GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Jan. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The goodwill balance as of January 31, 2024 and October 31, 2023 and the activity for the three months ended January 31, 2024 for each of our reportable operating segments were as follows:


	CSG		EISG		Total
	(in millions)
Goodwill at October 31, 2023	$	1,057	$	583	$	1,640
Foreign currency translation impact	6		5		11
Goodwill arising from acquisitions	73		530		603
Goodwill at January 31, 2024	$	1,136	$	1,118	$	2,254

There were no impairments for the three months ended January 31, 2024 and 2023. As of January 31, 2024 and October 31, 2023, accumulated impairment losses on goodwill was $709 million.

Other intangible assets as of January 31, 2024 and October 31, 2023 consisted of the following:


	January 31, 2024						October 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
Developed technology	$	1,305	$	965	$	340	$	1,033	$	949	$	84
Backlog	34		19		15		19		17		2
Trademark/Tradename	39		34		5		36		33		3
Customer relationships	568		359		209		406		340		66

Total amortizable intangible assets	$	1,946	$	1,377	$	569	$	1,494	$	1,339	$	155
In-Process R&D	47		—		47		—		—		—
Total	$	1,993	$	1,377	$	616	$	1,494	$	1,339	$	155

During the three months ended January 31, 2024, we recognized additions to goodwill and other intangible assets of $603 million and $494 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed in the acquisition of ESI Group. The goodwill was assigned to CSG and EISG reportable segments, based on the expected benefits and synergies that are likely to be realized from the ESI Group acquisition. See Note 2, Acquisitions, for additional details.

Goodwill is assessed for impairment on a reporting unit basis at least annually in the fourth quarter of each year, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The company has not identified any triggering events that indicate an impairment of goodwill for the three months ended January 31, 2024.

During the three months ended January 31, 2024, foreign exchange translation impact resulted in increasing other intangible assets by $5 million. Amortization of other intangible assets was $38 million and $23 million for the three months ended January 31, 2024 and 2023, respectively.

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


	Amortization expense
	(in millions)
2024 (remainder)	$	93
2025	$	113
2026	$	102
2027	$	90
2028	$	87
Thereafter	$	84