Industry Segment Operations (Tables)

9 Months Ended

Jul. 28, 2019

Segment Reporting [Abstract]

Net sales and operating income (loss) for each reportable segment

Net sales and operating income (loss) for each reportable segment were as follows: 

	Three Months Ended					Nine Months Ended
	Net Sales		Operating Income (Loss)			Net Sales		Operating Income (Loss)
	(In millions)
July 28, 2019:
Semiconductor Systems	$	2,273	$	613		$	6,725	$	1,823
Applied Global Services	931		259			2,877		827
Display and Adjacent Markets	339		41			1,194		198
Corporate and Other	19		(111		)	58		(362		)
Total	$	3,562	$	802		$	10,854	$	2,486
July 29, 2018:
Semiconductor Systems	$	2,578	$	831		$	8,331	$	2,847
Applied Global Services	952		280			2,778		814
Display and Adjacent Markets	616		156			1,778		456
Corporate and Other	16		(174		)	59		(517		)
Total	$	4,162	$	1,093		$	12,946	$	3,600

Revenue from external customers by geographic areas

Net sales by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows:

	Three Months Ended								Nine Months Ended
	July 28, 2019				July 29, 2018				July 28, 2019				July 29, 2018
	(In millions, except percentages)
China	$	1,117	31	%	$	1,647	39	%	$	3,078	28	%	$	3,911	30	%
Korea	445		12	%	572		14	%	1,458		13	%	3,007		23	%
Taiwan	596		17	%	506		12	%	2,046		19	%	1,913		15	%
Japan	556		16	%	700		17	%	1,727		16	%	1,684		13	%
Southeast Asia	134		4	%	165		4	%	413		4	%	600		5	%
Asia Pacific	2,848		80	%	3,590		86	%	8,722		80	%	11,115		86	%
United States	552		15	%	348		9	%	1,459		14	%	1,063		8	%
Europe	162		5	%	224		5	%	673		6	%	768		6	%
Total	$	3,562	100	%	$	4,162	100	%	$	10,854	100	%	$	12,946	100	%

Disaggregation of Revenue

Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:

	Three Months Ended				Nine Months Ended
	July 28, 2019		July 29, 2018		July 28, 2019		July 29, 2018
Foundry, logic and other	49	%	36	%	50	%	34	%
Dynamic random-access memory (DRAM)	27	%	25	%	22	%	28	%
Flash memory	24	%	39	%	28	%	38	%
	100	%	100	%	100	%	100	%

Reconciliations of total segment operating income to Applied's consolidated operating income (loss)

The reconciling items included in Corporate and Other were as follows: 

	Three Months Ended						Nine Months Ended
	July 28, 2019			July 29, 2018			July 28, 2019			July 29, 2018
	(In millions)
Unallocated net sales	$	19		$	16		$	58		$	59
Unallocated cost of products sold and expenses	(63		)	(126		)	(223		)	(383		)
Share-based compensation	(67		)	(64		)	(197		)	(193		)
Total	$	(111	)	$	(174	)	$	(362	)	$	(517	)

Companies accounted for at least 10 percent of Applied's net sales

The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended July 28, 2019, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	13	%
Intel Corporation	13	%
Toshiba	10	%
SK Hynix Inc.	10	%