Industry Segment Operations (Tables)

9 Months Ended

Aug. 01, 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				Nine Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)
	(In millions)
August 1, 2021:
Semiconductor Systems	$	4,454	$	1,785	$	11,979	$	4,588
Applied Global Services	1,286		393		3,644		1,083
Display and Adjacent Markets	431		99		1,217		229
Corporate and Other	25		(264)		100		(1,025)
Total	$	6,196	$	2,013	$	16,940	$	4,875
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082

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										Nine Months Ended
	August 1, 2021				July 26, 2020				Change		August 1, 2021				July 26, 2020				Change
	(In millions, except percentages)
China	$	2,251	36	%	$	1,470	33	%	53	%	$	5,478	32	%	$	3,880	31	%	41	%
Korea	1,291		21	%	1,051		24	%	23	%	4,008		23	%	2,312		18	%	73	%
Taiwan	1,261		20	%	687		16	%	84	%	3,502		21	%	3,081		25	%	14	%
Japan	449		7	%	472		11	%	(5)	%	1,349		8	%	1,290		10	%	5	%
Southeast Asia	173		3	%	120		2	%	44	%	472		3	%	250		2	%	89	%
Asia Pacific	5,425		87	%	3,800		86	%	43	%	14,809		87	%	10,813		86	%	37	%
United States	533		9	%	399		9	%	34	%	1,365		8	%	1,171		10	%	17	%
Europe	238		4	%	196		5	%	21	%	766		5	%	530		4	%	45	%
Total	$	6,196	100	%	$	4,395	100	%	41	%	$	16,940	100	%	$	12,514	100	%	35	%

Disaggregation of Revenue

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

	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
Foundry, logic and other	63	%	55	%	59	%	60	%
Dynamic random-access memory (DRAM)	20	%	22	%	17	%	19	%
Flash memory	17	%	23	%	24	%	21	%
	100	%	100	%	100	%	100	%

Reconciliations of total segment operating income to consolidated operating income (loss)

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

	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Unallocated net sales	$	25	$	20	$	100	$	46
Unallocated cost of products sold and expenses	(208)		(156)		(549)		(388)
Share-based compensation	(81)		(70)		(272)		(234)
Severance and related charges	—		—		(150)		—
Deal termination fee	—		—		(154)		—
Total	$	(264)	$	(206)	$	(1,025)	$	(576)

Companies accounted for at least 10 percent of net sales

The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended August 1, 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.	23	%