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:

	July 26, 2020		October 27, 2019
	(In millions)
Semiconductor Systems	$	2,206	$	2,182
Applied Global Services	1,018		1,018
Display and Adjacent Markets	199		199
Corporate and Other	51		—
Carrying amount	$	3,474	$	3,399

Summary of purchased technology and intangible assets

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

	July 26, 2020		October 27, 2019
	(In millions)
Purchased technology, net	$	78	$	71
Intangible assets - finite-lived, net	79		85
Total	$	157	$	156

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

	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	$	1,475	$	256	$	1,731	$	1,449	$	252	$	1,701
Applied Global Services	35		44		79		33		44		77
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	6		12		18		—		9		9
Gross carrying amount	$	1,679	$	350	$	2,029	$	1,645	$	343	$	1,988
Accumulated amortization:
Semiconductor Systems	$	(1,416)	$	(181)	$	(1,597)	$	(1,400)	$	(168)	$	(1,568)
Applied Global Services	(30)		(44)		(74)		(30)		(44)		(74)
Display and Adjacent Markets	(155)		(37)		(192)		(144)		(37)		(181)
Corporate and Other	—		(9)		(9)		—		(9)		(9)
Accumulated amortization	$	(1,601)	$	(271)	$	(1,872)	$	(1,574)	$	(258)	$	(1,832)
Carrying amount	$	78	$	79	$	157	$	71	$	85	$	156

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Semiconductor Systems	$	10	$	11	$	29	$	32
Applied Global Services	—		—		—		1
Display and Adjacent Markets	4		4		11		10
Total	$	14	$	15	$	40	$	43

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Cost of products sold	$	10	$	9	$	27	$	28
Research, development and engineering	—		1		—		1
Marketing and selling	4		5		13		14
Total	$	14	$	15	$	40	$	43

Future estimated amortization expense

As of July 26, 2020, future estimated amortization expense is expected to be as follows: 

	Amortization Expense
	(In millions)
2020 (remaining 3 months)	$	14
2021	45
2022	30
2023	17
2024	16
Thereafter	35
Total	$	157