GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)

9 Months Ended

Jul. 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 nine months ended July 31, 2022:


	Life Sciences and Applied Markets		Diagnostics and Genomics		Agilent CrossLab		Total
	(in millions)
Goodwill as of October 31, 2021	$	1,743	$	1,964	$	268	$	3,975
Foreign currency translation impact	(11)		(10)		(6)		(27)

Goodwill as of July 31, 2022	$	1,732	$	1,954	$	262	$	3,948

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 July 31, 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/Tradename	196		133		63
Customer relationships	357		228		129
Backlog	8		3		5
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 July 31, 2022
Purchased technology	$	1,735	$	1,047	$	688
Trademark/Tradename	196		144		52
Customer relationships	353		278		75
Backlog	8		7		1
Third-party technology and licenses	32		9		23
Total amortizable intangible assets	2,324		1,485		839
In-Process R&D	10		—		10
Total	$	2,334	$	1,485	$	849

During the nine months ended July 31, 2022, there were no additions to goodwill. During the nine months ended July 31, 2022, we recorded $21 million of other intangible assets related to the acquisition of advanced artificial intelligence technology. During the nine months ended July 31, 2022, other intangible assets in total decreased $3 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, 2022 and 2021 we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets.

Amortization expense of intangible assets was $48 million and $150 million for the three and nine months ended July 31, 2022, respectively. Amortization expense of intangible assets was $54 million and $144 million for the three and nine months ended July 31, 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	$	41
2023	$	143
2024	$	125
2025	$	100
2026	$	71
2027	$	69
Thereafter	$	290