Cash, Cash Equivalents and Investments (Tables)

12 Months Ended

Oct. 31, 2021

Cash and Cash Equivalents [Abstract]

Summary of cash, cash equivalents and investments

The following tables summarize Applied’s cash, cash equivalents and investments by security type:

 

October 31, 2021	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Cash	$	1,407	$	—	$	—	$	1,407
Cash equivalents:
Money market funds	3,556		—		—		3,556
Municipal securities	22		—		—		22
Commercial paper, corporate bonds and medium-term notes	10		—		—		10
Total Cash equivalents	3,588		—		—		3,588
Total Cash and Cash equivalents	$	4,995	$	—	$	—	$	4,995
Short-term and long-term investments:
U.S. Treasury and agency securities	$	314	$	—	$	—	$	314
Non-U.S. government securities*	5		—		—		5
Municipal securities	367		3		1		369
Commercial paper, corporate bonds and medium-term notes	587		2		2		587
Asset-backed and mortgage-backed securities	555		3		1		557
Total fixed income securities	1,828		8		4		1,832
Publicly traded equity securities	22		39		3		58
Equity investments in privately-held companies	561		82		14		629
Total equity investments	583		121		17		687
Total short-term and long-term investments	$	2,411	$	129	$	21	$	2,519
Total Cash, Cash equivalents and Investments	$	7,406	$	129	$	21	$	7,514

 _________________________

* Includes Canadian provincial government debt

October 25, 2020	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Cash	$	1,136	$	—	$	—	$	1,136
Cash equivalents:
Money market funds	4,209		—		—		4,209
Municipal securities	6		—		—		6
Total Cash equivalents	4,215		—		—		4,215
Total Cash and Cash equivalents	$	5,351	$	—	$	—	$	5,351
Short-term and long-term investments:
U.S. Treasury and agency securities	$	394	$	4	$	—	$	398
Municipal securities	359		6		—		365
Commercial paper, corporate bonds and medium-term notes	492		8		1		499
Asset-backed and mortgage-backed securities	470		9		—		479
Total fixed income securities	1,715		27		1		1,741
Publicly traded equity securities	11		36		2		45
Equity investments in privately-held companies	121		25		7		139
Total equity investments	132		61		9		184
Total short-term and long-term investments	$	1,847	$	88	$	10	$	1,925
Total Cash, Cash equivalents and Investments	$	7,198	$	88	$	10	$	7,276

________________________

Contractual maturities of investments

The following table summarizes the contractual maturities of Applied’s investments at October 31, 2021:

 

	Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	393	$	395
Due after one through five years	878		878
Due after five years	2		2
No single maturity date**	1,138		1,244
Total	$	2,411	$	2,519

 _________________________

** Securities with no single maturity date include publicly-traded and privately-held equity securities, and asset-backed and mortgage-backed securities.

Components of gain (loss) on equity investment

The components of gain (loss) on equity investments for each fiscal year were as follows:

	2021		2020		2019
	(In millions)
Publicly traded equity securities
Unrealized gain	$	14	$	14	$	28
Unrealized loss	(11)		(17)		(5)
Realized gain on sales	2		1		2
Equity investments in privately-held companies
Unrealized gain	65		18		13
Unrealized loss	(12)		(7)		(6)
Realized gain on sales	48		8		5
Realized loss on sales or impairment	(7)		(8)		(1)
Total gain (loss) on equity investments, net	$	99	$	9	$	36