Industry Segment Operations (Tables)

3 Months Ended

Jan. 27, 2019

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
	Net Sales		Operating Income (Loss)
	(In millions)
January 27, 2019:
Semiconductor Systems	$	2,268	$	631
Applied Global Services	962		285
Display and Adjacent Markets	507		115
Corporate and Other	16		(123		)
Total	$	3,753	$	908
January 28, 2018:
Semiconductor Systems	$	2,852	$	1,024
Applied Global Services	881		255
Display and Adjacent Markets	443		90
Corporate and Other	29		(154		)
Total	$	4,205	$	1,215

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
	January 27, 2019				January 28, 2018
	(In millions, except percentages)
China	$	968	26	%	$	964	23	%
Korea	572		15	%	1,203		29	%
Taiwan	656		18	%	741		18	%
Japan	651		17	%	482		11	%
Southeast Asia	160		4	%	193		4	%
Asia Pacific	3,007		80	%	3,583		85	%
United States	450		12	%	370		9	%
Europe	296		8	%	252		6	%
Total	$	3,753	100	%	$	4,205	100	%

Disaggregation of Revenue

Net sales for Semiconductor Systems by end use application for the periods indicated were as follows:

	Three Months Ended
	January 27, 2019		January 28, 2018
Foundry, logic and other	44	%	37	%
Dynamic random-access memory (DRAM)	21	%	26	%
Flash memory	35	%	37	%
	100	%	100	%

Reconciliations of total segment operating income to Applied's consolidated operating income (loss)

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

	Three Months Ended
	January 27, 2019			January 28, 2018
	(In millions)
Unallocated net sales	$	16		$	29
Unallocated cost of products sold and expenses	(74		)	(118		)
Share-based compensation	(65		)	(65		)
Total	$	(123	)	$	(154	)

Companies accounted for at least 10 percent of Applied's net sales

The following customers accounted for at least 10 percent of Applied’s net sales for the three months ended January 27, 2019, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Toshiba	14	%
SK Hynix Inc.	13	%
Intel Corporation	13	%
Taiwan Semiconductor Manufacturing Company Limited	11	%