Intangible Assets, Net

12 Months Ended

Jan. 31, 2011

8. INTANGIBLE ASSETS, NET

Acquired intangible assets as of January 31, 2011 and 2010 are as follows:


			January 31,
	Useful Life		2011		2010
			(In thousands)
Gross carrying amount:
Acquired technology		2 to 7 years	$	164,796	$	152,629
Customer relationships		6 to 10 years		233,995		233,975
Trade names		3 to 10 years		12,952		12,951
Non-competition agreements		3 to 10 years		5,215		3,429
Distribution network		10 years		2,440		2,440

				419,398		405,424

Accumulated amortization:
Acquired technology				110,740		87,124
Customer relationships				95,753		72,658
Trade names				12,577		10,824
Non-competition agreements				2,760		2,203
Distribution network				1,108		864

				222,938		173,673

Total			$	196,460	$	231,751

Acquired intangible assets by operating segment as of January 31, 2011 and 2010 are as follows:


	January 31,
	2011		2010
	(In thousands)
Comverse	$	39,389	$	57,918
Verint		157,071		173,833

Total	$	196,460	$	231,751

Amortization of intangible assets was $49.1 million, $52.3 million and $60.3 million for the fiscal years ended January 31, 2011, 2010 and 2009, respectively. In connection with its testing of goodwill, the Company also tested long-lived assets, including finite-lived intangible assets. The Company did not record an impairment charge to finite-lived intangible assets for the fiscal year ended January 31, 2011. The Company recorded non-cash, pre-tax impairment charges to finite-lived intangible assets of the Netcentrex reporting unit assets of $3.4 million and $27.0 million for the fiscal years ended January 31, 2010 and 2009, representing the remainder of the Netcentrex reporting unit's intangible assets.

Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows:


Fiscal Years Ending January 31,
	(In thousands)
2012	$	48,825
2013		45,195
2014		28,653
2015		25,523
2016		22,372
2017 and thereafter		25,892

	$	196,460

- Definition

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

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