Goodwill and Intangible Assets

6 Months Ended

Apr. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

As a result of the change in reporting units effective in the first quarter of fiscal 2023, we estimated the fair value of

our new reporting units and reallocated goodwill to the reporting units using a relative fair value method. No impairment of goodwill was identified for any period presented.

The changes in the carrying amount of goodwill during the six months ended April 30, 2023 were as follows:

	(in thousands)
Balance at October 31, 2022	$	3,842,234
Additions	23,029
Adjustments	3,054
Effect of foreign currency translation	19,932
Balance at April 30, 2023	$	3,888,249

During the six months ended April 30, 2023, we finalized certain estimates impacting total preliminary purchase consideration for certain acquisitions and recorded the resulting measurement period adjustments which increased goodwill.

Intangible Assets

Intangible assets as of April 30, 2023 consisted of the following:

	Gross Carrying Amount		Accumulated Amortization		Net Amount
	(in thousands)
Core/developed technology	$	1,097,217	$	848,890	$	248,327
Customer relationships	431,303		345,857		85,446
Contract rights intangible	193,594		189,953		3,641
Trademarks and trade names	52,795		35,840		16,955
Capitalized software development costs	49,838		47,094		2,744
Total	$	1,824,747	$	1,467,634	$	357,113

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

	Gross Carrying Amount		Accumulated Amortization		Net Amount
	(in thousands)
Core/developed technology	$	1,083,703	$	813,226	$	270,477
Customer relationships	426,242		333,984		92,258
Contract rights intangible	190,666		188,262		2,404
Trademarks and trade names	52,795		34,054		18,741
Capitalized software development costs	48,591		46,025		2,566
Total	$	1,801,997	$	1,415,551	$	386,446

Amortization expense related to intangible assets consisted of the following:

	Three Months Ended   April 30,				Six Months Ended   April 30,
	2023		2022		2023		2022
	(in thousands)
Core/developed technology	$	17,481	$	13,728	$	35,750	$	26,576
Customer relationships	5,689		6,312		11,513		14,497
Contract rights intangible	391		727		762		1,454
Trademarks and trade names	893		600		1,786		1,200
Capitalized software development costs(1)	510		681		1,069		1,433
Total	$	24,964	$	22,048	$	50,880	$	45,160

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

The following table presented the estimated future amortization of intangible assets as of April 30, 2023:

Fiscal year	(in thousands)
Remainder of fiscal 2023	$	50,787
2024	92,016
2025	74,135
2026	61,060
2027	40,858
2028 and thereafter	38,257
Total	$	357,113