GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill balances and the movements for each of our reportable segments during the years ended October 31, 2019 and 2020:


	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	(1)		(2)		(2)		(5)
Goodwill arising from acquisitions	636		(11)		—		625
Goodwill as of October 31, 2019	$	1,438	$	1,594	$	561	$	3,593
Foreign currency translation impact	3		5		1		9

Goodwill as of October 31, 2020	$	1,441	$	1,599	$	562	$	3,602

As of September 30, 2020, our annual impairment test date, we assessed goodwill for triggering events and circumstances, including impacts due to COVID-19, and determined no impairment of goodwill was indicated for our reporting units.

The component parts of other intangible assets at October 31, 2019 and 2020 are shown in the table below:


	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
As of October 31, 2019:
Purchased technology	$	1,413	$	763	$	650
Backlog	5		5		—
Trademark/Tradename	196		102		94
Customer relationships	329		87		242
Third-party technology and licenses	28		22		6
Total amortizable intangible assets	$	1,971	$	979	$	992
In-Process R&D	115		—		115
Total	$	2,086	$	979	$	1,107
As of October 31, 2020:
Purchased technology	$	1,429	$	863	$	566

Trademark/Tradename	196		117		79
Customer relationships	330		158		172
Third-party technology and licenses	11		7		4
Total amortizable intangible assets	$	1,966	$	1,145	$	821
In-Process R&D	10		—		10
Total	$	1,976	$	1,145	$	831

During fiscal year 2020, we recorded no additions to goodwill or to intangible assets. During the year ended October 31, 2020 we moved $15 million of in-process research and development intangible assets to purchased technology on the completion of three projects.

During fiscal year 2019, we recorded additions to goodwill of $636 million and to other intangible assets of $744 million related to the acquisition of ACEA Biosciences and BioTek. 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. The increase to other intangible assets due to foreign currency translation was not material in 2019.

In general, for United States federal tax purposes, goodwill from asset purchases is amortizable; however, any goodwill created as part of a stock acquisition is not deductible.

During fiscal year 2020, we recorded an impairment of in-process research and development of $90 million in research and development expenses in the consolidated statement of operations which was related to the shutdown of our sequencer development program in our diagnostics and genomics segment. There were no impairments of indefinite-lived intangible assets during fiscal year 2019 and 2018. During fiscal years 2020 and 2019, there were no impairments of finite-lived intangible assets recorded. During 2018, we recorded an impairment of $21 million related to purchased intangible assets within the diagnostics and genomics segment that were deemed unrecoverable.

During 2020, we also wrote-off the gross carrying amount of $17 million and the related accumulated amortization of fully amortized intangible assets which were no longer being used.

Amortization expense of intangible assets was $186 million in 2020, $128 million in 2019, and $110 million in 2018.

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


Estimated future amortization expense:
	(in millions)
2021	$	174
2022	$	151
2023	$	109
2024	$	87
2025	$	70
Thereafter	$	230