Goodwill, Purchased Technology and Other Intangible Assets (Tables)

6 Months Ended

May 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

Details of goodwill as of May 1, 2022 and October 31, 2021 were as follows:

 

	May 1, 2022		October 31, 2021
	(In millions)
Semiconductor Systems	$	2,207	$	2,207
Applied Global Services	1,032		1,032
Display and Adjacent Markets	199		199
Corporate and Other	41		41
Carrying amount	$	3,479	$	3,479

Summary of purchased technology and intangible assets

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

	May 1, 2022		October 31, 2021
	(In millions)
Purchased technology, net	$	33	$	46
Intangible assets - finite-lived, net	52		58
Total	$	85	$	104

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows: 

	May 1, 2022						October 31, 2021
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total
	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	13		16		29		13		16		29
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,454)	$	(208)	$	(1,662)	$	(1,446)	$	(203)	$	(1,649)
Applied Global Services	(33)		(44)		(77)		(32)		(44)		(76)
Display and Adjacent Markets	(163)		(38)		(201)		(161)		(38)		(199)
Corporate and Other	(4)		(12)		(16)		(2)		(11)		(13)
Accumulated amortization	$	(1,654)	$	(302)	$	(1,956)	$	(1,641)	$	(296)	$	(1,937)
Carrying amount	$	33	$	52	$	85	$	46	$	58	$	104

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Six Months Ended
	May 1, 2022		May 2, 2021		May 1, 2022		May 2, 2021
	(In millions)
Semiconductor Systems	$	6	$	10	$	13	$	22
Applied Global Services	1		—		1		—
Display and Adjacent Markets	1		2		2		3
Corporate & Other	1		1		3		1
Total	$	9	$	13	$	19	$	26

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Six Months Ended
	May 1, 2022		May 2, 2021		May 1, 2022		May 2, 2021
	(In millions)
Cost of products sold	$	6	$	7	$	13	$	15
Research, development and engineering	—		1		—		1
Marketing and selling	3		5		6		10
Total	$	9	$	13	$	19	$	26

Future estimated amortization expense

As of May 1, 2022, future estimated amortization expense is expected to be as follows: 

	Amortization Expense
	(In millions)
2022 (remaining 6 months)	$	14
2023	20
2024	17
2025	15
2026	15
Thereafter	4
Total	$	85