GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)

6 Months Ended

Apr. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents goodwill balances and the movements for each of our reportable segments during the six months ended April 30, 2024:


	Life Sciences and Applied Markets		Diagnostics and Genomics		Agilent CrossLab		Total
	(in millions)
Goodwill as of October 31, 2023	$	1,579	$	2,124	$	257	$	3,960
Foreign currency translation impact	2		—		1		3

Goodwill as of April 30, 2024	$	1,581	$	2,124	$	258	$	3,963

In the first quarter of fiscal year 2024, we reorganized our operating segments and moved our cell analysis business from our life sciences and applied markets business segment to our diagnostics and genomics business segment. As a result, we reassigned approximately $168 million of goodwill from our life sciences and applied markets business segment to our diagnostics and genomics business segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2023, have been recast to conform to this new presentation. As a result of the reorganization, there was no change to our reporting units. 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 October 31, 2023 and April 30, 2024 are shown in the table below:


	Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
	(in millions)
As of October 31, 2023
Purchased technology	$	1,467	$	1,093	$	374
Trademark/Tradename	196		163		33
Customer relationships	149		112		37

Third-party technology and licenses	34		13		21
Total amortizable intangible assets	1,846		1,381		465
In-Process R&D	10		—		10
Total	$	1,856	$	1,381	$	475
As of April 30, 2024
Purchased technology	$	1,473	$	1,131	$	342
Trademark/Tradename	196		170		26
Customer relationships	149		118		31

Third-party technology and licenses	34		16		18
Total amortizable intangible assets	1,852		1,435		417
In-Process R&D	—		—		—
Total	$	1,852	$	1,435	$	417

During the six months ended April 30, 2024, there were no additions to goodwill and other intangible assets. During the six months ended April 30, 2024, we reclassified $4 million of in-process research and development intangible assets to purchased technology upon the completion of a project. During the six months ended April 30, 2024, there was no change to other intangibles due to the impact of foreign currency.

In general, for U.S. federal tax purposes, goodwill from asset purchases is amortizable; 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 months ended April 30, 2024, we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets. During the six months ended April 30, 2024, we recorded an impairment of in-process research and development of $6 million in research and development in the condensed consolidated statement of operations related to a project in our life sciences and applied markets segment. During the six months ended April 30, 2024 we did not identify any triggering events or circumstances which would indicate an impairment of goodwill. During the three and six months ended April 30, 2023, 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 $27 million and $53 million for the three and six months ended April 30, 2024, respectively. Amortization expense of intangible assets was $38 million and $74 million for the three and six months ended April 30, 2023, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2024 and for each of the next five fiscal years and thereafter is estimated below:


Estimated future amortization expense:
(in millions)
Remainder of 2024	$	48
2025	$	84
2026	$	54
2027	$	53
2028	$	46
2029	$	42
Thereafter	$	90