Balance Sheet Detail

12 Months Ended

Oct. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Detail

Balance Sheet Detail

	October 25, 2020		October 27, 2019
	(In millions)
Inventories
Customer service spares	$	1,270	$	1,245
Raw materials	870		802
Work-in-process	624		575
Finished goods	1,140		852
	$	3,904	$	3,474

Included in finished goods inventory is $16 million at October 25, 2020 and $13 million at 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 $416 million and $318 million of evaluation inventory at October 25, 2020 and October 27, 2019, respectively.

	October 25, 2020		October 27, 2019
	(In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable	$	162	$	96
Prepaid expenses and other	602		485
	$	764	$	581

	Useful Life	October 25, 2020		October 27, 2019
	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	256	$	254
Buildings and improvements	3-30	1,655		1,590
Demonstration and manufacturing equipment	3-5	1,586		1,505
Furniture, fixtures and other equipment	3-5	646		602
Construction in progress		237		120
Gross property, plant and equipment		4,380		4,071
Accumulated depreciation		(2,776)		(2,542)
		$	1,604	$	1,529

Depreciation expense was $320 million, $306 million and $258 million for fiscal 2020, 2019 and 2018 respectively.

	October 25, 2020		October 27, 2019
	(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes	$	1,711	$	1,766
Operating lease right-of-use assets	252		—
Income tax receivables and other assets	260		265
	$	2,223	$	2,031

	October 25, 2020		October 27, 2019
	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	1,124	$	958
Compensation and employee benefits	800		559
Warranty	201		196
Dividends payable	201		192
Income taxes payable	222		160
Other accrued taxes	33		55
Interest payable	36		38
Operating lease liabilities, current	64		—
Other	457		353
	$	3,138	$	2,511

	October 25, 2020		October 27, 2019
	(In millions)
Other Liabilities
Defined and postretirement benefit plans	$	241	$	212
Operating lease liabilities, non-current	195		—
Other	226		163
	$	662	$	375