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GOODWILL AND OTHER INTANGIBLE ASSETS (Notes) | 9 Months Ended
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Jul. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | 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, 2021:
| Life Sciences and Applied Markets |  | Diagnostics and Genomics |  | Agilent CrossLab |  | Total
| (in millions)
Goodwill as of October 31, 2020 | $ | 1,441 |  |  | $ | 1,599 |  |  | $ | 562 |  |  | $ | 3,602 |
Foreign currency translation impact | 5 |  |  | 2 |  |  | 2 |  |  | 9 |
Goodwill arising from acquisitions and adjustments | — |  |  | 365 |  |  | — |  |  | 365 |
Goodwill as of July 31, 2021 | $ | 1,446 |  |  | $ | 1,966 |  |  | $ | 564 |  |  | $ | 3,976 |
The component parts of other intangible assets as of July 31, 2021 and October 31, 2020 are shown in the table below:
| Other Intangible Assets
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in millions)
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 |
As of July 31, 2021 |  |  |  |  |
Purchased technology | $ | 1,741 |  |  | $ | 944 |  |  | $ | 797 |
Trademark/Tradename | 196 |  |  | 129 |  |  | 67 |
Customer relationships | 357 |  |  | 210 |  |  | 147 |
Backlog | 8 |  |  | 2 |  |  | 6 |
Third-party technology and licenses | 11 |  |  | 7 |  |  | 4 |
Total amortizable intangible assets | 2,313 |  |  | 1,292 |  |  | 1,021 |
In-Process R&D | 11 |  |  | — |  |  | 11 |
Total | $ | 2,324 |  |  | $ | 1,292 |  |  | $ | 1,032 |
On April 15, 2021 we completed the acquisition of privately-owned Resolution Bioscience, Inc., a biotechnology company focused on the development and commercialization of next-generation sequencing-based ("NGS") precision oncology solutions, for $550 million cash plus potential future contingent payments of up to $145 million upon the achievement of certain milestones which are based on certain revenue and technical targets. As of July 31, 2021, the expected maximum earn-out period for the contingent payments does not exceed 3.4 years. Resolution Bioscience complements and expands our capabilities in NGS-based cancer diagnostics and provides us with innovative technology to further serve the needs of the fast-growing precision medicine market. The results of operations of Resolution Bioscience have been included in the condensed consolidated statements of operations since the acquisition date of April 15, 2021. Pro forma financial information is not presented as historical financial results of Resolution Bioscience are not significant when compared to the actual results of operations of the company. As a result of this acquisition, we recorded a short-term liability of $62 million in other accrued liabilities and a long-term liability of $48 million in other long-term liabilities on our condensed consolidated balance sheet which reflects the estimated fair value of the potential future contingent payments. The change in contingent consideration in the three months ended July 31, 2021, included a measurement period adjustment of $14 million. During the nine months ended July 31, 2021, we also recorded additions to goodwill of $365 million and additions to other intangible assets of $343 million with a weighted-average life of 11 years and a deferred tax liability of $59 million. During the three months ended July 31, 2021 we recorded measurement period adjustments which included an increase to other intangible assets of $80 million and a decrease to goodwill of $70 million. The goodwill arising from the acquisition consists largely of the value of intangible assets that do not qualify for separate recognition such as workforce in place, and cash flows from future product technology and development services. The valuation of the tangible and intangible assets and related tax impacts and contingent consideration of this acquisition is preliminary and we anticipate will be completed by our fiscal year end. During the nine months ended July 31, 2021, other intangible assets in total increased $2 million due to the impact of foreign currency translation. In general, for U.S. 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. During the three and nine months ended July 31, 2021 and 2020 we did not identify any triggering events or circumstances, including impacts due to COVID-19, which would indicate an impairment of goodwill. During the three and nine months ended July 31, 2021, there were no indicators of impairments of indefinite-lived intangible assets. During the three and nine months ended July 31, 2020, we recorded impairments of in-process research and development of zero and $90 million, respectively, related to the shut-down of our sequencer development program in our diagnostics and genomics segment. Amortization expense of intangible assets was $54 million and $144 million for the three and nine months ended July 31, 2021, respectively. Amortization expense of intangible assets was $45 million and $140 million for the three and nine months ended July 31, 2020, respectively. Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2021 and for each of the next five fiscal years and thereafter is estimated below:
Estimated future amortization expense: |
(in millions) |
Remainder of 2021 | $ | 51 |
2022 | $ | 191 |
2023 | $ | 143 |
2024 | $ | 121 |
2025 | $ | 96 |
2026 | $ | 66 |
Thereafter | $ | 353 |

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