Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible AssetsThe Company has two reporting units and has assigned assets and liabilities to each of the reporting units based on each unit's operating activities. No impairment of goodwill was identified for any periods presented. Goodwill activity by reportable segment for the year ended October 31, 2021 consisted of the following:

	Semiconductor & System Design		Software Integrity		Total
	(in thousands)
Balance at October 31, 2020	$	2,939,512	$	425,602	$	3,365,114
Additions	158,760		45,709		204,469
Effect of foreign currency translation	6,202		—		6,202
Balance at October 31, 2021	$	3,104,474	$	471,311	$	3,575,785

Goodwill activity by reportable segment for the year ended October 31, 2020 consisted of the following:

	Semiconductor & System Design		Software Integrity		Total
	(in thousands)
Balance at October 31, 2019	$	2,758,926	$	412,253	$	3,171,179
Additions	160,447		13,285		173,732
Adjustments	59		—		59
Effect of foreign currency translation	20,080		64		20,144
Balance at October 31, 2020	$	2,939,512	$	425,602	$	3,365,114

Intangible assets as of October 31, 2021 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	911,903	$	748,759	$	163,144
Customer relationships	404,571		308,355		96,216
Contract rights intangible	193,317		188,231		5,086
Trademarks and trade names	43,095		31,155		11,940
Capitalized software development costs	46,098		43,352		2,746
Total	$	1,598,984	$	1,319,852	$	279,132

 Intangible assets as of October 31, 2020 consisted of the following:

	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	827,232	$	703,009	$	124,223
Customer relationships	380,838		277,219		103,619
Contract rights intangible	192,812		186,763		6,049
Trademarks and trade names	43,096		28,716		14,380
In-process research and development (IPR&D)	1,214		—		1,214
Capitalized software development costs	44,122		39,285		4,837
Total	$	1,489,314	$	1,234,992	$	254,322

Amortization expense related to intangible assets consisted of the following:

	Year Ended October 31,
	2021		2020		2019
	(in thousands)
Core/developed technology	$	46,049	$	47,890	$	56,163
Customer relationships	31,478		35,075		37,533
Contract rights intangible	2,413		5,181		3,581
Trademarks and trade names	2,440		3,135		3,637
Capitalized software development costs(1)	4,067		3,723		2,868
Total	$	86,447	$	95,004	$	103,782

(1)Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of income.

The following table presents the estimated future amortization of intangible assets as of October 31, 2021:

Fiscal Year	(in thousands)
2022	$	81,778
2023	63,744
2024	52,895
2025	36,793
2026	24,368
2027 and thereafter	19,554
Total	$	279,132