Backlog Applied manufactures systems to meet demand represented by order backlog and customer commitments.
Backlog consists of: (1) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months, or shipment has occurred but revenue has not been recognized; and (2) contractual service revenue and maintenance fees to be earned within the next 12 months.
Backlog by reportable segment as of October 27, 2013 and October 28, 2012 was as follows:
## Table 0 ##
Applied’s backlog on any particular date is not necessarily indicative of actual sales for any future periods, due to the potential for customer changes in delivery schedules or cancellation of orders.
Customers may delay delivery of products or cancel orders prior to shipment, subject to possible cancellation penalties.
Delays in delivery schedules and/or a reduction of backlog during any particular period could have a material adverse effect on Applied’s business and results of operations.
Manufacturing, Raw Materials and Supplies Applied’s manufacturing activities consist primarily of assembly, test and integration of various proprietary and commercial parts, components and subassemblies (collectively, parts) that are used to manufacture systems.
Applied has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including the United States, Europe, Israel, Singapore, Taiwan, and other countries in Asia, and assembly of some systems is completed at customer sites.
Applied uses numerous vendors, including contract manufacturers, to supply parts and assembly services for the manufacture and support of its products.
Although Applied makes reasonable efforts to assure that parts are available from multiple qualified suppliers, this is not always possible.
Accordingly, some key parts may be obtained from only a single supplier or a limited group of suppliers.
Applied seeks to reduce costs and to lower the risks of manufacturing and service interruptions by: (1) selecting and qualifying alternate suppliers for key parts; (2) monitoring the financial condition of key suppliers; (3) maintaining appropriate inventories of key parts; (4) qualifying new parts on a timely basis; and (5) locating certain manufacturing operations in close proximity to suppliers and customers.
Research, Development and Engineering Applied’s long-term growth strategy requires continued development of new products.
The Company’s significant investment in research, development and engineering (RD&E) has generally enabled it to deliver new products and technologies before the emergence of strong demand, thus allowing customers to incorporate these products into their manufacturing plans at an early stage in the technology selection cycle.
Applied works closely with its global customers to design systems and processes that meet their planned technical and production requirements.
Product development and engineering organizations are located primarily in the United States, as well as in Europe, Israel, Taiwan, and China.
In addition, Applied outsources certain RD&E activities, some of which are performed outside the United States, primarily in India.
Process support and customer demonstration laboratories are located in the United States, China, Taiwan, Europe, and Israel.
Applied’s investments in RD&E for product development and engineering programs to create or improve products and technologies over the last three years were as follows: $1.3 billion (18 percent of net sales) in fiscal 2013, $1.2 billion (14 percent of net sales) in fiscal 2012, and $1.1 billion (11 percent of net sales) in fiscal 2011.
Applied has spent an average of 14 percent of net sales in RD&E over the last five years.
In addition to RD&E for specific product technologies, Applied maintains ongoing programs for automation control systems, materials research, and environmental control that are applicable to its products.
Item 2: Properties Information concerning Applied’s principal properties at October 27, 2013 is set forth below:
## Table 1 ##
Because of the interrelation of Applied’s operations, properties within a country may be shared by the segments operating within that country.
Products in the Silicon Systems Group are manufactured in Austin, Texas; Singapore; Gloucester, Massachusetts; and Rehovot, Israel.
Remanufactured equipment products in the Applied Global Services segment are produced primarily in Austin, Texas.
Products in the Display segment are manufactured in Tainan, Taiwan; Santa Clara, California; and Alzenau, Germany.
Products in the Energy and Environmental Solutions segment are primarily manufactured in Alzenau, Germany; Treviso, Italy; and Cheseaux, Switzerland.
In addition to the above properties, Applied also owns and leases offices, plants and/or warehouse locations in 78 locations throughout the world: 18 in Europe, 21 in Japan, 15 in North America (principally the United States), 8 in China, 7 in Korea, 6 in Southeast Asia, and 3 in Taiwan.
These facilities are principally used for manufacturing; research, development and engineering; and marketing, sales and/or customer support.
Applied also owns a total of approximately 139 acres of buildable land in Texas, California, Israel and Italy that could accommodate additional building space.
Applied considers the properties that it owns or leases as adequate to meet its current and future requirements.
Applied regularly assesses the size, capability and location of its global infrastructure and periodically makes adjustments based on these assessments.
Fiscal 2013 operating results reflected a recovery in demand for TV manufacturing equipment and continued demand for advanced mobile display equipment, which resulted in increased new orders, net sales, operating income and non-GAAPadjusted operating income compared to fiscal 2012.
In the fourth quarter of fiscal 2013, new orders were $114 million, down 55 percent from the prior quarter, and reflected customer push-outs of orders.
Net sales in the fourth quarter of fiscal 2013 were $163 million, almost flat compared to the prior quarter.
Two customers accounted for approximately 50 percent of net sales for the Display segment in fiscal 2013.
Fiscal 2012 operating results reflected a continued overcapacity in the large substrate LCD TV equipment industry that resulted in decreased new orders and net sales in fiscal 2012.
The downturn in the LCD TV equipment industry was partially offset by increased demand for advanced mobile display equipment.
Four customers accounted for 60 percent of net sales for the Display segment in fiscal 2012.
Energy and Environmental Solutions Segment The Energy and Environmental Solutions segment includes products for fabricating c-Si solar PVs, as well as high throughput roll-to-roll deposition equipment for flexible electronics, packaging and other applications.
This business is focused on delivering solutions to generate and conserve energy, with an emphasis on lowering the cost to produce solar power and increasing conversion efficiency.
While end-demand for solar PVs has been robust over the last several years, investment levels in capital equipment remain depressed.
Global solar PV production capacity exceeds anticipated demand, which has caused solar PV manufacturers to significantly reduce or delay investments in manufacturing capacity and new technology, or in some instances to cease operations.
Certain significant measures for the past three fiscal years were as follows:
## Table 2 ##
Reconciliations of non-GAAP adjusted measures are presented under "Non-GAAP Adjusted Results" below.
Net Operating Revenues by Operating Segment Information about our net operating revenues by operating segment as a percentage of Company net operating revenues is as follows:

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2013	2012	(In millions, except percentages)
Silicon Systems Group	$1,295	55%	$705	44%
Applied Global Services	591	25%	580	36%
Display	361	15%	206	13%
Energy and Environmental Solutions	125	5%	115	7%
Total	$2,372	100%	$1,606	100%

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Location	Type	Principal Use	SquareFootage	Ownership
Santa Clara, CA	Office, Plant & Warehouse	Headquarters; Marketing; Manufacturing; Distribution; Research, Development,Engineering; Customer Support	1,476,000150,000	OwnedLeased
Austin, TX	Office, Plant & Warehouse	Manufacturing	1,719,000145,000	OwnedLeased
Rehovot, Israel	Office, Plant & Warehouse	Manufacturing; Research,Development, Engineering;Customer Support	417,0005,000	OwnedLeased
Singapore	Office, Plant & Warehouse	Manufacturing andCustomer Support	392,00010,000	OwnedLeased
Gloucester, MA	Office, Plant & Warehouse	Manufacturing; Research,Development, Engineering;Customer Support	315,000131,000	OwnedLeased
Tainan, Taiwan	Office, Plant & Warehouse	Manufacturing andCustomer Support	320,000	Owned

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Change
2013	2012	2011	2013 over 2012	2012 over 2011
(In millions, except percentages and ratios)
New orders	$166	$195	$1,684	$-29	-15%	$-1,489	-88%
Net sales	173	425	1,990	-252	-59%	-1,565	-79%
Book to bill ratio	1.0	0.5	0.8
Operating income (loss)	-433	-668	453	235	35%	-1,121	-247%
Operating margin	-250.3%	-157.2%	22.8%	-93.1 points	-180.0 points
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income (loss)	-115	-184	444	69	38%	-628	-141%
Non-GAAP adjusted operating margin	-66.5%	-43.3%	22.3%	-23.2 points	-65.6 points

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Question: what is percentage change in rd&e spendings from 2013 to 2014?
Answer: 0.08333