GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)

9 Months Ended

Jul. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July 31, 2019:



	Life Sciences and Applied Markets			Diagnostics and Genomics			Agilent CrossLab			Total
	(in millions)
Goodwill as of October 31, 2018	$	803		$	1,607		$	563		$	2,973
Foreign currency translation impact	(3		)	(3		)	(2		)	(8		)
Goodwill arising from acquisitions and adjustments	153			(11		)	—			142
Goodwill as of July 31, 2019	$	953		$	1,593		$	561		$	3,107

The components of other intangible assets as of July 31, 2019 and October 31, 2018 are shown in the table below:



	Purchased Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization and Impairments		Net Book Value
	(in millions)
As of October 31, 2018
Purchased technology	$	947	$	683	$	264
Trademark/Tradename	151		88		63
Customer relationships	107		63		44
Third-party technology and licenses	28		19		9
Total amortizable intangible assets	1,233		853		380
In-Process R&D	111		—		111
Total	$	1,344	$	853	$	491
As of July 31, 2019
Purchased technology	$	1,025	$	739	$	286
Trademark/Tradename	153		98		55
Customer relationships	127		75		52
Third-party technology and licenses	28		21		7
Total amortizable intangible assets	1,333		933		400
In-Process R&D	111		—		111
Total	$	1,444	$	933	$	511

On November 14, 2018, we acquired 100 percent of the stock of ACEA Biosciences (“ACEA”), a developer of cell analysis tools, for approximately $250 million in cash. The financial results of ACEA have been included within our financial results from the date of the close. The purchase accounting for this acquisition is substantially complete and will be finalized during 2019, as we assess the tax impact and finalize the intangibles valuation of the acquisition.

During the nine months ended July 31, 2019, we recorded additions to goodwill of $153 million related primarily to the ACEA acquisition within the life sciences and applied markets business. In the second quarter of fiscal year 2019, we recorded a measurement period adjustment to goodwill of $11 million for deferred tax assets related to pre-acquisition net operating losses of Advanced Analytical Technologies, Inc. During the nine months ended July 31, 2019, we recorded additions to other intangible assets of $103 million primarily related to the ACEA acquisition. During the nine months ended July 31, 2019, other intangible assets, net decreased $1 million due to foreign exchange translation impact.

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.

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, 2019 and 2018, respectively.

Amortization expense of intangible assets was $27 million and $82 million for the three and nine months ended July 31, 2019, respectively. Amortization expense of intangible assets was $28 million and $80 million for the three and nine months ended and July 31, 2018, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2019 and for each of the five succeeding fiscal years and thereafter is estimated below:



Estimated future amortization expense:
(in millions)
Remainder of 2019	$	26
2020	$	94
2021	$	81
2022	$	65
2023	$	55
2024	$	46
Thereafter	$	33