Goodwill, Purchased Technology and Other Intangible Assets (Tables)

6 Months Ended

Apr. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other indefinite-lived intangible assets

Details of goodwill and other indefinite-lived intangible assets as of April 30, 2017 and October 30, 2016 were as follows:

	April 30, 2017						October 30, 2016
	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	1,007		—		1,007		1,010		5		1,015
Display and Adjacent Markets	172		18		190		155		20		175
Carrying amount	$	3,330	$	18	$	3,348	$	3,316	$	25	$	3,341

Summary of purchased technology and intangible assets

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

	April 30, 2017		October 30, 2016
	(In millions)
Purchased technology, net	$	339	$	409
Intangible assets - finite-lived, net	133		141
Intangible assets - indefinite-lived	18		25
Total	$	490	$	575

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	April 30, 2017									October 30, 2016
	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	33			44			77			28			44			72
Display and Adjacent Markets	125			38			163			115			36			151
Corporate and Other	—			9			9			1			9			10
Gross carrying amount	$	1,607		$	343		$	1,950		$	1,593		$	341		$	1,934
Accumulated amortization:
Semiconductor Systems	$	(1,127	)	$	(122	)	$	(1,249	)	$	(1,043	)	$	(113	)	$	(1,156	)
Applied Global Services	(28		)	(44		)	(72		)	(27		)	(44		)	(71		)
Display and Adjacent Markets	(113		)	(35		)	(148		)	(113		)	(34		)	(147		)
Corporate and Other	—			(9		)	(9		)	(1		)	(9		)	(10		)
Accumulated amortization	$	(1,268	)	$	(210	)	$	(1,478	)	$	(1,184	)	$	(200	)	$	(1,384	)
Carrying amount	$	339		$	133		$	472		$	409		$	141		$	550

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Six Months Ended
	April 30, 2017		May 1, 2016		April 30, 2017		May 1, 2016
	(In millions)
Semiconductor Systems	$	45	$	46	$	92	$	92
Applied Global Services	1		—		1		1
Display and Adjacent Markets	—		—		1		—
Corporate & Other	—		1		—		2
Total	$	46	$	47	$	94	$	95

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Six Months Ended
	April 30, 2017		May 1, 2016		April 30, 2017		May 1, 2016
	(In millions)
Cost of products sold	$	42	$	42	$	84	$	84
Research, development and engineering	—		—		1		1
Marketing and selling	4		5		9		10
Total	$	46	$	47	$	94	$	95

Future estimated amortization expense

As of April 30, 2017, future estimated amortization expense is expected to be as follows:

	Amortization Expense
	(In millions)
2017 (remaining 6 months)	$	95
2018	189
2019	48
2020	42
2021	36
Thereafter	62
Total	$	472