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Goodwill
9 Months Ended
Oct. 31, 2010
Goodwill  
Goodwill

6. GOODWILL

 

The changes in the carrying amount of goodwill in the Comverse, Verint and All Other segments for the nine months ended October 31, 2010 are as follows:

 

     Comverse     Verint      All Other  (1)      Total  
           (In thousands)         

For the Nine Months Ended October 31, 2010

          

Goodwill, gross at January 31, 2010

   $ 312,142      $ 790,151       $ 7,559       $ 1,109,852   

Accumulated impairment losses at January 31, 2010

     (156,455     —           —           (156,455
                                  

Goodwill, net, at January 31, 2010

     155,687        790,151         7,559         953,397   

Acquisition of Iontas Limited

     —          12,899         —           12,899   

Effect of changes in foreign currencies and other

     27        646         —           673   
                                  

Goodwill, net, at October 31, 2010

   $ 155,714      $ 803,696       $ 7,559       $ 966,969   
                                  

Balance at October 31, 2010

          

Goodwill, gross at October 31, 2010

   $ 312,169      $ 803,696       $ 7,559       $ 1,123,424   

Accumulated impairment losses at October 31, 2010

     (156,455     —           —           (156,455
                                  

Goodwill, net, at October 31, 2010

   $ 155,714      $ 803,696       $ 7,559       $ 966,969   
                                  

(1) The amount of goodwill in the "All Other" segment is attributable to Starhome.

The Company tests goodwill for impairment annually as of November 1 or more frequently if events or circumstances indicate the potential for an impairment exists. For the nine months ended October 31, 2010, the Company identified circumstances that required goodwill to be tested for impairment prior to the November 1, 2010 annual impairment testing date due to the Comverse reporting unit experiencing continued operating losses and cash outflows. As a result, the Company performed an interim impairment test of goodwill for its Comverse reporting unit as of July 31, 2010 and determined, similar to the result of the impairment tests performed as of November 1, 2010 and February 1, 2011, that the fair value of the Comverse reporting unit exceeded its carrying value and goodwill was not impaired as of that date.