Balance Sheet Detail



	October 28, 2018		October 29, 2017

	(In millions)
Inventories
Customer service spares	$	989	$	595
Raw materials	1,020		603
Work-in-process	505		468
Finished goods	1,208		1,264
	$	3,722	$	2,930

Included in finished goods inventory is $19 million at October 28, 2018 and $331 million at October 29, 2017, 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 $350 million and $281 million of evaluation inventory at October 28, 2018 and October 29, 2017, respectively.



	October 28, 2018		October 29, 2017

	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	40	$	57
Prepaid expenses and other	390		317
	$	430	$	374



	Useful Life	October 28, 2018			October 29, 2017

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	245		$	160
Buildings and improvements	3-30	1,448			1,315
Demonstration and manufacturing equipment	3-5	1,282			1,129
Furniture, fixtures and other equipment	3-5	634			572
Construction in progress		203			135
Gross property, plant and equipment		3,812			3,311
Accumulated depreciation		(2,405		)	(2,245		)
		$	1,407		$	1,066

Depreciation expense was $258 million, $214 million and $200 million for fiscal 2018, 2017 and 2016 respectively.



	October 28, 2018		October 29, 2017

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	996	$	945
Compensation and employee benefits	639		666
Warranty	209		199
Dividends payable	193		106
Income taxes payable	136		112
Other accrued taxes	112		70
Interest payable	38		38
Other	398		314
	$	2,721	$	2,450



	October 28, 2018		October 29, 2017

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	444	$	381
Deferred revenue	903		1,284
	$	1,347	$	1,665

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 28, 2018		October 29, 2017

	(In millions)
Other Liabilities
Defined and postretirement benefit plans	$	177	$	160
Other	126		99
	$	303	$	259