XML 45 R25.htm IDEA: XBRL DOCUMENT v3.23.3
Industry Segment Operations
 12 Months Ended
Oct. 29, 2023
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations    
Our three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon our management organization structure as of October 29, 2023 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments.
The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.
The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, certain remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products.
The Display and Adjacent Markets segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells.
Each operating segment is separately managed and has separate financial results that are reviewed by our chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by our chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information.
We derive the segment results directly from our internal management reporting system. The accounting policies we use to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net sales and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments.
The Corporate and Other category includes revenues from products, as well as costs of products sold, for fabricating solar photovoltaic cells and modules, and certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs related to share-based compensation; certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level; and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments restructuring, severance and asset impairment charges and any associated adjustments related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments.
Information for each reportable segment for and as of the end of each fiscal year were as follows:
 
Net SalesOperating
Income (Loss)		Depreciation/
Amortization		Capital
Expenditures		Accounts ReceivableInventories
 (In millions)
2023:
Semiconductor Systems $19,698 $7,090 $235 $381 $3,943 $3,433 
Applied Global Services5,732 1,657 31 39 1,111 2,073 
Display and Adjacent Markets868 133 19 13 184 200 
Corporate and Other219 (1,226)230 673 (73)19 
Total$26,517 $7,654 $515 $1,106 $5,165 $5,725 
2022:
Semiconductor Systems$18,797 $6,969 $203 $249 $4,924 $3,995 
Applied Global Services5,543 1,661 31 38 997 1,788 
Display and Adjacent Markets1,331 260 31 30 148 129 
Corporate and Other114 (1,102)179 470 (1)20 
Total$25,785 $7,788 $444 $787 $6,068 $5,932 
2021:
Semiconductor Systems$16,286 $6,311 $194 $228 $3,886 $2,586 
Applied Global Services5,013 1,508 32 29 922 1,561 
Display and Adjacent Markets1,634 314 27 32 207 153 
Corporate and Other130 (1,244)141 379 (62)9 
Total$23,063 $6,889 $394 $668 $4,953 $4,309 
Semiconductor Systems and Display and Adjacent Markets revenues are recognized at a point in time. Applied Global Services revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception.
Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:
202320222021
Foundry, logic and other77 %66 %60 %
Dynamic random-access memory (DRAM)17 %19 %19 %
Flash memory6 %15 %21 %
100 %100 %100 %
The reconciling items included in Corporate and Other were as follows:
202320222021
 (In millions)
Unallocated net sales$219 $114 $130 
Unallocated cost of products sold and expenses(955)(807)(725)
Share-based compensation(490)(413)(346)
Severance and related charges— 4 (149)
Deal termination fee— — (154)
Total$(1,226)$(1,102)$(1,244)
For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped. Long-lived assets consist primarily of property, plant and equipment and right-of-use assets and are attributed to the geographic location in which they are located. Fiscal 2021 long-lived asset amount has been updated to include right-of-use assets to conform with the current year presentation. Net sales and long-lived assets by geographic region for and as of each fiscal year were as follows:
 
202320222021
 (In millions)
Net sales:
United States$4,006 $3,104 $2,038 
China7,247 7,254 7,535 
Korea4,609 4,395 5,012 
Taiwan5,670 6,262 4,742 
Japan2,075 2,012 1,962 
Europe2,152 1,674 1,097 
Southeast Asia758 1,084 677 
Total outside United States22,511 22,681 21,025 
Consolidated total$26,517 $25,785 $23,063 


October 29,
2023		October 30,
2022
 (In millions)
Long-lived assets:
United States$3,239 $2,725 
China4 6 
Korea11 14 
Taiwan59 62 
Japan7 7 
Europe110 75 
Southeast Asia6 8 
Total outside United States197 172 
Consolidated total$3,436 $2,897 
The following customers accounted for at least 10 percent of our net sales in each fiscal year, which were for products and services in multiple reportable segments:
202320222021
Samsung Electronics Co., Ltd.15 %12 %20 %
Taiwan Semiconductor Manufacturing Company Limited19 %20 %15 %
Intel Corporation*10 %*
___________________________
*Less than 10%