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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 3 Months Ended
Jan. 26, 2014
Equity [Abstract]  
Components of accumulated other comprehensive loss, after-tax basis
Changes in the components of AOCI, net of tax, were as follows:
 
 
Unrealized Gain on Investments, Net
 
Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges
 
Pension Liability
 
Cumulative Translation Adjustments
 
Total
 
(in millions)
 
 
Balance at October 27, 2013
$
25

 
$
2

 
$
(72
)
 
$
7

 
$
(38
)
Other comprehensive income before reclassifications
2

 
3

 
—

 
(2
)
 
3

Amounts reclassified out of AOCI
(5
)
 
(4
)
 
—

 
—

 
(9
)
Other comprehensive loss, net of tax
(3
)
 
(1
)
 
—

 
(2
)
 
(6
)
Balance at January 26, 2014
$
22

 
$
1

 
$
(72
)
 
$
5

 
$
(44
)
Effects on net income of amounts reclassified from AOCI
The effects on net income of amounts reclassified from AOCI for the three months ended January 26, 2014 were as follows:
Comprehensive Income Components
Location
 
Gains (Losses) Reclassified from AOCI
 
 
 
(in millions)
Unrealized Gain on Investments, Net
Interest and other income, net
 
$
8

 
Provision for income taxes
 
(3
)
 
Net of tax
 
$
5

 
 
 
 
Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges
Costs of products sold
 
$
3

 
General and administrative
 
3

 
Provision for income taxes
 
(2
)
 
Net of tax
 
$
4

 
 
 
 
Total amount reclassified from AOCI, net of tax
 
 
$
9
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for the three months ended January 27, 2013:
 
 
 
Three Months Ended
 
 
January 27,
2013
 
 
 
 
(In millions, except per share amounts)
Shares of common stock repurchased
 
4

Cost of stock repurchased
 
$
48

Average price paid per share
 
$
11.15
Total share-based compensation and related tax benefits
Total share-based compensation and related tax benefits were as follows:
 
 
Three Months Ended
 
January 26,
2014
 
January 27,
2013
 
 
 
 
 
(In millions)
Share-based compensation
$
46

 
$
42

Tax benefit recognized
$
13

 
$
12
Effect of share-based compensation on the results of operations
The effect of share-based compensation on the results of operations for the three months ended January 26, 2014 and January 27, 2013 was as follows:
 
 
Three Months Ended
 
January 26,
2014
 
January 27,
2013
 
 
 
 
 
(In millions)
Cost of products sold
$
14

 
$
12

Research, development, and engineering
17

 
12

Marketing and selling
6

 
5

General and administrative
9

 
8

Restructuring charge
—

 
5

Total
$
46

 
$
42
Stock option activity
Stock option activity for the three months ended January 26, 2014 was as follows:
 
 
Shares
 
Weighted
Average
Exercise
Price
 
 
 
 
 
(In millions, except per share amounts)
Outstanding at October 27, 2013
6

 
$
9.12

Granted
—

 
$
—

Exercised
(1
)
 
$
8.45

Canceled and forfeited
(1
)
 
$
18.93

Outstanding at January 26, 2014
4

 
$
8.98

Exercisable at January 26, 2014
3

 
$
7.18
Performance-based awards
A summary of the performance-based awards approved by the Committee is presented below:
 
 
Number of Performance-Based Awards Granted
 
Percent of Performance-Based Awards Earned as of January 26, 2014*
Fiscal Year Granted
 
Performance Shares/Performance Units
 
Shares of
Restricted Stock
 
 
 
(in millions)
 
 
2013
 
3

 
—

 
0%
2012
 
3

 
1

 
14%
2011
 
2

 
0.1

 
100%
___________________
* subject to additional time-based vesting requirements
Restricted stock units and restricted stock activity
A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the three months ended January 26, 2014 is presented below:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
Weighted
Average
Remaining
Contractual Term
 
 
 
 
 
 
 
(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2013
38

 
$
11.11

 
2.4 years
Granted
8

 
$
16.10

 
 
Vested
(9
)
 
$
10.79

 
 
Canceled
(1
)
 
$
11.28

 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at January 26, 2014
36

 
$
12.07

 
2.8 years