Goodwill and Intangible Assets

6 Months Ended

Apr. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of April 30, 2018 and October 31, 2017 consisted of the following:



	(in thousands)
As of October 31, 2017	$	2,706,974
Additions	434,741
Adjustments	(76		)
Effect of foreign currency translation	5,485
As of April 30, 2018	$	3,147,124

Intangible assets as of April 30, 2018 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	767,764	$	563,097	$	204,667
Customer relationships	358,090		185,128		172,962
Contract rights intangible	184,180		174,861		9,319
Trademarks and trade names	42,929		19,599		23,330
In-process research and development (IPR&D)(1)	8,200		—		8,200
Capitalized software development costs	34,628		30,911		3,717
Total	$	1,395,791	$	973,596	$	422,195

Intangible assets as of October 31, 2017 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	647,975	$	526,796	$	121,179
Customer relationships	278,811		166,886		111,925
Contract rights intangible	174,615		172,178		2,437
Trademarks and trade names	25,329		17,401		7,928
In-process research and development (IPR&D)(1)	6,600		—		6,600
Capitalized software development costs	32,868		29,094		3,774
Total	$	1,166,198	$	912,355	$	253,843

Amortization expense related to intangible assets consisted of the following:



	Three Months Ended April 30,				Six Months Ended April 30,
	2018		2017		2018		2017
	(in thousands)
Core/developed technology	$	18,985	$	16,471	$	37,053	$	34,754
Customer relationships	9,656		6,844		18,219		13,736
Contract rights intangible	1,372		3,286		2,262		6,677
Trademarks and trade names	1,172		896		2,198		1,838
Capitalized software development costs	897		989		1,817		1,966
Total	$	32,082	$	28,486	$	61,549	$	58,971

The following table presents the estimated future amortization of the existing intangible assets as of April 30, 2018:



Fiscal Year	(in thousands)
Remainder of fiscal 2018	$	61,217
2019	100,646
2020	76,226
2021	54,693
2022	43,227
2023 and thereafter	77,986
IPR&D(1)	8,200
Total	$	422,195


(1)	IPR&D assets are reclassified to core/developed technology and 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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