Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

Details of goodwill and indefinite-lived intangible assets as of July 31, 2022 and October 31, 2021 were as follows:

 

	July 31, 2022						October 31, 2021
	Goodwill		Indefinite-lived Intangible Assets		Total		Goodwill		Indefinite-lived Intangible Assets		Total
	(In millions)
Semiconductor Systems	$	2,441	$	16	$	2,457	$	2,207	$	—	$	2,207
Applied Global Services	1,032		—		1,032		1,032		—		1,032
Display and Adjacent Markets	199		—		199		199		—		199
Corporate and Other	41		—		41		41		—		41
Carrying amount	$	3,713	$	16	$	3,729	$	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:

	July 31, 2022		October 31, 2021
	(In millions)
Purchased technology, net	$	255	$	46
Intangible assets - finite-lived, net	66		58
Intangible assets - indefinite-lived	16		—
Total	$	337	$	104

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows: 

	July 31, 2022						October 31, 2021
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total
	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,700	$	274	$	1,974	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	158		36		194		163		38		201
Corporate and Other	18		18		36		13		16		29
Gross carrying amount	$	1,911	$	372	$	2,283	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,455)	$	(211)	$	(1,666)	$	(1,446)	$	(203)	$	(1,649)
Applied Global Services	(33)		(44)		(77)		(32)		(44)		(76)
Display and Adjacent Markets	(158)		(36)		(194)		(161)		(38)		(199)
Corporate and Other	(10)		(15)		(25)		(2)		(11)		(13)
Accumulated amortization	$	(1,656)	$	(306)	$	(1,962)	$	(1,641)	$	(296)	$	(1,937)
Carrying amount	$	255	$	66	$	321	$	46	$	58	$	104

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
	(In millions)
Semiconductor Systems	$	9	$	9	$	22	$	31
Applied Global Services	—		1		1		1
Display and Adjacent Markets	—		1		2		4
Corporate & Other	2		—		5		1
Total	$	11	$	11	$	30	$	37

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	July 31, 2022		August 1, 2021		July 31, 2022		August 1, 2021
	(In millions)
Cost of products sold	$	7	$	7	$	20	$	22
Research, development and engineering	—		—		—		1
Marketing and selling	4		4		10		14
Total	$	11	$	11	$	30	$	37

Future estimated amortization expense

As of July 31, 2022, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: 

	Amortization Expense
	(In millions)
2022 (remaining 3 months)	$	10
2023	41
2024	38
2025	36
2026	36
Thereafter	160
Total	$	321