Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 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 July 30, 2017 and October 30, 2016 were as follows:

	July 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	199		18		217		155		20		175
Carrying amount	$	3,357	$	18	$	3,375	$	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:

	July 30, 2017		October 30, 2016
	(In millions)
Purchased technology, net	$	315	$	409
Intangible assets - finite-lived, net	128		141
Intangible assets - indefinite-lived	18		25
Total	$	461	$	575

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	July 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	146			38			184			115			36			151
Corporate and Other	—			9			9			1			9			10
Gross carrying amount	$	1,628		$	343		$	1,971		$	1,593		$	341		$	1,934
Accumulated amortization:
Semiconductor Systems	$	(1,169	)	$	(127	)	$	(1,296	)	$	(1,043	)	$	(113	)	$	(1,156	)
Applied Global Services	(28		)	(44		)	(72		)	(27		)	(44		)	(71		)
Display and Adjacent Markets	(116		)	(35		)	(151		)	(113		)	(34		)	(147		)
Corporate and Other	—			(9		)	(9		)	(1		)	(9		)	(10		)
Accumulated amortization	$	(1,313	)	$	(215	)	$	(1,528	)	$	(1,184	)	$	(200	)	$	(1,384	)
Carrying amount	$	315		$	128		$	443		$	409		$	141		$	550

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	July 30, 2017		July 31, 2016		July 30, 2017		July 31, 2016
	(In millions)
Semiconductor Systems	$	46	$	47	$	138	$	139
Applied Global Services	—		—		1		1
Display and Adjacent Markets	3		—		4		—
Corporate & Other	—		—		—		2
Total	$	49	$	47	$	143	$	142

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 30, 2017		July 31, 2016		July 30, 2017		July 31, 2016
	(In millions)
Cost of products sold	$	44	$	42	$	128	$	126
Research, development and engineering	—		—		1		1
Marketing and selling	5		5		14		15
Total	$	49	$	47	$	143	$	142

Future estimated amortization expense

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

	Amortization Expense
	(In millions)
2017 (remaining 3 months)	$	49
2018	194
2019	53
2020	48
2021	36
Thereafter	63
Total	$	443