Goodwill and Intangible Assets

6 Months Ended

Apr. 30, 2014

Note 4. Goodwill and Intangible Assets

Goodwill as of April 30, 2014 consisted of the following:


	(in thousands)
Balance at October 31, 2013	$	1,975,971
Additions		286,323
Effect of foreign currency translation		(7,840	)

Balance at April 30, 2014	$	2,254,454

Intangible assets as of April 30, 2014 consisted of the following:


	Gross Assets		Accumulated Amortization		Net Assets
	(in thousands)
Core/developed technology	$	449,347	$	261,641	$	187,706
Customer relationships		210,278		80,549		129,729
Contract rights intangible		146,785		93,534		53,251
Covenants not to compete		2,530		2,513		17
Trademarks and trade names		18,779		6,348		12,431
In-process research and development (IPR&D)(1)		11,287		—		11,287
Capitalized software development costs		20,065		15,926		4,139

Total	$	859,071	$	460,511	$	398,560

(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 April 30,				Six Months Ended April 30,
	2014		2013		2014		2013
	(in thousands)
Core/developed technology	$	17,989	$	17,222	$	33,611	$	34,356
Customer relationships		5,787		5,363		10,839		10,736
Contract rights intangible		7,680		9,171		14,807		18,549
Covenants not to compete		17		33		33		66
Trademarks and trade names		577		484		891		970
Capitalized software development costs(1)		885		799		1,749		1,585

Total	$	32,935	$	33,072	$	61,930	$	66,262

(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	$	65,147
2015		116,947
2016		79,949
2017		45,691
2018		33,365
2019 and thereafter		46,174
IPR&D(1)		11,287

Total	$	398,560

(1)	IPR&D projects are estimated to be completed within one year as of April 30, 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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