AGILENT TECHNOLOGIES, INC. - 10-Q filing on 2016-06-07

GOODWILL AND OTHER INTANGIBLE ASSETS (Notes)

6 Months Ended

Apr. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

8. 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, 2016:



	Life Sciences and Applied Markets		Diagnostics and Genomics		Agilent CrossLab		Total
	(in millions)
Goodwill as of October 31, 2015	$	650	$	1,234	$	482	$	2,366
Foreign currency translation impact	5		44		4		53
Goodwill arising from acquisitions	137		—		—		137
Goodwill as of April 30, 2016	$	792	$	1,278	$	486	$	2,556

The components of other intangibles as of April 30, 2016 and October 31, 2015 are shown in the table below:



	Purchased Other Intangible Assets
	Gross Carrying Amount		Accumulated Amortization and Impairments		Net Book Value
	(in millions)
As of October 31, 2015:
Purchased technology	$	746	$	476	$	270
Trademark/Tradename	141		50		91
Customer relationships	230		168		62
Total amortizable intangible assets	1,117		694		423
In-Process R&D	22		—		22
Total	$	1,139	$	694	$	445
As of April 30, 2016:
Purchased technology	840		535		305
Backlog	1		1		—
Trademark/Tradename	154		57		97
Customer relationships	266		200		66
Total amortizable intangible assets	1,261		793		468
In-Process R&D	22		—		22
Total	$	1,283	$	793	$	490

On November 1, 2015, we acquired Seahorse Bioscience, a leader in providing instruments and assay kits for measuring cell metabolism and bioenergetics, for $242 million. The acquisition accounting for Seahorse was completed in the second quarter resulting in a $3 million adjustment to decrease goodwill. As a result, we recorded additions to goodwill of $137 million and additions to other intangible assets of $118 million during the six months ended April 30, 2016. During the six months ended April 30, 2016, other intangible assets increased $10 million, due to the impact of foreign exchange translation.

Amortization expense of intangible assets was $40 million and $83 million for the three and six months ended April 30, 2016, respectively. Amortization expense of intangible assets was $38 million and $81 million for the three and six months ended April 30, 2015, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2016 and for each of the five succeeding fiscal years and thereafter is estimated below:



Estimated future amortization expense:
(in millions)
Remainder of 2016	$	69
2017	$	113
2018	$	83
2019	$	59
2020	$	48
2021	$	36
Thereafter	$	60