REVENUE RECOGNITION REVENUE RECOGNITION (Tables)
 3 Months Ended
Apr. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Disaggregation of Revenue
The following table provides information about disaggregated revenue for our Customer Engagement and Cyber Intelligence segments by product revenue and service and support revenue, as well as by the recurring or nonrecurring nature of revenue for each business segment. Recurring revenue is the portion of our revenue that is highly likely to continue in the future, and primarily consists of initial and renewal PCS, SaaS, application managed services, sales-and-usage based royalties, and subscription licenses recognized over time. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. Nonrecurring revenue primarily consists of our perpetual and term-based licenses, which are recognized at a point in time, long-term customization projects that are recognized over time as control transfers to the customer using a percentage of completion (“POC”) method, consulting, implementation and installation services, training, and hardware.
 
 
Three Months Ended
April 30, 2018
(in thousands)
 
Customer Engagement
 
Cyber Intelligence
 
Total
Revenue:
 
 
 
 
 
 
Product
 
$
48,364

 
$
57,500

 
$
105,864

Service and support
 
138,092

 
45,251

 
183,343

Total revenue
 
$
186,456

 
$
102,751

 
$
289,207

 
 
 
 
 
 
 
Revenue by recurrence:
 
 
 
 
 
 
Recurring revenue
 
$
105,666

 
$
36,150

 
$
141,816

Nonrecurring revenue
 
80,790

 
66,601

 
147,391

Total revenue
 
$
186,456

 
$
102,751

 
$
289,207
Contracts with Customers - Assets and Liabilities
The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:
(in thousands)
 
April 30, 2018
Accounts receivable, net
 
$
303,108

Contract assets
 
87,963

Long-term contract assets (included in other assets)
 
753

Contract liabilities
 
332,139

Long-term contract liabilities
 
28,354
Schedule of Impact of ASU No. 2014-09 on Current Period Balance Sheet and Operating Results
As a result of the adoption of ASU No. 2016-18, we adjusted the previously reported condensed consolidated statement of cash flows for the three months ended April 30, 2017 as follows:

 
 
Three Months Ended
April 30, 2017
(in thousands)
 
As previously reported
 
Adjustments
 
As Adjusted
Net cash provided by operating activities
 
$
59,761

 
$
—

 
$
59,761

Net cash used in investing activities
 
(22,118
)
 
143

 
(21,975
)
Net cash used in financing activities
 
(3,583
)
 
—

 
(3,583
)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents
 
(1,332
)
 
(2
)
 
(1,334
)
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents
 
32,728

 
141

 
32,869

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period
 
307,363

 
61,966

 
369,329

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period
 
$
340,091

 
$
62,107

 
$
402,198

The impact of adoption of ASU No. 2014-09 on our condensed consolidated balance sheet as of April 30, 2018 and on our condensed consolidated statement of operations for the three months ended April 30, 2018 was as follows:

 
 
As of April 30, 2018
(in thousands)
 
As Reported
 
Balances without Adoption of ASU No. 2014-09
 
Effect of Change Higher (Lower)
Condensed Consolidated Balance Sheet
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Accounts receivable, net
 
$
303,108

 
$
298,605

 
$
4,503

Contract assets
 
87,963

 
—

 
87,963

Deferred cost of revenue
 
8,501

 
9,238

 
(737
)
Prepaid expenses and other current assets
 
77,058

 
79,059

 
(2,001
)
Long-term deferred cost of revenue
 
4,478

 
2,137

 
2,341

Other assets
 
93,486

 
77,056

 
16,430

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
193,828

 
234,568

 
(40,740
)
Contract liabilities
 
332,139

 
244,702

 
87,437

Long-term contract liabilities
 
28,354

 
24,244

 
4,110

Other liabilities
 
135,799

 
134,844

 
955

 
 
 
 
 
 
 
Stockholders' Equity:
 
 
 
 
 
 
Total stockholders' equity
 
1,163,271

 
1,106,534

 
56,737



While the table below indicates that calculated revenue for the three months ended April 30, 2018 without the adoption of ASU No. 2014-09 would have been lower than the revenue we are reporting under the new accounting guidance, this lower calculated revenue results not only from the impact of the new accounting guidance, but also from changes we made to our business practices in anticipation of the new accounting guidance. These business practice changes adversely impact the calculation of revenue under the prior accounting guidance and include, among other things, the way we manage our professional services projects, offer and deploy our solutions, structure certain customer contracts, and make pricing decisions. While the many variables, required assumptions, and other complexities associated with these business practice changes make it impractical to precisely quantify the impact of these changes, we believe that calculated revenue under the prior accounting guidance, but absent these business practice changes, would have been closer to the revenue we are reporting under the new accounting guidance.

 
 
Three Months Ended
April 30, 2018
(in thousands)
 
As Reported
 
Balances without Adoption of ASU No. 2014-09
 
Effect of Change Higher (Lower)
Condensed Consolidated Statement of Operations
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
Product
 
$
105,864

 
$
91,367

 
$
14,497

Service and support
 
183,343

 
176,501

 
6,842

 
 
 
 
 
 
 
Cost of revenue:
 
 
 
 
 
 
Product
 
34,809

 
32,348

 
2,461

Service and support
 
71,857

 
71,566

 
291

 
 
 
 
 
 
 
Expenses and Other:
 
 
 
 
 
 
Selling, general and administrative
 
107,497

 
109,955

 
(2,458
)
Provision (benefit) for income taxes
 
274

 
(1,826
)
 
2,100

Net loss
 
(1,225
)
 
(19,915
)
 
18,690
Accounting Standards Update 2014-09  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Schedule of Impact of ASU No. 2014-09 on Current Period Balance Sheet and Operating Results
As a result of applying the modified retrospective method to adopt the new standard, the following adjustments were made to accounts on the consolidated balance sheet as of February 1, 2018:
(in thousands)
 
Balance at January 31, 2018
 
Adjustments from Adopting ASU No. 2014-09
 
Balance at February 1, 2018
Assets:
 
 
 
 
 
 
Accounts receivable, net
 
$
296,324

 
$
53,682

 
$
350,006

Contract assets
 
—

 
69,217

 
69,217

Deferred cost of revenue
 
6,096

 
2,056

 
8,152

Prepaid expenses and other current assets
 
82,090

 
(829
)
 
81,261

Long-term deferred cost of revenue
 
2,804

 
2,193

 
4,997

Deferred income taxes
 
30,878

 
(2,248
)
 
28,630

Other assets
 
52,037

 
14,912

 
66,949

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Accrued expenses and other current liabilities
 
220,265

 
(46,062
)
 
174,203

Contract liabilities
 
196,107

 
139,517

 
335,624

Long-term contract liabilities
 
24,519

 
6,518

 
31,037

Deferred income taxes
 
35,305

 
963

 
36,268

 
 
 
 
 
 
 
Stockholders' Equity:
 
 
 
 
 
 
Total stockholders' equity
 
1,132,336

 
38,047

 
1,170,383