Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill as of July 31, 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	(2,973		)
As of July 31, 2018	$	3,138,666

Intangible assets as of July 31, 2018 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	772,014	$	581,789	$	190,225
Customer relationships	358,022		194,758		163,264
Contract rights intangible	184,006		176,045		7,961
Trademarks and trade names	42,929		20,771		22,158
In-process research and development (IPR&D)(1)	7,100		—		7,100
Capitalized software development costs	35,582		31,805		3,777
Total	$	1,399,653	$	1,005,168	$	394,485

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 July 31,				Nine Months Ended July 31,
	2018		2017		2018		2017
	(in thousands)
Core/developed technology	$	18,692	$	15,575	$	55,745	$	50,330
Customer relationships	9,584		6,834		27,803		20,569
Contract rights intangible	1,357		3,215		3,619		9,893
Trademarks and trade names	1,172		896		3,371		2,734
Capitalized software development costs	894		1,002		2,710		2,968
Total	$	31,699	$	27,522	$	93,248	$	86,494

The following table presents the estimated future amortization of the existing intangible assets as of July 31, 2018:



Fiscal Year	(in thousands)
Remainder of fiscal 2018	$	29,972
2019	102,027
2020	77,490
2021	55,511
2022	43,938
2023 and thereafter	78,447
IPR&D(1)	7,100
Total	$	394,485


(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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