Goodwill, period increase

[Table of Contents](#ie3b4dd133255408488aec6011c49b801_10)APPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)Details of goodwill were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | October 31,2021 |  | October 25, 2020 |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | (In millions) |
| Semiconductor Systems |  |  |  |  | $ | 2,207  |  |  | $ | 2,208  |  |  |  |  |  |
| Applied Global Services |  |  |  |  | 1,032  |  |  | 1,018  |  |  |  |  |  |
| Display and Adjacent Markets |  |  |  |  | 199  |  |  | 199  |  |  |  |  |  |
| Corporate and Other |  |  |  |  | 41  |  |  | 41  |  |  |  |  |  |
| Carrying amount |  |  |  |  | $ | 3,479  |  |  | $ | 3,466  |  |  |  |  |  |

From time to time, Applied makes acquisitions of companies related to existing or new markets for Applied. During fiscal 2021, goodwill increased by $13 million primarily due to an acquisition during the first quarter of fiscal 2021, which was not material to Applied’s results of operations.A summary of Applied’s purchased technology and intangible assets is set forth below:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | October 31,2021 |  | October 25,2020 |
|  |  |  |  |
|   | (In millions) |
| Purchased technology, net | $ | 46  |  |  | $ | 75  |  |
| Intangible assets - finite-lived, net | 58  |  |  | 78  |  |
|  |  |  |  |
| Total | $ | 104  |  |  | $ | 153  |  |

  
Finite-Lived Purchased Intangible AssetsApplied amortizes purchased intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from 1 to 15 years.Applied evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Applied assesses the fair value of the assets based on the amount of the undiscounted future cash flow that the assets are expected to generate and recognizes an impairment loss when estimated undiscounted future cash flow expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When Applied identifies an impairment, Applied reduces the carrying value of the group of assets to comparable market values, when available and appropriate, or to its estimated fair value based on a discounted cash flow approach.Intangible assets, such as purchased technology, are generally recorded in connection with a business acquisition. The value assigned to intangible assets is usually based on estimates and judgments regarding expectations for the success and life cycle of products and technology acquired. Applied evaluates the useful lives of its intangible assets each reporting period to determine whether events and circumstances require revising the remaining period of amortization. In addition, Applied reviews intangible assets for impairment when events or changes in circumstances indicate their carrying value may not be recoverable. Management considers such indicators as significant differences in actual product acceptance from the estimates, changes in the competitive and economic environments, technological advances, and changes in cost structure.  
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