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Industry Segment Operations
 3 Months Ended
Jan. 28, 2024
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 January 28, 2024 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. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation. 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 revenue 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 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.
Net revenue and operating income (loss) for each reportable segment were as follows:
Three Months Ended
Net RevenueOperating
Income (Loss)
 (In millions)
January 28, 2024:
Semiconductor Systems$4,909 $1,744 
Applied Global Services1,476 417 
Display and Adjacent Markets244 25 
Corporate and Other78 (219)
Total$6,707 $1,967 
January 29, 2023:
Semiconductor Systems$5,162 $1,855 
Applied Global Services1,369 345 
Display and Adjacent Markets167 3 
Corporate and Other41 (233)
Total$6,739 $1,970 
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 revenue by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows:
Three Months Ended
 January 28,
2024		January 29,
2023		Change
 (In millions, except percentages)
China$2,997 45 %$1,145 17 %162 %
Korea1,231 18 %1,293 19 %(5)%
Taiwan559 8 %1,968 29 %(72)%
Japan565 9 %456 7 %24 %
Southeast Asia186 3 %253 4 %(26)%
Asia Pacific5,538 83 %5,115 76 %8 %
United States759 11 %1,051 16 %(28)%
Europe410 6 %573 8 %(28)%
Total$6,707 100 %$6,739 100 %— %

Net revenue for Semiconductor Systems by end use application for the periods indicated were as follows:
Three Months Ended
January 28,
2024		January 29,
2023
Foundry, logic and other62 %77 %
Dynamic random-access memory (DRAM)34 %13 %
Flash memory4 %10 %
100 %100 %
The reconciling items included in Corporate and Other were as follows: 

Three Months Ended
January 28,
2024		January 29,
2023
 (In millions)
Unallocated net revenue$78 $41 
Unallocated cost of products sold and expenses(297)(274)
Total$(219)$(233)


The following customer accounted for at least 10 percent of our net revenue for the three months ended January 28, 2024, and sales to this customer included products and services from multiple reportable segments.
 
Percentage of Net Revenue
Samsung Electronics Co., Ltd.15 %