0000006951-20-000037 | 10-Q | XBRL Viewer

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Cover Page	9 Months Ended
Cover Page	Jul. 26, 2020 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 26, 2020
Document Transition Report	false
Entity File Number	000-06920
Entity Registrant Name	APPLIED MATERIALS INC /DE
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-1655526
Entity Address, Address Line One	3050 Bowers Avenue
Entity Address, Address Line Two	P.O. Box 58039
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95052-8039
City Area Code	408
Local Phone Number	727-5555
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	AMAT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	913,282,764
Entity Central Index Key	0000006951
Current Fiscal Year End Date	--10-25
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Income Statement [Abstract]
Net sales	$ 4,395	$ 3,562	$ 12,514	$ 10,854
Cost of products sold	2,440	2,005	6,952	6,102
Gross profit	1,955	1,557	5,562	4,752
Operating expenses:
Research, development and engineering	572	515	1,674	1,539
Marketing and selling	130	128	395	392
General and administrative	145	112	411	335
Total operating expenses	847	755	2,480	2,266
Income from operations	1,108	802	3,082	2,486
Interest expense	61	58	181	178
Interest and other income (loss), net	(7)	38	22	121
Income before income taxes	1,040	782	2,923	2,429
Provision for income taxes	199	211	435	421
Net income	$ 841	$ 571	$ 2,488	$ 2,008
Earnings per share:
Basic (in dollars per share)	$ 0.92	$ 0.61	$ 2.71	$ 2.13
Diluted (in dollars per share)	$ 0.91	$ 0.61	$ 2.69	$ 2.11
Weighted average number of shares:
Basic (in shares)	915	929	916	943
Diluted (in shares)	922	937	924	950

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 841	$ 571	$ 2,488	$ 2,008
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments	12	6	13	19
Change in unrealized net loss on derivative instruments	26		(110)
Change in unrealized net loss on derivative instruments		(5)		(13)
Change in cumulative translation adjustments	0	0	0	(1)
Other comprehensive income (loss), net of tax	38	1	(97)	5
Comprehensive income	$ 879	$ 572	$ 2,391	$ 2,013

- Definition

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

+ References

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+ Details

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Current assets:
Cash and cash equivalents	$ 4,350	$ 3,129
Short-term investments	406	489
Accounts receivable, net	2,806	2,533
Inventories	3,952	3,474
Other current assets	734	581
Total current assets	12,248	10,206
Long-term investments	1,538	1,703
Property, plant and equipment, net	1,530	1,529
Goodwill	3,474	3,399
Purchased technology and other intangible assets, net	157	156
Deferred income taxes and other assets	2,224	2,031
Total assets	21,171	19,024
Current liabilities:
Current portion of long-term debt	0	600
Accounts payable and accrued expenses	2,895	2,511
Contract liabilities	1,390	1,336
Total current liabilities	4,285	4,447
Long-term debt, net of current portion	5,447	4,713
Income taxes payable	1,237	1,275
Other liabilities	633	375
Total liabilities	11,602	10,810
Stockholders’ equity:
Common stock	9	9
Additional paid-in capital	7,754	7,595
Retained earnings	26,278	24,386
Treasury stock	(24,195)	(23,596)
Accumulated other comprehensive loss	(277)	(180)
Total stockholders’ equity	9,569	8,214
Total liabilities and stockholders’ equity	$ 21,171	$ 19,024

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

Total

Revision of Prior Period, Adjustment

^[1]

Common Stock

Additional Paid-In Capital

Retained Earnings

Revision of Prior Period, Adjustment

^[1]

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Revision of Prior Period, Adjustment

^[1]

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

967

1,019

Beginning Balance at Oct. 28, 2018

$ 6,845

$ 1,553

$ 10

$ 7,274

$ 20,880

$ 1,570

$ (21,194)

$ (125)

$ (17)

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

Net income

2,008

Other comprehensive income (loss), net of tax

Dividends declared

(578)

Share-based compensation

197

Issuance under stock plans (in shares)

Issuance under stock plans

$ (11)

(11)

Common stock repurchases (in shares)

(50)

Common stock repurchases

$ (1,903)

$ (1)

$ (1,902)

Ending Balance, (in shares) at Jul. 28, 2019

924

1,069

Ending Balance at Jul. 28, 2019

$ 8,116

$ 9

7,460

23,880

$ (23,096)

(137)

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

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201601Member

Beginning Balance, (in shares) at Apr. 28, 2019

936

1,057

Beginning Balance at Apr. 28, 2019

$ 8,201

$ 9

7,396

23,502

$ (22,568)

(138)

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

Net income

571

Other comprehensive income (loss), net of tax

Dividends declared

(193)

Share-based compensation

Issuance under stock plans (in shares)

Issuance under stock plans

$ (3)

(3)

Common stock repurchases (in shares)

(12)

Common stock repurchases

$ (528)

Ending Balance, (in shares) at Jul. 28, 2019

924

1,069

Ending Balance at Jul. 28, 2019

8,116

$ 9

7,460

23,880

$ (23,096)

(137)

Beginning Balance, (in shares) at Oct. 27, 2019

916

1,079

Beginning Balance at Oct. 27, 2019

8,214

$ 9

7,595

24,386

$ (23,596)

(180)

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

Net income

2,488

Other comprehensive income (loss), net of tax

(97)

Dividends declared

(596)

Share-based compensation

234

Issuance under stock plans (in shares)

Issuance under stock plans

$ (75)

(75)

Common stock repurchases (in shares)

(11)

Common stock repurchases

$ (599)

Ending Balance, (in shares) at Jul. 26, 2020

913

1,090

Ending Balance at Jul. 26, 2020

$ 9,569

$ 9

7,754

26,278

$ (24,195)

(277)

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

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201602Member

Beginning Balance, (in shares) at Apr. 26, 2020

917

1,086

Beginning Balance at Apr. 26, 2020

$ 9,024

$ 9

7,687

25,638

$ (23,995)

(315)

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

Net income

841

Other comprehensive income (loss), net of tax

Dividends declared

(201)

Share-based compensation

Issuance under stock plans (in shares)

Issuance under stock plans

$ (3)

(3)

Common stock repurchases (in shares)

(4)

Common stock repurchases

$ (200)

Ending Balance, (in shares) at Jul. 26, 2020

913

1,090

Ending Balance at Jul. 26, 2020

$ 9,569

$ 9

$ 7,754

$ 26,278

$ (24,195)

$ (277)

[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.

Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.22	$ 0.22	$ 0.21	$ 0.22	$ 0.21	$ 0.65	$ 0.62

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019
Cash flows from operating activities:
Net income	$ 2,488	$ 2,008
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	279	271
Share-based compensation	234	197
Deferred income taxes	98	57
Other	55	(19)
Changes in operating assets and liabilities:
Accounts receivable	(271)	(47)
Inventories	(469)	182
Other current and non-current assets	(143)	(93)
Accounts payable and accrued expenses	243	(337)
Contract liabilities	53	229
Income taxes payable	(123)	(52)
Other liabilities	45	25
Cash provided by operating activities	2,489	2,421
Cash flows from investing activities:
Capital expenditures	(260)	(344)
Cash paid for acquisitions, net of cash acquired	(107)	(28)
Proceeds from sales and maturities of investments	1,388	1,385
Purchases of investments	(1,010)	(1,370)
Cash provided by (used in) investing activities	11	(357)
Cash flows from financing activities:
Debt borrowings, net of issuance costs	2,979	0
Debt repayments	(2,882)	0
Proceeds from common stock issuances	91	73
Common stock repurchases	(599)	(1,903)
Tax withholding payments for vested equity awards	(166)	(83)
Payments of dividends to stockholders	(587)	(577)
Cash used in financing activities	(1,164)	(2,490)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents	1,336	(426)
Cash, cash equivalents and restricted cash equivalents — beginning of period	3,129	3,440
Cash, cash equivalents and restricted cash equivalents — end of period	4,465	3,014
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Total cash, cash equivalents, and restricted cash equivalents	4,465	3,014
Supplemental cash flow information:
Cash payments for income taxes	519	453
Cash refunds from income taxes	5	20
Cash payments for interest	$ 151	$ 143

Basis of Presentation	9 Months Ended
Basis of Presentation	Jul. 26, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 27, 2019 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 27, 2019 (2019 Form 10-K). Applied’s results of operations for the three and nine months ended July 26, 2020 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2020 and 2019 contain 52 weeks each, and the first nine months of fiscal 2020 and 2019 each contained 39 weeks. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to 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. As of July 26, 2020, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available. 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 Applied provides 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, typically within 12 months, 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. Recent Accounting Pronouncements Accounting Standards Adopted Leases. In February 2016, the Financial Accounting Standard Board (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. Applied adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition method which required applying the new standard as of the beginning of the period of adoption with no adjustment to comparative prior periods. Applied elected the package of practical expedients permitted under the transition guidance, which allow Applied not to reassess whether a contract contains a lease, initial direct costs and lease classification for leases existing prior to adoption. Applied also elected to combine the lease and non-lease components as a single lease component and not to use hindsight in determining the lease term. Upon adoption, Applied recognized right-of-use assets of $160 million, net of deferred rent of $4 million and lease liabilities of $164 million. 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. Applied adopted this guidance in the first quarter of fiscal 2020 under the modified retrospective approach. The cumulative effect adjustment for the elimination of the ineffectiveness was not material to Applied’s condensed consolidated financial statements. The presentation and disclosure have been amended on a prospective basis, as required by this update. 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. Applied adopted this guidance in the first quarter of fiscal 2020 on a modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2022, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. 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. 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 was 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.

Earnings Per Share

9 Months Ended

Jul. 26, 2020

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						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions, except per share amounts)
Numerator:
Net income	$	841	$	571	$	2,488	$	2,008
Denominator:
Weighted average common shares outstanding	915		929		916		943
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares	7		8		8		7
Denominator for diluted earnings per share	922		937		924		950
Basic earnings per share	$	0.92	$	0.61	$	2.71	$	2.13
Diluted earnings per share	$	0.91	$	0.61	$	2.69	$	2.11
Potentially weighted dilutive securities	—		3		—		3

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

9 Months Ended

Jul. 26, 2020

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:


July 26, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,010	$	—	$	—	$	1,010
Cash equivalents:
Money market funds	3,241		—		—		3,241


Municipal securities	2		—		—		2
Commercial paper, corporate bonds and medium-term notes	97		—		—		97

Total Cash equivalents	3,340		—		—		3,340
Total Cash and Cash equivalents	$	4,350	$	—	$	—	$	4,350
Short-term and long-term investments:
U.S. Treasury and agency securities	$	365	$	5	$	—	$	370

Municipal securities	373		8		—		381
Commercial paper, corporate bonds and medium-term notes	488		9		1		496
Asset-backed and mortgage-backed securities	520		10		—		530
Total fixed income securities	1,746		32		1		1,777
Publicly traded equity securities	11		36		3		44
Equity investments in privately-held companies	110		19		6		123
Total equity investments	121		55		9		167
Total short-term and long-term investments	$	1,867	$	87	$	10	$	1,944

Total Cash, Cash equivalents and Investments	$	6,217	$	87	$	10	$	6,294


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

	(In millions)
Cash	$	1,071	$	—	$	—	$	1,071
Cash equivalents:
Money market funds	1,677		—		—		1,677
U.S. Treasury and agency securities	4		—		—		4


Commercial paper, corporate bonds and medium-term notes	377		—		—		377
Total Cash equivalents	2,058		—		—		2,058
Total Cash and Cash equivalents	$	3,129	$	—	$	—	$	3,129
Short-term and long-term investments:
U.S. Treasury and agency securities	$	336	$	1	$	—	$	337
Non-U.S. government securities*	10		—		—		10
Municipal securities	402		4		—		406
Commercial paper, corporate bonds and medium-term notes	642		5		—		647
Asset-backed and mortgage-backed securities	631		4		—		635
Total fixed income securities	2,021		14		—		2,035
Publicly traded equity securities	8		40		3		45
Equity investments in privately-held companies	105		10		3		112
Total equity investments	113		50		6		157
Total short-term and long-term investments	$	2,134	$	64	$	6	$	2,192

Total Cash, Cash equivalents and Investments	$	5,263	$	64	$	6	$	5,321

_________________________

* Includes agency debt securities guaranteed by Canada.

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments as of July 26, 2020:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	362	$	365
Due after one through five years	864		883

No single maturity date**	641		696
Total	$	1,867	$	1,944

_________________________

** 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 and nine months ended July 26, 2020 and July 28, 2019 gross realized gains and losses on investments were not material.

As of July 26, 2020, and October 27, 2019, 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 July 26, 2020 and July 28, 2019 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities during the three and nine months ended July 26, 2020 or July 28, 2019. Impairment charges on equity investments in privately-held companies during the three and nine months ended July 26, 2020 and July 28, 2019 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations.

The components of gain (loss) on equity investments for the three and nine months ended July 26, 2020 and July 28, 2019 were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019


	(In millions)
Publicly traded equity securities
Unrealized gain	$	6	$	10	$	11	$	23
Unrealized loss	—		(1)		(15)		(4)
Realized gain on sales	1		—		1		2

Equity investments in privately-held companies
Unrealized gain	1		2		10		11
Unrealized loss	(2)		(2)		(5)		(5)
Realized gain on sales or other	7		—		8		5
Realized loss on sales or impairment	—		(1)		(8)		(1)
Total gain (loss) on equity investments, net	$	13	$	8	$	2	$	31

Fair Value Measurements

9 Months Ended

Jul. 26, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Applied’s financial assets are measured and recorded at fair value on a recurring basis, 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 July 26, 2020, 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. 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.

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 and Liabilities Measured at Fair Value on a Recurring Basis

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


	July 26, 2020										October 27, 2019
	Level 1		Level 2		Total		Level 1		Level 2			Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	3,356	$	—	$	3,356	$	1,677	$	—		$	1,677
U.S. Treasury and agency securities	353		17		370		323		18			341
Non-U.S. government securities	—		—		—		—		10			10
Municipal securities	—		383		383		—		406			406
Commercial paper, corporate bonds and medium-term notes	—		593		593		—		1,024			1,024
Asset-backed and mortgage-backed securities	—		530		530		—		635			635
Total available-for-sale debt security investments	$	3,709	$	1,523	$	5,232	$	2,000	$	2,093		$	4,093
Equity investments with readily determinable values

Publicly traded equity securities	$	44	$	—	$	44	$	45	$	—		$	45
Total equity investments with readily determinable values	$	44	$	—	$	44	$	45	$	—		$	45

Total assets	$	3,753	$	1,523	$	5,276	$	2,045	$	2,093		$	4,138

_________________________

* Amount as of July 26, 2020 includes $115 million invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Condensed Balance Sheets.

Applied did not have any financial assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of July 26, 2020 or October 27, 2019.

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. 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. 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 and nine months ended July 26, 2020 and July 28, 2019 were not material.

Other

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of July 26, 2020, the aggregate principal amount of long-term senior notes was $5.5 billion, and the estimated fair value was $6.9 billion. As of October 27, 2019, the aggregate principal amount of long-term senior notes was $4.8 billion, and the estimated fair value was $5.5 billion. The estimated fair value of long-term senior notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 11 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

9 Months Ended

Jul. 26, 2020

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 July 26, 2020 is expected to be reclassified into earnings within 12 months. Prior to adopting the new accounting guidance for hedge accounting, changes in the fair value of currency forward exchange and option contracts due to changes in time value were excluded from the assessment of effectiveness. Subsequent to the adoption of the new accounting guidance, only changes in the fair value of option contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. 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 material for the three and nine months ended July 26, 2020 and July 28, 2019.

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 July 26, 2020 and October 27, 2019 were not material.

Applied is also exposed to interest rate risk associated with its potential future borrowings. During the nine months ended July 26, 2020, Applied entered into a series of interest rate contracts to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt in May 2020.

The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	6	$	(11)	$	10	$	(16)
Interest rate contracts	29		—		(151)		—
Total	$	35	$	(11)	$	(141)	$	(16)

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


	Three Months Ended
	July 26, 2020										July 28, 2019
			Derivatives in Cash Flow Hedging Relationships								Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	4,395	$	(1)	$	1	$	3,562	$	—	$	—
Cost of products sold	$	2,440	3		(1)		$	2,005	(2)		3
Research, development and engineering	$	572	3		—		$	515	—		—

General and administrative	$	145	1		—		$	112	(1)		(1)
Interest Rate Contracts:
Interest expense	$	61	(3)		—		$	58	(1)		—
			$	3	$	—			$	(4)	$	2



	Nine Months Ended
	July 26, 2020										July 28, 2019
			Derivatives in Cash Flow Hedging Relationships								Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	12,514	$	—	$	4	$	10,854	$	—	$	—
Cost of products sold	$	6,952	2		(2)		$	6,102	8		12
Research, development and engineering	$	1,674	3		—		$	1,539	—		—

General and administrative	$	411	1		—		$	335	(4)		(4)
Interest Rate Contracts:
Interest expense	$	181	(4)		—		$	178	(3)		—
			$	2	$	2			$	1	$	8


			Amount of Gain or (Loss) Recognized in Income
					Three Months Ended									Nine Months Ended
		Location of Gain or (Loss) Recognized in Income			July 26, 2020			July 28, 2019			July 26, 2020			July 28, 2019

			(In millions)
Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative		$	—		$	(7)		$	—		$	(11)
Foreign exchange contracts	Interest and other income, net		5			—			1			—
Total return swaps - deferred compensation	Cost of products sold		1			—			—			—
Total return swaps - deferred compensation	Operating expenses		11			—			1			—
Total return swaps - deferred compensation	Interest and other income, net		—			—			(1)			—
Total			$	17		$	(7)		$	1		$	(11)

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 July 26, 2020.

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	9 Months Ended
Accounts Receivable, Net	Jul. 26, 2020
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 $326 million and $690 million of account receivables during the three and nine months ended July 26, 2020, respectively. Applied sold $143 million and $1.3 billion of accounts receivable during the three and nine months July 28, 2019, respectively. Applied did not discount letters of credit issued by customers or discount promissory notes during the three and nine months ended July 26, 2020. Applied discounted letters of credit issued by customers of $40 million during the three months and nine months ended July 28, 2019. 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 $30 million as of July 26, 2020 and October 27, 2019. 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 July 26, 2020, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Contract Balances

9 Months Ended

Jul. 26, 2020

Revenue from Contract with Customer [Abstract]

Contract Balances

Contract assets primarily result from receivables for goods transferred to customers 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 are 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:


	July 26, 2020		October 27, 2019
	(In millions)

Contract assets	$	137	$	108
Contract liabilities	$	1,390	$	1,336

The increase in contract assets during the nine months ended July 26, 2020, was primarily due to goods transferred to customers where payment was conditional upon technical sign off, offset by the reclassification of contract assets to net accounts receivable upon meeting conditions to the right to payment.

During the nine months ended July 26, 2020, Applied recognized revenue of approximately $990 million related to contract liabilities at October 27, 2019. This reduction in contract liabilities was offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of July 26, 2020.

There were no impairment losses recognized on Applied’s accounts receivables and contract assets during both the three and nine months ended July 26, 2020 and July 28, 2019.

As of July 26, 2020, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $949 million, of which approximately 70% is expected to be recognized within 12 months and the remainder is expected to recognized within the following 24 months thereafter.

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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Balance Sheet Detail

9 Months Ended

Jul. 26, 2020

Balance Sheet Detail [Abstract]

Balance Sheet Detail


	July 26, 2020		October 27, 2019

	(In millions)
Inventories
Customer service spares	$	1,217	$	1,245
Raw materials	892		802
Work-in-process	662		575
Finished goods	1,181		852
	$	3,952	$	3,474

Included in finished goods inventory are $6 million as of July 26, 2020, and $13 million as of October 27, 2019, 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 $413 million and $318 million of evaluation inventory as of July 26, 2020 and October 27, 2019, respectively.


	July 26, 2020		October 27, 2019

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	159	$	96
Prepaid expenses and other	575		485
	$	734	$	581


	Useful Life	July 26, 2020		October 27, 2019

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	255	$	254
Buildings and improvements	3-30	1,650		1,590
Demonstration and manufacturing equipment	3-5	1,595		1,505
Furniture, fixtures and other equipment	3-5	633		602
Construction in progress		152		120
Gross property, plant and equipment		4,285		4,071
Accumulated depreciation		(2,755)		(2,542)
		$	1,530	$	1,529


	July 26, 2020		October 27, 2019

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes and income taxes receivable	$	1,699	$	1,766
Operating lease right-of-use assets	254		—
Other assets	271		265
	$	2,224	$	2,031


	July 26, 2020		October 27, 2019

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,118	$	958

Compensation and employee benefits	723		559

Warranty	199		196
Dividends payable	201		192
Income taxes payable	74		160

Other accrued taxes	27		55
Interest payable	53		38

Operating lease liabilities, current	63		—
Other	437		353
	$	2,895	$	2,511


	July 26, 2020		October 27, 2019

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	222	$	212
Operating lease liabilities, non-current	196		—
Other	215		163
	$	633	$	375

Business Combination	9 Months Ended
Business Combination	Jul. 26, 2020
Business Combinations [Abstract]
Business Combination	Business CombinationKokusai Electric CorporationOn June 30, 2019, Applied entered into a Share Purchase Agreement (SPA) to acquire all outstanding shares of Kokusai Electric Corporation (Kokusai Electric) for $2.2 billion in cash. Kokusai Electric is a leading company in providing high-productivity batch processing systems and services for memory, foundry and logic customers. These systems complement Applied’s portfolio of single-wafer processing systems. Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied’s Semiconductor Systems segment and continue to be based in Tokyo, with technology and manufacturing centers in Toyama, Japan and Cheonan, Korea. The transaction is subject to regulatory approvals and other customary closing conditions. The SPA contains certain termination rights, including if the transactions contemplated by the SPA are not consummated on or before June 30, 2020 (Outside Date), which date may be extended by three months on two separate occasions if, on the applicable date, the only conditions to closing relate to required regulatory approvals. Pursuant to the terms of the SPA, on June 30, 2020, the parties mutually extended the Outside Date to September 30, 2020.

Goodwill, Purchased Technology and Other Intangible Assets

9 Months Ended

Jul. 26, 2020

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 July 26, 2020, Applied’s reporting units include Semiconductor Products Group and Imaging and Process Control Group, which combine to form the Semiconductor Systems reporting segment, Applied Global Services, Display and Adjacent Markets and Corporate and Other.

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 July 26, 2020 and October 27, 2019 were as follows:


	July 26, 2020		October 27, 2019


	(In millions)
Semiconductor Systems	$	2,206	$	2,182
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Corporate and Other	51		—
Carrying amount	$	3,474	$	3,399

From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During the nine months of fiscal 2020, goodwill increased by $75 million primarily due to the preliminary purchase accounting for acquisitions completed in the second and third quarters of fiscal 2020, which were not material to Applied’s results of operations.

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


	July 26, 2020		October 27, 2019

	(In millions)
Purchased technology, net	$	78	$	71
Intangible assets - finite-lived, net	79		85

Total	$	157	$	156

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:


	July 26, 2020										October 27, 2019
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,475	$	256	$	1,731	$	1,449	$	252	$	1,701
Applied Global Services	35		44		79		33		44		77
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	6		12		18		—		9		9
Gross carrying amount	$	1,679	$	350	$	2,029	$	1,645	$	343	$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,416)	$	(181)	$	(1,597)	$	(1,400)	$	(168)	$	(1,568)
Applied Global Services	(30)		(44)		(74)		(30)		(44)		(74)
Display and Adjacent Markets	(155)		(37)		(192)		(144)		(37)		(181)
Corporate and Other	—		(9)		(9)		—		(9)		(9)
Accumulated amortization	$	(1,601)	$	(271)	$	(1,872)	$	(1,574)	$	(258)	$	(1,832)
Carrying amount	$	78	$	79	$	157	$	71	$	85	$	156

Details of amortization expense by segment were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Semiconductor Systems	$	10	$	11	$	29	$	32
Applied Global Services	—		—		—		1
Display and Adjacent Markets	4		4		11		10

Total	$	14	$	15	$	40	$	43

Amortization expense was charged to the following categories:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Cost of products sold	$	10	$	9	$	27	$	28
Research, development and engineering	—		1		—		1
Marketing and selling	4		5		13		14

Total	$	14	$	15	$	40	$	43

As of July 26, 2020, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2020 (remaining 3 months)	$	14
2021	45
2022	30
2023	17
2024	16
Thereafter	35
Total	$	157

Borrowing Facilities and Debt

9 Months Ended

Jul. 26, 2020

Debt Disclosure [Abstract]

Borrowing Facilities and Debt

Revolving Credit Facilities

In February 2020, Applied entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which Applied may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2025, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement replaced Applied’s prior $1.5 billion credit agreement that was scheduled to expire in September 2021. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings.

In March 2020, Applied borrowed the full $1.5 billion available under the Revolving Credit Agreement in order to increase its cash position and preserve financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 outbreak. In May 2020, Applied repaid the full $1.5 billion of borrowings under the Revolving Credit Agreement. Applied may at any time and from time to time, borrow, repay and reborrow under the Revolving Credit Agreement during the term of the facility. The maturity date of the Revolving Credit Agreement is February 21, 2025, unless extended, at which time the outstanding amount of loans, if any, must be repaid in full. The interest rate for the March 2020 borrowing under the Revolving Credit Agreement was one-month LIBOR plus a margin of 0.875%, based on Applied’s public debt credit ratings.

No amounts were outstanding under the Revolving Credit Agreement as of July 26, 2020 and October 27, 2019.

In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $75 million in aggregate at any time. 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. As of July 26, 2020 and October 27, 2019, no amounts were outstanding under these revolving credit facilities.

Term Loan and Short-term Commercial Paper

In August 2019, Applied entered into a term loan credit agreement with a group of lenders. Under the agreement, the lenders have committed to make an unsecured term loan to Applied of up to $2.0 billion to finance in part Applied’s planned acquisition of all outstanding shares of Kokusai Electric, to pay related transaction fees and expenses and for general corporate purposes. The commitments of the lenders to make the term loan will terminate if the transactions contemplated by the Share Purchase Agreement are not consummated on or before June 30, 2020 (Outside Date), which date may be extended by three months on two separate occasions if, on the applicable date, the only remaining conditions to closing relate to required regulatory approvals. Pursuant to the terms of the SPA, on June 30, 2020, the parties mutually extended the Outside Date to September 30, 2020. The term loan, if advanced, will bear interest at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings, and must be repaid in full on the third anniversary of the funding date of the term loan. No amounts were outstanding under this term loan credit agreement at both July 26, 2020 and October 27, 2019.

Applied has a short-term commercial paper program under which Applied may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. At July 26, 2020 and October 27, 2019, Applied did not have any commercial paper outstanding.

Senior Unsecured Notes

In May 2020, Applied issued $750 million aggregate principal amount of 1.750% senior unsecured notes due 2030 and $750 million aggregate principal amount of 2.750% senior unsecured notes due 2050, in a registered public offering. In June 2020, Applied used a portion of the net proceeds from the offering to redeem the outstanding $600 million in aggregate principal amount of its 2.625% senior unsecured notes due October 1, 2020 and $750 million in aggregate principal amount of its 4.300% senior unsecured notes due June 15, 2021, at a total aggregate redemption price of $1.4 billion. As a result, Applied recognized a $33 million loss on early extinguishment of these senior unsecured notes.

Debt outstanding as of July 26, 2020 and October 27, 2019 was as follows:


	Principal Amount
	July 26, 2020		October 27, 2019		Effective Interest Rate	Interest Pay Dates

	(In millions)
Current portion of long-term debt:
2.625% Senior Notes Due 2020	$	—	$	600	2.640%	April 1, October 1


Total current portion of long-term debt	—		600
Long-term debt, net of current portion:


4.300% Senior Notes Due 2021	—		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
1.750% Senior Notes Due 2030	750		—		1.792%	June 1, December 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
2.750% Senior Notes Due 2050	750		—		2.773%	June 1, December 1
	5,500		4,750
Total unamortized discount	(15)		(10)
Total unamortized debt issuance costs	(38)		(27)



Total long-term debt, net of current portion	$	5,447	$	4,713

Total debt	$	5,447	$	5,313

Leases

9 Months Ended

Jul. 26, 2020

Leases [Abstract]

Leases

A contract contains a lease when Applied has the right to control the use of an identified asset for a period of time in exchange for consideration. Applied leases certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Applied’s leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, Applied uses the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term.

Applied elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, Applied elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due.

The components of lease expense and supplemental information were as follows:

Three Months Ended

Nine Months Ended

July 26, 2020

(In millions, except percentages)

Operating lease cost

$17

$51

Weighted-average remaining lease term (in years)

5.3

Weighted-average discount rate

1.9%

Supplemental cash flow information related to leases are as follows:


	Nine Months Ended
	July 26, 2020
	(In millions)
Operating cash flows paid for operating leases	$	51
Right-of-use assets obtained in exchange for operating lease liabilities	$	142

As of July 26, 2020, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2020 (remaining 3 months)	$	18
2021	64
2022	51
2023	45
2024	40
Thereafter	55
Total lease payments	$	273
Less imputed interest	(14)
Total	$	259

Prior to the adoption of the new lease standard, future minimum lease payments as of October 27, 2019, as defined under the previous lease accounting guidance, were as follows:


	Lease Payments
Fiscal	(In millions)
2020	$	45
2021	34
2022	24
2023	21
2024	17
Thereafter	30
	$	171

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

9 Months Ended

Jul. 26, 2020

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 (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 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	19		(109)		—		—		(90)
Amounts reclassified out of AOCI	(6)		(1)		—		—		(7)
Other comprehensive income (loss), net of tax	13		(110)		—		—		(97)

Balance as of July 26, 2020	$	24	$	(126)	$	(188)	$	13	$	(277)


	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 28, 2018	$	7	$	(9)	$	(137)	$	14	$	(125)
Adoption of new accounting standards (a)	(17)		—		—		—		(17)

Other comprehensive income (loss) before reclassifications	19		(13)		—		(1)		5

Other comprehensive income (loss), net of tax	19		(13)		—		(1)		5
Balance as of July 28, 2019	$	9	$	(22)	$	(137)	$	13	$	(137)

(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.

The tax effects on the unrealized loss on derivative instruments qualifying as cash flow hedges for the nine months ended July 26, 2020 was $32 million. The tax effects on net income of amounts reclassified from AOCI for the three and nine months ended July 26, 2020 and July 28, 2019 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 July 26, 2020, approximately $1.3 billion remained available for future stock repurchases under this repurchase program.

The following table summarizes Applied’s stock repurchases for the three and nine months ended July 26, 2020 and July 28, 2019:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(in millions, except per share amount)
Shares of common stock repurchased	4		12		11		50
Cost of stock repurchased	$	200	$	528	$	599	$	1,903
Average price paid per share	$	59.41	$	42.07	$	55.74	$	37.88

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 June 2020, March 2020 and December 2019, Applied’s Board of Directors declared quarterly cash dividends, in the amount of $0.22, $0.22 and $0.21 per share, respectively. The dividend declared in June 2020 is payable in September 2020. Dividends paid during the nine months ended July 26, 2020 and July 28, 2019 totaled $587 million and $577 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 and nine months ended July 26, 2020 and July 28, 2019, 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						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Cost of products sold	$	24	$	23	$	79	$	67
Research, development and engineering	27		25		89		74
Marketing and selling	8		8		27		23
General and administrative	11		11		39		33

Total share-based compensation	$	70	$	67	$	234	$	197

Share-based expense in the first nine months of fiscal 2020 increased compared to the same period in the prior year primarily due to expense related to awards with provisions that became effective in the first quarter of fiscal 2020 that allow partial accelerated vesting in the event of a qualifying retirement.

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. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. 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 July 26, 2020, Applied had $455 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 2.6 years. As of July 26, 2020, there were 56 million shares available for grants of share-based awards under the Employee Stock Incentive Plan, and an additional 11 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 nine months ended July 26, 2020 is presented below:


	Shares	Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 27, 2019	18	$	35.78
Granted	6	$	53.51
Vested	(8)	$	30.99
Canceled	(1)	$	42.06
Outstanding as of July 26, 2020	15	$	44.93

As of July 26, 2020, 1.3 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals.

During the first quarter of fiscal 2020, 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 (TSR) 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 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. Applied issued a total of 2 million shares during each of the nine months ended July 26, 2020 and July 28, 2019. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:



	Three and Nine Months Ended
	July 26, 2020	July 28, 2019

Dividend yield	1.40%	2.18%
Expected volatility	37.2%	37.1%
Risk-free interest rate	1.05%	2.51%
Expected life (in years)	0.5	0.5
Weighted average estimated fair value	$15.24	$9.78

Income Taxes	9 Months Ended
Income Taxes	Jul. 26, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Applied’s provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that are not consistent from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. On June 14, 2019, the U.S. government released regulations that significantly affect how the global intangible low-taxed income (GILTI) provision of the Tax Act is interpreted. As a result, Applied reversed a tax benefit of $96 million in the third quarter of fiscal 2019 that had been realized in the first half of fiscal 2019. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The enactment of the CARES Act does not result in any material adjustments to Applied’s provision for income taxes. Applied’s effective tax rates for the third quarter of fiscal 2020 and 2019 were 19.1 percent and 27.0 percent, respectively. The effective tax rate for the third quarter of fiscal 2020 was lower than the same period in the prior fiscal year primarily due to a tax expense taken in the third quarter of fiscal 2019 for regulations issued that significantly affected how the GILTI provisions of the Tax Act were interpreted. This was partially offset by the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense of $44 million in the third quarter of fiscal 2020. Applied’s effective tax rates for the first nine months of fiscal 2020 and 2019 were 14.9 percent and 17.3 percent, respectively. The effective tax rate for the first nine months of fiscal 2020 was lower than the same period in the prior fiscal year primarily due to higher excess tax benefits from share-based compensation. This was partially offset by the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense of $44 million during the first nine months of fiscal 2020. During the next twelve months, it is reasonably possible that unrecognized tax benefits related to certain tax positions taken on previously filed tax returns could be recognized in the amount of approximately $139 million as a result of negotiations with tax authorities and lapses of statutes of limitation.

- Definition

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

+ References + Details

Warranty, Guarantees and Contingencies

9 Months Ended

Jul. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

Warranty, Guarantees and Contingencies

Warranty

Changes in the warranty reserves are presented below:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Beginning balance	$	199	$	195	$	196	$	208
Warranties issued	43		37		119		110
Change in reserves related to preexisting warranty	—		1		2		7
Consumption of reserves	(43)		(42)		(118)		(134)
Ending balance	$	199	$	191	$	199	$	191

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 July 26, 2020, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $148 million. Applied has not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements.

Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of July 26, 2020, Applied has provided parent guarantees to banks for approximately $151 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

9 Months Ended

Jul. 26, 2020

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 July 26, 2020 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						Nine Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)

	(In millions)
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082
July 28, 2019:
Semiconductor Systems	$	2,273	$	613	$	6,725	$	1,823
Applied Global Services	931		259		2,877		827
Display and Adjacent Markets	339		41		1,194		198
Corporate and Other	19		(111)		58		(362)
Total	$	3,562	$	802	$	10,854	$	2,486

Semiconductor Systems and Display and Adjacent Markets revenues are recognized at a point in time. Applied Global Services revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception.

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


	Three Months Ended																Nine Months Ended
	July 26, 2020						July 28, 2019						Change		July 26, 2020						July 28, 2019	Change

	(In millions, except percentages)
China	$	1,470	33	%	$	1,117	31	%	32	%	$	3,880	31	%	$	3,078	28	%	26	%
Korea	1,051		24	%	445		12	%	136	%	2,312		18	%	1,458		13	%	59	%
Taiwan	687		16	%	596		17	%	15	%	3,081		25	%	2,046		19	%	51	%
Japan	472		11	%	556		16	%	(15)	%	1,290		10	%	1,727		16	%	(25)	%
Southeast Asia	120		2	%	134		4	%	(10)	%	250		2	%	413		4	%	(39)	%
Asia Pacific	3,800		86	%	2,848		80	%	33	%	10,813		86	%	8,722		80	%	24	%
United States	399		9	%	552		15	%	(28)	%	1,171		10	%	1,459		14	%	(20)	%
Europe	196		5	%	162		5	%	21	%	530		4	%	673		6	%	(21)	%
Total	$	4,395	100	%	$	3,562	100	%	23	%	$	12,514	100	%	$	10,854	100	%	15	%

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


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
Foundry, logic and other	55	%	49	%	60	%	50	%
Dynamic random-access memory (DRAM)	22	%	27	%	19	%	22	%
Flash memory	23	%	24	%	21	%	28	%

	100	%	100	%	100	%	100	%

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


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Unallocated net sales	$	20	$	19	$	46	$	58
Unallocated cost of products sold and expenses	(156)		(63)		(388)		(223)
Share-based compensation	(70)		(67)		(234)		(197)



Total	$	(206)	$	(111)	$	(576)	$	(362)

The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended July 26, 2020, and sales to these customers included products and services from multiple reportable segments.


	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	21	%
Samsung Electronics Co., Ltd.	19	%

- Definition

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

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+ Details

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Jul. 26, 2020
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 27, 2019 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 27, 2019 (2019 Form 10-K). Applied’s results of operations for the three and nine months ended July 26, 2020 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2020 and 2019 contain 52 weeks each, and the first nine months of fiscal 2020 and 2019 each contained 39 weeks.
Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to 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. As of July 26, 2020, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available.
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 Applied provides 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, typically within 12 months, 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. Contract BalancesContract assets primarily result from receivables for goods transferred to customers 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.
Recent Accounting Pronouncements	Accounting Standards Adopted Leases. In February 2016, the Financial Accounting Standard Board (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. Applied adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition method which required applying the new standard as of the beginning of the period of adoption with no adjustment to comparative prior periods. Applied elected the package of practical expedients permitted under the transition guidance, which allow Applied not to reassess whether a contract contains a lease, initial direct costs and lease classification for leases existing prior to adoption. Applied also elected to combine the lease and non-lease components as a single lease component and not to use hindsight in determining the lease term. Upon adoption, Applied recognized right-of-use assets of $160 million, net of deferred rent of $4 million and lease liabilities of $164 million. 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. Applied adopted this guidance in the first quarter of fiscal 2020 under the modified retrospective approach. The cumulative effect adjustment for the elimination of the ineffectiveness was not material to Applied’s condensed consolidated financial statements. The presentation and disclosure have been amended on a prospective basis, as required by this update. 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. Applied adopted this guidance in the first quarter of fiscal 2020 on a modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2022, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. 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. 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 was 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.
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.
Warranty	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.
Performance Based Awards	During the first quarter of fiscal 2020, 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 (TSR) 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 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.
Fair Value Measurement	Applied’s financial assets are measured and recorded at fair value on a recurring basis, 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 July 26, 2020, 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. 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. 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 and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis	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. 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. 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 and nine months ended July 26, 2020 and July 28, 2019 were not material.
Derivatives	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 July 26, 2020 is expected to be reclassified into earnings within 12 months. Prior to adopting the new accounting guidance for hedge accounting, changes in the fair value of currency forward exchange and option contracts due to changes in time value were excluded from the assessment of effectiveness. Subsequent to the adoption of the new accounting guidance, only changes in the fair value of option contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. 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. 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.
Goodwill	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.
Goodwill and Intangible Assets	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.
Finite-Lived Purchased 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. 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.
Treasury Stock	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.
Share-based Compensation	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. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. 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.Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.

Earnings Per Share (Tables)

9 Months Ended

Jul. 26, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions, except per share amounts)
Numerator:
Net income	$	841	$	571	$	2,488	$	2,008
Denominator:
Weighted average common shares outstanding	915		929		916		943
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares	7		8		8		7
Denominator for diluted earnings per share	922		937		924		950
Basic earnings per share	$	0.92	$	0.61	$	2.71	$	2.13
Diluted earnings per share	$	0.91	$	0.61	$	2.69	$	2.11
Potentially weighted dilutive securities	—		3		—		3

Cash, Cash Equivalents and Investments (Tables)

9 Months Ended

Jul. 26, 2020

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

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


July 26, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,010	$	—	$	—	$	1,010
Cash equivalents:
Money market funds	3,241		—		—		3,241


Municipal securities	2		—		—		2
Commercial paper, corporate bonds and medium-term notes	97		—		—		97

Total Cash equivalents	3,340		—		—		3,340
Total Cash and Cash equivalents	$	4,350	$	—	$	—	$	4,350
Short-term and long-term investments:
U.S. Treasury and agency securities	$	365	$	5	$	—	$	370

Municipal securities	373		8		—		381
Commercial paper, corporate bonds and medium-term notes	488		9		1		496
Asset-backed and mortgage-backed securities	520		10		—		530
Total fixed income securities	1,746		32		1		1,777
Publicly traded equity securities	11		36		3		44
Equity investments in privately-held companies	110		19		6		123
Total equity investments	121		55		9		167
Total short-term and long-term investments	$	1,867	$	87	$	10	$	1,944

Total Cash, Cash equivalents and Investments	$	6,217	$	87	$	10	$	6,294


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

	(In millions)
Cash	$	1,071	$	—	$	—	$	1,071
Cash equivalents:
Money market funds	1,677		—		—		1,677
U.S. Treasury and agency securities	4		—		—		4


Commercial paper, corporate bonds and medium-term notes	377		—		—		377
Total Cash equivalents	2,058		—		—		2,058
Total Cash and Cash equivalents	$	3,129	$	—	$	—	$	3,129
Short-term and long-term investments:
U.S. Treasury and agency securities	$	336	$	1	$	—	$	337
Non-U.S. government securities*	10		—		—		10
Municipal securities	402		4		—		406
Commercial paper, corporate bonds and medium-term notes	642		5		—		647
Asset-backed and mortgage-backed securities	631		4		—		635
Total fixed income securities	2,021		14		—		2,035
Publicly traded equity securities	8		40		3		45
Equity investments in privately-held companies	105		10		3		112
Total equity investments	113		50		6		157
Total short-term and long-term investments	$	2,134	$	64	$	6	$	2,192

Total Cash, Cash equivalents and Investments	$	5,263	$	64	$	6	$	5,321

_________________________

* Includes agency debt securities guaranteed by Canada.

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments as of July 26, 2020:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	362	$	365
Due after one through five years	864		883

No single maturity date**	641		696
Total	$	1,867	$	1,944

_________________________

** 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 (loss) on equity investments for the three and nine months ended July 26, 2020 and July 28, 2019 were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019


	(In millions)
Publicly traded equity securities
Unrealized gain	$	6	$	10	$	11	$	23
Unrealized loss	—		(1)		(15)		(4)
Realized gain on sales	1		—		1		2

Equity investments in privately-held companies
Unrealized gain	1		2		10		11
Unrealized loss	(2)		(2)		(5)		(5)
Realized gain on sales or other	7		—		8		5
Realized loss on sales or impairment	—		(1)		(8)		(1)
Total gain (loss) on equity investments, net	$	13	$	8	$	2	$	31

Fair Value Measurements (Tables)

9 Months Ended

Jul. 26, 2020

Fair Value Disclosures [Abstract]

Financial assets measured at fair value on a recurring basis

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


	July 26, 2020										October 27, 2019
	Level 1		Level 2		Total		Level 1		Level 2			Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	3,356	$	—	$	3,356	$	1,677	$	—		$	1,677
U.S. Treasury and agency securities	353		17		370		323		18			341
Non-U.S. government securities	—		—		—		—		10			10
Municipal securities	—		383		383		—		406			406
Commercial paper, corporate bonds and medium-term notes	—		593		593		—		1,024			1,024
Asset-backed and mortgage-backed securities	—		530		530		—		635			635
Total available-for-sale debt security investments	$	3,709	$	1,523	$	5,232	$	2,000	$	2,093		$	4,093
Equity investments with readily determinable values

Publicly traded equity securities	$	44	$	—	$	44	$	45	$	—		$	45
Total equity investments with readily determinable values	$	44	$	—	$	44	$	45	$	—		$	45

Total assets	$	3,753	$	1,523	$	5,276	$	2,045	$	2,093		$	4,138

_________________________

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Jul. 26, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	6	$	(11)	$	10	$	(16)
Interest rate contracts	29		—		(151)		—
Total	$	35	$	(11)	$	(141)	$	(16)

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
	July 26, 2020										July 28, 2019
			Derivatives in Cash Flow Hedging Relationships								Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	4,395	$	(1)	$	1	$	3,562	$	—	$	—
Cost of products sold	$	2,440	3		(1)		$	2,005	(2)		3
Research, development and engineering	$	572	3		—		$	515	—		—

General and administrative	$	145	1		—		$	112	(1)		(1)
Interest Rate Contracts:
Interest expense	$	61	(3)		—		$	58	(1)		—
			$	3	$	—			$	(4)	$	2



	Nine Months Ended
	July 26, 2020										July 28, 2019
			Derivatives in Cash Flow Hedging Relationships								Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Income		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	12,514	$	—	$	4	$	10,854	$	—	$	—
Cost of products sold	$	6,952	2		(2)		$	6,102	8		12
Research, development and engineering	$	1,674	3		—		$	1,539	—		—

General and administrative	$	411	1		—		$	335	(4)		(4)
Interest Rate Contracts:
Interest expense	$	181	(4)		—		$	178	(3)		—
			$	2	$	2			$	1	$	8

Derivatives not designated as hedging instruments in statement of operations


			Amount of Gain or (Loss) Recognized in Income
					Three Months Ended									Nine Months Ended
		Location of Gain or (Loss) Recognized in Income			July 26, 2020			July 28, 2019			July 26, 2020			July 28, 2019

			(In millions)
Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative		$	—		$	(7)		$	—		$	(11)
Foreign exchange contracts	Interest and other income, net		5			—			1			—
Total return swaps - deferred compensation	Cost of products sold		1			—			—			—
Total return swaps - deferred compensation	Operating expenses		11			—			1			—
Total return swaps - deferred compensation	Interest and other income, net		—			—			(1)			—
Total			$	17		$	(7)		$	1		$	(11)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959

+ Details

Contract Balances (Tables)

9 Months Ended

Jul. 26, 2020

Revenue from Contract with Customer [Abstract]

Schedule of contract balances

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


	July 26, 2020		October 27, 2019
	(In millions)

Contract assets	$	137	$	108
Contract liabilities	$	1,390	$	1,336

Balance Sheet Detail (Tables)

9 Months Ended

Jul. 26, 2020

Balance Sheet Detail [Abstract]

Inventories


	July 26, 2020		October 27, 2019

	(In millions)
Inventories
Customer service spares	$	1,217	$	1,245
Raw materials	892		802
Work-in-process	662		575
Finished goods	1,181		852
	$	3,952	$	3,474

Other current assets


	July 26, 2020		October 27, 2019

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	159	$	96
Prepaid expenses and other	575		485
	$	734	$	581

Property, plant and equipment, net


	Useful Life	July 26, 2020		October 27, 2019

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	255	$	254
Buildings and improvements	3-30	1,650		1,590
Demonstration and manufacturing equipment	3-5	1,595		1,505
Furniture, fixtures and other equipment	3-5	633		602
Construction in progress		152		120
Gross property, plant and equipment		4,285		4,071
Accumulated depreciation		(2,755)		(2,542)
		$	1,530	$	1,529

Deferred Income Taxes and Other Assets


	July 26, 2020		October 27, 2019

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes and income taxes receivable	$	1,699	$	1,766
Operating lease right-of-use assets	254		—
Other assets	271		265
	$	2,224	$	2,031

Accounts Payable and Accrued Expenses


	July 26, 2020		October 27, 2019

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,118	$	958

Compensation and employee benefits	723		559

Warranty	199		196
Dividends payable	201		192
Income taxes payable	74		160

Other accrued taxes	27		55
Interest payable	53		38

Operating lease liabilities, current	63		—
Other	437		353
	$	2,895	$	2,511

Other liabilities


	July 26, 2020		October 27, 2019

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	222	$	212
Operating lease liabilities, non-current	196		—
Other	215		163
	$	633	$	375

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Details of goodwill as of July 26, 2020 and October 27, 2019 were as follows:


	July 26, 2020		October 27, 2019


	(In millions)
Semiconductor Systems	$	2,206	$	2,182
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Corporate and Other	51		—
Carrying amount	$	3,474	$	3,399

Summary of purchased technology and intangible assets

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


	July 26, 2020		October 27, 2019

	(In millions)
Purchased technology, net	$	78	$	71
Intangible assets - finite-lived, net	79		85

Total	$	157	$	156

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:


	July 26, 2020										October 27, 2019
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,475	$	256	$	1,731	$	1,449	$	252	$	1,701
Applied Global Services	35		44		79		33		44		77
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	6		12		18		—		9		9
Gross carrying amount	$	1,679	$	350	$	2,029	$	1,645	$	343	$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,416)	$	(181)	$	(1,597)	$	(1,400)	$	(168)	$	(1,568)
Applied Global Services	(30)		(44)		(74)		(30)		(44)		(74)
Display and Adjacent Markets	(155)		(37)		(192)		(144)		(37)		(181)
Corporate and Other	—		(9)		(9)		—		(9)		(9)
Accumulated amortization	$	(1,601)	$	(271)	$	(1,872)	$	(1,574)	$	(258)	$	(1,832)
Carrying amount	$	78	$	79	$	157	$	71	$	85	$	156

Summary of amortization expense

Details of amortization expense by segment were as follows:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Semiconductor Systems	$	10	$	11	$	29	$	32
Applied Global Services	—		—		—		1
Display and Adjacent Markets	4		4		11		10

Total	$	14	$	15	$	40	$	43

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Cost of products sold	$	10	$	9	$	27	$	28
Research, development and engineering	—		1		—		1
Marketing and selling	4		5		13		14

Total	$	14	$	15	$	40	$	43

Future estimated amortization expense

As of July 26, 2020, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2020 (remaining 3 months)	$	14
2021	45
2022	30
2023	17
2024	16
Thereafter	35
Total	$	157

Borrowing Facilities and Debt (Tables)

9 Months Ended

Jul. 26, 2020

Debt Disclosure [Abstract]

Debt Outstanding

Debt outstanding as of July 26, 2020 and October 27, 2019 was as follows:


	Principal Amount
	July 26, 2020		October 27, 2019		Effective Interest Rate	Interest Pay Dates

	(In millions)
Current portion of long-term debt:
2.625% Senior Notes Due 2020	$	—	$	600	2.640%	April 1, October 1


Total current portion of long-term debt	—		600
Long-term debt, net of current portion:


4.300% Senior Notes Due 2021	—		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
1.750% Senior Notes Due 2030	750		—		1.792%	June 1, December 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
2.750% Senior Notes Due 2050	750		—		2.773%	June 1, December 1
	5,500		4,750
Total unamortized discount	(15)		(10)
Total unamortized debt issuance costs	(38)		(27)



Total long-term debt, net of current portion	$	5,447	$	4,713

Total debt	$	5,447	$	5,313

- 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.

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+ Details

Leases (Tables)

9 Months Ended

Jul. 26, 2020

Leases [Abstract]

Lease, Cost

The components of lease expense and supplemental information were as follows:

Three Months Ended

Nine Months Ended

July 26, 2020

(In millions, except percentages)

Operating lease cost

$17

$51

Weighted-average remaining lease term (in years)

5.3

Weighted-average discount rate

1.9%

Supplemental cash flow information related to leases are as follows:


	Nine Months Ended
	July 26, 2020
	(In millions)
Operating cash flows paid for operating leases	$	51
Right-of-use assets obtained in exchange for operating lease liabilities	$	142

Operating Lease, Liability, Maturity

As of July 26, 2020, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2020 (remaining 3 months)	$	18
2021	64
2022	51
2023	45
2024	40
Thereafter	55
Total lease payments	$	273
Less imputed interest	(14)
Total	$	259

Prior to the adoption of the new lease standard, future minimum lease payments as of October 27, 2019, as defined under the previous lease accounting guidance, were as follows:


	Lease Payments
Fiscal	(In millions)
2020	$	45
2021	34
2022	24
2023	21
2024	17
Thereafter	30
	$	171

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

9 Months Ended

Jul. 26, 2020

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 (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 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	19		(109)		—		—		(90)
Amounts reclassified out of AOCI	(6)		(1)		—		—		(7)
Other comprehensive income (loss), net of tax	13		(110)		—		—		(97)

Balance as of July 26, 2020	$	24	$	(126)	$	(188)	$	13	$	(277)


	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 28, 2018	$	7	$	(9)	$	(137)	$	14	$	(125)
Adoption of new accounting standards (a)	(17)		—		—		—		(17)

Other comprehensive income (loss) before reclassifications	19		(13)		—		(1)		5

Other comprehensive income (loss), net of tax	19		(13)		—		(1)		5
Balance as of July 28, 2019	$	9	$	(22)	$	(137)	$	13	$	(137)

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three and nine months ended July 26, 2020 and July 28, 2019:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(in millions, except per share amount)
Shares of common stock repurchased	4		12		11		50
Cost of stock repurchased	$	200	$	528	$	599	$	1,903
Average price paid per share	$	59.41	$	42.07	$	55.74	$	37.88

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						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Cost of products sold	$	24	$	23	$	79	$	67
Research, development and engineering	27		25		89		74
Marketing and selling	8		8		27		23
General and administrative	11		11		39		33

Total share-based compensation	$	70	$	67	$	234	$	197

Restricted stock units and restricted stock activity


	Shares	Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 27, 2019	18	$	35.78
Granted	6	$	53.51
Vested	(8)	$	30.99
Canceled	(1)	$	42.06
Outstanding as of July 26, 2020	15	$	44.93

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

Underlying assumptions used in the model are outlined in the following table:



	Three and Nine Months Ended
	July 26, 2020	July 28, 2019

Dividend yield	1.40%	2.18%
Expected volatility	37.2%	37.1%
Risk-free interest rate	1.05%	2.51%
Expected life (in years)	0.5	0.5
Weighted average estimated fair value	$15.24	$9.78

Warranty, Guarantees And Contingencies (Tables)

9 Months Ended

Jul. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

Changes in the warranty reserves

Changes in the warranty reserves are presented below:


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Beginning balance	$	199	$	195	$	196	$	208
Warranties issued	43		37		119		110
Change in reserves related to preexisting warranty	—		1		2		7
Consumption of reserves	(43)		(42)		(118)		(134)
Ending balance	$	199	$	191	$	199	$	191

Industry Segment Operations (Tables)

9 Months Ended

Jul. 26, 2020

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						Nine Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)

	(In millions)
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082
July 28, 2019:
Semiconductor Systems	$	2,273	$	613	$	6,725	$	1,823
Applied Global Services	931		259		2,877		827
Display and Adjacent Markets	339		41		1,194		198
Corporate and Other	19		(111)		58		(362)
Total	$	3,562	$	802	$	10,854	$	2,486

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																Nine Months Ended
	July 26, 2020						July 28, 2019						Change		July 26, 2020						July 28, 2019	Change

	(In millions, except percentages)
China	$	1,470	33	%	$	1,117	31	%	32	%	$	3,880	31	%	$	3,078	28	%	26	%
Korea	1,051		24	%	445		12	%	136	%	2,312		18	%	1,458		13	%	59	%
Taiwan	687		16	%	596		17	%	15	%	3,081		25	%	2,046		19	%	51	%
Japan	472		11	%	556		16	%	(15)	%	1,290		10	%	1,727		16	%	(25)	%
Southeast Asia	120		2	%	134		4	%	(10)	%	250		2	%	413		4	%	(39)	%
Asia Pacific	3,800		86	%	2,848		80	%	33	%	10,813		86	%	8,722		80	%	24	%
United States	399		9	%	552		15	%	(28)	%	1,171		10	%	1,459		14	%	(20)	%
Europe	196		5	%	162		5	%	21	%	530		4	%	673		6	%	(21)	%
Total	$	4,395	100	%	$	3,562	100	%	23	%	$	12,514	100	%	$	10,854	100	%	15	%

Disaggregation of Revenue

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


	Three Months Ended						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
Foundry, logic and other	55	%	49	%	60	%	50	%
Dynamic random-access memory (DRAM)	22	%	27	%	19	%	22	%
Flash memory	23	%	24	%	21	%	28	%

	100	%	100	%	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						Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019

	(In millions)
Unallocated net sales	$	20	$	19	$	46	$	58
Unallocated cost of products sold and expenses	(156)		(63)		(388)		(223)
Share-based compensation	(70)		(67)		(234)		(197)



Total	$	(206)	$	(111)	$	(576)	$	(362)

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


	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	21	%
Samsung Electronics Co., Ltd.	19	%

Basis of Presentation (Details) - USD ($) $ in Millions	9 Months Ended
Basis of Presentation (Details) - USD ($) $ in Millions	Jul. 26, 2020	Jul. 28, 2019	Oct. 28, 2019	Oct. 27, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 254			$ 0
Lease liability	$ 259
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201602Member	us-gaap:AccountingStandardsUpdate201601Member
Revision of Prior Period, Accounting Standards Update, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset			$ 160
Deferred rent			4
Lease liability			$ 164

- Definition

Indicates amendment to accounting standards.

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+ Details

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Numerator:
Net income	$ 841	$ 571	$ 2,488	$ 2,008
Denominator:
Weighted average common shares outstanding (in shares)	915	929	916	943
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares)	7	8	8	7
Denominator for diluted earnings per share (in shares)	922	937	924	950
Basic earnings per share (in dollars per share)	$ 0.92	$ 0.61	$ 2.71	$ 2.13
Diluted earnings per share (in dollars per share)	$ 0.91	$ 0.61	$ 2.69	$ 2.11
Potentially dilutive securities (in shares)	0	3	0	3

- Definition

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

+ References

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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.

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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	Jul. 26, 2020	Oct. 27, 2019	Jul. 28, 2019
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,010	$ 1,071
Total Cash equivalents	3,340	2,058
Total Cash and Cash equivalents	4,350	3,129	$ 3,014
Equity investments cost	121	113
Equity investments unrealized gain	55	50
Equity investments unrealized loss	9	6
Equity investments estimated fair value	167	157
Total short-term and long-term investments cost	1,867	2,134
Gross unrealized gains on short-term and long-term investments	87	64
Gross unrealized losses on short-term and long-term investments	10	6
Estimated fair value of short-term and long-term investments	1,944	2,192
Cash, cash equivalents and investments, cost	6,217	5,263
Cash, cash equivalents and investments, gross unrealized gains	87	64
Cash, cash equivalents and investments, gross unrealized losses	10	6
Cash, cash equivalents and investments, estimated fair value	6,294	5,321
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,746	2,021
Gross unrealized gains on fixed income securities	32	14
Gross unrealized losses on fixed income securities	1	0
Estimated fair value of fixed income securities	1,777	2,035
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	365	336
Gross unrealized gains on fixed income securities	5	1
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	370	337
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	373	402
Gross unrealized gains on fixed income securities	8	4
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	381	406
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	488	642
Gross unrealized gains on fixed income securities	9	5
Gross unrealized losses on fixed income securities	1	0
Estimated fair value of fixed income securities	496	647
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	520	631
Gross unrealized gains on fixed income securities	10	4
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	530	635
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	11	8
Equity investments unrealized gain	36	40
Equity investments unrealized loss	3	3
Equity investments estimated fair value	44	45
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	110	105
Equity investments unrealized gain	19	10
Equity investments unrealized loss	6	3
Equity investments estimated fair value	123	112
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	3,241	1,677
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	2
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	$ 97	377
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents		4
CANADA \| 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 - Summary of Contractual Maturity (Details) $ in Millions	Jul. 26, 2020 USD ($)
Contractual maturities of investments
Due in one year or less, Cost	$ 362
Due after one through five years, Cost	864
No single maturity date, Cost	641
Cost of short-term and long-term investments	1,867
Due in one year or less, Estimated Fair Value	365
Due after one through five years, Estimated Fair Value	883
No single maturity date, Estimated Fair Value	696
Estimated fair value of short-term and long-term investments	$ 1,944

Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Gain (Loss) on Securities [Line Items]
Total gain (loss) on equity investments, net	$ 13	$ 8	$ 2	$ 31
Publicly traded equity securities
Gain (Loss) on Securities [Line Items]
Unrealized gain	6	10	11	23
Unrealized loss	0	(1)	(15)	(4)
Realized gain on sales	1	0	1	2
Equity investments in privately-held companies
Gain (Loss) on Securities [Line Items]
Unrealized gain	1	2	10	11
Unrealized loss	(2)	(2)	(5)	(5)
Realized gain on sales	7	0	8	5
Realized loss on sales or impairment	$ 0	$ (1)	$ (8)	$ (1)

Fair Value Measurements - Narrative (Details) - Senior Notes - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt, principal amount	$ 5,500	$ 4,750
Estimated fair value \| Level 2
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt fair value	$ 6,900	$ 5,500

Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019	Jul. 28, 2019
Equity investments with readily determinable values
Equity investments with readily determinable values	$ 167	$ 157
Restricted cash equivalents included in deferred income taxes and other assets	115		$ 0
Money market funds* \| Deferred Income Taxes and Other Assets, Net
Equity investments with readily determinable values
Restricted cash equivalents included in deferred income taxes and other assets	115
U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	370	337
Municipal securities
Assets:
Available-for-sale debt security investments	381	406
Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	496	647
Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	530	635
Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	44	45
Recurring fair value measurements
Assets:
Available-for-sale debt security investments	5,232	4,093
Equity investments with readily determinable values
Equity investments with readily determinable values	44	45
Total assets	5,276	4,138
Recurring fair value measurements \| Money market funds*
Assets:
Available-for-sale debt security investments	3,356	1,677
Recurring fair value measurements \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	370	341
Recurring fair value measurements \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	0	10
Recurring fair value measurements \| Municipal securities
Assets:
Available-for-sale debt security investments	383	406
Recurring fair value measurements \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	593	1,024
Recurring fair value measurements \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	530	635
Recurring fair value measurements \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	44	45
Recurring fair value measurements \| Level 1
Assets:
Available-for-sale debt security investments	3,709	2,000
Equity investments with readily determinable values
Equity investments with readily determinable values	44	45
Total assets	3,753	2,045
Recurring fair value measurements \| Level 1 \| Money market funds*
Assets:
Available-for-sale debt security investments	3,356	1,677
Recurring fair value measurements \| Level 1 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	353	323
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
Equity investments with readily determinable values
Equity investments with readily determinable values	44	45
Recurring fair value measurements \| Level 2
Assets:
Available-for-sale debt security investments	1,523	2,093
Equity investments with readily determinable values
Equity investments with readily determinable values	0	0
Total assets	1,523	2,093
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	17	18
Recurring fair value measurements \| Level 2 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	0	10
Recurring fair value measurements \| Level 2 \| Municipal securities
Assets:
Available-for-sale debt security investments	383	406
Recurring fair value measurements \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	593	1,024
Recurring fair value measurements \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	530	635
Recurring fair value measurements \| Level 2 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	$ 0	$ 0

Derivative Instruments and Hedging Activities - Additional Information (Details)	9 Months Ended
	Jul. 26, 2020
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 - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 35		$ (141)
Effective portion - gain (loss) recognized in AOCI		$ (11)		$ (16)
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	6		10
Effective portion - gain (loss) recognized in AOCI		(11)		(16)
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 29		$ (151)
Effective portion - gain (loss) recognized in AOCI		$ 0		$ 0

Derivative Instruments and Hedging Activities - Derivatives in Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Net Sales	$ 4,395	$ 3,562	$ 12,514	$ 10,854
Cost of products sold	2,440	2,005	6,952	6,102
Research, development and engineering	572	515	1,674	1,539
General and administrative	145	112	411	335
Interest expense	61	58	181	178
Amount of Gain or (Loss) Reclassified from AOCI into Income	3		2
Amount of Gain or (Loss) Reclassified from AOCI into Income		(4)		1
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	0		2
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		2		8
Foreign exchange contracts \| Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	(1)		0
Amount of Gain or (Loss) Reclassified from AOCI into Income		0		0
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	1		4
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		0		0
Foreign exchange contracts \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	3		2
Amount of Gain or (Loss) Reclassified from AOCI into Income		(2)		8
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	(1)		(2)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		3		12
Foreign exchange contracts \| Research, development and engineering
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	3		3
Amount of Gain or (Loss) Reclassified from AOCI into Income		0		0
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	0		0
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		0		0
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	1		1
Amount of Gain or (Loss) Reclassified from AOCI into Income		(1)		(4)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	0		0
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		(1)		(4)
Interest rate contracts \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	(3)		(4)
Amount of Gain or (Loss) Reclassified from AOCI into Income		(1)		(3)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income	$ 0		$ 0
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income		$ 0		$ 0

Derivative Instruments and Hedging Activities - Gain/Loss Recognized in Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 17	$ (7)	$ 1	$ (11)
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	0	(7)	0	(11)
Foreign exchange contracts \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	5	0	1	0
Total return swaps - deferred compensation \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	0	0	(1)	0
Total return swaps - deferred compensation \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	1		0
Total return swaps - deferred compensation \| Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 11	$ 0	$ 1	$ 0

Accounts Receivable, Net (Details) - USD ($)	3 Months Ended		9 Months Ended
Accounts Receivable, Net (Details) - USD ($)	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019	Oct. 27, 2019
Receivables [Abstract]
Factored accounts receivable	$ 326,000,000	$ 143,000,000	$ 690,000,000	$ 1,300,000,000
Discounted letters of credit	0	$ 40,000,000	0	$ 40,000,000
Discounted promissory notes	0		0
Allowance for doubtful accounts	$ 30,000,000		$ 30,000,000		$ 30,000,000

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 137	$ 108
Contract liabilities	$ 1,390	$ 1,336

Contract Balances - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Contract Balances - Narrative (Details) - USD ($)	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized			$ 990,000,000
Impairment loss on accounts receivable	$ 0	$ 0	0	$ 0
Impairment loss on contract assets	0	$ 0	0	$ 0
Long-term Contract with Customer
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 949,000,000		$ 949,000,000

Contract Balances - Expecting Timing of Satisfaction (Details)	Jul. 26, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	12 months
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue expected to be recognized within twelve months	70.00%
Expected timing of satisfaction	24 months

Balance Sheet Detail - Inventories (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Inventories
Customer service spares	$ 1,217	$ 1,245
Raw materials	892	802
Work-in-process	662	575
Finished goods	1,181	852
Inventories	3,952	3,474
Inventory at customer locations included in finished goods	6	13
Inventory, finished goods, evaluation inventory, net of reserves	$ 413	$ 318

Balance Sheet Detail - Other Current Assets (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Other Current Assets [Abstract]
Prepaid income taxes and income taxes receivable	$ 159	$ 96
Prepaid expenses and other	575	485
Other Current Assets	$ 734	$ 581

Balance Sheet Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 26, 2020	Oct. 27, 2019
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 4,285	$ 4,071
Accumulated depreciation	(2,755)	(2,542)
Property, Plant and Equipment, Net	1,530	1,529
Land and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	255	254
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 1,650	1,590
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Buildings and improvements \| Maximum
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	$ 1,595	1,505
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Demonstration and manufacturing equipment \| Maximum
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	$ 633	602
Furniture, fixtures and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Furniture, fixtures and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Construction in progress
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 152	$ 120

Balance Sheet Detail - Deferred Income Taxes and Other Assets (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Balance Sheet Detail [Abstract]
Non-current deferred income taxes and income taxes receivable	$ 1,699	$ 1,766
Operating lease right-of-use assets	254	0
Other assets	271	265
Deferred Income Taxes and Other Assets	$ 2,224	$ 2,031

Balance Sheet Detail - Accounts Payable and Accrued Expense (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Accounts Payable and Accrued Expenses
Accounts payable	$ 1,118	$ 958
Compensation and employee benefits	723	559
Warranty	199	196
Dividends payable	201	192
Income taxes payable	74	160
Other accrued taxes	27	55
Interest payable	53	38
Operating lease liabilities, current	63	0
Other	437	353
Accounts Payable and Accrued Expenses	$ 2,895	$ 2,511

Balance Sheet Detail - Other Liabilities (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Other Liabilities
Defined and postretirement benefit plans	$ 222	$ 212
Operating lease liabilities, non-current	196	0
Other	215	163
Other Liabilities, Noncurrent, Total	$ 633	$ 375

Business Combination (Details) $ in Billions	Jun. 30, 2019 USD ($)
Kokusai Electric
Business Acquisition [Line Items]
Purchase price	$ 2.2

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 26, 2020	Oct. 27, 2019
Goodwill [Line Items]
Goodwill	$ 3,474	$ 3,399
Goodwill, acquired during period	75
Corporate and Other
Goodwill [Line Items]
Goodwill	51	0
Semiconductor Systems
Goodwill [Line Items]
Goodwill	2,206	2,182
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	Jul. 26, 2020	Oct. 27, 2019
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 157	$ 156
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	78	71
Other Intangible Assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 79	$ 85

Goodwill, Purchased Technology and Other Intangible Assets - Additional Information (Details)	9 Months Ended
	Jul. 26, 2020
Minimum
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	Jul. 26, 2020	Oct. 27, 2019
Finite-lived intangible assets
Gross carrying amount:	$ 2,029	$ 1,988
Accumulated amortization:	(1,872)	(1,832)
Total	157	156
Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	18	9
Accumulated amortization:	(9)	(9)
Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,731	1,701
Accumulated amortization:	(1,597)	(1,568)
Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	79	77
Accumulated amortization:	(74)	(74)
Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	201	201
Accumulated amortization:	(192)	(181)
Purchased technology, net
Finite-lived intangible assets
Gross carrying amount:	1,679	1,645
Accumulated amortization:	(1,601)	(1,574)
Total	78	71
Purchased technology, net \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	6	0
Accumulated amortization:	0	0
Purchased technology, net \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,475	1,449
Accumulated amortization:	(1,416)	(1,400)
Purchased technology, net \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	35	33
Accumulated amortization:	(30)	(30)
Purchased technology, net \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	163	163
Accumulated amortization:	(155)	(144)
Other Intangible Assets
Finite-lived intangible assets
Gross carrying amount:	350	343
Accumulated amortization:	(271)	(258)
Total	79	85
Other Intangible Assets \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	12	9
Accumulated amortization:	(9)	(9)
Other Intangible Assets \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	256	252
Accumulated amortization:	(181)	(168)
Other Intangible Assets \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	44	44
Accumulated amortization:	(44)	(44)
Other Intangible Assets \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	38	38
Accumulated amortization:	$ (37)	$ (37)

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14	$ 15	$ 40	$ 43
Semiconductor Systems \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	10	11	29	32
Applied Global Services \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	0	0	1
Display and Adjacent Markets \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 4	$ 4	$ 11	$ 10

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 14	$ 15	$ 40	$ 43
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	10	9	27	28
Research, development and engineering
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	1	0	1
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 4	$ 5	$ 13	$ 14

Goodwill, Purchased Technology and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Future estimated amortization expense
2020 (remaining 3 months)	$ 14
2021	45
2022	30
2023	17
2024	16
Thereafter	35
Total	$ 157	$ 156

Borrowing Facilities and Debt - Additional Information (Details)	1 Months Ended					9 Months Ended
	Jun. 30, 2020 USD ($)	May 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($) extension interest_rate	Jul. 26, 2020 USD ($)	Jan. 26, 2020 USD ($)	Oct. 27, 2019 USD ($)
Debt Instrument [Line Items]
Commercial paper						$ 1,500,000,000
Gain (loss) on extinguishment of debt	$ (33,000,000)
Foreign Line of Credit
Debt Instrument [Line Items]
Available credit agreement						75,000,000
Outstanding credit facilities						0		$ 0
Unsecured Debt \| Revolving Credit
Debt Instrument [Line Items]
Debt instrument, term				5 years
Available credit agreement				$ 1,500,000,000			$ 1,500,000,000
Accordion feature, increase limit				500,000,000
Accordion feature, higher borrowing capacity option				$ 2,000,000,000.0
Proceeds from long-term lines of credit			$ 1,500,000,000
Repayments of long-term debt		$ 1,500,000,000
Outstanding credit facilities						$ 0		0
Unsecured Debt \| Revolving Credit \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate						0.875%
Unsecured Term Loan \| Line of Credit
Debt Instrument [Line Items]
Available credit agreement					$ 2,000,000,000.0
Outstanding credit facilities						$ 0		0
Term extension period					3 months
Number of term extensions \| extension					2
Number of interest rates \| interest_rate					2
Commercial paper
Debt Instrument [Line Items]
Short-term debt						$ 0		$ 0
Senior Notes \| 2.625% Senior Notes Due 2020
Debt Instrument [Line Items]
Repayments of long-term debt	$ 600,000,000
Stated interest rate (as percent)	2.625%
Senior Notes \| 4.300% Senior Notes Due 2021
Debt Instrument [Line Items]
Repayments of long-term debt	$ 750,000,000
Stated interest rate (as percent)	4.30%
Senior Notes \| 4.300% Unsecured Senior Notes Due 2021 And 2.625% Unsecured Senior Notes Due 2020
Debt Instrument [Line Items]
Repayments of long-term debt		$ 1,400,000,000

Borrowing Facilities and Debt - Debt Outstanding (Details) - USD ($) $ in Millions	Jul. 26, 2020	Jun. 30, 2020	Oct. 27, 2019
Debt Instrument [Line Items]
Current portion of long-term debt	$ 0		$ 600
Total long-term senior notes	5,447		4,713
Total debt	5,447		5,313
Senior Notes
Debt Instrument [Line Items]
Long-term debt, principal amount	5,500		4,750
Total unamortized discount	(15)		(10)
Total unamortized debt issuance costs	(38)		(27)
Senior Notes \| 2.625% Senior Notes Due 2020
Debt Instrument [Line Items]
Stated interest rate (as percent)		2.625%
Current portion of long-term debt	0		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	$ 0		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 \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Stated interest rate (as percent)	1.75%
Long-term debt, principal amount	$ 750		0
Effective Interest Rate	1.792%
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%
Senior Notes \| 2.750% Senior Notes Due 2050
Debt Instrument [Line Items]
Stated interest rate (as percent)	2.75%
Long-term debt, principal amount	$ 750		$ 0
Effective Interest Rate	2.773%

Leases - Lease Expense and Supplemental Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Jul. 26, 2020 USD ($)	Jul. 26, 2020 USD ($)
Leases [Abstract]
Operating lease cost	$ 17	$ 51
Weighted-average remaining lease term (in years)	5 years 3 months 18 days	5 years 3 months 18 days
Weighted-average discount rate	1.90%	1.90%
Operating cash flows paid for operating leases		$ 51
Right-of-use assets obtained in exchange for operating lease liabilities		$ 142

Leases - Lease Maturities (Details) - USD ($) $ in Millions	Jul. 26, 2020	Oct. 27, 2019
Operating Leases - Maturity After Adoption
2020 (remaining 3 months)	$ 18
2021	64
2022	51
2023	45
2024	40
Thereafter	55
Total lease payments	273
Less imputed interest	(14)
Total	$ 259
Operating Leases - Maturity Before Adoption
2020		$ 45
2021		34
2022		24
2023		21
2024		17
Thereafter		30
Total operating lease payments due		$ 171

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Changes in Components of AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 9,024	$ 8,201	$ 8,214	$ 6,845
Other comprehensive income (loss) before reclassifications			(90)	5
Amounts reclassified out of AOCI			(7)
Other comprehensive income (loss), net of tax	38	1	(97)	5
Ending Balance	9,569	8,116	9,569	8,116
Unrealized Gain (Loss) on Investments, Net
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			11	7
Other comprehensive income (loss) before reclassifications			19	19
Amounts reclassified out of AOCI			(6)
Other comprehensive income (loss), net of tax			13	19
Ending Balance	24	9	24	9
Unrealized Gain (Loss) on Investments, Net \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				(17)
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(16)
Other comprehensive income (loss) before reclassifications			(109)
Amounts reclassified out of AOCI			(1)
Other comprehensive income (loss), net of tax			(110)
Ending Balance	(126)		(126)
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				(9)
Other comprehensive income (loss) before reclassifications				(13)
Other comprehensive income (loss), net of tax				(13)
Ending Balance		(22)		(22)
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				0
Defined and Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(188)	(137)
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified out of AOCI			0
Other comprehensive income (loss), net of tax			0	0
Ending Balance	(188)	(137)	(188)	(137)
Defined and Postretirement Benefit Plans \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				0
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			13	14
Other comprehensive income (loss) before reclassifications			0	(1)
Amounts reclassified out of AOCI			0
Other comprehensive income (loss), net of tax			0	(1)
Ending Balance	13	13	13	13
Cumulative Translation Adjustments \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				0
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(315)	(138)	(180)	(125)
Other comprehensive income (loss), net of tax	38	1	(97)	5
Ending Balance	$ (277)	$ (137)	$ (277)	(137)
AOCI Attributable to Parent \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance				$ (17)

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2020 $ / shares	Mar. 31, 2020 $ / shares	Dec. 31, 2019 $ / shares	Jul. 26, 2020 USD ($) $ / shares shares	Jul. 28, 2019 $ / shares	Jul. 26, 2020 USD ($) employee_stock_purchase_plan $ / shares shares	Jul. 28, 2019 USD ($) $ / 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				$ 1,300,000,000		$ 1,300,000,000
Dividends declared per share (in dollars per share) \| $ / shares	$ 0.22	$ 0.22	$ 0.21	$ 0.22	$ 0.21	$ 0.65	$ 0.62
Payments of dividends						$ 587,000,000	$ 577,000,000
Tax effects on the unrealized gain (loss) on derivative instruments qualifying as cash flow hedges						$ 32,000,000
Employee Stock
Equity [Line Items]
Performance of total shareholder return						100.00%
Total unrecognized compensation expense				$ 455,000,000		$ 455,000,000
Weighted average period for unrecognized compensation expense to be recognized (in years)						2 years 7 months 6 days
Performance Shares
Equity [Line Items]
Additional performance-based awards to be earned upon certain levels of achievement (in shares) \| shares				1.3		1.3
Award measurement metric relative weight						50.00%
Award measurement period						3 years
Performance Shares \| Minimum
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				56.0		56.0
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
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				11.0		11.0
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		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Equity [Abstract]
Common stock repurchases (in shares)	4	12	11	50
Cost of stock repurchased	$ 200	$ 528	$ 599	$ 1,903
Average price paid per share (in dollars per share)	$ 59.41	$ 42.07	$ 55.74	$ 37.88

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 70	$ 67	$ 234	$ 197
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	24	23	79	67
Research, development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	27	25	89	74
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	8	8	27	23
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 11	$ 11	$ 39	$ 33

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	9 Months Ended
	Jul. 26, 2020 $ / shares shares
Restricted stock units, restricted stock, performance shares and performance units
Beginning balance (in shares) \| shares	18
Granted (in shares) \| shares	6
Vested (in shares) \| shares	(8)
Canceled (in shares) \| shares	(1)
Ending balance (in shares) \| shares	15
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share) \| $ / shares	$ 35.78
Granted (in dollars per share) \| $ / shares	53.51
Vested (in dollars per share) \| $ / shares	30.99
Canceled (in dollars per share) \| $ / shares	42.06
Ending balance (in dollars per share) \| $ / shares	$ 44.93

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Employee Stock Purchase Plan, Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.40%	2.18%	1.40%	2.18%
Expected volatility	37.20%	37.10%	37.20%	37.10%
Risk-free interest rate	1.05%	2.51%	1.05%	2.51%
Expected life (in years)	6 months	6 months	6 months	6 months
Weighted average estimated fair value (in dollars per share)	$ 15.24	$ 9.78	$ 15.24	$ 9.78

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Income Tax Disclosure [Abstract]
Reversal of GILTI benefit		$ 96
Effective income tax rate provision (as percent)	19.10%	27.00%	14.90%	17.30%
Settlement of certain unrecognized tax benefits	$ 44		$ 44
Increase in unrecognized tax benefits is reasonably possible	$ 139		$ 139

Warranty, Guarantees and Contingencies - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 199	$ 195	$ 196	$ 208
Warranties issued	43	37	119	110
Change in reserves related to preexisting warranty	0	1	2	7
Consumption of reserves	(43)	(42)	(118)	(134)
Ending balance	$ 199	$ 191	$ 199	$ 191

Warranty, Guarantees and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Jul. 26, 2020 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	$ 148
Parent guarantees to banks	$ 151

Industry Segment Operations - Additional Information (Details)	9 Months Ended
	Jul. 26, 2020 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		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 4,395	$ 3,562	$ 12,514	$ 10,854
Operating Income (Loss)	$ 1,108	$ 802	$ 3,082	$ 2,486
Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Corporate and Other
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 20	$ 19	$ 46	$ 58
Operating Income (Loss)	$ (206)	$ (111)	$ (576)	$ (362)
Semiconductor Systems \| Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Semiconductor Systems \| Foundry, logic and other \| Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	55.00%	49.00%	60.00%	50.00%
Semiconductor Systems \| Dynamic random-access memory (DRAM) \| Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	22.00%	27.00%	19.00%	22.00%
Semiconductor Systems \| Flash memory \| Sales Revenue
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	23.00%	24.00%	21.00%	28.00%
Semiconductor Systems \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 2,916	$ 2,273	$ 8,297	$ 6,725
Operating Income (Loss)	958	613	2,655	1,823
Applied Global Services \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	1,034	931	3,049	2,877
Operating Income (Loss)	273	259	807	827
Display and Adjacent Markets \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	425	339	1,122	1,194
Operating Income (Loss)	$ 83	$ 41	$ 196	$ 198

Industry Segment Operations - Net Sales by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Segment Reporting Information [Line Items]
Net sales	$ 4,395	$ 3,562	$ 12,514	$ 10,854
Change	23.00%		15.00%
Asia Pacific
Segment Reporting Information [Line Items]
Net sales	$ 3,800	2,848	$ 10,813	8,722
Change	33.00%		24.00%
China
Segment Reporting Information [Line Items]
Net sales	$ 1,470	1,117	$ 3,880	3,078
Change	32.00%		26.00%
Korea
Segment Reporting Information [Line Items]
Net sales	$ 1,051	445	$ 2,312	1,458
Change	136.00%		59.00%
Taiwan
Segment Reporting Information [Line Items]
Net sales	$ 687	596	$ 3,081	2,046
Change	15.00%		51.00%
Japan
Segment Reporting Information [Line Items]
Net sales	$ 472	556	$ 1,290	1,727
Change	(15.00%)		(25.00%)
Southeast Asia
Segment Reporting Information [Line Items]
Net sales	$ 120	134	$ 250	413
Change	(10.00%)		(39.00%)
United States
Segment Reporting Information [Line Items]
Net sales	$ 399	552	$ 1,171	1,459
Change	(28.00%)		(20.00%)
Europe
Segment Reporting Information [Line Items]
Net sales	$ 196	$ 162	$ 530	$ 673
Change	21.00%		(21.00%)
Sales Revenue
Segment Reporting Information [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Sales Revenue \| Asia Pacific
Segment Reporting Information [Line Items]
Percentage of net sales	86.00%	80.00%	86.00%	80.00%
Sales Revenue \| China
Segment Reporting Information [Line Items]
Percentage of net sales	33.00%	31.00%	31.00%	28.00%
Sales Revenue \| Korea
Segment Reporting Information [Line Items]
Percentage of net sales	24.00%	12.00%	18.00%	13.00%
Sales Revenue \| Taiwan
Segment Reporting Information [Line Items]
Percentage of net sales	16.00%	17.00%	25.00%	19.00%
Sales Revenue \| Japan
Segment Reporting Information [Line Items]
Percentage of net sales	11.00%	16.00%	10.00%	16.00%
Sales Revenue \| Southeast Asia
Segment Reporting Information [Line Items]
Percentage of net sales	2.00%	4.00%	2.00%	4.00%
Sales Revenue \| United States
Segment Reporting Information [Line Items]
Percentage of net sales	9.00%	15.00%	10.00%	14.00%
Sales Revenue \| Europe
Segment Reporting Information [Line Items]
Percentage of net sales	5.00%	5.00%	4.00%	6.00%

Industry Segment Operations - Reconciliations of Total Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Unallocated net sales	$ 4,395	$ 3,562	$ 12,514	$ 10,854
Share-based compensation	(70)	(67)	(234)	(197)
Total	1,108	802	3,082	2,486
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Unallocated net sales	20	19	46	58
Unallocated cost of products sold and expenses	(156)	(63)	(388)	(223)
Share-based compensation	(70)	(67)	(234)	(197)
Total	$ (206)	$ (111)	$ (576)	$ (362)

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Industry Segment Operations - Percentage by Customer (Details) - Sales Revenue	3 Months Ended		9 Months Ended
	Jul. 26, 2020	Jul. 28, 2019	Jul. 26, 2020	Jul. 28, 2019
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Customer Concentration Risk \| Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales			21.00%
Customer Concentration Risk \| Samsung Electronics Co., Ltd.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales			19.00%