GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)

3 Months Ended

Jan. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents goodwill balances and the movements for each of our reportable segments during the three months ended January 31, 2024:

	Life Sciences and Applied Markets		Diagnostics and Genomics		Agilent CrossLab		Total
	(in millions)
Goodwill as of October 31, 2023	$	1,579	$	2,124	$	257	$	3,960
Foreign currency translation impact	4		—		3		7
Goodwill as of January 31, 2024	$	1,583	$	2,124	$	260	$	3,967

In the first quarter of fiscal year 2024, we reorganized our operating segments and moved our cell analysis business from our life sciences and applied markets business segment to our diagnostics and genomics business segment. As a result, we reassigned approximately $168 million of goodwill from our life sciences and applied markets business segment to our diagnostics and genomics business segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2023, have been recast to conform to this new presentation. As a result of the reorganization, there was no change to our reporting units. In addition, we performed a goodwill impairment test, and the results of the analysis indicated that the fair values for all three of our reporting units were in excess of their carrying values by substantial amounts; therefore, no impairment was indicated.

The component parts of other intangible assets as of October 31, 2023 and January 31, 2024 are shown in the table below:

 

	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
As of October 31, 2023
Purchased technology	$	1,467	$	1,093	$	374
Trademark/Tradename	196		163		33
Customer relationships	149		112		37
Third-party technology and licenses	34		13		21
Total amortizable intangible assets	1,846		1,381		465
In-Process R&D	10		—		10
Total	$	1,856	$	1,381	$	475
As of January 31, 2024
Purchased technology	$	1,474	$	1,114	$	360
Trademark/Tradename	196		166		30
Customer relationships	149		115		34
Third-party technology and licenses	34		15		19
Total amortizable intangible assets	1,853		1,410		443
In-Process R&D	—		—		—
Total	$	1,853	$	1,410	$	443

During the three months ended January 31, 2024, there were no additions to goodwill and other intangible assets. During the three months ended January 31, 2024, we reclassified $4 million of in-process research and development intangible assets to purchased technology upon the completion of a project. During the three months ended January 31, 2024, there was no change to other intangibles due to the impact of foreign currency.

In general, for U.S. federal tax purposes, goodwill from asset purchases is amortizable; however, any goodwill created as part of a stock acquisition is not deductible. 

Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible assets and goodwill is indicated. During the three months ended January 31, 2024, we recorded an impairment of in-process research and development of $6 million in research and development in the condensed consolidated statement of operations related to a project in our life sciences and applied markets segment. During the three months ended January 31, 2023 we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets.

Amortization expense of intangible assets was $26 million and $36 million for the three months ended January 31, 2024 and 2023, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2024 and for each of the next five fiscal years and thereafter is estimated below:

Estimated future amortization expense:
(in millions)
Remainder of 2024	$	75
2025	$	84
2026	$	54
2027	$	53
2028	$	46
2029	$	42
Thereafter	$	89