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Purchased technology and other intangible assets, net (Note 8)

^[1]

1,336

^[1]

273

287

Deferred income taxes and other assets

^[1]

279

285

Total assets

^[1]

11,274

10,943

Current liabilities:

Current portion of long-term debt

^[1]

Accounts payable and accrued expenses (Note 7)

^[1]

1,582

1,766

Customer deposits and deferred revenue (Note 7)

^[1]

1,055

847

Income taxes payable

^[1]

276

274

Total current liabilities

^[1]

2,914

2,888

Long-term debt

^[1]

204

Employee benefits and other liabilities (Note 12)

^[1]

317

315

Total liabilities

^[1]

3,435

3,407

Stockholders' equity (Note 11):

Common stock

^[1]

Additional paid-in capital

^[1]

5,447

5,406

Retained earnings

^[1]

11,925

11,511

Treasury stock

^[1]

(9,546)

(9,396)

Accumulated other comprehensive income

^[1]

Total stockholders' equity

^[1]

7,839

7,536

Total liabilities and stockholders' equity

^[1]

$ 11,274

$ 10,943

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Consolidated Condensed Statements of Stockholders' Equity and Comprehensive Income (Loss) (Unaudited)
$ in Millions

3 Months Ended

Jan. 30, 2011

USD ($)

Components of comprehensive income, net of tax:

$ 7,536

^[1]

Net income

506

Change in unrealized net gain on investments

(1)

Change in unrealized net gain on derivative instruments

(1)

Comprehensive income

504

Dividends

(92)

Issuance under stock plans

$ 8

Issuance under stock plans, Shares | shares

Common stock repurchases

$ (150)

Common stock repurchases, Shares | shares

$ 7,839

^[1]

Common Stock

Beginning Balance, Shares | shares

$ 13

1,328,000,000

Components of comprehensive income, net of tax:

Issuance under stock plans, Shares | shares

2,000,000

Common stock repurchases, Shares | shares

(11,000,000)

Ending Balance, Shares | shares

$ 13

1,319,000,000

Additional Paid-In Capital

Components of comprehensive income, net of tax:

$ 5,406

Issuance under stock plans

5,447

Retained Earnings

Components of comprehensive income, net of tax:

11,511

506

(92)

11,925

Beginning Balance, Shares | shares

$ (9,396)

537,000,000

Components of comprehensive income, net of tax:

Common stock repurchases

$ (150)

Common stock repurchases, Shares | shares

11,000,000

Ending Balance, Shares | shares

$ (9,546)

548,000,000

Accumulated Other Comprehensive Income (Loss)

Components of comprehensive income, net of tax:

$ 2

Change in unrealized net gain on investments

(1)

Change in unrealized net gain on derivative instruments

(1)

Cash flows from operating activities:

$ 0

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

3 Months Ended

Jan. 30, 2011

Jan. 31, 2010

Net income

$ 506

$ 83

Adjustments required to reconcile net income to cash provided by operating activities:

Depreciation and amortization

Loss on fixed asset retirements

Provision for bad debts

Restructuring charges and asset impairments

(29)

104

Deferred income taxes

(44)

Net recognized loss on investments

Changes in operating assets and liabilities, net of amounts acquired:

Accounts receivable

(115)

(194)

Inventories

(100)

Income taxes receivable

Other current assets

(4)

Other assets

(9)

Accounts payable and accrued expenses

(159)

Customer deposits and deferred revenue

208

123

Income taxes payable

Employee benefits and other liabilities

(7)

Cash provided by operating activities

425

372

Cash flows from investing activities:

Capital expenditures

(24)

(53)

Cash paid for acquisition, net of cash acquired

(323)

Proceeds from sale of facility

Proceeds from sales and maturities of investments

443

184

Purchases of investments

(537)

(297)

Cash used in investing activities

(79)

(489)

Cash flows from financing activities:

Debt repayments, net

Proceeds from common stock issuances

Common stock repurchases

(150)

Payment of dividends to stockholders

(93)

(81)

Cash used in financing activities

(230)

(60)

Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) in cash and cash equivalents

116

(177)

Cash and cash equivalents - beginning of period

1,858

^[1]

1,576

Cash and cash equivalents - end of period

1,974

^[1]

1,399

Supplemental cash flow information:

Cash payments for income taxes

165

Cash refunds for income taxes

$ 1

$ 44

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Basis of Presentation

3 Months Ended

Jan. 30, 2011

Basis of Presentation [Abstract]

Basis of Presentation


Note 1	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, 2010 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, 2010 (2010 Form 10-K). Applied’s results of operations for the three months ended January 30, 2011 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2011 contains 52 weeks, while fiscal 2010 contained 53 weeks, and the first quarter of fiscal 2011 contained 13 weeks, while the first quarter of fiscal 2010 contained 14 weeks.

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 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.

Revenue Recognition

Applied recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is probable. Applied’s shipping terms are customarily FOB Applied shipping point or equivalent terms. Applied’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Applied recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer technical acceptance; (3) for transactions where legal title does not pass at shipment, revenue is recognized when legal title passes to the customer, which is generally at customer technical acceptance; (4) for arrangements containing multiple elements and initiated at or prior to October 25, 2009, the last day of fiscal 2009, the revenue relating to the undelivered elements is deferred at their estimated relative fair values until delivery of the deferred elements; and (5) for arrangements initiated or materially modified subsequent to October 25, 2009 containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. In cases where Applied has sold products that have been demonstrated to meet product specifications prior to shipment, Applied believes that at the time of delivery, it has an enforceable claim to amounts recognized as revenue. The completed contract method is used for SunFab^tm thin film lines. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided.

Applied elected to early adopt amended accounting standards issued by the Financial Accounting Standards Board (FASB) for multiple deliverable revenue arrangements on a prospective basis for applicable transactions originating or materially modified after October 25, 2009. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance when the software is essential to the tangible product’s functionality. Implementation of this new authoritative guidance had an insignificant impact on reported net sales as compared to net sales under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an inconsequential impact on the amount and timing of reported net sales.

For fiscal 2010 and subsequent periods, when a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.

Recent Accounting Pronouncements

In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations.

In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in fiscal 2012.

In January 2010, the FASB issued authoritative guidance for fair value measurements, which requires additional disclosures and clarifications to existing disclosures. This authoritative guidance requires a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and also to describe the reasons for these transfers. This authoritative guidance also requires enhanced disclosure of activity in Level 3 fair value measurements. The new disclosures and clarifications of existing disclosures for Level 1 and Level 2 fair value measurements became effective for Applied in the second quarter of fiscal 2010. Disclosures regarding activity within Level 3 fair value measurements become effective the first interim reporting period beginning after December 15, 2010. Applied will comply with this authoritative guidance in the second quarter of fiscal 2011. See Note 4 for information and related disclosures regarding Applied’s fair value measurements.

Earnings Per Share

3 Months Ended

Jan. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share


Note 2	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 stock options, restricted stock units, and employee stock purchase plans 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. For purposes of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair market value of Applied common stock for the period as the effect would be anti-dilutive.


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions, except per share amounts)

Numerator:
Net income	$	506	$	83
Denominator:
Weighted average common shares outstanding		1,324		1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares		11		8

Denominator for diluted earnings per share		1,335		1,350

Basic earnings per share	$	0.38	$	0.06
Diluted earnings per share	$	0.38	$	0.06
Potentially dilutive securities		19		46

Cash, Cash Equivalents and Investments

3 Months Ended

Jan. 30, 2011

Cash, Cash Equivalents and Investments [Abstract]

Cash, Cash Equivalents and Investments


Note 3	Cash, Cash Equivalents and Investments

Summary of Cash, Cash Equivalents and Investments

The following tables summarizes Applied’s cash, cash equivalents and investments by security type:


			Gross		Gross
			Unrealized		Unrealized		Estimated
January 30, 2011	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	699	$	—	$	—	$	699

Cash equivalents:
Money market funds		1,256		—		—		1,256
U.S. Treasury and agency securities		4		—		—		4
U.S. commercial paper, corporate bonds and medium-term notes		15		—		—		15

Total Cash equivalents		1,275		—		—		1,275

Total Cash and Cash equivalents	$	1,974	$	—	$	—	$	1,974

Short-term and long-term investments:
U.S. Treasury and agency securities	$	699	$	6	$	—	$	705
Obligations of states and political subdivisions		532		3		1		534
U.S. commercial paper, corporate bonds and medium-term notes		463		4		1		466
Other debt securities*		325		2		1		326

Total fixed income securities		2,019		15		3		2,031
Publicly traded equity securities		8		25		—		33
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	2,086	$	40	$	3	$	2,123

Total Cash, Cash equivalents and Investments	$	4,060	$	40	$	3	$	4,097


			Gross		Gross
			Unrealized		Unrealized		Estimated
October 31, 2010	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	701	$	—	$	—	$	701

Cash equivalents:
Money market funds		1,139		—		—		1,139
Obligations of states and political subdivisions		18		—		—		18

Total Cash equivalents		1,157		—		—		1,157

Total Cash and Cash equivalents	$	1,858	$	—	$	—	$	1,858

Short-term and long-term investments:
U.S. Treasury and agency securities	$	665	$	8	$	—	$	673
Obligations of states and political subdivisions		500		5		—		505
U.S. commercial paper, corporate bonds and medium-term notes		502		7		—		509
Other debt securities*		261		3		1		263

Total fixed income securities		1,928		23		1		1,950
Publicly traded equity securities		9		16		—		25
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	1,996	$	39	$	1	$	2,034

Total Cash, Cash equivalents and Investments	$	3,854	$	39	$	1	$	3,892


*		Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Maturities of Investments

The following table summarizes the contractual maturities of Applied’s investments at January 30, 2011:


			Estimated
	Cost		Fair Value
	(In millions)

Due in one year or less	$	734	$	735
Due after one through five years		957		966
Due after five years		3		4
No single maturity date**		392		418

	$	2,086	$	2,123


**		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

Gross realized gains and losses on sales of investments during the three months ended January 30, 2011 and January 31, 2010 were as follows:


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Gross realized gains	$	5	$	—
Gross realized losses	$	1	$	1

At January 30, 2011, Applied had a gross unrealized loss of $3 million due to a decrease in the fair value of certain fixed income securities. Applied regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss was considered to be temporary, or other-than-temporary and therefore impaired, include: the length of time and extent to which fair value has been lower than 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. Generally, the contractual terms of investments in marketable securities do not permit settlement at prices less than the amortized cost of the investments. Applied has determined that the gross unrealized losses on its marketable securities at January 30, 2011 are temporary in nature and therefore it did not recognize any impairment of its marketable securities for the three months ended January 30, 2011. For the three months ended January 31, 2010, Applied did not recognize any impairment of its marketable securities. During the three months ended January 31, 2010, Applied determined that certain of its equity investments in privately-held companies were other-than-temporarily impaired and, accordingly, recognized impairment charges in the amount of $1 million.

The following table provides the fair market value of Applied’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of January 30, 2011.


	In Loss Position for
	Less Than 12 Months				Total
			Gross				Gross
			Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses
	(In millions)

Obligations of states and political subdivisions	$	170	$	1	$	170	$	1
U.S. commercial paper, corporate bonds and medium-term notes		118		1		118		1
Other debt securities		105		1		105		1

Total	$	393	$	3	$	393	$	3

Unrealized gains and temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive income (loss), net of any related tax effect. Upon realization, those amounts are reclassified from accumulated other comprehensive income (loss) to results of operations.

Fair Value Measurements

3 Months Ended

Jan. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements


Note 4	Fair Value Measurements

Applied’s financial assets are measured and recorded at fair value, except for equity investments held in privately-held companies. These equity investments are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when events or circumstances indicate that an other-than-temporary 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 when events or circumstances indicate that an other-than-temporary decline in value may have occurred.

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 — Observable 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 are comprised 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.

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. As of January 30, 2011, 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.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities (excluding cash balances) measured at fair value on a recurring basis are summarized below as of January 30, 2011 and October 31, 2010:


	January 30, 2011										October 31, 2010
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In millions)										(In millions)

Assets:
Money market funds	$	1,256		—		$	—	$	1,256		$	1,139		—		$	—	$	1,139
U.S. Treasury and agency securities		127		582			—		709			153		520			—		673
Obligations of states and political subdivisions		—		534			—		534			—		523			—		523
U.S. commercial paper, corporate bonds and medium-term notes		—		481			—		481			—		509			—		509
Other debt securities		—		326			—		326			—		263			—		263
Publicly traded equity securities		33		—			—		33			25		—			—		25
Foreign exchange derivative assets		—		4			—		4			—		6			—		6

Total	$	1,416	$	1,927		$	—	$	3,343		$	1,317	$	1,821		$	—	$	3,138

Liabilities:
Foreign exchange derivative liabilities	$	—	$	(2	)	$	—	$	(2	)	$	—	$	(1	)	$	—	$	(1	)

Total	$	—	$	(2	)	$	—	$	(2	)	$	—	$	(1	)	$	—	$	(1	)

There were no significant transfers in and out of Level 1 and Level 2 fair value measurements during both the three months ended January 30, 2011 and January 31, 2010. Applied did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements during the three months ended January 30, 2011 and January 31, 2010, respectively.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

Equity investments in privately-held companies are generally accounted for under the cost method of accounting and are periodically assessed for other-than-temporary impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. If Applied determines that an other-than-temporary impairment has occurred, the investment will be written down to its estimated fair value based on available information, such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. Equity investments in privately-held companies totaled $59 million at January 30, 2011, of which $40 million of investments were accounted for under the cost method of accounting and $19 million of investments had been measured at fair value on a non-recurring basis due to an other-than-temporary decline in value. At January 31, 2010, equity investments in privately-held companies totaled $68 million, of which $52 million of investments were accounted for under the cost method of accounting and $16 million of investments had been measured at fair value on a non-recurring basis due to an other-than-temporary decline in value.

The following tables present the balances of equity securities at January 30, 2011 and January 31, 2010 that had been measured at fair value on a non-recurring basis, using the process described above, and the impairment charges recorded during the three months then ended:


							Impairment of
							Equity Investments
							in Privately-Held
	Level 1		Level 2		Level 3		Companies
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2011	$	—	$	—	$	19	$	—


							Impairment of
							Equity Investments
							in Privately-Held
	Level 1		Level 2		Level 3		Companies
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2010	$	—	$	—	$	16	$	1

Other

The carrying amounts of Applied’s financial instruments, including cash and cash equivalents, accounts receivable, notes payable, and accounts payable and accrued expenses, approximate fair value due to the short maturities of these financial instruments. At January 30, 2011, the carrying amount of long-term debt was $205 million and the estimated fair value was $240 million. At October 31, 2010, the carrying amount of long-term debt was $205 million and the estimated fair value was $238 million. The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues.

Derivative Instruments and Hedging Activities

3 Months Ended

Jan. 30, 2011

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities


Note 5	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 Japanese yen, euro, Israeli shekel, Taiwanese dollar and Swiss franc. Applied uses derivative financial instruments, such as forward exchange contracts and currency 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 currency exchange contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge treatment, as well as the ineffective portion of any hedges, 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 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 accumulated other comprehensive income or loss (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 derivative instruments included in AOCI at January 30, 2011 is expected to be reclassified into earnings within 12 months. Changes in the fair value of currency forward exchange and option contracts due to changes in time value are excluded from the assessment of effectiveness. Both ineffective hedge amounts and hedge components excluded from the assessment of effectiveness are recognized promptly in earnings. If the transaction being hedged is no longer probable to occur, or if a portion of any derivative is deemed to be ineffective, Applied promptly recognizes the gain or loss on the associated financial instrument in general and administrative expenses. The amount recognized due to discontinuance of cash flow hedges that were probable not to occur by the end of the originally specified time period was not significant for the three months ended January 30, 2011 and January 31, 2010.

Additionally, forward exchange contracts are generally used to hedge certain foreign currency denominated assets or liabilities. These derivatives are typically entered into once per month and are not designated for hedge accounting treatment. Accordingly, changes in the fair value of these hedges are recorded promptly in earnings to offset the changes in the fair value of the assets or liabilities being hedged.

Fair values of derivative instruments were as follows:


		Asset Derivatives					Liability Derivatives
	Balance Sheet	January 30,		October 31,		Balance Sheet	January 30,		October 31,
	Location	2011		2010		Location	2011		2010
		(In millions)					(In millions)

Derivatives Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	3	$	5	Accrued expenses	$	1	$	1

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	1	Accrued expenses	$	1	$	—

Total derivatives		$	4	$	6		$	2	$	1

The effect of derivative instruments on the Consolidated Condensed Statement of Operations for the three months ended January 30, 2011 and January 31, 2010 were as follows:


		Three Months Ended January 30, 2011							Three Months Ended January 31, 2010
						Ineffective Portion									Ineffective Portion
						Excluded from									Excluded from
						Effectiveness									Effectiveness
	Location of Gain	Effective Portion				Testing			Effective Portion						Testing
	or (Loss)	Gain or (Loss)		Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	Reclassified from	Recognized in		Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	AOCI into Income	AOCI		AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)							(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	4	$	4	$	(2	)	$	(3	)	$	(2	)	$	—
Foreign exchange contracts	General and administrative		—		2		—			—			1			(1	)

Total		$	4	$	6	$	(2	)	$	(3	)	$	(1	)	$	(1	)


	Location of Gain	Amount of Gain or (Loss) Recognized in
	or (Loss)	Income
	Recognized	Three Months Ended		Three Months Ended
	in Income	January 30, 2011		January 31, 2010
		(In millions)

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative	$	2	$	(10	)

Total		$	2	$	(10	)

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 January 30, 2011.

Entering into foreign exchange 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

3 Months Ended

Jan. 30, 2011

Accounts Receivable, Net [Abstract]

Accounts Receivable, Net


Note 6	Accounts Receivable, Net

Applied has agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. Applied also discounts letters of credit through various financial institutions. Applied sells its accounts receivable without recourse. Details of discounted letters of credit, factored accounts receivable and discounted promissory notes for the three months ended January 30, 2011 and January 31, 2010 were as follows:


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Discounted letters of credit	$	123	$	27
Factored accounts receivable and discounted promissory notes		36		26

Total	$	159	$	53

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 both periods presented.

Accounts receivable are presented net of allowance for doubtful accounts of $74 million at both January 30, 2011 and October 31, 2010. Applied sells principally to manufacturers within the semiconductor, display and solar industries. As a result of challenging economic and industry conditions, certain of these manufacturers may experience difficulties in meeting their obligations in a timely manner. While Applied believes that its allowance for doubtful accounts is adequate and represents Applied’s best estimate as of January 30, 2011, Applied will continue to closely monitor customer liquidity and other economic conditions, which may result in changes to Applied’s estimates regarding collectability.

Balance Sheet Detail

3 Months Ended

Jan. 30, 2011

Balance Sheet Detail [Abstract]

Balance Sheet Detail


Note 7	Balance Sheet Detail


	January 30,		October 31,
	2011		2010
	(In millions)

Inventories
Customer service spares	$	311	$	324
Raw materials		368		260
Work-in-process		444		500
Finished goods*		524		463

	$	1,647	$	1,547


*		Included in finished goods inventory is $208 million at January 30, 2011, and $148 million at October 31, 2010, 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.


			January 30,			October 31,
	Useful Life		2011			2010
	(In years)		(In millions)

Property, Plant and Equipment, Net
Land and improvements			$	203		$	227
Buildings and improvements		3-30		1,199			1,234
Demonstration and manufacturing equipment		3-5		672			670
Furniture, fixtures and other equipment		3-15		712			719
Construction in progress				22			19

Gross property, plant and equipment				2,808			2,869
Accumulated depreciation				(1,915	)		(1,906	)

			$	893		$	963


Accounts Payable and Accrued Expenses
Accounts payable	$	686	$	658
Compensation and employee benefits		270		435
Warranty		173		155
Other accrued taxes		101		99
Dividends payable		92		93
Restructuring reserve		58		104
Other		202		222

	$	1,582	$	1,766


Customer Deposits and Deferred Revenue
Customer deposits	$	417	$	407
Deferred revenue		638		440

	$	1,055	$	847

In the first quarter of fiscal 2011, Applied received $39 million in proceeds from the sale of a property located in North America and incurred a loss of $1 million on the transaction.

As of January 30, 2011 and October 31, 2010 other accrued expenses included $22 million and $40 million, respectively, in contractual termination obligation charges.

Goodwill, Purchased Technology and Other Intangible Assets

3 Months Ended

Jan. 30, 2011

Goodwill, Purchased Technology and Other Intangible Assets [Abstract]

Goodwill, Purchased Technology and Other Intangible Assets


Note 8	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 cost of the acquisition 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. Applied regularly monitors current business conditions and other factors including, but not limited to, adverse industry or economic trends, restructuring actions and lower projections of profitability that may impact future operating results. For goodwill, Applied performs a two-step impairment test. In the first step, Applied compares the estimated fair value of each reporting unit to its carrying value. Applied’s reporting units are consistent with the reportable segments identified in Note 15, based on the manner in which Applied operates its business and the nature of those operations. Applied determines the fair value of each of its reporting units based on a weighting of income and market approaches. Under the income approach, Applied calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Estimated future cash flows will be impacted by a number of factors including anticipated future operating results, estimated cost of capital and/or discount rates. Under the market approach, Applied estimates the fair value based on market multiples of revenue or earnings for comparable companies, as appropriate. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then Applied would perform the second step of the impairment test in order to determine the implied fair value of the reporting unit’s goodwill. Applied would then allocate the fair value of the reporting unit to all of the assets and liabilities of that unit, as if Applied had acquired the reporting unit in a business combination, with the fair value of the reporting unit being the “purchase price.” The excess of the “purchase price” over the carrying amounts assigned to assets and liabilities represents the implied fair value of goodwill. If Applied determined that the carrying value of a reporting unit’s goodwill exceeded its implied fair value, Applied would record an impairment charge equal to the difference.

Applied conducted impairment tests in the fourth quarter of fiscal 2010, and the results of the first step of the impairment test indicated that Applied’s goodwill and purchased intangible assets with indefinite useful lives for each of its reporting units were not impaired.

Effective in the first quarter of fiscal 2011, Applied transferred its SunFab thin film solar product from the Energy and Environmental Solutions segment to the Applied Global Services segment as it was determined to have reached a particular stage in the product lifecycle. As a result of this transfer, Applied reallocated $17 million of goodwill from its Energy and Environmental Solutions segment to its Applied Global Services segment.

Details of indefinite-lived intangible assets were as follows:


	January 30, 2011						October 31, 2010
			Other						Other
			Intangible						Intangible
	Goodwill		Assets		Total		Goodwill		Assets		Total
	(In millions)

Silicon Systems Group	$	381	$	—	$	381	$	381	$	—	$	381
Applied Global Services		194		18		212		177		18		195
Display		116		—		116		116		—		116
Energy and Environmental Solutions		645		—		645		662		—		662

Carrying amount	$	1,336	$	18	$	1,354	$	1,336	$	18	$	1,354

Other intangible assets that are not subject to amortization consist primarily of a trade name.

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 environment, technological advances, and changes in cost structure.

Details of amortized intangible assets were as follows:


	January 30, 2011									October 31, 2010
				Other									Other
	Purchased			Intangible						Purchased			Intangible
	Technology			Assets			Total			Technology			Assets			Total
	(In millions)

Silicon Systems Group	$	310		$	20		$	330		$	310		$	20		$	330
Applied Global Services		32			61			93			32			61			93
Display		110			33			143			110			33			143
Energy and Environmental Solutions		105			232			337			105			232			337

Gross carrying amount	$	557		$	346		$	903		$	557		$	346		$	903

Silicon Systems Group	$	(250	)	$	(6	)	$	(256	)	$	(247	)	$	(6	)	$	(253	)
Applied Global Services		(20	)		(45	)		(65	)		(19	)		(43	)		(62	)
Display		(98	)		(23	)		(121	)		(96	)		(23	)		(119	)
Energy and Environmental Solutions		(39	)		(167	)		(206	)		(37	)		(163	)		(200	)

Accumulated amortization	$	(407	)	$	(241	)	$	(648	)	$	(399	)	$	(235	)	$	(634	)

Carrying amount	$	150		$	105		$	255		$	158		$	111		$	269

Aggregate amortization expense was $14 million and $25 million for the three months ended January 30, 2011 and January 31, 2010, respectively.

As of January 30, 2011, future estimated amortization expense is expected to be as follows:


	Amortization Expense
	(In millions)

2011	$	40
2012		51
2013		49
2014		41
2015		25
Thereafter		49

	$	255

Borrowing Facilities

3 Months Ended

Jan. 30, 2011

Borrowing Facilities [Abstract]

Borrowing Facilities


Note 9	Borrowing Facilities

Applied has credit facilities for unsecured borrowings in various currencies of up to $1.1 billion, of which $1.0 billion is comprised of a 5-year revolving credit agreement with a group of banks that is scheduled to expire in January 2012. This agreement provides for borrowings in United States dollars at interest rates keyed to one of the two rates selected by Applied for each advance and includes financial and other covenants with which Applied was in compliance at January 30, 2011. Remaining credit facilities in the amount of approximately $98 million are with Japanese banks. 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. No amounts were outstanding under any of these facilities at both January 30, 2011 and October 31, 2010.

Restructuring Charges and Asset Impairments

3 Months Ended

Jan. 30, 2011

Restructuring and Asset Impairments [Abstract]

Restructuring Charges And Asset Impairments


Note 10	Restructuring Charges and Asset Impairments

On July 21, 2010, Applied announced a plan to restructure its Energy and Environmental Solutions segment, which was expected to impact between 400 to 500 positions globally. During the third quarter of fiscal 2010, Applied incurred employee severance charges of $45 million associated with this program. During the first quarter of fiscal 2011, as a result of changes in Applied’s operating environment and business requirements, Applied revised its workforce reduction under this program to approximately 200 positions and recorded a favorable adjustment of $28 million. As of January 30, 2011, the severance accrual associated with restructuring reserves under this program was $11 million.

On November 11, 2009, Applied announced a restructuring program to reduce its global workforce as of October 25, 2009 by approximately 1,300 to 1,500 positions, or 10 to 12 percent, over a period of 18 months. During the first quarter of fiscal 2010, Applied recorded restructuring charges of $104 million associated with this program. During the third quarter of fiscal 2010, as a result of changes in business requirements, Applied revised its global workforce reduction under this program to approximately 1,000 positions and recorded a favorable adjustment of $20 million. As of January 30, 2011, the severance accrual associated with restructuring reserves under this program was $41 million.

During the first quarter of fiscal 2011, Applied favorably adjusted the remaining severance accrual associated with a global restructuring program announced in the first quarter of fiscal 2009 by $4 million. As of January 30, 2011, the severance accrual associated with restructuring reserves under this program was $1 million.

Changes in severance accruals associated with restructuring reserves for the first quarter of fiscal 2011 were as follows:


	Severance
	(In millions)

Balance, October 31, 2010	$	99
Consumption of reserves		(14	)
Adjustment of restructuring reserves		(32	)

Balance, January 30, 2011	$	53

In addition, as of January 30, 2011, Applied had $5 million in restructuring reserves associated with facilities. During the first quarter of fiscal 2011, Applied recorded asset impairment charges of $3 million related to a facility held-for-sale.

Stockholders' Equity, Comprehensive Income and Share-Based Compensation

3 Months Ended

Jan. 30, 2011

Stockholders' Equity, Comprehensive Income and Share-Based Compensation [Abstract]

Stockholders' Equity, Comprehensive Income and Share-Based Compensation


Note 11	Stockholders’ Equity, Comprehensive Income and Share-Based Compensation

Comprehensive Income

Components of comprehensive income, on an after-tax basis where applicable, were as follows:


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Net income	$	506		$	83
Change in unrealized net gain on investments		(1	)		2
Change in unrealized net gain on derivative instruments qualifying as cash flow hedges		(1	)		(1	)

Comprehensive income	$	504		$	84

Components of accumulated other comprehensive income, on an after-tax basis where applicable, were as follows:


	January 30,			October 31,
	2011			2010
	(In millions)

Pension liability	$	(39	)	$	(39	)
Unrealized gain on investments net		24			25
Unrealized gain on derivative instruments qualifying as cash flow hedges		3			4
Cumulative translation adjustments		12			12

	$	—		$	2

For further details on derivative instruments, see Note 5 of the Notes to Consolidated Condensed Financial Statements.

Stock Repurchase Program

On March 8, 2010, Applied’s Board of Directors approved a new stock repurchase program authorizing up to $2.0 billion in repurchases over the next three years ending in March 2013. Under this authorization, Applied renewed its systematic stock repurchase program and may also make supplemental stock repurchases from time to time, depending on market conditions, stock price and other factors. During the three months ended January 30, 2011, Applied repurchased 11 million shares of its common stock at an average price of $13.74 per share for a total cash outlay of $150 million. Applied did not repurchase any shares of its common stock during the three months ended January 31, 2010.

Dividends

In December 2010, Applied’s Board of Directors declared a quarterly cash dividend in the amount of $0.07 per share that will be paid on March 23, 2011 to stockholders of record as of March 2, 2011. Applied currently anticipates that it will continue to pay cash dividends on a quarterly basis in the future, although the declaration and amount of any future cash dividend are 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 that cash dividends are in the best interest of Applied’s stockholders.

Share-Based Compensation

Applied has adopted stock plans that permit grants to employees of share-based awards, including stock options, restricted stock and restricted stock units (also referred to as “performance shares” under Applied’s principal equity compensation plan, the Employee Stock Incentive Plan). In addition, the Employee Stock Incentive Plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to consultants. Applied also has two Employee Stock Purchase Plans, one for United States employees and a second for international employees (collectively, ESPP), which enable eligible employees to purchase Applied common stock.

During the three months ended January 30, 2011 and January 31, 2010, Applied recognized share-based compensation expense related to stock options, ESPP shares, restricted stock units and restricted stock. Total share-based compensation and related tax benefits were as follows:


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Share-based compensation	$	33	$	34
Tax benefit recognized	$	10	$	9

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. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved.

At January 30, 2011, Applied had $282 million in total unrecognized compensation expense, net of estimated forfeitures, related to stock option, restricted stock unit and restricted stock grants, which will be recognized over a weighted average period of 2.9 years. Under the stock plans, there were 154 million shares available for grant at January 30, 2011.

Stock Options

Applied grants options to purchase shares of its common stock to employees and consultants. The exercise price of each stock option equals the fair market value of Applied common stock on the date of grant. Most options are scheduled to vest over four years and expire no later than seven years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable. Applied’s employee stock options have characteristics significantly different from those of publicly traded options. There were no stock options granted in the three months ended January 30, 2011.

Stock option activity for the three months ended January 30, 2011 was as follows:


				Weighted
				Average
				Exercise
	Shares			Price
	(In millions, except per share amounts)

Outstanding, at October 31, 2010		51		$	15.04
Granted		—		$	—
Exercised		(2	)	$	8.99
Canceled and forfeited		(12	)	$	21.49

Outstanding at January 30, 2011		37		$	13.14

Exercisable at January 30, 2011		24		$	15.68

Restricted Stock Units and Restricted Stock

Restricted stock units are converted into shares of Applied common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of Applied common stock except these shares have no right to dividends and are held in escrow until the award vests. Restricted stock units and awards of restricted stock typically vest over three to four years. Vesting of restricted stock units and restricted stock usually is subject to the grantee’s continued service with Applied and, in some cases, achievement of specified performance goals. The compensation expense related to these awards is determined using the fair market value of Applied common stock on the date of the grant, and the compensation expense is recognized over the vesting period. Beginning in fiscal 2007, Applied initiated a performance-based equity award program for named executive officers and other key employees. Awards of restricted stock units or restricted stock granted under this program vest only if specific performance goals set by the Human Resources and Compensation Committee of Applied’s Board of Directors (the Committee) are achieved and if the grantee remains employed by Applied through the applicable vesting date. The performance goals require the achievement of targeted adjusted annual operating profit margin levels as compared to Applied’s peer companies in at least one of the four fiscal years beginning with the fiscal year of the grant. The fair value of these performance-based awards is estimated using the fair market value of Applied common stock on the date of the grant and assumes that the specified performance goals will be achieved. If achieved, these awards vest over a specified remaining service period. If the performance goals are not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost of each award is reflected over the service period and is reduced for estimated forfeitures. The Committee approved the grant of 2 million performance-based restricted stock units and 0.1 million performance-based shares of restricted stock under this program in the three months ended January 30, 2011. With respect to the performance-based awards granted in fiscal 2010, as of January 30, 2011, 40 percent of the awards had been earned, subject to additional time-based vesting requirements. The remaining 60 percent of the awards may still be earned, depending on future performance in one or more of fiscal years 2011 through 2013. With respect to most of the performance-based awards granted in fiscal 2008, as of January 30, 2011, 78 percent of the awards had been earned, subject to additional time-based vesting requirements. The remaining 22 percent of the awards may still be earned depending on performance during fiscal 2011.

Restricted stock unit and restricted stock activity for the three months ended January 30, 2011was as follows:


				Weighted		Weighted
				Average		Average
				Grant Date		Remaining
	Shares			Fair Value		Contractual Term
	(In millions, except per share amounts)

Non-vested restricted stock units and restricted stock at October 31, 2010		18		$	13.33		2.8 Years
Granted		14		$	12.62
Vested		(1	)	$	15.51
Canceled		(1	)	$	13.47

Non-vested restricted stock units and restricted stock at January 30, 2011		30		$	12.91		3.2 Years

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. No shares were issued under the ESPP during the three months ended January 30, 2011 or January 31, 2010. Compensation expense associated with the ESPP is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model.

Employee Benefit Plans

3 Months Ended

Jan. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans


Note 12	Employee Benefit Plans

Applied sponsors a number of employee benefit plans, including defined benefit plans of certain foreign subsidiaries, and a plan that provides certain medical and vision benefits to eligible retirees. A summary of the components of net periodic benefit costs of these defined and postretirement benefit plans for the three months ended January 30, 2011 and January 31, 2010 is presented below:


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Service cost	$	4		$	3
Interest cost		4			4
Expected return on plan assets		(3	)		(2	)

Net periodic benefit cost	$	5		$	5

Income Taxes

3 Months Ended

Jan. 30, 2011

Income Taxes [Abstract]

Income Taxes


Note 13	Income Taxes

Applied’s effective income tax rate for the first quarter of fiscal 2011 and fiscal 2010 was a provision of 25.5 percent and 30.3 percent, respectively. The rate for the first quarter of fiscal 2011 was lower than the rate for the comparable period in the prior year primarily due to an increase in income in jurisdictions outside the U.S. with lower tax rates. The tax rate further benefited from tax incentives offered in several jurisdictions. The rate for the first quarter of fiscal 2011 also included the impact of legislation restoring the U.S. federal research and development tax credit, which favorably affected the effective tax rate by approximately 2 percentage points. The tax rate for the first quarter of fiscal 2010 included the impact of restructuring charges. Applied’s future effective income tax rate depends on various factors, such as tax legislation, the geographic composition of Applied’s pre-tax income, and the tax rate on equity compensation. Management carefully monitors these factors and timely adjusts the interim income tax rate accordingly.

A number of Applied’s tax returns remain subject to examination by taxing authorities. These include U.S. federal returns for fiscal 2005 and later years, California returns for fiscal 2006 and later years, tax returns for certain other states for fiscal 2005 and later years, and tax returns in certain jurisdictions outside of the United States for fiscal 2003 and later years.

The timing of the resolution of income tax examinations, as well as the amounts and timing of various tax payments that may be made as part of the resolution process, is highly uncertain. This could cause large fluctuations in the balance sheet classification of current assets and non-current assets and liabilities. Applied does not expect a material change in unrecognized tax benefits in the next 12 months.

Warranty, Guarantees and Contingencies

3 Months Ended

Jan. 30, 2011

Warranty Guarantees and Contingencies [Abstract]

Warranty Guarantees and Contingencies


Note 14	Warranty, Guarantees and Contingencies

Warranty

Changes in the warranty reserves during the three months ended January 30, 2011 and January 31, 2010 were as follows:


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Beginning balance	$	155		$	118
Provisions for warranty		51			34
Consumption of reserves		(33	)		(15	)

Ending balance	$	173		$	137

Applied products are generally sold with a 12-month warranty 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 January 30, 2011, the maximum potential amount of future payments that Applied could be required to make under these guarantee agreements was approximately $57 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 January 30, 2011, Applied Materials Inc. has provided parent guarantees to banks for approximately $185 million to cover these services.

Legal Matters

Semitool Shareholder Litigation

On November 17, 2009, Applied announced that it was making a tender offer to acquire all of the outstanding shares of Semitool, Inc. (Semitool) in accordance with an Agreement and Plan of Merger entered into with Semitool. Following this announcement, three lawsuits were filed by Semitool shareholders in the District Court of the Eleventh Judicial District Court for the State of Montana, County of Flathead, against Semitool, Semitool’s directors, Applied Materials, Inc. and Applied’s acquisition subsidiary. The actions sought certification of a class of all holders of Semitool common stock, except the defendants and their affiliates. The complaints alleged that Semitool’s directors breached their fiduciary duties by, among other things, failing to maximize shareholder value and failing to disclose material information, and that Applied aided and abetted such alleged breaches. The actions sought injunctive relief, damages and attorneys’ fees.

On December 14, 2009, all parties in these cases reached an agreement in principle to settle the matters and the plaintiffs withdrew their motion to enjoin consummation of the transaction. Without admitting any wrongdoing or fault, Semitool disclosed certain additional information in its Schedule 14D-9 filed with the Securities and Exchange Commission on December 14, 2009. Following the tender of shares representing over 95 percent of the outstanding shares of Semitool common stock, the merger of Semitool into Applied’s acquisition subsidiary was completed on December 21, 2009. Pursuant to a memorandum of understanding between the parties, plaintiffs conducted discovery to confirm the fairness and reasonableness of the settlement and defendants agreed not to object to an application by plaintiffs’ counsel for an award of attorneys’ fees and expenses in an amount up to $200,000. In November 2010, the parties filed their Stipulation and Agreement of Settlement, which, if approved by the Court, will result in a complete and final discharge of all claims. Under its order issued January 12, 2011, the Court preliminarily approved the stipulation and settlement and certified a class of Semitool’s public shareholders solely for purposes of settlement, comprised of all record and beneficial holders of Semitool common stock from November 17, 2009 through December 21, 2009 (subject to specified exclusions). The Court further approved, as to form and content, the notice to the class and set a settlement hearing for April 4, 2011.

Jusung

Applied has been engaged in several lawsuits and patent and administrative proceedings with Jusung Engineering Co., Ltd. and/or Jusung Pacific Co., Ltd. (Jusung) in Taiwan and South Korea since 2003, and more recently in China, involving technology used in manufacturing LCDs. Applied believes that it has meritorious claims and defenses against Jusung that it intends to pursue vigorously.

In 2004, Applied filed a complaint for patent infringement against Jusung in the Hsinchu District Court in Taiwan seeking damages and a permanent injunction for infringement of a patent related to chemical vapor deposition (CVD) equipment. Jusung filed a counterclaim against Applied. On December 31, 2010, the Hsinchu District Court announced that it had ruled against Applied and dismissed the lawsuit and Jusung’s counterclaim. Applied appealed the dismissal of its lawsuit and Jusung appealed the dismissal of its counterclaim.. Jusung unsuccessfully sought invalidation of Applied’s CVD patent in the Taiwanese Intellectual Property Office (TIPO). In September 2010, the Supreme Administrative Court dismissed Jusung’s appeal of the TIPO’s decision. In 2009, Jusung filed a second action with the TIPO seeking invalidation of Applied’s CVD patent, which remains pending.

In 2006, Applied filed an action in the TIPO challenging the validity of a Jusung patent related to severability of the transfer chamber on a CVD tool. Jusung sued Applied and AKT America in Hsinchu District Court in Taiwan alleging infringement of the same patent. In March 2009, the Hsinchu District Court dismissed Jusung’s lawsuit, and in October, 2010, the Taiwan Intellectual Property Court dismissed Jusung’s appeal. Separately, the TIPO granted Applied’s request for invalidation and also revoked Jusung’s patent. In January 2010, the Taiwan Intellectual Property Court granted Jusung’s appeal of the TIPO decision revoking its patent and remanded the matter to the TIPO for reconsideration of validity. In November 2009, Applied filed an action in China with the Patent Reexamination Board of the State Intellectual Property Office seeking to invalidate this patent. On June 18, 2010, the Patent Reexamination Board issued a decision invalidating Jusung’s patent in China. Jusung has appealed this decision.

In 2006, Jusung filed a complaint of private prosecution in the Taipei District Court of Taiwan alleging that Applied’s outside counsel received from the Court and used a copy of an expert report that Jusung had filed in the ongoing patent infringement lawsuits that Jusung had intended to remain confidential. The complaint names as defendants Applied’s outside counsel in Taiwan, as well as Michael R. Splinter, Applied’s Chairman, President and Chief Executive Officer, as the statutory representative of Applied. The Taipei District Court dismissed the private prosecution complaint, and the matter was transferred to the Taipei District Attorney’s Office. The Taipei District Attorney’s Office issued five successive rulings not to prosecute, each of which Jusung appealed. In each instance, the Taiwan High Court District Attorney returned the matter to the Taipei District Attorney’s Office for further consideration, where it is now pending.

Korea Criminal Proceedings

In February 2010, the Seoul Prosecutor’s Office for the Eastern District of Korea (the Prosecutor’s Office) indicted employees of several companies for the alleged improper receipt and use of confidential information belonging to Samsung Electronics Co., Ltd. (Samsung), a major Applied customer based in Korea. The Prosecutor’s Office did not name Applied or any of its subsidiaries as a party to the criminal action. The individuals charged included the former head of Applied Materials Korea (AMK), who at the time of the indictment was a vice president of Applied Materials, Inc., and certain other AMK employees. Hearings on these matters are ongoing in the Seoul Eastern District Court. Applied and Samsung entered into a settlement agreement effective as of November 1, 2010, which resolves potential civil claims related to this matter, which is separate from and does not affect the criminal proceedings.

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 and claims, both asserted and unasserted, that arise in the ordinary course of business.

Although the outcome of the above-described matters or these claims and proceedings cannot be predicted with certainty, Applied does not believe that any of these proceedings or other claims will have a material adverse effect on its consolidated financial condition or results of operations.

Industry Segment Operations

3 Months Ended

Jan. 30, 2011

Industry Segment Operations [Abstract]

Industry Segment Operations


Note 15	Industry Segment Operations

Applied’s four reportable segments are: Silicon Systems Group, Applied Global Services, Display, and Energy and Environmental Solutions. 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 January 30, 2011 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to Applied’s reportable segments.

Each reportable 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.

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. Applied does not allocate to its reportable segments certain operating expenses that it manages separately at the corporate level, which 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 and asset impairment charges and any associated adjustments related to restructuring actions, unless these charges or adjustments pertain to a specific reportable segment. Segment operating income 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.

In fiscal 2010, as part of the restructuring of the Energy and Environmental Solutions segment, Applied discontinued sales to new customers of its fully-intergrated SunFab lines but continued to offer individual tools for thin film solar manufacturing. Applied is supporting existing SunFab customers with services, upgrades and capacity increases through its Applied Global Services segment as these products are considered to have reached a particular stage in the product lifecycle. Effective in the first quarter of fiscal 2011, Applied accounts for thin film products under its Applied Global Services segment.

The Silicon Systems Group segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, and wafer packaging.

The Applied Global Services segment includes technically differentiated products and services to improve operating efficiency, reduce operating costs and lessen the environmental impact of semiconductor, display and solar customers’ factories. Applied Global Services’ products consist of spares, services, certain earlier generation products, remanufactured equipment, and products that have reached a particular stage in the product lifecycle. Customer demand for these products and services is fulfilled through a global distribution system with trained service engineers located in close proximity to customer sites.

The Display segment includes products for manufacturing LCDs for TVs, personal computers and other video-enabled devices.

The Energy and Environmental Solutions segment includes products for fabricating solar photovoltaic cells and modules, high throughput roll-to-roll coating systems for flexible electronics and web products, and systems used in the manufacture of energy-efficient glass.

Net sales and operating income (loss) for each reportable segment for the three months ended January 30, 2011 and January 31, 2010 were as follows:


			Operating
	Net Sales		Income (loss)
	(In millions)

2011:
Silicon Systems Group	$	1,496	$	543
Applied Global Services		567		85
Display		147		28
Energy and Environmental Solutions		476		144

Total Segment	$	2,686	$	800

2010:
Silicon Systems Group	$	970	$	306
Applied Global Services		426		63
Display		132		25
Energy and Environmental Solutions		321		(36	)

Total Segment	$	1,849	$	358

In the first quarter of fiscal 2011, Applied recorded a favorable adjustment of $28 million related to a restructuring program, announced in fiscal 2010, that was reported in the Energy and Environmental Solutions segment.

Reconciliations of total segment operating income to Applied’s consolidated operating income for the three months ended January 30, 2011 and January 31, 2010 were as follows:


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Total segment operating income	$	800		$	358
Corporate and unallocated costs		(127	)		(138	)
Restructuring and asset impairment benefit (charges), net		1			(104	)

Income from operations	$	674		$	116

The following companies accounted for at least 10 percent of Applied’s net sales for the three months ended January 30, 2011, which were for products in multiple reportable segments.


	January 30,
	2011

Taiwan Semiconductor Manufacturing Company Limited		14	%
Samsung Electronics Co., Ltd.		13	%
Intel Corporation		10	%

As of January 30, 2011, accounts receivable for those customers that accounted for at least 10% of Applied’s net sales for the three months ended January 30, 2011 were as follows:


	January 30,
	2011

Taiwan Semiconductor Manufacturing Company Limited		16	%
Samsung Electronics Co., Ltd.		14	%
Intel Corporation		15	%

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Jan. 30, 2011
Basis of Presentation (Policies) [Abstract]
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, 2010 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, 2010 (2010 Form 10-K). Applied’s results of operations for the three months ended January 30, 2011 are not necessarily indicative of future operating results. Applied’s fiscal year ends on the last Sunday in October of each year. Fiscal 2011 contains 52 weeks, while fiscal 2010 contained 53 weeks, and the first quarter of fiscal 2011 contained 13 weeks, while the first quarter of fiscal 2010 contained 14 weeks.
Use of Estimates	*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 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.
Revenue Recognition	*Revenue Recognition* Applied recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is probable. Applied’s shipping terms are customarily FOB Applied shipping point or equivalent terms. Applied’s revenue recognition policy generally results in revenue recognition at the following points: (1) for all transactions where legal title passes to the customer upon shipment, Applied recognizes revenue upon shipment for all products that have been demonstrated to meet product specifications prior to shipment; the portion of revenue associated with certain installation-related tasks is deferred, and that revenue is recognized upon completion of the installation-related tasks; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized at customer technical acceptance; (3) for transactions where legal title does not pass at shipment, revenue is recognized when legal title passes to the customer, which is generally at customer technical acceptance; (4) for arrangements containing multiple elements and initiated at or prior to October 25, 2009, the last day of fiscal 2009, the revenue relating to the undelivered elements is deferred at their estimated relative fair values until delivery of the deferred elements; and (5) for arrangements initiated or materially modified subsequent to October 25, 2009 containing multiple elements, the revenue relating to the undelivered elements is deferred using the relative selling price method utilizing estimated sales prices until delivery of the deferred elements. Applied limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or adjustment. In cases where Applied has sold products that have been demonstrated to meet product specifications prior to shipment, Applied believes that at the time of delivery, it has an enforceable claim to amounts recognized as revenue. The completed contract method is used for SunFab^tm thin film lines. Spare parts revenue is generally recognized upon shipment, and services revenue is generally recognized over the period that the services are provided. Applied elected to early adopt amended accounting standards issued by the Financial Accounting Standards Board (FASB) for multiple deliverable revenue arrangements on a prospective basis for applicable transactions originating or materially modified after October 25, 2009. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance when the software is essential to the tangible product’s functionality. Implementation of this new authoritative guidance had an insignificant impact on reported net sales as compared to net sales under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an inconsequential impact on the amount and timing of reported net sales. For fiscal 2010 and subsequent periods, when a sales arrangement contains multiple elements, such as hardware and services and/or software products, Applied allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Applied generally utilizes the ESP due to the nature of its products. In multiple element arrangements where more-than-incidental software deliverables are included, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the aforementioned selling price hierarchy. If the arrangement contains more than one software deliverable, the arrangement consideration allocated to the software deliverables as a group is then allocated to each software deliverable using the guidance for recognizing software revenue, as amended.
Recent Accounting Pronouncements	*Recent Accounting Pronouncements* In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations. In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in fiscal 2012. In January 2010, the FASB issued authoritative guidance for fair value measurements, which requires additional disclosures and clarifications to existing disclosures. This authoritative guidance requires a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and also to describe the reasons for these transfers. This authoritative guidance also requires enhanced disclosure of activity in Level 3 fair value measurements. The new disclosures and clarifications of existing disclosures for Level 1 and Level 2 fair value measurements became effective for Applied in the second quarter of fiscal 2010. Disclosures regarding activity within Level 3 fair value measurements become effective the first interim reporting period beginning after December 15, 2010. Applied will comply with this authoritative guidance in the second quarter of fiscal 2011. See Note 4 for information and related disclosures regarding Applied’s fair value measurements.
Business Combinations	*Recent Accounting Pronouncements* In December 2010, the FASB amended its existing guidance for goodwill and other intangible assets. This authoritative guidance modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if there are qualitative factors indicating that it is more likely than not that a goodwill impairment exists. The qualitative factors are consistent with the existing guidance which requires goodwill of a reporting unit to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. This authoritative guidance becomes effective for Applied in fiscal 2012. The implementation of this authoritative guidance is not expected to have a material impact on Applied’s financial position or results of operations. In December 2010, the FASB issued authoritative guidance on business combinations. This authoritative guidance requires a public entity that presents comparative financial statements to disclose the revenue and earnings of the combined entity as though the business combinations that occurred during the current year had occurred as of the beginning of the prior annual reporting period. In addition, this authoritative guidance expands the supplemental pro forma disclosures to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. This authoritative guidance is effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Applied will comply with this authoritative guidance in fiscal 2012.
Fair value measurements	In January 2010, the FASB issued authoritative guidance for fair value measurements, which requires additional disclosures and clarifications to existing disclosures. This authoritative guidance requires a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and also to describe the reasons for these transfers. This authoritative guidance also requires enhanced disclosure of activity in Level 3 fair value measurements. The new disclosures and clarifications of existing disclosures for Level 1 and Level 2 fair value measurements became effective for Applied in the second quarter of fiscal 2010. Disclosures regarding activity within Level 3 fair value measurements become effective the first interim reporting period beginning after December 15, 2010. Applied will comply with this authoritative guidance in the second quarter of fiscal 2011. See Note 4 for information and related disclosures regarding Applied’s fair value measurements.

Earnings Per Share (Tables)

3 Months Ended

Jan. 30, 2011

Earnings Per Share (Tables) [Abstract]

Elements used in computing both basic and diluted net earnings per share


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions, except per share amounts)

Numerator:
Net income	$	506	$	83
Denominator:
Weighted average common shares outstanding		1,324		1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares		11		8

Denominator for diluted earnings per share		1,335		1,350

Basic earnings per share	$	0.38	$	0.06
Diluted earnings per share	$	0.38	$	0.06
Potentially dilutive securities		19		46

Cash, Cash Equivalents and Investments (Tables)

3 Months Ended

Jan. 30, 2011

Cash, Cash Equivalents and Investments (Tables) [Abstract]

Summary of cash, cash equivalents and investments


			Gross		Gross
			Unrealized		Unrealized		Estimated
January 30, 2011	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	699	$	—	$	—	$	699

Cash equivalents:
Money market funds		1,256		—		—		1,256
U.S. Treasury and agency securities		4		—		—		4
U.S. commercial paper, corporate bonds and medium-term notes		15		—		—		15

Total Cash equivalents		1,275		—		—		1,275

Total Cash and Cash equivalents	$	1,974	$	—	$	—	$	1,974

Short-term and long-term investments:
U.S. Treasury and agency securities	$	699	$	6	$	—	$	705
Obligations of states and political subdivisions		532		3		1		534
U.S. commercial paper, corporate bonds and medium-term notes		463		4		1		466
Other debt securities*		325		2		1		326

Total fixed income securities		2,019		15		3		2,031
Publicly traded equity securities		8		25		—		33
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	2,086	$	40	$	3	$	2,123

Total Cash, Cash equivalents and Investments	$	4,060	$	40	$	3	$	4,097


			Gross		Gross
			Unrealized		Unrealized		Estimated
October 31, 2010	Cost		Gains		Losses		Fair Value
	(In millions)

Cash	$	701	$	—	$	—	$	701

Cash equivalents:
Money market funds		1,139		—		—		1,139
Obligations of states and political subdivisions		18		—		—		18

Total Cash equivalents		1,157		—		—		1,157

Total Cash and Cash equivalents	$	1,858	$	—	$	—	$	1,858

Short-term and long-term investments:
U.S. Treasury and agency securities	$	665	$	8	$	—	$	673
Obligations of states and political subdivisions		500		5		—		505
U.S. commercial paper, corporate bonds and medium-term notes		502		7		—		509
Other debt securities*		261		3		1		263

Total fixed income securities		1,928		23		1		1,950
Publicly traded equity securities		9		16		—		25
Equity investments in privately-held companies		59		—		—		59

Total short-term and long-term investments	$	1,996	$	39	$	1	$	2,034

Total Cash, Cash equivalents and Investments	$	3,854	$	39	$	1	$	3,892


*		Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Contractual maturities of investments


			Estimated
	Cost		Fair Value
	(In millions)

Due in one year or less	$	734	$	735
Due after one through five years		957		966
Due after five years		3		4
No single maturity date**		392		418

	$	2,086	$	2,123


**		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


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Gross realized gains	$	5	$	—
Gross realized losses	$	1	$	1

Gross unrealized losses and the fair market value of investments


	In Loss Position for
	Less Than 12 Months				Total
			Gross				Gross
			Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses
	(In millions)

Obligations of states and political subdivisions	$	170	$	1	$	170	$	1
U.S. commercial paper, corporate bonds and medium-term notes		118		1		118		1
Other debt securities		105		1		105		1

Total	$	393	$	3	$	393	$	3

Fair Value Measurements (Tables)

3 Months Ended

Jan. 30, 2011

Fair Value Measurements (Tables) [Abstract]

Financial assets/liabilities measured at fair value on a recurring basis


	January 30, 2011										October 31, 2010
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(In millions)										(In millions)

Assets:
Money market funds	$	1,256		—		$	—	$	1,256		$	1,139		—		$	—	$	1,139
U.S. Treasury and agency securities		127		582			—		709			153		520			—		673
Obligations of states and political subdivisions		—		534			—		534			—		523			—		523
U.S. commercial paper, corporate bonds and medium-term notes		—		481			—		481			—		509			—		509
Other debt securities		—		326			—		326			—		263			—		263
Publicly traded equity securities		33		—			—		33			25		—			—		25
Foreign exchange derivative assets		—		4			—		4			—		6			—		6

Total	$	1,416	$	1,927		$	—	$	3,343		$	1,317	$	1,821		$	—	$	3,138

Liabilities:
Foreign exchange derivative liabilities	$	—	$	(2	)	$	—	$	(2	)	$	—	$	(1	)	$	—	$	(1	)

Total	$	—	$	(2	)	$	—	$	(2	)	$	—	$	(1	)	$	—	$	(1	)

Impairment charges


							Impairment of
							Equity Investments
							in Privately-Held
	Level 1		Level 2		Level 3		Companies
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2011	$	—	$	—	$	19	$	—


							Impairment of
							Equity Investments
							in Privately-Held
	Level 1		Level 2		Level 3		Companies
	(In millions)

Equity investments in privately-held companies measured at fair value on a non-recurring basis during fiscal 2010	$	—	$	—	$	16	$	1

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Jan. 30, 2011

Derivative Instruments and Hedging Activities (Tables) [Abstract]

Fair values of derivative instruments


		Asset Derivatives					Liability Derivatives
	Balance Sheet	January 30,		October 31,		Balance Sheet	January 30,		October 31,
	Location	2011		2010		Location	2011		2010
		(In millions)					(In millions)

Derivatives Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	3	$	5	Accrued expenses	$	1	$	1

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	Other current assets	$	1	$	1	Accrued expenses	$	1	$	—

Total derivatives		$	4	$	6		$	2	$	1

Derivative instruments on consolidated condensed statement of operations


		Three Months Ended January 30, 2011							Three Months Ended January 31, 2010
						Ineffective Portion									Ineffective Portion
						Excluded from									Excluded from
						Effectiveness									Effectiveness
	Location of Gain	Effective Portion				Testing			Effective Portion						Testing
	or (Loss)	Gain or (Loss)		Gain or (Loss)		Gain or (Loss)			Gain or (Loss)			Gain or (Loss)			Gain or (Loss)
	Reclassified from	Recognized in		Reclassified from		Recognized in			Recognized in			Reclassified from			Recognized in
	AOCI into Income	AOCI		AOCI into Income		Income			AOCI			AOCI into Income			Income
		(In millions)							(In millions)

Derivatives in Cash Flow Hedging Relationships

Foreign exchange contracts	Cost of products sold	$	4	$	4	$	(2	)	$	(3	)	$	(2	)	$	—
Foreign exchange contracts	General and administrative		—		2		—			—			1			(1	)

Total		$	4	$	6	$	(2	)	$	(3	)	$	(1	)	$	(1	)

Derivatives not designated as hedging instruments in statement of operations


	Location of Gain	Amount of Gain or (Loss) Recognized in
	or (Loss)	Income
	Recognized	Three Months Ended		Three Months Ended
	in Income	January 30, 2011		January 31, 2010
		(In millions)

Derivatives Not Designated as Hedging Instruments

Foreign exchange contracts	General and administrative	$	2	$	(10	)

Total		$	2	$	(10	)

Accounts Receivable, Net (Tables)

3 Months Ended

Jan. 30, 2011

Accounts Receivable, Net (Tables) [Abstract]

Sale and discounting of accounts receivable


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Discounted letters of credit	$	123	$	27
Factored accounts receivable and discounted promissory notes		36		26

Total	$	159	$	53

Balance Sheet Detail (Tables)

3 Months Ended

Jan. 30, 2011

Balance Sheet Detail (Tables) [Abstract]

Inventories


	January 30,		October 31,
	2011		2010
	(In millions)

Inventories
Customer service spares	$	311	$	324
Raw materials		368		260
Work-in-process		444		500
Finished goods*		524		463

	$	1,647	$	1,547


*		Included in finished goods inventory is $208 million at January 30, 2011, and $148 million at October 31, 2010, 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.

Property, plant and equipment, net


			January 30,			October 31,
	Useful Life		2011			2010
	(In years)		(In millions)

Property, Plant and Equipment, Net
Land and improvements			$	203		$	227
Buildings and improvements		3-30		1,199			1,234
Demonstration and manufacturing equipment		3-5		672			670
Furniture, fixtures and other equipment		3-15		712			719
Construction in progress				22			19

Gross property, plant and equipment				2,808			2,869
Accumulated depreciation				(1,915	)		(1,906	)

			$	893		$	963

Accounts payable and accrued expenses


Accounts Payable and Accrued Expenses
Accounts payable	$	686	$	658
Compensation and employee benefits		270		435
Warranty		173		155
Other accrued taxes		101		99
Dividends payable		92		93
Restructuring reserve		58		104
Other		202		222

	$	1,582	$	1,766

Customer deposits and deferred revenue


Customer Deposits and Deferred Revenue
Customer deposits	$	417	$	407
Deferred revenue		638		440

	$	1,055	$	847

Goodwill, Purchased Technology and Other Intangible Assets (Tables)

3 Months Ended

Jan. 30, 2011

Goodwill, Purchased Technology and Other Intangible Assets (Tables) [Abstract]

Indefinite-lived intangible assets


	January 30, 2011						October 31, 2010
			Other						Other
			Intangible						Intangible
	Goodwill		Assets		Total		Goodwill		Assets		Total
	(In millions)

Silicon Systems Group	$	381	$	—	$	381	$	381	$	—	$	381
Applied Global Services		194		18		212		177		18		195
Display		116		—		116		116		—		116
Energy and Environmental Solutions		645		—		645		662		—		662

Carrying amount	$	1,336	$	18	$	1,354	$	1,336	$	18	$	1,354

Amortized intangible assets


	January 30, 2011									October 31, 2010
				Other									Other
	Purchased			Intangible						Purchased			Intangible
	Technology			Assets			Total			Technology			Assets			Total
	(In millions)

Silicon Systems Group	$	310		$	20		$	330		$	310		$	20		$	330
Applied Global Services		32			61			93			32			61			93
Display		110			33			143			110			33			143
Energy and Environmental Solutions		105			232			337			105			232			337

Gross carrying amount	$	557		$	346		$	903		$	557		$	346		$	903

Silicon Systems Group	$	(250	)	$	(6	)	$	(256	)	$	(247	)	$	(6	)	$	(253	)
Applied Global Services		(20	)		(45	)		(65	)		(19	)		(43	)		(62	)
Display		(98	)		(23	)		(121	)		(96	)		(23	)		(119	)
Energy and Environmental Solutions		(39	)		(167	)		(206	)		(37	)		(163	)		(200	)

Accumulated amortization	$	(407	)	$	(241	)	$	(648	)	$	(399	)	$	(235	)	$	(634	)

Carrying amount	$	150		$	105		$	255		$	158		$	111		$	269

Future estimated amortization expense


	Amortization Expense
	(In millions)

2011	$	40
2012		51
2013		49
2014		41
2015		25
Thereafter		49

	$	255

Restructuring Charges and Asset Impairments (Tables)

3 Months Ended

Jan. 30, 2011

Restructuring Charges and Asset Impairments (Tables) [Abstarct]

Changes in restructuring reserves related to severance


	Severance
	(In millions)

Balance, October 31, 2010	$	99
Consumption of reserves		(14	)
Adjustment of restructuring reserves		(32	)

Balance, January 30, 2011	$	53

Stockholders' Equity, Comprehensive Income and Equity-Based Compensation (Tables)

3 Months Ended

Jan. 30, 2011

Stockholders' Equity, Comprehensive Income and Equity-Based Compensation (Tables) [Abstract]

Components of comprehensive income (loss), after-tax basis


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Net income	$	506		$	83
Change in unrealized net gain on investments		(1	)		2
Change in unrealized net gain on derivative instruments qualifying as cash flow hedges		(1	)		(1	)

Comprehensive income	$	504		$	84

Components of accumulated other comprehensive loss, after-tax basis


	January 30,			October 31,
	2011			2010
	(In millions)

Pension liability	$	(39	)	$	(39	)
Unrealized gain on investments net		24			25
Unrealized gain on derivative instruments qualifying as cash flow hedges		3			4
Cumulative translation adjustments		12			12

	$	—		$	2

Total share-based compensation and related tax benefits


	Three Months Ended
	January 30,		January 31,
	2011		2010
	(In millions)

Share-based compensation	$	33	$	34
Tax benefit recognized	$	10	$	9

Stock option activity


				Weighted
				Average
				Exercise
	Shares			Price
	(In millions, except per share amounts)

Outstanding, at October 31, 2010		51		$	15.04
Granted		—		$	—
Exercised		(2	)	$	8.99
Canceled and forfeited		(12	)	$	21.49

Outstanding at January 30, 2011		37		$	13.14

Exercisable at January 30, 2011		24		$	15.68

Restricted stock units and restricted stock activity


				Weighted		Weighted
				Average		Average
				Grant Date		Remaining
	Shares			Fair Value		Contractual Term
	(In millions, except per share amounts)

Non-vested restricted stock units and restricted stock at October 31, 2010		18		$	13.33		2.8 Years
Granted		14		$	12.62
Vested		(1	)	$	15.51
Canceled		(1	)	$	13.47

Non-vested restricted stock units and restricted stock at January 30, 2011		30		$	12.91		3.2 Years

Employee Benefit Plans (Tables)

3 Months Ended

Jan. 30, 2011

Employee Benefits Plans (Tables) [Abstract]

Components of net periodic benefit costs of defined and postretirement benefit plans


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Service cost	$	4		$	3
Interest cost		4			4
Expected return on plan assets		(3	)		(2	)

Net periodic benefit cost	$	5		$	5

Warranty, Guarantees and Contingencies (Tables)

3 Months Ended

Jan. 30, 2011

Warranty, Guarantees and Contingencies (Tables) [Abstract]

Changes in the warranty reserves


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Beginning balance	$	155		$	118
Provisions for warranty		51			34
Consumption of reserves		(33	)		(15	)

Ending balance	$	173		$	137

Industry Segment Operations (Tables)

3 Months Ended

Jan. 30, 2011

Industry Segment Operations (Tables) [Abstract]

Net sales and operating income (loss) for each reportable segment


			Operating
	Net Sales		Income (loss)
	(In millions)

2011:
Silicon Systems Group	$	1,496	$	543
Applied Global Services		567		85
Display		147		28
Energy and Environmental Solutions		476		144

Total Segment	$	2,686	$	800

2010:
Silicon Systems Group	$	970	$	306
Applied Global Services		426		63
Display		132		25
Energy and Environmental Solutions		321		(36	)

Total Segment	$	1,849	$	358

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


	Three Months Ended
	January 30,			January 31,
	2011			2010
	(In millions)

Total segment operating income	$	800		$	358
Corporate and unallocated costs		(127	)		(138	)
Restructuring and asset impairment benefit (charges), net		1			(104	)

Income from operations	$	674		$	116

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


	January 30,
	2011

Taiwan Semiconductor Manufacturing Company Limited		14	%
Samsung Electronics Co., Ltd.		13	%
Intel Corporation		10	%

Accounts receivable for those customers that accounted for at least 10% of Applied's net sales


	January 30,
	2011

Taiwan Semiconductor Manufacturing Company Limited		16	%
Samsung Electronics Co., Ltd.		14	%
Intel Corporation		15	%

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Jan. 30, 2011	Jan. 31, 2010
Numerator:
Net income	$ 506	$ 83
Denominator:
Weighted average common shares outstanding	1,324	1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares	11	8
Denominator for diluted earnings per share	1,335	1,350
Basic earnings per share	$ 0.38	$ 0.06
Diluted earnings per share	$ 0.38	$ 0.06
Potentially dilutive securities	19	46

Cash, Cash Equivalents and Investments (Details) - USD ($)
$ in Millions

Jan. 30, 2011

Oct. 31, 2010

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

$ 4,060

$ 3,854

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

4,097

3,892

Total cash and cash equivalents [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

1,974

1,858

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

1,974

1,858

Cash [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

699

701

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

699

701

Money market funds [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

1,256

1,139

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

1,256

1,139

US commercial paper, corporate bonds and medium-term notes, cash equivalent [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

US Treasury and agency securities, cas equivalent [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Obligations of states and political subdivisions, cash equivalent [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Cash equivalents [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

1,275

1,157

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

1,275

1,157

U.S. Treasury and agency securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

699

665

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

705

673

Obligations of states and political subdivisions [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

532

500

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

534

505

U.S. commercial paper, corporate bonds and medium-term notes [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

463

502

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

466

^[1]

509

Other debt securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

^[2]

325

261

^[2]

Cash, Cash Equivalents and Investments Gross Unrealized Losses

^[2]

Cash, Cash Equivalents and Investments Estimated Fair Value

^[2]

326

263

Total fixed income securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

2,019

1,928

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

2,031

1,950

Publicly traded equity securities [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Equity investments in privately-held companies [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

Short-term and long-term investments: [Member]

Summary of Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments Gross Unrealized Gains

2,086

1,996

Cash, Cash Equivalents and Investments Gross Unrealized Losses

Cash, Cash Equivalents and Investments Estimated Fair Value

$ 2,123

$ 2,034

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.
[2]	Other debt securities consist primarily of investment grade asset-backed and mortgage-backed securities.

Cash, Cash Equivalents and Investments [Details 1]
$ in Millions

Jan. 30, 2011

USD ($)

Contractual maturities of investments

Due in one year or less, Cost

$ 734

Due in one year or less, Estimated Fair value

735

Due after one through five years, Cost

957

Due after one through five years, Estimated Fair Value

966

Due after five years, Cost

Due after five years, Estimated Fair Value

No single maturity date, Cost

392

^[1]

No single maturity date, Estimated Fair Value

418

^[1]

Investments maturities amortized cost

2,086

Investments maturities fair value

$ 2,123

[1]	Securities with no single maturity date include publicly-traded and privately-held equity securities, and asset-backed and mortgage-backed securities.

Cash, Cash Equivalents and Investments (Details 2) - USD ($) $ in Millions	3 Months Ended
	Jan. 30, 2011	Jan. 31, 2010
Gains and Losses on Investments
Gross realized gains on investments	$ 5
Gross realized losses on investments	$ 1	$ 1

Cash, Cash Equivalents and Investments (Details 3) $ in Millions	3 Months Ended
	Jan. 30, 2011 USD ($)
Gross Unrealized Losses and the Fair Market Value of Investments
In Loss Position for Less Than 12 Months, Fair Value	$ 393
In Loss Position for Less Than 12 Months, Gross Unrealized Losses	3
Total, Fair Value	393
Total, Gross Unrealized Losses	3
Obligations of states and political subdivisions [Member]
Gross Unrealized Losses and the Fair Market Value of Investments
In Loss Position for Less Than 12 Months, Fair Value	170
In Loss Position for Less Than 12 Months, Gross Unrealized Losses	1
Total, Fair Value	170
Total, Gross Unrealized Losses	1
U.S. commercial paper, corporate bonds and medium-term notes [Member]
Gross Unrealized Losses and the Fair Market Value of Investments
In Loss Position for Less Than 12 Months, Fair Value	118
In Loss Position for Less Than 12 Months, Gross Unrealized Losses	1
Total, Fair Value	118
Total, Gross Unrealized Losses	1
Other debt securities [Member]
Gross Unrealized Losses and the Fair Market Value of Investments
In Loss Position for Less Than 12 Months, Fair Value	105
In Loss Position for Less Than 12 Months, Gross Unrealized Losses	1
Total, Fair Value	105
Total, Gross Unrealized Losses	$ 1

Cash, Cash Equivalents and Investments (Details Textuals) - USD ($) $ in Millions	3 Months Ended
	Jan. 30, 2011	Jan. 31, 2010
Cash, Cash Equivalents and Investments (Textuals) [Abstract]
Gross unrealized loss due to a decrease in the fair value of certain fixed income securities	$ 3
Amount of impairment charges recognized	0	$ 1
Impairment charges associated with equity investments in privately-held companies	$ 0	$ 1

Fair Value Measurements (Details) - USD ($)
$ in Millions

3 Months Ended

Jan. 30, 2011

Jan. 31, 2010

Oct. 31, 2010

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

$ 3,343

$ 3,138

Financial Liabilities Measured at Fair Value on a Recurring Basis

(2)

(1)

Equity investments in privately-held companies measured at fair value on a non-recurring basis

$ 16

Impairment of equity method investment in privately-held companies measured at fair value on a non-recurring basis

Financial Assets Measured at Fair Value on a Recurring Basis

3,343

3,138

Equity investments in privately-held companies

Investments accounted for under cost method of accounting

Investments measured at fair value on a non-recurring basis

Long-term debt at carrying value

205

Estimated fair value of long-term debt

240

238

Money market funds [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

1,256

1,139

Financial Assets Measured at Fair Value on a Recurring Basis

1,256

1,139

US Treasury and agency securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

709

673

Financial Assets Measured at Fair Value on a Recurring Basis

709

673

Obligations of states and political subdivisions [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

534

523

Financial Assets Measured at Fair Value on a Recurring Basis

534

523

U.S. commercial paper, corporate bonds and medium-term notes [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

481

509

Financial Assets Measured at Fair Value on a Recurring Basis

481

509

Other debt securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

326

263

Financial Assets Measured at Fair Value on a Recurring Basis

326

263

Publicly traded equity securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Foreign Exchange [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Liabilities Measured at Fair Value on a Recurring Basis

(2)

(1)

Financial Assets Measured at Fair Value on a Recurring Basis

Level 1 [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

Level 1 [Member] | Foreign Exchange [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

Level 2 [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

(2)

(1)

Level 2 [Member] | Foreign Exchange [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

(2)

(1)

Level 3 [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Foreign Exchange [Member]

Financial Liabilities Measured at Fair Value on a Recurring Basis

Level 1 [Member]

Equity investments in privately-held companies measured at fair value on a non-recurring basis

Investments measured at fair value on a non-recurring basis

Level 2 [Member]

Equity investments in privately-held companies measured at fair value on a non-recurring basis

Investments measured at fair value on a non-recurring basis

Level 3 [Member]

Equity investments in privately-held companies measured at fair value on a non-recurring basis

Investments measured at fair value on a non-recurring basis

$ 16

Level 1 [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

1,416

1,317

Financial Assets Measured at Fair Value on a Recurring Basis

1,416

1,317

Level 1 [Member] | Money market funds [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

1,256

1,139

Financial Assets Measured at Fair Value on a Recurring Basis

1,256

1,139

Level 1 [Member] | US Treasury and agency securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

127

153

Financial Assets Measured at Fair Value on a Recurring Basis

127

153

Level 1 [Member] | Obligations of states and political subdivisions [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 1 [Member] | U.S. commercial paper, corporate bonds and medium-term notes [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 1 [Member] | Other debt securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 1 [Member] | Publicly traded equity securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 1 [Member] | Foreign Exchange [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 2 [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

1,927

1,821

Financial Assets Measured at Fair Value on a Recurring Basis

1,927

1,821

Level 2 [Member] | Money market funds [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 2 [Member] | US Treasury and agency securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

582

520

Financial Assets Measured at Fair Value on a Recurring Basis

582

520

Level 2 [Member] | Obligations of states and political subdivisions [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

534

523

Financial Assets Measured at Fair Value on a Recurring Basis

534

523

Level 2 [Member] | U.S. commercial paper, corporate bonds and medium-term notes [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

481

509

Financial Assets Measured at Fair Value on a Recurring Basis

481

509

Level 2 [Member] | Other debt securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

326

263

Financial Assets Measured at Fair Value on a Recurring Basis

326

263

Level 2 [Member] | Publicly traded equity securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

^[1]

Financial Assets Measured at Fair Value on a Recurring Basis

^[1]

Level 2 [Member] | Foreign Exchange [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Money market funds [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | US Treasury and agency securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Obligations of states and political subdivisions [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | U.S. commercial paper, corporate bonds and medium-term notes [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Other debt securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Publicly traded equity securities [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

Level 3 [Member] | Foreign Exchange [Member]

ASSETS

Financial Assets Measured at Fair Value on a Recurring Basis

Financial Assets Measured at Fair Value on a Recurring Basis

$ 0

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Derivative Instruments and Hedging Activities (Details) $ in Millions	3 Months Ended
	Jan. 30, 2011 USD ($)	Jan. 31, 2010 USD ($)	Oct. 31, 2010 USD ($)
Fair values of derivative instruments
Asset Derivatives, Fair Value	$ 4		$ 6
Liability Derivatives, Fair Value	2		1
Derivative instruments on Consolidated Condensed Statement of Operations
Gain or (Loss) Recognized in AOCI, Effective Portion	4	$ (3)
Gain or (Loss) Reclassified from AOCI into Income, Effective Portion	6	(1)
Gain or (Loss) Reclassified in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing	$ (2)	(1)
Derivative Instruments and Hedging Activities (Textuals) [Abstract]
Time period for hedging of foreign currency transactions	24
Time period over which majority of after tax gain loss related to derivatives to be reclassified into earnings	12
Derivatives Not Designated as Hedging Instruments [Member]
Derivatives Not Designated as Hedging Instruments in Statement of Operations
Amount of Gain or (Loss) Recognized in Income	$ 2	$ (10)
Foreign Exchange Contract [Member] \| Other current asset [Member]
Fair values of derivative instruments
Asset Derivatives Designated as Hedging Instruments, Fair Value	3		5
Asset Derivatives Not Designated as Hedging Instruments, Fair Value	1		1
Foreign Exchange Contract [Member] \| Accrued expenses [Member]
Fair values of derivative instruments
Liability Derivatives Designated as Hedging Instruments, Fair Value	1		1
Liability Derivatives Not Designated as Hedging Instruments, Fair Value	$ 1		$ 0

Accounts Receivable, Net (Details) - USD ($) $ in Millions	3 Months Ended
Accounts Receivable, Net (Details) - USD ($) $ in Millions	Jan. 30, 2011	Jan. 31, 2010	Oct. 31, 2010
Sale and Discounting of Accounts Receivable
Discounted letters of credit	$ 123	$ 27
Factored accounts receivable and discounted promissory notes	36	26
Total	159	$ 53
Accounts Receivable, Net (Textual) [Abstract]
Allowance for doubtful accounts sold	$ 74		$ 74

Balance Sheet Detail (Details)
$ in Millions

3 Months Ended

Jan. 30, 2011

USD ($)

Oct. 31, 2010

USD ($)

Inventories

Customer service spares

$ 311

$ 324

Raw materials

368

260

Work-in-process

444

500

Finished goods

^[1]

524

463

Total Inventories

^[2]

1,647

1,547

Property, Plant and Equipment, Net

Land and improvements

203

227

Buildings and improvements

1,199

1,234

Demonstration and manufacturing equipment

672

670

Furniture, fixtures and other equipment

712

719

Construction in progress

Gross property, plant and equipment

2,808

2,869

Accumulated depreciation

(1,915)

(1,906)

Net property, plant and equipment

^[2]

893

963

Accounts Payable and Accrued Expenses

Accounts payable

686

658

Compensation and employee benefits

270

435

Warranty

173

155

^[2]

Restructuring reserve

104

Other accrued taxes

101

Dividends payable

Other

202

222

Total Accounts Payable and Accrued Expenses

^[2]

1,582

1,766

Customer Deposits and Deferred Revenue

Customer deposits

417

407

Deferred revenue

638

440

Total Customer Deposits and Deferred Revenue

1,055

847

Balance Sheet Detail (Textuals) [Abstract]

Inventory at customer locations included in finished goods

208

148

Contractual termination obligation charges

$ 40

Proceeds from sale of property

Loss on proceeds from sale of property

$ 1

Furniture, fixtures and other equipment [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

Demonstration and manufacturing equipment [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

Building improvements [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, Useful Life, Minimum

Property, Plant and Equipment, Useful Life, Maximum

[1]	Included in finished goods inventory is $208 million at January 30, 2011, and $148 million at October 31, 2010, 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.
[2]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Goodwill, Purchased Technology and Other Intangible Assets (Details)
$ in Millions

3 Months Ended

Jan. 30, 2011

USD ($)

Jan. 31, 2010

USD ($)

Oct. 31, 2010

USD ($)

^[1]

$ 1,336

1,354

903

Amortized intangible assets, net

(648)

(634)

255

269

Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]

Future estimated amortization expense, 2011

Future estimated amortization expense, 2012

Future estimated amortization expense, 2013

Future estimated amortization expense, 2014

Future estimated amortization expense, 2015

Future estimated amortization expense, after 2015

Goodwill , Purchased Technology and Other Intangible Assets (Textuals) [Abstract]

255

Goodwill from its Energy and Environmental Solutions segment

$ 17

Useful Life, Minimum

Useful Life, Maximum

Amortization expense

$ 14

$ 25

Silicon Systems Group [Member]

381

381

330

Applied Global Services [Member]

(256)

(253)

194

177

212

195

(65)

(62)

Display [Member]

116

116

143

Energy and Environmental Solutions [Member]

(121)

(119)

645

662

645

662

337

Purchased Technology [Member]

(206)

(200)

557

Amortized intangible assets, net

(407)

(399)

150

158

Purchased Technology [Member] | Silicon Systems Group [Member]

310

Purchased Technology [Member] | Applied Global Services [Member]

(250)

(247)

Purchased Technology [Member] | Display [Member]

(20)

(19)

110

Purchased Technology [Member] | Energy and Environmental Solutions [Member]

(98)

(96)

105

Other Intangible Assets [Member]

(39)

(37)

346

Amortized intangible assets, net

(241)

(235)

105

111

Other Intangible Assets [Member] | Silicon Systems Group [Member]

Other Intangible Assets [Member] | Applied Global Services [Member]

(6)

Other Intangible Assets [Member] | Display [Member]

(45)

(43)

Other Intangible Assets [Member] | Energy and Environmental Solutions [Member]

(23)

232

Restructuring and Asset Impairments (Textuals) [Abstract]

$ (167)

$ (163)

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Borrowing Facilities (Details) - USD ($) $ in Millions	3 Months Ended
Borrowing Facilities (Details) - USD ($) $ in Millions	Jan. 30, 2011	Oct. 31, 2010
Borrowing Facilities, Unsecured [Textuals]
Credit facilities for unsecured borrowings/Revolving credit facility	$ 1,000.0
Borrowing Facilities (Textual) [Abstract]
Revolving credit period	5 Years
Expiration of revolving credit period	January 2012
Other credit facilities	$ 98.0
Outstanding credit facilities	0.0	$ 0.0
Unsecured Debt [Member]
Borrowing Facilities, Unsecured [Textuals]
Credit facilities for unsecured borrowings/Revolving credit facility	$ 1,100.0

Restructuring Charges and Asset Impairments (Details) $ in Millions	3 Months Ended
	Jan. 30, 2011 USD ($)
Changesin restructuring reserves related to severance
Balance Ending	$ 5
Employee Severance [Member]
Changesin restructuring reserves related to severance
Balance Beginning	99
Adjustment of restructuring reserves	(32)
Consumption of reserves	(14)
Balance Ending	$ 53

Restructuring Charges and Asset Impairments (Details Textuals)
$ in Millions

3 Months Ended

Jan. 30, 2011

USD ($)

Jan. 31, 2010

USD ($)

Oct. 31, 2010

USD ($)

Jul. 21, 2010

Oct. 25, 2009

Reduction in global workforce

1300 to 1500

Additional restructuring cost

$ 104

Reduction in Global Workforce in percent

10 to 12 %

Length of time to implement restructuring plan announced on November 11, 2009

18 months

Severance accrual associated with restructuring reserves

^[1]

$ 11

Assets impairment charges

Restructuring Reserve, Total

Favorable adjustment as a result of restructuring programme

Severance Accrual Associated With Restructuring Reserve

Restructuring Reserves Related to Other Restructuring Plans [Member]

Restructuring and Asset Impairments (Textuals) [Abstract]

Favorable adjustment as a result of global workforce reduction

$ 20

Revised global workforce reduction

1,000

Energy and Environmental Solutions [Member]

Restructuring and Asset Impairments (Textuals) [Abstract]

Reduction in global workforce

Between 400 to 500

Employee severance charges

$ 45

Severance accrual associated with restructuring reserves

Employee Severance [Member]

Restructuring and Asset Impairments (Textuals) [Abstract]

Favorable adjustment as a result of global workforce reduction

$ 28

Revised global workforce reduction

200

Restructuring Reserve, Total

$ 53

$ 99

[1]	Amounts as of January 30, 2011 are unaudited. Amounts as of October 31, 2010 are derived from the October 31, 2010 audited consolidated financial statements.

Stockholders' Equity Comprehensive Income and Share-Based Compensation (Details)

3 Months Ended

Jan. 30, 2011

USD ($)

$ / shares

Jan. 31, 2010

USD ($)

Oct. 31, 2010

USD ($)

Mar. 08, 2010

USD ($)

Components of comprehensive income, net of tax:

Net income

$ 506,000,000

$ 83,000,000

Change in unrealized net gain on investments

(1,000,000)

2,000,000

Change in unrealized net loss on derivative instruments qualifying as cash flow hedges

(1,000,000)

Comprehensive income

504,000,000

84,000,000

Components of accumulated other comprehensive loss, after-tax basis

Pension liability

(39,000,000)

$ (39,000,000)

Unrealized gain on investments, net

24,000,000

25,000,000

Unrealized gain(loss) on derivative instruments qualifying as cash flow hedges

3,000,000

4,000,000

Cumulative translation adjustments

12,000,000

Accumulated other comprehensive income

^[1]

$ 2,000,000

Total share-based compensation and related tax benefits

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

33,000,000

34,000,000

Tax benefit recognized

$ 10,000,000

$ 9,000,000

Stock options scheduled to be vested

Over four years

Stock options

Beginning Balance | shares

51,000,000

Granted | shares

Exercised | shares

(2,000,000)

Canceled and forfeited | shares

(12,000,000)

Ending Balance | shares

37,000,000

Stock option weighted average exercise price

$ 15.04

Granted and assumed

Excercised

8.99

Canceled and forfeited

21.49