0000006951-21-000034 | 10-Q | XBRL Viewer

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Cover Page	9 Months Ended
Cover Page	Aug. 01, 2021 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Aug. 01, 2021
Document Transition Report	false
Entity File Number	000-06920
Entity Registrant Name	APPLIED MATERIALS INC /DE
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-1655526
Entity Address, Address Line One	3050 Bowers Avenue
Entity Address, Address Line Two	P.O. Box 58039
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95052-8039
City Area Code	408
Local Phone Number	727-5555
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	AMAT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	902,928,500
Entity Central Index Key	0000006951
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Income Statement [Abstract]
Net sales	$ 6,196	$ 4,395	$ 16,940	$ 12,514
Cost of products sold	3,229	2,440	8,971	6,952
Gross profit	2,967	1,955	7,969	5,562
Operating expenses:
Research, development and engineering	640	572	1,863	1,674
Marketing and selling	159	130	454	395
General and administrative	155	145	465	411
Severance and related charges	0	0	158	0
Deal termination fee	0	0	154	0
Total operating expenses	954	847	3,094	2,480
Income from operations	2,013	1,108	4,875	3,082
Interest expense	57	61	179	181
Interest and other income, net	24	(7)	69	22
Income before income taxes	1,980	1,040	4,765	2,923
Provision for income taxes	264	199	589	435
Net income	$ 1,716	$ 841	$ 4,176	$ 2,488
Earnings per share:
Basic (in dollars per share)	$ 1.89	$ 0.92	$ 4.57	$ 2.71
Diluted (in dollars per share)	$ 1.87	$ 0.91	$ 4.52	$ 2.69
Weighted average number of shares:
Basic (in shares)	908	915	914	916
Diluted (in shares)	918	922	923	924

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 1,716	$ 841	$ 4,176	$ 2,488
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments	(1)	12	(11)	13
Change in unrealized net loss on derivative instruments	(1)	26	18	(110)
Other comprehensive income (loss), net of tax	(2)	38	7	(97)
Comprehensive income	$ 1,714	$ 879	$ 4,183	$ 2,391

- Definition

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

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+ Details

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Current assets:
Cash and cash equivalents	$ 6,066	$ 5,351
Short-term investments	444	387
Accounts receivable, net	3,822	2,963
Inventories	4,117	3,904
Other current assets	799	764
Total current assets	15,248	13,369
Long-term investments	1,658	1,538
Property, plant and equipment, net	1,814	1,604
Goodwill	3,479	3,466
Purchased technology and other intangible assets, net	116	153
Deferred income taxes and other assets	2,164	2,223
Total assets	24,479	22,353
Current liabilities:
Accounts payable and accrued expenses	3,437	3,138
Contract liabilities	1,688	1,321
Total current liabilities	5,125	4,459
Long-term debt	5,451	5,448
Income taxes payable	1,144	1,206
Other liabilities	699	662
Total liabilities	12,419	11,775
Stockholders’ equity:
Common stock	9	9
Additional paid-in capital	8,090	7,904
Retained earnings	30,748	27,209
Treasury stock	(26,495)	(24,245)
Accumulated other comprehensive loss	(292)	(299)
Total stockholders’ equity	12,060	10,578
Total liabilities and stockholders’ equity	$ 24,479	$ 22,353

Consolidated Condensed Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning Balance, (in shares) at Oct. 27, 2019		916			1,079
Beginning Balance at Oct. 27, 2019	$ 8,214	$ 9	$ 7,595	$ 24,386	$ (23,596)	$ (180)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,488			2,488
Other comprehensive income (loss), net of tax	(97)					(97)
Dividends declared	(596)			(596)
Share-based compensation	234		234
Issuance under stock plans (in shares)		8
Issuance under stock plans	$ (75)		(75)
Common stock repurchases (in shares)	(11)	(11)			(11)
Common stock repurchases	$ (599)				$ (599)
Ending Balance, (in shares) at Jul. 26, 2020		913			1,090
Ending Balance at Jul. 26, 2020	9,569	$ 9	7,754	26,278	$ (24,195)	(277)
Beginning Balance, (in shares) at Apr. 26, 2020		917			1,086
Beginning Balance at Apr. 26, 2020	9,024	$ 9	7,687	25,638	$ (23,995)	(315)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	841			841
Other comprehensive income (loss), net of tax	38					38
Dividends declared	(201)			(201)
Share-based compensation	70		70
Issuance under stock plans	$ (3)		(3)
Common stock repurchases (in shares)	(4)	(4)			(4)
Common stock repurchases	$ (200)				$ (200)
Ending Balance, (in shares) at Jul. 26, 2020		913			1,090
Ending Balance at Jul. 26, 2020	9,569	$ 9	7,754	26,278	$ (24,195)	(277)
Beginning Balance, (in shares) at Oct. 25, 2020		914			1,091
Beginning Balance at Oct. 25, 2020	10,578	$ 9	7,904	27,209	$ (24,245)	(299)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,176			4,176
Other comprehensive income (loss), net of tax	7					7
Dividends declared	(637)			(637)
Share-based compensation	272		272
Issuance under stock plans (in shares)		6
Issuance under stock plans	$ (86)		(86)
Common stock repurchases (in shares)	(17)	(17)			(17)
Common stock repurchases	$ (2,250)				$ (2,250)
Ending Balance, (in shares) at Aug. 01, 2021		903			1,108
Ending Balance at Aug. 01, 2021	12,060	$ 9	8,090	30,748	$ (26,495)	(292)
Beginning Balance, (in shares) at May. 02, 2021		914			1,097
Beginning Balance at May. 02, 2021	11,993	$ 9	8,022	29,247	$ (24,995)	(290)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,716			1,716
Other comprehensive income (loss), net of tax	(2)					(2)
Dividends declared	(215)			(215)
Share-based compensation	81		81
Issuance under stock plans	$ (13)		(13)
Common stock repurchases (in shares)	(11)	(11)			(11)
Common stock repurchases	$ (1,500)				$ (1,500)
Ending Balance, (in shares) at Aug. 01, 2021		903			1,108
Ending Balance at Aug. 01, 2021	$ 12,060	$ 9	$ 8,090	$ 30,748	$ (26,495)	$ (292)

Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.24	$ 0.24	$ 0.22	$ 0.24	$ 0.22	$ 0.70	$ 0.65

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020
Cash flows from operating activities:
Net income	$ 4,176	$ 2,488
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	289	279
Severance and related charges	149	0
Share-based compensation	272	234
Deferred income taxes	44	98
Other	(30)	55
Changes in operating assets and liabilities:
Accounts receivable	(858)	(271)
Inventories	(213)	(469)
Other current and non-current assets	(15)	(143)
Accounts payable and accrued expenses	154	243
Contract liabilities	367	53
Income taxes payable	(72)	(123)
Other liabilities	31	45
Cash provided by operating activities	4,294	2,489
Cash flows from investing activities:
Capital expenditures	(462)	(260)
Cash paid for acquisitions, net of cash acquired	(12)	(107)
Proceeds from sales and maturities of investments	1,024	1,388
Purchases of investments	(1,179)	(1,010)
Cash provided by (used in) investing activities	(629)	11
Cash flows from financing activities:
Debt borrowings, net of issuance costs	0	2,979
Debt repayments	0	(2,882)
Proceeds from common stock issuances	86	91
Common stock repurchases	(2,250)	(599)
Tax withholding payments for vested equity awards	(171)	(166)
Payments of dividends to stockholders	(622)	(587)
Cash used in financing activities	(2,957)	(1,164)
Increase in cash, cash equivalents and restricted cash equivalents	708	1,336
Cash, cash equivalents and restricted cash equivalents — beginning of period	5,466	3,129
Cash, cash equivalents and restricted cash equivalents — end of period	6,174	4,465
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents	6,066	4,350
Restricted cash equivalents included in deferred income taxes and other assets	108	115
Supplemental cash flow information:
Cash payments for income taxes	641	519
Cash refunds from income taxes	26	5
Cash payments for interest	$ 137	$ 151

Basis of Presentation	9 Months Ended
Basis of Presentation	Aug. 01, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 25, 2020 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 25, 2020 (2020 Form 10-K). Applied’s results of operations for the three and nine months ended August 1, 2021 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2021 and 2020 contain 53 weeks and 52 weeks, respectively, and the first nine months of fiscal 2021 and 2020 contained 40 and 39 weeks, respectively. 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 August 1, 2021, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available. Revenue Recognition from Contracts with Customers Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. Recent Accounting Pronouncements Accounting Standards Adopted Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit and other Postretirement Plans. In August 2018, the Financial Accounting Standard Board (FASB) issued authoritative guidance that adds, removes, and clarifies disclosure requirements for defined benefit and other postretirement plans. Applied adopted this guidance in the first quarter of fiscal 2021 under the retrospective basis. The adoption of this guidance did not 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. Applied adopted this guidance in the first quarter of fiscal 2021. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed 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. Applied adopted this guidance in the first quarter of fiscal 2021 under the modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed 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.

Earnings Per Share

9 Months Ended

Aug. 01, 2021

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 restricted stock units and employee stock purchase plan shares) outstanding during the period. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to the Company’s non-complex capital structure.


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions, except per share amounts)
Numerator:
Net income	$	1,716	$	841	$	4,176	$	2,488
Denominator:
Weighted average common shares outstanding	908		915		914		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	10		7		9		8
Denominator for diluted earnings per share	918		922		923		924
Basic earnings per share	$	1.89	$	0.92	$	4.57	$	2.71
Diluted earnings per share	$	1.87	$	0.91	$	4.52	$	2.69
Potentially weighted dilutive securities	—		—		—		—

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

Cash, Cash Equivalents and Investments

9 Months Ended

Aug. 01, 2021

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:


August 1, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,236	$	—	$	—	$	1,236
Cash equivalents:
Money market funds	4,796		—		—		4,796
U.S. Treasury and agency securities	12		—		—		12

Municipal securities	10		—		—		10
Commercial paper, corporate bonds and medium-term notes	12		—		—		12

Total Cash equivalents	4,830		—		—		4,830
Total Cash and Cash equivalents	$	6,066	$	—	$	—	$	6,066
Short-term and long-term investments:

U.S. Treasury and agency securities	$	347	$	1	$	—	$	348
Non-U.S. government securities*	6		—		—		6
Municipal securities	352		5		—		357
Commercial paper, corporate bonds and medium-term notes	580		3		—		583
Asset-backed and mortgage-backed securities	532		5		—		537
Total fixed income securities	1,817		14		—		1,831
Publicly traded equity securities	19		44		2		61
Equity investments in privately-held companies	153		71		14		210
Total equity investments	172		115		16		271
Total short-term and long-term investments	$	1,989	$	129	$	16	$	2,102

Total Cash, Cash equivalents and Investments	$	8,055	$	129	$	16	$	8,168

_________________________

*Includes Canadian provincial government debt


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

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments as of August 1, 2021:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	394	$	395
Due after one through five years	891		899

No single maturity date**	704		808
Total	$	1,989	$	2,102

_________________________

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

Gains and Losses on Investments

During the three and nine months ended August 1, 2021 and July 26, 2020 gross realized gains and losses on investments were not material.

As of August 1, 2021, and 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 from credit losses or other factors. Factors considered in determining whether an unrealized loss is considered to be a credit loss include: the significance of the decline in value compared to 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. Credit losses related to available-for-sale debt securities are recorded as an allowance for credit losses through interest and other income, net. Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income.

During the three and nine months ended August 1, 2021, with the adoption of credit losses authoritative guidance, Applied did not recognize significant credit losses and the ending allowance for credit losses was not material. Applied determined that the gross unrealized losses on its marketable fixed-income securities as of July 26, 2020 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities during the three and nine months ended July 26, 2020. Impairment charges on equity investments in privately-held companies during the three and nine months ended August 1, 2021 and July 26, 2020 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations.

The components of gain (loss) on equity investments for the three and nine months ended August 1, 2021 and July 26, 2020 were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Publicly traded equity securities
Unrealized gain	$	1	$	6	$	12	$	11
Unrealized loss	(4)		—		(6)		(15)
Realized gain on sales	—		1		—		1

Equity investments in privately-held companies
Unrealized gain	19		1		50		10
Unrealized loss	(3)		(2)		(11)		(5)
Realized gain on sales	6		7		9		8
Realized loss on sales or impairment	—		—		(7)		(8)
Total gain (loss) on equity investments, net	$	19	$	13	$	47	$	2

Fair Value Measurements

9 Months Ended

Aug. 01, 2021

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 August 1, 2021, 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:


	August 1, 2021				October 25, 2020
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	4,904	$	—	$	4,904	$	4,324	$	—	$	4,324

U.S. Treasury and agency securities	338		22		360		375		23		398
Non-U.S. government securities	—		6		6		—		—		—
Municipal securities	—		367		367		—		371		371
Commercial paper, corporate bonds and medium-term notes	—		595		595		—		499		499
Asset-backed and mortgage-backed securities	—		537		537		—		479		479
Total available-for-sale debt security investments	$	5,242	$	1,527	$	6,769	$	4,699	$	1,372	$	6,071
Equity investments with readily determinable values

Publicly traded equity securities	$	61	$	—	$	61	$	45	$	—	$	45
Total equity investments with readily determinable values	$	61	$	—	$	61	$	45	$	—	$	45

Total	$	5,303	$	1,527	$	6,830	$	4,744	$	1,372	$	6,116

_________________________

* Amounts as of August 1, 2021 and October 25, 2020, include $108 million and $115 million invested in money market funds related to deferred compensation plans, respectively. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Condensed Balance Sheets.

Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of August 1, 2021 or October 25, 2020.

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

Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. These investments are periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment charges on equity investments in privately-held companies during the three and nine months ended August 1, 2021 and July 26, 2020 were not material.

Other

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of August 1, 2021, the aggregate principal amount of long-term senior notes was $5.5 billion and the estimated fair value was $6.5 billion. As of October 25, 2020, the aggregate principal amount of long-term senior notes was $5.5 billion and the estimated fair value was $6.6 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 Condensed Financial Statements for further detail of existing debt.

- Definition

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

+ References + Details

Derivative Instruments and Hedging Activities

9 Months Ended

Aug. 01, 2021

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, Israeli shekel, euro 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 are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses.

Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and foreign exchange derivatives are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of AOCI in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to foreign exchange derivative instruments included in AOCI as of August 1, 2021 is expected to be reclassified into earnings within 12 months. Changes in the fair value of option contracts due to changes in time value are 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. If the transaction being hedged is no longer probable to occur, Applied promptly recognizes the gain or loss on the associated financial instrument in the consolidated condensed statement of operations. The amount recognized due to discontinuance of cash flow hedges that were no longer probable of occurring by the end of the originally specified time period were not significant for the three and nine months ended August 1, 2021 and July 26, 2020.

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

The fair values of foreign exchange derivative instruments as of August 1, 2021 and October 25, 2020 were not material.

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

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	3	$	6	$	18	$	10
Interest rate contracts	—		29		—		(151)
Total	$	3	$	35	$	18	$	(141)

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


	Three Months Ended
	August 1, 2021						July 26, 2020
			Derivatives in Cash Flow Hedging Relationships						Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations		Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	6,196	$	2	$	—	$	4,395	$	(1)	$	1
Cost of products sold	$	3,229	3		(1)		$	2,440	3		(1)
Research, development and engineering	$	640	1		—		$	572	3		—

General and administrative	$	155	1		—		$	145	1		—
Interest Rate Contracts:
Interest expense	$	57	(4)		—		$	61	(3)		—
			$	3	$	(1)			$	3	$	—



	Nine Months Ended
	August 1, 2021						July 26, 2020
			Derivatives in Cash Flow Hedging Relationships						Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations		Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	16,940	$	(3)	$	—	$	12,514	$	—	$	4
Cost of products sold	$	8,971	3		(2)		$	6,952	2		(2)
Research, development and engineering	$	1,863	3		—		$	1,674	3		—

General and administrative	$	465	1		—		$	411	1		—
Interest Rate Contracts:
Interest expense	$	179	(10)		—		$	181	(4)		—
			$	(6)	$	(2)			$	2	$	2


		Amount of Gain or (Loss) Recognized in Consolidated Condensed Statement of Operations
		Three Months Ended				Nine Months Ended
	Location of Gain or (Loss) Recognized in Consolidated Condensed Statement of Operations	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

		(In millions)
Derivatives Not Designated as Hedging Instruments


Foreign exchange contracts	Interest and other income, net	$	3	$	5	$	19	$	1
Total return swaps - deferred compensation	Cost of products sold	1		1		3		—
Total return swaps - deferred compensation	Operating expenses	6		11		24		1
Total return swaps - deferred compensation	Interest and other income, net	(1)		—		(1)		(1)
Total		$	9	$	17	$	45	$	1

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 August 1, 2021.

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

Accounts Receivable, Net	9 Months Ended
Accounts Receivable, Net	Aug. 01, 2021
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable generally 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 $309 million and $980 million of account receivables during the three and nine months ended August 1, 2021, respectively. Applied sold $326 million and $690 million of account receivables during the three and nine months ended July 26, 2020, respectively. Applied did not discount letters of credit issued by customers or discount promissory notes during the three and nine months ended August 1, 2021 and July 26, 2020. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Condensed Statements of Operations and were not material for all periods presented. Accounts receivable are presented net of allowance for credit losses of $29 million as of August 1, 2021 and $30 million as of October 25, 2020. Applied sells its products principally to manufacturers within the semiconductor and display industries. While Applied believes that its allowance for credit losses is adequate and represents its best estimate as of August 1, 2021, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Contract Balances

9 Months Ended

Aug. 01, 2021

Revenue from Contract with Customer [Abstract]

Contract Balances

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

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

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


	August 1, 2021		October 25, 2020
	(In millions)

Contract assets	$	170	$	148
Contract liabilities	$	1,688	$	1,321

The increase in contract assets during the nine months ended August 1, 2021, was primarily due to goods transferred to customers where payment was conditional upon technical sign off, offset by the reclassification of contract assets to net accounts receivable upon meeting conditions to the right to payment.

During the nine months ended August 1, 2021, Applied recognized revenue of approximately $968 million related to contract liabilities at October 25, 2020. 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 August 1, 2021.

There were no credit losses recognized on Applied’s accounts receivables and contract assets during both the three and nine months ended August 1, 2021 and July 26, 2020.

As of August 1, 2021, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $681 million, of which approximately 50% is expected to be recognized within 12 months and the remainder is expected to recognized within the following 24 months thereafter.

Applied has elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&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=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 12
-Subparagraph (b)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Balance Sheet Detail

9 Months Ended

Aug. 01, 2021

Balance Sheet Detail [Abstract]

Balance Sheet Detail


	August 1, 2021		October 25, 2020

	(In millions)
Inventories
Customer service spares	$	1,260	$	1,270
Raw materials	956		870
Work-in-process	846		624
Finished goods	1,055		1,140
	$	4,117	$	3,904

Included in finished goods inventory are $18 million as of August 1, 2021, and $16 million as of October 25, 2020, 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 $395 million and $416 million of evaluation inventory as of August 1, 2021 and October 25, 2020, respectively.


	August 1, 2021		October 25, 2020

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	161	$	162
Prepaid expenses and other	638		602
	$	799	$	764


	Useful Life	August 1, 2021		October 25, 2020

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	335	$	256
Buildings and improvements	3-30	1,747		1,655
Demonstration and manufacturing equipment	3-5	1,787		1,586
Furniture, fixtures and other equipment	3-5	693		646
Construction in progress		267		237
Gross property, plant and equipment		4,829		4,380
Accumulated depreciation		(3,015)		(2,776)
		$	1,814	$	1,604


	August 1, 2021		October 25, 2020

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,654	$	1,711
Operating lease right-of-use assets	262		252
Income tax receivables and other assets	248		260
	$	2,164	$	2,223


	August 1, 2021		October 25, 2020

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,352	$	1,124

Compensation and employee benefits	781		800

Warranty	232		201
Dividends payable	217		201
Income taxes payable	212		222

Other accrued taxes	15		33
Interest payable	56		36

Operating lease liabilities, current	69		64
Other	503		457
	$	3,437	$	3,138


	August 1, 2021		October 25, 2020

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	245	$	241
Operating lease liabilities, non-current	199		195
Other	255		226
	$	699	$	662

Business Combination	9 Months Ended
Business Combination	Aug. 01, 2021
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business CombinationKokusai Electric CorporationOn June 30, 2019, Applied entered into a Share Purchase Agreement (SPA) with Kokusai Electric Corporation (Kokusai Electric) and KKR HKE Investment L.P. (KKR) providing for Applied’s acquisition of all outstanding shares of Kokusai Electric. The SPA, as subsequently amended, terminated as of March 19, 2021. Applied paid KKR a termination fee of $154 million during the second quarter of fiscal 2021

Goodwill, Purchased Technology and Other Intangible Assets

9 Months Ended

Aug. 01, 2021

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. When reviewing 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.

In performing a qualitative assessment, Applied considers business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If Applied concludes that is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value. If the carrying value of a reporting unit exceeds its fair value, Applied would record an impairment charge equal to the excess of the carrying value of the reporting unit’s goodwill over its fair value.

As of August 1, 2021, 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.

Details of goodwill as of August 1, 2021 and October 25, 2020 were as follows:


	August 1, 2021		October 25, 2020


	(In millions)
Semiconductor Systems	$	2,207	$	2,208
Applied Global Services	1,032		1,018
Display and Adjacent Markets	199		199
Corporate and Other	41		41
Carrying amount	$	3,479	$	3,466

From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During the first nine months of fiscal 2021, goodwill increased by $13 million primarily due to the preliminary purchase accounting for an acquisition during the first quarter of fiscal 2021, which was not material to Applied’s results of operations.

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


	August 1, 2021		October 25, 2020

	(In millions)
Purchased technology, net	$	53	$	75
Intangible assets - finite-lived, net	63		78

Total	$	116	$	153

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:


	August 1, 2021						October 25, 2020
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	13		16		29		13		16		29
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,441)	$	(198)	$	(1,639)	$	(1,423)	$	(185)	$	(1,608)
Applied Global Services	(32)		(44)		(76)		(31)		(44)		(75)
Display and Adjacent Markets	(160)		(38)		(198)		(157)		(37)		(194)
Corporate and Other	(1)		(11)		(12)		(1)		(10)		(11)
Accumulated amortization	$	(1,634)	$	(291)	$	(1,925)	$	(1,612)	$	(276)	$	(1,888)
Carrying amount	$	53	$	63	$	116	$	75	$	78	$	153

Details of amortization expense by segment were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Semiconductor Systems	$	9	$	10	$	31	$	29
Applied Global Services	1		—		1		—
Display and Adjacent Markets	1		4		4		11
Corporate & Other	—		—		1		—
Total	$	11	$	14	$	37	$	40

Amortization expense was charged to the following categories:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Cost of products sold	$	7	$	10	$	22	$	27
Research, development and engineering	—		—		1		—
Marketing and selling	4		4		14		13

Total	$	11	$	14	$	37	$	40

As of August 1, 2021, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2021 (remaining 3 months)	$	12
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$	116

Borrowing Facilities and Debt

9 Months Ended

Aug. 01, 2021

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 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.

No amounts were outstanding under the Revolving Credit Agreement as of August 1, 2021 and October 25, 2020.

In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $73 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 August 1, 2021 and October 25, 2020, 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 (Term Loan Credit Agreement) with a group of lenders under which the lenders 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. In March 2021, the Term Loan Credit Agreement, as subsequently amended, terminated automatically in accordance with its terms upon the termination of the SPA. No amounts were borrowed under the Term Loan Credit Agreement at both August 1, 2021 and October 25, 2020.

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 August 1, 2021 and October 25, 2020, 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 during the third quarter of fiscal 2020.

Debt outstanding as of August 1, 2021 and October 25, 2020 was as follows:


	Principal Amount
	August 1, 2021		October 25, 2020		Effective Interest Rate	Interest Pay Dates

	(In millions)





Long-term debt:



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		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		750		2.773%	June 1, December 1
	5,500		5,500
Total unamortized discount	(14)		(15)
Total unamortized debt issuance costs	(35)		(37)



Total long-term debt	$	5,451	$	5,448

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Leases

9 Months Ended

Aug. 01, 2021

Leases [Abstract]

Leases

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

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

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


	Three Months Ended		Nine Months Ended
	August 1, 2021	July 26, 2020	August 1, 2021	July 26, 2020
	(In millions, except percentages)
Operating lease cost	$20	$17	$58	$51
Weighted-average remaining lease term (in years)			4.7	5.3
Weighted-average discount rate			1.6%	1.9%

Supplemental cash flow information related to leases are as follows:


	Nine Months Ended
		August 1, 2021		July 26, 2020
		(In millions)
Operating cash flows paid for operating leases		$	58	$	51
Right-of-use assets obtained in exchange for operating lease liabilities		$	48	$	142

As of August 1, 2021, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2021 (remaining 3 months)	$	19
2022	70
2023	63
2024	54
2025	42
Thereafter	31
Total lease payments	$	279
Less imputed interest	(11)
Total	$	268

Severance and Related Charges

9 Months Ended

Aug. 01, 2021

Restructuring and Related Activities [Abstract]

Severance and Related Charges

Fiscal 2021 Severance Plan

In the first quarter of fiscal 2021, Applied enacted a severance plan to realign its workforce. Under this plan, Applied implemented a one-time voluntary retirement program and other workforce reduction actions. The voluntary retirement program was available to certain U.S. employees who met minimum age and length of service requirements, as well as other business-specific criteria. The payments under this plan are paid at the time of termination and the related costs were not allocated to the segments. In addition, Applied implemented other workforce reduction actions globally across the Display and Adjacent Markets business. These costs were recorded under the Display and Adjacent Markets segment.

During the nine months ended August 1, 2021, Applied recognized $158 million of severance and related charges in connection with the Fiscal 2021 Severance Plan, of which $23 million remains outstanding as of August 1, 2021.

Severance and related charges by segment were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Display and Adjacent Markets	$	—	$	—	$	8	$	—
Corporate and Other	—		—		150		—
Total	$	—	$	—	$	158	$	—

Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above for the nine months ended August 1, 2021 were as follows:


	Severance and Related Charges Reserves

	(In millions)
Balance as of October 25, 2020	$	—
Provision for severance	152
Consumption of reserves	(5)
Balance as of January 31, 2021	147
Provision for severance	6
Consumption of reserves	(117)
Balance as of May 2, 2021	36

Consumption of reserves	(13)
Balance as of August 1, 2021	$	23

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

9 Months Ended

Aug. 01, 2021

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 as of October 25, 2020	$	20	$	(133)	$	(199)	$	13	$	(299)


Other comprehensive income (loss) before reclassifications	(7)		14		—		—		7
Amounts reclassified out of AOCI	(4)		4		—		—		—
Other comprehensive income (loss), net of tax	(11)		18		—		—		7

Balance as of August 1, 2021	$	9	$	(115)	$	(199)	$	13	$	(292)


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

	(in millions)
Balance as of October 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	19		(109)		—		—		(90)
Amounts reclassified out of AOCI	(6)		(1)		—		—		(7)
Other comprehensive income (loss), net of tax	13		(110)		—		—		(97)
Balance as of July 26, 2020	$	24	$	(126)	$	(188)	$	13	$	(277)

The tax effects on the unrealized loss on derivative instruments qualifying as cash flow hedges for the nine months ended August 1, 2021 was not material and was $32 million for the nine months ended July 26, 2020. The tax effects on net income of amounts reclassified from AOCI for the three and nine months ended August 1, 2021 and July 26, 2020 were not material.

Stock Repurchase Program

In March 2021, Applied’s Board of Directors approved a common stock repurchase program authorizing $7.5 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in February 2018. As of August 1, 2021, approximately $6.5 billion remained available for future stock repurchases under the repurchase program.

The following table summarizes Applied’s stock repurchases for the three and nine months ended August 1, 2021 and July 26, 2020:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(in millions, except per share amount)
Shares of common stock repurchased	11		4		17		11
Cost of stock repurchased	$	1,500	$	200	$	2,250	$	599
Average price paid per share	$	133.40	$	59.41	$	134.03	$	55.74

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

Dividends

In June 2021, March 2021 and December 2020, Applied’s Board of Directors declared quarterly cash dividends, in the amount of $0.24, $0.24 and $0.22 per share, respectively. The dividend declared in June 2021 is payable in September 2021. Dividends paid during the nine months ended August 1, 2021 and July 26, 2020 totaled $622 million and $587 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 (ESIP), which permits grants to employees of share-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units 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. On March 11, 2021, Applied’s shareholders approved an amendment and restatement of the ESIP to, among other changes, add 10 million shares to the number of shares of Applied common stock authorized for issuance.

In addition, Applied currently has two Employee Stock Purchase Plans, one generally for United States employees (U.S. ESPP) and a second for employees of international subsidiaries (Offshore ESPP, and together with the U.S. ESPP, the Existing ESPP), which enable eligible employees to purchase Applied common stock. On March 11, 2021, Applied’s shareholders approved an amendment and restatement of the U.S. ESPP (as amended, the Omnibus ESPP). The Omnibus ESPP will become effective on September 1, 2021 (the Effective Date) in accordance with its terms, and amends the U.S. ESPP to, among other changes, (i) incorporate the Offshore ESPP as a sub-plan, and (ii) add 11.3 million shares to the number of shares of Applied common stock authorized for issuance. The Offshore ESPP will terminate as an independent plan on the Effective Date.

During the three and nine months ended August 1, 2021 and July 26, 2020, Applied recognized share-based compensation expense related to equity awards and Existing ESPP shares. The effect of share-based compensation on the results of operations was as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Cost of products sold	$	28	$	24	$	93	$	79
Research, development and engineering	30		27		101		89
Marketing and selling	11		8		34		27
General and administrative	12		11		44		39

Total share-based compensation	$	81	$	70	$	272	$	234

The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal.

As of August 1, 2021, Applied had $547 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under Applied’s Existing ESPP, which will be recognized over a weighted average period of 2.7 years. As of August 1, 2021, there were 35 million shares available for grants of share-based awards under the ESIP, and an additional 8 million shares available for issuance under the Existing ESPP, which excludes the 11.3 million shares approved by shareholders in March 2021 to be added to the Omnibus ESPP, which will be effective on September 1, 2021.

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

A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the nine months ended August 1, 2021 is presented below:


	Shares	Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 25, 2020	15	$	45.36
Granted	5	$	90.64
Vested	(6)	$	43.02
Canceled	(1)	$	56.53
Outstanding as of August 1, 2021	13	$	62.28

As of August 1, 2021, 1.3 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals.

During the first quarter of fiscal 2021, certain executive officers were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period.

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

During the first quarter of fiscal 2021, certain executive officers were also granted non-recurring long-term performance-based awards that are subject to the achievement of targeted levels of Applied’s absolute TSR. The awards become eligible to vest only if targeted levels of TSR are achieved during the five-year performance period and will vest only if the grantee remains employed by Applied through the vesting date in October 2025, except in the event of involuntary termination of employment without cause, death or following a change of control. The number of shares that may vest in full after five years ranges from 0% to 200% of the target amount.

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

The fair value of the portion of the awards subject to targeted levels of relative TSR or absolute 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.

Employee Stock Purchase Plans

Under the Existing ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Applied issued a total of 2 million shares in each of the nine months ended August 1, 2021 and July 26, 2020. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.



	Nine Months Ended
	August 1, 2021	July 26, 2020

Dividend yield	0.72%	1.40%
Expected volatility	44.6%	37.2%
Risk-free interest rate	0.05%	1.05%
Expected life (in years)	0.5	0.5
Weighted average estimated fair value	$18.34	$15.24

Income Taxes	9 Months Ended
Income Taxes	Aug. 01, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Applied’s provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that are not consistent from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Applied’s effective tax rates for the third quarter of fiscal 2021 and 2020 were 13.3 percent and 19.1 percent, respectively. The effective tax rate for the third quarter of fiscal 2021 was lower than the same period in the prior fiscal year primarily due to the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense of $44 million in the third quarter of fiscal 2020. Applied’s effective tax rates for the first nine months of fiscal 2021 and 2020 were 12.4 percent and 14.9 percent, respectively. The effective tax rate for the first nine months of fiscal 2021 was lower than the same period in the prior fiscal year primarily due to a tax benefit related to severance and related charges recorded in the first quarter of fiscal 2021, and the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense in the third quarter of fiscal 2020 noted above.

- 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.

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+ Details

Warranty, Guarantees, Commitments and Contingencies

9 Months Ended

Aug. 01, 2021

Commitments and Contingencies Disclosure [Abstract]

Warranty, Guarantees, Commitments and Contingencies

Warranty

Changes in the warranty reserves are presented below:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Beginning balance	$	216	$	199	$	201	$	196
Warranties issued	61		43		162		119
Change in reserves related to preexisting warranty	4		—		9		2
Consumption of reserves	(49)		(43)		(140)		(118)
Ending balance	$	232	$	199	$	232	$	199

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 August 1, 2021, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $338 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 August 1, 2021, Applied has provided parent guarantees to banks for approximately $145 million to cover these arrangements.

Legal Matters

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

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

Industry Segment Operations

9 Months Ended

Aug. 01, 2021

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 August 1, 2021 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, severance and asset impairment charges and any associated adjustments related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments.

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


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

	(In millions)
August 1, 2021:
Semiconductor Systems	$	4,454	$	1,785	$	11,979	$	4,588
Applied Global Services	1,286		393		3,644		1,083
Display and Adjacent Markets	431		99		1,217		229
Corporate and Other	25		(264)		100		(1,025)
Total	$	6,196	$	2,013	$	16,940	$	4,875
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082

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.

Operating income (loss) for the nine months ended August 1, 2021 included severance and related charges as discussed in Note 13, Severance and Related Charges and a deal termination fee as discussed in Note 9, Business Combination.

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


	Three Months Ended										Nine Months Ended
	August 1, 2021				July 26, 2020				Change		August 1, 2021				July 26, 2020				Change

	(In millions, except percentages)
China	$	2,251	36	%	$	1,470	33	%	53	%	$	5,478	32	%	$	3,880	31	%	41	%
Korea	1,291		21	%	1,051		24	%	23	%	4,008		23	%	2,312		18	%	73	%
Taiwan	1,261		20	%	687		16	%	84	%	3,502		21	%	3,081		25	%	14	%
Japan	449		7	%	472		11	%	(5)	%	1,349		8	%	1,290		10	%	5	%
Southeast Asia	173		3	%	120		2	%	44	%	472		3	%	250		2	%	89	%
Asia Pacific	5,425		87	%	3,800		86	%	43	%	14,809		87	%	10,813		86	%	37	%
United States	533		9	%	399		9	%	34	%	1,365		8	%	1,171		10	%	17	%
Europe	238		4	%	196		5	%	21	%	766		5	%	530		4	%	45	%
Total	$	6,196	100	%	$	4,395	100	%	41	%	$	16,940	100	%	$	12,514	100	%	35	%

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
Foundry, logic and other	63	%	55	%	59	%	60	%
Dynamic random-access memory (DRAM)	20	%	22	%	17	%	19	%
Flash memory	17	%	23	%	24	%	21	%

	100	%	100	%	100	%	100	%

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Unallocated net sales	$	25	$	20	$	100	$	46
Unallocated cost of products sold and expenses	(208)		(156)		(549)		(388)
Share-based compensation	(81)		(70)		(272)		(234)


Severance and related charges	—		—		(150)		—
Deal termination fee	—		—		(154)		—
Total	$	(264)	$	(206)	$	(1,025)	$	(576)

The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended August 1, 2021, and sales to these customers included products and services from multiple reportable segments.


	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	16	%
Samsung Electronics Co., Ltd.	23	%

- Definition

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

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+ Details

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Aug. 01, 2021
Accounting Policies [Abstract]
Basis of Presentation	In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 25, 2020 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 25, 2020 (2020 Form 10-K). Applied’s results of operations for the three and nine months ended August 1, 2021 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2021 and 2020 contain 53 weeks and 52 weeks, respectively, and the first nine months of fiscal 2021 and 2020 contained 40 and 39 weeks, respectively.
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 August 1, 2021, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available.
Revenue Recognition from Contracts with Customers	Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. Contract Balances Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Applied’s contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Condensed Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized.
Recent Accounting Pronouncements	Accounting Standards Adopted Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit and other Postretirement Plans. In August 2018, the Financial Accounting Standard Board (FASB) issued authoritative guidance that adds, removes, and clarifies disclosure requirements for defined benefit and other postretirement plans. Applied adopted this guidance in the first quarter of fiscal 2021 under the retrospective basis. The adoption of this guidance did not 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. Applied adopted this guidance in the first quarter of fiscal 2021. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed 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. Applied adopted this guidance in the first quarter of fiscal 2021 under the modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed 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.
Fair Value Measurement	Applied’s financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 — Quoted prices in active markets for identical assets or liabilities; •Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of August 1, 2021, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments.
Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis	Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. These investments are periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment charges on equity investments in privately-held companies during the three and nine months ended August 1, 2021 and July 26, 2020 were not material.
Derivatives	Applied does not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign currency exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and foreign exchange derivatives are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of AOCI in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to foreign exchange derivative instruments included in AOCI as of August 1, 2021 is expected to be reclassified into earnings within 12 months. Changes in the fair value of option contracts due to changes in time value are 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. If the transaction being hedged is no longer probable to occur, Applied promptly recognizes the gain or loss on the associated financial instrument in the consolidated condensed statement of operations. Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged.
Goodwill 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. When reviewing 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. In performing a qualitative assessment, Applied considers business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If Applied concludes that is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value. If the carrying value of a reporting unit exceeds its fair value, Applied would record an impairment charge equal to the excess of the carrying value of the reporting unit’s goodwill over its fair value.
Finite-Lived Purchased Intangible Assets	Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.
Treasury Stock	Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.
Share-based Compensation	The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal.Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.
Performance Based Awards	During the first quarter of fiscal 2021, certain executive officers were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period. The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement described below. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement based on age and years of service. During the first quarter of fiscal 2021, certain executive officers were also granted non-recurring long-term performance-based awards that are subject to the achievement of targeted levels of Applied’s absolute TSR. The awards become eligible to vest only if targeted levels of TSR are achieved during the five-year performance period and will vest only if the grantee remains employed by Applied through the vesting date in October 2025, except in the event of involuntary termination of employment without cause, death or following a change of control. The number of shares that may vest in full after five years ranges from 0% to 200% of the target amount. The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized, and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the awards subject to targeted levels of relative TSR or absolute 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.

Earnings Per Share (Tables)

9 Months Ended

Aug. 01, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions, except per share amounts)
Numerator:
Net income	$	1,716	$	841	$	4,176	$	2,488
Denominator:
Weighted average common shares outstanding	908		915		914		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	10		7		9		8
Denominator for diluted earnings per share	918		922		923		924
Basic earnings per share	$	1.89	$	0.92	$	4.57	$	2.71
Diluted earnings per share	$	1.87	$	0.91	$	4.52	$	2.69
Potentially weighted dilutive securities	—		—		—		—

Cash, Cash Equivalents and Investments (Tables)

9 Months Ended

Aug. 01, 2021

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:


August 1, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,236	$	—	$	—	$	1,236
Cash equivalents:
Money market funds	4,796		—		—		4,796
U.S. Treasury and agency securities	12		—		—		12

Municipal securities	10		—		—		10
Commercial paper, corporate bonds and medium-term notes	12		—		—		12

Total Cash equivalents	4,830		—		—		4,830
Total Cash and Cash equivalents	$	6,066	$	—	$	—	$	6,066
Short-term and long-term investments:

U.S. Treasury and agency securities	$	347	$	1	$	—	$	348
Non-U.S. government securities*	6		—		—		6
Municipal securities	352		5		—		357
Commercial paper, corporate bonds and medium-term notes	580		3		—		583
Asset-backed and mortgage-backed securities	532		5		—		537
Total fixed income securities	1,817		14		—		1,831
Publicly traded equity securities	19		44		2		61
Equity investments in privately-held companies	153		71		14		210
Total equity investments	172		115		16		271
Total short-term and long-term investments	$	1,989	$	129	$	16	$	2,102

Total Cash, Cash equivalents and Investments	$	8,055	$	129	$	16	$	8,168

_________________________

*Includes Canadian provincial government debt


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

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments as of August 1, 2021:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	394	$	395
Due after one through five years	891		899

No single maturity date**	704		808
Total	$	1,989	$	2,102

_________________________

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

Components of gain (loss) on equity investment

The components of gain (loss) on equity investments for the three and nine months ended August 1, 2021 and July 26, 2020 were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Publicly traded equity securities
Unrealized gain	$	1	$	6	$	12	$	11
Unrealized loss	(4)		—		(6)		(15)
Realized gain on sales	—		1		—		1

Equity investments in privately-held companies
Unrealized gain	19		1		50		10
Unrealized loss	(3)		(2)		(11)		(5)
Realized gain on sales	6		7		9		8
Realized loss on sales or impairment	—		—		(7)		(8)
Total gain (loss) on equity investments, net	$	19	$	13	$	47	$	2

Fair Value Measurements (Tables)

9 Months Ended

Aug. 01, 2021

Fair Value Disclosures [Abstract]

Financial assets measured at fair value on a recurring basis

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


	August 1, 2021				October 25, 2020
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	4,904	$	—	$	4,904	$	4,324	$	—	$	4,324

U.S. Treasury and agency securities	338		22		360		375		23		398
Non-U.S. government securities	—		6		6		—		—		—
Municipal securities	—		367		367		—		371		371
Commercial paper, corporate bonds and medium-term notes	—		595		595		—		499		499
Asset-backed and mortgage-backed securities	—		537		537		—		479		479
Total available-for-sale debt security investments	$	5,242	$	1,527	$	6,769	$	4,699	$	1,372	$	6,071
Equity investments with readily determinable values

Publicly traded equity securities	$	61	$	—	$	61	$	45	$	—	$	45
Total equity investments with readily determinable values	$	61	$	—	$	61	$	45	$	—	$	45

Total	$	5,303	$	1,527	$	6,830	$	4,744	$	1,372	$	6,116

_________________________

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Aug. 01, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	3	$	6	$	18	$	10
Interest rate contracts	—		29		—		(151)
Total	$	3	$	35	$	18	$	(141)

Effect of derivative instruments on the consolidated statement of operations

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


	Three Months Ended
	August 1, 2021						July 26, 2020
			Derivatives in Cash Flow Hedging Relationships						Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations		Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	6,196	$	2	$	—	$	4,395	$	(1)	$	1
Cost of products sold	$	3,229	3		(1)		$	2,440	3		(1)
Research, development and engineering	$	640	1		—		$	572	3		—

General and administrative	$	155	1		—		$	145	1		—
Interest Rate Contracts:
Interest expense	$	57	(4)		—		$	61	(3)		—
			$	3	$	(1)			$	3	$	—



	Nine Months Ended
	August 1, 2021						July 26, 2020
			Derivatives in Cash Flow Hedging Relationships						Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations		Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations		Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations
	(In millions)
Foreign Exchange Contracts:
Net Sales	$	16,940	$	(3)	$	—	$	12,514	$	—	$	4
Cost of products sold	$	8,971	3		(2)		$	6,952	2		(2)
Research, development and engineering	$	1,863	3		—		$	1,674	3		—

General and administrative	$	465	1		—		$	411	1		—
Interest Rate Contracts:
Interest expense	$	179	(10)		—		$	181	(4)		—
			$	(6)	$	(2)			$	2	$	2

Derivatives not designated as hedging instruments in statement of operations


		Amount of Gain or (Loss) Recognized in Consolidated Condensed Statement of Operations
		Three Months Ended				Nine Months Ended
	Location of Gain or (Loss) Recognized in Consolidated Condensed Statement of Operations	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

		(In millions)
Derivatives Not Designated as Hedging Instruments


Foreign exchange contracts	Interest and other income, net	$	3	$	5	$	19	$	1
Total return swaps - deferred compensation	Cost of products sold	1		1		3		—
Total return swaps - deferred compensation	Operating expenses	6		11		24		1
Total return swaps - deferred compensation	Interest and other income, net	(1)		—		(1)		(1)
Total		$	9	$	17	$	45	$	1

- 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=125515794&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=125515794&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=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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+ Details

Contract Balances (Tables)

9 Months Ended

Aug. 01, 2021

Revenue from Contract with Customer [Abstract]

Schedule of contract balances

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


	August 1, 2021		October 25, 2020
	(In millions)

Contract assets	$	170	$	148
Contract liabilities	$	1,688	$	1,321

Balance Sheet Detail (Tables)

9 Months Ended

Aug. 01, 2021

Balance Sheet Detail [Abstract]

Inventories


	August 1, 2021		October 25, 2020

	(In millions)
Inventories
Customer service spares	$	1,260	$	1,270
Raw materials	956		870
Work-in-process	846		624
Finished goods	1,055		1,140
	$	4,117	$	3,904

Other current assets


	August 1, 2021		October 25, 2020

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	161	$	162
Prepaid expenses and other	638		602
	$	799	$	764

Property, plant and equipment, net


	Useful Life	August 1, 2021		October 25, 2020

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	335	$	256
Buildings and improvements	3-30	1,747		1,655
Demonstration and manufacturing equipment	3-5	1,787		1,586
Furniture, fixtures and other equipment	3-5	693		646
Construction in progress		267		237
Gross property, plant and equipment		4,829		4,380
Accumulated depreciation		(3,015)		(2,776)
		$	1,814	$	1,604

Deferred Income Taxes and Other Assets


	August 1, 2021		October 25, 2020

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,654	$	1,711
Operating lease right-of-use assets	262		252
Income tax receivables and other assets	248		260
	$	2,164	$	2,223

Accounts Payable and Accrued Expenses


	August 1, 2021		October 25, 2020

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,352	$	1,124

Compensation and employee benefits	781		800

Warranty	232		201
Dividends payable	217		201
Income taxes payable	212		222

Other accrued taxes	15		33
Interest payable	56		36

Operating lease liabilities, current	69		64
Other	503		457
	$	3,437	$	3,138

Other liabilities


	August 1, 2021		October 25, 2020

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	245	$	241
Operating lease liabilities, non-current	199		195
Other	255		226
	$	699	$	662

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Aug. 01, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Details of goodwill as of August 1, 2021 and October 25, 2020 were as follows:


	August 1, 2021		October 25, 2020


	(In millions)
Semiconductor Systems	$	2,207	$	2,208
Applied Global Services	1,032		1,018
Display and Adjacent Markets	199		199
Corporate and Other	41		41
Carrying amount	$	3,479	$	3,466

Summary of purchased technology and intangible assets

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


	August 1, 2021		October 25, 2020

	(In millions)
Purchased technology, net	$	53	$	75
Intangible assets - finite-lived, net	63		78

Total	$	116	$	153

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:


	August 1, 2021						October 25, 2020
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	13		16		29		13		16		29
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,441)	$	(198)	$	(1,639)	$	(1,423)	$	(185)	$	(1,608)
Applied Global Services	(32)		(44)		(76)		(31)		(44)		(75)
Display and Adjacent Markets	(160)		(38)		(198)		(157)		(37)		(194)
Corporate and Other	(1)		(11)		(12)		(1)		(10)		(11)
Accumulated amortization	$	(1,634)	$	(291)	$	(1,925)	$	(1,612)	$	(276)	$	(1,888)
Carrying amount	$	53	$	63	$	116	$	75	$	78	$	153

Summary of amortization expense

Details of amortization expense by segment were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Semiconductor Systems	$	9	$	10	$	31	$	29
Applied Global Services	1		—		1		—
Display and Adjacent Markets	1		4		4		11
Corporate & Other	—		—		1		—
Total	$	11	$	14	$	37	$	40

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Cost of products sold	$	7	$	10	$	22	$	27
Research, development and engineering	—		—		1		—
Marketing and selling	4		4		14		13

Total	$	11	$	14	$	37	$	40

Future estimated amortization expense

As of August 1, 2021, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)
2021 (remaining 3 months)	$	12
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$	116

Borrowing Facilities and Debt (Tables)

9 Months Ended

Aug. 01, 2021

Debt Disclosure [Abstract]

Debt Outstanding

Debt outstanding as of August 1, 2021 and October 25, 2020 was as follows:


	Principal Amount
	August 1, 2021		October 25, 2020		Effective Interest Rate	Interest Pay Dates

	(In millions)





Long-term debt:



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		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		750		2.773%	June 1, December 1
	5,500		5,500
Total unamortized discount	(14)		(15)
Total unamortized debt issuance costs	(35)		(37)



Total long-term debt	$	5,451	$	5,448

- Definition

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

+ References

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+ Details

Leases (Tables)

9 Months Ended

Aug. 01, 2021

Leases [Abstract]

Lease, Cost

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


	Three Months Ended		Nine Months Ended
	August 1, 2021	July 26, 2020	August 1, 2021	July 26, 2020
	(In millions, except percentages)
Operating lease cost	$20	$17	$58	$51
Weighted-average remaining lease term (in years)			4.7	5.3
Weighted-average discount rate			1.6%	1.9%

Supplemental cash flow information related to leases are as follows:


	Nine Months Ended
		August 1, 2021		July 26, 2020
		(In millions)
Operating cash flows paid for operating leases		$	58	$	51
Right-of-use assets obtained in exchange for operating lease liabilities		$	48	$	142

Operating Lease, Liability, Maturity

As of August 1, 2021, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2021 (remaining 3 months)	$	19
2022	70
2023	63
2024	54
2025	42
Thereafter	31
Total lease payments	$	279
Less imputed interest	(11)
Total	$	268

Severance and Related Charges (Tables)

9 Months Ended

Aug. 01, 2021

Restructuring and Related Activities [Abstract]

Schedule of Severance and Related Charges by Segment

Severance and related charges by segment were as follows:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Display and Adjacent Markets	$	—	$	—	$	8	$	—
Corporate and Other	—		—		150		—
Total	$	—	$	—	$	158	$	—

Schedule of Changes in Severance and Related Charges Reserves

Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above for the nine months ended August 1, 2021 were as follows:


	Severance and Related Charges Reserves

	(In millions)
Balance as of October 25, 2020	$	—
Provision for severance	152
Consumption of reserves	(5)
Balance as of January 31, 2021	147
Provision for severance	6
Consumption of reserves	(117)
Balance as of May 2, 2021	36

Consumption of reserves	(13)
Balance as of August 1, 2021	$	23

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

9 Months Ended

Aug. 01, 2021

Equity [Abstract]

Components of accumulated other comprehensive loss, after-tax basis

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 as of October 25, 2020	$	20	$	(133)	$	(199)	$	13	$	(299)


Other comprehensive income (loss) before reclassifications	(7)		14		—		—		7
Amounts reclassified out of AOCI	(4)		4		—		—		—
Other comprehensive income (loss), net of tax	(11)		18		—		—		7

Balance as of August 1, 2021	$	9	$	(115)	$	(199)	$	13	$	(292)


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

	(in millions)
Balance as of October 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)


Other comprehensive income (loss) before reclassifications	19		(109)		—		—		(90)
Amounts reclassified out of AOCI	(6)		(1)		—		—		(7)
Other comprehensive income (loss), net of tax	13		(110)		—		—		(97)
Balance as of July 26, 2020	$	24	$	(126)	$	(188)	$	13	$	(277)

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three and nine months ended August 1, 2021 and July 26, 2020:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(in millions, except per share amount)
Shares of common stock repurchased	11		4		17		11
Cost of stock repurchased	$	1,500	$	200	$	2,250	$	599
Average price paid per share	$	133.40	$	59.41	$	134.03	$	55.74

Effect of share-based compensation on the results of operations

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Cost of products sold	$	28	$	24	$	93	$	79
Research, development and engineering	30		27		101		89
Marketing and selling	11		8		34		27
General and administrative	12		11		44		39

Total share-based compensation	$	81	$	70	$	272	$	234

Restricted stock units and restricted stock activity


	Shares	Weighted Average Grant Date Fair Value

	(In millions, except per share amounts)
Outstanding as of October 25, 2020	15	$	45.36
Granted	5	$	90.64
Vested	(6)	$	43.02
Canceled	(1)	$	56.53
Outstanding as of August 1, 2021	13	$	62.28

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

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



	Nine Months Ended
	August 1, 2021	July 26, 2020

Dividend yield	0.72%	1.40%
Expected volatility	44.6%	37.2%
Risk-free interest rate	0.05%	1.05%
Expected life (in years)	0.5	0.5
Weighted average estimated fair value	$18.34	$15.24

Warranty, Guarantees, Commitments and Contingencies (Tables)

9 Months Ended

Aug. 01, 2021

Commitments and Contingencies Disclosure [Abstract]

Changes in the warranty reserves

Changes in the warranty reserves are presented below:


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Beginning balance	$	216	$	199	$	201	$	196
Warranties issued	61		43		162		119
Change in reserves related to preexisting warranty	4		—		9		2
Consumption of reserves	(49)		(43)		(140)		(118)
Ending balance	$	232	$	199	$	232	$	199

Industry Segment Operations (Tables)

9 Months Ended

Aug. 01, 2021

Segment Reporting [Abstract]

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

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


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

	(In millions)
August 1, 2021:
Semiconductor Systems	$	4,454	$	1,785	$	11,979	$	4,588
Applied Global Services	1,286		393		3,644		1,083
Display and Adjacent Markets	431		99		1,217		229
Corporate and Other	25		(264)		100		(1,025)
Total	$	6,196	$	2,013	$	16,940	$	4,875
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082

Revenue from external customers by geographic areas

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


	Three Months Ended										Nine Months Ended
	August 1, 2021				July 26, 2020				Change		August 1, 2021				July 26, 2020				Change

	(In millions, except percentages)
China	$	2,251	36	%	$	1,470	33	%	53	%	$	5,478	32	%	$	3,880	31	%	41	%
Korea	1,291		21	%	1,051		24	%	23	%	4,008		23	%	2,312		18	%	73	%
Taiwan	1,261		20	%	687		16	%	84	%	3,502		21	%	3,081		25	%	14	%
Japan	449		7	%	472		11	%	(5)	%	1,349		8	%	1,290		10	%	5	%
Southeast Asia	173		3	%	120		2	%	44	%	472		3	%	250		2	%	89	%
Asia Pacific	5,425		87	%	3,800		86	%	43	%	14,809		87	%	10,813		86	%	37	%
United States	533		9	%	399		9	%	34	%	1,365		8	%	1,171		10	%	17	%
Europe	238		4	%	196		5	%	21	%	766		5	%	530		4	%	45	%
Total	$	6,196	100	%	$	4,395	100	%	41	%	$	16,940	100	%	$	12,514	100	%	35	%

Disaggregation of Revenue

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
Foundry, logic and other	63	%	55	%	59	%	60	%
Dynamic random-access memory (DRAM)	20	%	22	%	17	%	19	%
Flash memory	17	%	23	%	24	%	21	%

	100	%	100	%	100	%	100	%

Reconciliations of total segment operating income to consolidated operating income (loss)

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


	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions)
Unallocated net sales	$	25	$	20	$	100	$	46
Unallocated cost of products sold and expenses	(208)		(156)		(549)		(388)
Share-based compensation	(81)		(70)		(272)		(234)


Severance and related charges	—		—		(150)		—
Deal termination fee	—		—		(154)		—
Total	$	(264)	$	(206)	$	(1,025)	$	(576)

Companies accounted for at least 10 percent of net sales


	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	16	%
Samsung Electronics Co., Ltd.	23	%

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Numerator:
Net income	$ 1,716	$ 841	$ 4,176	$ 2,488
Denominator:
Weighted average common shares outstanding (in shares)	908	915	914	916
Effect of dilutive restricted stock units and employee stock purchase plan shares (in shares)	10	7	9	8
Denominator for diluted earnings per share (in shares)	918	922	923	924
Basic earnings per share (in dollars per share)	$ 1.89	$ 0.92	$ 4.57	$ 2.71
Diluted earnings per share (in dollars per share)	$ 1.87	$ 0.91	$ 4.52	$ 2.69
Potentially dilutive securities (in shares)	0	0	0	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
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-Name Accounting Standards Codification
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+ Details

- Definition

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

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+ Details

- Definition

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

+ References

+ Details

Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020	Jul. 26, 2020
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,236	$ 1,136
Total Cash equivalents	4,830	4,215
Total Cash and Cash equivalents	6,066	5,351	$ 4,350
Equity investments cost	172	132
Equity investments unrealized gain	115	61
Equity investments unrealized loss	16	9
Equity investments estimated fair value	271	184
Total short-term and long-term investments cost	1,989	1,847
Gross unrealized gains on short-term and long-term investments	129	88
Gross unrealized losses on short-term and long-term investments	16	10
Estimated fair value of short-term and long-term investments	2,102	1,925
Cash, cash equivalents and investments, cost	8,055	7,198
Cash, cash equivalents and investments, gross unrealized gains	129	88
Cash, cash equivalents and investments, gross unrealized losses	16	10
Cash, cash equivalents and investments, estimated fair value	8,168	7,276
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,817	1,715
Gross unrealized gains on fixed income securities	14	27
Gross unrealized losses on fixed income securities	0	1
Estimated fair value of fixed income securities	1,831	1,741
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	347	394
Gross unrealized gains on fixed income securities	1	4
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	348	398
Non-U.S. government securities \| CANADA
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	6
Gross unrealized gains on fixed income securities	0
Gross unrealized losses on fixed income securities	0
Estimated fair value of fixed income securities	6
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	352	359
Gross unrealized gains on fixed income securities	5	6
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	357	365
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	580	492
Gross unrealized gains on fixed income securities	3	8
Gross unrealized losses on fixed income securities	0	1
Estimated fair value of fixed income securities	583	499
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	532	470
Gross unrealized gains on fixed income securities	5	9
Gross unrealized losses on fixed income securities	0	0
Estimated fair value of fixed income securities	537	479
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	19	11
Equity investments unrealized gain	44	36
Equity investments unrealized loss	2	2
Equity investments estimated fair value	61	45
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	153	121
Equity investments unrealized gain	71	25
Equity investments unrealized loss	14	7
Equity investments estimated fair value	210	139
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	4,796	4,209
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	12
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	10	$ 6
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	$ 12

Cash, Cash Equivalents and Investments - Summary of Contractual Maturity (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Contractual maturities of investments
Due in one year or less, Cost	$ 394
Due after one through five years, Cost	891
No single maturity date, Cost	704
Total short-term and long-term investments cost	1,989	$ 1,847
Due in one year or less, Estimated Fair Value	395
Due after one through five years, Estimated Fair Value	899
No single maturity date, Estimated Fair Value	808
Estimated fair value of short-term and long-term investments	$ 2,102

Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Gain (Loss) on Securities [Line Items]
Total gain (loss) on equity investments, net	$ 19	$ 13	$ 47	$ 2
Publicly traded equity securities
Gain (Loss) on Securities [Line Items]
Unrealized gain	1	6	12	11
Unrealized loss	(4)	0	(6)	(15)
Realized gain on sales	0	1	0	1
Equity investments in privately-held companies
Gain (Loss) on Securities [Line Items]
Unrealized gain	19	1	50	10
Unrealized loss	(3)	(2)	(11)	(5)
Realized gain on sales	6	7	9	8
Realized loss on sales or impairment	$ 0	$ 0	$ (7)	$ (8)

Fair Value Measurements - Narrative (Details) - Senior Notes - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, principal amount	$ 5,500	$ 5,500
Estimated fair value \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt fair value	$ 6,500	$ 6,600

Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020	Jul. 26, 2020
Equity investments with readily determinable values
Equity investments with readily determinable values	$ 271	$ 184
Restricted cash equivalents included in deferred income taxes and other assets	108		$ 115
Money market funds \| Deferred Income Taxes and Other Assets, Net
Equity investments with readily determinable values
Restricted cash equivalents included in deferred income taxes and other assets	108	115
U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	348	398
Municipal securities
Assets:
Available-for-sale debt security investments	357	365
Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	583	499
Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	537	479
Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	61	45
Recurring fair value measurements
Assets:
Available-for-sale debt security investments	6,769	6,071
Equity investments with readily determinable values
Equity investments with readily determinable values	61	45
Total	6,830	6,116
Recurring fair value measurements \| Money market funds
Assets:
Available-for-sale debt security investments	4,904	4,324
Recurring fair value measurements \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	360	398
Recurring fair value measurements \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	6	0
Recurring fair value measurements \| Municipal securities
Assets:
Available-for-sale debt security investments	367	371
Recurring fair value measurements \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	595	499
Recurring fair value measurements \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	537	479
Recurring fair value measurements \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	61	45
Recurring fair value measurements \| Level 1
Assets:
Available-for-sale debt security investments	5,242	4,699
Equity investments with readily determinable values
Equity investments with readily determinable values	61	45
Total	5,303	4,744
Recurring fair value measurements \| Level 1 \| Money market funds
Assets:
Available-for-sale debt security investments	4,904	4,324
Recurring fair value measurements \| Level 1 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	338	375
Recurring fair value measurements \| Level 1 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Municipal securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 1 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	61	45
Recurring fair value measurements \| Level 2
Assets:
Available-for-sale debt security investments	1,527	1,372
Equity investments with readily determinable values
Equity investments with readily determinable values	0	0
Total	1,527	1,372
Recurring fair value measurements \| Level 2 \| Money market funds
Assets:
Available-for-sale debt security investments	0	0
Recurring fair value measurements \| Level 2 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	22	23
Recurring fair value measurements \| Level 2 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	6	0
Recurring fair value measurements \| Level 2 \| Municipal securities
Assets:
Available-for-sale debt security investments	367	371
Recurring fair value measurements \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	595	499
Recurring fair value measurements \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	537	479
Recurring fair value measurements \| Level 2 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	$ 0	$ 0

Derivative Instruments and Hedging Activities - Additional Information (Details)	9 Months Ended
	Aug. 01, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Time period for hedging of foreign currency transaction	24 months
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings	12 months

Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 3	$ 35	$ 18	$ (141)
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	3	6	18	10
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 0	$ 29	$ 0	$ (151)

Derivative Instruments and Hedging Activities - Derivatives in Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net Sales	$ 6,196	$ 4,395	$ 16,940	$ 12,514
Cost of products sold	3,229	2,440	8,971	6,952
Research, development and engineering	640	572	1,863	1,674
General and administrative	155	145	465	411
Interest expense	57	61	179	181
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	3	3	(6)	2
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	(1)	0	(2)	2
Foreign exchange contracts \| Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	2	(1)	(3)	0
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	1	0	4
Foreign exchange contracts \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	3	3	3	2
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	(1)	(1)	(2)	(2)
Foreign exchange contracts \| Research, development and engineering
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	1	3	3	3
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	0	0	0
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	1	1	1	1
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	0	0	0
Interest rate contracts \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	(4)	(3)	(10)	(4)
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	$ 0	$ 0	$ 0	$ 0

Derivative Instruments and Hedging Activities - Gain/Loss Recognized in Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 9	$ 17	$ 45	$ 1
Foreign exchange contracts \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	3	5	19	1
Total return swaps - deferred compensation \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	(1)	0	(1)	(1)
Total return swaps - deferred compensation \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	1	1	3	0
Total return swaps - deferred compensation \| Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 6	$ 11	$ 24	$ 1

Accounts Receivable, Net (Details) - USD ($)	3 Months Ended		9 Months Ended
Accounts Receivable, Net (Details) - USD ($)	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020	Oct. 25, 2020
Receivables [Abstract]
Factored accounts receivable	$ 309,000,000	$ 326,000,000	$ 980,000,000	$ 690,000,000
Discounted letters of credit	0	0	0	0
Discounted promissory notes	0	$ 0	0	$ 0
Allowance for credit losses	$ 29,000,000		$ 29,000,000		$ 30,000,000

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 170	$ 148
Contract liabilities	$ 1,688	$ 1,321

Contract Balances - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Contract Balances - Narrative (Details) - USD ($)	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized			$ 968,000,000
Accounts receivable, credit losses	$ 0	$ 0	0	$ 0
Contract assets, credit losses	0	$ 0	0	$ 0
Long-term Contract with Customer
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 681,000,000		$ 681,000,000

Contract Balances - Expecting Timing of Satisfaction (Details)	Aug. 01, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	12 months
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue expected to be recognized within twelve months	50.00%
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	24 months

Balance Sheet Detail - Inventories (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Inventories
Customer service spares	$ 1,260	$ 1,270
Raw materials	956	870
Work-in-process	846	624
Finished goods	1,055	1,140
Inventories	4,117	3,904
Inventory at customer locations included in finished goods	18	16
Inventory, finished goods, evaluation inventory, net of reserves	$ 395	$ 416

Balance Sheet Detail - Other Current Assets (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Other Current Assets [Abstract]
Prepaid income taxes and income taxes receivable	$ 161	$ 162
Prepaid expenses and other	638	602
Other Current Assets	$ 799	$ 764

Balance Sheet Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions	9 Months Ended
	Aug. 01, 2021	Oct. 25, 2020
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 4,829	$ 4,380
Accumulated depreciation	(3,015)	(2,776)
Property, Plant and Equipment, Net	1,814	1,604
Land and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	335	256
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 1,747	1,655
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life	30 years
Demonstration and manufacturing equipment
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 1,787	1,586
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Demonstration and manufacturing equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 693	646
Furniture, fixtures and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Furniture, fixtures and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Construction in progress
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 267	$ 237

Balance Sheet Detail - Deferred Income Taxes and Other Assets (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Balance Sheet Detail [Abstract]
Non-current deferred income taxes	$ 1,654	$ 1,711
Operating lease right-of-use assets	262	252
Income tax receivables and other assets	248	260
Deferred Income Taxes and Other Assets	$ 2,164	$ 2,223

Balance Sheet Detail - Accounts Payable and Accrued Expense (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Accounts Payable and Accrued Expenses
Accounts payable	$ 1,352	$ 1,124
Compensation and employee benefits	781	800
Warranty	232	201
Dividends payable	217	201
Income taxes payable	212	222
Other accrued taxes	15	33
Interest payable	56	36
Operating lease liabilities, current	69	64
Other	503	457
Accounts Payable and Accrued Expenses	$ 3,437	$ 3,138

Balance Sheet Detail - Other Liabilities (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Other Liabilities
Defined and postretirement benefit plans	$ 245	$ 241
Operating lease liabilities, non-current	199	195
Other	255	226
Other Liabilities	$ 699	$ 662

Business Combination (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
Business Combination (Details) - USD ($) $ in Millions	Aug. 01, 2021	May 02, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Business Acquisition [Line Items]
Deal termination fee	$ 0		$ 0	$ 154	$ 0
Kokusai Electric
Business Acquisition [Line Items]
Deal termination fee		$ 154

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Goodwill [Line Items]
Goodwill	$ 3,479	$ 3,466
Corporate and Other
Goodwill [Line Items]
Goodwill	41	41
Semiconductor Systems \| Operating Segments
Goodwill [Line Items]
Goodwill	2,207	2,208
Applied Global Services \| Operating Segments
Goodwill [Line Items]
Goodwill	1,032	1,018
Display and Adjacent Markets \| Operating Segments
Goodwill [Line Items]
Goodwill	$ 199	$ 199

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Purchased Technology and Intangible Assets (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 116	$ 153
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	53	75
Other Intangible Assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 63	$ 78

Goodwill, Purchased Technology and Other Intangible Assets - Additional Information (Details) $ in Millions	9 Months Ended
	Aug. 01, 2021 USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill, period increase	$ 13
Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	15 years

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Finite-lived intangible assets
Gross carrying amount:	$ 2,041	$ 2,041
Accumulated amortization:	(1,925)	(1,888)
Total	116	153
Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	29	29
Accumulated amortization:	(12)	(11)
Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,732	1,732
Accumulated amortization:	(1,639)	(1,608)
Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	79	79
Accumulated amortization:	(76)	(75)
Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	201	201
Accumulated amortization:	(198)	(194)
Purchased technology, net
Finite-lived intangible assets
Gross carrying amount:	1,687	1,687
Accumulated amortization:	(1,634)	(1,612)
Total	53	75
Purchased technology, net \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	13	13
Accumulated amortization:	(1)	(1)
Purchased technology, net \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,476	1,476
Accumulated amortization:	(1,441)	(1,423)
Purchased technology, net \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	35	35
Accumulated amortization:	(32)	(31)
Purchased technology, net \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	163	163
Accumulated amortization:	(160)	(157)
Other Intangible Assets
Finite-lived intangible assets
Gross carrying amount:	354	354
Accumulated amortization:	(291)	(276)
Total	63	78
Other Intangible Assets \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	16	16
Accumulated amortization:	(11)	(10)
Other Intangible Assets \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	256	256
Accumulated amortization:	(198)	(185)
Other Intangible Assets \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	44	44
Accumulated amortization:	(44)	(44)
Other Intangible Assets \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	38	38
Accumulated amortization:	$ (38)	$ (37)

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 11	$ 14	$ 37	$ 40
Corporate and Other
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	0	1	0
Semiconductor Systems \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	9	10	31	29
Applied Global Services \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	1	0	1	0
Display and Adjacent Markets \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1	$ 4	$ 4	$ 11

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Income Statement Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 11	$ 14	$ 37	$ 40
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	7	10	22	27
Research, development and engineering
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	0	1	0
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 4	$ 4	$ 14	$ 13

Goodwill, Purchased Technology and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020
Future estimated amortization expense
2021 (remaining 3 months)	$ 12
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$ 116	$ 153

Borrowing Facilities and Debt - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended
	Jun. 30, 2020	Feb. 29, 2020	Jul. 26, 2020	Aug. 01, 2021	Oct. 25, 2020	May 31, 2020	Aug. 31, 2019
Debt Instrument [Line Items]
Commercial paper				$ 1,500,000,000
Foreign Line of Credit
Debt Instrument [Line Items]
Available credit agreement				73,000,000
Outstanding credit facilities				0	$ 0
Unsecured Debt \| Revolving Credit
Debt Instrument [Line Items]
Debt instrument, term		5 years
Available credit agreement		$ 1,500,000,000
Accordion feature, increase limit		500,000,000
Accordion feature, higher borrowing capacity option		$ 2,000,000,000
Outstanding credit facilities				0	0
Unsecured Term Loan \| Line of Credit
Debt Instrument [Line Items]
Available credit agreement							$ 2,000,000,000
Outstanding credit facilities				0	0
Commercial paper
Debt Instrument [Line Items]
Short-term debt				0	0
Senior Notes
Debt Instrument [Line Items]
Long-term debt, principal amount				5,500,000,000	5,500,000,000
Senior Notes \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Long-term debt, principal amount				$ 750,000,000	750,000,000	$ 750,000,000
Stated interest rate (as percent)				1.75%		1.75%
Senior Notes \| 2.750% Senior Notes Due 2050
Debt Instrument [Line Items]
Long-term debt, principal amount				$ 750,000,000	$ 750,000,000	$ 750,000,000
Stated interest rate (as percent)				2.75%		2.75%
Senior Notes \| 2.625% Senior Notes Due 2020
Debt Instrument [Line Items]
Stated interest rate (as percent)	2.625%
Repayments of long-term debt	$ 600,000,000
Senior Notes \| 4.300% Senior Notes Due 2021
Debt Instrument [Line Items]
Stated interest rate (as percent)	4.30%
Repayments of long-term debt	$ 750,000,000
Senior Notes \| 4.300% Unsecured Senior Notes Due 2021 And 2.625% Unsecured Senior Notes Due 2020
Debt Instrument [Line Items]
Repayments of long-term debt	$ 1,400,000,000
Loss on extinguishment of debt			$ 33,000,000

Borrowing Facilities and Debt - Debt Outstanding (Details) - USD ($) $ in Millions	Aug. 01, 2021	Oct. 25, 2020	May 31, 2020
Debt Instrument [Line Items]
Total long-term senior notes	$ 5,451	$ 5,448
Senior Notes
Debt Instrument [Line Items]
Long-term debt, principal amount	5,500	5,500
Total unamortized discount	(14)	(15)
Total unamortized debt issuance costs	$ (35)	(37)
Senior Notes \| 3.900% Senior Notes Due 2025
Debt Instrument [Line Items]
Stated interest rate (as percent)	3.90%
Long-term debt, principal amount	$ 700	700
Effective Interest Rate	3.944%
Senior Notes \| 3.300% Senior Notes Due 2027
Debt Instrument [Line Items]
Stated interest rate (as percent)	3.30%
Long-term debt, principal amount	$ 1,200	1,200
Effective Interest Rate	3.342%
Senior Notes \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Stated interest rate (as percent)	1.75%		1.75%
Long-term debt, principal amount	$ 750	750	$ 750
Effective Interest Rate	1.792%
Senior Notes \| 5.100% Senior Notes Due 2035
Debt Instrument [Line Items]
Stated interest rate (as percent)	5.10%
Long-term debt, principal amount	$ 500	500
Effective Interest Rate	5.127%
Senior Notes \| 5.850% Senior Notes Due 2041
Debt Instrument [Line Items]
Stated interest rate (as percent)	5.85%
Long-term debt, principal amount	$ 600	600
Effective Interest Rate	5.879%
Senior Notes \| 4.350% Senior Notes Due 2047
Debt Instrument [Line Items]
Stated interest rate (as percent)	4.35%
Long-term debt, principal amount	$ 1,000	1,000
Effective Interest Rate	4.361%
Senior Notes \| 2.750% Senior Notes Due 2050
Debt Instrument [Line Items]
Stated interest rate (as percent)	2.75%		2.75%
Long-term debt, principal amount	$ 750	$ 750	$ 750
Effective Interest Rate	2.773%

Leases - Lease Expense and Supplemental Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Leases [Abstract]
Operating lease cost	$ 20	$ 17	$ 58	$ 51
Weighted-average remaining lease term (in years)	4 years 8 months 12 days	5 years 3 months 18 days	4 years 8 months 12 days	5 years 3 months 18 days
Weighted-average discount rate	1.60%	1.90%	1.60%	1.90%
Operating cash flows paid for operating leases			$ 58	$ 51
Right-of-use assets obtained in exchange for operating lease liabilities			$ 48	$ 142

Leases - Lease Maturities (Details) $ in Millions	Aug. 01, 2021 USD ($)
Leases [Abstract]
2021 (remaining 3 months)	$ 19
2022	70
2023	63
2024	54
2025	42
Thereafter	31
Total lease payments	279
Less imputed interest	(11)
Total	$ 268

Severance and Related Charges - Narrative (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Aug. 01, 2021	May 02, 2021	Jan. 31, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020	Oct. 25, 2020
Restructuring Cost and Reserve [Line Items]
Provision for severance	$ 0			$ 0	$ 158	$ 0
Employee Severance
Restructuring Cost and Reserve [Line Items]
Provision for severance		$ 6	$ 152
Restructuring reserve	$ 23	$ 36	$ 147		$ 23		$ 0

Severance and Related Charges - Schedule of Severance Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Restructuring Cost and Reserve [Line Items]
Provision for severance	$ 0	$ 0	$ 158	$ 0
Display and Adjacent Markets
Restructuring Cost and Reserve [Line Items]
Provision for severance	0	0	8	0
Corporate and Other
Restructuring Cost and Reserve [Line Items]
Provision for severance	$ 0	$ 0	$ 150	$ 0

Severance and Related Charges - Schedule of changes in severance and related charges reserves (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Aug. 01, 2021	May 02, 2021	Jan. 31, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Restructuring Reserve [Roll Forward]
Provision for severance	$ 0			$ 0	$ 158	$ 0
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	36	$ 147	$ 0		0
Provision for severance		6	152
Consumption of reserves	(13)	(117)	(5)
Restructuring reserve, ending balance	$ 23	$ 36	$ 147		$ 23

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Changes in Components of AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 11,993	$ 9,024	$ 10,578	$ 8,214
Other comprehensive income (loss) before reclassifications			7	(90)
Amounts reclassified out of AOCI			0	(7)
Other comprehensive income (loss), net of tax	(2)	38	7	(97)
Ending Balance	12,060	9,569	12,060	9,569
Unrealized Gain (Loss) on Investments, Net
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			20	11
Other comprehensive income (loss) before reclassifications			(7)	19
Amounts reclassified out of AOCI			(4)	(6)
Other comprehensive income (loss), net of tax			(11)	13
Ending Balance	9	24	9	24
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(133)	(16)
Other comprehensive income (loss) before reclassifications			14	(109)
Amounts reclassified out of AOCI			4	(1)
Other comprehensive income (loss), net of tax			18	(110)
Ending Balance	(115)	(126)	(115)	(126)
Defined and Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(199)	(188)
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified out of AOCI			0	0
Other comprehensive income (loss), net of tax			0	0
Ending Balance	(199)	(188)	(199)	(188)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			13	13
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified out of AOCI			0	0
Other comprehensive income (loss), net of tax			0	0
Ending Balance	13	13	13	13
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(290)	(315)	(299)	(180)
Other comprehensive income (loss), net of tax	(2)	38	7	(97)
Ending Balance	$ (292)	$ (277)	$ (292)	$ (277)

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2021 $ / shares	Mar. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 $ / shares	Aug. 01, 2021 USD ($) $ / shares shares	Jul. 26, 2020 $ / shares	Aug. 01, 2021 USD ($) employee_stock_purchase_plan $ / shares shares	Jul. 26, 2020 USD ($) $ / shares shares	Sep. 01, 2021 shares	Mar. 11, 2021 shares	Feb. 28, 2018 USD ($)
Equity [Line Items]
Tax effects on the unrealized loss on derivative instruments qualifying as cash flow hedges \| $						$ 0	$ 32,000,000
Amount authorized by board of directors to repurchase shares \| $		$ 7,500,000,000								$ 6,000,000,000
Remaining authorized repurchase amount \| $				$ 6,500,000,000		$ 6,500,000,000
Dividends declared per share (in dollars per share) \| $ / shares	$ 0.24	$ 0.24	$ 0.22	$ 0.24	$ 0.22	$ 0.70	$ 0.65
Payments of dividends \| $						$ 622,000,000	$ 587,000,000
Employee Stock
Equity [Line Items]
Performance of total shareholder return						100.00%
Total unrecognized compensation expense \| $				$ 547,000,000		$ 547,000,000
Weighted average period for unrecognized compensation expense to be recognized (in years)						2 years 8 months 12 days
Performance Shares
Equity [Line Items]
Additional performance-based awards to be earned upon certain levels of achievement (in shares)				1.3		1.3
Award measurement metric relative weight						50.00%
Award measurement period						3 years
Performance Shares \| Executive Officers
Equity [Line Items]
Award measurement period						5 years
Performance Shares \| Minimum
Equity [Line Items]
Award vesting rights, percentage of target amount						0.00%
Performance Shares \| Minimum \| Executive Officers
Equity [Line Items]
Award vesting rights, percentage of target amount						0.00%
Performance Shares \| Maximum
Equity [Line Items]
Award vesting rights, percentage of target amount						200.00%
Performance Shares \| Maximum \| Executive Officers
Equity [Line Items]
Award vesting rights, percentage of target amount						200.00%
Employee Stock Incentive Plan
Equity [Line Items]
Increase in capital shares reserved for future issuance (in shares)									10.0
Number of shares available for grant (in shares)				35.0		35.0
Employee Stock Purchase Plan
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan						2
Shares issued under employee stock purchase plans (in shares)						2.0	2.0
Number of shares available for grant (in shares)				8.0		8.0
Employee stock purchase plan purchase period						6 months
Employee Stock Purchase Plan \| Forecast
Equity [Line Items]
Increase in capital shares reserved for future issuance (in shares)								11.3
Employee Stock Purchase Plan \| Employee Stock
Equity [Line Items]
Purchase price of common stock						85.00%
Employee Stock Purchase Plan \| United States
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan						1
Employee Stock Purchase Plan \| Non-US
Equity [Line Items]
Number of employee stock purchase plans \| employee_stock_purchase_plan						1

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Equity [Abstract]
Common stock repurchases (in shares)	11	4	17	11
Cost of stock repurchased	$ 1,500	$ 200	$ 2,250	$ 599
Average price paid per share (in dollars per share)	$ 133.40	$ 59.41	$ 134.03	$ 55.74

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 81	$ 70	$ 272	$ 234
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	28	24	93	79
Research, development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	30	27	101	89
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	11	8	34	27
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 12	$ 11	$ 44	$ 39

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units (Details) - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units shares in Millions	9 Months Ended
	Aug. 01, 2021 $ / shares shares
Restricted stock units, restricted stock, performance shares and performance units
Beginning balance (in shares) \| shares	15
Granted (in shares) \| shares	5
Vested (in shares) \| shares	(6)
Canceled (in shares) \| shares	(1)
Ending balance (in shares) \| shares	13
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share) \| $ / shares	$ 45.36
Granted (in dollars per share) \| $ / shares	90.64
Vested (in dollars per share) \| $ / shares	43.02
Canceled (in dollars per share) \| $ / shares	56.53
Ending balance (in dollars per share) \| $ / shares	$ 62.28

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Employee Stock Purchase Plan, Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.72%	1.40%
Expected volatility	44.60%	37.20%
Risk-free interest rate	0.05%	1.05%
Expected life (in years)	6 months	6 months
Weighted average estimated fair value (in dollars per share)	$ 18.34	$ 15.24

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate provision (as percent)	13.30%	19.10%	12.40%	14.90%
Valuation allowance		$ 44		$ 44

Warranty, Guarantees, Commitments and Contingencies - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 216	$ 199	$ 201	$ 196
Warranties issued	61	43	162	119
Change in reserves related to preexisting warranty	4	0	9	2
Consumption of reserves	(49)	(43)	(140)	(118)
Ending balance	$ 232	$ 199	$ 232	$ 199

Warranty, Guarantees, Commitments and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Aug. 01, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Standard product warranty period	12 months
Maximum potential amount of future payments for letters of credit or other guarantee instruments	$ 338
Parent guarantees to banks	$ 145

Industry Segment Operations - Additional Information (Details)	9 Months Ended
	Aug. 01, 2021 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Industry Segment Operations - Net Sales and Operating Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 6,196	$ 4,395	$ 16,940	$ 12,514
Operating Income (Loss)	2,013	1,108	4,875	3,082
Corporate and Other
Net sales and operating income (loss) for each reportable segment
Net Sales	25	20	100	46
Operating Income (Loss)	$ (264)	$ (206)	$ (1,025)	$ (576)
Semiconductor Systems \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Semiconductor Systems \| Foundry, logic and other \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	63.00%	55.00%	59.00%	60.00%
Semiconductor Systems \| Dynamic random-access memory (DRAM) \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	20.00%	22.00%	17.00%	19.00%
Semiconductor Systems \| Flash memory \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	17.00%	23.00%	24.00%	21.00%
Semiconductor Systems \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 4,454	$ 2,916	$ 11,979	$ 8,297
Operating Income (Loss)	1,785	958	4,588	2,655
Applied Global Services \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	1,286	1,034	3,644	3,049
Operating Income (Loss)	393	273	1,083	807
Display and Adjacent Markets \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	431	425	1,217	1,122
Operating Income (Loss)	$ 99	$ 83	$ 229	$ 196

Industry Segment Operations - Net Sales by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Segment Reporting Information [Line Items]
Net sales	$ 6,196	$ 4,395	$ 16,940	$ 12,514
Change	41.00%		35.00%
Asia Pacific
Segment Reporting Information [Line Items]
Net sales	$ 5,425	3,800	$ 14,809	10,813
Change	43.00%		37.00%
China
Segment Reporting Information [Line Items]
Net sales	$ 2,251	1,470	$ 5,478	3,880
Change	53.00%		41.00%
Korea
Segment Reporting Information [Line Items]
Net sales	$ 1,291	1,051	$ 4,008	2,312
Change	23.00%		73.00%
Taiwan
Segment Reporting Information [Line Items]
Net sales	$ 1,261	687	$ 3,502	3,081
Change	84.00%		14.00%
Japan
Segment Reporting Information [Line Items]
Net sales	$ 449	472	$ 1,349	1,290
Change	(5.00%)		5.00%
Southeast Asia
Segment Reporting Information [Line Items]
Net sales	$ 173	120	$ 472	250
Change	44.00%		89.00%
United States
Segment Reporting Information [Line Items]
Net sales	$ 533	399	$ 1,365	1,171
Change	34.00%		17.00%
Europe
Segment Reporting Information [Line Items]
Net sales	$ 238	$ 196	$ 766	$ 530
Change	21.00%		45.00%
Sales Revenue \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Sales Revenue \| Asia Pacific \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	87.00%	86.00%	87.00%	86.00%
Sales Revenue \| China \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	36.00%	33.00%	32.00%	31.00%
Sales Revenue \| Korea \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	21.00%	24.00%	23.00%	18.00%
Sales Revenue \| Taiwan \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	20.00%	16.00%	21.00%	25.00%
Sales Revenue \| Japan \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	7.00%	11.00%	8.00%	10.00%
Sales Revenue \| Southeast Asia \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	3.00%	2.00%	3.00%	2.00%
Sales Revenue \| United States \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	9.00%	9.00%	8.00%	10.00%
Sales Revenue \| Europe \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	4.00%	5.00%	5.00%	4.00%

Industry Segment Operations - Reconciliations of Total Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 01, 2021	Jul. 26, 2020	Aug. 01, 2021	Jul. 26, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	$ 6,196	$ 4,395	$ 16,940	$ 12,514
Share-based compensation	(81)	(70)	(272)	(234)
Severance and related charges	0	0	(158)	0
Deal termination fee	0	0	(154)	0
Income from operations	2,013	1,108	4,875	3,082
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	25	20	100	46
Unallocated cost of products sold and expenses	(208)	(156)	(549)	(388)
Share-based compensation	(81)	(70)	(272)	(234)
Severance and related charges	0	0	(150)	0
Deal termination fee	0	0	(154)	0
Income from operations	$ (264)	$ (206)	$ (1,025)	$ (576)

- 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=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

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

+ Details

Industry Segment Operations - Percentage by Customer (Details) - Customer Concentration Risk - Sales Revenue	9 Months Ended
	Aug. 01, 2021
Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	16.00%
Samsung Electronics Co., Ltd.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	23.00%