GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The goodwill balances at October 31, 2016, 2015 and 2014 and the movements in 2016 and 2015 for each of our reportable segments are shown in the table below:



	Life Sciences and Applied Markets			Diagnostics and Genomics			Agilent CrossLab			Total
	(in millions)
Goodwill as of October 31, 2014	$	668		$	1,345		$	494		$	2,507
Foreign currency translation impact	(18		)	(166		)	(12		)	(196		)
Goodwill arising from acquisitions	—			55			—			55
Goodwill as of October 31, 2015	$	650		$	1,234		$	482		$	2,366
Foreign currency translation impact	3			(11		)	3			(5		)
Goodwill arising from acquisitions	137			—			19			156
Goodwill as of October 31, 2016	$	790		$	1,223		$	504		$	2,517

As of September 30, 2016, we assessed goodwill impairment for our reporting units and no impairment of goodwill was indicated.

The component parts of other intangible assets at October 31, 2016 and 2015 are shown in the table below:



	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization and Impairments		Net Book Value
	(in millions)
As of October 31, 2015:
Purchased technology	$	746	$	476	$	270
Trademark/Tradename	141		50		91
Customer relationships	230		168		62
Total amortizable intangible assets	$	1,117	$	694	$	423
In-Process R&D	22		—		22
Total	$	1,139	$	694	$	445
As of October 31, 2016:
Purchased technology	$	823	$	572	$	251
Backlog	1		1		—
Trademark/Tradename	149		61		88
Customer relationships	263		211		52
Total amortizable intangible assets	$	1,236	$	845	$	391
In-Process R&D	17		—		17
Total	$	1,253	$	845	$	408

In 2016, we acquired Seahorse Bioscience, a leader in providing instruments and assay kits for measuring cell metabolism and bioenergetics, for $242 million and iLab Solutions LLC ("iLab"), a cloud-based solutions provider for core laboratory management for $26 million. We have not included the pro forma impact of these acquisitions since they are not material to our current or prior period results. In 2016, we recorded additions to goodwill of $156 million and to other intangible assets of $121 million related to these acquisitions. During the year other intangible assets decreased $2 million, due to the impact of foreign exchange translation.

In 2015, we recorded additions to goodwill of $55 million and to intangible assets of $13 million related to a single acquisition of the company, Cartegenia. During the year other intangible assets decreased $58 million, due to the impact of foreign exchange translation. During 2015, we also removed the gross carrying amount of $246 million and the related accumulated amortization of fully amortized intangible assets which were no longer being used.

In addition, we recorded $4 million, $3 million and $4 million of impairments of other intangibles related to the cancellation of in-process research and development projects during 2016, 2015 and 2014, respectively.

Amortization of intangible assets was $152 million in 2016, $156 million in 2015, and $189 million in 2014.

Future amortization expense related to existing finite-lived purchased intangible assets for the next five fiscal years and thereafter is estimated below:



Estimated future amortization expense:
(in millions)
2017	$	112
2018	$	82
2019	$	58
2020	$	47
2021	$	35
Thereafter	$	57

- 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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