Balance Sheet Detail



	April 29, 2012		October 30, 2011
	(In millions)
Inventories
Customer service spares	$	306	$	328
Raw materials	383		407
Work-in-process	338		336
Finished goods*	567		630
	$	1,594	$	1,701

_______________

Included in finished goods inventory is $186 million at April 29, 2012, and $224 million at October 30, 2011, of newly-introduced systems at customer locations where the sales transaction did not meet Applied’s revenue recognition criteria as set forth in Note 1, Basis of Presentation. Finished goods inventory also includes $195 million and $140 million of evaluation inventory at April 29, 2012 and October 30, 2011, respectively.



	Useful Life	April 29, 2012			October 30, 2011
	(In years)	(In millions)
Property, Plant and Equipment, Net
Land and improvements		$	169		$	163
Buildings and improvements	3-30	1,190			1,155
Demonstration and manufacturing equipment	3-5	753			686
Furniture, fixtures and other equipment	3-15	735			722
Construction in progress		31			12
Gross property, plant and equipment		2,878			2,738
Accumulated depreciation		(1,939		)	(1,872		)
		$	939		$	866

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



	April 29, 2012		October 30, 2011
	(In millions)
Accounts Payable and Accrued Expenses
Accounts payable	$	507	$	484
Compensation and employee benefits	355		455
Warranty	152		168
Dividends payable	115		104
Other accrued taxes	70		81
Interest payable	30		31
Restructuring reserve	6		11
Other	231		186
	$	1,466	$	1,520

As of April 29, 2012, other accrued expenses included a $16 million acquisition obligation for untendered Varian shares.



	April 29, 2012		October 30, 2011
	(In millions)
Customer Deposits and Deferred Revenue
Customer deposits	$	191	$	249
Deferred revenue	922		867
	$	1,113	$	1,116

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