Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Following the realignment of the Company’s operating segments during the first quarter of fiscal 2019, as described in Note 13. Segment Disclosure, the Company has two reporting units and has assigned assets and liabilities to each of the reporting units based on each unit's operating activities. Previously, the Company operated as a single reporting segment and reporting unit. Goodwill was reallocated to the reporting units using the relative fair value method and assessed for impairment. No impairment of goodwill was identified for any periods presented.

Goodwill activity by reportable segment for the year ended October 31, 2019 consists of the following:



	Semiconductor & System Design		Software Integrity			Total
	(in thousands)
Balance at October 31, 2018	$	2,730,990	$	412,259		$	3,143,249
Additions	23,690		—			23,690
Effect of foreign currency translation	4,246		(6		)	4,240
Balance at October 31, 2019	$	2,758,926	$	412,253		$	3,171,179

Goodwill activity for the year ended October 31, 2018 consists of the following:



	(in thousands)
Balance at October 31, 2017	$	2,706,974
Additions	443,007
Effect of foreign currency translation	(6,732		)
Balance at October 31, 2018	$	3,143,249

Intangible assets as of October 31, 2019 consist of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	791,647	$	655,119	$	136,528
Customer relationships	358,661		242,058		116,603
Contract rights intangible	184,304		181,124		3,180
Trademarks and trade names	42,929		25,581		17,348
In-process research and development (IPR&D)	1,200		—		1,200
Capitalized software development costs	40,077		35,562		4,515
Total	$	1,418,818	$	1,139,444	$	279,374

Intangible assets as of October 31, 2018 consist of the following:



	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	773,147	$	598,956	$	174,191
Customer relationships	358,524		204,382		154,142
Contract rights intangible	183,953		177,191		6,762
Trademarks and trade names	42,929		21,944		20,985
In-process research and development (IPR&D)	1,200		—		1,200
Capitalized software development costs	35,818		32,694		3,124
Total	$	1,395,571	$	1,035,167	$	360,404

Amortization expense related to intangible assets consisted of the following:



	Year Ended October 31,
	2019		2018		2017
	(in thousands)
Core/developed technology	$	56,163	$	78,820	$	65,916
Customer relationships	37,533		37,395		27,340
Contract rights intangible	3,581		4,906		10,886
Trademarks and trade names	3,637		4,543		3,580
Capitalized software development costs(1)	2,868		3,599		3,986
Total	$	103,782	$	129,263	$	111,708


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

The following table presents the estimated future amortization of intangible assets as of October 31, 2019:



Fiscal Year	(in thousands)
2020	$	83,899
2021	61,113
2022	47,713
2023	32,919
2024	23,797
2025 and thereafter	28,733
IPR&D	1,200
Total	$	279,374