Goodwill and Purchased and Other Intangibles

6 Months Ended

May 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND PURCHASED AND OTHER INTANGIBLES

Goodwill as of May 31, 2019 and November 30, 2018 was $10.70 billion and $10.58 billion, respectively. The increase was primarily due to our acquisition of Allegorithmic in the first quarter of fiscal 2019. During the second quarter of fiscal 2019, we completed our annual goodwill impairment test associated with our reporting units and determined there was no impairment of goodwill.

Purchased and other intangible assets subject to amortization as of May 31, 2019 and November 30, 2018 were as follows (in thousands):



	2019							2018
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Purchased technology	$	774,307	$	(170,752	)	$	603,555	$	750,286	$	(118,812	)	$	631,474
Customer contracts and relationships	$	1,247,138	$	(397,340	)	$	849,798	$	1,329,432	$	(416,176	)	$	913,256
Trademarks	384,855		(50,039		)	334,816		384,855		(25,968		)	358,887
Acquired rights to use technology	59,906		(46,683		)	13,223		58,966		(48,770		)	10,196
Backlog	147,000		(46,565		)	100,435		147,300		(13,299		)	134,001
Other intangibles	23,807		(8,485		)	15,322		51,096		(29,909		)	21,187
Total other intangible assets	$	1,862,706	$	(549,112	)	$	1,313,594	$	1,971,649	$	(534,122	)	$	1,437,527
Purchased and other intangible assets, net	$	2,637,013	$	(719,864	)	$	1,917,149	$	2,721,935	$	(652,934	)	$	2,069,001

Amortization expense related to purchased and other intangible assets was $98.4 million and $203.0 million for the three and six months ended May 31, 2019, respectively. Comparatively, amortization expense related to purchased and other intangible assets was $34.6 million and $68.5 million for the three and six months ended June 1, 2018, respectively. Of these amounts, $55.4 million and $113.4 million were included in cost of sales for the three and six months ended May 31, 2019, respectively, and $17.4 million and $34.0 million were included in cost of sales for the three and six months ended June 1, 2018, respectively.

During the six months ended May 31, 2019, certain purchased intangibles associated with our acquisitions became fully amortized and were removed from the condensed consolidated balance sheets.

As of May 31, 2019, we expect amortization expense in future periods to be as follows (in thousands):



Fiscal Year	Purchased Technology		Other Intangible Assets
Remainder of 2019	$	63,578	$	131,537
2020	125,931		237,337
2021	103,698		149,829
2022	86,880		134,436
2023	76,876		134,245
Thereafter	146,592		526,210
Total expected amortization expense	$	603,555	$	1,313,594