130,266 $ 1,128,436 Segment contribution: Customer Engagement $ 269,017 $ 264,378 $ 286,587 Cyber Intelligence 85,777 133,186 133,203 Total segment contribution 354,794 397,564 419,790 Unallocated expenses, net: Amortization of acquired intangible assets 81,461 78,904 76,167 Stock-based compensation 65,608 64,549 54,458 Other unallocated expenses 190,359 186,259 210,054 Total unallocated expenses, net 337,428 329,712 340,679 Operating income 17,366 67,852 79,111 Other expense, net (40,840 ) (44,672 ) (57,708 ) (Loss) income before provision (benefit) for income taxes $ (23,474 ) $ 23,180 $ 21,403 Revenue adjustments represent revenue of acquired companies which is included within segment revenue reviewed by the CODM, but 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. 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. In connection with our August 2016 change in segmentation, we reallocated goodwill previously assigned to the Video Intelligence operating segment to the Customer Engagement and Cyber Intelligence operating segments. There were no other material changes in the allocations of goodwill and acquired intangible assets by operating segment during the years ended January 31, 2017 , 2016 , and 2015 . Further details regarding the allocations of goodwill and acquired intangible assets by operating segment appear in Note 5, "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 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, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Americas: United States $ 438,034 $ 430,626 $ 430,565 Other 134,111 150,435 157,992 Total Americas 572,145 581,061 588,557 EMEA 322,130 350,217 347,056 APAC 167,831 198,988 192,823 Total revenue $ 1,062,106 $ 1,130,266 $ 1,128,436 Our long-lived assets primarily consist of net property and equipment, goodwill and other intangible assets, capitalized software development costs, deferred cost of revenue, 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, 2017 and 2016 : January 31, (in thousands) 2017 2016 United States $ 37,751 $ 28,572 Israel 25,421 25,350 Other countries 14,379 14,982 Total property and equipment, net $ 77,551 $ 68,904 Significant Customers No single customer accounted for more than 10% of our revenue during the years ended January 31, 2017, 2016 and 2015. |
SELECTED QUARTERLY FINANCIAL IN
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Jan. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Summarized condensed quarterly financial information for the years ended January 31, 2017 and 2016 appears in the following tables: Three Months Ended April 30, July 31, October 31, January 31, (in thousands, except per share data) 2016 2016 2016 2017 Revenue $ 245,424 $ 261,921 $ 258,902 $ 295,859 Gross profit $ 144,730 $ 159,460 $ 155,696 $ 179,591 (Loss) income before (benefit) provision for income taxes $ (15,863 ) $ (10,020 ) $ (4,075 ) $ 6,484 Net (loss) income $ (16,193 ) $ (11,078 ) $ (7,434 ) $ 8,459 Net (loss) income attributable to Verint Systems Inc. $ (17,456 ) $ (11,705 ) $ (8,237 ) $ 8,018 Net (loss) income per common share attributable to Verint Systems Inc. Basic $ (0.28 ) $ (0.19 ) $ (0.13 ) $ 0.13 Diluted $ (0.28 ) $ (0.19 ) $ (0.13 ) $ 0.13 Three Months Ended April 30, July 31, October 31, January 31, (in thousands, except per share data) 2015 2015 2015 2016 Revenue $ 269,536 $ 295,882 $ 284,054 $ 280,794 Gross profit $ 166,363 $ 177,344 $ 178,537 $ 179,116 Income (loss) before (benefit) provision for income taxes $ 1,678 $ (3,139 ) $ 10,021 $ 14,620 Net income (loss) $ 731 $ (5,760 ) $ 8,470 $ 18,787 Net (loss) income attributable to Verint Systems Inc. $ (416 ) $ (7,085 ) $ 7,634 $ 17,505 Net (loss) income per common share attributable to Verint Systems Inc. Basic $ (0.01 ) $ (0.11 ) $ 0.12 $ 0.28 Diluted $ (0.01 ) $ (0.11 ) $ 0.12 $ 0.28 Net (loss) income per common share attributable to Verint Systems Inc. is computed independently for each quarterly period and for the year. Therefore, the sum of quarterly net (loss) income per common share amounts may not equal the amounts reported for the years. Quarterly operating results for the years ended January 31, 2017 and 2016 did not include any material unusual or infrequently occurring items. As is typical for many software and technology companies, our business is subject to seasonal and cyclical factors. In most years, our revenue and operating income are typically highest in the fourth quarter and lowest in the first quarter (prior to the impact of unusual or nonrecurring items). Moreover, revenue and operating income in the first quarter of a new year may be lower than in the fourth quarter of the preceding year, in some years, potentially by a significant margin. In addition, we generally receive a higher volume of orders in the last month of a quarter, with orders concentrated in the later part of that month. We believe that these seasonal and cyclical factors primarily reflects customer spending patterns and budget cycles, as well as the impact of compensation incentive plans for our sales personnel. While seasonal and cyclical factors such as these are common in the software and technology industry, this pattern should not be considered a reliable indicator of our future revenue or financial performance. Many other factors, including general economic conditions, also have an impact on our business and financial results. See "Risk Factors" under Item 1A of this report for a more detailed discussion of factors which may affect our business and financial results. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 31, 2017 | |
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. The noncontrolling interest in this joint venture is reflected within stockholders’ equity on our consolidated balance sheet, but separately from our equity. We have two majority owned subsidiaries for which we hold an option to acquire the noncontrolling interests. We account for the option as an in-substance investment in the noncontrolling common stock of each such subsidiary. We include the fair value of the option within other liabilities and do not recognize noncontrolling interests in these subsidiaries. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated. Investments in companies in which we have less than a 20% ownership interest and can not exercise significant influence are accounted for at cost. |
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. |
Restricted Cash and Bank Time Deposits | Restricted Cash and Restricted Bank Time Deposits Restricted cash 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. As of January 31, 2017, we held no marketable debt securities. As of January 31, 2016, all of our marketable debt securities were classified as “available-for-sale” and were reported at fair value, with unrealized gains and losses reported in stockholders’ equity until disposition or maturity. Investments with maturities in excess of one year are included in other assets. |
Accounts Receivable, Net | Accounts Receivable, Net Trade accounts receivable are recorded at the invoiced amount and are not interest-bearing. Accounts receivable, net, includes unbilled accounts receivable on arrangements recognized under contract accounting methods, representing revenue recognized on contracts for which billing will occur in subsequent periods, in accordance with the terms of the contracts. Unbilled accounts receivable on such contracts were $39.7 million and $46.6 million at January 31, 2017 and 2016, respectively. Substantially all unbilled accounts receivable at January 31, 2017 are expected to be collected during the year ending January 31, 2018. Under most contracts, unbilled accounts receivable are typically billed and collected within one year of revenue recognition. However, as of January 31 2017, we had unbilled accounts receivable on certain complex projects with a long-standing customer for which the underlying billing milestones are still in progress and have remained unbilled for periods in excess of one year, and in some cases, for several years. We have no history of uncollectible accounts with this customer and believe that collection of such amounts is still reasonably assured. We expect billing and collection of these unbilled accounts receivable to occur within the next year. The application of our revenue recognition policies sometimes results in circumstances for which we are unable to recognize revenue relating to sales transactions that have been billed, but the related account receivable has not been collected. For consolidated balance sheet presentation purposes, we do not recognize the deferred revenue or the related account receivable and no amounts appear in our consolidated balance sheets for such transactions. Only to the extent that we have received cash for a given deferred revenue transaction is the amount included in deferred revenue on the consolidated balance sheets. |
Concentrations of Credit Risk | 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, and trade accounts receivable. 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 are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas. One customer accounted for $63.5 million and $70.9 million of our accounts receivable (including both billed and unbilled amounts), at January 31, 2017 and 2016, respectively. This customer is a governmental agency outside of the U.S. which we believe presents insignificant credit risk. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We estimate the collectability of our accounts receivable balances each accounting period and adjust our allowance for doubtful accounts accordingly. Considerable judgment is required in assessing the collectability of accounts receivable, including consideration of the creditworthiness of each customer, their collection history, and the related aging of past due accounts receivable balances. We evaluate specific accounts when we learn that a customer may be experiencing a deteriorating financial condition due to lower credit ratings, bankruptcy, or other factors that may affect its ability to render payment. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. The following table summarizes the activity in our allowance for doubtful accounts for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Allowance for doubtful accounts, beginning of year $ 1,170 $ 1,099 $ 1,187 Provisions charged to expense 1,791 669 423 Amounts written off (1,484 ) (933 ) (461 ) Other, including fluctuations in foreign exchange rates 365 335 (50 ) Allowance for doubtful accounts, end of year $ 1,842 $ 1,170 $ 1,099 |
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 to seven years. Software is depreciated over periods ranging from three to four years. Buildings are depreciated over periods ranging from ten to twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or 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 regularly evaluated by the enterprise’s chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate resources and in assessing performance. We conduct our business through two operating segments, which are also our reportable segments, Customer Engagement Solutions ("Customer Engagement") and Cyber Intelligence Solutions ("Cyber Intelligence"). Organizing our business through two operating segments allows 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 regularly reviews segment revenue and segment operating contribution when assessing financial results of segments and allocating resources. We measure the performance of our operating segments based upon segment revenue and segment contribution. Segment contribution includes segment revenue and expenses incurred directly by the segment, including material costs, service costs, research and development and selling, marketing, and administrative expenses. We do not allocate certain expenses, which include the majority of general and administrative expenses, facilities and communication expenses, purchasing expenses, manufacturing support and logistic expenses, depreciation and amortization, amortization of capitalized software development costs, stock-based compensation, and special charges such as restructuring costs when calculating segment contribution. These expenses are included within unallocated expenses in our presentation of segment operating results. Revenue from transactions between our operating segments is not material. |
Goodwill, Other Acquired Intangible Assets, and Long-Lived Assets | Goodwill, Other Acquired Intangible Assets, and Long-Lived Assets For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. Goodwill is assigned, at the acquisition date, to those reporting units expected to benefit from the synergies of the combination. We test goodwill for impairment at the reporting unit level, which can be an operating segment or one level below an operating segment, on an annual basis as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. As of January 31, 2017, our reporting units are Customer Engagement, Cyber Intelligence (excluding situational intelligence solutions), and the Situational Intelligence business of our former Video Intelligence segment, which is now 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 our qualitative assessment indicates that goodwill impairment is more likely than not, we perform a two-step impairment test. We test goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference. For reporting units where we perform the two-step process, we utilize some or all of three primary approaches to assess fair value: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using multiples of comparable companies, and (c) a transaction-based approach, using multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of each reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts. Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, non-competition agreements, sales backlog, and in-process research and development. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of ten years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives. |
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, 2017 and 2016. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Our recorded amounts of cash and cash equivalents, restricted cash and restricted bank time deposits, accounts receivable, 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 derive and report our revenue in two categories: (a) product revenue, including sale of hardware products (which include software that works together with the hardware to deliver the product's essential functionality) and licensing of software products, and (b) service and support revenue, including revenue from installation services, post-contract customer support ("PCS"), project management, hosting services, software-as-a-service ("SaaS"), application managed services, product warranties, business advisory consulting and training services. Our revenue recognition policy is a critical component of determining our operating results and is based on a complex set of accounting rules that require us to make significant judgments and estimates. Our customer arrangements typically include several elements, including products, services, and support. Revenue recognition for a particular arrangement is dependent upon such factors as the level of customization within the solution and the contractual delivery, acceptance, payment, and support terms with the customer. Significant judgment is required to conclude whether collectability of fees is reasonably assured and whether fees are fixed or determinable. For arrangements that do not require significant modification or customization of the underlying products, we recognize revenue when we have persuasive evidence of an arrangement, the product has been delivered or the services have been provided to the customer, the sales price is fixed or determinable and collectability is reasonably assured. In addition, our multiple-element arrangements must be carefully reviewed to determine the selling price of each element. Our multiple-element arrangements consist of a combination of our product and service offerings that may be delivered at various points in time. For arrangements within the scope of the multiple-deliverable accounting guidance, a deliverable constitutes a separate unit of accounting when it has stand-alone value and there are no customer-negotiated refunds or return rights for the delivered elements. For multiple-element arrangements comprised only of hardware products containing software components and non-software components and related services, we allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence ("VSOE") if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The total transaction revenue is allocated to the multiple elements based on each element's relative selling price compared to the total selling price. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. Our policy for establishing VSOE for installation, consulting, and training is based upon an analysis of separate sales of services. We utilize either the substantive renewal rate approach or the bell-shaped curve approach to establish VSOE for our PCS offerings, depending upon the business segment, geographical region, or product line. TPE of selling price is established by evaluating largely similar and interchangeable competitor products or services in stand-alone sales to similarly situated customers. However, as most of our products contain a significant element of proprietary technology offering substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as we are unable to reliably determine what competitors products' selling prices are on a stand-alone basis, we are typically not able to determine TPE. If we are unable to determine the selling price because VSOE or TPE does not exist, we determine ESP for the purposes of allocating the arrangement's revenue by considering several external and internal factors including, but not limited to, pricing practices, similar product offerings, margin objectives, geographies in which we offer our products and services, internal costs, competition, and product life cycle. The determination of ESP is made through consultation with and approval by our management, taking into consideration our go-to-market strategies. We have established processes to update ESP for each element, when appropriate, to ensure that it reflects recent pricing experience. For multiple-element arrangements comprised only of software products and related services, a portion of the total purchase price is allocated to the undelivered elements, primarily installation services, PCS, application managed services, business advisory consulting and training services, using VSOE of fair value of the undelivered elements. The remaining portion of the total transaction value is allocated to the delivered software, referred to as the residual method. If we are unable to establish VSOE for the undelivered elements of the arrangement, revenue recognition is deferred for the entire arrangement until all elements of the arrangement are delivered, unless the only undelivered element is PCS, in which case, we recognize the arrangement fee ratably over the PCS period. For multiple-element arrangements that contain software and software-related elements for which we are unable to establish VSOE of one or more elements, we use various available indicators of fair value and apply our best judgment to reasonably classify the arrangement's revenue into product revenue and service revenue for financial reporting purposes. For multiple-element arrangements that are comprised of a combination of software and non-software deliverables, the total transaction value is bifurcated between the software deliverables and non-software deliverables based on the relative selling prices of the software and non-software deliverables as a group. Revenue is then recognized for the software and software-related services following the residual method or ratably over the PCS period if VSOE for PCS does not exist, and for the non-software deliverables following the revenue recognition methodology outlined above for multiple-element arrangements that contain tangible products and other non-software related services. PCS revenue is derived from providing technical software support services and unspecified software updates and upgrades to customers on a when-and-if-available basis. PCS revenue is recognized ratably over the term of the maintenance period, which in most cases is one year. Under the substantive renewal rate approach, we believe it is necessary to evaluate whether both the support renewal rate and term are substantive and whether the renewal rate is being consistently applied to subsequent renewals for a particular customer. We establish VSOE under this approach through analyzing the renewal rate stated in the customer agreement and determining whether that rate is above the minimum substantive VSOE renewal rate established for that particular PCS offering. The minimum substantive VSOE rate is determined based upon an analysis of renewal rates associated with historical PCS contracts. For multiple-element software arrangements that do not contain a stated renewal rate, revenue associated with the entire bundled arrangement is recognized ratably over the PCS term. Multiple-element software arrangements that have a renewal rate below the minimum substantive VSOE rate are deemed to contain a more than insignificant discount element, for which VSOE cannot be established. We recognize aggregate contractual revenue for these arrangements over the period that the customer is entitled to renew its PCS at the discounted rate, but not to exceed the estimated economic life of the product. We evaluate many factors in determining the estimated economic life of our products, including the support period of the product, technological obsolescence, and customer expectations. We have concluded that our software products have estimated economic lives ranging from five to seven years. Under the bell-shaped curve approach of establishing VSOE, we perform VSOE compliance tests to ensure that a substantial majority of our actual PCS renewals are within a narrow range of pricing. Some of our arrangements require significant customization of the product to meet the particular requirements of the customer. For these arrangements, revenue is recognized under contract accounting principles, typically using the percentage-of-completion ("POC") method. Under the POC method, revenue recognition is generally based upon the ratio of hours incurred to date to the total estimated hours required to complete the contract. Profit estimates on long-term contracts are revised periodically based on changes in circumstances, and any losses on contracts are recognized in the period that such losses become evident. If the range of profitability cannot be estimated, but some level of profit is assured, revenue is recognized to the extent of costs incurred, until such time that the project's profitability can be estimated or the services have been completed. In the event some level of profitability on a contract cannot be assured, the completed-contract method of revenue recognition is applied. Our SaaS multiple-element arrangements are typically comprised of subscription and support fees from customers accessing our software, set-up fees, and fees for consultation 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 arrangements. We recognize revenue for subscription and support services over the contract period originating when the subscription service is made available to the customer and the contractual hosting period has commenced. The initial set-up fees are recognized over the longer of the initial contract period or the period the customer is expected to benefit from payment of the up-front fees. Revenue from consultation services is generally recognized as services are completed. Our application managed services revenue is derived from providing services that enhance our customers IT processes and maximize the business benefits of our solutions. Application managed services revenue is recognized ratably over the applicable term which, in most cases, is at least one year. When application managed services is included within a multiple-element arrangement, we utilize the substantive renewal rate approach to establish VSOE. In addition, we perform a budget versus actual time analysis to support our initial estimate of effort required to provide these services. If an arrangement includes customer acceptance criteria, revenue is not recognized until we can objectively demonstrate that the software or services meet the acceptance criteria, or the acceptance period lapses, whichever occurs earlier. If an arrangement containing software elements obligates us to deliver specified future software products or upgrades, revenue related to the software elements under the arrangement is initially deferred and is recognized only when the specified future software products or upgrades are delivered, or when the obligation to deliver specified future software products expires, whichever occurs earlier. We record provisions for estimated product returns in the same period in which the associated revenue is recognized. We base these estimates of product returns upon historical levels of sales returns and other known factors. Actual product returns could be different from our estimates, and current or future provisions for product returns may differ from historical provisions. Concessions granted to customers are recorded as reductions to revenue in the period in which they were granted. The vast majority of our contracts are successfully completed, and concessions granted to customers are minimal in both dollar value and frequency. Product revenue derived from shipments to resellers and original equipment manufacturers ("OEMs") who purchase our products for resale are generally recognized when such products are shipped (on a "sell-in" basis) since we do not expect our resellers or OEMs to carry inventory of our products. We have historically experienced insignificant product returns from resellers and OEMs, and our payment terms for these customers are similar to those granted to our end-users. If a reseller or OEM develops a pattern of payment delinquency, or seeks payment terms longer than generally accepted, we defer the recognition of revenue until the receipt of cash. Our arrangements with resellers and OEMs are periodically reviewed as our business and products change. In instances where revenue is derived from sale of third-party vendor services and we are a principal in the transaction, we record revenue on a gross basis and record costs related to a sale within cost of revenue. Though uncommon, in cases where we act as an agent between the customer and the vendor, revenue is recorded net of costs. Multiple contracts with a single counterparty executed within close proximity of each other are evaluated to determine if the contracts should be combined and accounted for as a single arrangement. We record reimbursements from customers for out-of-pocket expenses as revenue. Shipping and handling fees and expenses that are billed to customers are recognized in revenue and the costs associated with such fees and expenses are recorded in cost of revenue. Historically, these fees and expenses have not been material. Taxes collected from customers and remitted to government authorities are excluded from revenue. |
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, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, and related overhead costs. Where revenue is recognized over multiple periods in accordance with our revenue recognition policies, we have made an accounting policy election whereby cost of product revenue, including hardware and third-party software license fees, are capitalized and recognized in the same period that product revenue is recognized, while installation and other service costs are generally expensed as incurred, except for certain contracts that are accounted for using contract accounting principles. 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. For certain contracts accounted for using contract accounting principles, revisions in estimates of costs and profits are reflected in the accounting period in which the facts that require the revision become known, if such facts become known subsequent to the issuance of the consolidated financial statements. If such facts become known before the issuance of the consolidated financial statements, the requisite revisions in estimates of costs and profits are reflected in the consolidated financial statements. At the time a loss on a contract becomes evident, the entire amount of the estimated loss is accrued. Related contract costs include all direct material and labor costs and those indirect costs related to contract performance. Customer acquisition and origination costs, including sales commissions, are recorded in selling, general and administrative expenses. These costs are expensed as incurred, with the exception of certain sales referral fees in our Cyber Intelligence segment which are capitalized and amortized ratably over the revenue recognition period. |
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 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 OCS which do not require us to pay royalties. Funds received from the OCS 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 internal-use software systems that have reached the application development stage. 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 begins when the preliminary project stage is complete and continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are amortized over estimates 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 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 income tax expense. |
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 translated at each reporting date and at settlement. Gains and losses recognized upon such translations are included within other income (expense), net in the consolidated statements of operations. We recorded net foreign currency losses of $2.7 million , $8.0 million , and $13.4 million for the years ended January 31, 2017, 2016, and 2015, 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) income 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. When stock options are awarded, the fair value of the option is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility and expected term are input factors to that model that can require significant management judgment. Expected volatility is estimated utilizing daily historical volatility over a period that equates to the expected life of the option. The expected life (estimated period of time outstanding) is estimated using the historical exercise behavior of employees. The risk-free interest rate is the implied daily yield currently available on U.S. Treasury issues with a remaining term closely approximating the expected term used as the input to the Black-Scholes option pricing model. |
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 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. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of our 1.50% convertible senior notes due June 1, 2021 (the “Notes”), further details for which appear in Note 6, “Long-Term Debt”. We currently intend 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. R |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Pronouncements Not Yet Effective In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, and ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment. ASU No. 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. While we are still assessing the impact of this standard, we do not believe that the adoption of this guidance will have a material impact on our consolidated financial statements. ASU No. 2017-04 eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. While we are still assessing the impact of this standard, we do not believe that the adoption of this guidance will have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update also requires an entity to disclose the nature of restrictions on its cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU No. 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. We typically have restrictions on certain amounts of cash and cash equivalents, primarily consisting of amounts used to secure bank guarantees in connection with sales contract performance obligations, and expect to continue to have similar restrictions in the future. We currently report changes in such restricted amounts as cash flows from investing activities on our consolidated statement of cash flows. This standard will change that presentation. We are currently reviewing this standard to assess other potential impacts on our future consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance with the intent of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, including adoption in an interim period. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). This new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The new standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. We are currently reviewing this standard to assess the impact on our future consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), which amends the accounting for stock-based compensation and requires excess tax benefits and deficiencies to be recognized as a component of income tax expense rather than stockholders' equity. This guidance also requires excess tax benefits to be presented as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate expected forfeitures or to account for them as they occur. ASU No. 2016-09 is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The most significant impact of the pending adoption of this guidance on our future consolidated financial statements, will largely be dependent upon the intrinsic value of our stock-based compensation awards at the time of vesting and may result in more variability in our effective tax rates and net (loss) income, and may also impact the calculation of common stock equivalents, which are used in calculating diluted net income per share. In addition, upon adoption of the new guidance, we will classify excess tax benefits or deficits as operating activities in the consolidated statements of cash flows rather than as financing activities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will require both types of leases to be recognized on the balance sheet. The new guidance is effective for all periods beginning after December 15, 2018 and we are currently evaluating the effects that the adoption of ASU No. 2016-02 will have on our consolidated financial statements, but anticipate that the new guidance will significantly impact our consolidated financial statements given our significant number of leases. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As originally issued, this guidance was effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In July 2015, the FASB deferred the effective date by one year, to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. The standard allows entities to apply the standard retrospectively to each prior reporting period presented (“full retrospective adoption”) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (“modified retrospective adoption”). We currently expect to adopt ASU No. 2014-09 using the modified retrospective option. We are continuing to review the impacts of adopting ASU No. 2014-09 to our consolidated financial statements. Based upon our preliminary assessments, we currently do not expect the new standard to materially impact the amount or timing of the majority of revenue recognized in our consolidated financial statements. We are still assessing the impact on the timing of revenue recognized under certain contracts under which customized solutions are delivered over extended periods of time. In addition, the timing of cost of revenue recognition for certain customer contracts requiring significant customization will change, because unlike current guidance, the new guidance precludes the deferral of costs simply to obtain an even profit margin over the contract term. We are also assessing the new standard’s requirement to capitalize costs associated with obtaining customer contracts, including commission payments, which are currently expensed as incurred. Under the new standard, these costs will be deferred on our consolidated balance sheet. We are evaluating the period over which to amortize these capitalized costs. In addition, for sales transactions that have been billed, but for which the recognition of revenue has been deferred and the related account receivable has not been collected, we currently do not recognize deferred revenue or the related accounts receivable on our consolidated balance sheet. Under the new standard, we will record accounts receivable and related contract liabilities for noncancelable contracts with customers when the right to consideration is unconditional, which we currently expect will result in increases in accounts receivable and contract liabilities (currently presented as deferred revenue) on our consolidated balance sheet, compared to our current presentation. Our preliminary assessments of the impacts to our consolidated financial statements of adopting this new standard are subject to change. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Allowance for Doubtful Accounts | The following table summarizes the activity in our allowance for doubtful accounts for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Allowance for doubtful accounts, beginning of year $ 1,170 $ 1,099 $ 1,187 Provisions charged to expense 1,791 669 423 Amounts written off (1,484 ) (933 ) (461 ) Other, including fluctuations in foreign exchange rates 365 335 (50 ) Allowance for doubtful accounts, end of year $ 1,842 $ 1,170 $ 1,099 |
NET (LOSS) INCOME PER COMMON 27
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted 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, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands, except per share amounts) 2017 2016 2015 Net (loss) income $ (26,246 ) $ 22,228 $ 36,402 Net income attributable to noncontrolling interest 3,134 4,590 5,471 Net (loss) income attributable to Verint Systems Inc. $ (29,380 ) $ 17,638 $ 30,931 Weighted-average shares outstanding: Basic 62,593 61,813 58,096 Dilutive effect of employee equity award plans — 1,108 1,278 Dilutive effect of 1.50% convertible senior notes — — — Dilutive effect of warrants — — — Diluted 62,593 62,921 59,374 Net (loss) income per common share attributable to Verint Systems Inc.: Basic $ (0.47 ) $ 0.29 $ 0.53 Diluted $ (0.47 ) $ 0.28 $ 0.52 |
Schedule of anti-dilutive securities | 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) 2017 2016 2015 Stock options and restricted stock-based awards 1,097 596 226 1.50% convertible senior notes 6,205 6,205 3,876 Warrants 6,205 6,205 3,876 |
CASH, CASH EQUIVALENTS AND SH28
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments [Table Text Block] | The following tables summarize our cash, cash equivalents, and short-term investments as of January 31, 2017 and 2016: January 31, 2017 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 307,188 $ — $ — $ 307,188 Money market funds 175 — — 175 Total cash and cash equivalents $ 307,363 $ — $ — $ 307,363 Short-term investments: Bank time deposits $ 3,184 $ — $ — $ 3,184 Total short-term investments $ 3,184 $ — $ — $ 3,184 January 31, 2016 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 334,938 $ — $ — $ 334,938 Money market funds 12,137 — — 12,137 Commercial paper and corporate debt securities 5,054 — (24 ) 5,030 Total cash and cash equivalents $ 352,129 $ — $ (24 ) $ 352,105 Short-term investments: Commercial paper and corporate debt securities (available-for-sale) $ 53,018 $ — $ (86 ) $ 52,932 Bank time deposits 3,050 — — 3,050 Total short-term investments $ 56,068 $ — $ (86 ) $ 55,982 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocations for the Year Ended January 31, 2017 | The following table sets forth the components and the allocation of the purchase price for our acquisitions of Contact Solutions and OpinionLab. (in thousands) Contact Solutions OpinionLab Components of Purchase Price: Cash paid at closing $ 66,915 $ 56,355 Fair value of contingent consideration — 15,000 Other purchase price adjustments 2,518 — Total purchase price $ 69,433 $ 71,355 Allocation of Purchase Price: Net tangible assets (liabilities): Accounts receivable $ 8,102 $ 748 Other current assets, including cash acquired 2,392 10,625 Property and equipment, net 7,007 298 Other assets 1,904 2,036 Current and other liabilities (4,943 ) (1,600 ) Deferred revenue - current and long-term (642 ) (3,082 ) Deferred Income Taxes - current and long-term — (9,995 ) Net tangible assets (liabilities) 13,820 (970 ) Identifiable intangible assets: Customer relationships 18,000 19,100 Developed technology 13,100 10,400 Trademarks and trade names 2,400 1,800 Total identifiable intangible assets 33,500 31,300 Goodwill 22,113 41,025 Total purchase price allocation $ 69,433 $ 71,355 |
Schedule of Purchase Price Allocations - Acquisitions for the Year Ended January 31, 2016 | 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, 2016, including adjustments identified subsequent to the respective valuation dates, none of which were material: (in thousands) Amount Components of Purchase Prices: Cash $ 33,222 Fair value of contingent consideration 16,237 Total purchase prices $ 49,459 Allocation of Purchase Prices: Net tangible assets (liabilities): Accounts receivable $ 992 Other current assets, including cash acquired 4,274 Other assets 395 Current and other liabilities (3,037 ) Deferred revenue - current and long-term (1,872 ) Deferred income taxes - current and long-term (2,922 ) Net tangible liabilities (2,170 ) Identifiable intangible assets: Customer relationships 1,212 Developed technology 20,300 Trademarks and trade names 300 In-process research and development 1,100 Total identifiable intangible assets 22,912 Goodwill 28,717 Total purchase price allocations $ 49,459 |
Schedule of Purchase Price Allocations - Acquisitions for the Year Ended January 31, 2015 | The following table sets forth the components and the allocations of the purchase prices for our acquisitions of KANA and UTX, including adjustments identified subsequent to the respective acquisition dates: (in thousands) KANA UTX Components of Purchase Prices: Cash, including post-closing adjustments $ 541,685 $ 82,901 Fair value of contingent consideration — 1,347 Total purchase prices $ 541,685 $ 84,248 Allocation of Purchase Prices: Net tangible assets (liabilities): Accounts receivable $ 18,473 $ — Other current assets, including cash acquired 49,707 3,799 Other assets 14,494 924 Current and other liabilities (17,851 ) (263 ) Deferred revenue - current and long-term (7,932 ) (340 ) Deferred income taxes - current and long-term (60,879 ) (4,882 ) Net tangible liabilities (3,988 ) (762 ) Identifiable intangible assets: Customer relationships 152,700 2,000 Developed technology 55,500 37,400 Trademarks and trade names 11,500 — Other intangible assets — 1,100 Total identifiable intangible assets 219,700 40,500 Goodwill 325,973 44,510 Total purchase price allocations $ 541,685 $ 84,248 |
Business Acquisition, Pro Forma Information | The unaudited pro forma results do not include any operating efficiencies or potential cost savings associated with these business combinations. Accordingly, such unaudited pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on February 1, 2014, nor are they indicative of future operating results. (in thousands, except per share amounts) Year Ended January 31, 2015 Revenue $ 1,158,141 Net income $ 29,644 Net income attributable to Verint Systems Inc. $ 24,173 Net income per common share attributable to Verint Systems Inc.: Basic $ 0.42 Diluted $ 0.41 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquisition-related intangible assets | Acquisition-related intangible assets consisted of the following as of January 31, 2017 and 2016 : January 31, 2017 (in thousands) Cost Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $ 403,657 $ (244,792 ) $ 158,865 Acquired technology 233,982 (168,653 ) 65,329 Trade names 23,493 (14,187 ) 9,306 Non-competition agreements 3,047 (2,499 ) 548 Distribution network 4,440 (4,329 ) 111 Total intangible assets with finite lives 668,619 (434,460 ) 234,159 In-process research and development, with indefinite lives 1,100 — 1,100 Total intangible assets $ 669,719 $ (434,460 ) $ 235,259 January 31, 2016 (in thousands) Cost Accumulated Amortization Net Intangible assets, all with finite lives: Customer relationships $ 371,722 $ (211,824 ) $ 159,898 Acquired technology 211,388 (134,391 ) 76,997 Trade names 18,457 (11,570 ) 6,887 Non-competition agreements 3,047 (2,137 ) 910 Distribution network 4,440 (3,550 ) 890 Total intangible assets with finite lives 609,054 (363,472 ) 245,582 In-process research and development, with indefinite lives 1,100 — 1,100 Total intangible assets $ 610,154 $ (363,472 ) $ 246,682 |
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, 2017 and 2016 : January 31, (in thousands) 2017 2016 Customer Engagement $ 207,436 $ 201,503 Cyber Intelligence 27,823 45,179 Total $ 235,259 $ 246,682 |
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 2018 $ 68,227 2019 41,246 2020 31,888 2021 24,716 2022 21,626 Thereafter 46,456 Total $ 234,159 |
Schedule of goodwill activity | Goodwill activity for the years ended January 31, 2017 , and 2016 , in total and by reportable segment, was as follows: Reportable Segment (in thousands) Total Customer Engagement Cyber Intelligence Year Ended January 31, 2016: Goodwill, gross, at January 31, 2015 $ 1,267,682 $ 1,144,188 $ 123,494 Accumulated impairment losses through January 31, 2015 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2015 1,200,817 1,088,145 112,672 Business combinations 28,717 7,695 21,022 Foreign currency translation and other (22,358 ) (20,634 ) (1,724 ) Goodwill, net, at January 31, 2016 $ 1,207,176 $ 1,075,206 $ 131,970 Year Ended January 31, 2017: Goodwill, gross, at January 31, 2016 $ 1,274,041 $ 1,131,249 $ 142,792 Accumulated impairment losses through January 31, 2016 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2016 1,207,176 1,075,206 131,970 Business combinations 91,209 91,209 — Foreign currency translation and other (33,567 ) (34,436 ) 869 Goodwill, net, at January 31, 2017 $ 1,264,818 $ 1,131,979 $ 132,839 Balance at January 31, 2017: Goodwill, gross, at January 31, 2017 $ 1,331,683 $ 1,188,022 $ 143,661 Accumulated impairment losses through January 31, 2017 (66,865 ) (56,043 ) (10,822 ) Goodwill, net, at January 31, 2017 $ 1,264,818 $ 1,131,979 $ 132,839 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Summary of long-term debt | The following table summarizes our long-term debt at January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 1.50% Convertible Senior Notes $ 400,000 $ 400,000 February 2014 Term Loans 130,060 130,729 March 2014 Term Loans 278,978 280,413 Other debt 404 — Less: Unamortized debt discounts and issuance costs (60,571 ) (73,055 ) Total debt 748,871 738,087 Less: current maturities 4,611 2,104 Long-term debt $ 744,260 $ 735,983 |
Summary of future scheduled principal payments on term loans | As of January 31, 2017, future scheduled principal payments on the February 2014 Term Loans and March 2014 Term Loans are presented in the following table: (in thousands) February 2014 March 2014 Years Ending January 31, Term Loans Term Loans 2018 $ 1,337 $ 2,869 2019 1,337 2,869 2020 127,386 273,240 Total $ 130,060 $ 278,978 |
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 Agreement for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 1.50% Convertible Senior Notes: Interest expense at 1.50% coupon rate $ 6,000 $ 6,000 $ 3,717 Amortization of debt discount 10,669 10,123 6,014 Amortization of deferred debt issuance costs 1,007 955 566 Total - 1.50% Convertible Senior Notes $ 17,676 $ 17,078 $ 10,297 Borrowings under Credit Agreement: Interest expense at contractual rates $ 14,682 $ 14,590 $ 23,236 Impact of interest rate swap agreement 259 — — Amortization of debt discounts 58 56 116 Amortization of deferred debt issuance costs 2,211 2,166 2,435 Total - Borrowings under Credit Agreement $ 17,210 $ 16,812 $ 25,787 |
SUPPLEMENTAL CONSOLIDATED FIN32
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of January 31, 2017 and 2016 : January 31, (in thousands) 2017 2016 Raw materials $ 9,074 $ 7,177 Work-in-process 4,355 6,668 Finished goods 4,108 4,467 Total inventories $ 17,537 $ 18,312 |
Schedule of Property and Equipment, net | Property and equipment, net consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Land and buildings $ 9,543 $ 10,276 Leasehold improvements 29,247 28,538 Software 61,810 47,615 Equipment, furniture, and other 93,968 79,545 194,568 165,974 Less: accumulated depreciation and amortization (117,017 ) (97,070 ) Total property and equipment, net $ 77,551 $ 68,904 |
Schedule of Other Assets | Other assets consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Long-term restricted cash and time deposits $ 54,566 $ 15,359 Deferred debt issuance costs, net 1,929 3,142 Long-term security deposits 4,123 4,112 Other 16,002 13,611 Total other assets $ 76,620 $ 36,224 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Compensation and benefits $ 73,998 $ 69,895 Billings in excess of costs and estimated earnings on uncompleted contracts 59,810 54,873 Income taxes 11,410 18,707 Professional and consulting fees 8,020 7,094 Derivative financial instruments - current portion 1,655 2,347 Distributor and agent commissions 10,384 8,471 Taxes other than income taxes 8,564 8,430 Interest on indebtedness 3,712 4,597 Contingent consideration - current portion 9,725 3,691 Other 25,946 28,862 Total accrued expenses and other current liabilities $ 213,224 $ 206,967 |
Schedule of Other Liabilities | Other liabilities consisted of the following as of January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Unrecognized tax benefits, including interest and penalties $ 28,204 $ 25,315 Contingent consideration - long-term portion 42,708 18,401 Deferred rent expense 13,805 12,553 Obligations for severance compensation 2,880 2,712 Other 6,762 2,647 Total other liabilities $ 94,359 $ 61,628 |
Schedule of Other Expense, Net | Other expense, net consisted of the following for the years ended January 31, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Foreign currency losses, net $ (2,743 ) $ (8,037 ) $ (13,402 ) (Losses) gains on derivative financial instruments, net (322 ) 394 3,986 Other, net (3,861 ) (4,634 ) (155 ) Total other expense, net $ (6,926 ) $ (12,277 ) $ (9,571 ) |
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, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Cash paid for interest $ 21,892 $ 20,734 $ 29,296 Cash payments of income taxes, net $ 29,582 $ 17,165 $ 15,362 Non-cash investing and financing transactions: Accrued but unpaid purchases of property and equipment $ 2,868 $ 4,562 $ 4,258 Inventory transfers to property and equipment $ 552 $ 1,142 $ 630 Liabilities for contingent consideration in business combinations $ 26,400 $ 16,238 $ 8,347 Leasehold improvements funded by lease incentives $ 82 $ 1,721 $ 2,242 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
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, 2017 and 2016: (in thousands) Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges Unrealized Gain on Interest Rate Swap Designated as Hedge Unrealized Gains (Losses) on Available-for-Sale Investments Foreign Currency Translation Adjustments Total Accumulated other comprehensive (loss) income at January 31, 2015 $ (7,992 ) $ — $ 101 $ (86,444 ) $ (94,335 ) Other comprehensive loss before reclassifications (992 ) — (211 ) (27,769 ) (28,972 ) Amounts reclassified out of accumulated other comprehensive income (loss) 7,113 — — — 7,113 Net other comprehensive income (loss) 6,121 — (211 ) (27,769 ) (21,859 ) Accumulated other comprehensive loss at January 31, 2016 (1,871 ) — (110 ) (114,213 ) (116,194 ) Other comprehensive income (loss) before reclassifications 3,585 632 110 (41,850 ) (37,523 ) Amounts reclassified out of accumulated other comprehensive income (loss) (1,139 ) — — — (1,139 ) Net other comprehensive income (loss) 2,446 632 110 (41,850 ) (38,662 ) Accumulated other comprehensive income (loss) at January 31, 2017 $ 575 $ 632 $ — $ (156,063 ) $ (154,856 ) |
Schedule of amounts reclassified out of AOCI into the statement of operations by presentation location | 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, 2017 , 2016, and 2015 were as follows: Year Ended January 31, Financial Statement Location (in thousands) 2017 2016 2015 Unrealized (gains) losses on derivative financial instruments: Foreign currency forward contracts $ (108 ) $ 718 $ 190 Cost of product revenue (115 ) 672 159 Cost of service and support revenue (651 ) 4,556 1,050 Research and development, net (383 ) 2,205 458 Selling, general and administrative (1,257 ) 8,151 1,857 Total, before income taxes 118 (1,038 ) (299 ) Provision (benefit) for income taxes $ (1,139 ) $ 7,113 $ 1,558 Total, net of income taxes |
RESEARCH AND DEVELOPMENT, NET R
RESEARCH AND DEVELOPMENT, NET RESEARCH AND DEVELOPMENT, NET (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Research and Development [Abstract] | |
Activity of capitalized software development costs | Activity for our capitalized software development costs for the years ended January 31, 2017 , 2016 , and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Capitalized software development costs, net, beginning of year $ 11,992 $ 10,112 $ 8,483 Software development costs capitalized during the year 2,338 5,027 6,083 Amortization of capitalized software development costs (3,341 ) (2,976 ) (1,666 ) Impairments, foreign currency translation and other (1,480 ) (171 ) (2,788 ) Capitalized software development costs, net, end of year $ 9,509 $ 11,992 $ 10,112 |
INCOME TAXES INCOME TAXES (Tabl
INCOME TAXES INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of (loss) income before provision (benefit) for income taxes | The components of (loss) income before provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Domestic $ (60,722 ) $ (43,471 ) $ (53,877 ) Foreign 37,248 66,651 75,280 Total (loss) income before provision (benefit) for income taxes $ (23,474 ) $ 23,180 $ 21,403 |
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 consisted of the following: Year Ended January 31, (in thousands) 2017 2016 2015 Current provision (benefit) for income taxes: Federal $ 604 $ (2,997 ) $ 342 State 989 1,300 1,575 Foreign 18,120 8,289 30,415 Total current provision for income taxes 19,713 6,592 32,332 Deferred (benefit) provision for income taxes: Federal (8,179 ) 2,244 (40,007 ) State (842 ) 12 (2,610 ) Foreign (7,920 ) (7,896 ) (4,714 ) Total deferred benefit for income taxes (16,941 ) (5,640 ) (47,331 ) Total provision (benefit) for income taxes $ 2,772 $ 952 $ (14,999 ) |
Reconciliation of the U.S. federal statutory rate to the entity's effective tax rate on (loss) income before income taxes | The reconciliation of the U.S. federal statutory rate to our effective tax rate on (loss) income before provision (benefit) for income taxes for the years ended January 31, 2017, 2016, and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % Income tax (benefit) provision at the U.S. federal statutory rate $ (8,215 ) $ 8,115 $ 7,489 State income tax (benefit) provision (312 ) (79 ) (1,739 ) Foreign tax rate differential (5,794 ) (3,068 ) (9,650 ) Tax incentives (3,507 ) (12,293 ) (14,865 ) Valuation allowances (3,640 ) (7,767 ) (15,793 ) Stock-based and other compensation 2,522 3,562 4,222 Non-deductible expenses 5,315 6,061 2,156 Tax credits (112 ) (482 ) (2,461 ) Tax contingencies 5,566 (6,281 ) 14,762 Tax effects of reorganizations and liquidations 975 6,136 — U.S. tax effects of foreign operations 9,542 7,574 1,451 Other, net 432 (526 ) (571 ) Total provision (benefit) for income taxes $ 2,772 $ 952 $ (14,999 ) Effective income tax rate (11.8 )% 4.1 % (70.1 )% |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following at January 31, 2017 and 2016: January 31, (in thousands) 2017 2016 Deferred tax assets: Accrued expenses $ 10,627 $ 9,553 Deferred revenue 3,953 7,819 Loss carryforwards 125,986 127,718 Tax credits 7,972 8,308 Stock-based and other compensation 20,187 20,213 Capitalized research and development expenses 4,146 4,125 Other, net 2,672 3,783 Total deferred tax assets 175,543 181,519 Deferred tax liabilities: Goodwill and other intangible assets (50,679 ) (53,354 ) Unremitted earnings of foreign subsidiaries (18,215 ) (18,870 ) Other, net (2,344 ) (3,053 ) Total deferred tax liabilities (71,238 ) (75,277 ) Valuation allowance (108,609 ) (115,756 ) Net deferred tax liabilities $ (4,304 ) $ (9,514 ) Recorded as: Long-term deferred tax assets $ 21,510 $ 17,528 Long-term deferred tax liabilities (25,814 ) (27,042 ) Net deferred tax liabilities $ (4,304 ) $ (9,514 ) |
Schedule of valuation allowance | Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2017 and 2016: Year Ended January 31, (in thousands) 2017 2016 Valuation allowance, beginning of year $ (115,756 ) $ (123,837 ) Provision (benefit) for income taxes 3,640 7,767 Additional paid-in capital 3,204 (59 ) Currency translation adjustment 303 373 Valuation allowance, end of year $ (108,609 ) $ (115,756 ) |
Schedule of aggregate changes in the balance of gross unrecognized tax benefits | For the years ended January 31, 2017, 2016, and 2015, the aggregate changes in the balance of gross unrecognized tax benefits were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Gross unrecognized tax benefits, beginning of year $ 142,271 $ 159,648 $ 145,408 Increases related to tax positions taken during the current year 11,034 9,465 15,522 Increases as a result of business combinations — 985 4,744 Increases related to tax positions taken during prior years 585 2,514 1,927 Increases (decreases) related to foreign currency exchange rates 648 (741 ) (3,900 ) Reductions for tax positions of prior years (5,094 ) (13,613 ) (3,440 ) Reductions for settlements with tax authorities (145 ) (13,811 ) — Lapses of statutes of limitations (660 ) (2,176 ) (613 ) Gross unrecognized tax benefits, end of year $ 148,639 $ 142,271 $ 159,648 |
Schedule of income tax returns under examination in major tax jurisdictions | As of January 31, 2017, income tax returns are under examination in the following significant tax jurisdictions: Jurisdiction Tax Years Canada January 31, 2011 - January 31, 2012 United Kingdom December 31, 2006; January 31, 2008 India March 31, 2006 - March 31, 2008; March 31, 2010 - March 31, 2013, March 31, 2015 Israel January 31, 2014 - January 31, 2016 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
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, 2017 and 2016: January 31, 2017 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 175 $ — $ — Foreign currency forward contracts — 1,646 — Interest rate swap agreement — 1,429 — Total assets $ 175 $ 3,075 $ — Liabilities: Foreign currency forward contracts $ — $ 1,246 $ — Interest rate swap agreement — 408 — Contingent consideration - business combinations — — 52,733 Option to acquire noncontrolling interests of consolidated subsidiaries — — 3,550 Total liabilities $ — $ 1,654 $ 56,283 January 31, 2016 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 12,137 $ — $ — Commercial paper and corporate debt securities, classified as cash and cash equivalents — 5,030 — Short-term investments, classified as available-for-sale — 52,932 — Foreign currency forward contracts — 113 — Total assets $ 12,137 $ 58,075 $ — Liabilities: Foreign currency forward contracts $ — $ 2,377 $ — Contingent consideration - business combinations — — 22,391 Total liabilities $ — $ 2,377 $ 22,391 |
Liability for contingent consideration | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | |
Schedule of changes in the estimated fair value using significant unobservable inputs (Level 3) | 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, 2017 and 2016 : Year Ended January 31, (in thousands) 2017 2016 Fair value measurement, beginning of year $ 22,391 $ 14,507 Contingent consideration liabilities recorded for business combinations 26,400 16,238 Changes in fair values, recorded in operating expenses 7,255 (910 ) Payments of contingent consideration (3,313 ) (7,444 ) Fair value measurement, end of year $ 52,733 $ 22,391 |
Option to acquire noncontrolling interests | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | |
Schedule of changes in the estimated fair value using significant unobservable inputs (Level 3) | The following table presents the change in the estimated fair value of this liability, which is measured using Level 3 inputs, for the year ended January 31, 2017 : (in thousands) Year Ended Fair value measurement, beginning of year $ — Acquisition of option to acquire noncontrolling interests of consolidated subsidiaries 3,134 Change in fair value, recorded in operating expenses 416 Fair value measurement, end of year $ 3,550 |
DERIVATIVE FINANCIAL INSTRUME37
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
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, 2017 and 2016 were as follows: January 31, (in thousands) Balance Sheet Classification 2017 2016 Derivative assets: Foreign currency forward contracts: Designated as cash flow hedges Prepaid expenses and other current assets $ 927 $ — Not designated as hedging instruments Prepaid expenses and other current assets 719 113 Interest rate swap agreement, designated as a cash flow hedge Other assets 1,429 — Total derivative assets $ 3,075 $ 113 Derivative liabilities: Foreign currency forward contracts: Designated as cash flow hedges Accrued expenses and other current liabilities $ 288 $ 2,108 Not designated as hedging instruments Accrued expenses and other current liabilities 958 239 Other liabilities — 30 Interest rate swap agreement, designated as a cash flow hedge Accrued expenses and other current liabilities 408 — Total derivative liabilities $ 1,654 $ 2,377 |
Schedule of the effects of derivative financial instruments designated as cash flow hedging instruments | 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, 2017 , 2016 , and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Net gains (losses) recognized in Other comprehensive (loss) income: Foreign currency forward contracts $ 575 $ (1,871 ) $ (7,992 ) Interest rate swap agreement 632 — — $ 1,207 $ (1,871 ) $ (7,992 ) Net gains (losses) reclassified from Other comprehensive (loss) income to the consolidated statements of operations: Foreign currency forward contracts $ 1,257 $ (8,151 ) $ (1,857 ) For information regarding the line item locations of the net gains (losses) on foreign currency forward contracts reclassified out of Other comprehensive (loss) income into the consolidated statements of operations, see Note 8, "Stockholders' Equity". |
Schedule of (losses) gains recognized on 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, 2017 , 2016 , and 2015 were as follows: Classification in Consolidated Statements of Operations Year Ended January 31, (in thousands) 2017 2016 2015 Foreign currency forward contracts Other income (expense), net $ (323 ) $ 394 $ 3,986 |
STOCK-BASED COMPENSATION AND 38
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [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, 2017 , 2016 , and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Component of (loss) income before provision (benefit) for income taxes: Cost of revenue - product $ 1,290 $ 1,466 $ 1,228 Cost of revenue - service and support 7,297 5,719 5,028 Research and development, net 11,637 9,195 6,421 Selling, general and administrative 45,384 48,169 41,781 Total stock-based compensation expense 65,608 64,549 54,458 Income tax benefits related to stock-based compensation (before consideration of valuation allowances) 15,752 14,385 12,364 Total stock-based compensation, net of taxes $ 49,856 $ 50,164 $ 42,094 |
Summary of stock-based compensation expense by type of award | Total stock-based compensation expense by type of award was as follows for the years ended January 31, 2017 , 2016 , and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Restricted stock units and restricted stock awards $ 55,123 $ 58,028 $ 46,634 Stock bonus program and bonus share program 10,298 6,359 7,680 Total equity-settled awards 65,421 64,387 54,314 Phantom stock units (cash-settled awards) 187 162 144 Total stock-based compensation expense $ 65,608 $ 64,549 $ 54,458 |
Summary of RSU and RSA activity under the Plans | The following table summarizes activity for RSUs (including PRSUs) and RSAs under the Plans for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, 2017 2016 2015 (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 2,649 $ 54.57 2,545 $ 40.96 2,250 $ 33.77 Granted 1,870 $ 35.33 1,729 $ 62.62 1,504 $ 46.11 Released (1,433 ) $ 47.98 (1,312 ) $ 39.75 (1,009 ) $ 33.11 Forfeited (344 ) $ 52.20 (313 ) $ 50.56 (200 ) $ 38.46 Ending balance 2,742 $ 45.20 2,649 $ 54.57 2,545 $ 40.96 |
Summary of performance RSU activity under the Plans | Activity for performance awards under the Plans for the years ended January 31, 2017, 2016, and 2015 was as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Beginning balance 332 497 477 Granted 312 195 250 Released (159 ) (239 ) (189 ) Forfeited (47 ) (121 ) (41 ) Ending balance 438 332 497 |
Schedule of stock option activity under the Plans | The following table summarizes stock option activity under the Plans for the years ended January 31, 2017 , 2016 , and 2015 : Year Ended January 31, 2017 2016 2015 (in thousands, except exercise prices) Stock Options Weighted-Average Exercise Price Stock Options Weighted-Average Exercise Price Stock Options Weighted-Average Exercise Price Beginning balance 3 $ 9.59 9 $ 28.74 516 $ 34.60 Exercised (1 ) $ 8.71 (6 ) $ 36.10 (505 ) $ 34.71 Expired — $ — — $ — (2 ) $ 23.13 Ending balance 2 $ 10.09 3 $ 9.59 9 $ 28.74 Stock options exercisable 2 $ 10.09 3 $ 9.59 9 $ 28.74 |
Summary of key data points for exercised options | The following table summarizes certain key data for exercised options: Year Ended January 31, (in thousands) 2017 2016 2015 Intrinsic value of options exercised $ 24 $ 164 $ 8,759 Cash received from the exercise of stock options $ 8 $ 232 $ 17,606 Tax benefits realized from stock options exercised $ 6 $ 107 $ 2,306 Fair value of options vested $ 35 $ 56 $ 178 |
Summary of key data for Stock Bonus Program | The following table summarizes certain key data for the stock bonus program for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands, except discount) 2017 2016 2015 Maximum stock bonus program shares — 125 125 Discount — % — % 15 % Shares in lieu of earned cash bonus - granted and released 25 43 82 Shares in respect of discount: Granted — 7 12 Released — 5 9 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of January 31, 2017, our minimum future rent obligations under non-cancelable operating leases with initial or remaining terms in excess of one year were as follows: (in thousands) Operating Years Ending January 31, Leases 2018 $ 25,447 2019 24,138 2020 17,865 2021 15,460 2022 14,335 Thereafter 56,945 Total $ 154,190 |
Schedule of Warranty Liability | The following table summarizes the activity in our warranty liability, which is included in accrued expenses and other current liabilities in the consolidated balance sheets, for the years ended January 31, 2017, 2016, and 2015: Year Ended January 31, (in thousands) 2017 2016 2015 Warranty liability, beginning of year $ 826 $ 633 $ 706 Provision charged to (credited against) expenses 797 473 (60 ) Warranty charges (658 ) (278 ) — Foreign currency translation and other (3 ) (2 ) (13 ) Warranty liability, end of year $ 962 $ 826 $ 633 |
SEGMENT, GEOGRAPHIC, AND SIGN40
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Results by Segment | Operating results by segment for the years ended January 31, 2017 , 2016 , and 2015 were as follows: Year Ended January 31, (in thousands) 2017 2016 2015 Revenue: Customer Engagement: Segment revenue $ 716,163 $ 698,298 $ 742,537 Revenue adjustments (10,266 ) (3,441 ) (29,032 ) 705,897 694,857 713,505 Cyber Intelligence: Segment revenue 356,533 436,343 415,626 Revenue adjustments (324 ) (934 ) (695 ) 356,209 435,409 414,931 Total revenue $ 1,062,106 $ 1,130,266 $ 1,128,436 Segment contribution: Customer Engagement $ 269,017 $ 264,378 $ 286,587 Cyber Intelligence 85,777 133,186 133,203 Total segment contribution 354,794 397,564 419,790 Unallocated expenses, net: Amortization of acquired intangible assets 81,461 78,904 76,167 Stock-based compensation 65,608 64,549 54,458 Other unallocated expenses 190,359 186,259 210,054 Total unallocated expenses, net 337,428 329,712 340,679 Operating income 17,366 67,852 79,111 Other expense, net (40,840 ) (44,672 ) (57,708 ) (Loss) income before provision (benefit) for income taxes $ (23,474 ) $ 23,180 $ 21,403 |
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, 2017 , 2016 , and 2015 : Year Ended January 31, (in thousands) 2017 2016 2015 Americas: United States $ 438,034 $ 430,626 $ 430,565 Other 134,111 150,435 157,992 Total Americas 572,145 581,061 588,557 EMEA 322,130 350,217 347,056 APAC 167,831 198,988 192,823 Total revenue $ 1,062,106 $ 1,130,266 $ 1,128,436 Our long-lived assets primarily consist of net property and equipment, goodwill and other intangible assets, capitalized software development costs, deferred cost of revenue, 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, 2017 and 2016 : January 31, (in thousands) 2017 2016 United States $ 37,751 $ 28,572 Israel 25,421 25,350 Other countries 14,379 14,982 Total property and equipment, net $ 77,551 $ 68,904 |
SELECTED QUARTERLY FINANCIAL 41
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Jan. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Summarized condensed quarterly financial information for the years ended January 31, 2017 and 2016 appears in the following tables: Three Months Ended April 30, July 31, October 31, January 31, (in thousands, except per share data) 2016 2016 2016 2017 Revenue $ 245,424 $ 261,921 $ 258,902 $ 295,859 Gross profit $ 144,730 $ 159,460 $ 155,696 $ 179,591 (Loss) income before (benefit) provision for income taxes $ (15,863 ) $ (10,020 ) $ (4,075 ) $ 6,484 Net (loss) income $ (16,193 ) $ (11,078 ) $ (7,434 ) $ 8,459 Net (loss) income attributable to Verint Systems Inc. $ (17,456 ) $ (11,705 ) $ (8,237 ) $ 8,018 Net (loss) income per common share attributable to Verint Systems Inc. Basic $ (0.28 ) $ (0.19 ) $ (0.13 ) $ 0.13 Diluted $ (0.28 ) $ (0.19 ) $ (0.13 ) $ 0.13 Three Months Ended April 30, July 31, October 31, January 31, (in thousands, except per share data) 2015 2015 2015 2016 Revenue $ 269,536 $ 295,882 $ 284,054 $ 280,794 Gross profit $ 166,363 $ 177,344 $ 178,537 $ 179,116 Income (loss) before (benefit) provision for income taxes $ 1,678 $ (3,139 ) $ 10,021 $ 14,620 Net income (loss) $ 731 $ (5,760 ) $ 8,470 $ 18,787 Net (loss) income attributable to Verint Systems Inc. $ (416 ) $ (7,085 ) $ 7,634 $ 17,505 Net (loss) income per common share attributable to Verint Systems Inc. Basic $ (0.01 ) $ (0.11 ) $ 0.12 $ 0.28 Diluted $ (0.01 ) $ (0.11 ) $ 0.12 $ 0.28 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECASTING OF PRIOR PERIODS SEGMENT INFORMATION (Details) | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2017segment | Jul. 31, 2016segment | Jan. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | 2 | 3 | 2 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONSOLIDATION (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Less than | |
Basis of Presentation | |
Maximum ownership interest in cost method investments (as a percent) | 20.00% |
Joint venture, variable interest entity in which entity is primary beneficiary | |
Basis of Presentation | |
Equity interest in a joint venture (as a percent) | 50.00% |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Investments [Abstract] | |
Minimum maturity period of short term investments in time deposits (in days) | 90 days |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - UNBILLED ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Jan. 31, 2016 |
Unbilled Receivables, Not Billable, Fiscal Year Maturity [Abstract] | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected in Next Twelve Months | $ 39.7 | $ 46.6 |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONCENTRATIONS OF CREDIT RISK (Details) - Credit Concentration Risk - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Concentration Risk [Line Items] | ||
Accounts Receivable, Net | $ 63.5 | $ 70.9 |
Concentration Risk, Customer | One customer accounted for $63.5 million and $70.9 million of our accounts receivable (including both billed and unbilled amounts), at January 31, 2017 and 2016, respectively. This customer is a governmental agency outside of the U.S. which we believe presents insignificant credit risk. |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Recorded valuation allowance | |||
Balance at beginning of year | $ 1,170 | $ 1,099 | $ 1,187 |
Provisions charged to expense | 1,791 | 669 | 423 |
Amounts written off | (1,484) | (933) | (461) |
Other, including fluctuations in foreign exchange rates | 365 | 335 | (50) |
Balance at end of year | $ 1,842 | $ 1,170 | $ 1,099 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - USEFUL LIVES; IMPAIRMENTS (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |
Number of primary approaches to assess fair value | 3 |
Estimated useful lives of finite-lived intangible assets (in years) | 10 years |
Equipment, Furniture and Other | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 3 years |
Equipment, Furniture and Other | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 7 years |
Software | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 3 years |
Software | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 4 years |
Buildings | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives, (in years) | 25 years |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENT REPORTING (Details) | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2017segment | Jul. 31, 2016segment | Jan. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | 2 | 3 | 2 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - REVENUE RECOGNITION (Details) | 12 Months Ended |
Jan. 31, 2017ElementCategory | |
Revenue Recognition [Abstract] | |
Number of Categories in which Revenue is Derived and Reported | Category | 2 |
Number of elements for multiple-element software arrangements for which various available indicators of fair value and judgment are used to classify the arrangement's revenue into product revenue and service revenue, VSOE cannot be established and where such arrangements are recognized ratably, minimum | Element | 1 |
Term of software maintenance period over which PCS revenue is recognized (in years) | 1 year |
Estimated economic lives of software products, low end of range (in years) | 5 years |
Estimated economic lives of software products, high end of range (in years) | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - COST OF REVENUE; CAPITALIZED SOFTWARE DEVELOPMENT (Details) | 12 Months Ended |
Jan. 31, 2017mo | |
Cost of Revenue [Abstract] | |
Maximum period of time for recognizing revenue for deferred cost of revenue classified as current (in months) | 12 |
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 ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOREIGN CURRENCY GAINS AND LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Foreign Currency Transaction Gain (Loss), before Tax [Abstract] | |||
Foreign currency losses, net | $ (2,743) | $ (8,037) | $ (13,402) |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NET INCOME (LOSS) PER SHARE (Details) | Jun. 18, 2014 |
1.50% Convertible Senior Notes | |
Debt Conversion | |
Interest Rate at end of period (as a percent) | 1.50% |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OTHER (Details) $ in Millions | Jan. 31, 2017USD ($) |
Debt Instrument | |
Unamortized Debt Issuance Expense | $ 5 |
NET (LOSS) INCOME PER COMMON 55
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - CALCULATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Net (Loss) Income Attributable to Verint Systems Inc. [Abstract] | |||||||||||
Net (loss) income | $ 8,459 | $ (7,434) | $ (11,078) | $ (16,193) | $ 18,787 | $ 8,470 | $ (5,760) | $ 731 | $ (26,246) | $ 22,228 | $ 36,402 |
Net income attributable to noncontrolling interest | 3,134 | 4,590 | 5,471 | ||||||||
Net (loss) income attributable to Verint Systems Inc. | $ 8,018 | $ (8,237) | $ (11,705) | $ (17,456) | $ 17,505 | $ 7,634 | $ (7,085) | $ (416) | $ (29,380) | $ 17,638 | $ 30,931 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Basic (in shares) | 62,593,000 | 61,813,000 | 58,096,000 | ||||||||
Dilutive effect of employee equity award plans (in shares) | 0 | 1,108,000 | 1,278,000 | ||||||||
Dilutive effect of 1.50% convertible senior notes (in shares) | 0 | 0 | 0 | ||||||||
Dilutive effect of warrants (in shares) | 0 | 0 | 0 | ||||||||
Diluted (in shares) | 62,593,000 | 62,921,000 | 59,374,000 | ||||||||
Net (Loss) Income Per Share Attributable to Verint Systems Inc. [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.13 | $ (0.13) | $ (0.19) | $ (0.28) | $ 0.28 | $ 0.12 | $ (0.11) | $ (0.01) | $ (0.47) | $ 0.29 | $ 0.53 |
Diluted (in dollars per share) | $ 0.13 | $ (0.13) | $ (0.19) | $ (0.28) | $ 0.28 | $ 0.12 | $ (0.11) | $ (0.01) | $ (0.47) | $ 0.28 | $ 0.52 |
NET (LOSS) INCOME PER COMMON 56
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - ANTIDILUTIVE SECURITIES (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock options and restricted stock-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares) | 1,097 | 596 | 226 |
1.50% convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares) | 6,205 | 6,205 | 3,876 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, (in shares) | 6,205 | 6,205 | 3,876 |
NET (LOSS) INCOME PER COMMON 57
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - OTHER DETAILS (Details) - $ / shares | Jan. 31, 2017 | Jun. 18, 2014 |
Exercise Price of Warrants (in dollars per share) | $ 75 | |
Warrants (in shares) | 6,205,000 | |
1.50% Convertible Senior Notes | ||
1.50% Convertible Notes - Conversion Price (in dollars per share) | $ 64.46 |
CASH, CASH EQUIVALENTS AND SH58
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule of Available-for-sale Securities | |||
Gains (losses) on sales of available-for-sale securities | $ 0 | $ 0 | $ 0 |
Proceeds from sales and maturities of available-for-sale securities | 52,800,000 | 71,500,000 | $ 13,700,000 |
Commercial paper and corporate debt securities (available-for-sale) | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 53,018,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (86,000) | ||
Estimated Fair Value | 52,932,000 | ||
Bank time deposits | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 3,184,000 | 3,050,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated Fair Value | 3,184,000 | 3,050,000 | |
Total short-term investments | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 3,184,000 | 56,068,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | (86,000) | |
Estimated Fair Value | 3,184,000 | 55,982,000 | |
Cash and bank time deposits | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 307,188,000 | 334,938,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated Fair Value | 307,188,000 | 334,938,000 | |
Money market funds | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 175,000 | 12,137,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated Fair Value | 175,000 | 12,137,000 | |
Commercial Paper and Corporate Debt Securities | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 5,054,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (24,000) | ||
Estimated Fair Value | 5,030,000 | ||
Total cash and cash equivalents | |||
Schedule of Available-for-sale Securities | |||
Cost Basis | 307,363,000 | 352,129,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | (24,000) | |
Estimated Fair Value | $ 307,363,000 | $ 352,105,000 |
BUSINESS COMBINATIONS BUSINESS
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2017 - CONTACT SOLUTIONS (Details) - USD ($) $ in Thousands | Feb. 19, 2016 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | ||||||||||||
(Loss) income before provision (benefit) for income taxes | $ 6,484 | $ (4,075) | $ (10,020) | $ (15,863) | $ 14,620 | $ 10,021 | $ (3,139) | $ 1,678 | $ (23,474) | $ 23,180 | $ 21,403 | |
Customer Engagement | Contact Solutions, LLC | ||||||||||||
Business Acquisition | ||||||||||||
Payment Made At Closing To Acquire Businesses | $ 66,915 | |||||||||||
Post-closing purchase price adjustment | 2,518 | |||||||||||
Business Combination, Consideration Transferred | 69,433 | |||||||||||
Deferred Revenue - Current and Long-Term | 642 | |||||||||||
Intangible Asset - Undelivered Performance Obligations | 2,900 | |||||||||||
Transaction and Related Costs, Including Integration Costs | 1,400 | $ 100 | ||||||||||
(Loss) income before provision (benefit) for income taxes | $ (8,500) | |||||||||||
Prepaid expenses and other current assets | Customer Engagement | Contact Solutions, LLC | ||||||||||||
Business Acquisition | ||||||||||||
Intangible Asset - Undelivered Performance Obligations | 1,200 | |||||||||||
Other assets | Customer Engagement | Contact Solutions, LLC | ||||||||||||
Business Acquisition | ||||||||||||
Intangible Asset - Undelivered Performance Obligations | $ 1,700 |
BUSINESS COMBINATIONS BUSINES60
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2017 - OPINIONLAB (Details) - USD ($) $ in Thousands | Nov. 16, 2016 | Oct. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 141,803 | $ 31,358 | $ 605,279 | ||
Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Payment Made At Closing To Acquire Businesses | $ 56,355 | ||||
Cash Acquired from Acquisition | 6,400 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 50,000 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 28,000 | ||||
Business Acquisition Contingent Consideration Fair Value Disclosure | 15,000 | ||||
Transaction and Related Costs, Including Integration Costs | $ 600 | ||||
Deferred Revenue - Current and Long-Term | 3,082 | ||||
Intangible Asset - Undelivered Performance Obligations | 5,400 | ||||
Prepaid expenses and other current assets | Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Intangible Asset - Undelivered Performance Obligations | 3,400 | ||||
Other assets | Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Intangible Asset - Undelivered Performance Obligations | $ 2,000 |
BUSINESS COMBINATIONS BUSINES61
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2017 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands | Nov. 16, 2016 | Feb. 19, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | |||||
Goodwill | $ 1,264,818 | $ 1,207,176 | $ 1,200,817 | ||
Customer Engagement | |||||
Business Acquisition | |||||
Goodwill | $ 1,131,979 | $ 1,075,206 | $ 1,088,145 | ||
Customer Engagement | Contact Solutions, LLC | |||||
Business Acquisition | |||||
Payment Made At Closing To Acquire Businesses | $ 66,915 | ||||
Fair value of contingent obligation | 0 | ||||
Post-closing purchase price adjustment | 2,518 | ||||
Business Combination, Consideration Transferred | 69,433 | ||||
Accounts receivable | 8,102 | ||||
Other current assets, including cash acquired | 2,392 | ||||
Property and equipment, net | 7,007 | ||||
Other assets | 1,904 | ||||
Current and other liabilities | (4,943) | ||||
Deferred Revenue - Current and Long-Term | 642 | ||||
Deferred Income Taxes - Current and Long-Term | 0 | ||||
Net Tangible Assets (Liabilities) | 13,820 | ||||
Identifiable intangible assets | 33,500 | ||||
Goodwill | 22,113 | ||||
Total Purchase Price Allocations | 69,433 | ||||
Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Payment Made At Closing To Acquire Businesses | $ 56,355 | ||||
Fair value of contingent obligation | 15,000 | ||||
Post-closing purchase price adjustment | 0 | ||||
Business Combination, Consideration Transferred | 71,355 | ||||
Accounts receivable | 748 | ||||
Other current assets, including cash acquired | 10,625 | ||||
Property and equipment, net | 298 | ||||
Other assets | 2,036 | ||||
Current and other liabilities | (1,600) | ||||
Deferred Revenue - Current and Long-Term | 3,082 | ||||
Deferred Income Taxes - Current and Long-Term | (9,995) | ||||
Net Tangible Assets (Liabilities) | (970) | ||||
Identifiable intangible assets | 31,300 | ||||
Goodwill | 41,025 | ||||
Total Purchase Price Allocations | 71,355 | ||||
Customer Relationships | Customer Engagement | Contact Solutions, LLC | |||||
Business Acquisition | |||||
Identifiable intangible assets | 18,000 | ||||
Customer Relationships | Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | 19,100 | ||||
Acquired Technology | Customer Engagement | Contact Solutions, LLC | |||||
Business Acquisition | |||||
Identifiable intangible assets | 13,100 | ||||
Acquired Technology | Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | 10,400 | ||||
Trademarks and Trade Names | Customer Engagement | Contact Solutions, LLC | |||||
Business Acquisition | |||||
Identifiable intangible assets | $ 2,400 | ||||
Trademarks and Trade Names | Customer Engagement | OpinionLab Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | $ 1,800 |
BUSINESS COMBINATIONS BUSINES62
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2017 - INTANGIBLE ASSETS USEFUL LIVES (Details) | Nov. 16, 2016 | Feb. 19, 2016 | Jan. 31, 2017 | Jan. 31, 2015 |
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | |||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 7 years 9 months 17 days | 7 years 5 months | ||
Customer Engagement | Contact Solutions, LLC | ||||
Business Acquisition | ||||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 7 years 3 months 20 days | |||
Customer Engagement | OpinionLab Inc. | ||||
Business Acquisition | ||||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 8 years 3 months 20 days | |||
Customer Relationships | Customer Engagement | Contact Solutions, LLC | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | |||
Customer Relationships | Customer Engagement | OpinionLab Inc. | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | |||
Acquired Technology | Customer Engagement | Contact Solutions, LLC | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 4 years | |||
Acquired Technology | Customer Engagement | OpinionLab Inc. | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 6 years | |||
Trademarks and Trade Names | Customer Engagement | Contact Solutions, LLC | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years | |||
Trademarks and Trade Names | Customer Engagement | OpinionLab Inc. | ||||
Business Acquisition | ||||
Estimated useful lives of finite-lived intangible assets (in years) | 4 years |
BUSINESS COMBINATIONS BUSINES63
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2016 - SUMMARY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Business Acquisition | |||
Goodwill | $ 1,264,818 | $ 1,207,176 | $ 1,200,817 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Payments to Acquire Businesses, Gross | 49,500 | ||
Payment Made At Closing To Acquire Businesses | 33,222 | ||
Business Acquisition Contingent Consideration Fair Value Disclosure | 30,500 | ||
Fair value of contingent obligation | 16,237 | ||
Goodwill | 28,717 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 5,100 | ||
Business Acquisition, Purchase Price Allocation, Goodwill, Tax Not Deductible Amount | 23,600 | ||
Transaction and Related Costs, Including Integration Costs | 600 | 1,400 | |
Enterprise Intelligence | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Goodwill | 7,700 | ||
Cyber Intelligence | |||
Business Acquisition | |||
Goodwill | $ 132,839 | 131,970 | $ 112,672 |
Cyber Intelligence | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Goodwill | $ 21,000 |
BUSINESS COMBINATIONS BUSINES64
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2016 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2015 | |
Business Acquisition | |||
Goodwill | $ 1,207,176 | $ 1,264,818 | $ 1,200,817 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Payment Made At Closing To Acquire Businesses | 33,222 | ||
Fair value of contingent obligation | 16,237 | ||
Business Combination, Consideration Transferred | 49,459 | ||
Accounts receivable | 992 | ||
Other current assets, including cash acquired | 4,274 | ||
Other assets | 395 | ||
Current and other liabilities | (3,037) | ||
Deferred Revenue - Current and Long-Term | (1,872) | ||
Deferred Income Taxes - Current and Long-Term | (2,922) | ||
Net Tangible Assets (Liabilities) | (2,170) | ||
Identifiable intangible assets | 22,912 | ||
Goodwill | 28,717 | ||
Total Purchase Price Allocations | 49,459 | ||
Customer Relationships | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Identifiable intangible assets | 1,212 | ||
Acquired Technology | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Identifiable intangible assets | 20,300 | ||
Trademarks and Trade Names | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Identifiable intangible assets | 300 | ||
In Process Research and Development | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Identifiable intangible assets | $ 1,100 |
BUSINESS COMBINATIONS BUSINES65
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2016 - INTANGIBLE ASSET USEFUL LIVES (Details) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | ||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 7 years 9 months 17 days | 7 years 5 months | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 4 years 5 months | ||
Customer Relationships | Minimum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years | ||
Customer Relationships | Maximum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | ||
Acquired Technology | Minimum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 4 years | ||
Acquired Technology | Maximum | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years | ||
Trademarks and Trade Names | Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition | |||
Estimated useful lives of finite-lived intangible assets (in years) | 3 years |
BUSINESS COMBINATIONS BUSINES66
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2015 - KANA SOFTWARE, INC. (Details) - USD ($) $ in Thousands | Feb. 03, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 141,803 | $ 31,358 | $ 605,279 | |
Enterprise Intelligence | KANA Software Inc. | ||||
Business Acquisition | ||||
Payment Made At Closing To Acquire Businesses | $ 542,400 | |||
Cash Acquired from Acquisition | 25,100 | |||
Post-closing purchase price adjustment | 700 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 516,600 | |||
Deferred Revenue - Current and Long-Term | 7,932 | |||
Intangible Asset - Undelivered Performance Obligations | 18,600 | |||
Transaction and Related Costs, Including Integration Costs | 600 | 3,200 | $ 10,000 | |
February 2014 Term Loans | ||||
Business Acquisition | ||||
Long-term Debt, Gross | 300,000 | $ 130,060 | $ 130,729 | |
2013 Revolving Line of Credit | 2013 Amended Credit Agreement - 2014 Amendments | ||||
Business Acquisition | ||||
Proceeds from Lines of Credit | $ 125,000 |
BUSINESS COMBINATIONS BUSINES67
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2015 - UTX TECHNOLOGIES LIMITED (Details) - USD ($) $ in Thousands | Mar. 31, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | ||||
Capitalized Computer Software, Impairments | $ 1,300 | $ 0 | $ 2,600 | |
UTX Acquisition | ||||
Business Acquisition | ||||
Transaction and Related Costs, Including Integration Costs | $ 2,500 | |||
Cyber Intelligence | UTX Acquisition | ||||
Business Acquisition | ||||
Payments to Acquire Businesses, Gross | $ 82,901 | |||
Business Acquisition Contingent Consideration Fair Value Disclosure | 1,500 | |||
Fair value of contingent obligation | $ 1,347 |
BUSINESS COMBINATIONS BUSINES68
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2015 - PURCHASE PRICE ALLOCATIONS (Details) - USD ($) $ in Thousands | Mar. 31, 2014 | Feb. 03, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition | |||||
Goodwill | $ 1,264,818 | $ 1,207,176 | $ 1,200,817 | ||
Enterprise Intelligence | KANA Software Inc. | |||||
Business Acquisition | |||||
Payments to Acquire Businesses, Gross | $ 541,685 | ||||
Fair value of contingent obligation | 0 | ||||
Business Combination, Consideration Transferred | 541,685 | ||||
Accounts receivable | 18,473 | ||||
Other current assets, including cash acquired | 49,707 | ||||
Other assets | 14,494 | ||||
Current and other liabilities | (17,851) | ||||
Deferred Revenue - Current and Long-Term | (7,932) | ||||
Deferred Income Taxes - Current and Long-Term | (60,879) | ||||
Net Tangible Assets (Liabilities) | (3,988) | ||||
Identifiable intangible assets | 219,700 | ||||
Goodwill | 325,973 | ||||
Total Purchase Price Allocations | 541,685 | ||||
Cyber Intelligence | |||||
Business Acquisition | |||||
Goodwill | $ 132,839 | $ 131,970 | $ 112,672 | ||
Cyber Intelligence | UTX Acquisition | |||||
Business Acquisition | |||||
Payments to Acquire Businesses, Gross | $ 82,901 | ||||
Fair value of contingent obligation | 1,347 | ||||
Business Combination, Consideration Transferred | 84,248 | ||||
Accounts receivable | 0 | ||||
Other current assets, including cash acquired | 3,799 | ||||
Other assets | 924 | ||||
Current and other liabilities | (263) | ||||
Deferred Revenue - Current and Long-Term | (340) | ||||
Deferred Income Taxes - Current and Long-Term | (4,882) | ||||
Net Tangible Assets (Liabilities) | (762) | ||||
Identifiable intangible assets | 40,500 | ||||
Goodwill | 44,510 | ||||
Total Purchase Price Allocations | 84,248 | ||||
Customer Relationships | Enterprise Intelligence | KANA Software Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | 152,700 | ||||
Customer Relationships | Cyber Intelligence | UTX Acquisition | |||||
Business Acquisition | |||||
Identifiable intangible assets | 2,000 | ||||
Acquired Technology | Enterprise Intelligence | KANA Software Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | 55,500 | ||||
Acquired Technology | Cyber Intelligence | UTX Acquisition | |||||
Business Acquisition | |||||
Identifiable intangible assets | 37,400 | ||||
Trademarks and Trade Names | Enterprise Intelligence | KANA Software Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | 11,500 | ||||
Trademarks and Trade Names | Cyber Intelligence | UTX Acquisition | |||||
Business Acquisition | |||||
Identifiable intangible assets | 0 | ||||
Other Intangible Assets | Enterprise Intelligence | KANA Software Inc. | |||||
Business Acquisition | |||||
Identifiable intangible assets | $ 0 | ||||
Other Intangible Assets | Cyber Intelligence | UTX Acquisition | |||||
Business Acquisition | |||||
Identifiable intangible assets | $ 1,100 |
BUSINESS COMBINATIONS BUSINES69
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2015 - INTANGIBLE ASSET LIVES (Details) | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2015 | |
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | |
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 7 years 9 months 17 days | 7 years 5 months |
Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 8 years 1 month | |
Cyber Intelligence | UTX Acquisition | ||
Business Acquisition | ||
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years) | 4 years | |
Customer Relationships | Cyber Intelligence | UTX Acquisition | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 3 years | |
Acquired Technology | Cyber Intelligence | UTX Acquisition | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 4 years | |
Trademarks and Trade Names | Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years | |
Other Intangible Assets | Cyber Intelligence | UTX Acquisition | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 4 years | |
Minimum | Customer Relationships | Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years | |
Minimum | Acquired Technology | Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 3 years | |
Maximum | Customer Relationships | Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 10 years | |
Maximum | Acquired Technology | Enterprise Intelligence | KANA Software Inc. | ||
Business Acquisition | ||
Estimated useful lives of finite-lived intangible assets (in years) | 5 years |
BUSINESS COMBINATIONS BUSINES70
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - YEAR ENDED JANUARY 31, 2015 - PRO FORMA INFORMATION (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 31, 2015USD ($)$ / shares | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Business Acquisitions, Pro Forma Revenue | $ 1,158,141 |
Business Acquisitions, Pro Forma Net Income | 29,644 |
Business Acquisitions, Pro Forma Net Income Attributable to Verint Systems Inc. | $ 24,173 |
Business Acquisitions, Pro Forma Earnings Per Share, Basic | $ / shares | $ 0.42 |
Business Acquisitions, Pro Forma Earnings Per Share, Diluted | $ / shares | $ 0.41 |
BUSINESS COMBINATIONS BUSINES71
BUSINESS COMBINATIONS BUSINESS COMBINATIONS - OTHER BUSINESS COMBINATION INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Business Acquisition | |||
Payments of contingent consideration | $ (3,300) | $ (7,400) | $ (12,000) |
Series of Individually Immaterial Business Acquisitions Jan-2014 | |||
Business Acquisition | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (7,300) | 900 | $ (900) |
Recurring | Level 3 | |||
Business Acquisition | |||
Business Acquisition Contingent Consideration Fair Value Disclosure | 52,733 | $ 22,391 | |
Accrued expenses and other current liabilities | Recurring | Level 3 | |||
Business Acquisition | |||
Business Acquisition Contingent Consideration Fair Value Disclosure | 10,000 | ||
Other liabilities | Recurring | Level 3 | |||
Business Acquisition | |||
Business Acquisition Contingent Consideration Fair Value Disclosure | $ 42,700 |
INTANGIBLE ASSETS AND GOODWIL72
INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 668,619 | $ 609,054 |
Finite-Lived Intangible Assets, Accumulated Amortization | (434,460) | (363,472) |
Finite-Lived Intangible Assets, Net | 234,159 | 245,582 |
Finite and Indefinite-Lived Intangible Assets Gross | 669,719 | 610,154 |
Intangible assets, net | 235,259 | 246,682 |
Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 403,657 | 371,722 |
Finite-Lived Intangible Assets, Accumulated Amortization | (244,792) | (211,824) |
Finite-Lived Intangible Assets, Net | 158,865 | 159,898 |
Acquired Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 233,982 | 211,388 |
Finite-Lived Intangible Assets, Accumulated Amortization | (168,653) | (134,391) |
Finite-Lived Intangible Assets, Net | 65,329 | 76,997 |
Trade Names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 23,493 | 18,457 |
Finite-Lived Intangible Assets, Accumulated Amortization | (14,187) | (11,570) |
Finite-Lived Intangible Assets, Net | 9,306 | 6,887 |
Non-competition Agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 3,047 | 3,047 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,499) | (2,137) |
Finite-Lived Intangible Assets, Net | 548 | 910 |
Distribution network | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 4,440 | 4,440 |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,329) | (3,550) |
Finite-Lived Intangible Assets, Net | 111 | 890 |
In Process Research and Development | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 1,100 | $ 1,100 |
INTANGIBLE ASSETS AND GOODWIL73
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - INTANGIBLE ASSETS BY REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 235,259 | $ 246,682 |
Customer Engagement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 207,436 | 201,503 |
Cyber Intelligence | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 27,823 | $ 45,179 |
INTANGIBLE ASSETS AND GOODWIL74
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - AMORTIZATION AND IMPAIRMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 | |
Amortization of Intangible Assets | $ 81.5 | $ 78.9 | $ 76.2 |
Acquired Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 3.2 |
INTANGIBLE ASSETS AND GOODWIL75
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Intangible Assets - Future Amortization [Abstract] | ||
2,018 | $ 68,227 | |
2,019 | 41,246 | |
2,020 | 31,888 | |
2,021 | 24,716 | |
2,022 | 21,626 | |
Thereafter | 46,456 | |
Intangible assets with finite lives, Net | $ 234,159 | $ 245,582 |
INTANGIBLE ASSETS AND GOODWIL76
INTANGIBLE ASSETS AND GOODWILL INTANGIBLE ASSETS AND GOODWILL - GOODWILL REALLOCATION (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2017segment | Jul. 31, 2016segment | Jan. 31, 2017USD ($) | |
Goodwill activity | |||
Number of Reportable Segments | 2 | 3 | 2 |
Number of Reporting Units | 3 | ||
Gross Goodwill | Customer Engagement | |||
Goodwill activity | |||
Goodwill - Reallocated in Response to Change in Segmentation | $ 51.8 | ||
Gross Goodwill | Cyber Intelligence | |||
Goodwill activity | |||
Goodwill - Reallocated in Response to Change in Segmentation | 22.2 | ||
Goodwill - Accumulated Impairment Losses | Customer Engagement | |||
Goodwill activity | |||
Goodwill - Reallocated in Response to Change in Segmentation | (25.3) | ||
Goodwill - Accumulated Impairment Losses | Cyber Intelligence | |||
Goodwill activity | |||
Goodwill - Reallocated in Response to Change in Segmentation | $ (10.8) |
INTANGIBLE ASSETS AND GOODWIL77
INTANGIBLE ASSETS AND GOODWILL - GOODWILL (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill activity | |||
Goodwill, gross at the beginning of the period | $ 1,331,683,000 | $ 1,274,041,000 | $ 1,267,682,000 |
Accumulated impairment losses | (66,865,000) | (66,865,000) | (66,865,000) |
Goodwill, net at the beginning of the period | 1,207,176,000 | 1,200,817,000 | |
Business combinations | 91,209,000 | 28,717,000 | |
Foreign currency translation and other | (33,567,000) | (22,358,000) | |
Goodwill, net, at the end of the period | 1,264,818,000 | 1,207,176,000 | 1,200,817,000 |
Goodwill Impairments | |||
Impairments of goodwill | 0 | 0 | 0 |
Customer Engagement | |||
Goodwill activity | |||
Goodwill, gross at the beginning of the period | 1,188,022,000 | 1,131,249,000 | 1,144,188,000 |
Accumulated impairment losses | (56,043,000) | (56,043,000) | (56,043,000) |
Goodwill, net at the beginning of the period | 1,075,206,000 | 1,088,145,000 | |
Business combinations | 91,209,000 | 7,695,000 | |
Foreign currency translation and other | (34,436,000) | (20,634,000) | |
Goodwill, net, at the end of the period | 1,131,979,000 | 1,075,206,000 | 1,088,145,000 |
Cyber Intelligence | |||
Goodwill activity | |||
Goodwill, gross at the beginning of the period | 143,661,000 | 142,792,000 | 123,494,000 |
Accumulated impairment losses | (10,822,000) | (10,822,000) | (10,822,000) |
Goodwill, net at the beginning of the period | 131,970,000 | 112,672,000 | |
Business combinations | 0 | 21,022,000 | |
Foreign currency translation and other | 869,000 | (1,724,000) | |
Goodwill, net, at the end of the period | $ 132,839,000 | $ 131,970,000 | $ 112,672,000 |
LONG-TERM DEBT - SUMMARY (Detai
LONG-TERM DEBT - SUMMARY (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 | Jun. 18, 2014 | Mar. 07, 2014 | Feb. 03, 2014 |
Debt Instrument | |||||
Unamortized debt discounts and issuance costs | $ (60,571) | $ (73,055) | |||
Total debt | 748,871 | 738,087 | |||
Current maturities of long-term debt | 4,611 | 2,104 | |||
Long-term debt | 744,260 | 735,983 | |||
1.50% Convertible Senior Notes | |||||
Debt Instrument | |||||
Principal Amount - 1.50% Convertible Senior Notes | 400,000 | 400,000 | $ 400,000 | ||
February 2014 Term Loans | |||||
Debt Instrument | |||||
Gross term loan borrowings | 130,060 | 130,729 | $ 300,000 | ||
March 2014 Term Loans | |||||
Debt Instrument | |||||
Gross term loan borrowings | 278,978 | 280,413 | $ 643,500 | ||
Other debt | |||||
Debt Instrument | |||||
Other Debt | $ 404 | $ 0 |
LONG-TERM DEBT - 1.50% CONVERTI
LONG-TERM DEBT - 1.50% CONVERTIBLE SENIOR NOTES (Details) | Jun. 18, 2014USD ($)$ / sharesshares | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015 |
Debt Instrument | ||||
Convertible Notes Payable, Noncurrent | $ 341,700,000 | |||
Unamortized debt discount | 53,300,000 | |||
Unamortized Debt Issuance Expense | 5,000,000 | |||
Common Stock, Number of Shares and Other Disclosures | ||||
Common stock issued in public offering (in shares) | shares | 5,750,000 | |||
1.50% Convertible Senior Notes | ||||
Debt Instrument | ||||
Principal Amount - 1.50% Convertible Senior Notes | $ 400,000,000 | 400,000,000 | $ 400,000,000 | |
Coupon Interest Rate | 1.50% | |||
Proceeds from issuance of convertible notes, net of issuance costs | $ 391,900,000 | |||
1.50% Convertible Notes - Conversion Ratio | 15.5129 | |||
1.50% Convertible Notes - Base Principal Amount For Conversion Rate | $ 1,000 | |||
1.50% Convertible Notes - Conversion Price (in dollars per share) | $ / shares | $ 64.46 | |||
1.50% Convertible Notes - Number of Common Shares (in shares) | 6,205,000 | |||
1.50% Convertible Notes - Carrying Value | $ 319,900,000 | |||
1.50% Convertible Notes - Carrying Value of Equity Component | $ 80,100,000 | $ 78,200,000 | ||
Assumed Noncovertible Debt Interest Rate | 5.00% | |||
Debt Issuance Costs | $ 7,600,000 | |||
Common stock issuance costs | 1,900,000 | |||
Effective Interest Rate | 5.29% | 5.29% | 5.29% | |
Common Stock, Number of Shares and Other Disclosures | ||||
Common stock issuance costs | $ 1,900,000 | |||
Conversion Scenario One | 1.50% Convertible Senior Notes | ||||
Debt Instrument | ||||
1.50% Convertible Notes - Threshold Trading Days | 20 | |||
1.50% Convertible Notes - Window of Consecutive Trading Days | 30 days | |||
1.50% Convertible Notes - Threshold Percentage for Conversion Trigger | 130.00% | |||
Conversion Scenario Two | 1.50% Convertible Senior Notes | ||||
Debt Instrument | ||||
1.50% Convertible Notes - Window of Consecutive Trading Days | 5 days | |||
1.50% Convertible Notes - Threshold Percentage for Conversion Trigger | 98.00% |
LONG-TERM DEBT - NOTE HEDGES AN
LONG-TERM DEBT - NOTE HEDGES AND WARRANTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 18, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Exercise Price of Warrants (in dollars per share) | $ 75 | |||
Note Hedges - Shares (in shares) | 6,205,000 | |||
Note Hedges - Strike Price (in dollars per share) | $ 64.46 | |||
Payments for convertible note hedges | $ 60,800 | $ 0 | $ 0 | $ 60,800 |
Warrants (in shares) | 6,205,000 | |||
Proceeds from issuance of warrants | $ 45,200 | $ 0 | $ 0 | $ 45,188 |
LONG-TERM DEBT - CREDIT AGREEME
LONG-TERM DEBT - CREDIT AGREEMENT - SUMMARY (Details) - USD ($) | Jan. 31, 2017 | Jan. 31, 2016 | Mar. 07, 2014 | Feb. 03, 2014 |
February 2014 Term Loans | ||||
Debt Instrument | ||||
Long-term Debt, Gross | $ 130,060,000 | $ 130,729,000 | $ 300,000,000 | |
March 2014 Term Loans | ||||
Debt Instrument | ||||
Long-term Debt, Gross | 278,978,000 | $ 280,413,000 | $ 643,500,000 | |
Revolving Credit Facility | ||||
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 |
LONG-TERM DEBT - CREDIT AGREE82
LONG-TERM DEBT - CREDIT AGREEMENT - MARCH 2014 EARLY RETIREMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Mar. 07, 2014 | |
Debt Instrument | ||||
Unamortized debt discount | $ 53,300 | |||
Losses on early retirements of debt | $ 0 | $ 0 | $ (12,546) | |
March 2013 Term Loans | ||||
Debt Instrument | ||||
Unamortized deferred costs | $ 4,300 | |||
Unamortized debt discount | $ 2,800 | |||
Losses on early retirements of debt | $ 7,100 |
LONG-TERM DEBT - CREDIT AGREE83
LONG-TERM DEBT - CREDIT AGREEMENT - JUNE 2014 PARTIAL EARLY RETREMENT (Details) - USD ($) $ in Thousands | Jun. 18, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Debt Instrument | ||||
Common stock issued in public offering (in shares) | 5,750,000 | |||
Losses on early retirements of debt | $ 0 | $ 0 | $ (12,546) | |
Combined February 2014 and March 2014 Term Loans | ||||
Debt Instrument | ||||
Proceeds from (Repayments of) Secured Debt | $ 530,000 | |||
Losses on early retirements of debt | 5,500 | |||
Revolving Credit Facility | ||||
Debt Instrument | ||||
Proceeds from (Repayments of) Secured Debt | $ 106,000 | |||
February 2014 Term Loans | ||||
Debt Instrument | ||||
Write Off Deferred Debt Issuance Costs Resulting From Early Debt Payment | 3,800 | |||
Write Off Debt Discount Resulting From Early Debt Payment | 400 | |||
March 2014 Term Loans | ||||
Debt Instrument | ||||
Write Off Deferred Debt Issuance Costs Resulting From Early Debt Payment | $ 1,300 |
LONG-TERM DEBT - CREDIT AGREE84
LONG-TERM DEBT - CREDIT AGREEMENT - INTEREST RATE DETAILS (Details) | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
February 2014 Term Loans | ||
Debt Instrument | ||
Interest Rate at end of period (as a percent) | 3.58% | 3.50% |
Effective Interest Rate | 4.11% | |
March 2014 Term Loans | ||
Debt Instrument | ||
Interest Rate at end of period (as a percent) | 3.58% | |
Effective Interest Rate | 3.66% | |
Base Rate | Credit Agreement (as amended) | Base Rate loans | ||
Debt Instrument | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Adjusted LIBO Rate | Credit Agreement (as amended) | Eurodollar loans | ||
Debt Instrument | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Debt Instrument, Description of Variable Rate Basis | Adjusted LIBOR Rate |
LONG-TERM DEBT - CREDIT AGREE85
LONG-TERM DEBT - CREDIT AGREEMENT - OTHER DETAILS (Details) | 12 Months Ended |
Jan. 31, 2017numerator | |
Debt Instrument | |
Consolidated Total Debt to Consolidated EBITDA Ratio | 4.50 |
Credit Agreement (as amended) | Revolving Credit Facility | |
Debt Instrument | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% |
LONG-TERM DEBT - FUTURE AMORTIZ
LONG-TERM DEBT - FUTURE AMORTIZATION (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 | Mar. 07, 2014 | Feb. 03, 2014 |
February 2014 Term Loans | ||||
Debt Instrument | ||||
2,018 | $ 1,337 | |||
2,019 | 1,337 | |||
2,020 | 127,386 | |||
Total | 130,060 | $ 130,729 | $ 300,000 | |
March 2014 Term Loans | ||||
Debt Instrument | ||||
2,018 | 2,869 | |||
2,019 | 2,869 | |||
2,020 | 273,240 | |||
Total | $ 278,978 | $ 280,413 | $ 643,500 |
LONG-TERM DEBT - INTEREST EXPEN
LONG-TERM DEBT - INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
1.50% Convertible Senior Notes | |||
Debt Instrument | |||
Interest Expense at Coupon or Contractual Rate | $ 6,000 | $ 6,000 | $ 3,717 |
Amortization of Debt Discount | 10,669 | 10,123 | 6,014 |
Amortization of Deferred Debt Issuance Costs | 1,007 | 955 | 566 |
Total Interest Expense | 17,676 | 17,078 | 10,297 |
Credit Agreement | |||
Debt Instrument | |||
Interest Expense at Coupon or Contractual Rate | 14,682 | 14,590 | 23,236 |
Amortization of Debt Discount | 58 | 56 | 116 |
Amortization of Deferred Debt Issuance Costs | 2,211 | 2,166 | 2,435 |
Total Interest Expense | 17,210 | 16,812 | 25,787 |
Interest Rate Swap | Credit Agreement | |||
Debt Instrument | |||
Interest Expense at Coupon or Contractual Rate | $ 259 | $ 0 | $ 0 |
SUPPLEMENTAL CONSOLIDATED FIN88
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Inventories | |||
Raw materials | $ 9,074 | $ 7,177 | |
Work-in-process | 4,355 | 6,668 | |
Finished goods | 4,108 | 4,467 | |
Total inventories | 17,537 | 18,312 | |
Property, Plant and Equipment | |||
Property and Equipment, gross | 194,568 | 165,974 | |
Accumulated Depreciation and Amortization | (117,017) | (97,070) | |
Property and Equipment, net | 77,551 | 68,904 | |
Depreciation [Abstract] | |||
Depreciation Expense | 25,200 | 20,300 | $ 17,700 |
Other Assets [Abstract] | |||
Long-term restricted cash and time deposits | 54,566 | 15,359 | |
Deferred debt issuance costs, net | 1,929 | 3,142 | |
Long-term security deposits | 4,123 | 4,112 | |
Other | 16,002 | 13,611 | |
Total other assets | 76,620 | 36,224 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |||
Compensation and benefits | 73,998 | 69,895 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 59,810 | 54,873 | |
Income taxes | 11,410 | 18,707 | |
Professional and consulting fees | 8,020 | 7,094 | |
Derivative financial instruments - current portion | 1,655 | 2,347 | |
Distributor and agent commissions | 10,384 | 8,471 | |
Taxes other than income taxes | 8,564 | 8,430 | |
Interest on indebtedness | 3,712 | 4,597 | |
Contingent consideration - current portion | 9,725 | 3,691 | |
Other | 25,946 | 28,862 | |
Total accrued expenses and other current liabilities | 213,224 | 206,967 | |
Other Liabilities [Abstract] | |||
Unrecognized tax benefits, including interest and penalties | 28,204 | 25,315 | |
Contingent consideration - long-term portion | 42,708 | 18,401 | |
Deferred rent expense | 13,805 | 12,553 | |
Obligations for severance compensation | 2,880 | 2,712 | |
Other | 6,762 | 2,647 | |
Total other liabilities | 94,359 | 61,628 | |
Other income (expense), net: | |||
Foreign currency losses, net | (2,743) | (8,037) | (13,402) |
(Losses) gains on derivative financial instruments, net | (322) | 394 | 3,986 |
Other, net | (3,861) | (4,634) | (155) |
Total other expense, net | (6,926) | (12,277) | (9,571) |
Supplemental information regarding consolidated cash flows | |||
Cash paid for interest | 21,892 | 20,734 | 29,296 |
Cash payments of income taxes, net | 29,582 | 17,165 | 15,362 |
Non-cash investing and financing transactions: | |||
Accrued but unpaid purchases of property and equipment | 2,868 | 4,562 | 4,258 |
Inventory transfers to property and equipment | 552 | 1,142 | 630 |
Liabilities for contingent consideration in business combinations | 26,400 | 16,238 | 8,347 |
Leasehold improvements funded by lease incentive | 82 | 1,721 | $ 2,242 |
Land and buildings | |||
Property, Plant and Equipment | |||
Property and Equipment, gross | 9,543 | 10,276 | |
Leasehold Improvements | |||
Property, Plant and Equipment | |||
Property and Equipment, gross | 29,247 | 28,538 | |
Software | |||
Property, Plant and Equipment | |||
Property and Equipment, gross | 61,810 | 47,615 | |
Equipment, Furniture and Other | |||
Property, Plant and Equipment | |||
Property and Equipment, gross | $ 93,968 | $ 79,545 |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - ISSUANCE OF COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 18, 2014 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Equity [Abstract] | ||||
Common stock issued in public offering (in shares) | 5,750,000 | |||
Shares issued, price per share | $ 47.75 | |||
Proceeds from public issuance of common stock | $ 265,600 | $ 0 | $ 0 | $ 274,563 |
Payments of Stock Issuance Costs | $ 700 |
STOCKHOLDERS' EQUITY STOCKHOL90
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - DIVIDENDS ON COMMON STOCK (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Equity [Abstract] | |||
Dividends, Common Stock | $ 0 | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY STOCKHOL91
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - SHARE REPURCHASE PROGRAM (Details) $ in Millions | Mar. 29, 2016USD ($) |
Equity [Abstract] | |
Stock Repurchase Program, Authorized Amount | $ 150 |
STOCKHOLDERS' EQUITY - TREASURY
STOCKHOLDERS' EQUITY - TREASURY STOCK (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Treasury stock, (in shares) | 1,654,000 | 348,000 | |
Treasury stock, cost | $ 57,147 | $ 10,251 | |
Number of shares of common stock repurchased (in shares) | 1,306,000 | 0 | 46,000 |
Cost of shares of common stock repurchased | $ 46,900 | $ 0 | $ 2,200 |
STOCKHOLDERS' EQUITY STOCKHOL93
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - SCHEDULE OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Activity in Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) - beginning balance | $ (116,194) | $ (94,335) | |
Other comprehensive (loss) income before reclassifications | (37,523) | (28,972) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1,139) | 7,113 | $ 1,558 |
Net other comprehensive income (loss) | (38,662) | (21,859) | |
Accumulated other comprehensive income (loss) - ending balance | (154,856) | (116,194) | (94,335) |
Unrealized gains (losses) on available-for-sale investments | |||
Activity in Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) - beginning balance | (110) | 101 | |
Other comprehensive (loss) income before reclassifications | 110 | (211) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Net other comprehensive income (loss) | 110 | (211) | |
Accumulated other comprehensive income (loss) - ending balance | 0 | (110) | 101 |
Foreign currency translation adjustments | |||
Activity in Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) - beginning balance | (114,213) | (86,444) | |
Other comprehensive (loss) income before reclassifications | (41,850) | (27,769) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Net other comprehensive income (loss) | (41,850) | (27,769) | |
Accumulated other comprehensive income (loss) - ending balance | (156,063) | (114,213) | (86,444) |
Foreign Exchange Contract | Unrealized gains (losses) on derivative financial instruments designated as hedges | |||
Activity in Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) - beginning balance | (1,871) | (7,992) | |
Other comprehensive (loss) income before reclassifications | 3,585 | (992) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1,139) | 7,113 | |
Net other comprehensive income (loss) | 2,446 | 6,121 | |
Accumulated other comprehensive income (loss) - ending balance | 575 | (1,871) | (7,992) |
Interest Rate Swap | Unrealized gains (losses) on derivative financial instruments designated as hedges | |||
Activity in Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive income (loss) - beginning balance | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | 632 | 0 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | |
Net other comprehensive income (loss) | 632 | 0 | |
Accumulated other comprehensive income (loss) - ending balance | $ 632 | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY STOCKHOL94
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - AMOUNTS RECLASSIFIED OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (1,257) | $ 8,151 | $ 1,857 |
Provision (benefit) for income taxes | (118) | 1,038 | 299 |
Amounts reclassified out of accumulated other comprehensive income (loss) | (1,139) | 7,113 | 1,558 |
Cost of revenue - product | |||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | (108) | 718 | 190 |
Cost of revenue - service and support | |||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | (115) | 672 | 159 |
Research and development, net | |||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | (651) | 4,556 | 1,050 |
Selling, general and administrative | |||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||
Derivative Instruments, (Gain) Loss Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (383) | $ 2,205 | $ 458 |
RESEARCH AND DEVELOPMENT, NET95
RESEARCH AND DEVELOPMENT, NET RESEARCH AND DEVELOPMENT, NET - R&D EXPENSES AND GRANTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Research and Development Expense [Abstract] | |||
Gross research and development expenses | $ 174.6 | $ 181.7 | $ 178.7 |
Grants from OCS and other government programs recorded as a reduction in gross research and development expenses | $ 3.5 | $ 4 | $ 5 |
RESEARCH AND DEVELOPMENT, NET96
RESEARCH AND DEVELOPMENT, NET RESEARCH AND DEVELOPMENT, NET - CAPITALIZED SOFTWARE DEVELOPMENT COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Movement in Capitalized Computer Software, Net [Roll Forward] | |||
Capitalized software development costs, net - beginning of the period | $ 11,992 | $ 10,112 | $ 8,483 |
Software development costs capitalized during the year | 2,338 | 5,027 | 6,083 |
Amortization of capitalized software development costs | (3,341) | (2,976) | (1,666) |
Impairments, foreign currency translation and other | (1,480) | (171) | (2,788) |
Capitalized software development costs, net - end of the period | 9,509 | 11,992 | 10,112 |
Capitalized Computer Software, Impairments | |||
Capitalized Computer Software, Impairments | $ 1,300 | $ 0 | $ 2,600 |
INCOME TAXES INCOME TAXES - (LO
INCOME TAXES INCOME TAXES - (LOSS) INCOME BEFORE TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic | $ (60,722) | $ (43,471) | $ (53,877) |
Foreign | 37,248 | 66,651 | 75,280 |
Total (loss) income before provision (benefit) for income taxes | $ (23,474) | $ 23,180 | $ 21,403 |
INCOME TAXES INCOME TAXES - PRO
INCOME TAXES INCOME TAXES - PROVISION (BENEFIT) FOR INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Current provision (benefit) for income taxes | |||
Federal | $ 604 | $ (2,997) | $ 342 |
State | 989 | 1,300 | 1,575 |
Foreign | 18,120 | 8,289 | 30,415 |
Total current provision for income taxes | 19,713 | 6,592 | 32,332 |
Deferred (benefit) provision for income taxes | |||
Federal | (8,179) | 2,244 | (40,007) |
State | (842) | 12 | (2,610) |
Foreign | (7,920) | (7,896) | (4,714) |
Total deferred benefit for income taxes | (16,941) | (5,640) | (47,331) |
Total provision (benefit) for income taxes | $ 2,772 | $ 952 | $ (14,999) |
INCOME TAXES INCOME TAXES - EFF
INCOME TAXES INCOME TAXES - EFFECTIVE TAX RATE RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Holiday [Line Items] | |||
Effective Income Tax Rate Decrease Due to Tax Incentive (as a percent) | 12.40% | 51.00% | 64.00% |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
U.S. federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income tax (benefit) provision at the U.S. federal statutory rate | $ (8,215) | $ 8,115 | $ 7,489 |
State income tax (benefit) provision | (312) | (79) | (1,739) |
Foreign tax rate differential | (5,794) | (3,068) | (9,650) |
Tax incentives | (3,507) | (12,293) | (14,865) |
Valuation allowances | (3,640) | (7,767) | (15,793) |
Stock-based and other compensation | 2,522 | 3,562 | 4,222 |
Non-deductible expenses | 5,315 | 6,061 | 2,156 |
Tax credits | (112) | (482) | (2,461) |
Tax contingencies | 5,566 | (6,281) | 14,762 |
Tax effects of reorganizations and liquidations | 975 | 6,136 | 0 |
U.S. tax effects of foreign operations | 9,542 | 7,574 | 1,451 |
Other, net | 432 | (526) | (571) |
Total provision (benefit) for income taxes | $ 2,772 | $ 952 | $ (14,999) |
Effective income tax rate (as a percent) | (11.80%) | 4.10% | (70.10%) |
Israel | |||
Income Tax Holiday [Line Items] | |||
Exemption Period for Income Taxes Attributable to Approved Enterprise (in years) | 2 years | ||
Israel | Minimum | |||
Income Tax Holiday [Line Items] | |||
Period of Reduced Income Tax Rate for Income Attributable to Approved Enterprise (in years) | 5 years | ||
Reduced Income Tax Rate for Income Attributable to Approved Enterprise (as a percent) | 10.00% | ||
Israel | Maximum | |||
Income Tax Holiday [Line Items] | |||
Period of Reduced Income Tax Rate for Income Attributable to Approved Enterprise (in years) | 8 years | ||
Reduced Income Tax Rate for Income Attributable to Approved Enterprise (as a percent) | 25.00% |
INCOME TAXES INCOME TAXES - 100
INCOME TAXES INCOME TAXES - EFFECTIVE TAX RATE RECONCILIATION - CORRECTION OF ERROR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Valuation allowances | $ (3,640) | $ (7,767) | $ (15,793) |
Tax contingencies | $ 5,566 | (6,281) | 14,762 |
Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Valuation allowances | 4,300 | 4,900 | |
Tax contingencies | $ (4,300) | $ (4,900) |
INCOME TAXES INCOME TAXES - DEF
INCOME TAXES INCOME TAXES - DEFERRED INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Liability Not Recognized Undistributed Foreign Earnings | $ 479,800 | |
Components of Deferred Tax Assets [Abstract] | ||
Accrued expenses | 10,627 | $ 9,553 |
Deferred revenue | 3,953 | 7,819 |
Loss carryforwards | 125,986 | 127,718 |
Tax credits | 7,972 | 8,308 |
Stock-based and other compensation | 20,187 | 20,213 |
Capitalized research and development expenses | 4,146 | 4,125 |
Other, net | 2,672 | 3,783 |
Total deferred tax assets | 175,543 | 181,519 |
Valuation allowance | (108,609) | (115,756) |
Deferred Tax Liabilities, Net | 4,304 | 9,514 |
Components of Deferred Tax Liabilities [Abstract] | ||
Goodwill and other intangible assets | (50,679) | (53,354) |
Unremitted earnings of foreign subsidiaries | (18,215) | (18,870) |
Other, net | (2,344) | (3,053) |
Total deferred tax liabilities | 71,238 | 75,277 |
Deferred Tax Assets (Liabilities), Net [Abstract] | ||
Long-term deferred tax assets | 21,510 | 17,528 |
Long-term deferred tax liabilities | $ (25,814) | $ (27,042) |
INCOME TAXES INCOME TAXES - 102
INCOME TAXES INCOME TAXES - DEFERRED INCOME TAXES - CORRECTION OF ERROR (Details) - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Loss carryforwards | $ 125,986 | $ 127,718 |
Deferred Tax Assets, Valuation Allowance | $ 108,609 | 115,756 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Loss carryforwards | 12,400 | |
Deferred Tax Assets, Valuation Allowance | $ (12,400) |
INCOME TAXES INCOME TAXES - CAR
INCOME TAXES INCOME TAXES - CARRYFORWARDS (Details) $ in Millions | Jan. 31, 2017USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward | $ 12.1 |
Tax Credit Carryforward Amount Indefinite Carryforward | 3 |
Tax Credit Carryforward Amount Subject to Expiration | 9.1 |
Internal Revenue Service (IRS) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 661 |
State and Local Jurisdictions | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 248.6 |
Foreign Countries | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 53.8 |
Operating Loss Carry Forwards Subject to Expiration | $ 8.8 |
INCOME TAXES INCOME TAXES - VAL
INCOME TAXES INCOME TAXES - VALUATION ALLOWANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Windfall Tax Benefits Included in Provision for Income Taxes | $ 0 | $ 0 | $ 0 |
Recorded valuation allowance | |||
Balance at beginning of year | (1,170) | (1,099) | (1,187) |
Adjustments to Valuation Allowances | (365) | (335) | 50 |
Balance at end of year | (1,842) | (1,170) | (1,099) |
Valuation Allowance of Deferred Tax Assets | |||
Recorded valuation allowance | |||
Balance at beginning of year | (115,756) | (123,837) | |
Balance at end of year | (108,609) | (115,756) | $ (123,837) |
Valuation Allowance of Deferred Tax Assets | Currency translation adjustment | |||
Recorded valuation allowance | |||
Adjustments to Valuation Allowances | 303 | 373 | |
Valuation Allowance of Deferred Tax Assets | Additional Paid-in Capital | |||
Recorded valuation allowance | |||
Adjustments to Valuation Allowances | 3,204 | (59) | |
Valuation Allowance of Deferred Tax Assets | Provision (benefit) for income taxes | |||
Recorded valuation allowance | |||
Adjustments to Valuation Allowances | $ 3,640 | $ 7,767 |
INCOME TAXES INCOME TAXES - 105
INCOME TAXES INCOME TAXES - VALUATION ALLOWANCES - CORRECTION OF ERROR (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | $ 1,842 | $ 1,170 | $ 1,099 | $ 1,187 |
Adjustments to Valuation Allowances | (365) | (335) | 50 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | 108,609 | 115,756 | 123,837 | |
Valuation Allowance of Deferred Tax Assets | Restatement Adjustment | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | (12,400) | $ (8,100) | ||
Provision (benefit) for income taxes | Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Adjustments to Valuation Allowances | $ 3,640 | 7,767 | ||
Provision (benefit) for income taxes | Valuation Allowance of Deferred Tax Assets | Restatement Adjustment | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Adjustments to Valuation Allowances | $ 4,300 |
INCOME TAXES INCOME TAXES - UNR
INCOME TAXES INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Changes in the balance of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 142,271 | $ 159,648 | $ 145,408 |
Increases related to tax positions taken during the current year | 11,034 | 9,465 | 15,522 |
Increases as a result of business combinations | 0 | 985 | 4,744 |
Increases related to tax positions taken during prior years | 585 | 2,514 | 1,927 |
Increases (decreases) related to foreign currency exchange rate | 648 | (741) | (3,900) |
Reductions for tax positions of prior years | (5,094) | (13,613) | (3,440) |
Reductions for settlements with tax authorities | (145) | (13,811) | 0 |
Lapses of statutes of limitation | (660) | (2,176) | (613) |
Gross unrecognized tax benefits, end of year | 148,639 | 142,271 | 159,648 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 143,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 500 | 4,400 | $ 1,900 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 3,900 | $ 3,300 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 3,200 |
FAIR VALUE MEASUREMENTS - FAIR
FAIR VALUE MEASUREMENTS - FAIR VALUE TABLE (Details) - Recurring - USD ($) $ in Thousands | Jan. 31, 2017 | Jan. 31, 2016 |
Level 1 | ||
Assets: | ||
Money market funds | $ 175 | $ 12,137 |
Foreign currency forward contracts | 0 | 0 |
Commercial paper and corporate debt securities, classified as cash and cash equivalents | 0 | |
Short-term investments, classified as available-for-sale | 0 | |
Total assets | 175 | 12,137 |
Liabilities: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration- business combinations | 0 | 0 |
Option to acquire noncontrolling interests of consolidated subsidiaries | 0 | |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
Foreign currency forward contracts | 1,646 | 113 |
Commercial paper and corporate debt securities, classified as cash and cash equivalents | 5,030 | |
Short-term investments, classified as available-for-sale | 52,932 | |
Total assets | 3,075 | 58,075 |
Liabilities: | ||
Foreign currency forward contracts | 1,246 | 2,377 |
Contingent consideration- business combinations | 0 | 0 |
Option to acquire noncontrolling interests of consolidated subsidiaries | 0 | |
Total liabilities | 1,654 | 2,377 |
Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Commercial paper and corporate debt securities, classified as cash and cash equivalents | 0 | |
Short-term investments, classified as available-for-sale | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration- business combinations | 52,733 | 22,391 |
Option to acquire noncontrolling interests of consolidated subsidiaries | 3,550 | |
Total liabilities | 56,283 | $ 22,391 |
Interest Rate Swap | Level 1 | ||
Assets: | ||
Interest rate swap agreement | 0 | |
Liabilities: | ||
Interest rate swap agreement | 0 | |
Interest Rate Swap | Level 2 | ||
Assets: | ||
Interest rate swap agreement | 1,429 | |
Liabilities: | ||
Interest rate swap agreement | 408 | |
Interest Rate Swap | Level 3 | ||
Assets: | ||
Interest rate swap agreement | 0 | |
Liabilities: | ||
Interest rate swap agreement | $ 0 |
FAIR VALUE MEASUREMENTS - CONTI
FAIR VALUE MEASUREMENTS - CONTINGENT CONSIDERATION TABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3) | |||
Payments of contingent consideration | $ (3,300) | $ (7,400) | $ (12,000) |
Liability for contingent consideration | |||
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3) | |||
Fair value measurement at the beginning of the period | 22,391 | 14,507 | |
Contingent consideration liabilities recorded for business combinations | 26,400 | 16,238 | |
Change in fair value, recorded in operating expenses | 7,255 | (910) | |
Payments of contingent consideration | (3,313) | (7,444) | |
Fair value measurement at the end of the period | $ 52,733 | $ 22,391 | $ 14,507 |
Liability for contingent consideration | Minimum | |||
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3) | |||
Discount rates (as a percent) | 3.00% | 3.00% | |
Liability for contingent consideration | Maximum | |||
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3) | |||
Discount rates (as a percent) | 20.00% | 41.70% |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - OPTION TO ACQUIRE NONCONTROLLING INTERESTS (Details) - Option to acquire noncontrolling interests $ in Thousands | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3) | |
Fair value measurement at the beginning of the period | $ 0 |
Acquisition of option to acquire noncontrolling interests of consolidated subsidiaries | 3,134 |
Change in fair value, recorded in operating expenses | 416 |
Fair value measurement at the end of the period | $ 3,550 |
Discount rates (as a percent) | 14.00% |
FAIR VALUE MEASUREMENTS - OTHER
FAIR VALUE MEASUREMENTS - OTHER FAIR VALUE DISCLOSURES (Details) - Estimate of Fair Value Measurement - USD ($) $ in Millions | Jan. 31, 2017 | Jan. 31, 2016 |
Level 3 | Term loans | ||
Other Financial Instruments | ||
Long-term debt | $ 410 | $ 411 |
Level 2 | 1.50% Convertible Senior Notes | ||
Other Financial Instruments | ||
Convertible Debt, Fair Value Disclosures | $ 381 | $ 367 |
DERIVATIVE FINANCIAL INSTRUM111
DERIVATIVE FINANCIAL INSTRUMENTS - ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Fair Values of Derivative Financial Instruments | ||
Assets, Fair Value | $ 3,075 | $ 113 |
Liabilities, Fair Value | $ 1,654 | 2,377 |
Foreign currency forward contracts | ||
Fair Values of Derivative Financial Instruments | ||
Term to maturity of derivative contracts is generally less than this period (in months) | 12 months | |
Derivative, Notional Amount | $ 144,000 | 136,400 |
Interest Rate Swap | ||
Fair Values of Derivative Financial Instruments | ||
Derivative, Notional Amount | 200,000 | |
Prepaid expenses and other current assets | Foreign currency forward contracts | Derivative designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Assets, Fair Value | 927 | 0 |
Prepaid expenses and other current assets | Foreign currency forward contracts | Derivative not designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Assets, Fair Value | 719 | 113 |
Other assets | Interest Rate Swap | Derivative designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Assets, Fair Value | 1,429 | 0 |
Accrued expenses and other current liabilities | Foreign currency forward contracts | Derivative designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Liabilities, Fair Value | 288 | 2,108 |
Accrued expenses and other current liabilities | Foreign currency forward contracts | Derivative not designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Liabilities, Fair Value | 958 | 239 |
Accrued expenses and other current liabilities | Interest Rate Swap | Derivative designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Liabilities, Fair Value | 408 | 0 |
Other liabilities | Foreign currency forward contracts | Derivative not designated as hedging instruments | ||
Fair Values of Derivative Financial Instruments | ||
Liabilities, Fair Value | $ 0 | $ 30 |
DERIVATIVE FINANCIAL INSTRUM112
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (Details) - Interest Rate Swap $ in Millions | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Derivative [Line Items] | |
Derivative, Fixed Interest Rate | 4.143% |
Derivative, Floor Interest Rate | 0.75% |
Derivative, Basis Spread on Variable Rate | 2.75% |
Derivative, Notional Amount | $ 200 |
Derivative, Inception Date | Nov. 1, 2016 |
Derivative, Maturity Date | Sep. 6, 2019 |
DERIVATIVE FINANCIAL INSTRUM113
DERIVATIVE FINANCIAL INSTRUMENTS - GAINS AND LOSSES (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Net gains (losses) reclassified from Other comprehensive (loss) income to the consolidated statements of operations | $ (1,257,000) | $ 8,151,000 | $ 1,857,000 |
Cash flow hedging | Derivative designated as hedging instruments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Net gains (losses) recognized in Other comprehensive (loss) income | 1,207,000 | (1,871,000) | (7,992,000) |
Foreign currency forward contracts | Derivative designated as hedging instruments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Foreign currency forward contracts underlying net gains recorded in accumulated other comprehensive loss expected to be reclassified into earnings within the next twelve months | (600,000) | ||
Foreign currency forward contracts | Derivative not designated as hedging instruments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
(Loss) Gains on Derivative Instruments | (323,000) | 394,000 | 3,986,000 |
Foreign currency forward contracts | Cash flow hedging | Derivative designated as hedging instruments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Net gains (losses) recognized in Other comprehensive (loss) income | 575,000 | (1,871,000) | (7,992,000) |
Net gains (losses) reclassified from Other comprehensive (loss) income to the consolidated statements of operations | 1,257,000 | (8,151,000) | (1,857,000) |
Gains (losses) from ineffectiveness | 0 | 0 | 0 |
Interest Rate Swap | Cash flow hedging | Derivative designated as hedging instruments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Net gains (losses) recognized in Other comprehensive (loss) income | $ 632,000 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION AND114
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - 2015 LONG-TERM STOCK INCENTIVE PLAN (Details) - 2015 Long-Term Stock Incentive Plan - 2015 Plan | Jun. 25, 2015shares |
Stock-Based Compensation Plans | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,700,000 |
Reduction in 2015 Plan Capacity - Options and Stock-Settled SARs | 1 |
Reduction in 2015 Plan Capacity - Other Awards | 2.29 |
STOCK-BASED COMPENSATION AND115
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK-BASED COMPENSATION - BY LINE ITEM (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | $ 65,608 | $ 64,549 | $ 54,458 |
Income tax benefits related to stock-based compensation (before consideration of valuation allowances) | 15,752 | 14,385 | 12,364 |
Total stock-based compensation, net of taxes | 49,856 | 50,164 | 42,094 |
Cost of revenue - product | |||
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | 1,290 | 1,466 | 1,228 |
Cost of revenue - service and support | |||
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | 7,297 | 5,719 | 5,028 |
Research and development, net | |||
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | 11,637 | 9,195 | 6,421 |
Selling, general and administrative | |||
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | $ 45,384 | $ 48,169 | $ 41,781 |
STOCK-BASED COMPENSATION AND116
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK-BASED COMPENSATION - BY CLASSIFICATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-based compensation expense | |||
Allocated share-based compensation expense | $ 65,608 | $ 64,549 | $ 54,458 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 700 | 500 | 300 |
Equity-classified awards | |||
Stock-based compensation expense | |||
Allocated share-based compensation expense | 55,123 | 58,028 | 46,634 |
Total equity-settled awards | |||
Stock-based compensation expense | |||
Allocated share-based compensation expense | 65,421 | 64,387 | 54,314 |
Other liability-classified awards | |||
Stock-based compensation expense | |||
Allocated share-based compensation expense | 187 | 162 | 144 |
Stock Bonus Program | Equity-classified awards | |||
Stock-based compensation expense | |||
Allocated share-based compensation expense | $ 10,298 | $ 6,359 | $ 7,680 |
STOCK-BASED COMPENSATION AND117
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - RESTRICTED STOCK UNITS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Restricted stock units and restricted stock awards | |||
Summary of award activity | |||
Beginning balance (in shares) | 2,649 | 2,545 | 2,250 |
Granted (in shares) | 1,870 | 1,729 | 1,504 |
Released (in shares) | (1,433) | (1,312) | (1,009) |
Forfeited (in shares) | (344) | (313) | (200) |
Ending balance (in shares) | 2,742 | 2,649 | 2,545 |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 54.57 | $ 40.96 | $ 33.77 |
Granted (in dollars per share) | 35.33 | 62.62 | 46.11 |
Released (in dollars per share) | 47.98 | 39.75 | 33.11 |
Forfeited (in dollars per share) | 52.20 | 50.56 | 38.46 |
Ending balance (in dollars per share) | $ 45.20 | $ 54.57 | $ 40.96 |
Performance based RSU's | |||
Summary of award activity | |||
Beginning balance (in shares) | 332 | 497 | 477 |
Granted (in shares) | 312 | 195 | 250 |
Released (in shares) | (159) | (239) | (189) |
Forfeited (in shares) | (47) | (121) | (41) |
Ending balance (in shares) | 438 | 332 | 497 |
RSUs | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 70.2 | ||
Remaining weighted-average vesting period over which expense is expected to be recognized (in years) | 1 year 8 months | ||
Unrecognized compensation expense, requisite service period not begun | $ 2.1 | ||
Total fair value of units vested | $ 68.7 | $ 52.2 | $ 33.4 |
STOCK-BASED COMPENSATION AND118
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - PERFORMANCE RESTRICTED STOCK UNITS (Details) - Performance based RSU's - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-Based Compensation Plans | |||
Beginning balance (in shares) | 332 | 497 | 477 |
Granted (in shares) | 312 | 195 | 250 |
Released (in shares) | (159) | (239) | (189) |
Forfeited (in shares) | (47) | (121) | (41) |
Ending balance (in shares) | 438 | 332 | 497 |
STOCK-BASED COMPENSATION AND119
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK OPTIONS (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock option activity | |||
Beginning balance (in shares) | 3 | 9 | 516 |
Exercised (in shares) | (1) | (6) | (505) |
Expired (in shares) | 0 | 0 | (2) |
Ending balance (in shares) | 2 | 3 | 9 |
Stock options exercisable (in shares) | 2 | 3 | 9 |
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 9.59 | $ 28.74 | $ 34.60 |
Exercised (in dollars per share) | 8.71 | 36.10 | 34.71 |
Expired (in dollars per share) | 0 | 0 | 23.13 |
Ending balance (in dollars per share) | 10.09 | 9.59 | 28.74 |
Stock options exercisable (in dollars per share) | $ 10.09 | $ 9.59 | $ 28.74 |
STOCK-BASED COMPENSATION AND120
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK OPTIONS SUPPLEMENTAIL DISCLOSURES (Details) - Stock options - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-Based Compensation Plans | |||
Intrinsic value of options exercised | $ 24 | $ 164 | $ 8,759 |
Cash received from the exercise of stock options | 8 | 232 | 17,606 |
Tax benefits realized from stock options exercised | 6 | 107 | 2,306 |
Fair value of options vested | $ 35 | $ 56 | $ 178 |
STOCK-BASED COMPENSATION AND121
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - STOCK BONUS PROGRAM (Details) - USD ($) $ in Millions | Mar. 22, 2017 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 |
Combined Stock Bonus Program and Bonus Share Program | ||||
Stock-Based Compensation Plans | ||||
Total accrued liability | $ 10 | $ 6.6 | ||
Stock Bonus Program | ||||
Stock-Based Compensation Plans | ||||
Vesting period for executive officers (in years) | 1 year | |||
Trailing period of average price of common stock to determine the number of shares to be issued (in days) | 5 days | |||
Stock Bonus Program, number of shares authorized | 0 | 125,000 | 125,000 | |
Discount from market price (as a percent) | 0.00% | 0.00% | 15.00% | |
Shares in lieu of cash bonus - granted and released | 25,000 | 43,000 | 82,000 | |
Shares granted in respect of discount | 0 | 7,000 | 12,000 | |
Shares released in respect of discount | 0 | 5,000 | 9,000 | |
Subsequent Event | 2018 Plan | Stock Bonus Program | ||||
Stock-Based Compensation Plans | ||||
Discount from market price (as a percent) | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 125,000 |
STOCK-BASED COMPENSATION AND122
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - BONUS SHARE PROGRAM (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | $ 65,608 | $ 64,549 | $ 54,458 |
Stock Bonus Program | |||
Stock-Based Compensation Plans | |||
Stock Bonus Program, number of shares authorized | 0 | 125,000 | 125,000 |
Discount from market price (as a percent) | 0.00% | 0.00% | 15.00% |
Shares in lieu of cash bonus - granted and released | 25,000 | 43,000 | 82,000 |
Bonus Share Program | |||
Stock-Based Compensation Plans | |||
Allocated share-based compensation expense | $ 4,700 | ||
Granted (in shares) | 74,000 | ||
Shares in lieu of cash bonus - granted and released | 171,000 | ||
2016 Plan | Bonus Share Program | |||
Stock-Based Compensation Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 75,000 | ||
2016 Plan | Combined Stock Bonus Program and Bonus Share Program | |||
Stock-Based Compensation Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 200,000 | ||
2017 Plan | 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 AND123
STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - OTHER BENEFIT PLANS (Details) | 12 Months Ended | ||
Jan. 31, 2017USD ($)yr | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
401(k) Plan and Other Retirement Plans | |||
Minimum age required to participate in 401(k) plan (in years) | yr | 21 | ||
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 | 2,600,000 | $ 2,200,000 | $ 2,100,000 |
Liability for Severance Pay | |||
Severance expenses | $ 6,400,000 | $ 7,200,000 | $ 6,800,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Corporate Joint Venture - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 400 | $ 500 |
Related Party Transaction, Revenues from Transactions with Related Party | $ 300 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - RENT EXPENSE; PURCHASE OBLIGATIONS AND OFF-BALANCE SHEET RISK (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2017USD ($)mo | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Rent expenses incurred under all operating leases | $ 25.6 | $ 19.4 | $ 17.2 |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 0.6 | ||
Minimum annual sublease rental income | 0.2 | ||
Maximum annual sublease rental income | 0.4 | ||
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |||
Unconditional purchase obligations | $ 109.8 | ||
Unconditional purchase obligations, subsequent fulfillment period (in months) | mo | 12 | ||
Concentration Risks, Types, No Concentration Percentage [Abstract] | |||
Outstanding letters of credit and surety bonds | $ 92.6 |
COMMITMENTS AND CONTINGENCIE126
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES - LEASE COMMITMENTS (Details) $ in Thousands | Jan. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 25,447 |
2,019 | 24,138 |
2,020 | 17,865 |
2,021 | 15,460 |
2,022 | 14,335 |
Thereafter | 56,945 |
Operating Leases, Future Minimum Payments Due | $ 154,190 |
COMMITMENTS AND CONTINGENCIE127
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES - WARRANTY OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Movement in Standard Product Warranty Accrual | |||
Warranty liability, beginning of year | $ 826 | $ 633 | $ 706 |
Provision charged to (credited against) expenses | 797 | 473 | (60) |
Warranty charges | (658) | (278) | 0 |
Foreign currency translation and other | (3) | (2) | (13) |
Warranty liability, end of year | $ 962 | $ 826 | $ 633 |
Customer Engagement | Hardware | |||
Product Liability Contingency | |||
Warranty period (in days/years) | 1 year | ||
Customer Engagement | Software | |||
Product Liability Contingency | |||
Warranty period (in days/years) | 90 days | ||
Cyber Intelligence | Minimum | |||
Product Liability Contingency | |||
Warranty period (in days/years) | 90 days | ||
Cyber Intelligence | Maximum | |||
Product Liability Contingency | |||
Warranty period (in days/years) | 3 years |
COMMITMENTS AND CONTINGENCIE128
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES - LITIGATION (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2017USD ($) | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Loss Contingency, Damages Sought, Value | $ 150 |
SEGMENT, GEOGRAPHIC, AND SIG129
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - CHANGE IN OPERATING SEGMENTS (Details) | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2017segment | Jul. 31, 2016segment | Jan. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | 2 | 3 | 2 |
SEGMENT, GEOGRAPHIC, AND SIG130
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - SEGMENT OPERATING RESULTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue: | |||||||||||
Revenue | $ 295,859 | $ 258,902 | $ 261,921 | $ 245,424 | $ 280,794 | $ 284,054 | $ 295,882 | $ 269,536 | $ 1,062,106 | $ 1,130,266 | $ 1,128,436 |
Total revenue | 295,859 | 258,902 | 261,921 | 245,424 | 280,794 | 284,054 | 295,882 | 269,536 | 1,062,106 | 1,130,266 | 1,128,436 |
Reconciliation of segment contribution to operating income | |||||||||||
Amortization of acquired intangible assets | 81,500 | 78,900 | 76,200 | ||||||||
Allocated share-based compensation expense | 65,608 | 64,549 | 54,458 | ||||||||
Total operating expenses | 622,111 | 633,508 | 634,177 | ||||||||
Operating income | 17,366 | 67,852 | 79,111 | ||||||||
Other expense, net | (40,840) | (44,672) | (57,708) | ||||||||
(Loss) income before provision (benefit) for income taxes | $ 6,484 | $ (4,075) | $ (10,020) | $ (15,863) | $ 14,620 | $ 10,021 | $ (3,139) | $ 1,678 | (23,474) | 23,180 | 21,403 |
Customer Engagement | |||||||||||
Revenue: | |||||||||||
Revenue | 705,897 | 694,857 | 713,505 | ||||||||
Total revenue | 705,897 | 694,857 | 713,505 | ||||||||
Reconciliation of segment contribution to operating income | |||||||||||
Operating income | 269,017 | 264,378 | 286,587 | ||||||||
Customer Engagement | Segment Contribution | |||||||||||
Revenue: | |||||||||||
Revenue | 716,163 | 698,298 | 742,537 | ||||||||
Total revenue | 716,163 | 698,298 | 742,537 | ||||||||
Customer Engagement | Unallocated | |||||||||||
Revenue: | |||||||||||
Revenue adjustments | (10,266) | (3,441) | (29,032) | ||||||||
Cyber Intelligence | |||||||||||
Revenue: | |||||||||||
Revenue | 356,209 | 435,409 | 414,931 | ||||||||
Total revenue | 356,209 | 435,409 | 414,931 | ||||||||
Reconciliation of segment contribution to operating income | |||||||||||
Operating income | 85,777 | 133,186 | 133,203 | ||||||||
Cyber Intelligence | Segment Contribution | |||||||||||
Revenue: | |||||||||||
Revenue | 356,533 | 436,343 | 415,626 | ||||||||
Total revenue | 356,533 | 436,343 | 415,626 | ||||||||
Cyber Intelligence | Unallocated | |||||||||||
Revenue: | |||||||||||
Revenue adjustments | (324) | (934) | (695) | ||||||||
Segment Contribution | |||||||||||
Reconciliation of segment contribution to operating income | |||||||||||
Operating income | 354,794 | 397,564 | 419,790 | ||||||||
Unallocated | |||||||||||
Reconciliation of segment contribution to operating income | |||||||||||
Amortization of acquired intangible assets | 81,461 | 78,904 | 76,167 | ||||||||
Allocated share-based compensation expense | 65,608 | 64,549 | 54,458 | ||||||||
Other unallocated expenses | 190,359 | 186,259 | 210,054 | ||||||||
Total operating expenses | $ 337,428 | $ 329,712 | $ 340,679 |
SEGMENT, GEOGRAPHIC, AND SIG131
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - REVENUE AND LONG-LIVED ASSETS BY GEOGRAPHY (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | $ 295,859 | $ 258,902 | $ 261,921 | $ 245,424 | $ 280,794 | $ 284,054 | $ 295,882 | $ 269,536 | $ 1,062,106 | $ 1,130,266 | $ 1,128,436 |
Property and equipment, net | 77,551 | 68,904 | 77,551 | 68,904 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 438,034 | 430,626 | 430,565 | ||||||||
Property and equipment, net | 37,751 | 28,572 | 37,751 | 28,572 | |||||||
Other Americas Regions | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 134,111 | 150,435 | 157,992 | ||||||||
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 572,145 | 581,061 | 588,557 | ||||||||
EMEA | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 322,130 | 350,217 | 347,056 | ||||||||
APAC | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 167,831 | 198,988 | $ 192,823 | ||||||||
Israel | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Property and equipment, net | 25,421 | 25,350 | 25,421 | 25,350 | |||||||
Other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Property and equipment, net | $ 14,379 | $ 14,982 | $ 14,379 | $ 14,982 |
SEGMENT, GEOGRAPHIC, AND SIG132
SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION SEGMENT, GEOGRAPHIC, AND SIGNIFICANT CUSTOMER INFORMATION - MAJOR CUSTOMERS (Details) | 12 Months Ended |
Jan. 31, 2017 | |
Revenue, Major Customer | |
Sales to an individual customer | No single customer accounted for more than 10% of our revenue during the years ended January 31, 2017, 2016 and 2015. |
SELECTED QUARTERLY FINANCIAL133
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) - QUARTERLY DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 295,859 | $ 258,902 | $ 261,921 | $ 245,424 | $ 280,794 | $ 284,054 | $ 295,882 | $ 269,536 | $ 1,062,106 | $ 1,130,266 | $ 1,128,436 |
Gross Profit | 179,591 | 155,696 | 159,460 | 144,730 | 179,116 | 178,537 | 177,344 | 166,363 | 639,477 | 701,360 | 713,288 |
(Loss) income before (benefit) provision for income taxes | 6,484 | (4,075) | (10,020) | (15,863) | 14,620 | 10,021 | (3,139) | 1,678 | (23,474) | 23,180 | 21,403 |
Net (loss) income | 8,459 | (7,434) | (11,078) | (16,193) | 18,787 | 8,470 | (5,760) | 731 | (26,246) | 22,228 | 36,402 |
Net (loss) income attributable to Verint Systems Inc. | $ 8,018 | $ (8,237) | $ (11,705) | $ (17,456) | $ 17,505 | $ 7,634 | $ (7,085) | $ (416) | $ (29,380) | $ 17,638 | $ 30,931 |
Basic (in dollars per share) | $ 0.13 | $ (0.13) | $ (0.19) | $ (0.28) | $ 0.28 | $ 0.12 | $ (0.11) | $ (0.01) | $ (0.47) | $ 0.29 | $ 0.53 |
Diluted (in dollars per share) | $ 0.13 | $ (0.13) | $ (0.19) | $ (0.28) | $ 0.28 | $ 0.12 | $ (0.11) | $ (0.01) | $ (0.47) | $ 0.28 | $ 0.52 |