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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Applied Materials Inc | NASDAQ:AMAT | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-5.82 | -2.68% | 211.67 | 211.50 | 211.97 | 218.74 | 213.95 | 218.22 | 7,959,335 | 00:14:21 |
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-1655526 | ||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $.01 per share | AMAT | The NASDAQ Stock Market LLC |
Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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PART I | ||||||||
Item 1: | ||||||||
Item 1A: | ||||||||
Item 1B: | ||||||||
Item 2: | ||||||||
Item 3: | ||||||||
Item 4: | ||||||||
PART II | ||||||||
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Item 6: | ||||||||
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Item 7A: | ||||||||
Item 8: | ||||||||
Item 9: | ||||||||
Item 9A: | ||||||||
Item 9B: | ||||||||
PART III | ||||||||
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PART IV | ||||||||
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Technologies | Product(s) | |||||||
Epitaxy
Epitaxy (or epi) is a technique for growing silicon (e.g. silicon with another element) as a uniform crystalline structure on a wafer to form high quality material for the device circuity. Epi technology is used in device transistors to enhance chip speed.
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Centura RP Epi | |||||||
Ion Implant
Ion implantation is a key technology for forming transistors and is used many times during chip fabrication. During ion implantation, wafers are bombarded by a beam of electrically-charged ions, called dopants, which can change the electrical properties of the exposed semiconductor material.
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VIISta Systems | |||||||
Oxidation/Nitridation
Applied’s systems provide critical oxidation steps - like memory gate oxide, shallow trench isolation and liner oxide - for advanced device scaling.
|
Vantage, Radiance and Centura Systems | |||||||
Rapid Thermal Processing (RTP)
RTP is used primarily for annealing, which modifies the properties of deposited films. Applied’s single-wafer RTP systems are also used for growing high quality oxide and oxynitride films.
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Vantage Systems | |||||||
Physical Vapor Deposition (PVD)
PVD is used to deposit high quality metal films. Applications include metal gate, silicides, contact liner/barrier, interconnect copper barrier seed and metal hard mask.
|
Endura, Charger and Axcela Systems | |||||||
Chemical Vapor Deposition (CVD)
CVD is used to deposit dielectric and metal films on a wafer. During the CVD process, gases that contain atoms of the material to be deposited react on the wafer surface, forming a thin film of solid material.
|
Endura, Centura and Producer Systems | |||||||
Chemical Mechanical Planarization (CMP)
CMP is used to planarize a wafer surface, a process that allows subsequent photolithography patterning and material deposition steps to occur with greater accuracy, resulting in more uniform film layers with minimal thickness variations.
|
Reflexion and Mirra Systems | |||||||
Electrochemical Deposition (ECD)
ECD is a process by which metal atoms from a chemical fluid (an electrolyte) are deposited on the surface of an immersed object.
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Raider and Nokota Platforms | |||||||
Atomic Layer Deposition (ALD)
ALD technology enables ultra thin film growth of either a conducting or insulating material with uniform coverage in nanometer-sized structures.
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Olympia System | |||||||
Etch
Etching is used many times throughout the IC manufacturing process to selectively remove material from the surface of a wafer. Applied offers systems for etching dielectric, metal, and silicon films to meet the requirements of advanced processing.
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Centris and Producer Systems | |||||||
Selective Processing (Deposition and Removal)
Selective processing uses specially co-designed chemical and materials interactions to enable delicate and precise deposition and removal of target materials.
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Endura and Producer Systems | |||||||
Metrology and Inspection
Metrology and inspection tools are used to locate, measure, and analyze defects and features on the wafer during various stages of the fabrication processes. Applied enables customers to characterize and control critical dimension (CD) and defect issues, especially at advanced generation technology nodes.
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SEMVision eBeam Review
PROVision eBeam Metrology and Inspection Enlight Optical Inspection UVision Optical Inspection VeritySEM CD-SEM Metrology Aera Mask Inspection |
AGS Solutions and Technology | ||
Technology-Enabled Services®
A comprehensive service product portfolio that combines service technology and tool specific performance commitments in order to optimize customer factory productivity.
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Fab Consulting
Experts using advanced analytical tools to solve production problems that have the greatest impact on customer fab productivity.
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Supply Chain Assurance Programs
Spare parts product portfolio offers options to balance inventory, cost and risk to efficiently meet fab requirements.
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Subfab Equipment
Applied SubFab solutions lower costs, save energy, reduce environmental impact, and meet Environmental Protection Agency reporting regulations for greenhouse gas emissions.
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Legacy Equipment
Comprehensive 200mm equipment and upgrades portfolio to address a full spectrum of production needs and extend tool lifetime. Applied 200mm equipment supports market inflections and new technology for a broad variety of devices including analog, power, and MEMS.
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Automation Software
Applied SmartFactory® automation software portfolio coordinates and streamlines every aspect of a factory-the processes, equipment and people-to provide competitive advantage to customers.
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Display and Adjacent Markets Technologies | Product(s) | |||||||
Array Test
LCD display substrates are inspected at many stages of production to maximize yield, minimize scrap, optimize equipment utilization, and monitor manufacturing processes. At the completion of the array stage, the performance of the millions of individual pixels on each display is tested.
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Electron Beam Array Tester | |||||||
Defect Review
Defects are identified during inspection steps and reviewed by a scanning electron microscope and other analyses to determine defect root cause and composition.
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Electron Beam Review (EBR) | |||||||
Chemical Vapor Deposition (CVD)
During CVD processing, gases containing atoms or molecules are introduced into the process chamber. The gases form reactive radicals or ions, which undergo chemical reactions to form thin films on the heated substrate.
|
AKT PECVD Systems | |||||||
Physical Vapor Deposition (PVD)
PVD is used to deposit high quality films of metals, alloys, transparent conductors and semiconductors. In Display, these films are used for contact, interconnect, transparent electrodes and transistor materials in TFT-LCD and OLED display backplanes, as well as for transparent electrodes in color filters and touch panels.
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AKT Aristo and PiVot Systems |
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 6,679 | 57 | % | $ | 2,880 | 43 | % | ||||||||||||||||||||||||||||||
Applied Global Services | 4,335 | 37 | % | 2,607 | 39 | % | ||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 735 | 6 | % | 1,115 | 17 | % | ||||||||||||||||||||||||||||||||
Corporate and Other | 9 | — | % | 54 | 1 | % | ||||||||||||||||||||||||||||||||
Total | $ | 11,758 | 100 | % | $ | 6,656 | 100 | % |
2021 | 2020 | 2019 | |||||||||||||||
Samsung Electronics Co., Ltd. | 20% | 18% | * | ||||||||||||||
Taiwan Semiconductor Manufacturing Company Limited | 15% | 18% | 14% | ||||||||||||||
Intel Corporation | * | * | 12% |
Name of Individual | Position | ||||
Gary E. Dickerson(1) | President, Chief Executive Officer | ||||
Ginetto Addiego(2) | Senior Vice President, Semiconductor Global Operations and Corporate Quality | ||||
Robert J. Halliday(3) | Senior Vice President, Chief Financial Officer | ||||
Teri Little(4) | Senior Vice President, Chief Legal Officer and Corporate Secretary | ||||
Omkaram Nalamasu(5) | Senior Vice President, Chief Technology Officer | ||||
Prabu Raja(6) | Senior Vice President, Semiconductor Products Group | ||||
Ali Salehpour(7) | Senior Vice President, Services, Display and Flexible Technology | ||||
Charles Read(8) | Corporate Vice President, Corporate Controller and Chief Accounting Officer |
(Square feet in thousands) | United States | Other Countries | Total | ||||||||||||||
Owned | 4,855 | 2,472 | 7,327 | ||||||||||||||
Leased | 1,912 | 1,800 | 3,712 | ||||||||||||||
Total | 6,767 | 4,272 | 11,039 |
10/30/2016 | 10/29/2017 | 10/28/2018 | 10/27/2019 | 10/25/2020 | 10/31/2021 | ||||||||||||||||||||||||||||||
Applied Materials | 100.00 | 199.87 | 115.48 | 202.95 | 225.12 | 508.89 | |||||||||||||||||||||||||||||
S&P 500 Index | 100.00 | 123.88 | 130.09 | 150.94 | 176.35 | 237.87 | |||||||||||||||||||||||||||||
PHLX Semiconductor Index | 100.00 | 156.93 | 145.72 | 212.64 | 309.77 | 458.88 |
Period | Total Number of Shares Purchased |
Average
Price Paid per Share |
Aggregate
Price Paid |
Total Number of
Shares Purchased as Part of Publicly Announced Programs |
Maximum Dollar
Value of Shares That May Yet be Purchased Under the Programs |
||||||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||||||||
Month #1 | |||||||||||||||||||||||||||||
(August 2, 2021 to August 29, 2021) | 3.5 | $ | 134.64 | $ | 466 | 3.5 | $ | 6,059 | |||||||||||||||||||||
Month #2 | |||||||||||||||||||||||||||||
(August 30, 2021 to September 26, 2021) | 3.2 | $ | 137.35 | 443 | 3.2 | $ | 5,616 | ||||||||||||||||||||||
Month #3 | |||||||||||||||||||||||||||||
(September 27, 2021 to October 31, 2021) | 4.5 | $ | 131.23 | 591 | 4.5 | $ | 5,025 | ||||||||||||||||||||||
Total | 11.2 | $ | 134.05 | $ | 1,500 | 11.2 |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||||||||||||||||
Net sales | $ | 23,063 | $ | 17,202 | $ | 14,608 | $ | 5,861 | $ | 2,594 | |||||||||||||||||||
Gross margin | 47.3 | % | 44.7 | % | 43.7 | % | 2.6 points | 1.0 points | |||||||||||||||||||||
Operating income | $ | 6,889 | $ | 4,365 | $ | 3,350 | $ | 2,524 | $ | 1,015 | |||||||||||||||||||
Operating margin | 29.9 | % | 25.4 | % | 22.9 | % | 4.5 points | 2.5 points | |||||||||||||||||||||
Net income | $ | 5,888 | $ | 3,619 | $ | 2,706 | $ | 2,269 | $ | 913 | |||||||||||||||||||
Earnings per diluted share | $ | 6.40 | $ | 3.92 | $ | 2.86 | $ | 2.48 | $ | 1.06 | |||||||||||||||||||
Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 16,286 | 71% | $ | 11,367 | 66% | $ | 9,027 | 62% | 43 | % | 26 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Applied Global Services | 5,013 | 22% | 4,155 | 24% | 3,854 | 26% | 21 | % | 8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 1,634 | 7% | 1,607 | 9% | 1,651 | 11% | 2 | % | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate and Other | 130 | —% | 73 | 1% | 76 | 1% | 78 | % | (4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,063 | 100% | $ | 17,202 | 100% | $ | 14,608 | 100% | 34 | % | 18 | % |
Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | 7,535 | 33% | $ | 5,456 | 32% | $ | 4,277 | 29% | 38 | % | 28 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Korea | 5,012 | 22% | 3,031 | 18% | 1,929 | 13% | 65 | % | 57 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Taiwan | 4,742 | 20% | 3,953 | 23% | 2,965 | 20% | 20 | % | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Japan | 1,962 | 8% | 1,996 | 11% | 2,198 | 15% | (2) | % | (9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Southeast Asia | 677 | 3% | 411 | 2% | 548 | 4% | 65 | % | (25) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 19,928 | 86% | 14,847 | 86% | 11,917 | 81% | 34 | % | 25 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
United States | 2,038 | 9% | 1,619 | 10% | 1,871 | 13% | 26 | % | (13) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Europe | 1,097 | 5% | 736 | 4% | 820 | 6% | 49 | % | (10) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,063 | 100% | $ | 17,202 | 100% | $ | 14,608 | 100% | 34 | % | 18 | % |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||
Gross margin | 47.3 | % | 44.7 | % | 43.7 | % | 2.6 points | 1.0 points |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Research, development and engineering | $ | 2,485 | $ | 2,234 | $ | 2,054 | $ | 251 | $ | 180 |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Marketing and selling | $ | 609 | $ | 526 | $ | 521 | $ | 83 | $ | 5 |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
General and administrative | $ | 620 | $ | 567 | $ | 461 | $ | 53 | $ | 106 |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Severance and related charges | $ | 157 | $ | — | $ | — | $ | 157 | $ | — |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Deal termination fee | $ | 154 | $ | — | $ | — | $ | 154 | $ | — |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Interest expense | $ | 236 | $ | 240 | $ | 237 | $ | (4) | $ | 3 | |||||||||||||||||||
Interest and other income, net | $ | 118 | $ | 41 | $ | 156 | $ | 77 | $ | (115) |
Change | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | |||||||||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||||||||
Provision for income taxes | $ | 883 | $ | 547 | $ | 563 | $ | 336 | $ | (16) | |||||||||||||||||||
Effective income tax rate | 13.0 | % | 13.1 | % | 17.2 | % | (0.1) | points | (4.1) | points |
2021 | 2020 | 2019 | |||||||||||||||
Foundry, logic and other | 60 | % | 59 | % | 52 | % | |||||||||||
Dynamic random-access memory (DRAM) | 19 | % | 20 | % | 22 | % | |||||||||||
Flash memory | 21 | % | 21 | % | 26 | % | |||||||||||
100 | % | 100 | % | 100 | % |
Change | ||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 over 2020 | 2020 over 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
(In millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | 1,361 | 83 | % | $ | 1,343 | 84 | % | $ | 1,469 | 89 | % | $ | 18 | 1 | % | $ | (126) | (9) | % |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Cash and cash equivalents | $ | 4,995 | $ | 5,351 | |||||||
Short-term investments | 464 | 387 | |||||||||
Long-term investments | 2,055 | 1,538 | |||||||||
Total cash, cash-equivalents and investments | $ | 7,514 | $ | 7,276 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Cash provided by operating activities | $ | 5,442 | $ | 3,804 | $ | 3,247 | |||||||||||
Cash used in investing activities | $ | (1,216) | $ | (130) | $ | (443) | |||||||||||
Cash used in financing activities | $ | (4,591) | $ | (1,337) | $ | (3,115) |
Payments Due by Period | |||||||||||||||||||||||||||||
Contractual Obligations | Total |
Less Than
1 Year |
1-3
Years |
3-5
Years |
More Than
5 Years |
||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Debt obligations | $ | 5,500 | $ | — | $ | — | $ | 700 | $ | 4,800 | |||||||||||||||||||
Interest expense associated with debt obligations | 3,212 | 205 | 410 | 382 | 2,215 | ||||||||||||||||||||||||
Operating lease obligations | 315 | 78 | 132 | 66 | 39 | ||||||||||||||||||||||||
Income tax from change in U.S. tax laws1
|
775 | 82 | 234 | 459 | — | ||||||||||||||||||||||||
Purchase obligations2
|
5,716 | 5,498 | 218 | — | — | ||||||||||||||||||||||||
Other long-term liabilities3,4
|
21 | — | 2 | 1 | 18 | ||||||||||||||||||||||||
Total | $ | 15,539 | $ | 5,863 | $ | 996 | $ | 1,608 | $ | 7,072 |
(In millions, except percentages) | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Gross Profit | ||||||||||||||||||||||||||||||||||||||
Reported gross profit - GAAP basis | $ | 10,914 | $ | 7,692 | $ | 6,386 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions1
|
27 | 37 | 37 | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
12 | 23 | — | |||||||||||||||||||||||||||||||||||
Other charges | 2 | — | — | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 10,955 | $ | 7,752 | $ | 6,423 | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted gross margin | 47.5 | % | 45.1 | % | 44.0 | % | ||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 6,889 | $ | 4,365 | $ | 3,350 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions1
|
47 | 54 | 55 | |||||||||||||||||||||||||||||||||||
Acquisition integration and deal costs | 45 | 80 | 22 | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
24 | 30 | — | |||||||||||||||||||||||||||||||||||
Severance and related charges3
|
157 | — | — | |||||||||||||||||||||||||||||||||||
Deal termination fee | 154 | — | — | |||||||||||||||||||||||||||||||||||
Other charges | 6 | — | — | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 7,322 | $ | 4,529 | $ | 3,427 | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating margin | 31.7 | % | 26.3 | % | 23.5 | % | ||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Net Income | ||||||||||||||||||||||||||||||||||||||
Reported net income - GAAP basis
|
$ | 5,888 | $ | 3,619 | $ | 2,706 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions1
|
47 | 54 | 55 | |||||||||||||||||||||||||||||||||||
Acquisition integration and deal costs | 46 | 80 | 22 | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
24 | 30 | — | |||||||||||||||||||||||||||||||||||
Severance and related charges3
|
157 | — | — | |||||||||||||||||||||||||||||||||||
Deal termination fee | 154 | — | — | |||||||||||||||||||||||||||||||||||
Realized loss (gain) on strategic investments, net | (43) | (1) | (6) | |||||||||||||||||||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | (56) | (8) | (30) | |||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 33 | — | |||||||||||||||||||||||||||||||||||
Other charges | 6 | — | — | |||||||||||||||||||||||||||||||||||
Income tax effect of changes in applicable U.S. tax laws4
|
— | — | (24) | |||||||||||||||||||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | 64 | 114 | 62 | |||||||||||||||||||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | 33 | (41) | 95 | |||||||||||||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments5
|
(33) | (35) | (5) | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted net income | $ | 6,287 | $ | 3,845 | $ | 2,875 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | Temporary incremental employee compensation during the COVID-19 pandemic. | ||||
3 | The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees. | ||||
4 | Charges to income tax provision related to a one-time transition tax as a result of U.S. tax legislation. | ||||
5 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
(In millions, except per share amounts) | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Non-GAAP Adjusted Earnings Per Diluted Share | ||||||||||||||||||||||||||||||||||||||
Reported earnings per diluted share - GAAP basis | $ | 6.40 | $ | 3.92 | $ | 2.86 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions | 0.04 | 0.05 | 0.05 | |||||||||||||||||||||||||||||||||||
Acquisition integration and deal costs | 0.04 | 0.07 | 0.02 | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-19 | 0.02 | 0.03 | — | |||||||||||||||||||||||||||||||||||
Severance and related charges | 0.13 | — | — | |||||||||||||||||||||||||||||||||||
Deal termination fee | 0.17 | — | — | |||||||||||||||||||||||||||||||||||
Realized loss (gain) on strategic investments, net | (0.03) | — | — | |||||||||||||||||||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | (0.05) | (0.01) | (0.03) | |||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 0.03 | — | |||||||||||||||||||||||||||||||||||
Other charges | 0.01 | — | — | |||||||||||||||||||||||||||||||||||
Income tax effect of change in applicable U.S. tax laws | — | — | (0.03) | |||||||||||||||||||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | 0.07 | 0.12 | 0.07 | |||||||||||||||||||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | 0.04 | (0.04) | 0.10 | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted earnings per diluted share | $ | 6.84 | $ | 4.17 | $ | 3.04 | ||||||||||||||||||||||||||||||||
Weighted average number of diluted shares | 919 | 923 | 945 |
(In millions, except percentages) | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Semiconductor Systems Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 6,311 | $ | 3,714 | $ | 2,464 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions1
|
38 | 41 | 43 | |||||||||||||||||||||||||||||||||||
Acquisition integration costs | (2) | 3 | — | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
12 | 20 | — | |||||||||||||||||||||||||||||||||||
Other charges
|
3 | — | — | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 6,362 | $ | 3,778 | $ | 2,507 | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating margin | 39.1 | % | 33.2 | % | 27.8 | % | ||||||||||||||||||||||||||||||||
AGS Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 1,508 | $ | 1,127 | $ | 1,101 | ||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
8 | 8 | — | |||||||||||||||||||||||||||||||||||
Other charges | 1 | — | — | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 1,517 | $ | 1,135 | $ | 1,101 | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating margin | 30.3 | % | 27.3 | % | 28.6 | % | ||||||||||||||||||||||||||||||||
Display and Adjacent Markets Non-GAAP Adjusted Operating Income | ||||||||||||||||||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 314 | $ | 291 | $ | 294 | ||||||||||||||||||||||||||||||||
Certain items associated with acquisitions1
|
4 | 12 | 12 | |||||||||||||||||||||||||||||||||||
Acquisition integration costs | — | — | 1 | |||||||||||||||||||||||||||||||||||
Certain incremental expenses related to COVID-192
|
1 | 1 | — | |||||||||||||||||||||||||||||||||||
Severance and related charges3
|
8 | — | — | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 327 | $ | 304 | $ | 307 | ||||||||||||||||||||||||||||||||
Non-GAAP adjusted operating margin | 20.0 | % | 18.9 | % | 18.6 | % | ||||||||||||||||||||||||||||||||
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | Temporary incremental employee compensation during the COVID-19 pandemic. | ||||
3 | The severance and related charges related to workforce reduction actions globally across the Display and Adjacent Market business. |
Plan Category |
(a)
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(1) |
(b)
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights(2) |
(c)
Number of Securities Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) |
||||||||||||||||||||
(In millions, except prices) | |||||||||||||||||||||||
Equity compensation plans approved by security holders | 13 | $ | — | 51 | (3) | ||||||||||||||||||
Total | 13 | $ | — | 51 |
Page
Number |
||||||||
(1) | Financial Statements: | |||||||
(2) | Exhibits: | |||||||
/S/ KPMG LLP
|
||
KPMG LLP |
/s/ KPMG LLP | ||
KPMG LLP |
Fiscal Year | 2021 | 2020 | 2019 | ||||||||||||||
Net sales | $ | 23,063 | $ | 17,202 | $ | 14,608 | |||||||||||
Cost of products sold | 12,149 | 9,510 | 8,222 | ||||||||||||||
Gross profit | 10,914 | 7,692 | 6,386 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Research, development and engineering | 2,485 | 2,234 | 2,054 | ||||||||||||||
Marketing and selling | 609 | 526 | 521 | ||||||||||||||
General and administrative | 620 | 567 | 461 | ||||||||||||||
Severance and related charges | 157 | — | — | ||||||||||||||
Deal termination fee | 154 | — | — | ||||||||||||||
Total operating expenses | 4,025 | 3,327 | 3,036 | ||||||||||||||
Income from operations | 6,889 | 4,365 | 3,350 | ||||||||||||||
Interest expense | 236 | 240 | 237 | ||||||||||||||
Interest and other income, net | 118 | 41 | 156 | ||||||||||||||
Income before income taxes | 6,771 | 4,166 | 3,269 | ||||||||||||||
Provision for income taxes | 883 | 547 | 563 | ||||||||||||||
Net income | $ | 5,888 | $ | 3,619 | $ | 2,706 | |||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 6.47 | $ | 3.95 | $ | 2.89 | |||||||||||
Diluted | $ | 6.40 | $ | 3.92 | $ | 2.86 | |||||||||||
Weighted average number of shares: | |||||||||||||||||
Basic | 910 | 916 | 937 | ||||||||||||||
Diluted | 919 | 923 | 945 |
Fiscal Year | 2021 | 2020 | 2019 | ||||||||||||||
Net income | $ | 5,888 | $ | 3,619 | $ | 2,706 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Change in unrealized gain (loss) on available-for-sale investments | (21) | 9 | 21 | ||||||||||||||
Change in unrealized net loss on derivative instruments | 30 | (117) | (7) | ||||||||||||||
Change in defined and postretirement benefit plans | 30 | (11) | (51) | ||||||||||||||
Change in cumulative translation adjustments | — | — | (1) | ||||||||||||||
Other comprehensive income (loss), net of tax | 39 | (119) | (38) | ||||||||||||||
Comprehensive income | $ | 5,927 | $ | 3,500 | $ | 2,668 |
October 31,
2021 |
October 25,
2020 |
||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 4,995 | $ | 5,351 | |||||||
Short-term investments | 464 | 387 | |||||||||
Accounts receivable, net | 4,953 | 2,963 | |||||||||
Inventories | 4,309 | 3,904 | |||||||||
Other current assets | 1,386 | 764 | |||||||||
Total current assets | 16,107 | 13,369 | |||||||||
Long-term investments | 2,055 | 1,538 | |||||||||
Property, plant and equipment, net | 1,934 | 1,604 | |||||||||
Goodwill | 3,479 | 3,466 | |||||||||
Purchased technology and other intangible assets, net | 104 | 153 | |||||||||
Deferred income taxes and other assets | 2,146 | 2,223 | |||||||||
Total assets | $ | 25,825 | $ | 22,353 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 4,268 | $ | 3,138 | |||||||
Contract liabilities | 2,076 | 1,321 | |||||||||
Total current liabilities | 6,344 | 4,459 | |||||||||
Long-term debt | 5,452 | 5,448 | |||||||||
Income taxes payable | 1,090 | 1,206 | |||||||||
Other liabilities | 692 | 662 | |||||||||
Total liabilities | 13,578 | 11,775 | |||||||||
Commitments and contingencies (Note 17) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock: $0.01 par value per share; 1 shares authorized; no shares issued
|
— | — | |||||||||
Common stock: $0.01 par value per share; 2,500 shares authorized; 892 and 914 shares outstanding at 2021 and 2020, respectively
|
9 | 9 | |||||||||
Additional paid-in capital | 8,247 | 7,904 | |||||||||
Retained earnings | 32,246 | 27,209 | |||||||||
Treasury stock: 1,119 and 1,091 shares at 2021 and 2020, respectively
|
(27,995) | (24,245) | |||||||||
Accumulated other comprehensive loss | (260) | (299) | |||||||||
Total stockholders’ equity | 12,247 | 10,578 | |||||||||
Total liabilities and stockholders’ equity | $ | 25,825 | $ | 22,353 |
Common Stock |
Additional
Paid-In Capital |
Retained
Earnings (a) |
Treasury Stock |
Accumulated
Other Comprehensive Income (Loss) |
Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance at October 28, 2018 | 967 | $ | 10 | $ | 7,274 | $ | 20,880 | 1,019 | $ | (21,194) | $ | (125) | $ | 6,845 | |||||||||||||||||||||||||||||||||
Adoption of new accounting standards (b) | — | — | — | 1,570 | — | — | (17) | 1,553 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 2,706 | — | — | — | 2,706 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (38) | (38) | |||||||||||||||||||||||||||||||||||||||
Dividends declared
($0.83 per common share)
|
— | — | — | (770) | — | — | — | (770) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 263 | — | — | — | — | 263 | |||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | 9 | — | 58 | — | — | — | — | 58 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchases | (60) | (1) | — | — | 60 | (2,402) | — | (2,403) | |||||||||||||||||||||||||||||||||||||||
Balance at October 27, 2019 | 916 | $ | 9 | $ | 7,595 | $ | 24,386 | 1,079 | $ | (23,596) | $ | (180) | $ | 8,214 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 3,619 | — | — | — | 3,619 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | — | (119) | (119) | |||||||||||||||||||||||||||||||||||||||
Dividends declared
($0.87 per common share)
|
— | — | — | (796) | — | — | — | (796) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 307 | — | — | — | — | 307 | |||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | 10 | — | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||
Common stock repurchases | (12) | — | — | — | 12 | (649) | — | (649) | |||||||||||||||||||||||||||||||||||||||
Balance at October 25, 2020 | 914 | $ | 9 | $ | 7,904 | $ | 27,209 | 1,091 | $ | (24,245) | $ | (299) | $ | 10,578 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 5,888 | — | — | — | 5,888 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 39 | 39 | |||||||||||||||||||||||||||||||||||||||
Dividends declared
($0.94 per common share)
|
— | — | — | (851) | — | — | — | (851) | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 346 | — | — | — | — | 346 | |||||||||||||||||||||||||||||||||||||||
Issuance under stock plans | 6 | — | (3) | — | — | — | — | (3) | |||||||||||||||||||||||||||||||||||||||
Common stock repurchases | (28) | — | — | — | 28 | (3,750) | — | (3,750) | |||||||||||||||||||||||||||||||||||||||
Balance at October 31, 2021 | 892 | $ | 9 | $ | 8,247 | $ | 32,246 | 1,119 | $ | (27,995) | $ | (260) | $ | 12,247 |
Fiscal Year | 2021 | 2020 | 2019 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 5,888 | $ | 3,619 | $ | 2,706 | |||||||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 394 | 376 | 363 | ||||||||||||||
Severance and related charges | 148 | — | — | ||||||||||||||
Deferred income taxes | 80 | 80 | 49 | ||||||||||||||
Other | (70) | 60 | (19) | ||||||||||||||
Share-based compensation | 346 | 307 | 263 | ||||||||||||||
Changes in operating assets and liabilities, net of amounts acquired: | |||||||||||||||||
Accounts receivable | (1,989) | (427) | (207) | ||||||||||||||
Inventories | (405) | (421) | 248 | ||||||||||||||
Other current and non-current assets | (602) | (161) | (86) | ||||||||||||||
Accounts payable and accrued expenses | 465 | 327 | (247) | ||||||||||||||
Contract liabilities | 755 | (16) | 135 | ||||||||||||||
Income taxes payable | 396 | (10) | 44 | ||||||||||||||
Other liabilities | 36 | 70 | (2) | ||||||||||||||
Cash provided by operating activities | 5,442 | 3,804 | 3,247 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (668) | (422) | (441) | ||||||||||||||
Cash paid for acquisitions, net of cash acquired | (12) | (107) | (28) | ||||||||||||||
Proceeds from sales and maturities of investments | 1,471 | 1,754 | 1,940 | ||||||||||||||
Purchases of investments | (2,007) | (1,355) | (1,914) | ||||||||||||||
Cash used in investing activities | (1,216) | (130) | (443) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Debt borrowings, net of issuance costs | — | 2,979 | — | ||||||||||||||
Debt repayments | — | (2,882) | — | ||||||||||||||
Proceeds from common stock issuances | 175 | 174 | 145 | ||||||||||||||
Common stock repurchases | (3,750) | (649) | (2,403) | ||||||||||||||
Tax withholding payments for vested equity awards | (178) | (172) | (86) | ||||||||||||||
Payments of dividends to stockholders | (838) | (787) | (771) | ||||||||||||||
Cash used in financing activities | (4,591) | (1,337) | (3,115) | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | (365) | 2,337 | (311) | ||||||||||||||
Cash, cash equivalents and restricted cash equivalents — beginning of period | 5,466 | 3,129 | 3,440 | ||||||||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 5,101 | $ | 5,466 | $ | 3,129 | |||||||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||||
Cash and cash equivalents | $ | 4,995 | $ | 5,351 | $ | 3,129 | |||||||||||
Restricted cash equivalents included in deferred income taxes and other assets | 106 | 115 | — | ||||||||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 5,101 | $ | 5,466 | $ | 3,129 | |||||||||||
Supplemental cash flow information: | |||||||||||||||||
Cash payments for income taxes | $ | 851 | $ | 542 | $ | 522 | |||||||||||
Cash refunds from income taxes | $ | 27 | $ | 68 | $ | 22 | |||||||||||
Cash payments for interest | $ | 205 | $ | 219 | $ | 219 |
Fiscal Year | 2021 | 2020 | 2019 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 5,888 | $ | 3,619 | $ | 2,706 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding | 910 | 916 | 937 | ||||||||||||||
Effect of weighted dilutive stock options, restricted stock units and employee stock purchase plan shares | 9 | 7 | 8 | ||||||||||||||
Denominator for diluted earnings per share | 919 | 923 | 945 | ||||||||||||||
Basic earnings per share | $ | 6.47 | $ | 3.95 | $ | 2.89 | |||||||||||
Diluted earnings per share | $ | 6.40 | $ | 3.92 | $ | 2.86 | |||||||||||
Potentially weighted dilutive securities | — | — | 3 |
October 31, 2021 | Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Estimated
Fair Value |
|||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash | $ | 1,407 | $ | — | $ | — | $ | 1,407 | |||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 3,556 | — | — | 3,556 | |||||||||||||||||||
Municipal securities | 22 | — | — | 22 | |||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | 10 | — | — | 10 | |||||||||||||||||||
Total Cash equivalents | 3,588 | — | — | 3,588 | |||||||||||||||||||
Total Cash and Cash equivalents | $ | 4,995 | $ | — | $ | — | $ | 4,995 | |||||||||||||||
Short-term and long-term investments: | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 314 | $ | — | $ | — | $ | 314 | |||||||||||||||
Non-U.S. government securities* | 5 | — | — | 5 | |||||||||||||||||||
Municipal securities | 367 | 3 | 1 | 369 | |||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | 587 | 2 | 2 | 587 | |||||||||||||||||||
Asset-backed and mortgage-backed securities | 555 | 3 | 1 | 557 | |||||||||||||||||||
Total fixed income securities | 1,828 | 8 | 4 | 1,832 | |||||||||||||||||||
Publicly traded equity securities | 22 | 39 | 3 | 58 | |||||||||||||||||||
Equity investments in privately-held companies | 561 | 82 | 14 | 629 | |||||||||||||||||||
Total equity investments | 583 | 121 | 17 | 687 | |||||||||||||||||||
Total short-term and long-term investments | $ | 2,411 | $ | 129 | $ | 21 | $ | 2,519 | |||||||||||||||
Total Cash, Cash equivalents and Investments | $ | 7,406 | $ | 129 | $ | 21 | $ | 7,514 |
October 25, 2020 | Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Estimated
Fair Value |
|||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash | $ | 1,136 | $ | — | $ | — | $ | 1,136 | |||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | 4,209 | — | — | 4,209 | |||||||||||||||||||
Municipal securities | 6 | — | — | 6 | |||||||||||||||||||
Total Cash equivalents | 4,215 | — | — | 4,215 | |||||||||||||||||||
Total Cash and Cash equivalents | $ | 5,351 | $ | — | $ | — | $ | 5,351 | |||||||||||||||
Short-term and long-term investments: | |||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 394 | $ | 4 | $ | — | $ | 398 | |||||||||||||||
Municipal securities | 359 | 6 | — | 365 | |||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | 492 | 8 | 1 | 499 | |||||||||||||||||||
Asset-backed and mortgage-backed securities | 470 | 9 | — | 479 | |||||||||||||||||||
Total fixed income securities | 1,715 | 27 | 1 | 1,741 | |||||||||||||||||||
Publicly traded equity securities | 11 | 36 | 2 | 45 | |||||||||||||||||||
Equity investments in privately-held companies | 121 | 25 | 7 | 139 | |||||||||||||||||||
Total equity investments | 132 | 61 | 9 | 184 | |||||||||||||||||||
Total short-term and long-term investments | $ | 1,847 | $ | 88 | $ | 10 | $ | 1,925 | |||||||||||||||
Total Cash, Cash equivalents and Investments | $ | 7,198 | $ | 88 | $ | 10 | $ | 7,276 |
Cost | Estimated Fair Value | ||||||||||
(In millions) | |||||||||||
Due in one year or less | $ | 393 | $ | 395 | |||||||
Due after one through five years | 878 | 878 | |||||||||
Due after five years | 2 | 2 | |||||||||
No single maturity date** | 1,138 | 1,244 | |||||||||
Total | $ | 2,411 | $ | 2,519 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Publicly traded equity securities | |||||||||||||||||
Unrealized gain | $ | 14 | $ | 14 | $ | 28 | |||||||||||
Unrealized loss | (11) | (17) | (5) | ||||||||||||||
Realized gain on sales | 2 | 1 | 2 | ||||||||||||||
Equity investments in privately-held companies | |||||||||||||||||
Unrealized gain | 65 | 18 | 13 | ||||||||||||||
Unrealized loss | (12) | (7) | (6) | ||||||||||||||
Realized gain on sales | 48 | 8 | 5 | ||||||||||||||
Realized loss on sales or impairment | (7) | (8) | (1) | ||||||||||||||
Total gain (loss) on equity investments, net | $ | 99 | $ | 9 | $ | 36 |
October 31, 2021 | October 25, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt security investments | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds* | $ | 3,662 | $ | — | $ | 3,662 | $ | 4,324 | $ | — | $ | 4,324 | |||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 296 | 18 | 314 | 375 | 23 | 398 | |||||||||||||||||||||||||||||||||||||||||
Non-U.S. government securities | — | 5 | 5 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | — | 391 | 391 | — | 371 | 371 | |||||||||||||||||||||||||||||||||||||||||
Commercial paper, corporate bonds and medium-term notes | — | 597 | 597 | — | 499 | 499 | |||||||||||||||||||||||||||||||||||||||||
Asset-backed and mortgage-backed securities | — | 557 | 557 | — | 479 | 479 | |||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt security investments | $ | 3,958 | $ | 1,568 | $ | 5,526 | $ | 4,699 | $ | 1,372 | $ | 6,071 | |||||||||||||||||||||||||||||||||||
Equity investments with readily determinable values | |||||||||||||||||||||||||||||||||||||||||||||||
Publicly traded equity securities | $ | 58 | $ | — | $ | 58 | $ | 45 | $ | — | $ | 45 | |||||||||||||||||||||||||||||||||||
Total equity investments with readily determinable values | $ | 58 | $ | — | $ | 58 | $ | 45 | $ | — | $ | 45 | |||||||||||||||||||||||||||||||||||
Total | $ | 4,016 | $ | 1,568 | $ | 5,584 | $ | 4,744 | $ | 1,372 | $ | 6,116 | |||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Foreign exchange contracts | $ | 36 | $ | 3 | $ | (14) | |||||||||||
Interest rate contracts | — | (151) | — | ||||||||||||||
Total | $ | 36 | $ | (148) | $ | (14) |
Derivatives in Cash Flow Hedging Relationships | |||||||||||||||||
Total Amount Presented in the Consolidated Statement of Operations in which the Effects of Cash Flow Hedges are Recorded |
Amount of Gain or (Loss)
Reclassified from AOCI into Consolidated Statement of Operations |
Amounts of Gain (Loss) Excluded from Effectiveness Testing
Recognized in Consolidated Statement of Operations |
|||||||||||||||
(In millions) | |||||||||||||||||
2021 | |||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Net Sales | $ | 23,063 | $ | 4 | $ | — | |||||||||||
Cost of products sold | $ | 12,149 | 2 | (2) | |||||||||||||
Research, development and engineering | $ | 2,485 | 3 | — | |||||||||||||
General and administrative | $ | 620 | 1 | — | |||||||||||||
Interest Rate Contracts: | |||||||||||||||||
Interest expense | $ | 236 | (13) | — | |||||||||||||
$ | (3) | $ | (2) | ||||||||||||||
2020 | |||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Net Sales | $ | 17,202 | $ | (2) | $ | 4 | |||||||||||
Cost of products sold | $ | 9,510 | 6 | (3) | |||||||||||||
Research, development and engineering | $ | 2,234 | 4 | — | |||||||||||||
General and administrative | $ | 567 | 1 | — | |||||||||||||
Interest Rate Contracts: | |||||||||||||||||
Interest expense | $ | 240 | (7) | — | |||||||||||||
$ | 2 | $ | 1 | ||||||||||||||
2019 | |||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||
Cost of products sold | $ | 8,222 | $ | 2 | $ | 15 | |||||||||||
General and administrative | $ | 461 | (3) | (6) | |||||||||||||
Interest Rate Contracts: | |||||||||||||||||
Interest expense | $ | 237 | (3) | — | |||||||||||||
$ | (4) | $ | 9 |
Amount of Gain or (Loss)
Recognized in Consolidated Statement of Operations |
|||||||||||||||||||||||
Location of Gain or (Loss) Recognized in Consolidated Statement of Operations | 2021 | 2020 | 2019 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
Foreign exchange contracts | General and administrative | $ | — | $ | — | $ | (8) | ||||||||||||||||
Foreign exchange contracts | Interest and other income, net | 29 | (10) | — | |||||||||||||||||||
Total return swaps - deferred compensation | Cost of products sold | 3 | 1 | — | |||||||||||||||||||
Total return swaps - deferred compensation | Operating expenses | 29 | 6 | — | |||||||||||||||||||
Total return swaps - deferred compensation | Interest and other income, net | (1) | (1) | — | |||||||||||||||||||
Total | $ | 60 | $ | (4) | $ | (8) | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 30 | $ | 30 | $ | 33 | |||||||||||
Provision | — | — | — | ||||||||||||||
Deductions1
|
(1) | — | (3) | ||||||||||||||
Ending balance | $ | 29 | $ | 30 | $ | 30 |
October 31, 2021 | October 25, 2020 | ||||||||||
(In millions) | |||||||||||
Contract assets | $ | 201 | $ | 148 | |||||||
Contract liabilities | $ | 2,076 | $ | 1,321 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Inventories | |||||||||||
Customer service spares | $ | 1,251 | $ | 1,270 | |||||||
Raw materials | 1,136 | 870 | |||||||||
Work-in-process | 873 | 624 | |||||||||
Finished goods | 1,049 | 1,140 | |||||||||
$ | 4,309 | $ | 3,904 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Other Current Assets | |||||||||||
Prepaid income taxes and income taxes receivable | $ | 593 | $ | 162 | |||||||
Prepaid expenses and other | 793 | 602 | |||||||||
$ | 1,386 | $ | 764 |
Useful Life |
October 31,
2021 |
October 25,
2020 |
|||||||||||||||
(In years) | (In millions) | ||||||||||||||||
Property, Plant and Equipment, Net | |||||||||||||||||
Land and improvements | $ | 334 | $ | 256 | |||||||||||||
Buildings and improvements |
3-30
|
1,780 | 1,655 | ||||||||||||||
Demonstration and manufacturing equipment |
3-5
|
1,820 | 1,586 | ||||||||||||||
Furniture, fixtures and other equipment |
3-5
|
720 | 646 | ||||||||||||||
Construction in progress | 326 | 237 | |||||||||||||||
Gross property, plant and equipment | 4,980 | 4,380 | |||||||||||||||
Accumulated depreciation | (3,046) | (2,776) | |||||||||||||||
$ | 1,934 | $ | 1,604 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Deferred Income Taxes and Other Assets | |||||||||||
Non-current deferred income taxes | $ | 1,623 | $ | 1,711 | |||||||
Operating lease right-of-use assets | 294 | 252 | |||||||||
Income tax receivables and other assets | 229 | 260 | |||||||||
$ | 2,146 | $ | 2,223 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Accounts Payable and Accrued Expenses | |||||||||||
Accounts payable | $ | 1,472 | $ | 1,124 | |||||||
Compensation and employee benefits | 924 | 800 | |||||||||
Warranty | 242 | 201 | |||||||||
Dividends payable | 214 | 201 | |||||||||
Income taxes payable | 734 | 222 | |||||||||
Other accrued taxes | 24 | 33 | |||||||||
Interest payable | 39 | 36 | |||||||||
Operating lease liabilities, current | 73 | 64 | |||||||||
Other | 546 | 457 | |||||||||
$ | 4,268 | $ | 3,138 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Other Liabilities | |||||||||||
Defined and postretirement benefit plans | $ | 193 | $ | 241 | |||||||
Operating lease liabilities, non-current | 228 | 195 | |||||||||
Other | 271 | 226 | |||||||||
$ | 692 | $ | 662 |
October 31,
2021 |
October 25, 2020 | ||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 2,207 | $ | 2,208 | |||||||||||||||||||||||||||||||
Applied Global Services | 1,032 | 1,018 | |||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 199 | 199 | |||||||||||||||||||||||||||||||||
Corporate and Other | 41 | 41 | |||||||||||||||||||||||||||||||||
Carrying amount | $ | 3,479 | $ | 3,466 |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Purchased technology, net | $ | 46 | $ | 75 | |||||||
Intangible assets - finite-lived, net | 58 | 78 | |||||||||
Total | $ | 104 | $ | 153 |
October 31, 2021 | October 25, 2020 | ||||||||||||||||||||||||||||||||||
Purchased
Technology |
Other
Intangible Assets |
Total |
Purchased
Technology |
Other
Intangible Assets |
Total | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Gross carrying amount: | |||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 1,476 | $ | 256 | $ | 1,732 | $ | 1,476 | $ | 256 | $ | 1,732 | |||||||||||||||||||||||
Applied Global Services | 35 | 44 | 79 | 35 | 44 | 79 | |||||||||||||||||||||||||||||
Display and Adjacent Markets | 163 | 38 | 201 | 163 | 38 | 201 | |||||||||||||||||||||||||||||
Corporate and Other | 13 | 16 | 29 | 13 | 16 | 29 | |||||||||||||||||||||||||||||
Gross carrying amount | $ | 1,687 | $ | 354 | $ | 2,041 | $ | 1,687 | $ | 354 | $ | 2,041 | |||||||||||||||||||||||
Accumulated amortization: | |||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | (1,446) | $ | (203) | $ | (1,649) | $ | (1,423) | $ | (185) | $ | (1,608) | |||||||||||||||||||||||
Applied Global Services | (32) | (44) | (76) | (31) | (44) | (75) | |||||||||||||||||||||||||||||
Display and Adjacent Markets | (161) | (38) | (199) | (157) | (37) | (194) | |||||||||||||||||||||||||||||
Corporate and Other | (2) | (11) | (13) | (1) | (10) | (11) | |||||||||||||||||||||||||||||
Accumulated amortization | $ | (1,641) | $ | (296) | $ | (1,937) | $ | (1,612) | $ | (276) | $ | (1,888) | |||||||||||||||||||||||
Carrying amount | $ | 46 | $ | 58 | $ | 104 | $ | 75 | $ | 78 | $ | 153 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Semiconductor Systems | $ | 41 | $ | 40 | $ | 43 | |||||||||||
Applied Global Services | 1 | 1 | 1 | ||||||||||||||
Display and Adjacent Markets | 5 | 13 | 13 | ||||||||||||||
Corporate and Other | 2 | 2 | — | ||||||||||||||
Total | $ | 49 | $ | 56 | $ | 57 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Cost of products sold | $ | 29 | $ | 37 | $ | 38 | |||||||||||
Research, development and engineering | 1 | 1 | 1 | ||||||||||||||
Marketing and selling | 19 | 18 | 18 | ||||||||||||||
Total | $ | 49 | $ | 56 | $ | 57 |
Amortization
Expense |
|||||
(In millions) | |||||
2022 | $ | 33 | |||
2023 | 20 | ||||
2024 | 17 | ||||
2025 | 15 | ||||
2026 | 15 | ||||
Thereafter | 4 | ||||
Total | $ | 104 |
Principal Amount | |||||||||||||||||||||||
October 31,
2021 |
October 25,
2020 |
Effective
Interest Rate |
Interest
Pay Dates |
||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||
3.900% Senior Notes Due 2025
|
$ | 700 | $ | 700 | 3.944% | April 1, October 1 | |||||||||||||||||
3.300% Senior Notes Due 2027
|
1,200 | 1,200 | 3.342% | April 1, October 1 | |||||||||||||||||||
1.750% Senior Notes Due 2030
|
750 | 750 | 1.792% | June 1, December 1 | |||||||||||||||||||
5.100% Senior Notes Due 2035
|
500 | 500 | 5.127% | April 1, October 1 | |||||||||||||||||||
5.850% Senior Notes Due 2041
|
600 | 600 | 5.879% | June 15, December 15 | |||||||||||||||||||
4.350% Senior Notes Due 2047
|
1,000 | 1,000 | 4.361% | April 1, October 1 | |||||||||||||||||||
2.750% Senior Notes Due 2050
|
750 | 750 | 2.773% | June 1, December 1 | |||||||||||||||||||
5,500 | 5,500 | ||||||||||||||||||||||
Total unamortized discount | (14) | (15) | |||||||||||||||||||||
Total unamortized debt issuance costs | (34) | (37) | |||||||||||||||||||||
Total long-term debt | $ | 5,452 | $ | 5,448 | |||||||||||||||||||
2021 | 2020 | ||||||||||
(In millions, except percentage) | |||||||||||
Operating lease cost | $ | 79 | $ | 69 | |||||||
Weighted-average remaining lease term (in years) | 5.1 | 5.2 | |||||||||
Weighted-average discount rate | 1.7 | % | 1.8 | % |
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Operating cash flows paid for operating leases | $ | 79 | $ | 70 | |||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 123 | $ | 156 |
Operating Leases | |||||
Fiscal | (In millions) | ||||
2022 | $ | 78 | |||
2023 | 71 | ||||
2024 | 61 | ||||
2025 | 48 | ||||
2026 | 18 | ||||
Thereafter | 39 | ||||
Total lease payments | 315 | ||||
Less imputed interest | (14) | ||||
Total | $ | 301 |
2021 | |||||||||||||||||
(In millions) | |||||||||||||||||
Display and Adjacent Markets | $ | 8 | |||||||||||||||
Corporate and Other | 149 | ||||||||||||||||
Total | $ | 157 |
Severance and Related Charges Reserves | |||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Balance as of October 25, 2020 | $ | — | |||||||||||||||||||||
Provision for severance | 158 | ||||||||||||||||||||||
Adjustment to provision for severance
|
(1) | ||||||||||||||||||||||
Consumption of reserves | (140) | ||||||||||||||||||||||
Balance as of October 31, 2021 | $ | 17 |
Unrealized Gain (Loss) on Investments, Net | Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges | Defined and Postretirement Benefit Plans | Cumulative Translation Adjustments | Total | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||
Balance at October 28, 2018
|
$ | 7 | $ | (9) | $ | (137) | $ | 14 | (125) | ||||||||||||||||||||
Adoption of new accounting standards (a) | (17) | — | — | — | (17) | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 22 | (10) | (57) | (1) | (46) | ||||||||||||||||||||||||
Amounts reclassified out of AOCI | (1) | 3 | 6 | — | 8 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 21 | (7) | (51) | (1) | (38) | ||||||||||||||||||||||||
Balance at October 27, 2019
|
$ | 11 | $ | (16) | $ | (188) | $ | 13 | $ | (180) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 16 | (115) | (21) | — | (120) | ||||||||||||||||||||||||
Amounts reclassified out of AOCI | (7) | (2) | 10 | — | 1 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 9 | (117) | (11) | — | (119) | ||||||||||||||||||||||||
Balance at October 25, 2020
|
$ | 20 | $ | (133) | $ | (199) | $ | 13 | $ | (299) | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (14) | 28 | 20 | — | 34 | ||||||||||||||||||||||||
Amounts reclassified out of AOCI | (7) | 2 | 10 | — | 5 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (21) | 30 | 30 | — | 39 | ||||||||||||||||||||||||
Balance at October 31, 2021
|
$ | (1) | $ | (103) | $ | (169) | $ | 13 | $ | (260) |
2021 | 2020 | 2019 | |||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Shares of common stock repurchased | 28 | 12 | 60 | ||||||||||||||
Cost of stock repurchased | $ | 3,750 | $ | 649 | $ | 2,403 | |||||||||||
Average price paid per share | $ | 134.03 | $ | 56.32 | $ | 39.86 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Cost of products sold | $ | 118 | $ | 103 | $ | 89 | |||||||||||
Research, development, and engineering | 129 | 116 | 99 | ||||||||||||||
Marketing and selling | 43 | 36 | 31 | ||||||||||||||
General and administrative | 56 | 52 | 44 | ||||||||||||||
Total share-based compensation | $ | 346 | $ | 307 | $ | 263 | |||||||||||
Income tax benefits recognized | $ | 43 | $ | 39 | $ | 37 |
Shares |
Weighted
Average Grant Date Fair Value |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 28, 2018
|
18 | $ | 32.64 | 2.0 years | $ | 600 | |||||||||||||||||
Granted | 8 | $ | 36.00 | ||||||||||||||||||||
Vested | (7) | $ | 28.41 | ||||||||||||||||||||
Canceled | (1) | $ | 34.59 | ||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2019
|
18 | $ | 35.78 | 2.1 years | $ | 985 | |||||||||||||||||
Granted | 6 | $ | 53.89 | ||||||||||||||||||||
Vested | (8) | $ | 31.25 | ||||||||||||||||||||
Canceled | (1) | $ | 42.61 | ||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2020
|
15 | $ | 45.36 | 2.2 years | $ | 914 | |||||||||||||||||
Granted | 5 | $ | 92.04 | ||||||||||||||||||||
Vested | (6) | $ | 43.11 | ||||||||||||||||||||
Canceled | (1) | $ | 59.41 | ||||||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 31, 2021
|
13 | $ | 63.29 | 2.2 years | $ | 1,752 | |||||||||||||||||
Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest | 13 | $ | 63.37 | 2.0 years | $ | 1,724 |
2021 | 2020 | 2019 | |||||||||||||||
ESPP: | |||||||||||||||||
Dividend yield | 0.72 | % | 1.41 | % | 1.99 | % | |||||||||||
Expected volatility | 41.3 | % | 48.2 | % | 35.5 | % | |||||||||||
Risk-free interest rate | 0.05 | % | 0.58 | % | 2.21 | % | |||||||||||
Expected life (in years) | 0.5 | 0.5 | 0.5 | ||||||||||||||
Weighted average estimated fair value | $33.77 | $17.30 | $10.61 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions, except percentages) | |||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||
Beginning projected benefit obligation | $ | 674 | $ | 617 | $ | 524 | |||||||||||
Service cost | 15 | 13 | 11 | ||||||||||||||
Interest cost | 8 | 8 | 10 | ||||||||||||||
Plan participants’ contributions | 1 | 1 | 1 | ||||||||||||||
Actuarial (gain) loss | (1) | 6 | 84 | ||||||||||||||
Settlements | — | — | (1) | ||||||||||||||
Foreign currency exchange rate changes | 3 | 33 | (5) | ||||||||||||||
Benefits paid | (15) | (10) | (8) | ||||||||||||||
Plan amendments and other adjustments | — | 6 | 1 | ||||||||||||||
Ending projected benefit obligation | $ | 685 | $ | 674 | $ | 617 | |||||||||||
Ending accumulated benefit obligation | $ | 626 | $ | 627 | $ | 578 | |||||||||||
Range of assumptions to determine benefit obligations | |||||||||||||||||
Discount rate |
0.6% - 6.6%
|
0.4% - 6.5%
|
0.5% - 3.1%
|
||||||||||||||
Rate of compensation increase |
2.4% - 10.0%
|
2.3% - 10.0%
|
2.3% - 3.6%
|
||||||||||||||
Change in plan assets | |||||||||||||||||
Beginning fair value of plan assets | $ | 431 | $ | 409 | $ | 365 | |||||||||||
Return on plan assets | 49 | — | 30 | ||||||||||||||
Employer contributions | 22 | 12 | 27 | ||||||||||||||
Plan participants’ contributions | 1 | 1 | 1 | ||||||||||||||
Foreign currency exchange rate changes | 3 | 19 | (5) | ||||||||||||||
Settlements | — | — | (1) | ||||||||||||||
Benefits paid | (15) | (10) | (8) | ||||||||||||||
Ending fair value of plan assets | $ | 491 | $ | 431 | $ | 409 | |||||||||||
Funded status | $ | (194) | $ | (243) | $ | (208) | |||||||||||
Amounts recognized in the consolidated balance sheets | |||||||||||||||||
Noncurrent asset | $ | 1 | $ | — | $ | 5 | |||||||||||
Current liability | (2) | (2) | (1) | ||||||||||||||
Noncurrent liability | (193) | (241) | (212) | ||||||||||||||
Total | $ | (194) | $ | (243) | $ | (208) | |||||||||||
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period | |||||||||||||||||
Actuarial loss | $ | 11 | $ | 14 | $ | 12 | |||||||||||
Prior service credit | — | — | — | ||||||||||||||
Total | $ | 11 | $ | 14 | $ | 12 | |||||||||||
Amounts recognized in accumulated other comprehensive loss | |||||||||||||||||
Net actuarial loss | $ | 200 | $ | 242 | $ | 226 | |||||||||||
Prior service credit | 1 | — | — | ||||||||||||||
Total | $ | 201 | $ | 242 | $ | 226 | |||||||||||
Plans with projected benefit obligations in excess of plan assets | |||||||||||||||||
Projected benefit obligation | $ | 472 | $ | 674 | $ | 424 | |||||||||||
Fair value of plan assets | $ | 277 | $ | 431 | $ | 211 | |||||||||||
Plans with accumulated benefit obligations in excess of plan assets | |||||||||||||||||
Accumulated benefit obligation | $ | 413 | $ | 627 | $ | 385 | |||||||||||
Fair value of plan assets | $ | 277 | $ | 431 | $ | 211 |
2021 | 2020 | ||||||||||||||||
Plan assets — allocation | |||||||||||||||||
Equity securities | 35 | % | 38 | % | |||||||||||||
Debt securities | 33 | % | 43 | % | |||||||||||||
Insurance contracts | 23 | % | 9 | % | |||||||||||||
Other investments | 9 | % | 10 | % | |||||||||||||
October 31, 2021 | October 25, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | $ | 137 | $ | — | $ | — | $ | 137 | $ | 103 | $ | — | $ | — | $ | 103 | |||||||||||||||||||||||||||||||
Debt securities | 79 | — | — | 79 | 72 | — | — | 72 | |||||||||||||||||||||||||||||||||||||||
Insurance contracts | — | — | 110 | 110 | — | — | 39 | 39 | |||||||||||||||||||||||||||||||||||||||
Other investments | — | 17 | — | 17 | — | 16 | — | 16 | |||||||||||||||||||||||||||||||||||||||
Cash | 2 | — | — | 2 | 2 | — | — | 2 | |||||||||||||||||||||||||||||||||||||||
Total assets at fair value | $ | 218 | $ | 17 | $ | 110 | 345 | $ | 177 | $ | 16 | $ | 39 | 232 | |||||||||||||||||||||||||||||||||
Assets measured at net asset value | 146 | 199 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 491 | $ | 431 |
2021 | 2020 | ||||||||||||||||
(In millions) | |||||||||||||||||
Balance, beginning of year | $ | 39 | $ | 36 | |||||||||||||
Purchases, sales, settlements, net | 72 | 1 | |||||||||||||||
Currency impact | (1) | 2 | |||||||||||||||
Balance, end of year | $ | 110 | $ | 39 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions, except percentages) | |||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||
Service cost | $ | 15 | $ | 13 | $ | 11 | |||||||||||
Interest cost | 8 | 8 | 10 | ||||||||||||||
Expected return on plan assets | (21) | (22) | (20) | ||||||||||||||
Amortization of actuarial loss and prior service credit | 14 | 12 | 7 | ||||||||||||||
Net periodic benefit cost | $ | 16 | $ | 11 | $ | 8 | |||||||||||
Weighted average assumptions | |||||||||||||||||
Discount rate | 1.18 | % | 1.23 | % | 1.98 | % | |||||||||||
Expected long-term return on assets | 4.80 | % | 5.10 | % | 5.40 | % | |||||||||||
Rate of compensation increase | 2.74 | % | 2.69 | % | 2.74 | % |
Benefit Payments | |||||
(In millions) | |||||
2022 | $ | 11 | |||
2023 | 13 | ||||
2024 | 15 | ||||
2025 | 14 | ||||
2026 | 15 | ||||
2027-2031 | 99 | ||||
Total | $ | 167 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
U.S. | $ | 512 | $ | 92 | $ | 363 | |||||||||||
Foreign | 6,259 | 4,074 | 2,906 | ||||||||||||||
$ | 6,771 | $ | 4,166 | $ | 3,269 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Current: | |||||||||||||||||
U.S. | $ | 462 | $ | 196 | $ | 240 | |||||||||||
Foreign | 344 | 263 | 260 | ||||||||||||||
State | 17 | 20 | 12 | ||||||||||||||
823 | 479 | 512 | |||||||||||||||
Deferred: | |||||||||||||||||
U.S. | (3) | (3) | 8 | ||||||||||||||
Foreign | 67 | 76 | 46 | ||||||||||||||
State | (4) | (5) | (3) | ||||||||||||||
60 | 68 | 51 | |||||||||||||||
$ | 883 | $ | 547 | $ | 563 |
2021 | 2020 | 2019 | |||||||||||||||
Tax provision at U.S. statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Effect of foreign operations taxed at various rates | (7.0) | (5.9) | (5.9) | ||||||||||||||
Changes in prior years’ unrecognized tax benefits
|
0.2 | 0.5 | 2.6 | ||||||||||||||
Resolutions of prior years’ income tax filings
|
(0.1) | (1.0) | (0.1) | ||||||||||||||
Research and other tax credits | (0.9) | (1.3) | (1.1) | ||||||||||||||
Other | (0.2) | (0.2) | 0.7 | ||||||||||||||
13.0 | % | 13.1 | % | 17.2 | % |
October 31,
2021 |
October 25,
2020 |
||||||||||
(In millions) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for doubtful accounts | $ | 4 | $ | 4 | |||||||
Inventory reserves and basis difference | 112 | 119 | |||||||||
Installation and warranty reserves | 29 | 14 | |||||||||
Intangible assets | 1,281 | 1,355 | |||||||||
Accrued liabilities | 31 | 24 | |||||||||
Deferred revenue | 25 | 32 | |||||||||
Tax credits | 369 | 326 | |||||||||
Deferred compensation | 133 | 130 | |||||||||
Share-based compensation | 34 | 30 | |||||||||
Lease liability | 61 | 55 | |||||||||
Other | 89 | 96 | |||||||||
Gross deferred tax assets | 2,168 | 2,185 | |||||||||
Valuation allowance | (361) | (314) | |||||||||
Total deferred tax assets | 1,807 | 1,871 | |||||||||
Deferred tax liabilities: | |||||||||||
Fixed assets | (93) | (76) | |||||||||
Right of use assets | (62) | (54) | |||||||||
Undistributed foreign earnings | (37) | (39) | |||||||||
Total deferred tax liabilities | (192) | (169) | |||||||||
Net deferred tax assets | $ | 1,615 | $ | 1,702 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 314 | $ | 257 | $ | 230 | |||||||||||
Increases | 47 | 57 | 27 | ||||||||||||||
Decreases | — | — | — | ||||||||||||||
Ending balance | $ | 361 | $ | 314 | $ | 257 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance of gross unrecognized tax benefits | $ | 496 | $ | 845 | $ | 374 | |||||||||||
Settlements with tax authorities | — | (446) | (1) | ||||||||||||||
Lapses of statutes of limitation | (4) | (3) | (2) | ||||||||||||||
Increases in tax positions for current year | 26 | 44 | 33 | ||||||||||||||
Increases in tax positions for prior years | 23 | 91 | 441 | ||||||||||||||
Decreases in tax positions for prior years | (4) | (35) | — | ||||||||||||||
Ending balance of gross unrecognized tax benefits | $ | 537 | $ | 496 | $ | 845 |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Beginning balance | $ | 201 | $ | 196 | $ | 208 | |||||||||||
Provisions for warranty | 223 | 165 | 148 | ||||||||||||||
Changes in reserves related to preexisting warranty | 9 | 2 | 7 | ||||||||||||||
Consumption of reserves | (191) | (162) | (167) | ||||||||||||||
Ending balance | $ | 242 | $ | 201 | $ | 196 |
Net Sales |
Operating
Income (Loss) |
Depreciation/
Amortization |
Capital
Expenditures |
Accounts Receivable | Inventories | ||||||||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||||||||||||
2021:
|
|||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 16,286 | $ | 6,311 | $ | 194 | $ | 228 | $ | 3,886 | $ | 2,586 | |||||||||||||||||||||||||||||||||||
Applied Global Services | 5,013 | 1,508 | 32 | 29 | 922 | 1,561 | |||||||||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 1,634 | 314 | 27 | 32 | 207 | 153 | |||||||||||||||||||||||||||||||||||||||||
Corporate and Other | 130 | (1,244) | 141 | 379 | (62) | 9 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,063 | $ | 6,889 | $ | 394 | $ | 668 | $ | 4,953 | $ | 4,309 | |||||||||||||||||||||||||||||||||||
2020:
|
|||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 11,367 | $ | 3,714 | $ | 219 | $ | 226 | $ | 2,061 | $ | 2,139 | |||||||||||||||||||||||||||||||||||
Applied Global Services | 4,155 | 1,127 | 34 | 30 | 764 | 1,545 | |||||||||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 1,607 | 291 | 31 | 29 | 179 | 195 | |||||||||||||||||||||||||||||||||||||||||
Corporate and Other | 73 | (767) | 92 | 137 | (41) | 25 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,202 | $ | 4,365 | $ | 376 | $ | 422 | $ | 2,963 | $ | 3,904 | |||||||||||||||||||||||||||||||||||
2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor Systems | $ | 9,027 | $ | 2,464 | $ | 202 | $ | 168 | $ | 1,543 | $ | 1,703 | |||||||||||||||||||||||||||||||||||
Applied Global Services | 3,854 | 1,101 | 25 | 47 | 790 | 1,535 | |||||||||||||||||||||||||||||||||||||||||
Display and Adjacent Markets | 1,651 | 294 | 22 | 43 | 246 | 214 | |||||||||||||||||||||||||||||||||||||||||
Corporate and Other | 76 | (509) | 114 | 183 | (46) | 22 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,608 | $ | 3,350 | $ | 363 | $ | 441 | $ | 2,533 | $ | 3,474 |
2021 | 2020 | 2019 | |||||||||||||||
Foundry, logic and other | 60 | % | 59 | % | 52 | % | |||||||||||
Dynamic random-access memory (DRAM) | 19 | % | 20 | % | 22 | % | |||||||||||
Flash memory | 21 | % | 21 | % | 26 | % | |||||||||||
100 | % | 100 | % | 100 | % |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Unallocated net sales | $ | 130 | $ | 73 | $ | 76 | |||||||||||
Unallocated cost of products sold and expenses | (725) | (533) | (322) | ||||||||||||||
Share-based compensation | (346) | (307) | (263) | ||||||||||||||
Severance and related charges | (149) | — | — | ||||||||||||||
Deal termination fee | (154) | — | — | ||||||||||||||
Total | $ | (1,244) | $ | (767) | $ | (509) |
2021 | 2020 | 2019 | |||||||||||||||
(In millions) | |||||||||||||||||
Net sales: | |||||||||||||||||
United States | $ | 2,038 | $ | 1,619 | $ | 1,871 | |||||||||||
China | 7,535 | 5,456 | 4,277 | ||||||||||||||
Korea | 5,012 | 3,031 | 1,929 | ||||||||||||||
Taiwan | 4,742 | 3,953 | 2,965 | ||||||||||||||
Japan | 1,962 | 1,996 | 2,198 | ||||||||||||||
Europe | 1,097 | 736 | 820 | ||||||||||||||
Southeast Asia | 677 | 411 | 548 | ||||||||||||||
Total outside United States | 21,025 | 15,583 | 12,737 | ||||||||||||||
Consolidated total | $ | 23,063 | $ | 17,202 | $ | 14,608 |
October 31,
2021 |
October 25,
2020 |
||||||||||||||||
(In millions) | |||||||||||||||||
Long-lived assets: | |||||||||||||||||
United States | $ | 1,965 | $ | 1,628 | |||||||||||||
China | 10 | 14 | |||||||||||||||
Korea | 16 | 21 | |||||||||||||||
Taiwan | 62 | 59 | |||||||||||||||
Japan | 9 | 16 | |||||||||||||||
Europe | 12 | 21 | |||||||||||||||
Southeast Asia | 13 | 18 | |||||||||||||||
Total outside United States | 122 | 149 | |||||||||||||||
Consolidated total | $ | 2,087 | $ | 1,777 |
2021 | 2020 | 2019 | |||||||||||||||
Samsung Electronics Co., Ltd. | 20 | % | 18 | % | * | ||||||||||||
Taiwan Semiconductor Manufacturing Company Limited | 15 | % | 18 | % | 14 | % | |||||||||||
Intel Corporation | * | * | 12 | % | |||||||||||||
Incorporated by Reference | |||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | ||||||||||||
8-K | 000-06920 | 2.1 | 1/4/2021 | ||||||||||||||
8-K | 000-06920 | 3.1 | 3/16/2020 | ||||||||||||||
8-K | 000-06920 | 3.1 | 12/8/2021 | ||||||||||||||
8-K | 000-06920 | 4.1 | 6/10/2011 | ||||||||||||||
8-K | 000-06920 | 4.2 | 6/10/2011 | ||||||||||||||
8-K | 000-06920 | 4.1 | 9/24/2015 | ||||||||||||||
8-K | 000-06920 | 4.1 | 3/31/2017 | ||||||||||||||
8-K | 000-06920 | 4.1 | 5/29/2020 | ||||||||||||||
10-K | 000-06920 | 4.6 | 12/11/2020 | ||||||||||||||
10-K | 000-06920 | 10.44 | 1/31/2000 | ||||||||||||||
10-K | 000-06920 | 10.46 | 1/31/2000 | ||||||||||||||
S-8 | 333-45011 | 4.1 | 1/27/1998 | ||||||||||||||
8-K | 000-06920 | 10.46 | 10/31/2005 | ||||||||||||||
10-Q | 000-06920 | 10.58 | 3/3/2009 | ||||||||||||||
10-K | 000-06920 | 10.48 | 12/12/2008 | ||||||||||||||
10-K | 000-06920 | 10.49 | 12/12/2008 | ||||||||||||||
10-Q | 000-06920 | 10.3 | 5/27/2021 | ||||||||||||||
10-Q | 000-06920 | 10.4 | 5/27/2021 | ||||||||||||||
10-Q | 000-06920 | 10.3 | 2/25/2021 | ||||||||||||||
10-Q | 000-06920 | 10.3 | 8/23/2012 |
Incorporated by Reference | |||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | ||||||||||||
8-K | 000-06920 | 10.2 | 3/16/2021 | ||||||||||||||
10-Q | 000-06920 | 10.2 | 8/22/2013 | ||||||||||||||
10-Q | 000-06920 | 10.4 | 8/22/2013 | ||||||||||||||
10-Q | 000-06920 | 10.2 | 2/20/2014 | ||||||||||||||
10-K | 000-06920 | 10.49 | 12/17/2014 | ||||||||||||||
10-Q | 000-06920 | 10.4 | 2/19/2015 | ||||||||||||||
Applied Materials, Inc. 2016 Deferred Compensation Plan, as amended and restated on January 1, 2021
|
10-Q | 000-06920 | 10.2 | 2/25/2021 | |||||||||||||
8-K | 000-06920 | 10.1 | 3/16/2021 | ||||||||||||||
10-Q | 000-06920 | 10.2 | 5/25/2017 | ||||||||||||||
10-Q | 000-06920 | 10.5 | 5/27/2021 | ||||||||||||||
10-Q | 000-06920 | 10.6 | 5/27/2021 | ||||||||||||||
8-K | 000-06920 | 2.1 | 7/1/2019 | ||||||||||||||
8-K | 000-06920 | 10.1 | 8/21/2019 | ||||||||||||||
8-K | 000-06920 | 10.1 | 2/21/2020 | ||||||||||||||
8-K | 000-06920 | 10.1 | 7/9/2020 | ||||||||||||||
8-K | 000-06920 | 10.1 | 1/4/2021 | ||||||||||||||
101.INS | XBRL Instance Document‡ |
Incorporated by Reference | |||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document‡ | ||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document‡ | ||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document‡ | ||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document‡ | ||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document‡ | ||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
* | Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3). | ||||
† | Filed herewith. | ||||
‡ | Furnished herewith. |
APPLIED MATERIALS, INC. | |||||
By: |
/S/ GARY E. DICKERSON
|
||||
Gary E. Dickerson | |||||
President, Chief Executive Officer |
Title | Date | |||||||
/S/ GARY E. DICKERSON
|
President, Chief Executive Officer and Director (Principal Executive Officer) | December 17, 2021 | ||||||
Gary E. Dickerson | ||||||||
/S/ ROBERT J. HALLIDAY
|
Senior Vice President, Chief Financial Officer
(Principal Financial Officer) |
December 17, 2021 | ||||||
Robert J. Halliday | ||||||||
/S/ CHARLES W. READ
|
Corporate Vice President,
Corporate Controller and Chief Accounting Officer (Principal Accounting Officer) |
December 17, 2021 | ||||||
Charles W. Read | ||||||||
/S/ THOMAS J. IANNOTTI
|
||||||||
Thomas J. Iannotti | Chairman of the Board | December 17, 2021 | ||||||
/S/ RANI BORKAR
|
||||||||
Rani Borkar | Director | December 17, 2021 | ||||||
/S/ JUDY BRUNER
|
||||||||
Judy Bruner | Director | December 17, 2021 | ||||||
/S/ XUN CHEN
|
||||||||
Xun Chen | Director | December 17, 2021 | ||||||
/S/ AART J. DE GEUS
|
||||||||
Aart J. de Geus | Director | December 17, 2021 | ||||||
/S/ ALEXANDER A. KARSNER
|
||||||||
Alexander A. Karsner | Director | December 17, 2021 | ||||||
/S/ ADRIANNA C. MA
|
||||||||
Adrianna C. Ma | Director | December 17, 2021 | ||||||
/s/ YVONNE MCGILL | ||||||||
Yvonne McGill | Director | December 17, 2021 | ||||||
/s/ SCOTT A. MCGREGOR | ||||||||
Scott A. McGregor | Director | December 17, 2021 |
1 Year Applied Materials Chart |
1 Month Applied Materials Chart |
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