APPLIED MATERIALS INC /DE00000069512024FYfalsehttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2024#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2024#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2024#ResearchAndDevelopmentExpensehttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#AccountsPayableAndAccruedLiabilitiesCurrent http://fasb.org/us-gaap/2024#DeferredIncomeTaxesAndOtherAssetsNoncurrentP3Yiso4217:USDxbrli:sharesiso4217:USDxbrli:sharesxbrli:pureamat:Planamat:segment00000069512023-10-302024-10-2700000069512024-04-2800000069512024-12-0600000069512024-07-292024-10-2700000069512022-10-312023-10-2900000069512021-11-012022-10-3000000069512024-10-2700000069512023-10-290000006951us-gaap:CommonStockMember2021-10-310000006951us-gaap:AdditionalPaidInCapitalMember2021-10-310000006951us-gaap:RetainedEarningsMember2021-10-310000006951us-gaap:TreasuryStockCommonMember2021-10-310000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-3100000069512021-10-310000006951us-gaap:RetainedEarningsMember2021-11-012022-10-300000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-012022-10-300000006951us-gaap:AdditionalPaidInCapitalMember2021-11-012022-10-300000006951us-gaap:CommonStockMember2021-11-012022-10-300000006951us-gaap:TreasuryStockCommonMember2021-11-012022-10-300000006951us-gaap:CommonStockMember2022-10-300000006951us-gaap:AdditionalPaidInCapitalMember2022-10-300000006951us-gaap:RetainedEarningsMember2022-10-300000006951us-gaap:TreasuryStockCommonMember2022-10-300000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-3000000069512022-10-300000006951us-gaap:RetainedEarningsMember2022-10-312023-10-290000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-312023-10-290000006951us-gaap:AdditionalPaidInCapitalMember2022-10-312023-10-290000006951us-gaap:CommonStockMember2022-10-312023-10-290000006951us-gaap:TreasuryStockCommonMember2022-10-312023-10-290000006951us-gaap:CommonStockMember2023-10-290000006951us-gaap:AdditionalPaidInCapitalMember2023-10-290000006951us-gaap:RetainedEarningsMember2023-10-290000006951us-gaap:TreasuryStockCommonMember2023-10-290000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-290000006951us-gaap:RetainedEarningsMember2023-10-302024-10-270000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-302024-10-270000006951us-gaap:AdditionalPaidInCapitalMember2023-10-302024-10-270000006951us-gaap:CommonStockMember2023-10-302024-10-270000006951us-gaap:TreasuryStockCommonMember2023-10-302024-10-270000006951us-gaap:CommonStockMember2024-10-270000006951us-gaap:AdditionalPaidInCapitalMember2024-10-270000006951us-gaap:RetainedEarningsMember2024-10-270000006951us-gaap:TreasuryStockCommonMember2024-10-270000006951us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-10-270000006951srt:MinimumMemberus-gaap:BuildingAndBuildingImprovementsMember2024-10-270000006951srt:MaximumMemberus-gaap:BuildingAndBuildingImprovementsMember2024-10-270000006951us-gaap:BuildingAndBuildingImprovementsMember2024-10-270000006951srt:MinimumMemberus-gaap:EquipmentMember2024-10-270000006951srt:MaximumMemberus-gaap:EquipmentMember2024-10-270000006951srt:MinimumMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-10-270000006951srt:MaximumMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-10-270000006951srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2024-10-270000006951srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2024-10-270000006951us-gaap:LandImprovementsMember2023-10-302024-10-270000006951us-gaap:LeaseholdImprovementsMember2023-10-302024-10-270000006951us-gaap:ServiceLifeMember2023-10-302024-10-270000006951srt:MinimumMember2024-10-270000006951srt:MaximumMember2024-10-270000006951us-gaap:MoneyMarketFundsMember2024-10-270000006951amat:BankCertificatesOfDepositAndTimeDepositsMember2024-10-270000006951us-gaap:USTreasuryAndGovernmentMember2024-10-270000006951us-gaap:MunicipalNotesMember2024-10-270000006951amat:CommercialPaperCorporateBondsAndMediumTermNotesMember2024-10-270000006951amat:BankCertificatesOfDepositAndTimeDepositsMember2024-10-270000006951us-gaap:USTreasuryAndGovernmentMember2024-10-270000006951us-gaap:ForeignGovernmentDebtSecuritiesMember2024-10-270000006951us-gaap:USStatesAndPoliticalSubdivisionsMember2024-10-270000006951amat:CommercialPaperCorporateBondsAndMediumTermNotesMember2024-10-270000006951us-gaap:AssetBackedSecuritiesMember2024-10-270000006951us-gaap:FixedIncomeSecuritiesMember2024-10-270000006951amat:PubliclyTradedEquitySecuritiesMember2024-10-270000006951amat:EquityInvestmentsInPrivatelyHeldCompaniesMember2024-10-270000006951us-gaap:MoneyMarketFundsMember2023-10-290000006951us-gaap:MunicipalNotesMember2023-10-290000006951amat:CommercialPaperCorporateBondsAndMediumTermNotesMember2023-10-290000006951amat:BankCertificatesOfDepositAndTimeDepositsMember2023-10-290000006951us-gaap:USTreasuryAndGovernmentMember2023-10-290000006951us-gaap:ForeignGovernmentDebtSecuritiesMember2023-10-290000006951us-gaap:USStatesAndPoliticalSubdivisionsMember2023-10-290000006951amat:CommercialPaperCorporateBondsAndMediumTermNotesMember2023-10-290000006951us-gaap:AssetBackedSecuritiesMember2023-10-290000006951us-gaap:FixedIncomeSecuritiesMember2023-10-290000006951amat:PubliclyTradedEquitySecuritiesMember2023-10-290000006951amat:EquityInvestmentsInPrivatelyHeldCompaniesMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberamat:BankCertificatesOfDepositAndTimeDepositsMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberamat:CommercialPaperCorporateBondsAndMediumTermNotesMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMember2023-10-290000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2024-10-270000006951us-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2024-10-270000006951us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2023-10-290000006951us-gaap:FairValueMeasurementsRecurringMemberamat:PubliclyTradedEquitySecuritiesMember2023-10-290000006951us-gaap:MoneyMarketFundsMember2024-10-270000006951us-gaap:MoneyMarketFundsMember2023-10-290000006951us-gaap:SeniorNotesMember2024-10-270000006951us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-10-270000006951us-gaap:SeniorNotesMember2023-10-290000006951us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-10-290000006951us-gaap:ForeignExchangeContractMember2024-10-270000006951us-gaap:ForeignExchangeContractMember2023-10-290000006951us-gaap:LongTermContractWithCustomerMember2024-10-270000006951us-gaap:LongTermContractWithCustomerMember2024-10-282024-10-270000006951us-gaap:LongTermContractWithCustomerMember2025-10-272024-10-270000006951us-gaap:LandAndLandImprovementsMember2024-10-270000006951us-gaap:LandAndLandImprovementsMember2023-10-290000006951us-gaap:BuildingAndBuildingImprovementsMember2023-10-290000006951srt:MinimumMemberus-gaap:MachineryAndEquipmentMember2024-10-270000006951srt:MaximumMemberus-gaap:MachineryAndEquipmentMember2024-10-270000006951us-gaap:MachineryAndEquipmentMember2024-10-270000006951us-gaap:MachineryAndEquipmentMember2023-10-290000006951us-gaap:FurnitureAndFixturesMember2024-10-270000006951us-gaap:FurnitureAndFixturesMember2023-10-290000006951us-gaap:ConstructionInProgressMember2024-10-270000006951us-gaap:ConstructionInProgressMember2023-10-290000006951us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2020-02-012020-02-290000006951us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2020-02-290000006951us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2024-10-270000006951us-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2023-10-290000006951us-gaap:ForeignLineOfCreditMember2024-10-270000006951us-gaap:ForeignLineOfCreditMember2023-10-290000006951us-gaap:CommercialPaperMember2024-10-270000006951us-gaap:CommercialPaperMember2023-10-290000006951amat:FourPointEightZeroPercentUnsecuredSeniorNotesDue2029InterestPayableJune15December15Memberus-gaap:SeniorNotesMember2024-06-300000006951amat:ThreePointNineZeroPercentUnsecuredSeniorNotesDue2025InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:ThreePointNineZeroPercentUnsecuredSeniorNotesDue2025InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:ThreePointThreeZeroZeroPercentUnsecuredSeniorNotesDue2027InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:ThreePointThreeZeroZeroPercentUnsecuredSeniorNotesDue2027InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:FourPointEightZeroPercentUnsecuredSeniorNotesDue2029InterestPayableJune15December15Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:FourPointEightZeroPercentUnsecuredSeniorNotesDue2029InterestPayableJune15December15Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:OnePointSeventyFivePercentUnsecuredSeniorNotesDue2030InterestPayableJune1AndDecember1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:OnePointSeventyFivePercentUnsecuredSeniorNotesDue2030InterestPayableJune1AndDecember1Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:FivePointOneZeroZeroPercentUnsecuredSeniorNotesDue2035InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:FivePointOneZeroZeroPercentUnsecuredSeniorNotesDue2035InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:FivePointEightFiveZeroPercentUnsecuredSeniorNotesDue2041InterestPayableJune15AndDecember15Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:FivePointEightFiveZeroPercentUnsecuredSeniorNotesDue2041InterestPayableJune15AndDecember15Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:FourPointThreeFiveZeroPercentUnsecuredSeniorNotesDue2047InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:FourPointThreeFiveZeroPercentUnsecuredSeniorNotesDue2047InterestPayableApril1AndOctober1Memberus-gaap:SeniorNotesMember2023-10-290000006951amat:TwoPointSeventyFivePercentUnsecuredSeniorNotesDue2050InterestPayableJune1AndDecember1Memberus-gaap:SeniorNotesMember2024-10-270000006951amat:TwoPointSeventyFivePercentUnsecuredSeniorNotesDue2050InterestPayableJune1AndDecember1Memberus-gaap:SeniorNotesMember2023-10-290000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-310000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-10-310000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-310000006951us-gaap:AccumulatedTranslationAdjustmentMember2021-10-310000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-11-012022-10-300000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-11-012022-10-300000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-11-012022-10-300000006951us-gaap:AccumulatedTranslationAdjustmentMember2021-11-012022-10-300000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-10-300000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-300000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-300000006951us-gaap:AccumulatedTranslationAdjustmentMember2022-10-300000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-10-312023-10-290000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-312023-10-290000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-312023-10-290000006951us-gaap:AccumulatedTranslationAdjustmentMember2022-10-312023-10-290000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-10-290000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-290000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-10-290000006951us-gaap:AccumulatedTranslationAdjustmentMember2023-10-290000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-10-302024-10-270000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-302024-10-270000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-10-302024-10-270000006951us-gaap:AccumulatedTranslationAdjustmentMember2023-10-302024-10-270000006951us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-10-270000006951us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-10-270000006951us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-10-270000006951us-gaap:AccumulatedTranslationAdjustmentMember2024-10-2700000069512023-03-3100000069512022-03-3100000069512023-10-302024-01-2800000069512024-01-292024-04-2800000069512024-04-292024-07-2800000069512022-10-312023-01-2900000069512023-01-302023-04-3000000069512023-07-312023-10-2900000069512023-05-012023-07-3000000069512021-11-012022-01-3000000069512022-05-022022-07-3100000069512022-01-312022-05-0100000069512022-08-012022-10-300000006951us-gaap:CostOfSalesMember2023-10-302024-10-270000006951us-gaap:CostOfSalesMember2022-10-312023-10-290000006951us-gaap:CostOfSalesMember2021-11-012022-10-300000006951us-gaap:ResearchAndDevelopmentExpenseMember2023-10-302024-10-270000006951us-gaap:ResearchAndDevelopmentExpenseMember2022-10-312023-10-290000006951us-gaap:ResearchAndDevelopmentExpenseMember2021-11-012022-10-300000006951us-gaap:SellingAndMarketingExpenseMember2023-10-302024-10-270000006951us-gaap:SellingAndMarketingExpenseMember2022-10-312023-10-290000006951us-gaap:SellingAndMarketingExpenseMember2021-11-012022-10-300000006951us-gaap:GeneralAndAdministrativeExpenseMember2023-10-302024-10-270000006951us-gaap:GeneralAndAdministrativeExpenseMember2022-10-312023-10-290000006951us-gaap:GeneralAndAdministrativeExpenseMember2021-11-012022-10-300000006951us-gaap:EmployeeStockMember2023-10-302024-10-270000006951us-gaap:EmployeeStockMember2024-10-270000006951amat:EmployeeStockIncentivePlanMember2024-10-270000006951amat:EmployeeStockPurchasePlanMember2024-10-270000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMembersrt:MinimumMember2023-10-302024-10-270000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMembersrt:MaximumMember2023-10-302024-10-270000006951us-gaap:PerformanceSharesMember2023-10-302024-10-270000006951us-gaap:PerformanceSharesMembersrt:MinimumMember2023-10-302024-10-270000006951us-gaap:PerformanceSharesMembersrt:MaximumMember2023-10-302024-10-270000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MinimumMember2023-10-302024-10-270000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MaximumMember2023-10-302024-10-270000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MinimumMember2022-10-312023-10-290000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MaximumMember2022-10-312023-10-290000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MinimumMember2021-11-012022-10-300000006951amat:RSUsAndPerformanceSharesSubjectToPerformanceGoalsMembersrt:MaximumMember2021-11-012022-10-300000006951amat:PerformanceSharesSubjectToMarketGoalsMembersrt:MinimumMember2023-10-302024-10-270000006951amat:PerformanceSharesSubjectToMarketGoalsMembersrt:MaximumMember2023-10-302024-10-270000006951amat:PerformanceSharesSubjectToMarketGoalsMember2022-10-312023-10-290000006951amat:PerformanceSharesSubjectToMarketGoalsMember2021-11-012022-10-300000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMember2023-10-290000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMember2023-10-302024-10-270000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMember2024-10-270000006951us-gaap:PerformanceSharesMember2024-10-270000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMember2022-10-312023-10-290000006951amat:RestrictedStockUnitsRestrictedStockPerformanceSharesUnitsAndPerformanceUnitsMember2021-11-012022-10-300000006951us-gaap:EmployeeStockMemberamat:EmployeeStockPurchasePlanMember2023-10-302024-10-270000006951amat:EmployeeStockPurchasePlanMember2023-10-302024-10-270000006951amat:EmployeeStockPurchasePlanMember2022-10-312023-10-290000006951amat:EmployeeStockPurchasePlanMember2021-11-012022-10-300000006951us-gaap:DeferredCompensationExcludingShareBasedPaymentsAndRetirementBenefitsMember2024-10-270000006951us-gaap:DeferredCompensationExcludingShareBasedPaymentsAndRetirementBenefitsMember2023-10-290000006951country:SG2023-10-302024-10-270000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-10-290000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2022-10-300000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-10-310000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2023-10-302024-10-270000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2022-10-312023-10-290000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2021-11-012022-10-300000006951us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember2024-10-270000006951us-gaap:ResearchMemberus-gaap:StateAndLocalJurisdictionMember2024-10-270000006951amat:ResearchCarriedOverUntilExhaustedMemberus-gaap:StateAndLocalJurisdictionMember2024-10-270000006951amat:ResearchCarriedOverTheNextFifteenYearsMemberus-gaap:StateAndLocalJurisdictionMember2024-10-270000006951amat:ResearchCarriedOverTheNextFifteenYearsMemberus-gaap:StateAndLocalJurisdictionMember2023-10-302024-10-270000006951us-gaap:OtherNoncurrentLiabilitiesMember2024-10-270000006951us-gaap:OtherNoncurrentLiabilitiesMember2023-10-290000006951us-gaap:OtherNoncurrentLiabilitiesMember2022-10-300000006951us-gaap:ForeignCountryMember2024-10-270000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2023-10-302024-10-270000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2024-10-270000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2023-10-302024-10-270000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2024-10-270000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2023-10-302024-10-270000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2024-10-270000006951amat:CorporateAndReconcilingItemsMember2023-10-302024-10-270000006951amat:CorporateAndReconcilingItemsMember2024-10-270000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2022-10-312023-10-290000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2023-10-290000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2022-10-312023-10-290000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2023-10-290000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2022-10-312023-10-290000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2023-10-290000006951amat:CorporateAndReconcilingItemsMember2022-10-312023-10-290000006951amat:CorporateAndReconcilingItemsMember2023-10-290000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2021-11-012022-10-300000006951us-gaap:OperatingSegmentsMemberamat:SemiconductorSystemsMember2022-10-300000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2021-11-012022-10-300000006951us-gaap:OperatingSegmentsMemberamat:AppliedGlobalServicesMember2022-10-300000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2021-11-012022-10-300000006951us-gaap:OperatingSegmentsMemberamat:DisplayMember2022-10-300000006951amat:CorporateAndReconcilingItemsMember2021-11-012022-10-300000006951amat:CorporateAndReconcilingItemsMember2022-10-300000006951us-gaap:ProductConcentrationRiskMemberamat:FoundryLogicAndOtherMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2023-10-302024-10-270000006951us-gaap:ProductConcentrationRiskMemberamat:FoundryLogicAndOtherMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2022-10-312023-10-290000006951us-gaap:ProductConcentrationRiskMemberamat:FoundryLogicAndOtherMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2021-11-012022-10-300000006951us-gaap:ProductConcentrationRiskMemberamat:DynamicRandomAccessMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2023-10-302024-10-270000006951us-gaap:ProductConcentrationRiskMemberamat:DynamicRandomAccessMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2022-10-312023-10-290000006951us-gaap:ProductConcentrationRiskMemberamat:DynamicRandomAccessMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2021-11-012022-10-300000006951us-gaap:ProductConcentrationRiskMemberamat:FlashMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2023-10-302024-10-270000006951us-gaap:ProductConcentrationRiskMemberamat:FlashMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2022-10-312023-10-290000006951us-gaap:ProductConcentrationRiskMemberamat:FlashMemoryMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2021-11-012022-10-300000006951us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2023-10-302024-10-270000006951us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2022-10-312023-10-290000006951us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberamat:SemiconductorSystemsMember2021-11-012022-10-300000006951country:US2023-10-302024-10-270000006951country:US2022-10-312023-10-290000006951country:US2021-11-012022-10-300000006951country:CN2023-10-302024-10-270000006951country:CN2022-10-312023-10-290000006951country:CN2021-11-012022-10-300000006951country:KR2023-10-302024-10-270000006951country:KR2022-10-312023-10-290000006951country:KR2021-11-012022-10-300000006951country:TW2023-10-302024-10-270000006951country:TW2022-10-312023-10-290000006951country:TW2021-11-012022-10-300000006951country:JP2023-10-302024-10-270000006951country:JP2022-10-312023-10-290000006951country:JP2021-11-012022-10-300000006951srt:EuropeMember2023-10-302024-10-270000006951srt:EuropeMember2022-10-312023-10-290000006951srt:EuropeMember2021-11-012022-10-300000006951amat:SoutheastAsiaMember2023-10-302024-10-270000006951amat:SoutheastAsiaMember2022-10-312023-10-290000006951amat:SoutheastAsiaMember2021-11-012022-10-300000006951amat:OutsideNorthAmericaMember2023-10-302024-10-270000006951amat:OutsideNorthAmericaMember2022-10-312023-10-290000006951amat:OutsideNorthAmericaMember2021-11-012022-10-300000006951country:US2024-10-270000006951country:US2023-10-290000006951country:CN2024-10-270000006951country:CN2023-10-290000006951country:KR2024-10-270000006951country:KR2023-10-290000006951country:TW2024-10-270000006951country:TW2023-10-290000006951country:JP2024-10-270000006951country:JP2023-10-290000006951srt:EuropeMember2024-10-270000006951srt:EuropeMember2023-10-290000006951amat:SoutheastAsiaMember2024-10-270000006951amat:SoutheastAsiaMember2023-10-290000006951amat:OutsideNorthAmericaMember2024-10-270000006951amat:OutsideNorthAmericaMember2023-10-290000006951amat:SamsungElectronicsCo.Ltd.Memberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-10-302024-10-270000006951amat:SamsungElectronicsCo.Ltd.Memberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-10-312023-10-290000006951amat:SamsungElectronicsCo.Ltd.Memberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-11-012022-10-300000006951amat:TaiwanSemiconductorManufacturingCompanyLimitedMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-10-302024-10-270000006951amat:TaiwanSemiconductorManufacturingCompanyLimitedMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-10-312023-10-290000006951amat:TaiwanSemiconductorManufacturingCompanyLimitedMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-11-012022-10-300000006951amat:IntelCorporationMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-11-012022-10-30
目次

アメリカ合衆国証券取引委員会
ワシントンD.C. 20549
フォーム10-K
(1つ選択してください)
1934年証券取引法第13条または15(d)に基づく年次報告書
会計年度の終了日 2023年10月27日, 2024
または
1934年の証券取引法第13条または15(d)に基づく移行報告
の移行期間について
委託ファイル番号 000-06920
logo.jpg
アプライド マテリアルズ, Inc.
(登記名の正確な名称)
                                                     デラウェア94-1655526
               (法人または組織の州またはその他の管轄区域)(I.R.S.雇用者識別番号)
3050 バワーズアベニュー, P.O. ボックス 58039, サンタクララ, カリフォルニア 95052-8039
(主要な経営事務所の住所) (郵便番号)
登録者の電話番号(市外局番を含む): (408727-5555
法律の第12(b)条に基づいて登録された証券:
各クラスのタイトル取引のシンボル登録されている取引所の名称
普通株式、額面価値 $.01 シェアあたりアプライド マテリアルズナスダック証券市場LLC
法律第12(g)条に基づき登録された証券: なし
登録者が証券法第405条で定義される有名なシーズンド発行者である場合は、チェックマークで示してください。 はい ☑   いいえ ☐
登録者が法第13条または第15(d)条に基づいて報告書を提出する必要がない場合は、チェックマークを付けて示してください。 はい ☐   いいえ  ☑
申請者が過去12ヶ月(または申請者がその報告書を提出する必要があった短い期間)に証券取引法第13条または15(d)に基づいて提出が必要なすべての報告書を提出したかどうかをチェックマークで示し、過去90日間にその提出要求の対象であったかどうかを示してください。はい☑   いいえ ☐
登録者が過去12か月間(または登録者が提出する必要のあった短い期間)に、規則405に従って提出する必要のあるすべてのインタラクティブデータファイルを電子的に提出したかどうかをチェックマークで示してください。はい☑   いいえ ☐
登録者が大規模加速者、加速者、非加速者、より小さい報告会社または新興成長会社であるかどうかをチェックマークで示してください。「大規模加速者」、「加速者」、「より小さい報告会社」および「新興成長会社」の定義については、取引所法の第120億2条を参照してください。
大規模加速 filer 
加速 filer
より小さい報告会社
非加速報告者
新興成長企業
新興成長企業の場合は、註記欄にチェックマークを付けてください。申請者は、証券取引法第13(a)条に基づく新しいまたは改訂された財務会計基準の遵守のために延長された移行期間を使用しないことを選択しましたか。 ☐
登録者が、提出した監査報告書を作成または発行した登録公共会計事務所による、サーベンス・オクスリー法(15 U.S.C.7262(b))の第404(b)条に基づく財務報告に対する内部統制の有効性についての経営陣の評価に関する報告書とその証明を提出したかを、チェックマークで示してください。
もし有価証券が法第12(b)条に基づいて登録されている場合、提出された書類に含まれる registrant の財務諸表が以前発行された財務諸表の誤りの修正を反映しているかどうかをチェックマークで示してください。
関連する回収期間中に登録者の役員が受け取ったインセンティブベースの報酬について、回収分析が必要だった再表現であるかどうかをチェックマークで示してください。 ☐
登録者がシェル会社であるかどうかをチェックマークで示してください(法令第120億2条で定義されています)。    はい          いいえ ☑
2024年4月28日時点での、登録者の非関連者が保有する投票株の総市場価値は、当日にナスダックグローバルセレクトマーケットが報告した終値に基づいています: $167,928,935,720
2024年12月6日時点での登録会社の普通株式(額面金額0.01ドル)の発行済株式数: 813,684,638
参照によって組み込まれた文書:
パートIIIの一部は、2025年2月24日までにフォーム10-Kの指示G(3)に従って提供されます。


目次

将来の見通しに関する注意事項
このアプライド マテリアルズ社及びその子会社のフォーム10-kによる年次報告書には、「経営陣による財務状況及び業績の分析」の項目7が含まれており、多くのリスクや不確実性を伴う将来予測に関する発言が含まれています。将来の財務または運用結果、顧客の需要と支出、最終利用者の需要、当社および市場および業種の動向と見通し、キャッシュフローとキャッシュ配分戦略、配当の宣言、シェアの買戻し、ビジネス戦略と優先事項、コストとコスト管理、製品、競争力のポジション、経営陣の将来の運営計画と目標、研究開発、買収、投資と売却活動、成長機会、再編成と退職手当活動、バックログ、運転資本、流動性、投資ポートフォリオと方針、税金、サプライチェーン、製造業、不動産、法的事項、請求および手続き、その他の歴史的事実ではない発言およびその根底にある仮定に関する将来予測に関する発言の例が含まれます。将来予測に関する発言には、「する可能性がある」「するだろう」「すべき」「できる」「したい」「期待する」「計画する」「予想する」「信じる」「見積もる」「意図する」「潜在的な」「継続する」といった言葉が含まれる場合があり、これらの用語の否定形やその他の同等の表現も含まれます。全ての将来予測に関する発言は、リスクや不確実性及び以下の第一部、項目1Aの「リスク要因」で議論されている重要な要因など、その他の重要な要因の影響を受けます。これら及び多くのその他の要因は、当社の将来の財務状況及び運営結果に影響を与え、当文書または当社を代表して先行する発言に基づく期待から実際の結果が大きく異なる原因となる可能性があります。将来予測に関する発言は、ここに記載された日付における経営陣の見積もり、予測及び期待に基づいており、そのような発言を修正または更新する義務を負いません。
以下の情報は、この報告書に含まれる連結財務諸表および連結財務諸表に添付された注記と併せて読む必要があります。
2

目次

アプライド マテリアルズ株式会社
2024年10月27日に終了した会計年度のための10-Kフォーム
目次
 
  ページ
第一部
項目 1:
項目 1A:
項目 1B:
項目 1C:
項目 2:
項目 3:
項目 4:
パート II
項目 5:
項目 6:
項目 7:
項目 7A:
項目8:
項目9:
項目9A:
項目9B:
項目 9C:
第 III 部
項目 10:
項目 11:
項目 12:
項目 13:
項目 14:
パート IV
項目 15:
項目16:

3

目次

第I部
アイテム 1:     ビジネス
アプライド マテリアルズ社は、世界中のほぼすべての半導体とAdvanced ディスプレイを生産するために使用される材料工学ソリューションのリーダーです。私たちは、顧客が半導体とディスプレイを製造するために必要とする重要なウェハ製造およびディスプレイ製造ツールの設計、開発、製造、サービスにおける専門家です。顧客の製品は、個人用コンピュータデバイス、携帯電話、人工知能(AI)およびIDC関連サーバー、自動車、接続デバイス、産業用途、家電製品など、さまざまな製品に使用されています。私たちは、半導体キャピタル機器業界で最も包括的な製品ポートフォリオを持っています。この広範な範囲のおかげで、ポートフォリオ全体のテクノロジーを接続し、共最適化する能力を持ち、顧客が半導体とディスプレイの製造がますます複雑になっている中で優れた結果を達成できるようにしています。半導体は、人工知能、IoT関連、ロボット工学、電気自動車および自動運転車、クリーンエネルギーを含むグローバル経済を再形成するテクノロジーの進歩の基盤を提供します。
1967年に設立され、デラウェア州の法人です。会計年度は10月の最終日曜日に終了します。報告セグメントは、半導体システム、応用グローバルサービス® (AGS)、およびディスプレイの3つです。半導体システムセグメントは、当社の売上高に最も大きく貢献しています。各報告セグメントの財務情報の概要は、統合財務諸表の注記14に記載されています。業務に影響を与える可能性のある要因については、ここに参照として組み込まれた1A項の「リスク要因」に記載されています。
半導体システム
当社の半導体システム部門は、半導体チップを製造するために使用される主に300mmの機器の幅広い範囲を設計、開発、製造および販売しています。これらは集積回路(IC)とも呼ばれます。半導体システム部門は、チップ製造プロセスに使用される半導体資本機器業種の中で最も包括的な製品ポートフォリオで構成されています。当社の製品は、材料工学、プロセス制御、Advancedパッケージングにおける各ステップに対応しており、パターンをデバイス構造に変換すること、トランジスタおよび相互接続の製造、計測、検査およびレビュー、完成したICダイを接続するためのパッケージング技術を含みます。個々のプロセスステップ用の機器を提供するだけでなく、当社の技術を組み合わせ、共同最適化し、統合して、顧客のために非常に差別化されたソリューションを開発する能力も備えています。当社の機器は、顧客が半導体デバイスの電力、性能、歩留まりおよびコストを改善するのに役立ちます。
私たちのパターニングシステムとテクノロジーは、現在の最先端の半導体デバイスに見られるパターン寸法の縮小と垂直スタッキングの複雑さの増大から生じる課題に対処しています。私たちのトランジスタおよびインターコネクト製品とテクノロジーは、3Dトランジスタの電力と性能の改善を継続的に可能にします。私たちのプロセス制御システムは、光学およびeBeamテクノロジーを利用しており、顧客が製造プロセス全体で重要な半導体アーキテクチャを検査およびレビューできるようにし、チップの歩留まりを向上させる手助けをします。私たちのAdvancedパッケージングシステムは、材料工学の専門知識を利用して顧客が異種統合を通じて複数のチップを接続できるようにし、単一のチップを超えてテクノロジーのロードマップを進めることを可能にします。
当社の半導体システムの販売は、以下の市場にサービスを提供する顧客に向けられています:ファウンドリ、ロジック、その他;DRAM;フラッシュメモリ。ファウンドリ、ロジック、その他は、先端技術ノードと非先端技術ノードで構成されています。先端技術は、最もAdvancedな技術ノードで生産している顧客を表します。非先端技術ノードは、IoT関連、通信、自動車、電力、およびセンサーなどの市場にサービスを提供します。
4

目次

Products Slide.jpg
アプライド グローバル サービス
AGSセグメントは、顧客の製造工場に対して、サービス、スペアパーツ、工場自動化ソフトウェアをグローバルに提供しています。また、AGSセグメントは200mmおよびその他の機器を製造・販売しており、これは非先端市場に対応する顧客に対してグローバルに出荷されています。
AGSの取引とサブスクリプションサービス製品、スペアパーツ、工場自動化ソフトウェアは、当社の大規模なグローバル半導体、ディスプレイその他の設備の設置ベースの性能を最適化するために顧客によって購入されます。これらのソリューションは、プラントの性能と生産性を最適化するためにも使用されます。顧客の需要は、200以上の場所にあるグローバル流通システムを通じて満たされ、顧客サイトの近くに配置された訓練を受けたフィールドエンジニアが、当社の半導体、ディスプレイその他の設備を世界中でサポートします。
ディスプレイ
ディスプレイセグメントは、主に液晶ディスプレイ (LCD)、有機ELダイオーズ (OLED)、およびテレビ、モニター、ラップトップ、パーソナルコンピュータ (PC)、タブレット、スマートフォン、その他の消費関連デバイス向けのその他のディスプレイテクノロジーを製造するための製品で構成されています。半導体とディスプレイ製造に使用されるテクノロジーには類似点もありますが、最も重要な違いは基板のサイズと構成にあります。ディスプレイパネルやその他のデバイスを製造するために使用される基板は通常はガラスですが、新しい柔軟な材料が市場に登場しています。ディスプレイセグメントの成長は、ますます大きく、よりAdvancedなテレビや高解像度ディスプレイへの消費者需要に主に依存しており、モバイルデバイスや情報技術 (IT) 製品、ラップトップ、モニター、タブレット、さらには薄型、軽量、曲面、柔軟なディスプレイなどの新しいフォームファクターや、拡張現実やVirtual Realityなどの新しいアプリケーションの需要も含まれます。ディスプレイアプリケーションに加えて、このセグメントのCVDテクノロジーは太陽光エネルギーセルを製造するためにも使用されます。大きなガラス基板における材料工学の専門知識は、さまざまなタイプの基板(ガラスを含む)を利用する業種のトレンドと相まって、半導体製品グループのAdvancedパッケージングビジネスと相乗効果を発揮します。

5

目次

バックログ
需要に応じたシステムを製造し、注文のバックログや顧客のコミットメントに対応しています。バックログは次のもので構成されています:(1) 書面による承認が受け入れられた注文、または出荷が行われたが売上高が認識されていない場合;および(2) 契約によるサービス収益とメンテナンス料です。
2024年10月27日および2023年10月29日現在の報告セグメント別のバックログは次のとおりです:
 20242023
 (百万元、パーセンテージを除く)
半導体システム$8,259 52 %$11,127 65 %
アプライド グローバル サービス6,767 43 %5,162 30 %
ディスプレイ827 %833 %
企業およびその他20 — %49 — %
合計$15,873 100 %$17,171 100 %
2024年10月27日現在の総未処理分の約31%は、今後12ヶ月以内に処理される見込みが合理的には期待できません。
2024年12月に発表された新しい輸出規則により、2024年10月27日現在の未処理のバックログは約54900万ドル減少する見込みです。この減少により、2024年10月27日現在の総未処理バックログは153億ドルとなり、そのうち約31%は12か月以内に処理されることは合理的に期待できないとされています。
特定の日付における私たちのバックログは、将来の期間における実際の売上を必ずしも示すものではありません。バックログは変更の対象であり、顧客からの新しい注文やキャンセル、輸出規則や規制の変更などの影響を受ける可能性があります。顧客は出荷前に製品の納品を遅らせたり、注文をキャンセルしたりすることがありますが、これにはキャンセル手数料が発生する可能性があります。特定の期間における納品スケジュールの遅れやバックログの減少は、私たちのビジネス及び業績に重大な悪影響を及ぼす可能性があります。
製造、原材料および用品
当社の世界的な製造活動は、システムを製造するために使用されるさまざまな独自の商業部品、部品およびサブアセンブリの組立、統合、テストを主に含んでいます。 アメリカ、シンガポール、日本、中国、韓国、台湾、イスラエル及びその他のアジアやヨーロッパの国々で製造およびサプライチェーン活動を行う分散型製造モデルを活用しています。 我々は、部品、サービス及び製品サポートを供給するために、代理工メーカーを含む資格のあるベンダーを使用しています。 当社のサプライチェーン戦略は、倫理的な労働慣行、責任ある鉱物調達、責任あるビジネス同盟及びSEMIガイドライン、また、当社のEnvironmental、Social、Governance(ESG)コミットメントに定義されたアプライド マテリアルズのビジネス行動基準に従うことを約束しています。
複数の資格のある供給者から部品が入手可能であることを保証するために合理的な努力をしていますが、必ずしもそれが可能であるわけではありません。したがって、一部の重要な部品は、資格のある単一の供給者または限られたグループの資格のある供給者からのみ入手される場合があります。製造業やサービスの中断のリスクを軽減し、コストを削減するために、部品の代替供給者を選定し、資格を取得したり、主要供給者の財政状態を監視したり、部品の適切な在庫を維持したり、適時に新しい部品の資格を取得したり、部品の品質と性能を確保したりしています。
研究、開発、エンジニアリング
私たちの長期的な成長戦略は、新素材のエンジニアリングソリューションの継続的な開発を必要とし、新しい市場や隣接市場への拡張を可能にする製品やプラットフォームを含みます。研究開発とエンジニアリング(RD&E)への重要な投資は、一般的に強い需要が現れる前に新製品やテクノロジーを提供できるようにする必要があり、これにより顧客は初期段階のテクノロジー選定中にこれらの製品を製造計画に組み入れることができます。私たちは、計画された技術的および生産要件を満たすシステムとプロセスを設計するために、グローバルな顧客やエコシステムパートナーと密接に協力しています。私たちの製品開発とエンジニアリング、プロセスサポートは主にアメリカ、インド、イスラエルで行われています。顧客デモは主にアメリカ、中国、台湾、イスラエル、韓国で行われています。

6

目次

マーケティングと販売
当社の製品は高度な技術的特性を持っているため、ほぼ全てを直販の営業力を通じて、全世界でマーケティングし、売り出しています。
私たちは多くの国で業務を展開しており、いくつかのビジネス活動は特定の地理的地域に集中しています。私たちのビジネスは、主要な半導体、ディスプレイおよびその他の製造業者による設備投資に基づいており、製品に対する顧客の需要の変動が大きく影響します。顧客の支出は、一般的な経済状況、半導体、ディスプレイ技術およびその他の電子デバイスに対する市場需要と価格の予想、新しい技術の開発、顧客の工場の稼働率、資本リソースと資金調達、取引政策と輸出規制、政府のインセンティブなど、多くの要因に依存します。
当社の地理的地域に帰属する非関連顧客への売上高と新規買資産に関する情報は、連結財務諸表の注記14に含まれています。以下の企業は、複数の報告セグメントにおける製品とサービスについて、以下の会計年度において当社の売上高の10パーセント以上を占めました。
 
20242023
サムスン電子株式会社12%15%
台湾セミコンダクターマニュファクチャリング株式会社11%19%

7

目次

競争
私たちが活動する産業は非常に競争が激しく、急速なテクノロジーの変化が特徴です。私たちの競争力は、一般的に、テクノロジーをタイムリーに商業化し、製品を継続的に改善し、常に進化する顧客の要件を満たす新しい製品を開発する能力に依存しています。重要な競争要因には、技術的能力と差別化、生産性、コスト効果、そしてグローバルな顧客基盤をサポートする能力が含まれます。これらの要因の重要性は、製品のミックスやそれぞれの製品要件、アプリケーション、および購入決定のタイミングと状況を含む顧客のニーズに応じて異なります。私たちのビジネスの全セクターで substantial な競争が存在します。競合他社は、国内企業に有利な政策や規制の恩恵を受ける可能性のある単一の地域で競争する小規模企業から、より複雑なグローバル経済および規制環境で運営されるグローバルで多様な企業まで様々です。中国の国内機器メーカーからの競争が、地方政府のインセンティブや資金提供、および特定のテクノロジーの中国の顧客への販売を制限するために米国政府によって確立された輸出管理の影響で増加する可能性があります。特定のテクノロジーの中国の顧客への販売を制限する米国政府によって施行された輸出管理は、私たちの国際的な競合他社にとっても利点を提供するかもしれません。競争するためには、RD&E、マーケティングおよび営業、グローバルな顧客サポート活動への高水準の投資が必要です。私たちの多くの製品が強力な競争力を持っていると信じています。
各セグメントにおける競争環境は以下に示されている。
半導体業界は、スマートフォンやその他のモバイルデバイス、サーバー、パソコン、自動車用電子機器、ストレージ、その他製品を含む高度な電子製品に対する需要によって推進されています。データの成長や人工知能、IoT関連、5Gネットワーク、スマートビークル、拡張現実およびVirtual Realityなどの新たなエンドマーケットのドライバーも、業界にとって次の成長の波を生み出しています。その結果、半導体システムセグメント内の製品は、小型化やますます複雑なチップアーキテクチャ、新素材、増加するアプリケーションなど、顧客の要求の重大な変化の影響を受けています。既存の特定のテクノロジーは新たな要求に適応できるかもしれませんが、一部のアプリケーションは全く別の技術的アプローチの必要性を生み出します。技術変化の急速なペースは、最新のテクノロジーや製品の価値を迅速に低下させる可能性があり、既存の競合や新たな競合の機会を生み出します。当社の包括的なポートフォリオは、ユニークなフィルム、構造、およびデバイスを可能にする共同最適化された統合材料ソリューションを含む、多様な差別化製品を提供します。テクノロジーの変化を成功裏に予測し、製品は市場で競争するために顧客の要求を満たすために継続的に進化しなければなりません。多数の製品提供の間でリソースを配分するため、市場の要求に応じて個別の製品に投資しないという決定をすることがあります。半導体装置業界にサービスを提供する競合は、単一の製品ラインを提供する企業から複数の製品ラインを提供する企業、単一地域にサービスを提供する企業からグローバルで多様化した企業まで様々です。
AGSセグメントが提供する製品とサービスは、特に厳しいグローバルサービス要件を持つ市場において、半導体システムセグメントやディスプレイセグメントの製品とサービスを強化します。AGSセグメントの競争には、多様な第三者サービスプロバイダーや、自らサービスを行うことを選択する顧客が含まれます。
効果的に競争するために、システムのパフォーマンスを向上させ、総保有コストを下げ、お客様のファブオペレーションの収益と生産性を向上させるための製品とサービスを提供しています。重要な競争要因には、コスト効果と技術サービスとレジスタンスのレベルが含まれます。これらの要因の重要性は、お客様のニーズや提供される製品やサービスの種類によって異なります。
ディスプレイセグメントの製品は、主にアジアの数社の主要な競合他社から強い競争を受けることが一般的です。中立である当社は、PECVD、カラーフィルターPVD、PVDアレイ、PVDタッチパネル、TFtアレイテスト用の技術的に差別化されたLCDおよび有機EL製造ソリューションで確立された市場ポジションを保持していますが、顧客の要求の変化により市場ポジションが急速に変わる可能性があります。ディスプレイ製品の競争力に影響を与える重要な要因には、業種のトレンド、新製品を革新・開発する能力、製品がどの程度技術的に差別化されているか、さらに高度に集中した顧客基盤内でどの顧客が設備投資を行っているか、そしてこれらの顧客における当社の既存のポジションが含まれます。
8

目次

特許およびライセンス
特許を含む知的財産権の執行を通じて、テクノロジー資産を保護することは、競争力のある地位にとって重要です。私たちの方針は、重要と考える発明について、アメリカやその他の国で特許出願を行うことです。アメリカやその他の国には、22,000件以上のアクティブな特許があり、新しい発明に対する追加の出願が保留中です。特定の特許に依存しているとは考えていませんが、特許に基づいて製造・販売される製品と私たちの権利は、全体としてビジネスの重要な要素です。特許に加えて、商標、ノウハウ、営業秘密、著作権などのその他の知的財産も保有しています。
我々は最良の利益があると判断した場合に、他の会社との特許およびテクノロジーライセンス契約を結びます。特許ライセンス契約に基づき、我々の製品の一部で特定の特許技術を使用するためのロイヤリティを支払います。また、第三者に付与されたライセンスからのロイヤリティも受け取ります。第三者から受領したまたは支払ったロイヤリティは、当社の連結業績にとって重要ではありません。
ビジネスの通常の進行において、私たちは定期的に特許侵害の可能性に対処します。このような問い合わせに対応する際、ライセンスやその他の権利を取得または付与することが必要または有用になることがあります。しかし、そのようなライセンスや権利が商業的に合理的な条件で私たちに利用可能であること、または全く利用可能であることは保証されません。もし、私たちが主張を解決または和解できず、商業的に合理的な条件で必要なライセンスを取得できず、または自らの立場を成功裏に訴追または防御できない場合、私たちのビジネス、財務状態および業務結果は著しく悪影響を受ける可能性があります。
政府の規制
グローバルな operations を持つ上場企業として、私たちはアメリカ合衆国と複数の外国の法令に従う必要があります。これらの法令は管轄区域によって異なり、財務およびその他の開示、会計基準、証券、企業統治、公共調達および公共資金、知的財産、税金、取引(輸入、輸出および関税を含む)、独占禁止法、サイバーセキュリティ、環境(持続可能性および気候に関連するものを含む)、健康と安全、雇用、移民および旅行規制、人権、プライバシー、データ保護およびローカリゼーション、反腐敗に関連するものを含みます。 詳細については、「リスク要因 - 法的、コンプライアンスおよびその他のリスク - グローバルな規制環境に関連するリスクにさらされています」を参照してください。
私たちは、取引政策や輸出規制、知的財産権の移転に関する制限など、商品や関連アイテムの購入および販売に関するさまざまな国際法のもとで規制されています。 詳細については、「リスク要因 - ビジネスおよび業種リスク - グローバルな取引問題および取引政策や輸出規制に関する変化や不確実性、輸出入ライセンス要件、取引制裁、関税および国際取引紛争を含むがこれに限定されないことが、私たちのビジネスおよび業務に悪影響を及ぼし、さらに今後悪影響を及ぼす可能性があり、私たちの製品の地元およびグローバル競合他社に対する競争力を低下させるかもしれない。」を参照してください。
環境、健康、安全に関する規制に関して、主に予防的性質のプログラムを多数維持し、適用される法律や規制の継続的な遵守を定期的に監視しています。さらに、私たちは、spills、リリース、または可能な汚染を含むがそれに限定されない環境、健康、または安全の事故を調査するために訓練を受けた人員を配備しています。 「リスク要因 - 法律、コンプライアンス及びその他のリスクに関連するリスク - 環境、健康及び安全に関する規制に関連するリスクにさらされる」にもご参照ください 詳細については。
アメリカ合衆国および外国の法域において、我々は所得税の対象となります。所得税の引当金、実効税率、及び財務結果は、適用税法の変更、適用税法の解説、異なる税率の法域における税引前所得の金額及び構成、及び繰延税金資産の評価など、多くの要因の影響を受ける可能性があります。税法の提案された変更がいくつかあり、これにより我々の税負担が増加する可能性があります。 見る 「リスク要因 - 営業および財務リスク - 我々は複雑で変わりやすい税法の法域で事業を行っています」さらなる詳細については我々のビジネス及び運営における所得税法令の遵守の影響に関する追加の議論については、 「経営者の議論及び財務状態および業績の分析 - 業績の結果 - 所得税」と、連結財務諸表の注記12を参照してください。


9

目次

私たちの人々
革新に対する私たちのコミットメントは、従業員が最良の仕事を遂行できる環境を作るというコミットメントから始まります。市場で差別化された価値を創出する能力は、私たちの人々がテクノロジーの変化を予測し、顧客の要件を統合する能力によって推進されます。このレベルの価値創造を達成するために、私たちは世界クラスのグローバルな労働力を引き付け、雇用し、育成し、維持し続ける必要があると考えています。従業員に対して、質の高い研修や学習の機会を提供し、魅力的なキャリアパスを促進し、インクルージョン、公平性、多様性を推進し、高い倫理基準と人権への尊重を維持することに投資しています。
2024年10月27日現在、約35,700人の正社員を雇用しており、そのうち約45%、43%、および12%がアジア太平洋地域、北米、ヨーロッパ/中東にそれぞれ居住しています。私たちのチームは24か国にわたり、さまざまな文化、背景、人種、肌の色、国籍、宗教、性別、性的指向、性自認、年齢、障がい、退役軍人および軍事産業のステータスを反映しています。
包括的な文化
私たちは素晴らしい才能と異なる視点を重視しており、多様性が私たちの最大の強みの一つであることを知っています。したがって、全セクターの従業員に対して、公正で平等なキャリア開発と昇進の機会を提供することに努め、戦略や方針から日常的な相互作用に至るまで、あらゆるレベルで多様な背景や視点への敬意を私たちの文化に組み込んでいます。
私たちは、包括的な文化の強化へのコミットメントが職場の多様性を広げ、全ての人々に利益をもたらす文化を築くのに役立つと期待しています。近年、私たちは包括的な文化の旅において進展を続け、アメリカ合衆国およびグローバルな労働力における女性の代表を増加させ、アメリカ合衆国におけるマイノリティの代表を増加させるなどの取り組みを行ってきました。2024年10月27日現在、当社のグローバル労働力は79.2%が男性、20.6%が女性であり、アメリカ合衆国の労働力の19.8%が過小評価されているマイノリティで構成されています。
人材の獲得と維持
私たちは、将来の成功が従業員を引き付け、育成し、維持し、関与させる能力に大きく依存していると考えています。従業員を引き付け、維持するための取り組みの一環として、従業員株式インセンティブプラン、従業員株式購入プラン、健康保険および老後生活の福利厚生、親子および家族の休暇、養子縁組のクレジット、休日および有給休暇、そして学費支援など、競争力のある報酬、賃金、福利厚生を提供しています。
従業員の学習と開発
私たちは、エンゲージメントがあり包括的な労働力を支援するために、成長と発展の機会を創出することを目指しています。70/20/10モデルに基づいた包括的な従業員の学習と発展を促進しており、70%は職場での学習、20%は社会的・協働的な学習、10%は正式なトレーニングで構成されています。これは、技術スキルの向上やビジネスの一般的な理解を深め、増大する仕事の複雑さに対応することに重点を置いています。また、専門的な幅を広げるために、各部門や機能は自分たちの専門分野に関連した技術的かつ職務特有のトレーニングを提供し、一般的な専門職、管理職、リーダーシップトレーニングは企業レベルで行われます。全てのトレーニングは中央で調整され、Applied Global Universityを通じて共通の目標に整合しています。講師主導やウェブベースのトレーニングに加えて、人工知能を用いたシミュレーションや拡張現実およびVirtual Realityの学習機能など、最先端のトレーニング手法を提供し、新製品の開発、製造およびフィールドサポート従業員のトレーニング、リモートコラボレーションを促進しています。
従業員エンゲージメント
歴史的に、従業員のエンゲージメントは調査を通じて測定され、従業員の経験、職場満足度、エンゲージメント、包括性、全体的な幸福感の主要な要因についての洞察が得られます。2025会計年度に、最大限の参加を促し、率直な回答を引き出すために、外部パートナーを通じて匿名の全従業員調査を実施する予定です。また、調査結果を、世界中の大手テクノロジー企業を含む大規模で標準化されたデータセットと比較することも計画しています。調査結果とベンチマーキングデータにより、企業全体の傾向をよりよく理解し、介入の効果を測定し、特定の従業員集団(例:早期在職者)を定義することが期待されます。調査結果は、リーダーや人事マネージャーに対し、自分のグループに合わせた実用的な洞察を提供し、従業員のエンゲージメントと包括性をさらに向上させることが期待されます。これらの実用的な洞察は、企業内の人材戦略プロセスやリズムに統合される予定です。
私たちの人々や持続可能性に関する活動、また労働力の多様性データに関する追加情報は、最新の持続可能性レポートに掲載されています。このレポートは、私たちのウェブサイト https://www.appliedmaterials.com/us/en/corporate-responsibility.html にあります。持続可能性レポートは毎年更新されます。このウェブサイトのアドレスは、無効なテキストリファレンスのみを意図しています。当社のウェブサイト上にある情報や、そちらを通じてアクセス可能な情報は、このフォーム10-Kの一部ではなく、ここに参照として組み込まれていません。
10

目次

当社の執行役員に関する情報
以下の表と注釈は、当社の役員に関する情報を示しています。
個人名役職
ゲイリー・E・ディッカーソン(1)社長、最高経営責任者
ブライス・ヒル(2)シニアバイスプレジデント、CHIEF FINANCIALオフィサーおよびグローバル情報サービス
プラブ・ラジャ(3)社長、半導体製品グループ
テリ・リトル(4)上級副社長、CHIEF FINANCIALオフィサーおよびコーポレート・セクレタリー
オムカラム・ナラマス(5)上級副社長、テクノロジー最高責任者
ティモシー・M・ディーン(6)グループ副社長、応用グローバルサービス
(1)ディッケルソン氏(67歳)は、2012年6月にAppliedの社長に就任し、2013年9月に最高経営責任者および取締役会のメンバーに任命されました。Appliedに入社する前は、2004年から2011年11月に我々が買収するまで、バリアン半導体機器関連会社の最高経営責任者および取締役を務めました。バリアン以前は、ディッケルソン氏は半導体および関連業界向けのプロセス管理と歩留まり管理ソリューションを提供するKLA-Tencor Corporation(KLA-Tencor)で18年間勤務し、社長および最高執行責任者を含むさまざまな業務および製品開発の役割を担っていました。ディッケルソン氏は、ゼネラルモーターズのデルコエレクトロニクス部門およびその後AT&Tテクノロジーズで製造およびエンジニアリング管理のキャリアをスタートさせました。
(2)ヒル氏(58歳)は、2022年3月からシニア・バイス・プレジデント兼CHIEF FINANCIALオフィサーを務めています。また、Appliedのグローバル・インフォメーション・サービスも監督しています。Appliedに入社する前は、ヒル氏はXilinx, Inc.のエグゼクティブ・バイス・プレジデント兼CHIEF FINANCIALオフィサーを務めており、同社はプログラム可能なデバイスと関連するテクノロジーを設計・開発していました。Xilinxでは、2020年4月から2022年2月にアドバンストマイクロデバイス(AMD)に買収されるまでその職を務めました。Xilinxの前は、ヒル氏はIntel Corporationで25年間、さまざまな財務ポジションを歴任し、最近ではコーポレート・バイス・プレジデント兼CHIEF FINANCIALオフィサーおよびテクノロジー、システムおよびコアエンジニアリンググループの最高執行責任者として勤務していました。
(3)ラジャ博士は62歳で、2023年3月から半導体製品グループの社長を務めています。彼は2017年11月から2023年3月まで、アプライドの半導体製品グループのシニアバイスプレジデントを務め、その前は1995年にアプライドに入社以来、さまざまなシニアマネジメント、製品開発、運営の役割を果たしており、パターニングとパッケージンググループのグループバイスプレジデントおよびゼネラルマネージャーを務めていました。
(4)ミス・リトルは60歳で、2020年6月にアプライドに上級副社長、最高法務責任者および企業秘書として入社しました。アプライドに入社する前は、2017年8月から2020年6月までKLAコーポレーションのエグゼクティブバイスプレジデント、最高法務責任者および企業秘書を務めていました。それ以前は、2015年10月から2017年8月までKLAコーポレーションの上級副社長、一般顧問および企業秘書として勤務し、その前は2002年以降KLAコーポレーションでさまざまな役職を歴任していました。KLAコーポレーションに入社する前は、ウィルソン・ソンシーニ・グッドリッチ&ロサティでシニアコーポレートアソシエイトを務め、ヘラー・アーマン・ホワイト&マカリフで訴訟アソシエイトとして働いていました。
(5)ナラマス博士(66歳)は、2013年6月より上級副社長および最高テクノロジー責任者を務めており、2013年11月からはAppliedのベンチャーキャピタル部門であるApplied Ventures, LLCの社長を務めています。2012年1月から2013年6月までグループ副社長および最高テクノロジー責任者を務め、2011年1月から2012年1月までコーポレート副社長および最高テクノロジー責任者を務めました。2006年6月にAppliedに入社してから2011年1月まで、ナラマス博士は研究のための任命された副社長を務め、先端テクノロジーグループの副最高テクノロジー責任者およびゼネラルマネージャーを務めました。2002年から2006年まで、ナラマス博士はレンセラー工科大学の材料科学および工学のNYSTAR特別教授であり、2005年から2006年まで研究の副社長を務めました。レンセラー工科大学に来る前、ナラマス博士はベル研究所でいくつかのリーダーシップ役職を務めていました。
(6)ディーン氏は59歳で、2022年9月以来、アプライド・グローバル・サービスのグループ副社長を務めています。彼は1995年にアプライドに入社し、これまで半導体製品グループのフィールドオペレーションおよびビジネスマネジメントの責任者、口座のゼネラルマネージャー、地域のゼネラルマネージャーを含む、様々な上級管理職およびフィールドオペレーションの役割を果たしてきました。
11

目次



利用可能な情報
当社のウェブサイトは http://www.appliedmaterials.com です。当社は、年次、四半期および現在の報告書や、その報告書の修正を、SECに電子的に提出したり、提供したりした後、合理的に可能な限り早く、ウェブサイト上またはウェブサイトを通じて無償で提供します。SECのウェブサイト www.sec.gov には、報告書、委任状および情報声明、ならびにSECに電子的に提出する発行者に関するその他の情報が含まれています。これらのウェブサイトアドレスは、非アクティブなテキスト参照としてのみ意図されています。これらのウェブサイト上またはアクセス可能な情報は、本フォーム10-Kの一部ではなく、ここに参照として組み込まれているものではありません。
12

目次

アイテム 1A:     リスク要因
以下のリスク要因は、私たちのビジネス、財務状況、または業績に重要かつ悪影響を及ぼす可能性があり、評判に損害を与える可能性があるため、他の情報とともに私たちのビジネスを評価する際に慎重に考慮する必要があります。
ビジネスと業種のリスク
私たちが提供する産業は変動しやすく、予測が難しいことがあります。
私たちはグローバルな半導体、ディスプレイおよび関連業界への供給業者であり、これらは歴史的に周期的であり、顧客需要の変動の影響を受けます。私たちの製品とサービスの需要に影響を与える要因には、テクノロジーの革新や製造プロセスの進歩、高バンドウィドゥスメモリの需要やその他のAdvancedパッケージング、artificial intelligenceやIDC関連コンピューティングに関連するテクノロジーなどの新しい市場推進因子、半導体チップや電子デバイスの需要に対する生産能力、エンドユーザーの需要、顧客の設備稼働率、生産量、適正な資本へのアクセス、ビジネスや消費関連の購買パターン、一般的な経済状況や政治情勢が含まれます。人工知能は急速に進化しており、半導体や半導体装置の新たな需要推進因子となっており、その需要を正確に予測することは難しいです。需要の変動は、テクノロジーや製造装置への顧客投資のタイミングや金額に影響を与える可能性があり、私たちの業績に大きな影響を及ぼすことがあります。顧客の資本設備支出の金額と製品やテクノロジーのミックスも、私たちの業績に大きく影響する可能性があります。
急速に変化する需要に対応するためには、需要を正確に予測し、リソース、投資、生産能力、サプライチェーン、労働力、在庫、その他のビジネスの部品を効果的に管理しなければなりません。需要の変化に合わせてビジネスオペレーションを調整するために、予期しないまたは追加のコストが発生することがあります。これらの課題を効果的に管理できない場合、ビジネスのパフォーマンスや業績が悪影響を受ける可能性があります。リソースの効果的な配分とコスト管理が行われた場合でも、需要の変化期間中に粗利益と営業利益、キャッシュフローおよび収益が悪影響を受ける可能性があります。
不確実なグローバル経済に伴うリスクにさらされています。
不確実または不利な経済及びビジネスの状況、金融市場の不確実性や変動、国の債務、財政または金融の懸念、インフレーション及び金利の変化、銀行の破綻、そして経済の景気後退は、当社の業績に重大かつ悪影響を与える可能性があります。半導体及びディスプレイ機器とサービスの市場は、主にビジネス及び消費関連の支出と半導体チップ及び電子機器に対する需要に依存しています。不確実または不利な経済及びビジネスの状況は、ビジネス及び消費関連の支出と需要の減少を引き起こす可能性があります。支出と需要の減少は、当社のお客様が設備やサービスの購入を延期、キャンセル、または控える原因となり、今後もこの傾向が続く可能性があり、当社の製品やサービスの需要に悪影響を及ぼし、バックログの減少、在庫の増加をもたらし、当社の業績に重大かつ悪影響を与える可能性があります。
半導体チップや電子機器の需要の増加は、当社製品の製造に必要な部品や材料の不足を引き起こし、将来的にも引き起こす可能性があります。このような不足や、交通機関の能力や中断による出荷の遅延は、当社の要求を満たすためのサプライヤーの能力に悪影響を与え、将来的にも悪影響を与える可能性があります。加速されたデジタルトランスフォーメーションは、需要をさらに増加させ、 shortages を悪化させ、当社の製造能力に負担をかける可能性があり、これは顧客の需要を満たす能力に悪影響を及ぼし、当社の収益、営業結果および種類に悪影響を与える可能性があります。
不確実または逆風の経済及び市場状況、資本の調達の難しさ、コストの増加や収益性の低下は、一部の顧客が業務を縮小したり、事業から撤退したり、他の製造業者と合併したり、破産保護を申請したり、最終的に事業を停止する原因となる可能性があります。これにより、売上の低下、在庫の過剰、または不良債権費用が発生することがあります。経済および業種の不確実性は、部品を供給するサプライヤーの能力を損ない、当社の業務管理や製品の納品能力に悪影響を及ぼす可能性があります。これらの状況は、他の設備製造業者の間での統合や戦略的提携を引き起こすことがあり、それが当社の競争力に悪影響を与える可能性があります。
不確実な経済や業種の種類、供給チェーンの課題により、運営結果の正確な予測、ビジネスの意思決定、私たちのビジネス、現金の源と使用、財務状態、業績に影響を与える可能性のあるリスクの特定と優先順位付けが難しくなっています。ビジネス運営を適切に管理しない場合、ビジネスパフォーマンスや財務状態に重大で悪影響を及ぼす可能性があります。追加のコスト削減努力、再構築活動を実施する必要があるかもしれず、これが機会を活かす能力に悪影響を及ぼす可能性があります。経済の不確実性や需要の低い期間でも、研究開発に投資を続け、効果的に競争し、顧客を支援するためにグローバルなビジネスインフラ関連を維持しなければならず、これが運営結果に悪影響を及ぼすことがあります。
13

目次

一般的な信用、流動性、市場およびInterest Ratesリスクにさらされた投資ポートフォリオを維持しています。投資ポートフォリオに対するリスクは、インフレの上昇、Interest Ratesの上昇、銀行の破綻、または経済不況により金融市場の状況が悪化すると悪化する可能性があります。その結果、投資ポートフォリオの価値や流動性、年金資産のリターンに悪影響を及ぼし、減損損失を招く可能性があります。また、通常の業務を資金調達するために、世界中のさまざまな銀行口座に現金残高を維持しています。これらのファイナンシャルインスティテューションズのいずれかが破産した場合、影響を受けた口座での現金へのアクセスが制限される可能性があり、業務を管理する能力に影響を与える可能性があります。
グローバルビジネスを運営するリスクにさらされています。
私たちは、製品開発、エンジニアリング、製造、販売その他の業務を多数の国に分散させており、ビジネス活動の一部は特定の地域に集中しています。2024年度には、純売上高の約86%がアメリカ以外の地域のお客様から得られました。私たちの業務がグローバルな性質を持つため、ビジネスのパフォーマンスや業務結果は、以下のような多くの要因によって悪影響を受ける可能性があります。
不確実または悪影響を及ぼすグローバルな経済、政治、そしてビジネスの状況や需要;
グローバル 取引 の問題や、 取引 や輸出規制、 取引 の政策や制裁、関税、国際 取引 の紛争に関する変化や不確実性、新しいおよび変化する輸出規制、その影響が製品を輸出し、顧客にサービスを提供する能力に与える影響を含みます。
特定の製品、技術、原材料の開発、販売、または輸出に伴う国家的、商業的、またはセキュリティの問題に関する政府機関の立場;
政治的不安定、社会的動乱、テロリズム、戦争行為、または中東の対立のようなその他の地政学的混乱、私たちの事業、供給者、または販売がある場所、または私たちが提供する産業のバリューチェーンに影響を与える可能性のある場所において。
サイバーセキュリティのインシデント;
中国、アメリカ、ヨーロッパおよびアジアの国々を含む国々における、国内企業を外国企業よりも優遇する政治的・社会的態度、法律、規則、規制、政策、地元の競争者の発展と成長を促進し、外国の半導体設備および製造能力への依存を減らすための政策と経済的インセンティブを通じた取り組み。
特定の国での業務や調達を多く行ったり少なく行ったりするように影響を与えようとする努力。
異なる変化する地域別、国家、国際的な法律や規制、契約、知的財産、サイバーセキュリティ、データプライバシー、労働、税金、輸出入に関する法律、法律や規制の解釈と適用を含む;
特定の国における知的財産権の非効果的または不十分な法的保護。
私たちまたは私たちの供給者の供給チェーンへの中断;
原材料の入手可能性、重要な材料や重要な鉱鉱を含み、ベンチマーク、エネルギー、及び輸送コストの変動や増加。
人員の移動や材料または製品の輸送に関する遅延や制限;
地理的に多様な業務やプロジェクト、そして適切なビジネスプロセス、手続き、内部統制を維持し、環境、健康・安全、腐敗防止およびその他の規制要件を遵守する能力。
異なる国での労働者の採用と統合に関する課題、異なる経験レベル、言語、文化、習慣、ビジネス慣行、労働者の期待が異なる多様な労働力を効果的に管理すること、そして異なる雇用慣行や労働問題に関する課題。
地元の顧客、サプライヤーおよび政府との関係を構築する能力;
金利の変動や為替レートの変動、特にアメリカドルの日本円、イスラエルシェケル、ユーロ、台湾ドル、シンガポールドル、中国元、または韓国ウォンに対する相対的な強さや弱さを含む。
世界中のさまざまな場所で技術的なレジスタンスを提供する必要がある。
地理的に多様な第三者提供者のパフォーマンス、特定のエンジニアリング、ソフトウェア開発、製造、情報テクノロジーその他の機能を含む;
公共料金、交通機関、データホスティング、または通信サービスプロバイダーによるサービスの中断。
自然災害や極端で慢性的な気象イベントが、気候変動によって悪化するかもしれない私たちの運営や顧客、供給者の運営に与える影響。
14

目次

地域別またはグローバルな健康の疫病;
移動する労働力と異なる地域への旅行の必要性の高まり;
特定の国々の発展途上経済における半導体やディスプレイの製造・販売を含む、さまざまな国の経済成長率に関する不確実性。
グローバルな取引の問題や、取引政策や輸出規制に関する変化や不確実性、輸入および輸出ライセンスの要件、取引制裁、関税、国際的な取引の争いが、私たちのビジネスや運営に悪影響を及ぼし、さらなる悪影響を及ぼす可能性があり、私たちの製品やサービスが地域及びグローバルの競合他社に対して競争力を失う原因となっています。
当社の製品やサービスの大多数は、アメリカ合衆国以外の管轄区域、特に中国、台湾、韓国、日本のお客様に提供されています。また、当社はアメリカ合衆国以外の供給者からも設備や用品のかなりの部分を購入しています。アメリカ合衆国と当社がビジネスを行う国々との複雑な関係に基づき、政治、外交、国家安全の要因がグローバル取引制限や取引政策、輸出規制の変更を引き起こし、半導体業種に影響を及ぼすリスクが内在しています。アメリカ合衆国及び他の国は新たな取引制限や輸出規制を課しており、特定の商品の関税や税金を賦課し、広範囲にわたる商品の関税を大幅に引き上げる可能性があります。取引制限や輸出規制、関税の引き上げや追加税金、報復措置を含むいかなる措置も、エンドユーザーの需要や半導体機器への顧客投資に悪影響を及ぼし、供給チェーンの複雑さや製造コストを増加させ、利益率を低下させ、製品の競争力を減少させたり、製品の売り、サービスの提供、必要な設備や用品の購入の能力を制限することにつながり、これらのいずれもがビジネス、業務結果、または財務状態に重大かつ不利な影響を与える可能性があります。
例えば、特定の国際販売は輸出ライセンスを取得する能力に依存しており、これらのライセンスを取得できないことは市場を制限し、さらなる制限を加える可能性があり、ビジネスに悪影響を及ぼす可能性があります。過去数年間にわたり、米国政府は中国で販売される米国の半導体テクノロジーに関する追加の輸出規制を発表しました。これには、ウェハ製造装置や関連する部品およびサービスが含まれており、異なる管轄区域の企業に異なる影響を与え、特定の製品やサービスの市場を制限し、収益に悪影響を及ぼし、外国企業や中国の国内競争に対する当社のリスクを高めてきました。米国商務省は、軍事目的を支援することを意図した中国の実体に特定の製品を販売するか、特定のサービスを提供する米国企業向けに輸出ライセンス要件を拡大する規制を制定しました。また、中国への特定のアイテムの輸出に適用されていたいくつかの輸出ライセンスの例外を廃止し、特定の中国企業を「エンティティリスト」に追加しました。これにより、これらの企業は追加のライセンス要件に従う必要が生じ、集積回路や特定のテクノロジーの開発または生産に使用されるアイテムの中国への輸出に対するライセンス要件が拡大されました。これらの規制により、特定の製品を供給するために追加の輸出ライセンスを取得する必要があります。輸出ライセンスの取得は困難で時間がかかる場合があり、タイムリーにライセンスが発行されるかどうかは保証されていません。このようなライセンスを取得できない場合、中国での売上を制限し、外国企業や中国の国内企業に取って代わられ、業績に悪影響を与える可能性があります。これらの複雑な規則の実施および解釈、ならびに米国政府によるその他の規制措置は不確かで進化しており、当社の運営管理や業績予測をより困難にする可能性があります。米国およびその他の政府は、新しいまたは追加の輸出ライセンスやその他の要件を制定する可能性があり、これにより米国および中国を含む顧客に特定の製品やサービスを提供する能力がさらなる制限を受ける可能性があります。米国政府は、既存の要件を改正または拡大したり、これらの要件の範囲や適用を明確にする指針を発行する場合もあり、これが当社のビジネスや製造業務に対するこれらのルールの影響を変える可能性があります。米国政府はまた、顧客を「エンティティリスト」に追加し続けたり、追加の制限を制定したり、特定の顧客への製品出荷やサービス提供を妨げるおそれのある措置を講じたりする可能性があります。これらおよび他の潜在的な将来の規制変更は、当社のビジネス、業績、または財務状況に重大かつ悪影響を与える可能性があります。
世界中の多くの国に顧客、供給業者、および事業を持つグローバルなビジネスとして、時折、当社と特定の外国の法人との間の取引に関して政府機関からの問い合わせを受けることがあります。例えば、2022年以降、特定の中国顧客の出荷および輸出管理の遵守に関する情報を求める複数の召喚状を、米国司法省、米国商務省産業安全局、米国証券取引委員会から受け取っています。これらの問題に関して米国政府と完全に協力しています。関連する召喚状や情報のリクエストが引き続き届いており、将来的にはその他の政府機関から追加の関連する召喚状や情報のリクエストを受け取る可能性があります。いかなる問い合わせも不確実性の影響を受けるため、これらの問い合わせや発生する可能性のあるその他の政府の問い合わせや手続きの結果を予測することはできません。法律や規制の違反または違反の疑いは、当社または従業員に対して罰金や制裁を受ける可能性がある法的手続きや重要な法的コストをもたらし、ビジネスの制限や当社のグローバルブランドおよび評判の損害を引き起こす可能性があり、ビジネス運営、財務状況、及び業務結果に重要かつ悪影響を与える可能性があります。
15

目次

さらには、政府当局が報復的措置を講じたり、地元の供給業者や地元企業との提携を求める条件を課したり、センシティブなデータや知的財産のライセンスまたはその他の移転を要求したり、地元のビジネスや地元の競争相手を促進するためのその他の努力を行ったりする可能性があります。これらはすべて、ビジネスに対して実質的かつ悪影響を及ぼす可能性があります。これらの課題の多くは、中国や韓国に存在しており、これらの市場は我々のビジネスの重要な部分を占めています。
非常に集中した顧客基盤に関連するリスクにさらされています。
比較的限られた数の顧客が、私たちのビジネスの大部分を占めています。顧客基盤は地理的に集中しており、特に中国、台湾、韓国、日本に集中しています。その結果、中国のように特定の国の顧客に適用される輸出規制や単一の顧客の行動は、私たちのビジネスや業績の結果に対してより大きな変動をもたらすことがあります。顧客基盤の地理的集中は、テクノロジーや競争環境の変化、地域別の半導体産業を発展させるための政府の政策やインセンティブの影響によって、時間の経過とともに変化する可能性があります。顧客の種類や組み合わせ、政府の政策の変化に伴う単一の顧客への販売は四半期ごと、年ごとに大きく変動することがあり、私たちの業績に大きな影響を与えてきましたし、今後も影響を与える可能性があります。私たちの製品は顧客の仕様に合わせて構成されており、注文の変更、再スケジュール、またはキャンセルは重要な回収不能なコストを生じる可能性があります。顧客が注文をしない場合、または大幅に減少、遅延、またはキャンセル(不確実または不利な経済条件、輸出規制による注文の履行不能、部品の不足、交通機関の能力/中断、またはその他の理由による場合を含む)した場合、ビジネスを取り戻せない可能性があり、それが私たちの業績や財務状況に対して重大かつ悪影響を及ぼす可能性があります。私たちの顧客基盤の集中は、顧客の財務状態に関連するリスクを増加させ、単一の顧客の財務状態の悪化やその義務の履行失敗は、私たちの業績やキャッシュフローに重大かつ悪影響を及ぼす可能性があります。顧客が流動性の制約を受ける程度によって、私たちは不良債権費用を負担する可能性があり、これは私たちの業績に大きな影響を及ぼす可能性があります。主要な顧客は、私たちにとってあまり好ましくない価格、支払い、知的財産権に関する条件やその他の商業条件を求める可能性があり、これは私たちのビジネス、キャッシュフロー、売上高、粗利に悪影響を及ぼす可能性があります。
サプライチェーンの混乱、製造の中断や遅延、または顧客の需要を正確に予測できないことが、顧客の需要に応える能力に影響を及ぼし、コストが上昇したり、余剰または過剰在庫が発生する可能性があります。
私たちのビジネスは、顧客の変化するニーズに応えるために製品やサービスをタイムリーに供給することに依存しており、そのためには供給者や代理工メーカーからの部品、材料、サービスのタイムリーな納品が部分的に依存しています。製品に対する需要の増加や、半導体チップや電子機器の世界的な需要は、供給者が私たちの需要要件に応える能力に影響を与える可能性があり、過去にはその結果として、また時折そのような結果が生じて、私たちの製品を製造するために必要な部品、材料、サービスの不足を引き起こしました。このような不足や、交通機関の中断による出荷の遅れや予測不可能性は、私たちの製造業務や顧客の需要に応える能力に悪影響を与え、今後もその影響を与え続ける可能性があります。機器に対する需要の変動は、私たちや供給者の資本、技術、運営、その他のリスクを増加させ、いくつかの供給者が事業から撤退したり、規模を縮小したり、操業を停止する原因となる可能性があり、これが私たちの顧客の需要に応える能力に影響を及ぼす可能性があります。サプライチェーンの制約は、私たちの製品の物流や部品のコストを増加させ、結果として私たちが顧客に増加したコストを転嫁せざるを得ない状況を引き起こす可能性があり、これが私たちの製品に対する需要の減少を招き、経営成績に実質的かつ悪影響を与える可能性があります。過去にはサプライチェーンの混乱が、私たちの機器の生産および納品スケジュールに遅延を引き起こし、時折そのような遅延を引き起こす可能性があり、これが私たちのビジネスパフォーマンスを四半期末の生産および納品スケジュールに大きく依存させる要因となり、結果的に私たちの運営および財務成績に悪影響を及ぼす可能性があります。
サイバーセキュリティによるインシデントが当社のサプライヤーに影響を及ぼすと、サプライチェーンに影響が出る可能性があります。このようなインシデントは、当社が製品を製造し、サービスを提供するために必要な部品、材料、サービスを取得する能力に、時折、困難や遅延を引き起こす原因となっており、製造業務、顧客の需要に応える能力、運営結果にも悪影響を及ぼしてきました。また、こうした遅延からタイムリーに回復できない場合、ビジネス、財務状態、業務成績に物質的かつ悪影響を与える可能性があり、ビジネスと財務見通しが不正確になる原因ともなり得ます。
以下の理由により、供給チェーンの混乱、製造オペレーションの重大な中断、製品やサービスの提供または設置能力の遅れ、コストの増加、顧客の注文キャンセル、または当社製品の需要の減少をさらに経験する可能性があります。
グローバルな取引の問題や、取引および輸出規制、取引政策と制裁、関税、国際的な取引の紛争、特に中国への特定の技術の輸出に関するもので、我々のサプライチェーンのかなりの部分が located していること、そして、我々やその直接的なサプライヤーやサブティアサプライヤーに悪影響を与える報復措置についての不確実性がある。
政治的不安定、社会的不満、テロリズム、戦争行為、または中東における紛争のようなその他の地政学的動乱、例えば、我々や顧客、供給者が製造、研究、工学、またはその他の事業を行っている場所において。
16

目次

需要を正確に予測し、コスト効果の高い方法で品質の良い部品を入手することができない、またはそれに失敗すること。
当社の製品に関連する部品、商品、エネルギー、物流の入手可能性とコストの変動、インフレの上昇やInterest Rates、その他の市場環境によるコストの増加を含みます;
必要な輸出入ライセンスや承認を取得する際の困難や遅れ;
交通機関の中断やキャパシティの制約による出荷の遅延;
半導体製品全般の需要の急増により、世界的に半導体部品の不足が発生しています。
既存または提案された規制により使用が制限される材料(例えば、ハイドロフルオロカーボンやペルフルオロアルキル物質)に対する実現可能な代替品の入手可能性が限られており、これらは部品、部品、プロセス化学、および供給されるその他の材料や、私たちの製品の製造や運用に使用されます。
当社の業務または第三者のサプライヤーやサービスプロバイダーにおける情報テクノロジーやインフラ関連の障害、サイバーセキュリティのインシデントによって引き起こされる障害を含む。自然災害、極端な気象現象や慢性的な気象事象(気候変動によって悪化する可能性がある)、または地震、公共事業の中断、津波、ハリケーン、台風、洪水、嵐、火災など、我々の制御を超えたその他の出来事による影響。
地域別またはグローバルな健康の流行。
サプライヤーが品質、コスト、知的財産保護、社会的責任および持続可能なビジネス慣行、その他のパフォーマンス要因に関する当社の要件を満たさない場合や、当社のサプライチェーンに適用される規制要件を満たさない場合、代替の供給先にビジネスを移行する可能性があります。代替サプライヤーへのビジネスの移行は、製造の遅延、追加コスト、その他の困難を引き起こし、当社の知的財産権や、顧客および第三者の知的財産権を保護、行使し、完全な価値を引き出す能力に悪影響を与える可能性があります。これらの結果は、当社のビジネス及び競争力に重大かつ悪影響を及ぼし、法的手続きや請求の対象となる可能性があります。もし特定の部品や部品をサプライヤーから適時に取得できないために、お客様の需要に長期間応えられない場合、当社のビジネス、業績、顧客関係に悪影響を及ぼす可能性があります。
需要に応じてビジネスや製造能力を急速に増加させなければならない場合、これは製造およびサプライチェーンの運営に負担をかけ、運転資本に悪影響を及ぼす可能性があります。製品の需要を正確に予測できない場合、必要以上に多くの部品を購入したり、不足したり、部品の配達をキャンセル、延期、または迅速化するためのコストが発生することがあります。顧客の需要を見越して在庫を購入したり、購入を約束した場合、その需要が実現しない場合や、技術の急速な変化によりその在庫が陳腐化する場合、あるいは顧客が注文を減らしたり、遅延させたり、キャンセルした場合、過剰または陳腐化した在庫費用が発生する可能性があります。
私たちは、私たちが活動する産業に影響を与えるさまざまな要因にさらされています。
グローバルな半導体、ディスプレイおよび関連産業は、当社の製品とサービスの需要や収益性、そして業績に影響を与える要因によって特徴付けられます。これには次のような要因が含まれます:
半導体チップや電子デバイスの需要における変化の性質、タイミング、および可視性の程度は、一般的な経済または地政学的状況、季節性、または新製品の導入に関連する消費関連の購買パターンの変動に起因するものであり、これらの変化が顧客のビジネスおよび私たちの製品の需要に与える影響。
新しい製造工場を建設・運営するための資本要件の増加と、顧客が必要な資本を調達する能力。
取引、規制、税金、または政府のインセンティブが顧客の新しいまたは拡張された製造施設への投資のタイミングに影響を与える。
私たちが事業を展開している半導体、ディスプレイ及びその他の産業における成長率の違い;
顧客との強固な関係を確立し、改善し、維持することの重要性;
製品設計から出来高製造への移行にかかるコストと複雑さは、新しい製造テクノロジーの採用率を遅らせる可能性があります。
製造システムの所有コストを削減する重要性。
システムの信頼性や生産性が顧客にとって重要であり、その生産性、デバイスの歩留まり、信頼性の向上に伴い、製造システムの需要に与える影響について。
製造業者の再構成および再利用可能な製造システムの能力は、新しい機器に対する需要を減少させることができる。
顧客の購買決定に影響を与えるために、十分な差別化を持つ製品を開発することの重要性。
17

Table of Contents

requirements for shorter cycle times for the development, manufacture and installation of our equipment;
price and performance trends for semiconductor devices and displays, and the impact on demand for such products;
the importance of the availability of spare parts to maximize the time that customers’ systems are available for production;
government incentives for local suppliers and domestic semiconductor research and development, and increased investment in manufacturing capabilities;
私たちの製品におけるソフトウェアの役割の増加と複雑性;
製造業の運営に関連するエネルギー使用の削減と環境への影響および持続可能性の向上、ならびに十分で信頼できるエネルギー源の入手可能性に焦点を当てています。
これらの要因に効果的に対処しない場合、ビジネスと業績に重大な悪影響を及ぼす可能性があります。
半導体業種特有の要因にさらされています。
当社の連結売上高と収益性の最大の割合は、半導体システム部門がグローバルな半導体業種向けに半導体チップを製造するために使用される広範囲の機器を販売することから生じており、Applied Global Servicesの売上高の大部分は半導体メーカーへの販売から来ています。半導体業種は、当社の半導体製造機器およびサービス製品の需要と収益性に影響を与える、この業種特有の要因によって特徴付けられています。
テクノロジーの移行と転換の頻度と複雑さ、そしてこれらの変化に迅速かつ効果的に対処し、適応する能力。
研究開発のコストは、縮小する形状、新素材の使用、新しくてより複雑なデバイス構造、より多くのアプリケーションやプロセスステップ、増加するチップ設計費用、統合製造プロセスのコストと複雑さなど、さまざまな要因によって影響を受けている。
製品開発時間を短縮し、技術的な課題に対処する必要性。
半導体の種類とバリエーションの数およびアプリケーションの数;
半導体メーカーがより技術的に高度な能力やより小さな構造を出来高製造に移行するためのコストと複雑さ、及び資本設備への投資に与える影響;
半導体メーカーの資本支出の水準や、リソグラフィなど我々が提供していない市場セグメント、または我々の製品が相対的に市場での存在感が低いセグメントへの資本投資の配分。
顧客に届けられた当社の機器の設置の遅延;
需要が増加しているセグメントにおける市場ポジションの重要性。
半導体メーカーは設備を再構成し再利用する能力があり、その結果、私たちから新しい設備やサービスを購入する必要が減少し、再利用される設備の部品を提供することに困難が生じています。
顧客による注文と製品出荷の間のサイクルタイムが短縮されることは、顧客の投資予測により多く依存することを必要とし、これが在庫の帳消しや製造の非効率を引き起こし、粗利率を低下させる可能性があります。
顧客との開発ツールの記録 (DTOR) および生産ツールの記録 (PTOR) の地位を確保する上での課題を含む、地位を強化することを困難にする競争要因。
半導体業種における統合、半導体製造業者や半導体装置供給業者の間での統合を含む。
コンピュータおよび電子企業による調達戦略の変化、そして高度な回路技術の製造プロセスが、我々のファウンドリー顧客の設備要件に影響を与えます。
韓国と台湾における新しいウェハースタートの集中度では、当社のサービス浸透率とウェハースタートあたりのサービス売上高がその他の地域よりも低くなっています。
半導体市場の断片化が進んでおり、特定の市場は新しい製造工場のコストを支えるには小さすぎる一方、他の市場は技術的に高度な製品を必要としなくなっています。また、参入障壁が低いプロセステクノロジーを使用する特殊市場(IoT関連、通信、自動車、電力、センサーなど)の重要性が引き続きあります。
18

目次

人工知能コンピューティングにおける先進的パッケージングの重要性。
もし主要なテクノロジーの変化や変曲点に対して正確に予測し、適切なリソースと投資を割り当てることができず、新しいテクノロジーに対する需要を満たすために製品を成功裏に開発・商業化し、業種のトレンドに効果的に対処できなければ、ビジネスや業務の結果に重大で悪影響を及ぼす可能性があります。
私たちはディスプレイ業種特有の要因にさらされています。
グローバルなディスプレイ業種は、限られた数のディスプレイ製造業者、エンドユースアプリケーションの集中した性質、エンドユース需要に対する生産能力、新技術の生産への採用速度、パネル製造業者の収益性などに部分的に起因して、資本設備投資レベルでかなりの変動を経験しました。業種の成長は、ますます大きくて高度なテレビへの消費関連の需要、および高度なスマートフォンとモバイルデバイスのディスプレイに対する需要に主に依存しており、その需要はコストや技術の改善、機能の向上に非常に敏感です。ディスプレイ業種は、当社のディスプレイ製品およびサービスの需要や収益性に影響を与える、業種特有の要因によって特徴付けられています。
有機ELや低温多結晶シリコン(LTPS)、金属酸化物トランジスタのバックプレーン、フレキシブルディスプレイ、そして新しいタッチパネルフィルムなどの新しいタイプのディスプレイ技術の重要性について;
研究開発のコストの増加や、テクノロジーの移行と変化の複雑さ、そしてこれらの変化にタイムリーかつ効果的に適応し予測する能力についてのことです;
中国における製造施設の拡張のタイミングと範囲は、経済状況や政府の規制の変化、取引政策や輸出規制を含む影響を受ける可能性があります。
需要の高まる製品や技術において、市場ポジションを強化することの重要性。
テレビ、情報技術製品、モバイルアプリケーション、拡張現実およびVirtual Realityアプリケーションの新しいディスプレイテクノロジーへの移行率、および業種における資本集約度、製品差別化、粗利率、投資収益率への影響。
ディスプレイメーカーの顧客の集中度、そしてディスプレイ製造装置の顧客支出が四半期ごとおよび年ごとに変動することについて。
限られた数のディスプレイ製造業者の顧客の新しいテクノロジーの選択への依存、彼らの新製品やテクノロジーを商業化する能力、そして将来のディスプレイ技術の最終用途アプリケーションや成長要因に関する不確実性。
ディスプレイ業種は、ディスプレイ製造設備への投資が減少しています。新しいおよび新興のディスプレイ技術の需要を満たす製品を成功裏に開発し、市場に投入できなかった場合や、ディスプレイ製造設備および技術に対する業種の需要が増加しない場合、ビジネスおよび業務の結果は引き続き悪影響を受ける可能性があります。
私たちが活動している業界は非常に競争が激しく、急速な技術や市場の変化にさらされています。
私たちは、革新が重要な高度に競争的な環境で業務を行っており、将来の成功は新技術の開発や、当社の設備、サービス、関連製品の効果的な商業化と顧客の受け入れを含む多くの要因に依存しています。また、現在の市場での地位を高め、隣接する新市場に進出し、運営パフォーマンスを最適化する能力も重要です。地理的に多様で競争の激しい環境における製品の開発、導入、レジスタンスには、顧客やその他の業種参加者との協力が必要であり、これは時間とともにより複雑で高価になっています。新しいまたは改良された製品は、より高いコスト、長い開発サイクル、低い利益を伴う可能性があり、予期しない製品の設計または製造欠陥を生じることがあります。成功裏に競争するためには、私たちは以下を実行する必要があります:
テクノロジーの変化、市場の変動、競合の革新、新しいアプリケーション、顧客の要求、そして最終使用者の需要をタイムリーかつ効果的に特定し対応する。
新しい製品や破壊的技術を開発し、既存の製品に対して新しいアプリケーションを改善・開発し、異なる技術要件を持つさまざまなアプリケーションや市場で顧客が使用できるように製品を適応させる。
主要なインフラ関連プロジェクトを予定通り、予算内で完了し、それらのプロジェクトの期待される利益を実現する。
競合他社の製品と当社の製品を差別化し、顧客の性能仕様(エネルギー消費やより広範な環境への影響に関連するものを含む)を満たし、製品の適切な価格設定を行い、市場での受け入れを達成すること。
市場、アプリケーション、顧客の要求の変化に対応するために運用の柔軟性を維持する。
19

目次

ビジネス全体での世界的な業務を強化し、サイクルタイムを短縮し、継続的な品質改善を可能にし、コストを削減し、製造性とサービス性の設計を向上させる。
顧客の高価値の問題に対処し、顧客との関係を強化する製品開発と販売およびマーケティング戦略に焦点を当てる。
既存の製品と市場、新製品の開発、新しいおよび隣接市場への拡大の間で、リソースを効果的に配分する。
R&D活動に投資された資本の生産性を向上させる。
accurately forecast demand, work with suppliers and meet production schedules for our products;
improve our manufacturing processes and achieve cost efficiencies across product offerings;
adapt to changes in value offered by companies in different parts of the supply chain;
qualify products for evaluation and volume manufacturing with our customers; and
implement changes in our design engineering methodology to reduce material costs and cycle time, increase commonality of platforms and types of parts used in different systems, and improve product life cycle management.
If we do not successfully anticipate technology inflections, develop and commercialize new products and technologies, and respond to changes in customer requirements and market trends, our business performance and operating results may be materially and adversely impacted.
We are exposed to risks related to government incentives and other agreements that may involve government entities.
From time to time we enter into agreements with government entities for grants, tax benefits and other incentives, or other funding related to our investment, research and development and production activities, or for sale of our products to government entities or government-funded programs. These agreements typically include terms that are not common in similar agreements with non-governmental entities, including representations and warranties, covenants and certifications, and record-keeping, accounting, audit, intellectual property rights-sharing, information handling, supply chain management, headcount, security, disclosure and other requirements. These agreements may also require us to achieve or maintain certain levels of investment, capital spending and performance milestones. Compliance with these requirements may add complexity to our operations and increase our costs, and a failure to comply could result in cancelation of agreements or transactions, investigations, civil and criminal penalties, forfeiture of profits, reduction, termination or clawback of any funding, suspension or debarment from doing business with the government, or other penalties, any of which could have a material and adverse effect on our business, financial condition and results of operations.
We are exposed to risks associated with expanding into new and related markets and industries.
As part of our growth strategy, we seek to continue to expand into related or new markets and industries, either with our existing products or with new products developed internally, or those developed in collaboration with third parties, or obtained through acquisitions. Our ability to successfully expand our business into new and related markets and industries may be adversely affected by a number of factors, including:
the need to devote additional resources to develop new products for, and operate in, new markets;
the need to develop new sales and technical marketing strategies, and to develop relationships with new customers;
differing rates of profitability and growth among multiple businesses;
our ability to anticipate demand, capitalize on opportunities, and avoid or minimize risks;
the complexity of managing multiple businesses with variations in production planning, execution, supply chain management and logistics;
the adoption of new business models, business processes and systems;
the complexity of entering into and effectively managing strategic alliances or partnering opportunities;
new materials, processes and technologies;
新しい分野においてスキルと専門知識を持つ従業員を引き付け、動機付け、維持する必要性。
新しい多様な顧客やサプライヤー、運営履歴が限られているもの、不確定または限られた資金を持つもの、進化するビジネスモデルを持つもの、または当社の事業がない、もしくは限られている地域に拠点を置くものを含みます;
新しい、または異なる競合他社で、潜在的により多くの財政的またはその他のリソース、業種経験、確立された顧客関係を持っている;
20

目次

さまざまな政府の関与、法律、規制、ビジネス、雇用、安全に関する慣行や要件の異なるレベルで、新しい産業や国への参入;
第三者の知的財産権;および
業種の基準や慣行に従う必要がある、またはそれを確立するために努力すること。
私たちと競合他社による人工知能の使用に関連するリスクにさらされています。
私たちは、テクノロジーの開発やビジネス運営、製品やサービスに人工知能の能力をますます取り入れています。人工知能のテクノロジーは複雑で急速に進化しており、私たちは競争的、法的、規制上、運営上その他の重大なリスクにさらされる可能性があります。人工知能の実装にはコストがかかることがあり、私たちの人工知能の使用がテクノロジーを向上させたり、ビジネス運営に利益をもたらしたり、顧客に好まれる製品やサービスを生み出す保証はありません。競合他社は、人工知能戦略においてより成功し、人工知能テクノロジーを活用して優れた製品やサービスを開発するかもしれません。さらに、人工知能のアルゴリズムやトレーニング手法に欠陥がある可能性があり、データセットには無関係、不十分、または偏った情報が含まれているかもしれず、出力にエラーを引き起こすことがあります。これにより法的責任が生じたり、私たちの評判が損なわれたり、ビジネスに重大な損害を与える可能性があります。私たちの製品やサービスの開発における人工知能の使用は、知的財産の喪失を引き起こす可能性があり、知的財産権の侵害や不正使用、データプライバシー、サイバーセキュリティに関連するリスクにさらされる可能性があります。さらに、人工知能のテクノロジーは倫理的な問題を引き起こす可能性があり、これがそのようなテクノロジーの市場採用を妨げ、私たちの製品やサービスの需要を損なう可能性があります。さらに、アメリカ合衆国や他の国では、人工知能に関連する法律や規制が採用される可能性があります。このような法律や規制は、私たちにより大きな遵守コストを発生させ、製品やサービスの開発における人工知能の使用を制限する可能性があります。私たちがそのような規制要件を遵守できない、または遵守できないと見なされることは、法的責任を負うことになったり、私たちの評判を損なったり、その他の形でビジネスに対して重大かつ悪影響を及ぼす可能性があります。
運営および財務リスク
知的財産権の保護と執行に関連するリスクにさらされています。
私たちの成功は、特許、営業秘密、著作権、その他の知的財産権を用いてテクノロジーを保護することに依存しています。私たちのテクノロジーを無断で使用した設備や予備部品の製造や販売など、知的財産権の侵害や不正取得が行われると、未補償の市場と売上高の機会が失われる可能性があります。知的財産の無断アクセス、使用、または開示を監視し検出することは困難で高額な費用がかかり、私たちが実施した保護措置が完全に誤用を防ぐことができるかどうか確信が持てません。私たちの知的財産権を行使する能力は、訴訟リスクや特定の国でのその権利の保護と執行可能性に対する不確実性に影響されます。私たちが知的財産権を行使しようとすると、その権利が無効または執行不可能であるとの主張を受ける可能性があり、他者が私たちに対して反訴を行うことを求めることもあり、これが私たちのビジネスに悪影響を及ぼす可能性があります。知的財産権の行使と保護ができない場合、またはそれが回避されたり、急速なテクノロジーの変化によって陳腐化されたり、無効とされたり、従業員や第三者によって盗まれたり不正取得されたりする場合、私たちの競争上の地位とビジネスに悪影響を与える可能性があります。知的財産法の変更やその解釈の変更は、私たちの知的財産権を保護し主張する能力に影響を与え、特許出願や関連する執行措置の進行におけるコストや不確実性を増加させ、私たちの知的財産資産が付与する価値や競争優位性を減少させる可能性があります。
時折、第三者が当社および当社の製品に対して知的財産権の主張を行い、今後も行う可能性があります。他者の権利を侵害しているという主張は、実際に妥当であるかどうかにかかわらず、弁護や解決には費用がかかり、時間がかかることがあります。その結果、経営陣やスタッフの努力と注意がそちらに逸れてしまうことがあります。商業的に合理的な条件で第三者の知的財産を使用する権利を取得できないことは、当社のビジネスに悪影響を及ぼす可能性があります。また、第三者の営業秘密やその他の機密ビジネス情報の盗難や不正使用、または開示に基づく主張に直面する可能性もあります。このような事件や主張は、当社のビジネスと評判に重大な損害を与え、 significant expenses につながり、競争上の地位を損ね、特定の製品を販売できなくなる原因となる可能性があります。これらすべてが当社のビジネスと業績に対して重要かつ悪影響を及ぼす可能性があります。
私たちはサイバーセキュリティの脅威や事件にさらされています。
私たちのビジネスの遂行において、情報テクノロジーシステムを使用してデータを収集、使用、送信、保存、その他の処理を行います。このシステムは、私たち自身または私たちの第三者プロバイダーが所有および管理しています。これらのデータには、私たちや私たちの顧客、その他のビジネスパートナーに属する機密情報や知的財産、個人の個人情報が含まれます。全ての情報テクノロジーシステムは、内部および外部のさまざまな要因によって引き起こされる可能性のある停電、停止、故障、セキュリティ侵害またはインシデントの影響を受けます。私たちと私たちの第三者プロバイダーは、サイバーセキュリティのインシデントを経験しており、今後も引き続き経験することが予想されています。サイバーセキュリティのインシデントは、コンピュータシステムまたはネットワークインフラに対する物理的な攻撃から、従業員や契約者によるエラーや誤用、情報の不正使用にまで及ぶことがあります。
21

Table of Contents

technology systems or confidential information, to individual attempts to gain unauthorized access to these information systems, to sophisticated cybersecurity attacks, or advanced persistent threats, any of which may target or impact us directly or indirectly through our third-party providers and global supply chain. Threat actors may also attempt to influence employees, suppliers and other third-party providers, or customers to disclose sensitive information in order to gain access to our, our customers’ or business partners’ data. Cybersecurity attacks are increasing in number and the attackers are increasingly organized and well-financed, or at times supported by state actors. Geopolitical tensions or conflicts, such as Russia’s invasion of Ukraine and increasing tension with China, may create a heightened risk of cybersecurity attacks. To the extent artificial intelligence capabilities improve and are increasingly adopted by threat actors, they may be used to identify vulnerabilities and craft increasingly sophisticated cybersecurity attacks. Artificial intelligence and deepfake technologies could be used to attack information systems by creating more effective phishing emails or social engineering and by exploiting vulnerabilities in electronic security programs utilizing false image or voice recognition. Vulnerabilities, technical errors and other risks may be introduced through the use of artificial intelligence by us, our customers, suppliers and other business partners and third-party providers, or through the use of third-party hardware and software. Although we are not aware of any cybersecurity incidents impacting our information systems that have been determined to have a material impact on us to date, we continue to devote significant resources to network security, data encryption, and other measures to protect our systems and data from unauthorized access or misuse, and we may be required to expend greater resources in the future, especially in the face of evolving and increasingly sophisticated cybersecurity threats and laws, regulations, and other actual and asserted obligations to which we are or may become subject relating to privacy, data protection, and cybersecurity. We may be unable to anticipate, prevent, or remediate future attacks, vulnerabilities, breaches, or incidents, and in some instances we may be unaware of vulnerabilities or cybersecurity breaches or incidents or their magnitude and effects, particularly as attackers are increasingly able to circumvent controls and remove forensic evidence. Cybersecurity incidents, including cybersecurity incidents on third-party provider networks, may result in business disruption; delay in the development and delivery of our products; disruption of our manufacturing processes, internal communications, interactions with customers and suppliers and processing and reporting financial results; the theft or misappropriation of intellectual property; corruption, loss of, or inability to access (e.g., through ransomware or denial of service) confidential information and critical data (i.e., that of our company and our third-party providers and customers); reputational damage; private claims, demands, and litigation or regulatory investigations, enforcement actions, or other proceedings related to contractual or regulatory privacy, cybersecurity, data protection, or other confidentiality obligations; diminution in the value of our investment in research, development and engineering; and increased costs associated with the implementation of cybersecurity measures to detect, deter, protect against, and recover from such incidents. Our efforts to comply with, and changes to, laws, regulations, and contractual and other actual and asserted obligations concerning privacy, cybersecurity, and data protection, including developing restrictions on cross-border data transfer and data localization, could result in significant expense, and any actual or alleged failure to comply could result in inquiries, investigations, and other proceedings against us by regulatory authorities or other third parties. Customers and third-party providers increasingly demand rigorous contractual provisions regarding privacy, cybersecurity, data protection, confidentiality, and intellectual property, which may increase our overall compliance burden.
We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.
We may engage in acquisitions of or investments in companies, technologies or products in existing, related or new markets. Business combinations, acquisitions and investments involve numerous risks to our business, financial condition and operating results, including:
inability to complete proposed transactions timely or at all due to the failure to obtain regulatory or other approvals, including through expanding global national security regimes that impose prohibitions on foreign investments in or acquisitions of local businesses; litigation or other disputes, and any ensuing obligation to pay a termination fee;
経営の注意が逸れ、継続中のビジネスが混乱すること;
取得したビジネスから期待される収益、売上総利益および営業利益、当期純利益、その他のリターンを実現できなかったこと;
取引の審査に関連して政府規制当局が課す要件には、他の事項に加えて、事業の売却や既存のビジネスまたは取得したビジネスの行動に対する制限が含まれる場合があります。
買収の完了後、ビジネス、運営、システム、デジタルおよび物理的セキュリティ、技術、製品、従業員、コンプライアンスプログラム、税法を含む法律や規制の変更、その他の要因が効果的に統合されない場合、期待されるシナジーやその他の利益を実現する能力に影響を及ぼす可能性があります。
取得したビジネスからの技術や戦略的投資を通じて開発された技術の商業化に失敗すること;
知らない供給チェーンや比較的小さな供給パートナーへの依存。
私たちの既存の市場とは大きく異なる可能性がある新市場の特性を活用できず、競合他社がより強力な市場ポジションや顧客関係を持っている可能性がある。
22

目次

取得した事業の重要な従業員を維持し、動機付けできないこと;
提案された取引の発表または完了が第三者との関係に与える影響。
当社の信用格付けの変動は、資本へのアクセスや資本コストに悪影響を及ぼす可能性があります。
取引に関連する活動を資金調達するための債務義務の増加は、利息費用を増加させ、現金残高の減少は、一般的な企業活動やその他の目的、包括してシェアの買戻しや配当のためのキャッシュフローの利用可能性を減少させる。
新しい運営リスク、規則、規制、労働者の期待、慣習および慣行への曝露は、獲得したビジネスが過去にビジネスを行っていない地域に所在する程度まで行われます。
新しく、より多様で広範囲にわたる業務、プロジェクト、そして人々を管理することに関連する課題;
重要な技術における知的財産権を取得し保護することができないこと;
取得した企業の内部財務管理、開示管理および手続き、サイバーセキュリティ、プライバシーポリシーおよびコンプライアンスプログラム、または環境、健康と安全、反腐敗、人事、その他のポリシーまたはプラクティスの不適切さまたは無効性;
変化するビジネス環境、技術の進展、またはセグメントの予想を下回る業績の結果としての取得した無形資産およびのれんの減損;
提案されたまたは完了した取引に関連する訴訟または請求のリスク。
未知の、過小評価された、開示されていない、または発見されていない義務や負債、潜在的な知的財産権侵害の請求、法令や規制、政策への不遵守を含む;そして
ビジネスニーズに対して取得した企業の重要なリソースや施設の不適切な規模。
他の企業、共同事業として形成された企業を含む企業に投資を行いますが、これらの企業は価値が下落したり、望ましい目標を達成できない可能性があります。これらの投資の成功は、私たちが制御できない、または制御が限られているさまざまな要因に依存し、特に共同事業に関しては、パートナーとの継続的で効果的な協力が必要です。さらに、新しい法律、追加の規制、またはグローバルな経済的または政治的条件が、特定の国への投資能力に影響を与えたり損なったりする可能性があり、投資を行うために規制当局の承認を得る必要がある場合もあります。必要な規制の承認を受けることができない場合や、承認に重大な条件や義務が付く場合もあります。私たちの投資ポートフォリオに対するリスクは、不利な金融市場やマクロ経済の状況によって悪化する可能性があり、その結果、投資ポートフォリオの価値に悪影響を及ぼし、減損損失につながる可能性があります。
戦略計画に適合しないと見なされるビジネスの一部を売却しようとすることがあります。売却には、満足のいく価格と条件で、適時、あるいは全く売る能力や、ビジネスの他の部分への混乱や経営者の気を散らすこと、戦略的な買収やその他の戦略的プロジェクトまたはイニシアティブの実行に向けて割り当てられるはずの内部資源の配分、重要な従業員や顧客の喪失、売却されたビジネスと共に移転された重要な知的財産やその他の資産への保持されたビジネスユニットのアクセスの喪失、売却後のビジネスを支援するための予期しない負債や継続的な義務への曝露、及びその他の不利な財務影響といった追加のリスクや不確実性が伴います。
重要な従業員を引き付け、維持し、動機付ける能力は、私たちの成功にとって不可欠です。
私たちの成功は、必要な専門知識と能力を持つ多様なバックグラウンドや経験を代表する資格のある従業員とリーダーを引き付け、維持し、やる気を起こさせる能力に大きく依存しています。この目標を達成することは、グローバルな経済および業種の状況の変動、管理や組織の変更、タレントを求める競争の激化、資格のある従業員の可用性、サービスを提供するために必要な労働者の許可を得る能力、報酬と福利厚生プログラムの魅力、キャリアの成長と発展の機会、雇用政策などの多くの要因により困難かもしれません。資格のある従業員とリーダーを引き付け、維持し、やる気を起こさせることができない場合、現在および新しい市場の機会を十分に活用できない可能性があり、ビジネスや業績に悪影響を及ぼす可能性があります。知識が豊富で経験豊かな従業員の喪失は、予期しないコストや生産性の低下、内部プロセスおよびコントロールに関する困難を引き起こす可能性があります。
複雑で変化する税法が存在する管轄区域で業務を行っています。
当社は、米国および外国の管轄区域において所得税の対象となります。世界的な税負債を判断し、推定するには、重要な判断が必要です。所得税の引当金および実効税率は、適用される税法の変更、適用される税法の解説コメント、異なる税率の管轄区域における税引前利益の金額および構成、ならびに繰延税金資産の評価など、さまざまな要因によって影響を受ける可能性があります。
There have been a number of proposed changes in the tax laws that could have a material impact on our provision for
23

Table of Contents

income taxes and effective tax rate. An increase in our provision for income taxes and effective tax rate could, in turn, have a material and adverse impact on our results of operations and financial condition. For example, several countries where we do business have enacted global minimum tax regimes based on the Organization for Economic Cooperation and Development (“OECD”) Base Erosion and Profit Shifting Project. This will change various aspects of the existing framework under which our global tax obligations are determined, and will unfavorably impact our existing tax incentives and effective tax rate, beginning in fiscal 2025. The OECD continues to release additional guidance on this new global minimum tax framework. We will continue to monitor these developments, as each jurisdiction incorporates changes into its tax laws.
Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. There is risk our conditional reduced tax rates may not be renewed.
Consistent with the international nature of our business, we conduct certain manufacturing, supply chain, and other operations in Asia, bringing these activities closer to customers and reducing operating costs. In some foreign jurisdictions, we must meet certain requirements to continue to qualify for tax incentives. There is no assurance we will be able to meet such requirements in the future to fully realize benefits from these incentives. Furthermore, the proposed plans to implement global minimum tax regimes could reduce or eliminate the benefits of our tax incentives.
We are subject to examination by the U.S. Internal Revenue Service and other tax authorities, and from time to time amend previously filed tax returns. We regularly assess the likelihood of favorable or unfavorable outcomes resulting from these examinations and amendments to determine the adequacy of our provision for income taxes, which requires estimates and judgments. Although we believe our tax estimates are reasonable, there can be no assurance the tax authorities will agree with such estimates. We may have to engage in litigation to achieve the results reflected in the estimates, which may be time-consuming and expensive. There can be no assurance that we will be successful or that any final determination will not be materially different from the treatment reflected in our historical income tax provisions and effective tax rates.
Our indebtedness and debt covenants could adversely affect our financial condition and business.
As of October 27, 2024, we had $6.2 billion in aggregate principal amount of senior unsecured notes outstanding. Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if we experience a change of control and a contemporaneous downgrade of the notes below investment grade. We also have in place a $1.5 billion revolving credit facility. While no amounts were outstanding under this credit facility as of October 27, 2024, we may borrow amounts in the future under this credit facility or enter into new financing arrangements. Our ability to satisfy our debt obligations is dependent upon the results of our business operations and subject to other risks discussed in this section. If we fail to satisfy our debt obligations, or comply with financial and other debt covenants, we may be in default and any borrowings may become immediately due and payable, and such default may constitute a default under our other obligations. There can be no assurance that we would have sufficient financial resources or be able to arrange financing to repay any borrowings at such time. Significant changes in our credit rating, disruptions in the global financial markets, or incurrence of new or refinancing of existing indebtedness at higher interest rates could have a material and adverse impact on our access to and cost of capital for future financings, and financial condition.
Our business depends on the successful implementation and proper functioning of information systems we use.
Our business depends on certain information systems, including, enterprise resource planning, product research and development, financial reporting, information technology network management, and telecommunications. These systems may be maintained by us or by our third-party vendors. Failures of information systems we use could disrupt our operations, impede our ability to timely and accurately process and report financial results, and adversely impact our business, financial condition and results of operations.
We periodically implement new or enhanced information systems. Implementation of new business processes and information systems requires the commitment of significant personnel, training and financial resources, and entails risks to our business operations. If the implementation or improvement of information systems is delayed or unsuccessful, , we may not realize anticipated productivity improvements or cost efficiencies, and may experience interruptions in service and operational difficulties, which could result in quality issues, reputational harm, lost market and revenue opportunities, and otherwise adversely affect our business, financial condition and results of operations.
We may incur impairment charges related to goodwill or long-lived assets.
We have a significant amount of goodwill and other acquired intangible assets related to acquisitions. 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 more frequently when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The review compares the fair value for each of our reporting units to its associated carrying value, including goodwill. Factors that could lead to impairment of goodwill and intangible assets include adverse industry or
24

Table of Contents

economic trends, reduced estimates of future cash flows, declines in the market price of our common stock, changes in our strategies or product portfolio, and restructuring activities. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. We may be required to record future charges to earnings during the period in which an impairment of goodwill or intangible assets is determined to exist.
We may not continue to declare cash dividends or repurchase our shares.
Our ability to continue to pay quarterly dividends and to repurchase our shares is subject to capital availability and periodic determinations by our Board of Directors that cash dividends and share repurchases are in the best interest of our stockholders and are in compliance with applicable laws and agreements. Future dividends and share repurchases may be affected by, among other factors, our cash flow; potential future capital requirements for investments, acquisitions, infrastructure projects, and research and development; changes in applicable tax, corporate, or other laws; contractual restrictions, such as financial or operating covenants in our debt arrangements; and changes to our business model. Our dividend payments and share repurchases may change from time to time, and we cannot provide assurance that we will continue to declare dividends or repurchase shares in any particular amounts or at all. A reduction or suspension in our dividend payments or share repurchases could have a negative effect on the price of our common stock.
Legal, Compliance, and Other Risks
We are exposed to risks related to legal proceedings, claims and investigations.
From time to time we are, and in the future may be, involved in legal proceedings or claims regarding patent infringement, trade secret misappropriation, other intellectual property rights, trade compliance, including import, export and customs, antitrust, environmental regulations, cybersecurity, privacy, data protection, securities, contracts, product performance, product liability, unfair competition, employment, workplace safety, and other matters. We may receive, and have received, inquiries, warrants, subpoenas, and other requests for information in connection with government investigations of potential or suspected violations of law or regulations by our company and/or our employees. For example, we have received subpoenas from government authorities requesting information relating to China customer shipments, export controls compliance, certain federal award applications and information submitted to the federal government. We also on occasion receive notifications from customers who believe we owe them indemnification, product warranty or have other obligations related to claims made against such customers by third parties.
Legal proceedings, claims, and government investigations, whether with or without merit, and internal investigations, may be time-consuming and expensive to prosecute, defend or conduct; divert management’s attention and our other resources; constrain our ability to sell our products and services; result in adverse judgments for damages, injunctive relief, penalties and fines; and negatively affect our business. We cannot predict the outcome of current or future legal proceedings, claims or investigations.
We are exposed to risks related to the global regulatory environment.
We are subject to the laws of the United States and multiple foreign jurisdictions and the rules and regulations of various governing bodies, which may differ among jurisdictions, including those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs), antitrust, cybersecurity, environment (including those relating to sustainability and climate), health and safety, employment, immigration and travel regulations, human rights, privacy, data protection and localization, and anti-corruption. Changing, inconsistent or conflicting laws, rules and regulations, and ambiguities in their interpretation and application create uncertainty and challenges, and compliance with laws, rules and regulations may be onerous and expensive, divert management time and attention from revenue-generating activities, and otherwise adversely impact our business operations. Violations of law, rules and regulations, including, among others, those related to financial and other disclosures, trade (including import and export regulations), antitrust, environment, health and safety, privacy, data protection, and anti-corruption, could result in fines, criminal penalties, restrictions on our business, and damage to our reputation, and could have an adverse impact on our business operations, financial condition and results of operations.
Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.
We periodically communicate our strategies and targets related to sustainability matters, including greenhouse gas emissions, the sustainability of our products, diversity and inclusion, and human rights. These strategies and targets, and their underlying assumptions, reflect our current plans and aspirations, and we may be unable to achieve them. Changing customer and shareholder sustainability expectations, including increasing customer demand for sustainable products, and regulatory requirements, as well as actions taken to achieve our sustainability targets, could cause us to incur substantial expense and alter our manufacturing, operations or equipment designs and processes. Any failure or perceived failure to timely meet these
25

Table of Contents

sustainability requirements, expectations or targets, or a failure to realize the anticipated benefits of planned investments and technology innovations related to sustainability, could adversely impact the demand for our products and subject us to significant costs and liabilities and reputational risks that could in turn adversely affect our business, financial condition and results of operations. In addition, standards and processes for measuring and reporting greenhouse gas emissions and other sustainability metrics may change over time, and may result in inconsistent data, increase our costs, result in significant revisions to our strategies and targets, or impact our ability to achieve them. We also are or may become subject to new climate and sustainability laws and regulations, such as the State of California’s new climate change disclosure rules, the European Union’s Corporate Sustainability Reporting Directive and the United States Securities and Exchange Commission’s rules on climate-related risks. Compliance with such laws and regulations, as well as increased scrutiny from regulators, customers and other stakeholders on our sustainability practices, could result in additional costs and expose us to new risks. Any scrutiny of our greenhouse gas emissions or other sustainability disclosures, our failure to achieve related strategies and targets, or our failure to disclose our sustainability measures consistent with applicable laws and regulations or to the satisfaction of regulators or our stakeholders could negatively impact our reputation or performance.
We are subject to risks associated with environmental, health and safety regulations.
We are subject to environmental, health and safety regulations in connection with our global business operations, including but not limited to: regulations related to the design, manufacture, sale, shipping, import, export and use of our products; use, handling, discharge, recycling, transportation and disposal of hazardous materials used in our products or in producing our products; the operation of our facilities; and the use of our real property, including in connection with construction of our infrastructure projects. The failure or inability to comply with existing or future environmental, health and safety regulations could result in: significant remediation or other legal liabilities; the imposition of penalties and fines; restrictions on the development, manufacture, sale, shipping or use of certain of our products; limitations on the operation of our facilities or ability to use our real property; and a decrease in the value of our real property. We could be required to alter our product design, manufacturing, and operations, and incur substantial expense in order to comply with environmental, health and safety regulations, including reporting requirements. Any failure to comply with these regulations could subject us to significant costs and liabilities that could materially and adversely affect our business, financial condition and results of operations.
26

Table of Contents

Item 1B:      Unresolved Staff Comments
None.

Item 1C:     Cybersecurity
Risk Management and Strategy
We have implemented processes for assessing, identifying and managing material risks from cybersecurity threats as part of our cybersecurity risk management program. This program includes processes for continuous cybersecurity risk and advanced persistent cybersecurity threat monitoring; cybersecurity attack, vulnerability and cloud security management; and penetration testing. Our cybersecurity risk management program includes a cybersecurity incident response plan and escalation protocols; cybersecurity and data protection policies and training to our employees; a supply chain cybersecurity program to increase awareness, assess supplier security controls, help improve supplier security controls and manage security incidents; a program to protect company, customer and supplier intellectual property by operationalizing strategy, policy and awareness; a privacy and data protection program to keep pace with rapidly evolving global data laws and regulations as well as emerging technologies; engagement of third-party auditors to help assure the effectiveness of internal controls, including cybersecurity controls; and partnership with industry groups, government agencies and third-party experts in an effort to continuously improve our cybersecurity risk management program. We conduct assessments based on the National Institute of Standards and Technology Cybersecurity (“NIST”) Framework to evaluate our program, and we engage third-parties for assistance and to independently assess, proactively monitor, and provide an external view of our cybersecurity program. We conduct risk assessments and tabletop exercises to evaluate the effectiveness of our systems and processes in addressing cybersecurity threats, including threats associated with our use of third-party service providers, and to identify areas for improvements. Our cybersecurity risk management program is integrated with our enterprise risk management (“ERM”) program, and information about cybersecurity risks and our cybersecurity risk management program is reviewed as part of our ERM program, sharing common risk governance and reporting processes that apply across our ERM program.
While we are not aware of having directly experienced a cybersecurity incident that has materially impacted our business, financial condition or results of operations, we face risks from cybersecurity threats that, if realized, could reasonably likely materially affect us, our business strategy, results of operations, or financial condition. See “Risk Factors - Operational and Financial Risks – We are exposed to cybersecurity threats and incidents” for additional information about cybersecurity related risks.
Governance
Our Board of Directors is responsible for overseeing the assessment of major risks facing us, and its Audit Committee oversees our ERM program, including oversight of cybersecurity risks and of our cybersecurity risk management program. The Audit Committee receives quarterly reports from management on our cybersecurity risks and cybersecurity risk management program, and our management regularly updates the Chair of the Audit Committee regarding cybersecurity incidents where appropriate in accordance with our cybersecurity incident response plan and escalation protocols. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity, and management reports to the full Board on our cybersecurity risks and cybersecurity risk management program at least annually.
Our management has day-to-day responsibility for assessing and managing material risks from cybersecurity threats, including implementing risk mitigation plans, processes and controls, and managing our cybersecurity risk management program. Our Chief Information Security Officer (“CISO”), who has more than 20 years of experience in information security management, is primarily responsible for managing our cybersecurity risk management program, cybersecurity incident response plan and escalation protocols, and reports at least quarterly to the Audit Committee and at least annually to the full Board on our cybersecurity, data and intellectual property security programs, policies, risks and controls. The CISO reports to our Chief Information Officer (“CIO”), who has more than 30 years of experience in information technology and is responsible for administering secure and scalable security infrastructure. The CIO reports to our Chief Digital Officer, who has more than 37 years of experience in information technology.
Our management team’s efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents are informed by reviews with our information technology security teams, receipt of threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, periodic assessments against the NIST Framework and through alerts and reports produced by security tools deployed in our information technology environment.
27

Table of Contents

Item 2:      Properties
We own and lease facilities throughout the world for use as offices, manufacturing facilities, warehouses, and research and development centers, primarily in the United States, Taiwan, Singapore, China, Israel and India. As of October 27, 2024, we owned and leased approximately 9.0 million square feet and 4.9 million square feet of space, respectively. Our headquarters are in Santa Clara, California. Our products are manufactured primarily in the United States, Singapore, Israel and Taiwan. Because of the interrelation of our operations, properties within a country may be shared by the segments operating within that country.
We also own a total of approximately 279 acres of buildable land primarily in the United States that could accommodate additional facilities.
We consider the properties that we own or lease as adequate to meet our current and future requirements. We regularly assess the size, capability and location of our global infrastructure and periodically make adjustments based on these assessments.

28

Table of Contents

Item 3:      Legal Proceedings
The information set forth under “Legal Matters” in Note 13 of Notes to Consolidated Financial Statements is incorporated herein by reference. See also “Risk Factors – Risks Related to Legal, Compliance, and Other Risks – We are exposed to risks related to legal proceedings, claims and investigations.”
 
Item 4:      Mine Safety Disclosures
None.

29

Table of Contents

PART II

Item 5:      Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information 
Our common stock is traded on the Nasdaq Global Select Market under the symbol AMAT. As of December 6, 2024, there were 2,692 registered holders of our common stock. Information regarding quarterly cash dividends declared on our common stock during fiscal 2024, 2023 and 2022 may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources”.
Performance Graph
The performance graph below shows the five-year cumulative total stockholder return on our common stock during the period from October 27, 2019 through October 27, 2024. This is compared with the cumulative total return of the Standard & Poor’s 500 Stock Index and the PHLX Semiconductor Index over the same period. The comparison assumes $100 was invested on October 27, 2019 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Dollar amounts in the graph are rounded to the nearest whole dollar. The performance shown in the graph represents past performance and should not be considered an indication of future performance.
The graph below assumes that the value of the investment in our common stock and in each of the indexes was $100 at October 27, 2019, and that all dividends were reinvested.
AMAT_2024.jpg

Copyright© 2024 Standard & Poor’s, a division of S&P global. All rights reserved.
 
10/27/201910/25/202010/31/202110/30/202210/29/202310/27/2024
Applied Materials100.00 110.92 250.74 166.02 245.26 351.03 
S&P 500 Index100.00 116.84 157.60 135.57 145.49 208.23 
PHLX Semiconductor Index100.00 145.68 215.80 154.30 207.26 338.18 

30

Table of Contents

Issuer Purchases of Equity Securities
In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program.
The following table provides information as of October 27, 2024 with respect to the shares of common stock repurchased by us during the fourth quarter of fiscal 2024 pursuant to the foregoing Board authorization.
PeriodTotal 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
(July 29, 2024 to August 25, 2024)1.5 $195.93 $292 1.5 $10,030 
Month #2
(August 26, 2024 to September 22, 2024)2.6 $187.33 492 2.6 $9,538 
Month #3
(September 23, 2024 to October 27, 2024)3.5 $191.41 669 3.5 $8,869 
Total7.6 $190.89 $1,453 7.6 
*Amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable.

Item 6:    [Reserved]
31

Table of Contents

Item 7:      Management’s Discussion and Analysis of Financial Condition and Results of Operations
Introduction
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to facilitate an understanding of our business and results of operations. This MD&A should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements included elsewhere in this Form 10-K. The following discussion contains forward-looking statements and should also be read in conjunction with the cautionary statement set forth at the beginning of this Form 10-K.
The following section generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. Discussions of 2023 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended October 29, 2023, filed on December 15, 2023.
 
Overview
We provide equipment, services and software to the semiconductor, display, and related industries. Our customers include manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices. Our customers’ products are used in a wide variety of products such as personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics. Each of our segments is subject to variable industry conditions, as demand for equipment and services can change depending on supply and demand for chips, display technologies and other electronic devices, as well as other factors, such as global economic, political and market conditions, and the nature and timing of technological advances in fabrication processes.
Our strategic priorities include developing products that help solve customers’ challenges at technology inflections; expanding our served market opportunities in the semiconductor and display industries; and growing our service business. Our long-term growth strategy requires continued development of new materials engineering capabilities, including products and platforms that enable expansion into new and adjacent markets. Our significant investments in research, development and engineering (RD&E) are intended to enable us to deliver new products and technologies before the emergence of strong demand, allowing customers to incorporate these products into their manufacturing plans during early-stage technology selection. We collaborate closely with our global customers to design systems and processes to meet their technical and production requirements.
Our future operating results depend to a considerable extent on our ability to maintain a competitive advantage in the equipment and service products we provide. Development cycles depend on whether the product is an enhancement of an existing product, which typically has a shorter development cycle, or a new product, which typically has a longer development cycle. Most of our existing products resulted from internal development activities and innovations involving new technologies, materials and processes. In certain instances, we acquire technologies, either in existing or new product areas, to complement our existing technology capabilities and to reduce time to market. Product development and manufacturing activities occur primarily in the United States, Europe, Israel, and Asia. Our portfolio of equipment and service products are highly technical and are sold primarily through a direct sales force.
We believe that it is critical to make substantial investments in RD&E to assure the availability of innovative technology that meets the current and projected requirements of our customers’ most advanced designs. We have and continue to invest in RD&E in order to continue to offer new products and technologies.
We operate in three reportable segments: Semiconductor Systems, Applied Global Services® (AGS), and Display. A summary of financial information for each reportable segment is found in Note 14 of Notes to Consolidated Financial Statements. A discussion of factors that could affect our operations is set forth under “Risk Factors” in Part I, Item 1A, which is incorporated herein by reference.
Our results are driven primarily by customer spending on capital equipment and services to support key technology transitions or to increase production volume in response to worldwide demand for semiconductors and displays.
32

Table of Contents

The Semiconductor Systems segment is comprised primarily of capital equipment used to fabricate semiconductor chips. Spending by semiconductor customers, which include companies that operate in the foundry, logic, memory, and other semiconductor chip markets, is driven by demand for products such as smartphones, mobile devices, personal computers, servers for artificial intelligence (AI) and data centers, automobiles, clean energy, storage, and other products, and the nature and timing of technological advances in fabrication processes. The growth of data and emerging end-market drivers such as AI, the internet of things, 5G networks, electric and autonomous vehicles and augmented and virtual reality are also creating the next wave of growth for the industry. As a result, products within the Semiconductor Systems segment are subject to significant changes in customer requirements, including transitions to smaller dimensions, increasingly complex chip architectures, new materials and an increasing number of applications. Spending can also depend on customer facility readiness and timeline for installation of capital equipment at customer sites. Development efforts are focused on solving customers’ key technical challenges in patterning, transistor, interconnect, process control, and packaging performance.
The AGS segment provides services, spares and factory automation software to customer fabrication plants globally to help customers optimize performance of our large, global installed base of semiconductor, display and other equipment. The AGS segment also includes 200mm and other equipment, which is shipped to many customers globally that serve the non-leading-edge end markets. Demand for AGS’ service and spares is driven by our large and growing installed base of manufacturing systems, and customers’ needs to shorten ramp times, improve system performance, and optimize factory output and operating costs. Industry conditions that affect AGS’ sales of spares and services are primarily characterized by changes in semiconductor manufacturers’ wafer starts and utilization rates, growth of the installed base of equipment and growing service intensity of newer tools. Our strategy is to continue to shift the AGS’ service and spares business to a subscription agreement model, improving customer factory performance and optimizing operating costs, and providing us a more predictable revenue stream.
The Display segment encompasses products for manufacturing liquid crystal and OLED displays, and other display technologies for TVs, monitors, laptops, personal computers (PC), tablets, smart phones, other consumer-oriented devices, equipment upgrades and solar energy cells. The segment is focused on expanding its presence through technologically-differentiated equipment and products that provide customers with improved performance and yields. Display segment growth depends primarily on consumer demand for increasingly larger and more advanced TVs and high-resolution displays for mobile devices and information technology (IT) products, including laptops, monitors and tablets, as well as new form factors, including thin, light, curved and flexible displays, and new applications such as augmented and virtual reality. The timing of customer investment in manufacturing equipment is also affected by the timing of next-generation process development and of capacity expansion to meet end-market demand.
The Corporate and Other category includes revenues and costs of product sold from other products, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs for certain management, finance, legal, human resource, and RD&E functions performed at the corporate level; and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments severance, asset impairment and any associated charges related to restructuring actions, unless these actions pertain to a specific reportable segment. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation.
The United States government has implemented export regulations for U.S. semiconductor technology sold or provided to customers in China, which have limited our ability to provide certain products and services to customers in China, over the past several years. The U.S. government continues to issue new export licensing requirements, and additional updates and other requirements that have had the effect of further limiting our ability to provide certain products and services to customers outside the U.S., including in China. For a description of these risks, see the risk factor entitled “Business and Industry Risks - Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors” in Part I, Item 1A, “Risk Factors.”

33

Table of Contents

Results of Operations
Our fiscal 2024 and 2023 each contained 52 weeks.
The following table presents certain significant measurements for the periods indicated:
 
 Change
202420232024 over 2023
 
 (In millions, except per share amounts and percentages)
Net revenue$27,176 $26,517 $659 
Gross margin47.5 %46.7 %0.8 points
Operating income$7,867 $7,654 $213 
Operating margin28.9 %28.9 %— points
Net income$7,177 $6,856 $321 
Earnings per diluted share$8.61 $8.11 $0.50 
Net revenue by segment for the periods presented were as follows: 
Change
 202420232024 over 2023
 (In millions, except percentages)
Semiconductor Systems$19,911 73%$19,698 74%%
Applied Global Services6,225 23%5,732 22%%
Display885 3%868 3%%
Corporate and Other155 1%219 1%(29)%
Total$27,176 100%$26,517 100%%

Net revenue for Semiconductor Systems by market for the periods presented were as follows:
 20242023
Foundry, logic and other68 %77 %
Dynamic random-access memory (DRAM)28 %17 %
Flash memory%%
100 %100 %
Net revenue in fiscal 2024 increased as compared to the prior year. Gross margin increased primarily driven by lower material, freight, logistics, and manufacturing costs, favorable changes in customer and product mix and lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024, partially offset by an increase in labor costs.
Semiconductor Systems net revenue increased in fiscal 2024 as compared to the prior year as customers continued to make strategic investments in new capacity and new technology transitions. Foundry and logic customers’ spending decreased driven primarily by lower customer investments in leading-edge manufacturing technologies, partially offset by increased customer investments in non-leading edge manufacturing technologies. Memory customers’ spending in fiscal 2024 was higher due to increased investments in DRAM technology transitions. Investments by semiconductor equipment customers are expected to remain strong with growth in the adoption of high-bandwidth memory and other forms of advanced packaging, continued demand for AI and data center computing, and for non-leading edge nodes. The Semiconductor Systems segment continued to represent the largest contributor of net revenue.
Our AGS net revenue in fiscal 2024 increased primarily due to an increase in net revenue associated with long-term service agreements and customer spending on spares, partially offset by lower customer spending on 200mm equipment. Demand for services is expected to grow as our installed base of systems and chambers increases and customers renew long-term service agreements.
34

Table of Contents

Our Display net revenue increased in fiscal 2024 compared to the prior year primarily due to higher customer investments in display fabrication equipment for IT products including laptops, monitors and tablets, partially offset by lower customer investments in display fabrication equipment for TVs.
Over the longer term, we believe secular drivers such as AI, data center computing, the internet of things, 5G networks, electric and autonomous vehicles and augmented and virtual reality will create the next wave of growth for semiconductors and expand our served market opportunities.
Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows:
Change
 202420232024 over 2023
 (In millions, except percentages)
China$10,117 37%$7,247 27%40 %
Korea4,493 17%4,609 18%(3)%
Taiwan4,010 15%5,670 21%(29)%
Japan2,154 8%2,075 8%%
Southeast Asia1,141 4%758 3%51 %
Asia Pacific21,915 81%20,359 77%%
United States3,818 14%4,006 15%(5)%
Europe1,443 5%2,152 8%(33)%
Total$27,176 100%$26,517 100%%

Net revenue increased from customers in China in fiscal 2024 primarily due to investments in semiconductor equipment and spending on spares and services, partially offset by a decrease in investments in 200mm equipment. Net revenue decreased from customers in Europe primarily due to lower investments in semiconductor equipment. Net revenue from customers in Taiwan decreased primarily due to lower investments in semiconductor equipment and spares, offset by higher spending on services. The changes in net revenue from customers in all other regions for fiscal 2024 primarily reflected changes in investment and spending on semiconductor equipment and services.
Operating Expenses
Operating expenses for the periods presented were as follows:
  Change
 202420232024 over 2023
 (In millions)
Research, development and engineering (RD&E)$3,233 $3,102 $131 
Marketing and selling$836 $776 $60 
General and administrative$961 $852 $109 
The year-over-year change in RD&E expenses was primarily due to additional headcount to support our ongoing investments in product development initiatives, consistent with our growth strategy, offset by lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024. We continued to prioritize existing RD&E investments in technical capabilities and critical RD&E programs in current and new markets, with a focus on the development of new unit process systems and integrated materials solutions. Areas of investment in Semiconductor Systems include etch, deposition, metrology and inspection, patterning, packaging and other technologies to improve chip performance, power, area, cost and time-to-market. In Display, RD&E investments were focused on expanding our market opportunity with new display technologies.
Marketing and selling expenses for fiscal 2024 increased primarily due to additional headcount.
General and administrative expenses in fiscal 2024 increased primarily due to the increases in share-based compensation expense and professional fees.
35

Table of Contents

Interest Expense and Interest and Other Income (expense), net
Interest expense and interest and other income (expense), net for the periods presented were as follows:
 Change
 202420232024 over 2023
 (In millions)
Interest expense$247 $238 $
Interest and other income (expense), net$532 $300 $232 
Interest expense incurred was primarily associated with issued senior unsecured notes. Interest expense in fiscal 2024 increased slightly as a result of the issuance of senior unsecured notes in June 2024.
Interest and other income (expense), net in fiscal 2024 increased primarily driven by higher interest income due to higher cash balances and lower impairment on equity investment, partially offset by higher net loss on equity investment.
Income Taxes
Provision for income taxes and effective tax rates for the periods indicated were as follows:
 Change
 202420232024 over 2023
 (In millions, except percentages)
Provision for income taxes$975 $860 $115 
Effective income tax rate12.0 %11.1 %0.9 points
Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings.
Our effective tax rate for fiscal 2024 was higher than the prior fiscal year primarily due to lower tax credits in fiscal 2024, partially offset by higher proportion of pre-tax income in lower tax jurisdictions in fiscal 2024.
36

Table of Contents

Segment Operating Income
Operating income by segment for the periods presented were as follows: 
Change
 202420232024 over 2023
 (In millions, except percentages and ratios)
Operating income (loss)
Semiconductor Systems$6,981 $6,879 $102 %
Applied Global Services1,812 1,529 283 19 %
Display51 114 (63)(55)%
Corporate and Other(977)(868)(109)13 %
Total$7,867 $7,654 $213 %
Operating margin
Semiconductor Systems35.1 %34.9 %0.2 points
Applied Global Services29.1 %26.7 %2.4 points
Display5.8 %13.1 %(7.3) points
 
Semiconductor Systems’ operating margin for fiscal 2024 increased primarily driven by lower material, freight, logistics and manufacturing costs, favorable changes in customer and product mix and lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024, partially offset by increased RD&E expenses.
AGS’ operating margin for fiscal 2024 increased primarily due to the increase in net revenue and a favorable change in product mix.
Display’s operating margin for fiscal 2024 decreased primarily due to unfavorable changes in product mix.
37

Table of Contents

Recent Accounting Pronouncements
Accounting Standards Not Yet Adopted
Disaggregation of Income Statements Expenses. In November 2024, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve income statement expenses disclosures (Subtopic 220-40). The standard requires more detailed information related to the types of expenses, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each interim and annual income statement’s expense caption, as applicable. This authoritative guidance can be applied prospectively or retrospectively and will be effective for us in fiscal 2028 for annual periods and in the first quarter of fiscal 2029 for interim periods, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures.
Improvements to Income Tax Disclosures. In December 2023, the FASB issued an accounting standard update to improve income tax disclosures (Topic 740). The standard prescribes specific categories for the components of the effective tax rate reconciliation, requires disclosure of income taxes paid by jurisdiction, and modifies other income tax-related disclosures. This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures.
Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280). The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements. This authoritative guidance will be effective for us in fiscal 2025 for annual periods and in the first quarter of fiscal 2026 for interim periods, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures.
Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. We will adopt this guidance in the first quarter of fiscal 2025. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements.
Accounting Standards Adopted
For a description of recently adopted accounting standards, including the date of adoption and the effect, if any, on our consolidated financial statements, see Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements.
38

Table of Contents

Financial Condition, Liquidity and Capital Resources
Our cash, cash equivalents and investments consist of the following:
 
October 27,
2024
October 29,
2023
 (In millions)
Cash and cash equivalents$8,022 $6,132 
Short-term investments1,449 737 
Long-term investments2,787 2,281 
Total cash, cash-equivalents and investments$12,258 $9,150 
Sources and Uses of Cash
A summary of cash provided by (used in) operating, investing, and financing activities is as follows:
 
20242023
 (In millions)
Cash provided by operating activities$8,677 $8,700 
Cash used in investing activities$(2,327)$(1,535)
Cash used in financing activities$(4,470)$(3,032)
Operating Activities
Cash from operating activities for fiscal 2024 was $8.7 billion, which reflects net income adjusted for the effect of non-cash charges and changes in working capital components. Significant non-cash charges included depreciation, amortization, share-based compensation and deferred income taxes. Cash provided by operating activities in fiscal 2024 remained relatively flat primarily due to lower collections of customer receivable balances, partially offset by lower payments to vendors and higher net income.
We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. We sold $0.4 billion and $0.7 billion of accounts receivable during fiscal 2024 and 2023, respectively. We did not discount letters of credit issued by customers in fiscal 2024 and 2023. There was no discounting of promissory notes in each of fiscal 2024 and 2023.
Our working capital was $12.8 billion at October 27, 2024 and $11.8 billion at October 29, 2023.
Days sales outstanding of our accounts receivable at the end of fiscal 2024 and 2023 was 68 days and 70 days, respectively. Days sales outstanding varies due to the timing of shipments and payment terms. The decrease in days sales outstanding was primarily due to favorable revenue linearity.
Investing Activities
We used $2.3 billion and $1.5 billion of cash in investing activities in fiscal 2024 and 2023, respectively. Capital expenditures in fiscal 2024 and 2023 were $1.2 billion and $1.1 billion, respectively. Capital expenditures were primarily for investments in real property acquisitions and improvements, demonstration and testing equipment, manufacturing and network equipment. Purchases of investments, net of proceeds from sales and maturities of investments, for 2024 and 2023 was $1.1 billion and $404 million, respectively. Net cash paid for acquisitions in fiscal 2023 was $25 million. Investing activities also included investments in technology to allow us to access new market opportunities or emerging technologies.
Our investment portfolio consists principally of investment grade money market mutual funds, U.S. Treasury and agency securities, municipal bonds, corporate bonds and mortgage-backed and asset-backed securities, as well as equity securities. We regularly monitor the credit risk in our investment portfolio and take appropriate measures, which may include the sale of certain securities, to manage such risks prudently in accordance with our investment policies.
39

Table of Contents

Financing Activities
We used $4.5 billion of cash in financing activities in fiscal 2024, consisting primarily of repurchases of common stock of $3.8 billion, cash dividends to stockholders of $1.2 billion, tax withholding payments for vested equity awards of $291 million, and net payments of principal on financing leases of $102 million, partially offset by net proceeds received from the issuance of senior unsecured notes of $694 million and proceeds received from common stock issuances of $243 million.
We used $3.0 billion of cash in financing activities in fiscal 2023, consisting primarily of repurchases of common stock of $2.2 billion, cash dividends to stockholders of $975 million and tax withholding payments for vested equity awards of $179 million, offset by proceeds received from common stock issuances of $227 million and net proceeds from issuances of commercial paper of $91 million.
In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program.
During each of fiscal 2024 and 2023 we paid four quarterly cash dividends, totaling $1.2 billion and $975 million, respectively. We currently anticipate that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of our stockholders.
We have credit facilities for unsecured borrowings in various currencies of up to $1.6 billion, of which $1.5 billion is comprised of a committed revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement is scheduled to expire in February 2026, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement includes financial and other covenants with which we were in compliance as of October 27, 2024. No amounts were outstanding under the Revolving Credit Agreement as of October 27, 2024 and October 29, 2023. See Note 9, Borrowing Facilities and Debt, of the Notes to the Consolidated Financial Statements for further discussion related to our Revolving Credit Agreement and other credit facilities.
We have a short-term commercial paper program under which we may from time to time issue unsecured commercial paper notes of up to a total amount of $1.5 billion. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 27, 2024, we had $100 million of commercial paper notes outstanding. The commercial paper program is backstopped by the Revolving Credit Agreement and borrowings under the Revolving Credit Agreement reduce the amount of commercial paper notes we can issue.
In June 2024, we issued $700 million aggregate principal amount of 4.800% senior unsecured notes due 2029 in a registered public offering. The proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes.
We had senior unsecured notes in the aggregate principal amount of $6.2 billion outstanding as of October 27, 2024. See Note 9 of the Notes to the Consolidated Financial Statements for additional discussion of existing debt. We may seek to refinance our existing debt and may incur additional indebtedness depending on our capital requirements and the availability of financing.
Others
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act). The Tax Act requires a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The transition tax expense is payable in installments over eight years, with eight percent due in each of the first five years starting with fiscal 2018. As of October 27, 2024, we had $459 million of total payments remaining, payable in installments in the next two years.
On August 9, 2022, the U.S. government enacted the U.S. CHIPS and Science Act (“CHIPS Act”). The CHIPS Act creates a 25% investment tax credit for certain investments in domestic semiconductor manufacturing. The credit is provided for qualifying property, which is placed in service after December 31, 2022, for which construction begins before January 1, 2027, and is treated as a government grant. We recognize this investment tax credit when there is reasonable assurance that we will qualify for the credit and the benefit will be received. Investments related to the 25% investment tax credit reduced our income taxes payable by $170 million as of October 27, 2024.
On August 16, 2022, the U.S. government enacted the Inflation Reduction Act. The Inflation Reduction Act introduced a new 15% corporate minimum tax, based on adjusted financial statement income of certain large corporations. Applicable corporations are allowed to claim a credit for the minimum tax paid against regular tax in future years. We are subject to the minimum tax in fiscal 2024 and expect to claim a credit for the minimum tax in future years.
40

Table of Contents

Several countries where we do business have enacted global minimum tax regimes based on the Organization for Economic Cooperation and Development (“OECD”) Base Erosion and Profit Shifting Project. This will change various aspects of the existing framework under which our global tax obligations are determined and is expected to increase our tax liabilities beginning in fiscal 2025. The OECD continues to release additional guidance on this new global minimum tax framework. We will continue to monitor these developments, as each jurisdiction incorporates changes into its tax laws.
Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply.
Although cash requirements will fluctuate based on the timing and extent of factors such as those discussed above, our management believes that cash generated from operations, together with the liquidity provided by existing cash balances and borrowing capability, will be sufficient to satisfy our liquidity requirements for the next 12 months. For further details regarding our operating, investing and financing activities, see the Consolidated Statements of Cash Flows in this report.
For details on standby letters of credit, guarantee instruments and other agreements with banks, see Off-Balance Sheet Arrangements below.
41

Table of Contents

Contractual Obligations and Off-Balance Sheet Arrangements
We have certain on-balance sheet and off-balance sheet obligation arrangements to make future payments under various contracts. Certain contractual arrangements which are recorded on our balance sheet include borrowing facilities and debts and lease obligations.
Borrowing Facilities and Debt Obligations
As of October 27, 2024, we had $6.2 billion in aggregate principal amount of senior unsecured notes with varying maturities, of which $700 million is due within 12 months and the remaining notes are due beyond 12 months. Future interest payments associated with these unsecured notes were $2.8 billion, of which $239 million is due within 12 months and the remaining interest payments are due beyond 12 months. See Note 9, Borrowing Facilities and Debt, of the Notes to the Consolidated Financial Statements for further discussion related to our borrowing facilities and debt obligations.
Lease Obligations
As of October 27, 2024, our operating lease obligation was $384 million related to various operating lease arrangements for certain facilities, of which $96 million is payable within 12 months and the remaining amount is payable beyond 12 months.
Purchase Obligations
As of October 27, 2024, we had $8.1 billion of purchase obligations for goods and services, of which $4.2 billion is payable within 12 months and the remaining amount is payable beyond 12 months.
Deemed Repatriation Tax Payable
As of October 27, 2024, we had $459 million of transition tax liability, of which $204 million is payable within 12 months and the remaining amount is payable beyond 12 months. This transition tax liability is associated with the deemed repatriation of accumulated foreign earnings as a result of the enactment of the Tax Act.
Other Long-term Liabilities
We also have the obligation to fund our pension, postretirement and deferred compensation plans. We evaluate the need to make contributions to our pension and postretirement benefit plans after considering the funded status of the plans, movements in the discount rate, performance of the plan assets and related tax consequences. Payments to the plans would be dependent on these factors and could vary across a wide range of amounts and time periods. Payments for deferred compensation plans are dependent on activity by participants, making the timing of payments uncertain. As of October 27, 2024, the total of our future expected benefit payments for the pension plans and the postretirement plan over the next ten fiscal years were $214 million, of which $14 million is payable within 12 months and the remaining amount is payable beyond 12 months.
As of October 27, 2024, the gross liability for unrecognized tax benefits that was not expected to result in payment of cash within one year was $521 million. Interest and penalties related to uncertain tax positions that were not expected to result in payment of cash within one year of October 27, 2024 was $181 million. At this time, we are unable to reliably estimate the timing of payments due to uncertainties in the timing of tax audit outcomes.    
Off-Balance Sheet Arrangements
In the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. These include agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements. We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. See Note 13, Guarantees, Commitments and Contingencies, of the Notes to the Consolidated Financial Statements for further discussion relating to these arrangements.
42

Table of Contents

Critical Accounting Estimates
The preparation of consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported.
Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within our control and will not be known for prolonged periods of time. These uncertainties include those discussed in Part I, Item 1A, “Risk Factors.”
Management believes that the following is a critical accounting estimate:

Income Taxes
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. The calculation of our provision for income taxes and effective tax rate involves significant judgment in estimating the impact of uncertainties in the application of complex and evolving tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our results of operations and financial condition. We recognize a current tax liability for the estimated amount of income taxes payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of events that have been recognized in our financial statements or tax returns. These estimates consider future operational results including realizability of our deferred tax assets. Deferred tax assets and liabilities are adjusted to reflect the effects of enacted changes in tax rates, laws and status, including changes in tax incentives.
43

Table of Contents

Item 7A:       Quantitative and Qualitative Disclosures About Market Risk
We are exposed to financial market risks, including fluctuations in interest rate and foreign currency exchange rates.
Interest Rate Risk
Available-for-sale Debt Securities - The market value of our investments in available-for-sale securities was approximately $3.2 billion at October 27, 2024. An immediate hypothetical 100 basis point increase in interest rates would result in a decrease in the fair value of investments as of October 27, 2024 of approximately $36 million.
Debt - At October 27, 2024, the aggregate principal of long-term senior unsecured notes issued by us was $5.5 billion with an estimated fair value of $5.1 billion. A hypothetical decrease in interest rates of 100 basis points would result in an increase in the fair value of our long-term senior notes issuances of approximately $428 million at October 27, 2024. From time to time, we use interest rate swaps or rate lock agreements to mitigate the potential impact of changes in benchmark interest rates on interest expense and cash flows.
Foreign Currency Risk
Certain of our operations are conducted in foreign currencies, such as Japanese yen, Israeli shekel, euro and Taiwanese dollar. Hedges are used to reduce, but not eliminate, the impact of foreign currency exchange rate movements on the consolidated balance sheet, statement of operations, and statement of cash flows.
We use primarily foreign currency forward contracts to offset the impact of foreign exchange movements on non-U.S. dollar denominated monetary assets and liabilities. The foreign exchange gains and losses on the assets and liabilities are recorded in interest and other income (expense), net and are offset by the gains and losses on the hedges.
We use foreign currency forward and option contracts to hedge a portion of anticipated non-U.S. dollar denominated revenues and expenses expected to occur within the next 24 months. Gains and losses on these hedging contracts generally mitigate the effect of currency movements on our net revenue, cost of products sold, and operating expenses. A hypothetical 10% adverse change in foreign currency exchange rates relative to the U.S. Dollar would result in a decrease in the fair value of these hedging contracts of $141 million at October 27, 2024.
We do not use foreign currency forward or option contracts for trading or speculative purposes.


Item 8:      Financial Statements and Supplementary Data
The consolidated financial statements required by this Item are set forth on the pages indicated at Item 15(a).

Item 9:      Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.

44

Table of Contents

Item 9A:      Controls and Procedures
Disclosure Controls and Procedures
As of the end of the period covered by this report, our management conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting based upon the framework in “Internal Control — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our management concluded that our internal control over financial reporting was effective as of October 27, 2024.
KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this Form 10-K and, as part of the audit, has issued a report, included herein, on the effectiveness of our internal control over financial reporting as of October 27, 2024.
Changes in Internal Control over Financial Reporting
During the fourth quarter of fiscal 2024, there were no changes in the internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations of Disclosure Controls and Procedures and Internal Control over Financial Reporting
It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events.
 
Item 9B:      Other Information
During the three months ended October 27, 2024, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

Item 9C:     Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.

45

Table of Contents

PART III

Item 10:      Directors, Executive Officers and Corporate Governance
Except for the information regarding executive officers required by Item 401 of Regulation S-K (which is included in Part I, Item 1 of this Annual Report on Form 10-K, under “Information about our Executive Officers”), and code of ethics and insider trading policy (which are set forth below), the information required by this item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025.
We have implemented the Standards of Business Conduct, a code of ethics with which every person who works for us and every member of the Board of Directors is expected to comply. If any substantive amendments are made to the Standards of Business Conduct or any waiver is granted, including any implicit waiver, from a provision of the code to our Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer, we will disclose the nature of such amendment or waiver on our website or in a report on Form 8-K. The above information, including the Standards of Business Conduct, is available on our website under the Governance Documents section at https://www.appliedmaterials.com/us/en/about/corporate-governance.html. This website address is intended to be an inactive, textual reference only. None of the materials on, or accessible through, this website is part of this report or is incorporated by reference herein.
We have adopted an Insider Trading Policy governing the purchase, sale, and other dispositions of our securities by our directors, officers, employees and other individuals associated with us that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to us. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.
 
Item 11:      Executive Compensation
The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025.

46

Table of Contents

Item 12:      Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Except for the information regarding securities authorized for issuance under equity compensation plans (which is set forth below), the information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025.
The following table summarizes information with respect to equity awards under our equity compensation plans as of October 27, 2024:
Equity Compensation Plan Information
 
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 holders10   $— 31 (3)
Total10   $— 31   
 
(1)Includes only restricted stock units and performance share units outstanding under our equity compensation plans, as no options, stock warrants or other rights were outstanding as of October 27, 2024.
(2)The weighted average exercise price calculation does not take into account any restricted stock units or performance shares.
(3)Includes 10 million shares of our common stock available for future issuance under the Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan. Of these 10 million shares, 1 million are subject to purchase during the purchase period in effect as of October 27, 2024.
We have the following equity compensation plan that has not been approved by stockholders:
Applied Materials Profit Sharing Scheme. The Applied Materials Profit Sharing Scheme was adopted effective July 3, 1996 and amended from time to time to enable employees of Applied Materials Ireland Limited and its participating subsidiaries to purchase our common stock at 100% of fair market value on the purchase date. Under this plan, eligible employees may elect to forego a certain portion of their base salary and certain bonuses they have earned and that otherwise would be payable in cash to purchase shares of our common stock at full fair market value. Since the eligible employees pay full fair market value for the shares, there is no reserved amount of shares under this plan and, accordingly, the table above does not include any set number of shares available for future issuance under the plan. 
47

Table of Contents

Item 13:      Certain Relationships and Related Transactions, and Director Independence
The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025.
 
Item 14:      Principal Accounting Fees and Services
Our independent registered public accounting firm is KPMG LLP, Santa Clara, California, Auditor Firm ID: 185.
The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025.

48

Table of Contents

PART IV

Item 15:      Exhibits, Financial Statement Schedules
(a) The following documents are filed as part of this Annual Report on Form 10-K:
 
  Page
Number
(1)Financial Statements:
(2)Exhibits:
All other schedules are omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto.


Item 16:      Form 10-K Summary
None.


49

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors
Applied Materials, Inc.:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Applied Materials, Inc. and subsidiaries (the Company) as of October 27, 2024 and October 29, 2023, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 27, 2024, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of October 27, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of October 27, 2024 and October 29, 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended October 27, 2024, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of October 27, 2024 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
50

Table of Contents

Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Evaluation of sufficiency of audit evidence over revenue
As discussed in Notes 1 and 14 to the consolidated financial statements, the Company recorded $27,176 million in net revenue, for the year ended October 27, 2024. The Company generates revenue by providing manufacturing equipment, services and software to customers in the semiconductor, display and related industries. The Company’s process to account for and recognize revenue differs across revenue streams.
We identified the evaluation of the sufficiency of audit evidence obtained over net revenue as a critical audit matter. Evaluating the sufficiency of audit evidence required subjective auditor judgment due to the number of revenue streams and separate processes to account for and recognize revenue. This included determining the nature and extent of audit evidence obtained over each revenue stream.
The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the revenue streams over which procedures were performed as well as the nature and extent of such procedures. For revenue streams where procedures were performed, we:
evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue recognition processes, including the Company’s controls over the accurate recording of revenue.
evaluated the Company’s revenue recognition accounting policies.
evaluated, for a sample of revenue transactions, (1) the accounting for consistency with the Company’s accounting policies, as applicable, including timing of revenue recognition, and (2) the recorded amounts by comparing them for consistency to underlying documentation, including the customer contracts.
In addition, we evaluated the sufficiency of audit evidence obtained by assessing the results of the procedures performed, including the appropriateness of the nature and extent of audit effort over revenue

/S/    KPMG LLP
KPMG LLP
We have served as the Company’s auditor since 2004.
Santa Clara, California
December 13, 2024
51

Table of Contents

APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
 
Fiscal Year202420232022
 
Net revenue$27,176 $26,517 $25,785 
Cost of products sold14,279 14,133 13,792 
Gross profit12,897 12,384 11,993 
Operating expenses:
Research, development and engineering3,233 3,102 2,771 
Marketing and selling836 776 703 
General and administrative961 852 735 
Severance and related charges  (4)
Total operating expenses5,030 4,730 4,205 
Income from operations7,867 7,654 7,788 
Interest expense247 238 228 
Interest and other income (expense), net532 300 39 
Income before income taxes8,152 7,716 7,599 
Provision for income taxes975 860 1,074 
Net income$7,177 $6,856 $6,525 
Earnings per share:
Basic$8.68 $8.16 $7.49 
Diluted$8.61 $8.11 $7.44 
Weighted average number of shares:
Basic827 840 871 
Diluted834 845 877 



See accompanying Notes to Consolidated Financial Statements.
52

Table of Contents

APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
Fiscal Year202420232022
Net income$7,177 $6,856 $6,525 
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale investments43 25 (74)
Change in unrealized net loss on derivative instruments31 (66)51 
Change in defined and postretirement benefit plans(25)26 81 
Other comprehensive income (loss), net of tax49 (15)58 
Comprehensive income$7,226 $6,841 $6,583 
See accompanying Notes to Consolidated Financial Statements.

53

Table of Contents

APPLIED MATERIALS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
 
October 27,
2024
October 29,
2023
ASSETS
Current assets:
Cash and cash equivalents$8,022 $6,132 
Short-term investments1,449 737 
Accounts receivable, net5,234 5,165 
Inventories5,421 5,725 
Other current assets1,094 1,388 
Total current assets21,220 19,147 
Long-term investments2,787 2,281 
Property, plant and equipment, net3,339 2,723 
Goodwill3,732 3,732 
Purchased technology and other intangible assets, net249 294 
Deferred income taxes and other assets3,082 2,552 
Total assets$34,409 $30,729 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt$799 $100 
Accounts payable and accrued expenses4,820 4,297 
Contract liabilities2,849 2,975 
Total current liabilities8,468 7,372 
Long-term debt5,460 5,461 
Income taxes payable670 833 
Other liabilities810 714 
Total liabilities15,408 14,380 
Commitments and contingencies (Note 13)
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; 818 and 833 shares outstanding at 2024 and 2023, respectively
8 8 
Additional paid-in capital9,660 9,131 
Retained earnings49,651 43,726 
Treasury stock: 1,211 and 1,191 shares at 2024 and 2023, respectively
(40,150)(36,299)
Accumulated other comprehensive loss(168)(217)
Total stockholders’ equity19,001 16,349 
Total liabilities and stockholders’ equity$34,409 $30,729 
See accompanying Notes to Consolidated Financial Statements.
54

Table of Contents

APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions, except per share amounts)

 
Common StockAdditional
Paid-In
Capital
Retained
Earnings
Treasury StockAccumulated
Other
Comprehensive
Income (Loss)
Total
SharesAmountSharesAmount
Balance at October 31, 2021892 $9 $8,247 $32,246 1,119 $(27,995)$(260)$12,247 
Net income— — — 6,525 — — — 6,525 
Other comprehensive income (loss), net of tax— — — — — — 58 58 
Dividends declared
($1.02 per common share)
— — — (879)— — — (879)
Share-based compensation— — 413 — — — — 413 
Net issuance under stock plans6 — (67)— — — — (67)
Common stock repurchases(54)(1)— — 54 (6,102)— (6,103)
Balance at October 30, 2022844 $8 $8,593 $37,892 1,173 $(34,097)$(202)$12,194 
Net income— — — 6,856 — — — 6,856 
Other comprehensive income (loss), net of tax— — — — — — (15)(15)
Dividends declared
($1.22 per common share)
— — — (1,022)— — — (1,022)
Share-based compensation— — 490 — — — — 490 
Net issuance under stock plans7 — 48 — — — — 48 
Common stock repurchases(18)— — — 18 (2,202)— (2,202)
Balance at October 29, 2023833 $8 $9,131 $43,726 1,191 $(36,299)$(217)$16,349 
Net income— — — 7,177 — — — 7,177 
Other comprehensive income (loss), net of tax— — — — — — 49 49 
Dividends declared
($1.52 per common share)
— — — (1,252)— — — (1,252)
Share-based compensation— — 577 — — — — 577 
Net issuance under stock plans5 — (48)— — — — (48)
Common stock repurchases(20)— — — 20 (3,851)— (3,851)
Balance at October 27, 2024818 $8 $9,660 $49,651 1,211 $(40,150)$(168)$19,001 




See accompanying Notes to Consolidated Financial Statements.
55

Table of Contents

APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Fiscal Year202420232022
Cash flows from operating activities:
Net income$7,177 $6,856 $6,525 
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization392 515 444 
Severance and related charges  (4)
Deferred income taxes(633)24 (223)
Share-based compensation577 490 413 
Other47 40 36 
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable(69)903 (1,109)
Inventories304 207 (1,590)
Other current and non-current assets287 (48)(16)
Accounts payable and accrued expenses281 (138)390 
Contract liabilities(126)(167)1,039 
Income taxes payable389 (20)(541)
Other liabilities51 38 35 
Cash provided by operating activities8,677 8,700 5,399 
Cash flows from investing activities:
Capital expenditures(1,190)(1,106)(787)
Cash paid for acquisitions, net of cash acquired (25)(441)
Proceeds from sales and maturities of investments2,451 1,268 1,363 
Purchases of investments(3,588)(1,672)(1,492)
Cash used in investing activities(2,327)(1,535)(1,357)
Cash flows from financing activities:
Debt borrowings, net of issuance costs694   
Proceeds from commercial paper401 991  
Repayments of commercial paper(400)(900) 
Proceeds from common stock issuances243 227 199 
Common stock repurchases(3,823)(2,189)(6,103)
Tax withholding payments for vested equity awards(291)(179)(266)
Payments of dividends to stockholders(1,192)(975)(873)
Repayments of principals on finance leases(102)(7) 
Cash used in financing activities(4,470)(3,032)(7,043)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents1,880 4,133 (3,001)
Cash, cash equivalents and restricted cash equivalents — beginning of period6,233 2,100 5,101 
Cash, cash equivalents and restricted cash equivalents — end of period$8,113 $6,233 $2,100 
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents$8,022 $6,132 $1,995 
Restricted cash equivalents included in deferred income taxes and other assets91 101 105 
Total cash, cash equivalents, and restricted cash equivalents$8,113 $6,233 $2,100 
Supplemental cash flow information:
Cash payments for income taxes$957 $1,006 $1,869 
Cash refunds from income taxes$15 $53 $156 
Cash payments for interest$205 $205 $205 
See accompanying Notes to Consolidated Financial Statements.
56


APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1      Summary of Significant Accounting Policies and Recently Adopted Accounting Standards
Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (we, us, and our) after elimination of intercompany balances and transactions. All references to a fiscal year apply to our fiscal year which ends on the last Sunday in October. Fiscal 2024, 2023 and 2022 each contained 52 weeks. Each fiscal quarter of 2024, 2023 and 2022 contained 13 weeks.
Certain prior-year amounts have been reclassified to conform to current-year presentation.
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, we evaluate our estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property, plant and equipment, fair values of share-based awards, warranty, and income taxes, among others. We base our 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.
Cash Equivalents
All highly-liquid investments with a remaining maturity of three months or less at the time of purchase are considered to be cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds and investment grade commercial paper.
Investments
All of our investments, except equity investments, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded in the Consolidated Balance Sheets at fair value, and unrealized gains and losses, net of tax, are reported as a separate component of other comprehensive income. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations.
Our equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market. Privately held equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable price changes are recorded in interest and other income, net in the Consolidated Statements of Operations.
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.
Fair Value Measurements
Our financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Our nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
We use the following 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;
57

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Level 2 — 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.
In determining the fair value of our debt securities investments, we use 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, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices.
Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations.
Inventories
Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required.
Property, Plant and Equipment
Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term.
The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024.
Government Assistance
We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received.
We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate.
58

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Acquisitions
We account for the acquisition of a business using the acquisition method of accounting. Our methodology for allocating the purchase price relating to purchase acquisitions is determined through established and generally accepted valuation techniques. We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process technology, based on their estimated fair values. Goodwill is measured as the excess of the purchase price over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. We assign 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. 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.
Goodwill and Intangible Assets
Goodwill is not amortized but is 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 requires judgment.
When reviewing goodwill for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In performing a qualitative assessment, we consider business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value. If the carrying value of a reporting unit exceeds its fair value, we would record an impairment charge equal to the excess of the carrying value of the reporting unit over its fair value.
In the fourth quarter of fiscal 2024, we performed a qualitative assessment to test goodwill for all of our reporting units for impairment. we determined that it was more likely than not that each of our reporting units’ fair values exceeded their respective carrying values and that it was not necessary to perform the quantitative goodwill impairment test for any of our reporting units. No goodwill impairment was recorded during fiscal 2024, 2023 and 2022.
Intangible assets with finite lives are presented at cost, net of accumulated amortization, and are amortized over their estimated useful lives of 1 to 15 years using the straight-line method. We evaluate the useful lives of our intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. Intangible assets with infinite lives are not subject to amortization and consist primarily of in-process technology, which will be subject to amortization upon commercialization. If an in-process technology project is abandoned, the acquired technology attributable to the project will be written-off. The carrying values of our intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The balances of our intangible assets were not material as of October 27, 2024 or October 29, 2023 and amortization expenses were not material for fiscal 2024, 2023 and 2022.
Long-Lived Assets
Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. We assess the recoverability of the assets by comparing the undiscounted future cash flow expected to result from the use and eventual disposal of the assets to their respective carrying value. If not recoverable, we recognize an impairment loss to the excess of the carrying value over the fair value of those assets, and reduce the carrying value of the assets to their respective fair value. Fair value is determined by available market valuations, when available and appropriate, or by discounted cash flows.
59

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Leases
A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset.
We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due.
A majority of our lease arrangements are operating leases. The balances of our operating leases right-of-use assets and liabilities were not material as of October 27, 2024 or October 29, 2023. Operating lease cost for fiscal 2024, 2023 and 2022 was not material.
Revenue Recognition from Contracts with Customers
We recognize revenue when promised goods or services are transferred to a customer in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We determine revenue recognition through the following five steps: (1) identification of the contract(s) with customers, (2) identification of the performance obligations in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract, and (5) recognition of revenue when, or as, a performance obligation is satisfied.
Identifying the contract(s) with customers. We sell equipment, services, and spare parts directly to our customers in the semiconductor, display, and related industries. We generally consider written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts provided that collection is probable. Collectability is assessed based on the customer’s creditworthiness determined by reviewing the customer’s published credit and financial information, historical payment experience, as well as other relevant factors.
Identifying the performance obligations. Our performance obligations include delivery of equipment, service agreements, spare parts, installation, extended warranty and training. Our service agreements are considered one performance obligation and may include multiple goods and services that we provide to the customer to deliver against a performance metric. Judgment is used to determine whether multiple promised goods or services in a contract should be accounted for separately or as a group.
Determine the transaction price. The transaction price for our contracts with customers may include fixed and variable consideration. We include variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
Allocate the transaction price to the performance obligations. A contract’s transaction price is allocated to each distinct performance obligation identified within the contract. We generally estimate the standalone selling price of a distinct performance obligation based on historical cost plus an appropriate margin. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract.
Recognizing the revenue as performance obligations are satisfied. We recognize revenue from equipment and spares parts at a point in time when we have satisfied our performance obligation by transferring control of the goods to the customer which typically occurs at shipment or delivery. Revenue from service agreements is recognized over time, typically within 12 months, as customers receive the benefits of services.
The incremental costs to obtain a contract are not material.
Payment Terms. Payment terms vary by contract. Generally, the majority of payments are due within a certain number of days from shipment of goods or performance of service. The remainder is typically due upon customer technical acceptance. In certain circumstances we may receive deposits from customers for future deliverables. Our payment terms do not generally contain a significant financing component.
60

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Shipping and Handling Costs
We account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, amounts billed for shipping and handling costs are recorded as a component of net revenue and costs as a component of cost of products sold.
Warranty
Our products are generally sold with a warranty for a 12-month period following installation. Parts and labor are covered under the terms of the warranty agreement. We provide for the estimated cost of warranty when revenue is recognized. Estimated warranty costs are determined by analyzing specific product, current and historical configuration statistics and regional warranty support costs. Our warranty obligation is affected by product and component failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. If actual warranty costs differ substantially from our estimates, revisions to the estimated warranty liability would be required. 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.
We also sell extended warranty contracts to our customers which provide an extension of the standard warranty coverage period of up to 2 years. We receive payment at the inception of the contract and recognizes revenue ratably over the extended warranty coverage period, as the customer simultaneously receives and consumes the benefits of the extended warranty.
Our warranty reserves balances and the components of changes in our warranty reserves were not material for all periods presented.
Sales and Value Added Taxes
Taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Consolidated Statements of Operations.
Research, Development and Engineering Costs
Research, development and engineering costs are expensed as incurred.
Income Taxes
We recognize a current tax liability for the estimated amount of income tax payable on tax returns for the current fiscal year. Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. Deferred tax assets and liabilities are measured based on enacted tax rates that are expected to apply in the period in which the assets are realized or the liabilities are settled. Deferred tax assets and liabilities are adjusted for the effect of a change in tax rates, laws, or status when the change is enacted.
We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are estimated based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Any changes in judgment related to uncertain tax positions are recognized in our provision for income taxes in the quarter in which such change occurs. Interest and penalties related to uncertain tax positions are recognized in our provision for income taxes.
61

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Derivative Financial Instruments
We use financial instruments, such as foreign currency forward and option contracts, to hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions typically expected to occur within 24 months. The purpose of our foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. In certain cases, we also use interest rate swap or lock agreements to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. The terms of derivative financial instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. Our derivative financial instruments are recorded as assets or liabilities at fair value and reported gross on our Consolidated Balance Sheets. However, under master netting agreements in place with our counterparties, we may net settle transactions of the same currency under certain circumstances. For derivative instruments designated and qualifying as cash flow hedges, the gain or loss is reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, and is reclassified into earnings when the hedged transaction affects earnings. Any portion excluded from the assessment of effectiveness is recognized in the same line as the hedged transaction but may be recognized in a different manner, e.g. amortized. If a hedged transaction becomes probable of not occurring according to the original strategy, the hedge relationship is discontinued and we recognize the gain or loss on the associated derivative in earnings. For hedges of existing foreign currency denominated assets or liabilities, the gain or loss is recorded in earnings in the same period to offset the changes in the fair value of the assets or liabilities being hedged.
Foreign Currency
As of October 27, 2024, all of our subsidiaries use the United States dollar as their functional currency. Accordingly, assets and liabilities of these subsidiaries are remeasured using exchange rates in effect at the end of the period, except for non-monetary assets, such as inventories and property, plant and equipment, which are remeasured using historical exchange rates. Foreign currency-denominated revenues and costs are remeasured using average exchange rates for the period, except for costs related to the non-monetary assets and liabilities, which are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in interest and other income, net in the Consolidated Statements of Operations as incurred.
Concentrations of Credit Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable and derivative financial instruments used in hedging activities. We invest in a variety of financial instruments, such as, but not limited to, commercial paper, corporate bonds, municipal securities, United States Treasury and agency securities, and asset-backed and mortgage-backed securities, and, by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. We are exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments but do not expect any counterparties to fail to meet their obligations. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral to secure accounts receivable. We maintain an allowance for potentially uncollectible accounts receivable based on our assessment of the collectability of accounts receivable. We regularly review the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. In addition, we utilize deposits and/or letters of credit to mitigate credit risk when considered appropriate.
Recently Adopted Accounting Standards
Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this authoritative guidance in the first quarter of fiscal 2024 and the impact of the adoption depends on the facts and circumstances of future acquisitions. During fiscal 2024, the adoption of this guidance had no impact to our consolidated financial statements as there were no acquisitions during the year.

62

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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 restricted stock units and employee stock purchase plan shares) outstanding during the period. Our net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to our non-complex capital structure.
 
Fiscal Year202420232022
 (In millions, except per share amounts)
Numerator:
Net income$7,177 $6,856 $6,525 
Denominator:
Weighted average common shares outstanding827 840 871 
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares7 5 6 
Denominator for diluted earnings per share834 845 877 
Basic earnings per share$8.68 $8.16 $7.49 
Diluted earnings per share$8.61 $8.11 $7.44 
Potentially weighted dilutive securities  3 

Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive.
63

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 3      Cash, Cash Equivalents and Investments
Summary of Cash, Cash Equivalents and Investments
The following tables summarize our cash, cash equivalents and investments by security type:
 
October 27, 2024CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
 (In millions)
Cash$1,313 $— $— $1,313 
Cash equivalents:
Money market funds*
3,421 — — 3,421 
Bank certificates of deposit and time deposits90 — — 90 
U.S. Treasury and agency securities1,394 — — 1,394 
Municipal securities19 — — 19 
Commercial paper, corporate bonds and medium-term notes1,785 — — 1,785 
Total cash equivalents6,709 — — 6,709 
Total cash and cash equivalents$8,022 $— $— $8,022 
Short-term and long-term investments:
Bank certificates of deposit and time deposits$13 $ $ $13 
U.S. Treasury and agency securities1,306  2 1,304 
Non-U.S. government securities**
5   5 
Municipal securities441 2 2 441 
Commercial paper, corporate bonds and medium-term notes803 4 2 805 
Asset-backed and mortgage-backed securities656 3 5 654 
      Total fixed income securities3,224 9 11 3,222 
Publicly traded equity securities543 185 5 723 
Equity investments in privately held companies255 58 22 291 
      Total equity investments798 243 27 1,014 
Total short-term and long-term investments$4,022 $252 $38 $4,236 
Total cash, cash equivalents and investments$12,044 $252 $38 $12,258 
 _________________________
*Excludes $91 million of restricted cash equivalents invested in money market funds related to deferred compensation plans.
**Includes Canadian provincial government debt.
64

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
October 29, 2023CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
 (In millions)
Cash$1,417 $— $— $1,417 
Cash equivalents:
Money market funds*
3,260 — — 3,260 
Municipal securities26 — — 26 
Commercial paper, corporate bonds and medium-term notes1,429 — — 1,429 
Total cash equivalents4,715 — — 4,715 
Total cash and cash equivalents$6,132 $— $— $6,132 
Short-term and long-term investments:
Bank certificates of deposit and time deposits$18 $ $ $18 
U.S. Treasury and agency securities381  7 374 
Non-U.S. government securities**
7  1 6 
Municipal securities438  11 427 
Commercial paper, corporate bonds and medium-term notes760  12 748 
Asset-backed and mortgage-backed securities502  15 487 
      Total fixed income securities2,106  46 2,060 
Publicly traded equity securities543 171 16 698 
Equity investments in privately held companies192 78 10 260 
       Total equity investments735 249 26 958 
Total short-term and long-term investments$2,841 $249 $72 $3,018 
Total cash, cash equivalents and investments$8,973 $249 $72 $9,150 
________________________
*Excludes $101 million of restricted cash equivalents invested in money market funds related to deferred compensation plans.
**Includes Canadian provincial government debt.
 
During fiscal 2024, 2023 and 2022, interest income from our cash, cash equivalents and fixed income securities was $486 million, $262 million and $44 million, respectively.

Maturities of Investments
The following table summarizes the contractual maturities of our investments at October 27, 2024:
 
CostEstimated Fair Value
 (In millions)
Due in one year or less$1,405 $1,403 
Due after one through five years1,163 1,165 
No single maturity date*1,454 1,668 
Total$4,022 $4,236 
 _________________________
*Securities with no single maturity date include publicly traded and privately held equity securities and asset-backed and mortgage-backed securities.
 
65

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Gains and Losses on Investments 
At October 27, 2024, gross unrealized losses related to our fixed income portfolio were not material. We regularly review our fixed income portfolio to identify and evaluate investments that have indications of possible impairment from credit losses or other factors. Factors considered in determining whether an unrealized loss is considered to be a credit loss include: the significance of the decline in value compared to the cost basis; the financial condition; credit quality and near-term prospects of the investee; and whether it is more likely than not that we will be required to sell the security prior to recovery. Credit losses related to available-for-sale debt securities are recorded as an allowance for credit losses through interest and other income (expense), net. Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income (loss) (AOCI).
During fiscal 2024, 2023 and 2022, gross realized gains and losses related to our fixed income portfolio were not material.
During fiscal 2024, 2023 and 2022, we did not recognize material credit losses and the ending allowance for credit losses was not material.
The components of gain (loss) on equity investments for each fiscal year were as follows:
202420232022
(In millions)
Publicly traded equity securities
Unrealized gain$332 $193 $30 
Unrealized loss(287)(44)(62)
Realized gain on sales and dividends5 9 7
Realized loss on sales or impairment(1)(4) 
Equity investments in privately held companies
Unrealized gain3 15 41
Unrealized loss(17)(30)(5)
Realized gain on sales and dividends4 9 3
Realized loss on sales or impairment(19)(121)(7)
Total gain (loss) on equity investments, net$20 $27 $7 
66

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 4      Fair Value Measurements
Assets Measured at Fair Value on a Recurring Basis
The following table presents our fair value hierarchy for our financial assets (excluding cash balances) measured at fair value on a recurring basis:
 
 October 27, 2024October 29, 2023
 Level 1Level 2TotalLevel 1Level 2Total
 (In millions)
Assets:
Available-for-sale debt security investments
Money market funds*$3,512 $ $3,512 $3,361 $ $3,361 
Bank certificates of deposit and time deposits 103 103  18 18 
U.S. Treasury and agency securities2,684 14 2,698 331 43 374 
Non-U.S. government securities 5 5  6 6 
Municipal securities 460 460  453 453 
Commercial paper, corporate bonds and medium-term notes 2,590 2,590  2,177 2,177 
Asset-backed and mortgage-backed securities 654 654  487 487 
Total available-for-sale debt security investments$6,196 $3,826 $10,022 $3,692 $3,184 $6,876 
Equity investments with readily determinable values
Publicly traded equity securities$723 $ $723 $698 $ $698 
Total equity investments with readily determinable values$723 $ $723 $698 $ $698 
Total$6,919 $3,826 $10,745 $4,390 $3,184 $7,574 
 _________________________
*Amounts as of October 27, 2024 and October 29, 2023 include $91 million and $101 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Balance Sheets.
We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 27, 2024 or October 29, 2023.
Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis
Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies, included in the above table, were not material during fiscal 2024 and 2022 and were $121 million during fiscal 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Statement of Operations.
Other
The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, commercial paper notes, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At October 27, 2024, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion, and the estimated fair value was $5.1 billion. At October 29, 2023, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $4.7 billion. The estimated fair value of long-term senior unsecured notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 9 of the Notes to the Consolidated Financial Statements for further detail of existing debt.
67

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 5      Derivative Instruments and Hedging Activities
Derivative Financial Instruments
We conduct business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, Israeli shekel, euro and Taiwanese dollar. We use derivative financial instruments, such as foreign currency forward and option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically within the next 24 months. The purpose of our 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.
We do not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge accounting treatment are recognized currently in earnings. All of our 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 foreign exchange derivatives 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 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 foreign exchange derivative instruments included in AOCI at October 27, 2024 is expected to be reclassified into earnings within 12 months. Changes in fair value caused by changes in time value of option contracts designated as cash flow hedges are excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. If the transaction being hedged is probable not to occur, we recognize the gain or loss on the associated financial instrument in the consolidated statement of operations. The amount recognized due to discontinuance of cash flow hedges that were probable of not occurring by the end of the originally specified time period was not significant for fiscal years 2024, 2023 or 2022.
Foreign currency forward contracts are generally used to hedge certain foreign currency denominated assets or liabilities. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged.
As of October 27, 2024 and October 29, 2023, the total outstanding notional amount of foreign exchange contracts was $2.0 billion and $1.7 billion, respectively. The fair values of foreign exchange derivative instruments at October 27, 2024 and October 29, 2023 were not material.
We are also exposed to interest rate risk associated with our potential future borrowings. During fiscal 2024, we entered into a series of interest rate contracts to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt in June 2024.
The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments were not material for fiscal year 2024, 2023 and 2022.
The effects of derivative instruments, both those designated as cash flow hedges and those that are not designated, on the Consolidated Statements of Operations were not material for fiscal 2024, 2023 and 2022.
Credit Risk Contingent Features
If our credit rating were to fall below investment grade, we 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 October 27, 2024 and October 29, 2023.
Entering into derivative contracts with banks exposes us to credit-related losses in the event of the banks’ nonperformance. However, our exposure is not considered significant.

68

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 6      Accounts Receivable, Net
We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements.
We sold $0.4 billion, $0.7 billion and $1.0 billion of accounts receivable during fiscal 2024, 2023 and 2022, respectively. We did not discount letters of credit issued by customers in fiscal 2024, 2023 and 2022. There was no discounting of promissory notes in each of fiscal 2024, 2023 and 2022. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Statements of Operations and were not material for all years presented.
We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues we have identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to us or its payment trends, may require us to further adjust our estimates of the recoverability of amounts due to us. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations.
The balances of allowance for credit losses and changes in allowance for credit losses were not material for fiscal 2024, 2023 and 2022.
 We sell our products principally to manufacturers within the semiconductor and display industries. While we believe that our allowance for credit losses is adequate and represents our best estimate as of October 27, 2024, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to our estimates.

Note 7      Contract Balances and Performance Obligations
Contract Assets and Liabilities
Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.
Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized.
Contract balances at the end of each reporting period were as follows:
October 27, 2024October 29, 2023
(In millions)
Contract assets$269 $274 
Contract liabilities$2,849 $2,975 
The decrease in contract assets during fiscal 2024, was primarily due to a reduction in goods transferred to customers where payment was conditional upon technical sign off.
During fiscal 2024, we recognized revenue of approximately $2.7 billion related to contract liabilities at October 29, 2023. This reduction in contract liabilities was partially offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of October 27, 2024.
There were no credit losses recognized on our accounts receivables and contract assets during fiscal 2024 and 2023.
69

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Performance Obligations
As of October 27, 2024, the amount of remaining unsatisfied performance obligations on contracts, primarily consisting of written purchase orders received from customers, with an original estimated duration of one year or more was approximately $3.7 billion, of which approximately 62% is expected to be recognized within 12 months and the remainder is expected to be recognized within the following 24 months thereafter.
New export rules and regulations issued in December 2024 are expected to have an immaterial impact on remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more.
We have elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less.

Note 8      Balance Sheet Detail
 
October 27,
2024
October 29,
2023
 (In millions)
Inventories
Customer service spares$1,742 $1,589 
Raw materials1,680 1,653 
Work-in-process879 997 
Finished goods
Deferred cost of sales217 413 
Evaluation inventory459 423 
Manufactured on-hand inventory444 650 
Total finished goods1,120 1,486 
Total inventories$5,421 $5,725 
 
October 27,
2024
October 29,
2023
 (In millions)
Other Current Assets
Prepaid income taxes and income taxes receivable$120 $412 
Prepaid expenses and other974 976 
$1,094 $1,388 

Useful LifeOctober 27,
2024
October 29,
2023
 (In years)(In millions)
Property, Plant and Equipment, Net
Land and improvements$492 $393 
Buildings and improvements
3-30
2,359 2,194 
Demonstration and manufacturing equipment
5-8
2,578 2,353 
Furniture, fixtures and other equipment
3-5
782 762 
Construction in progress898 672 
Gross property, plant and equipment7,109 6,374 
Accumulated depreciation(3,770)(3,651)
$3,339 $2,723 
 
Depreciation expense was $346 million, $471 million and $404 million for fiscal 2024, 2023 and 2022, respectively.

70

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
October 27,
2024
October 29,
2023
(In millions)
Deferred Income Taxes and Other Assets
Non-current deferred income taxes$2,393 $1,729 
Operating lease right-of-use assets375 370 
Finance lease right-of-use assets 108 
Income tax receivables and other assets314 345 
$3,082 $2,552 

October 27,
2024
October 29,
2023
 (In millions)
Accounts Payable and Accrued Expenses
Accounts payable$1,570 $1,478 
Compensation and employee benefits1,188 1,024 
Warranty364 332 
Dividends payable327 267 
Income taxes payable535 282 
Operating lease liabilities, current87 84 
Finance lease liabilities, current 102 
Other749 728 
$4,820 $4,297 
 
October 27,
2024
October 29,
2023
 (In millions)
Other Liabilities
Defined and postretirement benefit plans$142 $126 
Operating lease liabilities, non-current259 252 
Other409 336 
$810 $714 
Government Assistance
Capital expenditure related incentives reduced gross property, plant and equipment, net by $479 million as of October 27, 2024. Contra-depreciation expense was not material in fiscal 2024. Operating incentives recognized as a reduction to research, development and engineering expense was $38 million in fiscal 2024. Capital expenditure related incentives reduced our income taxes payable by $170 million as of October 27, 2024, of which $159 million is in accounts payable and accrued expenses and $11 million is in deferred income taxes and other assets, in our Consolidated Balance Sheets.

71

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 9      Borrowing Facilities and Debt
Revolving Credit Facilities
In February 2020, we entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which we may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2026, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by us, plus an applicable margin, which varies according to our public debt credit ratings.
No amounts were outstanding under the Revolving Credit Agreement as of October 27, 2024 and October 29, 2023.
In addition, we have revolving credit facilities with Japanese banks pursuant to which we may borrow up to approximately $52 million in aggregate at any time. Our 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. As of October 27, 2024 and October 29, 2023, no amounts were outstanding under these revolving credit facilities.
Short-term Commercial Paper
We have a short-term commercial paper program under which we may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 27, 2024, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.06% and maturities of 63 days, and as of October 29, 2023, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.39% and maturities of 90 days.
Senior Unsecured Notes
In June 2024, we issued $700 million aggregate principal amount of 4.800% senior unsecured notes due 2029 in a registered public offering. The proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes.
Debt outstanding as of October 27, 2024 and October 29, 2023 was as follows:
 
Principal Amount
October 27,
2024
October 29,
2023
Effective
Interest Rate
Interest
Pay Dates
 (In millions)  
Current portion of long-term debt:
3.900% Senior Notes Due 2025
$700 $ 3.944%April 1, October 1
Total current portion of long-term debt$700 $ 
Long-term debt:
3.900% Senior Notes Due 2025
$ $700 3.944%April 1, October 1
3.300% Senior Notes Due 2027
1,200 1,200 3.342%April 1, October 1
4.800% Senior Notes Due 2029
700  4.844%June 15, December 15
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(10)(11)
Total unamortized debt issuance costs(30)(28)
Total long-term debt$5,460 $5,461 
72

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 10      Stockholders’ Equity, Comprehensive Income and Share-Based Compensation
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows:
Unrealized Gain (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal
(In millions)
Balance at October 31, 2021
$(1)$(103)$(169)$13 (260)
Other comprehensive income (loss) before reclassifications(60)100 71  111 
Amounts reclassified out of AOCI(14)(49)10  (53)
Other comprehensive income (loss), net of tax(74)51 81  58 
Balance at October 30, 2022
$(75)$(52)$(88)$13 $(202)
Other comprehensive income (loss) before reclassifications16 (44)17  (11)
Amounts reclassified out of AOCI9 (22)9  (4)
Other comprehensive income, net of tax25 (66)26  (15)
Balance at October 29, 2023
$(50)$(118)$(62)$13 $(217)
Other comprehensive income (loss) before reclassifications34 28   62 
Amounts reclassified out of AOCI9 3 (25) (13)
Other comprehensive income (loss), net of tax43 31 (25) 49 
Balance at October 27, 2024
$(7)$(87)$(87)$13 $(168)
The tax effects on net income of amounts reclassified from AOCI were not material for the fiscal 2024, 2023 and 2022.
In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program.
The following table summarizes our stock repurchases, including excise tax, for each fiscal year:
202420232022
 (In millions, except per share amounts)
Shares of common stock repurchased20 18 54 
Cost of stock repurchased (including excise tax)*$3,851 $2,202 $6,103 
Average price paid per share (including excise tax)*$190.27 $123.63 $113.84 
Cost of stock repurchased (excluding excise tax)$3,823 $2,189 $6,103 
Average price paid per share (excluding excise tax)$188.87 $122.89 $113.84 
(*) Effective January 1, 2023, stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable.
We record treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If we reissue treasury stock at an amount below our acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.
73

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Dividends
During fiscal 2024, our Board of Directors declared one quarterly cash dividend of $0.32 per share and three quarterly cash dividends of $0.40 per share. During fiscal 2023, our Board of Directors declared one quarterly cash dividend of $0.26 per share and three quarterly cash dividends of $0.32 per share. During fiscal 2022, our Board of Directors declared one quarterly cash dividend of $0.24 per share and three quarterly cash dividends of $0.26 per share. Dividends paid during fiscal 2024, 2023 and 2022 amounted to $1.2 billion, $975 million and $873 million, respectively. We currently anticipate that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of our stockholders.
Share-Based Compensation
We have a stockholder-approved equity plan, the Employee Stock Incentive Plan (ESIP), which permits grants to employees of share-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control. In addition, we have an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase our common stock.
We recognized share-based compensation expense related to equity awards and ESPP shares. The effect of share-based compensation on the results of operations and the related tax benefits for each fiscal year were as follows:
 
202420232022
 (In millions)
Cost of products sold$134 $180 $147 
Research, development, and engineering219 179 151 
Marketing and selling72 55 49 
General and administrative152 76 66 
Total share-based compensation$577 $490 $413 
Income tax benefits recognized$73 $63 $51 
The cost associated with share-based awards is typically recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. However, in the case of share-based awards granted to certain members of senior management that allow for partial accelerated vesting in the event of a qualifying retirement based on age and years of service, the compensation expense is recognized once the individual meets the conditions for a qualifying retirement. We calculate estimated forfeiture rate on an annual basis, based on historical forfeiture activities. The cost associated with performance-based equity awards, which include performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal.
At October 27, 2024, we had $911 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards under the ESIP and shares issued under the ESPP, which will be recognized over a weighted average period of 2.4 years. At October 27, 2024, there were 21 million shares available for grant of share-based awards under the ESIP, and an additional 10 million shares available for issuance under the ESPP.
Stock Options
Stock options are rights to purchase, at future dates, shares of our common stock. There were no stock options granted during fiscal 2024, 2023 and 2022 and no outstanding stock options at the end of fiscal 2024.
74

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Restricted Stock Units, Restricted Stock, Performance Share Units and Performance Units
Restricted stock units are converted into shares of our common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of our common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance share units and performance units are awards that result in a payment to a grantee, generally in shares of our common stock on a one-for-one basis, if performance goals, market goals and/or other vesting criteria are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance share units and performance units typically vest over three to four years and vesting is usually subject to the grantee’s continued service with us and, in some cases, achievement of specified performance and/or market goals.
The compensation expense related to share-based awards subject solely to time-based vesting requirements (Service-Based Awards) is determined using the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of grant, or if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date.
During fiscal 2024, 2023 and 2022, certain members of senior management were granted awards that are subject to the achievement of certain levels of specified performance and market goals, in addition to time-based vesting requirements (Performance Based-Awards). These Performance-Based Awards are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor’s 500 Index. Each of these two metrics will be weighted 50% and will be measured over a three-year period. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by us through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial vesting based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement.
The fair value of the portion of the Performance-Based Awards subject to targeted levels of relative TSR is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures.
The fair value of the portion of the Performance-Based Awards subject to targeted levels of adjusted operating margin is estimated on the date of grant based on the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of the grant or, if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures.
75

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following tables summarize the assumptions used for the valuation of share-based awards for the periods presented:
202420232022
Service-Based Awards and the portion of Performance-Based Awards subject to performance goals:
Grant date market value
$148.39 - $241.26
$104.22 - $143.97
$74.62 - $157.29
Risk-free interest rate
3.48% - 5.37%
3.64% - 5.48%
0.16% - 4.48%
Dividend yield
0.72% - 2.62%
0.70% - 3.59%
0.47% - 3.83%
Fair value
$144.79 - $237.94
 $102.09 - $141.33
 $72.24 - $154.88
202420232022
Portion of Performance-Based Awards subject to market goals:
Grant date market value
$148.39 - $173.89
$109.37
$146.49
Risk-free interest rate
4.24% - 4.30%
4.10%
0.87%
Dividend yield
0.74% - 0.86%
0.95%
0.66%
Expected volatility
40.99% - 43.35%
52.38%
47.35%
Fair value
$195.32 - $249.37
$162.72
$210.69

A summary of the changes in restricted stock units, restricted stock, performance share units and performance units outstanding under our equity compensation plans during fiscal 2024 is presented below:
SharesWeighted
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 share units and performance units at October 29, 2023
12 $106.24 
Granted4 $149.20 
Vested(5)$97.50 
Canceled(1)$120.91 
Non-vested restricted stock units, restricted stock, performance share units and performance units at October 27, 2024
10 $129.31 2.3 years$1,931 
Non-vested restricted stock units, restricted stock, performance share units and performance units expected to vest10 $130.71 2.2 years$1,903 
At October 27, 2024, 0.7 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance and/or market goals.
A summary of the weighted-average grant date fair value per share of the granted restricted stock units, restricted stock, performance share units and performance units and total fair value vested awards for indicated periods is presented below:
202420232022
(In millions, except per share amounts)
Weighted average grant date fair value per share of awards granted$149.20 $104.00 $132.44 
Total fair value of vested awards$527 $367 $285 

76

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Employee Stock Purchase Plans
Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of our common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Our purchasing cycles began in March and September of each of fiscal 2024, 2023 and 2022. We issued 2 million shares in fiscal 2024 at a weighted average price of $147.38 per share, 2 million shares in fiscal 2023 at a weighted average price of $87.75 per share and 2 million shares in fiscal 2022 at a weighted average price of $93.30 per share, under the ESPP. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:
 
202420232022
ESPP:
Dividend yield0.82 %0.98 %0.97 %
Expected volatility40.1 %39.4 %46.8 %
Risk-free interest rate5.03 %5.29 %2.24 %
Expected life (in years)0.50.50.5
Weighted average estimated fair value$52.31$35.31$30.23

Note 11      Employee Benefit Plans
Employee Bonus Plans
We have various employee bonus plans. A discretionary bonus plan provides for the distribution of a percentage of pre-tax income to our employees who are not participants in other performance-based incentive plans, up to a maximum percentage of eligible compensation. Other plans provide for bonuses to our executives and other key contributors based on the achievement of profitability and/or other specified performance criteria. Charges under these plans for fiscal 2024, 2023 and 2022 were $837 million, $702 million and $623 million, respectively.
Defined Benefit Pension Plans of Foreign Subsidiaries and Other Postretirement Benefits
Several of our foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Benefits under these plans are typically based on years of service and final average compensation levels. The plans are managed in accordance with applicable local statutes and practices. We deposit funds for certain of these plans with insurance companies, pension trustees, government-managed accounts, and/or accrue the expense for the unfunded portion of the benefit obligation on our Consolidated Financial Statements. Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements as established by applicable local governmental oversight and taxing authorities. Depending on the design of the plan, local custom and market circumstances, the liabilities of a plan may exceed the qualified plan assets. The differences between the aggregate projected benefit obligations and aggregate plan assets of these plans have been recorded as liabilities by us and are included in other liabilities and accrued expenses in the Consolidated Balance Sheets. The net funded status and periodic benefit cost were not material for fiscal 2024, 2023 and 2022.
Our investment strategy for our defined benefit plans is to invest plan assets in a prudent manner, maintaining well-diversified portfolios with the long-term objective of meeting the obligations of the plans as they come due. Asset allocation decisions are typically made by plan fiduciaries with input from our international pension committee. Our asset allocation strategy incorporates a sufficient equity exposure in order for the plans to benefit from the expected better long-term performance of equities relative to the plans’ liabilities. We retain investment managers, where appropriate, to manage the assets of the plans. Performance of investment managers is monitored by plan fiduciaries with the assistance of local investment consultants. The investment managers make investment decisions within the guidelines set forth by plan fiduciaries. Risk management practices include diversification across asset classes and investment styles, and periodic rebalancing toward target asset allocation ranges. Investment managers may use derivative instruments for efficient portfolio management purposes.
Asset return assumptions are derived based on actuarial and statistical methodologies, from analysis of long-term historical data relevant to the country in which each plan is in effect and the investments applicable to the corresponding plan. The discount rate for each plan was derived by reference to appropriate benchmark yields on high quality corporate bonds, allowing for the approximate duration of both plan obligations and the relevant benchmark yields. 
77

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Executive Deferred Compensation Plans
We sponsor two unfunded deferred compensation plans, the Executive Deferred Compensation Plan (Predecessor EDCP) and the 2016 Deferred Compensation Plan (2016 DCP) (formerly known as the 2005 Executive Deferred Compensation Plan), under which certain employees may elect to defer a portion of their following year’s eligible earnings. The Predecessor EDCP was frozen as of December 31, 2004 such that no new deferrals could be made under the plan after that date and the plan would qualify for “grandfather” relief under Section 409A of the Code. The Predecessor EDCP participant accounts continue to be maintained under the plan and credited with deemed interest. The 2016 DCP was originally implemented by us effective as of January 1, 2005, and amended and restated as of October 12, 2015, and is intended to comply with the requirements of Section 409A of the Code. In addition, we also sponsor a non-qualified deferred compensation plan as a result of a previous acquisition. Amounts payable for all plans, including accrued deemed interest, totaled $357 million and $245 million at October 27, 2024 and October 29, 2023, respectively, which were included in other liabilities in the Consolidated Balance Sheets.
Note 12     Income Taxes
The components of income before income taxes for each fiscal year were as follows:
 
202420232022
 (In millions)
U.S.$833 $1,234 $1,171 
Foreign7,319 6,482 6,428 
Total$8,152 $7,716 $7,599 
The components of the provision for income taxes for each fiscal year were as follows:
202420232022
 (In millions)
Current:
U.S.$1,254 $708 $590 
Foreign366 456 275 
State33 54 14 
1,653 1,218 879 
Deferred:
U.S.(697)(255)(62)
Foreign30 (61)265 
State(11)(42)(8)
(678)(358)195 
Total$975 $860 $1,074 
A reconciliation between the statutory U.S. federal income tax rate and our actual effective income tax rate for each fiscal year is presented below:
 
202420232022
Tax provision at U.S. statutory rate21.0 %21.0 %21.0 %
Effect of foreign operations taxed at various rates(7.6)(8.2)(4.4)
Changes in prior years’ unrecognized tax benefits
 (0.2)(0.9)
Resolutions of prior years’ income tax filings
(0.1)(0.1)(0.2)
Research and other tax credits(1.4)(1.6)(1.0)
Other0.1 0.2 (0.4)
Total12.0 %11.1 %14.1 %
78

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings.
Our effective tax rate for fiscal 2024 was higher than fiscal 2023 primarily due to lower tax credits in fiscal 2024, partially offset by higher proportion of pre-tax income in lower tax jurisdictions in fiscal 2024. Our effective tax rate for fiscal 2023 was lower than fiscal 2022 primarily due to a reduction of deferred tax assets that occurred in fiscal 2022, related to a new tax incentive in Singapore.
In the reconciliation between the statutory U.S. federal income tax rate and the effective income tax rate, the effect of foreign operations taxed at various rates represents the difference between an income tax provision at the U.S. federal statutory income tax rate and the recorded income tax provision, with the difference expressed as a percentage of worldwide income before income taxes. This effect is substantially related to the tax effect of pre-tax income in jurisdictions with lower statutory tax rates. The foreign operations with the most significant effective tax rate impact are in Singapore. The statutory tax rate for fiscal 2024 for Singapore is 17%. We have been granted conditional reduced tax rates that expire beginning in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. The tax benefits arising from these tax rates were $393 million or $0.47 per diluted share and $369 million or $0.44 per diluted share and $232 million or $0.26 per diluted share for fiscal 2024, 2023 and 2022, respectively.
Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities. Deferred tax assets are also recognized for net operating loss and tax credit carryovers. Deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. The components of deferred income tax assets and liabilities were as follows: 
October 27,
2024
October 29,
2023
 (In millions)
Deferred tax assets:
Corporate Alternative Minimum Tax$410 $ 
Capitalized R&D expenses217 83 
Allowance for doubtful accounts4 4 
Inventory reserves and basis difference127 125 
Installation and warranty reserves70 35 
Intangible assets977 1,031 
Accrued liabilities24 19 
Deferred revenue72 72 
Tax credits592 536 
Deferred compensation261 217 
Share-based compensation44 50 
Property, plant and equipment101 9 
Lease liability72 98 
Other79 96 
Gross deferred tax assets3,050 2,375 
Valuation allowance(569)(530)
Total deferred tax assets2,481 1,845 
Deferred tax liabilities:
Right of use assets(76)(103)
Undistributed foreign earnings(23)(23)
Total deferred tax liabilities(99)(126)
Net deferred tax assets$2,382 $1,719 
79

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
A valuation allowance is recorded to reflect the estimated amount of net deferred tax assets that may not be realized. Changes in the valuation allowance in each fiscal year were as follows:
202420232022
(In millions)
Beginning balance$530 $460 $361 
Increases39 70 99 
Ending balance$569 $530 $460 
At October 27, 2024, we have state research and development tax credit carryforwards of $592 million, including $553 million of credits that are carried over until exhausted and $35 million that are carried over for 15 years and begin to expire in fiscal 2034. It is more likely than not that all tax credit carryforwards, net of valuation allowance, will be utilized.
We maintain liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored based on the best information available. Gross unrecognized tax benefits are classified as non-current income taxes payable or as a reduction in deferred tax assets. A reconciliation of the beginning and ending balances of gross unrecognized tax benefits in each fiscal year is as follows: 
202420232022
 (In millions)
Beginning balance of gross unrecognized tax benefits$510 $498 $537 
Settlements with tax authorities  (25)
Increases in tax positions for current year25 28 26 
Increases in tax positions for prior years13  28 
Decreases in tax positions for prior years(4)(16)(68)
Ending balance of gross unrecognized tax benefits$544 $510 $498 
Tax expense for interest and penalties on unrecognized tax benefits for fiscal 2024, 2023 and 2022 was $45 million, $34 million and $14 million, respectively. The income tax liability for interest and penalties for fiscal 2024, 2023 and 2022 was $181 million, $136 million and $103 million, respectively, and was classified as non-current income taxes payable.
Included in the balance of unrecognized tax benefits for fiscal 2024, 2023 and 2022 are $397 million, $386 million, and $388 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate.
Our tax returns remain subject to examination by taxing authorities. These include U.S. returns for fiscal 2015 and later years, and foreign tax returns for fiscal 2011 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 part of the settlement process, is highly uncertain. This could cause fluctuations in our financial condition and results of operations. We continue to have ongoing negotiations with various taxing authorities throughout the year, and evaluate all domestic and foreign tax audit issues in the aggregate, along with the expiration of applicable statutes of limitations.
We believe it is reasonably possible that the amount of gross unrecognized tax benefits related to foreign operations could be reduced by approximately $200 million in the next 12 months as a result of the resolution of tax matters or the lapse of statute of limitations.

Note 13     Guarantees, Commitments and Contingencies    
 Guarantees
In the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. As of October 27, 2024, the maximum potential amount of future payments that we could be required to make under these guarantee agreements was approximately $284 million. We have not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. We do 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.
80

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of October 27, 2024, we have provided parent guarantees to banks for approximately $292 million to cover these arrangements.
Legal Matters
From time to time, we receive notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by us in connection with claims made against them. In addition, from time to time, we receive notification from third parties claiming that we may be or are infringing or misusing their intellectual property or other rights. We also are subject to various legal proceedings, government investigations or inquiries, and claims, both asserted and unasserted, that arise in the ordinary course of business. These matters are subject to uncertainties, and we cannot predict the outcome of these matters, or governmental inquiries or proceedings that may occur. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, we do not believe at this time that any of the above-described matters will have a material effect on our consolidated financial condition or results of operations.
Since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and Security, and the U.S. Securities and Exchange Commission. We also have received subpoenas from the U.S. Department of Justice requesting information related to certain federal award applications and information submitted to the federal government. We are cooperating fully with the U.S. government in these matters. We have continued to receive related subpoenas, as well as requests for information, and may in the future receive additional related subpoenas and requests for information from such or other government authorities. Any such matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters.

Note 14      Industry Segment Operations    
Our three reportable segments are: Semiconductor Systems, Applied Global Services (AGS), and Display. As defined under the accounting literature, our 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 our management organization structure as of October 27, 2024 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments.
The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.
The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200mm and other equipment and factory automation software for semiconductor, display and other products.
The Display segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells.
Each operating segment is separately managed and has separate financial results that are reviewed by our 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 our chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information.
We derive the segment results directly from our internal management reporting system. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation. The accounting policies we use 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 revenue and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments.
81

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Corporate and Other category includes revenues and costs of products from other products, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs related to 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, we do not allocate to our reportable segments severance, asset impairment and any associated charges related to restructuring actions, unless these actions pertain to a specific reportable segment. Segment operating income also 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.
Information for each reportable segment for and as of the end of each fiscal year were as follows:
 
Net revenueOperating
Income (Loss)
Depreciation/
Amortization
Capital
Expenditures
Accounts ReceivableInventories
 (In millions)
2024:
Semiconductor Systems $19,911 $6,981 $168 $425 $3,816 $2,988 
Applied Global Services6,225 1,812 22 35 1,297 2,306 
Display885 51 12 29 197 113 
Corporate and Other155 (977)190 701 (76)14 
Total$27,176 $7,867 $392 $1,190 $5,234 $5,421 
2023:
Semiconductor Systems$19,698 $6,879 $235 $381 $3,943 $3,433 
Applied Global Services5,732 1,529 31 39 1,111 2,073 
Display868 114 19 13 184 200 
Corporate and Other219 (868)230 673 (73)19 
Total$26,517 $7,654 $515 $1,106 $5,165 $5,725 
2022:
Semiconductor Systems$18,797 $6,790 $203 $249 $4,924 $3,995 
Applied Global Services5,543 1,555 31 38 997 1,788 
Display1,331 243 31 30 148 129 
Corporate and Other114 (800)179 470 (1)20 
Total$25,785 $7,788 $444 $787 $6,068 $5,932 
Semiconductor Systems and Display revenues are recognized at a point in time. AGS revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements. The majority of revenue recognized over time is recognized within 12 months of the contract inception.
Details of goodwill by reportable segment as of October 27, 2024 and October 29, 2023 were as follows:
 October 27, 2024October 29, 2023
 (In millions)
Goodwill by reportable segment
Semiconductor Systems$2,460 $2,460 
Applied Global Services1,032 1,032 
Display199 199 
Corporate and Other41 41 
$3,732 $3,732 
82

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Net revenue for Semiconductor Systems by market for the periods indicated were as follows:
202420232022
Foundry, logic and other68 %77 %66 %
Dynamic random-access memory (DRAM)28 %17 %19 %
Flash memory4 %6 %15 %
100 %100 %100 %
The reconciling items included in Corporate and Other were as follows:
202420232022
 (In millions)
Unallocated Net revenue$155 $219 $114 
Unallocated cost of products sold and expenses(1,132)(1,087)(918)
Severance and related charges  4 
Total$(977)$(868)$(800)
For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped and services were performed. Long-lived assets consist primarily of property, plant and equipment and right-of-use assets and are attributed to the geographic location in which they are located. Net revenue and long-lived assets by geographic region for and as of each fiscal year were as follows:
 
202420232022
 (In millions)
Net revenue:
United States$3,818 $4,006 $3,104 
China10,117 7,247 7,254 
Korea4,493 4,609 4,395 
Taiwan4,010 5,670 6,262 
Japan2,154 2,075 2,012 
Europe1,443 2,152 1,674 
Southeast Asia1,141 758 1,084 
Total outside United States23,358 22,511 22,681 
Consolidated total$27,176 $26,517 $25,785 


October 27,
2024
October 29,
2023
 (In millions)
Long-lived assets:
United States$3,759 $3,239 
China3 4 
Korea9 11 
Taiwan59 59 
Japan7 7 
Europe113 110 
Southeast Asia5 6 
Total outside United States196 197 
Consolidated total$3,955 $3,436 
83

Table of Contents
APPLIED MATERIALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following customers accounted for at least 10 percent of our Net revenue in each fiscal year, which were for products and services in multiple reportable segments:
202420232022
Samsung Electronics Co., Ltd.12 %15 %12 %
Taiwan Semiconductor Manufacturing Company Limited11 %19 %20 %
Intel Corporation**10 %
___________________________
*Less than 10%
84

Table of Contents

INDEX TO EXHIBITS

These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:
 
Incorporated by Reference
Exhibit No.DescriptionFormFile No.Exhibit No.Filing Date
3.18-K000-069203.13/16/2020
3.28-K000-069203.212/13/2023
4.18-K000-069204.16/10/2011
4.28-K000-069204.26/10/2011
4.38-K000-069204.19/24/2015
4.48-K000-069204.13/31/2017
4.58-K000-069204.15/29/2020
4.610-K000-069204.612/15/2023
4.78-K000-069204.16/11/2024
4.88-K000-069204.26/11/2024
10.110-Q000-0692010.15/23/2024
10.2S-8333-450114.11/27/1998
10.3*
10-Q000-0692010.583/3/2009
10.410-K000-0692010.4812/12/2008
10.510-K000-0692010.4912/12/2008
10.6*
10-Q000-0692010.35/27/2021
10.7*
10-Q000-0692010.45/27/2021
10.8*
10-Q000-0692010.38/23/2012
10.9*
8-K000-0692010.23/16/2021
10.10*
10-Q000-0692010.28/22/2013
85

Table of Contents

Incorporated by Reference
Exhibit No.DescriptionFormFile No.Exhibit No.Filing Date
10.11*
10-Q000-0692010.48/22/2013
10.12*
10-Q000-0692010.22/20/2014
10.13*
10-K000-0692010.1312/15/2023
10.14*10-K000-0692010.1512/16/2022
10.15*
8-K000-0692010.13/16/2021
10.16*
10-K000-0692010.1612/15/2023
10.17*10-K000-0692010.1712/15/2023
10.18*10-K000-0692010.1812/15/2023
10.19*10-Q000-0692010.15/26/2022
10.28-K000-0692010.12/21/2020
10.2110-Q000-0692010.18/25/2022
10.2210-Q000-0692010.12/23/2023
10.2310-Q000-0692010.12/27/2024
19.1
21
23
24
31.1
31.2
32.1
32.2
97.110-K000-0692097.112/15/2023
101.INSXBRL Instance Document‡
86

Table of Contents

Incorporated by Reference
Exhibit No.DescriptionFormFile No.Exhibit No.Filing Date
101.SCHXBRL Taxonomy Extension Schema Document‡
101.CALXBRL Taxonomy Extension Calculation Linkbase Document‡
101.DEFXBRL Taxonomy Extension Definition Linkbase Document‡
101.LABXBRL Taxonomy Extension Label Linkbase Document‡
101.PREXBRL Taxonomy Extension Presentation Linkbase Document‡
104Cover 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.

87

Table of Contents

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
APPLIED MATERIALS, INC.
By:/s/ GARY E. DICKERSON
Gary E. Dickerson
President, Chief Executive Officer
Dated: December 13, 2024

POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Gary E. Dickerson, Brice Hill and Teri Little, jointly and severally, his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.
******
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 TitleDate
/s/ GARY E. DICKERSONPresident, Chief Executive Officer and Director (Principal Executive Officer)December 13, 2024
Gary E. Dickerson
/s/ BRICE HILLSenior Vice President, Chief Financial Officer
(Principal Financial Officer)
December 13, 2024
Brice Hill
/s/ ADAM SANDERSVice President,
Corporate Controller and
Chief Accounting Officer
(Principal Accounting Officer)
December 13, 2024
Adam Sanders
/S/  THOMAS J. IANNOTTI
Thomas J. IannottiChairman of the BoardDecember 13, 2024
/S/   RANI BORKAR
Rani BorkarDirectorDecember 13, 2024
/S/  JUDY BRUNER
Judy BrunerDirectorDecember 13, 2024
/S/  XUN CHEN
Xun ChenDirectorDecember 13, 2024
/S/    AART J. DE GEUS
Aart J. de GeusDirectorDecember 13, 2024
/S/    ALEXANDER A. KARSNER
Alexander A. KarsnerDirectorDecember 13, 2024
/S/    KEVIN P. MARCH
Kevin P. MarchDirectorDecember 13, 2024
/s/ YVONNE MCGILL
Yvonne McGillDirectorDecember 13, 2024
/s/ SCOTT A. MCGREGOR
Scott A. McGregorDirectorDecember 13, 2024

88