Balance Sheet Detail



	July 31, 2016		October 25, 2015

	(In millions)
Inventories
Customer service spares	$	432	$	382
Raw materials	461		461
Work-in-process	392		271
Finished goods	741		719
	$	2,026	$	1,833

Included in finished goods inventory are $183 million at July 31, 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 $205 million and $185 million of evaluation inventory at July 31, 2016 and October 25, 2015, respectively.



	July 31, 2016		October 25, 2015

	(In millions)
Other Current Assets
Deferred income taxes, net¹	$	—	$	403
Prepaid income taxes and income taxes receivable	76		127
Prepaid expenses and other	179		194
	$	255	$	724

¹ July 31, 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	July 31, 2016			October 25, 2015

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	159		$	157
Buildings and improvements	3-30	1,259			1,247
Demonstration and manufacturing equipment	3-5	1,017			920
Furniture, fixtures and other equipment	3-15	569			574
Construction in progress		54			48
Gross property, plant and equipment		3,058			2,946
Accumulated depreciation		(2,153		)	(2,054		)
		$	905		$	892



	July 31, 2016		October 25, 2015

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	717	$	658
Compensation and employee benefits	449		509
Warranty	139		126
Dividends payable	108		116
Income taxes payable	23		60
Other accrued taxes	45		58
Interest payable	35		36
Other	284		270
	$	1,800	$	1,833



	July 31, 2016		October 25, 2015

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	383	$	132
Deferred revenue	781		633
	$	1,164	$	765

Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment.



	July 31, 2016		October 25, 2015

	(In millions)
Other Liabilities
Deferred income taxes	$	16	$	56
Income taxes payable	284		227
Defined and postretirement benefit plans	190		187
Other	83		85
	$	573	$	555