Industry Segment Operations (Tables)

6 Months Ended

May 02, 2021

Segment Reporting [Abstract]

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

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

	Three Months Ended				Six Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)
	(In millions)
May 2, 2021:
Semiconductor Systems	$	3,972	$	1,542	$	7,525	$	2,803
Applied Global Services	1,203		358		2,358		690
Display and Adjacent Markets	375		65		786		130
Corporate and Other	32		(386)		75		(761)
Total	$	5,582	$	1,579	$	10,744	$	2,862
April 26, 2020:
Semiconductor Systems	$	2,567	$	782	$	5,381	$	1,697
Applied Global Services	1,018		256		2,015		534
Display and Adjacent Markets	365		75		697		113
Corporate and Other	7		(181)		26		(370)
Total	$	3,957	$	932	$	8,119	$	1,974

Revenue from external customers by geographic areas

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

	Three Months Ended										Six Months Ended
	May 2, 2021				April 26, 2020				Change		May 2, 2021				April 26, 2020				Change
	(In millions, except percentages)
China	$	1,844	33	%	$	1,138	29	%	62	%	$	3,227	30	%	$	2,410	30	%	34	%
Korea	1,428		25	%	753		19	%	90	%	2,717		25	%	1,261		16	%	115	%
Taiwan	1,041		19	%	1,029		26	%	1	%	2,241		21	%	2,394		29	%	(6)	%
Japan	442		8	%	467		12	%	(5)	%	900		8	%	818		10	%	10	%
Southeast Asia	109		2	%	58		1	%	88	%	299		3	%	130		1	%	130	%
Asia Pacific	4,864		87	%	3,445		87	%	41	%	9,384		87	%	7,013		86	%	34	%
United States	489		9	%	331		8	%	48	%	832		8	%	772		10	%	8	%
Europe	229		4	%	181		5	%	27	%	528		5	%	334		4	%	58	%
Total	$	5,582	100	%	$	3,957	100	%	41	%	$	10,744	100	%	$	8,119	100	%	32	%

Disaggregation of Revenue

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

	Three Months Ended				Six Months Ended
	May 2, 2021		April 26, 2020		May 2, 2021		April 26, 2020
Foundry, logic and other	56	%	56	%	57	%	62	%
Dynamic random-access memory (DRAM)	14	%	22	%	16	%	18	%
Flash memory	30	%	22	%	27	%	20	%
	100	%	100	%	100	%	100	%

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

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

	Three Months Ended				Six Months Ended
	May 2, 2021		April 26, 2020		May 2, 2021		April 26, 2020
	(In millions)
Unallocated net sales	$	32	$	7	$	75	$	26
Unallocated cost of products sold and expenses	(174)		(117)		(341)		(232)
Share-based compensation	(84)		(71)		(191)		(164)
Severance and related charges	(6)		—		(150)		—
Deal termination fee	(154)		—		(154)		—
Total	$	(386)	$	(181)	$	(761)	$	(370)

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 six months ended May 2, 2021, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	16	%
Samsung Electronics Co., Ltd.	24	%