Balance Sheet Detail



	October 30, 2016		October 25, 2015

	(In millions)
Inventories
Customer service spares	$	452	$	382
Raw materials	474		461
Work-in-process	393		271
Finished goods	731		719
	$	2,050	$	1,833

Included in finished goods inventory is $190 million at October 30, 2016 and $155 million 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 $197 million and $185 million of evaluation inventory at October 30, 2016 and October 25, 2015, respectively.



	October 30, 2016		October 25, 2015

	(In millions)
Other Current Assets
Deferred income taxes, net¹	$	—	$	403
Prepaid income taxes and income taxes receivable	87		127
Prepaid expenses and other	188		194
	$	275	$	724

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	October 30, 2016			October 25, 2015

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	159		$	157
Buildings and improvements	3-30	1,261			1,247
Demonstration and manufacturing equipment	3-5	992			920
Furniture, fixtures and other equipment	3-15	547			574
Construction in progress		84			48
Gross property, plant and equipment		3,043			2,946
Accumulated depreciation		(2,106		)	(2,054		)
		$	937		$	892

Depreciation expense was $200 million, $185 million and $191 million for fiscal 2016, 2015 and 2014 respectively.



	October 30, 2016		October 25, 2015

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	813	$	658
Compensation and employee benefits	517		509
Warranty	153		126
Dividends payable	108		116
Income taxes payable	101		60
Other accrued taxes	50		58
Interest payable	31		36
Other	283		270
	$	2,056	$	1,833



	October 30, 2016		October 25, 2015

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	471	$	132
Deferred revenue	905		633
	$	1,376	$	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.



	October 30, 2016		October 25, 2015

	(In millions)
Other Liabilities
Deferred income taxes	$	1	$	56
Income taxes payable	337		227
Defined and postretirement benefit plans	182		187
Other	76		85
	$	596	$	555