Industry Segment Operations (Tables)

6 Months Ended

May 01, 2022

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 1, 2022:
Semiconductor Systems	$	4,458	$	1,648	$	9,025	$	3,419
Applied Global Services	1,383		422		2,703		825
Display and Adjacent Markets	381		81		747		157
Corporate and Other	23		(257)		41		(531)
Total	$	6,245	$	1,894	$	12,516	$	3,870
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

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 1, 2022				May 2, 2021				Change		May 1, 2022				May 2, 2021				Change
	(In millions, except percentages)
China	$	2,133	34	%	$	1,844	33	%	16	%	$	4,120	33	%	$	3,227	30	%	28	%
Korea	968		16	%	1,428		25	%	(32)	%	2,089		17	%	2,717		25	%	(23)	%
Taiwan	1,408		23	%	1,041		19	%	35	%	2,657		21	%	2,241		21	%	19	%
Japan	407		6	%	442		8	%	(8)	%	968		8	%	900		8	%	8	%
Southeast Asia	138		2	%	109		2	%	27	%	363		3	%	299		3	%	21	%
Asia Pacific	5,054		81	%	4,864		87	%	4	%	10,197		82	%	9,384		87	%	9	%
United States	702		11	%	489		9	%	44	%	1,549		12	%	832		8	%	86	%
Europe	489		8	%	229		4	%	114	%	770		6	%	528		5	%	46	%
Total	$	6,245	100	%	$	5,582	100	%	12	%	$	12,516	100	%	$	10,744	100	%	16	%

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 1, 2022		May 2, 2021		May 1, 2022		May 2, 2021
Foundry, logic and other	65	%	56	%	63	%	57	%
Dynamic random-access memory (DRAM)	21	%	14	%	23	%	16	%
Flash memory	14	%	30	%	14	%	27	%
	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				Six Months Ended
	May 1, 2022		May 2, 2021		May 1, 2022		May 2, 2021
	(In millions)
Unallocated net sales	$	23	$	32	$	41	$	75
Unallocated cost of products sold and expenses	(179)		(174)		(357)		(341)
Share-based compensation	(101)		(84)		(219)		(191)
Severance and related charges	—		(6)		4		(150)
Deal termination fee	—		(154)		—		(154)
Total	$	(257)	$	(386)	$	(531)	$	(761)

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 six months ended May 1, 2022, and sales to these customers included products and services from multiple reportable segments.

 

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	17	%
Samsung Electronics Co., Ltd.	12	%
Intel Corporation	11	%