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Industry Segment Operations
 9 Months Ended
Jul. 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 July 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, 200mm 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 EndedNine Months Ended
Net RevenueOperating
Income (Loss)		Net RevenueOperating
Income (Loss)
 (In millions)
July 28, 2024:
Semiconductor Systems$4,924 $1,712 $14,734 $5,157 
Applied Global Services1,580 467 4,586 1,320 
Display and Adjacent Markets251 16 674 46 
Corporate and Other23 (253)137 (702)
Total$6,778 $1,942 $20,131 $5,821 
July 30, 2023:
Semiconductor Systems$4,676 $1,568 $14,815 $5,138 
Applied Global Services1,464 399 4,261 1,128 
Display and Adjacent Markets235 32 570 51 
Corporate and Other50 (197)148 (634)
Total$6,425 $1,802 $19,794 $5,683 
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 EndedNine Months Ended
 July 28,
2024		July 30,
2023		ChangeJuly 28,
2024		July 30,
2023		Change
 (In millions, except percentages)
China$2,153 32 %$1,734 27 %24 %$7,981 40 %$4,284 22 %86 %
Korea1,102 16 %988 15 %12 %3,321 16 %3,864 19 %(14)%
Taiwan1,148 17 %1,345 21 %(15)%2,726 14 %4,748 24 %(43)%
Japan555 8 %478 8 %16 %1,573 8 %1,394 7 %13 %
Southeast Asia428 6 %180 3 %138 %827 4 %590 3 %40 %
Asia Pacific5,386 79 %4,725 74 %14 %16,428 82 %14,880 75 %10 %
United States1,053 16 %1,039 16 %1 %2,665 13 %3,203 16 %(17)%
Europe339 5 %661 10 %(49)%1,038 5 %1,711 9 %(39)%
Total$6,778 100 %$6,425 100 %5 %$20,131 100 %$19,794 100 %2 %

Net revenue for Semiconductor Systems by end use application for the periods indicated were as follows:
Three Months EndedNine Months Ended
July 28,
2024		July 30,
2023		July 28,
2024		July 30,
2023
Foundry, logic and other72 %79 %66 %80 %
Dynamic random-access memory (DRAM)24 %17 %30 %14 %
Flash memory4 %4 %4 %6 %
100 %100 %100 %100 %
The reconciling items included in Corporate and Other were as follows: 

Three Months EndedNine Months Ended
July 28,
2024		July 30,
2023		July 28,
2024		July 30,
2023
 (In millions)
Unallocated net revenue$23 $50 $137 $148 
Unallocated cost of products sold and expenses(276)(247)(839)(782)
Total$(253)$(197)$(702)$(634)


The following customer accounted for at least 10 percent of our net revenue for the nine months ended July 28, 2024, and sales to this customer included products and services from multiple reportable segments.
 
Percentage of Net Revenue
Samsung Electronics Co., Ltd.12 %