INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jul. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

During the three months ended July 31, 2021, we completed an acquisition of certain assets from a leader in contact center hiring automation that qualified as a business combination. This transaction resulted in increases to goodwill, customer relationships, and acquired technology intangible assets, but was not material to our condensed consolidated financial statements, and as a result, additional business combination disclosures for this acquisition have been omitted.

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


	July 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	467,597	$	(371,197)	$	96,400
Acquired technology	222,373		(197,325)		25,048
Trade names	7,034		(4,948)		2,086
Distribution network	2,440		(2,440)		—
Total intangible assets	$	699,444	$	(575,910)	$	123,534


	January 31, 2021
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	464,586	$	(356,064)	$	108,522
Acquired technology	222,040		(189,687)		32,353
Trade names	9,424		(6,555)		2,869
Distribution network	2,440		(2,440)		—
Total intangible assets	$	698,490	$	(554,746)	$	143,744

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

Total amortization expense recorded for acquisition-related intangible assets was $11.8 million and $11.9 million for the three months ended July 31, 2021 and 2020, respectively, and $23.5 million and $24.0 million for the six months ended July 31, 2021 and 2020, 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 (remainder of year)	$	21,918
2023	37,665
2024	28,572
2025	11,741
2026	10,409
2027 and thereafter	13,229
Total	$	123,534

Goodwill activity for the six months ended July 31, 2021 was as follows:


(in thousands)	Amount
Six Months Ended July 31, 2021:
Goodwill, gross, at January 31, 2021	$	1,383,450
Accumulated impairment losses through January 31, 2021	(56,043)
Goodwill, net, at January 31, 2021	1,327,407
Business combination	4,432
Foreign currency translation and other	3,977
Goodwill, net, at July 31, 2021	$	1,335,816

Balance at July 31, 2021
Goodwill, gross, at July 31, 2021	$	1,391,859
Accumulated impairment losses through July 31, 2021	(56,043)
Goodwill, net, at July 31, 2021	$	1,335,816

We evaluated whether there has been a change in circumstances as of July 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 impact of COVID-19 on our forecasts is uncertain and increases the subjectivity that is involved in evaluating goodwill for potential impairment. Our reporting unit fair value may decline as a result of delayed or reduced demand for our products and services, driving lower revenue and operating income across our business. However, given the significant difference between the 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, management does not believe that these events were severe enough to result in an impairment trigger. We will continue to monitor the environment to determine whether impacts to our reporting unit represent events or changes in circumstances that may trigger a need to assess for impairment.