Goodwill and Intangible Assets

6 Months Ended

Apr. 30, 2011

Note 5. Goodwill and Intangible Assets

Goodwill as of April 30, 2011 consisted of the following:


	(in thousands)
Balance at October 31, 2010	$	1,265,843
Adjustments (1)		(9,358	)

Balance at April 30, 2011	$	1,256,485

(1)	Adjustments relate to the achievement of certain milestones for an acquisition that closed prior to fiscal 2010 and to changes in estimates for acquisitions that closed in the prior fiscal year for which the purchase price allocation is still preliminary.

Intangible assets as of April 30, 2011 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology (1)	$	207,726	$	82,498	$	125,228
Customer relationships (1)		78,400		24,781		53,619
Contract rights intangible (1)		32,400		15,022		17,378
Covenants not to compete (1)		2,200		1,983		217
Trademarks and trade names (1)		6,200		2,051		4,149
In-process research and development (IPRD)		16,625		—		16,625
Capitalized software development costs		10,454		7,060		3,394

Total	$	354,005	$	133,395	$	220,610

(1)	Decrease of acquired intangible assets primarily related to the retirement of fully amortized assets.

Intangible assets as of October 31, 2010 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	263,592	$	118,587	$	145,005
Customer relationships		113,020		55,040		57,980
Contract rights intangible		30,400		9,522		20,878
Covenants not to compete		2,200		1,884		316
Trademarks and trade names		6,200		1,541		4,659
In-process research and development (IPRD)		17,525		—		17,525
Capitalized software development costs		8,873		5,580		3,293

Total	$	441,810	$	192,154	$	249,656

Amortization expense related to intangible assets consisted of the following:


	Three Months Ended April 30,				Six Months Ended April 30,
	2011		2010		2011		2010
	(in thousands)
Core/developed technology	$	11,658	$	8,170	$	22,976	$	15,503
Customer relationships		3,368		2,351		6,561		4,518
Contract rights intangible		3,333		908		5,500		1,675
Covenant not to compete		50		238		100		475
Trademarks and trade names		255		147		510		293
Capitalized software development costs(1)		741		741		1,480		1,481

Total	$	19,405	$	12,555	$	37,127	$	23,945

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

The following table presents the estimated future amortization of intangible assets:


Fiscal Year	(in thousands)
Remainder of fiscal 2011	$	34,356
2012		58,776
2013		45,935
2014		27,860
2015		16,859
2016 and thereafter		20,199
In-process research and development (IPR&D)(1)		16,625

Total	$	220,610

(1)	IPRD projects are estimated to be completed within three years as of April 30, 2011. Amortization will begin upon project completion or the asset will be written off upon abandonment.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details