Balance Sheet Detail



	October 25, 2015		October 26, 2014

	(In millions)
Inventories
Customer service spares	$	382	$	316
Raw materials	438		405
Work-in-process	294		316
Finished goods	719		530
	$	1,833	$	1,567

Included in finished goods inventory is $155 million and $104 million at October 25, 2015 and October 26, 2014, respectively, 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 $185 million and $164 million of evaluation inventory at October 25, 2015 and October 26, 2014, respectively.



	October 25, 2015		October 26, 2014

	(In millions)
Other Current Assets
Deferred income taxes, net	$	403	$	232
Prepaid income taxes and income taxes receivable	127		79
Prepaid expenses and other	194		257
	$	724	$	568



	Useful Life	October 25, 2015			October 26, 2014

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	157		$	156
Buildings and improvements	3-30	1,247			1,227
Demonstration and manufacturing equipment	3-5	920			829
Furniture, fixtures and other equipment	3-15	574			575
Construction in progress		48			61
Gross property, plant and equipment		2,946			2,848
Accumulated depreciation		(2,054		)	(1,987		)
		$	892		$	861

Depreciation expense was $185 million, $191 million and $211 million for fiscal 2015, 2014 and 2013 respectively.

During fiscal 2015 and 2013, fixed asset impairment charges of $4 million and $12 million, respectively were recorded in relation to the Energy and Environmental Solutions segment restructuring activities, as discussed in Note 11, Restructuring Charges and Asset Impairments. There was no fixed asset impairment charge recorded during fiscal 2014.



	October 25, 2015		October 26, 2014

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	658	$	613
Compensation and employee benefits	509		524
Warranty	126		113
Income taxes payable	60		142
Dividends payable	116		122
Other accrued taxes	58		51
Interest payable	36		30
Other	270		288
	$	1,833	$	1,883



	October 25, 2015		October 26, 2014

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	132	$	286
Deferred revenue	633		654
	$	765	$	940

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 25, 2015		October 26, 2014

	(In millions)
Other Liabilities
Deferred income taxes	$	56	$	32
Income taxes payable	227		225
Defined and postretirement benefit plans	187		208
Other	85		71
	$	555	$	536