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Document and Company Information - USD ($)	12 Months Ended
Document and Company Information - USD ($)	Oct. 25, 2009	Nov. 20, 2009	Apr. 26, 2009
Document and Company Information [Abstract]
Entity Registrant Name	APPLIED MATERIALS INC /DE
Entity Central Index Key	0000006951
Document Type	10-K
Document Period End Date	Oct. 25, 2009
Amendment Flag	false
Current Fiscal Year End Date	--10-25
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float (actual number)			$ 15,579,209,892
Entity Common Stock Shares Outstanding (actual number)		1,341,259,033

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 25, 2009	Oct. 26, 2008	Oct. 28, 2007
Statement [Line Items]
Net sales	$ 5,013,607	$ 8,129,240	$ 9,734,856
Cost of products sold	3,582,802	4,686,412	5,242,413
Gross margin	1,430,805	3,442,828	4,492,443
Operating expenses:
Research, development and engineering	934,115	1,104,122	1,142,073
General and administrative	406,946	505,762	501,185
Marketing and selling	327,572	459,402	451,258
Restructuring and asset impairments	155,788	39,948	26,421
Gain on sale of facility	0	21,837	0
Income (loss) from operations	(393,616)	1,355,431	2,371,506
Pretax loss of equity-method investment	34,983	35,527	29,371
Impairment of investments	84,480	0	0
Interest expense	21,304	20,506	38,631
Interest income	48,580	109,320	136,149
Income (loss) before income taxes	(485,803)	1,408,718	2,439,653
Provision (benefit) for income taxes	(180,476)	447,972	729,457
Net income (loss)	$ (305,327)	$ 960,746	$ 1,710,196
Earnings (loss) per share:
Basic	$ (0.23)	$ 0.71	$ 1.22
Diluted	$ (0.23)	$ 0.7	$ 1.2
Weighted average number of shares:
Basic	1,333,091	1,354,176	1,406,685
Diluted	1,333,091	1,374,507	1,427,002

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 25, 2009	Oct. 26, 2008
Current assets:
Cash and cash equivalents	$ 1,576,381	$ 1,411,624
Short-term investments	638,349	689,044
Accounts receivable, less allowance for doubtful accounts of $67,313 and $5,275 at 2009 and 2008, respectively	1,041,495	1,691,027
Inventories	1,627,457	1,987,017
Deferred income taxes, net	356,336	388,807
Income taxes receivable	184,760	125,605
Other current assets	264,169	371,033
Total current assets	5,688,947	6,664,157
Long-term investments	1,052,165	1,367,056
Property, plant and equipment	2,906,957	2,831,952
Less: accumulated depreciation and amortization	(1,816,524)	(1,737,752)
Net property, plant and equipment	1,090,433	1,094,200
Goodwill, net	1,170,932	1,174,673
Purchased technology and other intangible assets, net	306,416	388,429
Equity-method investment	0	79,533
Deferred income taxes and other assets	265,350	238,270
Total assets	9,574,243	11,006,318
Current liabilities:
Current portion of long-term debt	1,240	1,068
Accounts payable and accrued expenses	1,061,502	1,545,355
Customer deposits and deferred revenue	864,280	1,225,735
Income taxes payable	12,435	173,394
Total current liabilities	1,939,457	2,945,552
Long-term debt	200,654	201,576
Other liabilities	339,524	310,232
Total liabilities	$ 2,479,635	$ 3,457,360
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock: $.01 par value per share; 1,000 shares authorized; no shares issued	$ 0	$ 0
Common stock: $.01 par value per share; 2,500,000 shares authorized; 1,340,917 and 1,330,761 shares outstanding at 2009 and 2008, respectively	13,409	13,308
Additional paid-in capital	5,195,437	5,095,894
Retained earnings	10,934,004	11,601,288
Treasury stock: 508,254 and 513,232 shares at 2009 and 2008, respectively, net	(9,046,562)	(9,134,962)
Accumulated other comprehensive loss	(1,680)	(26,570)
Total stockholders' equity	7,094,608	7,548,958
Total liabilities and stockholders' equity	$ 9,574,243	$ 11,006,318

Consolidated Statements of Stockholders Equity and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Oct. 25, 2009	Oct. 26, 2008	Oct. 28, 2007
Common Stock
Statement [Line Items]
Beginning balance	$ 13,308	$ 13,857	$ 13,917
Beginning balance, shares	1,330,761	1,385,711	1,391,730
Components of comprehensive income (loss):
Issuance under stock plans, including tax benefits (detriment) of ($13,409), ($11,519), $48,870 for 2009, 2008 and 2007, respectively, and other	$ 121	$ 283	$ 544
Issuance under stock plans, including tax benefits (detriment) of ($13,409), ($11,519), $48,870 for 2009, 2008 and 2007, respectively, and other, shares	12,098	28,213	54,391
Treasury stock repurchases	$ (20)	$ (832)	$ (604)
Treasury stock repurchases, shares	(1,942)	(83,163)	(60,410)
Ending balance	$ 13,409	$ 13,308	$ 13,857
Ending balance, shares	1,340,917	1,330,761	1,385,711
Additional Paid-In Capital
Statement [Line Items]
Beginning balance	$ 5,095,894	$ 4,658,832	$ 3,678,202
Components of comprehensive income (loss):
Equity-based compensation	147,160	178,943	161,196
Issuance under stock plans, including tax benefits (detriment) of ($13,409), ($11,519), $48,870 for 2009, 2008 and 2007, respectively, and other	(47,617)	258,119	819,434
Ending balance	5,195,437	5,095,894	4,658,832
Treasury Stock
Statement [Line Items]
Beginning balance	(9,134,962)	(7,725,924)	(6,494,012)
Components of comprehensive income (loss):
Issuance under stock plans, including tax benefits (detriment) of ($13,409), ($11,519), $48,870 for 2009, 2008 and 2007, respectively, and other	111,286	90,114	99,481
Treasury stock repurchases	(22,886)	(1,499,152)	(1,331,393)
Ending balance	(9,046,562)	(9,134,962)	(7,725,924)
Retained Earnings
Statement [Line Items]
Beginning balance	11,601,288	10,863,291	9,472,303
Components of comprehensive income (loss):
Net income (loss)	(305,327)	960,746	1,710,196
Cumulative effect of adoption of interpretative tax guidance on uncertainties in income taxes		100,000
Change in measurement date to apply authoritative guidance on defined benefit plans	(1,942)
Dividends	(320,117)	(322,749)	(319,208)
Issuance under stock plans, including tax benefits (detriment) of ($13,409), ($11,519), $48,870 for 2009, 2008 and 2007, respectively, and other	(39,898)
Ending balance	10,934,004	11,601,288	10,863,291
Accumulated Other Comprehensive Income/(Loss)
Statement [Line Items]
Beginning balance	(26,570)	11,353	(19,010)
Components of comprehensive income (loss):
Change in unrealized net gain (loss) on investments	44,956	(41,739)	21,887
Change in unrealized net gain on derivative instruments	(7,729)	9,448	(5,728)
Change in minimum pension liability	(12,492)	(7,440)	3,462
Change in retiree medical benefit	(719)	1,866	(1,132)
Translation adjustments	874	(58)	9,583
Adjustment to initially apply authoritative guidance on defined benefit pension plans, net of tax of $959			2,291
Ending balance	$ (1,680)	$ (26,570)	$ 11,353

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Oct. 25, 2009	Oct. 26, 2008	Oct. 28, 2007
Cash flows from operating activities:
Net income (loss)	$ (305,327)	$ 960,746	$ 1,710,196
Adjustments required to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	291,203	320,051	268,334
Loss on fixed asset retirements	24,017	6,826	21,401
Provision for bad debts	62,539	2,456	858
Restructuring and asset impairments	155,788	39,948	26,421
Acquired in-process research and development expense	0	0	4,900
Pretax loss of equity-method investment	34,983	35,527	29,371
Impairment of investments	84,480	0	0
Net recognized loss on investments	10,231	4,392	5,460
Deferred income taxes	18,863	(58,259)	31,642
Excess tax benefits from equity-based compensation plans	0	(7,491)	(49,793)
Equity-based compensation	147,160	178,943	161,196
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable	586,993	421,834	33,401
Inventories	359,560	(638,256)	140,933
Other current assets	94,740	94,247	(164,289)
Other assets	(6,530)	(394)	3,359
Accounts payable and accrued expenses	(660,006)	(260,041)	(107,220)
Customer deposits and deferred revenue	(361,455)	622,645	94,747
Income taxes payable	(288,283)	8,126	(23,968)
Other liabilities	83,709	(20,832)	22,347
Cash provided by operating activities	332,665	1,710,468	2,209,296
Cash flows from investing activities:
Capital expenditures	(248,427)	(287,906)	(264,784)
Cash paid for acquisitions, net of cash acquired	0	(235,324)	(599,653)
Proceeds from sale of facility	0	42,210	0
Proceeds from disposition of assets held for sale	0	0	37,611
Proceeds from sales and maturities of investments	1,317,365	5,939,509	3,053,640
Purchases of investments	(956,249)	(5,534,475)	(3,203,427)
Cash provided by (used in) investing activities	112,689	(75,986)	(976,613)
Cash flows used for financing activities:
Short-term debt repayments	(750)	(2,117)	(99)
Long-term debt repayments	0	0	(202,040)
Proceeds from common stock issuances	61,824	393,978	898,025
Common stock repurchases	(22,906)	(1,499,984)	(1,331,997)
Excess tax benefit from equity-based compensation plans	0	7,491	49,794
Payments of dividends to stockholders	(319,507)	(325,405)	(305,672)
Cash used in financing activities	(281,339)	(1,426,037)	(891,989)
Effect of exchange rate changes on cash and cash equivalents	742	457	565
Increase in cash and cash equivalents	164,757	208,902	341,259
Cash and cash equivalents - beginning of year	1,411,624	1,202,722	861,463
Cash and cash equivalents - end of year	1,576,381	1,411,624	1,202,722
Supplemental cash flow information:
Cash payments for income taxes, net	134,240	368,459	845,756
Cash payments for interest	$ 14,372	$ 14,580	$ 29,104

Summary of Significant Accounting Policies

12 Months Ended

Oct. 25, 2009

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies


Note 1	Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (Applied or the Company) after elimination of intercompany balances and transactions. All references to a fiscal year apply to Applied’s fiscal year which ends on the last Sunday in October. Fiscal 2009, 2008 and 2007 contained 52 weeks each. Each fiscal quarter of 2009, 2008 and 2007 contained 13 weeks.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Prior year amounts for customer deposits and deferred revenue have been reclassified to conform to the current year presentation.

During fiscal 2009, Applied implemented authoritative guidance and changed the measurement date for its defined and postretirement benefit plan assets and obligations from an interim date to Applied’s fiscal year end. Accordingly, Applied recorded a $2 million (after tax) adjustment to the fiscal 2009 beginning balance of retained earnings.

Cash Equivalents

All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consists primarily of investments in institutional money market funds.

Investments

All of Applied’s investments are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are recorded at fair value based upon quoted market prices, and any temporary difference between the cost and fair value of an investment is presented as a separate component of accumulated other comprehensive income (loss). The specific identification method is used to determine the gains and losses on investments.

Inventories

Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out (FIFO) basis.

Property, Plant and Equipment

Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 3 to 5 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 15 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term.

Intangible Assets

Goodwill and indefinite-lived assets are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year. Purchased technology and other intangible assets are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method.

Long-Lived Assets

Applied reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Applied assesses these assets for impairment based on estimated future cash flows from these assets.

Research, Development and Engineering Costs

Research, development and engineering costs are expensed as incurred.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were not material for all periods presented.

Sales and Value Added Taxes

Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the accompanying Consolidated Statements of Operations.

Income Taxes

Income tax expense is based on pretax earnings. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of recorded assets and liabilities, net operating losses and tax credit carryforwards.

Revenue Recognition

Applied recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is reasonably assured. Applied’s shipping terms are customarily FOB Applied shipping point or equivalent terms. Applied’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Applied recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred based on the estimated fair value, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer technical acceptance; (3) for transactions where legal title does not pass at shipment, revenue is recognized when legal title passes to the customer, which is generally at customer technical acceptance; and (4) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred at their estimated relative fair values until delivery of the deferred elements. In cases where Applied has sold products that have been demonstrated to meet product specifications prior to shipment, Applied believes that at the time of delivery, it has an enforceable claim to amounts recognized as revenue. The completed contract method is used for SunFab^tm Thin Film Lines. Certain SunFab Thin Film contracts have provisions for additional amounts to become due to Applied if the line achieves certain output criteria subsequent to factory acceptance. Any additional amounts earned under these contracts are recognized upon achievement. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided.

Derivative Financial Instruments

Applied uses financial instruments, such as forward exchange and currency option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. All of Applied’s derivative financial instruments are recorded at fair value based upon quoted market prices for comparable instruments. For derivative instruments designated and qualifying as cash flow hedges of anticipated foreign currency denominated transactions, the effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is ineffective, the gain or loss on the associated financial instrument is recorded promptly in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gain or loss on these hedges is recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged. Applied does not use derivative financial instruments for trading or speculative purposes.

Foreign Currency Translation

As of October 25, 2009, primarily all of Applied’s subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are translated using historical exchange rates. Revenues and costs are translated using average exchange rates for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation gains and losses are included in the Consolidated Statements of Operations as incurred.

Concentrations of Credit Risk

Financial instruments that potentially subject Applied to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. Applied invests in a variety of financial instruments, such as, but not limited to, certificates of deposit, corporate and municipal bonds, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. Applied performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral to secure accounts receivable. Applied maintains an allowance reserve for potentially uncollectible accounts receivable based on its assessment of the collectibility of accounts receivable. Applied regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, Applied utilizes letters of credit to mitigate credit risk when considered appropriate. Applied is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments, but does not expect any counterparties to fail to meet their obligations.

Equity-Based Compensation

Applied has adopted stock plans that permit grants to employees of equity-based awards, including stock options, restricted stock and restricted stock units (also referred to as “performance shares” under the Applied Materials, Inc. Employee Stock Incentive Plan). In addition, the Employee Stock Incentive Plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of equity-based awards to consultants. Applied also has an Employee Stock Purchase Plan for United States employees, and a second Employee Stock Purchase Plan for international employees (collectively, ESPP), which enable eligible employees to purchase Applied common stock.

During fiscal 2009, 2008 and 2007, Applied recognized total equity-based compensation expense related to stock options, ESPP shares, restricted stock units and restricted stock of $147 million (or $0.08 per diluted share), $179 million (or $0.09 per diluted share) and $161 million (or $0.08 per diluted share), respectively. During fiscal 2009, 2008 and 2007, Applied recognized income tax benefits related to equity-based compensation of $41 million, $50 million and $45 million, respectively. The equity-based compensation expense related to restricted stock units and restricted stock for fiscal 2009, 2008 and 2007 was $115 million, $137 million and $104 million, respectively. The cost associated with Applied’s stock options and restricted stock units less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with Applied’s performance-based equity awards are recognized over the service for each tranche.

Stock Options

The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Most options are scheduled to vest over four years and expire no later than seven years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. Applied’s employee stock options have characteristics significantly different from those of publicly traded options. The weighted average assumptions used in the model are outlined in the following table:


Fiscal Year	2009			2008			2007

Stock Options:
Dividend yield		2.8	%		1.24	%		1.12	%
Expected volatility		49.9	%		32.1	%		31.5	%
Risk-free interest rate		1.26	%		2.92	%		4.66	%
Expected life (in years)		3.0			3.9			3.9

The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, Applied periodically reviews historical employee exercise behavior with respect to option grants with similar vesting periods.

Options outstanding had an aggregate intrinsic value of $109 million, $0.6 million and $190 million at October 25, 2009, October 26, 2008 and October 28, 2007, respectively. The total grant date fair value of options granted during fiscal 2009, 2008 and 2007 was $62 million, $34,000 and $2 million, respectively. The total intrinsic value of options exercised during fiscal 2009, 2008 and 2007 was $1 million, $54 million and $141 million, respectively. The total fair value of options that vested during fiscal 2009, 2008 and 2007 was $14 million, $55 million and $124 million, respectively. At October 25, 2009, Applied had $42 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock option plans that will be recognized over the weighted average period of 1.3 years. Cash received from stock option exercises was $9 million, $328 million and $837 million, respectively, during fiscal 2009, 2008 and 2007. The actual tax benefit realized for the tax deductions from options exercised for fiscal 2009, 2008 and 2007 totaled $22 million, $57 million and $50 million, respectively.

Employee Stock Purchase Plans

Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning of the applicable offering period or at the end of each applicable purchase period. Effective March 2, 2009, the length of offering periods under the ESPP was reduced to 6 months from a maximum of 24 months in duration. The incremental compensation cost associated with this modification was insignificant. The number of shares issued under the ESPP during fiscal 2009, 2008 and 2007 was 6,920,000 shares, 4,617,000 shares and 4,310,000 shares, respectively. Based on the Black-Scholes option pricing model, the weighted average estimated fair value of purchase rights under the ESPP was $3.19 per share for the year ended October 25, 2009, $4.97 per share for the year ended October 26, 2008 and $4.83 per share for the year ended October 28, 2007. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:


Fiscal Year	2009			2008			2007

ESPP:
Dividend yield		2.37	%		1.21	%		1.18	%
Expected volatility		58.8	%		29.9	%		28.5	%
Risk-free interest rate		0.33	%		4.16	%		4.93	%
Expected life (in years)		0.5			1.25			1.25

Restricted Stock Units and Restricted Stock

Restricted stock units are converted into shares of Applied common stock upon vesting on a one-for-one basis. Restricted stock units typically vest over three to four years. Vesting of restricted stock units usually is subject to the grantee’s continued service with Applied. The compensation expense related to these awards is determined using the fair value of Applied common stock on the date of the grant, and compensation is recognized over the vesting period. At October 25, 2009, Applied had $136 million total unrecognized compensation expense, net of estimated forfeitures, related to restricted stock unit grants, which will be recognized over the weighted average period of 1.2 years (see Note 10).

Beginning in fiscal 2007, Applied initiated a performance-based equity award program for named executive officers and other key employees. These awards vest only if specific performance goals set by the Human Resources and Compensation Committee of Applied’s Board of Directors (the Committee) are achieved and if the grantee remains employed by Applied through the applicable vesting date. The performance goals require the achievement of targeted relative annual operating profit margin levels as compared to Applied’s peer companies in at least one of the four fiscal years beginning with the fiscal year of the grant. There were no performance-based awards granted in fiscal 2009. The Committee approved grants of 1,565,000 and 1,950,000 performance-based restricted stock units under this program for fiscal 2008 and fiscal 2007, respectively. The Committee also approved the issuance to Applied’s President and Chief Executive Officer of performance-based restricted stock in the amounts of 100,000 and 150,000 shares for fiscal 2008 and fiscal 2007, respectively, at $0.01 per share. The fair value of the performance-based restricted stock units and restricted stock is estimated using the fair market value of Applied common stock on the date of the grant and assumes that the performance goals will be achieved. If achieved, the award vests over a specified remaining service period. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. As of October 25, 2009, 70% of the performance goals associated with the fiscal 2008 awards were achieved. The performance goals associated with the remaining 30% may still be achieved, depending on future performance, during fiscal 2010. The performance goals associated with the fiscal 2007 awards were achieved prior to fiscal 2009. Fiscal 2009 equity-based compensation expense included $13 million attributable to the performance-based awards granted in fiscal 2008 and fiscal 2007. Fiscal 2008 equity-based compensation expense included $21 million attributable to the performance-based awards granted in fiscal 2008 and fiscal 2007. Fiscal 2007 equity-based compensation expense included $13 million attributable to the performance-based awards granted in fiscal 2007.

Earnings Per Share

Basic earnings (loss) per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units, and ESPP shares) outstanding during the period. Applied’s net income (loss) has not been adjusted for any period presented for purposes of computing basic or diluted earnings (loss) per share due to the Company’s non-complex capital structure.

For purposes of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair market value of Applied common stock for the period, as the effect would be anti-dilutive. Accordingly, options to purchase 36,423,000 and 51,094,000 shares of common stock for the fiscal years ended October 26, 2008 and October 28, 2007, respectively, were excluded from the computation. Potential common shares have not been included in the calculation of diluted net loss per share for the year ended October 25, 2009, as the effect would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for fiscal 2009 are the same. The number of potential common shares that were excluded from the computation of diluted earnings per share was 85,049,000 for fiscal 2009.

Recent Accounting Pronouncements

In October 2009, the FASB issued authoritative guidance for revenue recognition with multiple deliverables. This authoritative guidance impacts the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting. Additionally, this guidance modifies the manner in which the transaction consideration is allocated across the separately identified deliverables by no longer permitting the residual method of allocating arrangement consideration. Applied will adopt this authoritative guidance prospectively commencing in its first quarter of fiscal 2010. The implementation is not expected to have a material impact on Applied’s financial position or results of operations.

In October 2009, the FASB issued authoritative guidance for the accounting for certain revenue arrangements that include software elements. This authoritative guidance amends the scope of pre-existing software revenue guidance by removing from the guidance non-software components of tangible products and certain software components of tangible products. Applied will adopt this authoritative guidance prospectively commencing in its first quarter of fiscal 2010. The implementation is not expected to have a material impact on Applied’s financial position or results of operations.

In June 2009, the FASB issued authoritative guidance on variable interest entities, which becomes effective the first annual reporting period after November 15, 2009 and will be effective for Applied in fiscal 2011. This authoritative guidance requires revised evaluations of whether entities represent variable interest entities, ongoing assessments of control over such entities, and additional disclosures for variable interests. Applied is evaluating the potential impact of the implementation of this authoritative guidance on its consolidated financial statements.

In April 2009, the FASB issued authoritative guidance on accounting for assets acquired and liabilities assumed in a business combination that arise from contingencies, which amends the provisions related to the initial recognition and measurement, subsequent measurement and disclosure of assets and liabilities arising from contingencies in a business combination under previously issued guidance. The authoritative guidance requires that such contingencies be recognized at fair value on the acquisition date if fair value can be reasonably estimated during the allocation period. This authoritative guidance will be effective for Applied in fiscal 2010. Applied expects that this authoritative guidance will have an impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, term and size of the acquired contingencies.

In December 2008, the FASB issued authoritative guidance on employer’s disclosures about plan assets of a defined benefit pension or other postretirement plan. Applied will comply with this authoritative guidance in fiscal 2010.

In December 2007, the FASB revised the authoritative guidance on business combinations, including the measurement of acquirer shares issued in consideration for a business combination, the recognition of contingent consideration, the accounting for preacquisition gain and loss contingencies, the recognition of capitalized in-process research and development, the accounting for acquisition-related restructuring cost accruals, the treatment of acquisition-related transaction costs, and the recognition of changes in the acquirer’s income tax valuation allowance. This authoritative guidance will be effective for Applied in fiscal 2010, with early adoption prohibited. Applied expects that this authoritative guidance will have an impact on its consolidated financial statements, but the nature and magnitude of the specific effects will depend upon the nature, terms and size of the acquisitions it consummates after the effective date.

In December 2007, the FASB issued authoritative guidance on noncontrolling interests, which changes the accounting for noncontrolling (minority) interests in consolidated financial statements, including the requirements to classify noncontrolling interests as a component of consolidated stockholders’ equity, and the elimination of “minority interest” accounting in results of operations with earnings attributable to noncontrolling interests reported as part of consolidated earnings. Additionally, this authoritative guidance revises the accounting for both increases and decreases in a parent’s controlling ownership interest. This authoritative guidance will be effective for Applied in fiscal 2010, with early adoption prohibited. Applied is evaluating the potential impact of the implementation of this authoritative guidance on its financial position or results of operations.

In September 2006, the FASB issued authoritative guidance for fair value measurements, which defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. In February 2008, the FASB issued authoritative guidance on fair value measurements for purposes of lease classification, which amends previously issued guidance on fair value measurements to remove certain leasing transactions from its scope. The FASB also issued authoritative guidance on the effective date of fair value measurements, which delays the effective date for Applied for all non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually), until the beginning of Applied’s first quarter of fiscal 2010. The measurement and disclosure requirements related to financial assets and financial liabilities were effective for Applied beginning in the first quarter of fiscal 2009. In October 2008, the FASB issued authoritative guidance that clarifies the application of fair value measurements in a market that is not active, and provides guidance on the key considerations in determining the fair value of a financial asset when the market for that financial asset is not active. Applied adopted the effective portions of fair value measurements beginning in the first quarter of fiscal 2009. See Note 3 for information and related disclosures regarding Applied’s fair value measurements.

Financial Instruments and Fair Value

12 Months Ended

Oct. 25, 2009

Financial Instruments and Fair Value [Abstract]

Financial Instruments and Fair Value


Note 3	Financial Instruments and Fair Value

Investments

Investments by security type at October 25, 2009 were as follows:


			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
			(In thousands)

U.S. Treasury and agency securities	$	653,627	$	8,013	$	170	$	661,470
Obligations of states and political subdivisions		419,640		7,597		—		427,237
U.S. commercial paper, corporate bonds and medium-term notes		382,550		5,676		281		387,945
Other debt securities		103,193		1,430		391		104,232

Total fixed income securities		1,559,010		22,716		842		1,580,884
Publicly traded equity securities		9,572		9,439		—		19,011
Equity investments in privately-held companies		90,619		—		—		90,619

Total	$	1,659,201	$	32,155	$	842	$	1,690,514

Investments by security type at October 26, 2008 were as follows:


			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
			(In thousands)

U.S. Treasury and agency securities	$	583,979	$	5,839	$	1,257	$	588,561
Obligations of states and political subdivisions		749,225		1,993		2,824		748,394
U.S. commercial paper, corporate bonds and medium-term notes		382,054		141		14,903		367,292
Other debt securities		255,777		535		11,507		244,805
Bank certificate of deposit		342		—		2		340

Total fixed income securities		1,971,377		8,508		30,493		1,949,392
Publicly traded equity securities		29,165		—		17,205		11,960
Equity investments in privately-held companies		94,748		—		—		94,748

Total	$	2,095,290	$	8,508	$	47,698	$	2,056,100

Cash and cash equivalents included investments in debt and other securities of $228 million at October 25, 2009 and $224 million at October 26, 2008. Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Contractual maturities of investments at October 25, 2009 were as follows:


			Estimated
	Cost		Fair Value
	(In thousands)

Due in one year or less	$	613,452	$	617,153
Due after one through five years		834,091		850,631
Due after five years		8,274		8,868
No single maturity date*		203,384		213,862

	$	1,659,201	$	1,690,514


*		Securities with no single maturity date include publicly traded and privately held equity securities, asset and mortgage-backed securities.

The following table provides the gross unrealized losses and the fair market value of Applied’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of October 25, 2009.


	In Loss Position for				In Loss Position for
	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
					(In thousands)

U.S. Treasury and agency securities	$	140,553	$	170	$	2,587	$	—	$	143,140	$	170
Obligations of states and political subdivisions		4,019		—		—		—		4,019		—
U.S. commercial paper, corporate bonds and medium-term notes		111,211		195		14,909		86		126,120		281
Other debt securities		13,730		73		14,114		318		27,844		391

Total	$	269,513	$	438	$	31,610	$	404	$	301,123	$	842

At October 25, 2009, Applied had a gross unrealized loss of $1 million due to a decrease in the fair value of certain fixed income securities. Applied regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. Generally, the contractual terms of the investments do not permit settlement at prices less than the amortized cost of the investments. In fiscal 2009, Applied recognized an impairment of its marketable securities in the amount of $2 million. Applied has determined that the gross unrealized losses on its investments at October 25, 2009 are temporary in nature. Accordingly, Applied does not consider the investments to be other-than-temporarily impaired at October 25, 2009.

Applied manages its cash equivalents and investments, excluding strategic investments, as a single portfolio of highly marketable securities that is intended to be available to meet Applied’s current cash requirements. For fiscal 2009, gross realized gains on sales of investments were $9 million, and gross realized losses were $10 million. For fiscal 2008, gross realized gains on sales of investments were $13 million, and gross realized losses were $15 million. For fiscal 2007, gross realized gains on sales of investments were $2 million, and gross realized losses were $2 million.

On October 27, 2008, Applied adopted authoritative guidance for fair value measurements and the fair value option for financial assets and liabilities. This authoritative guidance defines fair value, establishes a framework for measuring fair value and enhances disclosure requirements for fair value measurements. Fair value is defined under this authoritative guidance as the exchange price that would be received for an asset, or paid to transfer a liability (an exit price), in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under this guidance must maximize the use of observable inputs and minimize the use of unobservable inputs. This authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, which may be used to measure fair value:


	•	Level 1 — Quoted prices in active markets for identical assets or liabilities;

	•	Level 2 — Observable inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

	•	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Applied’s investments are comprised primarily of debt securities that are classified as available-for-sale and recorded at their fair value. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value.

In general, investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. As of October 25, 2009, a substantial majority of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs.

Unrealized gains and temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive income (loss), net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive income (loss) to results of operations.

Financial Assets/Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities (excluding cash balances) measured at fair value on a recurring basis are summarized below as of October 25, 2009:


	Level 1		Level 2			Level 3		Total
			(In thousands)

Assets
Money market funds	$	1,235,254	$	—		$	—	$	1,235,254
U.S. Treasury and agency securities		145,166		516,304			—		661,470
Obligations of states and political subdivisions		—		427,237			—		427,237
U.S. commercial paper, corporate bonds and medium-term notes		—		387,945			—		387,945
Other debt securities		—		104,232			—		104,232
Publicly traded equity securities		19,011		—			—		19,011
Foreign exchange derivative assets		—		2,173			—		2,173

Total	$	1,399,431	$	1,437,891		$	—	$	2,837,322

Liabilities
Foreign exchange derivative liabilities	$	—	$	(1,678	)	$	—	$	(1,678	)

Total	$	—	$	(1,678	)	$	—	$	(1,678	)

During fiscal 2009, Level 3 assets consisted of asset-backed and mortgage-backed securities, which values were based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. The following table presents the changes in Level 3 instruments for the fiscal year ended October 25, 2009:


	Level 3
	(In thousands)

Balance, October 26, 2008	$	13,100
Total realized and unrealized losses:
Included in earnings		(1,856	)
Included in other comprehensive loss		(1,152	)
Purchases, sales, and maturities		(9,606	)
Transfers out of Level 3, net		(486	)

Balance, October 25, 2009	$	—

Financial Assets/Liabilities Measured at Fair Value on a Non-recurring Basis

Equity investments in privately-held companies are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. If Applied determines that an other-than-temporary impairment has occurred, the investment will be written down to its estimated fair value based on available information, such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. Equity investments in privately-held companies totaled $91 million at October 25, 2009, of which $52 million of investments were accounted for under the cost method of accounting and $39 million of investments had been measured at fair value on a non-recurring basis during fiscal 2009 due to an other-than-temporary decline in value. The following table presents the balance of equity securities at October 25, 2009 that had been measured at fair value on a non-recurring basis, using the process described above, and the impairment charges recorded during the twelve months then ended:


							Total
							Impairment
	Level 1		Level 2		Level 3		for 2009
			(In thousands)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2009	$	—	$	—	$	39,250	$	17,529

Impairments associated with financial assets for fiscal 2009 totaled $84 million and consisted of the following: equity method investment in Sokudo Co., Ltd., a Japanese joint venture company, $45 million; publicly traded equity securities, $20 million; equity investments in privately-held companies, $17 million; and marketable securities of $2 million.

Derivative Financial Instruments

Derivative instruments and hedging activities, including foreign currency exchange contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or accounts payable and accrued expenses.

Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as Japanese yen, euro, Israeli shekel and Swiss francs. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied does not use derivative financial instruments for trading or speculative purposes.

Applied uses derivative financial instruments, such as forward exchange contracts and currency option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically within the next 24 months. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income or loss (AOCI) in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to derivative instruments included in AOCI at October 25, 2009 is expected to be reclassified into earnings within 12 months. Changes in the fair value of currency forward exchange and option contracts due to changes in time value are excluded from the assessment of effectiveness. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized promptly in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in general and administrative expenses. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was $25 million for the fiscal 2009. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was not significant for fiscal 2008 or 2007.

Forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged.

Fair values of derivative instruments were as follows:

October 25, 2009

Asset Derivatives

Liability Derivatives

Balance Sheet

Location

Fair Value

Location

Fair Value

(In thousands)

Derivatives Designated as Hedging Instruments

Foreign exchange contracts

Other current
assets

1,811

Accounts payable
and accrued
expenses

1,225

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts

Other current
assets

362

Accounts payable
and accrued
expenses

453

Total derivatives

2,173

1,678

The effect of derivative instruments on the Consolidated Condensed Statement of Operations for the fiscal year ended October 25, 2009 was as follows:


	2009
	Effective Portion							Ineffective Portion and Amount Excluded from Effectiveness Testing
				Location of Gain	Gain or (Loss)			Location of Gain
	Gain or (Loss)			or (Loss)	Reclassified from			or (Loss)	Gain or (Loss)
	Recognized in			Reclassified from	AOCI into			Recognized in	Recognized in
	AOCI			AOCI into Income	Income			Income	Income
	(In thousands)

Derivatives in Cash Flow Hedging Relationships
Foreign exchange contracts	$	(3,467	)	Cost of products sold	$	(11,676	)	Cost of products sold	$	(3,352	)
Foreign exchange contracts		—		General and administrative		(5,511	)	General and administrative		23,582
Foreign exchange contracts		—		Research, development and engineering		(327	)	Research, development and engineering		—

Total	$	(3,467	)		$	(17,514	)		$	20,230


	2009
	Location of Gain or	Amount of Gain or
	(Loss) Recognized	(Loss) Recognized
	in Income	in Income

Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	General and administrative	$	(9,848	)

Total		$	(9,848	)

Derivative-related activity in accumulated other comprehensive loss, net of taxes, was as follows:


	2009			2008
	(In thousands)

Unrealized gain (loss) on derivative instruments at beginning of period	$	8,039		$	(1,409	)
Increase (decrease) in fair value of derivative instruments		(10,591	)		11,899
(Gain) loss reclassified into earnings, net		2,862			(2,451	)

Unrealized gain, net, on derivative instruments at end of period	$	310		$	8,039

The $25 million recognized in fiscal 2009, due to discontinuance of cash flow hedges, has been presented on a net basis in the accumulated other comprehensive loss activity above.

Credit Risk Contingent Features

If Applied’s credit rating were to fall below investment grade, it would be in violation of credit risk contingent provisions, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was immaterial as of October 25, 2009.

Entering into foreign exchange contracts with banks exposes Applied to credit-related losses in the event of the banks’ nonperformance. However, Applied’s exposure is not considered significant.

For further details, see Note 9 of Notes to Consolidated Condensed Financial Statements.

Fair Value of Financial Instruments

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, accounts receivable, notes payable, and accounts payable and accrued expenses, approximate fair value due to the short maturities of these financial instruments. At October 25, 2009, the carrying amount of long-term debt was $202 million and the estimated fair value was $216 million. At October 26, 2008, the carrying amount of long-term debt was $203 million and the estimated fair value was $198 million. The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues.

Goodwill, Purchased Technology and Other Intangible Assets

12 Months Ended

Oct. 25, 2009

Goodwill, Purchased Technology and Other Intangible Assets [Abstract]

Goodwill, Purchased Technology and Other Intangible Assets


Note 5	Goodwill, Purchased Technology and Other Intangible Assets

Goodwill and Purchased Intangible Assets

Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. For goodwill, Applied performs a two-step impairment test. In the first step, Applied compares the estimated fair value of each reporting unit to its carrying value. Applied’s reporting units are consistent with the reportable segments identified in Note 12, based on the manner in which Applied operates its business and the nature of those operations. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. Under the income approach, Applied calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Under the market approach, Applied estimates the fair value based on market multiples of revenue or earnings for comparable companies. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then Applied would perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. Applied would then allocate the fair value of the reporting unit to all of the assets and liabilities of that unit, as if Applied had acquired the reporting unit in a business combination, with the fair value of the reporting unit being the “purchase price”. The excess of the “purchase price” over the carrying amounts assigned to assets and liabilities representing the implied fair value of goodwill. If Applied determined that the carrying value of a reporting unit’s goodwill exceeded its implied fair value, Applied would record an impairment loss equal to the difference.

Applied conducted these impairment tests in the fourth quarter of fiscal 2009, and the results of these tests indicated that Applied’s goodwill and purchased intangible assets with indefinite useful lives were not impaired.

Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the cost of the acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to a reporting unit as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process.

Details of indefinite-lived intangible assets were as follows:


	2009								2008
				Other								Other
				Intangible								Intangible
	Goodwill			Assets		Total			Goodwill			Assets		Total
	(In thousands)

Gross carrying amount	$	1,216,802		$	17,860	$	1,234,662		$	1,220,543		$	17,860	$	1,238,403
Accumulated amortization		(45,870	)		—		(45,870	)		(45,870	)		—		(45,870	)

	$	1,170,932		$	17,860	$	1,188,792		$	1,174,673		$	17,860	$	1,192,533

From October 26, 2008 to October 25, 2009, goodwill decreased by $4 million primarily due to an adjustment in the purchase price allocation of an acquisition as a result of a change in estimate of Applied’s ability to utilize tax net operating loss carryforwards associated with this acquisition. Other intangible assets that are not subject to amortization consist primarily of a trade name. As of October 25, 2009, indefinite-lived intangible assets by reportable segment were: Energy and Environmental Solutions, $654 million; Silicon, $224 million; Applied Global Services, $195 million; and Display, $116 million.

Finite-Lived Purchased Intangible Assets

Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years.

Applied evaluates long-lived assets, such as property, plant and equipment, and purchased intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach.

Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environment, technological advances, and changes in cost structure.

Details of amortized intangible assets were as follows:


	2009									2008
				Other									Other
	Purchased			Intangible						Purchased			Intangible
	Technology			Assets			Total			Technology			Assets			Total
	(In thousands)

Gross carrying amount	$	554,920		$	329,629		$	884,549		$	548,029		$	329,629		$	877,658
Accumulated amortization		(400,093	)		(195,900	)		(595,993	)		(369,183	)		(137,906	)		(507,089	)

	$	154,827		$	133,729		$	288,556		$	178,846		$	191,723		$	370,569

Aggregate amortization expense was $89 million, $121 million and $57 million for fiscal 2009, 2008 and 2007, respectively. As of October 25, 2009, future estimated amortization expense is expected to be $65 million for fiscal 2010, $52 million for fiscal 2011, $47 million for fiscal 2012, $43 million for fiscal 2013, $39 million for fiscal 2014, and $42 million thereafter. As of October 25, 2009, amortized intangible assets by reportable segment were: Energy and Environmental Solutions, $211 million; Applied Global Services, $42 million; Display, $29 million; and Silicon, $7 million.

Employee Benefit Plans

12 Months Ended

Oct. 25, 2009

Employee Benefit Plans [Abstract]

Employee Benefit Plans


Note 10	Employee Benefit Plans

Stock Options

Applied grants options to purchase shares of its common stock to employees and consultants, at future dates, at the fair market value on the date of grant. Most options are scheduled to vest over four years, and expire no later than seven years from the grant date. There were 151,809,000 shares available for grant at October 25, 2009, 167,289,000 shares available for grant at October 26, 2008, and 156,322,624 shares available for grant at October 28, 2007. Stock option activity was as follows:


	2009					2008					2007
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
	(In thousands, except per share amounts)

Outstanding, beginning of year		60,757		$	17.71		94,901		$	17.81		163,214		$	18.83
Granted and assumed		24,514		$	8.58		7		$	19.38		311		$	17.98
Exercised		(797	)	$	11.44		(19,004	)	$	17.27		(46,885	)	$	17.86
Canceled		(11,373	)	$	17.73		(15,147	)	$	18.86		(21,739	)	$	25.29

Outstanding, end of year		73,101		$	14.72		60,757		$	17.71		94,901		$	17.81

Exercisable, end of year		49,727		$	17.53		57,671		$	17.73		83,178		$	17.84

The following table summarizes information with respect to options outstanding and exercisable at October 25, 2009:


	Options Outstanding								Options Exercisable
					Weighted
			Weighted		Average						Weighted
			Average		Remaining		Aggregate				Average		Aggregate
Range of	Number of		Exercise		Contractual		Intrinsic		Number of		Exercise		Intrinsic
Exercise Prices	Shares		Price		Life		Value		Shares		Price		Value
	(In thousands)				(In years)		(In thousands)		(In thousands)				(In thousands)

$0.01 — $9.99		23,171	$	8.58		4.33	$	101,311		241	$	8.27	$	1,125
$10.00 — $19.99		35,123	$	15.72		1.82		7,573		34,679	$	15.71		7,516
$20.00 — $29.99		14,798	$	21.93		1.14		—		14,798	$	21.93		—
$30.00 — $59.99		9	$	41.66		0.35		—		9	$	41.66		—

		73,101	$	14.72		2.48	$	108,884		49,727	$	17.53	$	8,641

Options exercisable and expected to become exercisable		70,465	$	14.93		2.41	$	97,910

Restricted Stock Units

Applied grants restricted stock units (also referred to as “performance shares” under the Applied Materials, Inc. Employee Stock Incentive Plan). Restricted stock units typically vest over three to four years, subject to the grantee’s continued service to Applied on each vesting date.

A summary of the changes in restricted stock units outstanding under Applied’s equity compensation plans during fiscal 2009 is presented below:


				Weighted		Weighted
				Average		Average		Aggregate
				Grant Date		Remaining		Intrinsic
	Shares			Fair Value		Contractual Term		Value
	(In thousands, except per share amounts)

Non-vested restricted stock units at October 26, 2008		16,394		$	18.50		2.5 Years	$	186,887
Granted		3,775			10.46
Vested		(6,366	)		18.26
Canceled		(1,855	)		18.40

Non-vested restricted stock units at October 25, 2009		11,948			15.95		2.4	$	153,880

Non-vested restricted stock units expected to vest		10,446			16.37		2.4	$	135,281

Employee Stock Purchase Plans

Applied sponsors two Employee Stock Purchase Plans (collectively, ESPP) for the benefit of United States (U.S.) and international employees, respectively. The U.S. plan is qualified under Section 423 of the Internal Revenue Code. Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning of the applicable offering period or at the end of each applicable purchase period. Effective March 2, 2009, the length of offering periods under the ESPP was reduced to 6 months, from a maximum of 24 months in duration. The incremental compensation cost associated with this modification was insignificant. ESPP contributions are limited to a maximum of 10 percent of an employee’s eligible compensation, up to a maximum of $6,500 per six-month purchase period. ESPP participants are also limited to purchasing a maximum of 1,000 shares per purchase period. Shares issued under the ESPP were 6,920,000 for fiscal 2009, 4,617,000 for fiscal 2008, and 4,310,000 for fiscal 2007. At October 25, 2009, there were 64,822,000 shares available for future issuance under the ESPP.

Employee Bonus Plans

Applied has various employee bonus plans. A discretionary bonus plan provides for the distribution of a percentage of pre-tax profits to Applied employees who are not eligible for other performance-based incentive plans, up to a maximum percentage of eligible compensation. Other plans award annual bonuses to Applied’s executives and other key contributors based on the achievement of profitability and/or other specified performance criteria. There were no charges to expense under these plans for fiscal 2009. Charges to expense under these plans were $150 million for fiscal 2008 and $271 million for fiscal 2007.

Employee Savings and Retirement Plan

Applied’s Employee Savings and Retirement Plan (401(k) Plan) is qualified under Sections 401(a) and (k) of the Internal Revenue Code. Eligible employees may make salary deferral and catch-up contributions under the 401(k) Plan on a pre-tax basis. Applied matches a percentage of each participant’s salary deferral contributions with cash contributions. In general, these matching contributions become 20 percent vested at the end of an employee’s second year of service with Applied, and vest 20 percent per year of service thereafter, becoming fully vested at the end of six years of service. Participants may direct that funds held in their 401(k) Plan accounts, including any Applied matching contributions, be invested in any of the diversified investment funds available under the 401(k) Plan or in the Applied Materials, Inc. Common Stock Fund (Stock Fund), which invests solely in shares of Applied common stock. Effective June 21, 2007, the Stock Fund was converted into a non-leveraged employee stock ownership plan (within the meaning of Section 4975(e)(7) of the Internal Revenue Code) and, as a result, participants have the option of specifying that any future cash dividends paid on shares held in the Stock Fund be either reinvested in the Stock Fund or distributed directly to them in cash no later than 90 days after the calendar year for which the dividends were paid. Applied’s matching contributions under this plan were approximately $24 million, net of $1 million in forfeitures, for fiscal 2009; $29 million, net of $2 million in forfeitures, for fiscal 2008; and $28 million, net of $1 million in forfeitures, for fiscal 2007.

Defined Benefit Pension Plans of Foreign Subsidiaries and Other Post-Retirement Benefits

Several of Applied’s foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Benefits under these plans are typically based on years of service and final average compensation levels. The plans are managed in accordance with applicable local statutes and practices. Applied deposits funds for certain of these plans with insurance companies, pension trustees, government-managed accounts, and/or accrues the expense for the unfunded portion of the benefit obligation on its consolidated financial statements. Applied’s practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements as established by applicable local governmental oversight and taxing authorities. Depending on the design of the plan, local custom and market circumstances, the liabilities of a plan may exceed qualified plan assets. The differences between the aggregate projected benefit obligations and aggregate plan assets of these plans have been recorded as liabilities by Applied and are included in accrued expenses and other liabilities in the Consolidated Balance Sheets. In fiscal 2009, Applied changed the measurement date for its defined and postretirement benefit plan assets and obligations from an interim date to Applied’s fiscal year end.

On October 28, 2007, Applied implemented authoritative guidance that required Applied to recognize the funded status (the difference between the fair value of plan assets and the projected benefit obligations) of the defined benefit plan in the Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax, to measure the fair value of plan benefit obligations as of its fiscal year ending October 28, 2007 and to provide additional disclosures.

On January 1, 1999, Applied implemented a post-retirement plan that provides certain medical and vision benefits to eligible retirees who are at least age 55 and who have at least 10 years of service at their date of retirement. An eligible retiree may elect coverage for an eligible spouse or domestic partner who is not eligible for Medicare. Coverage under the plan generally ends for both the retiree and spouse or domestic partner upon becoming eligible for Medicare. Applied’s liability under this post-retirement plan, which was included in other long-term liabilities in the Consolidated Balance Sheets, was $11 million at October 25, 2009 and $9 million at October 26, 2008.

A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for fiscal 2009 and 2008 is presented below.


	2009			2008
	(In thousands, except percentages)

Change in projected benefit obligation
Beginning projected benefit obligation	$	230,754		$	258,754
Service cost		13,604			15,546
Interest cost		12,095			13,411
Plan participants’ contributions		1,174			1,336
Actuarial loss (gain)		11,316			(14,673	)
Curtailments, settlements and special termination benefits		(5,842	)		(1,445	)
Foreign currency exchange rate changes		21,789			(32,915	)
Benefits paid		(5,496	)		(9,345	)
Plan amendments and business combinations		—			85

Ending projected benefit obligation	$	279,394		$	230,754

Ending accumulated benefit obligation	$	253,934		$	203,247

Range of assumptions to determine benefit obligations
Discount rate		2.0% - 6.7%			2.3% - 6.7%
Rate of compensation increase		2.0% - 6.0%			2.0% - 6.0%
Change in plan assets
Beginning fair value of plan assets	$	97,578		$	118,061
Return on plan assets		2,608			(4,785	)
Employer contributions		14,996			14,400
Plan participants’ contributions		1,174			1,336
Foreign currency exchange rate changes		5,642			(20,925	)
Divestitures, settlements and business combinations		(6,895	)		(1,164	)
Benefits paid		(5,496	)		(9,345	)

Ending fair value of plan assets	$	109,607		$	97,578

Funded status	$	(169,787	)	$	(133,176	)
Employer contributions after the measurement date		—			1,204

Net amount recognized	$	(169,787	)	$	(131,972	)

Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	30		$	456
Current liability		(2,048	)		(2,548	)
Noncurrent liability		(167,769	)		(129,880	)

Total	$	(169,787	)	$	(131,972	)

Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year
Actuarial loss	$	1,145		$	694
Prior service credit		(251	)		(280	)
Transition obligation		54			74

Total	$	948		$	488

Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	27,580		$	14,023
Prior service credit		(1,943	)		(2,478	)
Transition obligation		157			248

Total	$	25,794		$	11,793

Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	270,425		$	223,746
Fair value of plan assets	$	100,608		$	90,245
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	237,174		$	181,980
Fair value of plan assets	$	89,443		$	82,367


	2009			2008

Plan assets — allocation
Equity securities		47	%		45	%
Debt securities		40	%		34	%
Real Estate		3	%		2	%
Cash		1	%		7	%
Other		9	%		12	%

Applied’s investment strategy for its defined benefit plans is to invest assets in a prudent manner, maintaining well-diversified portfolios with the long-term objective of meeting the obligations of the plans as they come due. Asset allocation decisions are typically made by plan fiduciaries with input from Applied’s pension committee. Applied’s asset allocation strategy incorporates a sufficient equity exposure in order for the plans to benefit from the expected long-term outperformance of equities relative to the plans’ liabilities. Applied retains investment managers, where appropriate, to manage the assets of the plans. Performance of investment managers is monitored by plan fiduciaries with the assistance of local investment consultants. The investment managers make investment decisions within the guidelines set forth by plan fiduciaries. Risk management practices include diversification across asset classes and investment styles, and periodic rebalancing toward target asset allocation ranges. Investment managers may use derivative instruments for efficient portfolio management purposes. Plan assets do not include any of Applied’s own equity or debt securities.

A summary of the components of net periodic benefit costs and the weighted average assumptions used for net periodic benefit cost and benefit obligation calculations for fiscal 2009, 2008 and 2007 is presented below.


	2009			2008			2007
	(In thousands, except percentages)

Components of net periodic benefit cost
Service cost	$	13,604		$	15,546		$	16,513
Interest cost		12,095			13,409			11,202
Expected return on plan assets		(7,187	)		(8,583	)		(6,050	)
Amortization of actuarial loss		634			561			1,492
Amortization of prior service costs (credit)		(294	)		231			414
Amortization of transition obligation		76			83			281
Settlement loss to be recognized		807			91			—
Curtailment loss (gain)		(1,379	)		—			629

Net periodic pension cost	$	18,356		$	21,338		$	24,481

Weighted average assumptions
Discount rate		2.3% - 6.7%			2.3% - 6.3%			2.3% - 5.8%
Expected long-term return on assets		2.5% - 8.3%			2.5% - 8.0%			2.5% - 8.0%
Rate of compensation increase		2.0% - 6.0%			2.0% - 6.0%			2.0% - 6.0%

Asset return assumptions are derived based on actuarial and statistical methodologies, from analysis of long-term historical data relevant to the country in which each plan is in effect and the investments applicable to the corresponding plan. The discount rate for each plan was derived by reference to appropriate benchmark yields on high quality corporate bonds, allowing for the approximate duration of both plan obligations and the relevant benchmark yields.

Future expected benefit payments for the pension plans and the post-retirement plan over the next ten fiscal years are: $8 million in fiscal 2010, $9 million in fiscal 2011, $10 million in fiscal 2012, $10 million in fiscal 2013, $15 million in fiscal 2014, and $83 million collectively for fiscal years 2015 through 2019. Company contributions to these plans for fiscal 2010 are expected to be approximately $10 million.

Executive Deferred Compensation Plans

Applied sponsors two unfunded deferred compensation plans, the Executive Deferred Compensation Plan (Predecessor EDCP) and the 2005 Executive Deferred Compensation Plan (2005 EDCP), under which certain employees may elect to defer a portion of their following year’s eligible earnings. The Predecessor EDCP was frozen as of December 31, 2004 such that no new deferrals could be made under the plan after that date and the plan would qualify for “grandfather” relief under Section 409A of the Internal Revenue Code. The Predecessor EDCP participant accounts continue to be maintained under the plan and credited with deemed interest. The 2005 EDCP was implemented by Applied effective as of January 1, 2005 and is intended to comply with the requirements of Section 409A of the Internal Revenue Code. Amounts payable, including accrued deemed interest, totaled $77 million at October 25, 2009 and $80 million at October 26, 2008, which were included in other long-term liabilities in the Consolidated Balance Sheets.

Income Taxes

12 Months Ended

Oct. 25, 2009

Income Taxes [Abstract]

Income Taxes


Note 11	Income Taxes

The components of income (loss) from operations before income taxes were as follows:


Fiscal Year	2009			2008		2007
	(In thousands)

U.S.	$	(555,456	)	$	1,021,961	$	2,047,318
Foreign		69,653			386,757		392,335

	$	(485,803	)	$	1,408,718	$	2,439,653

The components of the provision (benefit) for income taxes were as follows:


Fiscal Year	2009			2008			2007
	(In thousands)

Current:
U.S.	$	(196,643	)	$	248,308		$	590,289
Foreign		22,858			182,803			99,472
State		(36,683	)		5,314			8,054

		(210,468	)		436,425			697,815

Deferred:
U.S.		25,351			61,469			(17,314	)
Foreign		10,347			(43,505	)		16,888
State		(5,706	)		(6,417	)		32,068

		29,992			11,547			31,642

	$	(180,476	)	$	447,972		$	729,457

A reconciliation between the statutory U.S. federal income tax rate of 35 percent and Applied’s actual effective income tax rate is as follows:


Fiscal Year	2009			2008			2007

Tax provision at U.S. statutory rate		(35	)%		35.0	%		35.0	%
Favorable resolutions from audits of prior years’ income tax filings		(2.9	)		—			(1.0	)
Effect of foreign operations taxed at various rates		—			(1.0	)		(2.0	)
State income taxes, net of federal benefit		(3.9	)		0.7			1.1
Research and other tax credits		(2.0	)		(1.1	)		(0.6	)
Export sales/production benefit		—			(2.0	)		(1.3	)
Equity method investment loss/impairment		5.7			0.9			0.5
Equity compensation		2.4			1.0			0.5
Other		(1.5	)		(1.7	)		(2.3	)

		(37.2	)%		31.8	%		29.9	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows:


	2009			2008
	(In thousands)

Deferred tax assets:
Inventory reserves and basis difference	$	102,180		$	103,428
Installation and warranty reserves		44,802			51,992
Accrued liabilities		178,414			295,797
Restructuring reserves		16,510			7,539
Deferred revenue		24,631			13,499
Capital loss carryforward		11,049			15,000
Tax credits and net operating losses		84,075			33,536
Deferred compensation		29,041			30,122
Equity-based compensation		63,791			68,627
Intangibles		28,415			34,096

Gross deferred tax assets		582,908			653,636
Valuation allowance		(11,049	)		(15,000	)

Total deferred tax assets		571,859			638,636

Deferred tax liabilities:
Depreciation		(56,927	)		(54,177	)
Purchased technology		(98,717	)		(109,840	)
Other		(33,807	)		(29,359	)

Total gross deferred tax liabilities		(189,451	)		(193,376	)

Net deferred tax assets	$	382,408		$	445,260

The following table presents the breakdown between current and non-current net deferred tax assets and liabilities:


Deferred Income Taxes	2009			2008
	(In thousands)

Current deferred tax asset	$	356,336		$	388,807
Non-current deferred tax asset		98,271			113,727
Current deferred tax liability		(3,487	)		—
Non-current deferred tax liability		(68,712	)		(57,274	)

	$	382,408		$	445,260

Current deferred tax liabilities are included in accounts payable and accrued expenses on the Consolidated Balance Sheets and non-current deferred tax liabilities are included in other liabilities on the Consolidated Balance Sheets.

A valuation allowance is recorded to reflect the estimated amount of deferred tax assets that may not be realized. The valuation allowance has been established against capital loss carryforwards where it is believed that it is not more likely than not that sufficient capital gains will be realized within the remaining carryforward period.

For fiscal 2009, U.S. income taxes have not been provided for approximately $412 million of cumulative undistributed earnings of several non-U.S. subsidiaries. Applied intends to reinvest these earnings indefinitely in operations outside of the U.S.

At October 25, 2009, Applied’s state net operating loss carryforwards were $152 million. The carryforwards expire between fiscal 2014 and fiscal 2029. Applied has a California research and development tax credit carryforward of $27 million which has an unlimited life. Applied has a foreign tax credit carryforward of $14 million which expires in fiscal 2019. Applied also has net operating loss carryforwards in foreign jurisdictions of $89 million. The carryforwards have lives ranging from five years to indefinite. Management believes it is more likely than not that all loss and tax credit carryforwards at October 25, 2009 will be utilized in future periods.

Applied’s income taxes payable have been reduced by the tax benefits associated with employee stock option transactions. These benefits, credited directly to stockholders’ equity, amounted to $0.4 million for fiscal 2009, $7 million for fiscal 2008, and $50 million for fiscal 2007 with a corresponding reduction to taxes payable of $0.4 million in fiscal 2009, $7 million in fiscal 2008, and $50 million for fiscal 2007.

Applied maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands):


	2009			2008
	(In thousands)

Beginning balance of gross unrecognized tax benefits	$	363,400		$	360,000
Settlements with tax authorities		(37,400	)		—
Increases in tax positions for prior years		1,000			4,400
Decreases in tax positions for prior years		(1,700	)		(1,000	)

Ending balance of gross unrecognized tax benefits	$	325,300		$	363,400

Applied implemented new authoritative guidance for accounting for uncertain tax positions in the first quarter of fiscal 2008. In the fourth quarter of fiscal 2008, Applied identified a tax position that met the more likely than not recognition threshold. Applied determined that a tax benefit of $100 million existed upon implementation of this authoritative guidance and therefore made the correction to retained earnings. The impact of the correction was not considered material to prior reporting periods.

As of October 25, 2009, Applied had unrecognized tax benefits, net of federal deduction for state tax, of $325 million, all of which, if recognized, would result in a reduction of Applied’s effective tax rate.

As of October 25, 2009, the gross liability for unrecognized tax benefits was $325 million, exclusive of interest and penalties. Increases or decreases to interest and penalties on uncertain tax positions are included in provision for income taxes in the Consolidated Statement of Operations. Interest and penalties related to uncertain tax positions were $8 million as of October 26, 2008 and $5 million as of October 25, 2009. All $5 million in interest and penalties is classified as long-term liability in the Consolidated Balance Sheets. Long term income taxes payable has been reduced by certain unrecognized tax benefits.

During the second quarter of fiscal 2009, the Internal Revenue Service began an examination of Applied’s federal income tax returns for fiscal years 2007 and 2006. Applied believes it has adequately reserved for any income tax uncertainties that may arise as a result of this examination.

A number of Applied’s tax returns remain subject to examination by taxing authorities. These include U.S. federal returns for fiscal 2005 and later years, California returns for fiscal 2006 and later years, tax returns for certain states for fiscal 2002 and later years, and tax returns in certain jurisdictions outside of the U.S. for fiscal 2003 and later years.

During fiscal 2009, Applied received notice from the State of California stating that its examination of Applied’s returns for fiscal years 2002 through 2005 had been settled. The settlement resulted in a decrease to net unrecognized tax benefits of $14 million and reduced the effective tax rate for fiscal 2009.

The timing of the resolution of income tax examinations is highly uncertain as well as the amounts and timing of various tax payments that may be part of the settlement process. This could cause large fluctuations in the balance sheet classification of current assets and non-current assets and liabilities. The Company does not expect a material change in unrecognized tax benefits in the next 12 months.

Industry Segment and Geographic Operations

12 Months Ended

Oct. 25, 2009

Industry Segment and Geographic Operations [Abstract]

Industry Segment and Geographic Operations


Note 12	Industry Segment and Geographic Operations

Applied’s four reportable segments are: Silicon, Applied Global Services, Display, and Energy and Environmental Solutions. Applied’s chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Applied’s management organization structure as of October 25, 2009 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the Company’s reportable segments.

Each reportable segment is separately managed and has separate financial results that are reviewed by Applied’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by Applied’s chief operating decision-maker.

Applied derives the segment results directly from its internal management reporting system. The accounting policies Applied uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net sales and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. Applied does not allocate to its reportable segments certain operating expenses that it manages separately at the corporate level, which include costs related to equity-based compensation and certain components of variable compensation, the global sales organization, corporate functions (certain management, finance, legal, human resources, marketing, and research, development and engineering), and unabsorbed information technology and occupancy. In addition, Applied does not allocate to its reportable segments restructuring and asset impairment charges and any associated adjustments related to restructuring actions. Segment operating income excludes interest income/expense and other financial charges and income taxes according to how a particular reportable segment’s management is measured. Management does not consider the unallocated costs in measuring the performance of the reportable segments.

The Silicon segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, and metrology and inspection.

The Applied Global Services segment includes technically differentiated products and services to improve operating efficiency, reduce operating costs and lessen the environmental impact of semiconductor, display and solar customers’ factories. Applied Global Services’ products consist of spares, services, certain earlier generation products, and remanufactured equipment. Customer demand for these products and services is fulfilled through a global distribution system with trained service engineers located in close proximity to customer sites.

The Display segment encompasses products for manufacturing LCDs for TVs, personal computers and other video-enabled devices. The Display segment also includes the design and manufacture of differentiated stand-alone equipment for the Applied SunFab Thin Film Line.

The Energy and Environmental Solutions segment includes products for fabricating solar photovoltaic cells and modules, high throughput roll-to-roll coating systems for flexible electronics and web products, and systems used in the manufacture of energy-efficient glass.

Information for each reportable segment as of October 25, 2009, October 26, 2008 and October 28, 2007 and for the years then ended, is as follows:


			Operating			Depreciation/		Capital		Segment
	Net Sales		Income (Loss)			Amortization		Expenditures		Assets
	(In thousands)

2009:
Silicon	$	1,960,225	$	152,343		$	53,504	$	23,167	$	1,194,929
Applied Global Services		1,396,643		112,570			33,641		14,952		1,043,022
Display		501,692		64,705			11,924		14,428		444,619
Energy and Environmental Solutions		1,155,047		(241,516	)		80,095		51,320		1,853,283

Total Segment	$	5,013,607	$	88,102		$	179,164	$	103,867	$	4,535,853

2008:
Silicon	$	4,005,141	$	1,242,574		$	104,130	$	61,518	$	1,773,348
Applied Global Services		2,328,930		574,772			34,831		19,694		1,306,158
Display		975,582		309,803			8,397		11,478		658,744
Energy and Environmental Solutions		819,587		(183,173	)		106,663		7,544		2,075,516

Total Segment	$	8,129,240	$	1,943,976		$	254,021	$	100,234	$	5,813,766

2007:
Silicon	$	6,511,722	$	2,378,771		$	137,943	$	83,388	$	2,608,980
Applied Global Services		2,353,167		630,140			28,692		39,526		1,229,584
Display		705,056		159,212			9,122		3,216		431,789
Energy and Environmental Solutions		164,911		(89,364	)		19,637		670		1,037,872

Total Segment	$	9,734,856	$	3,078,759		$	195,394	$	126,800	$	5,308,225

Reconciliations of segment operating results to Applied consolidated totals for the fiscal years ending October 25, 2009, October 26, 2008 and October 28, 2007 are as follows:


	2009			2008			2007
	(In thousands)

Total segment operating income	$	88,102		$	1,943,976		$	3,078,759
Corporate and unallocated costs		(325,930	)		(570,434	)		(680,832	)
Restructuring and asset impairment charges		(155,788	)		(39,948	)		(26,421	)
Gain on sale of facility		—			21,837			—

Income (loss) from operations	$	(393,616	)	$	1,355,431		$	2,371,506

Reconciliations of depreciation and amortization expense to Applied consolidated totals for the fiscal years ending October 25, 2009, October 26, 2008 and October 28, 2007 are as follows:


	2009		2008		2007
	(In thousands)

Total segment depreciation and amortization	$	179,164	$	254,021	$	195,394
Depreciation on shared facilities		58,192		35,849		37,179
Depreciation on information technology assets		46,347		29,777		34,986
Other		7,500		404		775

Consolidated depreciation and amortization	$	291,203	$	320,051	$	268,334

Reconciliations of capital expenditures to Applied consolidated totals for the fiscal years ending October 25, 2009, October 26, 2008 and October 28, 2007 are as follows:


	2009		2008		2007
	(In thousands)

Total segment capital expenditures	$	103,867	$	100,234	$	126,800
Shared facilities		83,647		40,577		49,128
Information technology assets		26,981		94,700		76,604
Other		33,932		52,395		12,252

Consolidated capital expenditures	$	248,427	$	287,906	$	264,784

Reconciliations of segment assets to Applied consolidated totals as of October 25, 2009, October 26, 2008 and October 28, 2007 are as follows:


	October 25,			October 26,			October 28,
	2009			2008			2007
	(In thousands)

Total segment assets	$	4,535,853		$	5,813,766		$	5,308,225
Cash and investments		3,266,895			3,467,724			3,732,004
Allowance for bad debts		(67,313	)		(5,275	)		(4,136	)
Deferred income taxes		454,607			502,534			547,125
Other current assets		337,015			382,912			337,974
Common property, plant and equipment		820,959			644,578			603,453
Equity-method investment		—			79,533			115,060
Other assets		226,227			120,546			22,573

Consolidated total assets	$	9,574,243		$	11,006,318		$	10,662,278

For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. Long-lived assets consist primarily of property, plant and equipment and equity-method investments, and are attributed to the geographic location in which they are located. Net sales and long-lived assets by geographic region were as follows:


			Long-lived
	Net Sales		Assets
	(In thousands)

2009:
North America(1)	$	965,603	$	803,071

Taiwan		1,025,823		32,939
Japan		718,573		7,611
Europe		752,635		115,280
Korea		663,813		4,624
China		635,371		97,707
Southeast Asia		251,789		57,121

Total outside North America		4,048,004		315,282

Consolidated total	$	5,013,607	$	1,118,353

2008:
North America(1)	$	1,519,898	$	895,723

Taiwan		1,837,097		43,169
Japan		1,217,635		89,782
Europe		949,105		109,224
Korea		1,309,490		6,258
China		779,853		37,166
Southeast Asia		516,162		16,953

Total outside North America		6,609,342		302,552

Consolidated total	$	8,129,240	$	1,198,275

2007:
North America(1)	$	1,554,643	$	866,531

Taiwan		2,678,815		42,622
Japan		1,492,694		126,515
Europe		955,747		90,879
Korea		1,846,867		8,634
China		716,880		34,080
Southeast Asia		489,210		22,756

Total outside North America		8,180,213		325,486

Consolidated total	$	9,734,856	$	1,192,017


(1)		Primarily the United States.

In fiscal 2009, Intel Corporation accounted for 12 percent of Applied’s net sales. Samsung Electronics Co., Ltd. accounted for 10 percent of net sales in fiscal 2009, 16 percent of net sales in fiscal 2008, and 12 percent of net sales in fiscal 2007. These net sales were for products in multiple reportable segments.

Commitments and Contingencies

12 Months Ended

Oct. 25, 2009

Commitments and Contingencies [Abstract]

Commitments and Contingencies


Note 13	Commitments and Contingencies

Leases

Applied leases some of its facilities and equipment under non-cancelable operating leases and has options to renew most leases, with rentals to be negotiated. Total rent expense was $64 million for fiscal 2009, $68 million for fiscal 2008, and $62 million for fiscal 2007. Future minimum lease payments at October 25, 2009 totaled $143 million and were: $43 million for fiscal 2010; $29 million for fiscal 2011; $20 million for fiscal 2012; $11 million for fiscal 2013; $8 million for fiscal 2014; and $32 million collectively for all periods thereafter.

Discounted Letters of Credit

Applied discounts letters of credit through various financial institutions. Under these agreements, Applied discounted letters of credit in the amounts of $299 million for fiscal 2009, $167 million for fiscal 2008 and $431 million for fiscal 2007. Discounting fees were not material for all periods presented. In fiscal 2009 and 2008, Applied factored accounts receivable and discounted promissory notes totaling $43 million and $138 million, respectively.

Warranty

Applied products are generally sold with a 12-month warranty period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region.

Changes in the warranty reserves were as follows:


	2009			2008
	(In thousands)

Beginning balance	$	142,846		$	184,271
Provisions for warranty		92,976			138,229
Consumption of reserves		(118,285	)		(179,654	)

Ending balance	$	117,537		$	142,846

As noted above, Applied’s products are generally sold with a 12-month warranty. Accordingly, current warranty provisions are related to the current year’s net sales, and warranty consumption is associated with current and prior year’s net sales.

Guarantees

During the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to certain parties as required for certain transactions initiated by either Applied or its subsidiaries. As of October 25, 2009, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $83 million. Applied has not recorded any liability in connection with these guarantee arrangements below that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee arrangements.

Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of October 25, 2009, Applied Materials Inc. has provided parent guarantees to banks for approximately $179 million to cover these services.

Legal Matters

Jusung

Applied has been engaged in a number of lawsuits and patent and administrative proceedings in Taiwan and South Korea since 2003 with Jusung Engineering Co., Ltd. (Jusung Engineering) and/or Jusung Pacific Co., Ltd. (Jusung Pacific, referred to together with Jusung Engineering as Jusung) involving technology used in manufacturing LCDs. Applied believes that it has meritorious claims and defenses against Jusung that it intends to pursue vigorously.

In 2004, Applied filed a complaint for patent infringement against Jusung in the Hsinchu District Court in Taiwan seeking damages and a permanent injunction for infringement of a patent related to chemical vapor deposition (CVD) equipment, and this case remains pending. Jusung Pacific unsuccessfully sought invalidation of Applied’s CVD patent in the Taiwanese Intellectual Property Office (TIPO). Jusung Pacific’s initial appeal of the TIPO’s decision was denied, and it has filed a further appeal to the Taipei High Supreme Administrative Court. In 2006, Applied filed an action in the TIPO challenging the validity of a patent owned by Jusung Engineering related to severability of the transfer chamber on a CVD tool. Jusung Engineering filed a lawsuit against Applied and AKT America in Hsinchu District Court in Taiwan alleging infringement of the same patent. The TIPO granted Applied’s request for invalidation and revoked Jusung Engineering’s patent. In March 2009, the Hsinchu District Court dismissed Jusung Engineering’s lawsuit, and in April 2009, the Ministry of Economic Affairs overruled Jusung Engineering’s administrative appeal of the decision revoking its patent. Jusung has appealed both decisions. In 2006, Jusung Engineering filed a complaint of private prosecution in the Taipei District Court of Taiwan alleging that Applied’s outside counsel received from the Court and used a copy of an expert report that Jusung had filed in the ongoing patent infringement lawsuits that Jusung had intended to remain confidential. The complaint names as defendants Applied’s outside counsel in Taiwan, as well as Michael R. Splinter, Applied’s President and Chief Executive Officer, as the statutory representative of Applied. The Taipei District Court dismissed the private prosecution complaint, and the matter was transferred to the Taipei District Attorney’s Office. The Taipei District Attorney’s Office has issued three successive rulings not to prosecute, each of which Jusung Engineering has appealed to the Taiwan High Court District Attorney. In each instance, the Taiwan High Court District Attorney has returned the matter to the Taipei District Attorney’s Office for further consideration, where it remains pending.

In 2007, Jusung Engineering filed a complaint against AKT America in Seoul Central District Court in Seoul, Korea, alleging infringement of a Jusung patent involving the showerhead assembly of plasma enhanced chemical vapor deposition (PECVD) equipment. After the Korean Intellectual Property Office (KIPO) ruled that Jusung’s patent was invalid, the District Court dismissed Jusung Engineering’s infringement action, which Jusung Engineering appealed. In July 2009, the Korean Supreme Court dismissed Jusung’s appeal of the KIPO’s determination that the showerhead assembly patent is invalid, and Jusung’s related confirmation-of-scope action was also dismissed. On September 10, 2009, Jusung Engineering withdrew its appeal of the dismissal of its infringement action, and all proceedings regarding Jusung’s invalidated Korean showerhead assembly patent are now concluded.

Also in 2007, Applied filed a complaint against Jusung Engineering in the Seoul Central District Court for infringement of an Applied patent involving the housing for a substrate supporting pin used in PECVD equipment. After the KIPO ruled that Applied’s patent was invalid, the District Court dismissed Applied’s infringement action. Applied’s appeals of the dismissals of the infringement action, as well as a related confirmation of scope case, were dismissed. On September 10, 2009, the Korean Supreme Court affirmed the KIPO’s determination that the pin patent was invalid, and all proceedings regarding Applied’s invalidated Korean substrate supporting pin patent are now concluded.

From time to time, Applied receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by Applied in connection with claims made against them. In addition, from time to time, Applied receives notification from third parties claiming that Applied may be or is infringing their intellectual property or other rights. Applied also is subject to various other legal proceedings and claims, both asserted and unasserted, that arise in the ordinary course of business.

Although the outcome of the above-described matters or these claims and proceedings cannot be predicted with certainty, Applied does not believe that any of these proceedings or other claims will have a material adverse effect on its consolidated financial condition or results of operations.

Business Combinations

12 Months Ended

Oct. 25, 2009

Business Combinations [Abstract]

Business Combinations


Note 14	Business Combinations

On January 31, 2008, Applied acquired all of the outstanding shares of Baccini, a privately-held company based in Italy, for a purchase price of $215 million in cash, net of cash and marketable securities acquired. The acquired business is a leading supplier of automated metallization and test systems for manufacturing c-Si photovoltaic cells. In connection with this acquisition, Applied recorded goodwill of $158 million and intangible assets of $130 million. Of the $130 million of acquired intangible assets, $61 million was assigned to acquired backlog (to be amortized over 2 years), $34 million was assigned to customer relationships (to be amortized over 9 years), $27 million was assigned to purchased technology (to be amortized over 7 years), $6 million was assigned to covenants not to compete (to be amortized over 2 years), and $3 million was assigned to trademarks and tradenames (to be amortized over 7 years). The allocation of the purchase price was based on estimates of the fair value of the assets acquired and is subject to adjustment upon finalization of the purchase price allocation. The acquired business is reported under the Energy and Environmental Solutions segment.

On November 9, 2007, Applied purchased from Edwards Vacuum, Inc. certain assets of its Kachina semiconductor equipment parts cleaning and refurbishment business for $19 million. The acquisition expanded Applied’s existing Chamber Performance Services network of facilities that provide customers worldwide with technology and support for maintaining their chamber components. In connection with this acquisition, Applied recorded goodwill of $13 million and an intangible asset of $3 million (customer relationships, to be amortized over 13 years). The acquired business is reported under the Applied Global Services segment.

On August 23, 2007, Applied acquired all of the outstanding shares of Switzerland-based HCT for $463 million in cash, net of cash acquired. The acquired business is a leading supplier of precision wafering systems used principally in manufacturing c-Si substrates for the solar industry. In connection with this acquisition, Applied recorded goodwill of $354 million and other intangible assets of $180 million. Of the $180 million of acquired intangible assets, $59 million was assigned to purchased technology (to be amortized over 11 years), $59 million was assigned to customer relationships (to be amortized over 7 years), $47 million was assigned to acquired backlog (to be amortized over 1 year), $8 million was assigned to trademarks and tradenames (to be amortized over 13 years), and $7 million was assigned to covenants not to compete (to be amortized over 3 years). The acquired business is reported under the Energy and Environmental Solutions segment.

On March 30, 2007, Applied purchased Brooks Software, a division of Brooks Automation, Inc., for $137 million in cash. The acquired business is a leading provider of factory management and control software to the semiconductor and flat panel display industries. The products complement Applied’s existing software applications and enable Applied to offer customers a comprehensive computer integrated manufacturing (CIM) solution for optimizing fab operations. Applied recorded an in-process research and development (IPR&D) expense of $5 million, reported as research, development and engineering expense, goodwill of $77 million, and other intangible assets of $47 million. Of the $47 million of acquired intangible assets, $21 million was assigned to purchased technology (to be amortized over 4 to 11 years), $21 million was assigned to maintenance contracts (to be amortized over 7 years), $2 million was assigned to acquired backlog (to be amortized over 1 year), $2 million was assigned to trademarks and tradenames (to be amortized over 7 years), and $1 million was assigned to customer relationships (to be amortized over 4 years). The acquired business is reported under the Applied Global Services segment.

The acquired IPR&D expense was determined by identifying research projects for which technological feasibility had not been established and no alternative future use existed. The value of the projects identified as in-process was determined by estimating the future cash flows from the projects once commercially feasible, discounting the net cash flows back to their present value at a rate commensurate with the level of risk and maturity of the projects, and then applying a percentage of completion to the calculated value.

For all of the purchase business combinations discussed above, the results of operations prior to the acquisition dates were not material in relation to those of Applied for any of the periods presented herein. Goodwill is not amortized but is reviewed periodically for impairment and purchased technology is amortized over its useful life of 1 to 15 years.

Label	Element	Value
Other Comprehensive Income, Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax	$ (5,728,000)
Other Comprehensive Income, Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax	9,448,000
Other Comprehensive Income, Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax	(7,729,000)
Cumulative Effect of Initial Adoption of FIN 48	us-gaap_CumulativeEffectOfInitialAdoptionOfFIN48	100,000,000
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	(319,208,000)
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	(322,749,000)
Dividends, Common Stock, Cash	us-gaap_DividendsCommonStockCash	(320,117,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease	9,583,000
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease	(58,000)
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPeriodIncreaseDecrease	874,000
Other Comprehensive Income, Minimum Pension Liability Net Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeMinimumPensionLiabilityNetAdjustmentNetOfTax	(3,462,000)
Other Comprehensive Income, Minimum Pension Liability Net Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeMinimumPensionLiabilityNetAdjustmentNetOfTax	7,440,000
Other Comprehensive Income, Minimum Pension Liability Net Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeMinimumPensionLiabilityNetAdjustmentNetOfTax	12,492,000
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansAdjustmentNetOfTaxPeriodIncreaseDecrease	(1,132,000)
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansAdjustmentNetOfTaxPeriodIncreaseDecrease	1,866,000
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax	us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansAdjustmentNetOfTaxPeriodIncreaseDecrease	(719,000)
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	21,887,000
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	(41,739,000)
Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax	44,956,000
Effect on Retained Earnings (Accumulated Deficit) Due to Change in Measurement Date, Net of Tax	us-gaap_EffectOnRetainedEarningsAccumulatedDeficitDueToChangeInMeasurementDateNetOfTax	(1,942,000)
Treasury Stock, Value, Acquired, Cost Method	us-gaap_TreasuryStockValueAcquiredCostMethod	(1,331,997,000)
Treasury Stock, Value, Acquired, Cost Method	us-gaap_TreasuryStockValueAcquiredCostMethod	(1,499,984,000)
Treasury Stock, Value, Acquired, Cost Method	us-gaap_TreasuryStockValueAcquiredCostMethod	(22,906,000)
Tax Effect On Adjustment To Initially Apply Sfas 158	amat_TaxEffectOnAdjustmentToInitiallyApplySfas158	959,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan	919,459,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan	348,516,000
Stock Issued During Period, Value, Employee Stock Purchase Plan	us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan	23,892,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	6,651,400,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	7,821,409,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	7,548,958,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	7,094,608,000
Application of Recognition Provisions of FAS 158, Effect on Accumulated Other Comprehensive Income, Net of Tax	us-gaap_ApplicationOfRecognitionProvisionsOfSFAS158EffectOnAccumulatedOtherComprehensiveIncomeNetOfTax	2,291,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	161,196,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	178,943,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	147,160,000
Comprehensive Income, Net of Tax, Attributable to Parent	us-gaap_ComprehensiveIncomeNetOfTax	1,738,268,000
Comprehensive Income, Net of Tax, Attributable to Parent	us-gaap_ComprehensiveIncomeNetOfTax	922,823,000
Comprehensive Income, Net of Tax, Attributable to Parent	us-gaap_ComprehensiveIncomeNetOfTax	(280,437,000)
Tax Benefits Detriment Included In Issuance Under Stock Plans	amat_TaxBenefitsDetrimentIncludedInIssuanceUnderStockPlans	48,870,000
Tax Benefits Detriment Included In Issuance Under Stock Plans	amat_TaxBenefitsDetrimentIncludedInIssuanceUnderStockPlans	(11,519,000)
Tax Benefits Detriment Included In Issuance Under Stock Plans	amat_TaxBenefitsDetrimentIncludedInIssuanceUnderStockPlans	$ (13,409,000)

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands	Oct. 25, 2009	Oct. 26, 2008
Current assets:
Allowance for doubtful accounts receivable	$ 67,313,000	$ 5,275,000
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	2,500,000	2,500,000
Common stock, shares outstanding	1,340,917	1,330,761
Treasury stock, shares	508,254	513,232

Consolidated Statements of Stockholders Equity and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Oct. 25, 2009	Oct. 26, 2008	Oct. 28, 2007
Common Stock
Statement [Line Items]
Tax benefits (detriment) included in issuance under stock plans	$ (13,409)	$ (11,519)	$ 48,870
Additional Paid-In Capital
Statement [Line Items]
Tax benefits (detriment) included in issuance under stock plans	(13,409)	(11,519)	48,870
Treasury Stock
Statement [Line Items]
Tax benefits (detriment) included in issuance under stock plans	(13,409)	$ (11,519)	48,870
Retained Earnings
Statement [Line Items]
Tax benefits (detriment) included in issuance under stock plans	$ (13,409)
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Tax effect on adjustment to initially apply SFAS 158			$ 959