Goodwill and Intangible Assets

9 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The changes in the carrying amount of goodwill during the nine months ended July 31, 2022 were as follows:

	(in thousands)
Balance at October 31, 2021	$	3,575,785
Additions	308,532
Adjustments	1,285
Effect of foreign currency translation	(30,713)
Balance at July 31, 2022	$	3,854,889

During the nine months ended July 31, 2022, we finalized certain estimates impacting total purchase consideration for certain acquisitions and recorded the resulting measurement period adjustments which increased goodwill.

Intangible Assets

Intangible assets as of July 31, 2022 consisted of the following:

	Gross Carrying Amount		Accumulated Amortization		Net Amount
	(in thousands)
Core/developed technology	$	1,078,103	$	793,937	$	284,166
Customer relationships	423,739		328,459		95,280
Contract rights intangible	191,430		188,524		2,906
Trademarks and trade names	52,795		33,157		19,638
Capitalized software development costs	48,068		45,406		2,662
Total	$	1,794,135	$	1,389,483	$	404,652

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

	Gross Carrying Amount		Accumulated Amortization		Net Amount
	(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

Amortization expense related to intangible assets consisted of the following:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2022		2021		2022		2021
	(in thousands)
Core/developed technology	$	18,603	$	11,431	$	45,180	$	33,416
Customer relationships	6,322		7,960		20,819		23,443
Contract rights intangible	727		439		2,180		1,748
Trademarks and trade names	802		610		2,002		1,830
Capitalized software development costs(1)	619		1,010		2,052		3,120
Total	$	27,073	$	21,450	$	72,233	$	63,557

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

The following table presented the estimated future amortization of intangible assets as of July 31, 2022:

Fiscal year	(in thousands)
Remainder of fiscal 2022	$	26,960
2023	98,039
2024	86,748
2025	70,102
2026	57,677
2027 and thereafter	65,126
Total	$	404,652