INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Jan. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Acquisition-related intangible assets consisted of the following as of January 31, 2018 and 2017:



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



	January 31, 2017
(in thousands)	Cost		Accumulated Amortization			Net
Intangible assets, all 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

The following table presents net acquisition-related intangible assets by reportable segment as of January 31, 2018 and 2017:



	January 31,
(in thousands)	2018		2017
Customer Engagement	$	213,963	$	207,436
Cyber Intelligence	12,130		27,823
Total	$	226,093	$	235,259

Total amortization expense recorded for acquisition-related intangible assets was $72.4 million, $81.5 million, and $78.9 million for the years ended January 31, 2018, 2017, and 2016, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars.

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



(in thousands)
Years Ending January 31,	Amount
2019	$	53,733
2020	42,265
2021	34,434
2022	30,578
2023	24,795
Thereafter	40,288
Total	$	226,093

During the year ended January 31, 2018, we recorded $3.3 million of impairments for certain acquired customer-related intangible assets, which is included within selling, general and administrative expenses. 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 year ended January 31, 2017.

As discussed in Note 15, “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, 2018, and 2017, in total and by reportable segment, was as follows:



				Reportable Segment
(in thousands)	Total			Customer Engagement			Cyber Intelligence
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

Year Ended January 31, 2018:
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
Business combinations, including prior year adjustments	81,180			77,345			3,835
Foreign currency translation and other	42,301			41,769			532
Goodwill, net, at January 31, 2018	$	1,388,299		$	1,251,093		$	137,206

Balance at January 31, 2018:
Goodwill, gross, at January 31, 2018	$	1,455,164		$	1,307,136		$	148,028
Accumulated impairment losses through January 31, 2018	(66,865		)	(56,043		)	(10,822		)
Goodwill, net, at January 31, 2018	$	1,388,299		$	1,251,093		$	137,206

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 Situational Intelligence, which is a component of our Cyber Intelligence operating segment. Based upon our November 1, 2017 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, 2018 and 2017.

No goodwill impairment was identified for the years ended January 31, 2018, 2017, and 2016.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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