Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 27, 2014 | 9-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'APPLIED MATERIALS INC /DE | ' |
Entity Central Index Key | '0000006951 | ' |
Current Fiscal Year End Date | '--10-26 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock Shares Outstanding | ' | 1,217,401,400 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $2,353 | $1,973 | $4,543 | $3,546 |
Cost of products sold | 1,352 | 1,165 | 2,651 | 2,156 |
Gross margin | 1,001 | 808 | 1,892 | 1,390 |
Operating expenses: | ' | ' | ' | ' |
Research, development and engineering | 355 | 344 | 711 | 648 |
Marketing and selling | 107 | 118 | 216 | 223 |
General and administrative | 152 | 126 | 241 | 251 |
Impairment of goodwill and intangible assets | 0 | 278 | 0 | 278 |
Restructuring charges and asset impairments | 0 | 10 | 7 | 19 |
Total operating expenses | 614 | 876 | 1,175 | 1,419 |
Income (loss) from operations | 387 | -68 | 717 | -29 |
Interest expense | 23 | 24 | 48 | 48 |
Interest and other income, net | 1 | 2 | 11 | 5 |
Income (loss) before income taxes | 365 | -90 | 680 | -72 |
Provision for income taxes | 103 | 39 | 165 | 23 |
Net income (loss) | $262 | ($129) | $515 | ($95) |
Earnings (loss) per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.22 | ($0.11) | $0.43 | ($0.08) |
Diluted (in dollars per share) | $0.21 | ($0.11) | $0.42 | ($0.08) |
Weighted average number of shares: | ' | ' | ' | ' |
Basic (in shares) | 1,216 | 1,203 | 1,211 | 1,200 |
Diluted (in shares) | 1,229 | 1,203 | 1,227 | 1,200 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $262 | ($129) | $515 | ($95) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Change in unrealized net gain on investments | 3 | 7 | 0 | 7 |
Change in unrealized net gain on derivative investments | -1 | 2 | -2 | 7 |
Change in defined and postretirement benefit plans | 0 | 1 | 0 | -2 |
Change in cumulative translation adjustments | 1 | -2 | -1 | -5 |
Other comprehensive income (loss), net of tax | 3 | 8 | -3 | 7 |
Comprehensive income (loss) | $265 | ($121) | $512 | ($88) |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,453 | $1,711 |
Short-term investments | 146 | 180 |
Accounts receivable, net | 1,615 | 1,633 |
Inventories | 1,564 | 1,413 |
Other current assets | 623 | 705 |
Total current assets | 6,401 | 5,642 |
Long-term investments | 836 | 1,005 |
Property, plant and equipment, net | 855 | 850 |
Goodwill | 3,294 | 3,294 |
Purchased technology and other intangible assets, net | 1,018 | 1,103 |
Deferred income taxes and other assets | 151 | 149 |
Total assets | 12,555 | 12,043 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 1,663 | 1,649 |
Customer deposits and deferred revenue | 999 | 794 |
Total current liabilities | 2,662 | 2,443 |
Long-term debt | 1,947 | 1,946 |
Other liabilities | 471 | 566 |
Total liabilities | 5,080 | 4,955 |
Stockholders’ equity: | ' | ' |
Common stock | 12 | 12 |
Additional paid-in capital | 6,269 | 6,151 |
Retained earnings | 12,759 | 12,487 |
Treasury stock | -11,524 | -11,524 |
Accumulated other comprehensive loss | -41 | -38 |
Total stockholders' equity | 7,475 | 7,088 |
Total liabilities and stockholders' equity | $12,555 | $12,043 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Millions, unless otherwise specified | ||||||
Beginning Balance at Oct. 27, 2013 | $7,088 | $12 | $6,151 | $12,487 | ($11,524) | ($38) |
Beginning Balance, Shares at Oct. 27, 2013 | ' | 1,204 | ' | ' | 717 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 515 | ' | ' | 515 | ' | ' |
Other comprehensive loss, net of tax | -3 | ' | ' | ' | ' | -3 |
Dividends | -243 | ' | ' | -243 | ' | ' |
Share-based compensation | 88 | ' | 88 | ' | ' | ' |
Issuance under stock plans, net of a tax benefit of $25 and other | 30 | ' | 30 | ' | ' | ' |
Issuance under stock plans, net of a tax benefit of $25 and other, shares | ' | 13 | ' | ' | ' | ' |
Ending Balance at Apr. 27, 2014 | $7,475 | $12 | $6,269 | $12,759 | ($11,524) | ($41) |
Ending Balance, Shares at Apr. 27, 2014 | ' | 1,217 | ' | ' | 717 | ' |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 27, 2014 |
Statement of Stockholders' Equity [Abstract] | ' |
Tax benefit included in issuance under stock plans | $25 |
Consolidated_Condensed_Stateme4
Consolidated Condensed Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $515 | ($95) |
Adjustments required to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 188 | 212 |
Impairment of goodwill and intangible assets | 0 | 278 |
Restructuring charges and asset impairments | 7 | 19 |
Unrealized gain on derivative associated with announced business combination | -1 | 0 |
Share-based compensation | 88 | 81 |
Other | -11 | -46 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 18 | -54 |
Inventories | -151 | -46 |
Other assets | 67 | -29 |
Accounts payable and accrued expenses | -71 | -96 |
Customer deposits and deferred revenue | 205 | -16 |
Other liabilities | -45 | 32 |
Cash provided by operating activities | 809 | 240 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -113 | -101 |
Proceeds from sales and maturities of investments | 521 | 603 |
Purchases of investments | -324 | -310 |
Cash provided by investing activities | 84 | 192 |
Cash flows from financing activities: | ' | ' |
Proceeds from common stock issuances and other | 91 | 85 |
Common stock repurchases | 0 | -148 |
Payments of dividends to stockholders | -242 | -216 |
Cash used in financing activities | -151 | -279 |
Increase in cash and cash equivalents | 742 | 153 |
Cash and cash equivalents - beginning of year | 1,711 | 1,392 |
Cash and cash equivalents - end of year | 2,453 | 1,545 |
Supplemental cash flow information: | ' | ' |
Cash payments for income taxes | 59 | 154 |
Cash refunds from income taxes | 12 | 67 |
Cash payments for interest | $46 | $46 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Apr. 27, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Basis of Presentation | |
In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 27, 2013 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 27, 2013 (2013 Form 10-K). Applied’s results of operations for the three and six months ended April 27, 2014 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2014 and 2013 each contain 52 weeks, and the first half of fiscal 2014 and 2013 each contained 26 weeks. | |
Certain prior year amounts have been reclassified to conform to current year presentation. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | |
Revenue Recognition | |
Applied recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is probable. Applied’s shipping terms are customarily FOB Applied shipping point or equivalent terms. Applied’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment or delivery, Applied recognizes revenue upon passage of title for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer technical acceptance; (3) for transactions where legal title does not pass at shipment or delivery, revenue is recognized when legal title passes to the customer, which is generally at customer technical acceptance; and (4) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. In cases where Applied has sold products that have been demonstrated to meet product specifications prior to shipment, Applied believes that at the time of delivery, it has an enforceable claim to amounts recognized as revenue. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided. | |
When a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables, and to the software deliverables as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (FASB) issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The authoritative guidance becomes effective prospectively for Applied in the first quarter of fiscal 2016. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. | |
In July 2013, the FASB issued authoritative guidance that will require an unrecognized tax benefit to be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, with certain exceptions. The authoritative guidance becomes effective for Applied in the first quarter of fiscal 2015, with early adoption permitted. The guidance is not expected to have an impact on Applied's financial position or results of operations. |
Earnings_loss_Per_Share
Earnings (loss) Per Share | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings (loss) Per Share | ' | |||||||||||||||
Earnings (loss) Per Share | ||||||||||||||||
Basic earnings (loss) per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units, and employee stock purchase plan shares) outstanding during the period. Applied's net income (loss) has not been adjusted for any period presented for purposes of computing basic or diluted earnings (loss) per share due to the Company's non-complex capital structure. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 262 | $ | (129 | ) | $ | 515 | $ | (95 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 1,216 | 1,203 | 1,211 | 1,200 | ||||||||||||
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares | 13 | — | 16 | — | ||||||||||||
Denominator for diluted earnings (loss) per share | 1,229 | 1,203 | 1,227 | 1,200 | ||||||||||||
Basic earnings (loss) per share | $ | 0.22 | $ | (0.11 | ) | $ | 0.43 | $ | (0.08 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.21 | $ | (0.11 | ) | $ | 0.42 | $ | (0.08 | ) | ||||||
Potentially dilutive securities | — | 50 | — | 50 | ||||||||||||
Potentially dilutive securities attributable to outstanding stock options and restricted stock units were excluded from the calculation of diluted earnings per share for the three and six months ended April 27, 2014 because the combined exercise price, average unamortized fair value and assumed tax benefits upon the exercise of options and the vesting of restricted stock units were greater than the average market price of Applied common stock, and therefore their inclusion would have been anti-dilutive. Due to the net loss for the three and six months ended April 28, 2013, all potentially dilutive securities were excluded from the calculation of diluted loss per share, as their inclusion would have been anti-dilutive. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Cash, Cash Equivalents, and Investments [Abstract] | ' | |||||||||||||||
Cash, Cash Equivalents and Investments | ' | |||||||||||||||
Cash, Cash Equivalents and Investments | ||||||||||||||||
Summary of Cash, Cash Equivalents and Investments | ||||||||||||||||
The following tables summarize Applied’s cash, cash equivalents and investments by security type: | ||||||||||||||||
April 27, 2014 | Cost | Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In millions) | ||||||||||||||||
Cash | $ | 691 | $ | — | $ | — | $ | 691 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | 1,762 | — | — | 1,762 | ||||||||||||
Total Cash equivalents | 1,762 | — | — | 1,762 | ||||||||||||
Total Cash and Cash equivalents | $ | 2,453 | $ | — | $ | — | $ | 2,453 | ||||||||
Short-term and long-term investments: | ||||||||||||||||
U.S. Treasury and agency securities | $ | 68 | $ | — | $ | — | $ | 68 | ||||||||
Non-U.S. government securities* | 15 | — | — | 15 | ||||||||||||
Municipal securities | 378 | 2 | — | 380 | ||||||||||||
Commercial paper, corporate bonds and medium-term notes | 151 | 1 | — | 152 | ||||||||||||
Asset-backed and mortgage-backed securities | 235 | 1 | 2 | 234 | ||||||||||||
Total fixed income securities | 847 | 4 | 2 | 849 | ||||||||||||
Publicly traded equity securities | 22 | 34 | — | 56 | ||||||||||||
Equity investments in privately-held companies | 77 | — | — | 77 | ||||||||||||
Total short-term and long-term investments | $ | 946 | $ | 38 | $ | 2 | $ | 982 | ||||||||
Total Cash, Cash equivalents and Investments | $ | 3,399 | $ | 38 | $ | 2 | $ | 3,435 | ||||||||
_________________________ | ||||||||||||||||
* Includes agency debt securities guaranteed by non-U.S. governments, which consist of Germany and Canada. | ||||||||||||||||
October 27, 2013 | Cost | Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In millions) | ||||||||||||||||
Cash | $ | 611 | $ | — | $ | — | $ | 611 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | 1,095 | — | — | 1,095 | ||||||||||||
Municipal securities | 5 | — | — | 5 | ||||||||||||
Total Cash equivalents | 1,100 | — | — | 1,100 | ||||||||||||
Total Cash and Cash equivalents | $ | 1,711 | $ | — | $ | — | $ | 1,711 | ||||||||
Short-term and long-term investments: | ||||||||||||||||
U.S. Treasury and agency securities | $ | 170 | $ | — | $ | — | $ | 170 | ||||||||
Non-U.S. government securities | 11 | — | — | 11 | ||||||||||||
Municipal securities | 379 | 2 | — | 381 | ||||||||||||
Commercial paper, corporate bonds and medium-term notes | 218 | 2 | 1 | 219 | ||||||||||||
Asset-backed and mortgage-backed securities | 268 | 2 | 2 | 268 | ||||||||||||
Total fixed income securities | 1,046 | 6 | 3 | 1,049 | ||||||||||||
Publicly traded equity securities | 27 | 33 | — | 60 | ||||||||||||
Equity investments in privately-held companies | 76 | — | — | 76 | ||||||||||||
Total short-term and long-term investments | $ | 1,149 | $ | 39 | $ | 3 | $ | 1,185 | ||||||||
Total Cash, Cash equivalents and Investments | $ | 2,860 | $ | 39 | $ | 3 | $ | 2,896 | ||||||||
Maturities of Investments | ||||||||||||||||
The following table summarizes the contractual maturities of Applied’s investments at April 27, 2014: | ||||||||||||||||
Cost | Estimated | |||||||||||||||
Fair Value | ||||||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less | $ | 124 | $ | 124 | ||||||||||||
Due after one through five years | 488 | 490 | ||||||||||||||
No single maturity date** | 334 | 368 | ||||||||||||||
$ | 946 | $ | 982 | |||||||||||||
_________________________ | ||||||||||||||||
** Securities with no single maturity date include publicly-traded and privately-held equity securities, and asset-backed and mortgage-backed securities. | ||||||||||||||||
Gains and Losses on Investments | ||||||||||||||||
During the six months ended April 27, 2014, gross realized gains on investments were $12 million. During the three months ended April 27, 2014 and the three and six months ended April 28, 2013, gross realized gains and losses on investments were not material. | ||||||||||||||||
At April 27, 2014 and October 27, 2013, gross unrealized losses related to Applied's investment portfolio were not material. Applied regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is considered to be temporary, or other-than-temporary and therefore impaired, include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. Generally, the contractual terms of investments in marketable securities do not permit settlement at prices less than the amortized cost of the investments. Applied determined that the gross unrealized losses on its marketable securities at April 27, 2014 and April 28, 2013 were temporary in nature and therefore it did not recognize any impairment of its marketable securities during the three and six months ended April 27, 2014 or April 28, 2013. Applied recognized $3 million and $6 million of impairment charges on its equity investments in privately-held companies during the three and six months ended April 27, 2014, respectively, and recorded $2 million of impairment charges on its equity investments in privately-held companies during the three and six months ended April 28, 2013. These impairment charges are included in interest and other income, net in the consolidated condensed statement of operations. | ||||||||||||||||
Unrealized gains and temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive income (loss), net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive income (loss) to results of operations. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
Applied’s financial assets are measured and recorded at fair value, except for equity investments in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred. | ||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||
Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||||||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities; | |||||||||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |||||||||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||
Applied’s investments are comprised primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. | ||||||||||||||||||||||||
Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. As of April 27, 2014, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. | ||||||||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||
Financial assets (excluding cash balances) measured at fair value on a recurring basis are summarized below as of April 27, 2014 and October 27, 2013: | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Money market funds | $ | 1,762 | $ | — | $ | 1,762 | $ | 1,095 | $ | — | $ | 1,095 | ||||||||||||
U.S. Treasury and agency securities | 32 | 36 | 68 | 66 | 104 | 170 | ||||||||||||||||||
Non-U.S. government securities | — | 15 | 15 | — | 11 | 11 | ||||||||||||||||||
Municipal securities | — | 380 | 380 | — | 386 | 386 | ||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | — | 152 | 152 | — | 219 | 219 | ||||||||||||||||||
Asset-backed and mortgage-backed securities | — | 234 | 234 | — | 268 | 268 | ||||||||||||||||||
Publicly traded equity securities | 56 | — | 56 | 60 | — | 60 | ||||||||||||||||||
Foreign exchange derivative assets | — | 19 | 19 | — | 20 | 20 | ||||||||||||||||||
Total | $ | 1,850 | $ | 836 | $ | 2,686 | $ | 1,221 | $ | 1,008 | $ | 2,229 | ||||||||||||
There were no transfers between Level 1 and Level 2 fair value measurements during the three and six months ended April 27, 2014 or April 28, 2013. Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of April 27, 2014 or October 27, 2013. | ||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||||||||||
Equity investments in privately-held companies are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. If Applied determines that an other-than-temporary impairment has occurred, the investment will be written down to its estimated fair value based on available information, such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. At April 27, 2014, equity investments in privately-held companies totaled $77 million, of which $70 million of investments were accounted for under the cost method of accounting and $7 million of investments had been measured at fair value on a non-recurring basis within Level 3 fair value measurements due to an other-than-temporary decline in value. At October 27, 2013, equity investments in privately-held companies totaled $76 million, of which $66 million of investments were accounted for under the cost method of accounting and $10 million of investments had been measured at fair value on a non-recurring basis within Level 3 fair value measurements due to an other-than-temporary decline in value. Applied recognized $3 million and $6 million of impairment charges on its equity investments in privately-held companies during the three and six months ended April 27, 2014, respectively, and $2 million during the three and six months ended April 28, 2013. | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, accounts receivable, notes payable, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At April 27, 2014, the carrying amount of long-term debt was $1.9 billion and the estimated fair value was $2.2 billion. At October 27, 2013, the carrying amount of long-term debt was $1.9 billion and the estimated fair value was $2.1 billion.The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | |||||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||||
Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, euro, Israeli shekel, Taiwanese dollar and Swiss franc. Applied uses derivative financial instruments, such as forward exchange contracts and currency option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically up to the next 24 months. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied does not use derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||||||||
Derivative instruments and hedging activities, including foreign currency exchange contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. | ||||||||||||||||||||||||||
Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income or loss (AOCI) in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to derivative instruments included in AOCI at April 27, 2014 is expected to be reclassified into earnings within 12 months. Changes in the fair value of currency forward exchange and option contracts due to changes in time value are excluded from the assessment of effectiveness. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in general and administrative expenses. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was not significant for the three and six months ended April 27, 2014 and April 28, 2013. | ||||||||||||||||||||||||||
Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. | ||||||||||||||||||||||||||
During the fourth quarter of fiscal 2013, Applied purchased foreign exchange option contracts to limit its foreign exchange risk associated with the announced business combination with Tokyo Electron Limited (TEL). The derivatives used to hedge currency exposure did not qualify for hedge accounting treatment. These derivatives are marked to market at the end of each reporting period with gains and losses recorded as general and administrative expenses. At April 27, 2014, January 26, 2014 and October 27, 2013, the fair value of these foreign exchange option contracts was approximately $18 million, $41 million and $17 million, respectively. Applied recorded an unrealized loss of $23 million and an unrealized gain of $24 million during the three months ended April 27, 2014 and January 26, 2014, respectively, related to such contracts. The cash flow impact of this derivative has been classified as operating cash flows in the Consolidated Condensed Statements of Cash Flows. To further mitigate credit exposure in connection with these foreign exchange option contracts, the Company entered into security arrangements with certain counterparties, which require the counterparties to post collateral amounting to the approximate fair value of the derivative contracts. The cash collateral is included in cash and cash equivalents in the Consolidated Condensed Statements of Financial Position, with the corresponding liability included in accounts payable and accrued expenses. | ||||||||||||||||||||||||||
Other than the foreign exchange option contracts discussed in the preceding paragraph, the fair values of other derivative instruments at April 27, 2014 and October 27, 2013 were not material. | ||||||||||||||||||||||||||
The effects of derivative instruments on the Consolidated Condensed Statements of Operations for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||||||||||||
Three Months Ended April 27, 2014 | Three Months Ended April 28, 2013 | |||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount | Effective Portion | Ineffective Portion and Amount | |||||||||||||||||||||||
Excluded from | Excluded from | |||||||||||||||||||||||||
Effectiveness | Effectiveness | |||||||||||||||||||||||||
Testing | Testing | |||||||||||||||||||||||||
Location of Gain or | Gain or | Gain or (Loss) | Gain or (Loss) | Gain or | Gain or (Loss) | Gain or (Loss) | ||||||||||||||||||||
(Loss) Reclassified | (Loss) | Reclassified | Recognized in | (Loss) | Reclassified | Recognized in | ||||||||||||||||||||
from AOCI into | Recognized | from AOCI into | Income | Recognized | from AOCI into | Income | ||||||||||||||||||||
Income | in AOCI | Income | in AOCI | Income | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | Cost of products sold | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | 13 | $ | 6 | $ | — | |||||||||||
Foreign exchange contracts | General and administrative | — | — | — | — | 3 | (1 | ) | ||||||||||||||||||
Total | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | 13 | $ | 9 | $ | (1 | ) | |||||||||||
Six Months Ended April 27, 2014 | Six Months Ended April 28, 2013 | |||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount | Effective Portion | Ineffective Portion and Amount | |||||||||||||||||||||||
Excluded from | Excluded from | |||||||||||||||||||||||||
Effectiveness | Effectiveness | |||||||||||||||||||||||||
Testing | Testing | |||||||||||||||||||||||||
Location of Gain or | Gain or | Gain or (Loss) | Gain or (Loss) | Gain or | Gain or (Loss) | Gain or (Loss) | ||||||||||||||||||||
(Loss) Reclassified | (Loss) | Reclassified | Recognized in | (Loss) | Reclassified | Recognized in | ||||||||||||||||||||
from AOCI into | Recognized | from AOCI into | Income | Recognized | from AOCI into | Income | ||||||||||||||||||||
Income | in AOCI | Income | in AOCI | Income | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | Cost of products sold | $ | 4 | $ | 4 | $ | (2 | ) | $ | 22 | $ | 9 | $ | (1 | ) | |||||||||||
Foreign exchange contracts | General and administrative | — | 3 | (1 | ) | — | 3 | (1 | ) | |||||||||||||||||
Total | $ | 4 | $ | 7 | $ | (3 | ) | $ | 22 | $ | 12 | $ | (2 | ) | ||||||||||||
Amount of Gain or (Loss) | ||||||||||||||||||||||||||
Recognized in Income | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Location of Gain or | April 27, 2014 | April 28, 2013 | April 27, 2014 | April 28, 2013 | ||||||||||||||||||||||
(Loss) Recognized | ||||||||||||||||||||||||||
in Income | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||
Foreign exchange contracts | General and | $ | (26 | ) | $ | 17 | $ | 13 | $ | 29 | ||||||||||||||||
administrative | ||||||||||||||||||||||||||
Total | $ | (26 | ) | $ | 17 | $ | 13 | $ | 29 | |||||||||||||||||
Credit Risk Contingent Features | ||||||||||||||||||||||||||
If Applied’s credit rating were to fall below investment grade, it would be in violation of credit risk contingent provisions of the derivative instruments discussed above, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was immaterial as of April 27, 2014. | ||||||||||||||||||||||||||
Entering into foreign exchange contracts with banks exposes Applied to credit-related losses in the event of the banks’ nonperformance. However, Applied’s exposure is not considered significant. |
Accounts_Receivable_Net
Accounts Receivable, Net | 6 Months Ended |
Apr. 27, 2014 | |
Receivables [Abstract] | ' |
Accounts Receivable, Net | ' |
Accounts Receivable, Net | |
Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable without recourse. Applied, from time to time, also discounts letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. | |
Applied factored accounts receivable of $45 million during the six months ended April 27, 2014 and none during the three months ended April 27, 2014 or the three and six months ended April 28, 2013. Applied discounted $29 million of letters of credit issued by customers during the three and six months ended April 27, 2014 and none during the three and six months ended April 28, 2013. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Condensed Statements of Operations and were not material for all periods presented. | |
Accounts receivable are presented net of allowance for doubtful accounts of $74 million at both April 27, 2014 and October 27, 2013. Applied sells principally to manufacturers within the semiconductor, display and solar industries. While Applied believes that its allowance for doubtful accounts is adequate and represents Applied’s best estimate as of April 27, 2014, Applied continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates regarding collectability. |
Balance_Sheet_Detail
Balance Sheet Detail | 6 Months Ended | |||||||||
Apr. 27, 2014 | ||||||||||
Balance Sheet Detail [Abstract] | ' | |||||||||
Balance Sheet Detail | ' | |||||||||
Balance Sheet Detail | ||||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Inventories | ||||||||||
Customer service spares | $ | 285 | $ | 274 | ||||||
Raw materials | 379 | 325 | ||||||||
Work-in-process | 240 | 283 | ||||||||
Finished goods | 660 | 531 | ||||||||
$ | 1,564 | $ | 1,413 | |||||||
Included in finished goods inventory are $204 million at April 27, 2014, and $136 million at October 27, 2013, of newly-introduced systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1. Finished goods inventory includes $184 million and $177 million of evaluation inventory at April 27, 2014 and October 27, 2013, respectively. | ||||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Other Current Assets | ||||||||||
Deferred income taxes, net | $ | 318 | $ | 323 | ||||||
Prepaid expenses | 164 | 135 | ||||||||
Prepaid income taxes and income taxes receivable | 72 | 178 | ||||||||
Other | 69 | 69 | ||||||||
$ | 623 | $ | 705 | |||||||
Useful Life | April 27, | October 27, | ||||||||
2014 | 2013 | |||||||||
(In years) | (In millions) | |||||||||
Property, Plant and Equipment, Net | ||||||||||
Land and improvements | $ | 167 | $ | 167 | ||||||
Buildings and improvements | 30-Mar | 1,234 | 1,217 | |||||||
Demonstration and manufacturing equipment | 5-Mar | 818 | 792 | |||||||
Furniture, fixtures and other equipment | 15-Mar | 548 | 589 | |||||||
Construction in progress | 46 | 52 | ||||||||
Gross property, plant and equipment | 2,813 | 2,817 | ||||||||
Accumulated depreciation | (1,958 | ) | (1,967 | ) | ||||||
$ | 855 | $ | 850 | |||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Accounts Payable and Accrued Expenses | ||||||||||
Accounts payable | $ | 606 | $ | 582 | ||||||
Compensation and employee benefits | 414 | 417 | ||||||||
Warranty | 109 | 102 | ||||||||
Dividends payable | 122 | 121 | ||||||||
Income taxes payable | 94 | 73 | ||||||||
Other accrued taxes | 40 | 41 | ||||||||
Interest payable | 30 | 30 | ||||||||
Restructuring reserve | 15 | 39 | ||||||||
Other | 233 | 244 | ||||||||
$ | 1,663 | $ | 1,649 | |||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Customer Deposits and Deferred Revenue | ||||||||||
Customer deposits | $ | 152 | $ | 175 | ||||||
Deferred revenue | 847 | 619 | ||||||||
$ | 999 | $ | 794 | |||||||
Applied typically receives deposits on future deliverables from customers in the Display and Energy and Environmental Solutions segments. In certain instances, customer deposits may be received from customers in the Applied Global Services segment. | ||||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Other Liabilities | ||||||||||
Deferred income taxes | $ | 65 | $ | 71 | ||||||
Income taxes payable | 132 | 174 | ||||||||
Defined and postretirement benefit plans | 198 | 193 | ||||||||
Other | 76 | 128 | ||||||||
$ | 471 | $ | 566 | |||||||
Business_Combination
Business Combination | 6 Months Ended |
Apr. 27, 2014 | |
Business Combinations [Abstract] | ' |
Business Combination | ' |
Business Combination | |
On September 24, 2013, Applied and Tokyo Electron Limited (TEL) entered into a Business Combination Agreement, which was amended on February 14, 2014, to effect a strategic combination of their respective businesses into a new combined company. TEL, a Japanese corporation, is a global supplier of semiconductor and flat panel display production equipment, and a provider of technical support and services for semiconductor, flat panel display and photovoltaic panel production equipment. Under the terms of the Business Combination Agreement, TEL shareholders will receive 3.25 shares of the new combined company for every TEL share held. Applied shareholders will receive one share of the new combined company for every Applied share held. Based on the number of shares of Applied common stock and shares of TEL common stock expected to be issued and outstanding immediately prior to the closing of the transaction, it is anticipated that, immediately following the transaction, former Applied stockholders and former TEL shareholders will own approximately 68% and 32%, respectively, of the new combined company. | |
The new combined company will have a new name, dual headquarters in Tokyo and Santa Clara, and dual listing of its shares on the Tokyo Stock Exchange and NASDAQ, and will be incorporated in the Netherlands. The closing of the transaction is subject to customary conditions, including approval by Applied’s and TEL’s shareholders and regulatory approvals. It is expected that the combined company will commence a $3.0 billion stock repurchase program targeted to be executed within 12 months following the closing of the transaction. | |
The Business Combination Agreement contains mutual pre-closing covenants, including the obligation of Applied and TEL to conduct their businesses in the ordinary course consistent in all material respects with past practices. The agreement also contains termination rights for Applied and TEL and provides that upon certain events, such as a termination due to a change in recommendation by the other party or a termination relating to certain tax rulings, a termination fee of $400 million is payable. |
Goodwill_Purchased_Technology_
Goodwill, Purchased Technology and Other Intangible Assets | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill, Purchased Technology and Other Intangible Assets | ' | |||||||||||||||||||||||
Goodwill, Purchased Technology and Other Intangible Assets | ||||||||||||||||||||||||
Goodwill and Purchased Intangible Assets | ||||||||||||||||||||||||
Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. | ||||||||||||||||||||||||
Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. Applied regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. | ||||||||||||||||||||||||
To test goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, Applied then performs the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. Under the two-step goodwill impairment test, Applied would in the first step compare the estimated fair value of each reporting unit to its carrying value. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. If the carrying value of a reporting unit exceeds its fair value, Applied would then perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If Applied determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, Applied would record an impairment charge equal to the difference. Applied’s reporting units are consistent with the reportable segments identified in Note 16, Industry Segment Operations, which are based on the manner in which Applied operates its business and the nature of those operations. | ||||||||||||||||||||||||
The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, Applied will be required to reassess and update its forecasts and estimates used in future impairment analyses. If the results of these future analyses are lower than current estimates, a material impairment charge may result at that time. | ||||||||||||||||||||||||
Details of goodwill and other indefinite-lived intangible assets as of April 27, 2014 and October 27, 2013 were as follows : | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Goodwill | Other | Total | Goodwill | Other | Total | |||||||||||||||||||
Intangible | Intangible | |||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | 2,151 | $ | 142 | $ | 2,293 | $ | 2,151 | $ | 142 | $ | 2,293 | ||||||||||||
Applied Global Services | 1,027 | 6 | 1,033 | 1,027 | — | 1,027 | ||||||||||||||||||
Display | 116 | — | 116 | 116 | — | 116 | ||||||||||||||||||
Carrying amount | $ | 3,294 | $ | 148 | $ | 3,442 | $ | 3,294 | $ | 142 | $ | 3,436 | ||||||||||||
Other intangible assets that are not subject to amortization consist primarily of in-process technology, which will be subject to amortization upon commercialization. The fair value assigned to in-process technology was determined using the income approach taking into account estimates and judgments regarding risks inherent in the development process, including the likelihood of achieving technological success and market acceptance. If an in-process technology project is abandoned, the acquired technology attributable to the project will be written off. | ||||||||||||||||||||||||
A summary of Applied's purchased technology and intangible assets is set forth below: | ||||||||||||||||||||||||
April 27, | October 27, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Purchased technology, net | $ | 671 | $ | 748 | ||||||||||||||||||||
Intangible assets - finite-lived, net | 199 | 213 | ||||||||||||||||||||||
Intangible assets - indefinite-lived | 148 | 142 | ||||||||||||||||||||||
Total | $ | 1,018 | $ | 1,103 | ||||||||||||||||||||
Finite-Lived Purchased Intangible Assets | ||||||||||||||||||||||||
Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. | ||||||||||||||||||||||||
Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. | ||||||||||||||||||||||||
Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure. | ||||||||||||||||||||||||
Details of finite-lived intangible assets were as follows as of April 27, 2014 and October 27, 2013: | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Purchased | Other | Total | Purchased | Other | Total | |||||||||||||||||||
Technology | Intangible | Technology | Intangible | |||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Gross carrying amount: | ||||||||||||||||||||||||
Silicon Systems Group | $ | 1,301 | $ | 252 | $ | 1,553 | $ | 1,301 | $ | 252 | $ | 1,553 | ||||||||||||
Applied Global Services | 28 | 44 | 72 | 28 | 44 | 72 | ||||||||||||||||||
Display | 110 | 33 | 143 | 110 | 33 | 143 | ||||||||||||||||||
Energy and Environmental Solutions | 5 | 15 | 20 | 5 | 15 | 20 | ||||||||||||||||||
Gross carrying amount | $ | 1,444 | $ | 344 | $ | 1,788 | $ | 1,444 | $ | 344 | $ | 1,788 | ||||||||||||
Accumulated amortization: | ||||||||||||||||||||||||
Silicon Systems Group | $ | (637 | ) | $ | (67 | ) | $ | (704 | ) | $ | (562 | ) | $ | (58 | ) | $ | (620 | ) | ||||||
Applied Global Services | (24 | ) | (44 | ) | (68 | ) | (23 | ) | (42 | ) | (65 | ) | ||||||||||||
Display | (110 | ) | (30 | ) | (140 | ) | (110 | ) | (29 | ) | (139 | ) | ||||||||||||
Energy and Environmental Solutions | (2 | ) | (4 | ) | (6 | ) | (1 | ) | (2 | ) | (3 | ) | ||||||||||||
Accumulated amortization | $ | (773 | ) | $ | (145 | ) | $ | (918 | ) | $ | (696 | ) | $ | (131 | ) | $ | (827 | ) | ||||||
Carrying amount | $ | 671 | $ | 199 | $ | 870 | $ | 748 | $ | 213 | $ | 961 | ||||||||||||
Details of amortization expense by segment for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | 42 | $ | 44 | $ | 84 | $ | 88 | ||||||||||||||||
Applied Global Services | 2 | 1 | 3 | 2 | ||||||||||||||||||||
Display | — | 2 | 1 | 4 | ||||||||||||||||||||
Energy and Environmental Solutions | 1 | 7 | 3 | 13 | ||||||||||||||||||||
Total | $ | 45 | $ | 54 | $ | 91 | $ | 107 | ||||||||||||||||
For the three and six months ended April 27, 2014 and April 28, 2013, amortization expense was charged to the following categories: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Cost of products sold | $ | 39 | $ | 43 | $ | 79 | $ | 86 | ||||||||||||||||
Research, development and engineering | — | 1 | — | 1 | ||||||||||||||||||||
Marketing and selling | 6 | 8 | 11 | 5 | ||||||||||||||||||||
General and administrative | — | 2 | 1 | 15 | ||||||||||||||||||||
Total | $ | 45 | $ | 54 | $ | 91 | $ | 107 | ||||||||||||||||
As of April 27, 2014, future estimated amortization expense is expected to be as follows: | ||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
2014 | 89 | |||||||||||||||||||||||
2015 | 175 | |||||||||||||||||||||||
2016 | 169 | |||||||||||||||||||||||
2017 | 165 | |||||||||||||||||||||||
2018 | 163 | |||||||||||||||||||||||
Thereafter | 109 | |||||||||||||||||||||||
Total | $ | 870 | ||||||||||||||||||||||
Borrowing_Facilities_and_LongT
Borrowing Facilities and Long-Term Debt | 6 Months Ended | |||||||||||
Apr. 27, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Borrowing Facilities and Long Term-Debt | ' | |||||||||||
Borrowing Facilities and Long-Term Debt | ||||||||||||
Applied has credit facilities for unsecured borrowings in various currencies of up to $1.6 billion, of which $1.5 billion is comprised of a committed revolving credit agreement with a group of banks that is scheduled to expire in May 2017. This agreement provides for borrowings in United States dollars at interest rates keyed to one of the two rates selected by Applied for each advance and includes financial and other covenants with which Applied was in compliance at April 27, 2014. Remaining credit facilities in the amount of approximately $78 million are with Japanese banks. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. No amounts were outstanding under any of these facilities at both April 27, 2014 and October 27, 2013 and Applied has not utilized these credit facilities. | ||||||||||||
Long-term debt outstanding as of April 27, 2014 and October 27, 2013 was as follows: | ||||||||||||
Principal Amount | ||||||||||||
April 27, | October 27, | Effective | Interest | |||||||||
2014 | 2013 | Interest Rate | Pay Dates | |||||||||
(In millions) | ||||||||||||
2.650% Senior Notes Due 2016 | $ | 400 | $ | 400 | 2.67% | June 15, December 15 | ||||||
7.125% Senior Notes Due 2017 | 200 | 200 | 7.19% | April 15, October 15 | ||||||||
4.300% Senior Notes Due 2021 | 750 | 750 | 4.33% | June 15, December 15 | ||||||||
5.850% Senior Notes Due 2041 | 600 | 600 | 5.88% | June 15, December 15 | ||||||||
1,950 | 1,950 | |||||||||||
Total unamortized discount | (3 | ) | (4 | ) | ||||||||
Total long-term debt | $ | 1,947 | $ | 1,946 | ||||||||
Applied has debt agreements that contain financial and other covenants. These covenants require Applied to maintain certain minimum financial ratios. At April 27, 2014, Applied was in compliance with all such covenants. |
Restructuring_Charges_and_Asse
Restructuring Charges and Asset Impairments | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||||||
Restructuring Charges and Asset Impairments | ' | |||||||||||||||||||||||
Restructuring Charges and Asset Impairments | ||||||||||||||||||||||||
From time to time, Applied initiates restructuring activities to appropriately align its cost structure relative to prevailing economic and industry conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with restructuring actions can include termination benefits and related charges, in addition to facility closure, contract termination and other related activities. | ||||||||||||||||||||||||
The following table summarizes major components of the restructuring and asset impairment charges during the three and six months ended April 27, 2014 and April 28, 2013: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
2012 Global Restructuring Plan | ||||||||||||||||||||||||
Severance and other employee-related costs | $ | — | $ | 4 | $ | 7 | $ | 8 | ||||||||||||||||
2012 EES Restructuring Plan | ||||||||||||||||||||||||
Severance and other employee-related costs1 | — | 2 | — | 2 | ||||||||||||||||||||
Contract cancellation and other costs | — | 2 | — | 2 | ||||||||||||||||||||
Asset impairments | — | 2 | — | 5 | ||||||||||||||||||||
Others | ||||||||||||||||||||||||
Severance and other employee-related costs | — | — | — | 2 | ||||||||||||||||||||
$ | — | $ | 10 | $ | 7 | $ | 19 | |||||||||||||||||
____________________________ | ||||||||||||||||||||||||
1 Includes post-retirement benefit expense which was recorded in accumulated other comprehensive loss. | ||||||||||||||||||||||||
Restructuring and asset impairment charges were recorded as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||||||
Applied Global Services | — | 1 | — | 2 | ||||||||||||||||||||
Energy and Environmental Solutions | — | 5 | — | 8 | ||||||||||||||||||||
Corporate Unallocated | — | 4 | 7 | 8 | ||||||||||||||||||||
Total | $ | — | $ | 10 | $ | 7 | $ | 19 | ||||||||||||||||
2012 Global Restructuring Plan | ||||||||||||||||||||||||
On October 3, 2012, Applied announced a restructuring plan (the 2012 Global Restructuring Plan) to realign its global workforce and enhance its ability to invest for growth. Under this plan, Applied implemented a voluntary retirement program and other workforce reduction actions. The voluntary retirement program was available to certain U.S. employees who met minimum age and length of service requirements, as well as other business-specific criteria. Applied implemented other workforce reduction actions globally across multiple business segments and functions, the extent of which depended on the number of employees who participated in the voluntary retirement program and other considerations. A total of approximately 1,300 positions were affected under this plan. | ||||||||||||||||||||||||
During the three months ended January 26, 2014, Applied recognized $7 million of employee-related costs in connection with the 2012 Global Restructuring Plan. During the three and six months ended April 28, 2013, Applied recognized $4 million and $8 million, respectively, of employee-related costs in connection with the 2012 Global Restructuring Plan. These costs were not allocated to the segments. As of January 26, 2014, principal activities related to this plan were complete. Total costs incurred in implementing this plan were $152 million. | ||||||||||||||||||||||||
Restructuring Reserves | ||||||||||||||||||||||||
Changes in restructuring reserves during the six months ended April 27, 2014 were as follows: | ||||||||||||||||||||||||
2012 Global Restructuring Plan | 2012 EES Restructuring Plan | Others | ||||||||||||||||||||||
Severance and Other Employee-Related Costs | Severance and Other Employee-Related Costs | Contract Cancellation and Other Costs | Severance and Other Employee-Related Costs | Contract Cancellation and Other Costs | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, October 27, 2013 | $ | 26 | $ | 5 | $ | 5 | $ | 2 | $ | 1 | $ | 39 | ||||||||||||
Provision for restructuring reserves | 7 | — | — | — | — | 7 | ||||||||||||||||||
Consumption of reserves | (25 | ) | (2 | ) | (1 | ) | (2 | ) | — | (30 | ) | |||||||||||||
Reclassification of restructuring reserves | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Balance, April 27, 2014 | $ | 8 | 2 | 4 | $ | — | $ | 1 | $ | 15 | ||||||||||||||
Stockholders_Equity_Comprehens
Stockholders' Equity, Comprehensive Income and Share-Based Compensation | 6 Months Ended | |||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Stockholders' Equity, Comprehensive Income and Share-Based Compensation | ' | |||||||||||||||||||
Stockholders’ Equity, Comprehensive Income and Share-Based Compensation | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Changes in the components of AOCI, net of tax, were as follows: | ||||||||||||||||||||
Unrealized Gain on Investments, Net | Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges | Pension Liability | Cumulative Translation Adjustments | Total | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance at October 27, 2013 | $ | 25 | $ | 2 | $ | (72 | ) | $ | 7 | $ | (38 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 5 | 3 | — | (1 | ) | 7 | ||||||||||||||
Amounts reclassified out of AOCI | (5 | ) | (5 | ) | — | — | (10 | ) | ||||||||||||
Other comprehensive loss, net of tax | — | (2 | ) | — | (1 | ) | (3 | ) | ||||||||||||
Balance at April 27, 2014 | $ | 25 | $ | — | $ | (72 | ) | $ | 6 | $ | (41 | ) | ||||||||
The effects on net income of amounts reclassified from AOCI for the three and six months ended April 27, 2014 were not material. | ||||||||||||||||||||
Stock Repurchase Program | ||||||||||||||||||||
On March 5, 2012, Applied's Board of Directors approved a stock repurchase program authorizing up to $3.0 billion in repurchases over the next three years ending in March 2015. Under this authorization, Applied purchases shares of its common stock on the open market. At April 27, 2014, $1.6 billion remained available for future stock repurchases under this repurchase program. | ||||||||||||||||||||
Applied did not repurchase any shares of its common stock during the three and six months ended April 27, 2014. The following table summarizes Applied’s stock repurchases for the three and six months ended April 28, 2013: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 28, | April 28, | |||||||||||||||||||
2013 | 2013 | |||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Shares of common stock repurchased | 8 | 12 | ||||||||||||||||||
Cost of stock repurchased | $ | 100 | $ | 148 | ||||||||||||||||
Average price paid per share | $ | 13.41 | $ | 12.58 | ||||||||||||||||
Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. | ||||||||||||||||||||
Dividends | ||||||||||||||||||||
In March 2014 and December 2013, Applied's Board of Directors declared quarterly cash dividends in the amount of $0.10 per share. Dividends declared during the six months ended April 27, 2014 and April 28, 2013 were $243 million and $227 million, respectively. Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on Applied’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of Applied’s stockholders. | ||||||||||||||||||||
Share-Based Compensation | ||||||||||||||||||||
Applied has a stockholder-approved equity plan, the Employee Stock Incentive Plan, which permits grants to employees of share-based awards, including stock options, restricted stock, restricted stock units, performance shares and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made beginning in March 2012 under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control of Applied. Applied also has two Employee Stock Purchase Plans, one generally for United States employees and a second for employees of international subsidiaries (collectively, ESPP), which enable eligible employees to purchase Applied common stock. | ||||||||||||||||||||
During the three and six months ended April 27, 2014 and April 28, 2013, Applied recognized share-based compensation expense related to stock options, ESPP shares, restricted stock, restricted stock units, performance shares and performance units. Total share-based compensation and related tax benefits were as follows: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Share-based compensation | $ | 42 | $ | 39 | $ | 88 | $ | 81 | ||||||||||||
Tax benefit recognized | $ | 12 | $ | 11 | $ | 25 | $ | 23 | ||||||||||||
The effect of share-based compensation on the results of operations for the three and six months ended April 27, 2014 and April 28, 2013 was as follows: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Cost of products sold | $ | 13 | $ | 12 | $ | 27 | $ | 24 | ||||||||||||
Research, development, and engineering | 16 | 13 | 33 | 25 | ||||||||||||||||
Marketing and selling | 5 | 5 | 11 | 10 | ||||||||||||||||
General and administrative | 8 | 9 | 17 | 17 | ||||||||||||||||
Restructuring charge | — | — | — | 5 | ||||||||||||||||
Total | $ | 42 | $ | 39 | $ | 88 | $ | 81 | ||||||||||||
The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved. | ||||||||||||||||||||
At April 27, 2014, Applied had $290 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under Applied’s ESPP, which will be recognized over a weighted average period of 2.7 years. At April 27, 2014, there were 177 million shares available for grants of share-based awards under the Employee Stock Incentive Plan, and an additional 37 million shares available for issuance under the ESPP. | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||
Applied grants options to purchase, at future dates, shares of its common stock to employees and consultants. The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Options typically vest over three to four years, subject to the grantee’s continued service with Applied through the scheduled vesting date, and expire no later than seven years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. Applied’s employee stock options have characteristics significantly different from those of publicly traded options. | ||||||||||||||||||||
Stock option activity for the six months ended April 27, 2014 was as follows: | ||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||
Average | ||||||||||||||||||||
Exercise | ||||||||||||||||||||
Price | ||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Outstanding at October 27, 2013 | 6 | $ | 9.12 | |||||||||||||||||
Exercised | (3 | ) | $ | 7.98 | ||||||||||||||||
Canceled and forfeited | (1 | ) | $ | 15.4 | ||||||||||||||||
Outstanding at April 27, 2014 | 2 | $ | 10.34 | |||||||||||||||||
Exercisable at April 27, 2014 | 1 | $ | 5.84 | |||||||||||||||||
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units | ||||||||||||||||||||
Restricted stock units are converted into shares of Applied common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of Applied common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance shares and performance units are awards that result in a payment to a grantee, generally in shares of Applied common stock on a one-for-one basis if performance goals and/or other vesting criteria established by the Human Resources and Compensation Committee of Applied's Board of Directors (the Committee) are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance shares and performance units typically vest over four years and vesting is usually subject to the grantee’s continued service with Applied and, in some cases, achievement of specified performance goals. The compensation expense related to the service-based awards is determined using the fair market value of Applied common stock on the date of the grant, and the compensation expense is recognized over the vesting period. | ||||||||||||||||||||
Restricted stock, performance shares and performance units granted to certain executive officers are subject to the achievement of specified performance goals (performance-based awards). These performance-based awards become eligible to vest only if performance goals are achieved and then actually will vest only if the grantee remains employed by Applied through each applicable vesting date. These performance-based awards require the achievement of targeted levels of adjusted annual operating profit margin. For the fiscal 2013 and fiscal 2012 performance-based awards, additional shares become eligible for time-based vesting if Applied achieves certain levels of total shareholder return (TSR) relative to a peer group, comprised of companies in the Standard & Poor's 500 Information Technology Index, measured at the end of a two-year period. | ||||||||||||||||||||
The fair value of these performance-based awards is estimated on the date of grant and assumes that the specified performance goals will be achieved. If the goals are achieved, these awards vest over a specified remaining service period of generally three or four years, provided that the grantee remains employed by Applied through each scheduled vesting date. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. | ||||||||||||||||||||
A summary of the performance-based awards approved by the Committee is presented below: | ||||||||||||||||||||
Number of Performance-Based Awards Granted | Percent of Performance-Based Awards Earned as of April 27, 2014* | |||||||||||||||||||
Fiscal Year Granted | Performance Shares/Performance Units | Shares of | ||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2013 | 3 | — | 0% | |||||||||||||||||
2012 | 3 | 1 | 14% | |||||||||||||||||
2011 | 2 | 0.1 | 100% | |||||||||||||||||
___________________ | ||||||||||||||||||||
* subject to additional time-based vesting requirements | ||||||||||||||||||||
A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the six months ended April 27, 2014 is presented below: | ||||||||||||||||||||
Shares | Weighted | Weighted | ||||||||||||||||||
Average | Average | |||||||||||||||||||
Grant Date | Remaining | |||||||||||||||||||
Fair Value | Contractual Term | |||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2013 | 38 | $ | 11.11 | 2.4 years | ||||||||||||||||
Granted | 9 | $ | 16.34 | |||||||||||||||||
Vested | (11 | ) | $ | 11.03 | ||||||||||||||||
Canceled | (2 | ) | $ | 11.43 | ||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at April 27, 2014 | 34 | $ | 12.27 | 2.7 years | ||||||||||||||||
At April 27, 2014, 2 million additional performance-based awards could be earned upon certain levels of achievement of Applied's TSR relative to a peer group at a future date. | ||||||||||||||||||||
Employee Stock Purchase Plans | ||||||||||||||||||||
Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Based on the Black-Scholes option pricing model, the weighted average estimated fair value of purchase rights under the ESPP was $4.07 and $2.90 for the three and six months ended April 27, 2014 and April 28, 2013, respectively. The number of shares issued under the ESPP during the three and six months ended April 27, 2014 and April 28, 2013 was 3 million. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table: | ||||||||||||||||||||
Three and Six Months Ended | ||||||||||||||||||||
27-Apr-14 | 28-Apr-13 | |||||||||||||||||||
ESPP: | ||||||||||||||||||||
Dividend yield | 2.14% | 2.94% | ||||||||||||||||||
Expected volatility | 25.30% | 24.30% | ||||||||||||||||||
Risk-free interest rate | 0.08% | 0.12% | ||||||||||||||||||
Expected life (in years) | 0.5 | 0.5 |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
Employee Benefit Plans | ||||||||||||||||
Applied sponsors a number of employee benefit plans, including defined benefit plans of certain foreign subsidiaries, and a plan that provides certain medical and vision benefits to eligible retirees. A summary of the components of net periodic benefit costs of these defined and postretirement benefit plans for the three and six months ended April 27, 2014 and April 28, 2013 is presented below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Service cost | $ | 4 | $ | 5 | $ | 8 | $ | 10 | ||||||||
Interest cost | 4 | 4 | 8 | 8 | ||||||||||||
Expected return on plan assets | (3 | ) | (3 | ) | (6 | ) | (6 | ) | ||||||||
Amortization of actuarial loss | 1 | 1 | 2 | 3 | ||||||||||||
Net periodic benefit cost | $ | 6 | $ | 7 | $ | 12 | $ | 15 | ||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Apr. 27, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Applied’s effective tax rates for the second quarters of fiscal 2014 and 2013 were 28.2 percent and negative 43.3 percent, respectively. Applied’s effective tax rates for the first six months of fiscal 2014 and 2013 were 24.3 percent and negative 31.9 percent, respectively. The effective tax rates for the second quarter and first six months of fiscal 2013 were negative primarily due to a goodwill impairment charge recorded in the second quarter of fiscal 2013 that was not deductible. | |
As a result of agreements with taxing authorities during the second quarter, existing liabilities for unrecognized tax benefits were reduced by $127 million with a corresponding increase in taxes payable. The reduction did not have a material impact on Applied’s effective tax rate. |
Warranty_Guarantees_and_Contin
Warranty, Guarantees and Contingencies | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Warranty, Guarantees and Contingencies | ' | |||||||||||||||
Warranty, Guarantees and Contingencies | ||||||||||||||||
Warranty | ||||||||||||||||
Changes in the warranty reserves during the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 106 | $ | 109 | $ | 102 | $ | 119 | ||||||||
Provisions for warranty | 29 | 26 | 56 | 49 | ||||||||||||
Consumption of reserves | (26 | ) | (31 | ) | (49 | ) | (64 | ) | ||||||||
Ending balance | $ | 109 | $ | 104 | $ | 109 | $ | 104 | ||||||||
Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales. | ||||||||||||||||
Guarantees | ||||||||||||||||
In the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either Applied or its subsidiaries. As of April 27, 2014, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $51 million. Applied has not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements. | ||||||||||||||||
Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of April 27, 2014, Applied Materials, Inc. has provided parent guarantees to banks for approximately $102 million to cover these arrangements. | ||||||||||||||||
Legal Matters | ||||||||||||||||
Korea Criminal Proceedings | ||||||||||||||||
In 2010, the Seoul Eastern District Court began hearings on indictments brought by the Seoul Prosecutor's Office for the Eastern District of Korea (the Prosecutor's Office) alleging that employees of several companies improperly received and used confidential information belonging to Samsung Electronics Co., Ltd. (Samsung), a major Applied customer based in Korea. The individuals charged included the former head of Applied Materials Korea (AMK), who at the time of the indictment was a vice president of Applied Materials, Inc., and certain other AMK employees. Neither Applied nor any of its subsidiaries was named as a party to the proceedings. Hearings on these matters concluded in November 2012 and the Court issued its decision on February 7, 2013. As part of the ruling, nine AMK employees (including the former head of AMK) were acquitted of all charges, while one AMK employee was found guilty on some of the charges and received a suspended jail sentence. The Prosecutor's Office and various individuals filed notices of appeal, and hearings are underway in the appeals. A ruling is expected later in 2014. | ||||||||||||||||
Other Matters | ||||||||||||||||
From time to time, Applied receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by Applied in connection with claims made against them. In addition, from time to time, Applied receives notification from third parties claiming that Applied may be or is infringing or misusing their intellectual property or other rights. Applied also is subject to various other legal proceedings and claims, both asserted and unasserted, that arise in the ordinary course of business. | ||||||||||||||||
Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, Applied does not believe that any will have a material effect on its consolidated financial condition or results of operations. |
Industry_Segment_Operations
Industry Segment Operations | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Industry Segment Operations | ' | |||||||||||||||
Industry Segment Operations | ||||||||||||||||
Applied’s four reportable segments are: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions. As defined in the accounting literature, Applied’s 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 Applied’s management organization structure as of April 27, 2014 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’s reportable segments. | ||||||||||||||||
Each reportable segment is separately managed and has separate financial results that are reviewed by Applied’s 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 Applied’s chief operating decision-maker. | ||||||||||||||||
Applied derives the segment results directly from its internal management reporting system. The accounting policies Applied uses 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. Applied does not allocate to its reportable segments certain operating expenses that it manages separately at the corporate level, which 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, Applied does not allocate to its reportable segments restructuring and asset impairment charges and any associated adjustments related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income 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. | ||||||||||||||||
The Silicon Systems Group 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 includes technically differentiated products and services to improve operating efficiency, reduce operating costs and lessen the environmental impact of semiconductor, display and solar customers’ factories. Applied Global Services’ products consist of spares, services, certain earlier generation products, remanufactured equipment, and products that have reached a particular stage in the product lifecycle. Customer demand for these products and services is fulfilled through a global distribution system with trained service engineers located in close proximity to customer sites. | ||||||||||||||||
The Display segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for TVs, personal computers, tablets, smart phones, and other consumer-oriented devices. | ||||||||||||||||
The Energy and Environmental Solutions segment includes products for fabricating solar photovoltaic cells and modules, as well as high throughput roll-to-roll deposition equipment for flexible electronics and other applications. | ||||||||||||||||
Net sales and operating income (loss) for each reportable segment for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Net Sales | Operating | Net Sales | Operating | |||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||
(In millions) | ||||||||||||||||
April 27, 2014: | ||||||||||||||||
Silicon Systems Group | $ | 1,584 | $ | 391 | $ | 3,068 | $ | 705 | ||||||||
Applied Global Services | 534 | 148 | 1,041 | 273 | ||||||||||||
Display | 147 | 26 | 306 | 52 | ||||||||||||
Energy and Environmental Solutions | 88 | 5 | 128 | (6 | ) | |||||||||||
Total Segment | $ | 2,353 | $ | 570 | $ | 4,543 | $ | 1,024 | ||||||||
April 28, 2013: | ||||||||||||||||
Silicon Systems Group | $ | 1,291 | $ | 283 | $ | 2,260 | $ | 417 | ||||||||
Applied Global Services | 517 | 118 | 988 | 207 | ||||||||||||
Display | 127 | 19 | 214 | 22 | ||||||||||||
Energy and Environmental Solutions | 38 | (322 | ) | 84 | (376 | ) | ||||||||||
Total Segment | $ | 1,973 | $ | 98 | $ | 3,546 | $ | 270 | ||||||||
Operating results for the six months ended April 27, 2014, and the three and six months ended April 28, 2013, included restructuring charges and asset impairments as discussed in detail in Note 11, Restructuring Charges and Asset Impairments. | ||||||||||||||||
Reconciliations of total segment operating results to Applied consolidated totals for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Total segment operating income | $ | 570 | $ | 98 | $ | 1,024 | $ | 270 | ||||||||
Corporate and unallocated costs | (183 | ) | (162 | ) | (300 | ) | (291 | ) | ||||||||
Restructuring charges and asset impairments | — | (4 | ) | (7 | ) | (8 | ) | |||||||||
Income (loss) from operations | $ | 387 | $ | (68 | ) | $ | 717 | $ | (29 | ) | ||||||
The following customers accounted for at least 10 percent of Applied’s net sales for the six months ended April 27, 2014, which were for products in multiple reportable segments. | ||||||||||||||||
Percentage of Net Sales | ||||||||||||||||
Taiwan Semiconductor Manufacturing Company Limited | 25 | % | ||||||||||||||
Samsung Electronics Co., Ltd. | 17 | % |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended | |
Apr. 27, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 27, 2013 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 27, 2013 (2013 Form 10-K). Applied’s results of operations for the three and six months ended April 27, 2014 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2014 and 2013 each contain 52 weeks, and the first half of fiscal 2014 and 2013 each contained 26 weeks. | ||
Certain prior year amounts have been reclassified to conform to current year presentation. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Applied recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is probable. Applied’s shipping terms are customarily FOB Applied shipping point or equivalent terms. Applied’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment or delivery, Applied recognizes revenue upon passage of title for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer technical acceptance; (3) for transactions where legal title does not pass at shipment or delivery, revenue is recognized when legal title passes to the customer, which is generally at customer technical acceptance; and (4) for arrangements containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. In cases where Applied has sold products that have been demonstrated to meet product specifications prior to shipment, Applied believes that at the time of delivery, it has an enforceable claim to amounts recognized as revenue. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided. | ||
When a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables, and to the software deliverables as a group, using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue. | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In April 2014, the Financial Accounting Standards Board (FASB) issued authoritative guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The authoritative guidance becomes effective prospectively for Applied in the first quarter of fiscal 2016. Early adoption is permitted, but only for disposals that have not been reported in financial statements previously issued. | ||
In July 2013, the FASB issued authoritative guidance that will require an unrecognized tax benefit to be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, with certain exceptions. The authoritative guidance becomes effective for Applied in the first quarter of fiscal 2015, with early adoption permitted. The guidance is not expected to have an impact on Applied's financial position or results of operations. | ||
Investments | ' | |
Applied regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss is considered to be temporary, or other-than-temporary and therefore impaired, include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that Applied will be required to sell the security prior to recovery. Generally, the contractual terms of investments in marketable securities do not permit settlement at prices less than the amortized cost of the investments. | ||
Fair Value Measurements | ' | |
Applied’s financial assets are measured and recorded at fair value, except for equity investments in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred. Applied’s nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment when events or circumstances indicate that an other-than-temporary decline in value may have occurred. | ||
Fair Value Hierarchy | ||
Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities; | |
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | |
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
Applied’s investments are comprised primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. | ||
Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. As of April 27, 2014, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. | ||
Cost Method Investments | ' | |
Equity investments in privately-held companies are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. If Applied determines that an other-than-temporary impairment has occurred, the investment will be written down to its estimated fair value based on available information, such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, euro, Israeli shekel, Taiwanese dollar and Swiss franc. Applied uses derivative financial instruments, such as forward exchange contracts and currency option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically up to the next 24 months. The purpose of Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied does not use derivative financial instruments for trading or speculative purposes. | ||
Derivative instruments and hedging activities, including foreign currency exchange contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, are recognized currently in earnings. All of Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. | ||
Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of accumulated other comprehensive income or loss (AOCI) in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to derivative instruments included in AOCI at April 27, 2014 is expected to be reclassified into earnings within 12 months. Changes in the fair value of currency forward exchange and option contracts due to changes in time value are excluded from the assessment of effectiveness. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in general and administrative expenses. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was not significant for the three and six months ended April 27, 2014 and April 28, 2013. | ||
Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. | ||
Goodwill and Purchased Intangible Assets | ' | |
Goodwill and Purchased Intangible Assets | ||
Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. | ||
Goodwill and purchased intangible assets with indefinite useful lives are not amortized, but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. Applied regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. | ||
To test goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, Applied then performs the two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. Under the two-step goodwill impairment test, Applied would in the first step compare the estimated fair value of each reporting unit to its carrying value. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. If the carrying value of a reporting unit exceeds its fair value, Applied would then perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. If Applied determines that the carrying value of a reporting unit’s goodwill exceeds its implied fair value, Applied would record an impairment charge equal to the difference. Applied’s reporting units are consistent with the reportable segments identified in Note 16, Industry Segment Operations, which are based on the manner in which Applied operates its business and the nature of those operations. | ||
Finite-Lived Purchased Intangible Assets | ' | |
Finite-Lived Purchased Intangible Assets | ||
Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. | ||
Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. | ||
Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure. | ||
Treasury Stock | ' | |
Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. | ||
Share-based Awards | ' | |
The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved. | ||
Warranty | ' | |
Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales. |
Earnings_loss_Per_Share_Tables
Earnings (loss) Per Share (Tables) | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Elements used in computing both basic and diluted net earnings per share | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 262 | $ | (129 | ) | $ | 515 | $ | (95 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding | 1,216 | 1,203 | 1,211 | 1,200 | ||||||||||||
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares | 13 | — | 16 | — | ||||||||||||
Denominator for diluted earnings (loss) per share | 1,229 | 1,203 | 1,227 | 1,200 | ||||||||||||
Basic earnings (loss) per share | $ | 0.22 | $ | (0.11 | ) | $ | 0.43 | $ | (0.08 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.21 | $ | (0.11 | ) | $ | 0.42 | $ | (0.08 | ) | ||||||
Potentially dilutive securities | — | 50 | — | 50 | ||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Cash, Cash Equivalents, and Investments [Abstract] | ' | |||||||||||||||
Summary of cash, cash equivalents and investments | ' | |||||||||||||||
The following tables summarize Applied’s cash, cash equivalents and investments by security type: | ||||||||||||||||
April 27, 2014 | Cost | Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In millions) | ||||||||||||||||
Cash | $ | 691 | $ | — | $ | — | $ | 691 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | 1,762 | — | — | 1,762 | ||||||||||||
Total Cash equivalents | 1,762 | — | — | 1,762 | ||||||||||||
Total Cash and Cash equivalents | $ | 2,453 | $ | — | $ | — | $ | 2,453 | ||||||||
Short-term and long-term investments: | ||||||||||||||||
U.S. Treasury and agency securities | $ | 68 | $ | — | $ | — | $ | 68 | ||||||||
Non-U.S. government securities* | 15 | — | — | 15 | ||||||||||||
Municipal securities | 378 | 2 | — | 380 | ||||||||||||
Commercial paper, corporate bonds and medium-term notes | 151 | 1 | — | 152 | ||||||||||||
Asset-backed and mortgage-backed securities | 235 | 1 | 2 | 234 | ||||||||||||
Total fixed income securities | 847 | 4 | 2 | 849 | ||||||||||||
Publicly traded equity securities | 22 | 34 | — | 56 | ||||||||||||
Equity investments in privately-held companies | 77 | — | — | 77 | ||||||||||||
Total short-term and long-term investments | $ | 946 | $ | 38 | $ | 2 | $ | 982 | ||||||||
Total Cash, Cash equivalents and Investments | $ | 3,399 | $ | 38 | $ | 2 | $ | 3,435 | ||||||||
_________________________ | ||||||||||||||||
* Includes agency debt securities guaranteed by non-U.S. governments, which consist of Germany and Canada. | ||||||||||||||||
October 27, 2013 | Cost | Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In millions) | ||||||||||||||||
Cash | $ | 611 | $ | — | $ | — | $ | 611 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | 1,095 | — | — | 1,095 | ||||||||||||
Municipal securities | 5 | — | — | 5 | ||||||||||||
Total Cash equivalents | 1,100 | — | — | 1,100 | ||||||||||||
Total Cash and Cash equivalents | $ | 1,711 | $ | — | $ | — | $ | 1,711 | ||||||||
Short-term and long-term investments: | ||||||||||||||||
U.S. Treasury and agency securities | $ | 170 | $ | — | $ | — | $ | 170 | ||||||||
Non-U.S. government securities | 11 | — | — | 11 | ||||||||||||
Municipal securities | 379 | 2 | — | 381 | ||||||||||||
Commercial paper, corporate bonds and medium-term notes | 218 | 2 | 1 | 219 | ||||||||||||
Asset-backed and mortgage-backed securities | 268 | 2 | 2 | 268 | ||||||||||||
Total fixed income securities | 1,046 | 6 | 3 | 1,049 | ||||||||||||
Publicly traded equity securities | 27 | 33 | — | 60 | ||||||||||||
Equity investments in privately-held companies | 76 | — | — | 76 | ||||||||||||
Total short-term and long-term investments | $ | 1,149 | $ | 39 | $ | 3 | $ | 1,185 | ||||||||
Total Cash, Cash equivalents and Investments | $ | 2,860 | $ | 39 | $ | 3 | $ | 2,896 | ||||||||
Contractual maturities of investments | ' | |||||||||||||||
The following table summarizes the contractual maturities of Applied’s investments at April 27, 2014: | ||||||||||||||||
Cost | Estimated | |||||||||||||||
Fair Value | ||||||||||||||||
(In millions) | ||||||||||||||||
Due in one year or less | $ | 124 | $ | 124 | ||||||||||||
Due after one through five years | 488 | 490 | ||||||||||||||
No single maturity date** | 334 | 368 | ||||||||||||||
$ | 946 | $ | 982 | |||||||||||||
_________________________ | ||||||||||||||||
** Securities with no single maturity date include publicly-traded and privately-held equity securities, and asset-backed and mortgage-backed securities. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis | ' | |||||||||||||||||||||||
Financial assets (excluding cash balances) measured at fair value on a recurring basis are summarized below as of April 27, 2014 and October 27, 2013: | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Money market funds | $ | 1,762 | $ | — | $ | 1,762 | $ | 1,095 | $ | — | $ | 1,095 | ||||||||||||
U.S. Treasury and agency securities | 32 | 36 | 68 | 66 | 104 | 170 | ||||||||||||||||||
Non-U.S. government securities | — | 15 | 15 | — | 11 | 11 | ||||||||||||||||||
Municipal securities | — | 380 | 380 | — | 386 | 386 | ||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | — | 152 | 152 | — | 219 | 219 | ||||||||||||||||||
Asset-backed and mortgage-backed securities | — | 234 | 234 | — | 268 | 268 | ||||||||||||||||||
Publicly traded equity securities | 56 | — | 56 | 60 | — | 60 | ||||||||||||||||||
Foreign exchange derivative assets | — | 19 | 19 | — | 20 | 20 | ||||||||||||||||||
Total | $ | 1,850 | $ | 836 | $ | 2,686 | $ | 1,221 | $ | 1,008 | $ | 2,229 | ||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Effect of derivative instruments on the consolidated statement of operations | ' | |||||||||||||||||||||||||
The effects of derivative instruments on the Consolidated Condensed Statements of Operations for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||||||||||||
Three Months Ended April 27, 2014 | Three Months Ended April 28, 2013 | |||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount | Effective Portion | Ineffective Portion and Amount | |||||||||||||||||||||||
Excluded from | Excluded from | |||||||||||||||||||||||||
Effectiveness | Effectiveness | |||||||||||||||||||||||||
Testing | Testing | |||||||||||||||||||||||||
Location of Gain or | Gain or | Gain or (Loss) | Gain or (Loss) | Gain or | Gain or (Loss) | Gain or (Loss) | ||||||||||||||||||||
(Loss) Reclassified | (Loss) | Reclassified | Recognized in | (Loss) | Reclassified | Recognized in | ||||||||||||||||||||
from AOCI into | Recognized | from AOCI into | Income | Recognized | from AOCI into | Income | ||||||||||||||||||||
Income | in AOCI | Income | in AOCI | Income | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | Cost of products sold | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | 13 | $ | 6 | $ | — | |||||||||||
Foreign exchange contracts | General and administrative | — | — | — | — | 3 | (1 | ) | ||||||||||||||||||
Total | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | 13 | $ | 9 | $ | (1 | ) | |||||||||||
Six Months Ended April 27, 2014 | Six Months Ended April 28, 2013 | |||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount | Effective Portion | Ineffective Portion and Amount | |||||||||||||||||||||||
Excluded from | Excluded from | |||||||||||||||||||||||||
Effectiveness | Effectiveness | |||||||||||||||||||||||||
Testing | Testing | |||||||||||||||||||||||||
Location of Gain or | Gain or | Gain or (Loss) | Gain or (Loss) | Gain or | Gain or (Loss) | Gain or (Loss) | ||||||||||||||||||||
(Loss) Reclassified | (Loss) | Reclassified | Recognized in | (Loss) | Reclassified | Recognized in | ||||||||||||||||||||
from AOCI into | Recognized | from AOCI into | Income | Recognized | from AOCI into | Income | ||||||||||||||||||||
Income | in AOCI | Income | in AOCI | Income | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||
Foreign exchange contracts | Cost of products sold | $ | 4 | $ | 4 | $ | (2 | ) | $ | 22 | $ | 9 | $ | (1 | ) | |||||||||||
Foreign exchange contracts | General and administrative | — | 3 | (1 | ) | — | 3 | (1 | ) | |||||||||||||||||
Total | $ | 4 | $ | 7 | $ | (3 | ) | $ | 22 | $ | 12 | $ | (2 | ) | ||||||||||||
Derivatives not designated as hedging instruments in statement of operations | ' | |||||||||||||||||||||||||
Amount of Gain or (Loss) | ||||||||||||||||||||||||||
Recognized in Income | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Location of Gain or | April 27, 2014 | April 28, 2013 | April 27, 2014 | April 28, 2013 | ||||||||||||||||||||||
(Loss) Recognized | ||||||||||||||||||||||||||
in Income | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||
Foreign exchange contracts | General and | $ | (26 | ) | $ | 17 | $ | 13 | $ | 29 | ||||||||||||||||
administrative | ||||||||||||||||||||||||||
Total | $ | (26 | ) | $ | 17 | $ | 13 | $ | 29 | |||||||||||||||||
Balance_Sheet_Detail_Tables
Balance Sheet Detail (Tables) | 6 Months Ended | |||||||||
Apr. 27, 2014 | ||||||||||
Balance Sheet Detail [Abstract] | ' | |||||||||
Inventories | ' | |||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Inventories | ||||||||||
Customer service spares | $ | 285 | $ | 274 | ||||||
Raw materials | 379 | 325 | ||||||||
Work-in-process | 240 | 283 | ||||||||
Finished goods | 660 | 531 | ||||||||
$ | 1,564 | $ | 1,413 | |||||||
Other current assets | ' | |||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Other Current Assets | ||||||||||
Deferred income taxes, net | $ | 318 | $ | 323 | ||||||
Prepaid expenses | 164 | 135 | ||||||||
Prepaid income taxes and income taxes receivable | 72 | 178 | ||||||||
Other | 69 | 69 | ||||||||
$ | 623 | $ | 705 | |||||||
Property, plant and equipment, net | ' | |||||||||
Useful Life | April 27, | October 27, | ||||||||
2014 | 2013 | |||||||||
(In years) | (In millions) | |||||||||
Property, Plant and Equipment, Net | ||||||||||
Land and improvements | $ | 167 | $ | 167 | ||||||
Buildings and improvements | 30-Mar | 1,234 | 1,217 | |||||||
Demonstration and manufacturing equipment | 5-Mar | 818 | 792 | |||||||
Furniture, fixtures and other equipment | 15-Mar | 548 | 589 | |||||||
Construction in progress | 46 | 52 | ||||||||
Gross property, plant and equipment | 2,813 | 2,817 | ||||||||
Accumulated depreciation | (1,958 | ) | (1,967 | ) | ||||||
$ | 855 | $ | 850 | |||||||
Accounts payable and accrued expenses | ' | |||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Accounts Payable and Accrued Expenses | ||||||||||
Accounts payable | $ | 606 | $ | 582 | ||||||
Compensation and employee benefits | 414 | 417 | ||||||||
Warranty | 109 | 102 | ||||||||
Dividends payable | 122 | 121 | ||||||||
Income taxes payable | 94 | 73 | ||||||||
Other accrued taxes | 40 | 41 | ||||||||
Interest payable | 30 | 30 | ||||||||
Restructuring reserve | 15 | 39 | ||||||||
Other | 233 | 244 | ||||||||
$ | 1,663 | $ | 1,649 | |||||||
Customer deposits and deferred revenue | ' | |||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Customer Deposits and Deferred Revenue | ||||||||||
Customer deposits | $ | 152 | $ | 175 | ||||||
Deferred revenue | 847 | 619 | ||||||||
$ | 999 | $ | 794 | |||||||
Other liabilities | ' | |||||||||
April 27, | October 27, | |||||||||
2014 | 2013 | |||||||||
(In millions) | ||||||||||
Other Liabilities | ||||||||||
Deferred income taxes | $ | 65 | $ | 71 | ||||||
Income taxes payable | 132 | 174 | ||||||||
Defined and postretirement benefit plans | 198 | 193 | ||||||||
Other | 76 | 128 | ||||||||
$ | 471 | $ | 566 | |||||||
Goodwill_Purchased_Technology_1
Goodwill, Purchased Technology and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Indefinite-lived intangible assets | ' | |||||||||||||||||||||||
Details of goodwill and other indefinite-lived intangible assets as of April 27, 2014 and October 27, 2013 were as follows : | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Goodwill | Other | Total | Goodwill | Other | Total | |||||||||||||||||||
Intangible | Intangible | |||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | 2,151 | $ | 142 | $ | 2,293 | $ | 2,151 | $ | 142 | $ | 2,293 | ||||||||||||
Applied Global Services | 1,027 | 6 | 1,033 | 1,027 | — | 1,027 | ||||||||||||||||||
Display | 116 | — | 116 | 116 | — | 116 | ||||||||||||||||||
Carrying amount | $ | 3,294 | $ | 148 | $ | 3,442 | $ | 3,294 | $ | 142 | $ | 3,436 | ||||||||||||
Summary of purchased technology and intangible assets | ' | |||||||||||||||||||||||
A summary of Applied's purchased technology and intangible assets is set forth below: | ||||||||||||||||||||||||
April 27, | October 27, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Purchased technology, net | $ | 671 | $ | 748 | ||||||||||||||||||||
Intangible assets - finite-lived, net | 199 | 213 | ||||||||||||||||||||||
Intangible assets - indefinite-lived | 148 | 142 | ||||||||||||||||||||||
Total | $ | 1,018 | $ | 1,103 | ||||||||||||||||||||
Finite-lived intangible assets | ' | |||||||||||||||||||||||
Details of finite-lived intangible assets were as follows as of April 27, 2014 and October 27, 2013: | ||||||||||||||||||||||||
April 27, 2014 | October 27, 2013 | |||||||||||||||||||||||
Purchased | Other | Total | Purchased | Other | Total | |||||||||||||||||||
Technology | Intangible | Technology | Intangible | |||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Gross carrying amount: | ||||||||||||||||||||||||
Silicon Systems Group | $ | 1,301 | $ | 252 | $ | 1,553 | $ | 1,301 | $ | 252 | $ | 1,553 | ||||||||||||
Applied Global Services | 28 | 44 | 72 | 28 | 44 | 72 | ||||||||||||||||||
Display | 110 | 33 | 143 | 110 | 33 | 143 | ||||||||||||||||||
Energy and Environmental Solutions | 5 | 15 | 20 | 5 | 15 | 20 | ||||||||||||||||||
Gross carrying amount | $ | 1,444 | $ | 344 | $ | 1,788 | $ | 1,444 | $ | 344 | $ | 1,788 | ||||||||||||
Accumulated amortization: | ||||||||||||||||||||||||
Silicon Systems Group | $ | (637 | ) | $ | (67 | ) | $ | (704 | ) | $ | (562 | ) | $ | (58 | ) | $ | (620 | ) | ||||||
Applied Global Services | (24 | ) | (44 | ) | (68 | ) | (23 | ) | (42 | ) | (65 | ) | ||||||||||||
Display | (110 | ) | (30 | ) | (140 | ) | (110 | ) | (29 | ) | (139 | ) | ||||||||||||
Energy and Environmental Solutions | (2 | ) | (4 | ) | (6 | ) | (1 | ) | (2 | ) | (3 | ) | ||||||||||||
Accumulated amortization | $ | (773 | ) | $ | (145 | ) | $ | (918 | ) | $ | (696 | ) | $ | (131 | ) | $ | (827 | ) | ||||||
Carrying amount | $ | 671 | $ | 199 | $ | 870 | $ | 748 | $ | 213 | $ | 961 | ||||||||||||
Summary of amortization expense | ' | |||||||||||||||||||||||
Details of amortization expense by segment for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | 42 | $ | 44 | $ | 84 | $ | 88 | ||||||||||||||||
Applied Global Services | 2 | 1 | 3 | 2 | ||||||||||||||||||||
Display | — | 2 | 1 | 4 | ||||||||||||||||||||
Energy and Environmental Solutions | 1 | 7 | 3 | 13 | ||||||||||||||||||||
Total | $ | 45 | $ | 54 | $ | 91 | $ | 107 | ||||||||||||||||
Schedule of categories amortization expense was charged to | ' | |||||||||||||||||||||||
For the three and six months ended April 27, 2014 and April 28, 2013, amortization expense was charged to the following categories: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Cost of products sold | $ | 39 | $ | 43 | $ | 79 | $ | 86 | ||||||||||||||||
Research, development and engineering | — | 1 | — | 1 | ||||||||||||||||||||
Marketing and selling | 6 | 8 | 11 | 5 | ||||||||||||||||||||
General and administrative | — | 2 | 1 | 15 | ||||||||||||||||||||
Total | $ | 45 | $ | 54 | $ | 91 | $ | 107 | ||||||||||||||||
Future estimated amortization expense | ' | |||||||||||||||||||||||
As of April 27, 2014, future estimated amortization expense is expected to be as follows: | ||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
2014 | 89 | |||||||||||||||||||||||
2015 | 175 | |||||||||||||||||||||||
2016 | 169 | |||||||||||||||||||||||
2017 | 165 | |||||||||||||||||||||||
2018 | 163 | |||||||||||||||||||||||
Thereafter | 109 | |||||||||||||||||||||||
Total | $ | 870 | ||||||||||||||||||||||
Borrowing_Facilities_and_LongT1
Borrowing Facilities and Long-Term Debt (Tables) | 6 Months Ended | |||||||||||
Apr. 27, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Long Term Debt Outstanding | ' | |||||||||||
Long-term debt outstanding as of April 27, 2014 and October 27, 2013 was as follows: | ||||||||||||
Principal Amount | ||||||||||||
April 27, | October 27, | Effective | Interest | |||||||||
2014 | 2013 | Interest Rate | Pay Dates | |||||||||
(In millions) | ||||||||||||
2.650% Senior Notes Due 2016 | $ | 400 | $ | 400 | 2.67% | June 15, December 15 | ||||||
7.125% Senior Notes Due 2017 | 200 | 200 | 7.19% | April 15, October 15 | ||||||||
4.300% Senior Notes Due 2021 | 750 | 750 | 4.33% | June 15, December 15 | ||||||||
5.850% Senior Notes Due 2041 | 600 | 600 | 5.88% | June 15, December 15 | ||||||||
1,950 | 1,950 | |||||||||||
Total unamortized discount | (3 | ) | (4 | ) | ||||||||
Total long-term debt | $ | 1,947 | $ | 1,946 | ||||||||
Restructuring_Charges_and_Asse1
Restructuring Charges and Asset Impairments (Tables) | 6 Months Ended | |||||||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||||||||||
Components of the restructuring and asset impairment | ' | |||||||||||||||||||||||
The following table summarizes major components of the restructuring and asset impairment charges during the three and six months ended April 27, 2014 and April 28, 2013: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
2012 Global Restructuring Plan | ||||||||||||||||||||||||
Severance and other employee-related costs | $ | — | $ | 4 | $ | 7 | $ | 8 | ||||||||||||||||
2012 EES Restructuring Plan | ||||||||||||||||||||||||
Severance and other employee-related costs1 | — | 2 | — | 2 | ||||||||||||||||||||
Contract cancellation and other costs | — | 2 | — | 2 | ||||||||||||||||||||
Asset impairments | — | 2 | — | 5 | ||||||||||||||||||||
Others | ||||||||||||||||||||||||
Severance and other employee-related costs | — | — | — | 2 | ||||||||||||||||||||
$ | — | $ | 10 | $ | 7 | $ | 19 | |||||||||||||||||
____________________________ | ||||||||||||||||||||||||
1 Includes post-retirement benefit expense which was recorded in accumulated other comprehensive loss. | ||||||||||||||||||||||||
Restructuring and asset impairment charges were recorded as follows: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Silicon Systems Group | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||||||
Applied Global Services | — | 1 | — | 2 | ||||||||||||||||||||
Energy and Environmental Solutions | — | 5 | — | 8 | ||||||||||||||||||||
Corporate Unallocated | — | 4 | 7 | 8 | ||||||||||||||||||||
Total | $ | — | $ | 10 | $ | 7 | $ | 19 | ||||||||||||||||
Changes in restructuring reserves related to other restructuring plans and facilities realignment | ' | |||||||||||||||||||||||
Changes in restructuring reserves during the six months ended April 27, 2014 were as follows: | ||||||||||||||||||||||||
2012 Global Restructuring Plan | 2012 EES Restructuring Plan | Others | ||||||||||||||||||||||
Severance and Other Employee-Related Costs | Severance and Other Employee-Related Costs | Contract Cancellation and Other Costs | Severance and Other Employee-Related Costs | Contract Cancellation and Other Costs | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Balance, October 27, 2013 | $ | 26 | $ | 5 | $ | 5 | $ | 2 | $ | 1 | $ | 39 | ||||||||||||
Provision for restructuring reserves | 7 | — | — | — | — | 7 | ||||||||||||||||||
Consumption of reserves | (25 | ) | (2 | ) | (1 | ) | (2 | ) | — | (30 | ) | |||||||||||||
Reclassification of restructuring reserves | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Balance, April 27, 2014 | $ | 8 | 2 | 4 | $ | — | $ | 1 | $ | 15 | ||||||||||||||
Stockholders_Equity_Comprehens1
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||||||
Apr. 27, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Components of accumulated other comprehensive loss, after-tax basis | ' | |||||||||||||||||||
Changes in the components of AOCI, net of tax, were as follows: | ||||||||||||||||||||
Unrealized Gain on Investments, Net | Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges | Pension Liability | Cumulative Translation Adjustments | Total | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance at October 27, 2013 | $ | 25 | $ | 2 | $ | (72 | ) | $ | 7 | $ | (38 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 5 | 3 | — | (1 | ) | 7 | ||||||||||||||
Amounts reclassified out of AOCI | (5 | ) | (5 | ) | — | — | (10 | ) | ||||||||||||
Other comprehensive loss, net of tax | — | (2 | ) | — | (1 | ) | (3 | ) | ||||||||||||
Balance at April 27, 2014 | $ | 25 | $ | — | $ | (72 | ) | $ | 6 | $ | (41 | ) | ||||||||
Summary of stock repurchases | ' | |||||||||||||||||||
The following table summarizes Applied’s stock repurchases for the three and six months ended April 28, 2013: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 28, | April 28, | |||||||||||||||||||
2013 | 2013 | |||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Shares of common stock repurchased | 8 | 12 | ||||||||||||||||||
Cost of stock repurchased | $ | 100 | $ | 148 | ||||||||||||||||
Average price paid per share | $ | 13.41 | $ | 12.58 | ||||||||||||||||
Total share-based compensation and related tax benefits | ' | |||||||||||||||||||
Total share-based compensation and related tax benefits were as follows: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Share-based compensation | $ | 42 | $ | 39 | $ | 88 | $ | 81 | ||||||||||||
Tax benefit recognized | $ | 12 | $ | 11 | $ | 25 | $ | 23 | ||||||||||||
Effect of share-based compensation on the results of operations | ' | |||||||||||||||||||
The effect of share-based compensation on the results of operations for the three and six months ended April 27, 2014 and April 28, 2013 was as follows: | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(In millions) | ||||||||||||||||||||
Cost of products sold | $ | 13 | $ | 12 | $ | 27 | $ | 24 | ||||||||||||
Research, development, and engineering | 16 | 13 | 33 | 25 | ||||||||||||||||
Marketing and selling | 5 | 5 | 11 | 10 | ||||||||||||||||
General and administrative | 8 | 9 | 17 | 17 | ||||||||||||||||
Restructuring charge | — | — | — | 5 | ||||||||||||||||
Total | $ | 42 | $ | 39 | $ | 88 | $ | 81 | ||||||||||||
Stock option activity | ' | |||||||||||||||||||
Stock option activity for the six months ended April 27, 2014 was as follows: | ||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||
Average | ||||||||||||||||||||
Exercise | ||||||||||||||||||||
Price | ||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Outstanding at October 27, 2013 | 6 | $ | 9.12 | |||||||||||||||||
Exercised | (3 | ) | $ | 7.98 | ||||||||||||||||
Canceled and forfeited | (1 | ) | $ | 15.4 | ||||||||||||||||
Outstanding at April 27, 2014 | 2 | $ | 10.34 | |||||||||||||||||
Exercisable at April 27, 2014 | 1 | $ | 5.84 | |||||||||||||||||
Performance-based awards | ' | |||||||||||||||||||
A summary of the performance-based awards approved by the Committee is presented below: | ||||||||||||||||||||
Number of Performance-Based Awards Granted | Percent of Performance-Based Awards Earned as of April 27, 2014* | |||||||||||||||||||
Fiscal Year Granted | Performance Shares/Performance Units | Shares of | ||||||||||||||||||
Restricted Stock | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2013 | 3 | — | 0% | |||||||||||||||||
2012 | 3 | 1 | 14% | |||||||||||||||||
2011 | 2 | 0.1 | 100% | |||||||||||||||||
___________________ | ||||||||||||||||||||
* subject to additional time-based vesting requirements | ||||||||||||||||||||
Restricted stock units and restricted stock activity | ' | |||||||||||||||||||
A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the six months ended April 27, 2014 is presented below: | ||||||||||||||||||||
Shares | Weighted | Weighted | ||||||||||||||||||
Average | Average | |||||||||||||||||||
Grant Date | Remaining | |||||||||||||||||||
Fair Value | Contractual Term | |||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2013 | 38 | $ | 11.11 | 2.4 years | ||||||||||||||||
Granted | 9 | $ | 16.34 | |||||||||||||||||
Vested | (11 | ) | $ | 11.03 | ||||||||||||||||
Canceled | (2 | ) | $ | 11.43 | ||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at April 27, 2014 | 34 | $ | 12.27 | 2.7 years | ||||||||||||||||
Significant valuation assumptions in relation to ESPP | ' | |||||||||||||||||||
Underlying assumptions used in the model are outlined in the following table: | ||||||||||||||||||||
Three and Six Months Ended | ||||||||||||||||||||
27-Apr-14 | 28-Apr-13 | |||||||||||||||||||
ESPP: | ||||||||||||||||||||
Dividend yield | 2.14% | 2.94% | ||||||||||||||||||
Expected volatility | 25.30% | 24.30% | ||||||||||||||||||
Risk-free interest rate | 0.08% | 0.12% | ||||||||||||||||||
Expected life (in years) | 0.5 | 0.5 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of net periodic benefit costs of defined and postretirement benefit plans | ' | |||||||||||||||
A summary of the components of net periodic benefit costs of these defined and postretirement benefit plans for the three and six months ended April 27, 2014 and April 28, 2013 is presented below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Service cost | $ | 4 | $ | 5 | $ | 8 | $ | 10 | ||||||||
Interest cost | 4 | 4 | 8 | 8 | ||||||||||||
Expected return on plan assets | (3 | ) | (3 | ) | (6 | ) | (6 | ) | ||||||||
Amortization of actuarial loss | 1 | 1 | 2 | 3 | ||||||||||||
Net periodic benefit cost | $ | 6 | $ | 7 | $ | 12 | $ | 15 | ||||||||
Recovered_Sheet1
Warranty, Guarantees And Contingencies (Tables) | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Changes in the warranty reserves | ' | |||||||||||||||
Changes in the warranty reserves during the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Beginning balance | $ | 106 | $ | 109 | $ | 102 | $ | 119 | ||||||||
Provisions for warranty | 29 | 26 | 56 | 49 | ||||||||||||
Consumption of reserves | (26 | ) | (31 | ) | (49 | ) | (64 | ) | ||||||||
Ending balance | $ | 109 | $ | 104 | $ | 109 | $ | 104 | ||||||||
Industry_Segment_Operations_Ta
Industry Segment Operations (Tables) | 6 Months Ended | |||||||||||||||
Apr. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Net sales and operating income (loss) for each reportable segment | ' | |||||||||||||||
Net sales and operating income (loss) for each reportable segment for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Net Sales | Operating | Net Sales | Operating | |||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||
(In millions) | ||||||||||||||||
April 27, 2014: | ||||||||||||||||
Silicon Systems Group | $ | 1,584 | $ | 391 | $ | 3,068 | $ | 705 | ||||||||
Applied Global Services | 534 | 148 | 1,041 | 273 | ||||||||||||
Display | 147 | 26 | 306 | 52 | ||||||||||||
Energy and Environmental Solutions | 88 | 5 | 128 | (6 | ) | |||||||||||
Total Segment | $ | 2,353 | $ | 570 | $ | 4,543 | $ | 1,024 | ||||||||
April 28, 2013: | ||||||||||||||||
Silicon Systems Group | $ | 1,291 | $ | 283 | $ | 2,260 | $ | 417 | ||||||||
Applied Global Services | 517 | 118 | 988 | 207 | ||||||||||||
Display | 127 | 19 | 214 | 22 | ||||||||||||
Energy and Environmental Solutions | 38 | (322 | ) | 84 | (376 | ) | ||||||||||
Total Segment | $ | 1,973 | $ | 98 | $ | 3,546 | $ | 270 | ||||||||
Reconciliations of total segment operating income to Applied's consolidated operating income (loss) | ' | |||||||||||||||
Reconciliations of total segment operating results to Applied consolidated totals for the three and six months ended April 27, 2014 and April 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 27, | April 28, | April 27, | April 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Total segment operating income | $ | 570 | $ | 98 | $ | 1,024 | $ | 270 | ||||||||
Corporate and unallocated costs | (183 | ) | (162 | ) | (300 | ) | (291 | ) | ||||||||
Restructuring charges and asset impairments | — | (4 | ) | (7 | ) | (8 | ) | |||||||||
Income (loss) from operations | $ | 387 | $ | (68 | ) | $ | 717 | $ | (29 | ) | ||||||
Companies accounted for at least 10 percent of Applied's net sales | ' | |||||||||||||||
The following customers accounted for at least 10 percent of Applied’s net sales for the six months ended April 27, 2014, which were for products in multiple reportable segments. | ||||||||||||||||
Percentage of Net Sales | ||||||||||||||||
Taiwan Semiconductor Manufacturing Company Limited | 25 | % | ||||||||||||||
Samsung Electronics Co., Ltd. | 17 | % |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 6 Months Ended | |
Apr. 27, 2014 | Apr. 28, 2013 | |
Accounting Policies [Abstract] | ' | ' |
Operating cycle | '182 days | '182 days |
Fiscal Year Operating Cycle | '364 days | '364 days |
Earnings_loss_Per_Share_Detail
Earnings (loss) Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) | $262 | ($129) | $515 | ($95) |
Denominator: | ' | ' | ' | ' |
Weighted average common shares outstanding (in shares) | 1,216 | 1,203 | 1,211 | 1,200 |
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares (in shares) | 13 | 0 | 16 | 0 |
Denominator for diluted earnings (loss) per share (in shares) | 1,229 | 1,203 | 1,227 | 1,200 |
Basic earnings (loss) per share (in dollars per share) | $0.22 | ($0.11) | $0.43 | ($0.08) |
Diluted earnings (loss) per share (in dollars per share) | $0.21 | ($0.11) | $0.42 | ($0.08) |
Potentially dilutive securities (in shares) | 0 | 50 | 0 | 50 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 28, 2013 | Oct. 28, 2012 | |
In Millions, unless otherwise specified | |||||
Summary of Cash, Cash Equivalents and Investments | ' | ' | ' | ' | |
Cash | $691 | $611 | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Money market funds | 1,762 | 1,095 | ' | ' | |
Municipal securities | ' | 5 | ' | ' | |
Total Cash equivalents | 1,762 | 1,100 | ' | ' | |
Total Cash and Cash equivalents | 2,453 | 1,711 | 1,545 | 1,392 | |
Short-term and long-term investments, Cost | 946 | 1,149 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 38 | 39 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 2 | 3 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 982 | 1,185 | ' | ' | |
Equity investments in privately-held companies | 77 | 76 | ' | ' | |
Cash, Cash Equivalents and Investments, Cost | 3,399 | 2,860 | ' | ' | |
Cash, Cash Equivalents and Investments, Gross Unrealized Gains | 38 | 39 | ' | ' | |
Cash, Cash Equivalents and Investments, Gross Unrealized Losses | 2 | 3 | ' | ' | |
Cash, Cash Equivalents and Investments, Estimated Fair Value | 3,435 | 2,896 | ' | ' | |
Total fixed income securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 847 | 1,046 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 4 | 6 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 2 | 3 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 849 | 1,049 | ' | ' | |
U.S. Treasury and agency securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 68 | 170 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 0 | 0 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 0 | 0 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 68 | 170 | ' | ' | |
Non-US government securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 15 | [1] | 11 | ' | ' |
Short-term and long-term investments, Gross Unrealized Gains | 0 | [1] | 0 | ' | ' |
Short-term and long-term investments, Gross Unrealized Losses | 0 | [1] | 0 | ' | ' |
Short-term and long-term investments, Estimated Fair Value | 15 | [1] | 11 | ' | ' |
Municipal securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 378 | 379 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 2 | 2 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 0 | 0 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 380 | 381 | ' | ' | |
Commercial paper, corporate bonds and medium-term notes [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 151 | 218 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 1 | 2 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 0 | 1 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 152 | 219 | ' | ' | |
Asset-backed and mortgage-backed securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 235 | 268 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 1 | 2 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 2 | 2 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | 234 | 268 | ' | ' | |
Publicly traded equity securities [Member] | ' | ' | ' | ' | |
Cash equivalents: | ' | ' | ' | ' | |
Short-term and long-term investments, Cost | 22 | 27 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Gains | 34 | 33 | ' | ' | |
Short-term and long-term investments, Gross Unrealized Losses | 0 | 0 | ' | ' | |
Short-term and long-term investments, Estimated Fair Value | $56 | $60 | ' | ' | |
[1] | Includes agency debt securities guaranteed by non-U.S. governments, which consist of Germany and Canada. |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | |||
Contractual maturities of investments | ' | ' | ' | ' | ||
Due in one year or less, Cost | $124,000,000 | ' | $124,000,000 | ' | ||
Due after one through five years, Cost | 488,000,000 | ' | 488,000,000 | ' | ||
No single maturity date, Cost | 334,000,000 | [1] | ' | 334,000,000 | [1] | ' |
Investments maturities, Cost | 946,000,000 | ' | 946,000,000 | ' | ||
Due in one year or less, Estimated Fair Value | 124,000,000 | ' | 124,000,000 | ' | ||
Due after one through five years, Estimated Fair Value | 490,000,000 | ' | 490,000,000 | ' | ||
No single maturity date, Estimated Fair Value | 368,000,000 | [1] | ' | 368,000,000 | [1] | ' |
Investments maturities, Estimated Fair Value | 982,000,000 | ' | 982,000,000 | ' | ||
Gross realized gains | ' | ' | 12,000,000 | ' | ||
Marketable securities [Member] | ' | ' | ' | ' | ||
Contractual maturities of investments | ' | ' | ' | ' | ||
Investment impairments | 0 | 0 | 0 | 0 | ||
Equity investments in privately-held companies [Member] | ' | ' | ' | ' | ||
Contractual maturities of investments | ' | ' | ' | ' | ||
Investment impairments | $3,000,000 | $2,000,000 | $6,000,000 | $2,000,000 | ||
[1] | Securities with no single maturity date include publicly-traded and privately-held equity securities, and asset-backed and mortgage-backed securities. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Total [Member] | ' | ' |
Assets: | ' | ' |
Foreign exchange derivative assets | $19 | $20 |
Total | 2,686 | 2,229 |
Total [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 1,762 | 1,095 |
Total [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 68 | 170 |
Total [Member] | Non-US government securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 15 | 11 |
Total [Member] | Municipal securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 380 | 386 |
Total [Member] | Commercial paper, corporate bonds and medium-term notes [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 152 | 219 |
Total [Member] | Asset-backed and mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 234 | 268 |
Total [Member] | Publicly traded equity securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 56 | 60 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Foreign exchange derivative assets | 0 | 0 |
Total | 1,850 | 1,221 |
Level 1 [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 1,762 | 1,095 |
Level 1 [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 32 | 66 |
Level 1 [Member] | Non-US government securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 0 | 0 |
Level 1 [Member] | Municipal securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 0 | 0 |
Level 1 [Member] | Commercial paper, corporate bonds and medium-term notes [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 0 | 0 |
Level 1 [Member] | Asset-backed and mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 0 | 0 |
Level 1 [Member] | Publicly traded equity securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 56 | 60 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Foreign exchange derivative assets | 19 | 20 |
Total | 836 | 1,008 |
Level 2 [Member] | Money market funds [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 0 | 0 |
Level 2 [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 36 | 104 |
Level 2 [Member] | Non-US government securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 15 | 11 |
Level 2 [Member] | Municipal securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 380 | 386 |
Level 2 [Member] | Commercial paper, corporate bonds and medium-term notes [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 152 | 219 |
Level 2 [Member] | Asset-backed and mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | 234 | 268 |
Level 2 [Member] | Publicly traded equity securities [Member] | ' | ' |
Assets: | ' | ' |
Investment securities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||
Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equity Investments In Privately Held Companies [Member] | Equity Investments In Privately Held Companies [Member] | Equity Investments In Privately Held Companies [Member] | Equity Investments In Privately Held Companies [Member] | Carrying Amount [Member] | Carrying Amount [Member] | Carrying Amount [Member] | Carrying Amount [Member] | Portion at Cost [Member] | Portion at Cost [Member] | Estimated Fair Value [Member] | Estimated Fair Value [Member] | |||||
Level 3 [Member] | Level 3 [Member] | Equity Investments In Privately Held Companies [Member] | Equity Investments In Privately Held Companies [Member] | Level 2 [Member] | Level 2 [Member] | |||||||||||||
Short Term And Long Term Investments [Member] | Short Term And Long Term Investments [Member] | |||||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of level one and level two transfers amount | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investments in privately-held companies measured on non-recurring basis | ' | ' | ' | ' | 7,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | 77,000,000 | 76,000,000 | 70,000,000 | 66,000,000 | ' | ' |
Investment impairments | ' | ' | ' | ' | ' | ' | 3,000,000 | 2,000,000 | 6,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,900,000,000 | $1,900,000,000 | ' | ' | ' | ' | $2,200,000,000 | $2,100,000,000 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details Textual) (USD $) | 6 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Apr. 27, 2014 | Jan. 26, 2014 | Oct. 27, 2013 |
Tokyo Electron Limited [Member] | Tokyo Electron Limited [Member] | Estimated Fair Value [Member] | Estimated Fair Value [Member] | Estimated Fair Value [Member] | ||
Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Tokyo Electron Limited [Member] | Tokyo Electron Limited [Member] | Tokyo Electron Limited [Member] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | ||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Time period for hedging of foreign currency transactions | '24 months | ' | ' | ' | ' | ' |
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings | '12 months | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative Asset | ' | ' | ' | $18 | $41 | $17 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | ' | ($23) | $24 | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain or (Loss) Recognized in AOCI, Effective Portion | ($1) | $13 | $4 | $22 |
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion | 1 | 9 | 7 | 12 |
Gain or (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | -2 | -1 | -3 | -2 |
Foreign exchange contracts [Member] | Cost of products sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain or (Loss) Recognized in AOCI, Effective Portion | -1 | 13 | 4 | 22 |
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion | 1 | 6 | 4 | 9 |
Gain or (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | -2 | 0 | -2 | -1 |
Foreign exchange contracts [Member] | General and administrative [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain or (Loss) Recognized in AOCI, Effective Portion | 0 | 0 | 0 | 0 |
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion | 0 | 3 | 3 | 3 |
Gain or (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | $0 | ($1) | ($1) | ($1) |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | ($26) | $17 | $13 | $29 |
Foreign exchange contracts [Member] | General and administrative [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | ($26) | $17 | $13 | $29 |
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Oct. 27, 2013 | |
Receivables [Abstract] | ' | ' | ' | ' | ' |
Factored accounts receivable | $0 | $0 | $45,000,000 | $0 | ' |
Discounted letters of credit | 29,000,000 | 0 | 29,000,000 | 0 | ' |
Allowance for doubtful accounts | $74,000,000 | ' | $74,000,000 | ' | $74,000,000 |
Balance_Sheet_Detail_Details
Balance Sheet Detail (Details) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 27, 2013 | Apr. 27, 2014 | Apr. 27, 2014 | Apr. 27, 2014 | Apr. 27, 2014 | Apr. 27, 2014 | Apr. 27, 2014 |
In Millions, unless otherwise specified | Land and improvements [Member] | Land and improvements [Member] | Building and improvements [Member] | Building and improvements [Member] | Demonstration and manufacturing equipment [Member] | Demonstration and manufacturing equipment [Member] | Furniture, fixtures and other equipment [Member] | Furniture, fixtures and other equipment [Member] | Construction in progress [Member] | Construction in progress [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||
Building and improvements [Member] | Demonstration and manufacturing equipment [Member] | Furniture, fixtures and other equipment [Member] | Building and improvements [Member] | Demonstration and manufacturing equipment [Member] | Furniture, fixtures and other equipment [Member] | |||||||||||||
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer service spares | $285 | $274 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Raw materials | 379 | 325 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Work-in-process | 240 | 283 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finished goods | 660 | 531 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Inventories | 1,564 | 1,413 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance Sheet Detail (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory at customer locations included in finished goods | 204 | 136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Evaluation inventory | 184 | 177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Current Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes, net | 318 | 323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses | 164 | 135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid income taxes and income taxes receivable | 72 | 178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | 69 | 69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Other Current Assets | 623 | 705 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | '30 years | '5 years | '15 years |
Gross property, plant and equipment | 2,813 | 2,817 | 167 | 167 | 1,234 | 1,217 | 818 | 792 | 548 | 589 | 46 | 52 | ' | ' | ' | ' | ' | ' |
Accumulated depreciation | -1,958 | -1,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net property, plant and equipment | 855 | 850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Payable and Accrued Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 606 | 582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation and employee benefits | 414 | 417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty | 109 | 102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | 122 | 121 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes payable | 94 | 73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other accrued taxes | 40 | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payable | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | 15 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | 233 | 244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Accounts Payable and Accrued Expenses | 1,663 | 1,649 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Deposits and Deferred Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer deposits | 152 | 175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | 847 | 619 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Customer Deposits and Deferred Revenue | 999 | 794 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes | 65 | 71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes payable | 132 | 174 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined and postretirement benefit plans | 198 | 193 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | 76 | 128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Other Liabilities | $471 | $566 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combination_Details_T
Business Combination (Details Textuals) (Tokyo Electron Limited [Member], USD $) | 0 Months Ended |
Sep. 24, 2013 | |
Business Combination (Textuals) [Abstract] | ' |
Expected stock repurchase of resulting entity in the next fiscal year | 3,000,000,000 |
Termination fee | 400,000,000 |
Former TEL Shareholders [Member] | ' |
Business Combination (Textuals) [Abstract] | ' |
Shares to be issued as part of combination, conversion ratio | 3.25 |
Percentage of voting interests acquired | 32.00% |
Former Applied Materials Shareholders [Member] | ' |
Business Combination (Textuals) [Abstract] | ' |
Shares to be received as part of combination, conversion ratio | 1 |
Percentage of voting interests acquired | 68.00% |
Goodwill_Purchased_Technology_2
Goodwill, Purchased Technology and Other Intangible Assets (Details) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Indefinite-lived intangible assets | ' | ' |
Goodwill | $3,294 | $3,294 |
Other Intangible Assets | 148 | 142 |
Total | 3,442 | 3,436 |
Silicon Systems Group [Member] | ' | ' |
Indefinite-lived intangible assets | ' | ' |
Goodwill | 2,151 | 2,151 |
Other Intangible Assets | 142 | 142 |
Total | 2,293 | 2,293 |
Applied Global Services [Member] | ' | ' |
Indefinite-lived intangible assets | ' | ' |
Goodwill | 1,027 | 1,027 |
Other Intangible Assets | 6 | 0 |
Total | 1,033 | 1,027 |
Display [Member] | ' | ' |
Indefinite-lived intangible assets | ' | ' |
Goodwill | 116 | 116 |
Other Intangible Assets | 0 | 0 |
Total | $116 | $116 |
Goodwill_Purchased_Technology_3
Goodwill, Purchased Technology and Other Intangible Assets (Details 1) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Summary of Purchased Technology and Intangible Assets [Line Items] | ' | ' |
Carrying amount | $870 | $961 |
Intangible assets - indefinite-lived | 148 | 142 |
Total | 1,018 | 1,103 |
Purchased technology [Member] | ' | ' |
Summary of Purchased Technology and Intangible Assets [Line Items] | ' | ' |
Carrying amount | 671 | 748 |
Intangible assets [Member] | ' | ' |
Summary of Purchased Technology and Intangible Assets [Line Items] | ' | ' |
Carrying amount | $199 | $213 |
Goodwill_Purchased_Technology_4
Goodwill, Purchased Technology and Other Intangible Assets (Details Textual) | 6 Months Ended |
Apr. 27, 2014 | |
Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, useful life | '1 year |
Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets, useful life | '15 years |
Goodwill_Purchased_Technology_5
Goodwill, Purchased Technology and Other Intangible Assets (Details 2) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Finite-lived intangible assets | ' | ' |
Gross carrying amount | $1,788 | $1,788 |
Accumulated amortization | -918 | -827 |
Carrying amount | 870 | 961 |
Silicon Systems Group [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 1,553 | 1,553 |
Accumulated amortization | -704 | -620 |
Applied Global Services [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 72 | 72 |
Accumulated amortization | -68 | -65 |
Display [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 143 | 143 |
Accumulated amortization | -140 | -139 |
Energy and Environmental Solutions [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 20 | 20 |
Accumulated amortization | -6 | -3 |
Purchased technology [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 1,444 | 1,444 |
Accumulated amortization | -773 | -696 |
Carrying amount | 671 | 748 |
Purchased technology [Member] | Silicon Systems Group [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 1,301 | 1,301 |
Accumulated amortization | -637 | -562 |
Purchased technology [Member] | Applied Global Services [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 28 | 28 |
Accumulated amortization | -24 | -23 |
Purchased technology [Member] | Display [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 110 | 110 |
Accumulated amortization | -110 | -110 |
Purchased technology [Member] | Energy and Environmental Solutions [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 5 | 5 |
Accumulated amortization | -2 | -1 |
Other [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 344 | 344 |
Accumulated amortization | -145 | -131 |
Carrying amount | 199 | 213 |
Other [Member] | Silicon Systems Group [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 252 | 252 |
Accumulated amortization | -67 | -58 |
Other [Member] | Applied Global Services [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 44 | 44 |
Accumulated amortization | -44 | -42 |
Other [Member] | Display [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 33 | 33 |
Accumulated amortization | -30 | -29 |
Other [Member] | Energy and Environmental Solutions [Member] | ' | ' |
Finite-lived intangible assets | ' | ' |
Gross carrying amount | 15 | 15 |
Accumulated amortization | ($4) | ($2) |
Goodwill_Purchased_Technology_6
Goodwill, Purchased Technology and Other Intangible Assets (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $45 | $54 | $91 | $107 |
Silicon Systems Group [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 42 | 44 | 84 | 88 |
Applied Global Services [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 2 | 1 | 3 | 2 |
Display [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 0 | 2 | 1 | 4 |
Energy and Environmental Solutions [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $1 | $7 | $3 | $13 |
Goodwill_Purchased_Technology_7
Goodwill, Purchased Technology and Other Intangible Assets (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $45 | $54 | $91 | $107 |
Cost of products sold [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 39 | 43 | 79 | 86 |
Research, development, and engineering [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 0 | 1 | 0 | 1 |
Marketing and selling [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | 6 | 8 | 11 | 5 |
General and administrative [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization expense | $0 | $2 | $1 | $15 |
Goodwill_Purchased_Technology_8
Goodwill, Purchased Technology and Other Intangible Assets (Details 5) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Future estimated amortization expense | ' | ' |
2014 | $89 | ' |
2015 | 175 | ' |
2016 | 169 | ' |
2017 | 165 | ' |
2018 | 163 | ' |
Thereafter | 109 | ' |
Carrying amount | $870 | $961 |
Borrowing_Facilities_and_LongT2
Borrowing Facilities and Long-Term Debt (Details Textual) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Available revolving credit agreement | $1,600,000,000 | ' |
Outstanding credit facilities | 0 | 0 |
Revolving Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Available revolving credit agreement | 1,500,000,000 | ' |
Foreign Line of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Available revolving credit agreement | $78,000,000 | ' |
Borrowing_Facilities_and_LongT3
Borrowing Facilities and Long-Term Debt (Details) (USD $) | Apr. 27, 2014 | Oct. 27, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Long term debt | ' | ' |
Total long-term debt | $1,947 | $1,946 |
Senior Notes [Member] | ' | ' |
Schedule of Long term debt | ' | ' |
Principal amount | 1,950 | 1,950 |
Total unamortized discount | -3 | -4 |
Total long-term debt | 1,947 | 1,946 |
Senior Notes [Member] | 2.650% Unsecured Senior Notes Due 2016, Interest Payable June 15 and December 15 [Member] | ' | ' |
Schedule of Long term debt | ' | ' |
Debt, interest rate, stated percentage | 2.65% | 2.65% |
Debt, interest rate, effective percentage | 2.67% | 2.67% |
Principal amount | 400 | 400 |
Senior Notes [Member] | 7.125% Unsecured Senior Notes Due 2017, Interest Payable April 15 and October 15 [Member] | ' | ' |
Schedule of Long term debt | ' | ' |
Debt, interest rate, stated percentage | 7.13% | 7.13% |
Debt, interest rate, effective percentage | 7.19% | 7.19% |
Principal amount | 200 | 200 |
Senior Notes [Member] | 4.300% Unsecured Senior Notes Due 2021, Interest Payable June 15 and December 15 [Member] | ' | ' |
Schedule of Long term debt | ' | ' |
Debt, interest rate, stated percentage | 4.30% | 4.30% |
Debt, interest rate, effective percentage | 4.33% | 4.33% |
Principal amount | 750 | 750 |
Senior Notes [Member] | 5.850% Unsecured Senior Notes Due 2041, Interest Payable June 15 and December 15 [Member] | ' | ' |
Schedule of Long term debt | ' | ' |
Debt, interest rate, stated percentage | 5.85% | 5.85% |
Debt, interest rate, effective percentage | 5.88% | 5.88% |
Principal amount | $600 | $600 |
Restructuring_Charges_and_Asse2
Restructuring Charges and Asset Impairments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Millions, unless otherwise specified | Apr. 27, 2014 | Jan. 26, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | $0 | ' | $10 | $7 | $19 | ||||
2012 Global Restructuring Plan [Member] | Severance and other employee-related costs [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | 0 | 7 | 4 | 7 | 8 | ||||
2012 EES Restructuring Plan [Member] | Severance and other employee-related costs [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | 0 | [1] | ' | 2 | [1] | 0 | [1] | 2 | [1] |
2012 EES Restructuring Plan [Member] | Contract cancellation and other costs [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | 0 | ' | 2 | 0 | 2 | ||||
2012 EES Restructuring Plan [Member] | Asset impairments [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | 0 | ' | 2 | 0 | 5 | ||||
Others [Member] | Severance and other employee-related costs [Member] | ' | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring charges and asset impairments | $0 | ' | $0 | $0 | $2 | ||||
[1] | Includes post-retirement benefit expense which was recorded in accumulated other comprehensive loss. |
Restructuring_Charges_and_Asse3
Restructuring Charges and Asset Impairments (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and asset impairments | $0 | $10 | $7 | $19 |
Silicon Systems Group [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and asset impairments | 0 | 0 | 0 | 1 |
Applied Global Services [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and asset impairments | 0 | 1 | 0 | 2 |
Energy and Environmental Solutions [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and asset impairments | 0 | 5 | 0 | 8 |
Corporate Unallocated [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charges and asset impairments | $0 | $4 | $7 | $8 |
Restructuring_Charges_and_Asse4
Restructuring Charges and Asset Impairments (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 16 Months Ended | |||||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Oct. 03, 2012 | Apr. 27, 2014 | Jan. 26, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Jan. 26, 2014 |
2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | 2012 Global Restructuring Plan [Member] | |||||
positions | Severance and other employee-related costs [Member] | Severance and other employee-related costs [Member] | Severance and other employee-related costs [Member] | Severance and other employee-related costs [Member] | Severance and other employee-related costs [Member] | Severance and other employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in Global Workforce (in positions) | ' | ' | ' | ' | 1,300 | ' | ' | ' | ' | ' | ' |
Restructuring charges and asset impairments | $0 | $10 | $7 | $19 | ' | $0 | $7 | $4 | $7 | $8 | ' |
Costs incurred to date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $152 |
Restructuring_Charges_and_Asse5
Restructuring Charges and Asset Impairments (Details 2) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Apr. 27, 2014 |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | $39 |
Provision for restructuring reserves | 7 |
Consumption of reserves | -30 |
Reclassification of restructuring reserves | -1 |
Ending Balance | 15 |
2012 Global Restructuring Plan [Member] | Severance and Other Employee-Related Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 26 |
Provision for restructuring reserves | 7 |
Consumption of reserves | -25 |
Reclassification of restructuring reserves | 0 |
Ending Balance | 8 |
2012 EES Restructuring Plan [Member] | Severance and Other Employee-Related Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 5 |
Provision for restructuring reserves | 0 |
Consumption of reserves | -2 |
Reclassification of restructuring reserves | -1 |
Ending Balance | 2 |
2012 EES Restructuring Plan [Member] | Contract Cancellation and Other Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 5 |
Provision for restructuring reserves | 0 |
Consumption of reserves | -1 |
Reclassification of restructuring reserves | 0 |
Ending Balance | 4 |
Others [Member] | Severance and Other Employee-Related Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 2 |
Provision for restructuring reserves | 0 |
Consumption of reserves | -2 |
Reclassification of restructuring reserves | 0 |
Ending Balance | 0 |
Others [Member] | Contract Cancellation and Other Costs [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Beginning Balance | 1 |
Provision for restructuring reserves | 0 |
Consumption of reserves | 0 |
Reclassification of restructuring reserves | 0 |
Ending Balance | $1 |
Stockholders_Equity_Comprehens2
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | ($38) | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 7 | ' |
Amounts reclassified out of AOCI | ' | ' | -10 | ' |
Other comprehensive income (loss), net of tax | 3 | 8 | -3 | 7 |
Ending balance | -41 | ' | -41 | ' |
Unrealized Gain on Investments, Net [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 25 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 5 | ' |
Amounts reclassified out of AOCI | ' | ' | -5 | ' |
Other comprehensive income (loss), net of tax | ' | ' | 0 | ' |
Ending balance | 25 | ' | 25 | ' |
Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 2 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 3 | ' |
Amounts reclassified out of AOCI | ' | ' | -5 | ' |
Other comprehensive income (loss), net of tax | ' | ' | -2 | ' |
Ending balance | 0 | ' | 0 | ' |
Pension Liability [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | -72 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Amounts reclassified out of AOCI | ' | ' | 0 | ' |
Other comprehensive income (loss), net of tax | ' | ' | 0 | ' |
Ending balance | -72 | ' | -72 | ' |
Cumulative Translation Adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 7 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' |
Amounts reclassified out of AOCI | ' | ' | 0 | ' |
Other comprehensive income (loss), net of tax | ' | ' | -1 | ' |
Ending balance | $6 | ' | $6 | ' |
Stockholders_Equity_Comprehens3
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 05, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | |
employee_stock_purchase_plans | |||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amount authorized by Board of directors to repurchase shares | $3,000,000,000 | ' | ' | ' | ' | ' | ' |
Period of stock repurchase program | '3 years | ' | ' | ' | ' | ' | ' |
Remaining amount authorized to be repurchased | ' | ' | ' | ' | ' | 1,600,000,000 | ' |
Number of shares repurchased | ' | ' | ' | 0 | ' | 0 | ' |
Cash dividend declared | ' | $0.10 | $0.10 | ' | ' | ' | ' |
Dividend declared, amount | ' | ' | ' | ' | ' | 243,000,000 | 227,000,000 |
Number of employee stock purchase plans | ' | ' | ' | ' | ' | 2 | ' |
Additional performance-based awards to be earned upon certain levels of achievement (in shares) | ' | ' | ' | 2,000,000 | ' | 2,000,000 | ' |
ESPP shares issued | ' | ' | ' | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for grant (in shares) | ' | ' | ' | 37,000,000 | ' | 37,000,000 | ' |
Purchase price of common stock, percent | ' | ' | ' | ' | ' | 85.00% | ' |
ESPP purchase period | ' | ' | ' | ' | ' | '6 months | ' |
Weighted average estimated fair value of purchase rights under ESPP | ' | ' | ' | 4.07 | 2.9 | $4.07 | $2.90 |
Employee Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation expense | ' | ' | ' | 290,000,000 | ' | $290,000,000 | ' |
Weighted average period for unrecognized compensation expense to be recognized (in years) | ' | ' | ' | ' | ' | '2 years 8 months 12 days | ' |
Number of shares available for grant (in shares) | ' | ' | ' | 177,000,000 | ' | 177,000,000 | ' |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to expire | ' | ' | ' | ' | ' | '7 years | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Award conversion ratio to common stock | ' | ' | ' | ' | ' | 1 | ' |
Performance Shares/Performance Units [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Award conversion ratio to common stock | ' | ' | ' | ' | ' | 1 | ' |
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to be vested | ' | ' | ' | ' | ' | '4 years | ' |
Minimum [Member] | Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to be vested | ' | ' | ' | ' | ' | '3 years | ' |
Minimum [Member] | Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units [Member] | Certain Executive Officers [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to be vested | ' | ' | ' | ' | ' | '3 years | ' |
Maximum [Member] | Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to be vested | ' | ' | ' | ' | ' | '4 years | ' |
Maximum [Member] | Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units [Member] | Certain Executive Officers [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock options scheduled to be vested | ' | ' | ' | ' | ' | '4 years | ' |
United States [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of employee stock purchase plans | ' | ' | ' | ' | ' | 1 | ' |
International [Member] | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of employee stock purchase plans | ' | ' | ' | ' | ' | 1 | ' |
Stockholders_Equity_Comprehens4
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 2) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Apr. 28, 2013 | Apr. 28, 2013 |
Summary of stock repurchases | ' | ' |
Common stock repurchases, shares | 8 | 12 |
Cost of stock repurchased | $100 | $148 |
Average price paid per share (in dollars per share) | $13.41 | $12.58 |
Stockholders_Equity_Comprehens5
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Total share-based compensation and related tax benefits | ' | ' | ' | ' |
Share-based compensation | $42 | $39 | $88 | $81 |
Tax benefit recognized | $12 | $11 | $25 | $23 |
Stockholders_Equity_Comprehens6
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $42 | $39 | $88 | $81 |
Cost of products sold [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 13 | 12 | 27 | 24 |
Research, development, and engineering [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 16 | 13 | 33 | 25 |
Marketing and selling [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 5 | 5 | 11 | 10 |
General and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 8 | 9 | 17 | 17 |
Restructuring charge [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $0 | $0 | $0 | $5 |
Stockholders_Equity_Comprehens7
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 5) (USD $) | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Apr. 27, 2014 |
Stock options | ' |
Beginning Balance | 6 |
Exercised | -3 |
Canceled and forfeited | -1 |
Ending Balance | 2 |
Exercisable, Shares | 1 |
Stock option weighted average exercise price | ' |
Beginning Balance (in dollars per share) | $9.12 |
Exercised (in dollars per share) | $7.98 |
Canceled and forfeited (in dollars per share) | $15.40 |
Ending Balance (in dollars per share) | $10.34 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.84 |
Stockholders_Equity_Comprehens8
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 6) | Apr. 27, 2014 | Oct. 27, 2013 | Oct. 27, 2013 | Apr. 27, 2014 | Oct. 28, 2012 | Oct. 28, 2012 | Apr. 27, 2014 | Oct. 30, 2011 | Oct. 30, 2011 | |||
In Millions, unless otherwise specified | Performance Based Awards 2013 [Member] | Performance Based Awards 2013 [Member] | Performance Based Awards 2013 [Member] | Performance Based Awards 2012 [Member] | Performance Based Awards 2012 [Member] | Performance Based Awards 2012 [Member] | Performance Based Awards 2011 [Member] | Performance Based Awards 2011 [Member] | Performance Based Awards 2011 [Member] | |||
Performance Shares/Performance Units [Member] | Shares of Restricted Stock [Member] | Performance Shares/Performance Units [Member] | Shares of Restricted Stock [Member] | Performance Shares/Performance Units [Member] | Shares of Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Performance-Based Awards Granted | ' | 3 | 0 | ' | 3 | 1 | ' | 2 | 0.1 | |||
Percentage of performance based awards earned | 0.00% | [1] | ' | ' | 14.00% | [1] | ' | ' | 100.00% | [1] | ' | ' |
[1] | subject to additional time-based vesting requirements |
Stockholders_Equity_Comprehens9
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 7) (Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Apr. 27, 2014 | Oct. 27, 2013 |
Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units [Member] | ' | ' |
Restricted stock units, restricted stock, performance shares and performance units | ' | ' |
Beginning Balance (in shares) | 38 | ' |
Granted (in shares) | 9 | ' |
Vested (in shares) | -11 | ' |
Canceled (in shares) | -2 | ' |
Ending Balance (in shares) | 34 | 38 |
Weighted Average Grant Date Fair Value | ' | ' |
Beginning of Period (in dollars per share) | $11.11 | ' |
Granted (in dollars per share) | $16.34 | ' |
Vested (in dollars per share) | $11.03 | ' |
Canceled (in dollars per share) | $11.43 | ' |
Ending Balance (in dollars per share) | $12.27 | $11.11 |
Weighted Average Remaining Contractual Term | ' | ' |
Weighted average remaining contractual term | '2 years 8 months 20 days | '2 years 4 months 25 days |
Recovered_Sheet2
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Details 8) (Employee Stock Purchase Plan [Member]) | 3 Months Ended | 6 Months Ended | ||
Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 | |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Dividend yield | 2.14% | 2.94% | 2.14% | 2.94% |
Expected volatility | 25.30% | 24.30% | 25.30% | 24.30% |
Risk-free interest rate | 0.08% | 0.12% | 0.08% | 0.12% |
Expected life (in years) | '6 months | '6 months | '6 months | '6 months |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Components of net periodic benefit costs of defined and postretirement benefit plans | ' | ' | ' | ' |
Service cost | $4 | $5 | $8 | $10 |
Interest cost | 4 | 4 | 8 | 8 |
Expected return on plan assets | -3 | -3 | -6 | -6 |
Amortization of actuarial loss | 1 | 1 | 2 | 3 |
Net periodic benefit cost | $6 | $7 | $12 | $15 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate provision | 28.20% | -43.30% | 24.30% | -31.90% |
Reduction in uncertain tax benefits | $127 | ' | ' | ' |
Increase in taxes payable | $127 | ' | ' | ' |
Warranty_Guarantees_and_Contin1
Warranty, Guarantees and Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $106 | $109 | $102 | $119 |
Provisions for warranty | 29 | 26 | 56 | 49 |
Consumption of reserves | -26 | -31 | -49 | -64 |
Ending balance | $109 | $104 | $109 | $104 |
Warranty_Guarantees_and_Contin2
Warranty, Guarantees and Contingencies (Details Textual) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Apr. 27, 2014 | Feb. 07, 2013 |
employee | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Standard product warranty period | '12 months | ' |
Maximum potential amount of future payments for letters of credit or other guarantee instruments | $51 | ' |
Parent guarantees to banks | $102 | ' |
Number of employees acquitted | ' | 9 |
Number of employees found guilty | ' | 1 |
Industry_Segment_Operations_De
Industry Segment Operations (Details Textual) | 6 Months Ended |
Apr. 27, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 4 |
Industry_Segment_Operations_De1
Industry Segment Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | $2,353 | $1,973 | $4,543 | $3,546 |
Operating Income (Loss) | 387 | -68 | 717 | -29 |
Operating Segments [Member] | ' | ' | ' | ' |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | 2,353 | 1,973 | 4,543 | 3,546 |
Operating Income (Loss) | 570 | 98 | 1,024 | 270 |
Operating Segments [Member] | Silicon Systems Group [Member] | ' | ' | ' | ' |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | 1,584 | 1,291 | 3,068 | 2,260 |
Operating Income (Loss) | 391 | 283 | 705 | 417 |
Operating Segments [Member] | Applied Global Services [Member] | ' | ' | ' | ' |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | 534 | 517 | 1,041 | 988 |
Operating Income (Loss) | 148 | 118 | 273 | 207 |
Operating Segments [Member] | Display [Member] | ' | ' | ' | ' |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | 147 | 127 | 306 | 214 |
Operating Income (Loss) | 26 | 19 | 52 | 22 |
Operating Segments [Member] | Energy and Environmental Solutions [Member] | ' | ' | ' | ' |
Net sales and operating income (loss) for each reportable segment | ' | ' | ' | ' |
Net Sales | 88 | 38 | 128 | 84 |
Operating Income (Loss) | $5 | ($322) | ($6) | ($376) |
Industry_Segment_Operations_De2
Industry Segment Operations (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2014 | Apr. 28, 2013 | Apr. 27, 2014 | Apr. 28, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | $387 | ($68) | $717 | ($29) |
Total segment operating income [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | 570 | 98 | 1,024 | 270 |
Corporate and unallocated costs [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | -183 | -162 | -300 | -291 |
Restructuring charges and asset impairments [Member] | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | $0 | ($4) | ($7) | ($8) |
Industry_Segment_Operations_De3
Industry Segment Operations (Details 2) | 6 Months Ended |
Apr. 27, 2014 | |
Taiwan Semiconductor Manufacturing Company Limited [Member] | ' |
Entity-Wide Revenue, Major Customer [Line Items] | ' |
Entity-Wide Revenue, Major Customer, Percentage | 25.00% |
Samsung Electronics Co., Ltd. [Member] | ' |
Entity-Wide Revenue, Major Customer [Line Items] | ' |
Entity-Wide Revenue, Major Customer, Percentage | 17.00% |