Balance Sheet Detail



	July 29, 2012		October 30, 2011
	(In millions)
Inventories
Customer service spares	$	318	$	328
Raw materials	302		407
Work-in-process	301		336
Finished goods*	459		630
	$	1,380	$	1,701

_______________

Included in finished goods inventory is $88 million at July 29, 2012, and $224 million at October 30, 2011, of newly-introduced systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1, Basis of Presentation. Finished goods inventory also includes $180 million and $140 million of evaluation inventory at July 29, 2012 and October 30, 2011, respectively.



	Useful Life	July 29, 2012			October 30, 2011
	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	169		$	163
Buildings and improvements	3-30	1,195			1,155
Demonstration and manufacturing equipment	3-5	749			686
Furniture, fixtures and other equipment	3-15	733			722
Construction in progress		46			12
Gross property, plant and equipment		2,892			2,738
Accumulated depreciation		(1,975		)	(1,872		)
		$	917		$	866

During the third quarter of fiscal 2012, fixed asset impairment charges of $11 million were recorded in relation to the Energy and Environmental Solutions segment restructuring plan, as discussed in Note 11, Restructuring Charges and Asset Impairments.

In the third quarter of fiscal 2011, Applied received $60 million in proceeds from the sale of a property located in North America and recognized a gain of $28 million on the transaction. Applied also completed the divestiture of certain assets held for sale for proceeds of $27 million, net of cash sold. In the first quarter of fiscal 2011, Applied received $39 million in proceeds from the sale of a property located in North America and incurred a loss of $1 million on the transaction.



	July 29, 2012		October 30, 2011
	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	443	$	484
Compensation and employee benefits	396		455
Warranty	137		168
Dividends payable	111		104
Other accrued taxes	49		81
Interest payable	14		31
Restructuring reserve	26		11
Other	234		186
	$	1,410	$	1,520

As of July 29, 2012, other accrued expenses included a $13 million acquisition obligation for untendered Varian shares.



	July 29, 2012		October 30, 2011
	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	229	$	249
Deferred revenue	708		867
	$	937	$	1,116

Applied typically receives deposits on future deliverables from customers in its Energy and Environmental Solutions and Display segments. In certain instances, customer deposits may be received from customers in the Applied Global Services segment.