Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other indefinite-lived intangible assets

Details of goodwill and other indefinite-lived intangible assets as of July 31, 2016 and October 25, 2015 were as follows:

	July 31, 2016						October 25, 2015
	Goodwill		Other Intangible Assets		Total		Goodwill		Other Intangible Assets		Total
	(In millions)
Semiconductor Systems	$	2,151	$	—	$	2,151	$	2,151	$	—	$	2,151
Applied Global Services	999		5		1,004		996		5		1,001
Display and Adjacent Markets	155		20		175		155		20		175
Carrying amount	$	3,305	$	25	$	3,330	$	3,302	$	25	$	3,327

Summary of purchased technology and intangible assets

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

	July 31, 2016		October 25, 2015
	(In millions)
Purchased technology, net	$	450	$	575
Intangible assets - finite-lived, net	146		162
Intangible assets - indefinite-lived	25		25
Total	$	621	$	762

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	July 31, 2016									October 25, 2015
	Purchased Technology			Other Intangible Assets			Total			Purchased Technology			Other Intangible Assets			Total
	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,449		$	252		$	1,701		$	1,449		$	252		$	1,701
Applied Global Services	28			44			72			28			44			72
Display and Adjacent Markets	113			36			149			113			36			149
Corporate and Other	2			9			11			1			9			10
Gross carrying amount	$	1,592		$	341		$	1,933		$	1,591		$	341		$	1,932
Accumulated amortization:
Semiconductor Systems	$	(1,001	)	$	(109	)	$	(1,110	)	$	(876	)	$	(95	)	$	(971	)
Applied Global Services	(27		)	(44		)	(71		)	(26		)	(44		)	(70		)
Display and Adjacent Markets	(113		)	(34		)	(147		)	(113		)	(34		)	(147		)
Corporate and Other	(1		)	$	(8	)	(9		)	(1		)	(6		)	(7		)
Accumulated amortization	$	(1,142	)	$	(195	)	$	(1,337	)	$	(1,016	)	$	(179	)	$	(1,195	)
Carrying amount	$	450		$	146		$	596		$	575		$	162		$	737

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	July 31, 2016		July 26, 2015		July 31, 2016		July 26, 2015
	(In millions)
Semiconductor Systems	$	47	$	45	$	139	$	132
Applied Global Services	—		—		1		1
Display and Adjacent Markets	—		1		—		3
Corporate & Other	—		—		2		2
Total	$	47	$	46	$	142	$	138

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 31, 2016		July 26, 2015		July 31, 2016		July 26, 2015
	(In millions)
Cost of products sold	$	42	$	40	$	126	$	120
Research, development and engineering	—		1		1		1
Marketing and selling	5		5		15		15
General and administrative	—		—		—		2
Total	$	47	$	46	$	142	$	138

Future estimated amortization expense

As of July 31, 2016, future estimated amortization expense is expected to be as follows:

	Amortization Expense
	(In millions)
2016 (remaining 3 months)	$	47
2017	187
2018	185
2019	44
2020	39
Thereafter	94
Total	$	596