Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of July 31, 2015 and October 31, 2014 consisted of the following:



	(in thousands)
As of October 31, 2014	$	2,255,708
Additions	92,186
Adjustments(1)	684
Effect of foreign currency translation	(12,762		)
As of July 31, 2015	$	2,335,816


(1)	Adjustments relate to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation was finalized during the reporting period.

Intangible assets as of July 31, 2015 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	540,740	$	353,469	$	187,271
Customer relationships	211,611		108,957		102,654
Contract rights intangible	147,127		131,895		15,232
Covenants not to compete	2,530		2,530		—
Trademarks and trade names	19,079		9,872		9,207
In-process research and development (IPR&D)(2)	—		—		—
Capitalized software development costs	24,627		20,492		4,135
Total	$	945,714	$	627,215	$	318,499

Intangible assets as of October 31, 2014 consisted 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)(2)	3,086		—		3,086
Capitalized software development costs	21,829		17,759		4,070
Total	$	893,002	$	527,972	$	365,030


(2)	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:



	Three Months Ended July 31,				Nine Months Ended July 31,
	2015		2014		2015		2014
	(in thousands)
Core/developed technology	$	18,822	$	18,354	$	54,639	$	51,966
Customer relationships	5,443		5,816		16,906		16,655
Contract rights intangible	7,917		7,913		23,595		22,719
Covenants not to compete	—		17		—		50
Trademarks and trade names	709		709		2,107		1,600
Capitalized software development costs(3)	916		906		2,732		2,655
Total	$	33,807	$	33,715	$	99,979	$	95,645


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

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



Fiscal Year	(in thousands)
Remainder of fiscal 2015	$	34,126
2016	105,173
2017	68,229
2018	50,718
2019	27,945
2020 and thereafter	32,308
Total	$	318,499

- 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