0001824814-21-000007 | 20-F | XBRL Viewer

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Cover Page	12 Months Ended
Cover Page	Jan. 31, 2021 shares
Entity Listings [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Jan. 31, 2021
Current Fiscal Year End Date	--01-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-39829
Entity Registrant Name	Cognyte Software Ltd.
Entity Incorporation, State or Country Code	L3
Entity Address, Address Line One	33 Maskit
Entity Address, City or Town	Herzliya Pituach
Entity Address, Postal Zip Code	4673333
Entity Address, Country	IL
Title of 12(b) Security	Ordinary Shares, no par value
Trading Symbol	CGNT
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding (in shares)	65,773,335
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001824814
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Entity Listings [Line Items]
Entity Address, Address Line One	33 Maskit
Entity Address, City or Town	Herzliya Pituach
Entity Address, Postal Zip Code	4673333
Entity Address, Country	IL
Contact Personnel Name	David Abadi
City Area Code	972-9
Local Phone Number	962-2300

Combined Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Current Assets:
Cash and cash equivalents	$ 78,570	$ 201,090
Restricted cash and cash equivalents, and restricted bank time deposits	27,042	43,813
Short-term investments	4,713	6,603
Accounts receivable, net of allowance for doubtful accounts of 4.6 million and 4.1 million, respectively	175,001	180,441
Contract assets, net	20,317	28,873
Inventories	14,542	14,893
Total prepaid expenses and other current assets	30,051	36,486
Total current assets	350,236	512,199
Property and equipment, net	37,595	41,579
Operating lease right-of-use assets	32,126	34,152
Goodwill	158,183	158,143
Intangible assets, net	5,299	7,868
Deferred income taxes	3,303	2,015
Other assets	42,076	49,155
Total assets	628,818	805,111
Current Liabilities:
Accounts payable	41,552	43,389
Accrued expenses and other current liabilities	91,692	85,947
Contract liabilities	127,012	143,695
Due to parent, current	38,772	7,025
Total current liabilities	299,028	280,056
Long-term contract liabilities	22,037	23,305
Operating lease liabilities	24,135	24,446
Deferred income taxes	4,049	4,732
Other liabilities	9,198	17,401
Total liabilities	358,447	349,940
Commitments and Contingencies
Equity:
Net parent investment	273,006	458,467
Accumulated other comprehensive loss	(15,505)	(13,923)
Total Cognyte Business of Verint Systems Inc. equity	257,501	444,544
Noncontrolling interest	12,870	10,627
Total equity	270,371	455,171
Total liabilities and equity	$ 628,818	$ 805,111

Combined Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,559	$ 4,085	$ 2,911	$ 1,763

Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Revenue:
Total revenue	$ 443,458	$ 457,109	$ 433,460
Cost of revenue:
Amortization of acquired technology	943	2,405	7,416
Total cost of revenue	132,669	164,005	176,772
Gross profit	310,789	293,104	256,688
Operating expenses:
Research and development, net	128,705	111,297	100,006
Selling, general and administrative	162,590	153,901	137,342
Amortization of other acquired intangible assets	1,218	593	651
Total operating expenses	292,513	265,791	237,999
Operating income	18,276	27,313	18,689
Other income (expense), net:
Interest income	1,347	3,509	3,165
Interest expense	(185)	(481)	(499)
Other income (expense), net	5,286	(404)	(1,414)
Total other income, net	6,448	2,624	1,252
Income before provision for income taxes	24,724	29,937	19,941
Provision for income taxes	4,414	2,567	7,620
Net income	20,310	27,370	12,321
Net income attributable to noncontrolling interest	6,107	7,179	3,593
Net income attributable to Cognyte Business of Verint Systems Inc.	$ 14,203	$ 20,191	$ 8,728
Net income per ordinary share attributable to Cognyte Business of Verint Systems Inc:
Basic (in dollars per share)	$ 0.22	$ 0.31	$ 0.13
Diluted (in dollars per share)	$ 0.22	$ 0.31	$ 0.13
Ordinary shares outstanding:
Basic (in shares)	65,773	65,773	65,773
Diluted (in shares)	65,773	65,773	65,773
Software
Revenue:
Total revenue	$ 187,236	$ 201,487	$ 191,062
Cost of revenue:
Cost of revenue	35,647	36,071	34,144
Software service
Revenue:
Total revenue	190,013	171,866	158,146
Cost of revenue:
Cost of revenue	44,893	45,012	51,237
Professional service and other
Revenue:
Total revenue	66,209	83,756	84,252
Cost of revenue:
Cost of revenue	$ 51,186	$ 80,517	$ 83,975

Combined Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 20,310	$ 27,370	$ 12,321
Other comprehensive loss, net of reclassification adjustments:
Foreign currency translation adjustments	(1,233)	(1,876)	(1,549)
Net (decrease) increase from foreign exchange contracts designated as hedges	(19)	1,561	(3,935)
(Provision) benefit for income taxes on net (decrease) increase from foreign exchange contracts designated as hedges	(18)	(156)	393
Net other comprehensive income (loss)	(1,270)	(471)	(5,091)
Comprehensive income	19,040	26,899	7,230
Comprehensive income attributable to noncontrolling interest	6,419	7,169	3,537
Comprehensive income attributable to Cognyte Business of Verint Systems Inc.	$ 12,621	$ 19,730	$ 3,693

Combined Statements of Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Total Cognyte Business of Verint Systems Inc. Equity	Total Cognyte Business of Verint Systems Inc. Equity Cumulative Effect, Period of Adoption, Adjustment	Total Cognyte Business of Verint Systems Inc. Equity Cumulative Effect, Period of Adoption, Adjusted Balance	Net Parent Investment	Net Parent Investment Cumulative Effect, Period of Adoption, Adjustment	Net Parent Investment Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance	Noncontrolling Interest	Noncontrolling Interest Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance at Jan. 31, 2018	$ 430,944	$ 9,147	$ 440,091	$ 422,361	$ 9,147	$ 431,508	$ 430,788	$ 9,147	$ 439,935	$ (8,427)	$ (8,427)	$ 8,583	$ 8,583
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Net income	$ 12,321			8,728			8,728					3,593
Other comprehensive (loss) income	(5,091)			(5,035)						(5,035)		(56)
Dividends to noncontrolling interest	(4,409)											(4,409)
Net transfers from (to) parent	32,406			32,406			32,406
Ending balance at Jan. 31, 2019	$ 475,318			467,607			481,069			(13,462)		7,711
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member
Net income	$ 27,370			20,191			20,191					7,179
Other comprehensive (loss) income	(471)			(461)						(461)		(10)
Dividends to noncontrolling interest	(4,253)											(4,253)
Net transfers from (to) parent	(42,793)			(42,793)			(42,793)
Ending balance at Jan. 31, 2020	455,171	$ (446)	$ 454,725	444,544	$ (446)	$ 444,098	458,467	$ (446)	$ 458,021	(13,923)	$ (13,923)	10,627	$ 10,627
Increase (Decrease) in Stockholders' Equity
Net income	20,310			14,203			14,203					6,107
Other comprehensive (loss) income	(1,270)			(1,582)						(1,582)		312
Dividends to noncontrolling interest	(4,176)											(4,176)
Cash dividends declared payable to parent	(35,000)			(35,000)			(35,000)
Net transfers from (to) parent	(164,218)			(164,218)			(164,218)
Ending balance at Jan. 31, 2021	$ 270,371			$ 257,501			$ 273,006			$ (15,505)		$ 12,870

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Amount after tax and reclassification adjustments of other comprehensive income (loss).

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The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Combined Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Combined Statements of Cash Flows - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Cash flows from operating activities:
Net income	$ 20,310	$ 27,370	$ 12,321
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,519	17,325	21,021
Provisions charged to expense	1,850	1,355	1,937
Stock-based compensation, excluding cash-settled awards	27,423	31,028	25,536
(Benefit) provision from deferred income taxes	(2,195)	5,603	9,003
Non-cash losses (gains) on derivative financial instruments, net	95	(395)	(726)
Change in fair value of contingent consideration for business combinations	(3,665)	(5,392)	(4,201)
Other non-cash items, net	(2,964)	1,747	409
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	1,496	(24,140)	(44,137)
Contract assets	8,442	17,658	21,621
Inventories	(1,142)	(392)	(3,616)
Prepaid expenses and other assets	5,119	7,032	1,556
Accounts payable and accrued expenses	8,668	1,307	(7,750)
Contract liabilities	(16,770)	9,321	29,998
Other liabilities	210	(20,847)	(10,202)
Other, net	1,915	(1,394)	965
Net cash provided by operating activities	71,311	67,186	53,735
Cash flows from investing activities:
Cash paid for business combinations, including adjustments, net of cash acquired	0	(18,693)	(3,811)
Purchases of property and equipment	(14,199)	(13,691)	(9,923)
Purchases of investments	(48,585)	(29,099)	(57,735)
Proceeds from sales and maturities of available-for-sale securities	51,174	53,527	28,243
Settlements of derivative financial instruments not designated as hedges	213	212	126
Cash paid for capitalized software development costs	(5,132)	(7,638)	(2,687)
Change in restricted bank time deposits, including long-term portion	31,084	(14,159)	(21,773)
Other investing activities	1,863	0	(779)
Net cash provided by (used in) investing activities	16,418	(29,541)	(68,339)
Cash flows from financing activities:
Net transfers (to) from parent	(189,047)	(72,057)	6,538
Proceeds from parent borrowings	0	0	7,025
Repayments of parent borrowings	(7,025)	(6,000)	(1,000)
Dividends paid to noncontrolling interest	(4,176)	(4,253)	(4,409)
Payments of contingent consideration for business combinations (financing portion)	(4,877)	(3,419)	(2,016)
Other financing activities	(492)	(244)	(81)
Net cash (used in) provided by financing activities	(205,617)	(85,973)	6,057
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(864)	(985)	(544)
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents	(118,752)	(49,313)	(9,091)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	233,409	282,722	291,813
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	114,657	233,409	282,722
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period:
Cash and cash equivalents	78,570	201,090	240,192
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$ 114,657	$ 282,722	$ 291,813

Organization, Operations and Basis of Presentation	12 Months Ended
Organization, Operations and Basis of Presentation	Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Operations and Basis of Presentation	ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION Recent Developments On February 1, 2021, Verint completed the previously announced Spin-off of Cognyte Software Ltd. (the “Company,” “Cognyte,” “we,” “us” and “our”) (the “Spin-off”), which consists of Verint’s former Cyber Intelligence Solutions™ business (referred to herein as the “Cognyte Business of Verint Systems Inc.”), into a separate, independent publicly traded company, Cognyte Software Ltd. (Nasdaq: CGNT). The Spin-off was completed by means of a distribution in which each holder of Verint’s common stock, par value $0.001 per share, received one share of Cognyte’s common stock, no par value, for every share of common stock of Verint held of record as of the close of business on January 25, 2021 (the “Record Date”). After the distribution, Verint does not beneficially own any shares of common stock in Cognyte and will no longer consolidate Cognyte into its financial results for periods ending after January 31, 2021. Please refer to Note 19, “Subsequent Events,” for additional information regarding the Spin-off. Description of Business Cognyte is a global provider in security analytics software that empowers governments and enterprises with Actionable Intelligence for a safer world. Our open software fuses, analyzes and visualizes disparate data sets at scale to help security organizations find the needles in the haystacks. Over 1,000 government and enterprise customers in more than 100 countries rely on Cognyte’s solutions to accelerate security investigations and connect the dots to identify, neutralize, and prevent national security, personal safety, business continuity and cyber threats. Basis of Presentation The Company has not published stand-alone financial statements in the past. As a result, these combined financial statements reflect the historical financial position, results of operations and cash flows of the Company for the periods presented as historically managed within Verint. The combined financial statements have been derived (carved-out) from the consolidated financial statements and accounting records of Verint and have been prepared in conformity with GAAP. The primary basis for presenting consolidated financial statements is when one entity has a controlling financial interest in another entity. As there is no controlling financial interest present between or among the entities that comprise our business, we are preparing our financial statements on a combined basis. Verint’s investment in our business is shown in lieu of equity attributable to Cognyte as there is no consolidated entity for which Verint holds an equity interest in. Verint’s investment represents its interest in the recorded net assets of Cognyte. The accompanying combined financial statements also include 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 as we have the power to direct the activities that are most significant to the VIE. The joint venture’s activities primarily include promoting transactions with end customers as well as negotiating their commercial terms, providing local technical support and interfacing with customers. The noncontrolling interest in the less than wholly owned subsidiary is reflected within equity in our combined balance sheets, but separately from our equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. All internal transactions have been eliminated. As described in Note 3, “Related Party Transactions with Verint,” all significant transactions between the Company and Verint have been included in these combined financial statements. Verint generally uses a decentralized approach to cash management and financing of its operations. The majority of the cash generated by a legal entity remains with that entity and is used to fund that entity’s operations and/or investing activities. For those entities legally owned by the Cyber Intelligence Solutions business, the associated cash has been attributed to the combined balance sheets for each period presented. For certain entities, the entity’s cash is transferred to a cash pooling entity and the cash pooling entity funds the business’s operating and investing activities as needed. These cash pooling arrangements are not reflective of the manner in which the business would have been able to finance its operations had it been a stand-alone business separate from Verint during the periods presented. Transfers of cash relating to these cash pooling arrangements are included as components of net parent investment on the combined statements of equity. The preparation of the combined financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the year that affects the reported amounts of assets and liabilities as well as expenses. Actual outcomes and results could differ from those estimates and assumptions. The following paragraphs describe the significant estimates and assumptions applied by management in the preparation of these combined financial statements. These combined financial statements include the assets and liabilities of the Verint subsidiaries that are attributable to the Company’s business and exclude the assets and liabilities of the Verint subsidiaries that are not attributable to the Company’s business. Third-party debt obligations of Verint and the corresponding financing costs related to those debt obligations, specifically those that relate to senior notes, term loans, and revolving credit facilities, have not been attributed to the Company, as the Company is not the legal obligor on the debt. During the periods presented, the Company functioned as part of the larger group of companies controlled by Verint. Accordingly, Verint performed certain corporate overhead functions for the Company. Therefore, certain corporate costs, including compensation costs for corporate employees supporting the Company, have been allocated from Verint. These allocated costs are for corporate functions including, but not limited to, senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit and other shared services, which were not historically provided at the Company level. Where possible, these costs were specifically identified to the Company, with the remainder primarily allocated on the basis of revenue as a relevant measure. The combined financial statements do not necessarily include all the expenses that would have been incurred or held by the Company had it been a separate, stand-alone company, and we expect to incur additional expenses as a separate, stand-alone publicly-traded company. It is not practicable to estimate actual costs that would have been incurred had the Company been a separate stand-alone company during the periods presented. Allocations for management costs and corporate support services provided to the Company totaled $97.3 million, $81.8 million, and $72.6 million for the years ended January 31, 2021, 2020, and 2019, respectively. The Company and Verint consider the allocations to be a reasonable reflection of the benefits received by the Company. Going forward, the Company may perform these functions using its own resources or outsourced services. For a period following the Spin-off, however, some of these functions will continue to be provided by Verint under a transition services agreement. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The outbreak has reached all of the regions in which we do business, and governmental authorities around the world have implemented numerous measures attempting to contain and mitigate the effects of the virus, including travel bans and restrictions, border closings, quarantines, shelter-in-place orders, shutdowns, limitations or closures of non-essential businesses, and social distancing requirements. Companies around the world, including us, our customers, partners, and vendors, have implemented actions in response, including among others, office closings, site restrictions, and employee travel restrictions. Notwithstanding the loosening of these restrictions in certain countries in certain periods since the onset of the pandemic, the global spread of COVID-19 and actions taken in response have negatively affected us, our customers, partners, and vendors and caused significant economic and business disruption the extent and duration of which is not currently known. In response to these challenges, we quickly adjusted our operations to work from home and we believe our business continuity plan is working well. We are continuously monitoring and assessing the impact of the COVID-19 pandemic, including recommendations and orders issued by government and public health authorities in countries where we operate. We continue to work to help our customers during this difficult time and are managing our operations with a view to resuming normal business activity as soon as possible.

Summary of Significant Accounting Policies

12 Months Ended

Jan. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of January 31, 2021 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less.

Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits

Restricted cash and cash equivalents, and restricted bank time deposits are mainly pledged as collateral for performance guarantees.

Investments

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

Accounts Receivable, net

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

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, trade accounts receivable, and contract assets. We invest our cash in bank accounts and bank time deposits. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities.

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

Allowance for Doubtful Accounts

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

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Allowance for doubtful accounts, beginning of year	$	4,085	$	2,911	$	1,763
Cumulative effect of adoption of ASU No. 2016-13	435		—		—
Provisions charged to expense	1,840		1,355		1,937
Amounts written off	(1,922)		(152)		(744)
Other, including fluctuations in foreign exchange rates	121		(29)		(45)
Allowance for doubtful accounts, end of year	$	4,559	$	4,085	$	2,911

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

Inventories

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

Property and Equipment, net

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

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

Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is

evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision making group, in deciding how

to allocate resources and in assessing performance. We evaluated segment reporting in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting. We concluded that we operate in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the CODM to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a combined basis, inclusive of all of the Company’s products.

Goodwill and Other Acquired Intangible Assets

For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill.

We test goodwill for impairment at the reporting unit level 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.

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

We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of our 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, and non-competition agreements. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 10 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Fair Value Measurements

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

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

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

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

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

Fair Values of Financial Instruments

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

Derivative Financial Instruments

As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts to hedge against certain foreign currency exposure. 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 combined 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 three major financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.

Revenue Recognition

We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was adopted on February 1, 2018, using the modified retrospective transition method. For further discussion of our accounting policies related to revenue, see Note 4, “Revenue Recognition.”

Cost of Revenue

Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products and third-party SaaS providers, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, travel expenses associated with provision of installation, training, consulting and development services resources dedicated to project management and an allocation of overhead costs, such as facility, information technology, operations costs, and other overhead expenses. Costs that relate to materials and royalties are generally expensed upon shipment and costs related to travel, subcontractors, and personnel and related expenses are generally expensed as incurred in the period in which the personnel related services are performed. Refer to Note 4, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.

Research and Development, net

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

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

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

Software Development Costs

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

Internal-Use Software

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

Income Taxes

The tax provision is presented on a separate company basis as if we were a separate filer. A portion of our operations have historically been included in the tax returns filed by certain Verint entities for which our business is a part of. The effects of tax adjustments and settlements from taxing authorities are presented in our combined financial statements in the period to which they relate as if we were a separate filer. Our current obligations for taxes are settled with our parent on an estimated basis and adjusted in later periods as appropriate. All income taxes due to or due from our parent that have not been settled or recovered by the end of the period are reflected in net parent investment within the combined financial statements. The tax provision has been calculated as if the business was operating on a stand-alone basis and filed separate tax returns in the jurisdictions in which it operates. Therefore, cash tax payments and items of current and deferred taxes may not be reflective of the actual tax balances had the business been a stand-alone company during the periods presented.

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

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

Functional Currencies and Foreign Currency Transaction Gains and Losses

Our functional currency, and the functional currency of most of our subsidiaries, is the U.S. dollar, although we have some subsidiaries with functional currencies that are their local currency.

Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within other income (expense), net in the combined statements of operations. We recorded net foreign currency gains of $1.7 million and net foreign currency losses of $0.7 million and $2.1 million for the years ended January 31, 2021, 2020, and 2019, respectively.

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

Stock-Based Compensation

Certain Company employees participate in stock-based compensation plans sponsored by Verint. Awards granted under the plans are based on Verint’s common shares and, as such, are included in net parent investment. 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.

Leases

We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our combined balance sheets. Finance lease assets are included in property and equipment, and corresponding finance lease liabilities are included within accrued expenses and other current liabilities (current portions), and other liabilities (long-term portions), on our combined balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

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

Recent Accounting Pronouncements

New Accounting Pronouncements Recently Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Our financial instruments within the scope of this guidance primarily includes accounts receivable and contract assets. On February 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of ASU No. 2016-13 resulted in a $0.5 million increase in our allowance for expected credit losses related to accounts receivable and contract assets, a $0.1 million increase to deferred tax assets, and an impact of $0.4 million to our net parent investment. The new accounting standard did not have a material impact on our combined financial statements, including accounting policies, given our limited historical write-off activity.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires customers in a hosting arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize and which costs to expense. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the combined balance sheet as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the combined statement of operations as the related fees of the arrangement. We adopted ASU No. 2018-15 prospectively to eligible costs incurred on or after February 1, 2020 and the implementation did not have a material impact on our combined financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to The Disclosure Requirements for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. Since the standard affects only disclosure requirements, the adoption of the standard did not have an impact on our combined financial statements.

New Accounting Pronouncements Not Yet Effective

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. ASU No. 2020-06 also eliminates the treasury stock method to calculate diluted earnings per share and requires the if-converted method. This new standard will be effective for us in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We are currently assessing the impact of adopting this standard on our combined financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for annual reporting periods beginning after December 15, 2021, and interim reporting periods within annual reporting periods beginning after December 15, 2022. We are currently reviewing this standard but do not expect that it will have a material impact on our combined financial statements.

Related Party Transactions with Verint

12 Months Ended

Jan. 31, 2021

Related Party Transactions with Verint

RELATED PARTY TRANSACTIONS WITH VERINT

The combined financial statements have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Verint.

Verint provided certain services, such as but not limited to, senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit and other shared services, on behalf of the Company. Where possible, these costs were specifically identified to the Company, with the remainder primarily allocated on the basis of revenue as a relevant measure. The Company and Verint both consider the allocations to be a reasonable reflection of the benefits received by the Company. During the years ended January 31, 2021, 2020, and 2019, the Company was allocated $97.3 million, $81.8 million, and $72.6 million, respectively, of corporate expenses incurred by Verint and such amounts are included in the combined statements of operations. As certain expenses reflected in the combined financial statements include allocations of corporate expenses from Verint, these statements could differ from those that would have been prepared had the Company operated on a stand-alone basis.

The components of the costs of services allocated to the Company for the years ended January 31, 2021, 2020, and 2019 are as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Software - cost of revenue	$	1,981	$	1,871	$	688
Software service - cost of revenue	1,548		1,639		2,460
Professional service and other - cost of revenue	2,743		4,654		2,919
Research and development, net	21,783		19,139		17,805
Selling, general and administrative	69,210		54,452		48,774
Total allocated corporate expenses	$	97,265	$	81,755	$	72,646

All significant internal transactions between the Company and Verint have been included in these combined financial statements and are considered to have been effectively settled or are expected to be settled for cash. The Company had related party payables, current of $3.8 million which is presented in due to parent, current within the combined balance sheets as of January 31, 2021. The total net effect of the settlement of these internal transactions is reflected in the combined statements of cash flows as a financing activity and in the combined balance sheets as net parent investment.

On January 29, 2021, Cognyte Technology Israel Ltd.’s board of directors declared a cash dividend (the “Dividend”) in the aggregate amount of $35.0 million payable to Verint, which was its sole holder of record of ordinary shares as of the January 29, 2021 record date for the Dividend. The Dividend was paid on April 13, 2021, following the board of director’s receipt and review of financial statements that met all the conditions set forth in Section 302(b) of the Companies Law and that satisfied the solvency test and profit test under the Companies Law required for distribution of the Dividend. The dividends payable to parent of $35.0 million is presented in due to parent, current within the combined balance sheets as of January 31, 2021.

Certain legal entities of the Company had interest-bearing notes under contractual agreements to Verint. The purpose of these notes was to provide funds for certain working capital or other capital and operating requirements of the business. Net interest expense on these notes with Verint is recorded in interest expense in the combined statements of operations and was $0.2 million, $0.4 million, and $0.5 million for the years ended January 31, 2021, 2020, and 2019, respectively. These notes had fixed and variable interest rates of 2.1% fixed rate and 2.5% plus three-month average LIBOR variable rate, with maturities of the earliest of five years, or on demand, and four years, respectively. The Company had related party notes payable, current of $7.0 million which is presented in due to parent, current within the combined balance sheets as of January 31, 2020. As of January 31, 2021, these interest-bearing notes have been settled between the Company and Verint.

Due to parent, current consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Dividends payable to parent, current	$	35,000	$	—
Related party payables, current	3,772		—
Related party notes payable, current	—		7,025
Total due to parent, current	$	38,772	$	7,025

Net transfers to and from Verint are included within net parent investment on the combined statements of equity. The components of the net transfers to and from Verint for the years ended January 31, 2021, 2020, and 2019 are as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash pooling and general financing activities	$	(258,799)	$	(133,666)	$	(45,192)
Corporate allocations	97,265		81,755		72,646
Related party payables	(3,772)		—		—
Income taxes	1,088		9,118		4,952
Total net transfers (to) from parent per combined statements of equity	(164,218)		(42,793)		32,406
Stock-based compensation - equity-classified awards and issuances	(29,062)		(29,264)		(25,868)
Related party payables	3,772		—		—
Other, net	461		—		—
Total net transfers (to) from parent per combined statements of cash flows	$	(189,047)	$	(72,057)	$	6,538

Revenue Recognition

12 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

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

1) Identify the contract(s) with a customer

A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer, published credit and financial information pertaining to the customer. Our customary business practice is to enter into

legally enforceable written contracts with our customers, which set forth the general terms and conditions between the parties. Typically, our customers also submit a purchase order to specify the different goods and services, and the associated prices. Multiple contracts with a single counterparty entered into at or near the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract.

2) Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain contracts require design, development, or significant customization of our products to meet the customer’s specific requirements, in which case the products and services are combined into one distinct performance obligation. Additionally, our subscription license offerings provide customers with access to and the right to utilize ongoing support to ensure our software is continuously up-to-date with the latest cyber security capabilities. We consider our software subscription licenses and access to critical support to be a single performance obligation.

3) Determine the transaction price

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

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

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

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

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

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

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

Nature of Goods and Services

We derive and report our revenue in three categories: (a) software revenue, including the sale of subscription (i.e., term-based) or perpetual licenses, and appliances that include software that is essential to the product’s functionality, (b) software service revenue, including support revenue and revenue from cloud-based software-as-a-service subscriptions (“SaaS”), and (c) professional service and other revenue, including revenue from installation and integration services, customer specific development work, the resale of third-party hardware, and consulting and training services.

Our software licenses either provide our customers a perpetual right to use our software or the right to use our software for only a fixed term, in most cases between a one- and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. For the majority of our software licenses, we have concluded that the licenses are distinct as our customers can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. Our subscription software licenses are not distinct from our support services as the utility of the software to the customer will significantly degrade during the license term. Subscription license revenue is recognized over the term of the subscription period beginning when the software is delivered to the customer. We rarely sell our software licenses on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices.

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

Our solutions are generally sold with warranties that typically range from 90 days to 3 years. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware comply with agreed-upon specifications are not provided.

Professional service revenues primarily consist of fees for installation and integration, deployment and optimization services, as well as consulting and training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional service as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. Additionally, other revenues consist of the resale of third-party hardware including servers, laptops and communication equipment, and are recognized at a point in time generally upon shipment or delivery. We rarely sell professional services and third-party hardware on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of professional services and resale of third-party hardware with other promised goods and services in order to maximize the use of observable inputs. Professional services SSP and resale of third-party hardware SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices.

Certain contracts require us to significantly customize our software and these contracts are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to

payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use the expected cost plus a margin approach or an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices, to estimate the SSP of our significantly customized solutions.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by the recurring or nonrecurring nature of revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions:

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

•Nonrecurring revenue primarily consists of our perpetual licenses, appliances, custom development, installation and integration services, consulting and training, and the resale of third-party hardware.


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue by recurrence:
Recurring revenue	$	223,405	$	192,578	$	165,265
Nonrecurring revenue	220,053		264,531		268,195
Total revenue	$	443,458	$	457,109	$	433,460

Contract Balances

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


	January 31,
(in thousands)	2021		2020
Accounts receivable, net	$	175,001	$	180,441
Contract assets, net	$	20,317	$	28,873
Long-term contract assets, net (included in other assets)	$	1,219	$	937
Contract liabilities	$	127,012	$	143,695
Long-term contract liabilities	$	22,037	$	23,305

We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to arrangements where our right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of a majority of our contract assets to occur within the next twelve months and had no asset impairment related to contract assets in the period. During the years ended January 31, 2021 and 2020, we transferred $19.0 million and $36.1 million, respectively, to accounts receivable from contract assets recognized at the beginning of each period, as a result of the right to the transaction consideration becoming unconditional. We recognized $11.4 million and $17.6 million of contract assets during the years ended January 31, 2021 and 2020, respectively. There are two customers that accounted for a combined $72.6 million and $51.7 million of our aggregated accounts receivable

and contract assets at January 31, 2021 and 2020, respectively. These amounts result from both direct and indirect contracts with governments outside of the U.S. which we believe present insignificant credit risk.

Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized during the years ended January 31, 2021 and 2020 from amounts included in contract liabilities at the beginning of each period was $129.6 million and $106.8 million, respectively.

Remaining Performance Obligations

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

The timing and amount of revenue recognition for our RPO is influenced by several factors, including timing of support renewals, and the revenue recognition for certain projects can extend over longer periods of time, delivery under which, for various reasons, may be delayed, modified, or canceled. Therefore, the amount of remaining obligations may not be a meaningful indicator of future results.

The following table provides information about our RPO:


	January 31,
(in thousands)	2021		2020
RPO:
Expected to be recognized within 1 year	$	353,166	$	356,677
Expected to be recognized in more than 1 year	198,572		225,056
Total RPO	$	551,738	$	581,733

Costs to Obtain and Fulfill Contracts

We capitalize commissions paid to internal sales personnel and agent commissions that are incremental to obtaining customer contracts. We have determined that these commissions are in fact incremental and would not have occurred absent the customer contract. Our sales and agent commissions paid on annual renewals of support are commensurate with the commission paid on the initial contract. Capitalized sales and agent commissions are amortized on a straight-line basis over the period the goods or services are transferred to the customer to which the assets relate.

Total capitalized costs to obtain contracts were $9.8 million as of January 31, 2021, of which $5.3 million is included in prepaid expenses and other current assets and $4.5 million is included in other assets on our combined balance sheet. Total capitalized costs to obtain contracts were $8.3 million as of January 31, 2020, of which $4.9 million is included in prepaid expenses and other current assets and $3.4 million is included in other assets on our combined balance sheet. During the years ended January 31, 2021, 2020, and 2019, we expensed $23.8 million, $28.2 million, and $25.0 million, respectively, of sales and agent commissions, which are included in selling, general and administrative expenses and there was no impairment loss recognized for these capitalized costs.

We capitalize costs incurred to fulfill our contracts when the costs relate directly to the contract and are expected to generate resources that will be used to satisfy the performance obligation under the contract and are expected to be recovered through revenue generated under the contract. Costs to fulfill contracts are expensed to cost of revenue as we satisfy the related performance obligations. Total capitalized costs to fulfill contracts were $6.5 million as of January 31, 2021, of which $4.5 million is included in prepaid expenses and other current assets and $2.0 million is included in other assets on our combined balance sheet. Total capitalized costs to fulfill contracts were $7.6 million as of January 31, 2020, of which $7.1 million is included in prepaid expenses and other current assets and $0.5 million is included in other assets on our combined balance sheet. Deferred cost of revenue is classified in its entirety as current or long-term based on whether the related revenue will be recognized within twelve months of the origination date of the arrangement. The amounts capitalized primarily relate to prepaid third-party cloud costs. During the years ended January 31, 2021, 2020, and 2019, we amortized $13.5 million, $11.8 million, and $16.7 million, respectively, of contract fulfillment costs.

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

+ Details

Cash, Cash Equivalents, and Short-term Investments

12 Months Ended

Jan. 31, 2021

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

Cash, Cash Equivalents, and Short-term Investments

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

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


	January 31, 2021
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	78,570	$	—	$	—	$	78,570
Total cash and cash equivalents	$	78,570	$	—	$	—	$	78,570

Short-term investments:
Bank time deposits	$	4,713	$	—	$	—	$	4,713
Total short-term investments	$	4,713	$	—	$	—	$	4,713


	January 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	201,090	$	—	$	—	$	201,090
Total cash and cash equivalents	$	201,090	$	—	$	—	$	201,090

Short-term investments:
Bank time deposits	$	6,603	$	—	$	—	$	6,603
Total short-term investments	$	6,603	$	—	$	—	$	6,603

Bank time deposits which are reported within short-term investments consist of deposits held outside of the United States with maturities of greater than 90 days. All other bank deposits are included within cash and cash equivalents.

During the years ended January 31, 2021, 2020, and 2019, proceeds from maturities and sales of short-term bank time deposits were $51.2 million, $53.5 million, and $28.2 million, respectively.

Business Combinations

12 Months Ended

Jan. 31, 2021

Business Combinations [Abstract]

Business Combinations

Year Ended January 31, 2021

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

Year Ended January 31, 2020

On December 18, 2019, we completed the acquisition of two software companies under common control, WebintPro Ltd. and Deep Analytics Ltd. (collectively “WebintPro”), focused on multi source intelligence and fusion analytics.

The purchase price of $24.1 million consisted of (i) $18.8 million of combined cash paid at closing, funded by cash on hand, partially offset by $0.1 million of cash acquired, resulting in net cash consideration at closing of $18.7 million; and (ii) the $7.0 million fair value of the $7.3 million contingent consideration arrangement described below; offset by (iii) $1.8 million of other purchase price adjustments. We agreed to make potential additional cash payments to the respective former shareholders aggregating up to approximately $7.3 million, contingent upon the achievement of certain performance targets over periods extending through June 2021, the fair value of which was estimated to be $7.0 million at the acquisition date.

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

Among the factors contributing to the recognition of goodwill as a component of the WebintPro purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. The $11.9 million of goodwill is not deductible for income tax purposes.

Transaction and related costs directly related to the acquisition of WebintPro, consisting primarily of professional fees and integration expenses, totaled $0.4 million and $0.3 million for the years ended January 31, 2021 and 2020, respectively, and were expensed as incurred and are included in selling, general and administrative expenses.

Revenue and net income attributable to WebintPro included in our combined statement of operations for the year ended January 31, 2020 was not material. Pro-forma information is not provided due to immateriality.

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


(in thousands)	Amount
Components of Purchase Price:
Cash	$	18,843
Fair value of contingent consideration	7,023
Other purchase price adjustments	(1,761)
Total purchase price	$	24,105

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	2,160
Other current assets, including cash acquired	7,921
Other assets	2,757
Current and other liabilities	(3,220)
Contract liabilities—current and long-term	(554)
Deferred income taxes	(1,342)
Net tangible assets	7,722
Identifiable intangible assets:
Customer relationships	1,452
Developed technology	1,360
Trademarks and trade names	367
Non-compete agreements	1,307
Total identifiable intangible assets	4,486
Goodwill	11,897
Total purchase price allocation	$	24,105

The acquired customer relationships, developed technology, trademarks and trade names, and non-compete agreements were assigned estimated useful lives of five years, five years, three years, and three years, respectively, the weighted average of which is approximately 4.4 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.

Year Ended January 31, 2019

On November 8, 2018, we completed the acquisition of a business for a purchase price of approximately $13.1 million, which included $2.2 million related to the acquisition date fair value of our approximately 19% previously held equity interest. We paid $3.9 million of cash at closing, funded by cash on hand, and we agreed to make potential additional cash payments to the former shareholders aggregating up to approximately $18.5 million, contingent upon the achievement of certain performance targets over periods that extended through January 2021. The fair value of this contingent consideration obligation was estimated to be $7.0 million at the acquisition date.

The purchase price was attributed mainly to goodwill (approximately $10.8 million) and the acquired customer relationships and developed technology were assigned estimated useful lives of seven years and three years, respectively, the weighted average of which is approximately 4.1 years. Included among the factors contributing to the recognition of goodwill in this

transaction were synergies in products and technologies, and the addition of skilled, assembled workforces. The $10.8 million of goodwill is not deductible for income tax purposes.

Revenue and net income attributable to this business combination for the year ended January 31, 2019 were not material. Pro-forma information is not provided due to immateriality.

Transaction and related costs, consisting primarily of professional fees and integration expenses, directly related to this business combination, totaled $0.3 million and $0.2 million for the years ended January 31, 2020 and 2019, respectively. All transaction and related costs were expensed as incurred and are included in selling, general and administrative expenses.

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 combined statements of operations. Changes in the fair value of the contingent consideration obligations result from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets.

For the years ended January 31, 2021, 2020, and 2019, we recorded benefits of $3.7 million, $5.4 million, and $4.2 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 $2.9 million at January 31, 2021, all of which was recorded within accrued expenses and other current liabilities.

Payments of contingent consideration earned under these agreements were $4.9 million, $3.4 million, and $2.0 million for the years ended January 31, 2021, 2020, and 2019, respectively.

Intangible Assets and Goodwill

12 Months Ended

Jan. 31, 2021

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, 2021 and 2020:


	January 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	74,272	$	(72,349)	$	1,923
Customer relationships	4,837		(2,759)		2,078
Trade names	1,151		(676)		475
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(484)		823
Total intangible assets	$	83,567	$	(78,268)	$	5,299


	January 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	75,765	$	(72,542)	$	3,223
Customer relationships	6,586		(3,882)		2,704
Trade names	1,231		(563)		668
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(34)		1,273
Total intangible assets	$	86,889	$	(79,021)	$	7,868

Total amortization expense recorded for acquisition-related intangible assets was $2.2 million, $3.0 million and $8.1 million for the years ended January 31, 2021, 2020, and 2019, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars.

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


(in thousands)
Years Ending January 31,	Amount
2022	$	1,818
2023	1,711
2024	783
2025	734
2026	176
Thereafter	77
Total	$	5,299

We recorded $0.3 million of impairments for certain acquired technology assets, which is included within software cost of revenue and professional service and other cost of revenue of $0.2 million and $0.1 million, respectively, for the year ended January 31, 2021. No impairments of acquired intangible assets were recorded during the years ended January 31, 2020 and 2019.

Goodwill activity for the years ended January 31, 2021 and 2020 was as follows:



(in thousands)	Amount
Year Ended January 31, 2020:
Goodwill, gross, at January 31, 2019	$	157,976
Accumulated impairment losses through January 31, 2019	(10,822)
Goodwill, net, at January 31, 2019	147,154
Business combination	11,597
Foreign currency translation	(608)
Goodwill, net, at January 31, 2020	$	158,143

Year Ended January 31, 2021:
Goodwill, gross, at January 31, 2020	$	168,965
Accumulated impairment losses through January 31, 2020	(10,822)
Goodwill, net, at January 31, 2020	158,143
Adjustments to prior period acquisition	300
Foreign currency translation	(260)
Goodwill, net, at January 31, 2021	$	158,183

Balance at January 31, 2021
Goodwill, gross, at January 31, 2021	$	169,005
Accumulated impairment losses through January 31, 2021	(10,822)
Goodwill, net, at January 31, 2021	$	158,183

We evaluated whether there has been a change in circumstances or indicators of potential impairment between November 1, 2020 and January 31, 2021 and as of the date of this filing in response to the economic impacts seen globally from COVID-19. The valuation methodology to determine the fair value of our reporting unit is sensitive to management's forecasts of future revenue, profitability and market conditions. At this time, the full 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 value 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 our reporting unit fair value and its carrying value in the most recent quantitative analyses completed as of November 1, 2020, as well as expected long-term recovery within our reporting unit, management does not believe that these events were sufficiently severe to result in an

impairment trigger. We will continue to monitor conditions to determine whether any events or changes in circumstances may trigger a need to assess for impairment. No changes in circumstances or indicators of potential impairment were identified between November 1 and January 31 in each of the years ended January 31, 2020 and 2019.

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

Supplemental Combined Financial Statement Information

12 Months Ended

Jan. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Combined Financial Statement Information

SUPPLEMENTAL COMBINED FINANCIAL STATEMENT INFORMATION

Combined Balance Sheets

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


	January 31,
(in thousands)	2021		2020
Raw materials	$	7,521	$	7,461
Work-in-process	5,160		4,674
Finished goods	1,861		2,758
Total inventories	$	14,542	$	14,893

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


	January 31,
(in thousands)	2021		2020
Land and buildings	$	2,854	$	2,854
Leasehold improvements	13,530		13,592
Software	22,823		29,870
Equipment, furniture, and other	79,587		92,236
Total cost	118,794		138,552
Less: accumulated depreciation and amortization	(81,199)		(96,973)
Total property and equipment, net	$	37,595	$	41,579

Depreciation expense on property and equipment was $16.9 million, $11.8 million, and $10.6 million in the years ended January 31, 2021, 2020, and 2019, respectively.

Prepaid expenses and other current assets consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Prepaid expenses	$	22,037	$	23,906
Deferred cost of revenue	4,570		7,067
Income tax receivables	1,379		2,030
Other	2,065		3,483
Total prepaid expenses and other current assets	$	30,051	$	36,486

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


	January 31,
(in thousands)	2021		2020
Long-term restricted cash and time deposits	$	15,061	$	25,606
Capitalized software development costs, net	11,315		11,679
Deferred commissions	4,459		3,394
Long-term deferred cost of revenue	1,959		527
Long-term security deposits	1,393		1,373
Long-term contract assets, net	1,219		937
Other	6,670		5,639
Total other assets	$	42,076	$	49,155

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


	January 31,
(in thousands)	2021		2020
Compensation and benefits	$	44,801	$	37,963
Distributor and agent commissions	12,422		10,097
Operating lease obligations - current portion	7,085		6,061
Income taxes	4,275		6,403
Contingent consideration - current portion	2,923		5,941
Taxes other than income taxes	2,559		717
Fair value of derivatives - current portion	678		132
Other	16,949		18,633
Total accrued expenses and other current liabilities	$	91,692	$	85,947

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


	January 31,
(in thousands)	2021		2020
Unrecognized tax benefits, including interest and penalties	$	6,940	$	6,930
Obligations for severance compensation	2,054		2,389
Contingent consideration - long-term portion	—		5,568
Finance lease obligations - long-term portion	—		2,510
Other	204		4
Total other liabilities	$	9,198	$	17,401

Combined Statements of Operations

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gains on equity investments, net	$	3,769	$	—	$	—
Foreign currency gains (losses), net	1,682		(728)		(2,094)
(Losses) gains on derivative financial instruments, net	(95)		395		726
Other expense, net	(70)		(71)		(46)
Total other income (expense), net	$	5,286	$	(404)	$	(1,414)

Combined Statements of Cash Flows

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash paid for interest	$	38	$	23	$	24
Cash (refunds) payments of income taxes, net	$	1,260	$	9,622	$	7,602
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	$	35,000	$	—	$	—
Accrued but unpaid purchases of property and equipment	$	2,636	$	3,399	$	2,352
Inventory transfers to property and equipment	$	894	$	825	$	1,699
Liabilities for contingent consideration in business combinations	$	—	$	7,023	$	6,975
Finance leases of property and equipment	$	—	$	3,117	$	—
Leasehold improvements funded by lease incentives	$	—	$	250	$	—

Accumulated Other Comprehensive Loss

12 Months Ended

Jan. 31, 2021

Stockholders' Equity Note [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss includes items such as foreign currency translation adjustments and unrealized gains and losses on derivative financial instruments designated as hedges. Accumulated other comprehensive loss is presented as a separate line item in the equity section of our combined balance sheets. Accumulated other comprehensive loss items have no impact on our net income as presented in our combined statements of operations.

The following table summarizes changes in the components of our accumulated other comprehensive loss for the years ended January 31, 2021, 2020, and 2019:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive income (loss) at February 1, 2018	$	2,733	$	(11,160)	$	(8,427)
Other comprehensive loss before reclassifications	(6,669)		(1,493)		(8,162)
Amounts reclassified out of accumulated other comprehensive income (loss)	(3,127)		—		(3,127)
Net other comprehensive loss	(3,542)		(1,493)		(5,035)
Accumulated other comprehensive loss at January 31, 2019	(809)		(12,653)		(13,462)
Other comprehensive income (loss) before reclassifications	1,755		(1,866)		(111)
Amounts reclassified out of accumulated other comprehensive loss	350		—		350
Net other comprehensive income (loss)	1,405		(1,866)		(461)
Accumulated other comprehensive income (loss) at January 31, 2020	596		(14,519)		(13,923)
Other comprehensive income (loss) before reclassifications	1,599		(1,545)		54
Amounts reclassified out of accumulated other comprehensive income (loss)	1,636		—		1,636
Net other comprehensive loss	(37)		(1,545)		(1,582)
Accumulated other comprehensive income (loss) at January 31, 2021	$	559	$	(16,064)	$	(15,505)

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 Brazilian real, which has resulted in lower U.S. dollar-translated balances of Brazilian real.

The amounts reclassified out of accumulated other comprehensive loss into the combined statements of operations, with presentation location, for the years ended January 31, 2021, 2020, and 2019, were as follows:


	Year Ended January 31,						Financial Statement Location
(in thousands)	2021		2020		2019
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	39	$	54	$	(28)	Cost of software revenue
	117		(42)		(203)		Cost of software service revenue
	92		61		(387)		Cost of professional service and other revenue
	960		208		(1,735)		Research and development, net
	674		108		(1,128)		Selling, general and administrative
	1,882		389		(3,481)		Total, before income taxes
	(246)		(39)		354		(Provision) benefit for income taxes
	$	1,636	$	350	$	(3,127)	Total, net of income taxes

Research and Development, Net

12 Months Ended

Jan. 31, 2021

Research and Development [Abstract]

Research and Development, Net

RESEARCH AND DEVELOPMENT, NET

Our gross research and development expenses for the years ended January 31, 2021, 2020, and 2019, were $129.2 million, $112.7 million, and $101.7 million, respectively. Reimbursements from the IIA and other government grant programs amounted to $0.5 million, $1.4 million, and $1.7 million, for the years ended January 31, 2021, 2020, and 2019, respectively, which were recorded as reductions of gross research and development expenses.

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Capitalized software development costs, net, beginning of year	$	11,679	$	6,076	$	5,117
Software development costs capitalized during the year	5,132		7,638		2,687
Amortization of capitalized software development costs	(3,072)		(2,023)		(1,730)
Write-offs of capitalized software development costs	(2,244)		—		—
Foreign currency translation and other	(180)		(12)		2
Capitalized software development costs, net, end of year	$	11,315	$	11,679	$	6,076

During the years ended January 31, 2021, we recorded an impairment charge of $2.2 million in software cost of revenue, reflecting the write-off of previously capitalized software development costs that were deemed non-recoverable based on our expectations of future market conditions. There were no material impairments of such capitalized costs during the years ended January 31, 2020 and 2019.

Income Taxes

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
U.S.	$	(8,665)	$	(10,116)	$	(3,769)
Non-U.S.	33,389		40,053		23,710
Total income before provision for income taxes	$	24,724	$	29,937	$	19,941

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Current provision (benefit) for income taxes:
U.S. Federal	$	(1,434)	$	(884)	$	1,702
U.S. State	(44)		(164)		69
Non-U.S.	8,087		(1,988)		(3,154)
Total current provision (benefit) for income taxes	6,609		(3,036)		(1,383)
Deferred provision (benefit) for income taxes:
U.S. Federal	(910)		372		1,848
U.S. State	(200)		89		420
Non-U.S.	(1,085)		5,142		6,735
Total deferred provision (benefit) for income taxes	(2,195)		5,603		9,003
Total provision for income taxes	$	4,414	$	2,567	$	7,620

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


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

Income tax provision at the U.S. federal statutory rate	$	5,192		$	6,287		$	4,189
U.S. State income tax (benefit) provision	(226)			(45)			436
Non-U.S. tax rate differential	(2,802)			6,734			2,477
Tax incentives	(139)			(1,292)			(305)
Valuation allowances	31			(898)			1,761
Non-deductible expenses/non-taxable income	(261)			1,677			(1,787)
Tax contingencies	1,184			(13,254)			(3,584)
U.S. tax effects of non-U.S. operations	1,001			3,268			4,273
Other, net	434			90			160
Total provision for income taxes	$	4,414		$	2,567		$	7,620
Effective income tax rate	17.9		%	8.6		%	38.2		%

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% - 23%, depending on the percentage of non-Israeli investment in the company). Our AE status expired between January 31, 2020 and January 31, 2021. Based on the current law, the company qualifies for an alternative tax incentive program as a Preferred Technological Enterprise (“PTE”). Pursuant to Amendment 73 to the Investment Law adopted in 2017, a company located in the Center of Israel that meets the conditions for PTE is subject to a 12% tax rate on eligible income. Income not eligible for PTE benefits is taxed at the regular corporate rate of 23%. 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 0.6%, 4.3%, and 1.5% for the years ended January 31, 2021, 2020, and 2019, respectively.

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


	January 31,
(in thousands)	2021		2020
Deferred tax assets:
Loss carryforwards	$	7,321	$	8,416
Accrued compensation	1,884		1,158
Accrued expenses	390		—
Operating lease liabilities	362		457
Exchange rate differences	344		—
Other, net	235		—
Total deferred tax assets	10,536		10,031
Deferred tax liabilities:
Deferred cost of revenue	(3,831)		(2,733)
Goodwill and other intangible assets	(874)		(1,147)
Exchange differences	—		(719)
Accrued expenses	—		(448)
Depreciation of property and equipment	(550)		(1,017)
Operating lease right-of-use assets	(295)		(363)
Other, net	—		(620)
Total deferred tax liabilities	(5,550)		(7,047)
Valuation allowance	(5,732)		(5,701)
Net deferred tax liabilities	$	(746)	$	(2,717)

Recorded as:
Deferred tax assets	$	3,303	$	2,015
Deferred tax liabilities	(4,049)		(4,732)
Net deferred tax liabilities	$	(746)	$	(2,717)

We had non-U.S. NOL carryforwards of approximately $78.3 million. At January 31, 2021, all but $2.6 million of these non-U.S. loss carryforwards had indefinite carryforward periods.

We currently intend to continue to indefinitely reinvest the earnings of our non-U.S. subsidiaries to finance non-U.S. activities to the extent distributions would result in an incremental tax cost. We have not provided tax on the outside basis difference of non-U.S. subsidiaries nor have we provided for any additional withholding or other tax that may be applicable should a future distribution be made from any unremitted earnings of non-U.S. subsidiaries. Due to complexities in the laws of the non-U.S. jurisdictions and the assumptions that would have to be made, it is not practicable to estimate the total amount of income and withholding taxes that would have to be provided on such earnings.

As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes guidance requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, we establish a valuation allowance. We have recorded valuation allowances in the amount of $5.7 million at January 31, 2021 and 2020.

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


	Year Ended January 31,
(in thousands)	2021		2020
Valuation allowance, beginning of year	$	(5,701)	$	(6,815)
Income tax (provision) benefit	(31)		898
Adoption of ASU No. 2014-09	—		—
Currency translation adjustment and other	—		216
Valuation allowance, end of year	$	(5,732)	$	(5,701)

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial

statements, determined by applying the prescribed methodologies of accounting for uncertainty in income taxes, represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets.

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gross unrecognized tax benefits, beginning of year	$	8,742	$	24,755	$	32,147
Increases related to tax positions taken during the current year	2,919		1,889		6,018
Increases as a result of business combinations	—		286		61
Increases related to tax positions taken during prior years	18		—		6,141
Increases (decreases) related to foreign currency exchange rates	272		1,073		(1,782)
Reductions for tax positions of prior years	(537)		(13,623)		(15,284)
Reductions for settlements with tax authorities	—		(4,133)		(1,111)
Lapses of statutes of limitations	(1,542)		(1,505)		(1,435)
Gross unrecognized tax benefits, end of year	$	9,872	$	8,742	$	24,755

As of January 31, 2021, we had $9.9 million of unrecognized tax benefits, all of which, if recognized, would impact the effective income tax rate in future periods. We recorded $(0.1) million, $1.8 million, and $0.5 million of net tax (expense) benefit for interest and penalties related to uncertain tax positions in our provision for income taxes for the years ended January 31, 2021, 2020, and 2019, respectively. Accrued liabilities for interest and penalties were $1.0 million and $0.9 million at January 31, 2021 and 2020, respectively. Interest and penalties (expense and/or benefit) are recorded as a component of the provision for income taxes in the combined financial statements.

Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. In Israel, we are no longer subject to income tax examination for years prior to January 31, 2018. In the U.S., our federal returns are no longer subject to income tax examination for years prior to January 31, 2018.

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, 2021 could decrease by approximately $1.3 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional taxes, the adjustment of certain deferred taxes including the need for additional valuation allowances and the recognition of tax benefits.

- Definition

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

+ References + Details

Fair Value Measurements

12 Months Ended

Jan. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of January 31, 2021 and 2020:


	January 31, 2021
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	998	$	—
Total assets	$	—	$	998	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	678	$	—
Contingent consideration—business combinations	—		—		2,923
Total liabilities	$	—	$	678	$	2,923


	January 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	812	$	—
Total assets	$	—	$	812	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	132	$	—
Contingent consideration—business combinations	—		—		11,509
Total liabilities	$	—	$	132	$	11,509

The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the years ended January 31, 2021 and 2020:



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	11,509	$	13,311
Contingent consideration liabilities recorded for business combinations	—		7,023
Changes in fair values, recorded in operating expenses	(3,665)		(5,392)
Payments of contingent consideration	(4,921)		(3,433)
Fair value measurement at end of period	$	2,923	$	11,509

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 combined statements of operations within selling, general and administrative expenses.

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

Fair Value Measurements

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.

Contingent Consideration Asset or Liability—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 a discount rate of 0.4% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2021. We utilized discount rates ranging from 2.1% to 4.5% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2020.

Other Financial Instruments

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

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets, operating lease ROU 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 2, “Summary of Significant Accounting Policies”.

As of January 31, 2021, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $4.7 million, of which $4.0 million was remeasured to fair value based on an observable transaction during the year ended January 31, 2021. These investments are included within other assets on the consolidated balance sheets. An unrealized gain of $3.2 million, which adjusted the carrying value of a noncontrolling equity investment, and a realized gain of $0.6 million upon the receipt of proceeds related to the partial sale of the same equity investment during the period was recorded in other income (expense), net on the consolidated statement of operations for the year ended January 31, 2021. As of January 31, 2020, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $1.8 million. There were no observable price changes in our investments in privately-held companies as of January 31, 2020. We did not recognize any impairments or other adjustments during the years ended January 31, 2021 and 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

12 Months Ended

Jan. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

Our primary objective for holding derivative financial instruments is to manage foreign currency exchange 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 New Israeli Shekel. We also periodically utilize foreign currency forward contracts to manage exposures resulting from forecasted customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. These foreign currency forward contracts generally have maturities of no longer than twelve months, although occasionally we will execute a contract that extends beyond twelve months, depending upon the nature of the underlying risk.

We held outstanding foreign currency forward contracts with notional amounts of $54.8 million and $89.0 million as of January 31, 2021 and 2020, respectively.

Fair Values of Derivative Financial Instruments

The fair values of our derivative financial instruments and their classifications in our combined balance sheets as of January 31, 2021 and 2020 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2021		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	998	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	—		102
Total derivative assets		$	998	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	355	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	323		116
Total derivative liabilities		$	678	$	132

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 combined statement of operations for the years ended January 31, 2021, 2020, and 2019, were as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Net gains (losses) recognized in AOCL:
Foreign currency forward contracts	$	1,863	$	1,950	$	(7,410)

Net gains (losses) reclassified from AOCL to the combined statements of operations:
Foreign currency forward contracts	$	1,882	$	389	$	(3,481)

For information regarding the line item locations of the net losses on derivative financial instruments reclassified out of AOCL into the combined statements of operations, see Note 9, “Accumulated Other Comprehensive Loss.”

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

Derivative Financial Instruments Not Designated as Hedging Instruments

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


	Classification in Combined Statements of Operations	Year Ended January 31,
(in thousands)		2021		2020		2019
Foreign currency forward contracts	Other income (expense), net	$	(95)	$	395	$	726

Stock-based Compensation and Other Benefit Plans

12 Months Ended

Jan. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Compensation and Other Benefit Plans

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

Verint maintains stock-based compensation plans for the benefit of its officers, directors and employees. The following disclosures represent stock-based compensation expenses attributable to Cognyte based on the awards and terms previously granted under Verint’s stock-based compensation plans to Cognyte employees and an allocation of Verint’s corporate and shared functional employee stock-based compensation expenses. Accordingly, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the results that Cognyte would have experienced as an independent company for the periods presented. The Cognyte employees’ stock-based compensation expenses were specifically identified

whereas Verint’s corporate and shared functional employees’ stock-based compensation expenses were specifically identified to the extent possible with the remainder allocated on the basis of revenue.

Stock-Based Compensation Expense

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


	Year Ended January 31, 2021
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	110	$	624	$	734
Cost of revenue - software service	183		258		441
Cost of revenue - professional service and other	218		734		952
Research and development, net	1,109		4,512		5,621
Selling, general and administrative	1,697		18,097		19,794
Total stock-based compensation expense	3,317		24,225		27,542
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	416		3,931		4,347
Total stock-based compensation, net of taxes	$	2,901	$	20,294	$	23,195


	Year Ended January 31, 2020
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	90	$	552	$	642
Cost of revenue - software service	259		377		636
Cost of revenue - professional service and other	330		1,311		1,641
Research and development, net	1,272		5,026		6,298
Selling, general and administrative	1,508		20,308		21,816
Total stock-based compensation expense	3,459		27,574		31,033
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	454		3,946		4,400
Total stock-based compensation, net of taxes	$	3,005	$	23,628	$	26,633


	Year Ended January 31, 2019
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	25	$	308	$	333
Cost of revenue - software service	356		346		702
Cost of revenue - professional service and other	218		992		1,210
Research and development, net	858		3,997		4,855
Selling, general and administrative	1,841		16,607		18,448
Total stock-based compensation expense	3,298		22,250		25,548
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	503		3,199		3,702
Total stock-based compensation, net of taxes	$	2,795	$	19,051	$	21,846

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


	Year Ended January 31, 2021
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	3,371	$	20,052	$	23,423
Stock bonus program and bonus share program	(111)		4,111		4,000
Total equity-settled awards	3,260		24,163		27,423
Phantom stock units (cash-settled awards)	57		62		119
Total stock-based compensation expense	$	3,317	$	24,225	$	27,542


	Year Ended January 31, 2020
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	3,014	$	20,399	$	23,413
Stock bonus program and bonus share program	445		7,170		7,615
Total equity-settled awards	3,459		27,569		31,028
Phantom stock units (cash-settled awards)	—		5		5
Total stock-based compensation expense	$	3,459	$	27,574	$	31,033


	Year Ended January 31, 2019
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	2,907	$	17,892	$	20,799
Stock bonus program and bonus share program	391		4,346		4,737
Total equity-settled awards	3,298		22,238		25,536
Phantom stock units (cash-settled awards)	—		12		12
Total stock-based compensation expense	$	3,298	$	22,250	$	25,548

Awards under Verint’s 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 Verint common stock.

Stock-Based Awards Granted by Verint

Verint periodically awards RSUs to directors, officers, and other employees. The fair value of these awards is equivalent to the market value of Verint common stock on the grant date. RSUs are not shares of Verint 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 Verint common stock. RSUs are subject to certain restrictions and forfeiture provisions prior to vesting.

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

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

RSUs and PSUs that are expected to settle with cash payments upon vesting, if any, are reflected as liabilities on our combined balance sheets. Such RSUs and PSUs were insignificant at January 31, 2021, 2020, and 2019. As of January 31, 2021, for such RSU awards that are outstanding, settlement with cash payments was not considered probable, and therefore these awards have been accounted for as equity-classified awards and are included in the table below.

The following table (“Award Activity Table”) summarizes activity for RSUs, PSUs, and other stock awards to Company personnel that reduce available plan capacity under the plans for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
	2021			2020			2019
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value
Beginning balance	669	$	51.35	705	$	41.45	691	$	41.40
Granted	413	$	47.05	361	$	59.76	475	$	43.68
Released	(381)	$	47.90	(333)	$	40.70	(361)	$	44.44
Forfeited	(65)	$	52.68	(64)	$	46.69	(100)	$	40.92
Ending balance	636	$	50.50	669	$	51.35	705	$	41.45

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 $0.2 million for each of the years ended January 31, 2021, 2020, and 2019.

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 Israel and 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 certain employees of our Israeli subsidiaries, subject to certain conditions. In most cases, our liability for these severance payments is fully provided for by regular deposits to funds administered by insurance providers and by an accrual for the amount of our liability which has not yet been deposited.

Severance expenses for our Israeli employees for the years ended January 31, 2021, 2020, and 2019 were $7.5 million, $7.3 million, and $6.4 million, respectively.

Leases

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Leases

LEASES

We have entered into operating leases primarily for corporate offices, research and development facilities, and automobiles. Our finance leases primarily relate to infrastructure equipment. Our leases have remaining lease terms of 1 year to 7 years. As of January 31, 2020, assets recorded under finance leases were $3.5 million and there was no accumulated depreciation associated with these finance leases as they were not placed in service. During the year ended January 31, 2021, we purchased the infrastructure equipment historically recorded as finance leases and capitalized the purchased assets to property and equipment, net. We do not have any finance leases as of January 31, 2021.

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


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	11,133	$	10,016
Finance lease expenses:
Amortization of right-of-use assets (1)	84		—
Interest on lease liabilities	102		22
Total finance lease expenses	186		22
Variable lease expenses	3,349		2,996
Short-term lease expenses	34		205
Sublease income	—		—
Total lease expenses	$	14,702	$	13,239

(1) The assets subject to finance leases had not been placed in service as of January 31, 2020, and therefore there is no amortization of ROU assets for the year end January 31, 2020.

During the year ended January 31, 2021, we exited certain leased offices primarily due to our workforce operating under remote work environments in certain locations due to COVID-19, resulting in accelerated operating lease expenses of $0.7 million. During the year ended January 31, 2019, we recorded rent expense under all operating leases of $8.1 million under the previous lease accounting standard.

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,822		$	7,861
Operating cash flows from finance leases	$	102		$	22
Financing cash flows from finance leases	$	492		$	244
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,869		$	4,629
Finance leases	$	—		$	3,117
Weighted average remaining lease terms
Operating leases	6 years			4 years
Finance leases	—			5 years
Weighted average discount rates
Operating leases	4.8		%	5.2		%
Finance leases	—		%	4.6		%

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


	January 31, 2021
(in thousands)	Operating Leases
Year Ending January 31,
2022	$	8,499
2023	8,244
2024	7,672
2025	6,573
2026	4,139
Thereafter	162
Total future minimum lease payments	35,289
Less imputed interest	(4,069)
Total	$	31,220

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	7,085
Operating lease liabilities	24,135
Other liabilities	—
Total	$	31,220

Leases

LEASES

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


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	11,133	$	10,016
Finance lease expenses:
Amortization of right-of-use assets (1)	84		—
Interest on lease liabilities	102		22
Total finance lease expenses	186		22
Variable lease expenses	3,349		2,996
Short-term lease expenses	34		205
Sublease income	—		—
Total lease expenses	$	14,702	$	13,239

(1) The assets subject to finance leases had not been placed in service as of January 31, 2020, and therefore there is no amortization of ROU assets for the year end January 31, 2020.

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,822		$	7,861
Operating cash flows from finance leases	$	102		$	22
Financing cash flows from finance leases	$	492		$	244
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,869		$	4,629
Finance leases	$	—		$	3,117
Weighted average remaining lease terms
Operating leases	6 years			4 years
Finance leases	—			5 years
Weighted average discount rates
Operating leases	4.8		%	5.2		%
Finance leases	—		%	4.6		%

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


	January 31, 2021
(in thousands)	Operating Leases
Year Ending January 31,
2022	$	8,499
2023	8,244
2024	7,672
2025	6,573
2026	4,139
Thereafter	162
Total future minimum lease payments	35,289
Less imputed interest	(4,069)
Total	$	31,220

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	7,085
Operating lease liabilities	24,135
Other liabilities	—
Total	$	31,220

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations In the ordinary course of business, we enter into certain unconditional purchase obligations, which are agreements to purchase goods or services that are enforceable, legally binding, and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Our purchase orders are based on current needs and are typically fulfilled by our vendors within a relatively short time horizon. As of January 31, 2021, our unconditional purchase obligations totaled approximately $62.4 million. Licenses and Royalties We license certain technology and pay royalties under such licenses and other agreements entered into in connection with research and development activities. As discussed in Note 2, “Summary of Significant Accounting Policies”, we receive non-refundable grants from the IIA that fund a portion of our research and development expenditures. The Israeli law under which the IIA grants are made limits our ability to manufacture products, or transfer technologies, developed using these grants outside of Israel. If we were to seek approval to manufacture products, or transfer technologies, developed using these grants outside of Israel, we could be subject to 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 bank guarantees and, in certain cases, by standby letters of credit. In general, we would only be liable for the amounts of these guarantees in the event that our nonperformance permits termination of the related contract by our customer, which we believe is remote. At January 31, 2021, we had approximately $70.7 million of outstanding bank guarantees and letters of credit relating primarily to these performance guarantees. As of January 31, 2021, we believe we were in compliance with our performance obligations under all contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on our combined 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 Israeli 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. Under the Separation and Distribution Agreement we entered into with Verint in connection with the spin-off, the parties have agreed to certain other indemnification arrangements with respect to litigation claims and liabilities allocated in the spin-off. Our liabilities in this regard are reflected on our historical Combined Balance Sheets as of January 31, 2021 and 2020. In connection with the spin-off, we entered into a tax matters agreement (the “Tax Matters Agreement”) with Verint under which we and Verint each agreed to share the obligation to pay any taxes as shown on tax returns filed by Verint (or any member of its group), on one hand, and us (or any member of our group), on the other hand, such that we will be primarily responsible for any taxes related to, or arising in connection with, the Cognyte Business, and Verint will be responsible for any taxes related to, or arising in connection with, the remaining business of Verint, regardless of which party prepares and files any such tax return and whether such taxes arise prior to or after the spin-off. We and Verint agreed to indemnify each other under the Tax Matters Agreement for certain actions or inactions that cause the distribution of our stock to fail to qualify as tax-free for U.S. federal income and Israeli tax purposes. If the distribution fails to qualify as tax-free due to no fault of either Verint or us, Verint and we will jointly be responsible for any resulting tax. Under the terms of the Tax Matters Agreement, we and Verint agree generally to cooperate in preparing and filing tax returns and will retain and make available tax records to the other party. Contests with taxing authorities are generally controlled by whichever of us or Verint bears the potential liability for the contested tax. However, with respect to certain income tax returns of Verint group, Verint has an exclusive right to control any contest with taxing authorities regarding tax liabilities in connection with such income tax returns, even if we are allocated all or a portion of such taxes under the terms of the Tax Matters Agreement. If any tax contest relates to a failure of the spin-off to qualify as tax-free due to the fault of Verint or us, then the party at fault will control such tax contest. As we believe it is unlikely that we will incur obligations under the Tax Matters Agreement related to the tax-free treatment of the spin-off, we have not recorded such liabilities in our Combined Balance Sheet as of January 31, 2021. Legal Proceedings In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our primary Israeli subsidiary, Cognyte Technologies Israel Ltd (formerly known as Verint Systems Limited, “Cognyte IL”) (Case Number 4186/09) and against our former affiliate CTI (Case Number 1335/09). Also in March 2009, a former employee of Comverse Limited (CTI’s primary Israeli subsidiary at the time), Ms. Roni Katriel, commenced similar legal actions in Israel against Comverse Limited (Case Number 3444/09). In these actions, the plaintiffs generally sought to certify class action suits against the defendants on behalf of current and former employees of Cognyte IL and Comverse Limited who had been granted stock options in Verint and/or CTI and who were allegedly damaged as a result of a suspension on option exercises during an extended filing delay period that is discussed in Verint’s and CTI’s historical public filings. On June 7, 2012, the Tel Aviv District Court, where the cases had been filed or transferred, allowed the plaintiffs to consolidate and amend their complaints against the three defendants: Cognyte IL, CTI, and Comverse Limited. On October 31, 2012, CTI distributed of all of the outstanding shares of common stock of Comverse, Inc., its principal operating subsidiary and parent company of Comverse Limited, to CTI’s shareholders (the “Comverse Share Distribution”). In the period leading up to the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in Verint and in its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or to unaffiliated third parties. As the result of these transactions, Comverse, Inc. became an independent company and ceased to be affiliated with CTI, and CTI ceased to have any material assets other than its equity interests in Verint. Prior to the completion of the Comverse Share Distribution, the plaintiffs sought to compel CTI to set aside up to $150.0 million in assets to secure any future judgment, but the District Court did not rule on this motion. In February 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc. On February 4, 2013, Verint acquired the remaining CTI shell company in a merger transaction (the “CTI Merger”). As a result of the CTI Merger, Verint assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the foregoing legal actions. However, under the terms of a Distribution Agreement entered into in connection with the Comverse Share Distribution, Verint, as successor to CTI, is entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses Verint may suffer in its capacity as successor to CTI related to the foregoing legal actions. Under the Separation and Distribution Agreement we have entered into with Verint in connection with the Spin-off, we agreed to indemnify Verint for our share of any losses Verint may suffer related to the foregoing legal actions either in its capacity as successor to CTI to the extent not indemnified by Mavenir or due to its former ownership of us and Cognyte IL. Following an unsuccessful mediation process, on August 28, 2016, the District Court (i) denied the plaintiffs’ motion to certify the suit as a class action with respect to all claims relating to Verint stock options and (ii) approved the plaintiffs’ motion to certify the suit as a class action with respect to claims of current or former employees of Comverse Limited (now part of Mavenir) or of Cognyte IL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case would be evaluated under New York law. As a result of this ruling (which excluded claims related to Verint stock options from the case), one of the original plaintiffs in the case, Ms. Deutsch, was replaced by a new representative plaintiff, Mr. David Vaaknin. CTI appealed portions of the District Court’s ruling to the Israeli Supreme Court. On August 8, 2017, the Israeli Supreme Court partially allowed CTI’s appeal and ordered the case to be returned to the District Court to determine whether a cause of action exists under New York law based on the parties’ expert opinions. Following two unsuccessful rounds of mediation in mid to late 2018 and in mid-2019, the proceedings resumed. On April 16, 2020, the District Court accepted plaintiffs’ application to amend the motion to certify a class action and set deadlines for filing amended pleadings by the parties. CTI submitted a motion to appeal the District Court’s decision to the Supreme Court, as well as a motion to stay the proceedings in the District Court pending the resolution of the appeal. On July 6, 2020, the Supreme Court granted the motion for a stay. On July 27, 2020, the plaintiffs filed their response on the merits of the motion for leave to appeal, and the parties are waiting for further instructions or decisions from the Supreme Court. 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 adverse effect on our combined financial position, results of operations, or cash flows.

Geographic and Significant Customer Information

12 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Geographic and Significant Customer Information

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Geographic Information

Revenue by major geographic region is based on the location of our contracting subsidiary, which may differ from the geographic location of the customer.

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
EMEA:
Israel	$	274,113	$	277,605	$	263,540
Germany	86,834		77,540		73,065
Other	18,727		22,775		17,170
Total EMEA	379,674		377,920		353,775
Americas:
United States	44,746		53,354		56,839
Other	7,134		10,359		10,514
Total Americas	51,880		63,713		67,353
APAC	11,904		15,476		12,332
Total revenue	$	443,458	$	457,109	$	433,460

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

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


	January 31,
(in thousands)	2021		2020
Israel	$	31,104	$	30,586
United States	902		4,293
Other countries	5,589		6,700
Total property and equipment, net	$	37,595	$	41,579

Significant Customers

The Company’s largest customers accounted for the following percentage of total revenue:


	Year Ended January 31,
	2021		2020		2019
Customer A	16.9	%	15.6	%	14.7	%
Customer B	14.1	%	12.9	%	12.6	%

In making this determination of significant customers, we define a customer as an organization from which we have recognized revenue in a reporting period. In situations where a governmental organization acts on behalf of multiple agencies or departments, we treat that organization as the customer for reporting purposes notwithstanding that each of the underlying agencies or departments is generally making its own independent purchasing decisions.

- Definition

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

+ References

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+ Details

Earnings Per Share

12 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

On February 1, 2021, the date of consummation of the Spin-off, 65,773,335 of the Company’s ordinary shares, no par value, were distributed to Verint shareholders of record as of the January 25, 2021 record date. This share amount is being utilized for the calculation of basic earnings per share (“EPS”) for all periods presented. There were no dilutive effects to basic ordinary shares outstanding and EPS for all periods disclosed.

The following table summarizes the calculation of basic and diluted net income per ordinary share attributable to Cognyte for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands except share and per share data)	2021		2020		2019
Net income	$	20,310	$	27,370	$	12,321
Net income attributable to noncontrolling interest	6,107		7,179		3,593
Net income attributable to Cognyte Business of Verint Systems Inc.	$	14,203	$	20,191	$	8,728

Ordinary shares outstanding:
Basic shares	65,773		65,773		65,773
Effective of dilutive shares	—		—		—
Diluted shares	65,773		65,773		65,773

Net income per ordinary share attributable to Cognyte Business of Verint Systems Inc:
Basic and diluted	$	0.22	$	0.31	$	0.13

Subsequent Events	12 Months Ended
Subsequent Events	Jan. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS The combined financial statements of the Company are derived from the consolidated financial statements of Verint, which issued its financial statements for the year ended January 31, 2021 on March 31, 2021. Accordingly, the Company has evaluated transactions or other events for consideration as recognized subsequent events in the financial statements through March 31, 2021. Additionally, the Company has evaluated transactions and other events through the issuance of these combined financial statements, April 29, 2021, for purposes of disclosure of unrecognized subsequent events. The Spin-Off On February 1, 2021, we completed the previously announced Spin-off from Verint (the “Spin-off”) into a separate, independent publicly traded company, Cognyte Software Ltd. (Nasdaq: CGNT). The Spin-off was completed by means of a distribution in which each holder of Verint’s common stock, par value $0.001 per share, received one share of Cognyte’s ordinary shares, no par value, for every share of common stock of Verint held of record as of the close of business on January 25, 2021. After the distribution, Verint does not beneficially own any shares of common stock in Cognyte and will no longer consolidate Cognyte into its financial results for periods ending after January 31, 2021. On February 1, 2021, in connection with the Spin-off, we entered into certain agreements with Verint that govern the relationship between Cognyte and Verint following the Spin-off, including each of the following: a Separation and Distribution Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a limited duration Transition Services Agreement, an Intellectual Property Cross License Agreement, and a Trademark Cross License Agreement. The Revolving Credit Facilities On February 1, 2021, the previously announced revolving credit facilities became effective upon the completion of the spin-off. The two revolving credit facilities provide for up to $100.0 million in total borrowings and each have a term of three years with variable interest rates of 1.55%-1.65% plus LIBOR. The facilities require the Company to pay an annual commitment fee of 0.4% based on the average daily unused commitments. As of April 29, 2021, there were no amounts outstanding under the revolving credit facilities. The Dividend On April 13, 2021, we paid the Dividend of $35.0 million to Verint, the sole holder of record of ordinary shares as of the January 29, 2021 record date, as we satisfied the conditions described in Note 3, “Related Party Transactions with Verint”.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Jan. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of January 31, 2021 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less.
Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits	Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits Restricted cash and cash equivalents, and restricted bank time deposits are mainly pledged as collateral for performance guarantees.
Investments	Investments Our investments generally consist of bank time deposits with remaining maturities in excess of 90 days at the time of purchase. We held no marketable debt securities at January 31, 2021 and 2020. Investments with maturities in excess of one year are included in other assets.
Accounts Receivable, net	Accounts Receivable, netTrade accounts receivable are comprised of invoiced amounts due from customers for which we have an unconditional right to collect and are not interest-bearing. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, trade accounts receivable, and contract assets. We invest our cash in bank accounts and bank time deposits. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities. We grant credit terms to our customers in the ordinary course of business. Concentrations of credit risk with respect to trade accounts receivable and contract assets are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments on February 1, 2021. ASU No. 2016-13 requires us to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. Our allowance for doubtful accounts or expected credit losses is estimated based on an analysis of the aging of our accounts receivable and contract assets, historical write-offs, customer payment patterns, individual customer creditworthiness, current economic trends, reasonable and supportable forecasts of future economic conditions, and/or establishment of specific reserves for customers in adverse financial condition. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. We assess the adequacy of the allowance for doubtful accounts on a quarterly basis.
Inventories	Inventories Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method of inventory accounting. The valuation of our inventories requires us to make estimates regarding excess or obsolete inventories, including making estimates of the future demand for our products. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated changes in demand, price, or technological developments could have a significant impact on the value of our inventory and reported operating results. Charges for excess and obsolete inventories are included within cost of revenue.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method based over the estimated useful lives of the assets. The vast majority of equipment, furniture and other is depreciated over periods ranging from three to five years. Software is typically depreciated over periods ranging from three to four years. Buildings are depreciated over twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease term. Finance leased assets are amortized over the related lease term. The cost of maintenance and repairs of property and equipment is charged to operations as incurred. When assets are retired or disposed of, the cost and accumulated depreciation or amortization thereon are removed from the combined balance sheet and any resulting gain or loss is recognized in the combined statement of operations.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. We evaluated segment reporting in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting. We concluded that we operate in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the CODM to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a combined basis, inclusive of all of the Company’s products.
Goodwill and Other Acquired Intangible Assets	Goodwill and Other Acquired Intangible Assets For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. We test goodwill for impairment at the reporting unit level 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. We operate as one reporting unit. 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 our reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. If our quantitative testing determines that the carrying value of the reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to our reporting unit. We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of our 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, and non-competition agreements. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 10 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.
Fair Value Measurements	Fair Value Measurements Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This fair value hierarchy consists of three levels of inputs that may be used to measure fair value: •Level 1: quoted prices in active markets for identical assets or liabilities; •Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or •Level 3: unobservable inputs that are supported by little or no market activity. We review the fair value hierarchy classification of our applicable assets and liabilities at each reporting period. Changes in the observability of valuation inputs may result in transfers within the fair value measurement hierarchy.
Fair Values of Financial Instruments	Fair Values of Financial InstrumentsOur recorded amounts of cash and cash equivalents, restricted cash and cash equivalents, and restricted bank time deposits, accounts receivable, contract assets, investments, and accounts payable approximate fair value, due to the short-term nature of these instruments. We measure certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.
Derivative Financial Instruments	Derivative Financial Instruments As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts to hedge against certain foreign currency exposure. 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 combined 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 three major financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.
Revenue Recognition	Revenue Recognition We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was adopted on February 1, 2018, using the modified retrospective transition method. For further discussion of our accounting policies related to revenue, see Note 4, “Revenue Recognition.”
Cost of Revenue	Cost of Revenue Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products and third-party SaaS providers, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, travel expenses associated with provision of installation, training, consulting and development services resources dedicated to project management and an allocation of overhead costs, such as facility, information technology, operations costs, and other overhead expenses. Costs that relate to materials and royalties are generally expensed upon shipment and costs related to travel, subcontractors, and personnel and related expenses are generally expensed as incurred in the period in which the personnel related services are performed. Refer to Note 4, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.
Research and Development, net	Research and Development, net With the exception of certain software development costs, all research and development costs are expensed as incurred, and consist primarily of personnel and consulting costs, travel, depreciation of research and development equipment, and related overhead and other costs associated with research and development activities. We receive non-refundable grants from the Israeli Innovation Authority (“IIA”) that fund a portion of our research and development expenditures. We currently only enter into non-royalty-bearing arrangements with the IIA which do not require us to pay royalties. Funds received from the IIA are recorded as a reduction to research and development expense. Royalties, to the extent paid, are recorded as part of our cost of revenue. We also periodically derive benefits from participation in certain government-sponsored programs in other jurisdictions, for the support of research and development activities conducted in those locations.
Software Development Costs	Software Development Costs Costs incurred to acquire or develop software to be sold, leased or otherwise marketed are capitalized after technological feasibility is established, and continue to be capitalized through the general release of the related software product. Amortization of capitalized costs begins in the period in which the related product is available for general release to customers and is recorded on a straight-line basis, which approximates the pattern in which the economic benefits of the capitalized costs are expected to be realized, over the estimated economic lives of the related software products, generally over a period of four to six years.
Internal-Use Software	Internal-Use Software We capitalize costs associated with software that is acquired, internally developed or modified solely to meet our internal needs. Capitalization begins when the preliminary project stage has been completed and management with the relevant authority authorizes and commits to the funding of the project. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are generally amortized over estimated useful lives of four years on a straight-line basis, which best represents the pattern of the software’s use.
Income Taxes	Income Taxes The tax provision is presented on a separate company basis as if we were a separate filer. A portion of our operations have historically been included in the tax returns filed by certain Verint entities for which our business is a part of. The effects of tax adjustments and settlements from taxing authorities are presented in our combined financial statements in the period to which they relate as if we were a separate filer. Our current obligations for taxes are settled with our parent on an estimated basis and adjusted in later periods as appropriate. All income taxes due to or due from our parent that have not been settled or recovered by the end of the period are reflected in net parent investment within the combined financial statements. The tax provision has been calculated as if the business was operating on a stand-alone basis and filed separate tax returns in the jurisdictions in which it operates. Therefore, cash tax payments and items of current and deferred taxes may not be reflective of the actual tax balances had the business been a stand-alone company during the periods presented. 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 combined 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 Israel, the United States and numerous foreign jurisdictions. The calculation of our income tax provision involves the application of complex tax laws and requires significant judgment and estimates. We evaluate the realizability of our deferred tax assets for each jurisdiction in which we operate at each reporting date, and establish valuation allowances when it is more likely than not that all or a portion of our deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. We consider all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. In circumstances where there is sufficient negative evidence indicating that our deferred tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that we believe is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets. Our policy is to include interest (expense and/or income) and penalties related to unrecognized income tax benefits as a component of the provision for income taxes.
Functional Currencies and Foreign Currency Transaction Gains and Losses	Functional Currencies and Foreign Currency Transaction Gains and Losses Our functional currency, and the functional currency of most of our subsidiaries, is the U.S. dollar, although we have some subsidiaries with functional currencies that are their local currency. Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within other income (expense), net in the combined statements of operations. We recorded net foreign currency gains of $1.7 million and net foreign currency losses of $0.7 million and $2.1 million for the years ended January 31, 2021, 2020, and 2019, respectively. For combined reporting purposes, in those instances where a subsidiary has a functional currency other than the U.S. dollar, revenue and expenses are translated into U.S. dollars using average exchange rates for the reporting period, while assets and liabilities are translated into U.S. dollars using period-end rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive loss in the accompanying combined balance sheets.
Stock-Based Compensation	Stock-Based Compensation Certain Company employees participate in stock-based compensation plans sponsored by Verint. Awards granted under the plans are based on Verint’s common shares and, as such, are included in net parent investment. 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.
Leases	Leases We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our combined balance sheets. Finance lease assets are included in property and equipment, and corresponding finance lease liabilities are included within accrued expenses and other current liabilities (current portions), and other liabilities (long-term portions), on our combined balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which we account for as a single lease component. Some of our leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases on our ROU assets and lease liabilities was not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, we do not have any related party leases and our sublease transactions are de minimis.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. This new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Our financial instruments within the scope of this guidance primarily includes accounts receivable and contract assets. On February 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The adoption of ASU No. 2016-13 resulted in a $0.5 million increase in our allowance for expected credit losses related to accounts receivable and contract assets, a $0.1 million increase to deferred tax assets, and an impact of $0.4 million to our net parent investment. The new accounting standard did not have a material impact on our combined financial statements, including accounting policies, given our limited historical write-off activity. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires customers in a hosting arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize and which costs to expense. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the combined balance sheet as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the combined statement of operations as the related fees of the arrangement. We adopted ASU No. 2018-15 prospectively to eligible costs incurred on or after February 1, 2020 and the implementation did not have a material impact on our combined financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to The Disclosure Requirements for Fair Value Measurement, which modified the disclosure requirements on fair value measurements. Since the standard affects only disclosure requirements, the adoption of the standard did not have an impact on our combined financial statements. New Accounting Pronouncements Not Yet Effective In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. ASU No. 2020-06 also eliminates the treasury stock method to calculate diluted earnings per share and requires the if-converted method. This new standard will be effective for us in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We are currently assessing the impact of adopting this standard on our combined financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for annual reporting periods beginning after December 15, 2021, and interim reporting periods within annual reporting periods beginning after December 15, 2022. We are currently reviewing this standard but do not expect that it will have a material impact on our combined financial statements.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 31, 2021

Accounting Policies [Abstract]

Schedule of Allowance for Doubtful Accounts

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Allowance for doubtful accounts, beginning of year	$	4,085	$	2,911	$	1,763
Cumulative effect of adoption of ASU No. 2016-13	435		—		—
Provisions charged to expense	1,840		1,355		1,937
Amounts written off	(1,922)		(152)		(744)
Other, including fluctuations in foreign exchange rates	121		(29)		(45)
Allowance for doubtful accounts, end of year	$	4,559	$	4,085	$	2,911

Related Party Transactions with Verint (Tables)

12 Months Ended

Jan. 31, 2021

Schedule of Related Party Transactions

The components of the costs of services allocated to the Company for the years ended January 31, 2021, 2020, and 2019 are as follows:


	Year Ended January 31,
(in thousands)	2021		2020		2019
Software - cost of revenue	$	1,981	$	1,871	$	688
Software service - cost of revenue	1,548		1,639		2,460
Professional service and other - cost of revenue	2,743		4,654		2,919
Research and development, net	21,783		19,139		17,805
Selling, general and administrative	69,210		54,452		48,774
Total allocated corporate expenses	$	97,265	$	81,755	$	72,646

Due to parent, current consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Dividends payable to parent, current	$	35,000	$	—
Related party payables, current	3,772		—
Related party notes payable, current	—		7,025
Total due to parent, current	$	38,772	$	7,025


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash pooling and general financing activities	$	(258,799)	$	(133,666)	$	(45,192)
Corporate allocations	97,265		81,755		72,646
Related party payables	(3,772)		—		—
Income taxes	1,088		9,118		4,952
Total net transfers (to) from parent per combined statements of equity	(164,218)		(42,793)		32,406
Stock-based compensation - equity-classified awards and issuances	(29,062)		(29,264)		(25,868)
Related party payables	3,772		—		—
Other, net	461		—		—
Total net transfers (to) from parent per combined statements of cash flows	$	(189,047)	$	(72,057)	$	6,538

Revenue Recognition (Tables)

12 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Nonrecurring revenue primarily consists of our perpetual licenses, appliances, custom development, installation and integration services, consulting and training, and the resale of third-party hardware.


	Year Ended January 31,
(in thousands)	2021		2020		2019
Revenue by recurrence:
Recurring revenue	$	223,405	$	192,578	$	165,265
Nonrecurring revenue	220,053		264,531		268,195
Total revenue	$	443,458	$	457,109	$	433,460

Schedule of Contract Balances

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


	January 31,
(in thousands)	2021		2020
Accounts receivable, net	$	175,001	$	180,441
Contract assets, net	$	20,317	$	28,873
Long-term contract assets, net (included in other assets)	$	1,219	$	937
Contract liabilities	$	127,012	$	143,695
Long-term contract liabilities	$	22,037	$	23,305

Schedule of Remaining Performance Obligation

The following table provides information about our RPO:


	January 31,
(in thousands)	2021		2020
RPO:
Expected to be recognized within 1 year	$	353,166	$	356,677
Expected to be recognized in more than 1 year	198,572		225,056
Total RPO	$	551,738	$	581,733

Cash, Cash Equivalents, and Short-term Investments (Tables)

12 Months Ended

Jan. 31, 2021

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

Schedule of Cash, Cash Equivalents and Short-term Investments

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


	January 31, 2021
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	78,570	$	—	$	—	$	78,570
Total cash and cash equivalents	$	78,570	$	—	$	—	$	78,570

Short-term investments:
Bank time deposits	$	4,713	$	—	$	—	$	4,713
Total short-term investments	$	4,713	$	—	$	—	$	4,713


	January 31, 2020
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	201,090	$	—	$	—	$	201,090
Total cash and cash equivalents	$	201,090	$	—	$	—	$	201,090

Short-term investments:
Bank time deposits	$	6,603	$	—	$	—	$	6,603
Total short-term investments	$	6,603	$	—	$	—	$	6,603

Business Combinations (Tables)

12 Months Ended

Jan. 31, 2021

Business Combinations [Abstract]

Schedule of Purchase Price Allocation


(in thousands)	Amount
Components of Purchase Price:
Cash	$	18,843
Fair value of contingent consideration	7,023
Other purchase price adjustments	(1,761)
Total purchase price	$	24,105

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	2,160
Other current assets, including cash acquired	7,921
Other assets	2,757
Current and other liabilities	(3,220)
Contract liabilities—current and long-term	(554)
Deferred income taxes	(1,342)
Net tangible assets	7,722
Identifiable intangible assets:
Customer relationships	1,452
Developed technology	1,360
Trademarks and trade names	367
Non-compete agreements	1,307
Total identifiable intangible assets	4,486
Goodwill	11,897
Total purchase price allocation	$	24,105

Intangible Assets and Goodwill (Tables)

12 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets

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


	January 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	74,272	$	(72,349)	$	1,923
Customer relationships	4,837		(2,759)		2,078
Trade names	1,151		(676)		475
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(484)		823
Total intangible assets	$	83,567	$	(78,268)	$	5,299


	January 31, 2020
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	75,765	$	(72,542)	$	3,223
Customer relationships	6,586		(3,882)		2,704
Trade names	1,231		(563)		668
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(34)		1,273
Total intangible assets	$	86,889	$	(79,021)	$	7,868

Schedule of Estimated Future Amortization Expense on Acquired Intangibles

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


(in thousands)
Years Ending January 31,	Amount
2022	$	1,818
2023	1,711
2024	783
2025	734
2026	176
Thereafter	77
Total	$	5,299

Schedule of Goodwill Activity

Goodwill activity for the years ended January 31, 2021 and 2020 was as follows:



(in thousands)	Amount
Year Ended January 31, 2020:
Goodwill, gross, at January 31, 2019	$	157,976
Accumulated impairment losses through January 31, 2019	(10,822)
Goodwill, net, at January 31, 2019	147,154
Business combination	11,597
Foreign currency translation	(608)
Goodwill, net, at January 31, 2020	$	158,143

Year Ended January 31, 2021:
Goodwill, gross, at January 31, 2020	$	168,965
Accumulated impairment losses through January 31, 2020	(10,822)
Goodwill, net, at January 31, 2020	158,143
Adjustments to prior period acquisition	300
Foreign currency translation	(260)
Goodwill, net, at January 31, 2021	$	158,183

Balance at January 31, 2021
Goodwill, gross, at January 31, 2021	$	169,005
Accumulated impairment losses through January 31, 2021	(10,822)
Goodwill, net, at January 31, 2021	$	158,183

Supplemental Combined Financial Statement Information (Tables)

12 Months Ended

Jan. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

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


	January 31,
(in thousands)	2021		2020
Raw materials	$	7,521	$	7,461
Work-in-process	5,160		4,674
Finished goods	1,861		2,758
Total inventories	$	14,542	$	14,893

Schedule of Property and Equipment, net

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


	January 31,
(in thousands)	2021		2020
Land and buildings	$	2,854	$	2,854
Leasehold improvements	13,530		13,592
Software	22,823		29,870
Equipment, furniture, and other	79,587		92,236
Total cost	118,794		138,552
Less: accumulated depreciation and amortization	(81,199)		(96,973)
Total property and equipment, net	$	37,595	$	41,579

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of January 31, 2021 and 2020:


	January 31,
(in thousands)	2021		2020
Prepaid expenses	$	22,037	$	23,906
Deferred cost of revenue	4,570		7,067
Income tax receivables	1,379		2,030
Other	2,065		3,483
Total prepaid expenses and other current assets	$	30,051	$	36,486

Schedule of Other Assets

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


	January 31,
(in thousands)	2021		2020
Long-term restricted cash and time deposits	$	15,061	$	25,606
Capitalized software development costs, net	11,315		11,679
Deferred commissions	4,459		3,394
Long-term deferred cost of revenue	1,959		527
Long-term security deposits	1,393		1,373
Long-term contract assets, net	1,219		937
Other	6,670		5,639
Total other assets	$	42,076	$	49,155

Schedule of Accrued Expenses and Other Current Liabilities

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


	January 31,
(in thousands)	2021		2020
Compensation and benefits	$	44,801	$	37,963
Distributor and agent commissions	12,422		10,097
Operating lease obligations - current portion	7,085		6,061
Income taxes	4,275		6,403
Contingent consideration - current portion	2,923		5,941
Taxes other than income taxes	2,559		717
Fair value of derivatives - current portion	678		132
Other	16,949		18,633
Total accrued expenses and other current liabilities	$	91,692	$	85,947

Schedule of Other Liabilities

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


	January 31,
(in thousands)	2021		2020
Unrecognized tax benefits, including interest and penalties	$	6,940	$	6,930
Obligations for severance compensation	2,054		2,389
Contingent consideration - long-term portion	—		5,568
Finance lease obligations - long-term portion	—		2,510
Other	204		4
Total other liabilities	$	9,198	$	17,401

Schedule of Other (Expense) Income, Net

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gains on equity investments, net	$	3,769	$	—	$	—
Foreign currency gains (losses), net	1,682		(728)		(2,094)
(Losses) gains on derivative financial instruments, net	(95)		395		726
Other expense, net	(70)		(71)		(46)
Total other income (expense), net	$	5,286	$	(404)	$	(1,414)

Schedule of Supplemental Information Regarding Consolidated Cash Flows

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Cash paid for interest	$	38	$	23	$	24
Cash (refunds) payments of income taxes, net	$	1,260	$	9,622	$	7,602
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	$	35,000	$	—	$	—
Accrued but unpaid purchases of property and equipment	$	2,636	$	3,399	$	2,352
Inventory transfers to property and equipment	$	894	$	825	$	1,699
Liabilities for contingent consideration in business combinations	$	—	$	7,023	$	6,975
Finance leases of property and equipment	$	—	$	3,117	$	—
Leasehold improvements funded by lease incentives	$	—	$	250	$	—

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jan. 31, 2021

Stockholders' Equity Note [Abstract]

Summary of Components of Accumulated Other Comprehensive Loss

The following table summarizes changes in the components of our accumulated other comprehensive loss for the years ended January 31, 2021, 2020, and 2019:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive income (loss) at February 1, 2018	$	2,733	$	(11,160)	$	(8,427)
Other comprehensive loss before reclassifications	(6,669)		(1,493)		(8,162)
Amounts reclassified out of accumulated other comprehensive income (loss)	(3,127)		—		(3,127)
Net other comprehensive loss	(3,542)		(1,493)		(5,035)
Accumulated other comprehensive loss at January 31, 2019	(809)		(12,653)		(13,462)
Other comprehensive income (loss) before reclassifications	1,755		(1,866)		(111)
Amounts reclassified out of accumulated other comprehensive loss	350		—		350
Net other comprehensive income (loss)	1,405		(1,866)		(461)
Accumulated other comprehensive income (loss) at January 31, 2020	596		(14,519)		(13,923)
Other comprehensive income (loss) before reclassifications	1,599		(1,545)		54
Amounts reclassified out of accumulated other comprehensive income (loss)	1,636		—		1,636
Net other comprehensive loss	(37)		(1,545)		(1,582)
Accumulated other comprehensive income (loss) at January 31, 2021	$	559	$	(16,064)	$	(15,505)

Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Loss


	Year Ended January 31,						Financial Statement Location
(in thousands)	2021		2020		2019
Unrealized gains (losses) on derivative financial instruments:
Foreign currency forward contracts	$	39	$	54	$	(28)	Cost of software revenue
	117		(42)		(203)		Cost of software service revenue
	92		61		(387)		Cost of professional service and other revenue
	960		208		(1,735)		Research and development, net
	674		108		(1,128)		Selling, general and administrative
	1,882		389		(3,481)		Total, before income taxes
	(246)		(39)		354		(Provision) benefit for income taxes
	$	1,636	$	350	$	(3,127)	Total, net of income taxes

Research and Development, Net (Tables)

12 Months Ended

Jan. 31, 2021

Research and Development [Abstract]

Schedule of Activity for Capitalized Software Development Costs

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Capitalized software development costs, net, beginning of year	$	11,679	$	6,076	$	5,117
Software development costs capitalized during the year	5,132		7,638		2,687
Amortization of capitalized software development costs	(3,072)		(2,023)		(1,730)
Write-offs of capitalized software development costs	(2,244)		—		—
Foreign currency translation and other	(180)		(12)		2
Capitalized software development costs, net, end of year	$	11,315	$	11,679	$	6,076

Income Taxes (Tables)

12 Months Ended

Jan. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income (Loss) Before Provision for Income Taxes

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
U.S.	$	(8,665)	$	(10,116)	$	(3,769)
Non-U.S.	33,389		40,053		23,710
Total income before provision for income taxes	$	24,724	$	29,937	$	19,941

Schedule of Provision for Income Taxes

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Current provision (benefit) for income taxes:
U.S. Federal	$	(1,434)	$	(884)	$	1,702
U.S. State	(44)		(164)		69
Non-U.S.	8,087		(1,988)		(3,154)
Total current provision (benefit) for income taxes	6,609		(3,036)		(1,383)
Deferred provision (benefit) for income taxes:
U.S. Federal	(910)		372		1,848
U.S. State	(200)		89		420
Non-U.S.	(1,085)		5,142		6,735
Total deferred provision (benefit) for income taxes	(2,195)		5,603		9,003
Total provision for income taxes	$	4,414	$	2,567	$	7,620

Schedule of Effective Tax Rate Reconciliation

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


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

Income tax provision at the U.S. federal statutory rate	$	5,192		$	6,287		$	4,189
U.S. State income tax (benefit) provision	(226)			(45)			436
Non-U.S. tax rate differential	(2,802)			6,734			2,477
Tax incentives	(139)			(1,292)			(305)
Valuation allowances	31			(898)			1,761
Non-deductible expenses/non-taxable income	(261)			1,677			(1,787)
Tax contingencies	1,184			(13,254)			(3,584)
U.S. tax effects of non-U.S. operations	1,001			3,268			4,273
Other, net	434			90			160
Total provision for income taxes	$	4,414		$	2,567		$	7,620
Effective income tax rate	17.9		%	8.6		%	38.2		%

Schedule of Deferred Tax Assets and Liabilities

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


	January 31,
(in thousands)	2021		2020
Deferred tax assets:
Loss carryforwards	$	7,321	$	8,416
Accrued compensation	1,884		1,158
Accrued expenses	390		—
Operating lease liabilities	362		457
Exchange rate differences	344		—
Other, net	235		—
Total deferred tax assets	10,536		10,031
Deferred tax liabilities:
Deferred cost of revenue	(3,831)		(2,733)
Goodwill and other intangible assets	(874)		(1,147)
Exchange differences	—		(719)
Accrued expenses	—		(448)
Depreciation of property and equipment	(550)		(1,017)
Operating lease right-of-use assets	(295)		(363)
Other, net	—		(620)
Total deferred tax liabilities	(5,550)		(7,047)
Valuation allowance	(5,732)		(5,701)
Net deferred tax liabilities	$	(746)	$	(2,717)

Recorded as:
Deferred tax assets	$	3,303	$	2,015
Deferred tax liabilities	(4,049)		(4,732)
Net deferred tax liabilities	$	(746)	$	(2,717)

Schedule of Valuation Allowance

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


	Year Ended January 31,
(in thousands)	2021		2020
Valuation allowance, beginning of year	$	(5,701)	$	(6,815)
Income tax (provision) benefit	(31)		898
Adoption of ASU No. 2014-09	—		—
Currency translation adjustment and other	—		216
Valuation allowance, end of year	$	(5,732)	$	(5,701)

Schedule of Unrecognized Tax Benefits

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
Gross unrecognized tax benefits, beginning of year	$	8,742	$	24,755	$	32,147
Increases related to tax positions taken during the current year	2,919		1,889		6,018
Increases as a result of business combinations	—		286		61
Increases related to tax positions taken during prior years	18		—		6,141
Increases (decreases) related to foreign currency exchange rates	272		1,073		(1,782)
Reductions for tax positions of prior years	(537)		(13,623)		(15,284)
Reductions for settlements with tax authorities	—		(4,133)		(1,111)
Lapses of statutes of limitations	(1,542)		(1,505)		(1,435)
Gross unrecognized tax benefits, end of year	$	9,872	$	8,742	$	24,755

Fair Value Measurements (Tables)

12 Months Ended

Jan. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of January 31, 2021 and 2020:


	January 31, 2021
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	998	$	—
Total assets	$	—	$	998	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	678	$	—
Contingent consideration—business combinations	—		—		2,923
Total liabilities	$	—	$	678	$	2,923


	January 31, 2020
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	812	$	—
Total assets	$	—	$	812	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	132	$	—
Contingent consideration—business combinations	—		—		11,509
Total liabilities	$	—	$	132	$	11,509

Schedule of Changes in the Estimated Fair Value using Significant Unobservable Inputs (Level 3)



	Year Ended January 31,
(in thousands)	2021		2020
Fair value measurement, beginning of year	$	11,509	$	13,311
Contingent consideration liabilities recorded for business combinations	—		7,023
Changes in fair values, recorded in operating expenses	(3,665)		(5,392)
Payments of contingent consideration	(4,921)		(3,433)
Fair value measurement at end of period	$	2,923	$	11,509

Derivative Financial Instruments (Tables)

12 Months Ended

Jan. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivatives

The fair values of our derivative financial instruments and their classifications in our combined balance sheets as of January 31, 2021 and 2020 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2021		2020
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	998	$	710
Not designated as hedging instruments	Prepaid expenses and other current assets	—		102
Total derivative assets		$	998	$	812

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	355	$	16
Not designated as hedging instruments	Accrued expenses and other current liabilities	323		116
Total derivative liabilities		$	678	$	132

Schedule of the Effects of Derivatives Designated as Cash Flow Hedges


	Year Ended January 31,
(in thousands)	2021		2020		2019
Net gains (losses) recognized in AOCL:
Foreign currency forward contracts	$	1,863	$	1,950	$	(7,410)

Net gains (losses) reclassified from AOCL to the combined statements of operations:
Foreign currency forward contracts	$	1,882	$	389	$	(3,481)

Schedule of Derivatives Not Designated as Hedging Instruments


	Classification in Combined Statements of Operations	Year Ended January 31,
(in thousands)		2021		2020		2019
Foreign currency forward contracts	Other income (expense), net	$	(95)	$	395	$	726

Stock-based Compensation and Other Benefit Plans (Tables)

12 Months Ended

Jan. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Recognized Stock-based Compensation Expense

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


	Year Ended January 31, 2021
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	110	$	624	$	734
Cost of revenue - software service	183		258		441
Cost of revenue - professional service and other	218		734		952
Research and development, net	1,109		4,512		5,621
Selling, general and administrative	1,697		18,097		19,794
Total stock-based compensation expense	3,317		24,225		27,542
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	416		3,931		4,347
Total stock-based compensation, net of taxes	$	2,901	$	20,294	$	23,195


	Year Ended January 31, 2020
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	90	$	552	$	642
Cost of revenue - software service	259		377		636
Cost of revenue - professional service and other	330		1,311		1,641
Research and development, net	1,272		5,026		6,298
Selling, general and administrative	1,508		20,308		21,816
Total stock-based compensation expense	3,459		27,574		31,033
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	454		3,946		4,400
Total stock-based compensation, net of taxes	$	3,005	$	23,628	$	26,633


	Year Ended January 31, 2019
(in thousands)	Cognyte employees		Other allocations		Total
Component of income before provision for income taxes:
Cost of revenue - software	$	25	$	308	$	333
Cost of revenue - software service	356		346		702
Cost of revenue - professional service and other	218		992		1,210
Research and development, net	858		3,997		4,855
Selling, general and administrative	1,841		16,607		18,448
Total stock-based compensation expense	3,298		22,250		25,548
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	503		3,199		3,702
Total stock-based compensation, net of taxes	$	2,795	$	19,051	$	21,846

Summary of Stock-based Compensation Expense by Type of Award

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


	Year Ended January 31, 2021
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	3,371	$	20,052	$	23,423
Stock bonus program and bonus share program	(111)		4,111		4,000
Total equity-settled awards	3,260		24,163		27,423
Phantom stock units (cash-settled awards)	57		62		119
Total stock-based compensation expense	$	3,317	$	24,225	$	27,542


	Year Ended January 31, 2020
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	3,014	$	20,399	$	23,413
Stock bonus program and bonus share program	445		7,170		7,615
Total equity-settled awards	3,459		27,569		31,028
Phantom stock units (cash-settled awards)	—		5		5
Total stock-based compensation expense	$	3,459	$	27,574	$	31,033


	Year Ended January 31, 2019
(in thousands)	Cognyte employees		Other allocations		Total
Restricted stock units and restricted stock awards	$	2,907	$	17,892	$	20,799
Stock bonus program and bonus share program	391		4,346		4,737
Total equity-settled awards	3,298		22,238		25,536
Phantom stock units (cash-settled awards)	—		12		12
Total stock-based compensation expense	$	3,298	$	22,250	$	25,548

Summary of Stock Awards Activity


	Year Ended January 31,
	2021			2020			2019
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value
Beginning balance	669	$	51.35	705	$	41.45	691	$	41.40
Granted	413	$	47.05	361	$	59.76	475	$	43.68
Released	(381)	$	47.90	(333)	$	40.70	(361)	$	44.44
Forfeited	(65)	$	52.68	(64)	$	46.69	(100)	$	40.92
Ending balance	636	$	50.50	669	$	51.35	705	$	41.45

Leases (Tables)

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Schedule of Components of Lease Expenses

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


	Year Ended January 31,
(in thousands)	2021		2020
Operating lease expenses	$	11,133	$	10,016
Finance lease expenses:
Amortization of right-of-use assets (1)	84		—
Interest on lease liabilities	102		22
Total finance lease expenses	186		22
Variable lease expenses	3,349		2,996
Short-term lease expenses	34		205
Sublease income	—		—
Total lease expenses	$	14,702	$	13,239

(1) The assets subject to finance leases had not been placed in service as of January 31, 2020, and therefore there is no amortization of ROU assets for the year end January 31, 2020.

Schedule of Supplemental Cash Flow Information Related to Leases

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,822		$	7,861
Operating cash flows from finance leases	$	102		$	22
Financing cash flows from finance leases	$	492		$	244
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,869		$	4,629
Finance leases	$	—		$	3,117
Weighted average remaining lease terms
Operating leases	6 years			4 years
Finance leases	—			5 years
Weighted average discount rates
Operating leases	4.8		%	5.2		%
Finance leases	—		%	4.6		%

Schedule of Maturities of Lease Liabilities

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


	January 31, 2021
(in thousands)	Operating Leases
Year Ending January 31,
2022	$	8,499
2023	8,244
2024	7,672
2025	6,573
2026	4,139
Thereafter	162
Total future minimum lease payments	35,289
Less imputed interest	(4,069)
Total	$	31,220

Reported as of January 31, 2021:
Accrued expenses and other current liabilities	$	7,085
Operating lease liabilities	24,135
Other liabilities	—
Total	$	31,220

Geographic and Significant Customer Information (Tables)

12 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Schedule of Revenue by Region

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


	Year Ended January 31,
(in thousands)	2021		2020		2019
EMEA:
Israel	$	274,113	$	277,605	$	263,540
Germany	86,834		77,540		73,065
Other	18,727		22,775		17,170
Total EMEA	379,674		377,920		353,775
Americas:
United States	44,746		53,354		56,839
Other	7,134		10,359		10,514
Total Americas	51,880		63,713		67,353
APAC	11,904		15,476		12,332
Total revenue	$	443,458	$	457,109	$	433,460

Schedule of Long-lived Assets by Region

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


	January 31,
(in thousands)	2021		2020
Israel	$	31,104	$	30,586
United States	902		4,293
Other countries	5,589		6,700
Total property and equipment, net	$	37,595	$	41,579

Schedule of Major Customers

The Company’s largest customers accounted for the following percentage of total revenue:


	Year Ended January 31,
	2021		2020		2019
Customer A	16.9	%	15.6	%	14.7	%
Customer B	14.1	%	12.9	%	12.6	%

Earnings Per Share (Tables)

12 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Income per Common Share

The following table summarizes the calculation of basic and diluted net income per ordinary share attributable to Cognyte for the years ended January 31, 2021, 2020, and 2019:


	Year Ended January 31,
(in thousands except share and per share data)	2021		2020		2019
Net income	$	20,310	$	27,370	$	12,321
Net income attributable to noncontrolling interest	6,107		7,179		3,593
Net income attributable to Cognyte Business of Verint Systems Inc.	$	14,203	$	20,191	$	8,728

Ordinary shares outstanding:
Basic shares	65,773		65,773		65,773
Effective of dilutive shares	—		—		—
Diluted shares	65,773		65,773		65,773

Net income per ordinary share attributable to Cognyte Business of Verint Systems Inc:
Basic and diluted	$	0.22	$	0.31	$	0.13

Organization, Operations and Basis of Presentation (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 31, 2021 USD ($)	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($)	Feb. 01, 2021 $ / shares
Joint venture, variable interest entity in which entity is primary beneficiary
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Equity interest in a joint venture	50.00%
Former Parent
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total allocated corporate expenses \| $	$ 97,265	$ 81,755	$ 72,646
Subsequent Event
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, par value (in dollars per share)				$ 0
Subsequent Event \| Verint Systems Inc
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, par value (in dollars per share)				$ 0.001
Spin-off transaction, conversion ratio				1

Summary of Significant Accounting Policies - Investments (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Accounting Policies [Abstract]
Minimum maturity period of short term investments in time deposits	90 days
Marketable debt securities	$ 0	$ 0

Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Concentration Risk [Line Items]
Accounts receivable, net	$ 175,001	$ 180,441
Two Governments Outside The United States
Concentration Risk [Line Items]
Accounts receivable, net	$ 72,600	$ 51,700

Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts, beginning of year	$ 4,085	$ 2,911	$ 1,763
Provisions charged to expense	1,840	1,355	1,937
Amounts written off	(1,922)	(152)	(744)
Other, including fluctuations in foreign exchange rates	121	(29)	(45)
Allowance for doubtful accounts, end of year	4,559	4,085	2,911
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts, beginning of year	435	0	0
Allowance for doubtful accounts, end of year	$ 500	$ 435	$ 0

Summary of Significant Accounting Policies - Property and Equipment, net (Details)	12 Months Ended
	Jan. 31, 2021
Equipment, furniture, and other \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Equipment, furniture, and other \| Maximum
Property, Plant and Equipment
Estimated useful lives	5 years
Software \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Software \| Maximum
Property, Plant and Equipment
Estimated useful lives	4 years
Buildings
Property, Plant and Equipment
Estimated useful lives	25 years

Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Jan. 31, 2021 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1
Number of reportable segments	1

Summary of Significant Accounting Policies - Goodwill and Other Acquired Intangible Assets (Details)	12 Months Ended
	Jan. 31, 2021 reportingUnit
Finite-Lived Intangible Assets [Line Items]
Number of reporting units	1
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of finite-lived intangible assets	10 years

Summary of Significant Accounting Policies - Software Development Costs and Internal-Use Software (Details)	12 Months Ended
	Jan. 31, 2021
Internal-Use Software
Software Development Costs
Estimated useful lives	4 years
Minimum \| Software Development Costs
Software Development Costs
Estimated useful lives	4 years
Maximum \| Software Development Costs
Software Development Costs
Estimated useful lives	6 years

Summary of Significant Accounting Policies - Functional Currencies and Foreign Currency Transaction Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Accounting Policies [Abstract]
Foreign currency gains (losses), net	$ 1,682	$ (728)	$ (2,094)

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201409Member
Allowance for doubtful accounts	$ 4,085	$ 2,911	$ 1,763	$ 4,559
Deferred income taxes	2,015			3,303
Net parent investment	458,467			273,006
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for doubtful accounts	$ 435	$ 0	$ 0	500
Deferred income taxes				100
Net parent investment				$ (400)

- Definition

Indicates amendment to accounting standards.

+ References

+ Details

Related Party Transactions with Verint - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 29, 2021	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Related Party Transaction [Line Items]
Interest expense		$ 185	$ 481	$ 499
Due to parent, current		38,772	7,025
Former Parent
Related Party Transaction [Line Items]
Total allocated corporate expenses		97,265	81,755	72,646
Related party payables, current		3,772	0
Dividends declared	$ 35,000
Interest expense		200	400	$ 500
Related party notes payable, current		0	7,025
Due to parent, current		$ 38,772	$ 7,025
Former Parent \| Related Party Fixed Rate Notes
Related Party Transaction [Line Items]
Debt instrument, interest rate		2.10%
Debt instrument, term		5 years
Former Parent \| Related Party Variable Rate Notes
Related Party Transaction [Line Items]
Debt instrument, term		4 years
Former Parent \| Related Party Variable Rate Notes \| London Interbank Offered Rate (LIBOR)
Related Party Transaction [Line Items]
Basis spread on variable rate		2.50%

Related Party Transactions with Verint - Schedule of Components of Costs of Services (Details) - Former Parent - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Related Party Transaction [Line Items]
Total allocated corporate expenses	$ 97,265	$ 81,755	$ 72,646
Research and development, net
Related Party Transaction [Line Items]
Total allocated corporate expenses	21,783	19,139	17,805
Selling, general and administrative
Related Party Transaction [Line Items]
Total allocated corporate expenses	69,210	54,452	48,774
Software \| Cost of revenue
Related Party Transaction [Line Items]
Total allocated corporate expenses	1,981	1,871	688
Software service \| Cost of revenue
Related Party Transaction [Line Items]
Total allocated corporate expenses	1,548	1,639	2,460
Professional service and other \| Cost of revenue
Related Party Transaction [Line Items]
Total allocated corporate expenses	$ 2,743	$ 4,654	$ 2,919

Related Party Transactions with Verint - Schedule of Due to Parent, Current (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Related Party Transaction [Line Items]
Total due to parent, current	$ 38,772	$ 7,025
Former Parent
Related Party Transaction [Line Items]
Dividends payable to parent, current	35,000	0
Related party payables, current	3,772	0
Related party notes payable, current	0	7,025
Total due to parent, current	$ 38,772	$ 7,025

Related Party Transactions with Verint - Schedule of Net Transfers To and From Verint (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Related Party Transaction [Line Items]
Total net transfers (to) from parent per combined statements of equity	$ (164,218)	$ (42,793)	$ 32,406
Total net transfers (to) from parent per combined statements of cash flows	(189,047)	(72,057)	6,538
Total Cognyte Business of Verint Systems Inc. Equity
Related Party Transaction [Line Items]
Total net transfers (to) from parent per combined statements of equity	(164,218)	(42,793)	32,406
Former Parent
Related Party Transaction [Line Items]
Cash pooling and general financing activities	(258,799)	(133,666)	(45,192)
Corporate allocations	97,265	81,755	72,646
Related party payables	(3,772)	0	0
Income taxes	1,088	9,118	4,952
Total net transfers (to) from parent per combined statements of equity	(164,218)	(42,793)	32,406
Stock-based compensation - equity-classified awards and issuances	(29,062)	(29,264)	(25,868)
Related party payables	3,772	0	0
Other, net	461	0	0
Total net transfers (to) from parent per combined statements of cash flows	$ (189,047)	$ (72,057)	$ 6,538

Revenue Recognition - Narrative (Details) - USD ($)	12 Months Ended
Revenue Recognition - Narrative (Details) - USD ($)	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Software maintenance, period	1 year
Capitalized contract cost, impairment loss	$ 0
Amount reclassified to accounts receivable from contract asset	19,000,000.0	$ 36,100,000
Contract assets recognized in current period	11,400,000	17,600,000
Accounts receivable, net	175,001,000	180,441,000
Current period revenue recognized from beginning balance of contract liabilities	129,600,000	106,800,000
Two Governments Outside The United States
Disaggregation of Revenue [Line Items]
Accounts receivable, net	72,600,000	51,700,000
Sales Commission
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	9,800,000	8,300,000
Capitalized contract cost, amortization	23,800,000	28,200,000	$ 25,000,000.0
Sales Commission \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	5,300,000	4,900,000
Sales Commission \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	4,500,000	3,400,000
Costs to Fulfill
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	6,500,000	7,600,000
Capitalized contract cost, amortization	13,500,000	11,800,000	$ 16,700,000
Costs to Fulfill \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	4,500,000	7,100,000
Costs to Fulfill \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 2,000,000.0	$ 500,000
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Warranty period	90 days
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years
Warranty period	3 years

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 443,458	$ 457,109	$ 433,460
Recurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	223,405	192,578	165,265
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 220,053	$ 264,531	$ 268,195

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

+ Details

Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 175,001	$ 180,441
Contract assets, net	20,317	28,873
Long-term contract assets, net (included in other assets)	1,219	937
Contract liabilities	127,012	143,695
Long-term contract liabilities	$ 22,037	$ 23,305

Revenue Recognition - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 551,738	$ 581,733
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation		$ 356,677
Revenue performance obligation, period		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 353,166	$ 225,056
Revenue performance obligation, period	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 198,572
Revenue performance obligation, period	1 year

Cash, Cash Equivalents, and Short-term Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Cash and cash equivalents:
Cost Basis	$ 78,570	$ 201,090	$ 240,192
Estimated Fair Value	78,570	201,090
Short-term investments:
Cost Basis	4,713	6,603
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	4,713	6,603
Proceeds from sales and maturities of available-for-sale securities	51,174	53,527	$ 28,243
Bank time deposits
Short-term investments:
Cost Basis	4,713	6,603
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	4,713	6,603
Cash and bank time deposits
Cash and cash equivalents:
Cost Basis	78,570	201,090
Estimated Fair Value	$ 78,570	$ 201,090

Business Combinations - Year Ended January 31, 2021 (Details)	12 Months Ended
	Jan. 31, 2021 acquistion
Business Combinations [Abstract]
Number of businesses acquired	0

Business Combinations - Year Ended January 31, 2020 (Details) $ in Thousands		12 Months Ended
	Dec. 18, 2019 USD ($) acquistion	Jan. 31, 2021 USD ($) acquistion	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($)
Business Acquisition
Number of businesses acquired \| acquistion		0
Payments to acquire businesses, net of cash acquired		$ 0	$ 18,693	$ 3,811
Goodwill		158,183	158,143	$ 147,154
WebintPro
Business Acquisition
Number of businesses acquired \| acquistion	2
Total purchase price	$ 24,105
Payments to acquire businesses	18,843
Cash acquired from acquisition	100
Payments to acquire businesses, net of cash acquired	18,700
Fair value of contingent consideration	7,023
Contingent consideration	7,300
Other purchase price adjustments	(1,761)
Goodwill	$ 11,897
Transaction and related costs		$ 400	$ 300
Weighted-average estimated useful life of all finite-lived identifiable intangible assets	4 years 4 months 24 days
WebintPro \| Customer relationships
Business Acquisition
Estimated useful lives of finite-lived intangible assets	5 years
WebintPro \| Developed technology
Business Acquisition
Estimated useful lives of finite-lived intangible assets	5 years
WebintPro \| Trademarks and trade names
Business Acquisition
Estimated useful lives of finite-lived intangible assets	3 years
WebintPro \| Non-competition agreements
Business Acquisition
Estimated useful lives of finite-lived intangible assets	3 years

Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 18, 2019	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Net tangible assets (liabilities):
Goodwill		$ 158,183	$ 158,143	$ 147,154
WebintPro
Components of Purchase Price:
Cash	$ 18,843
Fair value of contingent consideration	7,300
Other purchase price adjustments	(1,761)
Total purchase price	24,105
Net tangible assets (liabilities):
Accounts receivable	2,160
Other current assets, including cash acquired	7,921
Other assets	2,757
Current and other liabilities	(3,220)
Contract liabilities—current and long-term	(554)
Deferred income taxes	(1,342)
Net tangible assets	7,722
Identifiable intangible assets	4,486
Goodwill	11,897
Total purchase price allocation	24,105
Customer relationships \| WebintPro
Net tangible assets (liabilities):
Identifiable intangible assets	1,452
Developed technology \| WebintPro
Net tangible assets (liabilities):
Identifiable intangible assets	1,360
Trademarks and trade names \| WebintPro
Net tangible assets (liabilities):
Identifiable intangible assets	367
Non-competition agreements \| WebintPro
Net tangible assets (liabilities):
Identifiable intangible assets	$ 1,307

Business Combinations - Year Ended January 31, 2019 (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 08, 2018	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Business Acquisition
Goodwill		$ 158,183	$ 158,143	$ 147,154
Decrease in contingent consideration, liability		(3,665)	(5,392)	(4,201)
Payments of contingent consideration for business combinations		4,877	3,419	2,016
Acquisition Completed in 2019
Business Acquisition
Total purchase price	$ 13,100
Acquisition date fair value of previously held equity interest	$ 2,200
Noncontrolling equity investment percentage	19.00%
Payments to acquire businesses	$ 3,900
Fair value of contingent consideration	18,500
Business acquisition, contingent consideration, liability, fair value	7,000	2,900
Goodwill	$ 10,800
Weighted-average estimated useful life of all finite-lived identifiable intangible assets	4 years 1 month 6 days
Transaction and related costs			300	200
Decrease in contingent consideration, liability		(3,700)	(5,400)	(4,200)
Payments of contingent consideration for business combinations		$ 4,900	$ 3,400	$ 2,000
Acquisition Completed in 2019 \| Customer relationships
Business Acquisition
Estimated useful lives of finite-lived intangible assets	7 years
Acquisition Completed in 2019 \| Acquired technology
Business Acquisition
Estimated useful lives of finite-lived intangible assets	3 years

Intangible Assets and Goodwill - Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 83,567	$ 86,889
Accumulated Amortization	(78,268)	(79,021)
Net	5,299	7,868
Acquired technology
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	74,272	75,765
Accumulated Amortization	(72,349)	(72,542)
Net	1,923	3,223
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	4,837	6,586
Accumulated Amortization	(2,759)	(3,882)
Net	2,078	2,704
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	1,151	1,231
Accumulated Amortization	(676)	(563)
Net	475	668
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	2,000	2,000
Accumulated Amortization	(2,000)	(2,000)
Net	0	0
Non-competition agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	1,307	1,307
Accumulated Amortization	(484)	(34)
Net	$ 823	$ 1,273

Intangible Assets and Goodwill - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization of other acquired intangible assets	$ 2,200,000	$ 3,000,000.0	$ 8,100,000
Impairment of intangible assets, finite-lived		0	0
Impairments of goodwill	0	$ 0	$ 0
Acquired technology \| Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	300,000
Acquired technology \| Cost of revenue \| Software
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	200,000
Acquired technology \| Cost of revenue \| Professional service and other
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	$ 100,000

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense on Acquired Intangibles (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Intangible Assets - Future Amortization [Abstract]
2022	$ 1,818
2023	1,711
2024	783
2025	734
2026	176
Thereafter	77
Net	$ 5,299	$ 7,868

Intangible Assets and Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 168,965	$ 157,976
Accumulated impairment losses, beginning balance	(10,822)	(10,822)
Goodwill beginning balance	158,143	147,154
Business combinations, including prior year adjustments	300	11,597
Foreign currency translation	(260)	(608)
Goodwill, gross, ending balance	169,005	168,965
Accumulated impairment losses, ending balance	(10,822)	(10,822)
Goodwill ending balance	$ 158,183	$ 158,143

Supplemental Combined Financial Statement Information - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 7,521	$ 7,461
Work-in-process	5,160	4,674
Finished goods	1,861	2,758
Total inventories	$ 14,542	$ 14,893

Supplemental Combined Financial Statement Information - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Property, Plant and Equipment
Total cost	$ 118,794	$ 138,552
Less: accumulated depreciation and amortization	(81,199)	(96,973)
Total property and equipment, net	37,595	41,579
Depreciation expense on property and equipment	16,900	11,800	$ 10,600
Land and buildings
Property, Plant and Equipment
Total cost	2,854	2,854
Leasehold improvements
Property, Plant and Equipment
Total cost	13,530	13,592
Software
Property, Plant and Equipment
Total cost	22,823	29,870
Equipment, furniture, and other
Property, Plant and Equipment
Total cost	$ 79,587	$ 92,236

Supplemental Combined Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Prepaid expenses	$ 22,037	$ 23,906
Deferred cost of revenue	4,570	7,067
Income tax receivables	1,379	2,030
Other	2,065	3,483
Total prepaid expenses and other current assets	$ 30,051	$ 36,486

Supplemental Combined Financial Statement Information - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Condensed Financial Information Disclosure [Abstract]
Long-term restricted cash and time deposits	$ 15,061	$ 25,606
Capitalized software development costs, net	11,315	11,679	$ 6,076	$ 5,117
Deferred commissions	4,459	3,394
Long-term deferred cost of revenue	1,959	527
Long-term security deposits	1,393	1,373
Long-term contract assets, net	1,219	937
Other	6,670	5,639
Total other assets	$ 42,076	$ 49,155

Supplemental Combined Financial Statement Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Compensation and benefits	$ 44,801	$ 37,963
Distributor and agent commissions	12,422	10,097
Operating lease obligations - current portion	7,085	6,061
Income taxes	4,275	6,403
Contingent consideration - current portion	2,923	5,941
Taxes other than income taxes	2,559	717
Fair value of derivatives - current portion	678	132
Other	16,949	18,633
Total accrued expenses and other current liabilities	$ 91,692	$ 85,947
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent

Supplemental Combined Financial Statement Information - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Unrecognized tax benefits, including interest and penalties	$ 6,940	$ 6,930
Obligations for severance compensation	2,054	2,389
Contingent consideration - long-term portion	0	5,568
Finance lease obligations - long-term portion	0	2,510
Other	204	4
Total other liabilities	$ 9,198	$ 17,401

Supplemental Combined Financial Statement Information - Schedule of Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Gains on equity investments, net	$ 3,769	$ 0	$ 0
Foreign currency gains (losses), net	1,682	(728)	(2,094)
(Losses) gains on derivative financial instruments, net	(95)	395	726
Other expense, net	(70)	(71)	(46)
Total other income (expense), net	$ 5,286	$ (404)	$ (1,414)

Supplemental Combined Financial Statement Information - Schedule of Supplemental Information Regarding Consolidated Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Cash paid for interest	$ 38	$ 23	$ 24
Cash (refunds) payments of income taxes, net	1,260	9,622	7,602
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	35,000	0	0
Accrued but unpaid purchases of property and equipment	2,636	3,399	2,352
Inventory transfers to property and equipment	894	825	1,699
Liabilities for contingent consideration in business combinations	0	7,023	6,975
Finance leases of property and equipment	0	3,117	0
Leasehold improvements funded by lease incentives	$ 0	$ 250	$ 0

Accumulated Other Comprehensive Loss - Summary of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 455,171	$ 475,318	$ 430,944
Net other comprehensive income (loss)	(1,270)	(471)	(5,091)
Ending balance	270,371	455,171	475,318
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(13,923)	(13,462)	(8,427)
Other comprehensive income (loss) before reclassifications	54	(111)	(8,162)
Amounts reclassified out of accumulated other comprehensive income (loss)	1,636	350	(3,127)
Net other comprehensive income (loss)	(1,582)	(461)	(5,035)
Ending balance	(15,505)	(13,923)	(13,462)
Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	596	(809)	2,733
Other comprehensive income (loss) before reclassifications	1,599	1,755	(6,669)
Amounts reclassified out of accumulated other comprehensive income (loss)	1,636	350	(3,127)
Net other comprehensive income (loss)	(37)	1,405	(3,542)
Ending balance	559	596	(809)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(14,519)	(12,653)	(11,160)
Other comprehensive income (loss) before reclassifications	(1,545)	(1,866)	(1,493)
Amounts reclassified out of accumulated other comprehensive income (loss)	0	0	0
Net other comprehensive income (loss)	(1,545)	(1,866)	(1,493)
Ending balance	$ (16,064)	$ (14,519)	$ (12,653)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

Accumulated Other Comprehensive Loss - Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Class of Stock [Line Items]
Research and development, net	$ 128,705	$ 111,297	$ 100,006
Selling, general and administrative	162,590	153,901	137,342
Income before provision for income taxes	(24,724)	(29,937)	(19,941)
(Provision) benefit for income taxes	4,414	2,567	7,620
Net income	(20,310)	(27,370)	(12,321)
Software
Class of Stock [Line Items]
Cost of revenue	35,647	36,071	34,144
Software service
Class of Stock [Line Items]
Cost of revenue	44,893	45,012	51,237
Professional service and other
Class of Stock [Line Items]
Cost of revenue	51,186	80,517	83,975
Foreign currency forward contracts \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Research and development, net	960	208	(1,735)
Selling, general and administrative	674	108	(1,128)
Income before provision for income taxes	1,882	389	(3,481)
(Provision) benefit for income taxes	(246)	(39)	354
Net income	1,636	350	(3,127)
Foreign currency forward contracts \| Software \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	39	54	(28)
Foreign currency forward contracts \| Software service \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	117	(42)	(203)
Foreign currency forward contracts \| Professional service and other \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	$ 92	$ 61	$ (387)

Research and Development, Net - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Research and Development Expense [Abstract]
Gross research and development expenses	$ 129,200,000	$ 112,700,000	$ 101,700,000
Reimbursements from the IIA and other government grant programs	500,000	1,400,000	1,700,000
Capitalized computer software, impairments	$ 2,244,000	$ 0	$ 0

Research and Development, Net - Schedule of Activity for Capitalized Software Development Costs (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Movement in Capitalized Computer Software, Net [Roll Forward]
Capitalized software development costs, net, beginning of year	$ 11,679,000	$ 6,076,000	$ 5,117,000
Software development costs capitalized during the year	5,132,000	7,638,000	2,687,000
Amortization of capitalized software development costs	(3,072,000)	(2,023,000)	(1,730,000)
Write-offs of capitalized software development costs	(2,244,000)	0	0
Foreign currency translation and other	(180,000)	(12,000)	2,000
Capitalized software development costs, net, end of year	$ 11,315,000	$ 11,679,000	$ 6,076,000

Income Taxes - Schedule of Components of Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]
U.S.	$ (8,665)	$ (10,116)	$ (3,769)
Non-U.S.	33,389	40,053	23,710
Income before provision for income taxes	$ 24,724	$ 29,937	$ 19,941

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

+ Details

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Current provision (benefit) for income taxes:
U.S. Federal	$ (1,434)	$ (884)	$ 1,702
U.S. State	(44)	(164)	69
Non-U.S.	8,087	(1,988)	(3,154)
Total current provision (benefit) for income taxes	6,609	(3,036)	(1,383)
Deferred provision (benefit) for income taxes:
U.S. Federal	(910)	372	1,848
U.S. State	(200)	89	420
Non-U.S.	(1,085)	5,142	6,735
Total deferred provision (benefit) for income taxes	(2,195)	5,603	9,003
Total provision for income taxes	$ 4,414	$ 2,567	$ 7,620

Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Income tax provision at the U.S. federal statutory rate	$ 5,192	$ 6,287	$ 4,189
U.S. State income tax (benefit) provision	(226)	(45)	436
Non-U.S. tax rate differential	(2,802)	6,734	2,477
Tax incentives	(139)	(1,292)	(305)
Valuation allowances	31	(898)	1,761
Non-deductible expenses/non-taxable income	(261)	1,677	(1,787)
Tax contingencies	1,184	(13,254)	(3,584)
U.S. tax effects of non-U.S. operations	1,001	3,268	4,273
Other, net	434	90	160
Total provision for income taxes	$ 4,414	$ 2,567	$ 7,620
Effective income tax rate	17.90%	8.60%	38.20%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Deferred tax assets:
Loss carryforwards	$ 7,321	$ 8,416
Accrued compensation	1,884	1,158
Accrued expenses	390	0
Operating lease liabilities	362	457
Exchange rate differences	344	0
Other, net	235	0
Total deferred tax assets	10,536	10,031
Deferred tax liabilities:
Deferred cost of revenue	(3,831)	(2,733)
Goodwill and other intangible assets	(874)	(1,147)
Exchange differences	0	(719)
Accrued expenses	0	(448)
Depreciation of property and equipment	(550)	(1,017)
Operating lease right-of-use assets	(295)	(363)
Other, net	0	(620)
Total deferred tax liabilities	(5,550)	(7,047)
Valuation allowance	(5,732)	(5,701)
Net deferred tax liabilities	(746)	(2,717)
Recorded as:
Deferred income taxes	3,303	2,015
Deferred income taxes	(4,049)	(4,732)
Net deferred tax liabilities	$ (746)	$ (2,717)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2018
Operating Loss Carryforwards [Line Items]
Percentage decrease in effective tax rate for tax incentives	0.60%	4.30%	1.50%
Deferred tax assets, valuation allowance	$ 5,732	$ 5,701
Unrecognized tax benefits	9,872	8,742	$ 24,755	$ 32,147
Unrecognized tax benefits, income tax penalties and interest expense	(100)	1,800	$ 500
Unrecognized tax benefits, income tax penalties and interest accrued	1,000	$ 900
Decrease in unrecognized tax benefits is reasonably possible	1,300
Non-U.S.
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	78,300
Operating loss carryforwards, limitations on use, amount	$ 2,600

Income Taxes - Schedule of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Recorded valuation allowance
Valuation allowance, beginning of year	$ (5,701)	$ (6,815)
Income tax (provision) benefit	(31)
Income tax (provision) benefit		898
Currency translation adjustment and other	0	216
Valuation allowance, end of year	(5,732)	(5,701)
Cumulative Effect, Period of Adoption, Adjustment
Recorded valuation allowance
Valuation allowance, beginning of year	$ 0	0
Valuation allowance, end of year		$ 0

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Changes in the balance of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 8,742	$ 24,755	$ 32,147
Increases related to tax positions taken during the current year	2,919	1,889	6,018
Increases as a result of business combinations	0	286	61
Increases related to tax positions taken during prior years	18	0	6,141
Increases (decreases) related to foreign currency exchange rates	272	1,073
Increases (decreases) related to foreign currency exchange rates			(1,782)
Reductions for tax positions of prior years	(537)	(13,623)	(15,284)
Reductions for settlements with tax authorities	0	(4,133)	(1,111)
Lapses of statutes of limitations	(1,542)	(1,505)	(1,435)
Gross unrecognized tax benefits, end of year	$ 9,872	$ 8,742	$ 24,755

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Level 1
Assets:
Foreign currency forward contracts	$ 0	$ 0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration—business combinations	0	0
Total liabilities	0	0
Level 2
Assets:
Foreign currency forward contracts	998	812
Total assets	998	812
Liabilities:
Foreign currency forward contracts	678	132
Contingent consideration—business combinations	0	0
Total liabilities	678	132
Level 3
Assets:
Foreign currency forward contracts	0	0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration—business combinations	2,923	11,509
Total liabilities	$ 2,923	$ 11,509

Fair Value Measurements - Schedule of Changes in the Estimated Fair Value using Significant Unobservable Inputs (Details) - Liability for contingent consideration - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement, beginning of year	$ 11,509	$ 13,311
Contingent consideration liabilities recorded for business combinations	0	7,023
Changes in fair values, recorded in operating expenses	(3,665)	(5,392)
Payments of contingent consideration	(4,921)	(3,433)
Fair value measurement at end of period	$ 2,923	$ 11,509

Fair Value Measurements - Narrative (Details) $ in Millions	12 Months Ended
Fair Value Measurements - Narrative (Details) $ in Millions	Jan. 31, 2021 USD ($)	Jan. 31, 2020 USD ($)
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Noncontrolling equity investment in privately-held companies without readily determinable fair values	$ 4.7	$ 1.8
Noncontrolling equity investment in privately-held companies without readily determinable fair values, remeasured to fair value	4.0
Unrealized gain on noncontrolling equity investment	3.2
Realized gain on partial sale of equity investment	$ 0.6
Level 3 \| Measurement Input, Discount Rate \| Valuation Technique, Discounted Cash Flow
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Contingent consideration, liability, measurement input	0.004
Level 3 \| Measurement Input, Discount Rate \| Valuation Technique, Discounted Cash Flow \| Minimum
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Contingent consideration, liability, measurement input		0.021
Level 3 \| Measurement Input, Discount Rate \| Valuation Technique, Discounted Cash Flow \| Maximum
Liability for contingent consideration measured using significant unobservable inputs (Level 3)
Contingent consideration, liability, measurement input		0.045

Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2021	Jan. 31, 2020
Derivative [Line Items]
Gains recorded in accumulated other comprehensive loss expected to be reclassified into earnings within the next twelve months	$ 0.6
Foreign currency forward contracts
Derivative [Line Items]
Derivative, notional amount	$ 54.8	$ 89.0

Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Fair Values of Derivative Financial Instruments
Derivative assets	$ 998	$ 812
Derivative liabilities	678	132
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative assets	998	710
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative assets	0	102
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative liabilities	355	16
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative liabilities	$ 323	$ 116

Derivative Financial Instruments - Schedule of the Effects of Derivatives Designated as Cash Flow Hedges (Details) - Foreign currency forward contracts - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (losses) recognized in AOCL	$ 1,863	$ 1,950	$ (7,410)
Net gains (losses) reclassified from AOCL into the combined statements of operations	$ 1,882	$ 389	$ (3,481)

Derivative Financial Instruments - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (95)	$ 395	$ 726
Foreign currency forward contracts \| Not designated as hedging instruments \| Other income (expense), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (95)	$ 395	$ 726

Stock-based Compensation and Other Benefit Plans - Schedule of Recognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock-Based Compensation Plans
Total stock-based compensation expense	$ 27,542	$ 31,033	$ 25,548
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	4,347	4,400	3,702
Total stock-based compensation, net of taxes	23,195	26,633	21,846
Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	3,317	3,459	3,298
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	416	454	503
Total stock-based compensation, net of taxes	2,901	3,005	2,795
Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	24,225	27,574	22,250
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	3,931	3,946	3,199
Total stock-based compensation, net of taxes	20,294	23,628	19,051
Cost of revenue \| Software
Stock-Based Compensation Plans
Total stock-based compensation expense	734	642	333
Cost of revenue \| Software \| Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	110	90	25
Cost of revenue \| Software \| Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	624	552	308
Cost of revenue \| Software service
Stock-Based Compensation Plans
Total stock-based compensation expense	441	636	702
Cost of revenue \| Software service \| Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	183	259	356
Cost of revenue \| Software service \| Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	258	377	346
Cost of revenue \| Professional service and other
Stock-Based Compensation Plans
Total stock-based compensation expense	952	1,641	1,210
Cost of revenue \| Professional service and other \| Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	218	330	218
Cost of revenue \| Professional service and other \| Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	734	1,311	992
Research and development, net
Stock-Based Compensation Plans
Total stock-based compensation expense	5,621	6,298	4,855
Research and development, net \| Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	1,109	1,272	858
Research and development, net \| Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	4,512	5,026	3,997
Selling, general and administrative
Stock-Based Compensation Plans
Total stock-based compensation expense	19,794	21,816	18,448
Selling, general and administrative \| Cognyte employees
Stock-Based Compensation Plans
Total stock-based compensation expense	1,697	1,508	1,841
Selling, general and administrative \| Other allocations
Stock-Based Compensation Plans
Total stock-based compensation expense	$ 18,097	$ 20,308	$ 16,607

Stock-based Compensation and Other Benefit Plans - Summary of Stock-based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Stock-based compensation expense
Total stock-based compensation expense	$ 27,542	$ 31,033	$ 25,548
Equity-settled awards
Stock-based compensation expense
Total stock-based compensation expense	27,423	31,028	25,536
Restricted stock units and restricted stock awards
Stock-based compensation expense
Total stock-based compensation expense	23,423	23,413	20,799
Stock bonus program and bonus share program
Stock-based compensation expense
Total stock-based compensation expense	4,000	7,615	4,737
Phantom stock units (cash-settled awards)
Stock-based compensation expense
Total stock-based compensation expense	119	5	12
Cognyte employees
Stock-based compensation expense
Total stock-based compensation expense	3,317	3,459	3,298
Cognyte employees \| Equity-settled awards
Stock-based compensation expense
Total stock-based compensation expense	3,260	3,459	3,298
Cognyte employees \| Restricted stock units and restricted stock awards
Stock-based compensation expense
Total stock-based compensation expense	3,371	3,014	2,907
Cognyte employees \| Stock bonus program and bonus share program
Stock-based compensation expense
Total stock-based compensation expense	(111)	445	391
Cognyte employees \| Phantom stock units (cash-settled awards)
Stock-based compensation expense
Total stock-based compensation expense	57	0	0
Other allocations
Stock-based compensation expense
Total stock-based compensation expense	24,225	27,574	22,250
Other allocations \| Equity-settled awards
Stock-based compensation expense
Total stock-based compensation expense	24,163	27,569	22,238
Other allocations \| Restricted stock units and restricted stock awards
Stock-based compensation expense
Total stock-based compensation expense	20,052	20,399	17,892
Other allocations \| Stock bonus program and bonus share program
Stock-based compensation expense
Total stock-based compensation expense	4,111	7,170	4,346
Other allocations \| Phantom stock units (cash-settled awards)
Stock-based compensation expense
Total stock-based compensation expense	$ 62	$ 5	$ 12

Stock-based Compensation and Other Benefit Plans - Summary of Stock Awards Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Shares or Units
Beginning balance (in shares)	669	705	691
Granted (in shares)	413	361	475
Released (in shares)	(381)	(333)	(361)
Forfeited (in shares)	(65)	(64)	(100)
Ending balance (in shares)	636	669	705
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share)	$ 51.35	$ 41.45	$ 41.40
Granted (in dollars per share)	47.05	59.76	43.68
Released (in dollars per share)	47.90	40.70	44.44
Forfeited (in dollars per share)	52.68	46.69	40.92
Ending balance (in dollars per share)	$ 50.50	$ 51.35	$ 41.45

Stock-based Compensation and Other Benefit Plans - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Share-based Payment Arrangement [Abstract]
Employee contribution limit as a percentage of compensation	60.00%
Company's matching contribution as a percentage of employee's annual compensation	50.00%
Defined contribution plan employer matching contribution per employee maximum amount	$ 2,000
Matching contribution expense	200,000	$ 200,000	$ 200,000
Severance expenses	$ 7,500,000	$ 7,300,000	$ 6,400,000

Leases - Narrative (Details) - USD ($)	12 Months Ended
Leases - Narrative (Details) - USD ($)	Jan. 31, 2021	Jan. 31, 2019	Jan. 31, 2020
Lessee, Lease, Description [Line Items]
Finance lease, right-of-use asset			$ 3,500,000
Finance lease, right-of-use asset, accumulated amortization			$ 0
Accelerated operating lease expenses	$ 700,000
Operating leases, rent expense		$ 8,100,000
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	1 year
Lessee, finance lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	7 years
Lessee, finance lease, remaining lease term	7 years

Leases - Schedule of Components of Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Leases [Abstract]
Operating lease expenses	$ 11,133	$ 10,016
Finance lease expenses:
Amortization of right-of-use assets	84	0
Interest on lease liabilities	102	22
Total finance lease expenses	186	22
Variable lease expenses	3,349	2,996
Short-term lease expenses	34	205
Sublease income	0	0
Total lease expenses	$ 14,702	$ 13,239

Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,822	$ 7,861
Operating cash flows from finance leases	102	22
Financing cash flows from finance leases	492	244
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	5,869	4,629
Finance leases	$ 0	$ 3,117
Weighted average remaining lease terms
Operating leases	6 years	4 years
Finance leases	0 years	5 years
Weighted average discount rates
Operating leases	4.80%	5.20%
Finance leases	0.00%	4.60%

Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020
Operating Leases
2022	$ 8,499
2023	8,244
2024	7,672
2025	6,573
2026	4,139
Thereafter	162
Total future minimum lease payments	35,289
Less imputed interest	(4,069)
Total	$ 31,220
Operating Leases
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Operating lease obligations - current portion	$ 7,085	$ 6,061
Operating lease liabilities	24,135	$ 24,446
Other liabilities	0
Total	$ 31,220

Commitments and Contingencies (Details) $ in Millions		1 Months Ended	12 Months Ended	44 Months Ended
Commitments and Contingencies (Details) $ in Millions	Jun. 07, 2012 defendant	Mar. 31, 2009 plaintiff	Jun. 30, 2019 mediation	Oct. 30, 2012 USD ($)	Jan. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Unconditional purchase obligations					$ 62.4
Off-balance sheet bank guarantees and letters of credit					$ 70.7
Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of defendants \| defendant	3
Number of unsuccessful rounds of mediation \| mediation			2
Pending Litigation \| Unfavorable Regulatory Action \| Cognyte Technologies Israel Ltd
Loss Contingencies [Line Items]
Assets plaintiffs sought to compel to set aside to secure future judgment				$ 150.0
Case Numbers 4186/09 and 1335/09 \| Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff		1
Case Number 3444/09 \| Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff		1

Geographic and Significant Customer Information - Schedule of Revenue and Long-lived Assets by Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Revenues from External Customers and Long-Lived Assets
Revenue	$ 443,458	$ 457,109	$ 433,460
Total property and equipment, net	37,595	41,579
EMEA
Revenues from External Customers and Long-Lived Assets
Revenue	379,674	377,920	353,775
Israel
Revenues from External Customers and Long-Lived Assets
Revenue	274,113	277,605	263,540
Total property and equipment, net	31,104	30,586
Germany
Revenues from External Customers and Long-Lived Assets
Revenue	86,834	77,540	73,065
Other
Revenues from External Customers and Long-Lived Assets
Revenue	18,727	22,775	17,170
Americas
Revenues from External Customers and Long-Lived Assets
Revenue	51,880	63,713	67,353
United States
Revenues from External Customers and Long-Lived Assets
Revenue	44,746	53,354	56,839
Total property and equipment, net	902	4,293
Other
Revenues from External Customers and Long-Lived Assets
Revenue	7,134	10,359	10,514
APAC
Revenues from External Customers and Long-Lived Assets
Revenue	11,904	15,476	$ 12,332
Other countries
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	$ 5,589	$ 6,700

Geographic and Significant Customer Information - Schedule of Major Customers (Details) - Revenue Benchmark - Customer Concentration Risk	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Customer A
Revenue, Major Customer
Concentration risk, percentage	16.90%	15.60%	14.70%
Customer B
Revenue, Major Customer
Concentration risk, percentage	14.10%	12.90%	12.60%

Earnings Per Share - Narrative (Details) - Subsequent Event	Feb. 01, 2021 $ / shares shares
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares	$ 0
Spinoff
Subsequent Event [Line Items]
Common stock, outstanding (in shares) \| shares	65,773,335

Earnings Per Share - Schedule of Calculation of Basic and Diluted Net Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019
Earnings Per Share [Abstract]
Net income	$ 20,310	$ 27,370	$ 12,321
Net income attributable to noncontrolling interest	6,107	7,179	3,593
Net income attributable to Cognyte Business of Verint Systems Inc.	$ 14,203	$ 20,191	$ 8,728
Ordinary shares outstanding:
Basic (in shares)	65,773	65,773	65,773
Effective of dilutive shares (in shares)	0	0	0
Diluted shares (in shares)	65,773	65,773	65,773
Net income per ordinary share attributable to Cognyte Business of Verint Systems Inc:
Basic (in dollars per share)	$ 0.22	$ 0.31	$ 0.13
Diluted (in dollars per share)	$ 0.22	$ 0.31	$ 0.13

Subsequent Events (Details) - Subsequent Event	Apr. 13, 2021 USD ($)	Feb. 01, 2021 USD ($) facility $ / shares	Apr. 29, 2021 USD ($)
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0
Verint Systems Inc
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001
Spin-off transaction, conversion ratio		1
Revolving Credit Facility \| Line of Credit
Subsequent Event [Line Items]
Number of credit facilities \| facility		2
Maximum borrowing capacity (up to)		$ 100,000,000.0
Debt instrument, term		3 years
Commitment fee percentage		0.40%
Amounts outstanding			$ 0
Revolving Credit Facility \| Line of Credit \| London Interbank Offered Rate (LIBOR) \| Minimum
Subsequent Event [Line Items]
Basis spread on variable rate		1.55%
Revolving Credit Facility \| Line of Credit \| London Interbank Offered Rate (LIBOR) \| Maximum
Subsequent Event [Line Items]
Basis spread on variable rate		1.65%
Former Parent
Subsequent Event [Line Items]
Payments of dividends	$ 35,000,000.0

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 25,904,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	24,513,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	40,152,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	10,183,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	7,806,000
Restricted Cash and Cash Equivalents, Noncurrent	us-gaap_RestrictedCashAndCashEquivalentsNoncurrent	$ 2,378,000