Goodwill and Intangible Assets

3 Months Ended

Jan. 31, 2014

Note 5. Goodwill and Intangible Assets

Goodwill as of January 31, 2014 consisted of the following:


	(in thousands)
Balance at October 31, 2013	$	1,975,971
Effect of foreign currency translation		(9,152	)

Balance at January 31, 2014	$	1,966,819

Intangible assets as of January 31, 2014 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	382,311	$	243,652	$	138,659
Customer relationships		176,970		74,762		102,208
Contract rights intangible		140,015		85,851		54,164
Covenants not to compete		2,530		2,497		33
Trademarks and trade names		10,879		5,770		5,109
In-process research and development (IPR&D)(1)		3,688		—		3,688
Capitalized software development costs		19,092		15,041		4,051

Total	$	735,485	$	427,573	$	307,912

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

Intangible assets as of October 31, 2013 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	380,724	$	228,065	$	152,659
Customer relationships		177,151		69,745		107,406
Contract rights intangible		140,517		78,950		61,567
Covenants not to compete		2,530		2,480		50
Trademarks and trade names		10,891		5,459		5,432
In-process research and development (IPR&D)(1)		4,298		—		4,298
Capitalized software development costs		18,190		14,177		4,013

Total	$	734,301	$	398,876	$	335,425

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

Amortization expense related to intangible assets consisted of the following:


	Three Months Ended January 31,
	2014		2013
	(in thousands)
Core/developed technology	$	15,621	$	17,134
Customer relationships		5,053		5,373
Contract rights intangible		7,126		9,377
Covenants not to compete		17		33
Trademarks and trade names		314		486
Capitalized software development costs(1)		864		786

Total	$	28,995	$	33,189

(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 2014	$	82,555
2015		94,039
2016		59,147
2017		26,354
2018		14,628
2019 and thereafter		27,501
IPR&D(1)		3,688

Total	$	307,912

(1)	IPR&D projects are estimated to be completed within one year as of January 31, 2014. Assets are amortized over their useful life upon completion of the project or are 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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