INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Apr. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

6. INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets consisted of the following as of April 30, 2020 and January 31, 2020:


	April 30, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	458,725	$	(330,492)	$	128,233
Acquired technology	291,603		(243,894)		47,709
Trade names	12,823		(7,411)		5,412
Distribution network	4,440		(4,440)		—
Non-competition agreements	1,307		(158)		1,149
Total intangible assets	$	768,898	$	(586,395)	$	182,503


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

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

The following table presents net acquisition-related intangible assets by reportable segment as of April 30, 2020 and January 31, 2020:


	April 30,		January 31,
(in thousands)	2020		2020
Customer Engagement	$	175,241	$	189,896
Cyber Intelligence	7,262		7,868
Total	$	182,503	$	197,764

Total amortization expense recorded for acquisition-related intangible assets was $12.7 million and $14.4 million for the three months ended April 30, 2020 and 2019, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars.

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


(in thousands)
Years Ending January 31,	Amount
2021 (remainder of year)	$	36,856
2022	45,885
2023	37,978
2024	27,805
2025	11,754
2026 and thereafter	22,225
Total	$	182,503

Goodwill activity for the three months ended April 30, 2020, in total and by reportable segment, was as follows:


			Reportable Segment
(in thousands)	Total		Customer Engagement		Cyber Intelligence
Three Months Ended April 30, 2020:
Goodwill, gross, at January 31, 2020	$	1,536,076	$	1,367,111	$	168,965
Accumulated impairment losses through January 31, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at January 31, 2020	1,469,211		1,311,068		158,143
Foreign currency translation and other	(16,420)		(15,764)		(656)
Business combinations, including adjustments to prior period acquisitions	(357)		—		(357)
Goodwill, net, at April 30, 2020	$	1,452,434	$	1,295,304	$	157,130

Balance at April 30, 2020:
Goodwill, gross, at April 30, 2020	$	1,519,299	$	1,351,347	$	167,952
Accumulated impairment losses through April 30, 2020	(66,865)		(56,043)		(10,822)
Goodwill, net, at April 30, 2020	$	1,452,434	$	1,295,304	$	157,130

We evaluated whether there has been a change in circumstances as of April 30, 2020 and as of the date of this filing in response to the economic impacts seen globally from COVID-19. The valuation methodology to determine the fair value of the reporting units is sensitive to management's forecasts of future revenue, profitability and market conditions. At this time, the impact of COVID-19 on our forecasts is uncertain and increases the subjectivity that will be involved in evaluating goodwill for potential impairment. We do expect declines in our reporting unit fair values as a result of delayed or reduced demand for our products and services, driving lower revenue and operating income across our businesses. However, given the significant difference between the reporting unit fair values and their carrying values in the most recent quantitative analyses completed as of November 1, 2019, as well as expected long-term recovery within all reporting units, management does not believe that these events were severe enough to result in an impairment trigger. We will continue to monitor the environment to determine whether the impacts to our reporting units represent an event or change in circumstances that may trigger a need to assess for impairment.