Goodwill and Intangible Assets

6 Months Ended

Apr. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Following the realignment of the Company’s operating segments during the first quarter of fiscal 2019, as described in Note 12. Segment Disclosure, the Company has two reporting units and has assigned assets and liabilities to each of the reporting units based on each unit's operating activities. Previously, the Company operated as a single reporting segment and reporting unit. Goodwill was reallocated to the reporting units using a relative fair value method and assessed for impairment. No impairment of goodwill was identified for any periods presented.

Intangible assets as of April 30, 2019 consisted of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	773,147	$	629,360	$	143,787
Customer relationships	358,522		223,374		135,148
Contract rights intangible	183,947		179,167		4,780
Trademarks and trade names	42,929		24,025		18,904
In-process research and development (IPR&D)(1)	1,200		—		1,200
Capitalized software development costs	37,309		34,201		3,108
Total	$	1,397,054	$	1,090,127	$	306,927


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

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



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	773,147	$	598,956	$	174,191
Customer relationships	358,524		204,382		154,142
Contract rights intangible	183,953		177,191		6,762
Trademarks and trade names	42,929		21,944		20,985
In-process research and development (IPR&D)(1)	1,200		—		1,200
Capitalized software development costs	35,818		32,694		3,124
Total	$	1,395,571	$	1,035,167	$	360,404

Amortization expense related to intangible assets consisted of the following:



	Three Months Ended April 30,				Six Months Ended April 30,
	2019		2018		2019		2018
	(in thousands)
Core/developed technology	$	14,045	$	18,985	$	30,404	$	37,053
Customer relationships	9,377		9,656		18,957		18,219
Contract rights intangible	866		1,372		1,982		2,262
Trademarks and trade names	909		1,172		2,081		2,198
Capitalized software development costs(2)	735		897		1,507		1,817
Total	$	25,932	$	32,082	$	54,931	$	61,549


(2)	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 as of April 30, 2019:



Fiscal Year	(in thousands)
Remainder of fiscal 2019	$	48,131
2020	78,806
2021	56,118
2022	44,006
2023	29,219
2024 and thereafter	49,447
IPR&D(3)	1,200
Total	$	306,927

(3)

IPR&D assets are amortized over their useful lives upon completion or are written off upon abandonment.