Applied Materials Inc. (AMAT)

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) basis. Applied adjusts 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. Applied fully writes down inventories and noncancelable purchase orders for inventory deemed obsolete. Applied performs 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 Applied, additional inventory adjustments may be required.

Source: 10-K (filing date: 2019-12-13).

Applied Materials Inc., balance sheet: inventory

US$ in millions

		Oct 27, 2019		Oct 28, 2018		Oct 29, 2017		Oct 30, 2016		Oct 25, 2015		Oct 26, 2014
	Customer service spares
	Raw materials
	Work-in-process
	Finished goods
	Inventories

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).