Cover Page
Cover Page | 9 Months Ended |
Jul. 28, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 28, 2024 |
Document Transition Report | false |
Entity File Number | 000-06920 |
Entity Registrant Name | APPLIED MATERIALS INC /DE |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 94-1655526 |
Entity Address, Address Line One | 3050 Bowers Avenue |
Entity Address, Address Line Two | P.O. Box 58039 |
Entity Address, City or Town | Santa Clara |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95052-8039 |
City Area Code | 408 |
Local Phone Number | 727-5555 |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Trading Symbol | AMAT |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 824,404,088 |
Entity Central Index Key | 0000006951 |
Current Fiscal Year End Date | --10-27 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Income Statement [Abstract] | ||||
Net revenue | $ 6,778 | $ 6,425 | $ 20,131 | $ 19,794 |
Cost of products sold | 3,573 | 3,449 | 10,569 | 10,579 |
Gross profit | 3,205 | 2,976 | 9,562 | 9,215 |
Operating expenses: | ||||
Research, development and engineering | 836 | 767 | 2,375 | 2,313 |
Marketing and selling | 205 | 193 | 621 | 584 |
General and administrative | 222 | 214 | 745 | 635 |
Total operating expenses | 1,263 | 1,174 | 3,741 | 3,532 |
Income from operations | 1,942 | 1,802 | 5,821 | 5,683 |
Interest expense | 63 | 60 | 181 | 180 |
Interest and other income (expense), net | 81 | 64 | 617 | 41 |
Income before income taxes | 1,960 | 1,806 | 6,257 | 5,544 |
Provision for income taxes | 255 | 246 | 811 | 692 |
Net income | $ 1,705 | $ 1,560 | $ 5,446 | $ 4,852 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.06 | $ 1.86 | $ 6.57 | $ 5.76 |
Diluted (in dollars per share) | $ 2.05 | $ 1.85 | $ 6.52 | $ 5.73 |
Weighted average number of shares: | ||||
Basic (in shares) | 826 | 838 | 829 | 842 |
Diluted (in shares) | 833 | 843 | 835 | 846 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,705 | $ 1,560 | $ 5,446 | $ 4,852 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gain (loss) on available-for-sale investments | 18 | (3) | 36 | 25 |
Change in unrealized net loss on derivative instruments | 8 | 15 | 44 | (46) |
Change in defined and postretirement benefit plans | 0 | 0 | (9) | 0 |
Other comprehensive income (loss), net of tax | 26 | 12 | 71 | (21) |
Comprehensive income | $ 1,731 | $ 1,572 | $ 5,517 | $ 4,831 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 8,288 | $ 6,132 |
Short-term investments | 815 | 737 |
Accounts receivable, net | 4,970 | 5,165 |
Inventories | 5,568 | 5,725 |
Other current assets | 1,030 | 1,388 |
Total current assets | 20,671 | 19,147 |
Long-term investments | 2,981 | 2,281 |
Property, plant and equipment, net | 3,100 | 2,723 |
Goodwill | 3,732 | 3,732 |
Purchased technology and other intangible assets, net | 262 | 294 |
Deferred income taxes and other assets | 2,901 | 2,552 |
Total assets | 33,647 | 30,729 |
Current liabilities: | ||
Short-term debt | 99 | 100 |
Accounts payable and accrued expenses | 4,387 | 4,297 |
Contract liabilities | 2,742 | 2,975 |
Total current liabilities | 7,228 | 7,372 |
Long-term debt | 6,158 | 5,461 |
Income taxes payable | 671 | 833 |
Other liabilities | 750 | 714 |
Total liabilities | 14,807 | 14,380 |
Stockholders’ equity: | ||
Common stock | 8 | 8 |
Additional paid-in capital | 9,428 | 9,131 |
Retained earnings | 48,247 | 43,726 |
Treasury stock | (38,697) | (36,299) |
Accumulated other comprehensive loss | (146) | (217) |
Total stockholders’ equity | 18,840 | 16,349 |
Total liabilities and stockholders’ equity | $ 33,647 | $ 30,729 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Oct. 30, 2022 | 844 | |||||
Beginning balance at Oct. 30, 2022 | $ 12,194 | $ 8 | $ 8,593 | $ 37,892 | $ (34,097) | $ (202) |
Treasury stock, beginning balance (in shares) at Oct. 30, 2022 | 1,173 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,852 | 4,852 | ||||
Other comprehensive income (loss), net of tax | (21) | (21) | ||||
Dividends declared | (756) | (756) | ||||
Share-based compensation | 375 | 375 | ||||
Net issuance under stock plans (in shares) | 5 | |||||
Net issuance under stock plans | $ (54) | (54) | ||||
Common stock repurchases (in shares) | (13) | (13) | (13) | |||
Common stock repurchases | $ (1,497) | $ (1,497) | ||||
Ending balance (in shares) at Jul. 30, 2023 | 836 | |||||
Ending balance at Jul. 30, 2023 | 15,093 | $ 8 | 8,914 | 41,988 | $ (35,594) | (223) |
Treasury stock, ending balance (in shares) at Jul. 30, 2023 | 1,186 | |||||
Beginning balance (in shares) at Apr. 30, 2023 | 840 | |||||
Beginning balance at Apr. 30, 2023 | 14,129 | $ 8 | 8,811 | 40,696 | $ (35,151) | (235) |
Treasury stock, beginning balance (in shares) at Apr. 30, 2023 | 1,182 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,560 | 1,560 | ||||
Other comprehensive income (loss), net of tax | 12 | 12 | ||||
Dividends declared | (268) | (268) | ||||
Share-based compensation | 114 | 114 | ||||
Net issuance under stock plans | $ (11) | (11) | ||||
Common stock repurchases (in shares) | (4) | (4) | (4) | |||
Common stock repurchases | $ (443) | $ (443) | ||||
Ending balance (in shares) at Jul. 30, 2023 | 836 | |||||
Ending balance at Jul. 30, 2023 | 15,093 | $ 8 | 8,914 | 41,988 | $ (35,594) | (223) |
Treasury stock, ending balance (in shares) at Jul. 30, 2023 | 1,186 | |||||
Beginning balance (in shares) at Oct. 29, 2023 | 833 | |||||
Beginning balance at Oct. 29, 2023 | 16,349 | $ 8 | 9,131 | 43,726 | $ (36,299) | (217) |
Treasury stock, beginning balance (in shares) at Oct. 29, 2023 | 1,191 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,446 | 5,446 | ||||
Other comprehensive income (loss), net of tax | 71 | 71 | ||||
Dividends declared | (925) | (925) | ||||
Share-based compensation | 436 | 436 | ||||
Net issuance under stock plans (in shares) | 4 | |||||
Net issuance under stock plans | $ (139) | (139) | ||||
Common stock repurchases (in shares) | (13) | (13) | (13) | |||
Common stock repurchases | $ (2,398) | $ (2,398) | ||||
Ending balance (in shares) at Jul. 28, 2024 | 824 | |||||
Ending balance at Jul. 28, 2024 | 18,840 | $ 8 | 9,428 | 48,247 | $ (38,697) | (146) |
Treasury stock, ending balance (in shares) at Jul. 28, 2024 | 1,204 | |||||
Beginning balance (in shares) at Apr. 28, 2024 | 828 | |||||
Beginning balance at Apr. 28, 2024 | 18,199 | $ 8 | 9,321 | 46,871 | $ (37,829) | (172) |
Treasury stock, beginning balance (in shares) at Apr. 28, 2024 | 1,200 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,705 | 1,705 | ||||
Other comprehensive income (loss), net of tax | 26 | 26 | ||||
Dividends declared | (329) | (329) | ||||
Share-based compensation | 132 | 132 | ||||
Net issuance under stock plans | $ (25) | (25) | ||||
Common stock repurchases (in shares) | (4) | (4) | (4) | |||
Common stock repurchases | $ (868) | $ (868) | ||||
Ending balance (in shares) at Jul. 28, 2024 | 824 | |||||
Ending balance at Jul. 28, 2024 | $ 18,840 | $ 8 | $ 9,428 | $ 48,247 | $ (38,697) | $ (146) |
Treasury stock, ending balance (in shares) at Jul. 28, 2024 | 1,204 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends declared per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.32 | $ 0.40 | $ 0.32 | $ 1.12 | $ 0.90 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jul. 28, 2024 | Jul. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 5,446 | $ 4,852 |
Adjustments required to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 282 | 385 |
Share-based compensation | 436 | 375 |
Deferred income taxes | (385) | (174) |
Other | (199) | 189 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 195 | 838 |
Inventories | 157 | 123 |
Other current and non-current assets | 353 | 27 |
Accounts payable and accrued expenses | (20) | (441) |
Contract liabilities | (233) | 355 |
Income taxes payable | 46 | 545 |
Other liabilities | 24 | 71 |
Cash provided by operating activities | 6,102 | 7,145 |
Cash flows from investing activities: | ||
Capital expenditures | (783) | (797) |
Cash paid for acquisitions, net of cash acquired | 0 | (25) |
Proceeds from sales and maturities of investments | 1,495 | 971 |
Purchases of investments | (1,968) | (1,195) |
Cash used in investing activities | (1,256) | (1,046) |
Cash flows from financing activities: | ||
Debt borrowings, net of issuance costs | 694 | 0 |
Proceeds from issuance of commercial paper | 300 | 892 |
Repayments of commercial paper | (300) | (700) |
Proceeds from common stock issuances | 119 | 111 |
Common stock repurchases | (2,381) | (1,489) |
Tax withholding payments for vested equity awards | (258) | (165) |
Payments of dividends to stockholders | (863) | (707) |
Repayments of principal on finance leases | (12) | (8) |
Cash used in financing activities | (2,701) | (2,066) |
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 2,145 | 4,033 |
Cash, cash equivalents and restricted cash equivalents — beginning of period | 6,233 | 2,100 |
Cash, cash equivalents and restricted cash equivalents — end of period | 8,378 | 6,133 |
Reconciliation of cash, cash equivalents and restricted cash equivalents | ||
Cash and cash equivalents | 8,288 | 6,025 |
Restricted cash equivalents included in deferred income taxes and other assets | 90 | 108 |
Total cash, cash equivalents and restricted cash equivalents | 8,378 | 6,133 |
Supplemental cash flow information: | ||
Cash payments for income taxes | 819 | 418 |
Cash refunds from income taxes | 7 | 51 |
Cash payments for interest | $ 137 | $ 137 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 28, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation In the opinion of our management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (we, us, and our) included herein have been prepared on a basis consistent with the October 29, 2023 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly state 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 our Annual Report on Form 10-K for the fiscal year ended October 29, 2023 (2023 Form 10-K). 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. Our results of operations for the three and nine months ended July 28, 2024 are not necessarily indicative of future operating results. Our fiscal year ends on the last Sunday in October of each year. Fiscal 2024 and 2023 contain 52 weeks each and the first nine months of fiscal 2024 and 2023 each contained 39 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, we evaluate our estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property, plant and equipment, fair values of share-based awards, warranty, and income taxes, among others. We base our 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. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant, and equipment effective as of the beginning of fiscal 2024, we have increased the estimated useful lives of certain assets. The updated estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to between 5 to 8 years. The estimated useful lives for the remaining asset categories remained unchanged from fiscal 2023. The change in accounting estimate is being applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $30 million and $97 million in depreciation expense during the three and nine months ended July 28, 2024, respectively, and an increase of $0.03 and $0.09 in both basic and diluted earnings per share for the three and nine months ended July 28, 2024, respectively. Recent Accounting Pronouncements Accounting Standards Adopted Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this authoritative guidance in the first quarter of fiscal 2024 and the impact of the adoption depends on the facts and circumstances of future acquisitions. Accounting Standards Not Yet Adopted Improvements to Income Tax Disclosures . In December 2023, the FASB issued an accounting standard update to improve income tax disclosures (Topic 740). The standard prescribes specific categories for the components of the effective tax rate reconciliation, requires disclosure of income taxes paid by jurisdiction, and modifies other income tax-related disclosures. This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are evaluating the effect of this new guidance on our consolidated financial statements and related disclosures. Improvements to Reportable Segment Disclosures . In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280). The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements. This authoritative guidance will be effective for us in fiscal 2025 for annual periods and in the first quarter of fiscal 2026 for interim periods, with early adoption permitted. We are evaluating the effect of this new guidance on our consolidated financial statements and related disclosures. Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for us in the first quarter of fiscal 2025, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 28, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of restricted stock units and employee stock purchase plan shares) outstanding during the period. Our net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to our non-complex capital structure. Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions, except per share amounts) Numerator: Net income $ 1,705 $ 1,560 $ 5,446 $ 4,852 Denominator: Weighted average common shares outstanding 826 838 829 842 Effect of weighted dilutive restricted stock units and employee stock purchase plan shares 7 5 6 4 Denominator for diluted earnings per share 833 843 835 846 Basic earnings per share $ 2.06 $ 1.86 $ 6.57 $ 5.76 Diluted earnings per share $ 2.05 $ 1.85 $ 6.52 $ 5.73 Potentially weighted dilutive securities — — — 2 Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Jul. 28, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Summary of Cash, Cash Equivalents and Investments The following tables summarize our cash, cash equivalents and investments by security type: July 28, 2024 Cost Gross Gross Estimated (In millions) Cash $ 1,318 $ — $ — $ 1,318 Cash equivalents: Money market funds * 2,828 — — 2,828 Bank certificates of deposit and time deposits 20 — — 20 U.S. Treasury and agency securities 2,291 — — 2,291 Municipal securities 73 — — 73 Commercial paper, corporate bonds and medium-term notes 1,758 — — 1,758 Total cash equivalents 6,970 — — 6,970 Total cash and cash equivalents $ 8,288 $ — $ — $ 8,288 Short-term and long-term investments: Bank certificates of deposit and time deposits $ 19 $ — $ — $ 19 U.S. Treasury and agency securities 641 1 2 640 Non-U.S. government securities ** 5 — — 5 Municipal securities 445 2 4 443 Commercial paper, corporate bonds and medium-term notes 816 2 3 815 Asset-backed and mortgage-backed securities 632 1 6 627 Total fixed income securities 2,558 6 15 2,549 Publicly traded equity securities 543 422 3 962 Equity investments in privately held companies 246 58 19 285 Total equity investments 789 480 22 1,247 Total short-term and long-term investments $ 3,347 $ 486 $ 37 $ 3,796 Total cash, cash equivalents and investments $ 11,635 $ 486 $ 37 $ 12,084 _________________________ *Excludes $90 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. October 29, 2023 Cost Gross Gross Estimated (In millions) Cash $ 1,417 $ — $ — $ 1,417 Cash equivalents: Money market funds * 3,260 — — 3,260 Municipal securities 26 — — 26 Commercial paper, corporate bonds and medium-term notes 1,429 — — 1,429 Total cash equivalents 4,715 — — 4,715 Total cash and cash equivalents $ 6,132 $ — $ — $ 6,132 Short-term and long-term investments: Bank certificates of deposit and time deposits $ 18 $ — $ — $ 18 U.S. Treasury and agency securities 381 — 7 374 Non-U.S. government securities ** 7 — 1 6 Municipal securities 438 — 11 427 Commercial paper, corporate bonds and medium-term notes 760 — 12 748 Asset-backed and mortgage-backed securities 502 — 15 487 Total fixed income securities 2,106 — 46 2,060 Publicly traded equity securities 543 171 16 698 Equity investments in privately held companies 192 78 10 260 Total equity investments 735 249 26 958 Total short-term and long-term investments $ 2,841 $ 249 $ 72 $ 3,018 Total cash, cash equivalents and investments $ 8,973 $ 249 $ 72 $ 9,150 _________________________ *Excludes $101 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. During the three months ended July 28, 2024 and July 30, 2023, interest income from our cash, cash equivalents and fixed income securities was $124 million and $73 million, respectively. During the nine months ended July 28, 2024 and July 30, 2023, interest income from our cash, cash equivalents and fixed income securities was $345 million and $165 million, respectively. Maturities of Investments The following table summarizes the contractual maturities of our investments as of July 28, 2024: Cost Estimated (In millions) Due in one year or less $ 798 $ 796 Due after one through five years 1,124 1,122 Due after five years 4 4 No single maturity date* 1,421 1,874 Total $ 3,347 $ 3,796 _________________________ *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 three and nine months ended July 28, 2024 and July 30, 2023 gross realized gains and losses on our fixed income portfolio were not material. As of July 28, 2024 and October 29, 2023, gross unrealized losses related to our fixed income portfolio were not material. We regularly review our fixed income portfolio to identify and evaluate investments that have indications of possible impairment from credit losses or other factors. Factors considered in determining whether an unrealized loss is considered to be a credit loss include: the significance of the decline in value compared to the cost basis; the financial condition; credit quality and near-term prospects of the investee; and whether it is more likely than not that we will be required to sell the security prior to recovery. Credit losses related to available-for-sale debt securities are recorded as an allowance for credit losses through interest and other income (expense), net. Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income (loss) (AOCI). During the three and nine months ended July 28, 2024 and July 30, 2023, we did not recognize material credit losses and the ending allowance for credit losses was not material to our fixed income portfolio. The components of gain (loss) on equity investments for the three and nine months ended July 28, 2024 and July 30, 2023 were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Publicly traded equity securities Unrealized gain $ 6 $ 12 $ 318 $ 31 Unrealized loss (30) (1) (33) (28) Realized gain on sales and dividends 3 4 5 5 Realized loss on sales or impairment — — (1) (2) Equity investments in privately held companies Unrealized gain 1 1 2 13 Unrealized loss (2) (18) (12) (29) Realized gain on sales and dividends — 2 3 7 Realized loss on sales or impairment (19) (2) (19) (119) Total gain (loss) on equity investments, net $ (41) $ (2) $ 263 $ (122) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 28, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Our nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy We use 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. Our investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, we use 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, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 28, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. 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. 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: July 28, 2024 October 29, 2023 Level 1 Level 2 Total Level 1 Level 2 Total (In millions) Assets: Available-for-sale debt security investments Money market funds* $ 2,918 $ — $ 2,918 $ 3,361 $ — $ 3,361 Bank certificates of deposit and time deposits — 39 39 — 18 18 U.S. Treasury and agency securities 2,909 22 2,931 331 43 374 Non-U.S. government securities — 5 5 — 6 6 Municipal securities — 516 516 — 453 453 Commercial paper, corporate bonds and medium-term notes — 2,573 2,573 — 2,177 2,177 Asset-backed and mortgage-backed securities — 627 627 — 487 487 Total available-for-sale debt security investments $ 5,827 $ 3,782 $ 9,609 $ 3,692 $ 3,184 $ 6,876 Equity investments with readily determinable values Publicly traded equity securities $ 962 $ — $ 962 $ 698 $ — $ 698 Total equity investments with readily determinable values $ 962 $ — $ 962 $ 698 $ — $ 698 Total $ 6,789 $ 3,782 $ 10,571 $ 4,390 $ 3,184 $ 7,574 _________________________ *Amounts as of July 28, 2024 and October 29, 2023 include $90 million and $101 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of July 28, 2024 or October 29, 2023. Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies were not material during the three and nine months ended July 28, 2024. Impairment losses on equity investments in privately held companies were not material during the three months ended July 30, 2023 and were $119 million during the nine months ended July 30, 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Condensed Statement of Operations. Other The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, commercial paper notes, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of July 28, 2024, the aggregate principal amount of long-term senior unsecured notes was $6.2 billion and the estimated fair value was $5.7 billion. As of October 29, 2023, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $4.7 billion. The estimated fair value of long-term senior unsecured notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 10 of the Notes to the Consolidated Condensed Financial Statements for further detail of existing debt. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Jul. 28, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative Financial Instruments We conduct business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, Israeli shekel, euro and Taiwanese dollar. We use derivative financial instruments, such as foreign currency forward and option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically within the next 24 months. The purpose of our 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. We do not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge accounting treatment are recognized currently in earnings. All of our 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 foreign exchange derivatives 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 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 foreign exchange derivative instruments included in AOCI as of July 28, 2024 is expected to be reclassified into earnings within 12 months. Changes in fair value caused by changes in time value of option contracts designated as cash flow hedges are excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. If the transaction being hedged is probable not to occur, we recognize the gain or loss on the associated financial instrument in the consolidated condensed statement of operations. The amount recognized due to discontinuance of cash flow hedges that were probable of not occurring by the end of the originally specified time period was not significant for the three and nine months ended July 28, 2024 and July 30, 2023. Foreign currency forward contracts are generally used to hedge certain foreign currency denominated assets or liabilities. 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. As of July 28, 2024 and October 29, 2023, the total outstanding notional amounts of foreign exchange contracts were $1.6 billion and $1.7 billion. The fair values of foreign exchange derivative instruments as of July 28, 2024 and October 29, 2023 were not material. We are also exposed to interest rate risk associated with our potential future borrowings. During the nine months ended July 28, 2024, we entered into a series of interest rate contracts to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt in June 2024. The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 16 $ 15 $ 44 $ (32) Interest rate contracts (8) — 12 — Total $ 8 $ 15 $ 56 $ (32) The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows: Three Months Ended July 28, 2024 July 30, 2023 Derivatives in Cash Flow Hedging Relationships Derivatives in Cash Flow Hedging Relationships Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing (In millions) Foreign Exchange Contracts: Net revenue $ 6,778 $ 7 $ — $ 6,425 $ 8 $ — Cost of products sold $ 3,573 (3) — $ 3,449 — — Research, development and engineering $ 836 (2) — $ 767 (5) — Marketing and selling $ 205 — — $ 193 (1) — General and administrative $ 222 (1) — $ 214 (1) — Interest Rate Contracts: Interest expense $ 63 (3) — $ 60 (4) — $ (2) $ — $ (3) $ — Nine Months Ended July 28, 2024 July 30, 2023 Derivatives in Cash Flow Hedging Relationships Derivatives in Cash Flow Hedging Relationships Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing (In millions) Foreign Exchange Contracts: Net sales $ 20,131 $ 21 $ (1) $ 19,794 $ 47 $ — Cost of products sold $ 10,569 (4) — $ 10,579 2 — Research, development and engineering $ 2,375 (6) — $ 2,313 (8) — Marketing and selling $ 621 (1) — $ 584 (1) — General and administrative $ 745 (1) — $ 635 (2) — Interest Rate Contracts: Interest expense $ 181 (9) — $ 180 (10) — $ — $ (1) $ 28 $ — Amount of Gain or (Loss) Three Months Ended Nine Months Ended Location of Gain or July 28, July 30, July 28, July 30, (In millions) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Interest and other income, net $ 2 $ 11 $ 20 $ (25) Total return swaps - deferred compensation Cost of products sold 1 2 5 3 Total return swaps - deferred compensation Operating expenses 16 15 55 29 Total return swaps - deferred compensation Interest and other income, net (4) (4) (11) (8) Total $ 15 $ 24 $ 69 $ (1) Credit Risk Contingent Features If our credit rating were to fall below investment grade, we 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 July 28, 2024. Entering into derivative contracts with banks exposes us to credit-related losses in the event of the banks’ nonperformance. However, our exposure is not considered significant. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Jul. 28, 2024 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount 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. We sold $131 million and $395 million of account receivables during the three and nine months ended July 28, 2024, respectively. We sold $90 million and $619 million of account receivables during the three and nine months ended July 30, 2023, respectively. We did not discount letters of credit issued by customers or discount promissory notes during the three and nine months ended July 28, 2024 and July 30, 2023. 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 credit losses of $29 million as of July 28, 2024 and as of October 29, 2023. We sell our products principally to manufacturers within the semiconductor and display industries. While we believe that our allowance for credit losses is adequate and represents our best estimate as of July 28, 2024, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to our estimates. |
Contract Balances and Performan
Contract Balances and Performance Obligations | 9 Months Ended |
Jul. 28, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances and Performance Obligations | Contract Balances and Performance Obligations Contract Assets and Liabilities Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Condensed Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized. Contract balances at the end of each reporting period were as follows: July 28, 2024 October 29, 2023 (In millions) Contract assets $ 324 $ 274 Contract liabilities $ 2,742 $ 2,975 The increase in contract assets during the nine months ended July 28, 2024 was primarily due to an increase in unsatisfied performance obligations related to goods transferred to customers where payment was conditional upon technical sign off. During the nine months ended July 28, 2024, we recognized revenue of approximately $2.5 billion related to contract liabilities at October 29, 2023. Contract liabilities decreased during the nine months ended July 28, 2024 due to revenue recognized related to contract liabilities at October 29, 2023, partially offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of July 28, 2024. There were no credit losses recognized on our accounts receivables and contract assets during both the nine months ended July 28, 2024 and July 30, 2023. Performance Obligations As of July 28, 2024, the amount of remaining unsatisfied performance obligations on contracts, primarily consisting of written purchase orders received from customers, with an original estimated duration of one year or more was approximately $4.2 billion, of which approximately 63% is expected to be recognized within 12 months and the remainder is expected to be recognized within the following 24 months thereafter. We have elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. |
Balance Sheet Detail
Balance Sheet Detail | 9 Months Ended |
Jul. 28, 2024 | |
Balance Sheet Detail [Abstract] | |
Balance Sheet Detail | Balance Sheet Detail July 28, October 29, (In millions) Inventories Customer service spares $ 1,727 $ 1,589 Raw materials 1,688 1,653 Work-in-process 945 997 Finished goods Deferred cost of sales 267 413 Evaluation inventory 487 423 Manufactured on-hand inventory 454 650 Total finished goods 1,208 1,486 Total inventories $ 5,568 $ 5,725 July 28, October 29, (In millions) Other Current Assets Prepaid income taxes and income taxes receivable $ 51 $ 412 Prepaid expenses and other 979 976 $ 1,030 $ 1,388 Useful Life July 28, October 29, (In years) (In millions) Property, Plant and Equipment, Net Land and improvements $ 436 $ 393 Buildings and improvements 3-30 2,314 2,194 Demonstration and manufacturing equipment 5-8 2,573 2,353 Furniture, fixtures and other equipment 3-5 806 762 Construction in progress 828 672 Gross property, plant and equipment 6,957 6,374 Accumulated depreciation (3,857) (3,651) $ 3,100 $ 2,723 July 28, October 29, (In millions) Deferred Income Taxes and Other Assets Non-current deferred income taxes $ 2,107 $ 1,729 Operating lease right-of-use assets 355 370 Finance lease right-of-use assets 91 108 Income tax receivables and other assets 348 345 $ 2,901 $ 2,552 July 28, October 29, (In millions) Accounts Payable and Accrued Expenses Accounts payable $ 1,470 $ 1,478 Compensation and employee benefits 995 1,024 Warranty 347 332 Dividends payable 330 267 Income taxes payable 365 282 Other accrued taxes 74 65 Interest payable 59 38 Operating lease liabilities, current 86 84 Finance lease liabilities, current 89 102 Other 572 625 $ 4,387 $ 4,297 July 28, October 29, (In millions) Other Liabilities Defined and postretirement benefit plans $ 121 $ 126 Operating lease liabilities, non-current 239 252 Other 390 336 $ 750 $ 714 Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Condensed Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Condensed Statements of Operations as the expenditure for which the grant is intended to compensate. Capital expenditure related incentives reduced gross property, plant and equipment, net |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jul. 28, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and 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. Goodwill As of July 28, 2024, our reporting units include Semiconductor Products Group and Imaging and Process Control Group, Applied Global Services, Display and Adjacent Markets and other reporting units recorded under Corporate and Other. The Semiconductor Products Group and Imaging and Process Control Group combine to form the Semiconductor Systems reporting segment. Details of goodwill as of July 28, 2024 and October 29, 2023 were as follows: July 28, October 29, (In millions) Goodwill by reportable segment Semiconductor Systems $ 2,460 $ 2,460 Applied Global Services 1,032 1,032 Display and Adjacent Markets 199 199 Corporate and Other 41 41 $ 3,732 $ 3,732 Intangible Assets Details of intangible assets other than goodwill were as follows: July 28, 2024 October 29, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Intangible assets with finite lives: Semiconductor Systems $ 2,001 $ (1,744) $ 257 $ 2,001 $ (1,714) $ 287 Applied Global Services 79 (79) — 79 (78) 1 Display and Adjacent Markets 194 (194) — 194 (194) — Corporate and Other 37 (32) 5 36 (30) 6 Total intangible assets with finite lives $ 2,311 $ (2,049) $ 262 $ 2,310 $ (2,016) $ 294 Amortization expense of intangible assets was $11 million and $33 million during the three and nine months ended July 28, 2024, respectively. Amortization expense of intangible assets was $11 million and $34 million during the three and nine months ended July 30, 2023, respectively. As of July 28, 2024, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: Amortization Expense (In millions) 2024 (remaining 3 months) $ 10 2025 41 2026 40 2027 26 2028 23 Thereafter 122 Total $ 262 |
Borrowing Facilities and Debt
Borrowing Facilities and Debt | 9 Months Ended |
Jul. 28, 2024 | |
Debt Disclosure [Abstract] | |
Borrowing Facilities and Debt | Borrowing Facilities and Debt Revolving Credit Facilities In February 2020, we entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which we may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2026, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by us, plus an applicable margin, which varies according to our public debt credit ratings. No amounts were outstanding under the Revolving Credit Agreement as of July 28, 2024 and October 29, 2023. In addition, we have revolving credit facilities with Japanese banks pursuant to which we may borrow up to approximately $52 million in aggregate at any time. Our 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. As of July 28, 2024 and October 29, 2023, no amounts were outstanding under these revolving credit facilities. Short-term Commercial Paper We have a short-term commercial paper program under which we may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. The proceeds from the issuances of commercial paper are used for general corporate purposes. As of July 28, 2024, we had commercial paper notes outstanding with an aggregate principal amount of $100 million, which were recorded as short-term debt with a weighted-average interest rate of 5.34% and maturities of 98 days, and as of October 29, 2023, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.39% and maturities of 90 days. Senior Unsecured Notes In June 2024, we issued $700 million aggregate principal amount of 4.800% senior unsecured notes due 2029 in a registered public offering. The proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes. Debt outstanding as of July 28, 2024 and October 29, 2023 was as follows: Principal Amount July 28, October 29, Effective Interest (In millions) Long-term debt: 3.900% Senior Notes Due 2025 $ 700 $ 700 3.944% April 1, October 1 3.300% Senior Notes Due 2027 1,200 1,200 3.342% April 1, October 1 4.800% Senior Notes Due 2029 700 — 4.844% June 15, December 15 1.750% Senior Notes Due 2030 750 750 1.792% June 1, December 1 5.100% Senior Notes Due 2035 500 500 5.127% April 1, October 1 5.850% Senior Notes Due 2041 600 600 5.879% June 15, December 15 4.350% Senior Notes Due 2047 1,000 1,000 4.361% April 1, October 1 2.750% Senior Notes Due 2050 750 750 2.773% June 1, December 1 6,200 5,500 Total unamortized discount (11) (11) Total unamortized debt issuance costs (31) (28) Total long-term debt $ 6,158 $ 5,461 |
Leases
Leases | 9 Months Ended |
Jul. 28, 2024 | |
Leases [Abstract] | |
Leases | Leases A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset. We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. The components of lease expense and supplemental information were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions, except percentages) Operating lease cost $ 27 $ 25 $ 81 $ 78 Finance lease cost: Amortization of right-of-use assets $ 1 $ — $ 2 $ 1 Interest on lease liabilities $ 1 $ 1 $ 3 $ 2 Weighted-average remaining lease term (in years) - operating leases 5.5 5.8 Weighted-average remaining lease term (in years) - finance leases 0.2 1.1 Weighted-average discount rate - operating leases 3.2% 2.9% Weighted-average discount rate - finance leases 4.6% 4.6% Supplemental cash flow information related to leases are as follows: Nine Months Ended July 28, July 30, (In millions) Operating cash flows paid for operating leases $ 80 $ 89 Operating cash flows paid for finance leases $ 3 $ 2 Financing cash flows paid for finance leases $ 12 $ 8 Right-of-use assets obtained in exchange for operating lease liabilities $ 73 $ 83 Right-of-use assets obtained in exchange for finance lease liabilities $ — $ 109 As of July 28, 2024, the maturities of lease liabilities are as follows: Operating Leases Finance Leases Fiscal (In millions) 2024 (remaining 3 months) $ 21 $ 90 2025 96 — 2026 60 — 2027 47 — 2028 39 — Thereafter 93 — Total lease payments $ 356 $ 90 Less imputed interest (31) (1) Total $ 325 $ 89 |
Leases | Leases A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset. We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. The components of lease expense and supplemental information were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions, except percentages) Operating lease cost $ 27 $ 25 $ 81 $ 78 Finance lease cost: Amortization of right-of-use assets $ 1 $ — $ 2 $ 1 Interest on lease liabilities $ 1 $ 1 $ 3 $ 2 Weighted-average remaining lease term (in years) - operating leases 5.5 5.8 Weighted-average remaining lease term (in years) - finance leases 0.2 1.1 Weighted-average discount rate - operating leases 3.2% 2.9% Weighted-average discount rate - finance leases 4.6% 4.6% Supplemental cash flow information related to leases are as follows: Nine Months Ended July 28, July 30, (In millions) Operating cash flows paid for operating leases $ 80 $ 89 Operating cash flows paid for finance leases $ 3 $ 2 Financing cash flows paid for finance leases $ 12 $ 8 Right-of-use assets obtained in exchange for operating lease liabilities $ 73 $ 83 Right-of-use assets obtained in exchange for finance lease liabilities $ — $ 109 As of July 28, 2024, the maturities of lease liabilities are as follows: Operating Leases Finance Leases Fiscal (In millions) 2024 (remaining 3 months) $ 21 $ 90 2025 96 — 2026 60 — 2027 47 — 2028 39 — Thereafter 93 — Total lease payments $ 356 $ 90 Less imputed interest (31) (1) Total $ 325 $ 89 |
Stockholders' Equity, Comprehen
Stockholders' Equity, Comprehensive Income and Share-Based Compensation | 9 Months Ended |
Jul. 28, 2024 | |
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 accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows: Unrealized Gain (Loss) on Investments, Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges Defined and Postretirement Benefit Plans Cumulative Translation Adjustments Total (in millions) Balance as of October 29, 2023 $ (50) $ (118) $ (62) $ 13 $ (217) Other comprehensive income (loss) before reclassifications 27 44 — — 71 Amounts reclassified out of AOCI 9 — (9) — — Other comprehensive income (loss), net of tax 36 44 (9) — 71 Balance as of July 28, 2024 $ (14) $ (74) $ (71) $ 13 $ (146) Unrealized Gain (Loss) on Investments, Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges Defined and Postretirement Benefit Plans Cumulative Translation Adjustments Total (in millions) Balance as of October 30, 2022 $ (75) $ (52) $ (88) $ 13 $ (202) Other comprehensive income (loss) before reclassifications 16 (25) — — (9) Amounts reclassified out of AOCI 9 (21) — — (12) Other comprehensive income (loss), net of tax 25 (46) — — (21) Balance as of July 30, 2023 $ (50) $ (98) $ (88) $ 13 $ (223) The tax effects on net income of amounts reclassified from AOCI for the three and nine months ended July 28, 2024 and July 30, 2023 were not material. Stock Repurchase Program In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. As of July 28, 2024, approximately $10.3 billion remained available for future stock repurchases under the repurchase program. The following table summarizes our stock repurchases, including and excluding excise tax, for the three and nine months ended July 28, 2024 and July 30, 2023: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (in millions, except per share amount) Shares of common stock repurchased 4 4 13 13 Cost of stock repurchased (including excise tax) * $ 868 $ 443 $ 2,398 $ 1,497 Average price paid per share (including excise tax) * $ 222.82 $ 131.09 $ 189.90 $ 117.35 Cost of stock repurchased (excluding excise tax) $ 861 $ 439 $ 2,381 $ 1,489 Average price paid per share (excluding excise tax) $ 221.27 $ 129.86 $ 188.60 $ 116.70 (*) Stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. We record 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 we reissue treasury stock at an amount below our 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 June 2024, March 2024 and December 2023, our Board of Directors declared quarterly cash dividends in the amount of $0.40, $0.40 and $0.32 per share, respectively. The dividend declared in June 2024 is payable in September 2024. Dividends paid during the nine months ended July 28, 2024 and July 30, 2023 totaled $863 million and $707 million, respectively. We currently anticipate 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 our 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 our stockholders. Share-Based Compensation We have a stockholder-approved equity plan, the Employee Stock Incentive Plan (ESIP), which permits grants to employees of share-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units 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 under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control. In addition, we have an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase our common stock. During the three and nine months ended July 28, 2024 and July 30, 2023, we recognized share-based compensation expense related to equity awards and ESPP shares. The effect of share-based compensation on the results of operations was as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Cost of products sold $ 33 $ 42 $ 98 $ 138 Research, development and engineering 53 42 163 137 Marketing and selling 17 13 53 42 General and administrative 29 17 122 58 Total share-based compensation $ 132 $ 114 $ 436 $ 375 The cost associated with share-based awards is typically recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. However, in the case of share-based awards granted to certain members of senior management that allow for partial accelerated vesting in the event of a qualifying retirement based on age and years of service, the compensation expense is recognized once the individual meets the conditions for a qualifying retirement. We calculate estimated forfeiture rate on an annual basis, based on historical forfeiture activities. The cost associated with performance-based equity awards, which include performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal. As of July 28, 2024, we had $977 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards under the ESIP and shares issued under the ESPP, which will be recognized over a weighted average period of 2.7 years. As of July 28, 2024, there were 21 million shares available for grant of share-based awards under the ESIP, and an additional 11 million shares available for issuance under the ESPP. Restricted Stock Units, Restricted Stock, Performance Share Units and Performance Units A summary of the changes in restricted stock units, restricted stock, performance share units and performance units outstanding under our equity compensation plans during the nine months ended July 28, 2024 is presented below: Shares Weighted Average (In millions, except per share amounts) Outstanding as of October 29, 2023 12 $ 106.24 Granted 4 $ 148.07 Vested (4) $ 97.11 Canceled (1) $ 119.91 Outstanding as of July 28, 2024 11 $ 127.04 As of July 28, 2024, 0.7 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance and/or market goals. During the first half of fiscal 2024, certain members of senior management were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor's 500 Index. Each of these two metrics will be weighted 50% and will be measured over a three-year period. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by us through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial vesting based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement. The fair value of the portion of the awards subject to targeted levels of relative TSR is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. Employee Stock Purchase Plans Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of our common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Our purchasing cycles begin in March and September of each of fiscal year. We issued a total of 1 million shares in each of the nine months ended July 28, 2024 and July 30, 2023. 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: Nine Months Ended July 28, July 30, Dividend yield 0.76% 1.09% Expected volatility 35.6% 43.3% Risk-free interest rate 5.27% 5.14% Expected life (in years) 0.5 0.5 Weighted average estimated fair value $53.98 $32.47 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 28, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Our effective tax rates for the third quarter of fiscal 2024 and 2023 were 13.0 percent and 13.6 percent, respectively. The effective tax rate for the third quarter of fiscal 2024 was lower than the same period in the prior fiscal year primarily due to larger excess tax benefits from share-based compensation in fiscal 2024. Our effective tax rates for the first nine months of fiscal 2024 and 2023 were 13.0 percent and 12.5 percent, respectively. The effective tax rate for the first nine months of fiscal 2024 was higher than the same period in the prior fiscal year primarily due to lower tax credits in fiscal 2024, partially offset by larger excess tax benefits from share-based compensation in fiscal 2024. |
Warranty, Guarantees, Commitmen
Warranty, Guarantees, Commitments and Contingencies | 9 Months Ended |
Jul. 28, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty, Guarantees, Commitments and Contingencies | Warranty, Guarantees, Commitments and Contingencies Warranty Changes in the warranty reserves are presented below: Three Months Ended Nine Months Ended July 28 July 30 July 28 July 30 (In millions) Beginning balance $ 346 $ 310 $ 332 $ 286 Provisions for warranty 62 62 181 186 Changes in reserves related to preexisting warranty (8) (2) (14) — Consumption of reserves (53) (57) (152) (159) Ending balance $ 347 $ 313 $ 347 $ 313 Our 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, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. As of July 28, 2024, the maximum potential amount of future payments that we could be required to make under these guarantee agreements was approximately $308 million. We have not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. We do 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. We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of July 28, 2024, we have provided parent guarantees to banks for approximately $292 million to cover these arrangements. Legal Matters From time to time, we receive notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by us in connection with claims made against them. In addition, from time to time, we receive notification from third parties claiming that we may be or are infringing or misusing their intellectual property or other rights. We also are subject to various legal proceedings, government investigations or inquiries, and claims, both asserted and unasserted, that arise in the ordinary course of business. These matters are subject to uncertainties, and we cannot predict the outcome of these matters, or governmental inquiries or proceedings that may occur. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, we do not believe at this time that any of the above-described matters will have a material effect on our consolidated financial condition or results of operations. Since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and Security, and the U.S. Securities and Exchange Commission. We also have received subpoenas from the U.S. Department of Justice requesting information related to certain federal award applications and information submitted to the federal government. We are cooperating fully with the U.S. government in these matters. We have continued to receive related subpoenas, as well as requests for information, and may in the future receive additional related subpoenas and requests for information from such or other government authorities. Any such matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters. |
Industry Segment Operations
Industry Segment Operations | 9 Months Ended |
Jul. 28, 2024 | |
Segment Reporting [Abstract] | |
Industry Segment Operations | Industry Segment Operations Our three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. Segment information is presented based upon our management organization structure as of July 28, 2024 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments. The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200mm generation equipment and factory automation software for semiconductor, display and other products. The Display and Adjacent Markets segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells. Each operating segment is separately managed and has separate financial results that are reviewed by our chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by our chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information. We derive the segment results directly from our internal management reporting system. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation. The accounting policies we use to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net revenue and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Corporate and Other category includes revenues from products, as well as costs of products sold, for fabricating solar photovoltaic cells and modules, and certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs related to certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments restructuring, severance and asset impairment charges and any associated adjustments related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Management does not consider the unallocated costs in measuring the performance of the reportable segments. Net revenue and operating income (loss) for each reportable segment were as follows: Three Months Ended Nine Months Ended Net Revenue Operating Net Revenue Operating (In millions) July 28, 2024: Semiconductor Systems $ 4,924 $ 1,712 $ 14,734 $ 5,157 Applied Global Services 1,580 467 4,586 1,320 Display and Adjacent Markets 251 16 674 46 Corporate and Other 23 (253) 137 (702) Total $ 6,778 $ 1,942 $ 20,131 $ 5,821 July 30, 2023: Semiconductor Systems $ 4,676 $ 1,568 $ 14,815 $ 5,138 Applied Global Services 1,464 399 4,261 1,128 Display and Adjacent Markets 235 32 570 51 Corporate and Other 50 (197) 148 (634) Total $ 6,425 $ 1,802 $ 19,794 $ 5,683 Semiconductor Systems and Display and Adjacent Markets revenues are recognized at a point in time. Applied Global Services revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception. Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows: Three Months Ended Nine Months Ended July 28, July 30, Change July 28, July 30, Change (In millions, except percentages) China $ 2,153 32 % $ 1,734 27 % 24 % $ 7,981 40 % $ 4,284 22 % 86 % Korea 1,102 16 % 988 15 % 12 % 3,321 16 % 3,864 19 % (14) % Taiwan 1,148 17 % 1,345 21 % (15) % 2,726 14 % 4,748 24 % (43) % Japan 555 8 % 478 8 % 16 % 1,573 8 % 1,394 7 % 13 % Southeast Asia 428 6 % 180 3 % 138 % 827 4 % 590 3 % 40 % Asia Pacific 5,386 79 % 4,725 74 % 14 % 16,428 82 % 14,880 75 % 10 % United States 1,053 16 % 1,039 16 % 1 % 2,665 13 % 3,203 16 % (17) % Europe 339 5 % 661 10 % (49) % 1,038 5 % 1,711 9 % (39) % Total $ 6,778 100 % $ 6,425 100 % 5 % $ 20,131 100 % $ 19,794 100 % 2 % Net revenue for Semiconductor Systems by end use application for the periods indicated were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, Foundry, logic and other 72 % 79 % 66 % 80 % Dynamic random-access memory (DRAM) 24 % 17 % 30 % 14 % Flash memory 4 % 4 % 4 % 6 % 100 % 100 % 100 % 100 % The reconciling items included in Corporate and Other were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Unallocated net revenue $ 23 $ 50 $ 137 $ 148 Unallocated cost of products sold and expenses (276) (247) (839) (782) Total $ (253) $ (197) $ (702) $ (634) The following customer accounted for at least 10 percent of our net revenue for the nine months ended July 28, 2024, and sales to this customer included products and services from multiple reportable segments. Percentage of Net Revenue Samsung Electronics Co., Ltd. 12 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 1,705 | $ 1,560 | $ 5,446 | $ 4,852 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 28, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jul. 28, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of our management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (we, us, and our) included herein have been prepared on a basis consistent with the October 29, 2023 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly state 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 our Annual Report on Form 10-K for the fiscal year ended October 29, 2023 (2023 Form 10-K). 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. Our results of operations for the three and nine months ended July 28, 2024 are not necessarily indicative of future operating results. Our fiscal year ends on the last Sunday in October of each year. Fiscal 2024 and 2023 contain 52 weeks each and the first nine months of fiscal 2024 and 2023 each contained 39 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, we evaluate our estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property, plant and equipment, fair values of share-based awards, warranty, and income taxes, among others. We base our 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. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant, and equipment effective as of the beginning of fiscal 2024, we have increased the estimated useful lives of certain assets. The updated estimated useful lives for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to between 5 to 8 years. The estimated useful lives for the remaining asset categories remained unchanged from fiscal 2023. |
Recent Accounting Pronouncements | Accounting Standards Adopted Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this authoritative guidance in the first quarter of fiscal 2024 and the impact of the adoption depends on the facts and circumstances of future acquisitions. Accounting Standards Not Yet Adopted Improvements to Income Tax Disclosures . In December 2023, the FASB issued an accounting standard update to improve income tax disclosures (Topic 740). The standard prescribes specific categories for the components of the effective tax rate reconciliation, requires disclosure of income taxes paid by jurisdiction, and modifies other income tax-related disclosures. This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are evaluating the effect of this new guidance on our consolidated financial statements and related disclosures. Improvements to Reportable Segment Disclosures . In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280). The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements. This authoritative guidance will be effective for us in fiscal 2025 for annual periods and in the first quarter of fiscal 2026 for interim periods, with early adoption permitted. We are evaluating the effect of this new guidance on our consolidated financial statements and related disclosures. Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for us in the first quarter of fiscal 2025, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements. |
Fair Value Measurements | Our financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Our nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Fair Value Hierarchy We use 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. Our investments consist primarily of debt securities that are classified as available-for-sale and recorded at their fair values. In determining the fair value of investments, we use 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, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 28, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. |
Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis | Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies were not material during the three and nine months ended July 28, 2024. Impairment losses on equity investments in privately held companies were not material during the three months ended July 30, 2023 and were $119 million during the nine months ended July 30, 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Condensed Statement of Operations. |
Derivative Financial Instruments | We do not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge accounting treatment are recognized currently in earnings. All of our derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Foreign currency forward contracts are generally used to hedge certain foreign currency denominated assets or liabilities. 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. |
Contract Assets and Liabilities | Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Condensed Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized. |
Government Assistance | We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. |
Goodwill and Intangible Assets | Goodwill and 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. Goodwill As of July 28, 2024, our reporting units include Semiconductor Products Group and Imaging and Process Control Group, Applied Global Services, Display and Adjacent Markets and other reporting units recorded under Corporate and Other. The Semiconductor Products Group and Imaging and Process Control Group combine to form the Semiconductor Systems reporting segment. |
Leases | A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset. We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. |
Treasury Stock | We record 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 we reissue treasury stock at an amount below our 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 Compensation | The cost associated with share-based awards is typically recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. However, in the case of share-based awards granted to certain members of senior management that allow for partial accelerated vesting in the event of a qualifying retirement based on age and years of service, the compensation expense is recognized once the individual meets the conditions for a qualifying retirement. We calculate estimated forfeiture rate on an annual basis, based on historical forfeiture activities. The cost associated with performance-based equity awards, which include performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal. |
Performance Based Awards | During the first half of fiscal 2024, certain members of senior management were granted awards that are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor's 500 Index. Each of these two metrics will be weighted 50% and will be measured over a three-year period. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by us through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial vesting based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement. The fair value of the portion of the awards subject to targeted levels of relative TSR is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the awards subject to targeted levels of adjusted operating margin is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. |
Warranty | Our 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 Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions, except per share amounts) Numerator: Net income $ 1,705 $ 1,560 $ 5,446 $ 4,852 Denominator: Weighted average common shares outstanding 826 838 829 842 Effect of weighted dilutive restricted stock units and employee stock purchase plan shares 7 5 6 4 Denominator for diluted earnings per share 833 843 835 846 Basic earnings per share $ 2.06 $ 1.86 $ 6.57 $ 5.76 Diluted earnings per share $ 2.05 $ 1.85 $ 6.52 $ 5.73 Potentially weighted dilutive securities — — — 2 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | The following tables summarize our cash, cash equivalents and investments by security type: July 28, 2024 Cost Gross Gross Estimated (In millions) Cash $ 1,318 $ — $ — $ 1,318 Cash equivalents: Money market funds * 2,828 — — 2,828 Bank certificates of deposit and time deposits 20 — — 20 U.S. Treasury and agency securities 2,291 — — 2,291 Municipal securities 73 — — 73 Commercial paper, corporate bonds and medium-term notes 1,758 — — 1,758 Total cash equivalents 6,970 — — 6,970 Total cash and cash equivalents $ 8,288 $ — $ — $ 8,288 Short-term and long-term investments: Bank certificates of deposit and time deposits $ 19 $ — $ — $ 19 U.S. Treasury and agency securities 641 1 2 640 Non-U.S. government securities ** 5 — — 5 Municipal securities 445 2 4 443 Commercial paper, corporate bonds and medium-term notes 816 2 3 815 Asset-backed and mortgage-backed securities 632 1 6 627 Total fixed income securities 2,558 6 15 2,549 Publicly traded equity securities 543 422 3 962 Equity investments in privately held companies 246 58 19 285 Total equity investments 789 480 22 1,247 Total short-term and long-term investments $ 3,347 $ 486 $ 37 $ 3,796 Total cash, cash equivalents and investments $ 11,635 $ 486 $ 37 $ 12,084 _________________________ *Excludes $90 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. October 29, 2023 Cost Gross Gross Estimated (In millions) Cash $ 1,417 $ — $ — $ 1,417 Cash equivalents: Money market funds * 3,260 — — 3,260 Municipal securities 26 — — 26 Commercial paper, corporate bonds and medium-term notes 1,429 — — 1,429 Total cash equivalents 4,715 — — 4,715 Total cash and cash equivalents $ 6,132 $ — $ — $ 6,132 Short-term and long-term investments: Bank certificates of deposit and time deposits $ 18 $ — $ — $ 18 U.S. Treasury and agency securities 381 — 7 374 Non-U.S. government securities ** 7 — 1 6 Municipal securities 438 — 11 427 Commercial paper, corporate bonds and medium-term notes 760 — 12 748 Asset-backed and mortgage-backed securities 502 — 15 487 Total fixed income securities 2,106 — 46 2,060 Publicly traded equity securities 543 171 16 698 Equity investments in privately held companies 192 78 10 260 Total equity investments 735 249 26 958 Total short-term and long-term investments $ 2,841 $ 249 $ 72 $ 3,018 Total cash, cash equivalents and investments $ 8,973 $ 249 $ 72 $ 9,150 _________________________ *Excludes $101 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. |
Schedule of Contractual Maturities of Investments | The following table summarizes the contractual maturities of our investments as of July 28, 2024: Cost Estimated (In millions) Due in one year or less $ 798 $ 796 Due after one through five years 1,124 1,122 Due after five years 4 4 No single maturity date* 1,421 1,874 Total $ 3,347 $ 3,796 _________________________ *Securities with no single maturity date include publicly traded and privately held equity securities and asset-backed and mortgage-backed securities. |
Schedule of Components of Gain (Loss) on Equity Investment | The components of gain (loss) on equity investments for the three and nine months ended July 28, 2024 and July 30, 2023 were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Publicly traded equity securities Unrealized gain $ 6 $ 12 $ 318 $ 31 Unrealized loss (30) (1) (33) (28) Realized gain on sales and dividends 3 4 5 5 Realized loss on sales or impairment — — (1) (2) Equity investments in privately held companies Unrealized gain 1 1 2 13 Unrealized loss (2) (18) (12) (29) Realized gain on sales and dividends — 2 3 7 Realized loss on sales or impairment (19) (2) (19) (119) Total gain (loss) on equity investments, net $ (41) $ (2) $ 263 $ (122) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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: July 28, 2024 October 29, 2023 Level 1 Level 2 Total Level 1 Level 2 Total (In millions) Assets: Available-for-sale debt security investments Money market funds* $ 2,918 $ — $ 2,918 $ 3,361 $ — $ 3,361 Bank certificates of deposit and time deposits — 39 39 — 18 18 U.S. Treasury and agency securities 2,909 22 2,931 331 43 374 Non-U.S. government securities — 5 5 — 6 6 Municipal securities — 516 516 — 453 453 Commercial paper, corporate bonds and medium-term notes — 2,573 2,573 — 2,177 2,177 Asset-backed and mortgage-backed securities — 627 627 — 487 487 Total available-for-sale debt security investments $ 5,827 $ 3,782 $ 9,609 $ 3,692 $ 3,184 $ 6,876 Equity investments with readily determinable values Publicly traded equity securities $ 962 $ — $ 962 $ 698 $ — $ 698 Total equity investments with readily determinable values $ 962 $ — $ 962 $ 698 $ — $ 698 Total $ 6,789 $ 3,782 $ 10,571 $ 4,390 $ 3,184 $ 7,574 _________________________ deferred income taxes and other assets |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments for the indicated periods were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 16 $ 15 $ 44 $ (32) Interest rate contracts (8) — 12 — Total $ 8 $ 15 $ 56 $ (32) |
Schedule of Effect of Derivative Instruments on the Consolidated Statement of Operations | The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows: Three Months Ended July 28, 2024 July 30, 2023 Derivatives in Cash Flow Hedging Relationships Derivatives in Cash Flow Hedging Relationships Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing (In millions) Foreign Exchange Contracts: Net revenue $ 6,778 $ 7 $ — $ 6,425 $ 8 $ — Cost of products sold $ 3,573 (3) — $ 3,449 — — Research, development and engineering $ 836 (2) — $ 767 (5) — Marketing and selling $ 205 — — $ 193 (1) — General and administrative $ 222 (1) — $ 214 (1) — Interest Rate Contracts: Interest expense $ 63 (3) — $ 60 (4) — $ (2) $ — $ (3) $ — Nine Months Ended July 28, 2024 July 30, 2023 Derivatives in Cash Flow Hedging Relationships Derivatives in Cash Flow Hedging Relationships Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing Total Amount Presented in the Consolidated Condensed Statement of Operations in which the Effects of Cash Flow Hedges are Recorded Amount of Gain or (Loss) Amount of Gain (Loss) Excluded from Effectiveness Testing (In millions) Foreign Exchange Contracts: Net sales $ 20,131 $ 21 $ (1) $ 19,794 $ 47 $ — Cost of products sold $ 10,569 (4) — $ 10,579 2 — Research, development and engineering $ 2,375 (6) — $ 2,313 (8) — Marketing and selling $ 621 (1) — $ 584 (1) — General and administrative $ 745 (1) — $ 635 (2) — Interest Rate Contracts: Interest expense $ 181 (9) — $ 180 (10) — $ — $ (1) $ 28 $ — |
Schedule of Derivatives Not Designated as Hedging Instruments in Statement of Operations | Amount of Gain or (Loss) Three Months Ended Nine Months Ended Location of Gain or July 28, July 30, July 28, July 30, (In millions) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Interest and other income, net $ 2 $ 11 $ 20 $ (25) Total return swaps - deferred compensation Cost of products sold 1 2 5 3 Total return swaps - deferred compensation Operating expenses 16 15 55 29 Total return swaps - deferred compensation Interest and other income, net (4) (4) (11) (8) Total $ 15 $ 24 $ 69 $ (1) |
Contract Balances and Perform_2
Contract Balances and Performance Obligations (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | Contract balances at the end of each reporting period were as follows: July 28, 2024 October 29, 2023 (In millions) Contract assets $ 324 $ 274 Contract liabilities $ 2,742 $ 2,975 |
Balance Sheet Detail (Tables)
Balance Sheet Detail (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Balance Sheet Detail [Abstract] | |
Schedule of Inventories | July 28, October 29, (In millions) Inventories Customer service spares $ 1,727 $ 1,589 Raw materials 1,688 1,653 Work-in-process 945 997 Finished goods Deferred cost of sales 267 413 Evaluation inventory 487 423 Manufactured on-hand inventory 454 650 Total finished goods 1,208 1,486 Total inventories $ 5,568 $ 5,725 |
Schedule of Other Current Assets | July 28, October 29, (In millions) Other Current Assets Prepaid income taxes and income taxes receivable $ 51 $ 412 Prepaid expenses and other 979 976 $ 1,030 $ 1,388 |
Schedule of Property, Plant and Equipment, Net | Useful Life July 28, October 29, (In years) (In millions) Property, Plant and Equipment, Net Land and improvements $ 436 $ 393 Buildings and improvements 3-30 2,314 2,194 Demonstration and manufacturing equipment 5-8 2,573 2,353 Furniture, fixtures and other equipment 3-5 806 762 Construction in progress 828 672 Gross property, plant and equipment 6,957 6,374 Accumulated depreciation (3,857) (3,651) $ 3,100 $ 2,723 |
Schedule of Deferred Income Taxes and Other Assets | July 28, October 29, (In millions) Deferred Income Taxes and Other Assets Non-current deferred income taxes $ 2,107 $ 1,729 Operating lease right-of-use assets 355 370 Finance lease right-of-use assets 91 108 Income tax receivables and other assets 348 345 $ 2,901 $ 2,552 |
Schedule of Accounts Payable and Accrued Expenses | July 28, October 29, (In millions) Accounts Payable and Accrued Expenses Accounts payable $ 1,470 $ 1,478 Compensation and employee benefits 995 1,024 Warranty 347 332 Dividends payable 330 267 Income taxes payable 365 282 Other accrued taxes 74 65 Interest payable 59 38 Operating lease liabilities, current 86 84 Finance lease liabilities, current 89 102 Other 572 625 $ 4,387 $ 4,297 |
Schedule of Other Liabilities | July 28, October 29, (In millions) Other Liabilities Defined and postretirement benefit plans $ 121 $ 126 Operating lease liabilities, non-current 239 252 Other 390 336 $ 750 $ 714 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Details of goodwill as of July 28, 2024 and October 29, 2023 were as follows: July 28, October 29, (In millions) Goodwill by reportable segment Semiconductor Systems $ 2,460 $ 2,460 Applied Global Services 1,032 1,032 Display and Adjacent Markets 199 199 Corporate and Other 41 41 $ 3,732 $ 3,732 |
Schedule of Finite-Lived Intangible Assets | Details of intangible assets other than goodwill were as follows: July 28, 2024 October 29, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Intangible assets with finite lives: Semiconductor Systems $ 2,001 $ (1,744) $ 257 $ 2,001 $ (1,714) $ 287 Applied Global Services 79 (79) — 79 (78) 1 Display and Adjacent Markets 194 (194) — 194 (194) — Corporate and Other 37 (32) 5 36 (30) 6 Total intangible assets with finite lives $ 2,311 $ (2,049) $ 262 $ 2,310 $ (2,016) $ 294 |
Schedule of Future Estimated Amortization Expense | As of July 28, 2024, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: Amortization Expense (In millions) 2024 (remaining 3 months) $ 10 2025 41 2026 40 2027 26 2028 23 Thereafter 122 Total $ 262 |
Borrowing Facilities and Debt (
Borrowing Facilities and Debt (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Outstanding | Debt outstanding as of July 28, 2024 and October 29, 2023 was as follows: Principal Amount July 28, October 29, Effective Interest (In millions) Long-term debt: 3.900% Senior Notes Due 2025 $ 700 $ 700 3.944% April 1, October 1 3.300% Senior Notes Due 2027 1,200 1,200 3.342% April 1, October 1 4.800% Senior Notes Due 2029 700 — 4.844% June 15, December 15 1.750% Senior Notes Due 2030 750 750 1.792% June 1, December 1 5.100% Senior Notes Due 2035 500 500 5.127% April 1, October 1 5.850% Senior Notes Due 2041 600 600 5.879% June 15, December 15 4.350% Senior Notes Due 2047 1,000 1,000 4.361% April 1, October 1 2.750% Senior Notes Due 2050 750 750 2.773% June 1, December 1 6,200 5,500 Total unamortized discount (11) (11) Total unamortized debt issuance costs (31) (28) Total long-term debt $ 6,158 $ 5,461 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense and supplemental information were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions, except percentages) Operating lease cost $ 27 $ 25 $ 81 $ 78 Finance lease cost: Amortization of right-of-use assets $ 1 $ — $ 2 $ 1 Interest on lease liabilities $ 1 $ 1 $ 3 $ 2 Weighted-average remaining lease term (in years) - operating leases 5.5 5.8 Weighted-average remaining lease term (in years) - finance leases 0.2 1.1 Weighted-average discount rate - operating leases 3.2% 2.9% Weighted-average discount rate - finance leases 4.6% 4.6% Supplemental cash flow information related to leases are as follows: Nine Months Ended July 28, July 30, (In millions) Operating cash flows paid for operating leases $ 80 $ 89 Operating cash flows paid for finance leases $ 3 $ 2 Financing cash flows paid for finance leases $ 12 $ 8 Right-of-use assets obtained in exchange for operating lease liabilities $ 73 $ 83 Right-of-use assets obtained in exchange for finance lease liabilities $ — $ 109 |
Schedule of Operating Lease, Maturities of Lease Liabilities | As of July 28, 2024, the maturities of lease liabilities are as follows: Operating Leases Finance Leases Fiscal (In millions) 2024 (remaining 3 months) $ 21 $ 90 2025 96 — 2026 60 — 2027 47 — 2028 39 — Thereafter 93 — Total lease payments $ 356 $ 90 Less imputed interest (31) (1) Total $ 325 $ 89 |
Schedule of Finance Lease Maturities | As of July 28, 2024, the maturities of lease liabilities are as follows: Operating Leases Finance Leases Fiscal (In millions) 2024 (remaining 3 months) $ 21 $ 90 2025 96 — 2026 60 — 2027 47 — 2028 39 — Thereafter 93 — Total lease payments $ 356 $ 90 Less imputed interest (31) (1) Total $ 325 $ 89 |
Stockholders' Equity, Compreh_2
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), After-Tax Basis | Changes in the components of accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows: Unrealized Gain (Loss) on Investments, Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges Defined and Postretirement Benefit Plans Cumulative Translation Adjustments Total (in millions) Balance as of October 29, 2023 $ (50) $ (118) $ (62) $ 13 $ (217) Other comprehensive income (loss) before reclassifications 27 44 — — 71 Amounts reclassified out of AOCI 9 — (9) — — Other comprehensive income (loss), net of tax 36 44 (9) — 71 Balance as of July 28, 2024 $ (14) $ (74) $ (71) $ 13 $ (146) Unrealized Gain (Loss) on Investments, Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges Defined and Postretirement Benefit Plans Cumulative Translation Adjustments Total (in millions) Balance as of October 30, 2022 $ (75) $ (52) $ (88) $ 13 $ (202) Other comprehensive income (loss) before reclassifications 16 (25) — — (9) Amounts reclassified out of AOCI 9 (21) — — (12) Other comprehensive income (loss), net of tax 25 (46) — — (21) Balance as of July 30, 2023 $ (50) $ (98) $ (88) $ 13 $ (223) |
Schedule of Stock Repurchases | The following table summarizes our stock repurchases, including and excluding excise tax, for the three and nine months ended July 28, 2024 and July 30, 2023: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (in millions, except per share amount) Shares of common stock repurchased 4 4 13 13 Cost of stock repurchased (including excise tax) * $ 868 $ 443 $ 2,398 $ 1,497 Average price paid per share (including excise tax) * $ 222.82 $ 131.09 $ 189.90 $ 117.35 Cost of stock repurchased (excluding excise tax) $ 861 $ 439 $ 2,381 $ 1,489 Average price paid per share (excluding excise tax) $ 221.27 $ 129.86 $ 188.60 $ 116.70 (*) Stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. |
Schedule of Effect of Share-Based Compensation on the Results of Operations | The effect of share-based compensation on the results of operations was as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Cost of products sold $ 33 $ 42 $ 98 $ 138 Research, development and engineering 53 42 163 137 Marketing and selling 17 13 53 42 General and administrative 29 17 122 58 Total share-based compensation $ 132 $ 114 $ 436 $ 375 |
Schedule of Restricted Stock Units And Restricted Stock Activity | A summary of the changes in restricted stock units, restricted stock, performance share units and performance units outstanding under our equity compensation plans during the nine months ended July 28, 2024 is presented below: Shares Weighted Average (In millions, except per share amounts) Outstanding as of October 29, 2023 12 $ 106.24 Granted 4 $ 148.07 Vested (4) $ 97.11 Canceled (1) $ 119.91 Outstanding as of July 28, 2024 11 $ 127.04 |
Schedule of Employee Stock Purchase Plan | Underlying assumptions used in the model are outlined in the following table: Nine Months Ended July 28, July 30, Dividend yield 0.76% 1.09% Expected volatility 35.6% 43.3% Risk-free interest rate 5.27% 5.14% Expected life (in years) 0.5 0.5 Weighted average estimated fair value $53.98 $32.47 |
Warranty, Guarantees, Commitm_2
Warranty, Guarantees, Commitments and Contingencies (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in the Warranty Reserves | Changes in the warranty reserves are presented below: Three Months Ended Nine Months Ended July 28 July 30 July 28 July 30 (In millions) Beginning balance $ 346 $ 310 $ 332 $ 286 Provisions for warranty 62 62 181 186 Changes in reserves related to preexisting warranty (8) (2) (14) — Consumption of reserves (53) (57) (152) (159) Ending balance $ 347 $ 313 $ 347 $ 313 |
Industry Segment Operations (Ta
Industry Segment Operations (Tables) | 9 Months Ended |
Jul. 28, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales and Operating Income (Loss) | Net revenue and operating income (loss) for each reportable segment were as follows: Three Months Ended Nine Months Ended Net Revenue Operating Net Revenue Operating (In millions) July 28, 2024: Semiconductor Systems $ 4,924 $ 1,712 $ 14,734 $ 5,157 Applied Global Services 1,580 467 4,586 1,320 Display and Adjacent Markets 251 16 674 46 Corporate and Other 23 (253) 137 (702) Total $ 6,778 $ 1,942 $ 20,131 $ 5,821 July 30, 2023: Semiconductor Systems $ 4,676 $ 1,568 $ 14,815 $ 5,138 Applied Global Services 1,464 399 4,261 1,128 Display and Adjacent Markets 235 32 570 51 Corporate and Other 50 (197) 148 (634) Total $ 6,425 $ 1,802 $ 19,794 $ 5,683 |
Schedule of Revenue From External Customers by Geographic Areas | Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped to, were as follows: Three Months Ended Nine Months Ended July 28, July 30, Change July 28, July 30, Change (In millions, except percentages) China $ 2,153 32 % $ 1,734 27 % 24 % $ 7,981 40 % $ 4,284 22 % 86 % Korea 1,102 16 % 988 15 % 12 % 3,321 16 % 3,864 19 % (14) % Taiwan 1,148 17 % 1,345 21 % (15) % 2,726 14 % 4,748 24 % (43) % Japan 555 8 % 478 8 % 16 % 1,573 8 % 1,394 7 % 13 % Southeast Asia 428 6 % 180 3 % 138 % 827 4 % 590 3 % 40 % Asia Pacific 5,386 79 % 4,725 74 % 14 % 16,428 82 % 14,880 75 % 10 % United States 1,053 16 % 1,039 16 % 1 % 2,665 13 % 3,203 16 % (17) % Europe 339 5 % 661 10 % (49) % 1,038 5 % 1,711 9 % (39) % Total $ 6,778 100 % $ 6,425 100 % 5 % $ 20,131 100 % $ 19,794 100 % 2 % |
Schedule of Disaggregation of Revenue | Net revenue for Semiconductor Systems by end use application for the periods indicated were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, Foundry, logic and other 72 % 79 % 66 % 80 % Dynamic random-access memory (DRAM) 24 % 17 % 30 % 14 % Flash memory 4 % 4 % 4 % 6 % 100 % 100 % 100 % 100 % |
Schedule of Reconciliations of Total Segment Operating Income to Consolidated Operating Income (Loss) | The reconciling items included in Corporate and Other were as follows: Three Months Ended Nine Months Ended July 28, July 30, July 28, July 30, (In millions) Unallocated net revenue $ 23 $ 50 $ 137 $ 148 Unallocated cost of products sold and expenses (276) (247) (839) (782) Total $ (253) $ (197) $ (702) $ (634) |
Schedule of Companies Accounted for at Least 10 Percent of Net Sales | The following customer accounted for at least 10 percent of our net revenue for the nine months ended July 28, 2024, and sales to this customer included products and services from multiple reportable segments. Percentage of Net Revenue Samsung Electronics Co., Ltd. 12 % |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Basic earnings per share (in dollars per share) | $ 2.06 | $ 1.86 | $ 6.57 | $ 5.76 |
Diluted earnings per share (in dollars per share) | $ 2.05 | $ 1.85 | $ 6.52 | $ 5.73 |
Change in accounting estimate, useful life | ||||
Property, Plant and Equipment [Line Items] | ||||
Reduction in depreciation expense | $ 30 | $ 97 | ||
Basic earnings per share (in dollars per share) | $ 0.03 | $ 0.09 | ||
Diluted earnings per share (in dollars per share) | $ 0.03 | $ 0.09 | ||
Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Increase in useful life | 5 years | 5 years | ||
Minimum | Demonstration and manufacturing equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 5 years | 5 years | ||
Minimum | Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 3 years | 3 years | ||
Maximum | Demonstration and manufacturing equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 8 years | 8 years | ||
Maximum | Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 30 years | 30 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Numerator: | ||||
Net income | $ 1,705 | $ 1,560 | $ 5,446 | $ 4,852 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 826 | 838 | 829 | 842 |
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares (in shares) | 7 | 5 | 6 | 4 |
Denominator for diluted earnings per share (in shares) | 833 | 843 | 835 | 846 |
Basic earnings per share (in dollars per share) | $ 2.06 | $ 1.86 | $ 6.57 | $ 5.76 |
Diluted earnings per share (in dollars per share) | $ 2.05 | $ 1.85 | $ 6.52 | $ 5.73 |
Potentially weighted dilutive securities (in shares) | 0 | 0 | 0 | 2 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 | Jul. 30, 2023 |
Summary of Cash, Cash Equivalents and Investments | |||
Cash | $ 1,318 | $ 1,417 | |
Total cash equivalents | 6,970 | 4,715 | |
Total cash and cash equivalents | 8,288 | 6,132 | $ 6,025 |
Equity investments and equity securities without readily determinable, cost | 789 | 735 | |
Equity investments and equity securities without readily determinable, gross unrealized gains | 480 | 249 | |
Equity investments and equity securities without readily determinable, gross unrealized losses | 22 | 26 | |
Equity investments and equity securities without readily determinable, fair value | 1,247 | 958 | |
Total short-term and long-term investments cost | 3,347 | 2,841 | |
Gross unrealized gains on short-term and long-term investments | 486 | 249 | |
Gross unrealized losses on short-term and long-term investments | 37 | 72 | |
Total short-term and long-term investments | 3,796 | 3,018 | |
Cash, cash equivalents and investments, cost | 11,635 | 8,973 | |
Cash, cash equivalents and investments, gross unrealized gains | 486 | 249 | |
Cash, cash equivalents and investments, gross unrealized losses | 37 | 72 | |
Cash, cash equivalents and investments, estimated fair value | 12,084 | 9,150 | |
Restricted cash equivalents included in deferred income taxes and other assets | 90 | $ 108 | |
Total fixed income securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 2,558 | 2,106 | |
Gross unrealized gains on fixed income securities | 6 | 0 | |
Gross unrealized losses on fixed income securities | 15 | 46 | |
Estimated fair value of fixed income securities | 2,549 | 2,060 | |
Bank certificates of deposit and time deposits | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 19 | 18 | |
Gross unrealized gains on fixed income securities | 0 | 0 | |
Gross unrealized losses on fixed income securities | 0 | 0 | |
Estimated fair value of fixed income securities | 19 | 18 | |
U.S. Treasury and agency securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 641 | 381 | |
Gross unrealized gains on fixed income securities | 1 | 0 | |
Gross unrealized losses on fixed income securities | 2 | 7 | |
Estimated fair value of fixed income securities | 640 | 374 | |
Non-U.S. government securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 5 | 7 | |
Gross unrealized gains on fixed income securities | 0 | 0 | |
Gross unrealized losses on fixed income securities | 0 | 1 | |
Estimated fair value of fixed income securities | 5 | 6 | |
Municipal securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 445 | 438 | |
Gross unrealized gains on fixed income securities | 2 | 0 | |
Gross unrealized losses on fixed income securities | 4 | 11 | |
Estimated fair value of fixed income securities | 443 | 427 | |
Commercial paper, corporate bonds and medium-term notes | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 816 | 760 | |
Gross unrealized gains on fixed income securities | 2 | 0 | |
Gross unrealized losses on fixed income securities | 3 | 12 | |
Estimated fair value of fixed income securities | 815 | 748 | |
Asset-backed and mortgage-backed securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Cost of fixed income securities | 632 | 502 | |
Gross unrealized gains on fixed income securities | 1 | 0 | |
Gross unrealized losses on fixed income securities | 6 | 15 | |
Estimated fair value of fixed income securities | 627 | 487 | |
Publicly traded equity securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Equity investments cost | 543 | 543 | |
Equity investments unrealized gains | 422 | 171 | |
Equity investments unrealized losses | 3 | 16 | |
Equity investments estimated fair value | 962 | 698 | |
Equity investments in privately held companies | |||
Summary of Cash, Cash Equivalents and Investments | |||
Equity securities without readily determinable, cost | 246 | 192 | |
Equity securities without readily determinable, fair value, gross unrealized gains | 58 | 78 | |
Equity securities without readily determinable, fair value, gross unrealized losses | 19 | 10 | |
Equity securities without readily determinable, fair value | 285 | 260 | |
Money market funds | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total cash equivalents | 2,828 | 3,260 | |
Restricted cash equivalents included in deferred income taxes and other assets | 90 | 101 | |
Bank certificates of deposit and time deposits | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total cash equivalents | 20 | ||
U.S. Treasury and agency securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total cash equivalents | 2,291 | ||
Municipal securities | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total cash equivalents | 73 | 26 | |
Commercial paper, corporate bonds and medium-term notes | |||
Summary of Cash, Cash Equivalents and Investments | |||
Total cash equivalents | $ 1,758 | $ 1,429 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | ||||
Interest income, interest income | $ 124 | $ 73 | $ 345 | $ 165 |
Cash, Cash Equivalents and In_5
Cash, Cash Equivalents and Investments - Summary of Contractual Maturity (Details) $ in Millions | Jul. 28, 2024 USD ($) |
Contractual maturities of investments | |
Due in one year or less, Cost | $ 798 |
Due after one through five years, Cost | 1,124 |
Due after five years, Cost | 4 |
No single maturity date, Cost | 1,421 |
Total short-term and long-term investments cost | 3,347 |
Due in one year or less, Estimated Fair Value | 796 |
Due after one through five years, Estimated Fair Value | 1,122 |
Due after five years, Estimated Fair Value | 4 |
No single maturity date, Estimated Fair Value | 1,874 |
Estimated fair value of short-term and long-term investments | $ 3,796 |
Cash, Cash Equivalents and In_6
Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Publicly traded equity securities | ||||
Unrealized gain | $ 6 | $ 12 | $ 318 | $ 31 |
Unrealized loss | (30) | (1) | (33) | (28) |
Realized gain on sales and dividends | 3 | 4 | 5 | 5 |
Realized loss on sales or impairment | 0 | 0 | (1) | (2) |
Equity investments in privately held companies | ||||
Unrealized gain | 1 | 1 | 2 | 13 |
Unrealized loss | (2) | (18) | (12) | (29) |
Realized gain on sales and dividends | 0 | 2 | 3 | 7 |
Realized loss on sales or impairment | (19) | (2) | (19) | (119) |
Total gain (loss) on equity investments, net | $ (41) | $ (2) | $ 263 | $ (122) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 | Jul. 30, 2023 |
Assets: | |||
Restricted cash equivalents included in deferred income taxes and other assets | $ 90 | $ 108 | |
Restricted Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Deferred Income Taxes and Other Assets, Noncurrent | Deferred Income Taxes and Other Assets, Noncurrent | |
Money market funds | |||
Assets: | |||
Restricted cash equivalents included in deferred income taxes and other assets | $ 90 | $ 101 | |
Bank certificates of deposit and time deposits | |||
Assets: | |||
Available-for-sale debt security investments | 19 | 18 | |
U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 640 | 374 | |
Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 5 | 6 | |
Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 443 | 427 | |
Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 815 | 748 | |
Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 627 | 487 | |
Publicly traded equity securities | |||
Assets: | |||
Equity investments with readily determinable values | 962 | 698 | |
Recurring Fair Value Measurements | |||
Assets: | |||
Available-for-sale debt security investments | 9,609 | 6,876 | |
Equity investments with readily determinable values | 962 | 698 | |
Total | 10,571 | 7,574 | |
Recurring Fair Value Measurements | Money market funds | |||
Assets: | |||
Available-for-sale debt security investments | 2,918 | 3,361 | |
Recurring Fair Value Measurements | Bank certificates of deposit and time deposits | |||
Assets: | |||
Available-for-sale debt security investments | 39 | 18 | |
Recurring Fair Value Measurements | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 2,931 | 374 | |
Recurring Fair Value Measurements | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 5 | 6 | |
Recurring Fair Value Measurements | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 516 | 453 | |
Recurring Fair Value Measurements | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 2,573 | 2,177 | |
Recurring Fair Value Measurements | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 627 | 487 | |
Recurring Fair Value Measurements | Publicly traded equity securities | |||
Assets: | |||
Equity investments with readily determinable values | 962 | 698 | |
Recurring Fair Value Measurements | Level 1 | |||
Assets: | |||
Available-for-sale debt security investments | 5,827 | 3,692 | |
Equity investments with readily determinable values | 962 | 698 | |
Total | 6,789 | 4,390 | |
Recurring Fair Value Measurements | Level 1 | Money market funds | |||
Assets: | |||
Available-for-sale debt security investments | 2,918 | 3,361 | |
Recurring Fair Value Measurements | Level 1 | Bank certificates of deposit and time deposits | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 2,909 | 331 | |
Recurring Fair Value Measurements | Level 1 | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Publicly traded equity securities | |||
Assets: | |||
Equity investments with readily determinable values | 962 | 698 | |
Recurring Fair Value Measurements | Level 2 | |||
Assets: | |||
Available-for-sale debt security investments | 3,782 | 3,184 | |
Equity investments with readily determinable values | 0 | 0 | |
Total | 3,782 | 3,184 | |
Recurring Fair Value Measurements | Level 2 | Money market funds | |||
Assets: | |||
Available-for-sale debt security investments | 0 | 0 | |
Recurring Fair Value Measurements | Level 2 | Bank certificates of deposit and time deposits | |||
Assets: | |||
Available-for-sale debt security investments | 39 | 18 | |
Recurring Fair Value Measurements | Level 2 | U.S. Treasury and agency securities | |||
Assets: | |||
Available-for-sale debt security investments | 22 | 43 | |
Recurring Fair Value Measurements | Level 2 | Non-U.S. government securities | |||
Assets: | |||
Available-for-sale debt security investments | 5 | 6 | |
Recurring Fair Value Measurements | Level 2 | Municipal securities | |||
Assets: | |||
Available-for-sale debt security investments | 516 | 453 | |
Recurring Fair Value Measurements | Level 2 | Commercial paper, corporate bonds and medium-term notes | |||
Assets: | |||
Available-for-sale debt security investments | 2,573 | 2,177 | |
Recurring Fair Value Measurements | Level 2 | Asset-backed and mortgage-backed securities | |||
Assets: | |||
Available-for-sale debt security investments | 627 | 487 | |
Recurring Fair Value Measurements | Level 2 | Publicly traded equity securities | |||
Assets: | |||
Equity investments with readily determinable values | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Oct. 29, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equity investments | $ 0 | $ 0 | $ 0 | $ 119 | |
Senior Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, principal amount | 6,200 | 6,200 | $ 5,500 | ||
Senior Notes | Level 2 | Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt fair value | $ 5,700 | $ 5,700 | $ 4,700 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Billions | 9 Months Ended | |
Jul. 28, 2024 | Oct. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Time period for hedging of foreign currency transaction | 24 months | |
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings | 12 months | |
Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | $ 1.6 | $ 1.7 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives in AOCI (Details) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | $ 8 | $ 15 | $ 56 | $ (32) |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | 16 | 15 | 44 | (32) |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion - gain (loss) recognized in AOCI | $ (8) | $ 0 | $ 12 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Derivatives in Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net revenue | $ 6,778 | $ 6,425 | $ 20,131 | $ 19,794 |
Cost of products sold | 3,573 | 3,449 | 10,569 | 10,579 |
Research, development and engineering | 836 | 767 | 2,375 | 2,313 |
Marketing and selling | 205 | 193 | 621 | 584 |
General and administrative | 222 | 214 | 745 | 635 |
Interest expense | 63 | 60 | 181 | 180 |
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | (2) | (3) | 0 | 28 |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | (1) | 0 |
Foreign exchange contracts | Net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | 7 | 8 | 21 | 47 |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | (1) | 0 |
Foreign exchange contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | (3) | 0 | (4) | 2 |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Research, development and engineering | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | (2) | (5) | (6) | (8) |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Marketing and selling | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | 0 | (1) | (1) | (1) |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | 0 | 0 |
Foreign exchange contracts | General and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | (1) | (1) | (1) | (2) |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations | (3) | (4) | (9) | (10) |
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Gain/Loss Recognized in Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | $ 15 | $ 24 | $ 69 | $ (1) |
Foreign exchange contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 2 | 11 | 20 | (25) |
Total return swaps - deferred compensation | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | (4) | (4) | (11) | (8) |
Total return swaps - deferred compensation | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | 1 | 2 | 5 | 3 |
Total return swaps - deferred compensation | Operating expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives not designated as hedging instruments | $ 16 | $ 15 | $ 55 | $ 29 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Oct. 29, 2023 | |
Receivables [Abstract] | |||||
Factored accounts receivable | $ 131,000,000 | $ 90,000,000 | $ 395,000,000 | $ 619,000,000 | |
Discounted letters of credit | 0 | 0 | 0 | 0 | |
Discounted promissory notes | 0 | $ 0 | 0 | $ 0 | |
Allowance for credit losses | $ 29,000,000 | $ 29,000,000 | $ 29,000,000 |
Contract Balances and Perform_3
Contract Balances and Performance Obligations - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 324 | $ 274 |
Contract liabilities | $ 2,742 | $ 2,975 |
Contract Balances and Perform_4
Contract Balances and Performance Obligations - Narrative (Details) - USD ($) | 9 Months Ended | |
Jul. 28, 2024 | Jul. 30, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized | $ 2,500,000,000 | |
Accounts receivable, credit losses | 0 | $ 0 |
Contract assets, credit losses | 0 | $ 0 |
Long-term Contract with Customer | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 4,200,000,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-29 | Long-term Contract with Customer | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of revenue expected to be recognized within twelve months | 63% | |
Expected timing of satisfaction | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-29 | Long-term Contract with Customer | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction | 24 months |
Balance Sheet Detail - Inventor
Balance Sheet Detail - Inventories (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Inventories | ||
Customer service spares | $ 1,727 | $ 1,589 |
Raw materials | 1,688 | 1,653 |
Work-in-process | 945 | 997 |
Finished goods | ||
Deferred cost of sales | 267 | 413 |
Evaluation inventory | 487 | 423 |
Manufactured on-hand inventory | 454 | 650 |
Total finished goods | 1,208 | 1,486 |
Total inventories | $ 5,568 | $ 5,725 |
Balance Sheet Detail - Other Cu
Balance Sheet Detail - Other Current Assets (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Other Current Assets | ||
Prepaid income taxes and income taxes receivable | $ 51 | $ 412 |
Prepaid expenses and other | 979 | 976 |
Total other current assets | $ 1,030 | $ 1,388 |
Balance Sheet Detail - Property
Balance Sheet Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 6,957 | $ 6,374 |
Accumulated depreciation | (3,857) | (3,651) |
Net property, plant and equipment | 3,100 | 2,723 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 436 | 393 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 2,314 | 2,194 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 30 years | |
Demonstration and manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 2,573 | 2,353 |
Demonstration and manufacturing equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Demonstration and manufacturing equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 8 years | |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 806 | 762 |
Furniture, fixtures and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Furniture, fixtures and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 828 | $ 672 |
Balance Sheet Detail - Deferred
Balance Sheet Detail - Deferred Income Taxes and Other Assets (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Balance Sheet Detail [Abstract] | ||
Non-current deferred income taxes | $ 2,107 | $ 1,729 |
Operating lease right-of-use assets | 355 | 370 |
Finance lease right-of-use assets | 91 | 108 |
Income tax receivables and other assets | 348 | 345 |
Deferred income taxes and other assets | $ 2,901 | $ 2,552 |
Balance Sheet Detail - Accounts
Balance Sheet Detail - Accounts Payable and Accrued Expense (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Accounts Payable and Accrued Expenses | ||
Accounts payable | $ 1,470 | $ 1,478 |
Compensation and employee benefits | 995 | 1,024 |
Warranty | 347 | 332 |
Dividends payable | 330 | 267 |
Income taxes payable | 365 | 282 |
Other accrued taxes | 74 | 65 |
Interest payable | 59 | 38 |
Operating lease liabilities, current | 86 | 84 |
Finance lease liabilities, current | 89 | 102 |
Other | 572 | 625 |
Accounts payable and accrued expenses | $ 4,387 | $ 4,297 |
Balance Sheet Detail - Other Li
Balance Sheet Detail - Other Liabilities (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Other Liabilities | ||
Defined and postretirement benefit plans | $ 121 | $ 126 |
Operating lease liabilities, non-current | 239 | 252 |
Other | 390 | 336 |
Total other liabilities | $ 750 | $ 714 |
Balance Sheet Detail - Narrativ
Balance Sheet Detail - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 28, 2024 | Jul. 28, 2024 | |
Government Assistance [Line Items] | ||
Government assistance, asset, decrease | $ 279 | |
Government Assistance, Asset, Decrease, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | |
Government assistance, liability, decrease | $ 112 | |
Accounts payable and accrued expenses | ||
Government Assistance [Line Items] | ||
Government assistance, liability, decrease | 105 | |
Income taxes payable | ||
Government Assistance [Line Items] | ||
Government assistance, liability, decrease | 7 | |
Contra-depreciation expense | ||
Government Assistance [Line Items] | ||
Government assistance, operating expense, decrease | $ 0 | 0 |
Research, development and engineering | ||
Government Assistance [Line Items] | ||
Government assistance, operating expense, decrease | $ 10 | $ 32 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 3,732 | $ 3,732 |
Corporate and Other | ||
Goodwill [Line Items] | ||
Goodwill | 41 | 41 |
Semiconductor Systems | Operating Segments | ||
Goodwill [Line Items] | ||
Goodwill | 2,460 | 2,460 |
Applied Global Services | Operating Segments | ||
Goodwill [Line Items] | ||
Goodwill | 1,032 | 1,032 |
Display and Adjacent Markets | Operating Segments | ||
Goodwill [Line Items] | ||
Goodwill | $ 199 | $ 199 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Intangible assets with finite lives: | ||
Gross Carrying Amount | $ 2,311 | $ 2,310 |
Accumulated Amortization | (2,049) | (2,016) |
Total | 262 | 294 |
Operating Segments | Semiconductor Systems | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 2,001 | 2,001 |
Accumulated Amortization | (1,744) | (1,714) |
Total | 257 | 287 |
Operating Segments | Applied Global Services | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 79 | 79 |
Accumulated Amortization | (79) | (78) |
Total | 0 | 1 |
Operating Segments | Display and Adjacent Markets | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 194 | 194 |
Accumulated Amortization | (194) | (194) |
Total | 0 | 0 |
Corporate and Other | ||
Intangible assets with finite lives: | ||
Gross Carrying Amount | 37 | 36 |
Accumulated Amortization | (32) | (30) |
Total | $ 5 | $ 6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 11 | $ 11 | $ 33 | $ 34 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Oct. 29, 2023 |
Amortization Expense | ||
2024 (remaining 3 months) | $ 10 | |
2025 | 41 | |
2026 | 40 | |
2027 | 26 | |
2028 | 23 | |
Thereafter | 122 | |
Total | $ 262 | $ 294 |
Borrowing Facilities and Debt -
Borrowing Facilities and Debt - Narrative (Details) - USD ($) | 1 Months Ended | |||
Feb. 29, 2020 | Jul. 28, 2024 | Jun. 30, 2024 | Oct. 29, 2023 | |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 99,000,000 | $ 100,000,000 | ||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Commercial paper | 1,500,000,000 | |||
Short-term debt | $ 100,000,000 | $ 100,000,000 | ||
Debt, weighted average interest rate | 5.34% | 5.39% | ||
Debt securities, held-to-maturity, threshold period past due | 98 days | 90 days | ||
Foreign Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Available credit agreement | $ 52,000,000 | |||
Outstanding credit facilities | 0 | $ 0 | ||
Unsecured Debt | Revolving Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Available credit agreement | $ 1,500,000,000 | |||
Accordion feature, increase limit | 500,000,000 | |||
Accordion feature, higher borrowing capacity option | $ 2,000,000,000 | |||
Outstanding credit facilities | 0 | 0 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | 6,200,000,000 | 5,500,000,000 | ||
Senior Notes | 4.800% Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, principal amount | $ 700,000,000 | $ 0 | ||
Debt instrument, face amount | $ 700,000,000 | |||
Stated interest rate | 4.80% | 4.80% |
Borrowing Facilities and Debt_2
Borrowing Facilities and Debt - Debt Outstanding (Details) - USD ($) $ in Millions | Jul. 28, 2024 | Jun. 30, 2024 | Oct. 29, 2023 |
Debt Instrument [Line Items] | |||
Total long-term senior notes | $ 6,158 | $ 5,461 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, principal amount | 6,200 | 5,500 | |
Total unamortized discount | (11) | (11) | |
Total unamortized debt issuance costs | $ (31) | (28) | |
Senior Notes | 3.900% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.90% | ||
Long-term debt, principal amount | $ 700 | 700 | |
Effective Interest Rate | 3.944% | ||
Senior Notes | 3.300% Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.30% | ||
Long-term debt, principal amount | $ 1,200 | 1,200 | |
Effective Interest Rate | 3.342% | ||
Senior Notes | 4.800% Senior Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.80% | 4.80% | |
Long-term debt, principal amount | $ 700 | 0 | |
Effective Interest Rate | 4.844% | ||
Senior Notes | 1.750% Senior Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.75% | ||
Long-term debt, principal amount | $ 750 | 750 | |
Effective Interest Rate | 1.792% | ||
Senior Notes | 5.100% Senior Notes Due 2035 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.10% | ||
Long-term debt, principal amount | $ 500 | 500 | |
Effective Interest Rate | 5.127% | ||
Senior Notes | 5.850% Senior Notes Due 2041 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.85% | ||
Long-term debt, principal amount | $ 600 | 600 | |
Effective Interest Rate | 5.879% | ||
Senior Notes | 4.350% Senior Notes Due 2047 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.35% | ||
Long-term debt, principal amount | $ 1,000 | 1,000 | |
Effective Interest Rate | 4.361% | ||
Senior Notes | 2.750% Senior Notes Due 2050 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.75% | ||
Long-term debt, principal amount | $ 750 | $ 750 | |
Effective Interest Rate | 2.773% |
Leases - Lease Expense and Supp
Leases - Lease Expense and Supplemental Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 27 | $ 25 | $ 81 | $ 78 |
Amortization of right-of-use assets | 1 | 0 | 2 | 1 |
Interest on lease liabilities | $ 1 | $ 1 | $ 3 | $ 2 |
Weighted-average remaining lease term (in years) - operating leases | 5 years 6 months | 5 years 9 months 18 days | 5 years 6 months | 5 years 9 months 18 days |
Weighted-average remaining lease term (in years) - finance leases | 2 months 12 days | 1 year 1 month 6 days | 2 months 12 days | 1 year 1 month 6 days |
Weighted-average discount rate - operating leases | 3.20% | 2.90% | 3.20% | 2.90% |
Weighted-average discount rate - finance leases | 4.60% | 4.60% | 4.60% | 4.60% |
Operating cash flows paid for operating leases | $ 80 | $ 89 | ||
Financing cash flows paid for finance leases | 12 | 8 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 73 | 83 | ||
Right-of-use assets obtained in exchange for finance lease liabilities | $ 0 | $ 109 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Millions | Jul. 28, 2024 USD ($) |
Operating Leases | |
2024 (remaining 3 months) | $ 21 |
2025 | 96 |
2026 | 60 |
2027 | 47 |
2028 | 39 |
Thereafter | 93 |
Total lease payments | 356 |
Less imputed interest | (31) |
Total | 325 |
Finance Leases | |
2024 (remaining 3 months) | 90 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | 90 |
Less imputed interest | (1) |
Total | $ 89 |
Stockholders' Equity, Compreh_3
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Changes in Components of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 18,199 | $ 14,129 | $ 16,349 | $ 12,194 |
Other comprehensive income (loss) before reclassifications | 71 | (9) | ||
Amounts reclassified out of AOCI | 0 | (12) | ||
Other comprehensive income (loss), net of tax | 26 | 12 | 71 | (21) |
Ending balance | 18,840 | 15,093 | 18,840 | 15,093 |
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (172) | (235) | (217) | (202) |
Other comprehensive income (loss), net of tax | 26 | 12 | 71 | (21) |
Ending balance | (146) | (223) | (146) | (223) |
Unrealized Gain (Loss) on Investments, Net | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (50) | (75) | ||
Other comprehensive income (loss) before reclassifications | 27 | 16 | ||
Amounts reclassified out of AOCI | 9 | 9 | ||
Other comprehensive income (loss), net of tax | 36 | 25 | ||
Ending balance | (14) | (50) | (14) | (50) |
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (118) | (52) | ||
Other comprehensive income (loss) before reclassifications | 44 | (25) | ||
Amounts reclassified out of AOCI | 0 | (21) | ||
Other comprehensive income (loss), net of tax | 44 | (46) | ||
Ending balance | (74) | (98) | (74) | (98) |
Defined and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (62) | (88) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified out of AOCI | (9) | 0 | ||
Other comprehensive income (loss), net of tax | (9) | 0 | ||
Ending balance | (71) | (88) | (71) | (88) |
Cumulative Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 13 | 13 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified out of AOCI | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending balance | $ 13 | $ 13 | $ 13 | $ 13 |
Stockholders' Equity, Compreh_4
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Line Items] | |||||||||
Amount authorized by board of directors to repurchase shares | $ 10,000 | $ 6,000 | |||||||
Remaining authorized repurchase amount | $ 10,300 | $ 10,300 | |||||||
Dividends declared per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.32 | $ 0.40 | $ 0.32 | $ 1.12 | $ 0.90 | ||
Payments of dividends | $ 863 | $ 707 | |||||||
Employee Stock Incentive Plan | |||||||||
Equity [Line Items] | |||||||||
Number of shares available for grant (in shares) | 21 | 21 | |||||||
Employee Stock Purchase Plan | |||||||||
Equity [Line Items] | |||||||||
Number of shares available for grant (in shares) | 11 | 11 | |||||||
Employee stock purchase plan purchase period | 6 months | ||||||||
Shares issued under employee stock purchase plans (in shares) | 1 | 1 | |||||||
Employee Stock | |||||||||
Equity [Line Items] | |||||||||
Performance of total shareholder return | 100% | ||||||||
Total unrecognized compensation expense | $ 977 | $ 977 | |||||||
Weighted average period for unrecognized compensation expense to be recognized | 2 years 8 months 12 days | ||||||||
Employee Stock | Employee Stock Purchase Plan | |||||||||
Equity [Line Items] | |||||||||
Purchase price of common stock | 85% | ||||||||
Performance Shares | |||||||||
Equity [Line Items] | |||||||||
Additional performance-based awards to be earned upon certain levels of achievement (in shares) | 0.7 | 0.7 | |||||||
Award measurement metric relative weight | 50% | ||||||||
Award measurement period | 3 years | ||||||||
Performance Shares | Minimum | |||||||||
Equity [Line Items] | |||||||||
Award vesting rights, percentage of target amount | 0% | ||||||||
Performance Shares | Maximum | |||||||||
Equity [Line Items] | |||||||||
Award vesting rights, percentage of target amount | 200% |
Stockholders' Equity, Compreh_5
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Equity [Abstract] | ||||
Shares of common stock repurchases (in shares) | 4 | 4 | 13 | 13 |
Cost of stock repurchased (including excise tax) | $ 868 | $ 443 | $ 2,398 | $ 1,497 |
Average price paid per share (including excise tax) (in dollars per share) | $ 222.82 | $ 131.09 | $ 189.90 | $ 117.35 |
Cost of stock repurchased (excluding excise tax) | $ 861 | $ 439 | $ 2,381 | $ 1,489 |
Average price paid per share (excluding excise tax) (in dollars per share) | $ 221.27 | $ 129.86 | $ 188.60 | $ 116.70 |
Stockholders' Equity, Compreh_6
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 132 | $ 114 | $ 436 | $ 375 |
Cost of products sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 33 | 42 | 98 | 138 |
Research, development and engineering | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 53 | 42 | 163 | 137 |
Marketing and selling | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | 17 | 13 | 53 | 42 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total share-based compensation | $ 29 | $ 17 | $ 122 | $ 58 |
Stockholders' Equity, Compreh_7
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units (Details) - Restricted Stock Units, Restricted Stock, Performance Shares and Performance Units shares in Millions | 9 Months Ended |
Jul. 28, 2024 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 12 |
Granted (in shares) | shares | 4 |
Vested (in shares) | shares | (4) |
Canceled (in shares) | shares | (1) |
Ending balance (in shares) | shares | 11 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 106.24 |
Granted (in dollars per share) | $ / shares | 148.07 |
Vested (in dollars per share) | $ / shares | 97.11 |
Canceled (in dollars per share) | $ / shares | 119.91 |
Ending balance (in dollars per share) | $ / shares | $ 127.04 |
Stockholders' Equity, Compreh_8
Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Employee Stock Purchase Plan, Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares | 9 Months Ended | |
Jul. 28, 2024 | Jul. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.76% | 1.09% |
Expected volatility | 35.60% | 43.30% |
Risk-free interest rate | 5.27% | 5.14% |
Expected life (in years) | 6 months | 6 months |
Weighted average estimated fair value (in dollars per share) | $ 53.98 | $ 32.47 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate provision | 13% | 13.60% | 13% | 12.50% |
Warranty, Guarantees, Commitm_3
Warranty, Guarantees, Commitments and Contingencies - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 346 | $ 310 | $ 332 | $ 286 |
Provisions for warranty | 62 | 62 | 181 | 186 |
Changes in reserves related to preexisting warranty | (8) | (2) | (14) | 0 |
Consumption of reserves | (53) | (57) | (152) | (159) |
Ending balance | $ 347 | $ 313 | $ 347 | $ 313 |
Warranty, Guarantees, Commitm_4
Warranty, Guarantees, Commitments and Contingencies - Narrative (Details) $ in Millions | Jul. 28, 2024 USD ($) |
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 | $ 308 |
Parent guarantees to banks | $ 292 |
Industry Segment Operations - N
Industry Segment Operations - Narrative (Details) | 9 Months Ended |
Jul. 28, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Industry Segment Operations -_2
Industry Segment Operations - Net Sales and Operating Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 6,778 | $ 6,425 | $ 20,131 | $ 19,794 |
Operating Income (Loss) | 1,942 | 1,802 | 5,821 | 5,683 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 23 | 50 | 137 | 148 |
Operating Income (Loss) | (253) | (197) | (702) | (634) |
Semiconductor Systems | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 4,924 | 4,676 | 14,734 | 14,815 |
Operating Income (Loss) | 1,712 | 1,568 | 5,157 | 5,138 |
Applied Global Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 1,580 | 1,464 | 4,586 | 4,261 |
Operating Income (Loss) | 467 | 399 | 1,320 | 1,128 |
Display and Adjacent Markets | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 251 | 235 | 674 | 570 |
Operating Income (Loss) | $ 16 | $ 32 | $ 46 | $ 51 |
Industry Segment Operations -_3
Industry Segment Operations - Net Sales by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 6,778 | $ 6,425 | $ 20,131 | $ 19,794 |
Change | 5% | 2% | ||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 5,386 | 4,725 | $ 16,428 | 14,880 |
Change | 14% | 10% | ||
China | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 2,153 | 1,734 | $ 7,981 | 4,284 |
Change | 24% | 86% | ||
Korea | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,102 | 988 | $ 3,321 | 3,864 |
Change | 12% | (14.00%) | ||
Taiwan | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,148 | 1,345 | $ 2,726 | 4,748 |
Change | (15.00%) | (43.00%) | ||
Japan | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 555 | 478 | $ 1,573 | 1,394 |
Change | 16% | 13% | ||
Southeast Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 428 | 180 | $ 827 | 590 |
Change | 138% | 40% | ||
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 1,053 | 1,039 | $ 2,665 | 3,203 |
Change | 1% | (17.00%) | ||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 339 | $ 661 | $ 1,038 | $ 1,711 |
Change | (49.00%) | (39.00%) | ||
Revenue | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 100% | 100% | 100% | 100% |
Revenue | Asia Pacific | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 79% | 74% | 82% | 75% |
Revenue | China | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 32% | 27% | 40% | 22% |
Revenue | Korea | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 16% | 15% | 16% | 19% |
Revenue | Taiwan | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 17% | 21% | 14% | 24% |
Revenue | Japan | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 8% | 8% | 8% | 7% |
Revenue | Southeast Asia | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 6% | 3% | 4% | 3% |
Revenue | United States | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 16% | 16% | 13% | 16% |
Revenue | Europe | Geographic Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenue | 5% | 10% | 5% | 9% |
Industry Segment Operations - P
Industry Segment Operations - Percentage for Semiconductor Systems by End User (Details) - Revenue - Product Concentration Risk - Semiconductor Systems | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Concentration Risk [Line Items] | ||||
Percentage of net revenue | 100% | 100% | 100% | 100% |
Foundry, logic and other | ||||
Concentration Risk [Line Items] | ||||
Percentage of net revenue | 72% | 79% | 66% | 80% |
Dynamic random-access memory (DRAM) | ||||
Concentration Risk [Line Items] | ||||
Percentage of net revenue | 24% | 17% | 30% | 14% |
Flash memory | ||||
Concentration Risk [Line Items] | ||||
Percentage of net revenue | 4% | 4% | 4% | 6% |
Industry Segment Operations - R
Industry Segment Operations - Reconciliations of Total Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 28, 2024 | Jul. 30, 2023 | Jul. 28, 2024 | Jul. 30, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated net revenue | $ 6,778 | $ 6,425 | $ 20,131 | $ 19,794 |
Income from operations | 1,942 | 1,802 | 5,821 | 5,683 |
Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Unallocated net revenue | 23 | 50 | 137 | 148 |
Unallocated cost of products sold and expenses | (276) | (247) | (839) | (782) |
Income from operations | $ (253) | $ (197) | $ (702) | $ (634) |
Industry Segment Operations -_4
Industry Segment Operations - Percentage by Customer (Details) | 9 Months Ended |
Jul. 28, 2024 | |
Customer Concentration Risk | Revenue | Samsung Electronics Co., Ltd. | |
Entity-Wide Revenue, Major Customer [Line Items] | |
Percentage of net revenue | 12% |