(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
☑ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Page | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1: | ||||||||
Item 2: | ||||||||
Item 3: | ||||||||
Item 4: | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1: | ||||||||
Item 1A: | ||||||||
Item 2: | ||||||||
Item 3: | ||||||||
Item 4: | ||||||||
Item 5: | ||||||||
Item 6: | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | |||||||||||||||||||||||
Marketing and selling | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest and other income (loss), net | ( | ||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of shares: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Change in unrealized gain (loss) on available-for-sale investments | |||||||||||||||||||||||
Change in unrealized net loss on derivative instruments | ( | ( | ( | ||||||||||||||||||||
Change in cumulative translation adjustments | ( | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Long-term investments | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Purchased technology and other intangible assets, net | |||||||||||
Deferred income taxes and other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable and accrued expenses | |||||||||||
Contract liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Income taxes payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended July 26, 2020 | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance as of July 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended July 26, 2020 | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 27, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance as of July 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended July 28, 2019 | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance as of July 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended July 28, 2019 | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of October 28, 2018 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance as of July 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended | |||||||||||
July 26, 2020 | July 28, 2019 | ||||||||||
(Unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | |||||||||||
Other | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ||||||||||
Other current and non-current assets | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ||||||||||
Contract liabilities | |||||||||||
Income taxes payable | ( | ( | |||||||||
Other liabilities | |||||||||||
Cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Cash paid for acquisitions, net of cash acquired | ( | ( | |||||||||
Proceeds from sales and maturities of investments | |||||||||||
Purchases of investments | ( | ( | |||||||||
Cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Debt borrowings, net of issuance costs | |||||||||||
Debt repayments | ( | ||||||||||
Proceeds from common stock issuances | |||||||||||
Common stock repurchases | ( | ( | |||||||||
Tax withholding payments for vested equity awards | ( | ( | |||||||||
Payments of dividends to stockholders | ( | ( | |||||||||
Cash used in financing activities | ( | ( | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | ( | ||||||||||
Cash, cash equivalents and restricted cash equivalents — beginning of period | |||||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | $ | |||||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash equivalents included in deferred income taxes and other assets | |||||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash payments for income taxes | $ | $ | |||||||||
Cash refunds from income taxes | $ | $ | |||||||||
Cash payments for interest | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares | |||||||||||||||||||||||
Denominator for diluted earnings per share | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Potentially weighted dilutive securities |
July 26, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | — | — | |||||||||||||||||||||
Municipal securities | — | — | |||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | — | — | |||||||||||||||||||||
Total Cash equivalents | — | — | |||||||||||||||||||||
Total Cash and Cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Short-term and long-term investments: | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | |||||||||||||||||||||||
Asset-backed and mortgage-backed securities | |||||||||||||||||||||||
Total fixed income securities | |||||||||||||||||||||||
Publicly traded equity securities | |||||||||||||||||||||||
Equity investments in privately-held companies | |||||||||||||||||||||||
Total equity investments | |||||||||||||||||||||||
Total short-term and long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total Cash, Cash equivalents and Investments | $ | $ | $ | $ |
October 27, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | — | — | |||||||||||||||||||||
U.S. Treasury and agency securities | — | — | |||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | — | — | |||||||||||||||||||||
Total Cash equivalents | — | — | |||||||||||||||||||||
Total Cash and Cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Short-term and long-term investments: | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. government securities* | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | |||||||||||||||||||||||
Asset-backed and mortgage-backed securities | |||||||||||||||||||||||
Total fixed income securities | |||||||||||||||||||||||
Publicly traded equity securities | |||||||||||||||||||||||
Equity investments in privately-held companies | |||||||||||||||||||||||
Total equity investments | |||||||||||||||||||||||
Total short-term and long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total Cash, Cash equivalents and Investments | $ | $ | $ | $ |
Cost | Estimated Fair Value | ||||||||||
(In millions) | |||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one through five years | |||||||||||
No single maturity date** | |||||||||||
Total | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Publicly traded equity securities | |||||||||||||||||||||||
Unrealized gain | $ | $ | $ | $ | |||||||||||||||||||
Unrealized loss | ( | ( | ( | ||||||||||||||||||||
Realized gain on sales | |||||||||||||||||||||||
Equity investments in privately-held companies | |||||||||||||||||||||||
Unrealized gain | |||||||||||||||||||||||
Unrealized loss | ( | ( | ( | ( | |||||||||||||||||||
Realized gain on sales or other | |||||||||||||||||||||||
Realized loss on sales or impairment | ( | ( | ( | ||||||||||||||||||||
Total gain (loss) on equity investments, net | $ | $ | $ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Available-for-sale debt security investments | |||||||||||||||||||||||||||||||||||
Money market funds* | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Treasury and agency securities | |||||||||||||||||||||||||||||||||||
Non-U.S. government securities | |||||||||||||||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | |||||||||||||||||||||||||||||||||||
Asset-backed and mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Total available-for-sale debt security investments | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Equity investments with readily determinable values | |||||||||||||||||||||||||||||||||||
Publicly traded equity securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total equity investments with readily determinable values | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||
Foreign exchange contracts | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Interest rate contracts | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended | |||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | ||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||
Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded | Amount of Gain or (Loss) Reclassified from AOCI into Income | Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | Total Amount Presented in the Condensed Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded | Amount of Gain or (Loss) Reclassified from AOCI into Income | Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||||||||||||||||||||
Net Sales | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Cost of products sold | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Research, development and engineering | $ | $ | |||||||||||||||||||||||||||||||||
General and administrative | $ | $ | ( | ( | |||||||||||||||||||||||||||||||
Interest Rate Contracts: | |||||||||||||||||||||||||||||||||||
Interest expense | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | ||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||
Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded | Amount of Gain or (Loss) Reclassified from AOCI into Income | Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded | Amount of Gain or (Loss) Reclassified from AOCI into Income | Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||||||||||||||||||||
Net Sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Cost of products sold | $ | ( | $ | ||||||||||||||||||||||||||||||||
Research, development and engineering | $ | $ | |||||||||||||||||||||||||||||||||
General and administrative | $ | $ | ( | ( | |||||||||||||||||||||||||||||||
Interest Rate Contracts: | |||||||||||||||||||||||||||||||||||
Interest expense | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Amount of Gain or (Loss) Recognized in Income | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
Location of Gain or (Loss) Recognized in Income | July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Foreign exchange contracts | General and administrative | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||
Foreign exchange contracts | Interest and other income, net | ||||||||||||||||||||||||||||
Total return swaps - deferred compensation | Cost of products sold | ||||||||||||||||||||||||||||
Total return swaps - deferred compensation | Operating expenses | ||||||||||||||||||||||||||||
Total return swaps - deferred compensation | Interest and other income, net | ( | |||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Contract assets | $ | $ | |||||||||
Contract liabilities | $ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Inventories | |||||||||||
Customer service spares | $ | $ | |||||||||
Raw materials | |||||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
$ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Other Current Assets | |||||||||||
Prepaid income taxes and income taxes receivable | $ | $ | |||||||||
Prepaid expenses and other | |||||||||||
$ | $ |
Useful Life | July 26, 2020 | October 27, 2019 | |||||||||||||||
(In years) | (In millions) | ||||||||||||||||
Property, Plant and Equipment, Net | |||||||||||||||||
Land and improvements | $ | $ | |||||||||||||||
Buildings and improvements | |||||||||||||||||
Demonstration and manufacturing equipment | |||||||||||||||||
Furniture, fixtures and other equipment | |||||||||||||||||
Construction in progress | |||||||||||||||||
Gross property, plant and equipment | |||||||||||||||||
Accumulated depreciation | ( | ( | |||||||||||||||
$ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Deferred Income Taxes and Other Assets | |||||||||||
Non-current deferred income taxes and income taxes receivable | $ | $ | |||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
$ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Accounts Payable and Accrued Expenses | |||||||||||
Accounts payable | $ | $ | |||||||||
Compensation and employee benefits | |||||||||||
Warranty | |||||||||||
Dividends payable | |||||||||||
Income taxes payable | |||||||||||
Other accrued taxes | |||||||||||
Interest payable | |||||||||||
Operating lease liabilities, current | |||||||||||
Other | |||||||||||
$ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Other Liabilities | |||||||||||
Defined and postretirement benefit plans | $ | $ | |||||||||
Operating lease liabilities, non-current | |||||||||||
Other | |||||||||||
$ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Semiconductor Systems | $ | $ | |||||||||
Applied Global Services | |||||||||||
Display and Adjacent Markets | |||||||||||
Corporate and Other | |||||||||||
Carrying amount | $ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Purchased technology, net | $ | $ | |||||||||
Intangible assets - finite-lived, net | |||||||||||
Total | $ | $ |
July 26, 2020 | October 27, 2019 | ||||||||||||||||||||||||||||||||||
Purchased Technology | Other Intangible Assets | Total | Purchased Technology | Other Intangible Assets | Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Gross carrying amount: | |||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Applied Global Services | |||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | |||||||||||||||||||||||||||||||||||
Corporate and Other | |||||||||||||||||||||||||||||||||||
Gross carrying amount | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accumulated amortization: | |||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
Applied Global Services | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Display and Adjacent Markets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Corporate and Other | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Accumulated amortization | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
Carrying amount | $ | $ | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Semiconductor Systems | $ | $ | $ | $ | |||||||||||||||||||
Applied Global Services | |||||||||||||||||||||||
Display and Adjacent Markets | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cost of products sold | $ | $ | $ | $ | |||||||||||||||||||
Research, development and engineering | |||||||||||||||||||||||
Marketing and selling | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Amortization Expense | |||||
(In millions) | |||||
2020 (remaining 3 months) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total | $ |
Principal Amount | |||||||||||||||||||||||
July 26, 2020 | October 27, 2019 | Effective Interest Rate | Interest Pay Dates | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Current portion of long-term debt: | |||||||||||||||||||||||
$ | $ | April 1, October 1 | |||||||||||||||||||||
Total current portion of long-term debt | |||||||||||||||||||||||
Long-term debt, net of current portion: | |||||||||||||||||||||||
June 15, December 15 | |||||||||||||||||||||||
April 1, October 1 | |||||||||||||||||||||||
April 1, October 1 | |||||||||||||||||||||||
June 1, December 1 | |||||||||||||||||||||||
April 1, October 1 | |||||||||||||||||||||||
June 15, December 15 | |||||||||||||||||||||||
April 1, October 1 | |||||||||||||||||||||||
June 1, December 1 | |||||||||||||||||||||||
Total unamortized discount | ( | ( | |||||||||||||||||||||
Total unamortized debt issuance costs | ( | ( | |||||||||||||||||||||
Total long-term debt, net of current portion | $ | $ | |||||||||||||||||||||
Total debt | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||
July 26, 2020 | July 26, 2020 | ||||||||||
(In millions, except percentages) | |||||||||||
Operating lease cost | $ | $ | |||||||||
Weighted-average remaining lease term (in years) | |||||||||||
Weighted-average discount rate |
Nine Months Ended | |||||
July 26, 2020 | |||||
(In millions) | |||||
Operating cash flows paid for operating leases | $ | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ |
Operating Leases | |||||
Fiscal | (In millions) | ||||
2020 (remaining 3 months) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less imputed interest | ( | ||||
Total | $ |
Lease Payments | |||||
Fiscal | (In millions) | ||||
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
$ |
Unrealized Gain (Loss) on Investments, Net | Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | Defined and Postretirement Benefit Plans | Cumulative Translation Adjustments | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of October 27, 2019 | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified out of AOCI | ( | ( | ( | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||||||||
Balance as of July 26, 2020 | $ | $ | ( | $ | ( | $ | $ | ( |
Unrealized Gain (Loss) on Investments, Net | Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | Defined and Postretirement Benefit Plans | Cumulative Translation Adjustments | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of October 28, 2018 | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||
Adoption of new accounting standards (a) | ( | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||||||||
Balance as of July 28, 2019 | $ | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(in millions, except per share amount) | |||||||||||||||||||||||
Shares of common stock repurchased | |||||||||||||||||||||||
Cost of stock repurchased | $ | $ | $ | $ | |||||||||||||||||||
Average price paid per share | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cost of products sold | $ | $ | $ | $ | |||||||||||||||||||
Research, development and engineering | |||||||||||||||||||||||
Marketing and selling | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total share-based compensation | $ | $ | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(In millions, except per share amounts) | |||||||||||
Outstanding as of October 27, 2019 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Canceled | ( | $ | |||||||||
Outstanding as of July 26, 2020 | $ |
Three and Nine Months Ended | |||||||||||
July 26, 2020 | July 28, 2019 | ||||||||||
Dividend yield | |||||||||||
Expected volatility | |||||||||||
Risk-free interest rate | |||||||||||
Expected life (in years) | |||||||||||
Weighted average estimated fair value | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Warranties issued | |||||||||||||||||||||||
Change in reserves related to preexisting warranty | |||||||||||||||||||||||
Consumption of reserves | ( | ( | ( | ( | |||||||||||||||||||
Ending balance | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
Net Sales | Operating Income (Loss) | Net Sales | Operating Income (Loss) | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
July 26, 2020: | |||||||||||||||||||||||
Semiconductor Systems | $ | $ | $ | $ | |||||||||||||||||||
Applied Global Services | |||||||||||||||||||||||
Display and Adjacent Markets | |||||||||||||||||||||||
Corporate and Other | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
July 28, 2019: | |||||||||||||||||||||||
Semiconductor Systems | $ | $ | $ | $ | |||||||||||||||||||
Applied Global Services | |||||||||||||||||||||||
Display and Adjacent Markets | |||||||||||||||||||||||
Corporate and Other | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | % | $ | % | % | $ | % | $ | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Korea | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taiwan | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Japan | % | % | ( | % | % | % | ( | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Southeast Asia | % | % | ( | % | % | % | ( | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | % | % | ( | % | % | % | ( | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Europe | % | % | % | % | % | ( | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | % | $ | % | % | $ | % | $ | % | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
Foundry, logic and other | % | % | % | % | |||||||||||||||||||
Dynamic random-access memory (DRAM) | % | % | % | % | |||||||||||||||||||
Flash memory | % | % | % | % | |||||||||||||||||||
% | % | % | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Unallocated net sales | $ | $ | $ | $ | |||||||||||||||||||
Unallocated cost of products sold and expenses | ( | ( | ( | ( | |||||||||||||||||||
Share-based compensation | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( |
Percentage of Net Sales | |||||
Taiwan Semiconductor Manufacturing Company Limited | % | ||||
Samsung Electronics Co., Ltd. | % | ||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||||||||||||||||||||||
Net sales | $ | 4,395 | $ | 3,562 | $ | 833 | $ | 12,514 | $ | 10,854 | $ | 1,660 | |||||||||||||||||||||||
Gross margin | 44.5 | % | 43.7 | % | 0.8 points | 44.4 | % | 43.8 | % | 0.6 points | |||||||||||||||||||||||||
Operating income | $ | 1,108 | $ | 802 | $ | 306 | $ | 3,082 | $ | 2,486 | $ | 596 | |||||||||||||||||||||||
Operating margin | 25.2 | % | 22.5 | % | 2.7 points | 24.6 | % | 22.9 | % | 1.7 points | |||||||||||||||||||||||||
Net income | $ | 841 | $ | 571 | $ | 270 | $ | 2,488 | $ | 2,008 | $ | 480 | |||||||||||||||||||||||
Earnings per diluted share | $ | 0.91 | $ | 0.61 | $ | 0.30 | $ | 2.69 | $ | 2.11 | $ | 0.58 | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 2,916 | 66 | % | $ | 2,273 | 64 | % | 28 | % | $ | 8,297 | 66 | % | $ | 6,725 | 62 | % | 23 | % | |||||||||||||||||||||||||||||||||||||||
Applied Global Services | 1,034 | 24 | % | 931 | 26 | % | 11 | % | 3,049 | 24 | % | 2,877 | 27 | % | 6 | % | |||||||||||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 425 | 10 | % | 339 | 10 | % | 25 | % | 1,122 | 9 | % | 1,194 | 11 | % | (6) | % | |||||||||||||||||||||||||||||||||||||||||||
Corporate and Other | 20 | — | % | 19 | — | % | 5 | % | 46 | 1 | % | 58 | — | % | (21) | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,395 | 100 | % | $ | 3,562 | 100 | % | 23 | % | $ | 12,514 | 100 | % | $ | 10,854 | 100 | % | 15 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | 1,470 | 33 | % | $ | 1,117 | 31 | % | 32 | % | $ | 3,880 | 31 | % | $ | 3,078 | 28 | % | 26 | % | |||||||||||||||||||||||||||||||||||||||
Korea | 1,051 | 24 | % | 445 | 12 | % | 136 | % | 2,312 | 18 | % | 1,458 | 13 | % | 59 | % | |||||||||||||||||||||||||||||||||||||||||||
Taiwan | 687 | 16 | % | 596 | 17 | % | 15 | % | 3,081 | 25 | % | 2,046 | 19 | % | 51 | % | |||||||||||||||||||||||||||||||||||||||||||
Japan | 472 | 11 | % | 556 | 16 | % | (15) | % | 1,290 | 10 | % | 1,727 | 16 | % | (25) | % | |||||||||||||||||||||||||||||||||||||||||||
Southeast Asia | 120 | 2 | % | 134 | 4 | % | (10) | % | 250 | 2 | % | 413 | 4 | % | (39) | % | |||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 3,800 | 86 | % | 2,848 | 80 | % | 33 | % | 10,813 | 86 | % | 8,722 | 80 | % | 24 | % | |||||||||||||||||||||||||||||||||||||||||||
United States | 399 | 9 | % | 552 | 15 | % | (28) | % | 1,171 | 10 | % | 1,459 | 14 | % | (20) | % | |||||||||||||||||||||||||||||||||||||||||||
Europe | 196 | 5 | % | 162 | 5 | % | 21 | % | 530 | 4 | % | 673 | 6 | % | (21) | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 4,395 | 100 | % | $ | 3,562 | 100 | % | 23 | % | $ | 12,514 | 100 | % | $ | 10,854 | 100 | % | 15 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
Gross margin | 44.5 | % | 43.7 | % | 0.8 points | 44.4 | % | 43.8 | % | 0.6 points | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Research, development and engineering | $ | 572 | $ | 515 | $ | 57 | $ | 1,674 | $ | 1,539 | $ | 135 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Marketing and selling | $ | 130 | $ | 128 | $ | 2 | $ | 395 | $ | 392 | $ | 3 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
General and administrative | $ | 145 | $ | 112 | $ | 33 | $ | 411 | $ | 335 | $ | 76 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Interest expense | $ | 61 | $ | 58 | $ | 3 | $ | 181 | $ | 178 | $ | 3 | |||||||||||||||||||||||
Interest and other income (loss), net | $ | (7) | $ | 38 | $ | (45) | $ | 22 | $ | 121 | $ | (99) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 199 | $ | 211 | $ | (12) | $ | 435 | $ | 421 | $ | 14 | |||||||||||||||||||||||
Effective tax rate | 19.1 | % | 27.0 | % | (7.9) points | 14.9 | % | 17.3 | % | (2.4) points |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages and ratios) | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 2,916 | $ | 2,273 | $ | 643 | 28 | % | $ | 8,297 | $ | 6,725 | $ | 1,572 | 23 | % | |||||||||||||||||||||||||||||||
Operating income | $ | 958 | $ | 613 | $ | 345 | 56 | % | $ | 2,655 | $ | 1,823 | $ | 832 | 46 | % | |||||||||||||||||||||||||||||||
Operating margin | 32.9 | % | 27.0 | % | 5.9 points | 32.0 | % | 27.1 | % | 4.9 points | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||
Foundry, logic and other | 55 | % | 49 | % | 60 | % | 50 | % | |||||||||||||||
Dynamic random-access memory (DRAM) | 22 | % | 27 | % | 19 | % | 22 | % | |||||||||||||||
Flash memory | 23 | % | 24 | % | 21 | % | 28 | % | |||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Korea | $ | 934 | 32% | $ | 313 | 14% | 198 | % | $ | 1,922 | 23% | $ | 1,066 | 16% | 80 | % | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages and ratios) | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,034 | $ | 931 | $ | 103 | 11 | % | $ | 3,049 | $ | 2,877 | $ | 172 | 6 | % | |||||||||||||||||||||||||||||||
Operating income | $ | 273 | $ | 259 | $ | 14 | 5 | % | $ | 807 | $ | 827 | $ | (20) | (2) | % | |||||||||||||||||||||||||||||||
Operating margin | 26.4 | % | 27.8 | % | (1.4) points | 26.5 | % | 28.7 | % | (2.2) points | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages and ratios) | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 425 | $ | 339 | $ | 86 | 25 | % | $ | 1,122 | $ | 1,194 | $ | (72) | (6) | % | |||||||||||||||||||||||||||||||
Operating income | $ | 83 | $ | 41 | $ | 42 | 102 | % | $ | 196 | $ | 198 | $ | (2) | (1) | % | |||||||||||||||||||||||||||||||
Operating margin | 19.5 | % | 12.1 | % | 7.4 points | 17.5 | % | 16.6 | % | 0.9 points | |||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | July 28, 2019 | Change | July 26, 2020 | July 28, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | 419 | 99% | $ | 273 | 80% | 53% | $ | 1,035 | 92% | $ | 1,078 | 90% | (4)% | |||||||||||||||||||||||||||||||||||||||||||||
July 26, 2020 | October 27, 2019 | ||||||||||
(In millions) | |||||||||||
Cash and cash equivalents | $ | 4,350 | $ | 3,129 | |||||||
Short-term investments | 406 | 489 | |||||||||
Long-term investments | 1,538 | 1,703 | |||||||||
Total cash, cash-equivalents and investments | $ | 6,294 | $ | 5,321 |
Nine Months Ended | |||||||||||
July 26, 2020 | July 28, 2019 | ||||||||||
(In millions) | |||||||||||
Cash provided by operating activities | $ | 2,489 | $ | 2,421 | |||||||
Cash provided by (used in) investing activities | $ | 11 | $ | (357) | |||||||
Cash used in financing activities | $ | (1,164) | $ | (2,490) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In millions, except percentages) | July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||||
Non-GAAP Adjusted Gross Profit | ||||||||||||||||||||||||||
Reported gross profit - GAAP basis | $ | 1,955 | $ | 1,557 | $ | 5,562 | $ | 4,752 | ||||||||||||||||||
Certain items associated with acquisitions1 | 8 | 9 | 25 | 28 | ||||||||||||||||||||||
Certain incremental expenses related to COVID-195 | 15 | — | 23 | — | ||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 1,978 | $ | 1,566 | $ | 5,610 | $ | 4,780 | ||||||||||||||||||
Non-GAAP adjusted gross margin | 45.0 | % | 44.0 | % | 44.8 | % | 44.0 | % | ||||||||||||||||||
Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 1,108 | $ | 802 | $ | 3,082 | $ | 2,486 | ||||||||||||||||||
Certain items associated with acquisitions1 | 12 | 13 | 38 | 41 | ||||||||||||||||||||||
Acquisition integration and deal costs | 20 | 5 | 54 | 12 | ||||||||||||||||||||||
Certain incremental expenses related to COVID-195 | 20 | — | 30 | — | ||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 1,160 | $ | 820 | $ | 3,204 | $ | 2,539 | ||||||||||||||||||
Non-GAAP adjusted operating margin | 26.4 | % | 23.0 | % | 25.6 | % | 23.4 | % | ||||||||||||||||||
Non-GAAP Adjusted Net Income | ||||||||||||||||||||||||||
Reported net income - GAAP basis | $ | 841 | $ | 571 | $ | 2,488 | $ | 2,008 | ||||||||||||||||||
Certain items associated with acquisitions1 | 12 | 13 | 38 | 41 | ||||||||||||||||||||||
Acquisition integration and deal costs | 20 | 5 | 54 | 12 | ||||||||||||||||||||||
Certain incremental expenses related to COVID-195 | 20 | — | 30 | — | ||||||||||||||||||||||
Realized loss (gain) on strategic investments, net | (8) | 1 | (1) | (6) | ||||||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | (5) | (9) | (1) | (25) | ||||||||||||||||||||||
Loss on early extinguishment of debt | 33 | — | 33 | — | ||||||||||||||||||||||
Income tax effect of share-based compensation2 | 12 | — | (13) | (4) | ||||||||||||||||||||||
Income tax effect of changes in applicable U.S. tax laws3 | — | — | — | (24) | ||||||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | 67 | 115 | 104 | 56 | ||||||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | (1) | (1) | (5) | 75 | ||||||||||||||||||||||
Income tax effect of non-GAAP adjustments4 | (15) | (3) | (30) | (2) | ||||||||||||||||||||||
Non-GAAP adjusted net income | $ | 976 | $ | 692 | $ | 2,697 | $ | 2,131 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | ||||
3 | Charges to income tax provision related to a one-time transition tax as a result of U.S. tax legislation. | ||||
4 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | ||||
5 | Temporary incremental employee compensation during the COVID-19 pandemic. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In millions, except per share amounts) | July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||||
Non-GAAP Adjusted Earnings Per Diluted Share | ||||||||||||||||||||||||||
Reported earnings per diluted share - GAAP basis | $ | 0.91 | $ | 0.61 | $ | 2.69 | $ | 2.11 | ||||||||||||||||||
Certain items associated with acquisitions | 0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||||||||||||
Acquisition integration and deal costs | 0.02 | 0.01 | 0.05 | 0.01 | ||||||||||||||||||||||
Certain incremental expenses related to COVID-19 | 0.02 | — | 0.03 | — | ||||||||||||||||||||||
Loss on early extinguishment of debt | 0.03 | — | 0.03 | — | ||||||||||||||||||||||
Realized loss (gain) on strategic investments, net | (0.01) | — | — | — | ||||||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | — | (0.01) | — | (0.03) | ||||||||||||||||||||||
Income tax effect of share-based compensation | 0.01 | — | (0.02) | — | ||||||||||||||||||||||
Income tax effect of changes in applicable U.S. tax laws | — | — | — | (0.03) | ||||||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | 0.07 | 0.12 | 0.11 | 0.06 | ||||||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | — | — | (0.01) | 0.08 | ||||||||||||||||||||||
Non-GAAP adjusted earnings per diluted share | $ | 1.06 | $ | 0.74 | $ | 2.92 | $ | 2.24 | ||||||||||||||||||
Weighted average number of diluted shares | 922 | 937 | 924 | 950 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In millions, except percentages) | July 26, 2020 | July 28, 2019 | July 26, 2020 | July 28, 2019 | ||||||||||||||||||||||
Semiconductor Systems Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 958 | $ | 613 | $ | 2,655 | $ | 1,823 | ||||||||||||||||||
Certain items associated with acquisitions1 | 9 | 11 | 29 | 32 | ||||||||||||||||||||||
Acquisition integration costs | 1 | — | 1 | — | ||||||||||||||||||||||
Certain incremental expenses related to COVID-192 | 14 | — | 20 | — | ||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 982 | $ | 624 | $ | 2,705 | $ | 1,855 | ||||||||||||||||||
Non-GAAP adjusted operating margin | 33.7 | % | 27.5 | % | 32.6 | % | 27.6 | % | ||||||||||||||||||
AGS Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 273 | $ | 259 | $ | 807 | $ | 827 | ||||||||||||||||||
Certain incremental expenses related to COVID-192 | 4 | — | 8 | — | ||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 277 | $ | 259 | $ | 815 | $ | 827 | ||||||||||||||||||
Non-GAAP adjusted operating margin | 26.8 | % | 27.8 | % | 26.7 | % | 28.7 | % | ||||||||||||||||||
Display and Adjacent Markets Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 83 | $ | 41 | $ | 196 | $ | 198 | ||||||||||||||||||
Certain items associated with acquisitions1 | 3 | 2 | 9 | 9 | ||||||||||||||||||||||
Acquisition integration costs | — | 1 | — | 1 | ||||||||||||||||||||||
Certain incremental expenses related to COVID-192 | 1 | — | 1 | — | ||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 87 | $ | 44 | $ | 206 | $ | 208 | ||||||||||||||||||
Non-GAAP adjusted operating margin | 20.5 | % | 13.0 | % | 18.4 | % | 17.4 | % | ||||||||||||||||||
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | Temporary incremental employee compensation during the COVID-19 pandemic. | ||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Price Paid | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Dollar Value of Shares That May Yet be Purchased Under the Program | ||||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||||||
Month #1 | |||||||||||||||||||||||||||||
(April 27, 2020 to May 24, 2020) | 0.3 | $ | 55.33 | $ | 20 | 0.3 | $ | 1,505 | |||||||||||||||||||||
Month #2 | |||||||||||||||||||||||||||||
(May 25, 2020 to June 21, 2020) | 1.4 | $ | 57.76 | 80 | 1.4 | $ | 1,425 | ||||||||||||||||||||||
Month #3 | |||||||||||||||||||||||||||||
(June 22, 2020 to July 26, 2020) | 1.6 | $ | 61.74 | 100 | 1.6 | $ | 1,325 | ||||||||||||||||||||||
Total | 3.3 | $ | 59.41 | $ | 200 | 3.3 |
Incorporated by Reference | |||||||||||||||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | ||||||||||||||||||||||||
8-K | 000-06920 | 4.1 | 05/29/2020 | ||||||||||||||||||||||||||
8-K | 000-06920 | 10.1 | 07/09/2020 | ||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document‡ | ||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document‡ | ||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document‡ | ||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document‡ | ||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document‡ | ||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
APPLIED MATERIALS, INC. | |||||
By: | /s/ DANIEL J. DURN | ||||
Daniel J. Durn Senior Vice President, Chief Financial Officer (Principal Financial Officer) |
By: | /s/ CHARLES W. READ | ||||
Charles W. Read Corporate Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer) |
/s/ GARY E. DICKERSON | ||
Gary E. Dickerson | ||
President, Chief Executive Officer |
/s/ DANIEL J. DURN | ||
Daniel J. Durn | ||
Senior Vice President, Chief Financial Officer |
/s/ GARY E. DICKERSON | ||
Gary E. Dickerson | ||
President, Chief Executive Officer |
/s/ DANIEL J. DURN | ||
Daniel J. Durn | ||
Senior Vice President, Chief Financial Officer |
Consolidated Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Income Statement [Abstract] | ||||
Net sales | $ 4,395 | $ 3,562 | $ 12,514 | $ 10,854 |
Cost of products sold | 2,440 | 2,005 | 6,952 | 6,102 |
Gross profit | 1,955 | 1,557 | 5,562 | 4,752 |
Operating expenses: | ||||
Research, development and engineering | 572 | 515 | 1,674 | 1,539 |
Marketing and selling | 130 | 128 | 395 | 392 |
General and administrative | 145 | 112 | 411 | 335 |
Total operating expenses | 847 | 755 | 2,480 | 2,266 |
Income from operations | 1,108 | 802 | 3,082 | 2,486 |
Interest expense | 61 | 58 | 181 | 178 |
Interest and other income (loss), net | (7) | 38 | 22 | 121 |
Income before income taxes | 1,040 | 782 | 2,923 | 2,429 |
Provision for income taxes | 199 | 211 | 435 | 421 |
Net income | $ 841 | $ 571 | $ 2,488 | $ 2,008 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.92 | $ 0.61 | $ 2.71 | $ 2.13 |
Diluted (in dollars per share) | $ 0.91 | $ 0.61 | $ 2.69 | $ 2.11 |
Weighted average number of shares: | ||||
Basic (in shares) | 915 | 929 | 916 | 943 |
Diluted (in shares) | 922 | 937 | 924 | 950 |
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 841 | $ 571 | $ 2,488 | $ 2,008 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gain (loss) on available-for-sale investments | 12 | 6 | 13 | 19 |
Change in unrealized net loss on derivative instruments | 26 | (110) | ||
Change in unrealized net loss on derivative instruments | (5) | (13) | ||
Change in cumulative translation adjustments | 0 | 0 | 0 | (1) |
Other comprehensive income (loss), net of tax | 38 | 1 | (97) | 5 |
Comprehensive income | $ 879 | $ 572 | $ 2,391 | $ 2,013 |
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends declared per share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.21 | $ 0.22 | $ 0.21 | $ 0.65 | $ 0.62 |
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Cash flows from operating activities: | ||
Net income | $ 2,488 | $ 2,008 |
Adjustments required to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 279 | 271 |
Share-based compensation | 234 | 197 |
Deferred income taxes | 98 | 57 |
Other | 55 | (19) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (271) | (47) |
Inventories | (469) | 182 |
Other current and non-current assets | (143) | (93) |
Accounts payable and accrued expenses | 243 | (337) |
Contract liabilities | 53 | 229 |
Income taxes payable | (123) | (52) |
Other liabilities | 45 | 25 |
Cash provided by operating activities | 2,489 | 2,421 |
Cash flows from investing activities: | ||
Capital expenditures | (260) | (344) |
Cash paid for acquisitions, net of cash acquired | (107) | (28) |
Proceeds from sales and maturities of investments | 1,388 | 1,385 |
Purchases of investments | (1,010) | (1,370) |
Cash provided by (used in) investing activities | 11 | (357) |
Cash flows from financing activities: | ||
Debt borrowings, net of issuance costs | 2,979 | 0 |
Debt repayments | (2,882) | 0 |
Proceeds from common stock issuances | 91 | 73 |
Common stock repurchases | (599) | (1,903) |
Tax withholding payments for vested equity awards | (166) | (83) |
Payments of dividends to stockholders | (587) | (577) |
Cash used in financing activities | (1,164) | (2,490) |
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 1,336 | (426) |
Cash, cash equivalents and restricted cash equivalents — beginning of period | 3,129 | 3,440 |
Cash, cash equivalents and restricted cash equivalents — end of period | 4,465 | 3,014 |
Reconciliation of cash, cash equivalents, and restricted cash equivalents | ||
Total cash, cash equivalents, and restricted cash equivalents | 4,465 | 3,014 |
Supplemental cash flow information: | ||
Cash payments for income taxes | 519 | 453 |
Cash refunds from income taxes | 5 | 20 |
Cash payments for interest | $ 151 | $ 143 |
Basis of Presentation |
9 Months Ended |
---|---|
Jul. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 27, 2019 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 27, 2019 (2019 Form 10-K). Applied’s results of operations for the three and nine months ended July 26, 2020 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2020 and 2019 contain 52 weeks each, and the first nine months of fiscal 2020 and 2019 each contained 39 weeks. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of July 26, 2020, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available. Revenue Recognition from Contracts with Customers Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. 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. Applied’s payment terms do not generally contain a significant financing component. Recent Accounting Pronouncements Accounting Standards Adopted . In February 2016, the Financial Accounting Standard Board (FASB) issued authoritative guidance for lease accounting, which requires lessees to recognize lease assets and liabilities on the balance sheet for certain lease arrangements that are classified as operating leases under the previous standard, and to provide for enhanced disclosures. Applied adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition method which required applying the new standard as of the beginning of the period of adoption with no adjustment to comparative prior periods. Applied elected the package of practical expedients permitted under the transition guidance, which allow Applied not to reassess whether a contract contains a lease, initial direct costs and lease classification for leases existing prior to adoption. Applied also elected to combine the lease and non-lease components as a single lease component and not to use hindsight in determining the lease term. Upon adoption, Applied recognized right-of-use assets of $160 million, net of deferred rent of $4 million and lease liabilities of $164 million. Derivatives and Hedging. In August 2017, the FASB issued authoritative guidance that modifies the recognition and presentation of hedge accounting to better align an entity’s risk management strategies and financial reporting for hedging relationships. The authoritative guidance expands the application of hedge accounting for non-financial and financial risk components and eases certain hedge effectiveness assessment requirements. Applied adopted this guidance in the first quarter of fiscal 2020 under the modified retrospective approach. The cumulative effect adjustment for the elimination of the ineffectiveness was not material to Applied’s condensed consolidated financial statements. The presentation and disclosure have been amended on a prospective basis, as required by this update. Receivables: Nonrefundable Fees and Other Costs. In March 2017, the FASB issued authoritative guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date to more closely align with expectations incorporated in market pricing. Applied adopted this guidance in the first quarter of fiscal 2020 on a modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2022, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit and other Postretirement Plans. In August 2018, the FASB issued authoritative guidance that adds, removes, and clarifies disclosure requirements for defined benefit and other postretirement plans. This authoritative guidance will be effective for Applied in fiscal 2021 on a retrospective basis, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Goodwill Impairment. In January 2017, the FASB issued authoritative guidance that simplifies the process required to test goodwill for impairment. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on Applied’s consolidated financial statements. Financial Instruments: Credit Losses. In June 2016, the FASB issued authoritative guidance that modifies the impairment model for certain financial assets by requiring use of an expected loss methodology, which will result in more timely recognition of credit losses. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption was permitted beginning in the first quarter of fiscal 2020. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units, and employee stock purchase plan shares) outstanding during the period. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to the Company’s non-complex capital structure.
Potentially weighted dilutive securities attributable to outstanding stock options and restricted stock units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Applied common stock, and therefore their inclusion would be anti-dilutive.
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Cash, Cash Equivalents and Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Summary of Cash, Cash Equivalents and Investments The following tables summarize Applied’s cash, cash equivalents and investments:
_________________________ * Includes agency debt securities guaranteed by Canada. Maturities of Investments The following table summarizes the contractual maturities of Applied’s investments as of July 26, 2020:
_________________________ ** Securities with no single maturity date include publicly-traded and privately-held equity securities and asset-backed and mortgage-backed securities. Gains and Losses on Investments During the three and nine months ended July 26, 2020 and July 28, 2019 gross realized gains and losses on investments were not material. As of July 26, 2020, and October 27, 2019, gross unrealized losses related to Applied’s debt investment portfolio were not material. Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is considered to be temporary, or other-than-temporary and therefore impaired, include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. Applied determined that the gross unrealized losses on its marketable fixed-income securities as of July 26, 2020 and July 28, 2019 were temporary in nature and therefore it did not recognize any impairment of its marketable fixed-income securities during the three and nine months ended July 26, 2020 or July 28, 2019. Impairment charges on equity investments in privately-held companies during the three and nine months ended July 26, 2020 and July 28, 2019 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations. The components of gain (loss) on equity investments for the three and nine months ended July 26, 2020 and July 28, 2019 were as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Applied’s financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 — Quoted prices in active markets for identical assets or liabilities; •Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 26, 2020, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets (excluding cash balances) and liabilities measured at fair value on a recurring basis are summarized below:
_________________________ * Amount as of July 26, 2020 includes $115 million invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Condensed Balance Sheets. Applied did not have any financial assets or liabilities measured at fair value on a recurring basis within Level 3 fair value measurements as of July 26, 2020 or October 27, 2019. Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. These investments are periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment charges on equity investments in privately-held companies during the three and nine months ended July 26, 2020 and July 28, 2019 were not material. Other The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of July 26, 2020, the aggregate principal amount of long-term senior notes was $5.5 billion, and the estimated fair value was $6.9 billion. As of October 27, 2019, the aggregate principal amount of long-term senior notes was $4.8 billion, and the estimated fair value was $5.5 billion. The estimated fair value of long-term senior notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 11 of the Notes to the Consolidated Condensed Financial Statements for further detail of existing debt.
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Derivative Instruments and Hedging Activities |
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative Financial Instruments Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, euro, Israeli shekel and Taiwanese dollar. Applied uses derivative financial instruments, such as forward exchange contracts and currency option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically within the next 24 months. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied does not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign currency exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and foreign exchange derivatives are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of AOCI in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to foreign exchange derivative instruments included in AOCI as of July 26, 2020 is expected to be reclassified into earnings within 12 months. Prior to adopting the new accounting guidance for hedge accounting, changes in the fair value of currency forward exchange and option contracts due to changes in time value were excluded from the assessment of effectiveness. Subsequent to the adoption of the new accounting guidance, only changes in the fair value of option contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in earnings. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was not material for the three and nine months ended July 26, 2020 and July 28, 2019. Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. The fair values of foreign exchange derivative instruments as of July 26, 2020 and October 27, 2019 were not material. Applied is also exposed to interest rate risk associated with its potential future borrowings. During the nine months ended July 26, 2020, Applied entered into a series of interest rate contracts to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt in May 2020. The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows:
The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows:
Credit Risk Contingent Features If Applied’s credit rating were to fall below investment grade, it would be in violation of credit risk contingent provisions of the derivative instruments discussed above, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was immaterial as of July 26, 2020. Entering into derivative contracts with banks exposes Applied to credit-related losses in the event of the banks’ nonperformance. However, Applied’s exposure is not considered significant.
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Accounts Receivable, Net |
9 Months Ended |
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Jul. 26, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable without recourse. Applied, from time to time, also discounts letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Applied sold $326 million and $690 million of account receivables during the three and nine months ended July 26, 2020, respectively. Applied sold $143 million and $1.3 billion of accounts receivable during the three and nine months July 28, 2019, respectively. Applied did not discount letters of credit issued by customers or discount promissory notes during the three and nine months ended July 26, 2020. Applied discounted letters of credit issued by customers of $40 million during the three months and nine months ended July 28, 2019. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Condensed Statements of Operations and were not material for all periods presented. Accounts receivable are presented net of allowance for doubtful accounts of $30 million as of July 26, 2020 and October 27, 2019. Applied sells its products principally to manufacturers within the semiconductor and display industries. While Applied believes that its allowance for doubtful accounts is adequate and represents its best estimate as of July 26, 2020, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.
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Contract Balances |
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Balances | Contract Balances Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Applied’s contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Condensed Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized. Contract balances at the end of each reporting period were as follows:
The increase in contract assets during the nine months ended July 26, 2020, was primarily due to goods transferred to customers where payment was conditional upon technical sign off, offset by the reclassification of contract assets to net accounts receivable upon meeting conditions to the right to payment. During the nine months ended July 26, 2020, Applied recognized revenue of approximately $990 million related to contract liabilities at October 27, 2019. This reduction in contract liabilities was offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of July 26, 2020. There were no impairment losses recognized on Applied’s accounts receivables and contract assets during both the three and nine months ended July 26, 2020 and July 28, 2019. As of July 26, 2020, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $949 million, of which approximately 70% is expected to be recognized within 12 months and the remainder is expected to recognized within the following 24 months thereafter. Applied has elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.
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Balance Sheet Detail |
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Balance Sheet Detail [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Detail | Balance Sheet Detail
Included in finished goods inventory are $6 million as of July 26, 2020, and $13 million as of October 27, 2019, 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 $413 million and $318 million of evaluation inventory as of July 26, 2020 and October 27, 2019, respectively.
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Business Combination |
9 Months Ended |
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Jul. 26, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business CombinationKokusai Electric CorporationOn June 30, 2019, Applied entered into a Share Purchase Agreement (SPA) to acquire all outstanding shares of Kokusai Electric Corporation (Kokusai Electric) for $2.2 billion in cash. Kokusai Electric is a leading company in providing high-productivity batch processing systems and services for memory, foundry and logic customers. These systems complement Applied’s portfolio of single-wafer processing systems. Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied’s Semiconductor Systems segment and continue to be based in Tokyo, with technology and manufacturing centers in Toyama, Japan and Cheonan, Korea. The transaction is subject to regulatory approvals and other customary closing conditions. The SPA contains certain termination rights, including if the transactions contemplated by the SPA are not consummated on or before June 30, 2020 (Outside Date), which date may be extended by three months on two separate occasions if, on the applicable date, the only conditions to closing relate to required regulatory approvals. Pursuant to the terms of the SPA, on June 30, 2020, the parties mutually extended the Outside Date to September 30, 2020. |
Goodwill, Purchased Technology and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Purchased Technology and Other Intangible Assets | Goodwill, Purchased Technology and Other Intangible Assets Goodwill and Purchased Intangible Assets Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. Applied regularly monitors current business conditions and considers other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. To test goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, Applied then performs the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. Under the two-step goodwill impairment test, Applied would in the first step compare the estimated fair value of each reporting unit to its carrying value. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. If the carrying value of a reporting unit exceeds its fair value, Applied would then perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If Applied determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, Applied would record an impairment charge equal to the difference. As of July 26, 2020, Applied’s reporting units include Semiconductor Products Group and Imaging and Process Control Group, which combine to form the Semiconductor Systems reporting segment, Applied Global Services, Display and Adjacent Markets and Corporate and Other. The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time. Details of goodwill as of July 26, 2020 and October 27, 2019 were as follows:
From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During the nine months of fiscal 2020, goodwill increased by $75 million primarily due to the preliminary purchase accounting for acquisitions completed in the second and third quarters of fiscal 2020, which were not material to Applied’s results of operations. A summary of Applied’s purchased technology and intangible assets is set forth below:
Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure. Details of finite-lived intangible assets were as follows:
Details of amortization expense by segment were as follows:
Amortization expense was charged to the following categories:
As of July 26, 2020, future estimated amortization expense is expected to be as follows:
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Borrowing Facilities and Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Facilities and Debt | Borrowing Facilities and Debt Revolving Credit Facilities In February 2020, Applied entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which Applied may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2025, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement replaced Applied’s prior $1.5 billion credit agreement that was scheduled to expire in September 2021. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings. In March 2020, Applied borrowed the full $1.5 billion available under the Revolving Credit Agreement in order to increase its cash position and preserve financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 outbreak. In May 2020, Applied repaid the full $1.5 billion of borrowings under the Revolving Credit Agreement. Applied may at any time and from time to time, borrow, repay and reborrow under the Revolving Credit Agreement during the term of the facility. The maturity date of the Revolving Credit Agreement is February 21, 2025, unless extended, at which time the outstanding amount of loans, if any, must be repaid in full. The interest rate for the March 2020 borrowing under the Revolving Credit Agreement was one-month LIBOR plus a margin of 0.875%, based on Applied’s public debt credit ratings. No amounts were outstanding under the Revolving Credit Agreement as of July 26, 2020 and October 27, 2019. In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $75 million in aggregate at any time. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. As of July 26, 2020 and October 27, 2019, no amounts were outstanding under these revolving credit facilities. Term Loan and Short-term Commercial Paper In August 2019, Applied entered into a term loan credit agreement with a group of lenders. Under the agreement, the lenders have committed to make an unsecured term loan to Applied of up to $2.0 billion to finance in part Applied’s planned acquisition of all outstanding shares of Kokusai Electric, to pay related transaction fees and expenses and for general corporate purposes. The commitments of the lenders to make the term loan will terminate if the transactions contemplated by the Share Purchase Agreement are not consummated on or before June 30, 2020 (Outside Date), which date may be extended by three months on two separate occasions if, on the applicable date, the only remaining conditions to closing relate to required regulatory approvals. Pursuant to the terms of the SPA, on June 30, 2020, the parties mutually extended the Outside Date to September 30, 2020. The term loan, if advanced, will bear interest at one of two rates selected by Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings, and must be repaid in full on the third anniversary of the funding date of the term loan. No amounts were outstanding under this term loan credit agreement at both July 26, 2020 and October 27, 2019. Applied has a short-term commercial paper program under which Applied may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. At July 26, 2020 and October 27, 2019, Applied did not have any commercial paper outstanding. Senior Unsecured Notes In May 2020, Applied issued $750 million aggregate principal amount of 1.750% senior unsecured notes due 2030 and $750 million aggregate principal amount of 2.750% senior unsecured notes due 2050, in a registered public offering. In June 2020, Applied used a portion of the net proceeds from the offering to redeem the outstanding $600 million in aggregate principal amount of its 2.625% senior unsecured notes due October 1, 2020 and $750 million in aggregate principal amount of its 4.300% senior unsecured notes due June 15, 2021, at a total aggregate redemption price of $1.4 billion. As a result, Applied recognized a $33 million loss on early extinguishment of these senior unsecured notes. Debt outstanding as of July 26, 2020 and October 27, 2019 was as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases A contract contains a lease when Applied has the right to control the use of an identified asset for a period of time in exchange for consideration. Applied leases certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Applied’s leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, Applied uses the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Applied elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, Applied elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. The components of lease expense and supplemental information were as follows:
Supplemental cash flow information related to leases are as follows:
As of July 26, 2020, the maturities of lease liabilities are as follows:
Prior to the adoption of the new lease standard, future minimum lease payments as of October 27, 2019, as defined under the previous lease accounting guidance, were as follows:
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Stockholders' Equity, Comprehensive Income and Share-Based Compensation |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity, Comprehensive Income and Share-Based Compensation | Stockholders’ Equity, Comprehensive Income and Share-Based Compensation Accumulated Other Comprehensive Income (Loss) Changes in the components of AOCI, net of tax, were as follows:
(a) - Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019. The tax effects on the unrealized loss on derivative instruments qualifying as cash flow hedges for the nine months ended July 26, 2020 was $32 million. The tax effects on net income of amounts reclassified from AOCI for the three and nine months ended July 26, 2020 and July 28, 2019 were not material. Stock Repurchase Program In February 2018, the Board of Directors approved a common stock repurchase program authorizing up to an aggregate of $6.0 billion in repurchases. As of July 26, 2020, approximately $1.3 billion remained available for future stock repurchases under this repurchase program. The following table summarizes Applied’s stock repurchases for the three and nine months ended July 26, 2020 and July 28, 2019:
Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. Dividends In June 2020, March 2020 and December 2019, Applied’s Board of Directors declared quarterly cash dividends, in the amount of $0.22, $0.22 and $0.21 per share, respectively. The dividend declared in June 2020 is payable in September 2020. Dividends paid during the nine months ended July 26, 2020 and July 28, 2019 totaled $587 million and $577 million, respectively. Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on Applied’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of Applied’s stockholders. Share-Based Compensation Applied has a stockholder-approved equity plan, the Employee Stock Incentive Plan, which permits grants to employees of share-based awards, including stock options, restricted stock, restricted stock units, performance shares and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control of Applied. Applied also has two Employee Stock Purchase Plans, one generally for United States employees and a second for employees of international subsidiaries (collectively, ESPP), which enable eligible employees to purchase Applied common stock. During the three and nine months ended July 26, 2020 and July 28, 2019, Applied recognized share-based compensation expense related equity awards and ESPP shares. The effect of share-based compensation on the results of operations was as follows:
Share-based expense in the first nine months of fiscal 2020 increased compared to the same period in the prior year primarily due to expense related to awards with provisions that became effective in the first quarter of fiscal 2020 that allow partial accelerated vesting in the event of a qualifying retirement. The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal. As of July 26, 2020, Applied had $455 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under Applied’s ESPP, which will be recognized over a weighted average period of 2.6 years. As of July 26, 2020, there were 56 million shares available for grants of share-based awards under the Employee Stock Incentive Plan, and an additional 11 million shares available for issuance under the ESPP. Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the nine months ended July 26, 2020 is presented below:
As of July 26, 2020, 1.3 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals. During the first quarter of fiscal 2020, certain executive officers were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period. The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement described below. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement based on age and years of service. The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized, and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the awards subject to targeted levels of relative total shareholder return is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures. Employee Stock Purchase Plans Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Applied issued a total of 2 million shares during each of the nine months ended July 26, 2020 and July 28, 2019. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:
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Income Taxes |
9 Months Ended |
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Jul. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Applied’s provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that are not consistent from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. On June 14, 2019, the U.S. government released regulations that significantly affect how the global intangible low-taxed income (GILTI) provision of the Tax Act is interpreted. As a result, Applied reversed a tax benefit of $96 million in the third quarter of fiscal 2019 that had been realized in the first half of fiscal 2019. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The enactment of the CARES Act does not result in any material adjustments to Applied’s provision for income taxes. Applied’s effective tax rates for the third quarter of fiscal 2020 and 2019 were 19.1 percent and 27.0 percent, respectively. The effective tax rate for the third quarter of fiscal 2020 was lower than the same period in the prior fiscal year primarily due to a tax expense taken in the third quarter of fiscal 2019 for regulations issued that significantly affected how the GILTI provisions of the Tax Act were interpreted. This was partially offset by the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense of $44 million in the third quarter of fiscal 2020. Applied’s effective tax rates for the first nine months of fiscal 2020 and 2019 were 14.9 percent and 17.3 percent, respectively. The effective tax rate for the first nine months of fiscal 2020 was lower than the same period in the prior fiscal year primarily due to higher excess tax benefits from share-based compensation. This was partially offset by the settlement of certain unrecognized tax benefits that resulted in an additional income tax expense of $44 million during the first nine months of fiscal 2020. During the next twelve months, it is reasonably possible that unrecognized tax benefits related to certain tax positions taken on previously filed tax returns could be recognized in the amount of approximately $139 million as a result of negotiations with tax authorities and lapses of statutes of limitation.
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Warranty, Guarantees and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty, Guarantees and Contingencies | Warranty, Guarantees and Contingencies Warranty Changes in the warranty reserves are presented below:
Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales. Guarantees In the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either Applied or its subsidiaries. As of July 26, 2020, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $148 million. Applied has not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements. Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of July 26, 2020, Applied has provided parent guarantees to banks for approximately $151 million to cover these arrangements. Legal Matters From time to time, Applied receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by Applied in connection with claims made against them. In addition, from time to time, Applied receives notification from third parties claiming that Applied may be or is infringing or misusing their intellectual property or other rights. Applied also is subject to various other legal proceedings and claims, both asserted and unasserted, that arise in the ordinary course of business. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, Applied does not believe that any will have a material effect on its consolidated financial condition or results of operations.
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Industry Segment Operations |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segment Operations | Industry Segment Operations Applied’s three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, Applied’s chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Applied’s management organization structure as of July 26, 2020 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’s reportable segments. The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, certain remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products. The Display and Adjacent Markets segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and flexible coating systems and other display technologies for TVs, monitors, laptops, personal computers, smart phones, and other consumer-oriented devices. Each operating segment is separately managed and has separate financial results that are reviewed by Applied’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by Applied’s chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information. Applied derives the segment results directly from its internal management reporting system. The accounting policies Applied uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net sales and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Corporate and Other category includes revenues from products, as well as costs of products sold, for fabricating solar photovoltaic cells and modules, and certain operating expenses that are not allocated to its reportable segments and are managed separately at the corporate level. These operating expenses include costs related to share-based compensation; certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level; and unabsorbed information technology and occupancy. In addition, Applied does not allocate to its reportable segments restructuring and asset impairment charges and any associated adjustments related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments. Net sales and operating income (loss) for each reportable segment were as follows:
Semiconductor Systems and Display and Adjacent Markets revenues are recognized at a point in time. Applied Global Services revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception. Net sales by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows:
Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:
The reconciling items included in Corporate and Other were as follows:
The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended July 26, 2020, and sales to these customers included products and services from multiple reportable segments.
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Basis of Presentation (Policies) |
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Jul. 26, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 27, 2019 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 27, 2019 (2019 Form 10-K). Applied’s results of operations for the three and nine months ended July 26, 2020 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2020 and 2019 contain 52 weeks each, and the first nine months of fiscal 2020 and 2019 each contained 39 weeks. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of July 26, 2020, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available.
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Revenue Recognition from Contracts with Customers | Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. 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. Applied’s payment terms do not generally contain a significant financing component. Contract BalancesContract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Applied’s contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.
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Recent Accounting Pronouncements | Accounting Standards Adopted . In February 2016, the Financial Accounting Standard Board (FASB) issued authoritative guidance for lease accounting, which requires lessees to recognize lease assets and liabilities on the balance sheet for certain lease arrangements that are classified as operating leases under the previous standard, and to provide for enhanced disclosures. Applied adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition method which required applying the new standard as of the beginning of the period of adoption with no adjustment to comparative prior periods. Applied elected the package of practical expedients permitted under the transition guidance, which allow Applied not to reassess whether a contract contains a lease, initial direct costs and lease classification for leases existing prior to adoption. Applied also elected to combine the lease and non-lease components as a single lease component and not to use hindsight in determining the lease term. Upon adoption, Applied recognized right-of-use assets of $160 million, net of deferred rent of $4 million and lease liabilities of $164 million. Derivatives and Hedging. In August 2017, the FASB issued authoritative guidance that modifies the recognition and presentation of hedge accounting to better align an entity’s risk management strategies and financial reporting for hedging relationships. The authoritative guidance expands the application of hedge accounting for non-financial and financial risk components and eases certain hedge effectiveness assessment requirements. Applied adopted this guidance in the first quarter of fiscal 2020 under the modified retrospective approach. The cumulative effect adjustment for the elimination of the ineffectiveness was not material to Applied’s condensed consolidated financial statements. The presentation and disclosure have been amended on a prospective basis, as required by this update. Receivables: Nonrefundable Fees and Other Costs. In March 2017, the FASB issued authoritative guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date to more closely align with expectations incorporated in market pricing. Applied adopted this guidance in the first quarter of fiscal 2020 on a modified retrospective basis. The adoption of this guidance did not have a significant impact on Applied’s consolidated financial statements. Accounting Standards Not Yet Adopted Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2022, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Retirement Benefits: Changes to the Disclosure Requirements for Defined Benefit and other Postretirement Plans. In August 2018, the FASB issued authoritative guidance that adds, removes, and clarifies disclosure requirements for defined benefit and other postretirement plans. This authoritative guidance will be effective for Applied in fiscal 2021 on a retrospective basis, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Goodwill Impairment. In January 2017, the FASB issued authoritative guidance that simplifies the process required to test goodwill for impairment. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on Applied’s consolidated financial statements. Financial Instruments: Credit Losses. In June 2016, the FASB issued authoritative guidance that modifies the impairment model for certain financial assets by requiring use of an expected loss methodology, which will result in more timely recognition of credit losses. The authoritative guidance will be effective for Applied in the first quarter of fiscal 2021. Early adoption was permitted beginning in the first quarter of fiscal 2020. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.
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Investments | Applied regularly reviews its debt investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is considered to be temporary, or other-than-temporary and therefore impaired, include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. |
Warranty | Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales. |
Performance Based Awards | During the first quarter of fiscal 2020, certain executive officers were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period. The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement described below. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement based on age and years of service. The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized, and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the awards subject to targeted levels of relative total shareholder return is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures.
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Fair Value Measurement | Applied’s financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately-held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 — Quoted prices in active markets for identical assets or liabilities; •Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 26, 2020, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments.
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Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis | Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and is required to account for any subsequent observable changes in fair value within the statements of operations. These investments are periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment charges on equity investments in privately-held companies during the three and nine months ended July 26, 2020 and July 28, 2019 were not material.
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Derivatives | Applied does not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign currency exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and foreign exchange derivatives are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of AOCI in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to foreign exchange derivative instruments included in AOCI as of July 26, 2020 is expected to be reclassified into earnings within 12 months. Prior to adopting the new accounting guidance for hedge accounting, changes in the fair value of currency forward exchange and option contracts due to changes in time value were excluded from the assessment of effectiveness. Subsequent to the adoption of the new accounting guidance, only changes in the fair value of option contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in earnings. Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. |
Goodwill | Goodwill and Purchased Intangible Assets Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. Applied regularly monitors current business conditions and considers other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. To test goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, Applied then performs the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. Under the two-step goodwill impairment test, Applied would in the first step compare the estimated fair value of each reporting unit to its carrying value. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. If the carrying value of a reporting unit exceeds its fair value, Applied would then perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If Applied determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, Applied would record an impairment charge equal to the difference.
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Goodwill and Intangible Assets | The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time. |
Finite-Lived Purchased Intangible Assets | Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.
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Treasury Stock | Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. |
Share-based Compensation | The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal.Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. |
Earnings Per Share (Tables) |
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share |
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Cash, Cash Equivalents and Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of cash, cash equivalents and investments | The following tables summarize Applied’s cash, cash equivalents and investments:
_________________________ * Includes agency debt securities guaranteed by Canada.
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Contractual maturities of investments | The following table summarizes the contractual maturities of Applied’s investments as of July 26, 2020:
_________________________ ** Securities with no single maturity date include publicly-traded and privately-held equity securities and asset-backed and mortgage-backed securities.
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Equity Securities, FV-NI | The components of gain (loss) on equity investments for the three and nine months ended July 26, 2020 and July 28, 2019 were as follows:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis | Financial assets (excluding cash balances) and liabilities measured at fair value on a recurring basis are summarized below:
_________________________ * Amount as of July 26, 2020 includes $115 million invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Condensed Balance Sheets.
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows:
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Effect of derivative instruments on the consolidated statement of operations | The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows:
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Derivatives not designated as hedging instruments in statement of operations |
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Contract Balances (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contract balances | Contract balances at the end of each reporting period were as follows:
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Balance Sheet Detail (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Detail [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
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Other current assets |
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Property, plant and equipment, net |
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Deferred Income Taxes and Other Assets |
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Accounts Payable and Accrued Expenses |
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Other liabilities |
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Goodwill, Purchased Technology and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Details of goodwill as of July 26, 2020 and October 27, 2019 were as follows:
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Summary of purchased technology and intangible assets | A summary of Applied’s purchased technology and intangible assets is set forth below:
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Finite-lived intangible assets | Details of finite-lived intangible assets were as follows:
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Summary of amortization expense | Details of amortization expense by segment were as follows:
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Schedule of categories amortization expense was charged to | Amortization expense was charged to the following categories:
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Future estimated amortization expense | As of July 26, 2020, future estimated amortization expense is expected to be as follows:
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Borrowing Facilities and Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Outstanding | Debt outstanding as of July 26, 2020 and October 27, 2019 was as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The components of lease expense and supplemental information were as follows:
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Operating Lease, Liability, Maturity | As of July 26, 2020, the maturities of lease liabilities are as follows:
Prior to the adoption of the new lease standard, future minimum lease payments as of October 27, 2019, as defined under the previous lease accounting guidance, were as follows:
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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive loss, after-tax basis | Changes in the components of AOCI, net of tax, were as follows:
(a) - Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019.
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Summary of stock repurchases | The following table summarizes Applied’s stock repurchases for the three and nine months ended July 26, 2020 and July 28, 2019:
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Effect of share-based compensation on the results of operations | The effect of share-based compensation on the results of operations was as follows:
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Restricted stock units and restricted stock activity | A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the nine months ended July 26, 2020 is presented below:
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Underlying assumptions used in the model are outlined in the following table:
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Warranty, Guarantees And Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the warranty reserves | Changes in the warranty reserves are presented below:
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Industry Segment Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 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:
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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:
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Disaggregation of Revenue | Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:
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Reconciliations of total segment operating income to Applied's consolidated operating income (loss) | The reconciling items included in Corporate and Other were as follows:
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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 26, 2020, and sales to these customers included products and services from multiple reportable segments.
|
Basis of Presentation (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Oct. 28, 2019 |
Oct. 27, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use asset | $ 254 | $ 0 | ||
Lease liability | $ 259 | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201601Member | ||
Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use asset | $ 160 | |||
Deferred rent | 4 | |||
Lease liability | $ 164 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Numerator: | ||||
Net income | $ 841 | $ 571 | $ 2,488 | $ 2,008 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 915 | 929 | 916 | 943 |
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares) | 7 | 8 | 8 | 7 |
Denominator for diluted earnings per share (in shares) | 922 | 937 | 924 | 950 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 0.61 | $ 2.71 | $ 2.13 |
Diluted earnings per share (in dollars per share) | $ 0.91 | $ 0.61 | $ 2.69 | $ 2.11 |
Potentially dilutive securities (in shares) | 0 | 3 | 0 | 3 |
Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
Jul. 28, 2019 |
---|---|---|---|
Summary of Cash, Cash Equivalents and Investments | |||
Cash | $ 1,010 | $ 1,071 | |
Total Cash equivalents | 3,340 | 2,058 | |
Total Cash and Cash equivalents | 4,350 | 3,129 | $ 3,014 |
Equity investments cost | 121 | 113 | |
Equity investments unrealized gain | 55 | 50 | |
Equity investments unrealized loss | 9 | 6 | |
Equity investments estimated fair value | 167 | 157 | |
Total short-term and long-term investments cost | 1,867 | 2,134 | |
Gross unrealized gains on short-term and long-term investments | 87 | 64 | |
Gross unrealized losses on short-term and long-term investments | 10 | 6 | |
Estimated fair value of short-term and long-term investments | 1,944 | 2,192 | |
Cash, cash equivalents and investments, cost | 6,217 | 5,263 | |
Cash, cash equivalents and investments, gross unrealized gains | 87 | 64 | |
Cash, cash equivalents and investments, gross unrealized losses | 10 | 6 | |
Cash, cash equivalents and investments, estimated fair value | 6,294 | 5,321 | |
Total fixed income securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 1,746 | 2,021 | |
Gross unrealized gains on fixed income securities | 32 | 14 | |
Gross unrealized losses on fixed income securities | 1 | 0 | |
Estimated fair value of fixed income securities | 1,777 | 2,035 | |
U.S. Treasury and agency securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 365 | 336 | |
Gross unrealized gains on fixed income securities | 5 | 1 | |
Gross unrealized losses on fixed income securities | 0 | 0 | |
Estimated fair value of fixed income securities | 370 | 337 | |
Municipal securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 373 | 402 | |
Gross unrealized gains on fixed income securities | 8 | 4 | |
Gross unrealized losses on fixed income securities | 0 | 0 | |
Estimated fair value of fixed income securities | 381 | 406 | |
Commercial paper, corporate bonds and medium-term notes | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 488 | 642 | |
Gross unrealized gains on fixed income securities | 9 | 5 | |
Gross unrealized losses on fixed income securities | 1 | 0 | |
Estimated fair value of fixed income securities | 496 | 647 | |
Asset-backed and mortgage-backed securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 520 | 631 | |
Gross unrealized gains on fixed income securities | 10 | 4 | |
Gross unrealized losses on fixed income securities | 0 | 0 | |
Estimated fair value of fixed income securities | 530 | 635 | |
Publicly traded equity securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Equity investments cost | 11 | 8 | |
Equity investments unrealized gain | 36 | 40 | |
Equity investments unrealized loss | 3 | 3 | |
Equity investments estimated fair value | 44 | 45 | |
Equity investments in privately-held companies | |||
Summary of Cash, Cash Equivalents and Investments | |||
Equity investments cost | 110 | 105 | |
Equity investments unrealized gain | 19 | 10 | |
Equity investments unrealized loss | 6 | 3 | |
Equity investments estimated fair value | 123 | 112 | |
Money market funds | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total Cash equivalents | 3,241 | 1,677 | |
Municipal securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total Cash equivalents | 2 | ||
Commercial paper, corporate bonds and medium-term notes | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total Cash equivalents | $ 97 | 377 | |
U.S. Treasury and agency securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total Cash equivalents | 4 | ||
CANADA | Non-U.S. government securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 10 | ||
Gross unrealized gains on fixed income securities | 0 | ||
Gross unrealized losses on fixed income securities | 0 | ||
Estimated fair value of fixed income securities | $ 10 |
Cash, Cash Equivalents and Investments - Summary of Contractual Maturity (Details) $ in Millions |
Jul. 26, 2020
USD ($)
|
---|---|
Contractual maturities of investments | |
Due in one year or less, Cost | $ 362 |
Due after one through five years, Cost | 864 |
No single maturity date, Cost | 641 |
Cost of short-term and long-term investments | 1,867 |
Due in one year or less, Estimated Fair Value | 365 |
Due after one through five years, Estimated Fair Value | 883 |
No single maturity date, Estimated Fair Value | 696 |
Estimated fair value of short-term and long-term investments | $ 1,944 |
Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Gain (Loss) on Securities [Line Items] | ||||
Total gain (loss) on equity investments, net | $ 13 | $ 8 | $ 2 | $ 31 |
Publicly traded equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gain | 6 | 10 | 11 | 23 |
Unrealized loss | 0 | (1) | (15) | (4) |
Realized gain on sales | 1 | 0 | 1 | 2 |
Equity investments in privately-held companies | ||||
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gain | 1 | 2 | 10 | 11 |
Unrealized loss | (2) | (2) | (5) | (5) |
Realized gain on sales | 7 | 0 | 8 | 5 |
Realized loss on sales or impairment | $ 0 | $ (1) | $ (8) | $ (1) |
Fair Value Measurements - Narrative (Details) - Senior Notes - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Long-term debt, principal amount | $ 5,500 | $ 4,750 |
Estimated fair value | Level 2 | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Long-term debt fair value | $ 6,900 | $ 5,500 |
Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
Jul. 28, 2019 |
---|---|---|---|
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | $ 167 | $ 157 | |
Restricted cash equivalents included in deferred income taxes and other assets | 115 | $ 0 | |
Money market funds* | Deferred Income Taxes and Other Assets, Net | |||
Equity investments with readily determinable values | |||
Restricted cash equivalents included in deferred income taxes and other assets | 115 | ||
U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 370 | 337 | |
Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 381 | 406 | |
Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 496 | 647 | |
Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 530 | 635 | |
Publicly traded equity securities | |||
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 44 | 45 | |
Recurring fair value measurements | |||
Assets: | |||
Available-for-sale debt security investments | 5,232 | 4,093 | |
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 44 | 45 | |
Total assets | 5,276 | 4,138 | |
Recurring fair value measurements | Money market funds* | |||
Assets: | |||
Available-for-sale debt security investments | 3,356 | 1,677 | |
Recurring fair value measurements | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 370 | 341 | |
Recurring fair value measurements | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 10 | |
Recurring fair value measurements | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 383 | 406 | |
Recurring fair value measurements | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 593 | 1,024 | |
Recurring fair value measurements | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 530 | 635 | |
Recurring fair value measurements | Publicly traded equity securities | |||
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 44 | 45 | |
Recurring fair value measurements | Level 1 | |||
Assets: | |||
Available-for-sale debt security investments | 3,709 | 2,000 | |
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 44 | 45 | |
Total assets | 3,753 | 2,045 | |
Recurring fair value measurements | Level 1 | Money market funds* | |||
Assets: | |||
Available-for-sale debt security investments | 3,356 | 1,677 | |
Recurring fair value measurements | Level 1 | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 353 | 323 | |
Recurring fair value measurements | Level 1 | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring fair value measurements | Level 1 | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring fair value measurements | Level 1 | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring fair value measurements | Level 1 | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring fair value measurements | Level 1 | Publicly traded equity securities | |||
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 44 | 45 | |
Recurring fair value measurements | Level 2 | |||
Assets: | |||
Available-for-sale debt security investments | 1,523 | 2,093 | |
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | 0 | 0 | |
Total assets | 1,523 | 2,093 | |
Recurring fair value measurements | Level 2 | Money market funds* | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring fair value measurements | Level 2 | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 17 | 18 | |
Recurring fair value measurements | Level 2 | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 10 | |
Recurring fair value measurements | Level 2 | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 383 | 406 | |
Recurring fair value measurements | Level 2 | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 593 | 1,024 | |
Recurring fair value measurements | Level 2 | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 530 | 635 | |
Recurring fair value measurements | Level 2 | Publicly traded equity securities | |||
Equity investments with readily determinable values | |||
Equity investments with readily determinable values | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Time period for hedging of foreign currency transaction | 24 months |
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings | 12 months |
Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | $ 35 | $ (141) | ||
Effective portion - gain (loss) recognized in AOCI | $ (11) | $ (16) | ||
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | 6 | 10 | ||
Effective portion - gain (loss) recognized in AOCI | (11) | (16) | ||
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | $ 29 | $ (151) | ||
Effective portion - gain (loss) recognized in AOCI | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Derivatives in Statements of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Sales | $ 4,395 | $ 3,562 | $ 12,514 | $ 10,854 |
Cost of products sold | 2,440 | 2,005 | 6,952 | 6,102 |
Research, development and engineering | 572 | 515 | 1,674 | 1,539 |
General and administrative | 145 | 112 | 411 | 335 |
Interest expense | 61 | 58 | 181 | 178 |
Amount of Gain or (Loss) Reclassified from AOCI into Income | 3 | 2 | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (4) | 1 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 0 | 2 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 2 | 8 | ||
Foreign exchange contracts | Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (1) | 0 | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 1 | 4 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | ||
Foreign exchange contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 3 | 2 | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (2) | 8 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | (1) | (2) | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 3 | 12 | ||
Foreign exchange contracts | Research, development and engineering | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 3 | 3 | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | ||
Foreign exchange contracts | General and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 1 | 1 | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (1) | (4) | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | (1) | (4) | ||
Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (3) | (4) | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (1) | (3) | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | $ 0 | $ 0 | ||
Amounts of Gain (Loss) Excluded from Effectiveness Testing Recognized in Income | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Gain/Loss Recognized in Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | $ 17 | $ (7) | $ 1 | $ (11) |
Foreign exchange contracts | General and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 0 | (7) | 0 | (11) |
Foreign exchange contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 5 | 0 | 1 | 0 |
Total return swaps - deferred compensation | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 0 | 0 | (1) | 0 |
Total return swaps - deferred compensation | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 1 | 0 | ||
Total return swaps - deferred compensation | Operating expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | $ 11 | $ 0 | $ 1 | $ 0 |
Accounts Receivable, Net (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
Oct. 27, 2019 |
|
Receivables [Abstract] | |||||
Factored accounts receivable | $ 326,000,000 | $ 143,000,000 | $ 690,000,000 | $ 1,300,000,000 | |
Discounted letters of credit | 0 | $ 40,000,000 | 0 | $ 40,000,000 | |
Discounted promissory notes | 0 | 0 | |||
Allowance for doubtful accounts | $ 30,000,000 | $ 30,000,000 | $ 30,000,000 |
Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 137 | $ 108 |
Contract liabilities | $ 1,390 | $ 1,336 |
Contract Balances - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 990,000,000 | |||
Impairment loss on accounts receivable | $ 0 | $ 0 | 0 | $ 0 |
Impairment loss on contract assets | 0 | $ 0 | 0 | $ 0 |
Long-term Contract with Customer | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 949,000,000 | $ 949,000,000 |
Contract Balances - Expecting Timing of Satisfaction (Details) |
Jul. 26, 2020 |
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Long-term Contract with Customer | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percent of revenue expected to be recognized within twelve months | 70.00% |
Expected timing of satisfaction | 24 months |
Balance Sheet Detail - Inventories (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Inventories | ||
Customer service spares | $ 1,217 | $ 1,245 |
Raw materials | 892 | 802 |
Work-in-process | 662 | 575 |
Finished goods | 1,181 | 852 |
Inventories | 3,952 | 3,474 |
Inventory at customer locations included in finished goods | 6 | 13 |
Inventory, finished goods, evaluation inventory, net of reserves | $ 413 | $ 318 |
Balance Sheet Detail - Other Current Assets (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Other Current Assets [Abstract] | ||
Prepaid income taxes and income taxes receivable | $ 159 | $ 96 |
Prepaid expenses and other | 575 | 485 |
Other Current Assets | $ 734 | $ 581 |
Balance Sheet Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jul. 26, 2020 |
Oct. 27, 2019 |
|
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 4,285 | $ 4,071 |
Accumulated depreciation | (2,755) | (2,542) |
Property, Plant and Equipment, Net | 1,530 | 1,529 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 255 | 254 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,650 | 1,590 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 30 years | |
Demonstration and manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,595 | 1,505 |
Demonstration and manufacturing equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Demonstration and manufacturing equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 633 | 602 |
Furniture, fixtures and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Furniture, fixtures and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 152 | $ 120 |
Balance Sheet Detail - Deferred Income Taxes and Other Assets (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Balance Sheet Detail [Abstract] | ||
Non-current deferred income taxes and income taxes receivable | $ 1,699 | $ 1,766 |
Operating lease right-of-use assets | 254 | 0 |
Other assets | 271 | 265 |
Deferred Income Taxes and Other Assets | $ 2,224 | $ 2,031 |
Balance Sheet Detail - Accounts Payable and Accrued Expense (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Accounts Payable and Accrued Expenses | ||
Accounts payable | $ 1,118 | $ 958 |
Compensation and employee benefits | 723 | 559 |
Warranty | 199 | 196 |
Dividends payable | 201 | 192 |
Income taxes payable | 74 | 160 |
Other accrued taxes | 27 | 55 |
Interest payable | 53 | 38 |
Operating lease liabilities, current | 63 | 0 |
Other | 437 | 353 |
Accounts Payable and Accrued Expenses | $ 2,895 | $ 2,511 |
Balance Sheet Detail - Other Liabilities (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Other Liabilities | ||
Defined and postretirement benefit plans | $ 222 | $ 212 |
Operating lease liabilities, non-current | 196 | 0 |
Other | 215 | 163 |
Other Liabilities, Noncurrent, Total | $ 633 | $ 375 |
Business Combination (Details) $ in Billions |
Jun. 30, 2019
USD ($)
|
---|---|
Kokusai Electric | |
Business Acquisition [Line Items] | |
Purchase price | $ 2.2 |
Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jul. 26, 2020 |
Oct. 27, 2019 |
|
Goodwill [Line Items] | ||
Goodwill | $ 3,474 | $ 3,399 |
Goodwill, acquired during period | 75 | |
Corporate and Other | ||
Goodwill [Line Items] | ||
Goodwill | 51 | 0 |
Semiconductor Systems | ||
Goodwill [Line Items] | ||
Goodwill | 2,206 | 2,182 |
Applied Global Services | ||
Goodwill [Line Items] | ||
Goodwill | 1,018 | 1,018 |
Display and Adjacent Markets | ||
Goodwill [Line Items] | ||
Goodwill | $ 199 | $ 199 |
Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Purchased Technology and Intangible Assets (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Summary of Purchased Technology and Intangible Assets [Line Items] | ||
Finite lived assets | $ 157 | $ 156 |
Purchased technology, net | ||
Summary of Purchased Technology and Intangible Assets [Line Items] | ||
Finite lived assets | 78 | 71 |
Other Intangible Assets | ||
Summary of Purchased Technology and Intangible Assets [Line Items] | ||
Finite lived assets | $ 79 | $ 85 |
Goodwill, Purchased Technology and Other Intangible Assets - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 26, 2020 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 15 years |
Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Finite-lived intangible assets | ||
Gross carrying amount: | $ 2,029 | $ 1,988 |
Accumulated amortization: | (1,872) | (1,832) |
Total | 157 | 156 |
Corporate and Other | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 18 | 9 |
Accumulated amortization: | (9) | (9) |
Semiconductor Systems | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 1,731 | 1,701 |
Accumulated amortization: | (1,597) | (1,568) |
Applied Global Services | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 79 | 77 |
Accumulated amortization: | (74) | (74) |
Display and Adjacent Markets | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 201 | 201 |
Accumulated amortization: | (192) | (181) |
Purchased technology, net | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 1,679 | 1,645 |
Accumulated amortization: | (1,601) | (1,574) |
Total | 78 | 71 |
Purchased technology, net | Corporate and Other | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 6 | 0 |
Accumulated amortization: | 0 | 0 |
Purchased technology, net | Semiconductor Systems | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 1,475 | 1,449 |
Accumulated amortization: | (1,416) | (1,400) |
Purchased technology, net | Applied Global Services | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 35 | 33 |
Accumulated amortization: | (30) | (30) |
Purchased technology, net | Display and Adjacent Markets | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 163 | 163 |
Accumulated amortization: | (155) | (144) |
Other Intangible Assets | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 350 | 343 |
Accumulated amortization: | (271) | (258) |
Total | 79 | 85 |
Other Intangible Assets | Corporate and Other | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 12 | 9 |
Accumulated amortization: | (9) | (9) |
Other Intangible Assets | Semiconductor Systems | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 256 | 252 |
Accumulated amortization: | (181) | (168) |
Other Intangible Assets | Applied Global Services | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 44 | 44 |
Accumulated amortization: | (44) | (44) |
Other Intangible Assets | Display and Adjacent Markets | Operating Segments | ||
Finite-lived intangible assets | ||
Gross carrying amount: | 38 | 38 |
Accumulated amortization: | $ (37) | $ (37) |
Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 14 | $ 15 | $ 40 | $ 43 |
Semiconductor Systems | Operating Segments | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 10 | 11 | 29 | 32 |
Applied Global Services | Operating Segments | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 0 | 0 | 0 | 1 |
Display and Adjacent Markets | Operating Segments | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 4 | $ 4 | $ 11 | $ 10 |
Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 14 | $ 15 | $ 40 | $ 43 |
Cost of products sold | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 10 | 9 | 27 | 28 |
Research, development and engineering | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 0 | 1 | 0 | 1 |
Marketing and selling | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 4 | $ 5 | $ 13 | $ 14 |
Goodwill, Purchased Technology and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Future estimated amortization expense | ||
2020 (remaining 3 months) | $ 14 | |
2021 | 45 | |
2022 | 30 | |
2023 | 17 | |
2024 | 16 | |
Thereafter | 35 | |
Total | $ 157 | $ 156 |
Borrowing Facilities and Debt - Additional Information (Details) |
1 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
|
May 31, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Feb. 29, 2020
USD ($)
|
Aug. 31, 2019
USD ($)
extension
interest_rate
|
Jul. 26, 2020
USD ($)
|
Jan. 26, 2020
USD ($)
|
Oct. 27, 2019
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||
Commercial paper | $ 1,500,000,000 | |||||||
Gain (loss) on extinguishment of debt | $ (33,000,000) | |||||||
Foreign Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Available credit agreement | 75,000,000 | |||||||
Outstanding credit facilities | 0 | $ 0 | ||||||
Unsecured Debt | Revolving Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
Available credit agreement | $ 1,500,000,000 | $ 1,500,000,000 | ||||||
Accordion feature, increase limit | 500,000,000 | |||||||
Accordion feature, higher borrowing capacity option | $ 2,000,000,000.0 | |||||||
Proceeds from long-term lines of credit | $ 1,500,000,000 | |||||||
Repayments of long-term debt | $ 1,500,000,000 | |||||||
Outstanding credit facilities | $ 0 | 0 | ||||||
Unsecured Debt | Revolving Credit | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.875% | |||||||
Unsecured Term Loan | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Available credit agreement | $ 2,000,000,000.0 | |||||||
Outstanding credit facilities | $ 0 | 0 | ||||||
Term extension period | 3 months | |||||||
Number of term extensions | extension | 2 | |||||||
Number of interest rates | interest_rate | 2 | |||||||
Commercial paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term debt | $ 0 | $ 0 | ||||||
Senior Notes | 2.625% Senior Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 600,000,000 | |||||||
Stated interest rate (as percent) | 2.625% | |||||||
Senior Notes | 4.300% Senior Notes Due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 750,000,000 | |||||||
Stated interest rate (as percent) | 4.30% | |||||||
Senior Notes | 4.300% Unsecured Senior Notes Due 2021 And 2.625% Unsecured Senior Notes Due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 1,400,000,000 |
Borrowing Facilities and Debt - Debt Outstanding (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Jun. 30, 2020 |
Oct. 27, 2019 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 0 | $ 600 | |
Total long-term senior notes | 5,447 | 4,713 | |
Total debt | 5,447 | 5,313 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, principal amount | 5,500 | 4,750 | |
Total unamortized discount | (15) | (10) | |
Total unamortized debt issuance costs | (38) | (27) | |
Senior Notes | 2.625% Senior Notes Due 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 2.625% | ||
Current portion of long-term debt | 0 | 600 | |
Effective Interest Rate | 2.64% | ||
Senior Notes | 4.300% Senior Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 4.30% | ||
Long-term debt, principal amount | $ 0 | 750 | |
Effective Interest Rate | 4.326% | ||
Senior Notes | 3.900% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 3.90% | ||
Long-term debt, principal amount | $ 700 | 700 | |
Effective Interest Rate | 3.944% | ||
Senior Notes | 3.300% Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 3.30% | ||
Long-term debt, principal amount | $ 1,200 | 1,200 | |
Effective Interest Rate | 3.342% | ||
Senior Notes | 1.750% Senior Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 1.75% | ||
Long-term debt, principal amount | $ 750 | 0 | |
Effective Interest Rate | 1.792% | ||
Senior Notes | 5.100% Senior Notes Due 2035 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 5.10% | ||
Long-term debt, principal amount | $ 500 | 500 | |
Effective Interest Rate | 5.127% | ||
Senior Notes | 5.850% Senior Notes Due 2041 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 5.85% | ||
Long-term debt, principal amount | $ 600 | 600 | |
Effective Interest Rate | 5.879% | ||
Senior Notes | 4.350% Senior Notes Due 2047 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 4.35% | ||
Long-term debt, principal amount | $ 1,000 | 1,000 | |
Effective Interest Rate | 4.361% | ||
Senior Notes | 2.750% Senior Notes Due 2050 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as percent) | 2.75% | ||
Long-term debt, principal amount | $ 750 | $ 0 | |
Effective Interest Rate | 2.773% |
Leases - Lease Expense and Supplemental Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 26, 2020
USD ($)
|
Jul. 26, 2020
USD ($)
|
|
Leases [Abstract] | ||
Operating lease cost | $ 17 | $ 51 |
Weighted-average remaining lease term (in years) | 5 years 3 months 18 days | 5 years 3 months 18 days |
Weighted-average discount rate | 1.90% | 1.90% |
Operating cash flows paid for operating leases | $ 51 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 142 |
Leases - Lease Maturities (Details) - USD ($) $ in Millions |
Jul. 26, 2020 |
Oct. 27, 2019 |
---|---|---|
Operating Leases - Maturity After Adoption | ||
2020 (remaining 3 months) | $ 18 | |
2021 | 64 | |
2022 | 51 | |
2023 | 45 | |
2024 | 40 | |
Thereafter | 55 | |
Total lease payments | 273 | |
Less imputed interest | (14) | |
Total | $ 259 | |
Operating Leases - Maturity Before Adoption | ||
2020 | $ 45 | |
2021 | 34 | |
2022 | 24 | |
2023 | 21 | |
2024 | 17 | |
Thereafter | 30 | |
Total operating lease payments due | $ 171 |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Changes in Components of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 9,024 | $ 8,201 | $ 8,214 | $ 6,845 |
Other comprehensive income (loss) before reclassifications | (90) | 5 | ||
Amounts reclassified out of AOCI | (7) | |||
Other comprehensive income (loss), net of tax | 38 | 1 | (97) | 5 |
Ending Balance | 9,569 | 8,116 | 9,569 | 8,116 |
Unrealized Gain (Loss) on Investments, Net | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 11 | 7 | ||
Other comprehensive income (loss) before reclassifications | 19 | 19 | ||
Amounts reclassified out of AOCI | (6) | |||
Other comprehensive income (loss), net of tax | 13 | 19 | ||
Ending Balance | 24 | 9 | 24 | 9 |
Unrealized Gain (Loss) on Investments, Net | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (17) | |||
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (16) | |||
Other comprehensive income (loss) before reclassifications | (109) | |||
Amounts reclassified out of AOCI | (1) | |||
Other comprehensive income (loss), net of tax | (110) | |||
Ending Balance | (126) | (126) | ||
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (9) | |||
Other comprehensive income (loss) before reclassifications | (13) | |||
Other comprehensive income (loss), net of tax | (13) | |||
Ending Balance | (22) | (22) | ||
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | |||
Defined and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (188) | (137) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified out of AOCI | 0 | |||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending Balance | (188) | (137) | (188) | (137) |
Defined and Postretirement Benefit Plans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | |||
Cumulative Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 13 | 14 | ||
Other comprehensive income (loss) before reclassifications | 0 | (1) | ||
Amounts reclassified out of AOCI | 0 | |||
Other comprehensive income (loss), net of tax | 0 | (1) | ||
Ending Balance | 13 | 13 | 13 | 13 |
Cumulative Translation Adjustments | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | |||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (315) | (138) | (180) | (125) |
Other comprehensive income (loss), net of tax | 38 | 1 | (97) | 5 |
Ending Balance | $ (277) | $ (137) | $ (277) | (137) |
AOCI Attributable to Parent | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (17) |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Additional Information (Details) $ / shares in Units, shares in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020
$ / shares
|
Mar. 31, 2020
$ / shares
|
Dec. 31, 2019
$ / shares
|
Jul. 26, 2020
USD ($)
$ / shares
shares
|
Jul. 28, 2019
$ / shares
|
Jul. 26, 2020
USD ($)
employee_stock_purchase_plan
$ / shares
shares
|
Jul. 28, 2019
USD ($)
$ / shares
|
Feb. 28, 2018
USD ($)
|
|
Equity [Line Items] | ||||||||
Amount authorized by board of directors to repurchase shares | $ 6,000,000,000.0 | |||||||
Remaining authorized repurchase amount | $ 1,300,000,000 | $ 1,300,000,000 | ||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.22 | $ 0.22 | $ 0.21 | $ 0.22 | $ 0.21 | $ 0.65 | $ 0.62 | |
Payments of dividends | $ 587,000,000 | $ 577,000,000 | ||||||
Tax effects on the unrealized gain (loss) on derivative instruments qualifying as cash flow hedges | $ 32,000,000 | |||||||
Employee Stock | ||||||||
Equity [Line Items] | ||||||||
Performance of total shareholder return | 100.00% | |||||||
Total unrecognized compensation expense | $ 455,000,000 | $ 455,000,000 | ||||||
Weighted average period for unrecognized compensation expense to be recognized (in years) | 2 years 7 months 6 days | |||||||
Performance Shares | ||||||||
Equity [Line Items] | ||||||||
Additional performance-based awards to be earned upon certain levels of achievement (in shares) | shares | 1.3 | 1.3 | ||||||
Award measurement metric relative weight | 50.00% | |||||||
Award measurement period | 3 years | |||||||
Performance Shares | Minimum | ||||||||
Equity [Line Items] | ||||||||
Award vesting rights, percentage of target amount | 0.00% | |||||||
Performance Shares | Maximum | ||||||||
Equity [Line Items] | ||||||||
Award vesting rights, percentage of target amount | 200.00% | |||||||
Employee Stock Incentive Plan | Employee Stock Option | ||||||||
Equity [Line Items] | ||||||||
Number of shares available for grant (in shares) | shares | 56.0 | 56.0 | ||||||
Employee Stock Purchase Plan | ||||||||
Equity [Line Items] | ||||||||
Number of employee stock purchase plans | employee_stock_purchase_plan | 2 | |||||||
Employee stock purchase plan purchase period | 6 months | |||||||
Employee Stock Purchase Plan | Employee Stock | ||||||||
Equity [Line Items] | ||||||||
Purchase price of common stock | 85.00% | |||||||
Employee Stock Purchase Plan | Employee Stock Option | ||||||||
Equity [Line Items] | ||||||||
Number of shares available for grant (in shares) | shares | 11.0 | 11.0 | ||||||
United States | Employee Stock Purchase Plan | ||||||||
Equity [Line Items] | ||||||||
Number of employee stock purchase plans | employee_stock_purchase_plan | 1 | |||||||
Non-US | Employee Stock Purchase Plan | ||||||||
Equity [Line Items] | ||||||||
Number of employee stock purchase plans | employee_stock_purchase_plan | 1 |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Equity [Abstract] | ||||
Common stock repurchases (in shares) | 4 | 12 | 11 | 50 |
Cost of stock repurchased | $ 200 | $ 528 | $ 599 | $ 1,903 |
Average price paid per share (in dollars per share) | $ 59.41 | $ 42.07 | $ 55.74 | $ 37.88 |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 70 | $ 67 | $ 234 | $ 197 |
Cost of products sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 24 | 23 | 79 | 67 |
Research, development and engineering | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 27 | 25 | 89 | 74 |
Marketing and selling | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 8 | 8 | 27 | 23 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 11 | $ 11 | $ 39 | $ 33 |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units (Details) - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units shares in Millions |
9 Months Ended |
---|---|
Jul. 26, 2020
$ / shares
shares
| |
Restricted stock units, restricted stock, performance shares and performance units | |
Beginning balance (in shares) | shares | 18 |
Granted (in shares) | shares | 6 |
Vested (in shares) | shares | (8) |
Canceled (in shares) | shares | (1) |
Ending balance (in shares) | shares | 15 |
Weighted Average Grant Date Fair Value | |
Beginning of period (in dollars per share) | $ / shares | $ 35.78 |
Granted (in dollars per share) | $ / shares | 53.51 |
Vested (in dollars per share) | $ / shares | 30.99 |
Canceled (in dollars per share) | $ / shares | 42.06 |
Ending balance (in dollars per share) | $ / shares | $ 44.93 |
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Employee Stock Purchase Plan, Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 1.40% | 2.18% | 1.40% | 2.18% |
Expected volatility | 37.20% | 37.10% | 37.20% | 37.10% |
Risk-free interest rate | 1.05% | 2.51% | 1.05% | 2.51% |
Expected life (in years) | 6 months | 6 months | 6 months | 6 months |
Weighted average estimated fair value (in dollars per share) | $ 15.24 | $ 9.78 | $ 15.24 | $ 9.78 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Reversal of GILTI benefit | $ 96 | |||
Effective income tax rate provision (as percent) | 19.10% | 27.00% | 14.90% | 17.30% |
Settlement of certain unrecognized tax benefits | $ 44 | $ 44 | ||
Increase in unrecognized tax benefits is reasonably possible | $ 139 | $ 139 |
Warranty, Guarantees and Contingencies - Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 199 | $ 195 | $ 196 | $ 208 |
Warranties issued | 43 | 37 | 119 | 110 |
Change in reserves related to preexisting warranty | 0 | 1 | 2 | 7 |
Consumption of reserves | (43) | (42) | (118) | (134) |
Ending balance | $ 199 | $ 191 | $ 199 | $ 191 |
Warranty, Guarantees and Contingencies - Narrative (Details) $ in Millions |
9 Months Ended |
---|---|
Jul. 26, 2020
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Standard product warranty period | 12 months |
Maximum potential amount of future payments for letters of credit or other guarantee instruments | $ 148 |
Parent guarantees to banks | $ 151 |
Industry Segment Operations - Additional Information (Details) |
9 Months Ended |
---|---|
Jul. 26, 2020
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Industry Segment Operations - Net Sales and Operating Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Net sales and operating income (loss) for each reportable segment | ||||
Net Sales | $ 4,395 | $ 3,562 | $ 12,514 | $ 10,854 |
Operating Income (Loss) | $ 1,108 | $ 802 | $ 3,082 | $ 2,486 |
Sales Revenue | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Corporate and Other | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Net Sales | $ 20 | $ 19 | $ 46 | $ 58 |
Operating Income (Loss) | $ (206) | $ (111) | $ (576) | $ (362) |
Semiconductor Systems | Sales Revenue | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Semiconductor Systems | Foundry, logic and other | Sales Revenue | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Percentage of net sales | 55.00% | 49.00% | 60.00% | 50.00% |
Semiconductor Systems | Dynamic random-access memory (DRAM) | Sales Revenue | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Percentage of net sales | 22.00% | 27.00% | 19.00% | 22.00% |
Semiconductor Systems | Flash memory | Sales Revenue | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Percentage of net sales | 23.00% | 24.00% | 21.00% | 28.00% |
Semiconductor Systems | Operating Segments | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Net Sales | $ 2,916 | $ 2,273 | $ 8,297 | $ 6,725 |
Operating Income (Loss) | 958 | 613 | 2,655 | 1,823 |
Applied Global Services | Operating Segments | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Net Sales | 1,034 | 931 | 3,049 | 2,877 |
Operating Income (Loss) | 273 | 259 | 807 | 827 |
Display and Adjacent Markets | Operating Segments | ||||
Net sales and operating income (loss) for each reportable segment | ||||
Net Sales | 425 | 339 | 1,122 | 1,194 |
Operating Income (Loss) | $ 83 | $ 41 | $ 196 | $ 198 |
Industry Segment Operations - Net Sales by Geographic Region (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,395 | $ 3,562 | $ 12,514 | $ 10,854 |
Change | 23.00% | 15.00% | ||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,800 | 2,848 | $ 10,813 | 8,722 |
Change | 33.00% | 24.00% | ||
China | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,470 | 1,117 | $ 3,880 | 3,078 |
Change | 32.00% | 26.00% | ||
Korea | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,051 | 445 | $ 2,312 | 1,458 |
Change | 136.00% | 59.00% | ||
Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 687 | 596 | $ 3,081 | 2,046 |
Change | 15.00% | 51.00% | ||
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 472 | 556 | $ 1,290 | 1,727 |
Change | (15.00%) | (25.00%) | ||
Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 120 | 134 | $ 250 | 413 |
Change | (10.00%) | (39.00%) | ||
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 399 | 552 | $ 1,171 | 1,459 |
Change | (28.00%) | (20.00%) | ||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 196 | $ 162 | $ 530 | $ 673 |
Change | 21.00% | (21.00%) | ||
Sales Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Sales Revenue | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 86.00% | 80.00% | 86.00% | 80.00% |
Sales Revenue | China | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 33.00% | 31.00% | 31.00% | 28.00% |
Sales Revenue | Korea | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 24.00% | 12.00% | 18.00% | 13.00% |
Sales Revenue | Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 16.00% | 17.00% | 25.00% | 19.00% |
Sales Revenue | Japan | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 11.00% | 16.00% | 10.00% | 16.00% |
Sales Revenue | Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 2.00% | 4.00% | 2.00% | 4.00% |
Sales Revenue | United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 9.00% | 15.00% | 10.00% | 14.00% |
Sales Revenue | Europe | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net sales | 5.00% | 5.00% | 4.00% | 6.00% |
Industry Segment Operations - Reconciliations of Total Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated net sales | $ 4,395 | $ 3,562 | $ 12,514 | $ 10,854 |
Share-based compensation | (70) | (67) | (234) | (197) |
Total | 1,108 | 802 | 3,082 | 2,486 |
Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated net sales | 20 | 19 | 46 | 58 |
Unallocated cost of products sold and expenses | (156) | (63) | (388) | (223) |
Share-based compensation | (70) | (67) | (234) | (197) |
Total | $ (206) | $ (111) | $ (576) | $ (362) |
Industry Segment Operations - Percentage by Customer (Details) - Sales Revenue |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 26, 2020 |
Jul. 28, 2019 |
Jul. 26, 2020 |
Jul. 28, 2019 |
|
Entity-Wide Revenue, Major Customer [Line Items] | ||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | 100.00% |
Customer Concentration Risk | Taiwan Semiconductor Manufacturing Company Limited | ||||
Entity-Wide Revenue, Major Customer [Line Items] | ||||
Percentage of net sales | 21.00% | |||
Customer Concentration Risk | Samsung Electronics Co., Ltd. | ||||
Entity-Wide Revenue, Major Customer [Line Items] | ||||
Percentage of net sales | 19.00% |
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