Balance Sheet Detail



	May 1, 2016		October 25, 2015

	(In millions)
Inventories
Customer service spares	$	412	$	382
Raw materials	475		461
Work-in-process	337		271
Finished goods	700		719
	$	1,924	$	1,833

Included in finished goods inventory are $131 million at May 1, 2016, and $155 million at October 25, 2015, 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 $189 million and $185 million of evaluation inventory at May 1, 2016 and October 25, 2015, respectively.



	May 1, 2016		October 25, 2015

	(In millions)
Other Current Assets
Deferred income taxes, net¹	$	—	$	403
Prepaid income taxes and income taxes receivable	72		127
Prepaid expenses and other	179		194
	$	251	$	724

¹ May 1, 2016 balance reflects the effects of the prospective adoption of the authoritative guidance in the first quarter of fiscal 2016, which required all deferred tax assets and liabilities, and any related valuation allowance to be classified as noncurrent on the balance sheet.



	Useful Life	May 1, 2016			October 25, 2015

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	157		$	157
Buildings and improvements	3-30	1,249			1,247
Demonstration and manufacturing equipment	3-5	986			920
Furniture, fixtures and other equipment	3-15	567			574
Construction in progress		53			48
Gross property, plant and equipment		3,012			2,946
Accumulated depreciation		(2,108		)	(2,054		)
		$	904		$	892



	May 1, 2016		October 25, 2015

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	644	$	658
Compensation and employee benefits	361		509
Warranty	121		126
Dividends payable	109		116
Income taxes payable	46		60
Other accrued taxes	43		58
Interest payable	31		36
Other	275		270
	$	1,630	$	1,833



	May 1, 2016		October 25, 2015

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	306	$	132
Deferred revenue	675		633
	$	981	$	765

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



	May 1, 2016		October 25, 2015

	(In millions)
Other Liabilities
Deferred income taxes	$	14	$	56
Income taxes payable	272		227
Defined and postretirement benefit plans	188		187
Other	82		85
	$	556	$	555