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GOODWILL AND OTHER INTANGIBLE ASSETS (Notes) | 9 Months Ended
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Jul. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July 31, 2018:
| Life Sciences and Applied Markets |  | Diagnostics and Genomics |  | Agilent CrossLab |  | Total
| (in millions)
Goodwill as of October 31, 2017 | $ | 773 |  |  | $ | 1,330 |  |  | $ | 504 |  |  | $ | 2,607 |
Foreign currency translation impact | (2 | ) |  | — |  |  | (1 | ) |  | (3 | )
Goodwill arising from acquisitions | 30 |  |  | 281 |  |  | 18 |  |  | 329 |
Goodwill as of July 31, 2018 | $ | 801 |  |  | $ | 1,611 |  |  | $ | 521 |  |  | $ | 2,933 |
In May 2018, we re-organized our operating segments and moved our microfluidics business from our life sciences and applied markets operating segment to our diagnostics and genomics operating segment. As a result, we reassigned approximately $45 million of goodwill from our life sciences and applied markets segment to our diagnostics and genomics segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2017, have been recast to conform to this new presentation. The components of other intangible assets as of July 31, 2018 and October 31, 2017 are shown in the table below:
| Purchased Other Intangible Assets
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in millions)
As of October 31, 2017 |  |  |  |  |  |  |  |
Purchased technology | $ | 855 |  |  | $ | 646 |  |  | $ | 209 |
Trademark/Tradename | 149 |  |  | 73 |  |  | 76 |
Customer relationships | 151 |  |  | 112 |  |  | 39 |
Third-party technology and licenses | 27 |  |  | 14 |  |  | 13 |
Total amortizable intangible assets | 1,182 |  |  | 845 |  |  | 337 |
In-Process R&D | 24 |  |  | — |  |  | 24 |
Total | $ | 1,206 |  |  | $ | 845 |  |  | $ | 361 |
As of July 31, 2018 |  |  |  |  |  |  |  |
Purchased technology | $ | 976 |  |  | $ | 691 |  |  | $ | 285 |
Trademark/Tradename | 151 |  |  | 85 |  |  | 66 |
Customer relationships | 172 |  |  | 129 |  |  | 43 |
Third-party technology and licenses | 28 |  |  | 18 |  |  | 10 |
Total amortizable intangible assets | 1,327 |  |  | 923 |  |  | 404 |
In-Process R&D | 111 |  |  | — |  |  | 111 |
Total | $ | 1,438 |  |  | $ | 923 |  |  | $ | 515 |
On May 7, 2018, we acquired all of the remaining shares of Lasergen, Inc. (Lasergen), an emerging biotechnology company focused on research and development of innovative technologies for DNA sequencing, for an additional cash consideration of approximately $107 million. The fair value remeasurement of our previous investment immediately before the acquisition resulted in a net gain of $20 million and was recorded in other income. The financial results of Lasergen have been included within our financial results from the date of the close. The valuation of the tangible and intangible assets of this acquisition is preliminary and will be finalized in the fourth quarter. On May 14, 2018, we acquired 100 percent of the stock of Genohm SA (“Genohm”), an international lab informatics company, for approximately $41 million in cash. Genohm provides lab informatics services specific to compliance, traceability, and big lab data management. The financial results of Genohm have been included within our financial results from the date of the close. On May 31, 2018 we acquired 100 percent of the stock of Advanced Analytical Technologies, Inc. ("AATI") for approximately $269 million in cash. AATI develops, manufactures and markets capillary electrophoresis-based solutions for automated nucleic acid analysis. The financial results of AATI have been included within our financial results from the date of the close. On July 16, 2018, we acquired substantially all of the assets and liabilities of Ultra Scientific Incorporated (“Ultra”), a global manufacturer and supplier of analytical standards and certified reference materials, for $32 million in cash. In addition, there is a contingent payment of $3 million which is dependent on future service and would not be included as part of the purchase price, but rather post-acquisition compensation expense. The financial results of the business related to the acquired assets and liabilities has been included within our financial results from the date of the close. Due to the timing of the close, the valuation of the tangible and intangible assets of this acquisition is preliminary and will be finalized in the fourth quarter. In general, for United States federal tax purposes, goodwill from asset purchases is deductible, however any goodwill created as part of a stock acquisition is not deductible. During the nine months ended July 31, 2018, we recorded additions to goodwill of $329 million and additions to other intangible assets of $233 million related to five acquisitions. There was no foreign exchange translation impact on other intangible assets, net during the nine months ended July 31, 2018. We also acquired approximately $1 million of third party technologies and licenses during the nine months ended July 31, 2018. During the nine months ended July 31, 2018, we also transferred $7 million from in-process R&D to purchased technology on completion of an R&D project related to an acquisition. Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible assets and goodwill is indicated. There were no indicators of impairments of indefinite-lived intangible assets or goodwill during the three and nine months ended July 31, 2018 and 2017, respectively. Amortization expense of intangible assets was $28 million and $80 million for the three and nine months ended July 31, 2018, respectively. Amortization expense of intangible assets was $28 million and $92 million for the three and nine months ended July 31, 2017, respectively. Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2018 and for each of the five succeeding fiscal years and thereafter is estimated below:
Estimated future amortization expense: |
(in millions) |
Remainder of 2018 | $ | 29 |
2019 | $ | 94 |
2020 | $ | 79 |
2021 | $ | 66 |
2022 | $ | 53 |
2023 | $ | 39 |
Thereafter | $ | 44 |

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