GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The goodwill balances as of July 31, 2020 and October 31, 2019 and the activity for the nine months ended July 31, 2020 for each of our reportable operating segments were as follows. Prior period amounts have been reclassified to conform to our organizational change as described in Note 17, "Segment Information."



	Communications Solutions Group			Electronic Industrial Solutions Group		Total
	(in millions)
Balance as of October 31, 2019:
Goodwill	$	1,651		$	267	$	1,918
Accumulated impairment losses	(709		)	—		(709		)
Goodwill as reported	942			267		1,209
Goodwill arising from acquisitions	8			280		288
Foreign currency translation impact	6			7		13
Balance as of July 31, 2020	$	956		$	554	$	1,510

Components of goodwill as of July 31, 2020:
Goodwill	$	1,665		$	554	$	2,219
Accumulated impairment losses	(709		)	—		(709		)
Goodwill as reported	$	956		$	554	$	1,510

During the third quarter of fiscal 2020, we acquired Eggplant Topco Limited ("Eggplant") for $319 million, net of $11 million cash acquired, and recognized additions to goodwill and other intangible assets of $280 million and $88 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. The identified intangible assets primarily consist of developed technology of $38 million and customer

relationships of $46 million with estimated useful lives of 3 years and 6 years, respectively. Eggplant is a software test automation platform provider that uses artificial intelligence and analytics to automate test creation and test execution.

Goodwill was assessed for impairment upon the completion of the organizational change in the first quarter of fiscal 2020, and it was determined that it was more-likely-than-not that the fair value of the reporting unit was greater than its carrying value. We evaluated the impact of the deterioration in overall global economic conditions as a result of the COVID-19 pandemic, including the change in our market capitalization and changes in forecasts for each reporting unit, and we determined that no triggering events had occurred as of July 31, 2020.

Other intangible assets as of July 31, 2020 and October 31, 2019 consisted of the following:



	Other Intangible Assets as of July 31, 2020						Other Intangible Assets as of October 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
Developed technology	$	916	$	705	$	211	$	876	$	578	$	298
Backlog	17		13		4		13		13		—
Trademark/Tradename	34		24		10		34		21		13
Customer relationships	363		171		192		316		139		177
Non-compete agreements	1		1		—		1		1		—
Total amortizable intangible assets	1,331		914		417		1,240		752		488
In-Process R&D	2		—		2		2		—		2
Total	$	1,333	$	914	$	419	$	1,242	$	752	$	490

During the nine months ended July 31, 2020, there was $3 million foreign exchange translation impact to other intangible assets. Amortization of other intangible assets was $54 million and $162 million for the three and nine months ended July 31, 2020, respectively. Amortization of other intangible assets was $53 million and $155 million for the three and nine months ended July 31, 2019, respectively.

Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows:



	Amortization expense
	(in millions)
2020 (remainder)	$	58
2021	166
2022	88
2023	65
2024	26
Thereafter	$	14