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 and intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

Goodwill

As of April 30, 2023, our reporting units include Semiconductor Products Group and Imaging and Process Control Group, Applied Global Services, Display and Adjacent Markets and other reporting units recorded under Corporate and Other. The Semiconductor Products Group and Imaging and Process Control Group combine to form the Semiconductor Systems reporting segment.

Details of goodwill as of April 30, 2023 and October 30, 2022 were as follows:

 

	April 30, 2023		October 30, 2022
	(In millions)
Goodwill by reportable segment
Semiconductor Systems	$	2,439	$	2,428
Applied Global Services	1,032		1,032
Display and Adjacent Markets	199		199
Corporate and Other	41		41
	$	3,711	$	3,700

From time to time, we acquire companies related to our existing or new markets. During the first six months of fiscal 2023, goodwill increased primarily due to the preliminary purchase accounting for an acquisition during the first quarter of fiscal 2023, which was not material to our results of operations or to our balance sheet.

Intangible Assets

Details of intangible assets other than goodwill were as follows: 

	April 30, 2023						October 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Intangible assets with finite lives:
Semiconductor Systems	$	1,997	$	(1,694)	$	303	$	1,985	$	(1,675)	$	310
Applied Global Services	79		(78)		1		79		(77)		2
Display and Adjacent Markets	194		(194)		—		194		(194)		—
Corporate and Other	36		(29)		7		36		(26)		10
Total intangible assets with finite lives	$	2,306	$	(1,995)	$	311	$	2,294	$	(1,972)	$	322
Intangible assets with indefinite lives:
Semiconductor Systems	$	16	$	—	$	16	$	16	$	—	$	16
Corporate and Other	1		—		1		1		—		1
Total intangible assets with indefinite lives	$	17	$	—	$	17	$	17	$	—	$	17
Total intangible assets	$	2,323	$	(1,995)	$	328	$	2,311	$	(1,972)	$	339

The increase in intangible assets during the first six months of fiscal 2023 was primarily due to the preliminary purchase accounting for an acquisition during the first quarter of fiscal 2023, which was not material to our results of operations.

Intangible assets with indefinite lives that are not subject to amortization consist primarily of in-process technology, which will be subject to amortization upon commercialization. If an in-process technology project is abandoned, the acquired technology attributable to the project will be written-off.

Amortization expense of intangible assets were $12 million and $23 million during the three and six months ended months ended April 30, 2023, respectively. Amortization expense of intangible assets were $9 million and $19 million during the three and six months ended and May 1, 2022, respectively.

As of April 30, 2023, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: 

	Amortization Expense
	(In millions)
2023 (remaining 6 months)	$	22
2024	41
2025	40
2026	38
2027	25
Thereafter	145
Total	$	311