Business Combination (Tables)

9 Months Ended

Jul. 29, 2012

Business Combinations [Abstract]

Summary of allocation of assets acquired and liabilities assumed

The following table summarizes the allocation of the assets acquired and liabilities assumed at the acquisition date:

Estimated Fair Values	Acquisition 2012
	(In millions)
Cash and cash equivalents	$	632
Short-term investments	56
Accounts receivable, net	194
Inventories	250
Deferred income taxes and other current assets	66
Long-term investments	62
Property and equipment, net	104
Goodwill	2,604
Purchased intangible assets	1,365
Other assets	10
Total assets acquired	5,343
Accounts payable and accrued expenses	(134		)
Customer deposits and deferred revenue	(52		)
Income taxes payable	(60		)
Deferred income taxes	(211		)
Other liabilities	(25		)
Total liabilities assumed	(482		)
Purchase price allocated	$	4,861

Purchased Intangible Assets

The following table presents details of the purchase price as allocated to purchased intangible assets of Varian at the acquisition date:

	Useful Life	Purchased Intangible  Assets 2012
	(In years)	(In millions)
Developed technology	1-7	$	987
Customer relationships	15	150
In-process technology		142
Patents and trademarks	10	69
Backlog	1	7
Covenant not to compete	2	10
Total purchased intangible assets		$	1,365

Unaudited pro forma consolidated results of operations assumed in the acquisition

The pro forma consolidated results of operations for the three and nine months ended July 31, 2011 combine the results of Applied for the three and nine months ended July 31, 2011, with the results of Varian for the three and nine months ended July 1, 2011.

	Three Months Ended				Nine Months Ended
	July 29, 2012		July 31, 2011		July 29, 2012		July 31, 2011
	(In millions, except per share amounts)
Net sales	$	2,343	$	3,115	$	7,073	$	9,276
Net income	$	227	$	495	$	730	$	1,453
Basic earnings per share	$	0.18	$	0.38	$	0.57	$	1.10
Diluted earnings per share	$	0.18	$	0.37	$	0.56	$	1.09