Goodwill, Purchased Technology and Other Intangible Assets (Tables)

9 Months Ended

Aug. 01, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Details of goodwill as of August 1, 2021 and October 25, 2020 were as follows:

 

	August 1, 2021		October 25, 2020
	(In millions)
Semiconductor Systems	$	2,207	$	2,208
Applied Global Services	1,032		1,018
Display and Adjacent Markets	199		199
Corporate and Other	41		41
Carrying amount	$	3,479	$	3,466

Summary of purchased technology and intangible assets

A summary of Applied’s purchased technology and intangible assets is set forth below:

	August 1, 2021		October 25, 2020
	(In millions)
Purchased technology, net	$	53	$	75
Intangible assets - finite-lived, net	63		78
Total	$	116	$	153

Finite-lived intangible assets

Details of finite-lived intangible assets were as follows:

 

	August 1, 2021						October 25, 2020
	Purchased Technology		Other Intangible Assets		Total		Purchased Technology		Other Intangible Assets		Total
	(In millions)
Gross carrying amount:
Semiconductor Systems	$	1,476	$	256	$	1,732	$	1,476	$	256	$	1,732
Applied Global Services	35		44		79		35		44		79
Display and Adjacent Markets	163		38		201		163		38		201
Corporate and Other	13		16		29		13		16		29
Gross carrying amount	$	1,687	$	354	$	2,041	$	1,687	$	354	$	2,041
Accumulated amortization:
Semiconductor Systems	$	(1,441)	$	(198)	$	(1,639)	$	(1,423)	$	(185)	$	(1,608)
Applied Global Services	(32)		(44)		(76)		(31)		(44)		(75)
Display and Adjacent Markets	(160)		(38)		(198)		(157)		(37)		(194)
Corporate and Other	(1)		(11)		(12)		(1)		(10)		(11)
Accumulated amortization	$	(1,634)	$	(291)	$	(1,925)	$	(1,612)	$	(276)	$	(1,888)
Carrying amount	$	53	$	63	$	116	$	75	$	78	$	153

Summary of amortization expense

Details of amortization expense by segment were as follows:

	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Semiconductor Systems	$	9	$	10	$	31	$	29
Applied Global Services	1		—		1		—
Display and Adjacent Markets	1		4		4		11
Corporate & Other	—		—		1		—
Total	$	11	$	14	$	37	$	40

Schedule of categories amortization expense was charged to

Amortization expense was charged to the following categories:

	Three Months Ended				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020
	(In millions)
Cost of products sold	$	7	$	10	$	22	$	27
Research, development and engineering	—		—		1		—
Marketing and selling	4		4		14		13
Total	$	11	$	14	$	37	$	40

Future estimated amortization expense

As of August 1, 2021, future estimated amortization expense is expected to be as follows: 

	Amortization Expense
	(In millions)
2021 (remaining 3 months)	$	12
2022	33
2023	20
2024	17
2025	15
Thereafter	19
Total	$	116