0000006951-20-000048 | 10-K | XBRL Viewer

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

12 Months Ended

Oct. 25, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Details of goodwill were as follows:


	October 25, 2020			October 27, 2019


	(In millions)
Semiconductor Systems		$	2,208		$	2,182
Applied Global Services		1,018			1,018
Display and Adjacent Markets		199			199
Corporate and Other		41			—
Carrying amount		$	3,466		$	3,399

Summary of purchased technology and intangible assets

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


	October 25, 2020		October 27, 2019

	(In millions)
Purchased technology, net	$	75	$	71
Intangible assets - finite-lived, net	78		85

	$	153	$	156

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:


	October 25, 2020						October 27, 2019
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	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	13		16		29		—		9		9
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,645	$	343	$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,423)	$	(185)	$	(1,608)	$	(1,400)	$	(168)	$	(1,568)
Applied Global Services	(31)		(44)		(75)		(30)		(44)		(74)
Display and Adjacent Markets	(157)		(37)		(194)		(144)		(37)		(181)
Corporate and Other	(1)		(10)		(11)		—		(9)		(9)
Accumulated amortization	$	(1,612)	$	(276)	$	(1,888)	$	(1,574)	$	(258)	$	(1,832)
Carrying amount	$	75	$	78	$	153	$	71	$	85	$	156

Summary of amortization expense

Details of amortization expense for each fiscal year by segment were as follows:


	2020		2019		2018

	(In millions)
Semiconductor Systems	$	40	$	43	$	184
Applied Global Services	1		1		1
Display and Adjacent Markets	13		13		14
Corporate and Other	2		—		—
Total	$	56	$	57	$	199

Schedule of categories amortization expense was charged to

Amortization expense for each fiscal year was charged to the following categories:


	2020		2019		2018

	(In millions)
Cost of products sold	$	37	$	38	$	180
Research, development and engineering	1		1		1
Marketing and selling	18		18		18

Total	$	56	$	57	$	199

Future estimated amortization expense

As of October 25, 2020, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2021	$	49
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$	153

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Income Statement [Abstract]
Net sales	$ 17,202	$ 14,608	$ 16,705
Cost of products sold	9,510	8,222	9,188
Gross profit	7,692	6,386	7,517
Operating expenses:
Research, development and engineering	2,234	2,054	2,022
Marketing and selling	526	521	521
General and administrative	567	461	483
Total operating expenses	3,327	3,036	3,026
Income from operations	4,365	3,350	4,491
Interest expense	240	237	234
Interest and other income, net	41	156	139
Income before income taxes	4,166	3,269	4,396
Provision for income taxes	547	563	1,358
Net income	$ 3,619	$ 2,706	$ 3,038
Earnings per share:
Basic (in dollars per share)	$ 3.95	$ 2.89	$ 3.00
Diluted (in dollars per share)	$ 3.92	$ 2.86	$ 2.96
Weighted average number of shares:
Basic (in shares)	916	937	1,013
Diluted (in shares)	923	945	1,026

Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 25, 2020	Oct. 27, 2019
Stockholders’ equity:
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, shares outstanding	914,000,000	916,000,000
Treasury stock, shares	1,091,000,000	1,079,000,000

Cash, Cash Equivalents and Investments (Contractual Maturities) (Details) $ in Millions	Oct. 25, 2020 USD ($)
Cost
Due in one year or less, cost	$ 367
Due after one through five years, cost	878
Due after five years, cost	0
No single maturity date, cost	602
Cost of fixed income securities	1,847
Estimated Fair Value
Due in one year or less, estimated fair value	369
Due after one through five years, estimated fair value	893
Due after five years, estimated fair value	0
No single maturity date, estimated fair value	663
Estimated fair value of short-term and long-term investments	$ 1,925

Goodwill, Purchased Technology and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Goodwill [Line Items]
Goodwill	$ 3,466	$ 3,399
Corporate and Other
Goodwill [Line Items]
Goodwill	41	0
Semiconductor Systems \| Operating Segments
Goodwill [Line Items]
Goodwill	2,208	2,182
Applied Global Services \| Operating Segments
Goodwill [Line Items]
Goodwill	1,018	1,018
Display and Adjacent Markets \| Operating Segments
Goodwill [Line Items]
Goodwill	$ 199	$ 199

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Cash flows from operating activities:
Net income	$ 3,619	$ 2,706	$ 3,038
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	376	363	457
Deferred income taxes	80	49	71
Other	60	(19)	4
Share-based compensation	307	263	258
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable	(427)	(207)	16
Inventories	(421)	248	(1,014)
Other current and non-current assets	(161)	(86)	(199)
Accounts payable and accrued expenses	327	(247)	170
Contract liabilities	(16)	135	75
Income taxes payable	(10)	44	886
Other liabilities	70	(2)	25
Cash provided by operating activities	3,804	3,247	3,787
Cash flows from investing activities:
Capital expenditures	(422)	(441)	(622)
Cash paid for acquisitions, net of cash acquired	(107)	(28)	(6)
Proceeds from sales and maturities of investments	1,754	1,940	3,276
Purchases of investments	(1,355)	(1,914)	(2,077)
Cash provided by (used in) investing activities	(130)	(443)	571
Cash flows from financing activities:
Debt borrowings, net of issuance costs	2,979	0	0
Debt repayments	(2,882)	0	0
Proceeds from common stock issuances	174	145	124
Common stock repurchases	(649)	(2,403)	(5,283)
Tax withholding payments for vested equity awards	(172)	(86)	(164)
Payments of dividends to stockholders	(787)	(771)	(605)
Cash used in financing activities	(1,337)	(3,115)	(5,928)
Increase (decrease) in cash and cash equivalents	2,337	(311)	(1,570)
Cash and cash equivalents - beginning of year	3,129	3,440	5,010
Cash and cash equivalents - end of year	5,466	3,129	3,440
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Total cash, cash equivalents, and restricted cash equivalents	5,466	3,440	5,010
Supplemental cash flow information:
Cash payments for income taxes	542	522	300
Cash refunds from income taxes	68	22	63
Cash payments for interest	$ 219	$ 219	$ 219

Balance Sheet Detail (Other Current Assets) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Other Current Assets
Prepaid income taxes and income taxes receivable	$ 162	$ 96
Prepaid expenses and other	602	485
Total other current assets	$ 764	$ 581

Goodwill, Purchased Technology and Other Intangible Assets (Future Estimated Amortization Expense) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Future estimated amortization expense
2021	$ 49
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Carrying amount	$ 153	$ 156

Summary of Significant Accounting Policies - (Recent Accounting Pronouncements) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 28, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 252
Operating lease liability	$ 259
Revision of Prior Period, Accounting Standards Update, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 160
Deferred rent		4
Operating lease liability		$ 164

Contract Balances

12 Months Ended

Oct. 25, 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 included in Other Current Assets in the Consolidated 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:


	October 25, 2020		October 27, 2019
	(In millions)

Contract assets	$	148	$	108
Contract liabilities	$	1,321	$	1,336

The increase in contract assets during fiscal 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 fiscal 2020, Applied recognized revenue of approximately $1.1 billion 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 October 25, 2020.

There were no impairment losses recognized on Applied’s accounts receivables and contract assets during fiscal 2020 and 2019.

As of October 25, 2020, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $1.1 billion, of which approximately 70% is expected to be recognized within 12 months and the remainder is expected to be 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

Contract Balances - Narrative (Details) - USD ($)	12 Months Ended
Contract Balances - Narrative (Details) - USD ($)	Oct. 25, 2020	Oct. 27, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 1,100,000,000
Impairment loss on accounts receivable and contract assets	0	$ 0
Long-term Contract with Customer
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,100,000,000
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of performance obligation recognized	70.00%
Performance obligation period	24 months

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Narrative) (Details)	3 Months Ended												12 Months Ended
	Oct. 25, 2020 USD ($) $ / shares shares	Jul. 26, 2020 $ / shares	Apr. 26, 2020 $ / shares	Jan. 26, 2020 $ / shares	Oct. 27, 2019 $ / shares	Jul. 28, 2019 $ / shares	Apr. 28, 2019 $ / shares	Jan. 27, 2019 $ / shares	Oct. 28, 2018 $ / shares	Jul. 29, 2018 $ / shares	Apr. 29, 2018 $ / shares	Jan. 28, 2018 $ / shares	Oct. 25, 2020 USD ($) employee_stock_purchase_plan $ / shares shares	Oct. 27, 2019 USD ($) $ / shares shares	Oct. 28, 2018 USD ($) $ / shares shares	Feb. 28, 2018 USD ($)
Equity [Line Items]
Tax effects on the unrealized gain (loss) on derivative instruments qualifying as cash flow hedges \| $													$ (33,000,000)
Stock Repurchase Program
Authorized amount \| $																$ 6,000,000,000.0
Remaining authorized repurchase amount \| $	$ 1,300,000,000												$ 1,300,000,000
Dividends
Cash dividend declared (usd per share) \| $ / shares	$ 0.22	$ 0.22	$ 0.22	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.20	$ 0.20	$ 0.20	$ 0.20	$ 0.10	$ 0.87	$ 0.83	$ 0.70
Payments of dividends \| $													$ 787,000,000	$ 771,000,000	$ 605,000,000
Employee Stock Purchase Plan
Share-based Compensation
Number of employee stock purchase plans \| employee_stock_purchase_plan													2
Employee Stock Purchase Plans
Purchase period													6 months
Number of shares issued under the ESPP (in shares) \| shares													3,000,000	4,000,000	3,000,000
Employee Stock
Share-based Compensation
Performance of total shareholder return													100.00%
Total unrecognized compensation expense \| $	$ 425,000,000												$ 425,000,000
Weighted average period for unrecognized compensation expense to be recognized													2 years 4 months 24 days
Employee Stock \| Employee Stock Purchase Plan
Employee Stock Purchase Plans
Purchase price of common stock, percent													85.00%
Stock Options
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to expire													7 years
Options granted (in shares) \| shares													0	0	0
Stock Options \| Employee Stock Incentive Plan
Share-based Compensation
Number of shares available for grant \| shares	56,000,000												56,000,000
Stock Options \| Employee Stock Purchase Plan
Share-based Compensation
Number of shares available for grant \| shares	10,000,000												10,000,000
Stock Options \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													3 years
Stock Options \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													4 years
Performance Shares/Performance Units
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award measurement period													3 years
Weight of metric (as a percent)													50.00%
Additional performance-based awards to be earned upon certain levels of achievement (in shares) \| shares	1,200,000												1,200,000
Performance Shares/Performance Units \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													0.00%
Performance Shares/Performance Units \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													200.00%
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													3 years
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													4 years
United States \| Employee Stock Purchase Plan
Share-based Compensation
Number of employee stock purchase plans \| employee_stock_purchase_plan													1
Non-US \| Employee Stock Purchase Plan
Share-based Compensation
Number of employee stock purchase plans \| employee_stock_purchase_plan													1

Employee Benefit Plans (Narrative) (Details) $ in Millions	12 Months Ended
Employee Benefit Plans (Narrative) (Details) $ in Millions	Oct. 25, 2020 USD ($) Plan	Oct. 27, 2019 USD ($)	Oct. 28, 2018 USD ($)
Employee Bonus Plans
Charges to expense under Employee bonus plans	$ 471	$ 292	$ 382
Defined Benefit Pension Plans of Foreign Subsidiaries and Other Post-Retirement Benefits
Company contributions expected for next fiscal year	$ 6
Executive Deferred Compensation Plans
Number of unfunded plans \| Plan	2
Executive Deferred Compensation Plans
Executive Deferred Compensation Plans
Amounts payable under EDCP	$ 151	123
Savings and Retirement Plan
Employee Savings and Retirement Plan
Employer matching contribution, percent of match	100.00%
Employer matching contribution, percent of employees' gross pay	3.00%
Employer matching contribution, percent of match, second tier	50.00%
Percentage vested in matching contribution account	100.00%
401(K) Matching contributions	$ 52	$ 49	$ 45
Savings and Retirement Plan \| Minimum
Employee Savings and Retirement Plan
Employer matching contribution, percent of employees' gross pay, second tier	4.00%
Savings and Retirement Plan \| Maximum
Employee Savings and Retirement Plan
Employer matching contribution, percent of employees' gross pay, second tier	6.00%

Leases - Lease Expense and Supplemental Information (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Leases [Abstract]
Operating lease cost	$ 69
Weighted-average remaining lease term (in years)	5 years 2 months 12 days
Weighted-average discount rate	1.80%
Rent expense		$ 51	$ 50
Operating cash flows paid for operating leases	$ 70
Right-of-use assets obtained in exchange for operating lease liabilities	$ 156

Cash, Cash Equivalents and Investments (Gains and Losses on Investments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Gains and Losses on Investments
Gross realized gains	$ 19	$ 10	$ 29
Gross realized losses	$ 2	$ 2	$ 3

Balance Sheet Detail (Deferred Income Taxes and Other Assets) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Non-current deferred income taxes	$ 1,711	$ 1,766
Operating lease right-of-use assets	252
Income tax receivables and other assets	260	265
Deferred Income Taxes and Other Assets	$ 2,223	$ 2,031

Warranty, Guarantees, Commitments and Contingencies

12 Months Ended

Oct. 25, 2020

Commitments and Contingencies Disclosure [Abstract]

Warranty, Guarantees, Commitments and Contingencies

Warranty

Changes in the warranty reserves during each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	196	$	208	$	206
Provisions for warranty	165		148		175
Changes in reserves related to preexisting warranty	2		7		3
Consumption of reserves	(162)		(167)		(176)
Ending balance	$	201	$	196	$	208

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 October 25, 2020, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $233 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 October 25, 2020, Applied has provided parent guarantees to banks for approximately $153 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.

Summary of Significant Accounting Policies (Property Plant and Equipment Useful Life) (Details)	12 Months Ended
	Oct. 25, 2020
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 \| 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
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
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
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Term of amortization	15 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Term of amortization	5 years

Balance Sheet Detail (Inventory) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Inventories
Customer service spares	$ 1,270	$ 1,245
Raw materials	870	802
Work-in-process	624	575
Finished goods	1,140	852
Total Inventories	3,904	3,474	$ 3,721
Inventory at customer locations included in finished goods	16	13
Evaluation inventory	$ 416	$ 318

Income Taxes

12 Months Ended

Oct. 25, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The components of income before income taxes for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
U.S.	$	92	$	363	$	389
Foreign	4,074		2,906		4,007
	$	4,166	$	3,269	$	4,396

The components of the provision for income taxes for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Current:
U.S.	$	196	$	240	$	1,021
Foreign	263		260		117
State	20		12		22
	479		512		1,160
Deferred:
U.S.	(3)		8		151
Foreign	76		46		57
State	(5)		(3)		(10)
	68		51		198
	$	547	$	563	$	1,358

A reconciliation between the statutory U.S. federal income tax rate and Applied’s actual effective income tax rate for each fiscal year is presented below:


	2020		2019		2018
Tax provision at U.S. statutory rate	21.0	%	21.0	%	23.4	%
Changes in U.S. tax law	—		—		25.3
Effect of foreign operations taxed at various rates	(5.9)		(5.9)		(15.6)
Changes in prior years’ unrecognized tax benefits	0.5		2.6		(0.9)
Resolutions of prior years’ income tax filings	(1.0)		(0.1)		0.2
Research and other tax credits	(1.3)		(1.1)		(0.8)




Other	(0.2)		0.7		(0.7)
	13.1	%	17.2	%	30.9	%

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 Cuts and Jobs Act (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. An accounting policy may be selected to treat GILTI temporary differences in taxable income either as a current-period expense when incurred (period cost method) or factor such amounts into the measurement of deferred taxes (deferred method). Applied has chosen the period cost method.

Before the Tax Act, U.S. income tax had not been provided for certain unrepatriated earnings that were considered indefinitely reinvested. Income tax is now provided for all unrepatriated earnings.

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 rate for fiscal 2020 was lower than fiscal 2019 primarily due to a decline in the tax expense from changes to uncertain tax provisions year-over-year, an increased tax benefit from tax credits, and increased excess stock compensation tax benefits. This benefit was partly offset by an unfavorable settlement of an uncertain tax position in fiscal 2020.

The effective tax rate for fiscal 2019 was lower than fiscal 2018 primarily due to tax expense of $1.1 billion in fiscal 2018 for the transition tax and remeasurement of deferred tax assets as a result of the Tax Act. Excluding the tax expense of $1.1 billion, the effective tax rate for fiscal 2019 was higher than fiscal 2018 primarily due to certain provisions in the Tax Act becoming effective in fiscal 2019, tax expense of $87 million in fiscal 2019 related to changes in uncertain tax positions and the excess tax benefit from share-based compensation in fiscal 2019 being $42 million less than the prior fiscal year.

In the reconciliation between the statutory U.S. federal income tax rate and the effective income tax rate, the effect of foreign operations taxed at various rates represents the difference between an income tax provision at the U.S. federal statutory income tax rate and the recorded income tax provision, with the difference expressed as a percentage of worldwide income before income taxes. This effect is substantially related to the tax effect of pre-tax income in jurisdictions with lower statutory tax rates. The foreign operations with the most significant effective tax rate impact are in Singapore. The statutory tax rate for fiscal 2018 for Singapore is 17%. Applied has been granted conditional reduced tax rates that expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which Applied expects to comply. The tax benefit arising from these tax rates was $215 million for fiscal 2020 or $0.23 per diluted share.

Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. The components of deferred income tax assets and liabilities were as follows:


	October 25, 2020		October 27, 2019

	(In millions)
Deferred tax assets:
Allowance for doubtful accounts	$	4	$	8
Inventory reserves and basis difference	119		117
Installation and warranty reserves	14		11
Intangible assets	1,355		1,472
Accrued liabilities	24		15

Deferred revenue	32		36

Tax credits	326		264
Deferred compensation	130		98
Share-based compensation	30		36

Lease liability	55		—
Other	96		58
Gross deferred tax assets	2,185		2,115
Valuation allowance	(314)		(257)
Total deferred tax assets	1,871		1,858
Deferred tax liabilities:
Fixed assets	(76)		(65)
Right of use assets	(54)		—

Undistributed foreign earnings	(39)		(38)


Total deferred tax liabilities	(169)		(103)
Net deferred tax assets	$	1,702	$	1,755

A valuation allowance is recorded to reflect the estimated amount of net deferred tax assets that may not be realized. Changes in the valuation allowance in each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	257	$	230	$	227
Increases	57		27		8
Decreases	—		—		(5)
Ending balance	$	314	$	257	$	230

At October 25, 2020, Applied has state research and development tax credit carryforwards of $327 million, including $309 million of credits that are carried over until exhausted and $15 million that are carried over for 15 years and begin to expire in fiscal 2031. It is more likely than not that all tax credit carryforwards, net of valuation allowance, will be utilized.

Applied maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored based on the best information available. Gross unrecognized tax benefits are classified as non-current income taxes payable or as a reduction in deferred tax assets. A reconciliation of the beginning and ending balances of gross unrecognized tax benefits in each fiscal year is as follows:


	2020		2019		2018

	(In millions)
Beginning balance of gross unrecognized tax benefits	$	845	$	374	$	391

Settlements with tax authorities	(446)		(1)		(152)
Lapses of statutes of limitation	(3)		(2)		(37)
Increases in tax positions for current year	44		33		91
Increases in tax positions for prior years	91		441		83
Decreases in tax positions for prior years	(35)		—		(2)
Ending balance of gross unrecognized tax benefits	$	496	$	845	$	374

The increases in tax positions for prior years of $441 million for fiscal 2019 include the effect of adoption of Accounting Standard Update 2016-16 Income Tax (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Tax expense for interest and penalties on unrecognized tax benefits for fiscal 2020, 2019 and 2018 was $24 million, $24 million and $12 million, respectively. The income tax liability for interest and penalties for fiscal 2020, 2019 and 2018 was $74 million, $50 million and $26 million, respectively, and was classified as non-current income taxes payable.

Included in the balance of unrecognized tax benefits for fiscal 2020, 2019 and 2018 are $410 million, $758 million, and $294 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate.

In fiscal 2020, Applied settled tax audits in Singapore related to fiscal 2012 through fiscal 2019 for additional tax payments of $72 million and a reduction of future tax deductions of $374 million. The tax expense impact of these settlements was $26 million. In fiscal 2019, Applied paid an immaterial amount as a result of settlements with tax authorities. In fiscal 2018, Applied paid $158 million, including interest and penalties, as a result of a settlement in Israel for fiscal 2011 through fiscal 2015 resulting in the recognition of a tax expense of $6 million.

Applied’s tax returns remain subject to examination by taxing authorities. These include U.S. returns for fiscal 2015 and later years, and foreign tax returns for fiscal 2010 and later years.

The timing of the resolution of income tax examinations, as well as the amounts and timing of various tax payments that may be part of the settlement process, is highly uncertain. This could cause fluctuations in Applied’s financial condition and results of operations. Applied continues to have ongoing negotiations with various taxing authorities throughout the year.

- 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

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Numerator:
Net income	$ 1,131	$ 841	$ 755	$ 892	$ 698	$ 571	$ 666	$ 771	$ 3,619	$ 2,706	$ 3,038
Denominator:
Weighted average common shares outstanding (in shares)									916	937	1,013
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares)									7	8	13
Denominator for diluted earnings per share (in shares)									923	945	1,026
Earnings per share: basic (in dollars per share)									$ 3.95	$ 2.89	$ 3.00
Diluted earnings per share (in dollars per share)	$ 1.23	$ 0.91	$ 0.82	$ 0.96	$ 0.75	$ 0.61	$ 0.70	$ 0.80	$ 3.92	$ 2.86	$ 2.96
Potentially dilutive securities (in shares)									0	3	0

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 12: 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(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120380238&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 14: 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(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

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

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: 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 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: 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 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Cash and Cash Equivalents (Gain (Loss) on Equity Investments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019
Debt and Equity Securities, FV-NI [Line Items]
Total gain (loss) on equity investments, net	$ 9	$ 36
Publicly traded equity securities
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain	14	28
Unrealized loss	(17)	(5)
Realized gain on sales	1	2
Equity investments in privately-held companies
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain	18	13
Unrealized loss	(7)	(6)
Realized gain on sales	8	5
Realized loss on sales or impairment	$ (8)	$ (1)

Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Components of net periodic benefit cost
Service cost	$ 13	$ 11	$ 12
Interest cost	8	10	11
Expected return on plan assets	(22)	(20)	(20)
Amortization of actuarial loss and prior service credit	12	7	3
Net periodic benefit cost	$ 11	$ 8	$ 6
Weighted average assumptions
Discount rate	1.23%	1.98%	2.16%
Expected long-term return on assets	5.10%	5.40%	5.41%
Rate of compensation increase	2.69%	2.74%	2.66%

Fair Value Measurements (Narrative) (Details) - Senior Notes - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt principal amount	$ 5,500	$ 4,750
Estimate of Fair Value Measurement \| Level 2
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt fair value	$ 6,600	$ 5,500

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Oct. 25, 2020
Accounting Policies [Abstract]
Extended product warranty period	2 years

Accounts Receivable, Net (Narrative) (Details) - USD ($)	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018	Oct. 29, 2017
Receivables [Abstract]
Accounts receivable sold	$ 1,200,000,000	$ 1,500,000,000	$ 1,600,000,000
Discount letters of credit issued during period	105,000,000	48,000,000	37,000,000
Discount applied to promissory notes	0	0	0
Allowance for doubtful accounts	$ 30,000,000	$ 30,000,000	$ 33,000,000	$ 34,000,000

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

Industry Segment Operations (Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Segment Reporting Information [Line Items]
Net sales	$ 4,688	$ 4,395	$ 3,957	$ 4,162	$ 3,754	$ 3,562	$ 3,539	$ 3,753	$ 17,202	$ 14,608	$ 16,705
Operating Income (Loss)									4,365	3,350	4,491
Deprecation/Amortization									376	363	457
Capital Expenditures									422	441	622
Accounts Receivable	2,963				2,533				2,963	2,533	2,323
Inventories	3,904				3,474				3,904	3,474	3,721
Operating Segments \| Semiconductor Systems
Segment Reporting Information [Line Items]
Net sales									11,367	9,027	10,577
Operating Income (Loss)									3,714	2,464	3,441
Deprecation/Amortization									219	202	303
Capital Expenditures									226	168	168
Accounts Receivable	2,061				1,543				2,061	1,543	1,597
Inventories	2,139				1,703				2,139	1,703	2,215
Operating Segments \| Applied Global Services
Segment Reporting Information [Line Items]
Net sales									4,155	3,854	3,754
Operating Income (Loss)									1,127	1,101	1,102
Deprecation/Amortization									34	25	21
Capital Expenditures									30	47	33
Accounts Receivable	764				790				764	790	630
Inventories	1,545				1,535				1,545	1,535	1,243
Operating Segments \| Display and Adjacent Markets
Segment Reporting Information [Line Items]
Net sales									1,607	1,651	2,298
Operating Income (Loss)									291	294	574
Deprecation/Amortization									31	22	20
Capital Expenditures									29	43	39
Accounts Receivable	179				246				179	246	142
Inventories	195				214				195	214	246
Corporate and Other
Segment Reporting Information [Line Items]
Net sales									73	76	76
Operating Income (Loss)									(767)	(509)	(626)
Deprecation/Amortization									92	114	113
Capital Expenditures									137	183	382
Accounts Receivable	(41)				(46)				(41)	(46)	(46)
Inventories	$ 25				$ 22				$ 25	$ 22	$ 17

Goodwill, Purchased Technology and Other Intangible Assets

12 Months Ended

Oct. 25, 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 October 25, 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 other reporting units recorded under Corporate and Other.

In the fourth quarter of fiscal 2020, Applied performed a qualitative assessment to test goodwill for all of its reporting units for impairment. Applied determined that it was more likely than not that each of its reporting units’ fair values exceeded their respective carrying values and that it was not necessary to perform the two-step goodwill impairment test for any of its reporting units.

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 were as follows:


	October 25, 2020			October 27, 2019


	(In millions)
Semiconductor Systems		$	2,208		$	2,182
Applied Global Services		1,018			1,018
Display and Adjacent Markets		199			199
Corporate and Other		41			—
Carrying amount		$	3,466		$	3,399

During fiscal 2020, the increase in goodwill was primarily due to the preliminary purchase accounting for acquisitions completed in 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:


	October 25, 2020		October 27, 2019

	(In millions)
Purchased technology, net	$	75	$	71
Intangible assets - finite-lived, net	78		85

	$	153	$	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:


	October 25, 2020						October 27, 2019
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	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	13		16		29		—		9		9
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,645	$	343	$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,423)	$	(185)	$	(1,608)	$	(1,400)	$	(168)	$	(1,568)
Applied Global Services	(31)		(44)		(75)		(30)		(44)		(74)
Display and Adjacent Markets	(157)		(37)		(194)		(144)		(37)		(181)
Corporate and Other	(1)		(10)		(11)		—		(9)		(9)
Accumulated amortization	$	(1,612)	$	(276)	$	(1,888)	$	(1,574)	$	(258)	$	(1,832)
Carrying amount	$	75	$	78	$	153	$	71	$	85	$	156

Details of amortization expense for each fiscal year by segment were as follows:


	2020		2019		2018

	(In millions)
Semiconductor Systems	$	40	$	43	$	184
Applied Global Services	1		1		1
Display and Adjacent Markets	13		13		14
Corporate and Other	2		—		—
Total	$	56	$	57	$	199

Amortization expense for each fiscal year was charged to the following categories:


	2020		2019		2018

	(In millions)
Cost of products sold	$	37	$	38	$	180
Research, development and engineering	1		1		1
Marketing and selling	18		18		18

Total	$	56	$	57	$	199

As of October 25, 2020, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2021	$	49
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$	153

Leases - Lease Maturities (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Operating Leases - Maturity After Adoption
2021	$ 68
2022	55
2023	48
2024	42
2025	33
Thereafter	25
Total lease payments	271
Less imputed interest	(12)
Total	$ 259
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilities
Operating Leases - Maturity Before Adoption
2020		$ 45
2021		34
2022		24
2023		21
2024		17
Thereafter		30
Total		$ 171

Industry Segment Operations (Percentage by Customer) (Details) - Net sales - Customer Concentration Risk	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Samsung Electronics Co., Ltd.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	18.00%		13.00%
Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	18.00%	14.00%
Intel Corporation
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales		12.00%	11.00%

Summary of Significant Accounting Policies (Derivative Financial Instruments) (Details)	12 Months Ended
	Oct. 25, 2020
Accounting Policies [Abstract]
Time period for hedging of foreign currency transactions	24 months

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Effect of Share-based Compensation) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 307	$ 263	$ 258
Income tax benefits recognized	39	37	45
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	103	89	87
Research, development, and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	116	99	96
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	36	31	31
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 52	$ 44	$ 44

Employee Benefit Plans (Level 3 Instruments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Change in plan assets
Beginning fair value of plan assets	$ 409	$ 365	$ 361
Actual return on plan assets:
Currency impact	(19)	5	12
Ending fair value of plan assets	431	409	365
Level 3
Change in plan assets
Beginning fair value of plan assets	36	36
Actual return on plan assets:
Relating to assets still held at reporting date	0	(3)
Purchases, sales, settlements, net	1	4
Currency impact	2	(1)
Ending fair value of plan assets	$ 39	$ 36	$ 36

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Derivative Instruments and Hedging Activities

12 Months Ended

Oct. 25, 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 at October 25, 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 the statement of operations. 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 were not significant for fiscal years 2020, 2019 or 2018.

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

The fair values of foreign exchange derivative instruments at October 25, 2020 and October 27, 2019 were not material.

Applied is also exposed to interest rate risk associated with its potential future borrowings. During fiscal 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:


	Derivatives in Cash Flow Hedging Relationships
	2020		2019		2018
	(In millions)
Foreign exchange contracts	$	3	$	(14)	$	3
Interest rate contracts	(151)		—		—
Total	$	(148)	$	(14)	$	3

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


			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 Consolidated Statement of Operations		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations
	(In millions)
2020
Foreign Exchange Contracts:
Net Sales	$	17,202	$	(2)	$	4
Cost of products sold	$	9,510	6		(3)
Research, development and engineering	$	2,234	4		—

General and administrative	$	567	1		—
Interest Rate Contracts:
Interest expense	$	240	(7)		—
			$	2	$	1

2019
Foreign Exchange Contracts:

Cost of products sold	$	8,222	$	2	$	15


General and administrative	$	461	(3)		(6)
Interest Rate Contracts:
Interest expense	$	237	(3)		—
			$	(4)	$	9

2018
Foreign Exchange Contracts:

Cost of products sold	$	9,188	$	4	$	19


General and administrative	$	483	(3)		(7)
Interest Rate Contracts:
Interest expense	$	234	(3)		—
			$	(2)	$	12


		Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations
	Location of Gain or (Loss) Recognized in Consolidated Statement of Operations	2020		2019		2018

		(In millions)
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	General and administrative	$	—	$	(8)	$	(5)
Foreign exchange contracts	Interest and other income, net	(10)		—		—
Total return swaps - deferred compensation	Cost of products sold	1		—		—
Total return swaps - deferred compensation	Operating expenses	6		—		—
Total return swaps - deferred compensation	Interest and other income, net	(1)		—		—
Total		$	(4)	$	(8)	$	(5)

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 October 25, 2020 and October 27, 2019.

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

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 - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018	Oct. 29, 2017
Shares
Beginning Balance (shares)	18	18	22
Granted (shares)	6	8	6
Vested (shares)	(8)	(7)	(9)
Canceled (shares)	(1)	(1)	(1)
Ending Balance (shares)	15	18	18	22
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest (in shares)	14
Weighted Average Grant Date Fair Value
Beginning of Period (in dollars per share)	$ 35.78	$ 32.64	$ 23.96
Granted (in dollars per share)	53.89	36.00	50.62
Vested (in dollars per share)	31.25	28.41	22.15
Canceled (in dollars per share)	42.61	34.59	30.19
Ending Balance (in dollars per share)	45.36	$ 35.78	$ 32.64	$ 23.96
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest (in dollars per share)	$ 45.51
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term	2 years 2 months 12 days	2 years 1 month 6 days	2 years	2 years 2 months 12 days
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest, Weighted Average Remaining Contractual Term	2 years 1 month 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 914	$ 985	$ 600	$ 1,239
Expected to vest, Aggregate Intrinsic Value	$ 871

Borrowing Facilities and Debt (Debt Outstanding) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Jun. 30, 2020	May 31, 2020	Oct. 27, 2019
Schedule of debt
Current portion of long-term debt	$ 0			$ 600
Long-term debt, net of current portion	5,448			4,713
Total long-term debt, net of current portion	5,448			5,313
Senior Notes
Schedule of debt
Long-term debt principal amount	5,500			4,750
Total unamortized discount	(15)			(10)
Total unamortized debt issuance costs	$ (37)			(27)
Senior Notes \| 2.625% Senior Notes Due 2020
Debt Instrument [Line Items]
Stated interest rate	2.625%	2.625%
Schedule of debt
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	4.30%	4.30%
Schedule of debt
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	3.90%
Schedule of debt
Long-term debt principal amount	$ 700			700
Effective interest rate	3.944%
Senior Notes \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Stated interest rate	1.75%		1.75%
Schedule of debt
Long-term debt principal amount	$ 750		$ 750	0
Effective interest rate	1.792%
Senior Notes \| 3.300% Senior Notes Due 2027
Debt Instrument [Line Items]
Stated interest rate	3.30%
Schedule of debt
Long-term debt principal amount	$ 1,200			1,200
Effective interest rate	3.342%
Senior Notes \| 5.100% Senior Notes Due 2035
Debt Instrument [Line Items]
Stated interest rate	5.10%
Schedule of debt
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	5.85%
Schedule of debt
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	4.35%
Schedule of debt
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	2.75%		2.75%
Schedule of debt
Long-term debt principal amount	$ 750		$ 750	$ 0
Effective interest rate	2.773%

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

12 Months Ended

Oct. 25, 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 accumulated other comprehensive income (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 at October 29, 2017	$	53	$	(11)	$	(120)	$	14	(64)
Adoption of new accounting standards (a)	5		(2)		—		—		3

Other comprehensive income (loss) before reclassifications	(66)		5		(23)		—		(84)
Amounts reclassified out of AOCI	15		(1)		6		—		20
Other comprehensive income (loss), net of tax	(51)		4		(17)		—		(64)
Balance at October 28, 2018	$	7	$	(9)	$	(137)	$	14	$	(125)
Adoption of new accounting standards (b)	(17)		—		—		—		(17)

Other comprehensive income (loss) before reclassifications	22		(10)		(57)		(1)		(46)
Amounts reclassified out of AOCI	(1)		3		6		—		8
Other comprehensive income, net of tax	21		(7)		(51)		(1)		(38)
Balance at October 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	16		(115)		(21)		—		(120)
Amounts reclassified out of AOCI	(7)		(2)		10		—		1
Other comprehensive income (loss), net of tax	9		(117)		(11)		—		(119)
Balance at October 25, 2020	$	20	$	(133)	$	(199)	$	13	$	(299)

(a) - Represents the reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

(b) - 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.

The tax effects on the unrealized loss on derivative instruments qualifying as cash flow hedges for fiscal 2020 was $33 million. The tax effects on net income of amounts reclassified from AOCI for the fiscal years 2020, 2019 and 2018 were not material.

Stock Repurchase Programs

In February 2018, the Board of Directors approved a common stock repurchase program authorizing up to an aggregate of $6.0 billion in repurchases. At October 25, 2020, $1.3 billion remained available for future stock repurchases under this repurchase program.

The following table summarizes Applied’s stock repurchases for each fiscal year:


	2020		2019		2018

	(In millions, except per share amounts)
Shares of common stock repurchased	12		60		102
Cost of stock repurchased	$	649	$	2,403	$	5,283
Average price paid per share	$	56.32	$	39.86	$	51.55

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

During fiscal 2020, Applied's Board of Directors declared one quarterly cash dividend of $0.21 per share and three quarterly cash dividends of $0.22 per share. During fiscal 2019, Applied's Board of Directors declared one quarterly cash dividend of $0.20 per share and three quarterly cash dividends of $0.21 per share. During fiscal 2018, Applied’s Board of Directors declared one quarterly cash dividend of 0.10 per share and three quarterly cash dividends in the amount of $0.20 per share. Dividends paid during fiscal 2020, 2019 and 2018 amounted to $787 million, $771 million and $605 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.

Applied recognized share-based compensation expense related to equity awards and ESPP shares. The effect of share-based compensation on the results of operations and the related tax benefits for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Cost of products sold	$	103	$	89	$	87
Research, development, and engineering	116		99		96
Marketing and selling	36		31		31
General and administrative	52		44		44

Total share-based compensation	$	307	$	263	$	258

Income tax benefits recognized	$	39	$	37	$	45

Share-based expense in fiscal 2020 increased compared to the prior years 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.

At October 25, 2020, Applied had $425 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 2.4 years. At October 25, 2020, there were 56 million shares available for grants of share-based awards under the Employee Stock Incentive Plan, and an additional 10 million shares available for issuance under the ESPP.

Stock Options

Stock options are rights to purchase, at future dates, shares of Applied common stock. The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Options typically vest over three to four years, subject to the grantee’s continued service with Applied through the scheduled vesting date, and expire no later than seven years from the grant date. There were no stock options granted during fiscal 2020, 2019 and 2018. There were no outstanding stock options at the end of fiscal 2020.

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

Restricted stock units are converted into shares of Applied common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of Applied common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance shares and performance units are awards that result in a payment to a grantee, generally in shares of Applied common stock on a one-for-one basis, if performance goals and/or other vesting criteria established by the Human Resources and Compensation Committee of Applied’s Board of Directors are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance shares and performance units typically vest over three to four years and vesting is usually subject to the grantee’s continued service with Applied and, in some cases, achievement of specified performance goals. The compensation expense related to the service-based awards is determined using the fair market value of Applied common stock on the date of the grant, and the compensation expense is recognized over the vesting period.

During fiscal 2020, 2019 and 2018, certain executive officers were granted awards that are subject to the achievement of specified performance goals (performance-based awards).

Performance-based awards granted in fiscal 2018

Certain awards require the achievement of positive adjusted operating profit and vest ratably over three years. Other awards require the achievement of targeted levels of adjusted operating profit margin and wafer fabrication equipment market share, and the number of shares that may vest in full after three years ranges from 0% to 200% of the target amount.

The fair value of these awards is estimated on the date of grant. If the performance goals are achieved as of the end of the performance period, the awards will vest, provided that the grantee remains employed by Applied through each applicable vesting date. If the performance goals are not achieved, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the awards that are probable to vest and is reflected over the service period and reduced for estimated forfeitures.

Performance-based awards granted in fiscal 2019 and 2020

Certain awards are subject to the achievement of targeted levels of adjusted operating margin and 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 number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. 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 based on age and years of service. 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.

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 achieved 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 awards that are 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 TSR 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.

A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans is presented below:


	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value

	(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 29, 2017	22	$	23.96	2.2 years	$	1,239
Granted	6	$	50.62
Vested	(9)	$	22.15
Canceled	(1)	$	30.19
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 28, 2018	18	$	32.64	2.0 years	$	600
Granted	8	$	36.00
Vested	(7)	$	28.41
Canceled	(1)	$	34.59
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2019	18	$	35.78	2.1 years	$	985
Granted	6	$	53.89
Vested	(8)	$	31.25
Canceled	(1)	$	42.61
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2020	15	$	45.36	2.2 years	$	914
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest	14	$	45.51	2.1 years	$	871

At October 25, 2020, 1.2 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals.

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 3 million shares in each of fiscal 2020, 4 million shares in fiscal 2019 and 3 million shares in fiscal 2018, under the ESPP. 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:


	2020		2019		2018
ESPP:
Dividend yield	1.41	%	1.99	%	1.68	%
Expected volatility	48.2	%	35.5	%	34.4	%
Risk-free interest rate	0.58	%	2.21	%	2.09	%
Expected life (in years)	0.5		0.5		0.5
Weighted average estimated fair value	$17.30		$10.61		$12.02

Employee Benefit Plans (Benefit Obligations and Plan Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Change in projected benefit obligation
Beginning projected benefit obligation	$ 617	$ 524	$ 506
Service cost	13	11	12
Interest cost	8	10	11
Plan participants’ contributions	1	1	1
Actuarial (gain) loss	6	84	24
Settlements	0	(1)	(1)
Foreign currency exchange rate changes	33	(5)	(16)
Benefits paid	(10)	(8)	(12)
Plan amendments and other adjustments	6	1	(1)
Ending projected benefit obligation	674	617	524
Ending accumulated benefit obligation	627	578	490
Change in plan assets
Beginning fair value of plan assets	409	365	361
Return on plan assets	0	30	17
Employer contributions	12	27	11
Plan participants’ contributions	1	1	1
Foreign currency exchange rate changes	19	(5)	(12)
Settlements	0	(1)	(1)
Benefits paid	(10)	(8)	(12)
Ending fair value of plan assets	431	409	365
Funded status	(243)	(208)	(159)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	0	5	19
Current liability	(2)	(1)	(1)
Noncurrent liability	(241)	(212)	(177)
Total	(243)	(208)	(159)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	14	12	8
Prior service credit	0	0	(1)
Total	14	12	7
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	242	226	161
Prior service credit	0	0	(2)
Total	242	226	159
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	674	424	365
Fair value of plan assets	431	211	186
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	627	385	331
Fair value of plan assets	$ 431	$ 211	$ 186
Minimum
Range of assumptions to determine benefit obligations
Discount rate	0.40%	0.50%	0.60%
Rate of compensation increase	2.30%	2.30%	2.40%
Maximum
Range of assumptions to determine benefit obligations
Discount rate	6.50%	3.10%	3.10%
Rate of compensation increase	10.00%	3.60%	3.50%

Accounts Receivable, Net

12 Months Ended

Oct. 25, 2020

Receivables [Abstract]

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 $1.2 billion, $1.5 billion and $1.6 billion of accounts receivable during fiscal 2020, 2019 and 2018, respectively. Applied discounted letters of credit issued by customers of $105 million, $48 million and $37 million in fiscal 2020, 2019 and 2018, respectively. There was no discounting of promissory notes in each of fiscal 2020, 2019 and 2018. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Statements of Operations and were not material for all years presented.

Accounts receivable are presented net of allowance for doubtful accounts of $30 million at October 25, 2020 and October 27, 2019. Changes in allowance for doubtful accounts in each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	30	$	33	$	34
Provision	—		—		—
Deductions1	—		(3)		(1)
Ending balance	$	30	$	30	$	33

_____________________________

1 Deductions primarily represent releases of allowance for doubtful accounts credited to expense as a result of an overall lower risk profile of Applied’s customers and cash collections.

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 October 25, 2020, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Goodwill, Purchased Technology and Other Intangible Assets (Finite-lived Intangible Assets) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Amortized intangible assets
Gross carrying amount	$ 2,041	$ 1,988
Accumulated amortization	(1,888)	(1,832)
Carrying amount	153	156
Purchased technology, net
Amortized intangible assets
Gross carrying amount	1,687	1,645
Accumulated amortization	(1,612)	(1,574)
Carrying amount	75	71
Other Intangible Assets
Amortized intangible assets
Gross carrying amount	354	343
Accumulated amortization	(276)	(258)
Carrying amount	78	85
Operating Segments \| Semiconductor Systems
Amortized intangible assets
Gross carrying amount	1,732	1,701
Accumulated amortization	(1,608)	(1,568)
Operating Segments \| Semiconductor Systems \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	1,476	1,449
Accumulated amortization	(1,423)	(1,400)
Operating Segments \| Semiconductor Systems \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	256	252
Accumulated amortization	(185)	(168)
Operating Segments \| Applied Global Services
Amortized intangible assets
Gross carrying amount	79	77
Accumulated amortization	(75)	(74)
Operating Segments \| Applied Global Services \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	35	33
Accumulated amortization	(31)	(30)
Operating Segments \| Applied Global Services \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	44	44
Accumulated amortization	(44)	(44)
Operating Segments \| Display and Adjacent Markets
Amortized intangible assets
Gross carrying amount	201	201
Accumulated amortization	(194)	(181)
Operating Segments \| Display and Adjacent Markets \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	163	163
Accumulated amortization	(157)	(144)
Operating Segments \| Display and Adjacent Markets \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	38	38
Accumulated amortization	(37)	(37)
Corporate and Other
Amortized intangible assets
Gross carrying amount	29	9
Accumulated amortization	(11)	(9)
Corporate and Other \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	13	0
Accumulated amortization	(1)	0
Corporate and Other \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	16	9
Accumulated amortization	$ (10)	$ (9)

Cash, Cash Equivalents and Investments (Narrative) (Details) - USD ($)	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Fixed income securities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Impairments of investments	$ 0	$ 0	$ 0

Employee Benefit Plans (Tables)

12 Months Ended

Oct. 25, 2020

Retirement Benefits [Abstract]

Changes in benefit obligations and plan assets including post-retirement benefits

A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for each fiscal year is presented below:


	2020		2019		2018

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	617	$	524	$	506
Service cost	13		11		12
Interest cost	8		10		11
Plan participants’ contributions	1		1		1
Actuarial loss	6		84		24
Settlements	—		(1)		(1)
Foreign currency exchange rate changes	33		(5)		(16)
Benefits paid	(10)		(8)		(12)
Plan amendments and other adjustments	6		1		(1)
Ending projected benefit obligation	$	674	$	617	$	524
Ending accumulated benefit obligation	$	627	$	578	$	490
Range of assumptions to determine benefit obligations
Discount rate	0.4% - 6.5%		0.5% - 3.1%		0.6% - 3.1%
Rate of compensation increase	2.3% - 10.0%		2.3% - 3.6%		2.4% - 3.5%
Change in plan assets
Beginning fair value of plan assets	$	409	$	365	$	361
Return on plan assets	—		30		17
Employer contributions	12		27		11
Plan participants’ contributions	1		1		1
Foreign currency exchange rate changes	19		(5)		(12)
Settlements	—		(1)		(1)
Benefits paid	(10)		(8)		(12)
Ending fair value of plan assets	$	431	$	409	$	365
Funded status	$	(243)	$	(208)	$	(159)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—	$	5	$	19
Current liability	(2)		(1)		(1)
Noncurrent liability	(241)		(212)		(177)
Total	$	(243)	$	(208)	$	(159)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	14	$	12	$	8
Prior service credit	—		—		(1)
Total	$	14	$	12	$	7
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	242	$	226	$	161
Prior service credit	—		—		(2)
Total	$	242	$	226	$	159
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	674	$	424	$	365
Fair value of plan assets	$	431	$	211	$	186
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	627	$	385	$	331
Fair value of plan assets	$	431	$	211	$	186


	2020		2019
Plan assets — allocation
Equity securities	38	%	36	%
Debt securities	43	%	45	%
Insurance contracts	9	%	9	%
Other investments	10	%	10	%

Summary of ending fair value of the plan assets

The following table presents a summary of the ending fair value of the plan assets:


	October 25, 2020								October 27, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	103	$	—	$	—	$	103	$	90	$	—	$	—	$	90
Debt securities	72		—		—		72		70		—		—		70
Insurance contracts	—		—		39		39		—		—		36		36
Other investments	—		16		—		16		—		14		—		14
Cash	2		—		—		2		—		—		—		—
Total assets at fair value	$	177	$	16	$	39	232		$	160	$	14	$	36	210
Assets measured at net asset value							199								199
Total							$	431							$	409

Activity in Level 3 instruments

The following table presents the activity in Level 3 instruments for each fiscal year:


	2020		2019

	(In millions)
Balance, beginning of year	$	36	$	36
Actual return on plan assets:
Relating to assets still held at reporting date	—		(3)
Purchases, sales, settlements, net	1		4
Currency impact	2		(1)
Balance, end of year	$	39	$	36

Schedule of net benefit costs and weighted average assumptions used

A summary of the components of net periodic benefit costs and the weighted average assumptions used for net periodic benefit cost calculations for each fiscal year is presented below:


	2020			2019			2018

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	13		$	11		$	12
Interest cost	8			10			11
Expected return on plan assets	(22)			(20)			(20)
Amortization of actuarial loss and prior service credit	12			7			3

Net periodic benefit cost	$	11		$	8		$	6
Weighted average assumptions
Discount rate	1.23		%	1.98		%	2.16		%
Expected long-term return on assets	5.10		%	5.40		%	5.41		%
Rate of compensation increase	2.69		%	2.74		%	2.66		%

Schedule of expected benefit payments

Future expected benefit payments for the pension plans and the postretirement plan over the next ten fiscal years are as follows:


	Benefit Payments
	(In millions)
2021	$	14
2022	13
2023	14
2024	14
2025	14
2026-2030	94
	$	163

Industry Segment Operations (Narrative) (Details)	12 Months Ended
Industry Segment Operations (Narrative) (Details)	Oct. 25, 2020 segment
Segment Reporting [Abstract]
Number of reportable segments	3

Balance Sheet Detail (Tables)

12 Months Ended

Oct. 25, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories


	October 25, 2020		October 27, 2019

	(In millions)
Inventories
Customer service spares	$	1,270	$	1,245
Raw materials	870		802
Work-in-process	624		575
Finished goods	1,140		852
	$	3,904	$	3,474

Other current assets


	October 25, 2020		October 27, 2019

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	162	$	96
Prepaid expenses and other	602		485
	$	764	$	581

Property, plant and equipment, net


	Useful Life	October 25, 2020		October 27, 2019

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	256	$	254
Buildings and improvements	3-30	1,655		1,590
Demonstration and manufacturing equipment	3-5	1,586		1,505
Furniture, fixtures and other equipment	3-5	646		602
Construction in progress		237		120
Gross property, plant and equipment		4,380		4,071
Accumulated depreciation		(2,776)		(2,542)
		$	1,604	$	1,529

Deferred income taxes and other assets


	October 25, 2020		October 27, 2019

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,711	$	1,766
Operating lease right-of-use assets	252		—
Income tax receivables and other assets	260		265
	$	2,223	$	2,031

Accounts payable and accrued expenses


	October 25, 2020		October 27, 2019

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,124	$	958

Compensation and employee benefits	800		559

Warranty	201		196
Dividends payable	201		192
Income taxes payable	222		160
Other accrued taxes	33		55
Interest payable	36		38
Operating lease liabilities, current	64		—

Other	457		353
	$	3,138	$	2,511

Other liabilities


	October 25, 2020		October 27, 2019

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	241	$	212
Operating lease liabilities, non-current	195		—
Other	226		163
	$	662	$	375

Industry Segment Operations (Net Sales and Operating Income (Loss)) (Details) - Semiconductor Systems - Net sales	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Segment Reporting Information [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Foundry, logic and other
Segment Reporting Information [Line Items]
Percentage of net sales	59.00%	52.00%	36.00%
Dynamic random-access memory (DRAM)
Segment Reporting Information [Line Items]
Percentage of net sales	20.00%	22.00%	27.00%
Flash memory
Segment Reporting Information [Line Items]
Percentage of net sales	21.00%	26.00%	37.00%

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

3 Months Ended

12 Months Ended

Oct. 25, 2020

Jul. 26, 2020

Apr. 26, 2020

Jan. 26, 2020

Oct. 27, 2019

Jul. 28, 2019

Apr. 28, 2019

Jan. 27, 2019

Oct. 28, 2018

Jul. 29, 2018

Apr. 29, 2018

Jan. 28, 2018

Oct. 25, 2020

Oct. 27, 2019

Oct. 28, 2018

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

Beginning Balance

$ 8,214

$ 6,845

$ 9,630

$ 8,214

$ 6,845

$ 9,630

Other comprehensive income (loss) before reclassifications

(120)

(46)

(84)

Amounts reclassified out of AOCI

Other comprehensive income (loss), net of tax

(119)

(38)

(64)

Ending Balance

$ 10,578

$ 8,214

$ 6,845

$ 10,578

$ 8,214

$ 6,845

Cash dividend declared (usd per share)

$ 0.22

$ 0.21

$ 0.20

$ 0.10

$ 0.87

$ 0.83

$ 0.70

Cumulative Effect, Period of Adoption, Adjustment

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

Beginning Balance

^[1]

$ 1,553

Ending Balance

^[1]

$ 1,553

Unrealized Gain (Loss) on Investments, Net

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

Beginning Balance

$ 11

$ 53

$ 11

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

Other comprehensive income (loss) before reclassifications

(66)

Amounts reclassified out of AOCI

(7)

(1)

Other comprehensive income (loss), net of tax

(51)

Ending Balance

$ 20

$ 11

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)

Ending 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)

(9)

(11)

(16)

(9)

(11)

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

(2)

Other comprehensive income (loss) before reclassifications

(115)

(10)

Amounts reclassified out of AOCI

(2)

(1)

Other comprehensive income (loss), net of tax

(117)

(7)

Ending Balance

(133)

(16)

(9)

(133)

(16)

(9)

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

Ending Balance

Defined and Postretirement Benefit Plans

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

Beginning Balance

(188)

(137)

(120)

(188)

(137)

(120)

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

Other comprehensive income (loss) before reclassifications

(21)

(57)

(23)

Amounts reclassified out of AOCI

Other comprehensive income (loss), net of tax

(11)

(51)

(17)

Ending Balance

(199)

(188)

(137)

(199)

(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

Ending Balance

Cumulative Translation Adjustments

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

Beginning Balance

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

Other comprehensive income (loss) before reclassifications

(1)

Amounts reclassified out of AOCI

Other comprehensive income (loss), net of tax

(1)

Ending Balance

Cumulative Translation Adjustments | Cumulative Effect, Period of Adoption, Adjustment

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

Beginning Balance

Ending Balance

AOCI Attributable to Parent

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

Beginning Balance

$ (180)

(125)

$ (64)

(180)

(125)

(64)

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

^[2]

Other comprehensive income (loss), net of tax

(119)

(38)

(64)

Ending Balance

$ (299)

$ (180)

(125)

$ (299)

(180)

(125)

AOCI Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment

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

Beginning Balance

^[1]

$ (17)

Ending Balance

^[1]

$ (17)

[1]	Represents the 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.
[2]	Represents the reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

Warranty, Guarantees, Commitments and Contingencies (Warranty Reserves) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Changes in the warranty reserves
Beginning balance	$ 196	$ 208	$ 206
Provisions for warranty	165	148	175
Changes in reserves related to preexisting warranty	2	7	3
Consumption of reserves	(162)	(167)	(176)
Ending balance	$ 201	$ 196	$ 208

Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Changes in allowance for doubtful accounts
Increases	$ 0	$ 0	$ 0
Decreases	0	(3)	(1)
Valuation Allowance of Deferred Tax Assets
Changes in allowance for doubtful accounts
Beginning balance	257	230	227
Increases	57	27	8
Decreases	0	0	(5)
Ending balance	$ 314	$ 257	$ 230

Warranty, Guarantees, Commitments and Contingencies (Tables)

12 Months Ended

Oct. 25, 2020

Commitments and Contingencies Disclosure [Abstract]

Changes in the warranty reserves

Changes in the warranty reserves during each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	196	$	208	$	206
Provisions for warranty	165		148		175
Changes in reserves related to preexisting warranty	2		7		3
Consumption of reserves	(162)		(167)		(176)
Ending balance	$	201	$	196	$	208

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Oct. 25, 2020	Dec. 04, 2020	Apr. 26, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Oct. 25, 2020
Current Fiscal Year End Date	--10-25
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 47,228,292,437
Entity Common Stock, Shares Outstanding		914,344,189
Documents Incorporated by Reference	Portions of Part III will be provided in accordance with Instruction G(3) to Form 10-K no later than February 22, 2021.
Entity Central Index Key	0000006951
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Oct. 25, 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:


	Derivatives in Cash Flow Hedging Relationships
	2020		2019		2018
	(In millions)
Foreign exchange contracts	$	3	$	(14)	$	3
Interest rate contracts	(151)		—		—
Total	$	(148)	$	(14)	$	3

Effect of derivative instruments on the consolidated statement of operations

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


			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 Consolidated Statement of Operations		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations
	(In millions)
2020
Foreign Exchange Contracts:
Net Sales	$	17,202	$	(2)	$	4
Cost of products sold	$	9,510	6		(3)
Research, development and engineering	$	2,234	4		—

General and administrative	$	567	1		—
Interest Rate Contracts:
Interest expense	$	240	(7)		—
			$	2	$	1

2019
Foreign Exchange Contracts:

Cost of products sold	$	8,222	$	2	$	15


General and administrative	$	461	(3)		(6)
Interest Rate Contracts:
Interest expense	$	237	(3)		—
			$	(4)	$	9

2018
Foreign Exchange Contracts:

Cost of products sold	$	9,188	$	4	$	19


General and administrative	$	483	(3)		(7)
Interest Rate Contracts:
Interest expense	$	234	(3)		—
			$	(2)	$	12

Derivatives not designated as hedging instruments in statement of operations


		Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations
	Location of Gain or (Loss) Recognized in Consolidated Statement of Operations	2020		2019		2018

		(In millions)
Derivatives Not Designated as Hedging Instruments
Foreign exchange contracts	General and administrative	$	—	$	(8)	$	(5)
Foreign exchange contracts	Interest and other income, net	(10)		—		—
Total return swaps - deferred compensation	Cost of products sold	1		—		—
Total return swaps - deferred compensation	Operating expenses	6		—		—
Total return swaps - deferred compensation	Interest and other income, net	(1)		—		—
Total		$	(4)	$	(8)	$	(5)

- 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
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959

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
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-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
-Paragraph 8
-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
-SubTopic 10
-Section 50
-Paragraph 5
-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
-SubTopic 10
-Section 50
-Paragraph 4C
-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

Leases

12 Months Ended

Oct. 25, 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:


	2020
	(In millions, except percentage)
Operating lease cost	$	69
Weighted-average remaining lease term (in years)	5.2
Weighted-average discount rate	1.8		%

Total rent expense for fiscal 2019 and 2018, was $51 million and $50 million, respectively.

Supplemental cash flow information related to leases are as follows:


	2020
	(In millions)
Operating cash flows paid for operating leases	$	70
Right-of-use assets obtained in exchange for operating lease liabilities	$	156

As of October 25, 2020, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2021	$	68
2022	55
2023	48
2024	42
2025	33
Thereafter	25
Total lease payments	$	271
Less imputed interest	(12)
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
Total	$	171

Goodwill, Purchased Technology and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 56	$ 57	$ 199
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	37	38	180
Research, development, and engineering
Finite-Lived Intangible Assets [Line Items]
Amortization expense	1	1	1
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	18	18	18
Operating Segments \| Semiconductor Systems
Finite-Lived Intangible Assets [Line Items]
Amortization expense	40	43	184
Operating Segments \| Applied Global Services
Finite-Lived Intangible Assets [Line Items]
Amortization expense	1	1	1
Operating Segments \| Display and Adjacent Markets
Finite-Lived Intangible Assets [Line Items]
Amortization expense	13	13	14
Corporate and Other
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 2	$ 0	$ 0

Warranty, Guarantees, Commitments and Contingencies (Narrative) (Details) $ in Millions	12 Months Ended
	Oct. 25, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Products warranty period	12 months
Maximum potential amount of future payments for letters of credit or other guarantee instruments	$ 233
Parent guarantees to banks	$ 153

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 3,619	$ 2,706	$ 3,038
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments	9	21	(51)
Change in unrealized net loss on derivative instruments	(117)
Change in unrealized net loss on derivative instruments		(7)	4
Change in defined and postretirement benefit plans	(11)	(51)	(17)
Change in cumulative translation adjustments	0	(1)	0
Other comprehensive loss, net of tax	(119)	(38)	(64)
Comprehensive income	$ 3,500	$ 2,668	$ 2,974

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended												12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 28, 2018	Jul. 29, 2018	Apr. 29, 2018	Jan. 28, 2018	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018	Oct. 29, 2017
Cash dividend declared (usd per share)	$ 0.22	$ 0.22	$ 0.22	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.20	$ 0.20	$ 0.20	$ 0.20	$ 0.10	$ 0.87	$ 0.83	$ 0.70
Retained earnings	$ 27,209				$ 24,386								$ 27,209	$ 24,386
Cumulative Effect, Period of Adoption, Adjustment
Retained earnings									$ 6						$ 6	$ 281

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

12 Months Ended

Oct. 25, 2020

Equity [Abstract]

Components of accumulated other comprehensive income, net of tax

Changes in the components of accumulated other comprehensive income (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 at October 29, 2017	$	53	$	(11)	$	(120)	$	14	(64)
Adoption of new accounting standards (a)	5		(2)		—		—		3

Other comprehensive income (loss) before reclassifications	(66)		5		(23)		—		(84)
Amounts reclassified out of AOCI	15		(1)		6		—		20
Other comprehensive income (loss), net of tax	(51)		4		(17)		—		(64)
Balance at October 28, 2018	$	7	$	(9)	$	(137)	$	14	$	(125)
Adoption of new accounting standards (b)	(17)		—		—		—		(17)

Other comprehensive income (loss) before reclassifications	22		(10)		(57)		(1)		(46)
Amounts reclassified out of AOCI	(1)		3		6		—		8
Other comprehensive income, net of tax	21		(7)		(51)		(1)		(38)
Balance at October 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	16		(115)		(21)		—		(120)
Amounts reclassified out of AOCI	(7)		(2)		10		—		1
Other comprehensive income (loss), net of tax	9		(117)		(11)		—		(119)
Balance at October 25, 2020	$	20	$	(133)	$	(199)	$	13	$	(299)

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for each fiscal year:


	2020		2019		2018

	(In millions, except per share amounts)
Shares of common stock repurchased	12		60		102
Cost of stock repurchased	$	649	$	2,403	$	5,283
Average price paid per share	$	56.32	$	39.86	$	51.55

Effect of share-based compensation on the results of operations by expense type


	2020		2019		2018

	(In millions)
Cost of products sold	$	103	$	89	$	87
Research, development, and engineering	116		99		96
Marketing and selling	36		31		31
General and administrative	52		44		44

Total share-based compensation	$	307	$	263	$	258

Income tax benefits recognized	$	39	$	37	$	45

Restricted stock units and restricted stock activity

A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans is presented below:


	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value

	(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 29, 2017	22	$	23.96	2.2 years	$	1,239
Granted	6	$	50.62
Vested	(9)	$	22.15
Canceled	(1)	$	30.19
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 28, 2018	18	$	32.64	2.0 years	$	600
Granted	8	$	36.00
Vested	(7)	$	28.41
Canceled	(1)	$	34.59
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2019	18	$	35.78	2.1 years	$	985
Granted	6	$	53.89
Vested	(8)	$	31.25
Canceled	(1)	$	42.61
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2020	15	$	45.36	2.2 years	$	914
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest	14	$	45.51	2.1 years	$	871

Significant valuation assumptions in relation to ESPP

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


	2020		2019		2018
ESPP:
Dividend yield	1.41	%	1.99	%	1.68	%
Expected volatility	48.2	%	35.5	%	34.4	%
Risk-free interest rate	0.58	%	2.21	%	2.09	%
Expected life (in years)	0.5		0.5		0.5
Weighted average estimated fair value	$17.30		$10.61		$12.02

Industry Segment Operations

12 Months Ended

Oct. 25, 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 October 25, 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.

Information for each reportable segment for and as of the end of each fiscal year were as follows:


	Net Sales		Operating Income (Loss)		Depreciation/ Amortization		Capital Expenditures		Accounts Receivable		Inventories

	(In millions)
2020:
Semiconductor Systems	$	11,367	$	3,714	$	219	$	226	$	2,061	$	2,139
Applied Global Services	4,155		1,127		34		30		764		1,545
Display and Adjacent Markets	1,607		291		31		29		179		195
Corporate and Other	73		(767)		92		137		(41)		25
Total	$	17,202	$	4,365	$	376	$	422	$	2,963	$	3,904
2019:
Semiconductor Systems	$	9,027	$	2,464	$	202	$	168	$	1,543	$	1,703
Applied Global Services	3,854		1,101		25		47		790		1,535
Display and Adjacent Markets	1,651		294		22		43		246		214
Corporate and Other	76		(509)		114		183		(46)		22
Total	$	14,608	$	3,350	$	363	$	441	$	2,533	$	3,474
2018:
Semiconductor Systems	$	10,577	$	3,441	$	303	$	168	$	1,597	$	2,215
Applied Global Services	3,754		1,102		21		33		630		1,243
Display and Adjacent Markets	2,298		574		20		39		142		246
Corporate and Other	76		(626)		113		382		(46)		17
Total	$	16,705	$	4,491	$	457	$	622	$	2,323	$	3,721

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


	2020		2019		2018
Foundry, logic and other	59	%	52	%	36	%
Dynamic random-access memory (DRAM)	20	%	22	%	27	%
Flash memory	21	%	26	%	37	%

	100	%	100	%	100	%

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


	2020		2019		2018

	(In millions)
Unallocated net sales	$	73	$	76	$	76
Unallocated cost of products sold and expenses	(533)		(322)		(444)
Share-based compensation	(307)		(263)		(258)


Total	$	(767)	$	(509)	$	(626)

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


	2020		2019		2018

	(In millions)
Net sales:
United States	$	1,619	$	1,871	$	1,413
China	5,456		4,277		5,047
Korea	3,031		1,929		3,539
Taiwan	3,953		2,965		2,504
Japan	1,996		2,198		2,396
Europe	736		820		1,009
Southeast Asia	411		548		797
Total outside United States	15,583		12,737		15,292
Consolidated total	$	17,202	$	14,608	$	16,705


	October 25, 2020		October 27, 2019

	(In millions)
Long-lived assets:
United States	$	1,628	$	1,539
China	14		20
Korea	21		24
Taiwan	59		56
Japan	16		16
Europe	21		28
Southeast Asia	18		23
Total outside United States	149		167
Consolidated total	$	1,777	$	1,706

The following customers accounted for at least 10 percent of Applied’s net sales in each fiscal year, which were for products and services in multiple reportable segments:


	2020		2019		2018
Samsung Electronics Co., Ltd.	18	%	*		13	%
Taiwan Semiconductor Manufacturing Company Limited	18	%	14	%	*

Intel Corporation	*		12	%	11	%

______________________________

* Less than 10%

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

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

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Contract Balances (Tables)

12 Months Ended

Oct. 25, 2020

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

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


	October 25, 2020		October 27, 2019
	(In millions)

Contract assets	$	148	$	108
Contract liabilities	$	1,321	$	1,336

Business Combinations	12 Months Ended
Business Combinations	Oct. 25, 2020
Business Combinations [Abstract]
Business Combinations	Business CombinationsKokusai 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, subject to certain post-closing adjustments. 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, the parties mutually extended the Outside Date to September 30, 2020, and on September 30, 2020 mutually further extended the Outside Date to December 30, 2020.

Unaudited Quarterly Consolidated Financial Data

12 Months Ended

Oct. 25, 2020

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Consolidated Financial Data


	Fiscal Quarter
	First		Second		Third		Fourth		Fiscal Year

	(In millions, except per share amounts)
2020:
Net sales	$	4,162	$	3,957	$	4,395	$	4,688	$	17,202
Gross profit	$	1,858	$	1,749	$	1,955	$	2,130	$	7,692
Net income	$	892	$	755	$	841	$	1,131	$	3,619
Earnings per diluted share	$	0.96	$	0.82	$	0.91	$	1.23	$	3.92
2019:
Net sales	$	3,753	$	3,539	$	3,562	$	3,754	$	14,608
Gross profit	$	1,665	$	1,530	$	1,557	$	1,634	$	6,386
Net income	$	771	$	666	$	571	$	698	$	2,706
Earnings per diluted share	$	0.80	$	0.70	$	0.61	$	0.75	$	2.86

Balance Sheet Detail

12 Months Ended

Oct. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Detail


	October 25, 2020		October 27, 2019

	(In millions)
Inventories
Customer service spares	$	1,270	$	1,245
Raw materials	870		802
Work-in-process	624		575
Finished goods	1,140		852
	$	3,904	$	3,474

Included in finished goods inventory is $16 million at October 25, 2020 and $13 million at 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 $416 million and $318 million of evaluation inventory at October 25, 2020 and October 27, 2019, respectively.


	October 25, 2020		October 27, 2019

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	162	$	96
Prepaid expenses and other	602		485
	$	764	$	581


	Useful Life	October 25, 2020		October 27, 2019

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	256	$	254
Buildings and improvements	3-30	1,655		1,590
Demonstration and manufacturing equipment	3-5	1,586		1,505
Furniture, fixtures and other equipment	3-5	646		602
Construction in progress		237		120
Gross property, plant and equipment		4,380		4,071
Accumulated depreciation		(2,776)		(2,542)
		$	1,604	$	1,529

Depreciation expense was $320 million, $306 million and $258 million for fiscal 2020, 2019 and 2018 respectively.


	October 25, 2020		October 27, 2019

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,711	$	1,766
Operating lease right-of-use assets	252		—
Income tax receivables and other assets	260		265
	$	2,223	$	2,031


	October 25, 2020		October 27, 2019

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,124	$	958

Compensation and employee benefits	800		559

Warranty	201		196
Dividends payable	201		192
Income taxes payable	222		160
Other accrued taxes	33		55
Interest payable	36		38
Operating lease liabilities, current	64		—

Other	457		353
	$	3,138	$	2,511


	October 25, 2020		October 27, 2019

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	241	$	212
Operating lease liabilities, non-current	195		—
Other	226		163
	$	662	$	375

Employee Benefit Plans

12 Months Ended

Oct. 25, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Bonus Plans

Applied has various employee bonus plans. A discretionary bonus plan provides for the distribution of a percentage of pre-tax income to Applied employees who are not participants in other performance-based incentive plans, up to a maximum percentage of eligible compensation. Other plans provide for bonuses to Applied’s executives and other key contributors based on the achievement of profitability and/or other specified performance criteria. Charges under these plans for fiscal 2020, 2019 and 2018 were $471 million, $292 million and $382 million, respectively.

Employee Savings and Retirement Plan

Applied’s Employee Savings and Retirement Plan (the 401(k) Plan) is qualified under Sections 401(a) and (k) of the Internal Revenue Code (the Code). Eligible employees may make salary deferral and catch-up contributions under the 401(k) Plan on a pre-tax basis and on a Roth basis, subject to an annual dollar limit established by the Code. Applied matches 100% of participant salary and/or Roth deferral contributions up to the first 3% of eligible contribution and then 50% of every dollar between 4% and 6% of eligible contribution. Applied does not make matching contributions on any catch-up contributions made by participants. Plan participants who were employed by Applied or any of its affiliates became 100% vested in their Applied matching contribution account balances. Applied’s matching contributions under the 401(k) Plan were approximately $52 million for fiscal 2020, $49 million for fiscal 2019 and $45 million for fiscal 2018.

Defined Benefit Pension Plans of Foreign Subsidiaries and Other Postretirement Benefits

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

A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for each fiscal year is presented below:


	2020		2019		2018

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	617	$	524	$	506
Service cost	13		11		12
Interest cost	8		10		11
Plan participants’ contributions	1		1		1
Actuarial loss	6		84		24
Settlements	—		(1)		(1)
Foreign currency exchange rate changes	33		(5)		(16)
Benefits paid	(10)		(8)		(12)
Plan amendments and other adjustments	6		1		(1)
Ending projected benefit obligation	$	674	$	617	$	524
Ending accumulated benefit obligation	$	627	$	578	$	490
Range of assumptions to determine benefit obligations
Discount rate	0.4% - 6.5%		0.5% - 3.1%		0.6% - 3.1%
Rate of compensation increase	2.3% - 10.0%		2.3% - 3.6%		2.4% - 3.5%
Change in plan assets
Beginning fair value of plan assets	$	409	$	365	$	361
Return on plan assets	—		30		17
Employer contributions	12		27		11
Plan participants’ contributions	1		1		1
Foreign currency exchange rate changes	19		(5)		(12)
Settlements	—		(1)		(1)
Benefits paid	(10)		(8)		(12)
Ending fair value of plan assets	$	431	$	409	$	365
Funded status	$	(243)	$	(208)	$	(159)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—	$	5	$	19
Current liability	(2)		(1)		(1)
Noncurrent liability	(241)		(212)		(177)
Total	$	(243)	$	(208)	$	(159)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	14	$	12	$	8
Prior service credit	—		—		(1)
Total	$	14	$	12	$	7
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	242	$	226	$	161
Prior service credit	—		—		(2)
Total	$	242	$	226	$	159
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	674	$	424	$	365
Fair value of plan assets	$	431	$	211	$	186
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	627	$	385	$	331
Fair value of plan assets	$	431	$	211	$	186


	2020		2019
Plan assets — allocation
Equity securities	38	%	36	%
Debt securities	43	%	45	%
Insurance contracts	9	%	9	%
Other investments	10	%	10	%

The following table presents a summary of the ending fair value of the plan assets:


	October 25, 2020								October 27, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	103	$	—	$	—	$	103	$	90	$	—	$	—	$	90
Debt securities	72		—		—		72		70		—		—		70
Insurance contracts	—		—		39		39		—		—		36		36
Other investments	—		16		—		16		—		14		—		14
Cash	2		—		—		2		—		—		—		—
Total assets at fair value	$	177	$	16	$	39	232		$	160	$	14	$	36	210
Assets measured at net asset value							199								199
Total							$	431							$	409

The following table presents the activity in Level 3 instruments for each fiscal year:


	2020		2019

	(In millions)
Balance, beginning of year	$	36	$	36
Actual return on plan assets:
Relating to assets still held at reporting date	—		(3)
Purchases, sales, settlements, net	1		4
Currency impact	2		(1)
Balance, end of year	$	39	$	36

Applied’s investment strategy for its defined benefit plans is to invest plan assets in a prudent manner, maintaining well-diversified portfolios with the long-term objective of meeting the obligations of the plans as they come due. Asset allocation decisions are typically made by plan fiduciaries with input from Applied’s international pension committee. Applied’s asset allocation strategy incorporates a sufficient equity exposure in order for the plans to benefit from the expected better long-term performance of equities relative to the plans’ liabilities. Applied retains investment managers, where appropriate, to manage the assets of the plans. Performance of investment managers is monitored by plan fiduciaries with the assistance of local investment consultants. The investment managers make investment decisions within the guidelines set forth by plan fiduciaries. Risk management practices include diversification across asset classes and investment styles, and periodic rebalancing toward target asset allocation ranges. Investment managers may use derivative instruments for efficient portfolio management purposes.

A summary of the components of net periodic benefit costs and the weighted average assumptions used for net periodic benefit cost calculations for each fiscal year is presented below:


	2020			2019			2018

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	13		$	11		$	12
Interest cost	8			10			11
Expected return on plan assets	(22)			(20)			(20)
Amortization of actuarial loss and prior service credit	12			7			3

Net periodic benefit cost	$	11		$	8		$	6
Weighted average assumptions
Discount rate	1.23		%	1.98		%	2.16		%
Expected long-term return on assets	5.10		%	5.40		%	5.41		%
Rate of compensation increase	2.69		%	2.74		%	2.66		%

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

Future expected benefit payments for the pension plans and the postretirement plan over the next ten fiscal years are as follows:


	Benefit Payments
	(In millions)
2021	$	14
2022	13
2023	14
2024	14
2025	14
2026-2030	94
	$	163

Company contributions to these plans for fiscal 2021 are expected to be approximately $6 million.

Executive Deferred Compensation Plans

Applied sponsors two unfunded deferred compensation plans, the Executive Deferred Compensation Plan (Predecessor EDCP) and the 2016 Deferred Compensation Plan (2016 DCP) (formerly known as the 2005 Executive Deferred Compensation Plan), under which certain employees may elect to defer a portion of their following year’s eligible earnings. The Predecessor EDCP was frozen as of December 31, 2004 such that no new deferrals could be made under the plan after that date and the plan would qualify for “grandfather” relief under Section 409A of the Code. The Predecessor EDCP participant accounts continue to be maintained under the plan and credited with deemed interest. The 2016 DCP was originally implemented by Applied effective as of January 1, 2005, and amended and restated as of October 12, 2015, and is intended to comply with the requirements of Section 409A of the Code. In addition, Applied also sponsors a non-qualified deferred compensation plan as a result of the acquisition of Varian. Amounts payable for all plans, including accrued deemed interest, totaled $151 million and $123 million at October 25, 2020 and October 27, 2019, respectively, which were included in other liabilities in the Consolidated Balance Sheets.

Consolidated Balance Sheets - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Current assets:
Cash and cash equivalents	$ 5,351	$ 3,129
Short-term investments	387	489
Accounts receivable, net	2,963	2,533
Inventories	3,904	3,474
Other current assets	764	581
Total current assets	13,369	10,206
Long-term investments	1,538	1,703
Property, plant and equipment, net	1,604	1,529
Goodwill	3,466	3,399
Purchased technology and other intangible assets, net	153	156
Deferred income taxes and other assets	2,223	2,031
Total assets	22,353	19,024
Current liabilities:
Current portion of long-term debt	0	600
Accounts payable and accrued expenses	3,138	2,511
Contract liabilities	1,321	1,336
Total current liabilities	4,459	4,447
Long-term debt, net of current portion	5,448	4,713
Income taxes payable	1,206	1,275
Other	662	375
Total liabilities	11,775	10,810
Commitments and contingencies
Stockholders’ equity:
Preferred stock: $0.01 par value per share; 1 shares authorized; no shares issued	0	0
Common stock: $0.01 par value per share; 2,500 shares authorized; 914 and 916 shares outstanding at 2020 and 2019, respectively	9	9
Additional paid-in capital	7,904	7,595
Retained earnings	27,209	24,386
Treasury stock: 1,091 and 1,079 shares at 2020 and 2019, respectively	(24,245)	(23,596)
Accumulated other comprehensive loss	(299)	(180)
Total stockholders’ equity	10,578	8,214
Total liabilities and stockholders’ equity	$ 22,353	$ 19,024

Derivative Instruments and Hedging Activities (Narrative) (Details)	12 Months Ended
	Oct. 25, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Time period for hedging of foreign currency transactions	24 months
Amortization period for the loss on settlement of interest rate swap agreement	12 months

Goodwill, Purchased Technology and Other Intangible Assets (Narrative) (Details)	12 Months Ended
	Oct. 25, 2020
Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	15 years

Balance Sheet Detail (Accounts Payable and Accrued Expenses) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Payables And Accrued Expenses [Line Items]
Accounts payable	$ 1,124	$ 958
Compensation and employee benefits	800	559
Warranty	201	196
Dividends payable	201	192
Income taxes payable	222	160
Other accrued taxes	33	55
Interest payable	36	38
Other	457	353
Accounts payable and accrued expenses	3,138	$ 2,511
Accounts Payable and Accrued Liabilities [Member]
Payables And Accrued Expenses [Line Items]
Operating lease liabilities, current	$ 64

Borrowing Facilities and Debt

12 Months Ended

Oct. 25, 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 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 October 25, 2020 and October 27, 2019.

In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $76 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 October 25, 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 December 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 October 25, 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 October 25, 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 October 25, 2020 and October 27, 2019 was as follows:


	Principal Amount
	October 25, 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	(37)		(27)
Total long-term debt, net of current portion	5,448		4,713

Total debt	$	5,448	$	5,313

Derivative Instruments and Hedging Activities (Derivatives in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Net sales	$ 4,688	$ 4,395	$ 3,957	$ 4,162	$ 3,754	$ 3,562	$ 3,539	$ 3,753	$ 17,202	$ 14,608	$ 16,705
Cost of products sold									9,510	8,222	9,188
Research, development and engineering									2,234	2,054	2,022
General and administrative									567	461	483
Interest expense									240	237	234
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									2
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									1
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations										(4)	(2)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations										9	12
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations										(3)	(3)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations										(6)	(7)
Foreign exchange contracts \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									(2)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									4
Foreign exchange contracts \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									6
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									(3)
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations										2	4
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations										15	19
Foreign exchange contracts \| Research, development, and engineering
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									4
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									0
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									1
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									0
Interest rate contracts \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations									(7)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations									$ 0
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations										(3)	(3)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations										$ 0	$ 0

Earnings Per Share (Tables)

12 Months Ended

Oct. 25, 2020

Earnings Per Share [Abstract]

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


Fiscal Year	2020		2019		2018

	(In millions, except per share amounts)
Numerator:
Net income	$	3,619	$	2,706	$	3,038
Denominator:
Weighted average common shares outstanding	916		937		1,013
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares	7		8		13
Denominator for diluted earnings per share	923		945		1,026
Basic earnings per share	$	3.95	$	2.89	$	3.00
Diluted earnings per share	$	3.92	$	2.86	$	2.96
Potentially dilutive securities	—		3		—

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Oct. 25, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (Applied or the Company) after elimination of intercompany balances and transactions. All references to a fiscal year apply to Applied’s fiscal year which ends on the last Sunday in October. Fiscal 2020, 2019 and 2018 contained 52 weeks each. Each fiscal quarter of 2020, 2019 and 2018 contained 13 weeks. Certain prior year amounts have been reclassified to conform to current year presentation. 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 October 25, 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. Cash Equivalents All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds. Investments All of Applied’s investments, except equity investments held in privately-held companies, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded at fair value with changes in fair value recorded in the accompanying Consolidated Statements of Operations. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations. Equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable prices changes will be recorded in the Consolidated Statements of Operations. Allowance for Doubtful Accounts Applied maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues Applied has identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to Applied or its payment trends, may require Applied to further adjust its estimates of the recoverability of amounts due to Applied. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Applied adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Applied fully writes down inventories and noncancelable purchase orders for inventory deemed obsolete. Applied performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by Applied, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 3 to 5 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Intangible Assets Goodwill and indefinite-lived assets are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Purchased technology and other intangible assets are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method. Long-Lived Assets Applied reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets or asset group may not be recoverable. Applied assesses these assets for impairment based on estimated future cash flows from these assets. 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. Shipping and Handling Costs Applied accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net sales and costs as a component of cost of products sold. Warranty Applied provides for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Applied’s warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from Applied’s estimates, revisions to the estimated warranty liability would be required. Applied also sells extended warranty contracts to its customers which provide an extension of the standard warranty coverage period of up to 2 years. Applied receives payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty. Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Consolidated Statements of Operations. Research, Development and Engineering Costs Research, development and engineering costs are expensed as incurred. Income Taxes Applied recognizes a current tax liability for the estimated amount of income tax payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Applied recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Any changes in judgment related to uncertain tax positions are recognized in Applied’s provision for income taxes in the quarter in which such change occurs. Interest and penalties related to uncertain tax positions are recognized in Applied’s provision for income taxes. Derivative Financial Instruments Applied uses financial instruments, such as forward exchange and currency option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The 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. In certain cases, Applied also uses interest rate swap or lock agreements to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. The terms of derivative financial instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. All of Applied’s derivative financial instruments are recorded at fair value based upon quoted market prices for comparable instruments. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is ineffective, the gain or loss on the associated financial instrument is recorded promptly in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gain or loss on these hedges is recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged. Applied does not use derivative financial instruments for trading or speculative purposes. Foreign Currencies As of October 25, 2020, all of Applied’s subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are remeasured using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are remeasured using historical exchange rates. Foreign currency-denominated revenues and costs are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in interest and other income, net in the Consolidated Statements of Operations as incurred. Concentrations of Credit Risk Financial instruments that potentially subject Applied to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. Applied invests in a variety of financial instruments, such as, but not limited to, commercial paper, corporate and municipal bonds, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. Applied is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments, but does not expect any counterparties to fail to meet their obligations. Applied performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral to secure accounts receivable. Applied maintains an allowance reserve for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. Applied regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, Applied utilizes deposits and/or letters of credit to mitigate credit risk when considered appropriate. 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 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. The adoption of this guidance is not expected to have a significant impact on Applied's defined benefit and other postretirement disclosures. 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. 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. The adoption of this guidance will not have a significant impact on Applied’s consolidated financial statements.

Unaudited Quarterly Consolidated Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 4,688	$ 4,395	$ 3,957	$ 4,162	$ 3,754	$ 3,562	$ 3,539	$ 3,753	$ 17,202	$ 14,608	$ 16,705
Gross profit	2,130	1,955	1,749	1,858	1,634	1,557	1,530	1,665	7,692	6,386	7,517
Net income	$ 1,131	$ 841	$ 755	$ 892	$ 698	$ 571	$ 666	$ 771	$ 3,619	$ 2,706	$ 3,038
Earnings per share: diluted (in dollars per share)	$ 1.23	$ 0.91	$ 0.82	$ 0.96	$ 0.75	$ 0.61	$ 0.70	$ 0.80	$ 3.92	$ 2.86	$ 2.96

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

Reference 1: 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 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: 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 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1,2)
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

+ Details

- Definition

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

+ References

+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-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 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Cash, Cash Equivalents and Investments

12 Months Ended

Oct. 25, 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 by security type:


October 25, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,136	$	—	$	—	$	1,136
Cash equivalents:
Money market funds	4,209		—		—		4,209


Municipal securities	6		—		—		6


Total Cash equivalents	4,215		—		—		4,215
Total Cash and Cash equivalents	$	5,351	$	—	$	—	$	5,351
Short-term and long-term investments:
U.S. Treasury and agency securities	$	394	$	4	$	—	$	398

Municipal securities	359		6		—		365
Commercial paper, corporate bonds and medium-term notes	492		8		1		499
Asset-backed and mortgage-backed securities	470		9		—		479
Total fixed income securities	1,715		27		1		1,741
Publicly traded equity securities	11		36		2		45
Equity investments in privately-held companies	121		25		7		139
Total equity investments	132		61		9		184
Total short-term and long-term investments	$	1,847	$	88	$	10	$	1,925
Total Cash, Cash equivalents and Investments	$	7,198	$	88	$	10	$	7,276

_________________________


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 at October 25, 2020:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	367	$	369
Due after one through five years	878		893
Due after five years	—		—
No single maturity date**	602		663
Total	$	1,847	$	1,925

_________________________

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

Gains and Losses on Investments

Gross realized gains and losses on sales of investments for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Gross realized gains	$	19	$	10	$	29
Gross realized losses	$	2	$	2	$	3

At October 25, 2020, 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 at October 25, 2020, October 27, 2019 and October 28, 2018 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities for fiscal 2020, 2019 or 2018. During fiscal 2020, 2019 and 2018, impairment charge on equity investments in privately-held companies were not material. These impairment charges are included in interest and other income, net in the Consolidated Statement of Operations.

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

The components of gain (loss) on equity investments for each fiscal year were as follows:


	2020		2019

	(In millions)
Publicly traded equity securities
Unrealized gain	$	14	$	28
Unrealized loss	(17)		(5)
Realized gain on sales	1		2

Equity investments in privately-held companies
Unrealized gain	18		13
Unrealized loss	(7)		(6)
Realized gain on sales	8		5
Realized loss on sales or impairment	(8)		(1)
Total gain (loss) on equity investments, net	$	9	$	36

Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ (148)
Effective portion - gain (loss) recognized in AOCI		$ (14)	$ 3
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	3
Effective portion - gain (loss) recognized in AOCI		(14)	3
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ (151)
Effective portion - gain (loss) recognized in AOCI		$ 0	$ 0

Employee Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018	Oct. 29, 2017
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	$ 431	$ 409	$ 365	$ 361
Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	232	210
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	177	160
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	16	14
Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	39	36	$ 36
Assets measured at net asset value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	199	199
Equity securities \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	103	90
Equity securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	103	90
Equity securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Equity securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Debt securities \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	72	70
Debt securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	72	70
Debt securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Debt securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	39	36
Insurance contracts \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	39	36
Other investments \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	16	14
Other investments \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Other investments \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	16	14
Other investments \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Cash \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	2	0
Cash \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	2	0
Cash \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Cash \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	$ 0	$ 0

Summary of Significant Accounting Policies (Intangible Assets) (Details)	12 Months Ended
	Oct. 25, 2020
Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	15 years

Cash, Cash Equivalents and Investments (Tables)

12 Months Ended

Oct. 25, 2020

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

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


October 25, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,136	$	—	$	—	$	1,136
Cash equivalents:
Money market funds	4,209		—		—		4,209


Municipal securities	6		—		—		6


Total Cash equivalents	4,215		—		—		4,215
Total Cash and Cash equivalents	$	5,351	$	—	$	—	$	5,351
Short-term and long-term investments:
U.S. Treasury and agency securities	$	394	$	4	$	—	$	398

Municipal securities	359		6		—		365
Commercial paper, corporate bonds and medium-term notes	492		8		1		499
Asset-backed and mortgage-backed securities	470		9		—		479
Total fixed income securities	1,715		27		1		1,741
Publicly traded equity securities	11		36		2		45
Equity investments in privately-held companies	121		25		7		139
Total equity investments	132		61		9		184
Total short-term and long-term investments	$	1,847	$	88	$	10	$	1,925
Total Cash, Cash equivalents and Investments	$	7,198	$	88	$	10	$	7,276

_________________________


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 at October 25, 2020:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	367	$	369
Due after one through five years	878		893
Due after five years	—		—
No single maturity date**	602		663
Total	$	1,847	$	1,925

_________________________

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

Schedule of gross realized gains and losses on sales of investments

Gross realized gains and losses on sales of investments for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Gross realized gains	$	19	$	10	$	29
Gross realized losses	$	2	$	2	$	3

Components of gain (loss) on equity investment

The components of gain (loss) on equity investments for each fiscal year were as follows:


	2020		2019

	(In millions)
Publicly traded equity securities
Unrealized gain	$	14	$	28
Unrealized loss	(17)		(5)
Realized gain on sales	1		2

Equity investments in privately-held companies
Unrealized gain	18		13
Unrealized loss	(7)		(6)
Realized gain on sales	8		5
Realized loss on sales or impairment	(8)		(1)
Total gain (loss) on equity investments, net	$	9	$	36

Industry Segment Operations (Net Sales and Long-lived Assets) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	$ 4,688	$ 4,395	$ 3,957	$ 4,162	$ 3,754	$ 3,562	$ 3,539	$ 3,753	$ 17,202	$ 14,608	$ 16,705
Long-lived assets	1,777				1,706				1,777	1,706
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									1,619	1,871	1,413
Long-lived assets	1,628				1,539				1,628	1,539
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									5,456	4,277	5,047
Long-lived assets	14				20				14	20
Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									3,031	1,929	3,539
Long-lived assets	21				24				21	24
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									3,953	2,965	2,504
Long-lived assets	59				56				59	56
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									1,996	2,198	2,396
Long-lived assets	16				16				16	16
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									736	820	1,009
Long-lived assets	21				28				21	28
Southeast Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									411	548	797
Long-lived assets	18				23				18	23
Total outside United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									15,583	12,737	$ 15,292
Long-lived assets	$ 149				$ 167				$ 149	$ 167

Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Assets:
Estimated fair value of fixed income securities	$ 6,071	$ 4,093
Equity investments with readily determinable values
Equity investments, fair value	184	157
Restricted cash equivalents included in deferred income taxes and other assets	115	0	$ 0
Money market funds \| Deferred Income Taxes and Other Assets, Net [Member]
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:
Estimated fair value of fixed income securities	398	337
Municipal securities
Assets:
Estimated fair value of fixed income securities	365	406
Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	499	647
Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	479	635
Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	45	45
Fair Value, Measurements, Recurring
Equity investments with readily determinable values
Equity investments, fair value	45	45
Assets, fair value disclosure	6,116	4,138
Fair Value, Measurements, Recurring \| Money market funds
Assets:
Estimated fair value of fixed income securities	4,324	1,677
Fair Value, Measurements, Recurring \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	398	341
Fair Value, Measurements, Recurring \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	0	10
Fair Value, Measurements, Recurring \| Municipal securities
Assets:
Estimated fair value of fixed income securities	371	406
Fair Value, Measurements, Recurring \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	499	1,024
Fair Value, Measurements, Recurring \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	479	635
Fair Value, Measurements, Recurring \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	45	45
Fair Value, Measurements, Recurring \| Level 1
Assets:
Estimated fair value of fixed income securities	4,699	2,000
Equity investments with readily determinable values
Equity investments, fair value	45	45
Assets, fair value disclosure	4,744	2,045
Fair Value, Measurements, Recurring \| Level 1 \| Money market funds
Assets:
Estimated fair value of fixed income securities	4,324	1,677
Fair Value, Measurements, Recurring \| Level 1 \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	375	323
Fair Value, Measurements, Recurring \| Level 1 \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Municipal securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	45	45
Fair Value, Measurements, Recurring \| Level 2
Assets:
Estimated fair value of fixed income securities	1,372	2,093
Equity investments with readily determinable values
Equity investments, fair value	0	0
Assets, fair value disclosure	1,372	2,093
Fair Value, Measurements, Recurring \| Level 2 \| Money market funds
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 2 \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	23	18
Fair Value, Measurements, Recurring \| Level 2 \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	0	10
Fair Value, Measurements, Recurring \| Level 2 \| Municipal securities
Assets:
Estimated fair value of fixed income securities	371	406
Fair Value, Measurements, Recurring \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	499	1,024
Fair Value, Measurements, Recurring \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	479	635
Fair Value, Measurements, Recurring \| Level 2 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	$ 0	$ 0

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Oct. 25, 2020
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (Applied or the Company) after elimination of intercompany balances and transactions. All references to a fiscal year apply to Applied’s fiscal year which ends on the last Sunday in October. Fiscal 2020, 2019 and 2018 contained 52 weeks each. Each fiscal quarter of 2020, 2019 and 2018 contained 13 weeks. Certain prior year amounts have been reclassified to conform to current year presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to 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 October 25, 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.
Cash Equivalents	Cash Equivalents All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds.
Investments	Investments All of Applied’s investments, except equity investments held in privately-held companies, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded at fair value with changes in fair value recorded in the accompanying Consolidated Statements of Operations. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations. Equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable prices changes will be recorded in the Consolidated Statements of Operations.
Allowances for Doubtful Accounts	Allowance for Doubtful Accounts Applied maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues Applied has identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to Applied or its payment trends, may require Applied to further adjust its estimates of the recoverability of amounts due to Applied. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Applied adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Applied fully writes down inventories and noncancelable purchase orders for inventory deemed obsolete. Applied performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by Applied, additional inventory adjustments may be required.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 3 to 5 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term.
Intangible Assets	Intangible Assets Goodwill and indefinite-lived assets 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. Purchased technology and other intangible assets are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method.
Long-Lived Assets	Long-Lived Assets Applied reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets or asset group may not be recoverable. Applied assesses these assets for impairment based on estimated future cash flows from these assets.
Revenue from Contract with Customer	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. Shipping and Handling Costs Applied accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net sales and costs as a component of cost of products sold.
Warranty	Warranty Applied provides for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Applied’s warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from Applied’s estimates, revisions to the estimated warranty liability would be required. Applied also sells extended warranty contracts to its customers which provide an extension of the standard warranty coverage period of up to 2 years. Applied receives payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty.
Sales and Value Added Taxes	Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Consolidated Statements of Operations.
Research, Development and Engineering Costs	Research, Development and Engineering Costs Research, development and engineering costs are expensed as incurred.
Income Taxes	Income Taxes Applied recognizes a current tax liability for the estimated amount of income tax payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Applied recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Any changes in judgment related to uncertain tax positions are recognized in Applied’s provision for income taxes in the quarter in which such change occurs. Interest and penalties related to uncertain tax positions are recognized in Applied’s provision for income taxes.
Derivative Financial Instruments	Derivative Financial Instruments Applied uses financial instruments, such as forward exchange and currency option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The 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. In certain cases, Applied also uses interest rate swap or lock agreements to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. The terms of derivative financial instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. All of Applied’s derivative financial instruments are recorded at fair value based upon quoted market prices for comparable instruments. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. If the transaction being hedged fails to occur, or if a portion of any derivative is ineffective, the gain or loss on the associated financial instrument is recorded promptly in earnings. For derivative instruments used to hedge existing foreign currency denominated assets or liabilities, the gain or loss on these hedges is recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged. Applied does not use derivative financial instruments for trading or speculative purposes.
Foreign Currencies	Foreign Currencies As of October 25, 2020, all of Applied’s subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are remeasured using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are remeasured using historical exchange rates. Foreign currency-denominated revenues and costs are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in interest and other income, net in the Consolidated Statements of Operations as incurred.
Concentrations of Credit Risk	Concentrations of Credit RiskFinancial instruments that potentially subject Applied to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. Applied invests in a variety of financial instruments, such as, but not limited to, commercial paper, corporate and municipal bonds, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. Applied is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments, but does not expect any counterparties to fail to meet their obligations. Applied performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral to secure accounts receivable. Applied maintains an allowance reserve for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. Applied regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, Applied utilizes deposits and/or letters of credit to mitigate credit risk when considered appropriate.
Recent Accounting Pronouncements	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 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. The adoption of this guidance is not expected to have a significant impact on Applied's defined benefit and other postretirement disclosures. 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. 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. The adoption of this guidance will not have a significant impact on Applied’s consolidated financial statements.
Investment Impairment	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.
Fair Value Measurements	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 October 25, 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.
Equity Securities without Readily Determinable Fair Value	Assets and Liabilities Measured at Fair Value on a Non-recurring BasisApplied’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.
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 at October 25, 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 the statement of operations. 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 were not significant for fiscal years 2020, 2019 or 2018.
Contract Assets and Liabilities	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 included in Other Current Assets in the Consolidated 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.
Goodwill and Purchased 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. 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.
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.
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.
Performance based awards	Performance-based awards granted in fiscal 2018 Certain awards require the achievement of positive adjusted operating profit and vest ratably over three years. Other awards require the achievement of targeted levels of adjusted operating profit margin and wafer fabrication equipment market share, and the number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The fair value of these awards is estimated on the date of grant. If the performance goals are achieved as of the end of the performance period, the awards will vest, provided that the grantee remains employed by Applied through each applicable vesting date. If the performance goals are not achieved, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the awards that are probable to vest and is reflected over the service period and reduced for estimated forfeitures. Performance-based awards granted in fiscal 2019 and 2020 Certain awards are subject to the achievement of targeted levels of adjusted operating margin and 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 number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. 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 based on age and years of service. 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. 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 achieved 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 awards that are 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 TSR 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.
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.

Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Components of income from operations before income taxes
U.S.	$ 92	$ 363	$ 389
Foreign	4,074	2,906	4,007
Income before income taxes	4,166	3,269	4,396
Current:
U.S.	196	240	1,021
Foreign	263	260	117
State	20	12	22
Total current provision for income taxes	479	512	1,160
Deferred:
U.S.	(3)	8	151
Foreign	76	46	57
State	(5)	(3)	(10)
Total deferred provision (benefit) for income taxes	68	51	198
Provision for income taxes	$ 547	$ 563	$ 1,358
Reconciliation between the statutory U.S.federal income tax rate to actual effective income tax rate
Tax provision at U.S. statutory rate	21.00%	21.00%	23.40%
Changes in U.S. tax law	0.00%	0.00%	25.30%
Effect of foreign operations taxed at various rates	(5.90%)	(5.90%)	(15.60%)
Changes in prior years’ unrecognized tax benefits	0.50%	2.60%	(0.90%)
Resolutions of prior years' income tax filings	(1.00%)	(0.10%)	0.20%
Research and other tax credits	(1.30%)	(1.10%)	(0.80%)
Other	(0.20%)	0.70%	(0.70%)
Effective income tax rate	13.10%	17.20%	30.90%
Deferred tax assets:
Allowance for doubtful accounts	$ 4	$ 8
Inventory reserves and basis difference	119	117
Installation and warranty reserves	14	11
Intangible assets	1,355	1,472
Accrued liabilities	24	15
Deferred revenue	32	36
Tax credits	326	264
Deferred compensation	130	98
Share-based compensation	30	36
Lease liability	55	0
Other	96	58
Gross deferred tax assets	2,185	2,115
Valuation allowance	(314)	(257)
Total deferred tax assets	1,871	1,858
Deferred tax liabilities:
Fixed assets	(76)	(65)
Right of use assets	(54)	0
Undistributed foreign earnings	(39)	(38)
Total deferred tax liabilities	(169)	(103)
Net deferred tax assets	1,702	1,755
Reconciliation of gross unrecognized tax benefits
Beginning balance of gross unrecognized tax benefits	845	374	$ 391
Settlements with tax authorities	(446)	(1)	(152)
Lapses of statutes of limitation	(3)	(2)	(37)
Increases in tax positions for current year	44	33	91
Increases in tax positions for prior years	91	441	83
Decreases in tax positions for prior years	(35)	0	(2)
Ending balance of gross unrecognized tax benefits	$ 496	$ 845	$ 374

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

Total

Cumulative Effect, Period of Adoption, Adjustment

^[3]

Common Stock

Additional Paid-In Capital

Retained Earnings

^[1]

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

^[1],[3]

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Cumulative Effect, Period of Adoption, Adjustment

^[3]

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

1,060

(917)

Beginning Balance at Oct. 29, 2017

$ 9,630

$ 11

$ 7,056

$ 18,539

$ (15,912)

$ (64)

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

Reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02

^[2]

(3)

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201601Member

Net income

$ 3,038

3,038

Other comprehensive loss, net of tax

(64)

Dividends declared

(694)

Share-based compensation

258

Issuance under stock plans (in shares)

Issuance under stock plans

$ (40)

(40)

Common stock repurchases, (in shares)

(102)

Common stock repurchases

$ (5,283)

$ (1)

$ (5,282)

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

967

(1,019)

Ending 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

2,706

Other comprehensive loss, net of tax

(38)

Dividends declared

(770)

Share-based compensation

263

Issuance under stock plans (in shares)

Issuance under stock plans

$ 58

Common stock repurchases, (in shares)

(60)

Common stock repurchases

$ (2,403)

$ (1)

$ (2,402)

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

916

(1,079)

Ending Balance at Oct. 27, 2019

8,214

$ 9

7,595

24,386

$ (23,596)

(180)

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

Net income

3,619

Other comprehensive loss, net of tax

(119)

Dividends declared

(796)

Share-based compensation

307

Issuance under stock plans (in shares)

Issuance under stock plans

$ 2

Common stock repurchases, (in shares)

(12)

Common stock repurchases

$ (649)

Ending Balance (in shares) at Oct. 25, 2020

914

(1,091)

Ending Balance at Oct. 25, 2020

$ 10,578

$ 9

$ 7,904

$ 27,209

$ (24,245)

$ (299)

[1]	Retained earnings balance as of October 29, 2017 and October 28, 2018 included increases of $281 million and $6 million, respectively, related to the adoption of the standard related to revenue recognition.
[2]	Represents the reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
[3]	Represents the 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.

Income Taxes (Tables)

12 Months Ended

Oct. 25, 2020

Income Tax Disclosure [Abstract]

Components of income from operations before income taxes

The components of income before income taxes for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
U.S.	$	92	$	363	$	389
Foreign	4,074		2,906		4,007
	$	4,166	$	3,269	$	4,396

Components of the provision for income taxes

The components of the provision for income taxes for each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Current:
U.S.	$	196	$	240	$	1,021
Foreign	263		260		117
State	20		12		22
	479		512		1,160
Deferred:
U.S.	(3)		8		151
Foreign	76		46		57
State	(5)		(3)		(10)
	68		51		198
	$	547	$	563	$	1,358

Effective income tax rate continuing operations tax rate reconciliation

A reconciliation between the statutory U.S. federal income tax rate and Applied’s actual effective income tax rate for each fiscal year is presented below:


	2020		2019		2018
Tax provision at U.S. statutory rate	21.0	%	21.0	%	23.4	%
Changes in U.S. tax law	—		—		25.3
Effect of foreign operations taxed at various rates	(5.9)		(5.9)		(15.6)
Changes in prior years’ unrecognized tax benefits	0.5		2.6		(0.9)
Resolutions of prior years’ income tax filings	(1.0)		(0.1)		0.2
Research and other tax credits	(1.3)		(1.1)		(0.8)




Other	(0.2)		0.7		(0.7)
	13.1	%	17.2	%	30.9	%

Components of deferred income tax assets and liabilities

The components of deferred income tax assets and liabilities were as follows:


	October 25, 2020		October 27, 2019

	(In millions)
Deferred tax assets:
Allowance for doubtful accounts	$	4	$	8
Inventory reserves and basis difference	119		117
Installation and warranty reserves	14		11
Intangible assets	1,355		1,472
Accrued liabilities	24		15

Deferred revenue	32		36

Tax credits	326		264
Deferred compensation	130		98
Share-based compensation	30		36

Lease liability	55		—
Other	96		58
Gross deferred tax assets	2,185		2,115
Valuation allowance	(314)		(257)
Total deferred tax assets	1,871		1,858
Deferred tax liabilities:
Fixed assets	(76)		(65)
Right of use assets	(54)		—

Undistributed foreign earnings	(39)		(38)


Total deferred tax liabilities	(169)		(103)
Net deferred tax assets	$	1,702	$	1,755

Summary of valuation allowance

Changes in the valuation allowance in each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	257	$	230	$	227
Increases	57		27		8
Decreases	—		—		(5)
Ending balance	$	314	$	257	$	230

A reconciliation of gross unrecognized tax benefits

A reconciliation of the beginning and ending balances of gross unrecognized tax benefits in each fiscal year is as follows:


	2020		2019		2018

	(In millions)
Beginning balance of gross unrecognized tax benefits	$	845	$	374	$	391

Settlements with tax authorities	(446)		(1)		(152)
Lapses of statutes of limitation	(3)		(2)		(37)
Increases in tax positions for current year	44		33		91
Increases in tax positions for prior years	91		441		83
Decreases in tax positions for prior years	(35)		—		(2)
Ending balance of gross unrecognized tax benefits	$	496	$	845	$	374

Accounts Receivable, Net (Tables)

12 Months Ended

Oct. 25, 2020

Receivables [Abstract]

Changes in allowance for doubtful accounts

Changes in allowance for doubtful accounts in each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Beginning balance	$	30	$	33	$	34
Provision	—		—		—
Deductions1	—		(3)		(1)
Ending balance	$	30	$	30	$	33

_____________________________

1 Deductions primarily represent releases of allowance for doubtful accounts credited to expense as a result of an overall lower risk profile of Applied’s customers and cash collections.

Industry Segment Operations (Segment Reconciling Items) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 27, 2019	Jul. 28, 2019	Apr. 28, 2019	Jan. 27, 2019	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 4,688	$ 4,395	$ 3,957	$ 4,162	$ 3,754	$ 3,562	$ 3,539	$ 3,753	$ 17,202	$ 14,608	$ 16,705
Share-based compensation									(307)	(263)	(258)
Income from operations									4,365	3,350	4,491
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales									73	76	76
Unallocated cost of products sold and expenses									(533)	(322)	(444)
Share-based compensation									(307)	(263)	(258)
Income from operations									$ (767)	$ (509)	$ (626)

- Definition

+ References

+ Details

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Stock Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Equity [Abstract]
Shares of common stock repurchased (in shares)	12	60	102
Cost of stock repurchased	$ 649	$ 2,403	$ 5,283
Average price paid per share (in dollars per share)	$ 56.32	$ 39.86	$ 51.55

Industry Segment Operations (Tables)

12 Months Ended

Oct. 25, 2020

Segment Reporting [Abstract]

Schedule of segment reporting

Information for each reportable segment for and as of the end of each fiscal year were as follows:


	Net Sales		Operating Income (Loss)		Depreciation/ Amortization		Capital Expenditures		Accounts Receivable		Inventories

	(In millions)
2020:
Semiconductor Systems	$	11,367	$	3,714	$	219	$	226	$	2,061	$	2,139
Applied Global Services	4,155		1,127		34		30		764		1,545
Display and Adjacent Markets	1,607		291		31		29		179		195
Corporate and Other	73		(767)		92		137		(41)		25
Total	$	17,202	$	4,365	$	376	$	422	$	2,963	$	3,904
2019:
Semiconductor Systems	$	9,027	$	2,464	$	202	$	168	$	1,543	$	1,703
Applied Global Services	3,854		1,101		25		47		790		1,535
Display and Adjacent Markets	1,651		294		22		43		246		214
Corporate and Other	76		(509)		114		183		(46)		22
Total	$	14,608	$	3,350	$	363	$	441	$	2,533	$	3,474
2018:
Semiconductor Systems	$	10,577	$	3,441	$	303	$	168	$	1,597	$	2,215
Applied Global Services	3,754		1,102		21		33		630		1,243
Display and Adjacent Markets	2,298		574		20		39		142		246
Corporate and Other	76		(626)		113		382		(46)		17
Total	$	16,705	$	4,491	$	457	$	622	$	2,323	$	3,721

Disaggregation of revenue

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


	2020		2019		2018
Foundry, logic and other	59	%	52	%	36	%
Dynamic random-access memory (DRAM)	20	%	22	%	27	%
Flash memory	21	%	26	%	37	%

	100	%	100	%	100	%

Segment reconciling items in corporate and other

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


	2020		2019		2018

	(In millions)
Unallocated net sales	$	73	$	76	$	76
Unallocated cost of products sold and expenses	(533)		(322)		(444)
Share-based compensation	(307)		(263)		(258)


Total	$	(767)	$	(509)	$	(626)

Net sales and long-lived assets by geographic region

Net sales and long-lived assets by geographic region for and as of each fiscal year were as follows:


	2020		2019		2018

	(In millions)
Net sales:
United States	$	1,619	$	1,871	$	1,413
China	5,456		4,277		5,047
Korea	3,031		1,929		3,539
Taiwan	3,953		2,965		2,504
Japan	1,996		2,198		2,396
Europe	736		820		1,009
Southeast Asia	411		548		797
Total outside United States	15,583		12,737		15,292
Consolidated total	$	17,202	$	14,608	$	16,705


	October 25, 2020		October 27, 2019

	(In millions)
Long-lived assets:
United States	$	1,628	$	1,539
China	14		20
Korea	21		24
Taiwan	59		56
Japan	16		16
Europe	21		28
Southeast Asia	18		23
Total outside United States	149		167
Consolidated total	$	1,777	$	1,706

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

The following customers accounted for at least 10 percent of Applied’s net sales in each fiscal year, which were for products and services in multiple reportable segments:


	2020		2019		2018
Samsung Electronics Co., Ltd.	18	%	*		13	%
Taiwan Semiconductor Manufacturing Company Limited	18	%	14	%	*

Intel Corporation	*		12	%	11	%

______________________________

* Less than 10%

Borrowing Facilities and Debt (Narrative) (Details)	1 Months Ended					12 Months Ended
Borrowing Facilities and Debt (Narrative) (Details)	Jun. 30, 2020 USD ($)	May 31, 2020 USD ($)	Mar. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($) interest_rate	Oct. 25, 2020 USD ($)	Oct. 27, 2019 USD ($)	Oct. 28, 2018 USD ($)	Jan. 31, 2020 USD ($)
Line of Credit Facility [Line Items]
Repayments of Long-term Debt						$ 2,882,000,000	$ 0	$ 0
Commercial paper program amount						1,500,000,000
Gain (loss) on extinguishment of debt	$ (33,000,000)
Commercial paper, corporate bonds and medium-term notes
Line of Credit Facility [Line Items]
Current portion of long-term debt						0	0
Senior Notes
Line of Credit Facility [Line Items]
Long-term debt principal amount						5,500,000,000	4,750,000,000
Senior Notes \| 1.750% Senior Notes Due 2030
Line of Credit Facility [Line Items]
Long-term debt principal amount		$ 750,000,000				$ 750,000,000	0
Stated interest rate		1.75%				1.75%
Senior Notes \| 2.750% Senior Notes Due 2050
Line of Credit Facility [Line Items]
Long-term debt principal amount		$ 750,000,000				$ 750,000,000	0
Stated interest rate		2.75%				2.75%
Senior Notes \| 4.3% Percent Unsecured Senior Notes Due 2021 And 2.625% Percent Unsecured Senior Notes Due 2020
Line of Credit Facility [Line Items]
Repayments of Long-term Debt		$ 1,400,000,000
Senior Notes \| 4.300% Senior Notes Due 2021
Line of Credit Facility [Line Items]
Repayments of Long-term Debt	$ 750,000,000
Long-term debt principal amount						$ 0	750,000,000
Stated interest rate	4.30%					4.30%
Senior Notes \| 2.625% Senior Notes Due 2020
Line of Credit Facility [Line Items]
Repayments of Long-term Debt	$ 600,000,000
Stated interest rate	2.625%					2.625%
Revolving Credit \| Unsecured Debt
Line of Credit Facility [Line Items]
Debt instrument term				5 years
Available revolving credit agreement				$ 1,500,000,000					$ 1,500,000,000
Accordion feature, increase limit				500,000,000
Line of Credit Facility, 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
Amount outstanding						$ 0	0
Revolving Credit \| Unsecured Debt \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.875%
Foreign Line of Credit
Line of Credit Facility [Line Items]
Available revolving credit agreement						76,000,000
Amount outstanding						0	0
Line of Credit \| Unsecured Term Loan
Line of Credit Facility [Line Items]
Available revolving credit agreement					$ 2,000,000,000.0
Amount outstanding						$ 0	$ 0
Number of interest rates \| interest_rate					2

Employee Benefit Plans (Future Expected Benefit Payments) (Details) $ in Millions	Oct. 25, 2020 USD ($)
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]
2021	$ 14
2022	13
2023	14
2024	14
2025	14
2026-2030	94
Total	$ 163

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 148	$ 108
Contract liabilities	$ 1,321	$ 1,336

Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Jul. 26, 2020	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Income Tax Examination [Line Items]
GILTI benefit reversed	$ 96
Tax expense for transition tax and re-measurement of deferred tax assets				$ 1,100
Tax expense related to changes in uncertain tax positions			$ 87
Excess tax benefit			42
Tax holiday benefit		$ 215
Tax holiday benefit per diluted share (in dollars per share)		$ 0.23
Increases in tax positions for prior years		$ 91	441	83
Income tax penalties and interest expense (benefit)		24	24	12
Unrecognized tax benefits that would impact effective tax rate		410	758	294
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities		446	1	152
Noncurrent Liabilities
Income Tax Examination [Line Items]
Interest and penalties related to uncertain tax positions		74	$ 50	$ 26
Research and development tax credit carryforwards \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards		327
Carried over until exhausted \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards		309
Carried over the next fifteen years \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards		$ 15
Tax credit carryforward, term		15 years
SINGAPORE
Income Tax Examination [Line Items]
Foreign statutory income tax rate				17.00%
Income tax expense recognized from settled tax audits		$ 26
SINGAPORE \| Foreign Tax Authority
Income Tax Examination [Line Items]
Income tax paid or accrued		72
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities		$ 374
ISRAEL \| Foreign Tax Authority
Income Tax Examination [Line Items]
Income tax paid or accrued				$ 158
Income tax expense from settlement with tax authorities				$ 6

Borrowing Facilities and Debt (Tables)

12 Months Ended

Oct. 25, 2020

Debt Disclosure [Abstract]

Debt Outstanding

Debt outstanding as of October 25, 2020 and October 27, 2019 was as follows:


	Principal Amount
	October 25, 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	(37)		(27)
Total long-term debt, net of current portion	5,448		4,713

Total debt	$	5,448	$	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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,136	$ 1,071
Total Cash equivalents	4,215	2,058
Total Cash and Cash equivalents	5,351	3,129	$ 3,440
Cost of fixed income securities	1,847
Estimated fair value of fixed income securities	6,071	4,093
Equity investments cost	132	113
Equity investments unrealized gain	61	50
Publicly traded equity securities, gross unrealized losses	9	6
Equity investments estimated fair value	184	157
Total short-term and long-term investments cost	1,847	2,134
Total short-term and long-term investments, gross unrealized gains	88	64
Total short-term and long-term investments, gross unrealized losses	10	6
Total short-term and long-term investments	1,925	2,192
Cash, cash equivalents and investments, cost	7,198	5,263
Cash, cash equivalents and investments, gross unrealized gains	88	64
Cash, cash equivalents and investments, gross unrealized losses	10	6
Cash, cash equivalents and investments, estimated fair value	7,276	5,321
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,715	2,021
Gross unrealized gains on fixed income securities	27	14
Gross unrealized losses on fixed income securities	1	0
Estimated fair value of fixed income securities	1,741	2,035
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	394	336
Gross unrealized gains on fixed income securities	4	1
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	398	337
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	359	402
Gross unrealized gains on fixed income securities	6	4
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	365	406
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	492	642
Gross unrealized gains on fixed income securities	8	5
Gross unrealized losses on fixed income securities	1	0
Estimated fair value of fixed income securities	499	647
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	470	631
Gross unrealized gains on fixed income securities	9	4
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	479	635
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	11	8
Equity investments unrealized gain	36	40
Publicly traded equity securities, gross unrealized losses	2	3
Equity investments estimated fair value	45	45
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	121	105
Equity investments unrealized gain	25	10
Publicly traded equity securities, gross unrealized losses	7	3
Equity investments estimated fair value	139	112
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	4,209	1,677
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	$ 6
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents		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

Derivative Instruments and Hedging Activities (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	$ (4)	$ (8)	$ (5)
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	0	(8)	(5)
Foreign exchange contracts \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	(10)	0	0
Total return swap \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	(1)	0	0
Total return swap \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	1	0	0
Total return swap \| Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	$ 6	$ 0	$ 0

Earnings Per Share

12 Months Ended

Oct. 25, 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.


Fiscal Year	2020		2019		2018

	(In millions, except per share amounts)
Numerator:
Net income	$	3,619	$	2,706	$	3,038
Denominator:
Weighted average common shares outstanding	916		937		1,013
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares	7		8		13
Denominator for diluted earnings per share	923		945		1,026
Basic earnings per share	$	3.95	$	2.89	$	3.00
Diluted earnings per share	$	3.92	$	2.86	$	2.96
Potentially dilutive securities	—		3		—

Potentially 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.

Leases (Tables)

12 Months Ended

Oct. 25, 2020

Leases [Abstract]

Lease, Cost

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


	2020
	(In millions, except percentage)
Operating lease cost	$	69
Weighted-average remaining lease term (in years)	5.2
Weighted-average discount rate	1.8		%

Total rent expense for fiscal 2019 and 2018, was $51 million and $50 million, respectively.

Supplemental cash flow information related to leases are as follows:


	2020
	(In millions)
Operating cash flows paid for operating leases	$	70
Right-of-use assets obtained in exchange for operating lease liabilities	$	156

Operating Lease, Liability, Maturity

As of October 25, 2020, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2021	$	68
2022	55
2023	48
2024	42
2025	33
Thereafter	25
Total lease payments	$	271
Less imputed interest	(12)
Total	$	259

Schedule of Future Minimum Rental Payments for Operating Leases

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
Total	$	171

Balance Sheet Detail (Property, Plant and Equipment) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 4,380	$ 4,071
Accumulated depreciation	(2,776)	(2,542)
Net property, plant and equipment	1,604	1,529
Depreciation	320	306	$ 258
Land and improvements
Property, Plant and Equipment, Net
Gross property, plant and equipment	256	254
Buildings and improvements
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 1,655	1,590
Buildings and improvements \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Buildings and improvements \| Maximum
Property, Plant and Equipment, Net
Useful life	30 years
Demonstration and manufacturing equipment
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 1,586	1,505
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Demonstration and manufacturing equipment \| Maximum
Property, Plant and Equipment, Net
Useful life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 646	602
Furniture, fixtures and other equipment \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Furniture, fixtures and other equipment \| Maximum
Property, Plant and Equipment, Net
Useful life	5 years
Construction in progress
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 237	$ 120

Accounts Receivable, Net (Net of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Changes in allowance for doubtful accounts
Beginning balance	$ 30	$ 33	$ 34
Provision	0	0	0
Deductions	0	(3)	(1)
Ending balance	$ 30	$ 30	$ 33

Fair Value Measurements (Tables)

12 Months Ended

Oct. 25, 2020

Fair Value Disclosures [Abstract]

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

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


	October 25, 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*	$	4,324	$	—	$	4,324	$	1,677	$	—	$	1,677
U.S. Treasury and agency securities	375		23		398		323		18		341
Non-U.S. government securities	—		—		—		—		10		10
Municipal securities	—		371		371		—		406		406
Commercial paper, corporate bonds and medium-term notes	—		499		499		—		1,024		1,024
Asset-backed and mortgage-backed securities	—		479		479		—		635		635
Total available-for-sale debt security investments	$	4,699	$	1,372	$	6,071	$	2,000	$	2,093	$	4,093
Equity investments with readily determinable values

Publicly traded equity securities	$	45	$	—	$	45	$	45	$	—	$	45
Total equity investments with readily determinable values	$	45	$	—	$	45	$	45	$	—	$	45
Total	$	4,744	$	1,372	$	6,116	$	2,045	$	2,093	$	4,138

_________________________

* Amount as of October 25, 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.

Fair Value Measurements

12 Months Ended

Oct. 25, 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 October 25, 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 Measured at Fair Value on a Recurring Basis

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


	October 25, 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*	$	4,324	$	—	$	4,324	$	1,677	$	—	$	1,677
U.S. Treasury and agency securities	375		23		398		323		18		341
Non-U.S. government securities	—		—		—		—		10		10
Municipal securities	—		371		371		—		406		406
Commercial paper, corporate bonds and medium-term notes	—		499		499		—		1,024		1,024
Asset-backed and mortgage-backed securities	—		479		479		—		635		635
Total available-for-sale debt security investments	$	4,699	$	1,372	$	6,071	$	2,000	$	2,093	$	4,093
Equity investments with readily determinable values

Publicly traded equity securities	$	45	$	—	$	45	$	45	$	—	$	45
Total equity investments with readily determinable values	$	45	$	—	$	45	$	45	$	—	$	45
Total	$	4,744	$	1,372	$	6,116	$	2,045	$	2,093	$	4,138

_________________________

Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 25, 2020 or October 27, 2019.

Assets and Liabilities Measured at Fair Value 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.

During fiscal 2020, 2019 and 2018, impairment charges on equity investments in privately-held companies 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. At October 25, 2020, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion, and estimated fair value was $6.6 billion. At October 27, 2019, the aggregate principal and estimated fair value amounts of long-term senior unsecured notes were both $4.8 billion and estimated fair value was $5.5 billion. The estimated fair value of long-term senior unsecured 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 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

Unaudited Quarterly Consolidated Financial Data (Tables)

12 Months Ended

Oct. 25, 2020

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Consolidated Financial Data


	Fiscal Quarter
	First		Second		Third		Fourth		Fiscal Year

	(In millions, except per share amounts)
2020:
Net sales	$	4,162	$	3,957	$	4,395	$	4,688	$	17,202
Gross profit	$	1,858	$	1,749	$	1,955	$	2,130	$	7,692
Net income	$	892	$	755	$	841	$	1,131	$	3,619
Earnings per diluted share	$	0.96	$	0.82	$	0.91	$	1.23	$	3.92
2019:
Net sales	$	3,753	$	3,539	$	3,562	$	3,754	$	14,608
Gross profit	$	1,665	$	1,530	$	1,557	$	1,634	$	6,386
Net income	$	771	$	666	$	571	$	698	$	2,706
Earnings per diluted share	$	0.80	$	0.70	$	0.61	$	0.75	$	2.86

Employee Benefit Plans (Plan Assets Allocation) (Details)	Oct. 25, 2020	Oct. 27, 2019
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	38.00%	36.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	43.00%	45.00%
Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	9.00%	9.00%
Other investments
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	10.00%	10.00%

Goodwill, Purchased Technology and Other Intangible Assets (Purchased Technology and Intangible Assets) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	$ 153	$ 156
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	75	71
Intangible Assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	$ 78	$ 85

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (ESPP Fair Value Assumptions) (Details) - Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Oct. 25, 2020	Oct. 27, 2019	Oct. 28, 2018
Weighted Average Assumptions Used for ESPP Granted
Dividend yield	1.41%	1.99%	1.68%
Expected volatility	48.20%	35.50%	34.40%
Risk-free interest rate	0.58%	2.21%	2.09%
Expected life (in years)	6 months	6 months	6 months
Weighted average estimated fair value (in dollars per share)	$ 17.30	$ 10.61	$ 12.02

Balance Sheet Detail (Other Liabilities) (Details) - USD ($) $ in Millions	Oct. 25, 2020	Oct. 27, 2019
Other Liabilities [Line Items]
Defined and postretirement benefit plans	$ 241	$ 212
Other	226	163
Total other liabilities	662	$ 375
Other Liabilities
Other Liabilities [Line Items]
Operating lease liabilities, non-current	$ 195