Table of Contents APPLIED MATERIALS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The Display and Adjacent Markets segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and flexible coating systems and other display technologies for TVs, monitors, laptops, personal computers, smart phones, and other consumer-oriented devices. Each operating segment is separately managed and has separate financial results that are reviewed by Applied’s 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 Applied’s chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information. Applied derives the segment results directly from its internal management reporting system. The accounting policies Applied uses 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 sales and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Corporate and Other category includes revenues from products, as well as costs of products sold, for fabricating solar photovoltaic cells and modules, and certain operating expenses that are not allocated to its reportable segments and are managed separately at the corporate level. These operating expenses include costs related to share-based compensation; 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, Applied does not allocate to its reportable segments restructuring and asset impairment charges and any associated adjustments 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: Semiconductor Systems and Display and Adjacent Markets revenues are recognized at a point in time. Applied Global Services 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. 103 Net Sales Operating Income (Loss) Depreciation/ Amortization Capital Expenditures Accounts Receivable Inventories (In millions) 2020: Semiconductor Systems $ 11,367  $ 3,714  $ 219  $ 226  $ 2,061  $ 2,139  Applied Global Services 4,155  1,127  34  30  764  1,545  Display and Adjacent Markets 1,607  291  31  29  179  195  Corporate and Other 73  (767) 92  137  (41) 25  Total $ 17,202  $ 4,365  $ 376  $ 422  $ 2,963  $ 3,904  2019: Semiconductor Systems $ 9,027  $ 2,464  $ 202  $ 168  $ 1,543  $ 1,703  Applied Global Services 3,854  1,101  25  47  790  1,535  Display and Adjacent Markets 1,651  294  22  43  246  214  Corporate and Other 76  (509) 114  183  (46) 22  Total $ 14,608  $ 3,350  $ 363  $ 441  $ 2,533  $ 3,474  2018: Semiconductor Systems $ 10,577  $ 3,441  $ 303  $ 168  $ 1,597  $ 2,215  Applied Global Services 3,754  1,102  21  33  630  1,243  Display and Adjacent Markets 2,298  574  20  39  142  246  Corporate and Other 76  (626) 113  382  (46) 17  Total $ 16,705  $ 4,491  $ 457  $ 622  $ 2,323  $ 3,721 