XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)
 6 Months Ended
Apr. 30, 2022
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 six months ended April 30, 2022:
 
 Life Sciences and Applied MarketsDiagnostics and GenomicsAgilent CrossLabTotal
 (in millions)
Goodwill as of October 31, 2021$1,743 $1,964 $268 $3,975 
Foreign currency translation impact(7)(7)(5)(19)
Goodwill as of April 30, 2022$1,736 $1,957 $263 $3,956 

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, 2021, 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.
The component parts of other intangible assets as of April 30, 2022 and October 31, 2021 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 
Trademark/Tradename196 133 63 
Customer relationships357 228 129 
Backlog8 3 5 
Third-party technology and licenses11 8 3 
Total amortizable intangible assets2,314 1,344 970 
In-Process R&D11 — 11 
Total$2,325 $1,344 $981 
As of April 30, 2022   
Purchased technology$1,737 $1,024 $713 
Trademark/Tradename196 141 55 
Customer relationships354 261 93 
Backlog8 5 3 
Third-party technology and licenses33 9 24 
Total amortizable intangible assets2,328 1,440 888 
In-Process R&D10 — 10 
Total$2,338 $1,440 $898 

During the six months ended April 30, 2022, there were no additions to goodwill. During the six months ended April 30, 2022, we recorded $21 million of other intangible assets related to the acquisition of advanced artificial intelligence technology. During the six months ended April 30, 2022, other intangible assets in total decreased $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 six months ended April 30, 2022 and 2021 we did not identify any triggering events or circumstances, including impacts due to COVID-19, which would indicate an impairment of goodwill or indefinite-lived intangible assets.

Amortization expense of intangible assets was $51 million and $102 million for the three and six months ended April 30, 2022, respectively. Amortization expense of intangible assets was $45 million and $90 million for the three and six months ended April 30, 2021, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2022 and for each of the next five fiscal years and thereafter is estimated below:
Estimated future amortization expense:
(in millions)
Remainder of 2022$90 
2023$143 
2024$125 
2025$100 
2026$70 
2027$69 
Thereafter$291