Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 28, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Details of goodwill as of July 28, 2019 and October 28, 2018 were as follows:

	July 28, 2019		October 28, 2018
	(In millions)
Semiconductor Systems	$	2,182	$	2,151
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Carrying amount	$	3,399	$	3,368

Summary of purchased technology and intangible assets

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

	July 28, 2019		October 28, 2018
	(In millions)
Purchased technology, net	$	80	$	109
Intangible assets - finite-lived, net	90		104
Total	$	170	$	213

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	July 28, 2019									October 28, 2018
	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	$	(1,393	)	$	(164	)	$	(1,557	)	$	(1,375	)	$	(150	)	$	(1,525	)
Applied Global Services	(30		)	(44		)	(74		)	(29		)	(44		)	(73		)
Display and Adjacent Markets	(142		)	(36		)	(178		)	(132		)	(36		)	(168		)
Corporate and Other	—			(9		)	(9		)	—			(9		)	(9		)
Accumulated amortization	$	(1,565	)	$	(253	)	$	(1,818	)	$	(1,536	)	$	(239	)	$	(1,775	)
Carrying amount	$	80		$	90		$	170		$	109		$	104		$	213

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	July 28, 2019		July 29, 2018		July 28, 2019		July 29, 2018
	(In millions)
Semiconductor Systems	$	11	$	47	$	32	$	138
Applied Global Services	—		—		1		1
Display and Adjacent Markets	4		3		10		10
Total	$	15	$	50	$	43	$	149

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 28, 2019		July 29, 2018		July 28, 2019		July 29, 2018
	(In millions)
Cost of products sold	$	9	$	44	$	28	$	134
Research, development and engineering	1		1		1		1
Marketing and selling	5		5		14		14
Total	$	15	$	50	$	43	$	149

Future estimated amortization expense

As of July 28, 2019, future estimated amortization expense is expected to be as follows: 

	Amortization Expense
	(In millions)
2019 (remaining 3 months)	$	14
2020	52
2021	39
2022	24
2023	11
Thereafter	30
Total	$	170