XML 32 R20.htm IDEA: XBRL DOCUMENT v3.25.0.1
Industry Segment Operations
 3 Months Ended
Jan. 26, 2025
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 January 26, 2025 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 to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, advanced 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. 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 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 not included in our reportable segments, 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.
Net revenue and operating income (loss) for each reportable segment were as follows:
Three Months Ended
Net RevenueOperating
Income (Loss)
 (In millions)
January 26, 2025:
Semiconductor Systems$5,356 $1,986 
Applied Global Services1,594 447 
Display183 14 
Corporate and Other33 (272)
Total$7,166 $2,175 
January 28, 2024:
Semiconductor Systems$4,909 $1,744 
Applied Global Services1,476 417 
Display244 25 
Corporate and Other78 (219)
Total$6,707 $1,967 
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 January 26, 2025 and October 27, 2024 were as follows:
 
 January 26,
2025		October 27,
2024
 (In millions)
Goodwill by reportable segment
Semiconductor Systems$2,496 $2,460 
Applied Global Services1,032 1,032 
Display199 199 
Corporate and Other41 41 
$3,768 $3,732 

From time to time, we acquire companies related to our existing or new markets. During the first quarter of fiscal 2025, goodwill increased primarily due to the preliminary purchase accounting for an acquisition, net of adjustments, which was not material to our results of operations or to our balance sheet.
Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows:
Three Months Ended
 January 26,
2025		January 28,
2024		Change
 (In millions, except percentages)
China$2,243 31 %$2,997 45 %(25)%
Korea1,667 23 %1,231 18 %35 %
Taiwan1,183 17 %559 8 %112 %
Japan540 8 %565 9 %(4)%
Southeast Asia286 4 %186 3 %54 %
Asia Pacific5,919 83 %5,538 83 %7 %
United States917 13 %759 11 %21 %
Europe330 4 %410 6 %(20)%
Total$7,166 100 %$6,707 100 %7 %

Net revenue for Semiconductor Systems by market for the periods presented were as follows:
Three Months Ended
January 26,
2025		January 28,
2024
Foundry, logic and other68 %62 %
Dynamic random-access memory (DRAM)28 %34 %
Flash memory4 %4 %
100 %100 %

The reconciling items included in Corporate and Other were as follows: 

Three Months Ended
January 26,
2025		January 28,
2024
 (In millions)
Unallocated net revenue$33 $78 
Unallocated cost of products sold and expenses(305)(297)
Total$(272)$(219)


The following customers accounted for at least 10 percent of our net revenue for the three months ended January 26, 2025, and sales to these customers included products and services from multiple reportable segments.
 
Percentage of Net Revenue
Taiwan Semiconductor Manufacturing Company Limited15 %
Samsung Electronics Co., Ltd.17 %