Policy

Balance Sheet Detail



	October 27, 2013		October 28, 2012

	(In millions)
Inventories
Customer service spares	$	274	$	312
Raw materials	325		331
Work-in-process	283		234
Finished goods	531		395
	$	1,413	$	1,272

Included in finished goods inventory is $136 million at October 27, 2013, and $60 million at October 28, 2012, 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. Finished goods inventory includes $177 million and $176 million of evaluation inventory at October 27, 2013 and October 28, 2012, respectively.



	October 27, 2013		October 28, 2012

	(In millions)
Other Current Assets
Deferred income taxes, net	$	323	$	369
Prepaid expenses	135		101
Income taxes receivable	7		87
Other	240		116
	$	705	$	673



	Useful Life	October 27, 2013			October 28, 2012

	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	167		$	169
Buildings and improvements	3-30	1,217			1,196
Demonstration and manufacturing equipment	3-5	792			760
Furniture, fixtures and other equipment	3-15	589			734
Construction in progress		52			58
Gross property, plant and equipment		2,817			2,917
Accumulated depreciation		(1,967		)	(2,007		)
		$	850		$	910

Depreciation expense was $211 million, $198 million and $194 million for fiscal 2013, 2012 and 2011, respectively.

During fiscal 2013 and 2012, fixed asset impairment charges of $12 million and $20 million, respectively, were recorded in relation to the Energy and Environmental Solutions segment restructuring plan, as discussed in Note 11, Restructuring Charges and Asset Impairments.

In fiscal 2011, Applied received $99 million in proceeds from the sale of two properties located in North America and recognized a net gain of $27 million on the transactions. Applied also completed the divestiture of certain assets held for sale for proceeds of $31 million.



	October 27, 2013		October 28, 2012

	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	582	$	396
Compensation and employee benefits	417		426
Warranty	102		119
Income taxes payable	73		74
Dividends payable	121		108
Other accrued taxes	41		18
Interest payable	30		30
Restructuring reserve	39		133
Other	244		206
	$	1,649	$	1,510



	October 27, 2013		October 28, 2012

	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	175	$	143
Deferred revenue	619		612
	$	794	$	755

Applied typically receives deposits on future deliverables from customers in the Energy and Environmental Solutions and Display segments. In certain instances, customer deposits may be received from customers in the Applied Global Services segment.



	October 27, 2013		October 28, 2012

	(In millions)
Other Liabilities
Deferred income taxes	$	71	$	200
Income taxes payable	174		140
Defined benefit pension plan liability	193		216
Other	128		100
	$	566	$	656

APPLIED MATERIALS INC /DE | 2013 | FY |

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