View Filing Data

Issuance under stock plans, net of a tax detriment of $5 and other

110

$ 37

Issuance under stock plans, net of a tax detriment of $5 and other, shares

Common stock repurchases

$ (293)

Common stock repurchases, Shares

(20)

Ending Balance at Jul. 31, 2011

$ 8,551

^[1]

$ 13

$ 5,553

$ 12,678

$ (9,689)

$ (4)

Ending Balance, Shares at Jul. 31, 2011

1,318

557

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Consolidated Condensed Statements of Stockholders' Equity and Comprehensive Income (Loss) (Unaudited) (Parenthetical) $ in Millions	9 Months Ended
	Jul. 31, 2011 USD ($)
Tax detriment included in issuance under stock plans	$ 5
Additional Paid-In Capital
Tax detriment included in issuance under stock plans	$ 5

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

9 Months Ended

Jul. 31, 2011

Aug. 01, 2010

Cash flows from operating activities:

Net income

$ 1,471

$ 470

Adjustments required to reconcile net income to cash provided by operating activities:

Depreciation and amortization

187

236

Net loss (gain) on dispositions and fixed asset retirements

(24)

Provision for bad debts

Restructuring charges and asset impairments

(30)

248

Deferred income taxes

(100)

(215)

Net recognized loss on investments

Impairment of strategic investments

Changes in operating assets and liabilities, net of amounts acquired:

110

Accounts receivable

(648)

Inventories

(310)

100

Prepaid income taxes

185

Other current assets

(36)

(38)

Other assets

(7)

Accounts payable and accrued expenses

(92)

374

Customer deposits and deferred revenue

498

167

Income taxes payable

192

Employee benefits and other liabilities

(10)

Cash provided by operating activities

1,728

1,198

Cash flows from investing activities:

Capital expenditures

(136)

(134)

Proceeds from sale of facilities and dispositions, net of cash sold

126

Cash paid for acquisition, net of cash acquired

(323)

Proceeds from sales and maturities of investments

1,173

967

Purchases of investments

(945)

(1,357)

Cash provided by (used in) investing activities

218

(847)

Cash flows from financing activities:

Debt borrowings (repayments), net

1,744

(6)

Payments of debt issuance costs

(14)

Proceeds from common stock issuances

Common stock repurchases

(293)

(200)

Payments of dividends to stockholders

(291)

(255)

Cash provided by (used in) financing activities

1,210

(362)

Effect of exchange rate changes on cash and cash equivalents

(1)

Increase (decrease) in cash and cash equivalents

3,160

(12)

Cash and cash equivalents - beginning of period

^[1]

1,858

Cash and cash equivalents - end of period

5,018

^[1]

1,564

Supplemental cash flow information:

Cash payments for income taxes

661

255

Cash refunds for income taxes

199

Cash payments for interest

$ 7

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Basis of Presentation

9 Months Ended

Jul. 31, 2011

Basis of Presentation [Abstract]

Basis of Presentation


Note 1	Basis of Presentation

Basis of Presentation

In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 31, 2010 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 (2010 Form 10-K). Applied’s results of operations for the three and nine months ended July 31, 2011 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2011 contains 52 weeks, while fiscal 2010 contained 53 weeks, and the first nine months of fiscal 2011 contained 39 weeks, while the first nine months of fiscal 2010 contained 40 weeks.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

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 probable. 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, 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 using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. 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 production lines. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided.

Applied elected to early adopt amended accounting standards issued by the Financial Accounting Standards Board (FASB) for multiple deliverable revenue arrangements on a prospective basis for applicable transactions originating or materially modified after October 25, 2009. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance when the software is essential to the tangible product’s functionality. Implementation of this new authoritative guidance had an insignificant impact on reported net sales compared to net sales under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an inconsequential impact on the amount and timing of reported net sales.

For fiscal 2010 and subsequent periods, when a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.

Recent Accounting Pronouncements

In June 2011, the FASB issued authoritative guidance on the presentation of comprehensive income to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This authoritative guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity. This guidance is effective for Applied in the first quarter of fiscal 2012, with early adoption permitted, and should be applied retrospectively. The implementation of this authoritative guidance will change the presentation of comprehensive income only.

In May 2011, the FASB issued authoritative guidance to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. This authoritative guidance limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts. This authoritative guidance also expands the disclosures on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The new guidance will be effective for Applied in the first quarter of fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations.

In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in the first quarter fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations.

In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in the first quarter of fiscal 2012.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Name FASB Interpretation (FIN)
-Publisher FASB
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Cash, Cash Equivalents and Investments [Abstract]

Earnings Per Share

9 Months Ended

Jul. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share


Note 2	Earnings Per Share

Basic earnings 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 employee stock purchase plans shares) outstanding during the period. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings 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.


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions, except per share amounts)

Numerator:
Net income	$	476	$	123	$	1,471	$	470
Denominator:
Weighted average common shares outstanding		1,318		1,340		1,321		1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares		12		9		12		9

Denominator for diluted earnings per share		1,330		1,349		1,333		1,351

Basic earnings per share	$	0.36	$	0.09	$	1.11	$	0.35
Diluted earnings per share	$	0.36	$	0.09	$	1.10	$	0.35
Potentially dilutive securities		17		34		17		34

Cash, Cash Equivalents and Investments

9 Months Ended

Jul. 31, 2011

Cash, Cash Equivalents and Investments


Note 3	Cash, Cash Equivalents and Investments

Summary of Cash, Cash Equivalents and Investments

The following tables summarizes Applied’s cash, cash equivalents and investments by security type:


			Gross		Gross
			Unrealized		Unrealized		Estimated
July 31, 2011	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	918	$	—	$	—	$	918

Cash equivalents:
Money market funds		3,895		—		—		3,895
U.S. commercial paper, corporate bonds and medium-term notes		190		—		—		190
Obligations of states and political subdivisions		15		—		—		15

Total Cash equivalents		4,100		—		—		4,100

Total Cash and Cash equivalents	$	5,018	$	—	$	—	$	5,018

Short-term and long-term investments:
U.S. Treasury and agency securities	$	483	$	3	$	—	$	486
Obligations of states and political subdivisions		452		3		—		455
U.S. commercial paper, corporate bonds and medium-term notes		390		5		—		395
Other debt securities*		363		3		1		365

Total fixed income securities		1,688		14		1		1,701
Publicly traded equity securities		8		21		—		29
Equity investments in privately-held companies		61		—		—		61

Total short-term and long-term investments	$	1,757	$	35	$	1	$	1,791

Total Cash, Cash equivalents and Investments	$	6,775	$	35	$	1	$	6,809


			Gross		Gross
			Unrealized		Unrealized		Estimated
October 31, 2010	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	701	$	—	$	—	$	701

Cash equivalents:
Money market funds		1,139		—		—		1,139
Obligations of states and political subdivisions		18		—		—		18

Total Cash equivalents		1,157		—		—		1,157

Total Cash and Cash equivalents	$	1,858	$	—	$	—	$	1,858

Short-term and long-term investments:
U.S. Treasury and agency securities	$	665	$	8	$	—	$	673
Obligations of states and political subdivisions		500		5		—		505
U.S. commercial paper, corporate bonds and medium-term notes		502		7		—		509
Other debt securities*		261		3		1		263

Total fixed income securities		1,928		23		1		1,950
Publicly traded equity securities		9		16		—		25
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	1,996	$	39	$	1	$	2,034

Total Cash, Cash equivalents and Investments	$	3,854	$	39	$	1	$	3,892


*		Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments at July 31, 2011:


			Estimated
	Cost		Fair Value
	(In millions)

Due in one year or less	$	704	$	707
Due after one through five years		618		626
Due after five years		3		3
No single maturity date		432		455

	$	1,757	$	1,791

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

Gains and Losses on Investments

Gross realized gains and losses on sales of investments during the three and nine months ended July 31, 2011 and August 1, 2010 were as follows:


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Gross realized gains	$	1	$	1	$	14	$	3
Gross realized losses	$	1	$	1	$	2	$	1

At July 31, 2011, Applied had a gross unrealized loss of $1 million related to its investment portfolio 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 an unrealized loss was considered to be temporary, or other-than-temporary and therefore impaired, 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 investments in marketable securities do not permit settlement at prices less than the amortized cost of the investments. Applied has determined that the gross unrealized losses on its marketable securities at July 31, 2011 are temporary in nature and therefore it did not recognize any impairment of its marketable securities for the three and nine months ended July 31, 2011. Applied determined that the gross unrealized losses on its marketable securities at August 1, 2010, were temporary in nature and therefore it did not recognize any impairment of its marketable securities for the three and nine months ended August 1, 2010.

The following table provides the fair market value of Applied’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of July 31, 2011.

In Loss Position for

Less Than 12 Months

Total

Gross

Unrealized

Fair Value

Losses

Fair Value

Losses

(In millions)

Other debt securities

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

Fair Value Measurements

9 Months Ended

Jul. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements


Note 4	Fair Value Measurements

Applied’s financial assets are measured and recorded at fair value, except for equity investments held in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred.

Fair Value Hierarchy

Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:


	•	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 values. 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.

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 July 31, 2011, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs.

Assets and 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 July 31, 2011 and October 31, 2010:


	July 31, 2011										October 31, 2010
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In millions)										(In millions)

Assets:
Money market funds	$	3,895	$	—		$	—	$	3,895		$	1,139	$	—		$	—	$	1,139
U.S. Treasury and agency securities		116		370			—		486			153		520			—		673
U.S. commercial paper, corporate bonds and medium-term notes		—		585			—		585			—		509			—		509
Obligations of states and political subdivisions		—		470			—		470			—		523			—		523
Other debt securities		—		365			—		365			—		263			—		263
Publicly traded equity securities		29		—			—		29			25		—			—		25
Foreign exchange derivative assets		—		2			—		2			—		6			—		6

Total	$	4,040	$	1,792		$	—	$	5,832		$	1,317	$	1,821		$	—	$	3,138

Liabilities:
Foreign exchange derivative liabilities	$	—	$	(4	)	$	—	$	(4	)	$	—	$	(1	)	$	—	$	(1	)

Total	$	—	$	(4	)	$	—	$	(4	)	$	—	$	(1	)	$	—	$	(1	)

There were no significant transfers in and out of Level 1 and Level 2 fair value measurements and there were no Level 3 investments during either the three and nine months ended July 31, 2011 or the three and nine months ended August 1, 2010. Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements during the three and nine months ended July 31, 2011 and August 1, 2010.

Assets and 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 $61 million at July 31, 2011, of which $39 million of investments were accounted for under the cost method of accounting and $22 million of Level 3 investments had been measured at fair value on a non-recurring basis due to an other-than-temporary decline in value. At August 1, 2010, equity investments in privately-held companies totaled $62 million, of which $39 million of investments were accounted for under the cost method of accounting and $23 million of Level 3 investments had been measured at fair value on a non-recurring basis due to an other-than-temporary decline in value.

Applied did not recognize any impairment on its equity investments in privately-held companies for both the three and nine months ended July 31, 2011. During the first nine months of fiscal 2010, Applied determined that certain of its equity investments in privately-held companies were other-than-temporarily impaired and, accordingly, recognized impairment charges in the amounts of $8 million and $13 million for the three and nine months ended August 1, 2010, respectively.

The following tables present the balances of equity securities at July 31, 2011 and August 1, 2010 that had been measured at fair value on a non-recurring basis, using the process described above, and the impairment charges recorded during the three and nine months then ended:


							Total		Total
							Impairment for		Impairment for
							the Three		the Nine
							Months Ended		Months Ended
	Level 1		Level 2		Level 3		July 31, 2011		July 31, 2011
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2011	$	—	$	—	$	22	$	—	$	—


							Total		Total
							Impairment for		Impairment for
							the Three		the Nine
							Months Ended		Months Ended
	Level 1		Level 2		Level 3		August 1, 2010		August 1, 2010
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2010	$	—	$	—	$	23	$	8	$	13

At October 31, 2010, equity investments in privately-held companies totaled $59 million, of which $40 million of investments were accounted for under the cost method of accounting and $19 million of Level 3 investments had been measured at fair value on a non-recurring basis due to an other-than-temporary decline in value.

Other

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. The carrying amount of Applied’s long-term debt at July 31, 2011 was $1.9 billion and the estimated fair value was $2.1 billion. At October 31, 2010, the carrying amount of long-term debt was $205 million and the estimated fair value was $238 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.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

9 Months Ended

Jul. 31, 2011

Derivative Instruments and Hedging Activities


Note 5	Derivative Instruments and Hedging Activities

Derivative Financial Instruments

Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as Japanese yen, euro, Israeli shekel, Taiwanese dollar and Swiss franc. 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. 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.

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 in accounts payable and accrued expenses.

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 July 31, 2011 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 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 not significant for the three and nine months ended July 31, 2011 and August 1, 2010.

Additionally, 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 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:


		Asset Derivatives					Liability Derivatives
	Balance Sheet	July 31,				Balance Sheet	July 31,
	Location	2011		October 31, 2010		Location	2011		October 31, 2010
		(In millions)					(In millions)

Derivatives Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	5	Accrued expenses	$	4	$	1

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	1	Accrued expenses	$	—	$	—

Total derivatives		$	2	$	6		$	4	$	1

The effect of derivative instruments on the Consolidated Condensed Statement of Operations for the three and nine months ended July 31, 2011 and August 1, 2010 was as follows:


		Three Months Ended July 31, 2011								Three Months Ended August 1, 2010
							Ineffective Portion									Ineffective Portion
							and Amount									and Amount
	Location of Gain						Excluded from									Excluded from
	or (Loss)						Effectiveness									Effectiveness
	Reclassified from	Effective Portion					Testing			Effective Portion						Testing
	AOCI into Income	Gain or (Loss)			Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	or Recognized in	Recognized in			Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	Income	AOCI			AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)								(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	(7	)	$	1	$	(2	)	$	(3	)	$	(1	)	$	(2	)
Foreign exchange contracts	General and administrative		—			2		—			—			(3	)		—

Total		$	(7	)	$	3	$	(2	)	$	(3	)	$	(4	)	$	(2	)


		Nine Months Ended July 31, 2011							Nine Months Ended August 1, 2010
						Ineffective Portion									Ineffective Portion
						and Amount									and Amount
	Location of Gain					Excluded from									Excluded from
	or (Loss)					Effectiveness									Effectiveness
	Reclassified from	Effective Portion				Testing			Effective Portion						Testing
	AOCI into Income	Gain or (Loss)		Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	or Recognized in	Recognized in		Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	Income	AOCI		AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)							(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	5	$	6	$	(5	)	$	(5	)	$	(3	)	$	(2	)
Foreign exchange contracts	General and administrative		—		5		(1	)		—			(4	)		(1	)

Total		$	5	$	11	$	(6	)	$	(5	)	$	(7	)	$	(3	)


		Three Months Ended						Nine Months Ended
		July 31,			August 1,			July 31,			August 1,
		2011			2010			2011			2010
	Location of Gain
	or (Loss)	Amount of Gain or						Amount of Gain or
	Recognized in	(Loss)						(Loss)
	Income	Recognized in Income						Recognized in Income
		(In millions)						(In millions)

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative	$	(5	)	$	(8	)	$	(2	)	$	(12	)

Total		$	(5	)	$	(8	)	$	(2	)	$	(12	)

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 of the derivative instruments discussed above, 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 net liability position was not material as of July 31, 2011.

Entering into foreign exchange contracts with banks exposes Applied to credit-related losses in the event of the banks’ nonperformance. However, Applied does not consider its exposure to be significant.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41638-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5580258-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41641-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41620-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624181-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624177-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80748-113994

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624258-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708775-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41635-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708773-113959

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Accounts Receivable, Net

9 Months Ended

Jul. 31, 2011

Accounts Receivable, Net [Abstract]

Accounts Receivable, Net


Note 6	Accounts Receivable, Net

Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied also discounts letters of credit through various financial institutions. Applied sells its accounts receivable without recourse. Details of discounted letters of credit, factored accounts receivable and discounted promissory notes for the three and nine months ended July 31, 2011 and August 1, 2010 were as follows:


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Discounted letters of credit	$	38	$	81	$	211	$	134
Factored accounts receivable and discounted promissory notes		25		56		80		106

Total	$	63	$	137	$	291	$	240

Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Condensed Statements of Operations and were not material for all periods presented.

Accounts receivable are presented net of allowance for doubtful accounts of $74 million at both July 31, 2011 and October 31, 2010. Applied sells principally to manufacturers within the semiconductor, display and solar industries. While Applied believes that its allowance for doubtful accounts is adequate and represents Applied’s best estimate as of July 31, 2011, Applied will continue to closely monitor customer liquidity and other economic conditions, which may result in changes to Applied’s estimates regarding collectability.

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

Goodwill, Purchased Technology and Other Intangible Assets [Abstract]

Balance Sheet Detail

9 Months Ended

Jul. 31, 2011

Balance Sheet Detail [Abstract]

Balance Sheet Detail


Note 7	Balance Sheet Detail


	July 31,		October 31,
	2011		2010
	(In millions)

Inventories
Customer service spares	$	328	$	324
Raw materials		408		260
Work-in-process		457		500
Finished goods		656		463

	$	1,849	$	1,547

Included in finished goods inventory is $281 million at July 31, 2011, and $148 million at October 31, 2010, of newly-introduced systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1. Finished goods inventory includes $145 million and $117 million of evaluation inventory at July 31, 2011 and October 31, 2010, respectively.


			July 31,			October 31,
	Useful Life		2011			2010
	(In years)		(In millions)

Property, Plant and Equipment, Net
Land and improvements			$	169		$	227
Buildings and improvements		3-30		1,170			1,234
Demonstration and manufacturing equipment		3-5		679			670
Furniture, fixtures and other equipment		3-15		715			719
Construction in progress				24			19

Gross property, plant and equipment				2,757			2,869
Accumulated depreciation				(1,903	)		(1,906	)

			$	854		$	963

In the first quarter of fiscal 2011, Applied received $39 million in proceeds from the sale of a property located in North America and incurred a loss of $1 million on the transaction. In the third quarter of fiscal 2011, Applied received $60 million in proceeds from the sale of a property located in North America and incurred a gain of $28 million on the transaction. In the third quarter of fiscal 2011, Applied completed the divestiture of certain assets held for sale for proceeds of $27 million, net of cash sold.


	July 31,		October 31,
	2011		2010
	(In millions)

Accounts Payable and Accrued Expenses
Accounts payable	$	656	$	658
Compensation and employee benefits		405		435
Warranty		188		155
Dividends payable		105		93
Other accrued taxes		76		99
Restructuring reserve		16		104
Interest payable		15		1
Other		192		221

	$	1,653	$	1,766

Other accrued expenses included contractual termination obligation charges of $10 million and $40 million as of July 31, 2011 and October 31, 2010, respectively.


	July 31,		October 31,
	2011		2010
	(In millions)

Customer Deposits and Deferred Revenue
Customer deposits	$	442	$	407
Deferred revenue		905		440

	$	1,347	$	847

Applied typically receives deposits on future deliverables from customers in the Energy and Environmental Solutions and Display segments. In certain instances, customer deposits may be received from customers in the Applied Global Services segment.

Goodwill, Purchased Technology and Other Intangible Assets

9 Months Ended

Jul. 31, 2011

Goodwill, Purchased Technology and Other Intangible Assets


Note 8	Goodwill, Purchased Technology and Other Intangible Assets

Goodwill and Purchased Intangible Assets

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 one or more reporting units 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.

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. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. Applied regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. 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 16, 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. Estimated future cash flows will be impacted by a number of factors including anticipated future operating results, estimated cost of capital and/or discount rates. Under the market approach, Applied estimates the fair value based on market multiples of revenue or earnings for comparable companies, as appropriate. 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 represents 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 charge equal to the difference.

Applied conducted impairment tests in the fourth quarter of fiscal 2010, and the results of the first step of the impairment test indicated that Applied’s goodwill and purchased intangible assets with indefinite useful lives for each of its reporting units were not impaired. The purchased intangible assets with indefinite lives consisted primarily of a trade name. In the second quarter of fiscal 2011, Applied negotiated the divestiture of certain assets and determined the trade name included in assets held for sale to be impaired, and recorded $18 million of impairment charges.

Effective in the first quarter of fiscal 2011, Applied transferred its SunFab thin film solar product from the Energy and Environmental Solutions segment to the Applied Global Services segment. As a result of this transfer, Applied reallocated $17 million of goodwill from its Energy and Environmental Solutions segment to its Applied Global Services segment.

Details of goodwill and other indefinite-lived intangible assets were as follows:


	July 31, 2011						October 31, 2010
			Other						Other
			Intangible						Intangible
	Goodwill		Assets		Total		Goodwill		Assets		Total
	(In millions)

Silicon Systems Group	$	381	$	—	$	381	$	381	$	—	$	381
Applied Global Services		193		—		193		177		18		195
Display		116		—		116		116		—		116
Energy and Environmental Solutions		645		—		645		662		—		662

Carrying amount	$	1,335	$	—	$	1,335	$	1,336	$	18	$	1,354

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 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:


	July 31, 2011									October 31, 2010
				Other									Other
	Purchased			Intangible						Purchased			Intangible
	Technology			Assets			Total			Technology			Assets			Total
							(In millions)

Silicon Systems Group	$	310		$	20		$	330		$	310		$	20		$	330
Applied Global Services		28			40			68			32			61			93
Display		110			33			143			110			33			143
Energy and Environmental Solutions		105			232			337			105			232			337

Gross carrying amount	$	553		$	325		$	878		$	557		$	346		$	903

Silicon Systems Group	$	(255	)	$	(8	)	$	(263	)	$	(247	)	$	(6	)	$	(253	)
Applied Global Services		(19	)		(31	)		(50	)		(19	)		(43	)		(62	)
Display		(100	)		(24	)		(124	)		(96	)		(23	)		(119	)
Energy and Environmental Solutions		(45	)		(173	)		(218	)		(37	)		(163	)		(200	)

Accumulated amortization	$	(419	)	$	(236	)	$	(655	)	$	(399	)	$	(235	)	$	(634	)

Carrying amount	$	134		$	89		$	223		$	158		$	111		$	269

Aggregate amortization expense was $13 million and $17 million for the three months ended July 31, 2011 and August 1, 2010, respectively, and $40 million and $71 million for the nine months ended July 31, 2011 and August 1, 2010, respectively. In the second quarter of fiscal 2011, Applied entered into an agreement to divest certain assets held in the Applied Global Services segment and determined certain identified purchased technology and finite-lived intangible assets included in assets held for sale to be impaired, and, accordingly, recorded $6 million of impairment charges.

As of July 31, 2011, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)

2011	$	12
2012		50
2013		48
2014		40
2015		25
Thereafter		48

	$	223

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Business Combinations

9 Months Ended

Jul. 31, 2011

Business Combinations [Abstract]

Business Combinations


Note 9	Business Combinations

On May 4, 2011, Applied and Varian Semiconductor Equipment Associates, Inc. (Varian) announced the signing of a definitive merger agreement (the Merger Agreement) under which Applied agreed to acquire Varian for $63 per share in cash. The total consideration is approximately $4.9 billion, which includes certain post-closing equity based compensation. Varian designs, manufactures, markets and services semiconductor processing equipment and is the leading supplier of ion implantation equipment used by chip makers around the world. Varian stockholders approved the Merger Agreement at a special meeting held on August 11, 2011. Consummation of the proposed merger remains subject to various other customary closing conditions, including receipt of certain domestic and foreign antitrust approvals (including under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act). Upon completion of the merger, Varian will operate within Applied’s Silicon Systems Group and will continue to be based in Gloucester, Massachusetts.

The Merger Agreement contains certain termination rights and provides that (i) upon the termination of the Merger Agreement under specified circumstances, including, among others, by Varian to accept a superior offer or by Applied upon a change in the recommendation of Varian’s board of directors, Varian will owe Applied a cash termination fee of $147 million; and (ii) upon termination of the Merger Agreement due to the failure to obtain certain antitrust approvals, Applied will owe Varian a cash termination fee of $200 million.

Applied expects to fund the transaction with a combination of existing cash balances and debt. On June 8, 2011, Applied issued senior unsecured notes (the Notes) in the aggregate principal amount of $1.75 billion with the intent of using the net proceeds of the Notes to fund a portion of the consideration and certain costs associated with the proposed merger. In the event that the Merger Agreement is terminated or Applied does not consummate the merger on or before May 31, 2012, Applied will be required to redeem the Notes at a redemption price of 101% of the aggregate principal amount of the accrued and unpaid interest. The indenture governing the Notes includes certain covenants with which Applied was in compliance at July 31, 2011. See Note 10 for additional discussion of long-term debt.

On June 13, 2011, Applied received a request for additional information from the Antitrust Division of the U.S. Department of Justice (DOJ) in connection with the merger as part of the regulatory process under the HSR Act. Applied is responding to the request and will continue to work cooperatively with the DOJ as the DOJ conducts its review. The effect of the DOJ’s request is to extend the waiting period imposed by the HSR Act until 30 days after Applied has substantially complied with the request and Varian has substantially complied with the request that it received.

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6927-128479

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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-Paragraph 6
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Borrowing Facilities and Long-Term Debt [Abstract]

Borrowing Facilities and Long-Term Debt

9 Months Ended

Jul. 31, 2011

Borrowing Facilities and Long Term-Debt


Note 10	Borrowing Facilities and Long-Term Debt

Applied has credit facilities for unsecured borrowings in various currencies of up to $1.6 billion, of which $1.5 billion is comprised of a four-year revolving credit agreement with a group of banks that is scheduled to expire in May 2015. This agreement provides for borrowings in United States dollars at interest rates keyed to one of the two rates selected by Applied for each advance and includes financial and other covenants with which Applied was in compliance at July 31, 2011. Remaining credit facilities in the amount of approximately $103 million are with Japanese banks. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. No amounts were outstanding under any of these facilities at both July 31, 2011 and October 31, 2010.

Long-term debt outstanding as of July 31, 2011 was as follows:


	Principal			Stated			Effective			Interest	Interest
Due Date	Amount			Interest Rate			Interest Rate			Pay Date	Pay Date
	(In millions)

June 15, 2016	$	400			2.650	%		2.666	%	June 15	December 15
October 15, 2017		200			7.125	%		7.190	%	April 15	October 15
June 15, 2021		750			4.300	%		4.326	%	June 15	December 15
June 15, 2041		600			5.850	%		5.879	%	June 15	December 15
Other debt		1

		1,951
Total unamortized discount		(4	)
Current portion		—

Total long-term debt	$	1,947

Long-term debt outstanding as of October 31, 2010 was as follows:


	Principal			Stated			Effective			Interest		Interest
Due Date	Amount			Interest Rate			Interest Rate			Pay Date		Pay Date
	(In millions)

October 15, 2017	$	200			7.125	%		7.190	%		April 15		October 15
Other debt		5

		205
Total unamortized discount		—
Current portion		(1	)

Total long-term debt	$	204

In June 2011, Applied issued senior unsecured notes due 2016, 2021, and 2041 in the aggregate principal amount of $1.75 billion (collectively, the Notes) pursuant to the terms of an indenture and first supplemental indenture (collectively, the Indenture). The Indenture contains certain covenants with which Applied was in compliance at July 31, 2011. The Notes were sold in a public offering pursuant to a registration statement on Form S-3 and related preliminary prospectus supplement filed with the Securities and Exchange Commission (SEC) on June 1, 2011, and a related final prospectus supplement filed with the SEC on June 2, 2011. Applied intends to use the net proceeds of the Notes to fund a portion of the consideration payable in, and certain costs associated with, Applied’s proposed merger with Varian. In the event that the Merger Agreement is terminated or Applied does not consummate the merger on or before May 31, 2012, Applied will be required to redeem the Notes at a redemption price equal to 101% of the aggregate principal amount of the Notes plus any accrued and unpaid interest.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Restructuring and Asset Impairments [Abstract]

Restructuring and Asset Impairments

9 Months Ended

Jul. 31, 2011

Restructuring and Asset Impairments


Note 11	Restructuring and Asset Impairments

On July 21, 2010, Applied announced a plan to restructure its Energy and Environmental Solutions segment, which was expected to impact between 400 to 500 positions globally. During the third quarter of fiscal 2010, Applied incurred employee severance charges of $45 million associated with this program. During the first quarter of fiscal 2011, as a result of changes in Applied’s operating environment and business requirements, Applied revised its workforce reduction under this program to approximately 200 positions and recorded a favorable adjustment of $28 million. The improved economic environment continued in the second quarter of fiscal 2011, and as a result Applied recorded an additional favorable adjustment of $8 million. As of July 31, 2011, the remaining severance accrual associated with restructuring reserves under this program was $1 million.

On November 11, 2009, Applied announced a restructuring program to reduce its global workforce as of October 25, 2009 by approximately 1,300 to 1,500 positions, or 10 to 12 percent, over a period of 18 months. During the first quarter of fiscal 2010, Applied recorded restructuring charges of $104 million associated with this program. During the third quarter of fiscal 2010, as a result of changes in business requirements, Applied revised its global workforce reduction under this program to approximately 1,000 positions and recorded a favorable adjustment of $20 million. The improved economic environment continued in the second quarter of fiscal 2011, and as a result Applied recorded an additional favorable adjustment of $19 million. As of July 31, 2011, the remaining severance accrual associated with restructuring reserves under this program was $10 million.

During the first and second quarters of fiscal 2011, Applied favorably adjusted the severance accrual associated with a global restructuring program announced in the first quarter of fiscal 2009 by $4 million and $1 million, respectively. As of July 31, 2011, no severance accrual remained under this program.

Changes in severance accruals associated with restructuring reserves for the nine months ended July 31, 2011 were as follows:


	Severance
	(In millions)

Balance, October 31, 2010	$	99
Consumption of reserves		(14	)
Adjustment of restructuring reserves		(32	)

Balance, January 30, 2011		53
Consumption of reserves		(7	)
Adjustment of restructuring reserves		(28	)

Balance, May 1, 2011		18
Consumption of reserves		(7	)

Balance, July 31, 2011	$	11

In addition, as of July 31, 2011, Applied had $5 million in restructuring reserves associated with facilities.

In the second quarter of fiscal 2011, Applied incurred impairment charges of $24 million associated with certain intangible assets and purchased technology. See Note 8 of the Notes to Consolidated Condensed Financial Statement. In the third quarter of fiscal 2011, Applied incurred asset impairment charges of $3 million related to certain fixed assets.

In the second quarter of fiscal 2010, Applied recorded an asset impairment charge of $9 million to write down a facility to its estimated fair value based on prices for comparable local properties. The facility was reclassified as an asset held for sale. In the first quarter of fiscal 2011, Applied recorded additional impairment charges of $3 million related to this facility.

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

9 Months Ended

Jul. 31, 2011

Stockholders' Equity, Comprehensive Income and Share-Based Compensation [Abstract]

Stockholders' Equity, Comprehensive Income and Share-Based Compensation


Note 12	Stockholders’ Equity, Comprehensive Income and Share-Based Compensation

Comprehensive Income

Components of comprehensive income, on an after-tax basis where applicable, were as follows:


	Three Months Ended					Nine Months Ended
	July 31,			August 1,		July 31,			August 1,
	2011			2010		2011			2010
	(In millions)

Net income	$	476		$	123	$	1,471		$	470
Change in unrealized net gain on investments		(1	)		5		(2	)		7
Change in unrealized net gain on derivative instruments
qualifying as cash flow hedges		(6	)		1		(4	)		1
Change in defined benefit plan liability		—			—		(1	)		—
Foreign currency translation adjustments		1			1		1			—

Comprehensive income	$	470		$	130	$	1,465		$	478

Components of accumulated other comprehensive income (loss), on an after-tax basis where applicable, were as follows:


	July 31,			October 31,
	2011			2010
	(In millions)

Pension liability	$	(40	)	$	(39	)
Unrealized gain on investments, net		23			25
Unrealized gain on derivative instruments qualifying as cash flow hedges		—			4
Cumulative translation adjustments		13			12

Accumulated other comprehensive income (loss)	$	(4	)	$	2

For further details on derivative instruments, see Note 5 of the Notes to Consolidated Condensed Financial Statements.

Stock Repurchase Program

On March 8, 2010, Applied’s Board of Directors approved a new stock repurchase program authorizing up to $2.0 billion in repurchases over the next three years ending in March 2013. Under this authorization, Applied renewed its systematic stock repurchase program and may also make supplemental stock repurchases from time to time, depending on market conditions, stock price and other factors.

The following table summarizes Applied’s stock repurchases during the three and nine months ended July 31, 2011 and August 1, 2010:


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions, except per share amounts)

Shares of common stock repurchased		2		8		20		16
Cost of stock repurchased	$	25	$	100	$	293	$	200
Average price paid per share	$	12.77	$	12.65	$	14.31	$	12.87

Dividends

The following table summarizes the dividends declared by Applied’s Board of Directors during fiscal 2011:


Date Declared	Record Date	Payable Date	Amount per Share

December 7, 2010	March 2, 2011	March 23, 2011	$	0.07
March 8, 2011	June 1, 2011	June 22, 2011	$	0.08
June 6, 2011	August 31, 2011	September 21, 2011	$	0.08

Applied currently anticipates that it will continue to pay cash dividends on a quarterly basis in the future, although the declaration and amount of any future cash dividend are at the discretion of the Board of Directors and will depend on Applied’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interest of Applied’s stockholders.

Share-Based Compensation

Applied has adopted stock plans that permit grants to employees of share-based awards, including stock options, restricted stock and restricted stock units (also referred to as “performance shares” under Applied’s principal equity compensation plan, the 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 share-based awards to consultants. Applied also has two Employee Stock Purchase Plans, one generally for United States employees and a second for employees of international subsidiaries (collectively, ESPP), which enable eligible employees to purchase Applied common stock.

During the three and nine months ended July 31, 2011 and August 1, 2010, Applied recognized equity-based compensation expense related to stock options, ESPP shares, restricted stock units and restricted stock. Total share-based compensation and related tax benefits were as follows:


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Share-based compensation	$	38	$	32	$	110	$	95
Tax benefit recognized	$	11	$	10	$	33	$	28

The effect of share-based compensation on the results of operations for the three and nine months ended July 31, 2011 and August 1, 2010 was as follows:


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Cost of products sold	$	13	$	10	$	36	$	23
Research, development, and engineering		12		11		35		33
General and administrative		9		8		27		24
Marketing and selling		4		3		12		15

Total share-based compensation	$	38	$	32	$	110	$	95

The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved.

At July 31, 2011, Applied had $243 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of stock options, restricted stock units and restricted stock, and shares issued under Applied’s ESPP, which will be recognized over a weighted average period of 2.8 years. At July 31, 2011, there were 155 million shares available for stock option, restricted stock unit, and restricted stock grants and an additional 56 million shares available for issuance under the ESPP.

Stock Options

Applied grants options to purchase shares of its common stock to employees and consultants. The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Options typically vest over three to four years, subject to the grantee’s continued service with Applied through the scheduled vesting date, 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. There were no stock options granted in the nine months ended July 31, 2011.

Stock option activity for the nine months ended July 31, 2011 was as follows:


				Weighted
				Average
				Exercise
	Shares			Price
	(In millions, except per share amounts)

Outstanding, at October 31, 2010		51		$	15.04
Granted		—		$	—
Exercised		(4	)	$	9.29
Canceled and forfeited		(15	)	$	20.76

Outstanding at July 31, 2011		32		$	13.10

Exercisable at July 31, 2011		26		$	14.22

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 has the same rights as other issued and outstanding shares of Applied common stock except these shares have no right to dividends and are held in escrow until the award vests. Restricted stock units and awards of restricted stock typically vest over three to four years. Vesting of restricted stock units and restricted stock usually is subject to the grantee’s continued service with Applied and, in some cases, achievement of specified performance goals. The compensation expense related to these awards is determined using the fair market value of Applied common stock on the date of the grant, and the compensation expense is recognized over the vesting period. Beginning in fiscal 2007, Applied initiated a performance-based equity award program for named executive officers and other key employees. Awards of restricted stock units or restricted stock granted under this program 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 adjusted annual operating profit margin levels compared to Applied’s peer companies in at least one of the four fiscal years beginning with the fiscal year of the grant. The fair value of these performance-based awards is estimated using the fair market value of Applied common stock on the date of the grant and assumes that the specified performance goals will be achieved. If achieved, these awards vest 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. The Committee approved the grant of 2 million performance-based restricted stock units and 0.1 million performance-based shares of restricted stock under this program in the nine months ended July 31, 2011. With respect to the performance-based awards granted in fiscal 2010, as of July 31, 2011, 40 percent of the awards had been earned, subject to additional time-based vesting requirements. The remaining 60 percent of the awards may still be earned, depending on future performance in one or more of fiscal years 2011 through 2013. With respect to most of the performance-based awards granted in fiscal 2008, as of July 31, 2011, 78 percent of the awards had been earned, subject to additional time-based vesting requirements. The remaining 22 percent of the awards may still be earned depending on performance during fiscal 2011.

Restricted stock unit and restricted stock activity for the nine months ended July 31, 2011 was as follows:


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

Non-vested restricted stock units and restricted stock at October 31, 2010		18		$	13.33		2.8 Years
Granted		17		$	12.65
Vested		(4	)	$	13.59
Canceled		(2	)	$	13.18

Non-vested restricted stock units and restricted stock at July 31, 2011		29		$	12.90		2.9 Years

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 or end of each 6-month purchase period, subject to certain limits. Based on the Black-Scholes option pricing model, the weighted average estimated fair value of purchase rights under the ESPP was $3.61 and $3.00 for the nine months ended July 31, 2011 and August 1, 2010, respectively. No shares were issued under the ESPP during the three months ended July 31, 2011 or August 1, 2010. The number of shares issued under the ESPP during the nine months ended July 31, 2011 and August 1, 2010 was 3 million and 2 million, respectively. 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:


	Nine Months Ended
	July 31,			August 1,
	2011			2010

ESPP:
Dividend yield		1.98	%		2.24	%
Expected volatility		27	%		33	%
Risk-free interest rate		0.17	%		0.18	%
Expected life (in years)		0.5			0.5

Employee Benefit Plans

9 Months Ended

Jul. 31, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans


Note 13	Employee Benefit Plans

Applied sponsors a number of employee benefit plans, including defined benefit plans of certain foreign subsidiaries, and a plan that provides certain medical and vision benefits to eligible retirees. A summary of the components of net periodic benefit costs of these defined and postretirement benefit plans for the three and nine months ended July 31, 2011 and August 1, 2010 is presented below:


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Service cost	$	4		$	3		$	11		$	10
Interest cost		3			4			10			10
Expected return on plan assets		(3	)		(2	)		(8	)		(6	)
Amortization of actuarial loss		1			—			2			1

Net periodic benefit cost	$	5		$	5		$	15		$	15

The entire disclosure for pension and other postretirement benefits.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Income Taxes

9 Months Ended

Jul. 31, 2011

Income Taxes [Abstract]

Income Taxes


Note 14	Income Taxes

Applied’s effective income tax rate for the third quarter of fiscal 2011 and fiscal 2010 was a provision of 28.8 percent and 30.8 percent, respectively. Applied’s effective income tax rate for the first nine months of fiscal 2011 and fiscal 2010 was a provision of 27.7 percent and 31.3 percent, respectively. The rates for the three and nine months ended July 31, 2011 were both lower than the rates for the comparable periods in the prior year primarily due to an increase in income in jurisdictions outside the U.S. with lower tax rates. The tax rates for the three and nine months ended July 31, 2011 further benefited from tax incentives offered in several jurisdictions. The tax rates for the nine months ended July 31, 2011 and for the three and nine months ended August 1, 2010 included the impact of restructuring charges. Applied’s future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of Applied’s pre-tax income, and the tax rate on equity compensation. Management carefully monitors these factors and timely adjusts the interim income tax rate accordingly.

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 other states for fiscal 2005 and later years, and tax returns in certain jurisdictions outside of the United States for fiscal 2003 and later years.

Applied has requested a refund of federal income tax through an amended return for fiscal 2006 that has been under audit by the Internal Revenue Service along with the Company’s fiscal 2007 return. The Internal Revenue Service has recommended a refund in the amount of $240 million plus interest, which is subject to approval by the Joint Committee on Taxation of the U.S. Congress. The Joint Committee on Taxation may complete its review by the end of fiscal 2011, which may impact Applied’s unrecognized tax benefits. The refund will be recognized when notice of congressional approval is received.

The timing of the resolution of income tax examinations, as well as the amounts and timing of various tax payments that may be made as part of the resolution process, is highly uncertain. This could cause large fluctuations in the balance sheet classification of current assets and non-current assets and liabilities.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9 Months Ended

Jul. 31, 2011

Commitments and Contingencies


Note 15	Commitments and Contingencies

Warranty

Changes in the warranty reserves during the three and nine months ended July 31, 2011 and August 1, 2010 were as follows:


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Beginning balance	$	184		$	140		$	155		$	117
Provisions for warranty		43			37			142			103
Consumption of reserves		(39	)		(30	)		(109	)		(73	)

Ending balance	$	188		$	147		$	188		$	147

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. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales.

Guarantees

In the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either Applied or its subsidiaries. As of July 31, 2011, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $52 million. Applied has not recorded any liability in connection with these guarantee agreements beyond 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 agreements.

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 July 31, 2011, Applied Materials Inc. has provided parent guarantees to banks for approximately $200 million to cover these services.

Legal Matters

Varian Shareholder Litigation

In connection with the proposed merger with Varian, on July 13, 2011, a lawsuit (the “Crane lawsuit”) was filed in the U.S. District Court for the District of Massachusetts by David Crane, individually and on behalf of a putative class of Varian stockholders, against Varian and its directors, as well as Applied and Applied’s acquisition subsidiary. The Crane lawsuit alleged that Varian’s directors breached their fiduciary duties by failing to maximize shareholder value, securing benefits for certain defendants, inhibiting alternative offers and failing to disclose material information, and that Applied aided and abetted such alleged breaches. The plaintiff in the Crane lawsuit filed a motion for expedited discovery that was denied on July 18, 2011, and his renewed discovery motion was denied on July 20, 2011. On July 21, 2011, plaintiff voluntarily dismissed his action without prejudice.

On July 23, 2011, the Louisiana Municipal Police Employees Retirement Systems filed a lawsuit (the “LMPERS lawsuit”), for itself and on behalf of a putative class of Varian stockholders, in the same court and against the same defendants as, and alleging claims similar to, the Crane lawsuit. The LMPERS lawsuit seeks, among other things, an order rescinding the Merger Agreement, an injunction preventing consummation of the transaction, a constructive trust in favor of the plaintiff class, and attorneys’ fees. On July 25, 2011, plaintiff in the LMPERS lawsuit filed motions for expedited discovery and for a preliminary injunction to prevent a shareholder vote on the merger. The Court denied plaintiff’s motion for expedited discovery on August 1, 2011 and denied plaintiff’s motion for a preliminary injunction on August 8, 2011.

Applied believes that the LMPERS lawsuit is without merit and that Applied has meritorious defenses that it intends to pursue vigorously.

Semitool Shareholder Litigation

On November 17, 2009, Applied announced that it was making a tender offer to acquire all of the outstanding shares of Semitool, Inc. (Semitool) in accordance with an Agreement and Plan of Merger entered into with Semitool. Following this announcement, three lawsuits were filed by Semitool shareholders in the District Court of the Eleventh Judicial District Court for the State of Montana, County of Flathead, against Semitool, Semitool’s directors, Applied Materials, Inc. and Applied’s acquisition subsidiary. The actions sought certification of a class of all holders of Semitool common stock, except the defendants and their affiliates. The complaints alleged that Semitool’s directors breached their fiduciary duties by, among other things, failing to maximize shareholder value and failing to disclose material information, and that Applied aided and abetted such alleged breaches. The actions sought injunctive relief, damages and attorneys’ fees.

On December 14, 2009, all parties in these cases reached an agreement in principle to settle the matters. Without admitting any wrongdoing or fault, Semitool disclosed certain additional information in its Schedule 14D-9 filed with the SEC on December 14, 2009. Following the tender of shares representing over 95 percent of the outstanding shares of Semitool common stock, the merger of Semitool into Applied’s acquisition subsidiary was completed on December 21, 2009. In November 2010, the parties filed their Stipulation and Agreement of Settlement, which provided, among other things, that plaintiffs agreed to release all known and unknown claims related to the tender offer and the merger (with certain exceptions), and defendants agreed not to object to an application by plaintiffs’ counsel for an award of attorneys’ fees and expenses in an amount up to $200,000. Under its order issued January 12, 2011, the Court preliminarily approved the stipulation and settlement and certified a class of Semitool’s public shareholders solely for purposes of settlement, comprised of all record and beneficial holders of Semitool common stock from November 17, 2009 through December 21, 2009 (subject to specified exclusions). The Court further approved, as to form and content, the notice to the class and set a settlement hearing for April 4, 2011. Following the hearing on April 4, 2011, the Court issued its order and final entry of judgment approving the settlement, which resulted in a complete and final discharge of all of plaintiffs’ claims in the third quarter of fiscal 2011.

Jusung

Applied has been engaged in several lawsuits and patent and administrative proceedings with Jusung Engineering Co., Ltd. and/or Jusung Pacific Co., Ltd. (Jusung) in Taiwan and South Korea since 2003, and more recently in China, 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. Jusung filed a counterclaim against Applied. On December 31, 2010, the Hsinchu District Court announced that it had ruled against Applied and dismissed the lawsuit and Jusung’s counterclaim. Applied appealed the dismissal of its lawsuit and Jusung appealed the dismissal of its counterclaim. Jusung unsuccessfully sought invalidation of Applied’s CVD patent in the Taiwanese Intellectual Property Office (TIPO). In September 2010, the Taipei Supreme Administrative Court dismissed Jusung’s appeal of the TIPO’s decision. In 2009, Jusung filed a second action with the TIPO seeking invalidation of Applied’s CVD patent, which action remains pending.

In 2006, Applied filed an action in the TIPO challenging the validity of a Jusung patent related to separability of the transfer chamber on a CVD tool. Jusung sued Applied and AKT America in Hsinchu District Court in Taiwan alleging infringement of the same patent. In March 2009, the Hsinchu District Court dismissed Jusung’s lawsuit, and in October, 2010, the Taiwan Intellectual Property Court dismissed Jusung’s appeal. Separately, the TIPO granted Applied’s request for invalidation and also revoked Jusung’s patent. In January 2010, the Taiwan Intellectual Property Court granted Jusung’s appeal of the TIPO decision revoking its patent and remanded the matter to the TIPO for reconsideration of validity. TIPO subsequently granted another party’s request for invalidation of Jusung’s patent. Jusung appealed to the Taiwan Intellectual Property Court and Applied intervened in the appeal. On May 12, 2011, the Taiwan Intellectual Property Court dismissed Jusung’s appeal. Jusung has appealed this decision to the Taipei Supreme Administrative Court. In November 2009, Applied filed an action in China with the Patent Reexamination Board of the State Intellectual Property Office seeking to invalidate this patent. On June 18, 2010, the Patent Reexamination Board issued a decision invalidating Jusung’s patent in China. Jusung appealed to the Beijing No. 1 Intermediate People’s Court and on June 13, 2011, this Court dismissed Jusung’s appeal.

In 2006, Jusung 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 Chairman, 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 issued five separate rulings not to prosecute, each of which Jusung appealed. In each instance, the Taiwan High Court District Attorney returned the matter to the Taipei District Attorney’s Office for further consideration, where it is now pending.

Korea Criminal Proceedings

In February 2010, the Seoul Prosecutor’s Office for the Eastern District of Korea (the Prosecutor’s Office) indicted employees of several companies for the alleged improper receipt and use of confidential information belonging to Samsung Electronics Co., Ltd. (Samsung), a major Applied customer based in Korea. The Prosecutor’s Office did not name Applied or any of its subsidiaries as a party to the criminal action. The individuals charged included the former head of Applied Materials Korea (AMK), who at the time of the indictment was a vice president of Applied Materials, Inc., and certain other AMK employees. Hearings on these matters are ongoing in the Seoul Eastern District Court. Applied and Samsung entered into a settlement agreement effective as of November 1, 2010, which resolves potential civil claims related to this matter, which is separate from and does not affect the criminal proceedings.

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 or misusing 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.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Paragraph 4
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Industry Segment Operations [Abstract]

Industry Segment Operations

9 Months Ended

Jul. 31, 2011

Industry Segment Operations


Note 16	Industry Segment Operations

Applied’s four reportable segments are: Silicon Systems Group, 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 July 31, 2011 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’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 share-based compensation; certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level; 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, unless these charges or adjustments pertain to a specific reportable segment. Segment operating income excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments.

In fiscal 2010, as part of the restructuring of the Energy and Environmental Solutions segment, Applied discontinued marketing of its fully-integrated SunFab production lines but continued to offer individual tools for thin film solar manufacturing. Applied is supporting existing SunFab customers with services, upgrades and capacity increases through its Applied Global Services segment as these products are considered to have reached a particular stage in the product lifecycle. Effective in the first quarter of fiscal 2011, Applied accounts for thin film products under its Applied Global Services segment.

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

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, remanufactured equipment, and products that have reached a particular stage in the product lifecycle. 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 includes products for manufacturing LCDs for TVs, personal computers, video-enabled devices and touch panel applications.

The Energy and Environmental Solutions segment includes products for fabricating crystalline-silicon (c-Si) 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.

Net sales and operating income (loss) for each reportable segment for the three and nine months ended July 31, 2011 and August 1, 2010 were as follows:


	Three Months Ended					Nine Months Ended
			Operating					Operating
	Net Sales		Income (Loss)			Net Sales		Income (Loss)
	(In millions)

July 31, 2011:
Silicon Systems Group	$	1,398	$	452		$	4,348	$	1,486
Applied Global Services		603		146			1,784		322
Display		223		58			528		116
Energy and Environmental Solutions		563		123			1,676		436

Total Segment	$	2,787	$	779		$	8,336	$	2,360

August 1, 2010:
Silicon Systems Group	$	1,447	$	525		$	3,821	$	1,328
Applied Global Services		468		84			1,349		237
Display		216		64			618		179
Energy and Environmental Solutions		387		(371	)		874		(552	)

Total Segment	$	2,518	$	302		$	6,662	$	1,192

Operating results for the nine months ended July 31, 2011 included favorable adjustments of $36 million related to a restructuring program, announced in fiscal 2010, which was reported in the Energy and Environmental Solutions segment.

In the second quarter of fiscal 2011, Applied entered into an agreement to divest certain assets held in the Applied Global Services segment and determined certain identified intangible assets and purchased technology included in assets held for sale to be impaired. Results for the nine months ended July 31, 2011 included impairment charges of $24 million, which were reported in the Applied Global Services segment.

Reconciliations of total segment operating income to Applied’s consolidated operating income for the three and nine months ended July 31, 2011 and August 1, 2010 were as follows:


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Total segment operating income	$	779		$	302		$	2,360		$	1,192
Corporate and unallocated costs		(120	)		(139	)		(371	)		(414	)
Restructuring and asset impairment benefit (charges), net		—			20			21			(93	)
Gain on sale of facilities, net		28			—			27			—

Income from operations	$	687		$	183		$	2,037		$	685

The following companies accounted for at least 10 percent of Applied’s net sales for the nine months ended July 31, 2011, which were for products in multiple reportable segments.


	July 31,
	2011

Samsung Electronics Co., Ltd.		12	%
Taiwan Semiconductor Manufacturing Company Limited		11	%

As of July 31, 2011, accounts receivable for those customers that accounted for at least 10 percent of Applied’s net sales for the nine months ended July 31, 2011, as a percentage of total accounts receivable, were as follows:


	July 31,
	2011

Samsung Electronics Co., Ltd.		5	%
Taiwan Semiconductor Manufacturing Company Limited		9	%

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Subsequent Event

9 Months Ended

Jul. 31, 2011

Subsequent Event [Abstract]

Subsequent Event


Note 17	Subsequent Event

On August 11, 2011 the stockholders of Varian approved the Merger Agreement with Applied, which is one of the conditions to the closing of the proposed merger.

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Jul. 31, 2011
Basis of Presentation [Abstract]
Basis of Presentation	*Basis of Presentation* In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 31, 2010 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010 (2010 Form 10-K). Applied’s results of operations for the three and nine months ended July 31, 2011 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2011 contains 52 weeks, while fiscal 2010 contained 53 weeks, and the first nine months of fiscal 2011 contained 39 weeks, while the first nine months of fiscal 2010 contained 40 weeks.
Use of Estimates	*Use of Estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Revenue Recognition	*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 probable. 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, 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 using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. 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 production lines. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided. Applied elected to early adopt amended accounting standards issued by the Financial Accounting Standards Board (FASB) for multiple deliverable revenue arrangements on a prospective basis for applicable transactions originating or materially modified after October 25, 2009. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance when the software is essential to the tangible product’s functionality. Implementation of this new authoritative guidance had an insignificant impact on reported net sales compared to net sales under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an inconsequential impact on the amount and timing of reported net sales. For fiscal 2010 and subsequent periods, when a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.
Recent Accounting Pronouncement	*Recent Accounting Pronouncements* In June 2011, the FASB issued authoritative guidance on the presentation of comprehensive income to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This authoritative guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity. This guidance is effective for Applied in the first quarter of fiscal 2012, with early adoption permitted, and should be applied retrospectively. The implementation of this authoritative guidance will change the presentation of comprehensive income only. In May 2011, the FASB issued authoritative guidance to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. This authoritative guidance limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts. This authoritative guidance also expands the disclosures on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The new guidance will be effective for Applied in the first quarter of fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations. In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in the first quarter fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations. In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in the first quarter of fiscal 2012.
Stockholders Equity	In June 2011, the FASB issued authoritative guidance on the presentation of comprehensive income to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This authoritative guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity. This guidance is effective for Applied in the first quarter of fiscal 2012, with early adoption permitted, and should be applied retrospectively. The implementation of this authoritative guidance will change the presentation of comprehensive income only.
Fair value of financial instrument	In May 2011, the FASB issued authoritative guidance to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. This authoritative guidance limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts. This authoritative guidance also expands the disclosures on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The new guidance will be effective for Applied in the first quarter of fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations.
Goodwill and Other Intangible Assets	In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in the first quarter fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations.
Business Combinations	In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in the first quarter of fiscal 2012.

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

Elements used in computing both basic and diluted net earnings per share

Earnings Per Share (Tables)

9 Months Ended

Jul. 31, 2011

Earnings Per Share [Abstract]


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions, except per share amounts)

Numerator:
Net income	$	476	$	123	$	1,471	$	470
Denominator:
Weighted average common shares outstanding		1,318		1,340		1,321		1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares		12		9		12		9

Denominator for diluted earnings per share		1,330		1,349		1,333		1,351

Basic earnings per share	$	0.36	$	0.09	$	1.11	$	0.35
Diluted earnings per share	$	0.36	$	0.09	$	1.10	$	0.35
Potentially dilutive securities		17		34		17		34

Cash, Cash Equivalents and Investments (Tables)

9 Months Ended

Jul. 31, 2011

Cash, Cash Equivalents and Investments [Abstract]

Summary of cash, cash equivalents and investments


			Gross		Gross
			Unrealized		Unrealized		Estimated
July 31, 2011	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	918	$	—	$	—	$	918

Cash equivalents:
Money market funds		3,895		—		—		3,895
U.S. commercial paper, corporate bonds and medium-term notes		190		—		—		190
Obligations of states and political subdivisions		15		—		—		15

Total Cash equivalents		4,100		—		—		4,100

Total Cash and Cash equivalents	$	5,018	$	—	$	—	$	5,018

Short-term and long-term investments:
U.S. Treasury and agency securities	$	483	$	3	$	—	$	486
Obligations of states and political subdivisions		452		3		—		455
U.S. commercial paper, corporate bonds and medium-term notes		390		5		—		395
Other debt securities*		363		3		1		365

Total fixed income securities		1,688		14		1		1,701
Publicly traded equity securities		8		21		—		29
Equity investments in privately-held companies		61		—		—		61

Total short-term and long-term investments	$	1,757	$	35	$	1	$	1,791

Total Cash, Cash equivalents and Investments	$	6,775	$	35	$	1	$	6,809


			Gross		Gross
			Unrealized		Unrealized		Estimated
October 31, 2010	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	701	$	—	$	—	$	701

Cash equivalents:
Money market funds		1,139		—		—		1,139
Obligations of states and political subdivisions		18		—		—		18

Total Cash equivalents		1,157		—		—		1,157

Total Cash and Cash equivalents	$	1,858	$	—	$	—	$	1,858

Short-term and long-term investments:
U.S. Treasury and agency securities	$	665	$	8	$	—	$	673
Obligations of states and political subdivisions		500		5		—		505
U.S. commercial paper, corporate bonds and medium-term notes		502		7		—		509
Other debt securities*		261		3		1		263

Total fixed income securities		1,928		23		1		1,950
Publicly traded equity securities		9		16		—		25
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	1,996	$	39	$	1	$	2,034

Total Cash, Cash equivalents and Investments	$	3,854	$	39	$	1	$	3,892


*		Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Contractual maturities of investments


			Estimated
	Cost		Fair Value
	(In millions)

Due in one year or less	$	704	$	707
Due after one through five years		618		626
Due after five years		3		3
No single maturity date		432		455

	$	1,757	$	1,791

Gains and losses on investments


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Gross realized gains	$	1	$	1	$	14	$	3
Gross realized losses	$	1	$	1	$	2	$	1

Gross unrealized losses and the fair market value of investments

In Loss Position for

Less Than 12 Months

Total

Gross

Unrealized

Fair Value

Losses

Fair Value

Losses

(In millions)

Other debt securities

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 21
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 12
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 7, 13, 16, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section M

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6379932&loc=d3e22054-111558

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (c)-(e)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 5.M)
-URI http://asc.fasb.org/extlink&oid=6784337&loc=d3e87990-122713

Financial assets/liabilities measured at fair value on a recurring basis

Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2011

Fair Value Measurements [Abstract]


	July 31, 2011										October 31, 2010
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In millions)										(In millions)

Assets:
Money market funds	$	3,895	$	—		$	—	$	3,895		$	1,139	$	—		$	—	$	1,139
U.S. Treasury and agency securities		116		370			—		486			153		520			—		673
U.S. commercial paper, corporate bonds and medium-term notes		—		585			—		585			—		509			—		509
Obligations of states and political subdivisions		—		470			—		470			—		523			—		523
Other debt securities		—		365			—		365			—		263			—		263
Publicly traded equity securities		29		—			—		29			25		—			—		25
Foreign exchange derivative assets		—		2			—		2			—		6			—		6

Total	$	4,040	$	1,792		$	—	$	5,832		$	1,317	$	1,821		$	—	$	3,138

Liabilities:
Foreign exchange derivative liabilities	$	—	$	(4	)	$	—	$	(4	)	$	—	$	(1	)	$	—	$	(1	)

Total	$	—	$	(4	)	$	—	$	(4	)	$	—	$	(1	)	$	—	$	(1	)

Impairment charges


							Total		Total
							Impairment for		Impairment for
							the Three		the Nine
							Months Ended		Months Ended
	Level 1		Level 2		Level 3		July 31, 2011		July 31, 2011
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2011	$	—	$	—	$	22	$	—	$	—


							Total		Total
							Impairment for		Impairment for
							the Three		the Nine
							Months Ended		Months Ended
	Level 1		Level 2		Level 3		August 1, 2010		August 1, 2010
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2010	$	—	$	—	$	23	$	8	$	13

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Jul. 31, 2011

Derivative Instruments and Hedging Activities [Abstract]

Fair values of derivative instruments


		Asset Derivatives					Liability Derivatives
	Balance Sheet	July 31,				Balance Sheet	July 31,
	Location	2011		October 31, 2010		Location	2011		October 31, 2010
		(In millions)					(In millions)

Derivatives Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	5	Accrued expenses	$	4	$	1

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	1	Accrued expenses	$	—	$	—

Total derivatives		$	2	$	6		$	4	$	1

Derivative instruments on consolidated condensed statement of operations


		Three Months Ended July 31, 2011								Three Months Ended August 1, 2010
							Ineffective Portion									Ineffective Portion
							and Amount									and Amount
	Location of Gain						Excluded from									Excluded from
	or (Loss)						Effectiveness									Effectiveness
	Reclassified from	Effective Portion					Testing			Effective Portion						Testing
	AOCI into Income	Gain or (Loss)			Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	or Recognized in	Recognized in			Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	Income	AOCI			AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)								(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	(7	)	$	1	$	(2	)	$	(3	)	$	(1	)	$	(2	)
Foreign exchange contracts	General and administrative		—			2		—			—			(3	)		—

Total		$	(7	)	$	3	$	(2	)	$	(3	)	$	(4	)	$	(2	)


		Nine Months Ended July 31, 2011							Nine Months Ended August 1, 2010
						Ineffective Portion									Ineffective Portion
						and Amount									and Amount
	Location of Gain					Excluded from									Excluded from
	or (Loss)					Effectiveness									Effectiveness
	Reclassified from	Effective Portion				Testing			Effective Portion						Testing
	AOCI into Income	Gain or (Loss)		Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	or Recognized in	Recognized in		Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	Income	AOCI		AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)							(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	5	$	6	$	(5	)	$	(5	)	$	(3	)	$	(2	)
Foreign exchange contracts	General and administrative		—		5		(1	)		—			(4	)		(1	)

Total		$	5	$	11	$	(6	)	$	(5	)	$	(7	)	$	(3	)

Derivatives not designated as hedging instruments in statement of operations


		Three Months Ended						Nine Months Ended
		July 31,			August 1,			July 31,			August 1,
		2011			2010			2011			2010
	Location of Gain
	or (Loss)	Amount of Gain or						Amount of Gain or
	Recognized in	(Loss)						(Loss)
	Income	Recognized in Income						Recognized in Income
		(In millions)						(In millions)

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative	$	(5	)	$	(8	)	$	(2	)	$	(12	)

Total		$	(5	)	$	(8	)	$	(2	)	$	(12	)

Accounts Receivable, Net (Tables)

9 Months Ended

Jul. 31, 2011

Accounts Receivable, Net [Abstract]

Sale and discounting of accounts receivable


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Discounted letters of credit	$	38	$	81	$	211	$	134
Factored accounts receivable and discounted promissory notes		25		56		80		106

Total	$	63	$	137	$	291	$	240

Balance Sheet Detail (Tables)

9 Months Ended

Jul. 31, 2011

Balance Sheet Detail [Abstract]

Inventories


	July 31,		October 31,
	2011		2010
	(In millions)

Inventories
Customer service spares	$	328	$	324
Raw materials		408		260
Work-in-process		457		500
Finished goods		656		463

	$	1,849	$	1,547

Property, plant and equipment, net


			July 31,			October 31,
	Useful Life		2011			2010
	(In years)		(In millions)

Property, Plant and Equipment, Net
Land and improvements			$	169		$	227
Buildings and improvements		3-30		1,170			1,234
Demonstration and manufacturing equipment		3-5		679			670
Furniture, fixtures and other equipment		3-15		715			719
Construction in progress				24			19

Gross property, plant and equipment				2,757			2,869
Accumulated depreciation				(1,903	)		(1,906	)

			$	854		$	963

Accounts payable and accrued expenses


	July 31,		October 31,
	2011		2010
	(In millions)

Accounts Payable and Accrued Expenses
Accounts payable	$	656	$	658
Compensation and employee benefits		405		435
Warranty		188		155
Dividends payable		105		93
Other accrued taxes		76		99
Restructuring reserve		16		104
Interest payable		15		1
Other		192		221

	$	1,653	$	1,766

Customer deposits and deferred revenue


	July 31,		October 31,
	2011		2010
	(In millions)

Customer Deposits and Deferred Revenue
Customer deposits	$	442	$	407
Deferred revenue		905		440

	$	1,347	$	847

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 31, 2011

Goodwill, Purchased Technology and Other Intangible Assets [Abstract]

Indefinite-lived intangible assets


	July 31, 2011						October 31, 2010
			Other						Other
			Intangible						Intangible
	Goodwill		Assets		Total		Goodwill		Assets		Total
	(In millions)

Silicon Systems Group	$	381	$	—	$	381	$	381	$	—	$	381
Applied Global Services		193		—		193		177		18		195
Display		116		—		116		116		—		116
Energy and Environmental Solutions		645		—		645		662		—		662

Carrying amount	$	1,335	$	—	$	1,335	$	1,336	$	18	$	1,354

Amortized intangible assets


	July 31, 2011									October 31, 2010
				Other									Other
	Purchased			Intangible						Purchased			Intangible
	Technology			Assets			Total			Technology			Assets			Total
							(In millions)

Silicon Systems Group	$	310		$	20		$	330		$	310		$	20		$	330
Applied Global Services		28			40			68			32			61			93
Display		110			33			143			110			33			143
Energy and Environmental Solutions		105			232			337			105			232			337

Gross carrying amount	$	553		$	325		$	878		$	557		$	346		$	903

Silicon Systems Group	$	(255	)	$	(8	)	$	(263	)	$	(247	)	$	(6	)	$	(253	)
Applied Global Services		(19	)		(31	)		(50	)		(19	)		(43	)		(62	)
Display		(100	)		(24	)		(124	)		(96	)		(23	)		(119	)
Energy and Environmental Solutions		(45	)		(173	)		(218	)		(37	)		(163	)		(200	)

Accumulated amortization	$	(419	)	$	(236	)	$	(655	)	$	(399	)	$	(235	)	$	(634	)

Carrying amount	$	134		$	89		$	223		$	158		$	111		$	269

Future estimated amortization expense


	Amortization Expense
	(In millions)

2011	$	12
2012		50
2013		48
2014		40
2015		25
Thereafter		48

	$	223

Borrowing Facilities and Long-Term Debt (Tables)

9 Months Ended

Jul. 31, 2011

Borrowing Facilities and Long-Term Debt [Abstract]

Long Term Debt Outstanding


	Principal			Stated			Effective			Interest	Interest
Due Date	Amount			Interest Rate			Interest Rate			Pay Date	Pay Date
	(In millions)

June 15, 2016	$	400			2.650	%		2.666	%	June 15	December 15
October 15, 2017		200			7.125	%		7.190	%	April 15	October 15
June 15, 2021		750			4.300	%		4.326	%	June 15	December 15
June 15, 2041		600			5.850	%		5.879	%	June 15	December 15
Other debt		1

		1,951
Total unamortized discount		(4	)
Current portion		—

Total long-term debt	$	1,947

Long-term debt outstanding as of October 31, 2010 was as follows:


	Principal			Stated			Effective			Interest		Interest
Due Date	Amount			Interest Rate			Interest Rate			Pay Date		Pay Date
	(In millions)

October 15, 2017	$	200			7.125	%		7.190	%		April 15		October 15
Other debt		5

		205
Total unamortized discount		—
Current portion		(1	)

Total long-term debt	$	204

Restructuring Charges and Asset Impairments (Tables)

9 Months Ended

Jul. 31, 2011

Restructuring and Asset Impairments [Abstract]

Changes in restructuring reserves related to severance


	Severance
	(In millions)

Balance, October 31, 2010	$	99
Consumption of reserves		(14	)
Adjustment of restructuring reserves		(32	)

Balance, January 30, 2011		53
Consumption of reserves		(7	)
Adjustment of restructuring reserves		(28	)

Balance, May 1, 2011		18
Consumption of reserves		(7	)

Balance, July 31, 2011	$	11

Stockholders' Equity, Comprehensive Income and Equity-Based Compensation (Tables)

9 Months Ended

Jul. 31, 2011

Stockholders' Equity, Comprehensive Income and Share-Based Compensation [Abstract]

Components of comprehensive income (loss), after-tax basis


	Three Months Ended					Nine Months Ended
	July 31,			August 1,		July 31,			August 1,
	2011			2010		2011			2010
	(In millions)

Net income	$	476		$	123	$	1,471		$	470
Change in unrealized net gain on investments		(1	)		5		(2	)		7
Change in unrealized net gain on derivative instruments
qualifying as cash flow hedges		(6	)		1		(4	)		1
Change in defined benefit plan liability		—			—		(1	)		—
Foreign currency translation adjustments		1			1		1			—

Comprehensive income	$	470		$	130	$	1,465		$	478

Components of accumulated other comprehensive loss, after-tax basis


	July 31,			October 31,
	2011			2010
	(In millions)

Pension liability	$	(40	)	$	(39	)
Unrealized gain on investments, net		23			25
Unrealized gain on derivative instruments qualifying as cash flow hedges		—			4
Cumulative translation adjustments		13			12

Accumulated other comprehensive income (loss)	$	(4	)	$	2

Summary of stock repurchases


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions, except per share amounts)

Shares of common stock repurchased		2		8		20		16
Cost of stock repurchased	$	25	$	100	$	293	$	200
Average price paid per share	$	12.77	$	12.65	$	14.31	$	12.87

Dividends declared by board of directors


Date Declared	Record Date	Payable Date	Amount per Share

December 7, 2010	March 2, 2011	March 23, 2011	$	0.07
March 8, 2011	June 1, 2011	June 22, 2011	$	0.08
June 6, 2011	August 31, 2011	September 21, 2011	$	0.08

Total share-based compensation and related tax benefits


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Share-based compensation	$	38	$	32	$	110	$	95
Tax benefit recognized	$	11	$	10	$	33	$	28

Effect of share-based compensation on the results of operations


	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions)

Cost of products sold	$	13	$	10	$	36	$	23
Research, development, and engineering		12		11		35		33
General and administrative		9		8		27		24
Marketing and selling		4		3		12		15

Total share-based compensation	$	38	$	32	$	110	$	95

Stock option activity


				Weighted
				Average
				Exercise
	Shares			Price
	(In millions, except per share amounts)

Outstanding, at October 31, 2010		51		$	15.04
Granted		—		$	—
Exercised		(4	)	$	9.29
Canceled and forfeited		(15	)	$	20.76

Outstanding at July 31, 2011		32		$	13.10

Exercisable at July 31, 2011		26		$	14.22

Restricted stock units and restricted stock activity


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

Non-vested restricted stock units and restricted stock at October 31, 2010		18		$	13.33		2.8 Years
Granted		17		$	12.65
Vested		(4	)	$	13.59
Canceled		(2	)	$	13.18

Non-vested restricted stock units and restricted stock at July 31, 2011		29		$	12.90		2.9 Years

Weighted average and underlying assumptions used in the model


	Nine Months Ended
	July 31,			August 1,
	2011			2010

ESPP:
Dividend yield		1.98	%		2.24	%
Expected volatility		27	%		33	%
Risk-free interest rate		0.17	%		0.18	%
Expected life (in years)		0.5			0.5

Employee Benefit Plans (Tables)

9 Months Ended

Jul. 31, 2011

Employee Benefit Plans [Abstract]

Components of net periodic benefit costs of defined and postretirement benefit plans


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Service cost	$	4		$	3		$	11		$	10
Interest cost		3			4			10			10
Expected return on plan assets		(3	)		(2	)		(8	)		(6	)
Amortization of actuarial loss		1			—			2			1

Net periodic benefit cost	$	5		$	5		$	15		$	15

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 4, 7, 16, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=6930749&loc=d3e4179-114921

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e2410-114920

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e2439-114920

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e2417-114920

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Commitments and Contingencies [Abstract]

Commitments and Contingencies (Tables)

9 Months Ended

Jul. 31, 2011

Changes in the warranty reserves


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Beginning balance	$	184		$	140		$	155		$	117
Provisions for warranty		43			37			142			103
Consumption of reserves		(39	)		(30	)		(109	)		(73	)

Ending balance	$	188		$	147		$	188		$	147

Industry Segment Operations (Tables)

9 Months Ended

Jul. 31, 2011

Industry Segment Operations [Abstract]

Net sales and operating income (loss) for each reportable segment


	Three Months Ended					Nine Months Ended
			Operating					Operating
	Net Sales		Income (Loss)			Net Sales		Income (Loss)
	(In millions)

July 31, 2011:
Silicon Systems Group	$	1,398	$	452		$	4,348	$	1,486
Applied Global Services		603		146			1,784		322
Display		223		58			528		116
Energy and Environmental Solutions		563		123			1,676		436

Total Segment	$	2,787	$	779		$	8,336	$	2,360

August 1, 2010:
Silicon Systems Group	$	1,447	$	525		$	3,821	$	1,328
Applied Global Services		468		84			1,349		237
Display		216		64			618		179
Energy and Environmental Solutions		387		(371	)		874		(552	)

Total Segment	$	2,518	$	302		$	6,662	$	1,192

Reconciliations of total segment operating income to Applied's consolidated operating income (loss)


	Three Months Ended						Nine Months Ended
	July 31,			August 1,			July 31,			August 1,
	2011			2010			2011			2010
	(In millions)

Total segment operating income	$	779		$	302		$	2,360		$	1,192
Corporate and unallocated costs		(120	)		(139	)		(371	)		(414	)
Restructuring and asset impairment benefit (charges), net		—			20			21			(93	)
Gain on sale of facilities, net		28			—			27			—

Income from operations	$	687		$	183		$	2,037		$	685

Companies accounted for at least 10 percent of Applied's net sales


	July 31,
	2011

Samsung Electronics Co., Ltd.		12	%
Taiwan Semiconductor Manufacturing Company Limited		11	%

Accounts receivable for those customers that accounted for at least 10% of Applied's net sales


	July 31,
	2011

Samsung Electronics Co., Ltd.		5	%
Taiwan Semiconductor Manufacturing Company Limited		9	%

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010
Numerator:
Net income	$ 476	$ 123	$ 1,471	$ 470
Denominator:
Weighted average common shares outstanding	1,318	1,340	1,321	1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares	12	9	12	9
Denominator for diluted earnings per share	1,330	1,349	1,333	1,351
Basic earnings per share	$ 0.36	$ 0.09	$ 1.11	$ 0.35
Diluted earnings per share	$ 0.36	$ 0.09	$ 1.10	$ 0.35
Potentially dilutive securities	17	34	17	34

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 20

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 7
-Paragraph 18

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6945512&loc=d3e4984-109258

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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
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-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Emerging Issues Task Force (EITF)
-Number 07-4
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Emerging Issues Task Force (EITF)
-Number 87-21
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 19

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e565-108580

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1448-109256

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments (Details) - USD ($)
$ in Millions

Jul. 31, 2011

Oct. 31, 2010

Cash, Cash Equivalents and Investments Gross Unrealized Gains

$ 6,775

$ 3,854

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

6,809

3,892

Total cash and cash equivalents [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

5,018

1,858

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

5,018

1,858

Cash [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

918

701

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

918

701

Money market funds [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

3,895

1,139

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

3,895

1,139

US commercial paper, corporate bonds and medium-term notes, cash equivalent [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

190

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

190

Obligations of states and political subdivisions, cash equivalent [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Cash equivalents [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

4,100

1,157

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

4,100

1,157

U.S. Treasury and agency securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

483

665

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

486

673

Obligations of states and political subdivisions [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

452

500

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

455

505

U.S. commercial paper, corporate bonds and medium-term notes [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

390

502

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

395

509

Other debt securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

^[1]

363

261

^[1]

Cash, Cash Equivalents and Investments Gross Unrealized Losses

^[1]

Cash, Cash Equivalents and Investments Estimated Fair Value

^[1]

365

263

Total fixed income securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

1,688

1,928

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

1,701

1,950

Publicly traded equity securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Equity investments in privately-held companies [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Short-term and long-term investments [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

1,757

1,996

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

$ 1,791

$ 2,034

[1]	Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Cash, Cash Equivalents and Investments (Details 1) $ in Millions	Jul. 31, 2011 USD ($)
Contractual maturities of investments
Due in one year or less, Cost	$ 704
Due in one year or less, Estimated Fair value	707
Due after one through five years, Cost	618
Due after one through five years, Estimated Fair Value	626
Due after five years, Cost	3
Due after five years, Estimated Fair Value	3
No single maturity date, Cost	432
No single maturity date, Estimated Fair Value	455
Investments maturities amortized cost	1,757
Investments maturities fair value	$ 1,791

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010
Gains and Losses on Investments
Gross realized gains	$ 1	$ 1	$ 14	$ 3
Gross realized losses	$ 1	$ 1	$ 2	$ 1

Cash, Cash Equivalents and Investments (Details 3) - Other debt securities [Member] $ in Millions	Jul. 31, 2011 USD ($)
Gross Unrealized Losses and the Fair Market Value of Investments
In Loss Position for Less Than 12 Months, Fair Value	$ 71
In Loss Position for Less Than 12 Months, Gross Unrealized Losses	1
Total, Fair Value	71
Total, Gross Unrealized Losses	$ 1

Cash, Cash Equivalents and Investments (Details Textuals) $ in Millions	Jul. 31, 2011 USD ($)
Cash, Cash Equivalents and Investments (Textuals) [Abstract]
Gross unrealized loss due to a decrease in the fair value of certain fixed income securities	$ 1

Fair Value Measurements (Details) - USD ($) $ in Millions	Jul. 31, 2011	Oct. 31, 2010	Aug. 01, 2010
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	$ 22	$ 19	$ 23
Fair Value, Measurements, Recurring [Member]
Assets:
Foreign exchange derivative assets	2	6
Total	5,832	3,138
Liabilities
Foreign exchange derivative liabilities	(4)	(1)
Total	(4)	(1)
Fair Value, Measurements, Recurring [Member] \| Money market funds [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	3,895	1,139
Fair Value, Measurements, Recurring [Member] \| US Treasury and agency securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	486	673
Fair Value, Measurements, Recurring [Member] \| U.S. commercial paper, corporate bonds and medium-term notes [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	585	509
Fair Value, Measurements, Recurring [Member] \| Obligations of states and political subdivisions [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	470	523
Fair Value, Measurements, Recurring [Member] \| Other debt securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	365	263
Fair Value, Measurements, Recurring [Member] \| Publicly traded equity securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	29	25
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Assets:
Foreign exchange derivative assets	0	0
Total	4,040	1,317
Liabilities
Foreign exchange derivative liabilities	0	0
Total	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Money market funds [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	3,895	1,139
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| US Treasury and agency securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	116	153
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. commercial paper, corporate bonds and medium-term notes [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Obligations of states and political subdivisions [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Other debt securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Publicly traded equity securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	29	25
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Assets:
Foreign exchange derivative assets	2	6
Total	1,792	1,821
Liabilities
Foreign exchange derivative liabilities	(4)	(1)
Total	(4)	(1)
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Money market funds [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| US Treasury and agency securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	370	520
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. commercial paper, corporate bonds and medium-term notes [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	585	509
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Obligations of states and political subdivisions [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	470	523
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Other debt securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	365	263
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Publicly traded equity securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Assets:
Foreign exchange derivative assets	0	0
Total	0	0
Liabilities
Foreign exchange derivative liabilities	0	0
Total	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Money market funds [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| US Treasury and agency securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| U.S. commercial paper, corporate bonds and medium-term notes [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Obligations of states and political subdivisions [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Other debt securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Publicly traded equity securities [Member]
Assets:
Equity investments in privately-held companies measured at fair value on a non-recurring basis	$ 0	$ 0

Fair Value Measurements (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Fair Value Measurements (Details 1) - USD ($) $ in Millions	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010	Oct. 31, 2010
Impairment charges
Equity investments in privately-held companies measured at fair value on a non-recurring basis	$ 22	$ 23	$ 22	$ 23	$ 19
Impairment of equity method investment in privately-held companies measured at fair value on a non-recurring basis	0	8	0	13
Level 1 [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Impairment charges
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0	0	0
Level 2 [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Impairment charges
Equity investments in privately-held companies measured at fair value on a non-recurring basis	0	0	0	0
Level 3 [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Impairment charges
Equity investments in privately-held companies measured at fair value on a non-recurring basis	$ 22	$ 23	$ 22	$ 23

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents investment securities as of the balance sheet date which may include marketable securities, derivative financial instruments, and investments accounted for under the equity method.

Fair Value Measurements (Details Textuals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010	Oct. 31, 2010
Fair Value Measurements (Textuals) [Abstract]
Equity investments in privately-held companies	$ 61	$ 62	$ 61	$ 62	$ 59
Investments accounted for under cost method of accounting	39	39	39	39	40
Investments measured at fair value on a non-recurring basis	22	23	22	23	19
Long-term debt at carrying value	1,900		1,900		205
Estimated fair value of long-term debt	2,100		2,100		$ 238
Amount of impairment charges recognized	0	8	0	13
Impairment charges associated with equity investments in privately-held companies	$ 0	$ 8	$ 0	$ 13

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions	Jul. 31, 2011	Oct. 31, 2010
Fair values of derivative instruments
Asset Derivatives, Fair Value	$ 2	$ 6
Liability Derivatives, Fair Value	4	1
Foreign Exchange Contract [Member] \| Designated as Hedging Instrument [Member] \| Other current asset [Member]
Fair values of derivative instruments
Asset Derivatives, Fair Value	1	5
Foreign Exchange Contract [Member] \| Designated as Hedging Instrument [Member] \| Accrued expenses [Member]
Fair values of derivative instruments
Liability Derivatives, Fair Value	4	1
Foreign Exchange Contract [Member] \| Derivatives Not Designated as Hedging Instruments [Member] \| Other current asset [Member]
Fair values of derivative instruments
Asset Derivatives, Fair Value	1	1
Foreign Exchange Contract [Member] \| Derivatives Not Designated as Hedging Instruments [Member] \| Accrued expenses [Member]
Fair values of derivative instruments
Liability Derivatives, Fair Value	$ 0	$ 0

Derivative Instruments and Hedging Activities (Details 1) - Cash Flow Hedging [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010
Derivative instruments on Consolidated Condensed Statement of Operations
Gain or (Loss) Recognized in AOCI, Effective Portion	$ (7)	$ (3)	$ 5	$ (5)
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion	3	(4)	11	(7)
Gain or (Loss) Reclassified in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing	(2)	(2)	(6)	(3)
Foreign Exchange Contract [Member] \| Cost of products sold [Member]
Derivative instruments on Consolidated Condensed Statement of Operations
Gain or (Loss) Recognized in AOCI, Effective Portion	(7)	(3)	5	(5)
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion	1	(1)	6	(3)
Gain or (Loss) Reclassified in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing	(2)	(2)	(5)	(2)
Foreign Exchange Contract [Member] \| General and administrative [Member]
Derivative instruments on Consolidated Condensed Statement of Operations
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion	$ 2	$ (3)	5	(4)
Gain or (Loss) Reclassified in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing			$ (1)	$ (1)

Derivative Instruments and Hedging Activities (Details 2) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010
Derivatives Not Designated as Hedging Instruments in Statement of Operations
Amount of Gain or (Loss) Recognized in Income	$ (5)	$ (8)	$ (2)	$ (12)
Foreign Exchange Contract [Member] \| General and administrative [Member]
Derivatives Not Designated as Hedging Instruments in Statement of Operations
Amount of Gain or (Loss) Recognized in Income	$ (5)	$ (8)	$ (2)	$ (12)

The amount of net gains and losses recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

Buildings and improvements

Derivative Instruments and Hedging Activities (Details Textuals)	9 Months Ended
	Jul. 31, 2011
Derivative Instruments and Hedging Activities (Textuals) [Abstract]
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings	12 months
Time period for hedging of foreign currency transactions	24 months

Accounts Receivable, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Accounts Receivable, Net (Details) - USD ($) $ in Millions	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010	Oct. 31, 2010
Sale and Discounting of Accounts Receivable
Discounted letters of credit	$ 38	$ 81	$ 211	$ 134
Factored accounts receivable and discounted promissory notes	25	56	80	106
Total	63	$ 137	291	$ 240
Accounts Receivable, Net (Textual) [Abstract]
Allowance for doubtful accounts sold	$ 74		$ 74		$ 74

Balance Sheet Detail (Details)
$ in Millions

3 Months Ended

9 Months Ended

Jul. 31, 2011

USD ($)

Jan. 30, 2011

USD ($)

Jul. 31, 2011

USD ($)

Oct. 31, 2010

USD ($)

Inventories

Customer service spares

$ 328

$ 324

Raw materials

408

260

Work-in-process

457

500

Finished goods

656

463

Total Inventories

^[1]

1,849

1,547

Property, Plant and Equipment, Net

Land and improvements

169

227

1,170

1,234

Demonstration and manufacturing equipment

679

670

Furniture, fixtures and other equipment

715

719

Construction in progress

Gross property, plant and equipment

2,757

2,869

Accumulated depreciation

(1,903)

(1,906)

Net property, plant and equipment

^[1]

854

963

Accounts Payable and Accrued Expenses

Accounts payable

656

658

Compensation and employee benefits

405

435

Warranty

188

155

Dividends payable

105

Other accrued taxes

Restructuring reserve

104

Interest Payable

Other

192

221

Total Accounts Payable and Accrued Expenses

^[1]

1,653

1,766

Customer Deposits and Deferred Revenue

Customer deposits

442

407

Deferred revenue

905

440

Total Customer Deposits and Deferred Revenue

^[1]

1,347

847

Balance Sheet Detail (Textuals) [Abstract]

Inventory at customer locations included in finished goods

281

148

Evaluation inventory

145

117

Proceeds from sale of property

$ 39

126

Loss on proceeds from sale of property

$ (1)

Proceeds of certain assets held for sale, net of cash sold

Contractual termination obligation charges

$ 10

$ 40

Furniture, fixtures and other equipment [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

Demonstration and manufacturing equipment [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

Building improvements [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Goodwill, Purchased Technology and Other Intangible Assets (Details)
$ in Millions

3 Months Ended

6 Months Ended

9 Months Ended

Jul. 31, 2011

USD ($)

May 01, 2011

USD ($)

Aug. 01, 2010

USD ($)

May 01, 2011

USD ($)

Jul. 31, 2011

USD ($)

Aug. 01, 2010

USD ($)

Jan. 30, 2011

USD ($)

Oct. 31, 2010

USD ($)

^[1]

$ 1,335

$ 1,336

1,335

1,354

878

903

Amortized intangible assets, net

(655)

(634)

223

269

Impairment charges of intangible assets and purchased technology

$ 24

Future estimated amortization expense

Future estimated amortization expense, 2011

Future estimated amortization expense, 2012

Future estimated amortization expense, 2013

Future estimated amortization expense, 2014

Future estimated amortization expense, 2015

Future estimated amortization expense, after 2015

Goodwill , Purchased Technology and Other Intangible Assets (Textuals) [Abstract]

$ 223

Goodwill from the Energy and Environmental Solutions segment

$ 17

Useful Life, Minimum

Useful Life, Maximum

Amortization expense

$ 17

$ 40

$ 71

Silicon Systems Group [Member]

381

381

330

Applied Global Services [Member]

(263)

(253)

193

177

193

195

Impairment charges of intangible assets and purchased technology

(50)

(62)

Display [Member]

116

116

143

Energy and Environmental Solutions [Member]

(124)

(119)

645

662

645

662

337

Purchased Technology [Member]

(218)

(200)

553

557

Amortized intangible assets, net

(419)

(399)

134

158

Impairment charges of intangible assets and purchased technology

$ 6

Purchased Technology [Member] | Silicon Systems Group [Member]

310

Purchased Technology [Member] | Applied Global Services [Member]

(255)

(247)

Purchased Technology [Member] | Display [Member]

(19)

110

Purchased Technology [Member] | Energy and Environmental Solutions [Member]

(100)

(96)

105

Other Intangible Assets [Member]

(45)

(37)

325

346

Amortized intangible assets, net

(236)

(235)

111

Other Intangible Assets [Member] | Silicon Systems Group [Member]

Other Intangible Assets [Member] | Applied Global Services [Member]

(8)

(6)

Other Intangible Assets [Member] | Display [Member]

(31)

(43)

Other Intangible Assets [Member] | Energy and Environmental Solutions [Member]

(24)

(23)

232

$ (173)

$ (163)

Trade Names [Member]

Impairment charges of intangible assets and purchased technology

$ 18

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Business Combinations (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Jul. 31, 2011	Jun. 08, 2011	May 04, 2011
Business Acquisition [Line Items]
Merger agreement termination fee	$ 200
Business Combination (Textuals) [Abstract]
Total consideration paid for acquired entity			$ 4,900
Cost of Acquisition, price per share			$ 63
Unsecured senior notes issued under underwriting agreement	$ 1,750	$ 1,750
Redemption price percentage description	101% of the aggregate principal amount of the Notes plus any accrued and unpaid interest
Varian Semiconductor Equipment Associates, Inc [Member]
Business Acquisition [Line Items]
Merger agreement termination fee	$ 147

Borrowing Facilities and Long-Term Debt (Details) - USD ($)
$ in Millions

Jul. 31, 2011

Oct. 31, 2010

Less unamortized discount

$ 1,951

$ 205

(4)

Current portion

^[1]

(1)

Total long-term debt

^[1]

1,947

204

4.300% unsecured senior notes due 2021, interest payable June 15 and December 15 [Member]

$ 750

4.30%

4.326%

--06-15

5.850% unsecured senior notes due 2041, interest payable June 15 and December 15 [Member]

--12-15

$ 600

5.85%

5.879%

--06-15

2.650% unsecured senior notes due 2016, interest payable June 15 and December 15 [Member]

--12-15

$ 400

2.65%

2.666%

--06-15

7.125% unsecured senior notes due 2017, interest payable April 15 and October 15 [Member]

--12-15

$ 200

7.125%

7.19%

--04-15

Other Long Term Debt [Member]

--10-15

$ 1

$ 5

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Borrowing Facilities and Long-Term Debt (Details Textuals) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2011	Jun. 08, 2011	Oct. 31, 2010
Borrowing Facilities, Unsecured (Textuals) [Abstract]
Credit facilities for unsecured borrowings/Revolving credit facility	$ 1,500
Borrowing Facilities and Long Term Debt (Textuals) [Abstract]
Revolving credit period	4 years
Expiration of revolving credit period	May 2015
Other credit facilities	$ 103
Outstanding credit facilities	0		$ 0
Unsecured senior notes issued under underwriting agreement	$ 1,750	$ 1,750
Redemption price percentage description	101% of the aggregate principal amount of the Notes plus any accrued and unpaid interest
Unsecured Debt [Member]
Borrowing Facilities, Unsecured (Textuals) [Abstract]
Credit facilities for unsecured borrowings/Revolving credit facility	$ 1,600

Restructuring Charges and Asset Impairments (Details) - Employee Severance [Member] - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2011	May 01, 2011	Jan. 30, 2011
Changes in restructuring reserves related to severance
Balance Beginning	$ 18	$ 53	$ 99
Adjustment of restructuring reserves		(28)	(32)
Consumption of reserves	(7)	(7)	(14)
Balance Ending	$ 11	$ 18	$ 53

Amount of any reversal and other adjustment made during the period to the amount of a previously accrued liability for a specified type of restructuring cost, excluding adjustments for costs incurred during the period, costs settled during the period, and foreign currency translation adjustments.

Components of comprehensive income, net of tax:

Restructuring Charges and Asset Impairments (Details Textuals) $ in Millions	3 Months Ended						9 Months Ended
	Jul. 31, 2011 USD ($)	May 01, 2011 USD ($)	Jan. 30, 2011 USD ($)	Aug. 01, 2010 USD ($)	May 02, 2010 USD ($)	Jan. 31, 2010 USD ($)	Jul. 31, 2011 USD ($)	Oct. 31, 2010 USD ($)	Jul. 21, 2010	Oct. 25, 2009
Restructuring and Asset Impairments (Textuals) [Abstract]
Restructuring Charges						$ 104
Length of time to implement restructuring plan announced on November 11, 2009										18 months
Impairment charges of intangible assets and purchased technology		$ 24
Assets impairment charges	$ 3		$ 3		$ 9
Favorable adjustment as a result of restructuring program		1	$ 4
Severance accrual associated with plan announced on November 11, 2009		0
Minimum [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Reduction in global workforce										1,300
Reduction in Global Workforce in percent										10.00%
Maximum [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Reduction in global workforce										1,500
Reduction in Global Workforce in percent										12.00%
Energy and Environmental Solutions [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Employee severance charges				$ 45
Favorable Adjustment as a result of Global Workforce Reduction							$ 36
Severance accrual associated with restructuring reserves	1						1
Energy and Environmental Solutions [Member] \| Minimum [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Reduction in global workforce									400
Energy and Environmental Solutions [Member] \| Maximum [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Reduction in global workforce									500
Employee Severance [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Revised global workforce reduction			200
Favorable Adjustment as a result of Global Workforce Reduction		8	$ 28
Restructuring Reserve	11	18	$ 53				11	$ 99
Facilities [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Restructuring Reserve	5						5
Restructuring Reserves Related to Other Restructuring Plans [Member]
Restructuring and Asset Impairments (Textuals) [Abstract]
Revised global workforce reduction				1,000
Favorable Adjustment as a result of Global Workforce Reduction		$ 19		$ 20
Severance accrual associated with restructuring reserves	$ 10						$ 10

Stockholders' Equity Comprehensive Income and Share-Based Compensation (Details)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

9 Months Ended

Jul. 31, 2011

USD ($)

$ / shares

Aug. 01, 2010

USD ($)

$ / shares

Jul. 31, 2011

USD ($)

$ / shares

Aug. 01, 2010

USD ($)

$ / shares

Oct. 31, 2010

USD ($)

Mar. 08, 2010

USD ($)

Net income

$ 476

$ 123

$ 1,471

$ 470

Change in unrealized net gain on investments

(1)

(2)

Change in unrealized net gain on derivative instruments qualifying as cash flow hedges

(6)

(4)

Change in defined benefit plan liability

(1)

Foreign currency translation adjustments

Comprehensive income

470

$ 130

1,465

$ 478

Components of accumulated other comprehensive loss, after-tax basis

Pension liability

(40)

$ (39)

Unrealized gain on investments, net

Unrealized gain on derivative instruments qualifying as cash flow hedges

Cumulative translation adjustments

Accumulated other comprehensive income

^[1]

$ (4)

$ 2

Summary of stock repurchases

Shares of common stock repurchased | shares

2.0

8.0

20.0

16.0

Cost of stock repurchased

$ 25

$ 100

$ 293

$ 200

Average price of common stock | $ / shares

$ 12.77

$ 12.65

$ 14.31

$ 12.87

Total share-based compensation and related tax benefits

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

$ 38

$ 32

$ 110

$ 95

Tax benefit recognized

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 38

$ 32

$ 110

$ 95

Stock options scheduled to be vested

Over three to four years

Number of shares available for grant | shares

155.0

Stock options

Beginning Balance | shares

51.0

Granted | shares

0.0

Exercised | shares

(4.0)

Canceled and forfeited | shares

(15.0)

Ending Balance | shares

32.0

Stock option weighted average exercise price

Beginning Balance | $ / shares

$ 15.04

Granted | $ / shares

0.00

Exercised | $ / shares

9.29

Canceled and forfeited | $ / shares

20.76

Ending Balance | $ / shares

$ 13.10

Exercisable, Shares | shares

26.0

Exercisable, Weighted Average Exercise Price | $ / shares

$ 14.22

Weighted Average Grant Date Fair Value

Beginning Balance | shares

18.0

Granted | shares

17.0

Vested | shares

(4.0)

Canceled | shares

(2.0)

Ending Balance | shares

29.0

Weighted Average Remaining Contractual Term

Beginning of Period | $ / shares

$ 13.33

Granted | $ / shares

12.65

Vested | $ / shares

13.59

Canceled | $ / shares

13.18

Ending Balance | $ / shares

$ 12.90

Contractual Term

Beginning of Period

2.8

Ending Balance

2.9

Weighted average and underlying assumptions used in the model

Dividend yield

1.98%

2.24%

Expected volatility

27.00%

33.00%

Risk-free interest rate

17.00%

0.18%

Expected life (in years)

0.5

Stockholders' Equity Comprehensive Income and Share-Based Compensation (Textuals) [Abstract]

Amount authorized by Board of directors to repurchase shares

$ 2,000

Period of stock repurchase program

3 years

Number of employee stock purchase plans

Stock options scheduled to expire

No later than seven years

Total Unrecognized compensation expense

$ 243

Weighted average period for unrecognized compensation expense to be recognized

2.8

Performance-based restricted stock units granted | shares

2.0

Performance-based shares of restricted stock granted | shares

0.1

Purchase price in percent of the lower of the fair market value of Applied common stock

85.00%

Purchase period for ESPP

6 months

Number of shares issued under the ESPP | shares

0.0

3.0

2.0

Weighted average estimated fair value of purchase rights under ESPP | $ / shares

3.61

3.00

Performance Based Awards 2010 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of performance goal achieved

40.00%

Percentage of performance goal remaining

60.00%

Performance Based Awards 2008 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of performance goal achieved

78.00%

Percentage of performance goal remaining

22.00%

Restricted Stock Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options scheduled to be vested

Over three to four years

ESPP [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares available for grant | shares

56.0

Cost of products sold [Member]

Total share-based compensation and related tax benefits

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

$ 13

$ 10

$ 36

$ 23

Research, development, and engineering [Member]

Total share-based compensation and related tax benefits

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

General and administrative [Member]

Total share-based compensation and related tax benefits

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Marketing and selling [Member]

Total share-based compensation and related tax benefits

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

First Quarter Dividend [Member]

$ 4

$ 3

$ 12

$ 15

Dividends declared by board of directors

Date declared

Dec. 07, 2010

Record date

Mar. 02, 2011

Payable date

Mar. 23, 2011

Amount per share | $ / shares

$ 0.07

Second Quarter Dividend [Member]

Dividends declared by board of directors

Date declared

Mar. 08, 2011

Record date

Jun. 01, 2011

Payable date

Jun. 22, 2011

Amount per share | $ / shares

$ 0.08

Third Quarter Dividend [Member]

Dividends declared by board of directors

Date declared

Jun. 06, 2011

Record date

Aug. 31, 2011

Payable date

Sep. 21, 2011

Amount per share | $ / shares

$ 0.08

[1]	Amounts as of July 31, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Jul. 31, 2011	Aug. 01, 2010	Jul. 31, 2011	Aug. 01, 2010
Components of net periodic benefit costs of defined and postretirement benefit plans
Service cost	$ 4	$ 3	$ 11	$ 10
Interest cost	3	4	10	10
Expected return on plan assets	(3)	(2)	(8)	(6)
Amortization of actuarial loss	1		2	1
Net periodic benefit cost	$ 5	$ 5	$ 15	$ 15

An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.

The increase in a defined benefit pension plan's projected benefit obligation or a defined benefit postretirement plan's accumulated postretirement benefit obligation due to the passage of time.

The actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during the period. The portion of the expected postretirement benefit obligation attributed to employee service during the period. The service cost component is a portion of the benefit obligation and is unaffected by the funded status of the plan.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Service Cost (Component of Net Periodic Pension Cost)
-URI http://asc.fasb.org/extlink&oid=6525008