Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill:



	(in thousands)
Balance at October 31, 2012	$	1,976,987
Additions	—
Other adjustments(1)	(1,016		)
Balance at October 31, 2013	$	1,975,971
Additions	290,379
Other adjustments(1)	(10,642		)
Balance at October 31, 2014(2)	$	2,255,708


(1)	Adjustments primarily relate to changes in deferred tax estimates for acquisitions that were closed in the prior fiscal year for which the purchase price allocations were still preliminary, and/or effects of foreign currency fluctuations.


(2)	There is no accumulated impairment of goodwill for periods presented.

Intangible assets as of October 31, 2014 consist of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	490,242	$	298,705	$	191,537
Customer relationships	210,172		92,146		118,026
Contract rights intangible	146,364		109,067		37,297
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	18,779		7,765		11,014
In-process research and development (IPR&D)(1)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030


(1)	IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

Intangible assets as of October 31, 2013 consist of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	380,724	$	228,065	$	152,659
Customer relationships	177,151		69,745		107,406
Contract rights intangible	140,517		78,950		61,567
Covenants not to compete	2,530		2,480		50
Trademarks and trade names	10,891		5,459		5,432
In-process research and development (IPR&D)(1)	4,298		—		4,298
Capitalized software development costs	18,190		14,177		4,013
Total	$	734,301	$	398,876	$	335,425


(1)	IPR&D is reclassified to core/developed technology upon completion or is written off upon abandonment.

Amortization expense related to intangible assets consisted of the following:



	Year Ended October 31,
	2014		2013		2012
	(in thousands)
Core/developed technology	$	70,675	$	68,781	$	57,124
Customer relationships	22,470		21,394		17,141
Contract rights intangible	30,615		35,538		24,113
Covenants not to compete	50		126		248
Trademarks and trade names	2,309		1,663		1,233
Capitalized software development costs(1)	3,581		3,222		2,994
Total	$	129,700	$	130,724	$	102,853


(1)	Amortization of capitalized software development costs is included in cost of license revenue in the consolidated statements of operations.

The following table presents the estimated future amortization of intangible assets:



Fiscal Year	(in thousands)
2015	$	128,611
2016	91,500
2017	55,366
2018	40,150
2019	20,640
2020 and thereafter	25,677
IPR&D(1)	3,086
Total	$	365,030


(1)	IPR&D projects are estimated to be completed within one year as of October 31, 2014. Assets are amortized over their useful life upon completion of the project or are written off upon abandonment.

- Definition

The entire disclosure for 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 (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.

+ References+ Details