Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 27, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Indefinite-lived intangible assets

Details of goodwill and other indefinite-lived intangible assets as of July 27, 2014 and October 27, 2013 were as follows :

	July 27, 2014						October 27, 2013
	Goodwill		Other Intangible Assets		Total		Goodwill		Other Intangible Assets		Total
	(In millions)
Silicon Systems Group	$	2,151	$	142	$	2,293	$	2,151	$	142	$	2,293
Applied Global Services	1,027		6		1,033		1,027		—		1,027
Display	116		—		116		116		—		116
Carrying amount	$	3,294	$	148	$	3,442	$	3,294	$	142	$	3,436

Summary of purchased technology and intangible assets

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

	July 27, 2014		October 27, 2013
	(In millions)
Purchased technology, net	$	639	$	748
Intangible assets - finite-lived, net	192		213
Intangible assets - indefinite-lived	148		142
Total	$	979	$	1,103

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows as of July 27, 2014 and October 27, 2013:

	July 27, 2014									October 27, 2013
	Purchased Technology			Other Intangible Assets			Total			Purchased Technology			Other Intangible Assets			Total
	(In millions)
Gross carrying amount:
Silicon Systems Group	$	1,307		$	252		$	1,559		$	1,301		$	252		$	1,553
Applied Global Services	28			44			72			28			44			72
Display	110			33			143			110			33			143
Energy and Environmental Solutions	5			15			20			5			15			20
Gross carrying amount	$	1,450		$	344		$	1,794		$	1,444		$	344		$	1,788
Accumulated amortization:
Silicon Systems Group	$	(674	)	$	(72	)	$	(746	)	$	(562	)	$	(58	)	$	(620	)
Applied Global Services	(24		)	(44		)	(68		)	(23		)	(42		)	(65		)
Display	(110		)	(31		)	(141		)	(110		)	(29		)	(139		)
Energy and Environmental Solutions	(3		)	(5		)	(8		)	(1		)	(2		)	(3		)
Accumulated amortization	$	(811	)	$	(152	)	$	(963	)	$	(696	)	$	(131	)	$	(827	)
Carrying amount	$	639		$	192		$	831		$	748		$	213		$	961

Summary of amortization expense

Details of amortization expense by segment for the three and nine months ended July 27, 2014 and July 28, 2013 were as follows:

	Three Months Ended				Nine Months Ended
	July 27, 2014		July 28, 2013		July 27, 2014		July 28, 2013
	(In millions)
Silicon Systems Group	$	42	$	42	$	126	$	130
Applied Global Services	—		1		3		3
Display	1		2		2		6
Energy and Environmental Solutions	2		1		5		14
Total	$	45	$	46	$	136	$	153

Schedule of categories amortization expense was charged to

For the three and nine months ended July 27, 2014 and July 28, 2013, amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 27, 2014		July 28, 2013		July 27, 2014		July 28, 2013
	(In millions)
Cost of products sold	$	38	$	40	$	117	$	126
Research, development and engineering	1		—		1		1
Marketing and selling	5		5		16		21
General and administrative	1		1		2		5
Total	$	45	$	46	$	136	$	153

Future estimated amortization expense

As of July 27, 2014, future estimated amortization expense is expected to be as follows:

	Amortization Expense
	(In millions)
2014	45
2015	176
2016	169
2017	166
2018	164
Thereafter	111
Total	$	831