Balance Sheet Detail



	October 29, 2017		October 30, 2016

	(In millions)
Inventories
Customer service spares	$	595	$	452
Raw materials	603		474
Work-in-process	468		393
Finished goods	1,264		731
	$	2,930	$	2,050

Included in finished goods inventory is $331 million at October 29, 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 $281 million and $197 million of evaluation inventory at October 29, 2017 and October 30, 2016, respectively.



	October 29, 2017		October 30, 2016

	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	57	$	87
Prepaid expenses and other	317		188
	$	374	$	275



	Useful Life	October 29, 2017			October 30, 2016

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	160		$	159
Buildings and improvements	3-30	1,315			1,261
Demonstration and manufacturing equipment	3-5	1,129			992
Furniture, fixtures and other equipment	3-15	572			547
Construction in progress		135			84
Gross property, plant and equipment		3,311			3,043
Accumulated depreciation		(2,245		)	(2,106		)
		$	1,066		$	937

Depreciation expense was $214 million, $200 million and $185 million for fiscal 2017, 2016 and 2015 respectively.

In November 2017, Applied acquired additional property for $100 million in cash to support the Company’s growth.



	October 29, 2017		October 30, 2016

	(In millions)
Accounts Payable, Notes Payable and Accrued Expenses
Accounts payable	$	945	$	813
Notes payable, short-term	—		200
Compensation and employee benefits	666		517
Warranty	199		153
Dividends payable	106		108
Income taxes payable	112		101
Other accrued taxes	70		50
Interest payable	38		31
Other	314		283
	$	2,450	$	2,256



	October 29, 2017		October 30, 2016

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	381	$	471
Deferred revenue	1,284		905
	$	1,665	$	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.



	October 29, 2017		October 30, 2016

	(In millions)
Other Liabilities
Income taxes payable	$	392	$	337
Defined and postretirement benefit plans	160		182
Other	99		77
	$	651	$	596