Industry Segment Operations (Tables)

9 Months Ended

Jul. 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				Nine Months Ended
	Net Sales		Operating Income (Loss)		Net Sales		Operating Income (Loss)
	(In millions)
July 26, 2020:
Semiconductor Systems	$	2,916	$	958	$	8,297	$	2,655
Applied Global Services	1,034		273		3,049		807
Display and Adjacent Markets	425		83		1,122		196
Corporate and Other	20		(206)		46		(576)
Total	$	4,395	$	1,108	$	12,514	$	3,082
July 28, 2019:
Semiconductor Systems	$	2,273	$	613	$	6,725	$	1,823
Applied Global Services	931		259		2,877		827
Display and Adjacent Markets	339		41		1,194		198
Corporate and Other	19		(111)		58		(362)
Total	$	3,562	$	802	$	10,854	$	2,486

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 26, 2020				July 28, 2019				Change		July 26, 2020				July 28, 2019				Change
	(In millions, except percentages)
China	$	1,470	33	%	$	1,117	31	%	32	%	$	3,880	31	%	$	3,078	28	%	26	%
Korea	1,051		24	%	445		12	%	136	%	2,312		18	%	1,458		13	%	59	%
Taiwan	687		16	%	596		17	%	15	%	3,081		25	%	2,046		19	%	51	%
Japan	472		11	%	556		16	%	(15)	%	1,290		10	%	1,727		16	%	(25)	%
Southeast Asia	120		2	%	134		4	%	(10)	%	250		2	%	413		4	%	(39)	%
Asia Pacific	3,800		86	%	2,848		80	%	33	%	10,813		86	%	8,722		80	%	24	%
United States	399		9	%	552		15	%	(28)	%	1,171		10	%	1,459		14	%	(20)	%
Europe	196		5	%	162		5	%	21	%	530		4	%	673		6	%	(21)	%
Total	$	4,395	100	%	$	3,562	100	%	23	%	$	12,514	100	%	$	10,854	100	%	15	%

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 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
Foundry, logic and other	55	%	49	%	60	%	50	%
Dynamic random-access memory (DRAM)	22	%	27	%	19	%	22	%
Flash memory	23	%	24	%	21	%	28	%
	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				Nine Months Ended
	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
	(In millions)
Unallocated net sales	$	20	$	19	$	46	$	58
Unallocated cost of products sold and expenses	(156)		(63)		(388)		(223)
Share-based compensation	(70)		(67)		(234)		(197)
Total	$	(206)	$	(111)	$	(576)	$	(362)

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 nine months ended July 26, 2020, and sales to these customers included products and services from multiple reportable segments.

	Percentage of Net Sales
Taiwan Semiconductor Manufacturing Company Limited	21	%
Samsung Electronics Co., Ltd.	19	%