Table of Contents Research, Development and Engineering Research, Development and Engineering (RD&E) expenses for the periods indicated were as follows: Change 2020 2019 2018 2020 over 2019 2019 over 2018 (In millions) Research, development and engineering $ 2,234  $ 2,054  $ 2,022  $ 180  $ 32  Applied’s future operating results depend to a considerable extent on its ability to maintain a competitive advantage in the equipment and service products it provides. Development cycles range from 12 to 36 months depending 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 Applied’s existing products resulted from internal development activities and innovations involving new technologies, materials and processes. In certain instances, Applied acquires technologies, either in existing or new product areas, to complement its existing technology capabilities and to reduce time to market. Management believes that it is critical to continue to make substantial investments in RD&E to assure the availability of innovative technology that meets the current and projected requirements of its customers’ most advanced designs. Applied has maintained and intends to continue its commitment to investing in RD&E in order to continue to offer new products and technologies. Applied continued its RD&E investments across Semiconductor Systems and Display and Adjacent Markets on the development of new unit process systems and integrated materials solutions. Areas of investment include etch, deposition, inspection, patterning, packaging and other technologies to improve chip performance, power, area, cost and time-to-market. In Display and Adjacent Markets, RD&E investments were focused on expanding the company’s market opportunity with new display technologies. The increases in RD&E expenses during fiscal 2020 compared fiscal 2019 were primarily due to additional headcount and higher expense associated with share-based compensation and variable compensation. RD&E expenses increased slightly in fiscal 2019 compared to the prior year primarily due to additional headcount and increased research and development spending in Semiconductor Systems and Display and Adjacent Market segments. These increases reflect Applied’s ongoing investments in product development initiatives, consistent with the Company’s growth strategy. Applied continued to prioritize existing RD&E investments in technical capabilities and critical research and development programs in current and new markets, with a focus on semiconductor technologies. RD&E expense during fiscal 2020, 2019 and 2018 included $116 million, $99 million and $96 million, respectively, of share-based compensation expense. Marketing and selling expenses for the periods indicated were as follows: Marketing and Selling Change 2020 2019 2018 2020 over 2019 2019 over 2018 (In millions) Marketing and selling $ 526  $ 521  $ 521  $ 5  $ —  Marketing and selling expenses remained relatively flat in fiscal 2020 compared to fiscal 2019 and 2018. Marketing and selling expenses for fiscal years 2020, 2019 and 2018 included $36 million, $31 million and $31 million, respectively, of share-based compensation expense. General and administrative (G&A) expenses for the periods indicated were as follows: G&A expenses in fiscal 2020 increased compared to fiscal 2019 primarily due to higher expense associated with acquisition integration and deal costs, variable compensation, and share-based compensation. General and administrative expenses in fiscal 2019 decreased slightly compared to fiscal 2018 primarily due to lower variable compensation expenses. General and Administrative Change 2020 2019 2018 2020 over 2019 2019 over 2018 (In millions) General and administrative $ 567  $ 461  $ 483  $ 106  $ (22) 38