Balance Sheet Detail



	July 30, 2017		October 30, 2016

	(In millions)
Inventories
Customer service spares	$	520	$	452
Raw materials	634		474
Work-in-process	466		393
Finished goods	1,256		731
	$	2,876	$	2,050

Included in finished goods inventory are $347 million at July 30, 2017, and $190 million at October 30, 2016, 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 $255 million and $197 million of evaluation inventory at July 30, 2017 and October 30, 2016, respectively.



	July 30, 2017		October 30, 2016

	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	82	$	87
Prepaid expenses and other	284		188
	$	366	$	275



	Useful Life	July 30, 2017			October 30, 2016

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	159		$	159
Buildings and improvements	3-30	1,284			1,261
Demonstration and manufacturing equipment	3-5	1,112			992
Furniture, fixtures and other equipment	3-15	581			547
Construction in progress		111			84
Gross property, plant and equipment		3,247			3,043
Accumulated depreciation		(2,251		)	(2,106		)
		$	996		$	937



	July 30, 2017		October 30, 2016

	(In millions)
Accounts Payable, Notes Payable and Accrued Expenses
Accounts payable	$	935	$	813
Notes payable, short-term	—		200
Compensation and employee benefits	594		517
Warranty	192		153
Dividends payable	107		108
Income taxes payable	12		101
Other accrued taxes	41		50
Interest payable	59		31
Other	315		283
	$	2,255	$	2,256



	July 30, 2017		October 30, 2016

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	408	$	471
Deferred revenue	1,708		905
	$	2,116	$	1,376

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 30, 2017		October 30, 2016

	(In millions)
Other Liabilities
Deferred income taxes	$	8	$	1
Income taxes payable	389		337
Defined and postretirement benefit plans	193		182
Other	98		76
	$	688	$	596