0000006951-22-000043 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Oct. 30, 2022	Dec. 09, 2022	May 01, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Oct. 30, 2022
Current Fiscal Year End Date	--10-30
Document Transition Report	false
Entity File Number	000-06920
Entity Registrant Name	APPLIED MATERIALS INC /DE
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-1655526
Entity Address, Address Line One	3050 Bowers Avenue
Entity Address, Address Line Two	P.O. Box 58039
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95052-8039
City Area Code	408
Local Phone Number	727-5555
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	AMAT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 95,725,229,751
Entity Common Stock, Shares Outstanding		844,139,722
Documents Incorporated by Reference	Portions of Part III will be provided in accordance with Instruction G(3) to Form 10-K no later than February 27, 2023.
Entity Central Index Key	0000006951
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information	12 Months Ended
Audit Information	Oct. 30, 2022
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Santa Clara, California
Auditor Firm ID	185

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Income Statement [Abstract]
Net sales	$ 25,785	$ 23,063	$ 17,202
Cost of products sold	13,792	12,149	9,510
Gross profit	11,993	10,914	7,692
Operating expenses:
Research, development and engineering	2,771	2,485	2,234
Marketing and selling	703	609	526
General and administrative	735	620	567
Severance and related charges	(4)	157	0
Deal termination fee	0	154	0
Total operating expenses	4,205	4,025	3,327
Income from operations	7,788	6,889	4,365
Interest expense	228	236	240
Interest and other income, net	39	118	41
Income before income taxes	7,599	6,771	4,166
Provision for income taxes	1,074	883	547
Net income	$ 6,525	$ 5,888	$ 3,619
Earnings per share:
Basic (in dollars per share)	$ 7.49	$ 6.47	$ 3.95
Diluted (in dollars per share)	$ 7.44	$ 6.40	$ 3.92
Weighted average number of shares:
Basic (in shares)	871	910	916
Diluted (in shares)	877	919	923

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 6,525	$ 5,888	$ 3,619
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments	(74)	(21)	9
Change in unrealized net loss on derivative instruments	51	30	(117)
Change in defined and postretirement benefit plans	81	30	(11)
Other comprehensive income (loss), net of tax	58	39	(119)
Comprehensive income	$ 6,583	$ 5,927	$ 3,500

- 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 Balance Sheets - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,995	$ 4,995
Short-term investments	586	464
Accounts receivable, net	6,068	4,953
Inventories	5,932	4,309
Other current assets	1,344	1,386
Total current assets	15,925	16,107
Long-term investments	1,980	2,055
Property, plant and equipment, net	2,307	1,934
Goodwill	3,700	3,479
Purchased technology and other intangible assets, net	339	104
Deferred income taxes and other assets	2,475	2,146
Total assets	26,726	25,825
Current liabilities:
Accounts payable and accrued expenses	4,237	4,268
Contract liabilities	3,142	2,076
Total current liabilities	7,379	6,344
Long-term debt	5,457	5,452
Income taxes payable	964	1,090
Other liabilities	732	692
Total liabilities	14,532	13,578
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock: $0.01 par value per share; 1 shares authorized; no shares issued	0	0
Common stock: $0.01 par value per share; 2,500 shares authorized; 844 and 892 shares outstanding at 2022 and 2021, respectively	8	9
Additional paid-in capital	8,593	8,247
Retained earnings	37,892	32,246
Treasury stock: 1,173 and 1,119 shares at 2022 and 2021, respectively	(34,097)	(27,995)
Accumulated other comprehensive loss	(202)	(260)
Total stockholders’ equity	12,194	12,247
Total liabilities and stockholders’ equity	$ 26,726	$ 25,825

Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 30, 2022	Oct. 31, 2021
Stockholders’ equity:
Preferred stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, shares outstanding	844,000,000	892,000,000
Treasury stock, shares	1,173,000,000	1,119,000,000

Consolidated 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
Beginning balance, treasury stock (in shares) at Oct. 27, 2019					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	3,619			3,619
Other comprehensive loss, net of tax	(119)					(119)
Dividends declared	(796)			(796)
Share-based compensation	307		307
Issuance under stock plans (in shares)		10
Issuance under stock plans	$ 2		2
Common stock repurchases, (in shares)	(12)	(12)			(12)
Common stock repurchases	$ (649)	$ 0			$ (649)
Ending Balance (in shares) at Oct. 25, 2020		914
Ending balance, treasury stock (in shares) at Oct. 25, 2020					1,091
Ending Balance at Oct. 25, 2020	10,578	$ 9	7,904	27,209	$ (24,245)	(299)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,888			5,888
Other comprehensive loss, net of tax	39					39
Dividends declared	(851)			(851)
Share-based compensation	346		346
Issuance under stock plans (in shares)		6
Issuance under stock plans	$ (3)		(3)
Common stock repurchases, (in shares)	(28)	(28)			(28)
Common stock repurchases	$ (3,750)	$ 0			$ (3,750)
Ending Balance (in shares) at Oct. 31, 2021		892
Ending balance, treasury stock (in shares) at Oct. 31, 2021					1,119
Ending Balance at Oct. 31, 2021	12,247	$ 9	8,247	32,246	$ (27,995)	(260)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,525			6,525
Other comprehensive loss, net of tax	58					58
Dividends declared	(879)			(879)
Share-based compensation	413		413
Issuance under stock plans (in shares)		6
Issuance under stock plans	$ (67)		(67)
Common stock repurchases, (in shares)	(54)	(54)			(54)
Common stock repurchases	$ (6,103)	$ (1)			$ (6,102)
Ending Balance (in shares) at Oct. 30, 2022		844
Ending balance, treasury stock (in shares) at Oct. 30, 2022					1,173
Ending Balance at Oct. 30, 2022	$ 12,194	$ 8	$ 8,593	$ 37,892	$ (34,097)	$ (202)

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended												12 Months Ended
	Oct. 30, 2022	Jul. 31, 2022	May 01, 2022	Jan. 30, 2022	Oct. 31, 2021	Aug. 01, 2021	May 02, 2021	Jan. 31, 2021	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividend declared (usd per share)	$ 0.26	$ 0.26	$ 0.26	$ 0.24	$ 0.24	$ 0.24	$ 0.24	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.21	$ 1.02	$ 0.94	$ 0.87

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Cash flows from operating activities:
Net income	$ 6,525	$ 5,888	$ 3,619
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	444	394	376
Severance and related charges	(4)	148	0
Deferred income taxes	(223)	80	80
Other	36	(70)	60
Share-based compensation	413	346	307
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable	(1,109)	(1,989)	(427)
Inventories	(1,590)	(405)	(421)
Other current and non-current assets	(16)	(602)	(161)
Accounts payable and accrued expenses	390	465	327
Contract liabilities	1,039	755	(16)
Income taxes payable	(541)	396	(10)
Other liabilities	35	36	70
Cash provided by operating activities	5,399	5,442	3,804
Cash flows from investing activities:
Capital expenditures	(787)	(668)	(422)
Cash paid for acquisitions, net of cash acquired	(441)	(12)	(107)
Proceeds from sales and maturities of investments	1,363	1,471	1,754
Purchases of investments	(1,492)	(2,007)	(1,355)
Cash used in investing activities	(1,357)	(1,216)	(130)
Cash flows from financing activities:
Debt borrowings, net of issuance costs	0	0	2,979
Debt repayments	0	0	(2,882)
Proceeds from common stock issuances	199	175	174
Common stock repurchases	(6,103)	(3,750)	(649)
Tax withholding payments for vested equity awards	(266)	(178)	(172)
Payments of dividends to stockholders	(873)	(838)	(787)
Cash used in financing activities	(7,043)	(4,591)	(1,337)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents	(3,001)	(365)	2,337
Cash, cash equivalents and restricted cash equivalents — beginning of period	5,101	5,466	3,129
Cash, cash equivalents and restricted cash equivalents — end of period	2,100	5,101	5,466
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	1,995	4,995	5,351
Restricted cash equivalents included in deferred income taxes and other assets	105	106	115
Total cash, cash equivalents, and restricted cash equivalents	2,100	5,101	5,466
Supplemental cash flow information:
Cash payments for income taxes	1,869	851	542
Cash refunds from income taxes	156	27	68
Cash payments for interest	$ 205	$ 205	$ 219

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Oct. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (Applied or the Company) after elimination of intercompany balances and transactions. All references to a fiscal year apply to Applied’s fiscal year which ends on the last Sunday in October. Fiscal 2022, 2021 and 2020 contained 52, 53 and 52 weeks, respectively. Each fiscal quarter of 2022 and 2020 contained 13 weeks. The first fiscal quarter of 2021 contained 14 weeks, while the second, third and fourth quarters of fiscal 2021 contained 13 weeks. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of October 30, 2022, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available. Cash Equivalents All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds. Investments All of Applied’s investments, except equity investments, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded in the Consolidated Balance Sheets at fair value, and unrealized gains and losses, net of tax, is reported as a separate component of other comprehensive income. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations. 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. Privately-held equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable prices changes are recorded in the Consolidated Statements of Operations. Allowance for Credit Losses Applied maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues Applied has identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to Applied or its payment trends, may require Applied to further adjust its estimates of the recoverability of amounts due to Applied. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Applied adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Applied fully writes down inventories and noncancelable purchase orders for inventory deemed obsolete. Applied performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by Applied, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 3 to 5 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Intangible Assets Goodwill and indefinite-lived assets are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Purchased technology and other intangible assets are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method. Long-Lived Assets Applied reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets or asset group may not be recoverable. Applied assesses these assets for impairment based on estimated future cash flows from these assets. Revenue Recognition from Contracts with Customers Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps: (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Semiconductor Systems and Display and Adjacent Markets segments and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. Shipping and Handling Costs Applied accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net sales and costs as a component of cost of products sold. Warranty Applied provides for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Applied’s warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from Applied’s estimates, revisions to the estimated warranty liability would be required. Applied also sells extended warranty contracts to its customers which provide an extension of the standard warranty coverage period of up to 2 years. Applied receives payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty. Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Consolidated Statements of Operations. Research, Development and Engineering Costs Research, development and engineering costs are expensed as incurred. Income Taxes Applied recognizes a current tax liability for the estimated amount of income tax payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Applied recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Any changes in judgment related to uncertain tax positions are recognized in Applied’s provision for income taxes in the quarter in which such change occurs. Interest and penalties related to uncertain tax positions are recognized in Applied’s provision for income taxes. Derivative Financial Instruments Applied uses financial instruments, such as foreign currency forward and option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. In certain cases, Applied also uses interest rate swap or lock agreements to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. The terms of derivative financial instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied’s derivative financial instruments are recorded as assets or liabilities at fair value and reported at gross on its Consolidated Balance Sheets. However, under master netting agreements in place with its counterparties, Applied may net settle transactions of the same currency under certain circumstances. For derivative instruments designated and qualifying as cash flow hedges, the gain or loss is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. Any portion excluded from the assessment of effectiveness is recognized in the same line as the hedged transaction but may be recognized in a different manner, e.g. amortized. If a hedged transaction becomes probable of not occurring according to the original strategy, the hedge relationship is discontinued and the gain or loss on the associated derivative is recorded promptly in earnings. For hedges of existing foreign currency denominated assets or liabilities, the gain or loss is recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged. Foreign Currency As of October 30, 2022, all of Applied’s subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are remeasured using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are remeasured using historical exchange rates. Foreign currency-denominated revenues and costs are remeasured using average exchange rates for the period, except for costs related to the non-monetary assets and liabilities, which are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in interest and other income, net in the Consolidated Statements of Operations as incurred. Concentrations of Credit Risk Financial instruments that potentially subject Applied to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. Applied invests in a variety of financial instruments, such as, but not limited to, commercial paper, corporate and municipal bonds, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. Applied is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments, but does not expect any counterparties to fail to meet their obligations. Applied performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral to secure accounts receivable. Applied maintains an allowance for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. Applied regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, Applied utilizes deposits and/or letters of credit to mitigate credit risk when considered appropriate. Recent Accounting Pronouncements Accounting Standards Adopted Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standard Board (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. Applied adopted this authoritative guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2025, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the FASB issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2024, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Earnings Per Share

12 Months Ended

Oct. 30, 2022

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.


Fiscal Year	2022		2021		2020

	(In millions, except per share amounts)
Numerator:
Net income	$	6,525	$	5,888	$	3,619
Denominator:
Weighted average common shares outstanding	871		910		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	6		9		7
Denominator for diluted earnings per share	877		919		923
Basic earnings per share	$	7.49	$	6.47	$	3.95
Diluted earnings per share	$	7.44	$	6.40	$	3.92
Potentially weighted dilutive securities	3		—		—

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

12 Months Ended

Oct. 30, 2022

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Investments

Summary of Cash, Cash Equivalents and Investments

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


October 30, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,199	$	—	$	—	$	1,199
Cash equivalents:
Money market funds	660		—		—		660
U.S. Treasury and agency securities	4		—		—		4

Municipal securities	13		—		—		13
Commercial paper, corporate bonds and medium-term notes	119		—		—		119

Total Cash equivalents	796		—		—		796
Total Cash and Cash equivalents	$	1,995	$	—	$	—	$	1,995
Short-term and long-term investments:
Bank certificate of deposit	$	7	$	—	$	—	$	7
U.S. Treasury and agency securities	435		—		13		422
Non-U.S. government securities*	7		—		1		6
Municipal securities	389		—		16		373
Commercial paper, corporate bonds and medium-term notes	595		—		21		574
Asset-backed and mortgage-backed securities	432		—		19		413
Total fixed income securities	1,865		—		70		1,795
Publicly traded equity securities	85		63		26		122
Equity investments in privately-held companies	567		86		4		649
Total equity investments	652		149		30		771
Total short-term and long-term investments	$	2,517	$	149	$	100	$	2,566
Total Cash, Cash equivalents and Investments	$	4,512	$	149	$	100	$	4,561

_________________________

* Includes Canadian provincial government debt


October 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,407	$	—	$	—	$	1,407
Cash equivalents:
Money market funds	3,556		—		—		3,556


Municipal securities	22		—		—		22
Commercial paper, corporate bonds and medium-term notes	10		—		—		10
Total Cash equivalents	3,588		—		—		3,588
Total Cash and Cash equivalents	$	4,995	$	—	$	—	$	4,995
Short-term and long-term investments:
U.S. Treasury and agency securities	$	314	$	—	$	—	$	314
Non-U.S. government securities*	5		—		—		5
Municipal securities	367		3		1		369
Commercial paper, corporate bonds and medium-term notes	587		2		2		587
Asset-backed and mortgage-backed securities	555		3		1		557
Total fixed income securities	1,828		8		4		1,832
Publicly traded equity securities	22		39		3		58
Equity investments in privately-held companies	561		82		14		629
Total equity investments	583		121		17		687
Total short-term and long-term investments	$	2,411	$	129	$	21	$	2,519
Total Cash, Cash equivalents and Investments	$	7,406	$	129	$	21	$	7,514

________________________

*Includes Canadian provincial government debt.

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments at October 30, 2022:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	538	$	531
Due after one through five years	888		844
Due after five years	7		7
No single maturity date**	1,084		1,184
Total	$	2,517	$	2,566

_________________________

** 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

At October 30, 2022, 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 fiscal 2022, 2021 and 2020, gross realized gains and losses related to Applied’s debt investment portfolio investments were not material.

During fiscal 2022 and 2021, 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 at October 25, 2020 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities for fiscal 2020. During fiscal 2022, 2021 and 2020, impairment charges on equity investments in privately-held companies were not material. These impairment charges are included in interest and other income, net in the Consolidated Statement of Operations.

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


	2022		2021		2020

	(In millions)
Publicly traded equity securities
Unrealized gain	$	30	$	14	$	14
Unrealized loss	(62)		(11)		(17)
Realized gain on sales	7		2		1

Equity investments in privately-held companies
Unrealized gain	41		65		18
Unrealized loss	(5)		(12)		(7)
Realized gain on sales	3		48		8
Realized loss on sales or impairment	(7)		(7)		(8)
Total gain (loss) on equity investments, net	$	7	$	99	$	9

Fair Value Measurements

12 Months Ended

Oct. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

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

Fair Value Hierarchy

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

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

•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Applied’s investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 30, 2022, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs.

Applied’s equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations.

Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments.

Assets Measured at Fair Value on a Recurring Basis

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


	October 30, 2022				October 31, 2021
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	765	$	—	$	765	$	3,662	$	—	$	3,662
Bank certificate of deposit	—		7		7		—		—		—
U.S. Treasury and agency securities	404		22		426		296		18		314
Non-U.S. government securities	—		6		6		—		5		5
Municipal securities	—		386		386		—		391		391
Commercial paper, corporate bonds and medium-term notes	—		693		693		—		597		597
Asset-backed and mortgage-backed securities	—		413		413		—		557		557
Total available-for-sale debt security investments	$	1,169	$	1,527	$	2,696	$	3,958	$	1,568	$	5,526
Equity investments with readily determinable values

Publicly traded equity securities	$	122	$	—	$	122	$	58	$	—	$	58
Total equity investments with readily determinable values	$	122	$	—	$	122	$	58	$	—	$	58
Total	$	1,291	$	1,527	$	2,818	$	4,016	$	1,568	$	5,584

_________________________

* Amounts as of October 30, 2022 and October 31, 2021 include $105 million and $106 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Condensed Balance Sheets.

Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 30, 2022 or October 31, 2021.

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 classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred.

During fiscal 2022, 2021 and 2020, impairment charges on equity investments in privately-held companies were not material.

Other

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At October 30, 2022, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion, and the estimated fair value was $4.8 billion. At October 31, 2021, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $6.4 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 10 of the Notes to the Consolidated Financial Statements for further detail of existing debt.

- Definition

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

+ References + Details

Derivative Instruments and Hedging Activities

12 Months Ended

Oct. 30, 2022

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 foreign currency forward and 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 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 accounting 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 at October 30, 2022 is expected to be reclassified into earnings within 12 months. Changes in fair value caused by changes in time value of option contracts designated as cash flow hedges 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 probable not 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 probable of not occurring by the end of the originally specified time period was not significant for fiscal years 2022, 2021 or 2020.

Foreign currency forward contracts are generally used to hedge certain foreign currency denominated assets or liabilities. 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.

As of October 30, 2022 and October 31, 2021, the total outstanding notional amounts of foreign exchange contracts were both $2.1 billion. The fair values of foreign exchange derivative instruments at October 30, 2022 and October 31, 2021 were not material.

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


	Derivatives in Cash Flow Hedging Relationships
	2022		2021		2020
	(In millions)
Foreign exchange contracts	$	128	$	36	$	3
Interest rate contracts	—		—		(151)
Total	$	128	$	36	$	(148)

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


			Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations
	(In millions)
2022
Foreign Exchange Contracts:
Net Sales	$	25,785	$	100	$	—
Cost of products sold	$	13,792	(12)		—
Research, development and engineering	$	2,771	(7)		(1)
Marketing and selling	$	703	(3)		—
General and administrative	$	735	(3)		—
Interest Rate Contracts:
Interest expense	$	228	(13)		—
			$	62	$	(1)

2021
Foreign Exchange Contracts:
Net Sales	$	23,063	$	4	$	—
Cost of products sold	$	12,149	2		(2)
Research, development and engineering	$	2,485	3		—

General and administrative	$	620	1		—
Interest Rate Contracts:
Interest expense	$	236	(13)		—
			$	(3)	$	(2)

2020
Foreign Exchange Contracts:
Net Sales	$	17,202	$	(2)	$	4
Cost of products sold	$	9,510	6		(3)
Research, development and engineering	$	2,234	4		—

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


		Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations
	Location of Gain or (Loss) Recognized in Consolidated Statement of Operations	2022		2021		2020

		(In millions)
Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Interest and other income, net	$	67	$	29	$	(10)
Total return swaps - deferred compensation	Cost of products sold	(3)		3		1
Total return swaps - deferred compensation	Operating expenses	(29)		29		6
Total return swaps - deferred compensation	Interest and other income, net	(2)		(1)		(1)
Total		$	33	$	60	$	(4)

Credit Risk Contingent Features

If Applied’s credit rating were to fall below investment grade, it would be in violation of credit risk contingent provisions of the derivative instruments discussed above, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was immaterial as of October 30, 2022 and October 31, 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

12 Months Ended

Oct. 30, 2022

Receivables [Abstract]

Accounts Receivable, Net

Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable 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 $1.0 billion, $1.3 billion and $1.2 billion of accounts receivable during fiscal 2022, 2021 and 2020, respectively. Applied did not discount letters of credit issued by customers in fiscal 2022 and 2021. Applied discounted letters of credit issued by customers of $105 million in fiscal 2020. There was no discounting of promissory notes in each of fiscal 2022, 2021 and 2020. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Statements of Operations and were not material for all years presented.

Accounts receivable are presented net of allowance for credit losses of $29 million at October 30, 2022 and October 31, 2021. Changes in allowance for credit losses in each fiscal year were as follows:


	2022		2021		2020

	(In millions)
Beginning balance	$	29	$	30	$	30
Provision	—		—		—
Deductions1	—		(1)		—
Ending balance	$	29	$	29	$	30

_____________________________

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

Applied sells its products principally to manufacturers within the semiconductor and display industries. While Applied believes that its allowance for credit losses is adequate and represents its best estimate as of October 30, 2022, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Contract Balances

12 Months Ended

Oct. 30, 2022

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 Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized.

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


	October 30, 2022		October 31, 2021
	(In millions)

Contract assets	$	173	$	201
Contract liabilities	$	3,142	$	2,076

The decrease in contract assets during fiscal 2022, was primarily due to an increase in unsatisfied performance obligations related to goods transferred to customers where payment was conditional upon technical sign off.

During fiscal 2022, Applied recognized revenue of approximately $1.9 billion related to contract liabilities at October 31, 2021. This reduction in contract liabilities was offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of October 30, 2022.

There were no credit losses recognized on Applied’s accounts receivables and contract assets during fiscal 2022 and 2021.

As of October 30, 2022, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $4.8 billion, of which approximately 28% is expected to be recognized within 12 months and the remainder is expected to be recognized within the following 24 months thereafter.

New export rules and regulations issued in December 2022 are expected to reduce remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more by approximately $944 million, none of which was expected to be recognized within 12 months.

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

- 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 https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Balance Sheet Detail

12 Months Ended

Oct. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Detail


	October 30, 2022		October 31, 2021

	(In millions)
Inventories
Customer service spares	$	1,409	$	1,251
Raw materials	1,807		1,136
Work-in-process	1,029		873
Finished goods	1,687		1,049
	$	5,932	$	4,309

Included in finished goods inventory are $704 million at October 30, 2022 and $325 million at October 31, 2021 of systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1, of which $45 million at October 30, 2022 and $58 million at October 31, 2021 is related to newly-introduced systems. Finished goods inventory includes $422 million and $380 million of evaluation inventory at October 30, 2022 and October 31, 2021, respectively.


	October 30, 2022		October 31, 2021

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	461	$	593
Prepaid expenses and other	883		793
	$	1,344	$	1,386


	Useful Life	October 30, 2022		October 31, 2021

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	387	$	334
Buildings and improvements	3-30	2,027		1,780
Demonstration and manufacturing equipment	3-5	2,083		1,820
Furniture, fixtures and other equipment	3-5	743		720
Construction in progress		389		326
Gross property, plant and equipment		5,629		4,980
Accumulated depreciation		(3,322)		(3,046)
		$	2,307	$	1,934

Depreciation expense was $404 million, $345 million and $320 million for fiscal 2022, 2021 and 2020 respectively.


	October 30, 2022		October 31, 2021

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,395	$	1,623
Operating lease right-of-use assets	389		294
Income tax receivables and other assets	691		229
	$	2,475	$	2,146


	October 30, 2022		October 31, 2021

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,755	$	1,472

Compensation and employee benefits	905		924

Warranty	286		242
Dividends payable	220		214
Income taxes payable	319		734
Other accrued taxes	30		24
Interest payable	39		39
Operating lease liabilities, current	85		73

Other	598		546
	$	4,237	$	4,268


	October 30, 2022		October 31, 2021

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	107	$	193
Operating lease liabilities, non-current	287		228
Other	338		271
	$	732	$	692

Goodwill, Purchased Technology and Other Intangible Assets

12 Months Ended

Oct. 30, 2022

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 it 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 over its fair value.

As of October 30, 2022, Applied’s reporting units include Semiconductor Products Group and Imaging and Process Control Group, which combine to form the Semiconductor Systems reporting segment, Applied Global Services, Display and Adjacent Markets and other reporting units recorded under Corporate and Other.

In the fourth quarter of fiscal 2022, Applied performed a qualitative assessment to test goodwill for all of its reporting units for impairment. Applied determined that it was more likely than not that each of its reporting units’ fair values exceeded their respective carrying values and that it was not necessary to perform the quantitative goodwill impairment test for any of its reporting units. The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time.

Details of goodwill and indefinite-lived intangible assets as of:


	October 30, 2022						October 31, 2021
	Goodwill		Indefinite-lived Intangible Assets		Total		Goodwill		Indefinite-lived Intangible Assets		Total

	(In millions)
Semiconductor Systems	$	2,428	$	16	$	2,444	$	2,207	$	—	$	2,207
Applied Global Services	1,032		—		1,032		1,032		—		1,032
Display and Adjacent Markets	199		—		199		199		—		199
Corporate and Other	41		1		42		41		—		41
Carrying amount	$	3,700	$	17	$	3,717	$	3,479	$	—	$	3,479

From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During fiscal 2022, goodwill and indefinite-lived intangible assets increased by $221 million and $17 million, respectively, primarily due to the preliminary purchase accounting for acquisitions during the third quarter of fiscal 2022, which were not material to Applied’s results of operations.

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


	October 30, 2022		October 31, 2021

	(In millions)
Purchased technology, net	$	256	$	46
Intangible assets - finite-lived, net	66		58
Intangible assets - indefinite-lived	17		—
Total	$	339	$	104

The increase in purchased technology and intangible assets during fiscal 2022 was primarily due to the preliminary purchase accounting for acquisitions during the third quarter of fiscal 2022, which were not material to Applied’s results of operations.

Intangible assets that are not subject to amortization consist primarily of in-process technology, which will be subject to amortization upon commercialization. If an in-process technology project is abandoned, the acquired technology attributable to the project will be written-off.

Finite-Lived Purchased Intangible Assets

Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years.

Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach.

Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.

Details of finite-lived intangible assets were as follows:


	October 30, 2022						October 31, 2021
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,707	$	278	$	1,985	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	158		36		194		163		38		201
Corporate and Other	18		18		36		13		16		29
Gross carrying amount	$	1,918	$	376	$	2,294	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,461)	$	(214)	$	(1,675)	$	(1,446)	$	(203)	$	(1,649)
Applied Global Services	(33)		(44)		(77)		(32)		(44)		(76)
Display and Adjacent Markets	(158)		(36)		(194)		(161)		(38)		(199)
Corporate and Other	(10)		(16)		(26)		(2)		(11)		(13)
Accumulated amortization	$	(1,662)	$	(310)	$	(1,972)	$	(1,641)	$	(296)	$	(1,937)
Carrying amount	$	256	$	66	$	322	$	46	$	58	$	104

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


	2022		2021		2020

	(In millions)
Semiconductor Systems	$	31	$	41	$	40
Applied Global Services	1		1		1
Display and Adjacent Markets	2		5		13
Corporate and Other	6		2		2
Total	$	40	$	49	$	56

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


	2022		2021		2020

	(In millions)
Cost of products sold	$	27	$	29	$	37
Research, development and engineering	—		1		1
Marketing and selling	13		19		18

Total	$	40	$	49	$	56

As of October 30, 2022, future estimated amortization expense of intangible assets with finite lives is expected to be as follows:


	Amortization Expense
	(In millions)
2023	$	42
2024	39
2025	37
2026	37
2027	24
Thereafter	143
Total	$	322

Borrowing Facilities and Debt

12 Months Ended

Oct. 30, 2022

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. In July 2022, Applied entered into an amendment to the Revolving Credit Agreement which replaced the London interbank offered rate (LIBOR) as a reference rate for borrowings with the secured overnight financing rate (SOFR).

No amounts were outstanding under the Revolving Credit Agreement as of October 30, 2022 and October 31, 2021.

In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $54 million in aggregate at any time. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. As of October 30, 2022 and October 31, 2021, no amounts were outstanding under these revolving credit facilities.

Short-term Commercial Paper

Applied has a short-term commercial paper program under which Applied may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. At October 30, 2022 and October 31, 2021, Applied did not have any commercial paper outstanding. Subsequent to the end of fiscal 2022, Applied issued $200 million of short-term commercial paper with a weighted-average interest rate of 4.30% and maturities ranging from 43 days to 71 days.

Senior Unsecured Notes

Debt outstanding as of October 30, 2022 and October 31, 2021 was as follows:


	Principal Amount
	October 30, 2022		October 31, 2021		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	(12)		(14)
Total unamortized debt issuance costs	(31)		(34)
Total long-term debt	$	5,457	$	5,452

- 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
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-Name Accounting Standards Codification
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+ Details

Leases

12 Months Ended

Oct. 30, 2022

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:


	2022			2021			2020
	(In millions, except percentage)
Operating lease cost	$	93		$	79		$	69
Weighted-average remaining lease term (in years)	6.3			5.1			5.2
Weighted-average discount rate	2.5		%	1.7		%	1.8		%

Supplemental cash flow information related to leases are as follows:


	2022		2021		2020
	(In millions)
Operating cash flows paid for operating leases	$	107	$	79	$	70
Right-of-use assets obtained in exchange for operating lease liabilities	$	204	$	123	$	156

As of October 30, 2022, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2023	$	93
2024	84
2025	65
2026	34
2027	26
Thereafter	105
Total lease payments	407
Less imputed interest	(35)
Total	$	372

Severance and Related Charges

12 Months Ended

Oct. 30, 2022

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 fiscal 2022 and 2021, Applied recorded an adjustment of $4 million and recognized a total expense of $157 million, of severance and related charges, respectively, in connection with the Fiscal 2021 Severance Plan.

Severance and related charges and adjustments by segment were as follows:


	2022		2021
	(In millions)
Display and Adjacent Markets	$	—	$	8
Corporate and Other	(4)		149
Total	$	(4)	$	157

Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above were as follows:


	Severance and Related Charges Reserves

	(In millions)
Balance as of October 25, 2020	$	—
Provision for severance	158
Adjustment to provision for severance	(1)
Consumption of reserves	(140)
Balance as of October 31, 2021	17
Adjustment to provision for severance	(4)
Consumption of reserves	(13)
Balance as of October 30, 2022	$	—

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

12 Months Ended

Oct. 30, 2022

Equity [Abstract]

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

Stockholders’ Equity, Comprehensive Income and Share-Based Compensation

Accumulated Other Comprehensive Income (Loss)

Changes in the components of accumulated other comprehensive income (AOCI), net of tax, were as follows:


	Unrealized Gain (Loss) on Investments, Net		Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges		Defined and Postretirement Benefit Plans		Cumulative Translation Adjustments		Total
	(In millions)
Balance at October 27, 2019	$	11	$	(16)	$	(188)	$	13	(180)


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


Other comprehensive income (loss) before reclassifications	(14)		28		20		—		34
Amounts reclassified out of AOCI	(7)		2		10		—		5
Other comprehensive income, net of tax	(21)		30		30		—		39
Balance at October 31, 2021	$	(1)	$	(103)	$	(169)	$	13	$	(260)


Other comprehensive income (loss) before reclassifications	(60)		100		71		—		111
Amounts reclassified out of AOCI	(14)		(49)		10		—		(53)
Other comprehensive income (loss), net of tax	(74)		51		81		—		58
Balance at October 30, 2022	$	(75)	$	(52)	$	(88)	$	13	$	(202)

The tax effects on net income of amounts reclassified from AOCI for the fiscal years 2022, 2021 and 2020 were $36 million, $19 million and $35 million, respectively.

Stock Repurchase Program

In March 2022, Applied’s Board of Directors approved a common stock repurchase program authorizing $6.0 billion in repurchases, which supplemented the previously existing $7.5 billion authorization approved in March 2021. At October 30, 2022, approximately $4.9 billion remained available for future stock repurchases under the repurchase program.

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


	2022		2021		2020

	(In millions, except per share amounts)
Shares of common stock repurchased	54		28		12
Cost of stock repurchased	$	6,103	$	3,750	$	649
Average price paid per share	$	113.84	$	134.03	$	56.32

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

Dividends

During fiscal 2022, Applied’s Board of Directors declared one quarterly cash dividend of $0.24 per share and three quarterly cash dividends of $0.26 per share. During fiscal 2021, Applied’s Board of Directors declared one quarterly cash dividend of $0.22 per share and three quarterly cash dividends of $0.24 per share. During fiscal 2020, Applied’s Board of Directors declared one quarterly cash dividend of $0.21 per share and three quarterly cash dividends of $0.22 per share. Dividends paid during fiscal 2022, 2021 and 2020 amounted to $873 million, $838 million and $787 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. In addition, Applied has an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase Applied common stock.

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


	2022		2021		2020

	(In millions)
Cost of products sold	$	147	$	118	$	103
Research, development, and engineering	151		129		116
Marketing and selling	49		43		36
General and administrative	66		56		52

Total share-based compensation	$	413	$	346	$	307

Income tax benefits recognized	$	51	$	43	$	39

The cost associated with share-based awards is recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. Applied calculates estimated forfeiture rate on an annual basis, based on historical forfeiture activities. Share-based awards granted to certain members of senior management allow for 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 performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal.

At October 30, 2022, Applied had $678 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under the ESPP, which will be recognized over a weighted average period of 2.6 years. At October 30, 2022, there were 31 million shares available for grant of share-based awards under the ESIP, and an additional 14 million shares available for issuance under the ESPP.

Stock Options

Stock options are rights to purchase, at future dates, shares of Applied common stock. The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Options typically vest over three to four years, subject to the grantee’s continued service with Applied through the scheduled vesting date, and expire no later than seven years from the grant date. There were no stock options granted during fiscal 2022, 2021 and 2020. There were no outstanding stock options at the end of fiscal 2022.

Restricted Stock Units, Restricted Stock, Performance Share Units and Performance Units

Restricted stock units are converted into shares of Applied common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of Applied common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance share units and performance units are awards that result in a payment to a grantee, generally in shares of Applied common stock on a one-for-one basis, if performance goals, market goals and/or other vesting criteria are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance share units and performance units typically vest over three to four years and vesting is usually subject to the grantee’s continued service with Applied and, in some cases, achievement of specified performance and/or market goals. The compensation expense related to share-based awards subject solely to time-based vesting requirements (Service-Based Awards) is determined using the market value of Applied common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of Applied common stock is calculated using the closing price of Applied common stock on the date of grant or if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. The compensation expense is recognized over the vesting period.

During fiscal 2022, 2021 and 2020, certain members of senior management were granted awards that are subject to the achievement of certain levels of specified performance and/or market goals, in addition to time-based vesting requirements (Performance Based-Awards).

Certain of Performance-Based Awards are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor’s 500 Index. Each of these two metrics will be weighted 50% and will be measured over a three-year period. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial payout based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement.

During 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 a 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 Performance-Based Awards subject to targeted levels of adjusted operating margin is estimated on the date of grant based on the market value of Applied common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of Applied common stock is calculated using the closing price of Applied common stock on the date of the grant or if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. 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 Performance-Based 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.

The following tables summarize the assumptions used for the valuation of share-based awards for the periods presented:


	2022	2021	2020
Service-Based Awards and the portion of Performance-Based Awards subject to performance goals:
Grant date market value	$74.62 - $157.29	$74.37 - $143.05	$39.18 - $66.43
Risk-free interest rate	0.16% - 4.48%	0.04% - 0.82%	0.11% - 1.70%
Dividend yield	0.47% - 3.83%	0.20% - 3.09%	1.69% - 6.23%
Fair value	$72.24 - $154.88	$72.20 - $140.66	$37.02 - $64.37


	2022		2021*	2020
Portion of Performance-Based Awards subject to market goals:
Grant date market value	$146.49		$86.10 - $88.84	$55.84
Risk-free interest rate	0.87	%	0.20% - 0.41%	1.59	%
Dividend yield	0.66	%	0.99% - 1.02%	1.50	%
Expected volatility	47.35	%	40.51% - 47.00%	34.96	%
Fair value	$210.69		$129.27 - $136.81	$74.00

________________________

*Fiscal 2021 included both annual and non-recurring long-term Performance-Based Awards.

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


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

	(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2019	18	$	35.78	2.1 years	$	985
Granted	6	$	53.89
Vested	(8)	$	31.25
Canceled	(1)	$	42.61
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2020	15	$	45.36	2.2 years	$	914
Granted	5	$	92.04
Vested	(6)	$	43.11
Canceled	(1)	$	59.41
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 31, 2021	13	$	63.29	2.2 years	$	1,752
Granted	4	$	132.44
Vested	(5)	$	54.00
Canceled	(1)	$	82.54
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 30, 2022	11	$	92.31	2.2 years	$	1,024
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest	11	$	90.78	2.0 years	$	997

At October 30, 2022, 0.9 million additional Performance-Based Awards could be earned based upon achievement of certain levels of specified performance and/or market goals.

Employee Stock Purchase Plans

Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Applied’s purchasing cycle began in March and September of each of fiscal 2022, 2021 and 2020. Applied issued 2 million shares in fiscal 2022 at a weighted average price of $93.30 per share, 3 million shares in fiscal 2021 at a weighted average price of $70.29 per share and 3 million shares in fiscal 2020 at a weighted average price of $45.37 per share, under the ESPP. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:


	2022		2021		2020
ESPP:
Dividend yield	0.97	%	0.72	%	1.41	%
Expected volatility	46.8	%	41.3	%	48.2	%
Risk-free interest rate	2.24	%	0.05	%	0.58	%
Expected life (in years)	0.5		0.5		0.5
Weighted average estimated fair value	$30.23		$33.77		$17.30

Employee Benefit Plans

12 Months Ended

Oct. 30, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Bonus Plans

Applied has various employee bonus plans. A discretionary bonus plan provides for the distribution of a percentage of pre-tax income to Applied employees who are not participants in other performance-based incentive plans, up to a maximum percentage of eligible compensation. Other plans provide for bonuses to Applied’s executives and other key contributors based on the achievement of profitability and/or other specified performance criteria. Charges under these plans for fiscal 2022, 2021 and 2020 were $623 million, $631 million and $471 million, respectively.

Employee Savings and Retirement Plan

Applied’s Employee Savings and Retirement Plan (the 401(k) Plan) is qualified under Sections 401(a) and (k) of the Internal Revenue Code (the Code). Eligible employees may make salary deferral and catch-up contributions under the 401(k) Plan on a pre-tax basis and on a Roth basis, subject to an annual dollar limit established by the Code. Applied matches 100% of participant salary and/or Roth deferral contributions up to the first 3% of eligible contribution and then 50% of every dollar between 4% and 6% of eligible contribution. Applied does not make matching contributions on any catch-up contributions made by participants. Plan participants who were employed by Applied or any of its affiliates became 100% vested in their Applied matching contribution account balances. Applied’s matching contributions under the 401(k) Plan were approximately $67 million for fiscal 2022, $61 million for fiscal 2021 and $52 million for fiscal 2020.

Defined Benefit Pension Plans of Foreign Subsidiaries and Other Postretirement Benefits

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

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


	2022		2021		2020

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	685	$	674	$	617
Service cost	14		15		13
Interest cost	9		8		8
Plan participants’ contributions	1		1		1
Actuarial (gain) loss	(201)		(1)		6

Foreign currency exchange rate changes	(84)		3		33
Benefits paid	(10)		(15)		(10)
Plan amendments and other adjustments	—		—		6
Ending projected benefit obligation	$	414	$	685	$	674
Ending accumulated benefit obligation	$	371	$	626	$	627
Range of assumptions to determine benefit obligations
Discount rate	1.5% - 7.3%		0.6% - 6.6%		0.4% - 6.5%
Rate of compensation increase	2.7% - 10.0%		2.4% - 10.0%		2.3% - 10.0%
Change in plan assets
Beginning fair value of plan assets	$	491	$	431	$	409
Return on plan assets	(78)		49		—
Employer contributions	11		22		12
Plan participants’ contributions	1		1		1
Foreign currency exchange rate changes	(64)		3		19

Benefits paid	(10)		(15)		(10)
Ending fair value of plan assets	$	351	$	491	$	431
Funded status	$	(63)	$	(194)	$	(243)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	45	$	1	$	—
Current liability	(1)		(2)		(2)
Noncurrent liability	(107)		(193)		(241)
Total	$	(63)	$	(194)	$	(243)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	4	$	11	$	14
Prior service credit	—		—		—
Total	$	4	$	11	$	14
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	98	$	200	$	242
Prior service credit	1		1		—
Total	$	99	$	201	$	242
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	126	$	472	$	674
Fair value of plan assets	$	17	$	277	$	431
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	88	$	413	$	627
Fair value of plan assets	$	17	$	277	$	431


	2022		2021
Plan assets — allocation
Equity securities	26	%	35	%
Debt securities	37	%	33	%
Insurance contracts	21	%	23	%
Other investments	15	%	9	%
Cash	1	%	—	%

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


	October 30, 2022								October 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	84	$	—	$	—	$	84	$	137	$	—	$	—	$	137
Debt securities	56		—		—		56		79		—		—		79
Insurance contracts	—		—		72		72		—		—		110		110
Other investments	—		52		—		52		—		17		—		17
Cash	3		—		—		3		2		—		—		2
Total assets at fair value	$	143	$	52	$	72	267		$	218	$	17	$	110	345
Assets measured at net asset value							84								146
Total							$	351							$	491

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


	2022		2021

	(In millions)
Balance, beginning of year	$	110	$	39
Actual return on plan assets:
Relating to assets still held at reporting date	(24)		—
Purchases, sales, settlements, net	—		72
Currency impact	(14)		(1)
Balance, end of year	$	72	$	110

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

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


	2022			2021			2020

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	14		$	15		$	13
Interest cost	9			8			8
Expected return on plan assets	(21)			(21)			(22)
Amortization of actuarial loss and prior service credit	10			14			12

Net periodic benefit cost	$	12		$	16		$	11
Weighted average assumptions
Discount rate	1.41		%	1.18		%	1.23		%
Expected long-term return on assets	4.56		%	4.80		%	5.10		%
Rate of compensation increase	2.89		%	2.74		%	2.69		%

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

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


	Benefit Payments
	(In millions)
2023	$	8
2024	13
2025	13
2026	13
2027	14
2028-2032	94
Total	$	155

Company contributions to these plans for fiscal 2023 are expected to be approximately $6 million.

Executive Deferred Compensation Plans

Applied sponsors two unfunded deferred compensation plans, the Executive Deferred Compensation Plan (Predecessor EDCP) and the 2016 Deferred Compensation Plan (2016 DCP) (formerly known as the 2005 Executive Deferred Compensation Plan), under which certain employees may elect to defer a portion of their following year’s eligible earnings. The Predecessor EDCP was frozen as of December 31, 2004 such that no new deferrals could be made under the plan after that date and the plan would qualify for “grandfather” relief under Section 409A of the Code. The Predecessor EDCP participant accounts continue to be maintained under the plan and credited with deemed interest. The 2016 DCP was originally implemented by Applied effective as of January 1, 2005, and amended and restated as of October 12, 2015, and is intended to comply with the requirements of Section 409A of the Code. In addition, Applied also sponsors a non-qualified deferred compensation plan as a result of the acquisition of Varian. Amounts payable for all plans, including accrued deemed interest, totaled $200 million and $206 million at October 30, 2022 and October 31, 2021, respectively, which were included in other liabilities in the Consolidated Balance Sheets.

Income Taxes

12 Months Ended

Oct. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

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


	2022		2021		2020

	(In millions)
U.S.	$	1,171	$	512	$	92
Foreign	6,428		6,259		4,074
	$	7,599	$	6,771	$	4,166

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


	2022		2021		2020

	(In millions)
Current:
U.S.	$	590	$	462	$	196
Foreign	275		344		263
State	14		17		20
	879		823		479
Deferred:
U.S.	(62)		(3)		(3)
Foreign	265		67		76
State	(8)		(4)		(5)
	195		60		68
	$	1,074	$	883	$	547

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


	2022		2021		2020
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%

Effect of foreign operations taxed at various rates	(4.4)		(7.0)		(5.9)
Changes in prior years’ unrecognized tax benefits	(0.9)		0.2		0.5
Resolutions of prior years’ income tax filings	(0.2)		(0.1)		(1.0)
Research and other tax credits	(1.0)		(0.9)		(1.3)




Other	(0.4)		(0.2)		(0.2)
	14.1	%	13.0	%	13.1	%

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 vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings.

Applied’s effective tax rate for fiscal 2022 was higher than fiscal 2021 primarily due to a reduction of deferred tax assets related to a new tax incentive in Singapore, partially offset by changes in uncertain tax positions. Applied’s effective tax rate for fiscal 2021 was slightly lower than fiscal 2020 primarily due to higher proportion of pre-tax income in lower tax jurisdictions, partially offset by resolutions of prior years’ income tax filings.

In the reconciliation between the statutory U.S. federal income tax rate and the effective income tax rate, the effect of foreign operations taxed at various rates represents the difference between an income tax provision at the U.S. federal statutory income tax rate and the recorded income tax provision, with the difference expressed as a percentage of worldwide income before income taxes. This effect is substantially related to the tax effect of pre-tax income in jurisdictions with lower statutory tax rates. The foreign operations with the most significant effective tax rate impact are in Singapore. The statutory tax rate for fiscal 2022 for Singapore is 17%. Applied has been granted conditional reduced tax rates that expire beginning in fiscal 2025, excluding potential renewal and subject to certain conditions with which Applied expects to comply. The tax benefits arising from these tax rates were $232 million or $0.26 per diluted share and $370 million or $0.40 per diluted share and $215 million or $0.23 per diluted share for fiscal 2022, 2021 and 2020, respectively.

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


	October 30, 2022		October 31, 2021

	(In millions)
Deferred tax assets:
Allowance for doubtful accounts	$	5	$	4
Inventory reserves and basis difference	131		112
Installation and warranty reserves	29		29
Intangible assets	984		1,281
Accrued liabilities	35		31

Deferred revenue	82		25

Tax credits	453		369
Deferred compensation	125		133
Share-based compensation	42		34

Lease liability	81		61
Other	67		89
Gross deferred tax assets	2,034		2,168
Valuation allowance	(460)		(361)
Total deferred tax assets	1,574		1,807
Deferred tax liabilities:
Fixed assets	(111)		(93)
Right of use assets	(80)		(62)

Undistributed foreign earnings	(39)		(37)


Total deferred tax liabilities	(230)		(192)
Net deferred tax assets	$	1,344	$	1,615

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


	2022		2021		2020

	(In millions)
Beginning balance	$	361	$	314	$	257
Increases	99		47		57

Ending balance	$	460	$	361	$	314

At October 30, 2022, Applied has state research and development tax credit carryforwards of $453 million, including $427 million of credits that are carried over until exhausted and $23 million that are carried over for 15 years and begin to expire in fiscal 2031. It is more likely than not that all tax credit carryforwards, net of valuation allowance, will be utilized.

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


	2022		2021		2020

	(In millions)
Beginning balance of gross unrecognized tax benefits	$	537	$	496	$	845

Settlements with tax authorities	(25)		—		(446)
Lapses of statutes of limitation	—		(4)		(3)
Increases in tax positions for current year	26		26		44
Increases in tax positions for prior years	28		23		91
Decreases in tax positions for prior years	(68)		(4)		(35)
Ending balance of gross unrecognized tax benefits	$	498	$	537	$	496

In fiscal 2020, Applied settled tax audits in Singapore related to fiscal 2012 through fiscal 2019 for additional tax payments of $72 million and a reduction of future tax deductions of $374 million. The tax expense impact of these settlements was $26 million.

Tax expense for interest and penalties on unrecognized tax benefits for fiscal 2022, 2021 and 2020 was $14 million, $14 million and $24 million, respectively. The income tax liability for interest and penalties for fiscal 2022, 2021 and 2020 was $103 million, $88 million and $74 million, respectively, and was classified as non-current income taxes payable.

Included in the balance of unrecognized tax benefits for fiscal 2022, 2021 and 2020 are $388 million, $442 million, and $410 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate.

Applied’s tax returns remain subject to examination by taxing authorities. These include U.S. returns for fiscal 2015 and later years, and foreign tax returns for fiscal 2011 and later years.

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Warranty, Guarantees, Commitments and Contingencies

12 Months Ended

Oct. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Warranty, Guarantees, Commitments and Contingencies

Warranty

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


	2022		2021		2020

	(In millions)
Beginning balance	$	242	$	201	$	196
Provisions for warranty	254		223		165
Changes in reserves related to preexisting warranty	11		9		2
Consumption of reserves	(221)		(191)		(162)
Ending balance	$	286	$	242	$	201

Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales.

Guarantees

In the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either Applied or its subsidiaries. As of October 30, 2022, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $618 million. Applied has not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements.

Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of October 30, 2022, Applied has provided parent guarantees to banks for approximately $294 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, regulatory investigations or inquires, 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 at this time that any will have a material effect on its consolidated financial condition or results of operations.

Industry Segment Operations

12 Months Ended

Oct. 30, 2022

Segment Reporting [Abstract]

Industry Segment Operations

Applied’s three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, Applied’s chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Applied’s management organization structure as of October 30, 2022 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 other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells.

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.

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


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

	(In millions)
2022:
Semiconductor Systems	$	18,797	$	6,969	$	203	$	249	$	4,924	$	3,995
Applied Global Services	5,543		1,661		31		38		997		1,788
Display and Adjacent Markets	1,331		260		31		30		148		129
Corporate and Other	114		(1,102)		179		470		(1)		20
Total	$	25,785	$	7,788	$	444	$	787	$	6,068	$	5,932
2021:
Semiconductor Systems	$	16,286	$	6,311	$	194	$	228	$	3,886	$	2,586
Applied Global Services	5,013		1,508		32		29		922		1,561
Display and Adjacent Markets	1,634		314		27		32		207		153
Corporate and Other	130		(1,244)		141		379		(62)		9
Total	$	23,063	$	6,889	$	394	$	668	$	4,953	$	4,309
2020:
Semiconductor Systems	$	11,367	$	3,714	$	219	$	226	$	2,061	$	2,139
Applied Global Services	4,155		1,127		34		30		764		1,545
Display and Adjacent Markets	1,607		291		31		29		179		195
Corporate and Other	73		(767)		92		137		(41)		25
Total	$	17,202	$	4,365	$	376	$	422	$	2,963	$	3,904

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 fiscal 2021 included severance and related charges as discussed in Note 12, Severance and Related Charges and a $154 million deal termination fee associated with the termination of a Share Purchase Agreement with Kokusai Electric Corporation and KKR HKE Investment L. P. during the second quarter of fiscal 2021.

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


	2022		2021		2020
Foundry, logic and other	66	%	60	%	59	%
Dynamic random-access memory (DRAM)	19	%	19	%	20	%
Flash memory	15	%	21	%	21	%

	100	%	100	%	100	%

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


	2022		2021		2020

	(In millions)
Unallocated net sales	$	114	$	130	$	73
Unallocated cost of products sold and expenses	(807)		(725)		(533)
Share-based compensation	(413)		(346)		(307)
Severance and related charges	4		(149)		—
Deal termination fee	—		(154)		—
Total	$	(1,102)	$	(1,244)	$	(767)

For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped. Long-lived assets consist primarily of property, plant and equipment and right-of-use assets and are attributed to the geographic location in which they are located. Fiscal 2021 long-lived asset amount has been updated to include right-of-use assets to conform with the current year presentation. Net sales and long-lived assets by geographic region for and as of each fiscal year were as follows:


	2022		2021		2020

	(In millions)
Net sales:
United States	$	3,104	$	2,038	$	1,619
China	7,254		7,535		5,456
Korea	4,395		5,012		3,031
Taiwan	6,262		4,742		3,953
Japan	2,012		1,962		1,996
Europe	1,674		1,097		736
Southeast Asia	1,084		677		411
Total outside United States	22,681		21,025		15,583
Consolidated total	$	25,785	$	23,063	$	17,202


	October 30, 2022		October 31, 2021

	(In millions)
Long-lived assets:
United States	$	2,725	$	2,241
China	6		10
Korea	14		16
Taiwan	62		62
Japan	7		9
Europe	75		25
Southeast Asia	8		18
Total outside United States	172		140
Consolidated total	$	2,897	$	2,381

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


	2022		2021		2020
Samsung Electronics Co., Ltd.	12	%	20	%	18	%
Taiwan Semiconductor Manufacturing Company Limited	20	%	15	%	18	%

Intel Corporation	10	%	*		*

___________________________

* Less than 10%

- Definition

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

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+ Details

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Oct. 30, 2022
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (Applied or the Company) after elimination of intercompany balances and transactions. All references to a fiscal year apply to Applied’s fiscal year which ends on the last Sunday in October. Fiscal 2022, 2021 and 2020 contained 52, 53 and 52 weeks, respectively. Each fiscal quarter of 2022 and 2020 contained 13 weeks. The first fiscal quarter of 2021 contained 14 weeks, while the second, third and fourth quarters of fiscal 2021 contained 13 weeks.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of October 30, 2022, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available.
Cash Equivalents	Cash Equivalents All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds.
Investments	Investments All of Applied’s investments, except equity investments, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded in the Consolidated Balance Sheets at fair value, and unrealized gains and losses, net of tax, is reported as a separate component of other comprehensive income. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations. 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. Privately-held equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable prices changes are recorded in the Consolidated Statements of Operations.
Allowance for Credit Losses	Allowance for Credit Losses Applied maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues Applied has identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to Applied or its payment trends, may require Applied to further adjust its estimates of the recoverability of amounts due to Applied. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Applied adjusts inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. Applied fully writes down inventories and noncancelable purchase orders for inventory deemed obsolete. Applied performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by Applied, additional inventory adjustments may be required.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 3 to 5 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term.
Intangible Assets	Intangible Assets Goodwill and indefinite-lived assets are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Purchased technology and other intangible assets are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method.
Long-Lived Assets	Long-Lived Assets Applied reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets or asset group may not be recoverable. Applied assesses these assets for impairment based on estimated future cash flows from these assets.
Revenue from Contract with Customer	Revenue Recognition from Contracts with Customers Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps: (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Semiconductor Systems and Display and Adjacent Markets segments and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. Shipping and Handling Costs Applied accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net sales and costs as a component of cost of products sold.
Warranty	Warranty Applied provides for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Applied’s warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from Applied’s estimates, revisions to the estimated warranty liability would be required. Applied also sells extended warranty contracts to its customers which provide an extension of the standard warranty coverage period of up to 2 years. Applied receives payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty.
Sales and Value Added Taxes	Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Consolidated Statements of Operations.
Research, Development and Engineering Costs	Research, Development and Engineering Costs Research, development and engineering costs are expensed as incurred.
Income Taxes	Income Taxes Applied recognizes a current tax liability for the estimated amount of income tax payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Applied recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Any changes in judgment related to uncertain tax positions are recognized in Applied’s provision for income taxes in the quarter in which such change occurs. Interest and penalties related to uncertain tax positions are recognized in Applied’s provision for income taxes.
Derivative Financial Instruments	Derivative Financial InstrumentsApplied uses financial instruments, such as foreign currency forward and option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. In certain cases, Applied also uses interest rate swap or lock agreements to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. The terms of derivative financial instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied’s derivative financial instruments are recorded as assets or liabilities at fair value and reported at gross on its Consolidated Balance Sheets. However, under master netting agreements in place with its counterparties, Applied may net settle transactions of the same currency under certain circumstances. For derivative instruments designated and qualifying as cash flow hedges, the gain or loss is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. Any portion excluded from the assessment of effectiveness is recognized in the same line as the hedged transaction but may be recognized in a different manner, e.g. amortized. If a hedged transaction becomes probable of not occurring according to the original strategy, the hedge relationship is discontinued and the gain or loss on the associated derivative is recorded promptly in earnings. For hedges of existing foreign currency denominated assets or liabilities, the gain or loss is recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged.
Foreign Currency	Foreign Currency As of October 30, 2022, all of Applied’s subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are remeasured using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are remeasured using historical exchange rates. Foreign currency-denominated revenues and costs are remeasured using average exchange rates for the period, except for costs related to the non-monetary assets and liabilities, which are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in interest and other income, net in the Consolidated Statements of Operations as incurred.
Concentrations of Credit Risk	Concentrations of Credit RiskFinancial instruments that potentially subject Applied to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. Applied invests in a variety of financial instruments, such as, but not limited to, commercial paper, corporate and municipal bonds, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. Applied is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments, but does not expect any counterparties to fail to meet their obligations. Applied performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral to secure accounts receivable. Applied maintains an allowance for potentially uncollectible accounts receivable based on its assessment of the collectability of accounts receivable. Applied regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, Applied utilizes deposits and/or letters of credit to mitigate credit risk when considered appropriate.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Adopted Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standard Board (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. Applied adopted this authoritative guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2025, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the FASB issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2024, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.
Investment Impairment	Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment 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 fiscal 2022, 2021 and 2020, gross realized gains and losses related to Applied’s debt investment portfolio investments were not material.
Fair Value Measurements	Fair Value Measurements Applied’s financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 — Quoted prices in active markets for identical assets or liabilities; •Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 30, 2022, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments.
Equity Securities without Readily Determinable Fair Value	Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring BasisApplied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred.
Derivative Financial Instruments	Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, Israeli shekel, euro and Taiwanese dollar. Applied uses derivative financial instruments, such as foreign currency forward and 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 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 accounting 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 at October 30, 2022 is expected to be reclassified into earnings within 12 months. Changes in fair value caused by changes in time value of option contracts designated as cash flow hedges 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 probable not 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 probable of not occurring by the end of the originally specified time period was not significant for fiscal years 2022, 2021 or 2020.
Contract Assets and Liabilities	Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Applied’s contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized.
Goodwill and Purchased Intangible Assets	Goodwill and Purchased Intangible Assets Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. 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 it 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 over its fair value. The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time.
Leases	A contract contains a lease when Applied has the right to control the use of an identified asset for a period of time in exchange for consideration. Applied leases certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Applied’s leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, Applied uses the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Applied elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, Applied elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due.
Finite-Lived Purchased Intangible Assets	Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.
Treasury Stock	Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.
Share-based Compensation	The cost associated with share-based awards is recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. Applied calculates estimated forfeiture rate on an annual basis, based on historical forfeiture activities. Share-based awards granted to certain members of senior management allow for 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 performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal.
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)

12 Months Ended

Oct. 30, 2022

Earnings Per Share [Abstract]

Schedule of earnings per share


Fiscal Year	2022		2021		2020

	(In millions, except per share amounts)
Numerator:
Net income	$	6,525	$	5,888	$	3,619
Denominator:
Weighted average common shares outstanding	871		910		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	6		9		7
Denominator for diluted earnings per share	877		919		923
Basic earnings per share	$	7.49	$	6.47	$	3.95
Diluted earnings per share	$	7.44	$	6.40	$	3.92
Potentially weighted dilutive securities	3		—		—

Cash, Cash Equivalents and Investments (Tables)

12 Months Ended

Oct. 30, 2022

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

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


October 30, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,199	$	—	$	—	$	1,199
Cash equivalents:
Money market funds	660		—		—		660
U.S. Treasury and agency securities	4		—		—		4

Municipal securities	13		—		—		13
Commercial paper, corporate bonds and medium-term notes	119		—		—		119

Total Cash equivalents	796		—		—		796
Total Cash and Cash equivalents	$	1,995	$	—	$	—	$	1,995
Short-term and long-term investments:
Bank certificate of deposit	$	7	$	—	$	—	$	7
U.S. Treasury and agency securities	435		—		13		422
Non-U.S. government securities*	7		—		1		6
Municipal securities	389		—		16		373
Commercial paper, corporate bonds and medium-term notes	595		—		21		574
Asset-backed and mortgage-backed securities	432		—		19		413
Total fixed income securities	1,865		—		70		1,795
Publicly traded equity securities	85		63		26		122
Equity investments in privately-held companies	567		86		4		649
Total equity investments	652		149		30		771
Total short-term and long-term investments	$	2,517	$	149	$	100	$	2,566
Total Cash, Cash equivalents and Investments	$	4,512	$	149	$	100	$	4,561

_________________________

* Includes Canadian provincial government debt


October 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In millions)
Cash	$	1,407	$	—	$	—	$	1,407
Cash equivalents:
Money market funds	3,556		—		—		3,556


Municipal securities	22		—		—		22
Commercial paper, corporate bonds and medium-term notes	10		—		—		10
Total Cash equivalents	3,588		—		—		3,588
Total Cash and Cash equivalents	$	4,995	$	—	$	—	$	4,995
Short-term and long-term investments:
U.S. Treasury and agency securities	$	314	$	—	$	—	$	314
Non-U.S. government securities*	5		—		—		5
Municipal securities	367		3		1		369
Commercial paper, corporate bonds and medium-term notes	587		2		2		587
Asset-backed and mortgage-backed securities	555		3		1		557
Total fixed income securities	1,828		8		4		1,832
Publicly traded equity securities	22		39		3		58
Equity investments in privately-held companies	561		82		14		629
Total equity investments	583		121		17		687
Total short-term and long-term investments	$	2,411	$	129	$	21	$	2,519
Total Cash, Cash equivalents and Investments	$	7,406	$	129	$	21	$	7,514

________________________

*Includes Canadian provincial government debt.

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments at October 30, 2022:


	Cost		Estimated Fair Value

	(In millions)
Due in one year or less	$	538	$	531
Due after one through five years	888		844
Due after five years	7		7
No single maturity date**	1,084		1,184
Total	$	2,517	$	2,566

_________________________

** 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 each fiscal year were as follows:


	2022		2021		2020

	(In millions)
Publicly traded equity securities
Unrealized gain	$	30	$	14	$	14
Unrealized loss	(62)		(11)		(17)
Realized gain on sales	7		2		1

Equity investments in privately-held companies
Unrealized gain	41		65		18
Unrealized loss	(5)		(12)		(7)
Realized gain on sales	3		48		8
Realized loss on sales or impairment	(7)		(7)		(8)
Total gain (loss) on equity investments, net	$	7	$	99	$	9

Fair Value Measurements (Tables)

12 Months Ended

Oct. 30, 2022

Fair Value Disclosures [Abstract]

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

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


	October 30, 2022				October 31, 2021
	Level 1		Level 2		Total		Level 1		Level 2		Total

	(In millions)
Assets:
Available-for-sale debt security investments
Money market funds*	$	765	$	—	$	765	$	3,662	$	—	$	3,662
Bank certificate of deposit	—		7		7		—		—		—
U.S. Treasury and agency securities	404		22		426		296		18		314
Non-U.S. government securities	—		6		6		—		5		5
Municipal securities	—		386		386		—		391		391
Commercial paper, corporate bonds and medium-term notes	—		693		693		—		597		597
Asset-backed and mortgage-backed securities	—		413		413		—		557		557
Total available-for-sale debt security investments	$	1,169	$	1,527	$	2,696	$	3,958	$	1,568	$	5,526
Equity investments with readily determinable values

Publicly traded equity securities	$	122	$	—	$	122	$	58	$	—	$	58
Total equity investments with readily determinable values	$	122	$	—	$	122	$	58	$	—	$	58
Total	$	1,291	$	1,527	$	2,818	$	4,016	$	1,568	$	5,584

_________________________

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Oct. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

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


	Derivatives in Cash Flow Hedging Relationships
	2022		2021		2020
	(In millions)
Foreign exchange contracts	$	128	$	36	$	3
Interest rate contracts	—		—		(151)
Total	$	128	$	36	$	(148)

Effect of derivative instruments on the consolidated statement of operations

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


			Derivatives in Cash Flow Hedging Relationships
	Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded		Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations		Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations
	(In millions)
2022
Foreign Exchange Contracts:
Net Sales	$	25,785	$	100	$	—
Cost of products sold	$	13,792	(12)		—
Research, development and engineering	$	2,771	(7)		(1)
Marketing and selling	$	703	(3)		—
General and administrative	$	735	(3)		—
Interest Rate Contracts:
Interest expense	$	228	(13)		—
			$	62	$	(1)

2021
Foreign Exchange Contracts:
Net Sales	$	23,063	$	4	$	—
Cost of products sold	$	12,149	2		(2)
Research, development and engineering	$	2,485	3		—

General and administrative	$	620	1		—
Interest Rate Contracts:
Interest expense	$	236	(13)		—
			$	(3)	$	(2)

2020
Foreign Exchange Contracts:
Net Sales	$	17,202	$	(2)	$	4
Cost of products sold	$	9,510	6		(3)
Research, development and engineering	$	2,234	4		—

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

Derivatives not designated as hedging instruments in statement of operations


		Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations
	Location of Gain or (Loss) Recognized in Consolidated Statement of Operations	2022		2021		2020

		(In millions)
Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Interest and other income, net	$	67	$	29	$	(10)
Total return swaps - deferred compensation	Cost of products sold	(3)		3		1
Total return swaps - deferred compensation	Operating expenses	(29)		29		6
Total return swaps - deferred compensation	Interest and other income, net	(2)		(1)		(1)
Total		$	33	$	60	$	(4)

- 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
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-Paragraph 4B
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+ Details

Accounts Receivable, Net (Tables)

12 Months Ended

Oct. 30, 2022

Receivables [Abstract]

Changes in allowance for doubtful accounts

Changes in allowance for credit losses in each fiscal year were as follows:


	2022		2021		2020

	(In millions)
Beginning balance	$	29	$	30	$	30
Provision	—		—		—
Deductions1	—		(1)		—
Ending balance	$	29	$	29	$	30

_____________________________

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

Contract Balances (Tables)

12 Months Ended

Oct. 30, 2022

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

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


	October 30, 2022		October 31, 2021
	(In millions)

Contract assets	$	173	$	201
Contract liabilities	$	3,142	$	2,076

Balance Sheet Detail (Tables)

12 Months Ended

Oct. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories


	October 30, 2022		October 31, 2021

	(In millions)
Inventories
Customer service spares	$	1,409	$	1,251
Raw materials	1,807		1,136
Work-in-process	1,029		873
Finished goods	1,687		1,049
	$	5,932	$	4,309

Other current assets


	October 30, 2022		October 31, 2021

	(In millions)
Other Current Assets


Prepaid income taxes and income taxes receivable	$	461	$	593
Prepaid expenses and other	883		793
	$	1,344	$	1,386

Property, plant and equipment, net


	Useful Life	October 30, 2022		October 31, 2021

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	387	$	334
Buildings and improvements	3-30	2,027		1,780
Demonstration and manufacturing equipment	3-5	2,083		1,820
Furniture, fixtures and other equipment	3-5	743		720
Construction in progress		389		326
Gross property, plant and equipment		5,629		4,980
Accumulated depreciation		(3,322)		(3,046)
		$	2,307	$	1,934

Deferred income taxes and other assets


	October 30, 2022		October 31, 2021

	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,395	$	1,623
Operating lease right-of-use assets	389		294
Income tax receivables and other assets	691		229
	$	2,475	$	2,146

Accounts payable and accrued expenses


	October 30, 2022		October 31, 2021

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,755	$	1,472

Compensation and employee benefits	905		924

Warranty	286		242
Dividends payable	220		214
Income taxes payable	319		734
Other accrued taxes	30		24
Interest payable	39		39
Operating lease liabilities, current	85		73

Other	598		546
	$	4,237	$	4,268

Other liabilities


	October 30, 2022		October 31, 2021

	(In millions)
Other Liabilities


Defined and postretirement benefit plans	$	107	$	193
Operating lease liabilities, non-current	287		228
Other	338		271
	$	732	$	692

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

12 Months Ended

Oct. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Details of goodwill and indefinite-lived intangible assets as of:


	October 30, 2022						October 31, 2021
	Goodwill		Indefinite-lived Intangible Assets		Total		Goodwill		Indefinite-lived Intangible Assets		Total

	(In millions)
Semiconductor Systems	$	2,428	$	16	$	2,444	$	2,207	$	—	$	2,207
Applied Global Services	1,032		—		1,032		1,032		—		1,032
Display and Adjacent Markets	199		—		199		199		—		199
Corporate and Other	41		1		42		41		—		41
Carrying amount	$	3,700	$	17	$	3,717	$	3,479	$	—	$	3,479

Summary of purchased technology and intangible assets

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


	October 30, 2022		October 31, 2021

	(In millions)
Purchased technology, net	$	256	$	46
Intangible assets - finite-lived, net	66		58
Intangible assets - indefinite-lived	17		—
Total	$	339	$	104

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:


	October 30, 2022						October 31, 2021
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total

	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,707	$	278	$	1,985	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	158		36		194		163		38		201
Corporate and Other	18		18		36		13		16		29
Gross carrying amount	$	1,918	$	376	$	2,294	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,461)	$	(214)	$	(1,675)	$	(1,446)	$	(203)	$	(1,649)
Applied Global Services	(33)		(44)		(77)		(32)		(44)		(76)
Display and Adjacent Markets	(158)		(36)		(194)		(161)		(38)		(199)
Corporate and Other	(10)		(16)		(26)		(2)		(11)		(13)
Accumulated amortization	$	(1,662)	$	(310)	$	(1,972)	$	(1,641)	$	(296)	$	(1,937)
Carrying amount	$	256	$	66	$	322	$	46	$	58	$	104

Summary of amortization expense

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


	2022		2021		2020

	(In millions)
Semiconductor Systems	$	31	$	41	$	40
Applied Global Services	1		1		1
Display and Adjacent Markets	2		5		13
Corporate and Other	6		2		2
Total	$	40	$	49	$	56

Schedule of categories amortization expense was charged to

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


	2022		2021		2020

	(In millions)
Cost of products sold	$	27	$	29	$	37
Research, development and engineering	—		1		1
Marketing and selling	13		19		18

Total	$	40	$	49	$	56

Future estimated amortization expense

As of October 30, 2022, future estimated amortization expense of intangible assets with finite lives is expected to be as follows:


	Amortization Expense
	(In millions)
2023	$	42
2024	39
2025	37
2026	37
2027	24
Thereafter	143
Total	$	322

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

Borrowing Facilities and Debt (Tables)

12 Months Ended

Oct. 30, 2022

Debt Disclosure [Abstract]

Debt Outstanding

Debt outstanding as of October 30, 2022 and October 31, 2021 was as follows:


	Principal Amount
	October 30, 2022		October 31, 2021		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	(12)		(14)
Total unamortized debt issuance costs	(31)		(34)
Total long-term debt	$	5,457	$	5,452

- 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)

12 Months Ended

Oct. 30, 2022

Leases [Abstract]

Lease, Cost

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


	2022			2021			2020
	(In millions, except percentage)
Operating lease cost	$	93		$	79		$	69
Weighted-average remaining lease term (in years)	6.3			5.1			5.2
Weighted-average discount rate	2.5		%	1.7		%	1.8		%

Supplemental cash flow information related to leases are as follows:


	2022		2021		2020
	(In millions)
Operating cash flows paid for operating leases	$	107	$	79	$	70
Right-of-use assets obtained in exchange for operating lease liabilities	$	204	$	123	$	156

Operating Lease, Liability, Maturity

As of October 30, 2022, the maturities of lease liabilities are as follows:


	Operating Leases
Fiscal	(In millions)
2023	$	93
2024	84
2025	65
2026	34
2027	26
Thereafter	105
Total lease payments	407
Less imputed interest	(35)
Total	$	372

Severance and Related Charges (Tables)

12 Months Ended

Oct. 30, 2022

Restructuring and Related Activities [Abstract]

Schedule of Severance and Related Charges by Segment

Severance and related charges and adjustments by segment were as follows:


	2022		2021
	(In millions)
Display and Adjacent Markets	$	—	$	8
Corporate and Other	(4)		149
Total	$	(4)	$	157

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 were as follows:


	Severance and Related Charges Reserves

	(In millions)
Balance as of October 25, 2020	$	—
Provision for severance	158
Adjustment to provision for severance	(1)
Consumption of reserves	(140)
Balance as of October 31, 2021	17
Adjustment to provision for severance	(4)
Consumption of reserves	(13)
Balance as of October 30, 2022	$	—

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

12 Months Ended

Oct. 30, 2022

Equity [Abstract]

Components of accumulated other comprehensive income, net of tax

Changes in the components of accumulated other comprehensive income (AOCI), net of tax, were as follows:


	Unrealized Gain (Loss) on Investments, Net		Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges		Defined and Postretirement Benefit Plans		Cumulative Translation Adjustments		Total
	(In millions)
Balance at October 27, 2019	$	11	$	(16)	$	(188)	$	13	(180)


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


Other comprehensive income (loss) before reclassifications	(14)		28		20		—		34
Amounts reclassified out of AOCI	(7)		2		10		—		5
Other comprehensive income, net of tax	(21)		30		30		—		39
Balance at October 31, 2021	$	(1)	$	(103)	$	(169)	$	13	$	(260)


Other comprehensive income (loss) before reclassifications	(60)		100		71		—		111
Amounts reclassified out of AOCI	(14)		(49)		10		—		(53)
Other comprehensive income (loss), net of tax	(74)		51		81		—		58
Balance at October 30, 2022	$	(75)	$	(52)	$	(88)	$	13	$	(202)

Summary of stock repurchases

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


	2022		2021		2020

	(In millions, except per share amounts)
Shares of common stock repurchased	54		28		12
Cost of stock repurchased	$	6,103	$	3,750	$	649
Average price paid per share	$	113.84	$	134.03	$	56.32

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


	2022		2021		2020

	(In millions)
Cost of products sold	$	147	$	118	$	103
Research, development, and engineering	151		129		116
Marketing and selling	49		43		36
General and administrative	66		56		52

Total share-based compensation	$	413	$	346	$	307

Income tax benefits recognized	$	51	$	43	$	39

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The following tables summarize the assumptions used for the valuation of share-based awards for the periods presented:


	2022	2021	2020
Service-Based Awards and the portion of Performance-Based Awards subject to performance goals:
Grant date market value	$74.62 - $157.29	$74.37 - $143.05	$39.18 - $66.43
Risk-free interest rate	0.16% - 4.48%	0.04% - 0.82%	0.11% - 1.70%
Dividend yield	0.47% - 3.83%	0.20% - 3.09%	1.69% - 6.23%
Fair value	$72.24 - $154.88	$72.20 - $140.66	$37.02 - $64.37


	2022		2021*	2020
Portion of Performance-Based Awards subject to market goals:
Grant date market value	$146.49		$86.10 - $88.84	$55.84
Risk-free interest rate	0.87	%	0.20% - 0.41%	1.59	%
Dividend yield	0.66	%	0.99% - 1.02%	1.50	%
Expected volatility	47.35	%	40.51% - 47.00%	34.96	%
Fair value	$210.69		$129.27 - $136.81	$74.00

________________________

*Fiscal 2021 included both annual and non-recurring long-term Performance-Based Awards.

Restricted stock units and restricted stock activity

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


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

	(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2019	18	$	35.78	2.1 years	$	985
Granted	6	$	53.89
Vested	(8)	$	31.25
Canceled	(1)	$	42.61
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2020	15	$	45.36	2.2 years	$	914
Granted	5	$	92.04
Vested	(6)	$	43.11
Canceled	(1)	$	59.41
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 31, 2021	13	$	63.29	2.2 years	$	1,752
Granted	4	$	132.44
Vested	(5)	$	54.00
Canceled	(1)	$	82.54
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 30, 2022	11	$	92.31	2.2 years	$	1,024
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest	11	$	90.78	2.0 years	$	997

Significant valuation assumptions in relation to ESPP

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


	2022		2021		2020
ESPP:
Dividend yield	0.97	%	0.72	%	1.41	%
Expected volatility	46.8	%	41.3	%	48.2	%
Risk-free interest rate	2.24	%	0.05	%	0.58	%
Expected life (in years)	0.5		0.5		0.5
Weighted average estimated fair value	$30.23		$33.77		$17.30

Employee Benefit Plans (Tables)

12 Months Ended

Oct. 30, 2022

Retirement Benefits [Abstract]

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

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


	2022		2021		2020

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	685	$	674	$	617
Service cost	14		15		13
Interest cost	9		8		8
Plan participants’ contributions	1		1		1
Actuarial (gain) loss	(201)		(1)		6

Foreign currency exchange rate changes	(84)		3		33
Benefits paid	(10)		(15)		(10)
Plan amendments and other adjustments	—		—		6
Ending projected benefit obligation	$	414	$	685	$	674
Ending accumulated benefit obligation	$	371	$	626	$	627
Range of assumptions to determine benefit obligations
Discount rate	1.5% - 7.3%		0.6% - 6.6%		0.4% - 6.5%
Rate of compensation increase	2.7% - 10.0%		2.4% - 10.0%		2.3% - 10.0%
Change in plan assets
Beginning fair value of plan assets	$	491	$	431	$	409
Return on plan assets	(78)		49		—
Employer contributions	11		22		12
Plan participants’ contributions	1		1		1
Foreign currency exchange rate changes	(64)		3		19

Benefits paid	(10)		(15)		(10)
Ending fair value of plan assets	$	351	$	491	$	431
Funded status	$	(63)	$	(194)	$	(243)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	45	$	1	$	—
Current liability	(1)		(2)		(2)
Noncurrent liability	(107)		(193)		(241)
Total	$	(63)	$	(194)	$	(243)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	4	$	11	$	14
Prior service credit	—		—		—
Total	$	4	$	11	$	14
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	98	$	200	$	242
Prior service credit	1		1		—
Total	$	99	$	201	$	242
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	126	$	472	$	674
Fair value of plan assets	$	17	$	277	$	431
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	88	$	413	$	627
Fair value of plan assets	$	17	$	277	$	431


	2022		2021
Plan assets — allocation
Equity securities	26	%	35	%
Debt securities	37	%	33	%
Insurance contracts	21	%	23	%
Other investments	15	%	9	%
Cash	1	%	—	%

Summary of ending fair value of the plan assets

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


	October 30, 2022								October 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	84	$	—	$	—	$	84	$	137	$	—	$	—	$	137
Debt securities	56		—		—		56		79		—		—		79
Insurance contracts	—		—		72		72		—		—		110		110
Other investments	—		52		—		52		—		17		—		17
Cash	3		—		—		3		2		—		—		2
Total assets at fair value	$	143	$	52	$	72	267		$	218	$	17	$	110	345
Assets measured at net asset value							84								146
Total							$	351							$	491

Activity in Level 3 instruments

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


	2022		2021

	(In millions)
Balance, beginning of year	$	110	$	39
Actual return on plan assets:
Relating to assets still held at reporting date	(24)		—
Purchases, sales, settlements, net	—		72
Currency impact	(14)		(1)
Balance, end of year	$	72	$	110

Schedule of net benefit costs and weighted average assumptions used

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


	2022			2021			2020

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	14		$	15		$	13
Interest cost	9			8			8
Expected return on plan assets	(21)			(21)			(22)
Amortization of actuarial loss and prior service credit	10			14			12

Net periodic benefit cost	$	12		$	16		$	11
Weighted average assumptions
Discount rate	1.41		%	1.18		%	1.23		%
Expected long-term return on assets	4.56		%	4.80		%	5.10		%
Rate of compensation increase	2.89		%	2.74		%	2.69		%

Schedule of expected benefit payments

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


	Benefit Payments
	(In millions)
2023	$	8
2024	13
2025	13
2026	13
2027	14
2028-2032	94
Total	$	155

Income Taxes (Tables)

12 Months Ended

Oct. 30, 2022

Income Tax Disclosure [Abstract]

Components of income from operations before income taxes

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


	2022		2021		2020

	(In millions)
U.S.	$	1,171	$	512	$	92
Foreign	6,428		6,259		4,074
	$	7,599	$	6,771	$	4,166

Components of the provision for income taxes

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


	2022		2021		2020

	(In millions)
Current:
U.S.	$	590	$	462	$	196
Foreign	275		344		263
State	14		17		20
	879		823		479
Deferred:
U.S.	(62)		(3)		(3)
Foreign	265		67		76
State	(8)		(4)		(5)
	195		60		68
	$	1,074	$	883	$	547

Effective income tax rate continuing operations tax rate reconciliation

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


	2022		2021		2020
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%

Effect of foreign operations taxed at various rates	(4.4)		(7.0)		(5.9)
Changes in prior years’ unrecognized tax benefits	(0.9)		0.2		0.5
Resolutions of prior years’ income tax filings	(0.2)		(0.1)		(1.0)
Research and other tax credits	(1.0)		(0.9)		(1.3)




Other	(0.4)		(0.2)		(0.2)
	14.1	%	13.0	%	13.1	%

Components of deferred income tax assets and liabilities

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


	October 30, 2022		October 31, 2021

	(In millions)
Deferred tax assets:
Allowance for doubtful accounts	$	5	$	4
Inventory reserves and basis difference	131		112
Installation and warranty reserves	29		29
Intangible assets	984		1,281
Accrued liabilities	35		31

Deferred revenue	82		25

Tax credits	453		369
Deferred compensation	125		133
Share-based compensation	42		34

Lease liability	81		61
Other	67		89
Gross deferred tax assets	2,034		2,168
Valuation allowance	(460)		(361)
Total deferred tax assets	1,574		1,807
Deferred tax liabilities:
Fixed assets	(111)		(93)
Right of use assets	(80)		(62)

Undistributed foreign earnings	(39)		(37)


Total deferred tax liabilities	(230)		(192)
Net deferred tax assets	$	1,344	$	1,615

Summary of valuation allowance

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


	2022		2021		2020

	(In millions)
Beginning balance	$	361	$	314	$	257
Increases	99		47		57

Ending balance	$	460	$	361	$	314

A reconciliation of gross unrecognized tax benefits

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


	2022		2021		2020

	(In millions)
Beginning balance of gross unrecognized tax benefits	$	537	$	496	$	845

Settlements with tax authorities	(25)		—		(446)
Lapses of statutes of limitation	—		(4)		(3)
Increases in tax positions for current year	26		26		44
Increases in tax positions for prior years	28		23		91
Decreases in tax positions for prior years	(68)		(4)		(35)
Ending balance of gross unrecognized tax benefits	$	498	$	537	$	496

Warranty, Guarantees, Commitments and Contingencies (Tables)

12 Months Ended

Oct. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Changes in the warranty reserves

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


	2022		2021		2020

	(In millions)
Beginning balance	$	242	$	201	$	196
Provisions for warranty	254		223		165
Changes in reserves related to preexisting warranty	11		9		2
Consumption of reserves	(221)		(191)		(162)
Ending balance	$	286	$	242	$	201

Industry Segment Operations (Tables)

12 Months Ended

Oct. 30, 2022

Segment Reporting [Abstract]

Schedule of segment reporting

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


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

	(In millions)
2022:
Semiconductor Systems	$	18,797	$	6,969	$	203	$	249	$	4,924	$	3,995
Applied Global Services	5,543		1,661		31		38		997		1,788
Display and Adjacent Markets	1,331		260		31		30		148		129
Corporate and Other	114		(1,102)		179		470		(1)		20
Total	$	25,785	$	7,788	$	444	$	787	$	6,068	$	5,932
2021:
Semiconductor Systems	$	16,286	$	6,311	$	194	$	228	$	3,886	$	2,586
Applied Global Services	5,013		1,508		32		29		922		1,561
Display and Adjacent Markets	1,634		314		27		32		207		153
Corporate and Other	130		(1,244)		141		379		(62)		9
Total	$	23,063	$	6,889	$	394	$	668	$	4,953	$	4,309
2020:
Semiconductor Systems	$	11,367	$	3,714	$	219	$	226	$	2,061	$	2,139
Applied Global Services	4,155		1,127		34		30		764		1,545
Display and Adjacent Markets	1,607		291		31		29		179		195
Corporate and Other	73		(767)		92		137		(41)		25
Total	$	17,202	$	4,365	$	376	$	422	$	2,963	$	3,904

Disaggregation of revenue

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


	2022		2021		2020
Foundry, logic and other	66	%	60	%	59	%
Dynamic random-access memory (DRAM)	19	%	19	%	20	%
Flash memory	15	%	21	%	21	%

	100	%	100	%	100	%

Segment reconciling items in corporate and other

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


	2022		2021		2020

	(In millions)
Unallocated net sales	$	114	$	130	$	73
Unallocated cost of products sold and expenses	(807)		(725)		(533)
Share-based compensation	(413)		(346)		(307)
Severance and related charges	4		(149)		—
Deal termination fee	—		(154)		—
Total	$	(1,102)	$	(1,244)	$	(767)

Net sales and long-lived assets by geographic region

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


	2022		2021		2020

	(In millions)
Net sales:
United States	$	3,104	$	2,038	$	1,619
China	7,254		7,535		5,456
Korea	4,395		5,012		3,031
Taiwan	6,262		4,742		3,953
Japan	2,012		1,962		1,996
Europe	1,674		1,097		736
Southeast Asia	1,084		677		411
Total outside United States	22,681		21,025		15,583
Consolidated total	$	25,785	$	23,063	$	17,202


	October 30, 2022		October 31, 2021

	(In millions)
Long-lived assets:
United States	$	2,725	$	2,241
China	6		10
Korea	14		16
Taiwan	62		62
Japan	7		9
Europe	75		25
Southeast Asia	8		18
Total outside United States	172		140
Consolidated total	$	2,897	$	2,381

Companies accounted for at least 10 percent of net sales

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


	2022		2021		2020
Samsung Electronics Co., Ltd.	12	%	20	%	18	%
Taiwan Semiconductor Manufacturing Company Limited	20	%	15	%	18	%

Intel Corporation	10	%	*		*

___________________________

* Less than 10%

Summary of Significant Accounting Policies (Property Plant and Equipment Useful Life) (Details)	12 Months Ended
	Oct. 30, 2022
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	30 years
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Demonstration and manufacturing equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Furniture, fixtures and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	3 years
Furniture, fixtures and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Term of amortization	15 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Term of amortization	5 years

Summary of Significant Accounting Policies (Intangible Assets) (Details)	12 Months Ended
	Oct. 30, 2022
Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	15 years

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Oct. 30, 2022
Accounting Policies [Abstract]
Extended product warranty period	2 years

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Numerator:
Net income	$ 6,525	$ 5,888	$ 3,619
Denominator:
Weighted average common shares outstanding (in shares)	871	910	916
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares)	6	9	7
Denominator for diluted earnings per share (in shares)	877	919	923
Earnings per share: basic (in dollars per share)	$ 7.49	$ 6.47	$ 3.95
Diluted earnings per share (in dollars per share)	$ 7.44	$ 6.40	$ 3.92
Potentially dilutive securities (in shares)	3	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.

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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Paragraph 1
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

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

+ References

+ Details

Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,199	$ 1,407
Total Cash equivalents	796	3,588
Total Cash and Cash equivalents	1,995	4,995	$ 5,351
Cost of fixed income securities	2,517
Estimated fair value of fixed income securities	2,696	5,526
Equity investments cost	652	583
Equity investments unrealized gain	149	121
Publicly traded equity securities, gross unrealized losses	30	17
Equity investments estimated fair value	771	687
Total short-term and long-term investments cost	2,517	2,411
Total short-term and long-term investments, gross unrealized gains	149	129
Total short-term and long-term investments, gross unrealized losses	100	21
Total short-term and long-term investments	2,566	2,519
Cash, cash equivalents and investments, cost	4,512	7,406
Cash, cash equivalents and investments, gross unrealized gains	149	129
Cash, cash equivalents and investments, gross unrealized losses	100	21
Cash, cash equivalents and investments, estimated fair value	4,561	7,514
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,865	1,828
Gross unrealized gains on fixed income securities	0	8
Gross unrealized losses on fixed income securities	70	4
Estimated fair value of fixed income securities	1,795	1,832
Bank certificate of deposit
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	7
Gross unrealized gains on fixed income securities	0
Gross unrealized losses on fixed income securities	0
Estimated fair value of fixed income securities	7
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	435	314
Gross unrealized gains on fixed income securities	0	0
Gross unrealized losses on fixed income securities	13	0
Estimated fair value of fixed income securities	422	314
Non-U.S. government securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	7
Gross unrealized gains on fixed income securities	0
Gross unrealized losses on fixed income securities	1
Estimated fair value of fixed income securities	6
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	389	367
Gross unrealized gains on fixed income securities	0	3
Gross unrealized losses on fixed income securities	16	1
Estimated fair value of fixed income securities	373	369
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	595	587
Gross unrealized gains on fixed income securities	0	2
Gross unrealized losses on fixed income securities	21	2
Estimated fair value of fixed income securities	574	587
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	432	555
Gross unrealized gains on fixed income securities	0	3
Gross unrealized losses on fixed income securities	19	1
Estimated fair value of fixed income securities	413	557
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	85	22
Equity investments unrealized gain	63	39
Publicly traded equity securities, gross unrealized losses	26	3
Equity investments estimated fair value	122	58
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	567	561
Equity investments unrealized gain	86	82
Publicly traded equity securities, gross unrealized losses	4	14
Equity investments estimated fair value	649	629
Canada \| Non-U.S. government securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities		5
Gross unrealized gains on fixed income securities		0
Gross unrealized losses on fixed income securities		0
Estimated fair value of fixed income securities		5
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	660	3,556
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	4
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	13	22
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents		$ 10
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	$ 119

Cash, Cash Equivalents and Investments (Contractual Maturities) (Details) $ in Millions	Oct. 30, 2022 USD ($)
Cost
Due in one year or less, cost	$ 538
Due after one through five years, cost	888
Due after five years, cost	7
No single maturity date, cost	1,084
Cost of fixed income securities	2,517
Estimated Fair Value
Due in one year or less, estimated fair value	531
Due after one through five years, estimated fair value	844
Due after five years, estimated fair value	7
No single maturity date, estimated fair value	1,184
Estimated fair value of short-term and long-term investments	$ 2,566

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

Cash and Cash Equivalents (Gain (Loss) on Equity Investments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Debt and Equity Securities, FV-NI [Line Items]
Total gain (loss) on equity investments, net	$ 7	$ 99	$ 9
Publicly traded equity securities
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain	30	14	14
Unrealized loss	(62)	(11)	(17)
Realized gain on sales	7	2	1
Equity investments in privately-held companies
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain	41	65	18
Unrealized loss	(5)	(12)	(7)
Realized gain on sales	3	48	8
Realized loss on sales or impairment	$ (7)	$ (7)	$ (8)

Fair Value Measurements (Narrative) (Details) - Senior Notes - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt principal amount	$ 5,500	$ 5,500
Estimate of Fair Value Measurement \| Level 2
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Long-term debt fair value	$ 4,800	$ 6,400

Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Assets:
Estimated fair value of fixed income securities	$ 2,696	$ 5,526
Equity investments with readily determinable values
Equity investments, fair value	771	687
Restricted cash equivalents included in deferred income taxes and other assets	$ 105	$ 106	$ 115
Restricted Cash Equivalents, Statement of Financial Position [Extensible Enumeration]	Deferred Income Taxes and Other Assets, Noncurrent	Deferred Income Taxes and Other Assets, Noncurrent
Money market funds
Equity investments with readily determinable values
Restricted cash equivalents included in deferred income taxes and other assets	$ 105	$ 106
Bank certificate of deposit
Assets:
Estimated fair value of fixed income securities	7
U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	422	314
Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	6
Municipal securities
Assets:
Estimated fair value of fixed income securities	373	369
Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	574	587
Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	413	557
Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	122	58
Fair Value, Measurements, Recurring
Equity investments with readily determinable values
Equity investments, fair value	122	58
Assets, fair value disclosure	2,818	5,584
Fair Value, Measurements, Recurring \| Money market funds
Assets:
Estimated fair value of fixed income securities	765	3,662
Fair Value, Measurements, Recurring \| Bank certificate of deposit
Assets:
Estimated fair value of fixed income securities	7	0
Fair Value, Measurements, Recurring \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	426	314
Fair Value, Measurements, Recurring \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	6	5
Fair Value, Measurements, Recurring \| Municipal securities
Assets:
Estimated fair value of fixed income securities	386	391
Fair Value, Measurements, Recurring \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	693	597
Fair Value, Measurements, Recurring \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	413	557
Fair Value, Measurements, Recurring \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	122	58
Fair Value, Measurements, Recurring \| Level 1
Assets:
Estimated fair value of fixed income securities	1,169	3,958
Equity investments with readily determinable values
Equity investments, fair value	122	58
Assets, fair value disclosure	1,291	4,016
Fair Value, Measurements, Recurring \| Level 1 \| Money market funds
Assets:
Estimated fair value of fixed income securities	765	3,662
Fair Value, Measurements, Recurring \| Level 1 \| Bank certificate of deposit
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	404	296
Fair Value, Measurements, Recurring \| Level 1 \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Municipal securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 1 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	122	58
Fair Value, Measurements, Recurring \| Level 2
Assets:
Estimated fair value of fixed income securities	1,527	1,568
Equity investments with readily determinable values
Equity investments, fair value	0	0
Assets, fair value disclosure	1,527	1,568
Fair Value, Measurements, Recurring \| Level 2 \| Money market funds
Assets:
Estimated fair value of fixed income securities	0	0
Fair Value, Measurements, Recurring \| Level 2 \| Bank certificate of deposit
Assets:
Estimated fair value of fixed income securities	7	0
Fair Value, Measurements, Recurring \| Level 2 \| U.S. Treasury and agency securities
Assets:
Estimated fair value of fixed income securities	22	18
Fair Value, Measurements, Recurring \| Level 2 \| Non-U.S. government securities
Assets:
Estimated fair value of fixed income securities	6	5
Fair Value, Measurements, Recurring \| Level 2 \| Municipal securities
Assets:
Estimated fair value of fixed income securities	386	391
Fair Value, Measurements, Recurring \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Estimated fair value of fixed income securities	693	597
Fair Value, Measurements, Recurring \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Estimated fair value of fixed income securities	413	557
Fair Value, Measurements, Recurring \| Level 2 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments, fair value	$ 0	$ 0

Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Billions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Time period for hedging of foreign currency transactions	24 months
Amortization period for the loss on settlement of interest rate swap agreement	12 months
Foreign exchange contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 2.1	$ 2.1

Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 128	$ 36	$ (148)
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	128	36	3
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 0	$ 0	$ (151)

Derivative Instruments and Hedging Activities (Derivatives in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net sales	$ 25,785	$ 23,063	$ 17,202
Cost of products sold	13,792	12,149	9,510
Research, development and engineering	2,771	2,485	2,234
Marketing and selling	703	609	526
General and administrative	735	620	567
Interest expense	228	236	240
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	62	(3)	2
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	(1)	(2)	1
Foreign exchange contracts \| Net Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	100	4	(2)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	0	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 Statement of Operations	(12)	2	6
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	0	(2)	(3)
Foreign exchange contracts \| Research, development, and engineering
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	(7)	3	4
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	(1)	0	0
Foreign exchange contracts \| Marketing and selling
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	(3)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	0
Foreign exchange contracts \| General and administrative
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	(3)	1	1
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	0	0	0
Interest rate contracts \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Statement of Operations	(13)	(13)	(7)
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Statement of Operations	$ 0	$ 0	$ 0

Derivative Instruments and Hedging Activities (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	$ 33	$ 60	$ (4)
Foreign exchange contracts \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	67	29	(10)
Total return swap \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	(2)	(1)	(1)
Total return swap \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	(3)	3	1
Total return swap \| Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Consolidated Statement of Operations	$ (29)	$ 29	$ 6

Accounts Receivable, Net (Narrative) (Details) - USD ($)	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020	Oct. 27, 2019
Receivables [Abstract]
Accounts receivable sold	$ 1,000,000,000	$ 1,300,000,000	$ 1,200,000,000
Discount letters of credit issued during period	0	0	105,000,000
Discount applied to promissory notes	0	0	0
Allowance for doubtful accounts	$ 29,000,000	$ 29,000,000	$ 30,000,000	$ 30,000,000

Accounts Receivable, Net (Net of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Changes in allowance for doubtful accounts
Beginning balance	$ 29	$ 30	$ 30
Provision	0	0	0
Deductions	0	(1)	0
Ending balance	$ 29	$ 29	$ 30

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 173	$ 201
Contract liabilities	$ 3,142	$ 2,076

Contract Balances - Narrative (Details) - USD ($)	12 Months Ended
Contract Balances - Narrative (Details) - USD ($)	Oct. 30, 2022	Oct. 31, 2021	Dec. 16, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 1,900,000,000
Impairment loss on accounts receivable and contract assets	0	$ 0
Long-term Contract with Customer
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 4,800,000,000
Long-term Contract with Customer \| Subsequent Event
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, decrease amount			$ 944,000,000
Percent of performance obligation expected to be recognized within 12 months			0.00%
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of performance obligation recognized	28.00%
Performance obligation period	12 months
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation period	24 months

Balance Sheet Detail (Inventory) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Inventories
Customer service spares	$ 1,409	$ 1,251
Raw materials	1,807	1,136
Work-in-process	1,029	873
Finished goods	1,687	1,049
Total Inventories	5,932	4,309	$ 3,904
Inventory at customer locations included in finished goods	704	325
Inventory , newly-introduced systems in finished goods.	45	58
Evaluation inventory	$ 422	$ 380

Balance Sheet Detail (Other Current Assets) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Other Current Assets
Prepaid income taxes and income taxes receivable	$ 461	$ 593
Prepaid expenses and other	883	793
Total other current assets	$ 1,344	$ 1,386

Balance Sheet Detail (Property, Plant and Equipment) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 5,629	$ 4,980
Accumulated depreciation	(3,322)	(3,046)
Net property, plant and equipment	2,307	1,934
Depreciation	404	345	$ 320
Land and improvements
Property, Plant and Equipment, Net
Gross property, plant and equipment	387	334
Buildings and improvements
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 2,027	1,780
Buildings and improvements \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Buildings and improvements \| Maximum
Property, Plant and Equipment, Net
Useful life	30 years
Demonstration and manufacturing equipment
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 2,083	1,820
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Demonstration and manufacturing equipment \| Maximum
Property, Plant and Equipment, Net
Useful life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 743	720
Furniture, fixtures and other equipment \| Minimum
Property, Plant and Equipment, Net
Useful life	3 years
Furniture, fixtures and other equipment \| Maximum
Property, Plant and Equipment, Net
Useful life	5 years
Construction in progress
Property, Plant and Equipment, Net
Gross property, plant and equipment	$ 389	$ 326

Balance Sheet Detail (Deferred Income Taxes and Other Assets) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Non-current deferred income taxes	$ 1,395	$ 1,623
Operating lease right-of-use assets	$ 389	$ 294
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Deferred Income Taxes and Other Assets	Deferred Income Taxes and Other Assets
Income tax receivables and other assets	$ 691	$ 229
Deferred Income Taxes and Other Assets	$ 2,475	$ 2,146

Balance Sheet Detail (Accounts Payable and Accrued Expenses) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Accounts Payable and Accrued Expenses
Accounts payable	$ 1,755	$ 1,472
Compensation and employee benefits	905	924
Warranty	286	242
Dividends payable	220	214
Income taxes payable	319	734
Other accrued taxes	30	24
Interest payable	39	39
Operating lease liabilities, current	$ 85	$ 73
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accounts payable and accrued expenses	Accounts payable and accrued expenses
Other	$ 598	$ 546
Accounts payable and accrued expenses	$ 4,237	$ 4,268

Balance Sheet Detail (Other Liabilities) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Other Liabilities
Defined and postretirement benefit plans	$ 107	$ 193	$ 241
Operating lease liabilities, non-current	$ 287	$ 228
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Total other liabilities	Total other liabilities
Other	$ 338	$ 271
Total other liabilities	$ 732	$ 692

Goodwill, Purchased Technology and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Goodwill [Line Items]
Goodwill	$ 3,700	$ 3,479
Intangible assets - indefinite-lived	17	0
Total	3,717	3,479
Corporate and Other
Goodwill [Line Items]
Goodwill	41	41
Intangible assets - indefinite-lived	1	0
Total	42
Corporate, Reconciling Items, And Eliminations
Goodwill [Line Items]
Total		41
Semiconductor Systems \| Operating Segments
Goodwill [Line Items]
Goodwill	2,428	2,207
Intangible assets - indefinite-lived	16	0
Total	2,444	2,207
Applied Global Services \| Operating Segments
Goodwill [Line Items]
Goodwill	1,032	1,032
Intangible assets - indefinite-lived	0	0
Total	1,032	1,032
Display and Adjacent Markets \| Operating Segments
Goodwill [Line Items]
Goodwill	199	199
Intangible assets - indefinite-lived	0	0
Total	$ 199	$ 199

Goodwill, Purchased Technology and Other Intangible Assets (Narrative) (Details) $ in Millions	12 Months Ended
	Oct. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill, period increase	$ 221
Indefinite-Lived Intangible Assets, Period Increase	$ 17
Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	15 years

Goodwill, Purchased Technology and Other Intangible Assets (Purchased Technology and Intangible Assets) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	$ 322	$ 104
Intangible assets - indefinite-lived	17	0
Total	339	104
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	256	46
Other Intangible Assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Purchased technology and intangible assets	$ 66	$ 58

Goodwill, Purchased Technology and Other Intangible Assets (Finite-lived Intangible Assets) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Amortized intangible assets
Gross carrying amount	$ 2,294	$ 2,041
Accumulated amortization	(1,972)	(1,937)
Carrying amount	322	104
Purchased technology, net
Amortized intangible assets
Gross carrying amount	1,918	1,687
Accumulated amortization	(1,662)	(1,641)
Carrying amount	256	46
Other Intangible Assets
Amortized intangible assets
Gross carrying amount	376	354
Accumulated amortization	(310)	(296)
Carrying amount	66	58
Operating Segments \| Semiconductor Systems
Amortized intangible assets
Gross carrying amount	1,985	1,732
Accumulated amortization	(1,675)	(1,649)
Operating Segments \| Semiconductor Systems \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	1,707	1,476
Accumulated amortization	(1,461)	(1,446)
Operating Segments \| Semiconductor Systems \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	278	256
Accumulated amortization	(214)	(203)
Operating Segments \| Applied Global Services
Amortized intangible assets
Gross carrying amount	79	79
Accumulated amortization	(77)	(76)
Operating Segments \| Applied Global Services \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	35	35
Accumulated amortization	(33)	(32)
Operating Segments \| Applied Global Services \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	44	44
Accumulated amortization	(44)	(44)
Operating Segments \| Display and Adjacent Markets
Amortized intangible assets
Gross carrying amount	194	201
Accumulated amortization	(194)	(199)
Operating Segments \| Display and Adjacent Markets \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	158	163
Accumulated amortization	(158)	(161)
Operating Segments \| Display and Adjacent Markets \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	36	38
Accumulated amortization	(36)	(38)
Corporate and Other
Amortized intangible assets
Gross carrying amount	36	29
Accumulated amortization	(26)	(13)
Corporate and Other \| Purchased technology, net
Amortized intangible assets
Gross carrying amount	18	13
Accumulated amortization	(10)	(2)
Corporate and Other \| Other Intangible Assets
Amortized intangible assets
Gross carrying amount	18	16
Accumulated amortization	$ (16)	$ (11)

Goodwill, Purchased Technology and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 40	$ 49	$ 56
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	27	29	37
Research, development, and engineering
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	1	1
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	13	19	18
Operating Segments \| Semiconductor Systems
Finite-Lived Intangible Assets [Line Items]
Amortization expense	31	41	40
Operating Segments \| Applied Global Services
Finite-Lived Intangible Assets [Line Items]
Amortization expense	1	1	1
Operating Segments \| Display and Adjacent Markets
Finite-Lived Intangible Assets [Line Items]
Amortization expense	2	5	13
Corporate and Other
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 6	$ 2	$ 2

Goodwill, Purchased Technology and Other Intangible Assets (Future Estimated Amortization Expense) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Future estimated amortization expense
2023	$ 42
2024	39
2025	37
2026	37
2027	24
Thereafter	143
Carrying amount	$ 322	$ 104

Borrowing Facilities and Debt (Narrative) (Details) - USD ($)	1 Months Ended
	Feb. 29, 2020	Oct. 30, 2022	Oct. 31, 2021
Line of Credit Facility [Line Items]
Commercial paper program amount		$ 1,500,000,000
Short Term Commercial Paper
Line of Credit Facility [Line Items]
Current portion of long-term debt		$ 200,000,000
Debt, Weighted Average Interest Rate		4.30%
Maximum \| Short Term Commercial Paper
Line of Credit Facility [Line Items]
Debt Securities, Held-to-Maturity, Threshold Period Past Due		71 days
Minimum \| Short Term Commercial Paper
Line of Credit Facility [Line Items]
Debt Securities, Held-to-Maturity, Threshold Period Past Due		43 days
Commercial Paper
Line of Credit Facility [Line Items]
Current portion of long-term debt		$ 0	$ 0
Revolving Credit \| Unsecured Debt
Line of Credit Facility [Line Items]
Debt instrument term	5 years
Available revolving credit agreement	$ 1,500,000,000
Accordion feature, increase limit	500,000,000
Accordion feature, higher borrowing capacity option	$ 2,000,000,000
Amount outstanding		0	0
Foreign Line of Credit
Line of Credit Facility [Line Items]
Available revolving credit agreement		54,000,000
Amount outstanding		$ 0	$ 0

Borrowing Facilities and Debt (Debt Outstanding) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021
Schedule of debt
Long-term debt	$ 5,457	$ 5,452
Senior Notes
Schedule of debt
Long-term debt principal amount	5,500	5,500
Total unamortized discount	(12)	(14)
Total unamortized debt issuance costs	$ (31)	(34)
Senior Notes \| 3.900% Senior Notes Due 2025
Debt Instrument [Line Items]
Stated interest rate	3.90%
Schedule of debt
Long-term debt principal amount	$ 700	700
Effective interest rate	3.944%
Senior Notes \| 3.300% Senior Notes Due 2027
Debt Instrument [Line Items]
Stated interest rate	3.30%
Schedule of debt
Long-term debt principal amount	$ 1,200	1,200
Effective interest rate	3.342%
Senior Notes \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Stated interest rate	1.75%
Schedule of debt
Long-term debt principal amount	$ 750	750
Effective interest rate	1.792%
Senior Notes \| 5.100% Senior Notes Due 2035
Debt Instrument [Line Items]
Stated interest rate	5.10%
Schedule of debt
Long-term debt principal amount	$ 500	500
Effective interest rate	5.127%
Senior Notes \| 5.850% Senior Notes Due 2041
Debt Instrument [Line Items]
Stated interest rate	5.85%
Schedule of debt
Long-term debt principal amount	$ 600	600
Effective interest rate	5.879%
Senior Notes \| 4.350% Senior Notes Due 2047
Debt Instrument [Line Items]
Stated interest rate	4.35%
Schedule of debt
Long-term debt principal amount	$ 1,000	1,000
Effective interest rate	4.361%
Senior Notes \| 2.750% Senior Notes Due 2050
Debt Instrument [Line Items]
Stated interest rate	2.75%
Schedule of debt
Long-term debt principal amount	$ 750	$ 750
Effective interest rate	2.773%

Leases - Lease Expense and Supplemental Information (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Leases [Abstract]
Operating lease cost	$ 93	$ 79	$ 69
Weighted-average remaining lease term (in years)	6 years 3 months 18 days	5 years 1 month 6 days	5 years 2 months 12 days
Weighted-average discount rate	2.50%	1.70%	1.80%
Operating cash flows paid for operating leases	$ 107	$ 79	$ 70
Right-of-use assets obtained in exchange for operating lease liabilities	$ 204	$ 123	$ 156

Leases - Lease Maturities (Details) $ in Millions	Oct. 30, 2022 USD ($)
Operating Leases - Maturity After Adoption
2023	$ 93
2024	84
2025	65
2026	34
2027	26
Thereafter	105
Total lease payments	407
Less imputed interest	(35)
Total	$ 372

Severance and Related Charges - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Restructuring and Related Activities [Abstract]
Provision for severance	$ (4)	$ 157	$ 0

Severance and Related Charges - Schedule of Severance Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Restructuring Cost and Reserve [Line Items]
Severance and related charges	$ (4)	$ 157	$ 0
Display and Adjacent Markets
Restructuring Cost and Reserve [Line Items]
Severance and related charges	0	8
Corporate and Other
Restructuring Cost and Reserve [Line Items]
Severance and related charges	$ (4)	$ 149

Severance and Related Charges - Schedule of changes in severance and related charges reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Restructuring Reserve [Roll Forward]
Severance and related charges	$ (4)	$ 157	$ 0
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	17	0
Severance and related charges		158
Adjustment to provision for severance	(4)	(1)
Consumption of reserves	(13)	(140)
Restructuring reserve, ending balance	$ 0	$ 17	$ 0

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 12,247	$ 10,578	$ 8,214
Other comprehensive income (loss) before reclassifications	111	34	(120)
Amounts reclassified out of AOCI	(53)	5	1
Other comprehensive loss, net of tax	58	39	(119)
Ending Balance	12,194	12,247	10,578
Unrealized Gain (Loss) on Investments, Net
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(1)	20	11
Other comprehensive income (loss) before reclassifications	(60)	(14)	16
Amounts reclassified out of AOCI	(14)	(7)	(7)
Other comprehensive loss, net of tax	(74)	(21)	9
Ending Balance	(75)	(1)	20
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(103)	(133)	(16)
Other comprehensive income (loss) before reclassifications	100	28	(115)
Amounts reclassified out of AOCI	(49)	2	(2)
Other comprehensive loss, net of tax	51	30	(117)
Ending Balance	(52)	(103)	(133)
Defined and Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(169)	(199)	(188)
Other comprehensive income (loss) before reclassifications	71	20	(21)
Amounts reclassified out of AOCI	10	10	10
Other comprehensive loss, net of tax	81	30	(11)
Ending Balance	(88)	(169)	(199)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	13	13	13
Other comprehensive income (loss) before reclassifications	0	0	0
Amounts reclassified out of AOCI	0	0	0
Other comprehensive loss, net of tax	0	0	0
Ending Balance	13	13	13
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(260)	(299)	(180)
Other comprehensive loss, net of tax	58	39	(119)
Ending Balance	$ (202)	$ (260)	$ (299)

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended												12 Months Ended
	Oct. 30, 2022	Jul. 31, 2022	May 01, 2022	Jan. 30, 2022	Oct. 31, 2021	Aug. 01, 2021	May 02, 2021	Jan. 31, 2021	Oct. 25, 2020	Jul. 26, 2020	Apr. 26, 2020	Jan. 26, 2020	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020	Mar. 31, 2022	Mar. 31, 2021
Equity [Line Items]
Tax effects on net income of amounts reclassified from AOCI													$ 36,000,000	$ 19,000,000	$ 35,000,000
Stock Repurchase Program
Authorized amount																$ 6,000,000,000	$ 7,500,000,000
Remaining authorized repurchase amount	$ 4,900,000,000												$ 4,900,000,000
Dividends
Cash dividend declared (usd per share)	$ 0.26	$ 0.26	$ 0.26	$ 0.24	$ 0.24	$ 0.24	$ 0.24	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.21	$ 1.02	$ 0.94	$ 0.87
Payments of dividends													$ 873,000,000	$ 838,000,000	$ 787,000,000
Employee Stock Purchase Plan
Employee Stock Purchase Plans
Purchase period													6 months
Weighted average exercise price (in dollars per share)													$ 93.30	$ 70.29	$ 45.37
Number of shares issued under the ESPP (in shares)													2,000,000	3,000,000	3,000,000
Employee Stock
Share-based Compensation
Performance of total shareholder return													100.00%
Total unrecognized compensation expense	$ 678,000,000												$ 678,000,000
Weighted average period for unrecognized compensation expense to be recognized													2 years 7 months 6 days
Employee Stock \| Employee Stock Purchase Plan
Employee Stock Purchase Plans
Purchase price of common stock, percent													85.00%
Stock Options
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to expire													7 years
Options granted (in shares)													0	0	0
Stock Options \| Employee Stock Incentive Plan
Share-based Compensation
Number of shares available for grant	31,000,000												31,000,000
Stock Options \| Employee Stock Purchase Plan
Share-based Compensation
Number of shares available for grant	14,000,000												14,000,000
Stock Options \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													3 years
Stock Options \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													4 years
Performance Shares/Performance Units
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award measurement period													3 years
Weight of metric (as a percent)													50.00%
Additional performance-based awards to be earned upon certain levels of achievement (in shares)	900,000												900,000
Performance Shares/Performance Units \| Executive Officer
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award measurement period													5 years
Performance Shares/Performance Units \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													0.00%
Performance Shares/Performance Units \| Minimum \| Executive Officer
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													0.00%
Performance Shares/Performance Units \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													200.00%
Performance Shares/Performance Units \| Maximum \| Executive Officer
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Award vesting rights as percentage of target amount													200.00%
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units \| Minimum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													3 years
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units \| Maximum
Stock Options, Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units
Stock options scheduled to be vested													4 years

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Stock Repurchases) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Equity [Abstract]
Shares of common stock repurchased (in shares)	54	28	12
Cost of stock repurchased	$ 6,103	$ 3,750	$ 649
Average price paid per share (in dollars per share)	$ 113.84	$ 134.03	$ 56.32

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Effect of Share-based Compensation) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 413	$ 346	$ 307
Income tax benefits recognized	51	43	39
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	147	118	103
Research, development, and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	151	129	116
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	49	43	36
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 66	$ 56	$ 52

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (valuation of share-based awards) (Details) - USD ($)	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Performance Shares/Performance Units \| Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Grant date market value	$ 74.62	$ 74.37	$ 39.18
Risk-free interest rate	0.16%	0.04%	0.11%
Dividend yield	0.47%	0.20%	1.69%
Fair value	$ 72.24	$ 72.20	$ 37.02
Performance Shares/Performance Units \| Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Grant date market value	$ 157.29	$ 143.05	$ 66.43
Risk-free interest rate	4.48%	0.82%	1.70%
Dividend yield	3.83%	3.09%	6.23%
Fair value	$ 154.88	$ 140.66	$ 64.37
Performance Shares Subject To Market Goals
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Grant date market value	$ 146.49		$ 55.84
Risk-free interest rate	0.87%		1.59%
Dividend yield	0.66%		1.50%
Expected volatility	47.35%		34.96%
Fair value	$ 210.69		$ 74.00
Performance Shares Subject To Market Goals \| Minimum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Grant date market value		$ 86.10
Risk-free interest rate		0.20%
Dividend yield		0.99%
Expected volatility		40.51%
Fair value		$ 129.27
Performance Shares Subject To Market Goals \| Maximum
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Grant date market value		$ 88.84
Risk-free interest rate		0.41%
Dividend yield		1.02%
Expected volatility		47.00%
Fair value		$ 136.81

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units (Details) - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020	Oct. 27, 2019
Shares
Beginning Balance (shares)	13	15	18
Granted (shares)	4	5	6
Vested (shares)	(5)	(6)	(8)
Canceled (shares)	(1)	(1)	(1)
Ending Balance (shares)	11	13	15	18
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest (in shares)	11
Weighted Average Grant Date Fair Value
Beginning of Period (in dollars per share)	$ 63.29	$ 45.36	$ 35.78
Granted (in dollars per share)	132.44	92.04	53.89
Vested (in dollars per share)	54.00	43.11	31.25
Canceled (in dollars per share)	82.54	59.41	42.61
Ending Balance (in dollars per share)	92.31	$ 63.29	$ 45.36	$ 35.78
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest (in dollars per share)	$ 90.78
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term	2 years 2 months 12 days	2 years 2 months 12 days	2 years 2 months 12 days	2 years 1 month 6 days
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest, Weighted Average Remaining Contractual Term	2 years
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 1,024	$ 1,752	$ 914	$ 985
Expected to vest, Aggregate Intrinsic Value	$ 997

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (ESPP Fair Value Assumptions) (Details) - Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Weighted Average Assumptions Used for ESPP Granted
Dividend yield	0.97%	0.72%	1.41%
Expected volatility	46.80%	41.30%	48.20%
Risk-free interest rate	2.24%	0.05%	0.58%
Expected life (in years)	6 months	6 months	6 months
Weighted average estimated fair value (in dollars per share)	$ 30.23	$ 33.77	$ 17.30

Employee Benefit Plans (Narrative) (Details) $ in Millions	12 Months Ended
Employee Benefit Plans (Narrative) (Details) $ in Millions	Oct. 30, 2022 USD ($) Plan	Oct. 31, 2021 USD ($)	Oct. 25, 2020 USD ($)
Employee Bonus Plans
Charges to expense under Employee bonus plans	$ 623	$ 631	$ 471
Defined Benefit Pension Plans of Foreign Subsidiaries and Other Post-Retirement Benefits
Company contributions expected for next fiscal year	$ 6
Executive Deferred Compensation Plans
Number of unfunded plans \| Plan	2
Executive Deferred Compensation Plans
Executive Deferred Compensation Plans
Amounts payable under EDCP	$ 200	206
Savings and Retirement Plan
Employee Savings and Retirement Plan
Employer matching contribution, percent of match	100.00%
Employer matching contribution, percent of employees' gross pay	3.00%
Employer matching contribution, percent of match, second tier	50.00%
Percentage vested in matching contribution account	100.00%
401(K) Matching contributions	$ 67	$ 61	$ 52
Savings and Retirement Plan \| Minimum
Employee Savings and Retirement Plan
Employer matching contribution, percent of employees' gross pay, second tier	4.00%
Savings and Retirement Plan \| Maximum
Employee Savings and Retirement Plan
Employer matching contribution, percent of employees' gross pay, second tier	6.00%

Employee Benefit Plans (Benefit Obligations and Plan Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Change in projected benefit obligation
Beginning projected benefit obligation	$ 685	$ 674	$ 617
Service cost	14	15	13
Interest cost	9	8	8
Plan participants’ contributions	1	1	1
Actuarial (gain) loss	(201)	(1)	6
Foreign currency exchange rate changes	(84)	3	33
Benefits paid	(10)	(15)	(10)
Plan amendments and other adjustments	0	0	6
Ending projected benefit obligation	414	685	674
Ending accumulated benefit obligation	371	626	627
Change in plan assets
Beginning fair value of plan assets	491	431	409
Return on plan assets	(78)	49	0
Employer contributions	11	22	12
Plan participants’ contributions	1	1	1
Foreign currency exchange rate changes	(64)	3	19
Benefits paid	(10)	(15)	(10)
Ending fair value of plan assets	351	491	431
Funded status	(63)	(194)	(243)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	45	1	0
Current liability	(1)	(2)	(2)
Noncurrent liability	(107)	(193)	(241)
Total	(63)	(194)	(243)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	4	11	14
Prior service credit	0	0	0
Total	4	11	14
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	98	200	242
Prior service credit	1	1	0
Total	99	201	242
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	126	472	674
Fair value of plan assets	17	277	431
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	88	413	627
Fair value of plan assets	$ 17	$ 277	$ 431
Minimum
Range of assumptions to determine benefit obligations
Discount rate	1.50%	0.60%	0.40%
Rate of compensation increase	2.70%	2.40%	2.30%
Maximum
Range of assumptions to determine benefit obligations
Discount rate	7.30%	6.60%	6.50%
Rate of compensation increase	10.00%	10.00%	10.00%

Employee Benefit Plans (Plan Assets Allocation) (Details)	Oct. 30, 2022	Oct. 31, 2021
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	26.00%	35.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	37.00%	33.00%
Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	21.00%	23.00%
Other investments
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	15.00%	9.00%
Cash
Defined Benefit Plan Disclosure [Line Items]
Plan assets — allocation	1.00%	0.00%

Employee Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020	Oct. 27, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	$ 351	$ 491	$ 431	$ 409
Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	267	345
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	143	218
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	52	17
Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	72	110	$ 39
Assets measured at net asset value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	84	146
Equity securities \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	84	137
Equity securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	84	137
Equity securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Equity securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Debt securities \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	56	79
Debt securities \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	56	79
Debt securities \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Debt securities \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	72	110
Insurance contracts \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Insurance contracts \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	72	110
Other investments \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	52	17
Other investments \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Other investments \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	52	17
Other investments \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Cash \| Total assets at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	3	2
Cash \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	3	2
Cash \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	0	0
Cash \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan of assets	$ 0	$ 0

Employee Benefit Plans (Level 3 Instruments) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Change in plan assets
Beginning fair value of plan assets	$ 491	$ 431	$ 409
Currency impact	64	(3)	(19)
Ending fair value of plan assets	351	491	431
Level 3
Change in plan assets
Beginning fair value of plan assets	110	39
Relating to assets still held at reporting date	(24)	0
Purchases, sales, settlements, net	0	72
Currency impact	(14)	(1)
Ending fair value of plan assets	$ 72	$ 110	$ 39

- Definition

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

+ References + Details

Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Components of net periodic benefit cost
Service cost	$ 14	$ 15	$ 13
Interest cost	$ 9	$ 8	$ 8
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent	Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent	Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent
Expected return on plan assets	$ (21)	$ (21)	$ (22)
Amortization of actuarial loss and prior service credit	10	14	12
Net periodic benefit cost	$ 12	$ 16	$ 11
Weighted average assumptions
Discount rate	1.41%	1.18%	1.23%
Expected long-term return on assets	4.56%	4.80%	5.10%
Rate of compensation increase	2.89%	2.74%	2.69%

Employee Benefit Plans (Future Expected Benefit Payments) (Details) $ in Millions	Oct. 30, 2022 USD ($)
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]
2023	$ 8
2024	13
2025	13
2026	13
2027	14
2028-2032	94
Total	$ 155

Income Taxes (Components of Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Components of income from operations before income taxes
U.S.	$ 1,171	$ 512	$ 92
Foreign	6,428	6,259	4,074
Income before income taxes	7,599	6,771	4,166
Current:
U.S.	590	462	196
Foreign	275	344	263
State	14	17	20
Total current provision for income taxes	879	823	479
Deferred:
U.S.	(62)	(3)	(3)
Foreign	265	67	76
State	(8)	(4)	(5)
Total deferred provision (benefit) for income taxes	195	60	68
Provision for income taxes	$ 1,074	$ 883	$ 547
Reconciliation between the statutory U.S.federal income tax rate to actual effective income tax rate
Tax provision at U.S. statutory rate	21.00%	21.00%	21.00%
Effect of foreign operations taxed at various rates	(4.40%)	(7.00%)	(5.90%)
Changes in prior years’ unrecognized tax benefits	(0.90%)	0.20%	0.50%
Resolutions of prior years’ income tax filings	(0.20%)	(0.10%)	(1.00%)
Research and other tax credits	(1.00%)	(0.90%)	(1.30%)
Other	(0.40%)	(0.20%)	(0.20%)
Effective income tax rate	14.10%	13.00%	13.10%
Deferred tax assets:
Allowance for doubtful accounts	$ 5	$ 4
Inventory reserves and basis difference	131	112
Installation and warranty reserves	29	29
Intangible assets	984	1,281
Accrued liabilities	35	31
Deferred revenue	82	25
Tax credits	453	369
Deferred compensation	125	133
Share-based compensation	42	34
Lease liability	81	61
Other	67	89
Gross deferred tax assets	2,034	2,168
Valuation allowance	(460)	(361)
Total deferred tax assets	1,574	1,807
Deferred tax liabilities:
Fixed assets	(111)	(93)
Right of use assets	(80)	(62)
Undistributed foreign earnings	(39)	(37)
Total deferred tax liabilities	(230)	(192)
Net deferred tax assets	1,344	1,615
Reconciliation of gross unrecognized tax benefits
Beginning balance of gross unrecognized tax benefits	537	496	$ 845
Settlements with tax authorities	(25)	0	(446)
Lapses of statutes of limitation	0	(4)	(3)
Increases in tax positions for current year	26	26	44
Increases in tax positions for prior years	28	23	91
Decreases in tax positions for prior years	(68)	(4)	(35)
Ending balance of gross unrecognized tax benefits	$ 498	$ 537	$ 496

Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Income Tax Examination [Line Items]
Tax holiday benefit	$ 232	$ 370	$ 215
Tax holiday benefit per diluted share (in dollars per share)	$ 0.26	$ 0.40	$ 0.23
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities	$ 25	$ 0	$ 446
Income tax penalties and interest expense (benefit)	14	14	24
Unrecognized tax benefits that would impact effective tax rate	388	442	410
Noncurrent Liabilities
Income Tax Examination [Line Items]
Interest and penalties related to uncertain tax positions	103	$ 88	74
Research and development tax credit carryforwards \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards	453
Carried over until exhausted \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards	427
Carried over the next fifteen years \| State and Local Jurisdiction
Income Tax Examination [Line Items]
Tax credit carryforwards	$ 23
Tax credit carryforward, term	15 years
SINGAPORE
Income Tax Examination [Line Items]
Foreign statutory income tax rate	17.00%
Income tax expense recognized from settled tax audits			26
SINGAPORE \| Foreign Tax Authority
Income Tax Examination [Line Items]
Income tax paid or accrued			72
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities			$ 374

Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Changes in allowance for doubtful accounts
Increases	$ 0	$ 0	$ 0
Valuation Allowance of Deferred Tax Assets
Changes in allowance for doubtful accounts
Beginning balance	361	314	257
Increases	99	47	57
Ending balance	$ 460	$ 361	$ 314

Warranty, Guarantees, Commitments and Contingencies (Warranty Reserves) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Changes in the warranty reserves
Beginning balance	$ 242	$ 201	$ 196
Provisions for warranty	254	223	165
Changes in reserves related to preexisting warranty	11	9	2
Consumption of reserves	(221)	(191)	(162)
Ending balance	$ 286	$ 242	$ 201

Warranty, Guarantees, Commitments and Contingencies (Narrative) (Details) $ in Millions	12 Months Ended
	Oct. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Products warranty period	12 months
Maximum potential amount of future payments for letters of credit or other guarantee instruments	$ 618
Parent guarantees to banks	$ 294

Industry Segment Operations (Narrative) (Details) $ in Millions	6 Months Ended	12 Months Ended
	May 02, 2021 USD ($)	Oct. 30, 2022 USD ($) segment	Oct. 31, 2021 USD ($)	Oct. 25, 2020 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment		3
Business Acquisition [Line Items]
Deal termination fee		$ 0	$ (154)	$ 0
Kokusai Electric
Business Acquisition [Line Items]
Deal termination fee	$ (154)

Industry Segment Operations (Reportable Segment) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Segment Reporting Information [Line Items]
Net sales	$ 25,785	$ 23,063	$ 17,202
Operating Income (Loss)	7,788	6,889	4,365
Deprecation/Amortization	444	394	376
Capital Expenditures	787	668	422
Accounts Receivable	6,068	4,953	2,963
Inventories	5,932	4,309	3,904
Operating Segments \| Semiconductor Systems
Segment Reporting Information [Line Items]
Net sales	18,797	16,286	11,367
Operating Income (Loss)	6,969	6,311	3,714
Deprecation/Amortization	203	194	219
Capital Expenditures	249	228	226
Accounts Receivable	4,924	3,886	2,061
Inventories	3,995	2,586	2,139
Operating Segments \| Applied Global Services
Segment Reporting Information [Line Items]
Net sales	5,543	5,013	4,155
Operating Income (Loss)	1,661	1,508	1,127
Deprecation/Amortization	31	32	34
Capital Expenditures	38	29	30
Accounts Receivable	997	922	764
Inventories	1,788	1,561	1,545
Operating Segments \| Display and Adjacent Markets
Segment Reporting Information [Line Items]
Net sales	1,331	1,634	1,607
Operating Income (Loss)	260	314	291
Deprecation/Amortization	31	27	31
Capital Expenditures	30	32	29
Accounts Receivable	148	207	179
Inventories	129	153	195
Corporate and Other
Segment Reporting Information [Line Items]
Net sales	114	130	73
Operating Income (Loss)	(1,102)	(1,244)	(767)
Deprecation/Amortization	179	141	92
Capital Expenditures	470	379	137
Accounts Receivable	(1)	(62)	(41)
Inventories	$ 20	$ 9	$ 25

Industry Segment Operations (Net Sales and Operating Income (Loss)) (Details) - Semiconductor Systems - Net sales - Product Concentration Risk	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Segment Reporting Information [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Foundry, logic and other
Segment Reporting Information [Line Items]
Percentage of net sales	66.00%	60.00%	59.00%
Dynamic random-access memory (DRAM)
Segment Reporting Information [Line Items]
Percentage of net sales	19.00%	19.00%	20.00%
Flash memory
Segment Reporting Information [Line Items]
Percentage of net sales	15.00%	21.00%	21.00%

Industry Segment Operations (Segment Reconciling Items) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	$ 25,785	$ 23,063	$ 17,202
Share-based compensation	(413)	(346)	(307)
Severance and related charges	4	(157)	0
Deal termination fee	0	(154)	0
Income from operations	7,788	6,889	4,365
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	114	130	73
Unallocated cost of products sold and expenses	(807)	(725)	(533)
Share-based compensation	(413)	(346)	(307)
Severance and related charges	4	(149)	0
Deal termination fee	0	(154)	0
Income from operations	$ (1,102)	$ (1,244)	$ (767)

- 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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

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

+ Details

Industry Segment Operations (Net Sales and Long-lived Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	$ 25,785	$ 23,063	$ 17,202
Long-lived assets	2,897	2,381
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	3,104	2,038	1,619
Long-lived assets	2,725	2,241
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	7,254	7,535	5,456
Long-lived assets	6	10
Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	4,395	5,012	3,031
Long-lived assets	14	16
Taiwan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	6,262	4,742	3,953
Long-lived assets	62	62
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	2,012	1,962	1,996
Long-lived assets	7	9
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	1,674	1,097	736
Long-lived assets	75	25
Southeast Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	1,084	677	411
Long-lived assets	8	18
Total outside United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales	22,681	21,025	$ 15,583
Long-lived assets	$ 172	$ 140

Industry Segment Operations (Percentage by Customer) (Details) - Net sales - Customer Concentration Risk	12 Months Ended
	Oct. 30, 2022	Oct. 31, 2021	Oct. 25, 2020
Samsung Electronics Co., Ltd.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	12.00%	20.00%	18.00%
Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	20.00%	15.00%	18.00%
Intel Corporation
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	10.00%