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Document and Entity Information	3 Months Ended
Document and Entity Information	Jan. 27, 2019 shares
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED MATERIALS INC /DE
Entity Central Index Key	0000006951
Current Fiscal Year End Date	--10-27
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Jan. 27, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	949,392,609

Consolidated Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Income Statement [Abstract]
Net sales	$ 3,753	$ 4,205
Cost of products sold	2,088	2,265
Gross profit	1,665	1,940
Operating expenses:
Research, development and engineering	516	489
Marketing and selling	131	126
General and administrative	110	110
Total operating expenses	757	725
Income from operations	908	1,215
Interest expense	60	59
Interest and other income, net	40	27
Income before income taxes	888	1,183
Provision for income taxes	117	1,018
Net income	$ 771	$ 165
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.81	$ 0.16
Diluted earnings per share (in dollars per share)	$ 0.80	$ 0.15
Weighted average number of shares:
Basic (in shares)	957	1,056
Diluted (in shares)	965	1,071

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 771	$ 165
Other comprehensive income (loss), net of tax:
Change in unrealized gain (losses) on available-for-sale investments	5	6
Change in unrealized net loss on derivative instruments	(17)	(19)
Change in defined and postretirement benefit plans	0	(2)
Other comprehensive income (loss), net of tax	(12)	(15)
Comprehensive income	$ 759	$ 150

- Definition

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

+ References + Details

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Current assets:
Cash and cash equivalents	$ 3,192	$ 3,440
Short-term investments	520	590
Accounts receivable, net	2,444	2,323
Inventories	3,703	3,721
Other current assets	426	530
Total current assets	10,285	10,604
Long-term investments	1,588	1,568
Property, plant and equipment, net	1,456	1,407
Goodwill	3,368	3,368
Purchased technology and other intangible assets, net	199	213
Deferred income taxes and other assets	2,026	473
Total assets	18,922	17,633
Current liabilities:
Accounts payable and accrued expenses	2,420	2,721
Contract liabilities	1,356	1,201
Total current liabilities	3,776	3,922
Income taxes payable	1,303	1,254
Long-term debt	5,310	5,309
Other liabilities	324	303
Total liabilities	10,713	10,788
Stockholders’ equity:
Common stock	9	10
Additional paid-in capital	7,265	7,274
Retained earnings	23,032	20,880
Treasury stock	(21,943)	(21,194)
Accumulated other comprehensive loss	(154)	(125)
Total stockholders’ equity	8,209	6,845
Total liabilities and stockholders’ equity	$ 18,922	$ 17,633

Consolidated Condensed Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions

Total

Common Stock

Additional Paid-In Capital

Retained Earnings

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Beginning Balance, (in shares) at Oct. 29, 2017

1,060

917

Beginning Balance at Oct. 29, 2017

$ 9,630

$ 11

$ 7,056

$ 18,539

^[1]

$ (15,912)

$ (64)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

165

Other comprehensive loss, net of tax

(15)

Dividends declared

(105)

Share-based compensation

Issuance under stock plans (in shares)

Issuance under stock plans

$ (141)

(141)

Common stock repurchases (in shares)

Common stock repurchases

$ (782)

$ 0

$ (782)

Ending Balance, (in shares) at Jan. 28, 2018

1,050

932

Ending Balance at Jan. 28, 2018

8,817

$ 11

6,980

18,599

$ (16,694)

(79)

Beginning Balance, (in shares) at Oct. 28, 2018

967

1,019

Beginning Balance at Oct. 28, 2018

6,845

$ 10

7,274

20,880

$ (21,194)

(125)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

771

Other comprehensive loss, net of tax

(12)

Dividends declared

(189)

Share-based compensation

Issuance under stock plans (in shares)

Issuance under stock plans

$ (74)

(74)

Common stock repurchases (in shares)

Common stock repurchases

$ (750)

$ (1)

$ (749)

Ending Balance, (in shares) at Jan. 27, 2019

949

1,041

Ending Balance at Jan. 27, 2019

$ 8,209

$ 9

$ 7,265

$ 23,032

$ (21,943)

$ (154)

[1]	Retained earnings balance as of October 29, 2017 included adjustment of $281 million related to the adoption of the standard related to revenue recognition.

Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares	1 Months Ended	3 Months Ended
	Dec. 31, 2018	Jan. 27, 2019	Jan. 28, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.10

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Cash flows from operating activities:
Net income	$ 771	$ 165
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	88	119
Share-based compensation	65	65
Deferred income taxes	41	32
Other	1	0
Changes in operating assets and liabilities:
Accounts receivable	(121)	156
Inventories	18	(211)
Other current and non-current assets	76	78
Accounts payable and accrued expenses	(313)	(127)
Contract liabilities	155	350
Income taxes payable	41	807
Other liabilities	12	32
Cash provided by operating activities	834	1,466
Cash flows from investing activities:
Capital expenditures	(133)	(203)
Cash paid for acquisitions, net of cash acquired	0	(5)
Proceeds from sales and maturities of investments	464	1,944
Purchases of investments	(397)	(384)
Cash provided by (used in) investing activities	(66)	1,352
Cash flows from financing activities:
Common stock repurchases	(750)	(782)
Tax withholding payments for vested equity awards	(74)	(141)
Payments of dividends to stockholders	(192)	(106)
Cash used in financing activities	(1,016)	(1,029)
Increase (decrease) in cash and cash equivalents	(248)	1,789
Cash and cash equivalents — beginning of period	3,440	5,010
Cash and cash equivalents — end of period	3,192	6,799
Supplemental cash flow information:
Cash payments for income taxes	34	78
Cash refunds from income taxes	8	40
Cash payments for interest	$ 34	$ 34

Basis of Presentation

3 Months Ended

Jan. 27, 2019

Accounting Policies [Abstract]

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 28, 2018 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 28, 2018 (2018 Form 10-K). Applied’s results of operations for the three months ended January 27, 2019 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2019 and 2018 each contain 52 weeks, and the first three months of fiscal 2019 and 2018 each contained 13 weeks.

At the beginning of the first quarter of fiscal 2019, Applied adopted the new revenue recognition standard using the full retrospective method. All financial statements and disclosures have been recast to comply with this new guidance. See "Recent Accounting Pronouncements - Accounting Standards Adopted" section below for further information.

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 standalone selling price (SSP) related to revenue recognition, 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.

Changes to Significant Accounting Policies

Applied adopted various amended guidance during the first quarter of fiscal 2019. The following accounting policies have been updated as part of the adoption of the new standards.

Allowance for Doubtful Accounts

Applied maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues Applied has identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to Applied or its payment trends, may require Applied to further adjust its estimates of the recoverability of amounts due to Applied. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Condensed Statement of Operations.

Sales and Value Added Taxes

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

Shipping and Handling Costs

Applied accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net sales and costs as a component of cost of products sold.

Warranty

Applied provides for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Applied’s warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from Applied’s estimates, revisions to the estimated warranty liability would be required.

Applied also sells extended warranty contracts to its customers which provide an extension of the standard warranty coverage period of up to 2 years. Applied receives payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty.

Revenue Recognition from Contracts with Customers

Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied.

Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors.

Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that we provide to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group.

Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract.

Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time as customers receive the benefits of services.

The incremental costs to obtain a contract are not material.

Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component.

Investments

All of Applied’s investments, except equity investments held in privately-held companies, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded at fair value with changes in fair value recorded in the accompanying Consolidated Statements of Operations. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the accompanying Consolidated Condensed Statements of Operations.

Equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable prices changes will be recorded in the accompanying Consolidated Condensed Statements of Operations.

Recent Accounting Pronouncements

Accounting Standards Adopted

Retirement Benefits. In March 2017, the FASB issued authoritative guidance which requires companies to present the service cost component of net benefit cost in the same line items in which they report compensation cost. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Applied adopted this guidance in the first quarter of fiscal 2019 on a retrospective basis. The adoption of this guidance resulted in reclassification of other components of net benefit costs outside of income from operations and did not have a significant impact on Applied’s consolidated financial statements.

Business Combinations. In January 2017, the FASB issued authoritative guidance that clarifies the definition of a business to help companies evaluate whether acquisition or disposal transactions should be accounted for as asset groups or as businesses. Applied adopted this guidance in the first quarter of fiscal 2019 on a prospective basis. The impact of the adoption depends on the facts and circumstances of future acquisition or disposal transactions.

Income Taxes: Intra-Entity Asset Transfers. In October 2016, the FASB issued authoritative guidance that changed the tax accounting for intra-entity transfers of assets other than inventory. After adoption, the income tax effect of intra-entity transfers is realized at the time of the transfer instead of over the life of the asset. Applied adopted this guidance in the first quarter of fiscal 2019 using a modified retrospective approach, resulting in a cumulative effect adjustment to retained earnings. Upon adoption, deferred tax assets increased by $1.6 billion related to the estimated income tax effects of future amortization of intra-entity intangible asset transfers, with an offset to retained earnings.

Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued authoritative guidance which addresses classification of certain cash receipts and cash payments related to the statement of cash flows. Effective in the first quarter of fiscal 2019, Applied adopted the authoritative guidance retrospectively. The adoption of this guidance did not have a significant impact and only impacts disclosures in Applied' s consolidated condensed statements of cash flow.

Financial Instruments: Classification and Measurement. In January 2016, the FASB issued authoritative guidance that requires equity investments that do not result in consolidation, and are not accounted for under the equity method, to be measured at fair value, and requires recognition of any changes in fair value in net income unless the investments qualify for a new measurement alternative. For financial liabilities measured at fair value, the change in fair value caused by a change in instrument-specific credit risk will be required to be presented separately in other comprehensive income. Applied adopted this standard in the first quarter of fiscal year 2019. Upon adoption, Applied elected to apply the measurement alternative for equity investments without readily determinable fair value. Under the alternative, Applied measures investments without readily determinable fair value at cost, less impairment, adjusted by observable price changes prospectively to all equity investments that exist as of adoption and will reassess at each reporting period whether an investment qualifies for the alternative. Adopting this standard required Applied to record a cumulative net increase to retained earnings of approximately $21 million with the corresponding $17 million decrease in accumulated other comprehensive income, net of tax, for the unrealized gains and losses associated with equity investments with readily determinable fair values, as the authoritative guidance is required to be adopted prospectively. Going forward, the impact of this new standard could result in volatility in Applied's consolidated statement of operations.

Revenue Recognition. In May 2014, the FASB issued authoritative guidance that requires revenue recognition to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and requires certain additional disclosures. Applied adopted this authoritative guidance in the first quarter of fiscal 2019 using the full retrospective method, which required restating each prior reporting period presented. Refer to the Impacts to Previously Reported Results section below for the impact of the adoption of the standard to Applied’s consolidated financial statements.

For all periods prior to the date of initial adoption of this standard, Applied elected to use the practical expedient pursuant to which Applied excluded disclosures of both transaction prices allocated to remaining performance obligations and when these performance obligations are expected to be recognized as revenue.

The most significant impact from the adoption of this standard is fewer constraints on revenue recognition upon shipment of manufacturing equipment.

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition and retirement benefits impacted Applied’s Consolidated Condensed Statement of Operations for the first quarter of fiscal 2018 as follows:



	Three Months Ended
	January 28, 2018
	As Previously Reported		Revenue Recognition Adjustment			Retirement Benefit Adjustment			As Adjusted
	(In millions, except per share amounts)

Net sales	$	4,204	$	1		$	—		$	4,205
Cost of products sold	$	2,284	$	(20	)	$	1		$	2,265
Gross profit	$	1,920	$	21		$	(1	)	$	1,940
Research, development and engineering	$	488	$	—		$	1		$	489
Interest and other income, net	$	25	$	—		$	2		$	27
Income before income taxes	$	1,162	$	21		$	(2	)	$	1,183
Provision for income taxes	$	1,027	$	(9	)	$	—		$	1,018
Net income	$	135	$	30		$	—		$	165
Earnings per share: basic	$	0.13	$	0.03		$	—		$	0.16
Earnings per share: diluted	$	0.13	$	0.02		$	—		$	0.15

Adoption of the retirement benefits standard did not have any impact on Applied’s Consolidated Balance Sheet or Consolidated Condensed Statement of Cash Flows.

Adoption of the standard related to revenue recognition impacted Applied’s Consolidated Balance Sheet at October 28, 2018 as follows:



	October 28, 2018
	As Previously Reported		Adjustment			As Adjusted
	(In millions)

Accounts receivable, net	$	2,565	$	(242	)	$	2,323
Inventories	$	3,722	$	(1	)	$	3,721
Other current assets	$	430	$	100		$	530
Deferred income taxes and other assets	$	470	$	3		$	473
Customer deposits and deferred revenue	$	1,347	$	(1,347	)	$	—
Contract liabilities	$	—	$	1,201		$	1,201
Retained earnings	$	20,874	$	6		$	20,880

Adoption of the revenue recognition standard did not impact cash provided by or used in investing or financing activities in Applied’s consolidated Condensed Statement of Cash Flows for the first quarter of fiscal 2018. The adoption did not impact total cash provided by operating activities, however it impacted individual components of cash provided by operating activities for the first quarter of fiscal 2018 as follows:



	Three Months Ended
	January 28, 2018
	As Previously Reported			Adjustment			As Adjusted
	(In millions)

Cash flows from operating activities:
Net income	$	135		$	30		$	165
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes	$	41		$	(9	)	$	32
Changes in operating assets and liabilities:
Inventories	$	(195	)	$	(16	)	$	(211	)
Accounts payable and accrued expenses	$	(125	)	$	(2	)	$	(127	)
Contract liabilities	$	353		$	(3	)	$	350

Accounting Standards Not Yet Adopted

Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit and other Postretirement Plans. In August 2018, the FASB issued authoritative guidance that adds, removes, and clarifies disclosure requirements for defined benefit and other postretirement plans. This authoritative guidance will be effective for Applied in fiscal 2021 on a retrospective basis, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Fair Value Measurement: Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued authoritative guidance that eliminates, amends, and adds disclosure requirements for fair value measurements. While the amended and new disclosure requirements primarily relate to Level 3 fair value measurements, the authoritative guidance also eliminates disclosure requirements related to the amount and reasons for transfer between Level 1 and Level 2 of fair value hierarchy, policy for timing of transfer between levels, and the valuation processes for Level 3 fair value measurements. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2020. Early adoption is permitted only for the removal and amendment of certain disclosures, while the new disclosures requirements are to be applied prospectively. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Derivatives and Hedging. In August 2017, the FASB issued authoritative guidance that modifies the recognition and presentation of hedge accounting to better align an entity’s risk management strategies and financial reporting for hedging relationships. The authoritative guidance expands the application of hedge accounting for non-financial and financial risk components and eases certain hedge effectiveness assessment requirements. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2020, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Receivables: Nonrefundable Fees and Other Costs. In March 2017, the FASB issued authoritative guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date to more closely align with expectations incorporated in market pricing. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2020 on a modified retrospective basis, with early adoption permitted. Applied is currently evaluating the impact of adopting this new accounting guidance on Applied’s consolidated financial statements.

Goodwill Impairment. In January 2017, the FASB issued authoritative guidance that simplifies the process required to test goodwill for impairment. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on Applied’s consolidated financial statements.

Financial Instruments: Credit Losses. In June 2016, the FASB issued authoritative guidance that modifies the impairment model for certain financial assets by requiring use of an expected loss methodology, which will result in more timely recognition of credit losses. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption is permitted beginning in the first quarter of fiscal 2020. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Leases. In February 2016, the FASB issued authoritative guidance for lease accounting, which requires lessees to recognize lease assets and liabilities on the balance sheet for certain lease arrangements that are classified as operating leases under the previous standard, and to provide for enhanced disclosures. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2020 and should be applied using a modified retrospective approach. Early adoption is permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Earnings Per Share

3 Months Ended

Jan. 27, 2019

Earnings Per Share [Abstract]

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 plan 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.



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions, except per share amounts)
Numerator:
Net income	$	771	$	165
Denominator:
Weighted average common shares outstanding	957		1,056
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares	8		15
Denominator for diluted earnings per share	965		1,071
Basic earnings per share	$	0.81	$	0.16
Diluted earnings per share	$	0.80	$	0.15
Potentially weighted dilutive securities	8		—

Potentially weighted dilutive securities attributable to outstanding stock options and restricted stock units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Applied common stock, and therefore their inclusion would be anti-dilutive.

Cash, Cash Equivalents and Investments

3 Months Ended

Jan. 27, 2019

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Investments

Summary of Cash, Cash Equivalents and Investments

The following tables summarize Applied’s cash, cash equivalents and investments:



January 27, 2019	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,016	$	—	$	—	$	1,016
Cash equivalents:
Money market funds	1,911		—		—		1,911
Commercial paper, corporate bonds and medium-term notes	265		—		—		265
Total Cash equivalents	2,176		—		—		2,176
Total Cash and Cash equivalents	$	3,192	$	—	$	—	$	3,192
Short-term and long-term investments:
U.S. Treasury and agency securities	$	375	$	—	$	—	$	375
Non-U.S. government securities*	9		—		—		9
Municipal securities	402		1		2		401
Commercial paper, corporate bonds and medium-term notes	628		1		3		626
Asset-backed and mortgage-backed securities	565		—		3		562
Total fixed income securities	1,979		2		8		1,973
Publicly traded equity securities	15		20		4		31
Equity investments in privately-held companies	104		—		—		104
Total equity investments	119		20		4		135
Total short-term and long-term investments	$	2,098	$	22	$	12	$	2,108

Total Cash, Cash equivalents and Investments	$	5,290	$	22	$	12	$	5,300

_________________________

* Includes agency debt securities guaranteed by Canada.



October 28, 2018	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,489	$	—	$	—	$	1,489
Cash equivalents:
Money market funds	1,599		—		—		1,599
Commercial paper, corporate bonds and medium-term notes	352		—		—		352
Total Cash equivalents	1,951		—		—		1,951
Total Cash and Cash equivalents	$	3,440	$	—	$	—	$	3,440
Short-term and long-term investments:
U.S. Treasury and agency securities	$	335	$	—	$	2	$	333
Non-U.S. government securities*	10		—		—		10
Municipal securities	399		—		4		395
Commercial paper, corporate bonds and medium-term notes	705		—		3		702
Asset-backed and mortgage-backed securities	595		—		4		591
Total fixed income securities	2,044		—		13		2,031
Publicly traded equity securities	17		25		4		38
Equity investments in privately-held companies	89		—		—		89
Total equity investments	106		25		4		127
Total short-term and long-term investments	$	2,150	$	25	$	17	$	2,158

Total Cash, Cash equivalents and Investments	$	5,590	$	25	$	17	$	5,598

_________________________

* Includes agency debt securities guaranteed by Canada.

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments as of January 27, 2019:



	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	429	$	428
Due after one through five years	985		983
No single maturity date**	684		697
Total	$	2,098	$	2,108

_________________________

** 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

During the three months ended January 27, 2019 and January 28, 2018, gross realized gains and losses on investments for these periods were not material.

As of January 27, 2019, and October 28, 2018, gross unrealized losses related to Applied’s debt investment portfolio were not material. Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is 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.

Applied determined that the gross unrealized losses on its marketable fixed-income securities as of January 27, 2019 and January 28, 2018 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities during the three months ended January 27, 2019 or January 28, 2018. Impairment charges on equity investments in privately-held companies during the three months ended January 27, 2019 and January 28, 2018 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations.

Unrealized gains and losses on investments classified as equity investments are recognized in other income (expense), net in the Consolidated Condensed Statement of Operations. Prior to the adoption of Accounting Standards Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019, these unrealized gains and temporary losses were included within accumulated other comprehensive income (loss), net of any related tax effect.

The components of gain (losses) on equity investments for the three months ended January 27, 2019 were as follows:



	Three Months Ended
	January 27, 2019

	(In millions)
Publicly traded equity securities
Unrealized gain	$	6
Unrealized loss	(2		)
Gain on sales	1
Loss on sales	—
Equity investments in privately-held companies
Unrealized gain	7
Unrealized loss	(1		)
Gain on sales	1
Loss on sales	—
Total gain on equity investments, net	$	12

Fair Value Measurements

3 Months Ended

Jan. 27, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Applied’s financial assets are measured and recorded at fair value, except for equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a 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 whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

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 — 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 consist 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. As of January 27, 2019, 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.

Applied’s equity investments with readily determinable values consist of publicly traded equity securities. Upon adoption of ASU 2016-01, these investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Applied adopted the standard using a modified retrospective transition method, and reclassified the unrealized gains on these equity investments of $21 million to retained earnings as a cumulative-effect adjustment on the condensed consolidated balance sheets.

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.

Assets Measured at Fair Value on a Recurring Basis

Financial assets (excluding cash balances) measured at fair value on a recurring basis are summarized below:



	January 27, 2019						October 28, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds	$	1,911	$	—	$	1,911	$	1,599	$	—	$	1,599
U.S. Treasury and agency securities	343		32		375		297		36		333
Non-U.S. government securities	—		9		9		—		10		10
Municipal securities	—		401		401		—		395		395
Commercial paper, corporate bonds and medium-term notes	—		891		891		—		1,054		1,054
Asset-backed and mortgage-backed securities	—		562		562		—		591		591
Total available-for-sale debt security investments	$	2,254	$	1,895	$	4,149	$	1,896	$	2,086	$	3,982
Equity investments with readily determinable values
Publicly traded equity securities	$	31	$	—	$	31	$	38	$	—	$	38
Total equity investments with readily determinable values	$	31	$	—	$	31	$	38	$	—	$	38

Total	$	2,285	$	1,895	$	4,180	$	1,934	$	2,086	$	4,020

There were no transfers between Level 1 and Level 2 fair value measurements during the three months ended January 27, 2019 or January 28, 2018. Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of January 27, 2019 or October 28, 2018.

Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis

Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Upon adoption of ASU 2016-01, Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. Applied adopted the guidance prospectively, effective October 29, 2018, and there was no impact to Applied’s condensed consolidated financial statements. Prior to the adoption of ASU 2016-01, these investments were generally accounted for under the cost method of accounting. These investments are periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment charges on equity investments in privately-held companies during the three months ended January 27, 2019 and January 28, 2018 were not material.

Other

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of January 27, 2019, the aggregate principal amount of long-term debt was $5.4 billion and the estimated fair value was $5.5 billion. As of October 28, 2018, the aggregate principal and estimated fair value amounts of long-term debt were both $5.4 billion. 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. See Note 10 of the Notes to the Consolidated Condensed Financial Statements for further detail of existing debt.

- Definition

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.

+ References + Details

Derivative Instruments and Hedging Activities

3 Months Ended

Jan. 27, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 the Japanese yen, euro, Israeli shekel and Taiwanese dollar. 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 and interest rate 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 foreign exchange derivatives 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 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 foreign exchange derivative instruments included in AOCI as of January 27, 2019 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 earnings. 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 months ended January 27, 2019 and January 28, 2018.

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.

The fair values of foreign exchange derivative instruments as of January 27, 2019 and October 28, 2018 were not material.

The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows:



		Three Months Ended
		January 27, 2019									January 28, 2018
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing			Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing
	Location of Gain or (Loss)	Gain or (Loss)			Gain or (Loss) Reclassified from AOCI into Income			Gain or (Loss) Recognized in Income			Gain or (Loss)			Gain or (Loss) Reclassified from AOCI into Income			Gain or (Loss) Recognized in Income

		(In millions)
Derivatives in Cash Flow Hedging Relationships
Foreign exchange contracts	AOCI	$	(16	)	$	—		$	—		$	(18	)	$	—		$	—
Foreign exchange contracts	Cost of products sold	—			12			5			—			8			2
Foreign exchange contracts	General and administrative	—			(5		)	(1		)	—			(1		)	(2		)
Interest rate contracts	Interest expense	—			—			—			—			(1		)	—
Total		$	(16	)	$	7		$	4		$	(18	)	$	6		$	—



		Amount of Gain or (Loss) Recognized in Income
		Three Months Ended
	Location of Gain or (Loss) Recognized in Income	January 27, 2019			January 28, 2018

		(In millions)
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	General and administrative	$	(10	)	$	(8	)
Total		$	(10	)	$	(8	)

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 immaterial as of January 27, 2019.

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

Accounts Receivable, Net	3 Months Ended
Accounts Receivable, Net	Jan. 27, 2019
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable without recourse. Applied, from time to time, also discounts letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Applied sold $464 million and $376 million of accounts receivable during the three months ended January 27, 2019 and January 28, 2018, respectively. Applied did not discount letters of credit issued by customers or discount promissory notes during the three months ended January 27, 2019 and January 28, 2018. 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 $33 million as of January 27, 2019 and October 28, 2018. Applied sells its products principally to manufacturers within the semiconductor and display industries. While Applied believes that its allowance for doubtful accounts is adequate and represents its best estimate as of January 27, 2019, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Contract Balances

3 Months Ended

Jan. 27, 2019

Revenue from Contract with Customer [Abstract]

Contract Balances

Contract assets primarily result from receivables for goods transferred to customers and where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Applied’s contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.

Contract assets are generally classified as current and included in Other Current Assets in the Consolidated Condensed Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized.

Contract balances at the end of each reporting period were as follows:



	January 27, 2019		October 28, 2018
	(In millions)

Contract assets	$	100	$	99
Contract liabilities	$	1,356	$	1,201

The increase in net contract liabilities was primarily due to netted contract assets being classified to accounts receivable as conditions for payments were met.

During the three months ended January 27, 2019, Applied recognized revenue of approximately $288 million related to contract liabilities at October 28, 2018.

There were no impairment losses recognized on Applied's accounts receivables and contract assets during the three months ended January 27, 2019.

As of January 27, 2019, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $232 million, which is expected to be recognized within the next 36 months. Applied has elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

Balance Sheet Detail

3 Months Ended

Jan. 27, 2019

Balance Sheet Detail [Abstract]

Balance Sheet Detail



	January 27, 2019		October 28, 2018

	(In millions)
Inventories
Customer service spares	$	1,093	$	989
Raw materials	1,018		1,020
Work-in-process	526		505
Finished goods	1,066		1,207
	$	3,703	$	3,721

Included in finished goods inventory are $8 million as of January 27, 2019, and $19 million as of October 28, 2018, 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 $341 million and $350 million of evaluation inventory as of January 27, 2019 and October 28, 2018, respectively.



	January 27, 2019		October 28, 2018

	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	32	$	40
Prepaid expenses and other	394		490
	$	426	$	530



	Useful Life	January 27, 2019			October 28, 2018

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	245		$	245
Buildings and improvements	3-30	1,460			1,448
Demonstration and manufacturing equipment	3-5	1,335			1,282
Furniture, fixtures and other equipment	3-5	639			634
Construction in progress		243			203
Gross property, plant and equipment		3,922			3,812
Accumulated depreciation		(2,466		)	(2,405		)
		$	1,456		$	1,407



	January 27, 2019		October 28, 2018

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes and income taxes receivable	$	1,856	$	319
Other assets	170		154
	$	2,026	$	473



	January 27, 2019		October 28, 2018

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	978	$	996
Compensation and employee benefits	426		639
Warranty	200		208
Dividends payable	190		193
Income taxes payable	129		136
Other accrued taxes	73		112
Interest payable	59		38
Other	365		399
	$	2,420	$	2,721



	January 27, 2019		October 28, 2018

	(In millions)
Other Liabilities
Defined and postretirement benefit plans	$	178	$	177
Other	146		126
	$	324	$	303

Goodwill, Purchased Technology and Other Intangible Assets

3 Months Ended

Jan. 27, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

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 purchase price 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 considers 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.

To test goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, Applied then performs the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. Under the two-step goodwill impairment test, Applied would in the first step compare the estimated fair value of each reporting unit to its carrying value. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. If the carrying value of a reporting unit exceeds its fair value, Applied would then perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If Applied determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, Applied would record an impairment charge equal to the difference.

As of January 27, 2019, Applied’s reporting units include Semiconductor Product Group and Imaging and Process Control Group, which combine to form the Semiconductor Systems reporting segment, Applied Global Services, and Display and Adjacent Markets.

The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time.

Details of goodwill as of January 27, 2019 and October 28, 2018 were as follows:



	January 27, 2019		October 28, 2018

	(In millions)
Semiconductor Systems	$	2,151	$	2,151
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Carrying amount	$	3,368	$	3,368

A summary of Applied’s purchased technology and intangible assets is set forth below:



	January 27, 2019		October 28, 2018

	(In millions)
Purchased technology, net	$	99	$	109
Intangible assets - finite-lived, net	100		104
Total	$	199	$	213

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 environments, technological advances, and changes in cost structure.

Details of finite-lived intangible assets were as follows:



	January 27, 2019									October 28, 2018
	Purchased Technology			Other Intangible Assets			Total			Purchased Technology			Other Intangible Assets			Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,449		$	252		$	1,701		$	1,449		$	252		$	1,701
Applied Global Services	33			44			77			33			44			77
Display and Adjacent Markets	163			38			201			163			38			201
Corporate and Other	—			9			9			—			9			9
Gross carrying amount	$	1,645		$	343		$	1,988		$	1,645		$	343		$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,382	)	$	(154	)	$	(1,536	)	$	(1,375	)	$	(150	)	$	(1,525	)
Applied Global Services	(29		)	(44		)	(73		)	(29		)	(44		)	(73		)
Display and Adjacent Markets	(135		)	(36		)	(171		)	(132		)	(36		)	(168		)
Corporate and Other	—			(9		)	(9		)	—			(9		)	(9		)
Accumulated amortization	$	(1,546	)	$	(243	)	$	(1,789	)	$	(1,536	)	$	(239	)	$	(1,775	)
Carrying amount	$	99		$	100		$	199		$	109		$	104		$	213

Details of amortization expense by segment were as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Semiconductor Systems	$	11	$	46
Display and Adjacent Markets	3		4
Total	$	14	$	50

Amortization expense was charged to the following categories:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Cost of products sold	$	9	$	45
Marketing and selling	5		5
Total	$	14	$	50

As of January 27, 2019, future estimated amortization expense is expected to be as follows:



	Amortization Expense
	(In millions)
2019 (remaining 9 months)	$	43
2020	52
2021	39
2022	24
2023	11
Thereafter	30
Total	$	199

Borrowing Facilities and Debt

3 Months Ended

Jan. 27, 2019

Debt Disclosure [Abstract]

Borrowing Facilities and 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 committed revolving credit agreement with a group of banks that is scheduled to expire in September 2021. This agreement provides for borrowings in United States dollars at interest rates keyed to one of various benchmark rates selected by Applied for each advance, plus a margin based on Applied’s public debt rating and includes financial and other covenants. Remaining credit facilities in the amount of approximately $73 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 as of both January 27, 2019 and October 28, 2018, and Applied has not utilized these credit facilities. In fiscal 2011, Applied established a short-term commercial paper program of up to $1.5 billion. As of January 27, 2019, Applied did not have any commercial paper outstanding.

Debt outstanding as of January 27, 2019 and October 28, 2018 was as follows:



	Principal Amount
	January 27, 2019			October 28, 2018			Effective Interest Rate	Interest Pay Dates

	(In millions)
Long-term debt:
2.625% Senior Notes Due 2020	$	600		$	600		2.640%	April 1, October 1
4.300% Senior Notes Due 2021	750			750			4.326%	June 15, December 15
3.900% Senior Notes Due 2025	700			700			3.944%	April 1, October 1
3.300% Senior Notes Due 2027	1,200			1,200			3.342%	April 1, October 1
5.100% Senior Notes Due 2035	500			500			5.127%	April 1, October 1
5.850% Senior Notes Due 2041	600			600			5.879%	June 15, December 15
4.350% Senior Notes Due 2047	1,000			1,000			4.361%	April 1, October 1
	5,350			5,350
Total unamortized discount	(10		)	(11		)
Total unamortized debt issuance costs	(30		)	(30		)
Total long-term debt	$	5,310		$	5,309

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

3 Months Ended

Jan. 27, 2019

Equity [Abstract]

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

Stockholders’ Equity, Comprehensive Income and Share-Based Compensation

Accumulated Other Comprehensive Income (Loss)

Changes in the components of AOCI, net of tax, were as follows:



	Unrealized Gain on Investments, Net			Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges			Defined and Postretirement Benefit Plans			Cumulative Translation Adjustments		Total

	(in millions)
Balance as of October 28, 2018	$	7		$	(9	)	$	(137	)	$	14	$	(125	)
Adoption of new accounting standards (a)	(17		)	—			—			—		(17		)

Other comprehensive income (loss) before reclassifications	5			(12		)	—			—		(7		)
Amounts reclassified out of AOCI	—			(5		)	—			—		(5		)
Other comprehensive income (loss), net of tax	5			(17		)	—			—		(12		)

Balance as of January 27, 2019	$	(5	)	$	(26	)	$	(137	)	$	14	$	(154	)

(a) - Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019. See Note 1.



	Unrealized Gain (Loss) on Investments, Net		Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges			Defined and Postretirement Benefit Plans			Cumulative Translation Adjustments		Total

	(in millions)
Balance as of October 29, 2017	$	53	$	(11	)	$	(120	)	$	14	$	(64	)
Other comprehensive income (loss) before reclassifications	6		(14		)	—			—		(8		)
Amounts reclassified out of AOCI	—		(5		)	(2		)	—		(7		)
Other comprehensive income (loss), net of tax	6		(19		)	(2		)	—		(15		)
Balance as of January 28, 2018	$	59	$	(30	)	$	(122	)	$	14	$	(79	)

The tax effects on net income of amounts reclassified from AOCI for the three months ended January 27, 2019 and January 28, 2018 were not material.

Stock Repurchase Program

In February 2018, the Board of Directors approved a common stock repurchase program authorizing up to an aggregate of $6.0 billion in repurchases. As of January 27, 2019, $3.6 billion remained available for future stock repurchases under this repurchase program.

The following table summarizes Applied’s stock repurchases for the three months ended January 27, 2019 and January 28, 2018:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(in millions, except per share amount)
Shares of common stock repurchased	22		15
Cost of stock repurchased	$	750	$	782
Average price paid per share	$	34.04	$	53.41

Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.

Dividends

In December 2018, Applied’s Board of Directors declared a quarterly cash dividend, payable in March 2019, in the amount of $0.20 per share. Dividends paid during the three months ended January 27, 2019 and January 28, 2018 totaled $192 million and $106 million, respectively. Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is 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 by the Board of Directors that cash dividends are in the best interests of Applied’s stockholders.

Share-Based Compensation

Applied has a stockholder-approved equity plan, the Employee Stock Incentive Plan, which permits grants to employees of share-based awards, including stock options, restricted stock, restricted stock units, performance shares and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control of Applied. 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 months ended January 27, 2019 and January 28, 2018, Applied recognized share-based compensation expense related equity awards and ESPP shares. The effect of share-based compensation on the results of operations was as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Cost of products sold	$	22	$	22
Research, development and engineering	24		24
Marketing and selling	8		8
General and administrative	11		11
Total share-based compensation	$	65	$	65

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, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal.

As of January 27, 2019, Applied had $514 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under Applied’s ESPP, which will be recognized over a weighted average period of 2.9 years. As of January 27, 2019, there were 67 million shares available for grants of share-based awards under the Employee Stock Incentive Plan, and an additional 17 million shares available for issuance under the ESPP.

Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units

A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the three months ended January 27, 2019 is presented below:



	Shares		Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 28, 2018	18		$	32.64
Granted	7		$	35.39
Vested	(7	)	$	27.83
Canceled	—		$	32.06
Outstanding as of January 27, 2019	18		$	35.46

As of January 27, 2019, 1.6 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals.

During the first quarter of fiscal 2019, certain executive officers were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return relative to a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period.

The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement described below. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement based on age and years of service.

The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures.

The fair value of the portion of the awards subject to the targeted levels of relative total shareholder return is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures.

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. There was no purchase during both of the three months ended January 27, 2019 and January 28, 2018, respectively. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.

Income Taxes	3 Months Ended
Income Taxes	Jan. 27, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act requires a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries payable over eight years. U.S. deferred tax assets and liabilities were subject to remeasurement due to the reduction of the U.S. federal corporate tax rate. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, which provided guidance on accounting for the income tax effects of the Tax Act and a measurement period for companies to complete this accounting. Applied completed the accounting for the Tax Act during the measurement period, which ended one year after the enactment date of the Tax Act, including the accounting for the remeasurement of deferred tax assets completed in the fourth quarter of fiscal 2018 and the accounting for the transition tax completed in the first quarter of fiscal 2019. The Tax Act also includes provisions that impact Applied starting in fiscal 2019, including a provision designed to tax global intangible low-taxed income (“GILTI”). On September 13, 2018, the U.S. government issued proposed regulations that, if finalized, would significantly affect how the Tax Act is interpreted related to a tax benefit of $46 million realized by Applied in the first quarter of fiscal 2019. Proposed regulations are not authoritative and may change in the regulatory review process. Pursuant to our accounting policies for uncertain tax positions, the tax benefit might reverse if the regulations are finalized as proposed. An accounting policy choice is allowed to either treat taxes due on future U.S. inclusions related to GILTI in taxable income as a current-period expense when incurred (the “period cost method”) or factor such amounts into the measurement of deferred taxes (the “deferred method”). Applied has chosen the period cost method. Applied’s effective tax rates for the first quarter of fiscal 2019 and 2018 were 13.2 percent and 86.1 percent, respectively. The effective tax rate for the first quarter of fiscal 2019 was lower than the same period in the prior fiscal year primarily due to tax expense of $1.0 billion in the first quarter of fiscal 2018 for the transition tax and remeasurement of deferred tax assets as a result of the Tax Act. This decrease was partially offset by tax expense in the first quarter of fiscal 2019 related to the resolution of tax liabilities for uncertain tax positions and by the excess tax benefit from share-based compensation being lower in the first quarter of fiscal 2019 than in the same period in the prior fiscal year. The first quarter of fiscal 2019 also included tax expense related to GILTI and changes in the geographical composition of income which includes jurisdictions with differing tax rates.

Warranty, Guarantees and Contingencies

3 Months Ended

Jan. 27, 2019

Commitments and Contingencies Disclosure [Abstract]

Warranty, Guarantees and Contingencies

Warranty

Changes in the warranty reserves are presented below:



	Three Months Ended
	January 27, 2019			January 28, 2018

	(In millions)
Beginning balance	$	208		$	206
Warranties issued	39			45
Change in reserves related to preexisting warranty	1			2
Consumption of reserves	(48		)	(43		)
Ending balance	$	200		$	210

Applied products are generally sold with a warranty for a 12-month 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 January 27, 2019, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $68 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 January 27, 2019, Applied has provided parent guarantees to banks for approximately $150 million to cover these arrangements.

Legal Matters

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, claims and proceedings cannot be predicted with certainty, Applied does not believe that any will have a material effect on its consolidated financial condition or results of operations.

Industry Segment Operations

3 Months Ended

Jan. 27, 2019

Segment Reporting [Abstract]

Industry Segment Operations

Applied’s three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, 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 January 27, 2019 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’s reportable segments.

The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.

The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, certain remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products.

The Display and Adjacent Markets segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and flexible coating systems and other display technologies for TVs, monitors, laptops, personal computers, smart phones, and other consumer-oriented devices.

Each operating 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. The chief operating decision-maker does not evaluate operating segments using total asset information.

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.

The Corporate and Other category includes revenues from products, as well as costs of products sold, for fabricating solar photovoltaic cells and modules, and certain operating expenses that are not allocated to its reportable segments and are managed separately at the corporate level. These operating expenses 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 actions pertain to a specific reportable segment. Segment operating income also 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.

Net sales and operating income (loss) for each reportable segment were as follows:



	Three Months Ended
	Net Sales		Operating Income (Loss)

	(In millions)
January 27, 2019:
Semiconductor Systems	$	2,268	$	631
Applied Global Services	962		285
Display and Adjacent Markets	507		115
Corporate and Other	16		(123		)
Total	$	3,753	$	908
January 28, 2018:
Semiconductor Systems	$	2,852	$	1,024
Applied Global Services	881		255
Display and Adjacent Markets	443		90
Corporate and Other	29		(154		)
Total	$	4,205	$	1,215

Net sales by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows:



	Three Months Ended
	January 27, 2019				January 28, 2018

	(In millions, except percentages)
China	$	968	26	%	$	964	23	%
Korea	572		15	%	1,203		29	%
Taiwan	656		18	%	741		18	%
Japan	651		17	%	482		11	%
Southeast Asia	160		4	%	193		4	%
Asia Pacific	3,007		80	%	3,583		85	%
United States	450		12	%	370		9	%
Europe	296		8	%	252		6	%
Total	$	3,753	100	%	$	4,205	100	%

Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018
Foundry, logic and other	44	%	37	%
Dynamic random-access memory (DRAM)	21	%	26	%
Flash memory	35	%	37	%
	100	%	100	%

The reconciling items included in Corporate and Other were as follows:



	Three Months Ended
	January 27, 2019			January 28, 2018

	(In millions)
Unallocated net sales	$	16		$	29
Unallocated cost of products sold and expenses	(74		)	(118		)
Share-based compensation	(65		)	(65		)
Total	$	(123	)	$	(154	)

The following customers accounted for at least 10 percent of Applied’s net sales for the three months ended January 27, 2019, and sales to these customers included products and services from multiple reportable segments.



	Percentage of Net Sales
Toshiba	14	%
SK Hynix Inc.	13	%
Intel Corporation	13	%
Taiwan Semiconductor Manufacturing Company Limited	11	%

Basis of Presentation (Policies)

3 Months Ended

Jan. 27, 2019

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Revenue Recognition

The incremental costs to obtain a contract are not material.

Allowance for Doubtful Accounts

Sales and Value Added Taxes

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

Shipping and Handling Costs

Warranty

Investments

Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is 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.

Recent Accounting Pronouncements

Accounting Standards Adopted

The most significant impact from the adoption of this standard is fewer constraints on revenue recognition upon shipment of manufacturing equipment.

Impacts to Previously Reported Results

Adoption of the standards related to revenue recognition and retirement benefits impacted Applied’s Consolidated Condensed Statement of Operations for the first quarter of fiscal 2018 as follows:



	Three Months Ended
	January 28, 2018
	As Previously Reported		Revenue Recognition Adjustment			Retirement Benefit Adjustment			As Adjusted
	(In millions, except per share amounts)

Net sales	$	4,204	$	1		$	—		$	4,205
Cost of products sold	$	2,284	$	(20	)	$	1		$	2,265
Gross profit	$	1,920	$	21		$	(1	)	$	1,940
Research, development and engineering	$	488	$	—		$	1		$	489
Interest and other income, net	$	25	$	—		$	2		$	27
Income before income taxes	$	1,162	$	21		$	(2	)	$	1,183
Provision for income taxes	$	1,027	$	(9	)	$	—		$	1,018
Net income	$	135	$	30		$	—		$	165
Earnings per share: basic	$	0.13	$	0.03		$	—		$	0.16
Earnings per share: diluted	$	0.13	$	0.02		$	—		$	0.15

Adoption of the retirement benefits standard did not have any impact on Applied’s Consolidated Balance Sheet or Consolidated Condensed Statement of Cash Flows.

Adoption of the standard related to revenue recognition impacted Applied’s Consolidated Balance Sheet at October 28, 2018 as follows:



	October 28, 2018
	As Previously Reported		Adjustment			As Adjusted
	(In millions)

Accounts receivable, net	$	2,565	$	(242	)	$	2,323
Inventories	$	3,722	$	(1	)	$	3,721
Other current assets	$	430	$	100		$	530
Deferred income taxes and other assets	$	470	$	3		$	473
Customer deposits and deferred revenue	$	1,347	$	(1,347	)	$	—
Contract liabilities	$	—	$	1,201		$	1,201
Retained earnings	$	20,874	$	6		$	20,880



	Three Months Ended
	January 28, 2018
	As Previously Reported			Adjustment			As Adjusted
	(In millions)

Cash flows from operating activities:
Net income	$	135		$	30		$	165
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes	$	41		$	(9	)	$	32
Changes in operating assets and liabilities:
Inventories	$	(195	)	$	(16	)	$	(211	)
Accounts payable and accrued expenses	$	(125	)	$	(2	)	$	(127	)
Contract liabilities	$	353		$	(3	)	$	350

Accounting Standards Not Yet Adopted

Fair Value Measurement

Fair Value Hierarchy


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


•	Level 2 — 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.

Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis

Derivatives

Goodwill

Goodwill and Intangible Assets

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.

Treasury Stock

Share-based Compensation

Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.

Performance Based Awards

Basis of Presentation - (Tables)

3 Months Ended

Jan. 27, 2019

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of the standards related to revenue recognition and retirement benefits impacted Applied’s Consolidated Condensed Statement of Operations for the first quarter of fiscal 2018 as follows:



	Three Months Ended
	January 28, 2018
	As Previously Reported		Revenue Recognition Adjustment			Retirement Benefit Adjustment			As Adjusted
	(In millions, except per share amounts)

Net sales	$	4,204	$	1		$	—		$	4,205
Cost of products sold	$	2,284	$	(20	)	$	1		$	2,265
Gross profit	$	1,920	$	21		$	(1	)	$	1,940
Research, development and engineering	$	488	$	—		$	1		$	489
Interest and other income, net	$	25	$	—		$	2		$	27
Income before income taxes	$	1,162	$	21		$	(2	)	$	1,183
Provision for income taxes	$	1,027	$	(9	)	$	—		$	1,018
Net income	$	135	$	30		$	—		$	165
Earnings per share: basic	$	0.13	$	0.03		$	—		$	0.16
Earnings per share: diluted	$	0.13	$	0.02		$	—		$	0.15

Adoption of the standard related to revenue recognition impacted Applied’s Consolidated Balance Sheet at October 28, 2018 as follows:



	October 28, 2018
	As Previously Reported		Adjustment			As Adjusted
	(In millions)

Accounts receivable, net	$	2,565	$	(242	)	$	2,323
Inventories	$	3,722	$	(1	)	$	3,721
Other current assets	$	430	$	100		$	530
Deferred income taxes and other assets	$	470	$	3		$	473
Customer deposits and deferred revenue	$	1,347	$	(1,347	)	$	—
Contract liabilities	$	—	$	1,201		$	1,201
Retained earnings	$	20,874	$	6		$	20,880

The adoption did not impact total cash provided by operating activities, however it impacted individual components of cash provided by operating activities for the first quarter of fiscal 2018 as follows:



	Three Months Ended
	January 28, 2018
	As Previously Reported			Adjustment			As Adjusted
	(In millions)

Cash flows from operating activities:
Net income	$	135		$	30		$	165
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes	$	41		$	(9	)	$	32
Changes in operating assets and liabilities:
Inventories	$	(195	)	$	(16	)	$	(211	)
Accounts payable and accrued expenses	$	(125	)	$	(2	)	$	(127	)
Contract liabilities	$	353		$	(3	)	$	350

Earnings Per Share (Tables)

3 Months Ended

Jan. 27, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions, except per share amounts)
Numerator:
Net income	$	771	$	165
Denominator:
Weighted average common shares outstanding	957		1,056
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares	8		15
Denominator for diluted earnings per share	965		1,071
Basic earnings per share	$	0.81	$	0.16
Diluted earnings per share	$	0.80	$	0.15
Potentially weighted dilutive securities	8		—

Cash, Cash Equivalents and Investments (Tables)

3 Months Ended

Jan. 27, 2019

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

The following tables summarize Applied’s cash, cash equivalents and investments:



January 27, 2019	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,016	$	—	$	—	$	1,016
Cash equivalents:
Money market funds	1,911		—		—		1,911
Commercial paper, corporate bonds and medium-term notes	265		—		—		265
Total Cash equivalents	2,176		—		—		2,176
Total Cash and Cash equivalents	$	3,192	$	—	$	—	$	3,192
Short-term and long-term investments:
U.S. Treasury and agency securities	$	375	$	—	$	—	$	375
Non-U.S. government securities*	9		—		—		9
Municipal securities	402		1		2		401
Commercial paper, corporate bonds and medium-term notes	628		1		3		626
Asset-backed and mortgage-backed securities	565		—		3		562
Total fixed income securities	1,979		2		8		1,973
Publicly traded equity securities	15		20		4		31
Equity investments in privately-held companies	104		—		—		104
Total equity investments	119		20		4		135
Total short-term and long-term investments	$	2,098	$	22	$	12	$	2,108

Total Cash, Cash equivalents and Investments	$	5,290	$	22	$	12	$	5,300

_________________________

* Includes agency debt securities guaranteed by Canada.



October 28, 2018	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,489	$	—	$	—	$	1,489
Cash equivalents:
Money market funds	1,599		—		—		1,599
Commercial paper, corporate bonds and medium-term notes	352		—		—		352
Total Cash equivalents	1,951		—		—		1,951
Total Cash and Cash equivalents	$	3,440	$	—	$	—	$	3,440
Short-term and long-term investments:
U.S. Treasury and agency securities	$	335	$	—	$	2	$	333
Non-U.S. government securities*	10		—		—		10
Municipal securities	399		—		4		395
Commercial paper, corporate bonds and medium-term notes	705		—		3		702
Asset-backed and mortgage-backed securities	595		—		4		591
Total fixed income securities	2,044		—		13		2,031
Publicly traded equity securities	17		25		4		38
Equity investments in privately-held companies	89		—		—		89
Total equity investments	106		25		4		127
Total short-term and long-term investments	$	2,150	$	25	$	17	$	2,158

Total Cash, Cash equivalents and Investments	$	5,590	$	25	$	17	$	5,598

_________________________

* Includes agency debt securities guaranteed by Canada.

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments as of January 27, 2019:



	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	429	$	428
Due after one through five years	985		983
No single maturity date**	684		697
Total	$	2,098	$	2,108

_________________________

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

Equity Securities, FV-NI

The components of gain (losses) on equity investments for the three months ended January 27, 2019 were as follows:



	Three Months Ended
	January 27, 2019

	(In millions)
Publicly traded equity securities
Unrealized gain	$	6
Unrealized loss	(2		)
Gain on sales	1
Loss on sales	—
Equity investments in privately-held companies
Unrealized gain	7
Unrealized loss	(1		)
Gain on sales	1
Loss on sales	—
Total gain on equity investments, net	$	12

Fair Value Measurements (Tables)

3 Months Ended

Jan. 27, 2019

Fair Value Disclosures [Abstract]

Financial assets measured at fair value on a recurring basis

Financial assets (excluding cash balances) measured at fair value on a recurring basis are summarized below:



	January 27, 2019						October 28, 2018
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds	$	1,911	$	—	$	1,911	$	1,599	$	—	$	1,599
U.S. Treasury and agency securities	343		32		375		297		36		333
Non-U.S. government securities	—		9		9		—		10		10
Municipal securities	—		401		401		—		395		395
Commercial paper, corporate bonds and medium-term notes	—		891		891		—		1,054		1,054
Asset-backed and mortgage-backed securities	—		562		562		—		591		591
Total available-for-sale debt security investments	$	2,254	$	1,895	$	4,149	$	1,896	$	2,086	$	3,982
Equity investments with readily determinable values
Publicly traded equity securities	$	31	$	—	$	31	$	38	$	—	$	38
Total equity investments with readily determinable values	$	31	$	—	$	31	$	38	$	—	$	38

Total	$	2,285	$	1,895	$	4,180	$	1,934	$	2,086	$	4,020

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Jan. 27, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of derivative instruments on the consolidated statement of operations

The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows:



		Three Months Ended
		January 27, 2019									January 28, 2018
		Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing			Effective Portion						Ineffective Portion and Amount Excluded from Effectiveness Testing
	Location of Gain or (Loss)	Gain or (Loss)			Gain or (Loss) Reclassified from AOCI into Income			Gain or (Loss) Recognized in Income			Gain or (Loss)			Gain or (Loss) Reclassified from AOCI into Income			Gain or (Loss) Recognized in Income

		(In millions)
Derivatives in Cash Flow Hedging Relationships
Foreign exchange contracts	AOCI	$	(16	)	$	—		$	—		$	(18	)	$	—		$	—
Foreign exchange contracts	Cost of products sold	—			12			5			—			8			2
Foreign exchange contracts	General and administrative	—			(5		)	(1		)	—			(1		)	(2		)
Interest rate contracts	Interest expense	—			—			—			—			(1		)	—
Total		$	(16	)	$	7		$	4		$	(18	)	$	6		$	—

Derivatives not designated as hedging instruments in statement of operations



		Amount of Gain or (Loss) Recognized in Income
		Three Months Ended
	Location of Gain or (Loss) Recognized in Income	January 27, 2019			January 28, 2018

		(In millions)
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	General and administrative	$	(10	)	$	(8	)
Total		$	(10	)	$	(8	)

Contract Balances (Tables)

3 Months Ended

Jan. 27, 2019

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

Contract balances at the end of each reporting period were as follows:



	January 27, 2019		October 28, 2018
	(In millions)

Contract assets	$	100	$	99
Contract liabilities	$	1,356	$	1,201

Balance Sheet Detail (Tables)

3 Months Ended

Jan. 27, 2019

Balance Sheet Detail [Abstract]

Inventories



	January 27, 2019		October 28, 2018

	(In millions)
Inventories
Customer service spares	$	1,093	$	989
Raw materials	1,018		1,020
Work-in-process	526		505
Finished goods	1,066		1,207
	$	3,703	$	3,721

Other current assets



	January 27, 2019		October 28, 2018

	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	32	$	40
Prepaid expenses and other	394		490
	$	426	$	530

Property, plant and equipment, net



	Useful Life	January 27, 2019			October 28, 2018

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	245		$	245
Buildings and improvements	3-30	1,460			1,448
Demonstration and manufacturing equipment	3-5	1,335			1,282
Furniture, fixtures and other equipment	3-5	639			634
Construction in progress		243			203
Gross property, plant and equipment		3,922			3,812
Accumulated depreciation		(2,466		)	(2,405		)
		$	1,456		$	1,407

Deferred Income Taxes and Other Assets



	January 27, 2019		October 28, 2018

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes and income taxes receivable	$	1,856	$	319
Other assets	170		154
	$	2,026	$	473

Accounts Payable and Accrued Expenses



	January 27, 2019		October 28, 2018

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	978	$	996
Compensation and employee benefits	426		639
Warranty	200		208
Dividends payable	190		193
Income taxes payable	129		136
Other accrued taxes	73		112
Interest payable	59		38
Other	365		399
	$	2,420	$	2,721

Other liabilities



	January 27, 2019		October 28, 2018

	(In millions)
Other Liabilities
Defined and postretirement benefit plans	$	178	$	177
Other	146		126
	$	324	$	303

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

3 Months Ended

Jan. 27, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Details of goodwill as of January 27, 2019 and October 28, 2018 were as follows:



	January 27, 2019		October 28, 2018

	(In millions)
Semiconductor Systems	$	2,151	$	2,151
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Carrying amount	$	3,368	$	3,368

Summary of purchased technology and intangible assets

A summary of Applied’s purchased technology and intangible assets is set forth below:



	January 27, 2019		October 28, 2018

	(In millions)
Purchased technology, net	$	99	$	109
Intangible assets - finite-lived, net	100		104
Total	$	199	$	213

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:



	January 27, 2019									October 28, 2018
	Purchased Technology			Other Intangible Assets			Total			Purchased Technology			Other Intangible Assets			Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,449		$	252		$	1,701		$	1,449		$	252		$	1,701
Applied Global Services	33			44			77			33			44			77
Display and Adjacent Markets	163			38			201			163			38			201
Corporate and Other	—			9			9			—			9			9
Gross carrying amount	$	1,645		$	343		$	1,988		$	1,645		$	343		$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,382	)	$	(154	)	$	(1,536	)	$	(1,375	)	$	(150	)	$	(1,525	)
Applied Global Services	(29		)	(44		)	(73		)	(29		)	(44		)	(73		)
Display and Adjacent Markets	(135		)	(36		)	(171		)	(132		)	(36		)	(168		)
Corporate and Other	—			(9		)	(9		)	—			(9		)	(9		)
Accumulated amortization	$	(1,546	)	$	(243	)	$	(1,789	)	$	(1,536	)	$	(239	)	$	(1,775	)
Carrying amount	$	99		$	100		$	199		$	109		$	104		$	213

Summary of amortization expense

Details of amortization expense by segment were as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Semiconductor Systems	$	11	$	46
Display and Adjacent Markets	3		4
Total	$	14	$	50

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Cost of products sold	$	9	$	45
Marketing and selling	5		5
Total	$	14	$	50

Future estimated amortization expense

As of January 27, 2019, future estimated amortization expense is expected to be as follows:



	Amortization Expense
	(In millions)
2019 (remaining 9 months)	$	43
2020	52
2021	39
2022	24
2023	11
Thereafter	30
Total	$	199

Borrowing Facilities and Debt (Tables)

3 Months Ended

Jan. 27, 2019

Debt Disclosure [Abstract]

Debt Outstanding

Debt outstanding as of January 27, 2019 and October 28, 2018 was as follows:



	Principal Amount
	January 27, 2019			October 28, 2018			Effective Interest Rate	Interest Pay Dates

	(In millions)
Long-term debt:
2.625% Senior Notes Due 2020	$	600		$	600		2.640%	April 1, October 1
4.300% Senior Notes Due 2021	750			750			4.326%	June 15, December 15
3.900% Senior Notes Due 2025	700			700			3.944%	April 1, October 1
3.300% Senior Notes Due 2027	1,200			1,200			3.342%	April 1, October 1
5.100% Senior Notes Due 2035	500			500			5.127%	April 1, October 1
5.850% Senior Notes Due 2041	600			600			5.879%	June 15, December 15
4.350% Senior Notes Due 2047	1,000			1,000			4.361%	April 1, October 1
	5,350			5,350
Total unamortized discount	(10		)	(11		)
Total unamortized debt issuance costs	(30		)	(30		)
Total long-term debt	$	5,310		$	5,309

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

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

3 Months Ended

Jan. 27, 2019

Equity [Abstract]

Components of accumulated other comprehensive loss, after-tax basis

Changes in the components of AOCI, net of tax, were as follows:



	Unrealized Gain on Investments, Net			Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges			Defined and Postretirement Benefit Plans			Cumulative Translation Adjustments		Total

	(in millions)
Balance as of October 28, 2018	$	7		$	(9	)	$	(137	)	$	14	$	(125	)
Adoption of new accounting standards (a)	(17		)	—			—			—		(17		)

Other comprehensive income (loss) before reclassifications	5			(12		)	—			—		(7		)
Amounts reclassified out of AOCI	—			(5		)	—			—		(5		)
Other comprehensive income (loss), net of tax	5			(17		)	—			—		(12		)

Balance as of January 27, 2019	$	(5	)	$	(26	)	$	(137	)	$	14	$	(154	)



	Unrealized Gain (Loss) on Investments, Net		Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges			Defined and Postretirement Benefit Plans			Cumulative Translation Adjustments		Total

	(in millions)
Balance as of October 29, 2017	$	53	$	(11	)	$	(120	)	$	14	$	(64	)
Other comprehensive income (loss) before reclassifications	6		(14		)	—			—		(8		)
Amounts reclassified out of AOCI	—		(5		)	(2		)	—		(7		)
Other comprehensive income (loss), net of tax	6		(19		)	(2		)	—		(15		)
Balance as of January 28, 2018	$	59	$	(30	)	$	(122	)	$	14	$	(79	)

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three months ended January 27, 2019 and January 28, 2018:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(in millions, except per share amount)
Shares of common stock repurchased	22		15
Cost of stock repurchased	$	750	$	782
Average price paid per share	$	34.04	$	53.41

Effect of share-based compensation on the results of operations

The effect of share-based compensation on the results of operations was as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018

	(In millions)
Cost of products sold	$	22	$	22
Research, development and engineering	24		24
Marketing and selling	8		8
General and administrative	11		11
Total share-based compensation	$	65	$	65

Restricted stock units and restricted stock activity



	Shares		Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 28, 2018	18		$	32.64
Granted	7		$	35.39
Vested	(7	)	$	27.83
Canceled	—		$	32.06
Outstanding as of January 27, 2019	18		$	35.46

Warranty, Guarantees And Contingencies (Tables)

3 Months Ended

Jan. 27, 2019

Commitments and Contingencies Disclosure [Abstract]

Changes in the warranty reserves

Changes in the warranty reserves are presented below:



	Three Months Ended
	January 27, 2019			January 28, 2018

	(In millions)
Beginning balance	$	208		$	206
Warranties issued	39			45
Change in reserves related to preexisting warranty	1			2
Consumption of reserves	(48		)	(43		)
Ending balance	$	200		$	210

Industry Segment Operations (Tables)

3 Months Ended

Jan. 27, 2019

Segment Reporting [Abstract]

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

Net sales and operating income (loss) for each reportable segment were as follows:



	Three Months Ended
	Net Sales		Operating Income (Loss)

	(In millions)
January 27, 2019:
Semiconductor Systems	$	2,268	$	631
Applied Global Services	962		285
Display and Adjacent Markets	507		115
Corporate and Other	16		(123		)
Total	$	3,753	$	908
January 28, 2018:
Semiconductor Systems	$	2,852	$	1,024
Applied Global Services	881		255
Display and Adjacent Markets	443		90
Corporate and Other	29		(154		)
Total	$	4,205	$	1,215

Revenue from External Customers by Geographic Areas

Net sales by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows:



	Three Months Ended
	January 27, 2019				January 28, 2018

	(In millions, except percentages)
China	$	968	26	%	$	964	23	%
Korea	572		15	%	1,203		29	%
Taiwan	656		18	%	741		18	%
Japan	651		17	%	482		11	%
Southeast Asia	160		4	%	193		4	%
Asia Pacific	3,007		80	%	3,583		85	%
United States	450		12	%	370		9	%
Europe	296		8	%	252		6	%
Total	$	3,753	100	%	$	4,205	100	%

Disaggregation of Revenue

Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:



	Three Months Ended
	January 27, 2019		January 28, 2018
Foundry, logic and other	44	%	37	%
Dynamic random-access memory (DRAM)	21	%	26	%
Flash memory	35	%	37	%
	100	%	100	%

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

The reconciling items included in Corporate and Other were as follows:



	Three Months Ended
	January 27, 2019			January 28, 2018

	(In millions)
Unallocated net sales	$	16		$	29
Unallocated cost of products sold and expenses	(74		)	(118		)
Share-based compensation	(65		)	(65		)
Total	$	(123	)	$	(154	)

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



	Percentage of Net Sales
Toshiba	14	%
SK Hynix Inc.	13	%
Intel Corporation	13	%
Taiwan Semiconductor Manufacturing Company Limited	11	%

Basis of Presentation Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Oct. 29, 2018	Oct. 28, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Extended product warranty period	2 years
Retained earnings	$ 23,032		$ 20,880
Accumulated other comprehensive loss	$ 154		$ 125
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes		$ 1,600
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		21
Accumulated other comprehensive loss		$ 17

Basis of Presentation - Effects of New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018	Oct. 28, 2018
Income Statement [Abstract]
Net sales	$ 3,753	$ 4,205
Cost of products sold	2,088	2,265
Gross profit	1,665	1,940
Research, development and engineering	516	489
Interest and other income, net	40	27
Income before income taxes	888	1,183
Provision for income taxes	117	1,018
Net income	$ 771	$ 165
Basic earnings per share (in dollars per share)	$ 0.81	$ 0.16
Diluted earnings per share (in dollars per share)	$ 0.80	$ 0.15
Balance Sheet Detail [Abstract]
Accounts receivable, net	$ 2,444		$ 2,323
Inventories	3,703		3,721
Other current assets	426		530
Deferred income taxes and other assets	2,026		473
Customer deposits and deferred revenue			0
Contract liabilities	1,356		1,201
Retained earnings	23,032		20,880
Cash flows from operating activities:
Net income	771	$ 165
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes	41	32
Changes in operating assets and liabilities:
Inventories	18	(211)
Accounts payable and accrued expenses	(313)	(127)
Contract liabilities	$ 155	350
As Previously Reported
Income Statement [Abstract]
Net sales		4,204
Cost of products sold		2,284
Gross profit		1,920
Research, development and engineering		488
Interest and other income, net		25
Income before income taxes		1,162
Provision for income taxes		1,027
Net income		$ 135
Basic earnings per share (in dollars per share)		$ 0.13
Diluted earnings per share (in dollars per share)		$ 0.13
Balance Sheet Detail [Abstract]
Accounts receivable, net			2,565
Inventories			3,722
Other current assets			430
Deferred income taxes and other assets			470
Customer deposits and deferred revenue			1,347
Contract liabilities			0
Retained earnings			20,874
Cash flows from operating activities:
Net income		$ 135
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes		41
Changes in operating assets and liabilities:
Inventories		(195)
Accounts payable and accrued expenses		(125)
Contract liabilities		353
Accounting Standards Update 2014-09 \| Restatement Adjustment
Income Statement [Abstract]
Net sales		1
Cost of products sold		(20)
Gross profit		21
Income before income taxes		21
Provision for income taxes		(9)
Net income		$ 30
Basic earnings per share (in dollars per share)		$ 0.03
Diluted earnings per share (in dollars per share)		$ 0.02
Balance Sheet Detail [Abstract]
Accounts receivable, net			(242)
Inventories			(1)
Other current assets			100
Deferred income taxes and other assets			3
Customer deposits and deferred revenue			(1,347)
Contract liabilities			1,201
Retained earnings			$ 6
Cash flows from operating activities:
Net income		$ 30
Adjustments required to reconcile net income to cash provided by operating activities:
Deferred income taxes		(9)
Changes in operating assets and liabilities:
Inventories		(16)
Accounts payable and accrued expenses		(2)
Contract liabilities		(3)
Accounting Standards Update 2017-07 \| Restatement Adjustment
Income Statement [Abstract]
Cost of products sold		1
Gross profit		(1)
Research, development and engineering		1
Interest and other income, net		2
Income before income taxes		$ (2)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Numerator:
Net income	$ 771	$ 165
Denominator:
Weighted average common shares outstanding (in shares)	957	1,056
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares)	8	15
Denominator for diluted earnings per share (in shares)	965	1,071
Basic earnings per share (in dollars per share)	$ 0.81	$ 0.16
Diluted earnings per share (in dollars per share)	$ 0.80	$ 0.15
Potentially dilutive securities (in shares)	8	0

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
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-Section S99
-Paragraph 1
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+ Details

- Definition

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.

+ References

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+ Details

- Definition

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

+ References + Details

Cash, Cash Equivalents and Investments (Summary of Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018	Jan. 28, 2018	Oct. 29, 2017
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,016	$ 1,489
Total Cash equivalents	2,176	1,951
Total Cash and Cash equivalents	3,192	3,440	$ 6,799	$ 5,010
Equity investments cost	119
Equity investments unrealized gain	20
Equity investments unrealized loss	4
Equity investments estimated fair value	135
Total short-term and long-term investments cost	2,098
Gross unrealized gains on short-term and long-term investments	22
Gross unrealized losses on short-term and long-term investments	12
Estimated fair value of short-term and long-term investments	2,108
Gross unrealized gain on publicly traded equity securities		25
Gross unrealized loss on publicly traded equity securities		4
Equity investments in privately-held companies		89
Cost of equity investments		106
Estimated fair value of equity investments		127
Cost of short-term and long-term investments	2,098	2,150
Gross unrealized gain on short term and long term investments		25
Gross unrealized loss on short term and long term investments		17
Estimated fair value of short-term and long-term investments	2,108	2,158
Cash, cash equivalents and investments, cost	5,290	5,590
Cash, cash equivalents and investments, gross unrealized gains	22	25
Cash, cash equivalents and investments, gross unrealized losses	12	17
Cash, cash equivalents and investments, estimated fair value	5,300	5,598
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,979	2,044
Gross unrealized gains on fixed income securities	2	0
Gross unrealized losses on fixed income securities	8	13
Estimated fair value of fixed income securities	1,973	2,031
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	375	335
Gross unrealized gains on fixed income securities	0	0
Gross unrealized losses on fixed income securities	0	2
Estimated fair value of fixed income securities	375	333
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	402	399
Gross unrealized gains on fixed income securities	1	0
Gross unrealized losses on fixed income securities	2	4
Estimated fair value of fixed income securities	401	395
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	628	705
Gross unrealized gains on fixed income securities	1	0
Gross unrealized losses on fixed income securities	3	3
Estimated fair value of fixed income securities	626	702
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	565	595
Gross unrealized gains on fixed income securities	0	0
Gross unrealized losses on fixed income securities	3	4
Estimated fair value of fixed income securities	562	591
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	15
Equity investments unrealized gain	20
Equity investments unrealized loss	4
Equity investments estimated fair value	31
Publicly traded equity securities cost		17
Gross unrealized gain on publicly traded equity securities		25
Gross unrealized loss on publicly traded equity securities		4
Publicly traded equity securities estimated fair value		38
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	104
Equity investments estimated fair value	104
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	1,911	1,599
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	265	352
CANADA \| Non-U.S. government securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	9
Gross unrealized gains on fixed income securities	0
Gross unrealized losses on fixed income securities	0
Estimated fair value of fixed income securities	$ 9
Canada and Germany \| Non-U.S. government securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities		10
Gross unrealized gains on fixed income securities		0
Gross unrealized losses on fixed income securities		0
Estimated fair value of fixed income securities		$ 10

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Contractual maturities of investments
Due in one year or less, Cost	$ 429
Due after one through five years, Cost	985
No single maturity date, Cost	684
Cost of short-term and long-term investments	2,098	$ 2,150
Due in one year or less, Estimated Fair Value	428
Due after one through five years, Estimated Fair Value	983
No single maturity date, Estimated Fair Value	697
Estimated fair value of short-term and long-term investments	$ 2,108	$ 2,158

Cash, Cash Equivalents and Investments - Narrative (Details Textual) - USD ($)	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Fixed Income Securities
Schedule of Cash, Cash Equivalents and Investments [Line Items]
Other than temporary impairment losses, investments	$ 0	$ 0

Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) $ in Millions	3 Months Ended
	Jan. 27, 2019 USD ($)
Gain (Loss) on Securities [Line Items]
Total gain on equity investments, net	$ 12
Publicly traded equity securities
Gain (Loss) on Securities [Line Items]
Unrealized gain	6
Unrealized loss	(2)
Gain on sales	1
Loss on sales	0
Equity investments in privately-held companies
Gain (Loss) on Securities [Line Items]
Unrealized gain	7
Unrealized loss	(1)
Gain on sales	1
Loss on sales	$ 0

Fair Value Measurements (Details Textual) - USD ($)	Jan. 27, 2019	Oct. 29, 2018	Oct. 28, 2018	Jan. 28, 2018
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Retained earnings	$ 23,032,000,000		$ 20,880,000,000
Fair value of transfers from level one to level two	0			$ 0
Fair value of transfers from level two to level one	0			$ 0
Investment securities	2,108,000,000		2,158,000,000
Long-term debt, principal amount	5,400,000,000		5,400,000,000
Recurring fair value measurements \| Level 3
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment securities	0		0
Estimated fair value \| Level 2
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt fair value	$ 5,500,000,000		$ 5,400,000,000
Accounting Standards Update 2016-01
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Retained earnings		$ 21,000,000

Fair Value Measurements (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Assets:
Equity investments with readily determinable values	$ 135
Recurring fair value measurements
Assets:
Available-for-sale debt security investments	4,149	$ 3,982
Equity investments with readily determinable values	31	38
Total	4,180	4,020
Recurring fair value measurements \| Money market funds
Assets:
Available-for-sale debt security investments	1,911	1,599
Recurring fair value measurements \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	375	333
Recurring fair value measurements \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	9	10
Recurring fair value measurements \| Municipal securities
Assets:
Available-for-sale debt security investments	401	395
Recurring fair value measurements \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	891	1,054
Recurring fair value measurements \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	562	591
Recurring fair value measurements \| Publicly traded equity securities
Assets:
Equity investments with readily determinable values	31	38
Recurring fair value measurements \| Level 1
Assets:
Available-for-sale debt security investments	2,254	1,896
Equity investments with readily determinable values	31	38
Total	2,285	1,934
Recurring fair value measurements \| Level 1 \| Money market funds
Assets:
Available-for-sale debt security investments	1,911	1,599
Recurring fair value measurements \| Level 1 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	343	297
Recurring fair value measurements \| Level 1 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Municipal securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Publicly traded equity securities
Assets:
Equity investments with readily determinable values	31	38
Recurring fair value measurements \| Level 2
Assets:
Available-for-sale debt security investments	1,895	2,086
Equity investments with readily determinable values	0	0
Total	1,895	2,086
Recurring fair value measurements \| Level 2 \| Money market funds
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 2 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	32	36
Recurring fair value measurements \| Level 2 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	9	10
Recurring fair value measurements \| Level 2 \| Municipal securities
Assets:
Available-for-sale debt security investments	401	395
Recurring fair value measurements \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	891	1,054
Recurring fair value measurements \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	562	591
Recurring fair value measurements \| Level 2 \| Publicly traded equity securities
Assets:
Equity investments with readily determinable values	$ 0	$ 0

Derivative Instruments and Hedging Activities (Details Textual)	3 Months Ended
	Jan. 27, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Time period for hedging of foreign currency transaction	24 months
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings	12 months

Derivative Instruments and Hedging Activities (Derivatives in Statements of Operations) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ (16)	$ (18)
Effective portion - gain or (loss) reclassified from AOCI into income	7	6
Ineffective portion and amount excluded from effectiveness testing - gain or (loss) recognized in income	4	0
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	(16)	(18)
Effective portion - gain or (loss) reclassified from AOCI into income	0	0
Ineffective portion and amount excluded from effectiveness testing - gain or (loss) recognized in income	0	0
Foreign exchange contracts \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	0	0
Effective portion - gain or (loss) reclassified from AOCI into income	12	8
Ineffective portion and amount excluded from effectiveness testing - gain or (loss) recognized in income	5	2
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	0	0
Effective portion - gain or (loss) reclassified from AOCI into income	(5)	(1)
Ineffective portion and amount excluded from effectiveness testing - gain or (loss) recognized in income	(1)	(2)
Interest rate contracts \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	0	0
Effective portion - gain or (loss) reclassified from AOCI into income	0	(1)
Ineffective portion and amount excluded from effectiveness testing - gain or (loss) recognized in income	$ 0	$ 0

Derivative Instruments and Hedging Activities (Gain/Loss Recognized in Income) (Details) - Foreign exchange contracts - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ (10)	$ (8)
General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ (10)	$ (8)

Accounts Receivable, Net (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018	Oct. 28, 2018
Receivables [Abstract]
Factored accounts receivable	$ 464	$ 376
Allowance for doubtful accounts	$ 33		$ 33

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 100	$ 99
Contract liabilities	$ 1,356	$ 1,201

Contract Balances - Narrative (Details Textual)	3 Months Ended
Contract Balances - Narrative (Details Textual)	Jan. 27, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 288,000,000
Impairment loss on accounts receivable and contract assets	0
Long-term Contract with Customer
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligation	$ 232,000,000
Revenue performance obligation description of timing	expected to be recognized within the next 36 months.

Balance Sheet Detail (Inventories) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Inventories
Customer service spares	$ 1,093	$ 989
Raw materials	1,018	1,020
Work-in-process	526	505
Finished goods	1,066	1,207
Total Inventories	3,703	3,721
Inventory at customer locations included in finished goods	8	19
Inventory, finished goods, evaluation inventory, net of reserves	$ 341	$ 350

Balance Sheet Detail (Other Current Assets) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Other Current Assets [Abstract]
Prepaid income taxes and income taxes receivable	$ 32	$ 40
Prepaid expenses and other	394	490
Other Current Assets	$ 426	$ 530

Balance Sheet Detail (Property, Plant and Equipment) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Oct. 28, 2018
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 3,922	$ 3,812
Accumulated depreciation	(2,466)	(2,405)
Property, Plant and Equipment, Net	1,456	1,407
Land and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	245	245
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 1,460	1,448
Buildings and improvements \| Min
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Buildings and improvements \| Max
Property, Plant and Equipment [Line Items]
Useful Life	30 years
Demonstration and manufacturing equipment
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 1,335	1,282
Demonstration and manufacturing equipment \| Min
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Demonstration and manufacturing equipment \| Max
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 639	634
Furniture, fixtures and other equipment \| Min
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Furniture, fixtures and other equipment \| Max
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Construction in progress
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 243	$ 203

Balance Sheet Detail Balance Sheet Detail (Deferred Income Taxes and Other Assets) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Balance Sheet Detail [Abstract]
Non-current deferred income taxes and income taxes receivable	$ 1,856	$ 319
Other assets	170	154
Deferred income taxes and other assets	$ 2,026	$ 473

Balance Sheet Detail (Accounts Payable and Accrued Expense) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Accounts Payable and Accrued Expenses
Accounts payable	$ 978	$ 996
Compensation and employee benefits	426	639
Warranty	200	208
Dividends payable	190	193
Income taxes payable	129	136
Other accrued taxes	73	112
Interest payable	59	38
Other	365	399
Accounts Payable and Accrued Expenses	$ 2,420	$ 2,721

Balance Sheet Detail (Other Liabilities) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Other Liabilities
Defined and postretirement benefit plans	$ 178	$ 177
Other	146	126
Other Liabilities	$ 324	$ 303

Goodwill, Purchased Technology and Other Intangible Assets (Schedule of Goodwill and Other Indefinite-lived Intangible Assets) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Goodwill [Line Items]
Goodwill	$ 3,368	$ 3,368
Semiconductor Systems
Goodwill [Line Items]
Goodwill	2,151	2,151
Applied Global Services
Goodwill [Line Items]
Goodwill	1,018	1,018
Display and Adjacent Markets
Goodwill [Line Items]
Goodwill	$ 199	$ 199

Goodwill, Purchased Technology and Other Intangible Assets (Schedule of Purchased Technology and Intangible Assets) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 199	$ 213
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	99	109
Intangible assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 100	$ 104

Goodwill, Purchased Technology and Other Intangible Assets Narrative (Details Textual)	3 Months Ended
	Jan. 27, 2019
Min
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	15 years

Goodwill, Purchased Technology and Other Intangible Assets (Schedule of Finite-lived Intangible Assets) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Finite-lived intangible assets
Gross carrying amount:	$ 1,988	$ 1,988
Accumulated amortization:	(1,789)	(1,775)
Total	199	213
Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	9	9
Accumulated amortization:	(9)	(9)
Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,701	1,701
Accumulated amortization:	(1,536)	(1,525)
Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	77	77
Accumulated amortization:	(73)	(73)
Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	201	201
Accumulated amortization:	(171)	(168)
Purchased technology, net
Finite-lived intangible assets
Gross carrying amount:	1,645	1,645
Accumulated amortization:	(1,546)	(1,536)
Total	99	109
Purchased technology, net \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	0	0
Accumulated amortization:	0	0
Purchased technology, net \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,449	1,449
Accumulated amortization:	(1,382)	(1,375)
Purchased technology, net \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	33	33
Accumulated amortization:	(29)	(29)
Purchased technology, net \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	163	163
Accumulated amortization:	(135)	(132)
Intangible assets
Finite-lived intangible assets
Gross carrying amount:	343	343
Accumulated amortization:	(243)	(239)
Total	100	104
Intangible assets \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	9	9
Accumulated amortization:	(9)	(9)
Intangible assets \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	252	252
Accumulated amortization:	(154)	(150)
Intangible assets \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	44	44
Accumulated amortization:	(44)	(44)
Intangible assets \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	38	38
Accumulated amortization:	$ (36)	$ (36)

Goodwill, Purchased Technology and Other Intangible Assets (Amortization Expense by Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14	$ 50
Semiconductor Systems \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	11	46
Display and Adjacent Markets \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 3	$ 4

Goodwill, Purchased Technology and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14	$ 50
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	9	45
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 5	$ 5

Goodwill, Purchased Technology and Other Intangible Assets (Estimated Amortization Expense) (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Future estimated amortization expense
2019 (remaining 9 months)	$ 43
2020	52
2021	39
2022	24
2023	11
Thereafter	30
Total	$ 199	$ 213

Borrowing Facilities and Debt (Details Textual) - USD ($)	Jan. 27, 2019	Oct. 28, 2018	Oct. 30, 2011
Debt Instrument [Line Items]
Available revolving credit agreement	$ 1,600,000,000.0
Outstanding credit facilities	0	$ 0
Commercial paper			$ 1,500,000,000
Revolving Credit
Debt Instrument [Line Items]
Available revolving credit agreement	1,500,000,000.0
Foreign Line of Credit
Debt Instrument [Line Items]
Available revolving credit agreement	73,000,000
Commercial paper
Debt Instrument [Line Items]
Outstanding commercial paper	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Borrowing Facilities and Debt (Details) - USD ($) $ in Millions	Jan. 27, 2019	Oct. 28, 2018
Debt Instrument [Line Items]
Long-term debt, principal amount	$ 5,400	$ 5,400
Total long-term debt	5,310	5,309
Senior Notes
Debt Instrument [Line Items]
Long-term debt, principal amount	5,350	5,350
Total unamortized discount	(10)	(11)
Total unamortized debt issuance costs	$ (30)	(30)
Senior Notes \| 2.625% Senior Notes Due 2020
Debt Instrument [Line Items]
Stated interest rate (as percent)	2.625%
Long-term debt, principal amount	$ 600	600
Effective Interest Rate	2.64%
Senior Notes \| 4.300% Senior Notes Due 2021
Debt Instrument [Line Items]
Stated interest rate (as percent)	4.30%
Long-term debt, principal amount	$ 750	750
Effective Interest Rate	4.326%
Senior Notes \| 3.900% Senior Notes Due 2025
Debt Instrument [Line Items]
Stated interest rate (as percent)	3.90%
Long-term debt, principal amount	$ 700	700
Effective Interest Rate	3.944%
Senior Notes \| 3.300% Senior Notes Due 2027
Debt Instrument [Line Items]
Stated interest rate (as percent)	3.30%
Long-term debt, principal amount	$ 1,200	1,200
Effective Interest Rate	3.342%
Senior Notes \| 5.100% Senior Notes Due 2035
Debt Instrument [Line Items]
Stated interest rate (as percent)	5.10%
Long-term debt, principal amount	$ 500	500
Effective Interest Rate	5.127%
Senior Notes \| 5.850% Senior Notes Due 2041
Debt Instrument [Line Items]
Stated interest rate (as percent)	5.85%
Long-term debt, principal amount	$ 600	600
Effective Interest Rate	5.879%
Senior Notes \| 4.350% Senior Notes Due 2047
Debt Instrument [Line Items]
Stated interest rate (as percent)	4.35%
Long-term debt, principal amount	$ 1,000	$ 1,000
Effective Interest Rate	4.361%

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Changes in Components of AOCI) (Details) - USD ($)
$ in Millions

3 Months Ended

Jan. 27, 2019

Jan. 28, 2018

Oct. 29, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

$ 6,845

$ 9,630

Adoption of new accounting standards

^[1]

$ 1,553

Other comprehensive income (loss) before reclassifications

(7)

(8)

Amounts reclassified out of AOCI

(5)

(7)

Other comprehensive income (loss), net of tax

(12)

(15)

Ending Balance

8,209

8,817

Unrealized Gain on Investments, Net

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

Adoption of new accounting standards

(17)

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of AOCI

Other comprehensive income (loss), net of tax

Ending Balance

(5)

Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

(9)

(11)

Adoption of new accounting standards

Other comprehensive income (loss) before reclassifications

(12)

(14)

Amounts reclassified out of AOCI

(5)

Other comprehensive income (loss), net of tax

(17)

(19)

Ending Balance

(26)

(30)

Defined and Postretirement Benefit Plans

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

(137)

(120)

Adoption of new accounting standards

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of AOCI

(2)

Other comprehensive income (loss), net of tax

(2)

Ending Balance

(137)

(122)

Cumulative Translation Adjustments

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

Adoption of new accounting standards

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of AOCI

Other comprehensive income (loss), net of tax

Ending Balance

AOCI Attributable to Parent

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

Beginning Balance

(125)

(64)

Adoption of new accounting standards

^[1]

$ (17)

Other comprehensive income (loss), net of tax

(12)

(15)

Ending Balance

$ (154)

$ (79)

[1]

Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and ASU 2016-16 Income Tax (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. See Note 1.

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details Textual)	1 Months Ended	3 Months Ended
	Dec. 31, 2018 $ / shares	Jan. 27, 2019 USD ($) employee_stock_purchase_plan $ / shares shares	Jan. 28, 2018 USD ($) $ / shares shares	Feb. 28, 2018 USD ($)
Equity [Line Items]
Amount authorized by board of directors to repurchase shares \| $				$ 6,000,000,000.0
Remaining authorized repurchase amount \| $		$ 3,600,000,000
Dividends declared per share (in dollars per share) \| $ / shares	$ 0.20	$ 0.20	$ 0.10
Payments of dividends \| $		$ 192,000,000	$ 106,000,000
Employee Stock
Equity [Line Items]
Performance of total shareholder return		100.00%
Total unrecognized compensation expense \| $		$ 514,000,000
Weighted average period for unrecognized compensation expense to be recognized (in years)		2 years 10 months 20 days
Performance Shares
Equity [Line Items]
Additional performance-based awards to be earned upon certain levels of achievement (in shares) \| shares		1,600,000
Award measurement metric relative weight		50.00%
Award measurement period		3 years
Performance Shares \| Min
Equity [Line Items]
Award vesting rights, percentage of target amount		0.00%
Performance Shares \| Maximum
Equity [Line Items]
Award vesting rights, percentage of target amount		200.00%
Employee Stock Incentive Plan \| Employee Stock Option
Equity [Line Items]
Number of shares available for grant (in shares) \| shares		67,000,000
Employee Stock Purchase Plan
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan		2
Employee stock purchase plan purchase period		6 months
Shares issued under employee stock purchase plans (in shares) \| shares		0	0
Employee Stock Purchase Plan \| Employee Stock
Equity [Line Items]
Purchase price of common stock		85.00%
Employee Stock Purchase Plan \| Employee Stock Option
Equity [Line Items]
Number of shares available for grant (in shares) \| shares		17,000,000
United States \| Employee Stock Purchase Plan
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan		1
Non-US \| Employee Stock Purchase Plan
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan		1

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Equity [Abstract]
Common stock repurchases (in shares)	22	15
Cost of stock repurchased	$ 750	$ 782
Average price paid per share (in dollars per share)	$ 34.04	$ 53.41

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Share-Based Compensation) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 65	$ 65
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	22	22
Research, development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	24	24
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	8	8
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 11	$ 11

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units) (Details) - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units shares in Millions	3 Months Ended
	Jan. 27, 2019 $ / shares shares
Restricted stock units, restricted stock, performance shares and performance units
Beginning balance (in shares) \| shares	18
Granted (in shares) \| shares	7
Vested (in shares) \| shares	(7)
Canceled (in shares) \| shares	0
Ending balance (in shares) \| shares	18
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share) \| $ / shares	$ 32.64
Granted (in dollars per share) \| $ / shares	35.39
Vested (in dollars per share) \| $ / shares	27.83
Canceled (in dollars per share) \| $ / shares	32.06
Ending balance (in dollars per share) \| $ / shares	$ 35.46

Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Jan. 27, 2019	Jan. 28, 2018
Income Tax Disclosure [Abstract]
GILTI expense (benefit)	$ 46
Effective income tax rate provision (as percent)	13.20%	86.10%
Provisional tax expense for Tax Cuts and Jobs Act of 2017		$ 1,000

Warranty, Guarantees and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 208	$ 206
Warranties issued	39	45
Change in reserves related to preexisting warranty	1	2
Consumption of reserves	(48)	(43)
Ending balance	$ 200	$ 210

Warranty, Guarantees and Contingencies (Details Textual) $ in Millions	3 Months Ended
	Jan. 27, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Standard product warranty period	12 months
Maximum potential amount of future payments for letters of credit or other guarantee instruments	$ 68
Parent guarantees to banks	$ 150

Industry Segment Operations Narrative (Details Textual)	3 Months Ended
Industry Segment Operations Narrative (Details Textual)	Jan. 27, 2019 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Industry Segment Operations (Net Sales and Operating Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 3,753	$ 4,205
Operating Income (Loss)	908	1,215
Corporate and Other
Net sales and operating income (loss) for each reportable segment
Net Sales	16	29
Operating Income (Loss)	(123)	(154)
Semiconductor Systems \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	2,268	2,852
Operating Income (Loss)	631	1,024
Applied Global Services \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	962	881
Operating Income (Loss)	285	255
Display and Adjacent Markets \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	507	443
Operating Income (Loss)	$ 115	$ 90
Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100.00%	100.00%
Sales Revenue \| Semiconductor Systems
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100.00%	100.00%
Foundry, logic and other \| Sales Revenue \| Semiconductor Systems
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	44.00%	37.00%
Dynamic random-access memory (DRAM) \| Sales Revenue \| Semiconductor Systems
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	21.00%	26.00%
Flash memory \| Sales Revenue \| Semiconductor Systems
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	35.00%	37.00%

Industry Segment Operations (Net Sales by Geographic Region) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Segment Reporting Information [Line Items]
Net sales	$ 3,753	$ 4,205
Asia Pacific
Segment Reporting Information [Line Items]
Net sales	3,007	3,583
China
Segment Reporting Information [Line Items]
Net sales	968	964
Korea
Segment Reporting Information [Line Items]
Net sales	572	1,203
Taiwan
Segment Reporting Information [Line Items]
Net sales	656	741
Japan
Segment Reporting Information [Line Items]
Net sales	651	482
Southeast Asia
Segment Reporting Information [Line Items]
Net sales	160	193
United States
Segment Reporting Information [Line Items]
Net sales	450	370
Europe
Segment Reporting Information [Line Items]
Net sales	$ 296	$ 252
Sales Revenue
Segment Reporting Information [Line Items]
Percentage of net sales	100.00%	100.00%
Sales Revenue \| Asia Pacific
Segment Reporting Information [Line Items]
Percentage of net sales	80.00%	85.00%
Sales Revenue \| China
Segment Reporting Information [Line Items]
Percentage of net sales	26.00%	23.00%
Sales Revenue \| Korea
Segment Reporting Information [Line Items]
Percentage of net sales	15.00%	29.00%
Sales Revenue \| Taiwan
Segment Reporting Information [Line Items]
Percentage of net sales	18.00%	18.00%
Sales Revenue \| Japan
Segment Reporting Information [Line Items]
Percentage of net sales	17.00%	11.00%
Sales Revenue \| Southeast Asia
Segment Reporting Information [Line Items]
Percentage of net sales	4.00%	4.00%
Sales Revenue \| United States
Segment Reporting Information [Line Items]
Percentage of net sales	12.00%	9.00%
Sales Revenue \| Europe
Segment Reporting Information [Line Items]
Percentage of net sales	8.00%	6.00%

Industry Segment Operations (Reconciliations of Total Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	$ 3,753	$ 4,205
Share-based compensation	(65)	(65)
Income before income taxes	908	1,215
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	16	29
Cost of products sold and expenses	(74)	(118)
Share-based compensation	(65)	(65)
Income before income taxes	$ (123)	$ (154)

Industry Segment Operations (Percentage by Customer) (Details) - Sales Revenue	3 Months Ended
	Jan. 27, 2019	Jan. 28, 2018
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	100.00%	100.00%
Customer Concentration Risk \| Toshiba
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	14.00%
Customer Concentration Risk \| SK Hynix Inc.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	13.00%
Customer Concentration Risk \| Intel Corporation
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	13.00%
Customer Concentration Risk \| Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	11.00%

Label

Element

Value

Retained Earnings [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ 1,570,000,000

^[1]

Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ 281,000,000

[1]