Basis of Presentation (Policy)

9 Months Ended

Oct. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying condensed consolidated financial statements include CTI and its controlled subsidiary Verint Systems (in which CTI owned 40.6% of the common stock and held 51.5% of the voting power as of October 31, 2012). Comverse was a wholly-owned subsidiary prior to the Share Distribution on October 31, 2012 and Starhome was a majority-owned subsidiary prior to its sale on October 19, 2012 and their results were included in the consolidated balance sheets and the consolidated statements of operations, comprehensive loss and cash flows through such dates. For controlled subsidiaries that are not wholly-owned, the noncontrolling interest is included as a separate component of “Net income (loss)” in the condensed consolidated statements of operations and “Total equity” in the condensed consolidated balance sheets. Verint Systems holds a 50% equity interest in a consolidated variable interest entity in which it is the primary beneficiary. The results of operations of this variable interest entity for the three and nine months ended October 31, 2012 and 2011 were not significant to the condensed consolidated statements of operations.

All intercompany balances and transactions have been eliminated.

The Company includes the results of operations of acquired businesses from the dates of acquisition.

Segment Reporting and Changes in Reportable Segments

Segment Reporting and Changes in Reportable Segments

The Company has one reportable segment, Verint. The results of CTI's holding company operations, are included in the column captioned “All Other” as part of the Company’s business segment presentation. As a result of the Share Distribution, the Company no longer presents Comverse BSS and Comverse VAS as reportable segments and Comverse's operations previously included in “All Other” have been removed therefrom as Comverse's results of operations are included in discontinued operations for the three and nine months ended October 31, 2012 and 2011. In addition, on August 1, 2012, CTI entered into the Starhome Share Purchase Agreement with unaffiliated purchasers and accordingly, Starhome's results of operations, which previously were included in “All Other,” have been removed therefrom and are included in discontinued operations for the three and nine months ended October 31, 2012 and 2011.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements and the accompanying notes in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses.

The most significant estimates include:

• Estimates relating to the recognition of revenue, including the determination of vendor specific objective evidence (“VSOE”) of fair value and the determination of best estimate of selling price for multiple element arrangements;

• Inventory write-off;

• Allowance for doubtful accounts;

• Fair value of stock-based compensation;

• Valuation of assets acquired and liabilities assumed in business combinations, including contingent consideration;

• Fair value of reporting units for the purpose of goodwill impairment test;

• Valuation of other intangible assets;

• Valuation of investments and financial instruments;

• Realization of deferred tax assets; and

• The identification and measurement of uncertain tax positions.

The Company’s actual results may differ from its estimates.