Goodwill And Intangible Assets (Tables)

9 Months Ended

Jul. 29, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Goodwill Activity By Reportable Segment

The following table summarizes goodwill activity by reportable segment during the nine months ended July 29, 2017 (in thousands):



	Storage Area Networking (“SAN”) Products		IP Networking Products			Global Services			Total
Balance at October 29, 2016
Goodwill	$	176,320	$	1,698,641		$	549,437		$	2,424,398
Accumulated impairment losses	—		(129,214		)	—			(129,214		)
	176,320		1,569,427			549,437			2,295,184
Purchase accounting adjustments ⁽¹⁾	—		70,182			(74,120		)	(3,938		)
Divestitures and assets held for sale ⁽²⁾	—		(35,920		)	—			(35,920		)
Balance at July 29, 2017
Goodwill	176,320		1,732,903			475,317			2,384,540
Accumulated impairment losses	—		(129,214		)	—			(129,214		)
	$	176,320	$	1,603,689		$	475,317		$	2,255,326


⁽¹⁾	For the measurement period adjustments recorded in connection with the acquisition of Ruckus, see Note 3, “Acquisitions, Divestitures, and Assets Held for Sale,” of the Notes to Condensed Consolidated Financial Statements.


⁽²⁾	The reduction in goodwill relates to the completed divestiture of the Company’s vRouter product line and the pending divestitures of the vADC and vEPC product lines in the third quarter of fiscal year 2017. See Note 3, “Acquisitions, Divestitures, and Assets Held for Sale,” of the Notes to Condensed Consolidated Financial Statements for additional information.

Schedule of Intangible Assets

The following tables present details of the Company’s intangible assets, excluding goodwill (in thousands, except for weighted-average remaining useful life):



	July 29, 2017
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (In years)
Finite-lived intangible assets:
Trade names	$	42,130	$	4,586	$	37,544	9.82
Core/developed technology	240,250		46,291		193,959		5.09
Patent portfolio license ⁽¹⁾	7,750		2,695		5,055		16.02
Customer relationships	110,000		18,558		91,442		5.83
Total finite-lived intangible assets ⁽²⁾	$	400,130	$	72,130	$	328,000	5.58
Indefinite-lived intangible assets, excluding goodwill:
IPR&D ⁽³⁾	25,000		—		25,000
Total indefinite-lived intangible assets, excluding goodwill	25,000		—		25,000
Total intangible assets, excluding goodwill	$	425,130	$	72,130	$	353,000

	October 29, 2016
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Useful Life (In years)
Finite-lived intangible assets:
Trade names	$	45,090	$	2,359	$	42,731	10.51
Core/developed technology	286,290		37,352		248,938		5.51
Patent portfolio license ⁽¹⁾	7,750		1,935		5,815		17.00
Customer relationships	143,110		15,813		127,297		6.32
Non-compete agreements	1,050		983		67		0.29
Patents with broader applications	1,040		110		930		13.38
Total finite-lived intangible assets	$	484,330	$	58,552	$	425,778	6.08
Indefinite-lived intangible assets, excluding goodwill:
IPR&D ⁽³⁾	24,000		—		24,000
Total indefinite-lived intangible assets, excluding goodwill	24,000		—		24,000
Total intangible assets, excluding goodwill	$	508,330	$	58,552	$	449,778

⁽¹⁾

The patent portfolio license was assigned an estimated useful life that reflects the Company’s consumption of the expected defensive benefits related to this license to certain patents. The method of amortization for the patent portfolio license reflects the Company’s estimate of the pattern in which these expected defensive benefits will be used by the Company and is primarily based on the mix of expiration patterns of the individual patents included in the license.


⁽²⁾	During the nine months ended July 29, 2017, $9.5 million of finite-lived intangible assets became fully amortized and, therefore, were removed from the balance sheet.


⁽³⁾	Acquired IPR&D is an intangible asset accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. If the research and development effort associated with the IPR&D is successfully completed, then the IPR&D intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed.

Schedule Of Amortization Of Intangible Assets Included On Consolidated Statements Of Operations

The amortization of finite-lived intangible assets is included in the following line items of the Company’s Condensed Consolidated Statements of Operations as follows (in thousands):



	Three Months Ended				Nine Months Ended
	July 29, 2017		July 30, 2016		July 29, 2017		July 30, 2016
Cost of revenues	$	10,612	$	8,922	$	36,352	$	15,269
General and administrative ⁽¹⁾	248		271		760		821
Amortization of intangible assets	5,822		5,498		20,998		7,302
Total	$	16,682	$	14,691	$	58,110	$	23,392


⁽¹⁾	The amortization is related to the $7.8 million perpetual, nonexclusive license to certain patents purchased in fiscal year 2015.

Schedule Of Estimated Future Amortization Of Intangible Assets

The following table presents the estimated future amortization of finite-lived intangible assets as of July 29, 2017 (in thousands):



Fiscal Year	Estimated Future Amortization
2017 (remaining three months)	$	14,761
2018	58,961
2019	58,760
2020	58,294
2021	58,225
Thereafter	78,999
Total	$	328,000