Industry Segment Operations (Tables)

6 Months Ended

Apr. 26, 2020

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				Six Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)
	(In millions)
April 26, 2020:
Semiconductor Systems	$	2,567	$	782	$	5,381	$	1,697
Applied Global Services	1,018		256		2,015		534
Display and Adjacent Markets	365		75		697		113
Corporate and Other	7		(181)		26		(370)
Total	$	3,957	$	932	$	8,119	$	1,974
April 28, 2019:
Semiconductor Systems	$	2,184	$	579	$	4,452	$	1,210
Applied Global Services	984		283		1,946		568
Display and Adjacent Markets	348		42		855		157
Corporate and Other	23		(128)		39		(251)
Total	$	3,539	$	776	$	7,292	$	1,684

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										Six Months Ended
	April 26, 2020				April 28, 2019				Change		April 26, 2020				April 28, 2019				Change
	(In millions, except percentages)
China	$	1,138	29	%	$	993	28	%	15	%	$	2,410	30	%	$	1,961	27	%	23	%
Korea	753		19	%	441		13	%	71	%	1,261		16	%	1,013		14	%	24	%
Taiwan	1,029		26	%	794		22	%	30	%	2,394		29	%	1,450		20	%	65	%
Japan	467		12	%	520		15	%	(10)	%	818		10	%	1,171		16	%	(30)	%
Southeast Asia	58		1	%	119		3	%	(51)	%	130		1	%	279		4	%	(53)	%
Asia Pacific	3,445		87	%	2,867		81	%	20	%	7,013		86	%	5,874		81	%	19	%
United States	331		8	%	457		13	%	(28)	%	772		10	%	907		12	%	(15)	%
Europe	181		5	%	215		6	%	(16)	%	334		4	%	511		7	%	(35)	%
Total	$	3,957	100	%	$	3,539	100	%	12	%	$	8,119	100	%	$	7,292	100	%	11	%

Disaggregation of Revenue

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

	Three Months Ended				Six Months Ended
	April 26, 2020		April 28, 2019		April 26, 2020		April 28, 2019
Foundry, logic and other	56	%	58	%	62	%	51	%
Dynamic random-access memory (DRAM)	22	%	18	%	18	%	19	%
Flash memory	22	%	24	%	20	%	30	%
	100	%	100	%	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				Six Months Ended
	April 26, 2020		April 28, 2019		April 26, 2020		April 28, 2019
	(In millions)
Unallocated net sales	$	7	$	23	$	26	$	39
Unallocated cost of products sold and expenses	(117)		(86)		(232)		(160)
Share-based compensation	(71)		(65)		(164)		(130)
Total	$	(181)	$	(128)	$	(370)	$	(251)

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

The following customers accounted for at least 10 percent of Applied’s net sales for the six months ended April 26, 2020, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	26	%
Samsung Electronics Co., Ltd.	17	%