Goodwill, Purchased Technology and Other Intangible Assets (Tables)

6 Months Ended

Apr. 29, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other indefinite-lived intangible assets

Details of goodwill as of April 29, 2018 and October 29, 2017 were as follows:

	April 29, 2018		October 29, 2017
	(In millions)
Semiconductor Systems	$	2,151	$	2,151
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Carrying amount	$	3,368	$	3,368

Summary of purchased technology and intangible assets

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

	April 29, 2018		October 29, 2017
	(In millions)
Purchased technology, net	$	199	$	288
Intangible assets - finite-lived, net	114		124
Total	$	313	$	412

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	April 29, 2018									October 29, 2017
	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			33			44			77
Display and Adjacent Markets	163			38			201			163			38			201
Corporate and Other	—			9			9			—			9			9
Gross carrying amount	$	1,645		$	343		$	1,988		$	1,645		$	343		$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,292	)	$	(140	)	$	(1,432	)	$	(1,210	)	$	(131	)	$	(1,341	)
Applied Global Services	(29		)	(44		)	(73		)	(28		)	(44		)	(72		)
Display and Adjacent Markets	(125		)	(36		)	(161		)	(119		)	(35		)	(154		)
Corporate and Other	—			(9		)	(9		)	—			(9		)	(9		)
Accumulated amortization	$	(1,446	)	$	(229	)	$	(1,675	)	$	(1,357	)	$	(219	)	$	(1,576	)
Carrying amount	$	199		$	114		$	313		$	288		$	124		$	412

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Six Months Ended
	April 29, 2018		April 30, 2017		April 29, 2018		April 30, 2017
	(In millions)
Semiconductor Systems	$	45	$	45	$	91	$	92
Applied Global Services	1		1		1		1
Display and Adjacent Markets	3		—		7		1
Total	$	49	$	46	$	99	$	94

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Six Months Ended
	April 29, 2018		April 30, 2017		April 29, 2018		April 30, 2017
	(In millions)
Cost of products sold	$	45	$	42	$	90	$	84
Research, development and engineering	—		—		—		1
Marketing and selling	4		4		9		9
Total	$	49	$	46	$	99	$	94

Future estimated amortization expense

As of April 29, 2018, future estimated amortization expense is expected to be as follows:

	Amortization Expense
	(In millions)
2018 (remaining 6 months)	$	99
2019	57
2020	52
2021	40
2022	65
Total	$	313