Industry Segment Operations (Tables)

3 Months Ended

Jan. 26, 2020

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
	Net Sales		Operating Income (Loss)
	(In millions)
January 26, 2020:
Semiconductor Systems	$	2,814	$	915
Applied Global Services	997		278
Display and Adjacent Markets	332		38
Corporate and Other	19		(189)
Total	$	4,162	$	1,042
January 27, 2019:
Semiconductor Systems	$	2,268	$	631
Applied Global Services	962		285
Display and Adjacent Markets	507		115
Corporate and Other	16		(123)
Total	$	3,753	$	908

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
	January 26, 2020				January 27, 2019
	(In millions, except percentages)
China	$	1,272	31	%	$	968	26	%
Korea	508		12	%	572		15	%
Taiwan	1,365		33	%	656		18	%
Japan	351		8	%	651		17	%
Southeast Asia	72		2	%	160		4	%
Asia Pacific	3,568		86	%	3,007		80	%
United States	441		10	%	450		12	%
Europe	153		4	%	296		8	%
Total	$	4,162	100	%	$	3,753	100	%

Disaggregation of Revenue

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

	Three Months Ended
	January 26, 2020		January 27, 2019
Foundry, logic and other	68	%	44	%
Dynamic random-access memory (DRAM)	15	%	21	%
Flash memory	17	%	35	%
	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
	January 26, 2020		January 27, 2019
	(In millions)
Unallocated net sales	$	19	$	16
Unallocated cost of products sold and expenses	(115)		(74)
Share-based compensation	(93)		(65)
Total	$	(189)	$	(123)

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 three months ended January 26, 2020, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	29	%
Samsung Electronics Co., Ltd.	14	%