Goodwill And Intangible Assets

6 Months Ended

Apr. 30, 2012

Goodwill And Intangible Assets [Abstract]

Note 6. Goodwill and Intangible Assets

Goodwill as of April 30, 2012 consisted of the following:


	(in thousands)
Balance at October 31, 2011	$	1,289,286
Additions(1)		340,428
Adjustments(2)		701

Balance at April 30, 2012	$	1,630,415

(1)	Addition relates to acquisitions in the current period.

(2)	Adjustment relates to achievement of certain milestones relating to contingent consideration for an acquisition that closed prior to fiscal 2010 of $1.8 million and effects of foreign currency fluctuations of $(1.1) million.

Intangible assets as of April 30, 2012 consisted of the following:


	Gross Assets(1)		Accumulated Amortization(1)		Net Assets
	(in thousands)
Core/developed technology	$	297,186	$	130,491	$	166,695
Customer relationships		132,713		38,992		93,721
Contract rights intangible		116,800		28,983		87,817
Covenants not to compete		2,530		2,246		284
Trademarks and trade names		7,300		3,116		4,184
In-process research and development (IPR&D)(2)		8,043		—		8,043
Capitalized software development costs		12,818		9,449		3,369

Total	$	577,390	$	213,277	$	364,113

(1)	During the three and six months ended April 30, 2012, the Company acquired $212.2 million and $214.6 million of additional intangible assets, respectively. Amounts acquired are subject to foreign currency fluctuations.

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

Intangible assets as of October 31, 2011 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	226,928	$	104,391	$	122,537
Customer relationships		80,238		31,250		48,988
Contract rights intangible		33,300		19,801		13,499
Covenants not to compete		2,530		2,105		425
Trademarks and trade names		6,400		2,561		3,839
In-process research and development (IPR&D)		3,425		—		3,425
Capitalized software development costs		11,245		7,927		3,318

Total	$	364,066	$	168,035	$	196,031

Amortization expense related to intangible assets consisted of the following:


	Three Months Ended April 30,				Six Months Ended April 30,
	2012		2011		2012		2011
	(in thousands)
Core/developed technology	$	16,520	$	11,658	$	27,896	$	22,976
Customer relationships		4,539		3,368		7,739		6,561
Contract rights intangible		7,175		3,333		9,182		5,500
Covenants not to compete		70		50		141		100
Trademarks and trade names		300		255		555		510
Capitalized software development costs(1)		746		741		1,488		1,480

Total	$	29,350	$	19,405	$	47,001	$	37,127

(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 2012	$	51,914
2013		94,578
2014		73,996
2015		58,750
2016		34,772
2017 and thereafter		42,060
IPR&D(1)		8,043

Total	$	364,113

(1)	IPR&D projects are estimated to be completed within two years of April 30, 2012. Amortization will begin upon project completion or the asset will be written off upon abandonment.

- Definition

The entire disclosure for 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 (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.

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