Earnings Per Share

9 Months Ended

Jul. 29, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units, and employee stock purchase plan shares) outstanding during the period. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to the Company’s non-complex capital structure.

	Three Months Ended				Nine Months Ended
	July 29, 2012		July 31, 2011		July 29, 2012		July 31, 2011
	(In millions, except per share amounts)
Numerator:
Net income	$	218	$	476	$	624	$	1,471
Denominator:
Weighted average common shares outstanding	1,257		1,318		1,282		1,321
Effect of dilutive stock options, restricted stock units and employee stock purchase plan shares	11		12		10		12
Denominator for diluted earnings per share	1,268		1,330		1,292		1,333
Basic earnings per share	$	0.17	$	0.36	$	0.49	$	1.11
Diluted earnings per share	$	0.17	$	0.36	$	0.48	$	1.10
Potentially dilutive securities	11		17		12		17

Potentially dilutive securities attributable to outstanding stock options and restricted stock units were excluded from the calculation of diluted earnings per share because the combined exercise price, average unamortized fair value and assumed tax benefits upon the exercise of options and the vesting of restricted stock units were greater than the average market price of Applied common stock, and therefore their inclusion would have been anti-dilutive.