Goodwill and Intangible Assets

3 Months Ended

Jan. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of January 31, 2017 and October 31, 2016 consisted of the following:



	(in thousands)
As of October 31, 2016	$	2,518,245
Additions	132,892
Adjustments(1)	—
Effect of foreign currency translation	1,120
As of January 31, 2017	$	2,652,257


(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 January 31, 2017 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	622,954	$	479,000	$	143,954
Customer relationships	276,625		146,731		129,894
Contract rights intangible	173,249		164,730		8,519
Trademarks and trade names	25,129		14,763		10,366
In-process research and development (IPR&D)(2)	4,600		—		4,600
Capitalized software development costs	30,675		26,086		4,589
Total	$	1,133,232	$	831,310	$	301,922


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

Intangible assets as of October 31, 2016 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	610,812	$	460,722	$	150,090
Customer relationships	235,997		139,932		96,065
Contract rights intangible	171,248		162,183		9,065
Trademarks and trade names	20,729		13,821		6,908
Capitalized software development costs	29,642		25,109		4,533
Total	$	1,068,428	$	801,767	$	266,661

Amortization expense related to intangible assets consisted of the following:



	Three Months Ended January 31,
	2017		2016
	(in thousands)
Core/developed technology	$	18,283	$	22,256
Customer relationships	6,892		6,193
Contract rights intangible	3,392		8,221
Trademarks and trade names	941		791
Capitalized software development costs(3)	977		915
Total	$	30,485	$	38,376

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

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



Fiscal Year	(in thousands)
Remainder of fiscal 2017	$	80,057
2018	81,585
2019	56,668
2020	39,470
2021	21,332
2022 and thereafter	18,210
IPR&D(4)	4,600
Total	$	301,922

(4) IPR&D assets are amortized over their useful lives upon completion or 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.

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