XML 32 R16.htm IDEA: XBRL DOCUMENT
v3.24.4

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Oct. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As a result of the Software Integrity Divestiture effective in the second quarter of fiscal 2024, we have two reporting segments, and reporting units are determined to be the same as reportable segments. The change has no impact on the composition of remaining two reporting units, therefore, no impairment indicator was identified upon the change. We performed the required annual goodwill assessment in the fourth quarter of fiscal 2024, and concluded the goodwill was not impaired. There was no goodwill impairment in fiscal 2024, 2023 and 2022. Goodwill activity by reportable segment consists of the following:
| Design Automation |  | Design IP |  |  |  | Total
| (in thousands)
Balance at October 31, 2022 | $ | 2,176,337 |  |  | $ | 944,734 |  |  |  |  | $ | 3,121,071 |
Additions | 229,351 |  |  | — |  |  |  |  | 229,351 |
Effect of foreign currency translation | (5,006) |  |  | 649 |  |  |  |  | (4,357) |
Balance at October 31, 2023 | 2,400,682 |  |  | 945,383 |  |  |  |  | 3,346,065 |
Additions | 61,803 |  |  | 34,339 |  |  |  |  | 96,142 |
Adjustments | 170 |  |  | — |  |  |  |  | 170 |
Effect of foreign currency translation | 6,602 |  |  | (129) |  |  |  |  | 6,473 |
Balance at October 31, 2024 | $ | 2,469,257 |  |  | $ | 979,593 |  |  |  |  | $ | 3,448,850 |
Intangible Assets During the fourth quarter of fiscal 2024, we assessed long-lived assets for impairment and recorded an impairment charge of $53.5 million related to acquired intangible assets. The impairment charge was triggered by a decline in estimated fair value resulting from the reductions in the expected future cash flows associated with our core/developed technology intangible assets related to our OpenLight business. There were no other impairment charges for long-lived assets in fiscal 2024, 2023 and 2022. Intangible assets as of October 31, 2024 consists of the following:
| Gross Carrying Amount |  | Accumulated Amortization and Impairment |  | Net Amount
| (in thousands)
Core/developed technology | $ | 904,347 |  |  | $ | 777,518 |  |  | $ | 126,829 |
Customer relationships | 314,140 |  |  | 247,025 |  |  | 67,115 |
Contract rights intangible | 176,382 |  |  | 175,170 |  |  | 1,212 |
Trademarks and trade names | 12,925 |  |  | 12,917 |  |  | 8 |
Total | $ | 1,407,794 |  |  | $ | 1,212,630 |  |  | $ | 195,164 |
Intangible assets as of October 31, 2023 consists of the following:
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Amount
| (in thousands)
Core/developed technology | $ | 842,448 |  |  | $ | 672,480 |  |  | $ | 169,968 |
Customer relationships | 296,883 |  |  | 231,557 |  |  | 65,326 |
Contract rights intangible | 175,747 |  |  | 171,487 |  |  | 4,260 |
Trademarks and trade names | 12,925 |  |  | 12,902 |  |  | 23 |
Capitalized software development costs | 50,795 |  |  | 50,795 |  |  | — |
Total | $ | 1,378,798 |  |  | $ | 1,139,221 |  |  | $ | 239,577 |
Amortization expense related to acquired intangible assets, including the impairment charge, consists of the following:
| Year Ended October 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Core/developed technology | $ | 104,797 |  |  | $ | 42,892 |  |  | $ | 42,582 |
Customer relationships | 15,550 |  |  | 9,288 |  |  | 11,389 |
Contract rights intangible | 3,872 |  |  | 2,389 |  |  | 2,307 |
Trademarks and trade names | 15 |  |  | 7 |  |  | 33 |
Capitalized software development costs(1) | — |  |  | 4,770 |  |  | 2,672 |
Total | $ | 124,234 |  |  | $ | 59,346 |  |  | $ | 58,983 |
(1)Amortization of capitalized software development costs is included in cost of products revenue in the consolidated statements of income. The following table presents the estimated future amortization of acquired intangible assets as of October 31, 2024:
Fiscal Year | (in thousands)
2025 | $ | 46,436 |
2026 | 36,112 |
2027 | 31,165 |
2028 | 25,572 |
2029 | 23,038 |
2030 and thereafter | 32,841 |
Total | $ | 195,164 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration