GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The goodwill balances as of July 31, 2019 and October 31, 2018 and the activity for the nine months ended July 31, 2019 for each of our reportable operating segments were as follows. Prior period amounts have been reclassified to conform to our organizational change as described in Note 16, "Segment Information."



	Communications Solutions Group		Electronic Industrial Solutions Group		Ixia Solutions Group			Total
	(in millions)
Balance as of October 31, 2018:
Goodwill	$	497	$	267	$	1,116		$	1,880
Accumulated impairment losses	—		—		(709		)	(709		)
Goodwill as reported	497		267		407			1,171
Goodwill arising from acquisitions	30		—		—			30
Foreign currency translation impact	8		—		—			8
Balance as of July 31, 2019	$	535	$	267	$	407		$	1,209

Components of goodwill as of July 31, 2019:
Goodwill	$	535	$	267	$	1,116		$	1,918
Accumulated impairment losses	—		—		(709		)	(709		)
Goodwill as reported	$	535	$	267	$	407		$	1,209

The company has not identified any triggering events that indicate an impairment of goodwill in the nine months ended July 31, 2019.

Other intangible assets as of July 31, 2019 and October 31, 2018 consisted of the following:



	Other Intangible Assets as of July 31, 2019						Other Intangible Assets as of October 31, 2018
	Gross Carrying Amount		Accumulated Amortization and Impairments		Net Book Value		Gross Carrying Amount		Accumulated Amortization and Impairments		Net Book Value
	(in millions)
Developed technology	$	877	$	536	$	341	$	835	$	415	$	420
Backlog	13		13		—		13		13		—
Trademark/Tradename	34		19		15		33		14		19
Customer relationships	316		129		187		304		100		204
Non-compete agreements	1		—		1		1		—		1
Total amortizable intangible assets	1,241		697		544		1,186		542		644
In-Process R&D	2		—		2		1		—		1
Total	$	1,243	$	697	$	546	$	1,187	$	542	$	645

During the third quarter of fiscal 2019, we acquired Prisma Telecom Testing ("Prisma") for $90 million, net of $56 million cash acquired, and recognized additions to goodwill and other intangible assets of $30 million and $56 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. Prisma is a global provider of radio access network test solutions that is expected to expand Keysight’s comprehensive end-to-end 5G test portfolio for the commercial communications ecosystem. The identified intangible assets primarily consisted of developed technology of $42 million, with an estimated useful life of 4 years.

During the nine months ended July 31, 2019, there was no foreign exchange translation impact to other intangible assets. Amortization of other intangible assets was $53 million and $155 million for the three and nine months ended July 31, 2019, respectively. Amortization of other intangible assets was $51 million and $153 million for the three and nine months ended July 31, 2018, respectively.

Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows:



	Amortization expense
	(in millions)
2019 (remainder)	$	54
2020	211
2021	143
2022	67
2023	49
Thereafter	20