GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2022

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, 2021 and 2022:


	Life Sciences and Applied Markets		Diagnostics and Genomics		Agilent CrossLab		Total
	(in millions)
Goodwill as of October 31, 2020	$	1,738	$	1,599	$	265	$	3,602
Foreign currency translation impact	5		—		3		8
Goodwill arising from acquisitions and adjustments	—		365		—		365
Goodwill as of October 31, 2021	$	1,743	$	1,964	$	268	$	3,975
Foreign currency translation impact	(19)		(11)		(12)		(42)
Goodwill arising from acquisitions and adjustments	19		—		—		19
Goodwill as of October 31, 2022	$	1,743	$	1,953	$	256	$	3,952

In the first quarter of fiscal year 2022, we reorganized our operating segments and moved our chemistries and supplies business and our remarketed instruments business from our Agilent CrossLab business segment to our life sciences and applied markets business segment. As a result, we reassigned approximately $307 million of goodwill from our Agilent Crosslab business segment to our life sciences and applied markets business segment using the relative fair value allocation approach. In addition, we moved service revenue and cost of sales related to the previous acquisition of BioTek from our life sciences and applied markets business segment to our Agilent CrossLab business segment. As a result, we reassigned approximately $10 million of goodwill from our life sciences and applied markets segment to our Agilent Crosslab business segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2020, have been recast to conform to this new presentation. There were no changes to our reporting units due to this reorganization. In addition, we performed a goodwill impairment test, and the results of the analysis indicated that the fair values for all three of our reporting units were in excess of their carrying values by substantial amounts; therefore, no impairment was indicated.

As of September 30, 2022, our annual impairment test date, we assessed goodwill for triggering events and circumstances, and determined no impairment of goodwill was indicated for our reporting units.

The component parts of other intangible assets at October 31, 2021 and 2022 are shown in the table below:


	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
As of October 31, 2021:
Purchased technology	$	1,742	$	972	$	770
Backlog	8		3		5
Trademark/Tradename	196		133		63
Customer relationships	357		228		129
Third-party technology and licenses	11		8		3
Total amortizable intangible assets	$	2,314	$	1,344	$	970
In-Process R&D	11		—		11
Total	$	2,325	$	1,344	$	981
As of October 31, 2022:
Purchased technology	$	1,733	$	1,068	$	665
Backlog	8		8		—
Trademark/Tradename	196		148		48
Customer relationships	180		105		75
Third-party technology and licenses	32		9		23
Total amortizable intangible assets	$	2,149	$	1,338	$	811
In-Process R&D	10		—		10
Total	$	2,159	$	1,338	$	821

In 2022, we acquired Polymer Standards Service GmbH (PSS), a provider of solutions in the field of polymer characterization for $41 million. During fiscal year 2022, we recorded additions to goodwill of $19 million and additions to other intangible assets of $35 million related to the acquisition of PSS and advanced artificial intelligence technology. During the year other intangible assets decreased $3 million due to the impact of foreign currency translation.

In 2021, we acquired privately-owned Resolution Bioscience, Inc., a biotechnology company focused on the development and commercialization of next-generation sequencing-based ("NGS") precision oncology solutions, for $561 million cash plus potential future contingent payments of up to $145 million upon the achievement of certain milestones. See also Note 12, "Fair Value Measurements" for additional information. During fiscal year 2021, we recorded additions to goodwill of $365 million and additions to other intangible assets of $343 million related to this acquisition. During the year, other intangible assets increased $2 million due to the impact of foreign currency translation.

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.

There were no impairments of indefinite-lived intangible assets during fiscal years 2022 and 2021. 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. During fiscal years 2022, 2021 and 2020, there were no impairments of finite-lived intangible assets recorded. During 2022, we also wrote-off the gross carrying amounts of $184 million and the related accumulated amortization of fully amortized intangible assets which were no longer being used.

Amortization expense of intangible assets was $192 million in 2022, $195 million in 2021, and $186 million in 2020.

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)
2023	$	145
2024	$	126
2025	$	102
2026	$	72
2027	$	71
Thereafter	$	295