Balance Sheet Detail



	October 28, 2012		October 30, 2011

	(In millions)
Inventories
Customer service spares	$	312	$	328
Raw materials	331		407
Work-in-process	234		336
Finished goods	395		630
	$	1,272	$	1,701

Included in finished goods inventory is $60 million at October 28, 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. Finished goods inventory includes $176 million and $140 million of evaluation inventory at October 28, 2012 and October 30, 2011, respectively.



	Useful Life	October 28, 2012			October 30, 2011

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	169		$	163
Buildings and improvements	3-30	1,196			1,155
Demonstration and manufacturing equipment	3-5	760			686
Furniture, fixtures and other equipment	3-15	734			722
Construction in progress		58			12
Gross property, plant and equipment		2,917			2,738
Accumulated depreciation		(2,007		)	(1,872		)
		$	910		$	866

During fiscal 2012, fixed asset impairment charges of $20 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 fiscal 2011, Applied received $99 million in proceeds from the sale of two properties located in North America and recognized a net gain of $27 million on the transactions. Applied also completed the divestiture of certain assets held for sale for proceeds of $31 million.



	October 28, 2012		October 30, 2011

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	396	$	484
Compensation and employee benefits	426		455
Warranty	119		168
Dividends payable	108		104
Other accrued taxes	18		81
Interest payable	30		31
Restructuring reserve	133		11
Other	206		186
	$	1,436	$	1,520

Other accrued expenses included acquisition obligation for untendered Varian shares of $12 million as of October 28, 2012.



	October 28, 2012		October 30, 2011

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	143	$	249
Deferred revenue	612		867
	$	755	$	1,116

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