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Industry Segment Operations
 12 Months Ended
Oct. 27, 2024
Segment Reporting [Abstract]  
Industry Segment Operations Industry Segment Operations    
Our three reportable segments are: Semiconductor Systems, Applied Global Services (AGS), and Display. 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 27, 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 AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200mm and other equipment and factory automation software for semiconductor, display and other products.
The Display 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 and costs of products from other products, as well as 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 severance, asset impairment and any associated charges 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 revenueOperating
Income (Loss)		Depreciation/
Amortization		Capital
Expenditures		Accounts ReceivableInventories
 (In millions)
2024:
Semiconductor Systems $19,911 $6,981 $168 $425 $3,816 $2,988 
Applied Global Services6,225 1,812 22 35 1,297 2,306 
Display885 51 12 29 197 113 
Corporate and Other155 (977)190 701 (76)14 
Total$27,176 $7,867 $392 $1,190 $5,234 $5,421 
2023:
Semiconductor Systems$19,698 $6,879 $235 $381 $3,943 $3,433 
Applied Global Services5,732 1,529 31 39 1,111 2,073 
Display868 114 19 13 184 200 
Corporate and Other219 (868)230 673 (73)19 
Total$26,517 $7,654 $515 $1,106 $5,165 $5,725 
2022:
Semiconductor Systems$18,797 $6,790 $203 $249 $4,924 $3,995 
Applied Global Services5,543 1,555 31 38 997 1,788 
Display1,331 243 31 30 148 129 
Corporate and Other114 (800)179 470 (1)20 
Total$25,785 $7,788 $444 $787 $6,068 $5,932 
Semiconductor Systems and Display revenues are recognized at a point in time. AGS 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.
Details of goodwill by reportable segment as of October 27, 2024 and October 29, 2023 were as follows:
 October 27, 2024October 29, 2023
 (In millions)
Goodwill by reportable segment
Semiconductor Systems$2,460 $2,460 
Applied Global Services1,032 1,032 
Display199 199 
Corporate and Other41 41 
$3,732 $3,732 
Net revenue for Semiconductor Systems by market for the periods indicated were as follows:
202420232022
Foundry, logic and other68 %77 %66 %
Dynamic random-access memory (DRAM)28 %17 %19 %
Flash memory4 %6 %15 %
100 %100 %100 %
The reconciling items included in Corporate and Other were as follows:
202420232022
 (In millions)
Unallocated Net revenue$155 $219 $114 
Unallocated cost of products sold and expenses(1,132)(1,087)(918)
Severance and related charges— — 4 
Total$(977)$(868)$(800)
For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped and services were performed. 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. Net revenue and long-lived assets by geographic region for and as of each fiscal year were as follows:
 
202420232022
 (In millions)
Net revenue:
United States$3,818 $4,006 $3,104 
China10,117 7,247 7,254 
Korea4,493 4,609 4,395 
Taiwan4,010 5,670 6,262 
Japan2,154 2,075 2,012 
Europe1,443 2,152 1,674 
Southeast Asia1,141 758 1,084 
Total outside United States23,358 22,511 22,681 
Consolidated total$27,176 $26,517 $25,785 


October 27,
2024		October 29,
2023
 (In millions)
Long-lived assets:
United States$3,759 $3,239 
China3 4 
Korea9 11 
Taiwan59 59 
Japan7 7 
Europe113 110 
Southeast Asia5 6 
Total outside United States196 197 
Consolidated total$3,955 $3,436 
The following customers accounted for at least 10 percent of our Net revenue in each fiscal year, which were for products and services in multiple reportable segments:
202420232022
Samsung Electronics Co., Ltd.12 %15 %12 %
Taiwan Semiconductor Manufacturing Company Limited11 %19 %20 %
Intel Corporation**10 %
___________________________
*Less than 10%