Applied Materials (AMAT) 10-Q25 Aug 222022 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page	9 Months Ended
Cover Page	Jul. 31, 2022 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2022
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	860,309,377
Entity Central Index Key	0000006951
Current Fiscal Year End Date	--10-30
Document Fiscal Year Focus	2022
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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Income Statement [Abstract]
Net sales	$ 6,520	$ 6,196	$ 19,036	$ 16,940
Cost of products sold	3,514	3,229	10,144	8,971
Gross profit	3,006	2,967	8,892	7,969
Operating expenses:
Research, development and engineering	705	640	2,045	1,863
Marketing and selling	180	159	520	454
General and administrative	197	155	537	465
Severance and related charges	0	0	(4)	158
Deal termination fee	0	0	0	154
Total operating expenses	1,082	954	3,098	3,094
Income from operations	1,924	2,013	5,794	4,875
Interest expense	56	57	171	179
Interest and other income (loss), net	(7)	24	27	69
Income before income taxes	1,861	1,980	5,650	4,765
Provision for income taxes	255	264	716	589
Net income	$ 1,606	$ 1,716	$ 4,934	$ 4,176
Earnings per share:
Basic (in dollars per share)	$ 1.86	$ 1.89	$ 5.63	$ 4.57
Diluted (in dollars per share)	$ 1.85	$ 1.87	$ 5.59	$ 4.52
Weighted average number of shares:
Basic (in shares)	864	908	877	914
Diluted (in shares)	869	918	883	923

Consolidated Condensed Statem_2

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 1,606	$ 1,716	$ 4,934	$ 4,176
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments	3	(1)	(45)	(11)
Change in unrealized net loss on derivative instruments	13	(1)	46	18
Other comprehensive income (loss), net of tax	16	(2)	1	7
Comprehensive income	$ 1,622	$ 1,714	$ 4,935	$ 4,183

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,956	$ 4,995
Short-term investments	592	464
Accounts receivable, net	4,956	4,953
Inventories	5,506	4,309
Other current assets	1,424	1,386
Total current assets	15,434	16,107
Long-term investments	2,047	2,055
Property, plant and equipment, net	2,194	1,934
Goodwill	3,713	3,479
Purchased technology and other intangible assets, net	337	104
Deferred income taxes and other assets	2,436	2,146
Total assets	26,161	25,825
Current liabilities:
Accounts payable and accrued expenses	4,005	4,268
Contract liabilities	2,828	2,076
Total current liabilities	6,833	6,344
Long-term debt	5,456	5,452
Income taxes payable	955	1,090
Other liabilities	847	692
Total liabilities	14,091	13,578
Stockholders’ equity:
Common stock	9	9
Additional paid-in capital	8,398	8,247
Retained earnings	36,520	32,246
Treasury stock	(32,598)	(27,995)
Accumulated other comprehensive loss	(259)	(260)
Total stockholders’ equity	12,070	12,247
Total liabilities and stockholders’ equity	$ 26,161	$ 25,825

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. 25, 2020		914
Treasury stock, beginning balance (in shares) at Oct. 25, 2020					1,091
Beginning Balance at Oct. 25, 2020	$ 10,578	$ 9	$ 7,904	$ 27,209	$ (24,245)	$ (299)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,176			4,176
Other comprehensive income (loss), net of tax	7					7
Dividends declared	(637)			(637)
Share-based compensation	272		272
Issuance under stock plans (in shares)		6
Issuance under stock plans	$ (86)		(86)
Common stock repurchases (in shares)	(17)	(17)			(17)
Common stock repurchases	$ (2,250)				$ (2,250)
Ending Balance, (in shares) at Aug. 01, 2021		903
Treasury stock, ending balance (in shares) at Aug. 01, 2021					1,108
Ending Balance at Aug. 01, 2021	12,060	$ 9	8,090	30,748	$ (26,495)	(292)
Beginning Balance, (in shares) at May. 02, 2021		914
Treasury stock, beginning balance (in shares) at May. 02, 2021					1,097
Beginning Balance at May. 02, 2021	11,993	$ 9	8,022	29,247	$ (24,995)	(290)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,716			1,716
Other comprehensive income (loss), net of tax	(2)					(2)
Dividends declared	(215)			(215)
Share-based compensation	81		81
Issuance under stock plans	$ (13)		(13)
Common stock repurchases (in shares)	(11)	(11)			(11)
Common stock repurchases	$ (1,500)				$ (1,500)
Ending Balance, (in shares) at Aug. 01, 2021		903
Treasury stock, ending balance (in shares) at Aug. 01, 2021					1,108
Ending Balance at Aug. 01, 2021	12,060	$ 9	8,090	30,748	$ (26,495)	(292)
Beginning Balance, (in shares) at Oct. 31, 2021		892
Treasury stock, beginning balance (in shares) at Oct. 31, 2021					1,119
Beginning Balance at Oct. 31, 2021	12,247	$ 9	8,247	32,246	$ (27,995)	(260)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,934			4,934
Other comprehensive income (loss), net of tax	1					1
Dividends declared	(660)			(660)
Share-based compensation	314		314
Issuance under stock plans (in shares)		5
Issuance under stock plans	$ (163)		(163)
Common stock repurchases (in shares)	(37)	(37)			(37)
Common stock repurchases	$ (4,603)				$ (4,603)
Ending Balance, (in shares) at Jul. 31, 2022		860
Treasury stock, ending balance (in shares) at Jul. 31, 2022					1,156
Ending Balance at Jul. 31, 2022	12,070	$ 9	8,398	36,520	$ (32,598)	(259)
Beginning Balance, (in shares) at May. 01, 2022		869
Treasury stock, beginning balance (in shares) at May. 01, 2022					1,146
Beginning Balance at May. 01, 2022	11,579	$ 9	8,306	35,137	$ (31,598)	(275)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,606			1,606
Other comprehensive income (loss), net of tax	16					16
Dividends declared	(223)			(223)
Share-based compensation	95		95
Issuance under stock plans (in shares)		1
Issuance under stock plans	$ (3)		(3)
Common stock repurchases (in shares)	(10)	(10)			(10)
Common stock repurchases	$ (1,000)				$ (1,000)
Ending Balance, (in shares) at Jul. 31, 2022		860
Treasury stock, ending balance (in shares) at Jul. 31, 2022					1,156
Ending Balance at Jul. 31, 2022	$ 12,070	$ 9	$ 8,398	$ 36,520	$ (32,598)	$ (259)

Consolidated Condensed Statem_4

Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) - $ / shares	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.26	$ 0.26	$ 0.24	$ 0.26	$ 0.24	$ 0.76	$ 0.70

Consolidated Condensed Statem_5

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021
Cash flows from operating activities:
Net income	$ 4,934	$ 4,176
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization	321	289
Severance and related charges	(4)	149
Share-based compensation	314	272
Deferred income taxes	(209)	44
Other	14	(30)
Changes in operating assets and liabilities:
Accounts receivable	3	(858)
Inventories	(1,164)	(213)
Other current and non-current assets	(19)	(15)
Accounts payable and accrued expenses	195	154
Contract liabilities	725	367
Income taxes payable	(597)	(72)
Other liabilities	29	31
Cash provided by operating activities	4,542	4,294
Cash flows from investing activities:
Capital expenditures	(564)	(462)
Cash paid for acquisitions, net of cash acquired	(441)	(12)
Proceeds from sales and maturities of investments	1,013	1,024
Purchases of investments	(1,175)	(1,179)
Cash used in investing activities	(1,167)	(629)
Cash flows from financing activities:
Proceeds from common stock issuances	96	86
Common stock repurchases	(4,603)	(2,250)
Tax withholding payments for vested equity awards	(259)	(171)
Payments of dividends to stockholders	(650)	(622)
Cash used in financing activities	(5,416)	(2,957)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents	(2,041)	708
Cash, cash equivalents and restricted cash equivalents — beginning of period	5,101	5,466
Cash, cash equivalents and restricted cash equivalents — end of period	3,060	6,174
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents	2,956	6,066
Restricted cash equivalents included in deferred income taxes and other assets	104	108
Total cash, cash equivalents, and restricted cash equivalents	3,060	6,174
Supplemental cash flow information:
Cash payments for income taxes	1,623	641
Cash refunds from income taxes	133	26
Cash payments for interest	$ 137	$ 137

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Jul. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 31, 2021 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021 (2021 Form 10-K). Applied’s results of operations for the three and nine months ended July 31, 2022 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2022 and 2021 contain 52 weeks and 53 weeks, respectively, and the first nine months of fiscal 2022 and 2021 contained 39 and 40 weeks, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to 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 and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of July 31, 2022, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available. Revenue Recognition from Contracts with Customers Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations . A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. Recent Accounting Pronouncements Accounting Standards Adopted Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standard Board (FASB) issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. Applied adopted this authoritative guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed financial statements. Accounting Standards Not Yet Adopted 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 Applied in the first quarter of fiscal 2025, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the 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. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2024, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Jul. 31, 2022
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. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to the Company’s non-complex capital structure. Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions, except per share amounts) Numerator: Net income $ 1,606 $ 1,716 $ 4,934 $ 4,176 Denominator: Weighted average common shares outstanding 864 908 877 914 Effect of weighted dilutive restricted stock units and employee stock purchase plan shares 5 10 6 9 Denominator for diluted earnings per share 869 918 883 923 Basic earnings per share $ 1.86 $ 1.89 $ 5.63 $ 4.57 Diluted earnings per share $ 1.85 $ 1.87 $ 5.59 $ 4.52 Potentially weighted dilutive securities 3 — 2 — Potentially weighted dilutive securities attributable to outstanding restricted stock units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Applied common stock, and therefore their inclusion would be anti-dilutive.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
Cash, Cash Equivalents and Investments	Jul. 31, 2022
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 Applied’s cash, cash equivalents and investments by security type: July 31, 2022 Cost Gross Gross Estimated (In millions) Cash $ 1,284 $ — $ — $ 1,284 Cash equivalents: Money market funds 1,381 — — 1,381 Municipal securities 11 — — 11 Commercial paper, corporate bonds and medium-term notes 280 — — 280 Total Cash equivalents 1,672 — — 1,672 Total Cash and Cash equivalents $ 2,956 $ — $ — $ 2,956 Short-term and long-term investments: Bank certificate of deposit $ 6 $ — $ — $ 6 U.S. Treasury and agency securities 399 — 7 392 Non-U.S. government securities* 8 — — 8 Municipal securities 368 1 8 361 Commercial paper, corporate bonds and medium-term notes 671 — 14 657 Asset-backed and mortgage-backed securities 442 — 13 429 Total fixed income securities 1,894 1 42 1,853 Publicly traded equity securities 87 65 16 136 Equity investments in privately-held companies 583 83 16 650 Total equity investments 670 148 32 786 Total short-term and long-term investments $ 2,564 $ 149 $ 74 $ 2,639 Total Cash, Cash equivalents and Investments $ 5,520 $ 149 $ 74 $ 5,595 _________________________ * Includes Canadian provincial government debt. October 31, 2021 Cost Gross Gross Estimated (In millions) Cash $ 1,407 $ — $ — $ 1,407 Cash equivalents: Money market funds 3,556 — — 3,556 Municipal securities 22 — — 22 Commercial paper, corporate bonds and medium-term notes 10 — — 10 Total Cash equivalents 3,588 — — 3,588 Total Cash and Cash equivalents $ 4,995 $ — $ — $ 4,995 Short-term and long-term investments: U.S. Treasury and agency securities $ 314 $ — $ — $ 314 Non-U.S. government securities* 5 — — 5 Municipal securities 367 3 1 369 Commercial paper, corporate bonds and medium-term notes 587 2 2 587 Asset-backed and mortgage-backed securities 555 3 1 557 Total fixed income securities 1,828 8 4 1,832 Publicly traded equity securities 22 39 3 58 Equity investments in privately-held companies 561 82 14 629 Total equity investments 583 121 17 687 Total short-term and long-term investments $ 2,411 $ 129 $ 21 $ 2,519 Total Cash, Cash equivalents and Investments $ 7,406 $ 129 $ 21 $ 7,514 _________________________ Includes Canadian provincial government debt. Maturities of Investments The following table summarizes the contractual maturities of Applied’s investments as of July 31, 2022: Cost Estimated (In millions) Due in one year or less $ 571 $ 568 Due after one through five years 880 854 Due after five years 2 2 No single maturity date* 1,111 1,215 Total $ 2,564 $ 2,639 _________________________ ** 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 31, 2022 and August 1, 2021 gross realized gains and losses on investments were not material. As of July 31, 2022, and October 31, 2021, gross unrealized losses related to Applied’s debt investment portfolio were not material. Applied regularly reviews its debt investment 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 Applied 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, net. Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income. During the three and nine months ended July 31, 2022 and August 1, 2021, Applied did not recognize significant credit losses and the ending allowance for credit losses was not material on its debt investment portfolio. Impairment charges on equity investments in privately-held companies during the three and nine months ended July 31, 2022 and August 1, 2021 were not material. These impairment charges are included in interest and other income, net in the Consolidated Condensed Statement of Operations. The components of gain (loss) on equity investments for the three and nine months ended July 31, 2022 and August 1, 2021 were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Publicly traded equity securities Unrealized gain $ 3 $ 1 $ 21 $ 12 Unrealized loss (23) (4) (33) (6) Realized gain on sales 3 — 5 — Equity investments in privately-held companies Unrealized gain 7 19 32 50 Unrealized loss (5) (3) (5) (11) Realized gain on sales — 6 2 9 Realized loss on sales or impairment (2) — (6) (7) Total gain (loss) on equity investments, net $ (17) $ 19 $ 16 $ 47

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Jul. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Applied’s 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. Applied’s 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 Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments 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, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 31, 2022, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s 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 31, 2022 October 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total (In millions) Assets: Available-for-sale debt security investments Money market funds* $ 1,485 $ — $ 1,485 $ 3,662 $ — $ 3,662 Bank certificate of deposit — 6 6 — — — U.S. Treasury and agency securities 375 17 392 296 18 314 Non-U.S. government securities — 8 8 — 5 5 Municipal securities — 372 372 — 391 391 Commercial paper, corporate bonds and medium-term notes — 937 937 — 597 597 Asset-backed and mortgage-backed securities — 429 429 — 557 557 Total available-for-sale debt security investments $ 1,860 $ 1,769 $ 3,629 $ 3,958 $ 1,568 $ 5,526 Equity investments with readily determinable values Publicly traded equity securities $ 136 $ — $ 136 $ 58 $ — $ 58 Total equity investments with readily determinable values $ 136 $ — $ 136 $ 58 $ — $ 58 Total $ 1,996 $ 1,769 $ 3,765 $ 4,016 $ 1,568 $ 5,584 _________________________ * Amounts as of July 31, 2022 and October 31, 2021, include $104 million and $106 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 in the Consolidated Condensed Balance Sheets. Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of July 31, 2022 or October 31, 2021. Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied 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 is 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 charges on equity investments in privately-held companies during the three and nine months ended July 31, 2022 and August 1, 2021 were not material. Other The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, notes payable - short term, and accounts payable and accrued expenses, approximate fair value due to their short maturities. As of July 31, 2022, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $5.5 billion. As of October 31, 2021, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $6.4 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
Derivative Instruments and Hedging Activities	Jul. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities Derivative Financial Instruments Applied conducts business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, Israeli shekel, euro and Taiwanese dollar. Applied uses 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 Applied’s foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Applied does not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign 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 Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and 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 31, 2022 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, Applied promptly recognizes 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 31, 2022 and August 1, 2021. 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 31, 2022 and October 31, 2021, the total outstanding notional amount of foreign exchange contracts was $2.8 billion and $2.1 billion, respectively. The fair values of foreign exchange derivative instruments as of July 31, 2022 and October 31, 2021 were not material. 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 31, August 1, July 31, August 1, (In millions) Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 35 $ 3 $ 94 $ 18 Total $ 35 $ 3 $ 94 $ 18 The effects of derivative instruments and hedging activities on the Consolidated Condensed Statements of Operations were as follows: Three Months Ended July 31, 2022 August 1, 2021 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 $ 6,520 $ 32 $ — $ 6,196 $ 2 $ — Cost of products sold $ 3,514 (4) — $ 3,229 3 (1) Research, development and engineering $ 705 (4) — $ 640 1 — Marketing and selling $ 180 (1) — $ 159 — — General and administrative $ 197 (1) — $ 155 1 — Interest Rate Contracts: Interest expense $ 56 (4) — $ 57 (4) — $ 18 $ — $ 3 $ (1) Nine Months Ended July 31, 2022 August 1, 2021 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 $ 19,036 $ 59 $ — $ 16,940 $ (3) $ — Cost of products sold $ 10,144 (7) — $ 8,971 3 (2) Research, development and engineering $ 2,045 (4) (1) $ 1,863 3 — Marketing and selling $ 520 (2) — $ 454 — — General and administrative $ 537 (1) — $ 465 1 — Interest Rate Contracts: Interest expense $ 171 (10) — $ 179 (10) — $ 35 $ (1) $ (6) $ (2) Amount of Gain or (Loss) Three Months Ended Nine Months Ended Location of Gain or July 31, August 1, July 31, August 1, (In millions) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Interest and other income, net $ 21 $ 3 $ 41 $ 19 Total return swaps - deferred compensation Cost of products sold — 1 (2) 3 Total return swaps - deferred compensation Operating expenses — 6 (19) 24 Total return swaps - deferred compensation Interest and other income, net (1) (1) (1) (1) Total $ 20 $ 9 $ 19 $ 45 Credit Risk Contingent Features If Applied’s credit rating were to fall below investment grade, it would be in violation of credit risk contingent provisions of the derivative instruments discussed above, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was immaterial as of July 31, 2022. Entering into derivative contracts with banks exposes Applied to credit-related losses in the event of the banks’ nonperformance. However, Applied’s exposure is not considered significant.

Accounts Receivable, Net

Accounts Receivable, Net	9 Months Ended
Accounts Receivable, Net	Jul. 31, 2022
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied sells its accounts receivable generally without recourse. Applied, from time to time, also discounts letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. Applied sold $251 million and $821 million of account receivables during the three and nine months ended July 31, 2022, respectively. Applied sold $309 million and $980 million of account receivables during the three and nine months ended August 1, 2021, respectively. Applied did not discount letters of credit issued by customers or discount promissory notes during the three and nine months ended July 31, 2022 and August 1, 2021. 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 31, 2022 and as of October 31, 2021. Applied sells its products principally to manufacturers within the semiconductor and display industries. While Applied believes that its allowance for credit losses is adequate and represents its best estimate as of July 31, 2022, it continues to closely monitor customer liquidity and industry and economic conditions, which may result in changes to Applied’s estimates.

Contract Balances

Contract Balances	9 Months Ended
Contract Balances	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract Balances	Contract Balances 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. Applied’s 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 31, 2022 October 31, 2021 (In millions) Contract assets $ 161 $ 201 Contract liabilities $ 2,828 $ 2,076 The decrease in contract assets during the nine months ended July 31, 2022 was primarily due to a reduction in goods transferred to customers where payment was conditional upon technical sign off. During the nine months ended July 31, 2022, Applied recognized revenue of approximately $1.8 billion related to contract liabilities at October 31, 2021. Contract liabilities increased during the nine month ended July 31, 2022 due to 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 31, 2022, partially offset by revenue recognized related to contract liabilities at October 31, 2021. There were no credit losses recognized on Applied’s accounts receivables and contract assets during both the three and nine months ended July 31, 2022 and August 1, 2021. As of July 31, 2022, the amount of remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more was approximately $2.0 billion, of which approximately 42% is expected to be recognized within 12 months and the remainder is expected to be recognized within the following 24 months thereafter. Applied has 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
Balance Sheet Detail	Jul. 31, 2022
Balance Sheet Detail [Abstract]
Balance Sheet Detail	Balance Sheet Detail July 31, October 31, (In millions) Inventories Customer service spares $ 1,350 $ 1,251 Raw materials 1,752 1,136 Work-in-process 1,090 873 Finished goods 1,314 1,049 $ 5,506 $ 4,309 Included in finished goods inventory are $28 million as of July 31, 2022, and $58 million as of October 31, 2021, of newly-introduced systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1. Finished goods inventory includes $398 million and $380 million of evaluation inventory as of July 31, 2022 and October 31, 2021, respectively. July 31, October 31, (In millions) Other Current Assets Prepaid income taxes and income taxes receivable $ 576 $ 593 Prepaid expenses and other 848 793 $ 1,424 $ 1,386 Useful Life July 31, October 31, (In years) (In millions) Property, Plant and Equipment, Net Land and improvements $ 389 $ 334 Buildings and improvements 3-30 2,007 1,780 Demonstration and manufacturing equipment 3-5 2,048 1,820 Furniture, fixtures and other equipment 3-5 718 720 Construction in progress 333 326 Gross property, plant and equipment 5,495 4,980 Accumulated depreciation (3,301) (3,046) $ 2,194 $ 1,934 July 31, October 31, (In millions) Deferred Income Taxes and Other Assets Non-current deferred income taxes $ 1,474 $ 1,623 Operating lease right-of-use assets 401 294 Income tax receivables and other assets 561 229 $ 2,436 $ 2,146 July 31, October 31, (In millions) Accounts Payable and Accrued Expenses Accounts payable $ 1,686 $ 1,472 Compensation and employee benefits 774 924 Warranty 273 242 Dividends payable 224 214 Income taxes payable 272 734 Other accrued taxes 26 24 Interest payable 55 39 Operating lease liabilities, current 98 73 Other 597 546 $ 4,005 $ 4,268 July 31, October 31, (In millions) Other Liabilities Defined and postretirement benefit plans $ 173 $ 193 Operating lease liabilities, non-current 302 228 Other 372 271 $ 847 $ 692

Goodwill, Purchased Technology

Goodwill, Purchased Technology and Other Intangible Assets	9 Months Ended
Goodwill, Purchased Technology and Other Intangible Assets	Jul. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Purchased Technology and Other Intangible Assets	Goodwill, Purchased Technology and Other Intangible Assets Goodwill and Purchased Intangible Assets Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. When reviewing goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In performing a qualitative assessment, Applied considers business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If Applied concludes that is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value. If the carrying value of a reporting unit exceeds its fair value, Applied would record an impairment charge equal to the excess of the carrying value of the reporting unit’s goodwill over its fair value. As of July 31, 2022, Applied’s reporting units include Semiconductor Products Group and Imaging and Process Control Group, which combine to form the Semiconductor Systems reporting segment, Applied Global Services, Display and Adjacent Markets and other reporting units recorded under Corporate and Other. Details of goodwill and indefinite-lived intangible assets as of July 31, 2022 and October 31, 2021 were as follows: July 31, 2022 October 31, 2021 Goodwill Indefinite-lived Total Goodwill Indefinite-lived Total (In millions) Semiconductor Systems $ 2,441 $ 16 $ 2,457 $ 2,207 $ — $ 2,207 Applied Global Services 1,032 — 1,032 1,032 — 1,032 Display and Adjacent Markets 199 — 199 199 — 199 Corporate and Other 41 — 41 41 — 41 Carrying amount $ 3,713 $ 16 $ 3,729 $ 3,479 $ — $ 3,479 From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During the first nine months of fiscal 2022, goodwill and indefinite-lived intangible assets increased by $234 million and $16 million, respectively, primarily due to the preliminary purchase accounting for acquisitions during the third quarter of fiscal 2022, which were not material to Applied’s results of operations. A summary of Applied’s purchased technology and intangible assets is set forth below: July 31, 2022 October 31, 2021 (In millions) Purchased technology, net $ 255 $ 46 Intangible assets - finite-lived, net 66 58 Intangible assets - indefinite-lived 16 — Total $ 337 $ 104 The increase in purchased technology and intangible assets during the first nine months of fiscal 2022 was primarily due to the preliminary purchase accounting for acquisitions during the third quarter of fiscal 2022, which were not material to Applied’s results of operations. Intangible assets that are not subject to amortization consist primarily of in-process technology, which will be subject to amortization upon commercialization. If an in-process technology project is abandoned, the acquired technology attributable to the project will be written-off. Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure. Details of finite-lived intangible assets were as follows: July 31, 2022 October 31, 2021 Purchased Other Total Purchased Other Total (In millions) Gross carrying amount: Semiconductor Systems $ 1,700 $ 274 $ 1,974 $ 1,476 $ 256 $ 1,732 Applied Global Services 35 44 79 35 44 79 Display and Adjacent Markets 158 36 194 163 38 201 Corporate and Other 18 18 36 13 16 29 Gross carrying amount $ 1,911 $ 372 $ 2,283 $ 1,687 $ 354 $ 2,041 Accumulated amortization: Semiconductor Systems $ (1,455) $ (211) $ (1,666) $ (1,446) $ (203) $ (1,649) Applied Global Services (33) (44) (77) (32) (44) (76) Display and Adjacent Markets (158) (36) (194) (161) (38) (199) Corporate and Other (10) (15) (25) (2) (11) (13) Accumulated amortization $ (1,656) $ (306) $ (1,962) $ (1,641) $ (296) $ (1,937) Carrying amount $ 255 $ 66 $ 321 $ 46 $ 58 $ 104 Details of amortization expense by segment were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Semiconductor Systems $ 9 $ 9 $ 22 $ 31 Applied Global Services — 1 1 1 Display and Adjacent Markets — 1 2 4 Corporate & Other 2 — 5 1 Total $ 11 $ 11 $ 30 $ 37 Amortization expense was charged to the following categories: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Cost of products sold $ 7 $ 7 $ 20 $ 22 Research, development and engineering — — — 1 Marketing and selling 4 4 10 14 Total $ 11 $ 11 $ 30 $ 37 As of July 31, 2022, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: Amortization Expense (In millions) 2022 (remaining 3 months) $ 10 2023 41 2024 38 2025 36 2026 36 Thereafter 160 Total $ 321

Borrowing Facilities and Debt

Borrowing Facilities and Debt	9 Months Ended
Borrowing Facilities and Debt	Jul. 31, 2022
Debt Disclosure [Abstract]
Borrowing Facilities and Debt	Borrowing Facilities and Debt Revolving Credit Facilities In February 2020, Applied 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 Applied 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 2025, 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 Applied, plus an applicable margin, which varies according to Applied’s public debt credit ratings. In July 2022, Applied entered into an amendment to the Revolving Credit Agreement which replaced the London interbank offered rate (LIBOR) as a reference rate for borrowings with the secured overnight financing rate (SOFR). No amounts were outstanding under the Revolving Credit Agreement as of July 31, 2022 and October 31, 2021. In addition, Applied has revolving credit facilities with Japanese banks pursuant to which it may borrow up to approximately $58 million in aggregate at any time. Applied’s ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. As of July 31, 2022 and October 31, 2021, no amounts were outstanding under these revolving credit facilities. Short-term Commercial Paper Applied has a short-term commercial paper program under which Applied may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. At July 31, 2022 and October 31, 2021, Applied did not have any commercial paper outstanding. Senior Unsecured Notes Debt outstanding as of July 31, 2022 and October 31, 2021 was as follows: Principal Amount July 31, October 31, 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 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 5,500 5,500 Total unamortized discount (12) (14) Total unamortized debt issuance costs (32) (34) Total long-term debt $ 5,456 $ 5,452

Leases

Leases	9 Months Ended
Leases	Jul. 31, 2022
Leases [Abstract]
Leases	Leases A contract contains a lease when Applied has the right to control the use of an identified asset for a period of time in exchange for consideration. Applied leases 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. Applied’s 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, Applied uses 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. Applied 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, Applied 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 31, August 1, July 31, August 1, (In millions, except percentages) Operating lease cost $26 $20 $69 $58 Weighted-average remaining lease term (in years) 7.2 4.7 Weighted-average discount rate 2.3% 1.6% Supplemental cash flow information related to leases are as follows: Nine Months Ended July 31, August 1, (In millions) Operating cash flows paid for operating leases $ 69 $ 58 Right-of-use assets obtained in exchange for operating lease liabilities $ 192 $ 48 As of July 31, 2022, the maturities of lease liabilities are as follows: Operating Leases Fiscal (In millions) 2022 (remaining 3 months) $ 37 2023 92 2024 82 2025 63 2026 33 Thereafter 128 Total lease payments $ 435 Less imputed interest (35) Total $ 400

Severance and Related Charges

Severance and Related Charges	9 Months Ended
Severance and Related Charges	Jul. 31, 2022
Restructuring and Related Activities [Abstract]
Severance and Related Charges	Severance and Related Charges Fiscal 2021 Severance Plan In the first quarter of fiscal 2021, Applied enacted a severance plan to realign its workforce. Under this plan, Applied implemented a one-time voluntary retirement program and other workforce reduction actions. The voluntary retirement program was available to certain U.S. employees who met minimum age and length of service requirements, as well as other business-specific criteria. The payments under this plan are paid at the time of termination and the related costs were not allocated to the segments. In addition, Applied implemented other workforce reduction actions globally across the Display and Adjacent Markets business. These costs were recorded under the Display and Adjacent Markets segment. During the nine months ended July 31, 2022 and August 1, 2021, Applied recorded an adjustment of $4 million and recognized a total expense of $158 million of severance and related charges, respectively, in connection with the Fiscal 2021 Severance Plan. Severance and related charges and adjustments by segment were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Display and Adjacent Markets $ — $ — $ — $ 8 Corporate and Other — — (4) 150 Total $ — $ — $ (4) $ 158 Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above for the nine months ended July 31, 2022 were as follows: Severance and Related Charges Reserves (In millions) Balance as of October 31, 2021 $ 17 Adjustment to provision for severance (4) Consumption of reserves (12) Balance as of January 30, 2022 1 Consumption of reserves — Balance as of May 1, 2022 1 Consumption of reserves — Balance as of July 31, 2022 $ 1

Stockholders' Equity, Comprehen

Stockholders' Equity, Comprehensive Income and Share-Based Compensation	9 Months Ended
	Jul. 31, 2022
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 (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 31, 2021 $ (1) $ (103) $ (169) $ 13 $ (260) Other comprehensive income (loss) before reclassifications (36) 73 — — 37 Amounts reclassified out of AOCI (9) (27) — — (36) Other comprehensive income (loss), net of tax (45) 46 — — 1 Balance as of July 31, 2022 $ (46) $ (57) $ (169) $ 13 $ (259) 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 25, 2020 $ 20 $ (133) $ (199) $ 13 $ (299) Other comprehensive income (loss) before reclassifications (7) 14 — — 7 Amounts reclassified out of AOCI (4) 4 — — — Other comprehensive income (loss), net of tax (11) 18 — — 7 Balance as of August 1, 2021 $ 9 $ (115) $ (199) $ 13 $ (292) The tax effects on net income of amounts reclassified from AOCI for the three and nine months ended July 31, 2022 and August 1, 2021 were not material. Stock Repurchase Program In March 2022, Applied’s Board of Directors approved a common stock repurchase program authorizing $6.0 billion in repurchases, which supplemented the previously existing $7.5 billion authorization approved in March 2021. As of July 31, 2022, approximately $6.4 billion remained available for future stock repurchases under the repurchase program. The following table summarizes Applied’s stock repurchases for the three and nine months ended July 31, 2022 and August 1, 2021: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (in millions, except per share amount) Shares of common stock repurchased 10 11 37 17 Cost of stock repurchased $ 1,000 $ 1,500 $ 4,603 $ 2,250 Average price paid per share $ 102.09 $ 133.40 $ 125.85 $ 134.03 Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. Dividends In June 2022, March 2022 and December 2021, Applied’s Board of Directors declared quarterly cash dividends, in the amount of $0.26, $0.26 and $0.24 per share, respectively. The dividend declared in June 2022 is payable in September 2022. Dividends paid during the nine months ended July 31, 2022 and August 1, 2021 totaled $650 million and $622 million, respectively. Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on Applied’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of Applied’s stockholders. Share-Based Compensation Applied has a stockholder-approved equity plan, the Employee Stock Incentive Plan (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 of Applied. In addition, Applied currently has an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase Applied common stock. During the three and nine months ended July 31, 2022 and August 1, 2021, Applied 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 31, August 1, July 31, August 1, (In millions) Cost of products sold $ 34 $ 28 $ 112 $ 93 Research, development and engineering 35 30 115 101 Marketing and selling 11 11 37 34 General and administrative 15 12 50 44 Total share-based compensation $ 95 $ 81 $ 314 $ 272 The cost associated with share-based awards that are subject solely to time-based vesting requirements, less expected forfeitures, is recognized over the awards’ service period for the entire award on a straight-line basis. Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal. As of July 31, 2022, Applied had $711 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards and shares issued under the ESPP, which will be recognized over a weighted average period of 2.8 years. As of July 31, 2022, there were 32 million shares available for grant of share-based awards under the ESIP, and an additional 15 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 Applied’s equity compensation plans during the nine months ended July 31, 2022 is presented below: Shares Weighted Average (In millions, except per share amounts) Outstanding as of October 31, 2021 13 $ 63.29 Granted 4 $ 136.18 Vested (5) $ 53.17 Canceled (1) $ 79.85 Outstanding as of July 31, 2022 11 $ 92.09 As of July 31, 2022, 0.9 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance goals. During the first quarter of fiscal 2022, certain executive officers 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 a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period. The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout 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 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. 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. Employee Stock Purchase Plans Under the ESPP, substantially all employees may purchase Applied common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of Applied common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Applied issued a total of 1 million shares in the nine months ended July 31, 2022 and a total of 2 million shares in the nine months ended August 1, 2021. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Nine Months Ended July 31, 2022 August 1, 2021 Dividend yield 0.74% 0.72% Expected volatility 45.2% 44.6% Risk-free interest rate 0.60% 0.05% Expected life (in years) 0.5 0.5 Weighted average estimated fair value $35.79 $33.48

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Jul. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Applied’s 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 are not consistent from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Applied’s effective tax rates for the third quarter of fiscal 2022 and 2021 were 13.7 percent and 13.3 percent, respectively. The effective tax rate for the third quarter of fiscal 2022 was higher than the same period in the prior fiscal year primarily due to lower tax credits in fiscal 2022. Applied’s effective tax rates for the first nine months of fiscal 2022 and 2021 were 12.7 percent and 12.4 percent, respectively. The effective tax rate for the first nine months of fiscal 2022 was higher than the same period in the prior fiscal year primarily due to a reduction of deferred tax assets related to a new tax incentive in Singapore, partially offset by changes in uncertain tax positions.

Warranty, Guarantees, Commitmen

Warranty, Guarantees, Commitments and Contingencies	9 Months Ended
Warranty, Guarantees, Commitments and Contingencies	Jul. 31, 2022
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 31, 2022 August 1, 2021 July 31, 2022 August 1, 2021 (In millions) Beginning balance $ 262 $ 216 $ 242 $ 201 Warranties issued 64 61 189 162 Change in reserves related to preexisting warranty 4 4 9 9 Consumption of reserves (57) (49) (167) (140) Ending balance $ 273 $ 232 $ 273 $ 232 Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales. Guarantees In the ordinary course of business, Applied provides standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either Applied or its subsidiaries. As of July 31, 2022, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $534 million. Applied has not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. Applied does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements. Applied also has agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of July 31, 2022, Applied has provided parent guarantees to banks for approximately $297 million to cover these arrangements. Legal Matters From time to time, Applied receives notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by Applied in connection with claims made against them. In addition, from time to time, Applied receives notification from third parties claiming that Applied may be or is infringing or misusing their intellectual property or other rights. Applied also is subject to various other legal proceedings, regulatory investigations or inquires, and claims, both asserted and unasserted, that arise in the ordinary course of business. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, Applied does not believe at this time that any will have a material effect on its consolidated financial condition or results of operations.

Industry Segment Operations

Industry Segment Operations	9 Months Ended
Industry Segment Operations	Jul. 31, 2022
Segment Reporting [Abstract]
Industry Segment Operations	Industry Segment Operations Applied’s three reportable segments are: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. As defined under the accounting literature, Applied’s chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon Applied’s management organization structure as of July 31, 2022 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’s 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, certain remanufactured earlier 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, and other consumer-oriented devices. Each operating segment is separately managed and has separate financial results that are reviewed by Applied’s chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by Applied’s chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information. Applied derives the segment results directly from its internal management reporting system. The accounting policies Applied uses to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net sales and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. 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 its reportable segments and are managed separately at the corporate level. These operating expenses include costs related to share-based compensation; certain management, finance, legal, human resources, and research, development and engineering functions provided at the corporate level; and unabsorbed information technology and occupancy. In addition, Applied does not allocate to its reportable segments restructuring, 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 sales and operating income (loss) for each reportable segment were as follows: Three Months Ended Nine Months Ended Net Sales Operating Net Sales Operating (In millions) July 31, 2022: Semiconductor Systems $ 4,734 $ 1,701 $ 13,759 $ 5,120 Applied Global Services 1,420 434 4,123 1,259 Display and Adjacent Markets 333 69 1,080 226 Corporate and Other 33 (280) 74 (811) Total $ 6,520 $ 1,924 $ 19,036 $ 5,794 August 1, 2021: Semiconductor Systems $ 4,454 $ 1,785 $ 11,979 $ 4,588 Applied Global Services 1,286 393 3,644 1,083 Display and Adjacent Markets 431 99 1,217 229 Corporate and Other 25 (264) 100 (1,025) Total $ 6,196 $ 2,013 $ 16,940 $ 4,875 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. Operating income (loss) for the nine months ended July 31, 2022 and August 1, 2021 included severance and related charges as discussed in Note 12, Severance and Related Charges. In addition, operating income (loss) for the nine months ended August 1, 2021 included a $154 million deal termination fee associated with the termination of a Share Purchase Agreement with Kokusai Electric Corporation and KKR HKE Investment L. P. during the second quarter of fiscal 2021. Net sales 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 31, August 1, Change July 31, August 1, Change (In millions, except percentages) China $ 1,797 27 % $ 2,251 36 % (20) % $ 5,917 31 % $ 5,478 32 % 8 % Korea 1,224 19 % 1,291 21 % (5) % 3,313 18 % 4,008 23 % (17) % Taiwan 1,537 24 % 1,261 20 % 22 % 4,194 22 % 3,502 21 % 20 % Japan 438 7 % 449 7 % (2) % 1,406 7 % 1,349 8 % 4 % Southeast Asia 270 4 % 173 3 % 56 % 633 3 % 472 3 % 34 % Asia Pacific 5,266 81 % 5,425 87 % (3) % 15,463 81 % 14,809 87 % 4 % United States 725 11 % 533 9 % 36 % 2,274 12 % 1,365 8 % 67 % Europe 529 8 % 238 4 % 122 % 1,299 7 % 766 5 % 70 % Total $ 6,520 100 % $ 6,196 100 % 5 % $ 19,036 100 % $ 16,940 100 % 12 % Net sales for Semiconductor Systems by end use application for the periods indicated were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, Foundry, logic and other 66 % 63 % 64 % 59 % Dynamic random-access memory (DRAM) 15 % 20 % 20 % 17 % Flash memory 19 % 17 % 16 % 24 % 100 % 100 % 100 % 100 % The reconciling items included in Corporate and Other were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Unallocated net sales $ 33 $ 25 $ 74 $ 100 Unallocated cost of products sold and expenses (218) (208) (575) (549) Share-based compensation (95) (81) (314) (272) Severance and related charges — — 4 (150) Deal termination fee — — — (154) Total $ (280) $ (264) $ (811) $ (1,025) The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended July 31, 2022, and sales to these customers included products and services from multiple reportable segments. Percentage of Net Sales Taiwan Semiconductor Manufacturing Company Limited 18 % Samsung Electronics Co., Ltd. 12 % Intel Corporation 11 %

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Jul. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	In the opinion of management, the unaudited interim consolidated condensed financial statements of Applied Materials, Inc. and its subsidiaries (Applied or the Company) included herein have been prepared on a basis consistent with the October 31, 2021 audited consolidated financial statements and include all material adjustments, consisting of normal recurring adjustments, necessary to fairly present the information set forth therein. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Applied’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021 (2021 Form 10-K). Applied’s results of operations for the three and nine months ended July 31, 2022 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2022 and 2021 contain 52 weeks and 53 weeks, respectively, and the first nine months of fiscal 2022 and 2021 contained 39 and 40 weeks, respectively.
Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, Applied evaluates its estimates, including those related to 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 and equipment, fair values of share-based awards, and income taxes, among others. Applied bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. As of July 31, 2022, the COVID-19 pandemic and worldwide response remains fluid. As a result, many of Applied’s estimates and assumptions are subject to increased judgment and volatility. These estimates may differ materially in future periods as the pandemic continues to evolve and additional information becomes available.
Revenue Recognition from Contracts with Customers	Applied recognizes revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which Applied expects to be entitled in exchange for those goods or services. Applied determines revenue recognition through the following five steps; (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied. Identifying the contract(s) with customers. Applied sells manufacturing equipment, services, and spare parts directly to its customers in the semiconductor, display, and related industries. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors. Identifying the performance obligations. Applied’s performance obligations include delivery of manufacturing equipment, service agreements, spare parts, installation, extended warranty and training. Applied’s service agreements are considered one performance obligation and may include multiple goods and services that Applied provides to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group. Determine the transaction price. The transaction price for Applied’s contracts with customers may include fixed and variable consideration. Applied includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Allocate the transaction price to the performance obligations . A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. Applied generally estimates the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, Applied allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. Recognizing the revenue as performance obligations are satisfied. Applied recognizes revenue from equipment and spares parts at a point in time when Applied has satisfied its performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services. The incremental costs to obtain a contract are not material. Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. Applied typically receives deposits on future deliverables from customers in the Display and Adjacent Markets segment and, in certain instances, may also receive deposits from customers in the Applied Global Services segment. Applied’s payment terms do not generally contain a significant financing component. 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. Applied’s 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.
Recent Accounting Pronouncements	Accounting Standards Adopted Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standard Board (FASB) issued an accounting standard update to simplify the accounting for income taxes (Topic 740). This amendment removes certain exceptions and improves consistent application of accounting principles for certain areas in Topic 740. Applied adopted this authoritative guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a significant impact on Applied’s consolidated condensed financial statements. Accounting Standards Not Yet Adopted 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 Applied in the first quarter of fiscal 2025, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements. Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the 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. This authoritative guidance will be effective for Applied in the first quarter of fiscal 2024, with early adoption permitted. Applied is currently evaluating the effect of this new guidance on Applied’s consolidated financial statements.
Fair Value Measurement	Applied’s 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. Applied’s 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 Applied uses the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Applied’s investments 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, Applied uses pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, Applied generally obtains non-binding price quotes from brokers. Applied then reviews the information provided by the pricing services or brokers to determine the fair value of its short-term and long-term investments. In addition, to validate pricing information obtained from pricing services, Applied periodically performs supplemental analysis on a sample of securities. Applied reviews any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of July 31, 2022, substantially all of Applied’s available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs. Applied’s 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 Applied’s equity investments without readily determinable values consist of equity investments in privately-held companies. Applied 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 is 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 charges on equity investments in privately-held companies during the three and nine months ended July 31, 2022 and August 1, 2021 were not material.
Derivatives	Applied does 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 Applied’s derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses.
Goodwill and Purchased Intangible Assets	Goodwill and Purchased Intangible Assets Applied’s methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. Applied assigns assets acquired (including goodwill) and liabilities assumed to one or more reporting units as of the date of acquisition. Typically, acquisitions relate to a single reporting unit and thus do not require the allocation of goodwill to multiple reporting units. If the products obtained in an acquisition are assigned to multiple reporting units, the goodwill is distributed to the respective reporting units as part of the purchase price allocation process. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The process of evaluating the potential impairment of goodwill and intangible assets requires significant judgment, especially in emerging markets. When reviewing goodwill for impairment, Applied first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In performing a qualitative assessment, Applied considers business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If Applied concludes that is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value. If the carrying value of a reporting unit exceeds its fair value, Applied would record an impairment charge equal to the excess of the carrying value of the reporting unit’s goodwill over its fair value.
Finite-Lived Purchased Intangible Assets	Finite-Lived Purchased Intangible Assets Applied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years. Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach. Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.
Treasury Stock	Applied records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If Applied reissues treasury stock at an amount below its acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.
Share-based Compensation	Share-based awards granted to certain executive officers allow partial accelerated vesting in the event of a qualifying retirement based on age and years of service. The cost associated with performance-based equity awards, which include both performance and market goals, is recognized for each tranche over the service period. The cost of equity awards related to performance goals is based on an assessment of the likelihood that the applicable performance goals will be achieved. For the equity awards based on market goals, the cost is recognized based upon the assumption of 100% achievement of the goal.Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.
Performance Based Awards	During the first quarter of fiscal 2022, certain executive officers 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 a peer group, comprised of companies in the Standard & Poor's 500 Index. Each metric will be weighted 50% and will be measured over a three-year period. The awards become eligible to vest only if performance goals are achieved and will vest only if the grantee remains employed by Applied through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards provide for a partial payout 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 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	Applied products are generally sold with a warranty for a 12-month period following installation. The provision for the estimated cost of warranty is recorded when revenue is recognized. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical experience by product, configuration and geographic region. Quarterly warranty consumption is generally associated with sales that occurred during the preceding four quarters, and quarterly warranty provisions are generally related to the current quarter’s sales.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Jul. 31, 2022
Earnings Per Share [Abstract]
Schedule of earnings per share	Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions, except per share amounts) Numerator: Net income $ 1,606 $ 1,716 $ 4,934 $ 4,176 Denominator: Weighted average common shares outstanding 864 908 877 914 Effect of weighted dilutive restricted stock units and employee stock purchase plan shares 5 10 6 9 Denominator for diluted earnings per share 869 918 883 923 Basic earnings per share $ 1.86 $ 1.89 $ 5.63 $ 4.57 Diluted earnings per share $ 1.85 $ 1.87 $ 5.59 $ 4.52 Potentially weighted dilutive securities 3 — 2 —

Cash, Cash Equivalents and In_2

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
Cash, Cash Equivalents and Investments (Tables)	Jul. 31, 2022
Cash and Cash Equivalents [Abstract]
Summary of cash, cash equivalents and investments	The following tables summarize Applied’s cash, cash equivalents and investments by security type: July 31, 2022 Cost Gross Gross Estimated (In millions) Cash $ 1,284 $ — $ — $ 1,284 Cash equivalents: Money market funds 1,381 — — 1,381 Municipal securities 11 — — 11 Commercial paper, corporate bonds and medium-term notes 280 — — 280 Total Cash equivalents 1,672 — — 1,672 Total Cash and Cash equivalents $ 2,956 $ — $ — $ 2,956 Short-term and long-term investments: Bank certificate of deposit $ 6 $ — $ — $ 6 U.S. Treasury and agency securities 399 — 7 392 Non-U.S. government securities* 8 — — 8 Municipal securities 368 1 8 361 Commercial paper, corporate bonds and medium-term notes 671 — 14 657 Asset-backed and mortgage-backed securities 442 — 13 429 Total fixed income securities 1,894 1 42 1,853 Publicly traded equity securities 87 65 16 136 Equity investments in privately-held companies 583 83 16 650 Total equity investments 670 148 32 786 Total short-term and long-term investments $ 2,564 $ 149 $ 74 $ 2,639 Total Cash, Cash equivalents and Investments $ 5,520 $ 149 $ 74 $ 5,595 _________________________ * Includes Canadian provincial government debt. October 31, 2021 Cost Gross Gross Estimated (In millions) Cash $ 1,407 $ — $ — $ 1,407 Cash equivalents: Money market funds 3,556 — — 3,556 Municipal securities 22 — — 22 Commercial paper, corporate bonds and medium-term notes 10 — — 10 Total Cash equivalents 3,588 — — 3,588 Total Cash and Cash equivalents $ 4,995 $ — $ — $ 4,995 Short-term and long-term investments: U.S. Treasury and agency securities $ 314 $ — $ — $ 314 Non-U.S. government securities* 5 — — 5 Municipal securities 367 3 1 369 Commercial paper, corporate bonds and medium-term notes 587 2 2 587 Asset-backed and mortgage-backed securities 555 3 1 557 Total fixed income securities 1,828 8 4 1,832 Publicly traded equity securities 22 39 3 58 Equity investments in privately-held companies 561 82 14 629 Total equity investments 583 121 17 687 Total short-term and long-term investments $ 2,411 $ 129 $ 21 $ 2,519 Total Cash, Cash equivalents and Investments $ 7,406 $ 129 $ 21 $ 7,514 _________________________ *Includes Canadian provincial government debt.
Contractual maturities of investments	The following table summarizes the contractual maturities of Applied’s investments as of July 31, 2022: Cost Estimated (In millions) Due in one year or less $ 571 $ 568 Due after one through five years 880 854 Due after five years 2 2 No single maturity date 1,111 1,215 Total $ 2,564 $ 2,639 _________________________ Securities with no single maturity date include publicly-traded and privately-held equity securities and asset-backed and mortgage-backed securities.
Components of gain (loss) on equity investment	The components of gain (loss) on equity investments for the three and nine months ended July 31, 2022 and August 1, 2021 were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Publicly traded equity securities Unrealized gain $ 3 $ 1 $ 21 $ 12 Unrealized loss (23) (4) (33) (6) Realized gain on sales 3 — 5 — Equity investments in privately-held companies Unrealized gain 7 19 32 50 Unrealized loss (5) (3) (5) (11) Realized gain on sales — 6 2 9 Realized loss on sales or impairment (2) — (6) (7) Total gain (loss) on equity investments, net $ (17) $ 19 $ 16 $ 47

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Jul. 31, 2022
Fair Value Disclosures [Abstract]
Financial assets measured at fair value on a recurring basis	Financial assets (excluding cash balances) measured at fair value on a recurring basis are summarized below: July 31, 2022 October 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total (In millions) Assets: Available-for-sale debt security investments Money market funds* $ 1,485 $ — $ 1,485 $ 3,662 $ — $ 3,662 Bank certificate of deposit — 6 6 — — — U.S. Treasury and agency securities 375 17 392 296 18 314 Non-U.S. government securities — 8 8 — 5 5 Municipal securities — 372 372 — 391 391 Commercial paper, corporate bonds and medium-term notes — 937 937 — 597 597 Asset-backed and mortgage-backed securities — 429 429 — 557 557 Total available-for-sale debt security investments $ 1,860 $ 1,769 $ 3,629 $ 3,958 $ 1,568 $ 5,526 Equity investments with readily determinable values Publicly traded equity securities $ 136 $ — $ 136 $ 58 $ — $ 58 Total equity investments with readily determinable values $ 136 $ — $ 136 $ 58 $ — $ 58 Total $ 1,996 $ 1,769 $ 3,765 $ 4,016 $ 1,568 $ 5,584 _________________________

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
Derivative Instruments and Hedging Activities (Tables)	Jul. 31, 2022
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 31, August 1, July 31, August 1, (In millions) Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ 35 $ 3 $ 94 $ 18 Total $ 35 $ 3 $ 94 $ 18
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 31, 2022 August 1, 2021 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 $ 6,520 $ 32 $ — $ 6,196 $ 2 $ — Cost of products sold $ 3,514 (4) — $ 3,229 3 (1) Research, development and engineering $ 705 (4) — $ 640 1 — Marketing and selling $ 180 (1) — $ 159 — — General and administrative $ 197 (1) — $ 155 1 — Interest Rate Contracts: Interest expense $ 56 (4) — $ 57 (4) — $ 18 $ — $ 3 $ (1) Nine Months Ended July 31, 2022 August 1, 2021 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 $ 19,036 $ 59 $ — $ 16,940 $ (3) $ — Cost of products sold $ 10,144 (7) — $ 8,971 3 (2) Research, development and engineering $ 2,045 (4) (1) $ 1,863 3 — Marketing and selling $ 520 (2) — $ 454 — — General and administrative $ 537 (1) — $ 465 1 — Interest Rate Contracts: Interest expense $ 171 (10) — $ 179 (10) — $ 35 $ (1) $ (6) $ (2)
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 31, August 1, July 31, August 1, (In millions) Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Interest and other income, net $ 21 $ 3 $ 41 $ 19 Total return swaps - deferred compensation Cost of products sold — 1 (2) 3 Total return swaps - deferred compensation Operating expenses — 6 (19) 24 Total return swaps - deferred compensation Interest and other income, net (1) (1) (1) (1) Total $ 20 $ 9 $ 19 $ 45

Contract Balances (Tables)

Contract Balances (Tables)	9 Months Ended
Contract Balances (Tables)	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of contract balances	Contract balances at the end of each reporting period were as follows: July 31, 2022 October 31, 2021 (In millions) Contract assets $ 161 $ 201 Contract liabilities $ 2,828 $ 2,076

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	9 Months Ended
Balance Sheet Detail (Tables)	Jul. 31, 2022
Balance Sheet Detail [Abstract]
Inventories	July 31, October 31, (In millions) Inventories Customer service spares $ 1,350 $ 1,251 Raw materials 1,752 1,136 Work-in-process 1,090 873 Finished goods 1,314 1,049 $ 5,506 $ 4,309
Other current assets	July 31, October 31, (In millions) Other Current Assets Prepaid income taxes and income taxes receivable $ 576 $ 593 Prepaid expenses and other 848 793 $ 1,424 $ 1,386
Property, plant and equipment, net	Useful Life July 31, October 31, (In years) (In millions) Property, Plant and Equipment, Net Land and improvements $ 389 $ 334 Buildings and improvements 3-30 2,007 1,780 Demonstration and manufacturing equipment 3-5 2,048 1,820 Furniture, fixtures and other equipment 3-5 718 720 Construction in progress 333 326 Gross property, plant and equipment 5,495 4,980 Accumulated depreciation (3,301) (3,046) $ 2,194 $ 1,934
Deferred income taxes and other assets	July 31, October 31, (In millions) Deferred Income Taxes and Other Assets Non-current deferred income taxes $ 1,474 $ 1,623 Operating lease right-of-use assets 401 294 Income tax receivables and other assets 561 229 $ 2,436 $ 2,146
Accounts payable and accrued expenses	July 31, October 31, (In millions) Accounts Payable and Accrued Expenses Accounts payable $ 1,686 $ 1,472 Compensation and employee benefits 774 924 Warranty 273 242 Dividends payable 224 214 Income taxes payable 272 734 Other accrued taxes 26 24 Interest payable 55 39 Operating lease liabilities, current 98 73 Other 597 546 $ 4,005 $ 4,268
Other liabilities	July 31, October 31, (In millions) Other Liabilities Defined and postretirement benefit plans $ 173 $ 193 Operating lease liabilities, non-current 302 228 Other 372 271 $ 847 $ 692

Goodwill, Purchased Technolog_2

Goodwill, Purchased Technology and Other Intangible Assets (Tables)	9 Months Ended
	Jul. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	Details of goodwill and indefinite-lived intangible assets as of July 31, 2022 and October 31, 2021 were as follows: July 31, 2022 October 31, 2021 Goodwill Indefinite-lived Total Goodwill Indefinite-lived Total (In millions) Semiconductor Systems $ 2,441 $ 16 $ 2,457 $ 2,207 $ — $ 2,207 Applied Global Services 1,032 — 1,032 1,032 — 1,032 Display and Adjacent Markets 199 — 199 199 — 199 Corporate and Other 41 — 41 41 — 41 Carrying amount $ 3,713 $ 16 $ 3,729 $ 3,479 $ — $ 3,479
Summary of purchased technology and intangible assets	A summary of Applied’s purchased technology and intangible assets is set forth below: July 31, 2022 October 31, 2021 (In millions) Purchased technology, net $ 255 $ 46 Intangible assets - finite-lived, net 66 58 Intangible assets - indefinite-lived 16 — Total $ 337 $ 104
Finite-lived intangible assets	Details of finite-lived intangible assets were as follows: July 31, 2022 October 31, 2021 Purchased Other Total Purchased Other Total (In millions) Gross carrying amount: Semiconductor Systems $ 1,700 $ 274 $ 1,974 $ 1,476 $ 256 $ 1,732 Applied Global Services 35 44 79 35 44 79 Display and Adjacent Markets 158 36 194 163 38 201 Corporate and Other 18 18 36 13 16 29 Gross carrying amount $ 1,911 $ 372 $ 2,283 $ 1,687 $ 354 $ 2,041 Accumulated amortization: Semiconductor Systems $ (1,455) $ (211) $ (1,666) $ (1,446) $ (203) $ (1,649) Applied Global Services (33) (44) (77) (32) (44) (76) Display and Adjacent Markets (158) (36) (194) (161) (38) (199) Corporate and Other (10) (15) (25) (2) (11) (13) Accumulated amortization $ (1,656) $ (306) $ (1,962) $ (1,641) $ (296) $ (1,937) Carrying amount $ 255 $ 66 $ 321 $ 46 $ 58 $ 104
Summary of amortization expense	Details of amortization expense by segment were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Semiconductor Systems $ 9 $ 9 $ 22 $ 31 Applied Global Services — 1 1 1 Display and Adjacent Markets — 1 2 4 Corporate & Other 2 — 5 1 Total $ 11 $ 11 $ 30 $ 37
Schedule of categories amortization expense was charged to	Amortization expense was charged to the following categories: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Cost of products sold $ 7 $ 7 $ 20 $ 22 Research, development and engineering — — — 1 Marketing and selling 4 4 10 14 Total $ 11 $ 11 $ 30 $ 37
Future estimated amortization expense	As of July 31, 2022, future estimated amortization expense of intangible assets with finite lives is expected to be as follows: Amortization Expense (In millions) 2022 (remaining 3 months) $ 10 2023 41 2024 38 2025 36 2026 36 Thereafter 160 Total $ 321

Borrowing Facilities and Debt (

Borrowing Facilities and Debt (Tables)	9 Months Ended
Borrowing Facilities and Debt (Tables)	Jul. 31, 2022
Debt Disclosure [Abstract]
Debt outstanding	Debt outstanding as of July 31, 2022 and October 31, 2021 was as follows: Principal Amount July 31, October 31, 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 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 5,500 5,500 Total unamortized discount (12) (14) Total unamortized debt issuance costs (32) (34) Total long-term debt $ 5,456 $ 5,452

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Jul. 31, 2022
Leases [Abstract]
Lease expense	The components of lease expense and supplemental information were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions, except percentages) Operating lease cost $26 $20 $69 $58 Weighted-average remaining lease term (in years) 7.2 4.7 Weighted-average discount rate 2.3% 1.6% Nine Months Ended July 31, August 1, (In millions) Operating cash flows paid for operating leases $ 69 $ 58 Right-of-use assets obtained in exchange for operating lease liabilities $ 192 $ 48
Operating lease, maturities of lease liabilities	As of July 31, 2022, the maturities of lease liabilities are as follows: Operating Leases Fiscal (In millions) 2022 (remaining 3 months) $ 37 2023 92 2024 82 2025 63 2026 33 Thereafter 128 Total lease payments $ 435 Less imputed interest (35) Total $ 400

Severance and Related Charges (

Severance and Related Charges (Tables)	9 Months Ended
Severance and Related Charges (Tables)	Jul. 31, 2022
Restructuring and Related Activities [Abstract]
Schedule of severance and related charges by segment	Severance and related charges and adjustments by segment were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (In millions) Display and Adjacent Markets $ — $ — $ — $ 8 Corporate and Other — — (4) 150 Total $ — $ — $ (4) $ 158
Schedule of changes in severance and related charges reserves	Changes in severance and related charges reserves related to the Fiscal 2021 Severance Plan described above for the nine months ended July 31, 2022 were as follows: Severance and Related Charges Reserves (In millions) Balance as of October 31, 2021 $ 17 Adjustment to provision for severance (4) Consumption of reserves (12) Balance as of January 30, 2022 1 Consumption of reserves — Balance as of May 1, 2022 1 Consumption of reserves — Balance as of July 31, 2022 $ 1

Stockholders' Equity, Compreh_2

Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)	9 Months Ended
	Jul. 31, 2022
Equity [Abstract]
Components of accumulated other comprehensive loss, after-tax basis	Changes in the components of accumulated other comprehensive income (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 31, 2021 $ (1) $ (103) $ (169) $ 13 $ (260) Other comprehensive income (loss) before reclassifications (36) 73 — — 37 Amounts reclassified out of AOCI (9) (27) — — (36) Other comprehensive income (loss), net of tax (45) 46 — — 1 Balance as of July 31, 2022 $ (46) $ (57) $ (169) $ 13 $ (259) 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 25, 2020 $ 20 $ (133) $ (199) $ 13 $ (299) Other comprehensive income (loss) before reclassifications (7) 14 — — 7 Amounts reclassified out of AOCI (4) 4 — — — Other comprehensive income (loss), net of tax (11) 18 — — 7 Balance as of August 1, 2021 $ 9 $ (115) $ (199) $ 13 $ (292)
Summary of stock repurchases	The following table summarizes Applied’s stock repurchases for the three and nine months ended July 31, 2022 and August 1, 2021: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, (in millions, except per share amount) Shares of common stock repurchased 10 11 37 17 Cost of stock repurchased $ 1,000 $ 1,500 $ 4,603 $ 2,250 Average price paid per share $ 102.09 $ 133.40 $ 125.85 $ 134.03
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 31, August 1, July 31, August 1, (In millions) Cost of products sold $ 34 $ 28 $ 112 $ 93 Research, development and engineering 35 30 115 101 Marketing and selling 11 11 37 34 General and administrative 15 12 50 44 Total share-based compensation $ 95 $ 81 $ 314 $ 272
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 Applied’s equity compensation plans during the nine months ended July 31, 2022 is presented below: Shares Weighted Average (In millions, except per share amounts) Outstanding as of October 31, 2021 13 $ 63.29 Granted 4 $ 136.18 Vested (5) $ 53.17 Canceled (1) $ 79.85 Outstanding as of July 31, 2022 11 $ 92.09
Schedule of employee stock purchase plan	Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Nine Months Ended July 31, 2022 August 1, 2021 Dividend yield 0.74% 0.72% Expected volatility 45.2% 44.6% Risk-free interest rate 0.60% 0.05% Expected life (in years) 0.5 0.5 Weighted average estimated fair value $35.79 $33.48

Warranty, Guarantees, Commitm_2

Warranty, Guarantees, Commitments and Contingencies (Tables)	9 Months Ended
	Jul. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Changes in the warranty reserves	Changes in the warranty reserves are presented below: Three Months Ended Nine Months Ended July 31, 2022 August 1, 2021 July 31, 2022 August 1, 2021 (In millions) Beginning balance $ 262 $ 216 $ 242 $ 201 Warranties issued 64 61 189 162 Change in reserves related to preexisting warranty 4 4 9 9 Consumption of reserves (57) (49) (167) (140) Ending balance $ 273 $ 232 $ 273 $ 232

Industry Segment Operations (Ta

Industry Segment Operations (Tables)	9 Months Ended
Industry Segment Operations (Tables)	Jul. 31, 2022
Segment Reporting [Abstract]
Net sales and operating income (loss) for each reportable segment	Net sales and operating income (loss) for each reportable segment were as follows: Three Months Ended Nine Months Ended Net Sales Operating Net Sales Operating (In millions) July 31, 2022: Semiconductor Systems $ 4,734 $ 1,701 $ 13,759 $ 5,120 Applied Global Services 1,420 434 4,123 1,259 Display and Adjacent Markets 333 69 1,080 226 Corporate and Other 33 (280) 74 (811) Total $ 6,520 $ 1,924 $ 19,036 $ 5,794 August 1, 2021: Semiconductor Systems $ 4,454 $ 1,785 $ 11,979 $ 4,588 Applied Global Services 1,286 393 3,644 1,083 Display and Adjacent Markets 431 99 1,217 229 Corporate and Other 25 (264) 100 (1,025) Total $ 6,196 $ 2,013 $ 16,940 $ 4,875
Revenue from external customers by geographic areas	Net sales 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 31, August 1, Change July 31, August 1, Change (In millions, except percentages) China $ 1,797 27 % $ 2,251 36 % (20) % $ 5,917 31 % $ 5,478 32 % 8 % Korea 1,224 19 % 1,291 21 % (5) % 3,313 18 % 4,008 23 % (17) % Taiwan 1,537 24 % 1,261 20 % 22 % 4,194 22 % 3,502 21 % 20 % Japan 438 7 % 449 7 % (2) % 1,406 7 % 1,349 8 % 4 % Southeast Asia 270 4 % 173 3 % 56 % 633 3 % 472 3 % 34 % Asia Pacific 5,266 81 % 5,425 87 % (3) % 15,463 81 % 14,809 87 % 4 % United States 725 11 % 533 9 % 36 % 2,274 12 % 1,365 8 % 67 % Europe 529 8 % 238 4 % 122 % 1,299 7 % 766 5 % 70 % Total $ 6,520 100 % $ 6,196 100 % 5 % $ 19,036 100 % $ 16,940 100 % 12 %
Disaggregation of revenue	Net sales for Semiconductor Systems by end use application for the periods indicated were as follows: Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, Foundry, logic and other 66 % 63 % 64 % 59 % Dynamic random-access memory (DRAM) 15 % 20 % 20 % 17 % Flash memory 19 % 17 % 16 % 24 % 100 % 100 % 100 % 100 %
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 31, August 1, July 31, August 1, (In millions) Unallocated net sales $ 33 $ 25 $ 74 $ 100 Unallocated cost of products sold and expenses (218) (208) (575) (549) Share-based compensation (95) (81) (314) (272) Severance and related charges — — 4 (150) Deal termination fee — — — (154) Total $ (280) $ (264) $ (811) $ (1,025)
Companies accounted for at least 10 percent of net sales	The following customers accounted for at least 10 percent of Applied’s net sales for the nine months ended July 31, 2022, and sales to these customers included products and services from multiple reportable segments. Percentage of Net Sales Taiwan Semiconductor Manufacturing Company Limited 18 % Samsung Electronics Co., Ltd. 12 % Intel Corporation 11 %

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Numerator:
Net income	$ 1,606	$ 1,716	$ 4,934	$ 4,176
Denominator:
Weighted average common shares outstanding (in shares)	864	908	877	914
Effect of dilutive restricted stock units and employee stock purchase plan shares (in shares)	5	10	6	9
Denominator for diluted earnings per share (in shares)	869	918	883	923
Basic earnings per share (in dollars per share)	$ 1.86	$ 1.89	$ 5.63	$ 4.57
Diluted earnings per share (in dollars per share)	$ 1.85	$ 1.87	$ 5.59	$ 4.52
Potentially dilutive securities (in shares)	3	0	2	0

Cash, Cash Equivalents and In_3

Cash, Cash Equivalents and Investments - Summary of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021	Aug. 01, 2021
Summary of Cash, Cash Equivalents and Investments
Cash	$ 1,284	$ 1,407
Total Cash equivalents	1,672	3,588
Total Cash and Cash equivalents	2,956	4,995	$ 6,066
Equity investments and equity securities without readily determinable, cost	670	583
Equity investments and equity securities without readily determinable, gross unrealized gains	148	121
Equity investments and equity securities without readily determinable, gross unrealized losses	32	17
Equity investments and equity securities without readily determinable, fair value	786	687
Total short-term and long-term investments cost	2,564	2,411
Gross unrealized gains on short-term and long-term investments	149	129
Gross unrealized losses on short-term and long-term investments	74	21
Total short-term and long-term investments	2,639	2,519
Cash, cash equivalents and investments, cost	5,520	7,406
Cash, cash equivalents and investments, gross unrealized gains	149	129
Cash, cash equivalents and investments, gross unrealized losses	74	21
Cash, cash equivalents and investments, estimated fair value	5,595	7,514
Total fixed income securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	1,894	1,828
Gross unrealized gains on fixed income securities	1	8
Gross unrealized losses on fixed income securities	42	4
Estimated fair value of fixed income securities	1,853	1,832
Bank certificate of deposit
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	6
Gross unrealized gains on fixed income securities	0
Gross unrealized losses on fixed income securities	0
Estimated fair value of fixed income securities	6
U.S. Treasury and agency securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	399	314
Gross unrealized gains on fixed income securities	0	0
Gross unrealized losses on fixed income securities	7	0
Estimated fair value of fixed income securities	392	314
Non-U.S. government securities \| CANADA
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	8	5
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	8	5
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	368	367
Gross unrealized gains on fixed income securities	1	3
Gross unrealized losses on fixed income securities	8	1
Estimated fair value of fixed income securities	361	369
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	671	587
Gross unrealized gains on fixed income securities	0	2
Gross unrealized losses on fixed income securities	14	2
Estimated fair value of fixed income securities	657	587
Asset-backed and mortgage-backed securities
Summary of Cash, Cash Equivalents and Investments
Cost of fixed income securities	442	555
Gross unrealized gains on fixed income securities	0	3
Gross unrealized losses on fixed income securities	13	1
Estimated fair value of fixed income securities	429	557
Publicly traded equity securities
Summary of Cash, Cash Equivalents and Investments
Equity investments cost	87	22
Equity investments unrealized gain	65	39
Equity investments unrealized loss	16	3
Equity investments estimated fair value	136	58
Equity investments in privately-held companies
Summary of Cash, Cash Equivalents and Investments
Equity securities without readily determinable, cost	583	561
Equity securities without readily determinable, gross unrealized gains	83	82
Equity securities without readily determinable, gross unrealized losses	16	14
Equity securities without readily determinable, fair value	650	629
Money market funds
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	1,381	3,556
Municipal securities
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	11	22
Commercial paper, corporate bonds and medium-term notes
Summary of Cash, Cash Equivalents and Investments
Total Cash equivalents	$ 280	$ 10

Cash, Cash Equivalents and In_4

Cash, Cash Equivalents and Investments - Summary of Contractual Maturity (Details) $ in Millions	Jul. 31, 2022 USD ($)
Contractual maturities of investments
Due in one year or less, Cost	$ 571
Due after one through five years, Cost	880
Due after five years, Cost	2
No single maturity date, Cost	1,111
Total short-term and long-term investments cost	2,564
Due in one year or less, Estimated Fair Value	568
Due after one through five years, Estimated Fair Value	854
Due after five years, Estimated Fair Value	2
No single maturity date, Estimated Fair Value	1,215
Estimated fair value of short-term and long-term investments	$ 2,639

Cash, Cash Equivalents and In_5

Cash, Cash Equivalents and Investments - Gain (Loss) on Equity Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Gain (Loss) on Securities [Line Items]
Total gain (loss) on equity investments, net	$ (17)	$ 19	$ 16	$ 47
Publicly traded equity securities
Gain (Loss) on Securities [Line Items]
Unrealized gain	3	1	21	12
Unrealized loss	(23)	(4)	(33)	(6)
Realized gain on sales	3	0	5	0
Equity investments in privately-held companies
Gain (Loss) on Securities [Line Items]
Unrealized gain	7	19	32	50
Unrealized loss	(5)	(3)	(5)	(11)
Realized gain on sales	0	6	2	9
Realized loss on sales or impairment	$ (2)	$ 0	$ (6)	$ (7)

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021	Aug. 01, 2021
Equity investments with readily determinable values
Restricted cash equivalents included in deferred income taxes and other assets	$ 104		$ 108
Money market funds \| Deferred Income Taxes and Other Assets, Net
Equity investments with readily determinable values
Restricted cash equivalents included in deferred income taxes and other assets	104	$ 106
Bank certificate of deposit
Assets:
Available-for-sale debt security investments	6
U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	392	314
Municipal securities
Assets:
Available-for-sale debt security investments	361	369
Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	657	587
Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	429	557
Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	136	58
Recurring fair value measurements
Assets:
Available-for-sale debt security investments	3,629	5,526
Equity investments with readily determinable values
Equity investments with readily determinable values	136	58
Total	3,765	5,584
Recurring fair value measurements \| Money market funds
Assets:
Available-for-sale debt security investments	1,485	3,662
Recurring fair value measurements \| Bank certificate of deposit
Assets:
Available-for-sale debt security investments	6	0
Recurring fair value measurements \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	392	314
Recurring fair value measurements \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	8	5
Recurring fair value measurements \| Municipal securities
Assets:
Available-for-sale debt security investments	372	391
Recurring fair value measurements \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	937	597
Recurring fair value measurements \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	429	557
Recurring fair value measurements \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	136	58
Recurring fair value measurements \| Level 1
Assets:
Available-for-sale debt security investments	1,860	3,958
Equity investments with readily determinable values
Equity investments with readily determinable values	136	58
Total	1,996	4,016
Recurring fair value measurements \| Level 1 \| Money market funds
Assets:
Available-for-sale debt security investments	1,485	3,662
Recurring fair value measurements \| Level 1 \| Bank certificate of deposit
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	375	296
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
Equity investments with readily determinable values
Equity investments with readily determinable values	136	58
Recurring fair value measurements \| Level 2
Assets:
Available-for-sale debt security investments	1,769	1,568
Equity investments with readily determinable values
Equity investments with readily determinable values	0	0
Total	1,769	1,568
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 certificate of deposit
Assets:
Available-for-sale debt security investments	6	0
Recurring fair value measurements \| Level 2 \| U.S. Treasury and agency securities
Assets:
Available-for-sale debt security investments	17	18
Recurring fair value measurements \| Level 2 \| Non-U.S. government securities
Assets:
Available-for-sale debt security investments	8	5
Recurring fair value measurements \| Level 2 \| Municipal securities
Assets:
Available-for-sale debt security investments	372	391
Recurring fair value measurements \| Level 2 \| Commercial paper, corporate bonds and medium-term notes
Assets:
Available-for-sale debt security investments	937	597
Recurring fair value measurements \| Level 2 \| Asset-backed and mortgage-backed securities
Assets:
Available-for-sale debt security investments	429	557
Recurring fair value measurements \| Level 2 \| Publicly traded equity securities
Equity investments with readily determinable values
Equity investments with readily determinable values	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - Senior Notes - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, principal amount	$ 5,500	$ 5,500
Estimated fair value \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt fair value	$ 5,500	$ 6,400

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Billions	9 Months Ended
	Jul. 31, 2022	Oct. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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	$ 2.8	$ 2.1

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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 35	$ 3	$ 94	$ 18
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion - gain (loss) recognized in AOCI	$ 35	$ 3	$ 94	$ 18

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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Net Sales	$ 6,520	$ 6,196	$ 19,036	$ 16,940
Cost of products sold	3,514	3,229	10,144	8,971
Research, development and engineering	705	640	2,045	1,863
Marketing and selling	180	159	520	454
General and administrative	197	155	537	465
Interest expense	56	57	171	179
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	18	3	35	(6)
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	(1)	(1)	(2)
Foreign exchange contracts \| Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Consolidated Condensed Statement of Operations	32	2	59	(3)
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	0	0	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	(4)	3	(7)	3
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	(1)	0	(2)
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	(4)	1	(4)	3
Amount of Gain (Loss) Excluded from Effectiveness Testing Recognized in Consolidated Condensed Statement of Operations	0	0	(1)	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	(1)	0	(2)	0
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)	1
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	(4)	(4)	(10)	(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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 20	$ 9	$ 19	$ 45
Foreign exchange contracts \| Interest and other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	21	3	41	19
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	(1)	(1)	(1)	(1)
Total return swaps - deferred compensation \| Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	0	1	(2)	3
Total return swaps - deferred compensation \| Operating expenses
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives not designated as hedging instruments	$ 0	$ 6	$ (19)	$ 24

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($)	3 Months Ended		9 Months Ended
Accounts Receivable, Net (Details) - USD ($)	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021	Oct. 31, 2021
Receivables [Abstract]
Factored accounts receivable	$ 251,000,000	$ 309,000,000	$ 821,000,000	$ 980,000,000
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 - Schedule of

Contract Balances - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 161	$ 201
Contract liabilities	$ 2,828	$ 2,076

Contract Balances - Narrative (

Contract Balances - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized			$ 1,800
Accounts receivable, credit losses	$ 0	$ 0	0	$ 0
Contract assets, credit losses	0	$ 0	0	$ 0
Long-term Contract with Customer
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 2,000		$ 2,000

Contract Balances - Expecting T

Contract Balances - Expecting Timing of Satisfaction (Details)	Jul. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	12 months
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue expected to be recognized within twelve months	42%
Long-term Contract with Customer \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01
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. 31, 2022	Oct. 31, 2021
Inventories
Customer service spares	$ 1,350	$ 1,251
Raw materials	1,752	1,136
Work-in-process	1,090	873
Finished goods	1,314	1,049
Inventories	5,506	4,309
Inventory at customer locations included in finished goods	28	58
Inventory, finished goods, evaluation inventory, net of reserves	$ 398	$ 380

Balance Sheet Detail - Other Cu

Balance Sheet Detail - Other Current Assets (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Other Current Assets [Abstract]
Prepaid income taxes and income taxes receivable	$ 576	$ 593
Prepaid expenses and other	848	793
Other Current Assets	$ 1,424	$ 1,386

Balance Sheet Detail - Property

Balance Sheet Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2022	Oct. 31, 2021
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 5,495	$ 4,980
Accumulated depreciation	(3,301)	(3,046)
Property, Plant and Equipment, Net	2,194	1,934
Land and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	389	334
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 2,007	1,780
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	$ 2,048	1,820
Demonstration and manufacturing equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Life	3 years
Demonstration and manufacturing equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Life	5 years
Furniture, fixtures and other equipment
Property, Plant and Equipment [Line Items]
Gross property, plant and equipment	$ 718	720
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	$ 333	$ 326

Balance Sheet Detail - Deferred

Balance Sheet Detail - Deferred Income Taxes and Other Assets (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Balance Sheet Detail [Abstract]
Non-current deferred income taxes	$ 1,474	$ 1,623
Operating lease right-of-use assets	401	294
Income tax receivables and other assets	561	229
Deferred Income Taxes and Other Assets	$ 2,436	$ 2,146

Balance Sheet Detail - Accounts

Balance Sheet Detail - Accounts Payable and Accrued Expense (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Accounts Payable and Accrued Expenses
Accounts payable	$ 1,686	$ 1,472
Compensation and employee benefits	774	924
Warranty	273	242
Dividends payable	224	214
Income taxes payable	272	734
Other accrued taxes	26	24
Interest payable	55	39
Operating lease liabilities, current	98	73
Other	597	546
Accounts Payable and Accrued Expenses	$ 4,005	$ 4,268

Balance Sheet Detail - Other Li

Balance Sheet Detail - Other Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Other Liabilities
Defined and postretirement benefit plans	$ 173	$ 193
Operating lease liabilities, non-current	302	228
Other	372	271
Other Liabilities	$ 847	$ 692

Goodwill, Purchased Technolog_3

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Goodwill [Line Items]
Goodwill	$ 3,713	$ 3,479
Intangible assets - indefinite-lived	16	0
Total	3,729	3,479
Corporate and Other
Goodwill [Line Items]
Goodwill	41	41
Intangible assets - indefinite-lived	0	0
Total	41	41
Semiconductor Systems \| Operating Segments
Goodwill [Line Items]
Goodwill	2,441	2,207
Intangible assets - indefinite-lived	16	0
Total	2,457	2,207
Applied Global Services \| Operating Segments
Goodwill [Line Items]
Goodwill	1,032	1,032
Intangible assets - indefinite-lived	0	0
Total	1,032	1,032
Display and Adjacent Markets \| Operating Segments
Goodwill [Line Items]
Goodwill	199	199
Intangible assets - indefinite-lived	0	0
Total	$ 199	$ 199

Goodwill, Purchased Technolog_4

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Purchased Technology and Intangible Assets (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 321	$ 104
Intangible assets - indefinite-lived	16	0
Total	337	104
Purchased technology, net
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	255	46
Other Intangible Assets
Summary of Purchased Technology and Intangible Assets [Line Items]
Finite lived assets	$ 66	$ 58

Goodwill, Purchased Technolog_5

Goodwill, Purchased Technology and Other Intangible Assets - Additional Information (Details) $ in Millions	9 Months Ended
	Jul. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill, period increase	$ 234
Other indefinite-lived intangible assets increase	$ 16
Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible assets, useful life	15 years

Goodwill, Purchased Technolog_6

Goodwill, Purchased Technology and Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Finite-lived intangible assets
Gross carrying amount:	$ 2,283	$ 2,041
Accumulated amortization:	(1,962)	(1,937)
Total	321	104
Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	36	29
Accumulated amortization:	(25)	(13)
Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,974	1,732
Accumulated amortization:	(1,666)	(1,649)
Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	79	79
Accumulated amortization:	(77)	(76)
Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	194	201
Accumulated amortization:	(194)	(199)
Purchased technology, net
Finite-lived intangible assets
Gross carrying amount:	1,911	1,687
Accumulated amortization:	(1,656)	(1,641)
Total	255	46
Purchased technology, net \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	18	13
Accumulated amortization:	(10)	(2)
Purchased technology, net \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	1,700	1,476
Accumulated amortization:	(1,455)	(1,446)
Purchased technology, net \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	35	35
Accumulated amortization:	(33)	(32)
Purchased technology, net \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	158	163
Accumulated amortization:	(158)	(161)
Other Intangible Assets
Finite-lived intangible assets
Gross carrying amount:	372	354
Accumulated amortization:	(306)	(296)
Total	66	58
Other Intangible Assets \| Corporate and Other
Finite-lived intangible assets
Gross carrying amount:	18	16
Accumulated amortization:	(15)	(11)
Other Intangible Assets \| Semiconductor Systems \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	274	256
Accumulated amortization:	(211)	(203)
Other Intangible Assets \| Applied Global Services \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	44	44
Accumulated amortization:	(44)	(44)
Other Intangible Assets \| Display and Adjacent Markets \| Operating Segments
Finite-lived intangible assets
Gross carrying amount:	36	38
Accumulated amortization:	$ (36)	$ (38)

Goodwill, Purchased Technolog_7

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 11	$ 11	$ 30	$ 37
Corporate and Other
Finite-Lived Intangible Assets [Line Items]
Amortization expense	2	0	5	1
Semiconductor Systems \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	9	9	22	31
Applied Global Services \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	1	1	1
Display and Adjacent Markets \| Operating Segments
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 0	$ 1	$ 2	$ 4

Goodwill, Purchased Technolog_8

Goodwill, Purchased Technology and Other Intangible Assets - Amortization Expense by Income Statement Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 11	$ 11	$ 30	$ 37
Cost of products sold
Finite-Lived Intangible Assets [Line Items]
Amortization expense	7	7	20	22
Research, development and engineering
Finite-Lived Intangible Assets [Line Items]
Amortization expense	0	0	0	1
Marketing and selling
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 4	$ 4	$ 10	$ 14

Goodwill, Purchased Technolog_9

Goodwill, Purchased Technology and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Amortization Expense
2022 (remaining 3 months)	$ 10
2023	41
2024	38
2025	36
2026	36
Thereafter	160
Total	$ 321	$ 104

Borrowing Facilities and Debt -

Borrowing Facilities and Debt - Additional Information (Details) - USD ($)	1 Months Ended
	Feb. 29, 2020	Jul. 31, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Commercial paper		$ 1,500,000,000
Foreign Line of Credit
Debt Instrument [Line Items]
Available credit agreement		58,000,000
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
Commercial paper
Debt Instrument [Line Items]
Short-term debt		$ 0	$ 0

Borrowing Facilities and Debt_2

Borrowing Facilities and Debt - Debt Outstanding (Details) - USD ($) $ in Millions	Jul. 31, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Total long-term senior notes	$ 5,456	$ 5,452
Senior Notes
Debt Instrument [Line Items]
Long-term debt, principal amount	5,500	5,500
Total unamortized discount	(12)	(14)
Total unamortized debt issuance costs	$ (32)	(34)
Senior Notes \| 3.900% Senior Notes Due 2025
Debt Instrument [Line Items]
Stated interest rate (as percent)	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 (as percent)	3.30%
Long-term debt, principal amount	$ 1,200	1,200
Effective Interest Rate	3.342%
Senior Notes \| 1.750% Senior Notes Due 2030
Debt Instrument [Line Items]
Stated interest rate (as percent)	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 (as percent)	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 (as percent)	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 (as percent)	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 (as percent)	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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Leases [Abstract]
Operating lease cost	$ 26	$ 20	$ 69	$ 58
Weighted-average remaining lease term (in years)	7 years 2 months 12 days	4 years 8 months 12 days	7 years 2 months 12 days	4 years 8 months 12 days
Weighted-average discount rate	2.30%	1.60%	2.30%	1.60%
Operating cash flows paid for operating leases			$ 69	$ 58
Right-of-use assets obtained in exchange for operating lease liabilities			$ 192	$ 48

Leases - Lease Maturities (Deta

Leases - Lease Maturities (Details) $ in Millions	Jul. 31, 2022 USD ($)
Leases [Abstract]
2022 (remaining 3 months)	$ 37
2023	92
2024	82
2025	63
2026	33
Thereafter	128
Total lease payments	435
Less imputed interest	(35)
Total	$ 400

Severance and Related Charges -

Severance and Related Charges - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Jul. 31, 2022	Jan. 30, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Restructuring Cost and Reserve [Line Items]
Adjustment to provision for severance	$ 0		$ 0	$ (4)	$ 158
Employee Severance
Restructuring Cost and Reserve [Line Items]
Adjustment to provision for severance		$ (4)		$ (4)	$ 158

Severance and Related Charges_2

Severance and Related Charges - Schedule of Severance Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Restructuring Cost and Reserve [Line Items]
Adjustment to provision for severance	$ 0	$ 0	$ (4)	$ 158
Display and Adjacent Markets
Restructuring Cost and Reserve [Line Items]
Adjustment to provision for severance	0	0	0	8
Corporate and Other
Restructuring Cost and Reserve [Line Items]
Adjustment to provision for severance	$ 0	$ 0	$ (4)	$ 150

Severance and Related Charges_3

Severance and Related Charges - Schedule of Changes in Severance and Related Charges Reserves (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Jul. 31, 2022	May 01, 2022	Jan. 30, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Restructuring Reserve [Roll Forward]
Adjustment to provision for severance	$ 0			$ 0	$ (4)	$ 158
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	1	$ 1	$ 17		17
Adjustment to provision for severance			(4)		(4)	$ 158
Consumption of reserves	0	0	(12)
Restructuring reserve, ending balance	$ 1	$ 1	$ 1		$ 1

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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 11,579	$ 11,993	$ 12,247	$ 10,578
Other comprehensive income (loss) before reclassifications			37	7
Amounts reclassified out of AOCI			(36)	0
Other comprehensive income (loss), net of tax	16	(2)	1	7
Ending Balance	12,070	12,060	12,070	12,060
Unrealized Gain (Loss) on Investments, Net
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(1)	20
Other comprehensive income (loss) before reclassifications			(36)	(7)
Amounts reclassified out of AOCI			(9)	(4)
Other comprehensive income (loss), net of tax			(45)	(11)
Ending Balance	(46)	9	(46)	9
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(103)	(133)
Other comprehensive income (loss) before reclassifications			73	14
Amounts reclassified out of AOCI			(27)	4
Other comprehensive income (loss), net of tax			46	18
Ending Balance	(57)	(115)	(57)	(115)
Defined and Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance			(169)	(199)
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	(169)	(199)	(169)	(199)
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
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(275)	(290)	(260)	(299)
Other comprehensive income (loss), net of tax	16	(2)	1	7
Ending Balance	$ (259)	$ (292)	$ (259)	$ (292)

Stockholders' Equity, Compreh_4

Stockholders' Equity, Comprehensive Income and Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions	1 Months Ended			3 Months Ended			9 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jul. 31, 2022	Jan. 30, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021	Mar. 31, 2021
Equity [Line Items]
Amount authorized by board of directors to repurchase shares		$ 6,000,000,000							$ 7,500,000,000
Remaining authorized repurchase amount				$ 6,400,000,000			$ 6,400,000,000
Dividends declared per share (in dollars per share)	$ 0.26	$ 0.26	$ 0.24	$ 0.26		$ 0.24	$ 0.76	$ 0.70
Payments of dividends							$ 650,000,000	$ 622,000,000
Employee Stock
Equity [Line Items]
Performance of total shareholder return					100%		100%
Total unrecognized compensation expense				$ 711,000,000			$ 711,000,000
Weighted average period for unrecognized compensation expense to be recognized (in years)							2 years 9 months 18 days
Performance Shares
Equity [Line Items]
Additional performance-based awards to be earned upon certain levels of achievement (in shares)				0.9			0.9
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%
Employee Stock Incentive Plan
Equity [Line Items]
Number of shares available for grant (in shares)				32			32
Employee Stock Purchase Plan
Equity [Line Items]
Number of shares available for grant (in shares)				15			15
Employee stock purchase plan purchase period							6 months
Shares issued under employee stock purchase plans (in shares)							1	2
Employee Stock Purchase Plan \| Employee Stock
Equity [Line Items]
Purchase price of common stock							85%

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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Equity [Abstract]
Common stock repurchases (in shares)	10	11	37	17
Cost of stock repurchased	$ 1,000	$ 1,500	$ 4,603	$ 2,250
Average price paid per share (in dollars per share)	$ 102.09	$ 133.40	$ 125.85	$ 134.03

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. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 95	$ 81	$ 314	$ 272
Cost of products sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	34	28	112	93
Research, development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	35	30	115	101
Marketing and selling
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	11	11	37	34
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total share-based compensation	$ 15	$ 12	$ 50	$ 44

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. 31, 2022 $ / shares shares
Restricted stock units, restricted stock, performance shares and performance units
Beginning balance (in shares) \| shares	13
Granted (in shares) \| shares	4
Vested (in shares) \| shares	(5)
Canceled (in shares) \| shares	(1)
Ending balance (in shares) \| shares	11
Weighted Average Grant Date Fair Value
Beginning of period (in dollars per share) \| $ / shares	$ 63.29
Granted (in dollars per share) \| $ / shares	136.18
Vested (in dollars per share) \| $ / shares	53.17
Canceled (in dollars per share) \| $ / shares	79.85
Ending balance (in dollars per share) \| $ / shares	$ 92.09

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. 31, 2022	Aug. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.74%	0.72%
Expected volatility	45.20%	44.60%
Risk-free interest rate	0.60%	0.05%
Expected life (in years)	6 months	6 months
Weighted average estimated fair value (in dollars per share)	$ 35.79	$ 33.48

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate provision (as percent)	13.70%	13.30%	12.70%	12.40%

Warranty, Guarantees, Commitm_3

Warranty, Guarantees, Commitments and Contingencies - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 262	$ 216	$ 242	$ 201
Warranties issued	64	61	189	162
Change in reserves related to preexisting warranty	4	4	9	9
Consumption of reserves	(57)	(49)	(167)	(140)
Ending balance	$ 273	$ 232	$ 273	$ 232

Warranty, Guarantees, Commitm_4

Warranty, Guarantees, Commitments and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Jul. 31, 2022 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	$ 534
Parent guarantees to banks	$ 297

Industry Segment Operations - A

Industry Segment Operations - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022 USD ($)	Aug. 01, 2021 USD ($)	Jul. 31, 2022 USD ($) Segment	Aug. 01, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment			3
Business Acquisition [Line Items]
Deal termination fee	$ 0	$ 0	$ 0	$ 154
Kokusai Electric
Business Acquisition [Line Items]
Deal termination fee		$ 154		$ 154

Industry Segment Operations - N

Industry Segment Operations - Net Sales and Operating Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 6,520	$ 6,196	$ 19,036	$ 16,940
Operating Income (Loss)	1,924	2,013	5,794	4,875
Corporate and Other
Net sales and operating income (loss) for each reportable segment
Net Sales	33	25	74	100
Operating Income (Loss)	$ (280)	$ (264)	$ (811)	$ (1,025)
Semiconductor Systems \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	100%	100%	100%	100%
Semiconductor Systems \| Foundry, logic and other \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	66%	63%	64%	59%
Semiconductor Systems \| Dynamic random-access memory (DRAM) \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	15%	20%	20%	17%
Semiconductor Systems \| Flash memory \| Sales Revenue \| Product Concentration Risk
Net sales and operating income (loss) for each reportable segment
Percentage of net sales	19%	17%	16%	24%
Semiconductor Systems \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	$ 4,734	$ 4,454	$ 13,759	$ 11,979
Operating Income (Loss)	1,701	1,785	5,120	4,588
Applied Global Services \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	1,420	1,286	4,123	3,644
Operating Income (Loss)	434	393	1,259	1,083
Display and Adjacent Markets \| Operating Segments
Net sales and operating income (loss) for each reportable segment
Net Sales	333	431	1,080	1,217
Operating Income (Loss)	$ 69	$ 99	$ 226	$ 229

Industry Segment Operations -_2

Industry Segment Operations - Net Sales by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Segment Reporting Information [Line Items]
Net sales	$ 6,520	$ 6,196	$ 19,036	$ 16,940
Change	5%		12%
Asia Pacific
Segment Reporting Information [Line Items]
Net sales	$ 5,266	5,425	$ 15,463	14,809
Change	(3.00%)		4%
China
Segment Reporting Information [Line Items]
Net sales	$ 1,797	2,251	$ 5,917	5,478
Change	(20.00%)		8%
Korea
Segment Reporting Information [Line Items]
Net sales	$ 1,224	1,291	$ 3,313	4,008
Change	(5.00%)		(17.00%)
Taiwan
Segment Reporting Information [Line Items]
Net sales	$ 1,537	1,261	$ 4,194	3,502
Change	22%		20%
Japan
Segment Reporting Information [Line Items]
Net sales	$ 438	449	$ 1,406	1,349
Change	(2.00%)		4%
Southeast Asia
Segment Reporting Information [Line Items]
Net sales	$ 270	173	$ 633	472
Change	56%		34%
United States
Segment Reporting Information [Line Items]
Net sales	$ 725	533	$ 2,274	1,365
Change	36%		67%
Europe
Segment Reporting Information [Line Items]
Net sales	$ 529	$ 238	$ 1,299	$ 766
Change	122%		70%
Sales Revenue \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	100%	100%	100%	100%
Sales Revenue \| Asia Pacific \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	81%	87%	81%	87%
Sales Revenue \| China \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	27%	36%	31%	32%
Sales Revenue \| Korea \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	19%	21%	18%	23%
Sales Revenue \| Taiwan \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	24%	20%	22%	21%
Sales Revenue \| Japan \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	7%	7%	7%	8%
Sales Revenue \| Southeast Asia \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	4%	3%	3%	3%
Sales Revenue \| United States \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	11%	9%	12%	8%
Sales Revenue \| Europe \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net sales	8%	4%	7%	5%

Industry Segment Operations - R

Industry Segment Operations - Reconciliations of Total Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	$ 6,520	$ 6,196	$ 19,036	$ 16,940
Share-based compensation	(95)	(81)	(314)	(272)
Severance and related charges	0	0	4	(158)
Deal termination fee	0	0	0	(154)
Income from operations	1,924	2,013	5,794	4,875
Corporate and Other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Sales	33	25	74	100
Unallocated cost of products sold and expenses	(218)	(208)	(575)	(549)
Share-based compensation	(95)	(81)	(314)	(272)
Severance and related charges	0	0	4	(150)
Deal termination fee	0	0	0	(154)
Income from operations	$ (280)	$ (264)	$ (811)	$ (1,025)

Industry Segment Operations - P

Industry Segment Operations - Percentage by Customer (Details) - Customer Concentration Risk - Sales Revenue	9 Months Ended
	Jul. 31, 2022
Taiwan Semiconductor Manufacturing Company Limited
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	18%
Samsung Electronics Co., Ltd.
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	12%
Intel Corporation
Entity-Wide Revenue, Major Customer [Line Items]
Percentage of net sales	11%