Balance Sheet Detail



	October 26, 2014		October 27, 2013

	(In millions)
Inventories
Customer service spares	$	316	$	283
Raw materials	405		361
Work-in-process	316		292
Finished goods	530		477
	$	1,567	$	1,413

Included in finished goods inventory is $104 million at October 26, 2014, and $136 million at October 27, 2013, 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 $192 million and $177 million of evaluation inventory at October 26, 2014 and October 27, 2013, respectively.



	October 26, 2014		October 27, 2013

	(In millions)
Other Current Assets
Deferred income taxes, net	$	232	$	323
Prepaid expenses	172		135
Prepaid income taxes and income taxes receivable	79		178
Other	85		69
	$	568	$	705



	Useful Life	October 26, 2014			October 27, 2013

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	156		$	167
Buildings and improvements	3-30	1,227			1,217
Demonstration and manufacturing equipment	3-5	829			792
Furniture, fixtures and other equipment	3-15	575			589
Construction in progress		61			52
Gross property, plant and equipment		2,848			2,817
Accumulated depreciation		(1,987		)	(1,967		)
		$	861		$	850

Depreciation expense was $191 million, $211 million and $198 million for fiscal 2014, 2013 and 2012, respectively.

During fiscal 2013 and 2012, fixed asset impairment charges of $12 million and $20 million, respectively were recorded in relation to the Energy and Environmental Solutions segment restructuring plan, as discussed in Note 11, Restructuring Charges and Asset Impairments.



	October 26, 2014		October 27, 2013

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	613	$	582
Compensation and employee benefits	524		417
Warranty	113		102
Income taxes payable	142		73
Dividends payable	122		121
Other accrued taxes	51		41
Interest payable	30		30
Restructuring reserve	9		39
Other	279		244
	$	1,883	$	1,649



	October 26, 2014		October 27, 2013

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	286	$	175
Deferred revenue	654		619
	$	940	$	794

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.



	October 26, 2014		October 27, 2013

	(In millions)
Other Liabilities
Deferred income taxes	$	32	$	71
Income taxes payable	225		174
Defined and postretirement benefit plans	208		193
Other	71		128
	$	536	$	566